Info 1: Account Standard Council Singapore
Info 2: Account Standard Council Singapore (ASC) works
Info 3: ASC method vs GAAP method
Info 4: example for ASC Singapore
Quick pick
ASC is the accounting control board which is located in Singapore to maintain the audit standard for all companies and institutions.
Opening information:
Account standard council breaks into three words account, standard, and council. The account is credits and debts, the standard is level of one concept, and the council is committee.
So Account Standard Council is a committee that has some level of rules for credits and debts. This article contains information about who is Account Standard Council Singapore, what is there works and functions, what is the difference between the ASC method and vs GAAP method, and finally one example of ASC.
Info 1: Account Standard Council Singapore (ASC) definition
Singapore is not the largest country unlike the USA, China, and INDIA, it’s a small nation with strong rules and regulations and a high standard well-developed economy when compared to any other Asian country.
Whenever any public organization in Singapore wants to file a financial statement or audit report to the public Investors and their existing shareholders, they must need to file in the level of accounting standard council Singapore.
Because like Singapore all other countries had their council or committee for accounting standards for how to make and model the audit report based on their acceptance standard for activities of debts and credits.
If we take the United States of America it follows and has its Accounting standard for recording such audits of the specific company.
But when comes to Singapore the financial statements of every Corporation must need to adherence to the law of the Singapore Accounting Council.
Not following such standard or level of principles-sessed by the council wouldn’t be acceptable to other institutions and government agencies. So now let’s dive into know the how the ASC works and functions in the Singapore public market.
Info 2: Account Standard Council Singapore (ASC) works
ASC doesn’t represent any of the specific objects or things, instead, it’s a government agency that works to maintain the fair audit statement in the Singapore.
Unlike the United States of America, Singapore doesn’t have any unique individual account standard method indeed they follow the international accounting standard board method which was created by the London International Accounting Standard Board.
However Singapore Council takes the accounting standard from the International Financial Reporting Standard Foundation (IFRS), because global-level international accounting standards are always is managed by the IFRS.
Based on the approval of accounting standards, all Singapore industries must need to adherence to the Singapore accounting standard method whenever filing the financial statements.
When public Industries fail to follow or do the authorized by the Singapore Account Standard Council which that’s audited financial statements are not accepted by the regulator Singapore Exchange.
Because the Singapore Exchange Regulation government agency is the one who tracks and controls the market activities of the investor.
The firm or person who violated the rules and accounting terms was strictly punishable by the Singapore government law.
This Accounting Standard Act was established in 2007 by Corporations and corporations who do business in Singapore must need to follow the accounting standard method of the Singapore Accounting Council.
Moreover, this method is quite created to maintain fair and stable reports with accurate transparency
to give honest audit reports to all financial institutions, governments, and public Investors.
The reason for following the International Accounting Standard Board (IASB) by ACS is it helps the other outside companies and local Singapore company for easier comparability, transition the information and lower the cost of investing in Singapore.
Most people’s confused about the ASC method and the GAAP method, so lets jump into the key difference between them.
Info 3: ASC method vs GAAP method
ASC method is an accounting method created and followed by Singapore with the back end of the international accounting standard board method.
On the other side, GAAP is a Generally accepted accounting principle that is used in the United States of America.
So the Singapore accounting methods principal rules and Generally According accounting principal method are not same.
To make more clear about the ASC, let’s look at one brief example below.
Info 4: example for ASC Singapore
Say company T in the Singapore industry filed the financial statement to their regulator In the last 12 years it’s become public.
On the other side, company Y is a USA-based company that audits and submits to the Security and Exchange Commission.
Here the Company T audit report shows the accounting method of Singapore and the Company Y audit report shows the generally accepted accounting principles.