The Singapore Financial Reporting Standard (FRS) sets the accounting standards for companies in Singapore, and outlines the requirements for the preparation and presentation of financial statements. Some key features of the Singapore FRS include:
- Compliance with International Financial Reporting Standards (IFRS): The Singapore FRS is largely based on IFRS, and companies in Singapore must comply with the requirements set out in both the FRS and IFRS.
- Relevance and reliability: The FRS requires that financial statements be relevant, reliable, and provide a true and fair view of the company’s financial position, performance, and cash flows.
- Consistency: The FRS requires companies to apply accounting policies consistently from one period to another, and to disclose any changes in accounting policies.
- Materiality: The FRS requires companies to include in their financial statements only information that is material, that is, information that is significant enough to influence decisions made by users of the financial statements.
- Disclosure: The FRS requires companies to provide comprehensive disclosures in their financial statements, including information on the company’s accounting policies, significant transactions, and contingencies.
- Assets and liabilities: The FRS requires companies to classify and measure assets and liabilities based on their nature, function, and conditions, and to recognize them in the financial statements when they meet certain recognition criteria.
- Income and expenses: The FRS requires companies to recognize income and expenses in the financial statements when they are earned or incurred, regardless of when the cash is received or paid.
- Presentation and format: The FRS sets out the format and presentation requirements for financial statements, including the balance sheet, income statement, cash flow statement, and notes to the financial statements.
These are some of the key features of the Singapore Financial Reporting Standard, which companies in Singapore must comply with when preparing and presenting their financial statements.
If you would like any assistance with matters relating to your company’s financial statements or any company matters, please contact us at [email protected].