Singapore Financial Reporting Standard SFRS for Small Entities
SFRS for Small Entities Overview
The Accounting Standards Council (ASC) main focus is to ensure the accounting standards consistency, facilitate similarity in financial statements among different entities and enhance the integrity and transparency in financial reporting. They prescribed Singapore Financial Reporting Standards (SFRS) for publicly accountable entities and Singapore Financial Reporting Standard for Small Entities (SFRS for Small Entities) to suit other non-publicly accountable entities. Both SFRSs are outlined to the use of the general purpose financial statements, which provide common information about the financial state, performance and cash flows of an entity, and other financial reporting for all income-oriented entities.
The main purpose of SFRS for Small Entities, introduced in November 2010, comes in reply to a great call for a simpler financial reporting standard that is designed to the small and private entities needs. The standard seeks out to cut the financial reporting burden rising from the full SFRS and provides fit-for-purpose financial statements to the users. The objective of general purpose financial statements for small entities or non-publicly accountable entities is to provide financial information solely for economic decision making entities owners or managers and tax authority or other government bodies in general.
SFRS for Small Entities defined “small entities” as the entity that is not accountable publicly for its equity or debt instruments are transacted or in the process of issuing such instruments for transaction in a public market like any stock exchange; or a deposit-taking entity like banks, securities brokers/dealers, insurance companies, mutual funds and investment companies; or a public company described under the Singapore Companies Act (Cap.50); or a charity described under the Charities Act (Cap.37).
The “small entity” is given eligible criteria where at the end of financial reporting period meets at least two of the three following conditions:
- total annual revenue within a financial year not exceeding S$10 million;
- total assets within a financial year not exceeding S$10 million;
- total number of full time employees not exceeding 50.
SFRS for Small Entities is applicable to any “small entities” as an option. Application must meet the “small entity” criteria for the qualifying period in the first and second or the previous two consecutive financial reporting periods. For latest full details, you may check out the Accounting Standards Council website at www.asc.gov.sg
Our accounting services follow accounting standards consistency and our bookkeeping services support the financial statements needs. For good financial statements comes in good bookkeeping records, please contact us to have your good bookkeeping records starting today.