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Accounting Standards in Singapore

Accounting Standards in Singapore
The accounting standards in Singapore are named the Financial Reporting Standards. The Singapore Financial Reporting Standards (SFRS) are issued by the Accounting Standards Council (ASC). All businesses with financial periods beginning after January 1, 2003 have to abide by the SFRS.

Financial statements in Singapore

Financial statements of income-oriented businesses which have to be reported according to the SFRS are comprised of data on performance, position and cash flow. The financial statements must include:

•    The balance sheet;
•    The income statement;
•    A statement declaring all changes in equity or changes in equity which are not deriving from capital transactions with proprietors and distributions to proprietors;
•    The cash flow statement;
•    A list of accounting policies;
•    Notes to the financial statements.

Requirements of the accounting standards in Singapore

The ASC sets the framework for the accounting standards in Singapore for both national and foreign businesses which activate in the country in compliance with the International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board. Our accountants in Singapore can provide further information on this matter.

The accounting standards in Singapore require all companies to prepare their accounting statements based on the accrual basis. According to the accrual basis, expenses are matched with the connected incomes and/or are reported at the time of the expense occurrence, not when the cash payment is effectuated.  As a result, the income statement measures better the profitability of a business during a certain time period.

The accounting standards in Singapore contain 39 standards and are applied based on the size of a business, the ASC issuing different financial standards for small businesses and charitable entities. Companies which are listed on the Singapore Stock Exchange also have to comply with a different set of accounting requirements.

Since the accounting standards issued by the ASC are quite complex, we invite you to get in touch with our accounting firm in Singapore for more details on the Financial Reporting Standards in this country. In case you need an audit firm in Singapore, you can rely on the expertise of our accountants who are specialists in performing audits for companies.