Critical Evaluation of IFRS Harmonization Success in Singapore

This report critically evaluates the success of accounting harmonization in Singapore, focusing on the adoption of International Financial Reporting Standards (IFRS). It begins with an introduction to the need for harmonization, emphasizing the benefits of comparability, consistency, and efficiency in financial reporting and auditing. The report then discusses the issues associated with harmonization, including political, cultural, and social factors. The core of the report is a case study of Singapore's compliance with IFRS, with Singapore Airlines as a key illustration. The analysis covers the country's approach to harmonization, its success in implementing IFRS, and the impact of these standards on the financial reporting of Singapore Airlines. The report concludes with recommendations for other Asian countries, advocating for the adoption of IFRS to achieve harmonization across the region. The report also includes an executive summary highlighting the importance of IFRS adoption for companies expanding internationally and the role of harmonization in building confidence among organizations and investors. The study underscores the benefits of harmonization, such as increased efficiency in auditing and stock markets, while acknowledging the challenges in achieving 100% harmonization.

THE SUCCESS OF
HARMONIZATION IN
SINGAPORE
PRESENTED BY: -

Introduction
 In the current context, the accounting requirement of every country is different & they uses the
different method to report their financial transactions and event which creates several issues in doing
the financial analysis of the company.
 To avoid the difference, the International Accounting Standards Board is established. The
International Accounting Standard Board develop the set of the accounting standards named
International Financial Reporting Standards (IFRS) to promote the uniformity in the financial
reporting.
 The harmonization is simply a process of increasing the compatibility of accounting practices by
fixing the degree of variation.

Need of Harmonization
 Comparability of financial statement
 Consistency in financial reporting
 Efficiency in Auditing
 Efficiency in stock market

Issues of Harmonization
 Political
 Cultural
 Social

Case study
 Singapore’s Compliance with IFRS
 The success of Harmonization in Singapore: Singapore Airlines Limited

Conclusion & Recommendation
 The need of the harmonization are need of comparability in financial statement,
efficiency in auditing, need of consistency, development of financial market.
 The issues related to implementing harmonization are political, social and cultural factors.
 The Singapore is the perfect example of how can any country successfully implement the
harmonization in their accounting reporting.
 This paper recommends to every country of Asia to adopt the international accounting
standards to implement the harmonization throughout the Asia.

Bibliography
 ACS. (2018). Singapore Financial Reporting Standard. Retrieved from Accounting
Standards Council Singapore
 De George, E. T., Li, X., & Shivakumar, L. (2016). A review of the IFRS adoption
literature. Review of Accounting Studies, 21(3), 898-1004.
 Deloitte. (2019). Financial reporting framework in Singapore. Retrieved from Deloitte:
https://www.iasplus.com/en/jurisdictions/asia/singapore
 Hawksford. (2019). Singapore Accounting Standards. Retrieved from Guide me
Singapore: https://
www.guidemesingapore.com/business-guides/taxation-and- accounting/accounting-st
andards/
singapore-accounting-standards

Thank You.