The Accounting Standards Council Singapore issued Financial Reporting Standards FRS 115, Revenue from Contracts with Customers and aligns the adoption of revenue recognition standards in Singapore to the global adoption of new revenue recognition standards under IFRS and US GAAP.
The actual impact of the new standard on each company will depend on their specific customer contracts and how they have applied existing standards. For some it will be a significant shift, and systems changes will be required, while others may see only minor changes. The companies will also have to carefully evaluate the transition provisions of the standard to determine an approach to manage stakeholder communication regarding changes to revenue forecast going forward.
This publication Accounting for revenue – the new normal: FRS 115 by Grant Thornton Singapore provides an overview of the new revenue recognition standard and how it may impact businesses.