Singapore legislation
Regulation 30
Regulation 30
Election to use realisation principle
Subregulation 1
The filing entity of an MNE group may make an election in a GloBE information return (whether filed in Singapore or in another jurisdiction) in accordance with the GloBE rules that all of the constituent entities of the MNE group located in a jurisdiction, or all of the constituent entities of the MNE group located in a jurisdiction that are investment entities, are to use the realisation principle in determining gains and losses in relation to —
all assets and liabilities that are subject to fair value or impairment accounting; or
tangible assets that are subject to fair value or impairment accounting.
Subregulation 2
If an election in paragraph (1) is effective for a financial year in relation to the constituent entities located in a jurisdiction as described in that paragraph, the FANIL for that financial year of each of those constituent entities must be adjusted to take the following into account:
gains and losses in relation to the assets or liabilities to which the election applies that are attributable to fair value or impairment accounting are excluded;
the carrying value of an asset or liability to which the election applies that is used to determine any gain or loss in respect of that asset or liability, is the carrying value of that asset or liability at the later of —
the commencement of the first financial year for which the election applies; and
the time the asset was acquired or the liability was incurred.
Subregulation 3
If an election in paragraph (1) is revoked, the FANIL of each constituent entity in respect of which the election was made must be adjusted to include the relevant amount as income or loss in the first financial year for which the election ceases to apply.
Subregulation 4
An election under paragraph (1) must not be revoked for the financial year for which it is made or for any of the subsequent 4 financial years, and any such revocation has no effect.
Subregulation 5
If an election under paragraph (1) is revoked for a financial year, another election under that paragraph must not be made (whether in Singapore or in another jurisdiction) in respect of the constituent entities located in that jurisdiction for that or any of the subsequent 4 financial years, and any such election has no effect.
Subregulation 6
In paragraph (3), the “relevant amount”, in relation to a constituent entity, is the aggregate of A − B, for each asset or liability that was subject to the election in paragraph (1) and that remains held by the constituent entity on the first day of the first financial year for which the election ceases to apply, where —
A is the fair value of the asset or liability on that day; and
B is the carrying value of the asset or liability as determined in accordance with paragraph (2)(b).