Singapore issues SFRS for Small Entities
02 Dec 2010
The Singapore Accounting Standards Council (ASC) has issued the Singapore Financial Reporting Standard for Small Entities (SFRS for Small Entities).
The SFRS for Small Entities is based on the IFRS for SMEs. The main differences are the references to Singapore Financial Reporting Standards (SFRS) instead of IFRS, as well as the description of the scope and applicability of the SFRS for Small Entities. The ASC has stated in its accompanying 'Statement on Applicability' that these changes do not constitute a deviation from the IFRS for SMEs.
An entity is eligible to the apply the SFRS for Small Entities if it is not publicly accountable, publishes general purpose financial statements for external users, and meets the definition of a 'small entity' (for each of the previous two consecutive financial reporting periods, with amended application to newly incorporated entities). An entity qualifies as a small entity if it meets at least two of the three following criteria:
- total annual revenue of not more than S$10 million
- total gross assets of not more than S$10 million
- total number of employees of not more than 50.
The standard applies (as an option) as an alternative framework to the Singapore Financial Reporting Standard (SFRS) for the preparation and presentation of general purpose financial statements of entities for financial reporting periods beginning on or after 1 January 2011. Click for ASC press release (link to ASC website).