Accounting Harmonization and Standardization

This assignment delves into the concept of accounting harmonization and standardization across diverse industries. It requires students to critically analyze the development and influence of accounting standards like EPSASs (European Public Sector Accounting Standards) and IFRS (International Financial Reporting Standards). The analysis should encompass challenges, potential regulatory effects, and the evolving nature of accounting practices in a globalized world. Additionally, students are expected to examine specific case studies, such as European pharmaceutical harmonization and electric vehicle safety legislation, to understand how harmonization principles apply in different sectors.

Running head: SUCCESS OF ACCOUNTING HARMONISATION
Success of accounting Harmonisation
Name of the Student
Name of the University
Author’s Note

1SUCCESS OF ACCOUNTING HARMONISATION
Table of Contents
1.0 Executive Summary..............................................................................................................2
2.0 Introduction................................................................................................................................2
3.0 Rationale of harmonisation........................................................................................................2
3.1 Compliance with the Standard of IASC................................................................................3
3.2 Compliance with the Asia.....................................................................................................3
3.3 Globalisation.........................................................................................................................3
4.0 Issue in harmonisation...............................................................................................................3
4.1 Cultural Obstacles.................................................................................................................4
4.2 Integration Problems.............................................................................................................4
4.3 Negative impacts on the small business................................................................................4
4.4 Licensing and Enforcement...................................................................................................5
4.5 Political Grouping.................................................................................................................5
4.6 International Sovereignty Issues...........................................................................................5
5.0 Country Level Analysis.............................................................................................................5
5.1 Rationale for Majority of IFRS in Singapore........................................................................5
5.2 Efforts to Harmonise SAS with FRS.....................................................................................6
6.0 Case study on Singapore and “Singapore Press Holdings”.......................................................6
6.1 Background of the Company.................................................................................................6
6.2 Implementation process of FRS from Local SRS.................................................................6
6.3 Before and after harmonisation of impact on the financial statement...................................6
Conclusion and recommendation..................................................................................................11
References......................................................................................................................................12

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1.0 Executive Summary
Harmonisation is considered as the main process for collaborating with various systems
in a particular method. This particular report has been able to show the rationale of the overall
harmonization process which are seen to be in compliance with the Standard of IASC and Asian
standards. The study has been able to infer the different types of the recognised issues in the
harmonization in Singapore Press Holdings.
As per the findings of the report the main form of the barriers in the
harmonization process has been seen to be depicted with the varied information which are based
on the “Cultural Obstacles, Integration Problems, Negative impacts on the small business,
Licensing and Enforcement”. The pre-and the post implementation of the harmonization has
been further able to discuss on PPE less the cost accumulated with the impairment and
depreciation. In case of SAS the fixed assets are considered with fixed assets less accumulated
depreciation (Legenzova, 2016).
2.0 Introduction
The important concept of the harmonisation is considered with the collaboration of
different systems in a certain method. The procedure of accounting policy is maintained as per
the increasing compatibility setting constraints and accounting practices and depicting the way
they change. The basic reason for the study is to assess the financial position after the
harmonisation process (Adrian-Cosmin, 2015).
3.0 Rationale of harmonisation
In general harmonisation in account is based on the similarity with the accounting
standards and financial reporting. Harmonization not only puts emphasis on the elimination of
the contradiction rules but also overcome the reduction in the global differences to achieve the
reduction in the contradiction rules. The process of harmonisation in accounting has been able to
overcome the global differences for achieving an improved international comparability for the
financial statements. The present reporting standard has been able to highlight the subsequent
transition to “Financial Reporting Standards” “(FRS) and INT FRS”. As per the changes with
the significant difference in the balance sheet and income statement for “Singapore Press
Holdings”. As per the opinion by SmithKline Beecham and Daimler-Benz the difference and the
segregation has been able to change the main purpose for the result of accounting requirement

