1. What are Singapore accounting standards?
The Singapore accounting standards are issued through the Accounting Standards Council of Singapore, or ASC for short, and are known as Singapore Financial Reporting Standards or SFRS. They are substantially similar to the standards under IFRS to reduce divergence and provide comparability across the world.
The SFRS framework comprises two sets of standards, mainly: SFRS and SFRS(I). SFRS, applicable for companies incorporated in Singapore, is grounded on the principles of IFRS with slight modifications. SFRS(I) - or Singapore Financial Reporting Standards-International-targets those entities listed on the SGX with standards that fully align with IFRS to facilitate proper comparability of financial statements across borders.
SFRS for Small Entities gives the small business enterprise a lighter reporting framework. The standard will reduce the financial reporting burden by providing simpler requirements for small- and medium-sized entities meeting certain criteria. Thus, applying the Singapore accounting standards becomes easier without problems that may be felt by larger companies.
Additionally, sustainability reporting requirements have been integrated into Singapore's accounting standards. The listed entities on the SGX are required to prepare a sustainability report that expresses all the dimensions of ESG performance, reflecting the emphasis that Singapore places on responsible and transparent business practices.
The ASC reissues SFRS periodically to ensure that it keeps up with the changes made to IFRS, which enables the Singapore standards to meet international needs regarding both investment and operations.