Singapore legislation
Regulation 68
Regulation 68
“Qualified financial statements”
Subregulation 1
In this Division, “qualified financial statements”, in relation to an MNE group, means —
the financial accounts used to prepare the consolidated financial statements of the ultimate parent entity; or
financial statements of constituent entities of the MNE group prepared in accordance with an acceptable financial accounting standard or authorised financial accounting standard, but only if the information in the financial statements is reliable.
Subregulation 2
Whether information in financial statements is “reliable” is to be determined by reference to the GloBE rules.
Subregulation 3
Where the assets, liabilities, income, expenses and cash flows of a constituent entity of an MNE group are excluded from the consolidated financial statements of the ultimate parent entity of the MNE group solely due to size or materiality grounds, the financial accounts of that constituent entity that are used for the preparation of the MNE group’s qualifying country‑by‑country report are to be regarded as forming part of the financial statements in paragraph (1)(a) or (b), as the case may be.
Subregulation 4
Where a permanent establishment does not have financial statements for the purpose of preparing the financial statements in paragraph (1)(a) or (b), the separate financial statements prepared by its main entity for financial reporting, regulatory, tax reporting or internal management control purposes are to be regarded as forming part of the financial statements in paragraph (1)(a) or (b), as the case may be.
Subregulation 5
Where purchase price accounting adjustments (called in this regulation PPA adjustments) are included in any financial accounts of a constituent entity used to prepare the consolidated financial statements in paragraph (1)(a) or any financial statements of a constituent entity in paragraph (1)(b), those financial accounts or financial statements (as the case may be) are not considered “qualified financial statements”, unless the condition in paragraph (6) is met.
Subregulation 6
The condition mentioned in paragraph (5) is that a qualifying country‑by‑country report has not been submitted for the MNE group in relation to the jurisdiction concerned for any financial year beginning after 31 December 2022 that was based on the constituent entity’s financial accounts or financial statements without PPA adjustments, except in a case where the constituent entity was required by the law of that jurisdiction to change its financial accounts or financial statements to include the PPA adjustments.