BDO Spotlight

Managing Partner's Message

As we navigate an era of significant transformations in financial reporting, taxation, business resilience, and technological advancement, I am pleased to present our new quarterly newsletter, BDO Spotlight, featuring the latest insights from our team of professionals.

IFRS 18

The introduction of IFRS 18 marks a significant milestone in financial reporting standards. In response to investor concerns about the need for more consistency in how entities present their financial performance, the International Accounting Standards Board (IASB) has developed IFRS 18 to replace IAS 1. Effective for annual reporting periods beginning on or after 1 January 2027, this new standard aims to enhance comparability and transparency across financial statements by introducing stricter classification, aggregation, and disaggregation requirements and new management-defined performance measures. This transformative update will require careful business planning and adjustments to ensure compliance and maintain clear, reliable financial reporting.

InvoiceNow for GST-registered businesses

The Inland Revenue Authority of Singapore (IRAS) has announced the phased adoption of InvoiceNow for GST-registered businesses to enhance tax reporting and compliance through e-invoicing. Starting 1 November 2025, newly incorporated companies voluntarily registering for GST can use InvoiceNow, with all new voluntary GST registrants following suit from 1 April 2026. InvoiceNow, operating on the Peppol network, allows the direct transmission of structured digital invoices, improving efficiency and accuracy. From 1 May 2025, existing GST-registered businesses can also voluntarily adopt InvoiceNow. Businesses are encouraged to start preparations early, ensuring their accounting systems are compatible, registering for InvoiceNow, obtaining a Peppol ID, and connecting to the IRAS system. The adoption of InvoiceNow offers long-term benefits such as streamlined processes, reduced errors, lower costs, and improved cash flow management.

Vision for 2026

In a world of unpredictability, BDO Digital's vision for 2026 outlines how advanced technology can transform businesses amidst economic and geopolitical uncertainties. Envisioning four future scenarios—World Accelerated, World Sustained, World Fragmented, and World Divided—the study highlights technology as a key driver for mitigating risks, enhancing resilience, and seizing growth opportunities. With 81% of business leaders viewing technology as crucial for strategy and 84% stressing its necessity for survival, the study underscores the significant return on tech investments. The scenarios, shaped by technological progress and market evolution, guide leaders in proactive planning. Businesses can thrive despite uncertainties by adopting a tech-forward approach and fostering an agile, innovative culture. 

AI developments

Artificial Intelligence (AI) is revolutionising various industries by enhancing efficiencies, decision-making, and user experiences. However, the growing dependence on AI brings the crucial need for trustworthiness and reliability to the forefront. Establishing trust in AI systems is essential for its broad adoption and can be achieved through transparency, accountability, and robust frameworks for testing and auditing. Significant initiatives like the Singapore PDPC AI Governance Framework and the IMDA GenAI Model Governance Framework provide guidelines for responsible AI deployment. By emphasising transparency, identifying biases, and ensuring ethical considerations are integrated into AI systems, organisations can foster trust and unlock the full potential of AI while minimising risks.

Lastly, I would like to express my gratitude to all our clients and business partners for your unwavering support and wish you a highly successful second half of the year, surpassing the first. Happy reading!