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Saturday July 22, 2017 22:47:24
Full adoption of IFRS

Home Local News Full adoption of IFRS

 

By command of His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam, the Brunei Darussalam Accounting Standard Council (BDASC) has announced that His Majesty has consented for the BDASC to release a ruling for the full adoption of the International Financial Reporting Standards (IFRS) by companies in Brunei, as set out by the International Accounting Standards Board (IASB), with effect from January 1, 2014.

 

As a starting point, the full IFRS adoption will only be imposed on institutions with public accountability such as banks, financial institutions, insurance and takaful companies. The effective date of January 1, 2014 is chosen by taking into account the transition period needed to give ample time to the affected parties to undertake the necessary actions towards IFRS adoption, including to understand and interpret the IFRS practices as well as technical consideration such as information system re-engineering.

 

For small and medium enterprises (SMEs), the BDASC is still in the process of reviewing the suitable accounting standards as well as formulating criteria for SMEs and cottage industries. With the adoption of IFRS, it is hoped the financial preparation in the country will be more transparent and will portray the companies' true financial position.