Clause 25

by inserting, immediately after the words “in accordance with FRS 39” in subsection (1), the words “or SFRS for Small Entities (as the case may be)”;

by inserting, immediately after subsection (3), the following subsections:“(3A) A person who prepares or maintains financial accounts in accordance with SFRS for Small Entities may, subject to such conditions as the Comptroller may specify, elect in accordance with subsection (4A) not to be subject to this section; and if the person so elects, he shall not be treated as a qualifying person from the year of assessment relating to the basis period during which he first prepares financial accounts in accordance with SFRS for Small Entities.(3B) A person is not entitled to make an election under subsection (3) if he is already subject to this section because he did not make an election in accordance with subsection (4A), or he had revoked under subsection (5) his election made in accordance with subsection (4A).(3C) A person is not entitled to make an election under subsection (3A) if he is already subject to this section because he did not make an election in accordance with subsection (4), or he had revoked under subsection (5) his election made in accordance with subsection (4).”;

by inserting, immediately after subsection (4), the following subsection:“(4A) The election referred to in subsection (3A) shall be made by the person by notice in writing to the Comptroller —

at the time of lodgment of the return of income for the year of assessment referred to in that subsection; or

within such further time as the Comptroller may allow.”;

by inserting, immediately after the words “subsection (3)” in subsection (5), the words “or (3A)”;

by inserting, immediately after the words “in accordance with FRS 39” in subsection (7), the words “or SFRS for Small Entities”;

by deleting subsection (8) and substituting the following subsection:“(8) The provisions of this section pertaining to FRS 39 shall have effect for any basis period beginning on or after 1st January 2005; and the provisions of this section pertaining to SFRS for Small Entities shall have effect for any basis period beginning on or after 1st January 2011.”;

by deleting the definition of “FRS 39” in subsection (10) and substituting the following definition:“ “FRS 39” means the financial reporting standard known as Financial Reporting Standard 39 (Financial Instruments: Recognition and Measurement) that is treated as made by the Accounting Standards Council under Part III of the Accounting Standards Act (Cap. 2B), as amended from time to time;”;

by deleting the definition of “qualifying person” in subsection (10) and substituting the following definitions:“ “qualifying person”, in relation to any year of assessment, means —

a person who is required to prepare or maintain financial accounts in accordance with FRS 39 and who has not made an election under subsection (3) for that year of assessment;

a person who prepares or maintains financial accounts in accordance with SFRS for Small Entities and who has not made an election under subsection (3A) for that year of assessment; or

a person who is treated as a qualifying person under subsection (5) or (7) for that year of assessment,as the case may be;“SFRS for Small Entities” means the financial reporting standard known as Singapore Financial Reporting Standard for Small Entities made by the Accounting Standards Council under Part III of the Accounting Standards Act, as amended from time to time.”; and

by inserting, immediately after the words “FRS 39” wherever they appear in subsection (11), the words “or SFRS for Small Entities (as the case may be)”.