Statute Details
- Title: Accounting and Corporate Regulatory Authority (Assignment of Function) Notification 2025
- Act Code: ACRAA2004-S475-2025
- Legislative Type: Subsidiary Legislation (SL)
- Enacting Authority: Minister for Finance
- Authorising Provision: Section 6(2) of the Accounting and Corporate Regulatory Authority Act 2004
- Citation: S 475/2025
- Commencement: 26 August 2025
- Status: Current version as at 26 March 2026
- Key Provisions: Section 1 (citation and commencement), Section 2 (definitions), Section 3 (additional function)
What Is This Legislation About?
The Accounting and Corporate Regulatory Authority (Assignment of Function) Notification 2025 (“the Notification”) is a short but operationally significant instrument. It assigns an additional regulatory function to the Accounting and Corporate Regulatory Authority (“ACRA”) under the Accounting and Corporate Regulatory Authority Act 2004. In plain terms, it empowers ACRA to work with Singapore’s financial market regulators—specifically the Monetary Authority of Singapore (“MAS”) and approved exchanges—to monitor whether certain “listed entities” comply with the accounting standards that apply to them.
Accounting and financial reporting compliance is a cornerstone of market integrity. When listed entities prepare financial statements, they must follow applicable accounting standards. Those standards are not only set through Singapore’s accounting framework (including standards made or formulated by the Accounting Standards Committee), but may also be supplemented by requirements arising from the rules of the exchange on which the entity is listed. The Notification targets the compliance monitoring function—particularly the coordination between ACRA, MAS, and approved exchanges.
Although the Notification is brief, it matters for practitioners because it clarifies institutional roles and supports a coordinated enforcement ecosystem. For listed entities, auditors, and corporate advisers, the practical effect is that ACRA’s remit includes cooperation aimed at monitoring compliance with accounting standards in financial statements issued by listed entities.
What Are the Key Provisions?
Section 1: Citation and commencement. Section 1 provides the formal name of the Notification and states that it comes into operation on 26 August 2025. For compliance planning, this commencement date is crucial: any monitoring or cooperation activities that rely on the assigned function would be anchored to the Notification’s effective date.
Section 2: Definitions. The Notification contains a focused set of definitions designed to identify the scope of entities and the standards to be monitored. The most important definition is “applicable accounting standards”, which—in relation to a listed entity—includes two categories:
- Accounting standards made or formulated by the Accounting Standards Committee under Part 3 of the Accounting Standards Act 2007, and that apply to the listed entity; and
- Accounting standards or practices that the listed entity’s financial statements must comply with under any written law or the rules of the approved exchange where the entity’s shares, units, stocks, or debt are listed for quotation.
This definition is broad. It captures both the core Singapore accounting standards framework and any additional or overlapping requirements that may arise from exchange rules or other written law. For lawyers advising listed entities, this means “compliance” is not limited to one set of standards; it also includes what the exchange expects and what other legal instruments require.
Section 2 also defines “approved exchange” as a corporation approved by MAS under section 9(1)(a) of the Securities and Futures Act 2001. This matters because the Notification’s scope is tied to the organised market operated by such an approved exchange. It also defines “listed entity” to include:
- a foreign company;
- a business trust; and
- a real estate investment trust (REIT),
provided that the entity’s shares, units, stocks, or debt are listed for quotation on an organised market operated by an approved exchange.
Section 3: Additional function (the operative provision). Section 3 is the heart of the Notification. It states that the Minister for Finance assigns to ACRA the function of cooperating with MAS and any approved exchange to monitor compliance by listed entities with the applicable accounting standards in financial statements issued by them.
Two points are particularly important for practitioners:
- Cooperation model: The function is framed as cooperation with MAS and approved exchanges. This suggests a coordinated approach rather than a siloed ACRA-only process. In practice, this can affect how information is shared, how monitoring is conducted, and how regulatory findings may be escalated.
- Monitoring focus: The function is specifically to monitor compliance with applicable accounting standards in financial statements. This is not framed as a general corporate governance oversight power; it is targeted at accounting standards compliance.
How Is This Legislation Structured?
The Notification is structured in a conventional, minimal format for subsidiary legislation:
- Part/Section 1: Citation and commencement (when it takes effect).
- Part/Section 2: Definitions (key terms used in the operative provision).
- Part/Section 3: Additional function (the assignment to ACRA).
There are no additional parts or complex schedules in the extract provided. The legislative design is therefore straightforward: define the relevant scope and standards, then assign the cooperation-and-monitoring function.
Who Does This Legislation Apply To?
The Notification applies indirectly to a defined class of market participants: listed entities. A “listed entity” is limited to foreign companies, business trusts, and REITs whose securities are listed for quotation on an organised market operated by an approved exchange. This is a narrower category than “all companies” and is tied to the listing context and the exchange approval framework.
While the Notification assigns a function to ACRA, its practical impact is felt by those responsible for preparing and issuing financial statements—typically the listed entity’s management, finance function, and external auditors. It also matters for advisers and compliance officers who ensure that financial reporting meets both Singapore accounting standards and any exchange rule requirements. Additionally, MAS and approved exchanges are part of the cooperation framework, meaning that monitoring outcomes may involve cross-agency or cross-institutional coordination.
Why Is This Legislation Important?
Even though the Notification is short, it has meaningful regulatory significance. First, it clarifies that ACRA’s role includes cooperating to monitor accounting standards compliance for listed entities. This helps align institutional responsibilities in Singapore’s capital markets ecosystem, where MAS oversees securities and exchange regulation and ACRA oversees accounting and corporate regulatory matters.
Second, the Notification’s definition of “applicable accounting standards” is expansive. It includes not only standards formulated under the Accounting Standards Act 2007 framework, but also any standards or practices required under written law or exchange rules. For practitioners, this means compliance assessments should be holistic. When advising a listed entity, counsel should consider:
- Which Singapore accounting standards apply to the entity’s reporting profile; and
- Whether the approved exchange’s rules impose additional reporting requirements or specify particular accounting treatments or disclosure expectations.
Third, the cooperation-and-monitoring framing suggests that compliance risk may be managed through coordinated regulatory scrutiny. While the Notification does not itself set out enforcement procedures, it provides the legal basis for ACRA to participate in monitoring activities alongside MAS and exchanges. In practical terms, this can influence how regulators request information, how findings are communicated, and how compliance remediation may be expected.
Finally, for legal drafting and compliance governance, the Notification is a reminder that “accounting standards compliance” is not merely a technical accounting issue—it is a regulated compliance domain with institutional oversight. Lawyers advising listed entities should ensure that internal controls, disclosure processes, and audit coordination are robust enough to withstand monitoring focused on applicable accounting standards.
Related Legislation
- Accounting Standards Act 2007
- Business Trusts Act 2004
- Accounting and Corporate Regulatory Authority Act 2004
- Securities and Futures Act 2001
- Monetary Authority of Singapore Act 1970
Source Documents
This article provides an overview of the Accounting and Corporate Regulatory Authority (Assignment of Function) Notification 2025 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.