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implementation process. The main aim for the harmonisation is seen with the financial
statements which are comparable with the other countries and same countries. The main form of
the conceptualisation of the harmonisation is important for the organizations operating with other
business situations (Frezatti, B. Carter, & F.G. Barroso, 2014).
3.1 Compliance with the Standard of IASC
The IASC is seen to maintain the accounting standard with the published financial
statements. The important form of the compliance is further taken into account with the
standards helpful for harmonisation of the standards which are used by national accounting
requirements (Auvinen et al., 2014).
3.2 Compliance with the Asia
In Singapore the “The Accounting Standards Council” was seen to be
conceptualized in 2007. The financial analysts are able to consider that the
consolidated financial condition of the FBOs are seen with the relevant key
accounting differences and the various types of the supervisory impacts to perform
“Strength of Support Assessment (SOSA)”. The IFRS implementation has been
depicted with "a single set of high quality, uniform, globally-applied, and enforced
accounting standards which is conducive for both domestic and cross-border
investment and financing decisions”. The adaptation of IFRS is taken into account
with greater reliance on the financial statement reporting aspects, which is
presented with by FBOs and other genres of enterprises (Sauer, 2015).
3.3 Globalisation
The accounting standards which are followed in Asia is based on the compliance of both
IAS and GAAP. The increase in the accounting standard compliance has been further
able to comply accounting standard which is taken into account with the
globalization criteria. The main effect on the globalization is considered with
numerous enterprises franchised and setup other than Asian countries. Due to this,
harmonization of accounting standard is seen to be related with the overall
presentation and understanding of the financial presentations of the report in
various countries in which it is seen to be operational. The adoption process of
accounting harmonization is seen to be conducive with undertaking the
responsibilities of the investors in a better way. This has been further able to assess
the concerns with the financial data presented in the annual report. This particular
consideration is further seen to be based on various factors of harmonization
process (Visvikis, 2014).

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4.0 Issue in harmonisation
The main issue in harmonization is seen with compliance of single accounting standard
which are stated below as follows:
4.1 Cultural Obstacles
This is considered with attitudes, religion and various problems of language barrier. The
research considered with Hofstede and Trompenaar has depicted the difference among the
cultural barrier. The auditors of Singapore have seen to eclipse the personal and the close
reaction and rejection of any form of gifts in the business. The differentiated behaviour and
values of the individuals has its implication on the international standards (Oulasvirta & Bailey,
2016).
4.2 Integration Problems
The main problem in the new accounting standard implemented in Singapore is evident
with the FRSs which is implemented in the “beginning on or after January 1, 2003, apart from FRS 39”.
FRS has been further able to show the disclosure valuation for the independent values and
annual valuation process. The other disparity is seen with business combinations, leases,
borrowing cost and different types of the related party transactions (Calmel, 2014).
The recognition criteria for the integration process has been further seen to be evident with the
combinations of both standards. These are seen with of “FRS/SAS 7, FRS 16/SAS 14, FRS
17/SAS 15, FRS 22/SAS 22, FRS 23/SAS 19, FRS 28/SAS 27 and FRS 39/ SAS 33”. In various
cases the disparity in the recognition for the new standard is seen with the exemption like
“Accounting for Investments in Associates”. The implementation of the new method is further
considered with specific exemptions per applying new method for equity in the accounting
method. The FRS recognition criteria has included the goodwill evaluation which is taken into
consideration after the reserves of 1994. This has been further seen to be based on the several
types of the depictions as per the FRS recognition. It is also discerned that FRS does not need to
depict this but in case of SAS the restatement needs to be done accordingly (Ahmed & Ali,
2015).
4.3 Negative impacts on the small business
The integration problem of SAS and FRS is seen as the main problem for the “Small and
medium size entities (SME)” in Singapore. The changing nature of the global demand is seen
with the different types of the implications for FRS to become more complex for the smaller

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companies. The SMEs need to take into account the various type of the considerations for the
companies based in Singapore. The integration of the “Singapore Financial Reporting Standards
(SFRS)” for SE is not considered to accountable publicly and the consideration for the gross
assets is restricted with more than S$10 million (Warren, Moffitt, & Byrnes, 2015).
Moreover, the designated problems of the smaller multinationals have been seen to be
based on the compliance cost percentage of the total revenues in compare to the organizations
which are larger in size. The burgeoning costs in some cases are restricted with the different
types of the aspects to grow and make the significant nature of progress especially for the larger
organizations. The integration process of the different types the accounting standard has seen to
be taken into consideration with the increasing cost of the small business operating in Singapore
(Aarsand & Sandberg, 2014).
4.4 Licensing and Enforcement
The accountants as individuals are able to adhere with the different types of the licensing
process which has been seen to be taken into consideration with the appropriate law-making
body. As per the international council for the accounting the lack of the different aspects has
been seen to be evident with the prosecution actions (Kamla & Haque, 2017).
4.5 Political Grouping
The main issue for the political grouping is seen to be short termed. It is also discerned
that that the political grouping is seen to be appropriate in the emerging countries.
4.6 International Sovereignty Issues
The particular form of the associated concerns has been seen to be based on the differ
types of the depictions which are associated with the CPA licensing laws. In several occasions
the contradicting tax laws, financial regulation and securities laws has been evident with
dictating the appropriate principles of accounting (Bahri, 2014).
5.0 Country Level Analysis
5.1 Rationale for Majority of IFRS in Singapore
The main form of the driving force of the accounting standard in Singapore is
seen with the application of the different types of the standards which are seen to be based on the
significant nature of the depictions as per IASB. IASB is considered to be important with the

