IFRS

IFRS | Bestar

IFRS and SFRS in Singapore

When discussing IFRS in Singapore, it's important to understand the relationship between International Financial Reporting Standards (IFRS) and Singapore Financial Reporting Standards (SFRS). Here's a breakdown:

• SFRS and IFRS Convergence:

  
  

  • Singapore has made a significant effort to align its accounting standards with IFRS.

  • Specifically, Singapore Financial Reporting Standards (International) (SFRS(I)s) are very closely converged with IFRS.

  • This convergence aims to enhance the comparability of financial statements prepared in Singapore with those prepared in other countries using IFRS.

    
    

• Key Points:

  
  

  • Listed companies in Singapore are required to apply SFRS(I)s, which are essentially IFRS.

  • The Accounting and Corporate Regulatory Authority (ACRA) oversees the implementation of these standards in Singapore.

  • While largely aligned, there can be some local adaptations to address Singapore's specific regulatory and market conditions.

  • It is also important to note that the Singapore Financial Reporting Standard for Small Entities (SFRS for Small Entities) is in place to allow for simplified reporting requirements for smaller companies.

    
    

In essence, Singapore has adopted IFRS through its SFRS(I)s, ensuring that its financial reporting practices are in line with international standards.

To provide a more comprehensive understanding of IFRS in Singapore, here's a deeper dive into key aspects:

Key Regulatory Bodies and Standards:

• Accounting and Corporate Regulatory Authority (ACRA):

  • ACRA plays a crucial role in regulating business entities and public accountants in Singapore.

  • It oversees the adoption and implementation of accounting standards, including SFRS(I)s.

  • ACRA's focus is on ensuring transparency and reliability in financial reporting.

    
    

• Singapore Financial Reporting Standards (International) (SFRS(I)s):

  
  

  • These standards are the Singaporean equivalent of IFRS.

  • They are designed to align Singapore's financial reporting practices with international norms.

  • This alignment facilitates cross-border investment and enhances the comparability of financial statements.

    
    

• Institute of Singapore Chartered Accountants (ISCA):

  
  

  • ISCA is the national accountancy body in Singapore.

  • It contributes to the development and implementation of accounting standards.

  • ISCA also provides guidance and training to accounting professionals.

Key Considerations:

• Convergence with IFRS:

  • Singapore's commitment to converging with IFRS is a strategic move to maintain its position as a global financial hub.

  • This convergence promotes investor confidence and facilitates international business transactions.

• SFRS for Small Entities:

  • Recognizing the unique needs of smaller businesses, Singapore has introduced SFRS for Small Entities.

  • These standards provide simplified reporting requirements, reducing the compliance burden for small companies.

• Ongoing Developments:

  • The accounting landscape is constantly evolving, with new IFRS standards and interpretations being issued regularly.

  • ACRA and ISCA work closely to ensure that Singapore's accounting standards remain up-to-date and relevant.

• Adoption and application:

  • Listed companies in Singapore are required to apply SFRS(I)s.

  • Foreign companies that are listed on the Singapore exchange also have to adhere to those standards, or be able to reconcile their financial statements to those standards.

Where to find more information:

For the most current and detailed information, refer to the official websites:

• The Accounting and Corporate Regulatory Authority (ACRA) and the Institute of Singapore Chartered Accountants (ISCA) are also valuable sources of information. These sites provide access to the latest standards, pronouncements, and guidance.

How Bestar can Help

Bestar plays a vital role in assisting businesses with IFRS/SFRS(I) compliance in Singapore. Here's how we can help:   

Key Services Provided:

• IFRS/SFRS(I) Implementation and Conversion:

  • Bestar assists companies in transitioning to IFRS/SFRS(I) from other accounting standards.

  • This involves assessing the impact of the standards, developing implementation plans, and providing guidance throughout the process.

• Accounting Advisory:

  • We offer expert advice on complex accounting issues, ensuring compliance with IFRS/SFRS(I) requirements.   

  • This includes guidance on specific standards, interpretations, and regulatory changes.

• Training and Education:

  • Bestar conducts training sessions to educate finance teams on IFRS/SFRS(I) principles and applications.   

  • These sessions help companies stay up-to-date with the latest developments and ensure accurate financial reporting.   

• Audit and Assurance:

  • Bestar plays a crucial role in verifying the accuracy and reliability of financial statements prepared under IFRS/SFRS(I).   

  • We provide assurance that companies comply with the standards and present a true and fair view of their financial position.

• Risk Management:

  • Bestar helps companies identify and manage risks associated with IFRS/SFRS(I) compliance.

  • This includes assessing the impact of new standards on financial reporting and implementing controls to mitigate potential risks.

• Staying up to date with changes:

  • Accounting standards are constantly being updated, and Bestar helps businesses to stay current with those changes.   

Benefits of Professional Assistance:

• Expertise and Knowledge: Bestar possesses in-depth knowledge of IFRS/SFRS(I) and can provide accurate and reliable guidance.

• Efficiency and Accuracy: We help companies streamline their financial reporting processes and ensure accurate compliance.   

• Risk Mitigation: We assist in identifying and mitigating risks associated with non-compliance.

• Peace of Mind: Companies can have confidence that their financial reporting is in line with regulatory requirements.

Bestar provides a wide range of IFRS/SFRS(I) related services in Singapore.

In essence, Bestar provides the expertise and support necessary for companies to navigate the complexities of IFRS/SFRS(I) and maintain accurate and compliant financial reporting.

Request for Information

• Organizations like PwC and EY provide resources and training on IFRS and SFRS in Singapore.