Singpaore listed entities: IFRS convergence - unremitted earnings

As you are aware, Singapore listed entities are required to prepare their financial statements in IFRS.
 
One difference between SFRS and IFRS relates to the accounting for deferred tax for unremitted earnings ( this unremitted earnings relates to all overseas income earned but not yet remitted to Singapore).
 
We will share with you one example below:
 
For instance, certain Singapore entities within the Group have recognized receivable from overseas entities for interest income from overseas entities not yet remitted to Singapore.
Under Recommended Accounting Practice (RAP) 8 issued by the Institute of Certified Public Accountants of Singapore (ICPAS), no deferred tax is accounted for temporary difference arising from foreign income (excluding: distributable earning) not yet remitted to Singapore if:(a) the entity is able to control the timing of the reversal of the temporary difference; and (b) it is probable that the temporary difference will not reverse in the foreseeable future.
Under IFRS, the Group no longer has the option of applying RAP 8. Hence, the Singapore entities are required to provide deferred tax for these unremitted earnings.
 
Impact:
 
For entities who have recorded overseas interest income (but not yet remitted to Singapore) in the past - please check if deferred tax has been recorded. If not, full amount of deferred tax shall be recorded.
 
Please reach us at myauditing@gmail.com if you need more clarification. Thanks.