1. What is Brunei Darussalam Accounting Standards Council (BDASC)?
The Brunei Darussalam Accounting Standards Council (BDASC) was established on 1st August 2011 through the enforcement of the Accounting Standards Order (ASO), 2010. The BDASC is primarily tasked to issue accounting standards applicable to companies and other incorporated bodies in Brunei Darussalam.
2. What are the types of Accounting Standards to be adopted in Brunei Darussalam?
There are two types of Accounting Standards to be adopted in Brunei Darussalam:
i. International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) for all entities that have public accountability (public interest entities) in Brunei Darussalam effective from 1st January 2014.
ii. Brunei Darussalam Accounting Standards (BDAS) issued by BDASC for other entities that do not have public accountability (non-public interest entities) in Brunei Darussalam effective from 1st January 2018.
3. What is meant by public accountability?
According to IASB, an entity has public accountability if:
Its debt or equity instruments are traded in a public market or it is in the process of issuing such instruments for trading in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local and regional markets), or
It holds assets in a fiduciary capacity for a broad group of outsiders as one of its primary businesses.
4. Why was BDAS introduced?
The BDAS was introduced to provide consistency and transparency of financial statements prepared by non-PIEs in Brunei Darussalam for their respective key stakeholders. Previously, there were multiple ways businesses could present their financial statements, hence, it did not reflect the actual representation of the business entity in the industry that that they are in.
5. What are the advantages of adopting BDAS?
By adopting BDAS, businesses can present its financial statements with greater comparability, quality, transparency and understandability which are very beneficial to its users and other external parties such as investors, lenders and etc., as it enables them to make more accurate and meaningful economic decisions.
6. Can businesses that have no public accountability adopt IFRS?
Yes, businesses, companies and other incorporated bodies in Brunei Darussalam which do not have public accountability are encouraged to adopt the International Financial Reporting Standards.
7. When comparing BDAS and IFRS, what are the key significant differences?
The significant difference between BDAS and IFRS is, IFRS provides comprehensive detail reporting for the respective stakeholders of public interest entities such as the government, regulators and etc. BDAS on the other hand, is less detail and complex as it was specifically introduced to facilitate consistency in financial reporting of non-PIEs in Brunei Darussalam.
8. What are the likely costs of adopting to BDAS?
The costs would be determined largely by the size and nature of the respective company. While the initial cost to identify and quantify the differences between current standards and BDAS, staff training and implementing IT support could be significant, the conversion also could result in an ultimate reduction of costs for capital and financial reporting related to operations.
10. I have a business, what do I need to do?
Among others, entities will need to:
(a) learn about BDAS and assess how these accounting standards will affect them. Such knowledge will help entities facilitate the need for appropriate internal reporting, information systems and training to accommodate their particular circumstances.
(b) perform a gap analysis to identify what system, processes or people changes are needed.
(c) invest in their human resources and systems infrastructure.
11. I am an auditor, what do I need to do?
Among others, auditors should take advantage of platforms provided to share their knowledge and also participate in the due process of adopting new standards. They should also be consistently keeping up to date with technical developments.
Auditors also need to be equipped with a deep understanding of the requirements of standards effective on 1 January 2018, particular the new ones in order to be able to assist the industry in implementation aspects.
12. Where can I get assistance in adopting BDAS?
Businesses may contact the BDASC Secretariat at +673-2383933 or email email@example.com for any related issues. Queries and issues can also be submitted to BDASC at the address below and we shall endeavour to provide an answer:
Email address: firstname.lastname@example.org
Mailing address: BDASC Secretariat
Level 1, Island Block,
Ministry of Finance and Economy Building
Commonwealth Drive, BB3910
Negara Brunei Darussalam
In addition, businesses may also contact the Brunei Darussalam Institute of Certified Public Accountants (BICPA) for any technical assistance on BDAS at +673-2233945 or email email@example.com and there are also a number of accounting firms in Brunei Darussalam that can assist businesses on the adoption of BDAS.
13. Who will ensure compliance to BDAS?
Accountants and auditors of the respective businesses have the responsibility to ensure BDAS requirements are complied with.
14. How do I harmonise the contradicting requirements of the Government legislations and regulations with BDAS?
Requirement of government's legislations should be abided to. Any issues with BDAS are to be addressed by the respective authority.