Companies in each country are required to submit various documents related to their financial status for a certain period. Through these documents, companies disclose information about their financial performance. In Singapore, financial reporting depends on the type of company submitting these documents. Also, financial reports are filed with the Accounting and Corporate Regulatory Authority by respecting certain regulations. All companies in the city-state must respect certain accounting standards, which in Singapore are known as Financial Reporting Standards. This set of rules is prepared and updated on a yearly basis by the Accounting Standards Council (ASC) in Singapore.
The ASC drafts the accounting standards for both local and foreign companies operating in Singapore in accordance with the International Financial Reporting Standards (IFRSs) prepared by the International Accounting Standards Board. According to the Financial Reporting Standards, all Singapore companies must prepare their accounting statements on basis called the accrual basis. This way, transactions are acknowledged in the moment they happen and then are logged in the accounting records.
The Singapore Financial Reporting Standards are made up of 39 standards noted with FRS followed by a digit. It is also important to know that in Singapore accounting standards are prepared based on the size of the company, which is why the ASC has drafted different financial standards for small entities and charitable companies. Companies listed on the Singapore Stock Exchange are also subject to different accounting requirements. A law firm in Singapore can provide you with more information about the applicable financial standards to each type of company.
Singapore companies are required to file the following documents with the Inland Revenue Authority:
The Financial Reporting Standards require the documents above to reflect the following information about the companies’ financial status:
Considering these are just a few of the accounting standards the ASC provides for, we invite you to contact our lawyers in Singapore for detailed information about preparing the annual financial statements in order to comply with these standards.
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