Accounting principles and

Practices

Accounting standards are known as Singapore

Financial Reporting Standards (SFRS) and are
based on the IFRS.

All companies with financial period starting on or

after 1 January 2003 have to comply with SFRS.

The IASB has

the authority
to set IFRS

In Singapore, the
Accounting Standards
Council (ASC) has the
statutory authority to issue
SFRS for adoption

Accounting principles and

Practices

39
Accounting different
Presentation of
financial
Standards standards
statements
in
FRS X
Recognition of
Singapore
(e.g. FRS revenue
1)
Accounting for
inventories

.

Accounting principles and

Practices
Companiesexcept small companies
must apply SFRS which are
substantially the same as IFRS
( the PwC publication A practical guide to New
Singapore Financial Reporting standards for
2013 )

Small companies apply SFRS for Small

Entities
Announced in November 2010

Accounting principles and Practices

Total annual revenue of not more than
S$10 million

SMEs?

Total gross assets of not more than S$10

million
Total number of employees is not more
than 50

Adhering to the full SFRS - difficult

SMEs constitute the bulk of the companies
operating in Singapore.
+ IASB issued an IFRS specifically for SMEs in
2009.
+ ASC of Singapore announced the issuance
SFRS for SMEs in November 2010.

Accounting principles and

Practices
For SMEs:
IFRS for SMEs have not been
adopted.
Effective from 1 January 2011with
ensuring quality, transparency and
comparability
In order to benefit the investment
community and other users of
financial statements.