News - Reporting Standards
SMEs To Get New Accounting Standard
For full details on SFRS for Small Entities, please refer to Accounting Standards Council website.
The Singapore Financial Reporting Standard for Small Entities (SFRS for Small Entities) will lower compliance costs, especially in financial reporting and training requirements, for these parties.
Entities can use this standard if their financial reporting period starts on or after 1 January 2011, said the Singapore Accounting Standards Council (ASC) in a media release yesterday.
The new standard is closely modelled after the International Financial Reporting Standard (IFRS) for Small and Medium Sized Entities issued last year by the International Accounting Standards Board. ASC also consulted the public and various stakeholders.
You are eligible to apply the SFRS for Small Entities if your entity:
- is not publicly accountable
- publishes general purpose financial statements for external users
- fulfills at least 2 of the following 3 conditions:
- has not more than S$10 million in total annual revenue
- has not more than S$10 million in total gross assets
- has not more than 50 employees in total
SMEs in Singapore currently have to comply with the full SFRS, which is based on the IFRS.