![\"Singapore](\"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.3ecpa.com.sg\/wp-content\/uploads\/2024\/06\/photo-singapore-financial-reporting-standards-400x300-1.jpg\" "\\"Singapore")
In Singapore, accounting standards are developed for two reasons. The first is accounting standards are developed in the public interest in support of the country\u2019s corporate governance. And secondly, accounting standards are developed in support of the country\u2019s reporting framework. <\/p>\n
To enjoy public confidence while setting up an accounting standards process, it must be based on a reliable and strong foundation. The Accounting Standards Council or ASC is the one that is responsible for formulating these accounting standards, including the Singapore Financial Reporting Standards.<\/p>\n
The ASC is also equally responsible for the Interpretations of FRSs (INT FRSs). It is the job of the ASC to make these accounting standards known to the public. The other duties of the ASC include:<\/p>\n
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Smaller companies in Singapore have a different set of reporting standards to adhere to, called the Singapore Financial Reporting Standards (SFRS) for Small Entities. Simply put, the SFRS for Small Entities is a simpler, less complicated version of the full Singapore Financial Reporting Standards.<\/p>\n
A smaller company \u2013 or Small Entity- in this case, qualifies only when a company has met the requirements below:<\/p>\n
*Note: If the company is part of a group of companies, the above will be considered and applied under the terms of a consolidated basis.<\/p>\n
The SFRS for Small Entities exists with the aim of making it easier for smaller companies to fulfil their accounting requirements. Smaller companies still must face the compliance costs when it comes to preparing their financial statements, but the SFRS for Small Entities helps to lighten the load.<\/p>\n
The main differences between the regular Singapore Financial Reporting Standard (SFRS) and the SFRS for Small Entities is especially obvious in these four areas: 2. Investment Properties<\/strong> 3. Disclosure on Financial Risk Management<\/strong> 4. Property, Plant & Equipment<\/strong> <\/p>\n Smaller companies \u2013 especially new start-ups \u2013 will be able to benefit a lot more from the SFRS for Small Entities compared to if they were to follow the regular Singapore Financial Reporting Standards guideline. Among the benefits smaller companies stand to gain from abiding by the SFRS for Small Entities include:<\/p>\n
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\n1. Associates<\/strong>
\nSFRS \u2013 The equity method is required
\nSFRS for Small Entities \u2013 Cost model is an available option<\/p>\n
\nSFRS \u2013 Disclosure of fair value and fair value measurement is needed. Cost model is available as an option.
\nSFRS for Small Entities \u2013 Disclosure of fair value is not needed if cost model is adopted. If fair value measurement is not available, cost model is an available option under property, plant and equipment.<\/p>\n
\nSFRS \u2013 Required
\nSFRS for Small Entities \u2013 Not required<\/p>\n
\nSFRS \u2013 Required
\nSFRS for Small Entities \u2013 Opening and closing balance of the prior year is not required.<\/p>\nHow Smaller Companies Stand to Benefit from The SFRS for Small Entities.<\/h3>\n