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IFRS - Financial Reporting Standards Singapore - FCHAIN

IFRS - Financial Reporting Standards Singapore - FCHAIN

Singapore financial reporting standards (international) – SFRS

Enterprise owners who generate profits create detailed reports on the finances received or spent. The requirements for the type of report are presented in the guidelines known as Singapore financial reporting standards (international). It contains all the rules for quick familiarization.

Specialists are often engaged to avoid spending a lot of time studying the requirements. They have enough experience and help with the preparation of accounting documentation. You have to decide which method suits you, but you should not miss the opportunity to delve into the peculiarities.

International financial center: what you need to know

The requirements for maintaining and preparing financial statements are the same for all countries the financial center serves. The list of responsibilities of the organization includes several accounting advisory services:

reviewing reporting data to determine compliance with regulations;
producing global reports to demonstrate market conditions;
analyzing the market situation, the changes of which are related to resources.

The services are provided to different clients, and the place of registration of the company does not affect the work results. So, the center’s representatives assess finances and other aspects of doing business: technology, rights, and resources.

The main Accounting processes

Establishing accounts of the company’s activities means collecting data on input capital and presenting the results of using funds. Many nuances will need to be considered to meet obligations, including the scope of work or the length of the reporting period.

For example, Singapore accounting standards make reporting monthly, quarterly, or annually possible. Financial reporting standards become public once the report is published. This means there is little time to check and correct inaccuracies before the papers are transmitted.

The accounting cycle consists of financial transactions, journal entries, general ledger entries, and a trial balance and reporting period. The completion of one cycle indicates that the next cycle is beginning

International financial center Singapore

Singapore Public Market: accounting statement

The Singapore exchange was formed in 2008, but finding answers to some questions is not easy. Let’s start with the fact that reporting information from companies is provided, including in this market. This way, the government of the country gets:

access to financial reports of large and small enterprises of the country;
opportunity to analyze the current state of the market;
ways to check the compliance of activities with the established rules.

The intention to bring its standards closer to international ones has not been fully realized. However, it has been clear for a long time that the goal will be achieved. For this reason, it is necessary to take into account the innovations and strive to fulfill the requirements of IFRS Singapore.

Differences between SFRS and SFRS for SE

The standards for reporting documents apply to all members of the business sector. However, choosing between company requirements and writing rules for small businesses is possible. The changes to the standards are minor, but they affect business results.

Following simple guidelines, choosing an acceptable option, and increasing the company’s profitability will be possible. So, it is worth paying attention to the standards for SE in the following cases:

you prepare a new product for market launch, and the amount of profit remains in doubt;
there are no plans to increase the number of employees (over 50) soon;
the planned level of revenue is less than 10 million Singapore dollars.

The full suite of standards is designed for entrepreneurs planning to scale up and have revenues above S$10 million. As a result, equity holders can reduce costs and increase capital.

Financial reporting standards compliance advisory

Finding the best solution for your current results and plans is difficult. It is worthwhile to use the information offered or get expert advice. Using this approach, you can comply with standards, publish reports on time, and avoid unforeseen risks.

SFRS Singapore (SE), SFRS(I), and IFRS

Businesses operating in Singapore are obliged to choose their preferred standards. The differences between the programs are subtle, as they are all developed based on international requirements. So, more information about each option will be required:

IFRS. Standards are developed to simplify financial reporting. For example, accounting advisory services include mandatory guidelines that are used worldwide.
SFRS(I). The main difference from the previous standard is the drawing up of reports after the fact of a transaction. Information that relates to the actual transaction between accounts is not provided.
SFRS for SE. Small companies get the opportunity to use simplified reporting requirements. This way, Singapore supports small businesses and offers flexible terms and conditions.

You must meet additional requirements (turnover of funds, number of employees) to apply one of the proposed options.

Consultation with experts

Accounting advisory specialists can help you choose the right Singapore accounting standards. A lack of knowledge and understanding of the processes will not allow you to select the best option. It is much simpler and easier to prepare reports with the help of experts.