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“independent, standard-setting” body of the IFRS. The important objective for IASB is
identified with the harmonization process which are seen to be based on the different types of the
adoption of the worldwide recognition process. IFRS is recognised to issue the majority of the
accounting standards which are based on the significant nature of the depiction taken into
account with the majority of the accounting standard followed in Singapore. In Singapore the
main form of the accounting standard is seen to be depicted with the “Singapore Financial
Reporting Standards (SFRS)” which are in compliance with IFRS. Henceforth, al the companies
need to adhere to the various types of the significant standards which are adhered with the
standards reported on or after 1 January 2003 (Barrett, Mayson, & Bahn, 2014).
5.2 Efforts to Harmonise SAS with FRS
The important form of the initiative for the harmonisation has been taken into account
with “Council on Corporate Disclosure and Governance (“CCDG”)”. The min establishment for
this is further seen to be made in 16 August 2002. The important form of the motive for the
recommendation of the corporate governance models has been closely modelled with the
Financial Reporting Standards (“FRSs”). The essential form of the dissolution is depicted with
the “Accounting Standards Council (ASC)” which are responsible with the “Singapore Financial
Reporting Standards (SFRS)”. The important initiative for ASC is seen with the convergence of
SAS and IFRS for ensuring the global comparability and transparency of the information
(Hellman et al., 2015).
6.0 Case study on Singapore and “Singapore Press Holdings”
6.1 Background of the Company
“Singapore Press Holdings Ltd.” is considered to be a multichannel facility for the overall
advertising system which is based on media organization in Singapore. The business operations
in are further identified with the consideration of the “print, Internet and news media”.
6.2 Implementation process of FRS from Local SRS
Before the implementation of “Financial Reporting Standards (IFRS)”and “SFRS in
2003”, it has been depicted that the important form of the reporting aspects is considered with
the disclosures which is taken into account with the ICPAS and FRS. The advisory committee is
initiated “Ministry of Finance (MOF)” with the “Accountant-General's Department (AGD)”.

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6.3 Before and after harmonisation of impact on the financial statement
The “Singapore Reporting Standard (FRS) 102” has been able to depict that the different
types of the significant considerations for the share based payment which is inclusive of the
expenses which are related to the transactions and grants given to the employees. The post
implementation process of new FRS (on or after January 1, 2003) has been stated with the cost
less accumulated depreciation and impairment losses. The change in the PPE is taken into
consideration as per the estimated useful lives for the furniture and fittings for the next 7-10
years as per the SAS. The revised FRS consideration is based on the estimated useful lives of the
furniture and fittings for the next 5-10 years.
The SAS subsidiaries are included with the financial statements considered with
the cost and provision for the diminution of the value other than the determination of the
individual values. As per the new standards of FRS considerations the interest in the subsidiaries
are based on the balance sheet of the company at a cost less the impairment losses. The various
types of the indication for the impairment has been taken into assessment with the written down
value of the recoverable amount. In this case, the lower is the amount of the impairment losses,
the same has been depicted in the income statement.
The FRS integration for the Goodwill arising for the acquisition has been recorded in the
balance sheet ad put forward to test the impairment as per “FRS 103 – Business combinations” in
FY 2005. This factor has been further seen to be applicable as per reserves considered after 1994.
In this case, the treatment of SAS and SHP is seen to be having the relevant authority for the
external borrowings and the internal resources associated to the finance requirements for the
final purchase or acquisition of the ordinary shares.

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Figure: SAS determination of PPE and subsidiaries
(Source: Sph.com.sg, 2017)

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Figure: FRS determination of PPE and subsidiaries
(Source: Sph.com.sg, 2017)

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Figure: SAS treatment combinations
(Source: Sph.com.sg, 2017)
Figure: Business Combinations for FRS

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(Source: Sph.com.sg, 2017)
Conclusion and recommendation
The main from of the consideration of the harmonisation in accounting has been
considered with the concept of comparing the financial information with other countries. The
main process for the harmonization are further seen to be vital for the companies those are
willing to operate in the various business environment and multiple regions on a global basis.
The significant issues concerning the harmonisation is regarded with “Cultural Obstacles,
Integration Problems, Negative impacts on the small business, Licensing and Enforcement”.

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