Singapore Financial Reporting Standards (SFRS) basics — Timeline and processing benchmarks

The Singapore Financial Reporting Standards are the accounting rules every incorporated company must apply when preparing its financial statements. In practice, most private companies prepare statements within three to four months of financial year-end, apply full SFRS or the lighter SFRS for Small Entities, and lay the accounts before members at the AGM.

What the Singapore Financial Reporting Standards are

The Singapore Financial Reporting Standards, issued by the Accounting Standards Committee, are substantially aligned with International Financial Reporting Standards. They prescribe how transactions are recognised, measured, presented and disclosed, covering revenue, leases, financial instruments, income taxes, and consolidation, among many topics. Every company incorporated under the Companies Act 1967 must prepare financial statements that comply with the applicable standards, and Section 201 of the Companies Act 1967 addresses the duty of directors to present compliant financial statements to members.

Smaller companies may apply the SFRS for Small Entities, a simplified framework that reduces disclosure and measurement complexity for entities that meet the size criteria. Micro-entity concessions apply further down the scale. Choosing the right framework at the outset avoids restatement later.

Who needs to understand SFRS

Directors, finance staff and founders all rely on SFRS-compliant accounts, whether or not the company is audited. Even where an audit exemption applies, the statements must still comply with the standards. A founder preparing for fundraising, a director signing off accounts, and a finance lead choosing a framework each need the basics below.

Frameworks and eligibility

Full SFRS applies by default. SFRS for Small Entities is available to a company that is not publicly accountable and meets at least two of three size thresholds: total annual revenue of not more than S$10 million, total assets of not more than S$10 million, and not more than 50 employees. The audit exemption for a small company uses the same thresholds, assessed over the financial year and the one before. Publicly accountable entities, such as those holding assets in a fiduciary capacity for a broad group, must apply full standards.

Cost and timeline benchmarks

Preparing unaudited financial statements under SFRS for a small company typically takes two to four weeks once the trial balance is finalised, and costs between S$500 and S$1,500 depending on complexity. A statutory audit, where required, commonly runs four to eight weeks and costs from S$3,000 upward for a small entity. XBRL preparation for the ACRA annual return adds a further step, usually S$200 to S$600 for a simplified filing. Directors should aim to finalise statements within three to four months of year-end to leave room for the AGM and the seven-month annual-return deadline. For how the SFRS numbers translate into the tax computation, see our Foreign Sourced Income Exemption Section 13(8) Singapore (2026) guidance, and for a related on-site companion review our Singapore Financial Reporting Standards (SFRS) basics article.

Step-by-step: producing SFRS financial statements

Start from a finalised, reconciled trial balance. Confirm the reporting framework, full SFRS or SFRS for Small Entities. Prepare the primary statements: the statement of financial position, the statement of comprehensive income, the statement of changes in equity, and, where required, the statement of cash flows. Draft the notes, including accounting policies and required disclosures. The directors review and approve the statements, sign the directors’ statement, and, if applicable, the auditor issues an opinion. The statements are laid before members, and the financial data is converted to XBRL for the annual return filed with ACRA.

Common mistakes and gotchas

A frequent error is applying the wrong framework, then discovering at audit that full SFRS was required. Another is weak note disclosure, especially related-party transactions and going-concern assessment. Revenue recognition timing is a recurring trap for firms with contracts spanning periods. Companies also misjudge the audit-exemption thresholds by looking at a single year rather than the two-year test. Finally, XBRL is often left to the last minute, delaying the annual return.

Related guides

SFRS-compliant accounts feed directly into corporate tax and, for employers, into how staff costs and foreign-worker levies are presented. Companies with foreign hires should review our Singapore EP and S Pass Salary Floors Rising guidance on the employment side that flows into the accounts.

FAQs

Who issues the Singapore Financial Reporting Standards? The Accounting Standards Committee, with standards largely aligned to IFRS.

Can a small company use a simplified framework? Yes; SFRS for Small Entities is available to companies that are not publicly accountable and meet the size criteria.

What are the small-company size thresholds? At least two of: revenue up to S$10 million, assets up to S$10 million, and up to 50 employees.

How long does it take to prepare statements? Two to four weeks for a small company once the trial balance is finalised.

Do audit-exempt companies still follow SFRS? Yes; the standards apply regardless of whether an audit is required.

Authoritative sources: the standards themselves at the Accounting Standards Committee, filing and XBRL at ACRA, and tax treatment at IRAS.

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.