1. Who is Brunei Darussalam Accounting Standards Council (BDASC)?
The 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 application to companies and other incorporated bodies in Brunei Darussalam.
2. What is International Financial Reporting Standards (IFRS)?
The IFRS is a set of accounting standards developed by the International Accounting Standards Board (IASB) and is becoming the global standard for the preparation of general purpose financial statements.
3. Who is International Accounting Standards Board (IASB)?
The IASB is the independent standard-setting body of the IFRS Foundation. Its members consist of experts from broad geographical diversity with an appropriate mix of recent practical experience in setting accounting standards, in preparing, auditing, or using financial reports, and in accounting education. They are responsible for the development and publication of IFRSs, including the IFRS for SMEs and for approving interpretations of IFRSs as developed by the IFRS Interpretations Committee.
4. How widespread is the adoption of IFRS around the world?
Approximately 120 nations and reporting jurisdictions permit or require IFRS for domestic listed companies, although approximately 90 countries have fully conformed to IFRS as promulgated by the IASB and include a statement acknowledging such conformity in audit reports.
5. What are the advantages of converting of IFRS?
By adopting IFRS, entities can present its financial statements with greater comparability, quality, transparency and understandability. This would help them attract foreign investment, expand business and increase their market position. As there are more than 100 countries and growing converging with/adopting IFRS, entities can also create a uniform accounting platform with the world. These countries include the European Union, India, Hong Kong SAR, Australia, Malaysia, the UAE, South Africa and Singapore.
Accounting Standards in Brunei Darussalam
6. When is the date of adoption of IFRS in Brunei Darussalam?
The full adoption of IFRS is effective from 1st January 2014. This will apply to public accountable companies for accounts for period beginning 1st January 2014.
7. Have any companies in Brunei Darussalam begun transitioning to IFRS?
Several large multinational corporations have started using IFRS for their foreign subsidiaries/branches.
8. Is Brunei Darussalam going for full or partial adoption of IFRS?
Brunei Darussalam will be going for full adoption of IFRS.
9. Who will be required to adopt IFRS?
All public accountable companies such as banks, financial institutions, insurance and takaful companies are required to adopt full IFRS. For Statutory Bodies mentioned in the schedule in the ASO 2010, the Authority will decide the appropriate Standards for them to adopt.
10. Can companies that have no public accountability adopt IFRS?
Yes, companies that have no public accountability can and are encouraged to adopt full IFRS.
11. How do I deal with the fact that there is a shortage of local accountants with sufficient knowledge on IFRS?
There are a number of accounting firms in Brunei Darussalam that can assist companies with regards to IFRS. Companies may also approach Brunei Darussalam Institute of Certified Public Accountants Academy (BICPA) for assistance.
We are also working towards our Capacity Building Plan where its main objective is to increase the pool of local qualified accountants in Brunei Darussalam. Apart from that, we are working closely with BICPA and Centre for Islamic Banking, Finance and Management (CIBFM) to conduct trainings on IFRS. BICPA has already scheduled a number of IFRS trainings. For more information on these trainings please contact BICPA (Ms Zunaidah) at +673 223 3945.
12. How can I find out more on IFRS
Apart from trainings conducted, there are also IFRS resources available online which can be obtained here (https://www.ifrs.org/).
For those who are very new to IFRS, as a first step, we recommend you to start off with IFRS 1 First-time Adoption of International Financial Reporting Standards. This standard sets out the procedures that an entity must follow when it adopts IFRSs for the first time as the basis for preparing its general purpose financial statements.
13. How do I keep up with ongoing revisions and new standards?
Information on revisions and new standards are available on the BDASC's website which is linked to IASB's website. The IFRS trainings conducted in Brunei Darussalam will also reflect the latest revision on IFRS as well as any addition of standards. You may also visit our website (bdasc.mofe.gov.bn) for updates.
14. Where do I go to if I have interpretation issues on IFRS?
The IASB has issued interpretations to IFRS and these are available from the IASB's website free of charge. You may submit your queries and issues to BDASC at the address below, and we shall endeavour to provide an answer. We are also working towards having a technical support in this area.
Email address: firstname.lastname@example.org
Level 1, Island Block,
Ministry of Finance Building
Commonwealth Drive, BB3910
Negara Brunei Darussalam
15. How does the BDASC address the IFRS issues faced by the stakeholders in Brunei Darussalam?
Issues raised will be compiled and reviewed by a panel of members from diverse background with technical experts on accounting standards from outside Brunei Darussalam.
16. Will BDASC issue any guidelines on specific standards?
The BDASC will not be issuing any Guidelines on IFRS as the IASB has issued Guidelines which is available from the IASB's website (https://www.ifrs.org/).
17. Will BDASC issue any guidelines on specific standards?
The accountants and auditors of the companies involved will be responsible to ensure IFRS requirements are complied with.
18. Who will ensure compliance to IFRS?
Requirement of government's legislations should be abide to. Issues are addressed by the respective authority.