Issuance of Revised SB-FRS Guidance Note 3 Accounting and Disclosures for Trust Funds
28 NOV 2022
Issuance of Revised SB-FRS Guidance Note 3 Accounting and Disclosures for Trust Funds
28 Nov 2022
A revised SB-FRS Guidance Note 3 Accounting and Disclosures for Trust Funds, effective for annual periods beginning on or after 1 January 2023, has been issued. Early application is permitted.
The key amendments made to SB-FRS Guidance Note 3 are:
| Paragraphs | Key Amendments | |
|---|---|---|
| 4 | Updated definition of “control” to be based on principles set out in SB-FRS Conceptual Framework | |
| 11 | Included factors for consideration to guide Statutory Board in assessing whether it bears/enjoys risks and rewards associated with the fund | |
| 21 to 25, 26(vi), 27, Annex D (Example 2) | Included accounting requirements and illustrative example for discontinued trust funds | |
| Annex A | Updated the flowchart for better alignment with SB-FRS Guidance Note 1 Accounting and Disclosure for Funds, Grants, Accumulated Surplus and Reserves | |
| Annex B | Included further clarifications in the illustrated scenario of “Trust Fund of SB” on the assessment on risk and reward associated with the trust fund | |
| Annex C | Added a note that net assets of different trust funds can be presented separately as different line items or in aggregation as a single line item on the balance sheet | |
| Annex D (Example 1) | Added illustrative example on general disclosure of trust funds, such as basis of accounting, accounting policies, etc. | </em> |