Singapore legislation
Regulation 84
Regulation 84
“Non-material constituent entity” or “NMCE”
Subregulation 1
In this Division, “non-material constituent entity” or “NMCE” means a constituent entity of an MNE group (other than one consisting solely of an main entity and its permanent establishment) —
whose assets, liabilities, income, expenses and cash flows are excluded from the consolidated financial statements of the ultimate parent entity solely on size or materiality grounds; and
that meets the conditions A, B and C.
Subregulation 2
Condition A is that the consolidated financial statements have been prepared in accordance with an acceptable financial accounting standard or, if not prepared in accordance with such standard, have been prepared with adjustments to prevent any material competitive distortions.
Subregulation 3
Condition B is that the consolidated financial statements are externally audited.
Subregulation 4
Condition C is that, if the entity’s revenue exceeds EUR 50 million for the financial year in question, its financial accounts for that financial year that are used to prepare country‑by‑country report (as defined in regulation 67(2)), are prepared in accordance with an acceptable financial accounting standard or an authorised financial accounting standard.
Subregulation 5
A permanent establishment is an NMCE only if its main entity is itself an NMCE.