Singapore Financial Reporting Standards (SFRS) basics — Eligibility and requirements checklist

Singapore Financial Reporting Standards (SFRS) are the accounting standards that Singapore-incorporated companies must apply when preparing their financial statements. Set by the Accounting Standards Committee and closely aligned with international standards, they determine how revenue, assets, liabilities and disclosures are measured and presented for statutory filing.

Raffles Corporate Services works with a panel of corporate and employment law firms; this article is general information, not legal advice.

What Singapore Financial Reporting Standards are

Singapore Financial Reporting Standards are the body of accounting rules that companies incorporated in Singapore apply to their statutory financial statements. They are issued by the Accounting Standards Committee and are substantially converged with International Financial Reporting Standards, so a company reporting under SFRS produces statements that are comparable with those of international peers.

There are two principal frameworks. Full SFRS applies to larger and public-interest entities. SFRS for Small Entities (SFRS for SE) is a simplified framework available to companies that meet size criteria, reducing the disclosure and measurement burden for smaller businesses.

Who must apply which framework

A company qualifies to use SFRS for Small Entities if it is not publicly accountable and meets at least two of three size thresholds: total annual revenue of not more than S$10 million, total gross assets of not more than S$10 million, and not more than 50 employees. Companies that exceed the size limits, or that are publicly accountable, apply full SFRS.

Choosing the right framework early keeps your books, tax computation and audit position aligned. Our tax-loss and shareholding guidance at Carrying Forward Unutilised Tax Losses in Singapore: The Shareholding shows how the accounting numbers feed the tax position, and the practical bookkeeping steps sit in Appointing a Company Auditor in Singapore: Requirements, Small Company.

Eligibility and requirements checklist

  • Determine whether the company is publicly accountable; if so, full SFRS applies.
  • Test the three size criteria (revenue, gross assets, employees) to see whether SFRS for SE is available.
  • Prepare a complete set of financial statements: balance sheet, income statement, statement of changes in equity, cash-flow statement and notes.
  • Ensure the statements give a true and fair view and comply with the Companies Act 1967.
  • Determine whether an audit is required or whether the small-company audit exemption applies.

The small company audit exemption

Many SMEs are exempt from audit under the small company concept. A private company qualifies as a small company if it meets at least two of the same three thresholds (revenue not exceeding S$10 million, gross assets not exceeding S$10 million, and not more than 50 employees) for the immediately preceding two financial years. A company that is part of a group must also consider whether the group is a small group. Section 205B of the Companies Act 1967 sets out the small-company audit exemption, and Section 201 addresses the duty to lay financial statements that comply with the accounting standards.

Cost, timeline and filing

Plan around these practical figures and dates:

  • Financial statements must be prepared and, where required, audited before the annual general meeting and annual return.
  • Private companies must generally hold the AGM within six months of the financial year end and file the annual return within seven months.
  • Companies that are insolvent or meet other criteria must file financial statements in XBRL format with ACRA.
  • Bookkeeping and compilation fees for an SME commonly range from S$1,200 to S$6,000 a year depending on transaction volume.

For the tax filing that follows the accounts, our guides on corporate tax and ECI, including Changing Employer on Your Employment Pass in Singapore 2026: Process, , set out the sequence.

Common mistakes and gotchas

Common errors include applying full SFRS disclosures the company does not need, misclassifying the entity as eligible for SFRS for SE when it is publicly accountable, and preparing accounts that do not reconcile to the XBRL filing. A recurring trap is assuming audit exemption without testing the two-year look-back and the group position. Authoritative standards are published by the Accounting Standards Committee at www.iras.gov.sg and filing rules by www.acra.gov.sg.

FAQs

What is the difference between full SFRS and SFRS for Small Entities?
Full SFRS applies to larger and publicly accountable entities; SFRS for Small Entities is a simplified framework for companies that are not publicly accountable and meet the size thresholds.

What are the size thresholds for a small entity?
Meeting at least two of: annual revenue not exceeding S$10 million, gross assets not exceeding S$10 million, and not more than 50 employees.

Does my company need an audit?
Not if it qualifies as a small company under Section 205B of the Companies Act 1967, meeting at least two of the three thresholds for the previous two financial years, subject to the group test.

Do I need to file in XBRL?
Many companies must file financial statements with ACRA in XBRL format; the requirement depends on the company's status and solvency.

Need help with this? Call, SMS or WhatsApp +65 8501 7133, or email [email protected]. Raffles Corporate Services works with a panel of corporate and employment law firms; this article is general information, not legal advice.