Singapore Financial Reporting Standards (SFRS) basics — Costs and fees breakdown

Singapore Financial Reporting Standards (SFRS) are the accounting rules companies must apply when preparing financial statements, and the cost of compliance ranges from S$500 for simple SFRS for Small Entities accounts to several thousand dollars for full SFRS statements with disclosures. This guide explains the standards, who they apply to, and what preparation actually costs.

What Singapore Financial Reporting Standards are

SFRS are issued by the Accounting Standards Council and are closely aligned with International Financial Reporting Standards. Companies incorporated in Singapore must prepare financial statements that comply with SFRS, as required under the Companies Act 1967. Section 201 of the Companies Act 1967 requires directors to lay before the company financial statements that comply with the applicable accounting standards and give a true and fair view, which is why the choice of framework directly affects preparation cost. The standards are published by the Accounting Standards Council.

Who applies which framework

Most companies apply full SFRS. Smaller companies that meet the size criteria may apply SFRS for Small Entities, which has reduced disclosure and is cheaper to prepare. Investment holding companies and funds have particular measurement issues; our guide to the Section 13D offshore fund scheme illustrates how investment entities report and are taxed. Choosing the right framework early controls cost.

Cost and fee breakdown (2026)

Preparation of unaudited financial statements under SFRS for Small Entities typically costs S$500 to S$1,200. Full SFRS statements with fuller disclosures cost S$1,200 to S$3,500. Companies requiring XBRL filing with ACRA add S$300 to S$800 for tagging. Where a statutory audit is required, budget S$3,000 to S$8,000 for a small company. Consolidation of group accounts adds materially to fees, commonly S$2,000 or more.

Timelines and thresholds

Financial statements must be prepared and, where required, audited before the annual general meeting and before the annual return is filed within seven months of the financial year end. The small company audit exemption applies where a company meets at least two of three criteria over two consecutive years: revenue not exceeding S$10,000,000, total assets not exceeding S$10,000,000, and not more than 50 employees. Meeting these thresholds avoids audit fees entirely.

Step-by-step: preparing SFRS statements

First, confirm the applicable framework, full SFRS or SFRS for Small Entities. Second, ensure the trial balance is complete and reconciled. Third, apply recognition and measurement rules to revenue, leases and financial instruments. Fourth, draft the statements and notes. Fifth, tag for XBRL if required, and have directors approve and, if needed, arrange audit. Our companion guide on corporate tax exemptions and the partial exemption scheme shows how the accounting profit is then adjusted for tax, following IRAS rules.

Common mistakes and gotchas

Common problems include applying the wrong framework, mishandling revenue recognition under SFRS(I) 15, missing lease capitalisation, and underestimating XBRL tagging effort. Growing headcount past the audit-exemption employee threshold also matters; if you are hiring foreign founders or staff, review the EntrePass founders walkthrough.

Documents and information you will need

Accurate output depends on complete source records: bank statements for every account, sales invoices, purchase invoices and receipts, payroll records, loan and lease agreements, and fixed-asset registers. For GST-registered businesses, tax invoices must meet IRAS content requirements. The opening balances from the prior year’s financial statements must reconcile. Providing these promptly each period is the single biggest driver of lower fees and faster turnaround.

Consequences of getting it wrong

Inaccurate books lead to wrong GST returns and understated or overstated tax, both of which expose the company to IRAS penalties and interest. Poor records can invalidate the audit-exemption position and complicate financing. Directors remain responsible under the Companies Act 1967 for keeping proper records, so weak bookkeeping is ultimately a governance risk, not merely an administrative one.

How we can help

Raffles Corporate Services handles the full lifecycle described above: gathering the documents, meeting the deadlines, and coordinating with the relevant authority so nothing falls through the cracks. We work with a panel of corporate and employment law firms where formal legal advice is needed, and we keep fees transparent and fixed where possible so you can budget with confidence. Engaging early, before deadlines loom, is consistently the cheapest path.

FAQs

What does it cost to prepare SFRS financial statements? From S$500 for simple SFRS for Small Entities accounts to S$3,500 or more for full SFRS with disclosures.

Do all companies need an audit? No. Companies meeting the small company criteria are exempt but still prepare SFRS-compliant statements.

What is XBRL and does it cost extra? XBRL is a tagged data format ACRA requires from many companies; tagging typically adds S$300 to S$800.

Can I use SFRS for Small Entities? Only if the company meets the size criteria; it reduces disclosure and cost.

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.