Every incorporated company in Singapore (unless dormant and exempt) must prepare financial statements that comply with Singapore Financial Reporting Standards (SFRS). These standards are closely aligned with international standards, which is part of why Singapore accounts are trusted by banks and investors worldwide. The practical question for most SMEs is which version of the standards applies.
Full SFRS
Full SFRS is closely aligned with IFRS (International Financial Reporting Standards). It applies to larger companies and any company that is publicly accountable (for instance, one whose shares or debt are traded, or that holds assets in a fiduciary capacity). It carries the most extensive recognition, measurement, and disclosure requirements.
SFRS for Small Entities (SFRS for SE)
A simplified framework available to companies that are not publicly accountable and that meet at least two of three size criteria for the current and prior period: 1. Total revenue ≤ S$10 million 2. Total gross assets ≤ S$10 million 3. Number of employees ≤ 50 It significantly reduces disclosures and simplifies certain measurements — a meaningful saving in preparation time and audit cost for qualifying SMEs.
The Core Financial Statements
Whichever framework applies, a complete set generally includes:
- Statement of Financial Position (balance sheet)
- Statement of Profit or Loss and Other Comprehensive Income
- Statement of Changes in Equity
- Statement of Cash Flows
- Notes, including accounting policies and supporting detail
Choosing a Financial Year End
Companies may choose any FYE; 31 December and 31 March are the most common. Your first FYE sets your basis period for tax and drives all downstream deadlines (financial statement circulation, Annual Return, ECI, and Form C-S/C). A first set of accounts should not exceed 18 months.
Audit vs Exemption
A 'small company' (meeting at least two of the same three criteria across the last two financial years) is exempt from statutory audit — but exemption from audit does not remove the duty to prepare compliant financial statements. Banks, investors, and grant bodies may still require audited accounts.
XBRL Filing
Most companies must file their financial statements with ACRA in XBRL. The extent of XBRL detail depends on company type and solvency, and is filed together with the Annual Return.
How Gateway of Asia Helps
We determine the correct framework for your company, prepare compliant financial statements (full SFRS or SFRS for SE), convert them to XBRL, and coordinate audit only where it's genuinely required — keeping cost proportionate.