Singapore Financial Reporting Standards (SFRS) Explained: Which Standard Applies to Your Company
By Lucas Seah, Founder of Excellence Singapore Group | Last Updated: June 2026
The Singapore Financial Reporting Standards (SFRS) are the accounting rules every Singapore-incorporated company must follow when preparing its financial statements. There are three frameworks: SFRS(I) for listed companies and others with public accountability, SFRS for most private companies, and SFRS for Small Entities for companies that meet a size test. Which one applies depends on your company.
This guide explains the three SFRS frameworks, shows which standard applies to your company, compares SFRS with IFRS, and sets out how the standards connect to your filing and audit duties.
Key Takeaways
- SFRS are Singapore’s accounting standards, issued by the Accounting Standards Committee (ASC) under ACRA.
- There are three frameworks: SFRS(I), SFRS, and SFRS for Small Entities.
- SFRS(I) is aligned with IFRS Accounting Standards; SGX-listed companies must use it.
- SFRS for Small Entities is a simplified framework for companies that are not publicly accountable and meet 2 of 3 size criteria (revenue not more than S$10 million, gross assets not more than S$10 million, 50 or fewer employees).
- The standard you use shapes your financial statements under section 201 of the Companies Act, your XBRL filing, and your audit.
What are the Singapore Financial Reporting Standards?
The Singapore Financial Reporting Standards are the set of accounting rules that govern how a company recognises, measures, and discloses its revenue, assets, liabilities, and equity in its statutory financial statements. They are issued by the Accounting Standards Committee (ASC) under ACRA and have legal force through the Accounting Standards Act and the Companies Act.
In plain terms, SFRS are the rulebook your accountant follows so that two companies reporting the same transaction report it the same way. That consistency is what lets a bank, an investor, or a tax officer read your accounts and trust the numbers.
There is no single SFRS standard that fits every business. Singapore runs three related frameworks, and the right one depends on whether your company is listed, private, or small enough to qualify for a simplified standard.
The three SFRS frameworks
Singapore’s reporting system has three frameworks, each aimed at a different kind of company.
SFRS(I), or Singapore Financial Reporting Standards (International), is the framework for companies with public accountability, which in practice means companies listed on the Singapore Exchange. SFRS(I) is built to be equivalent to IFRS Accounting Standards issued by the International Accounting Standards Board, so a company applying SFRS(I) can also state compliance with IFRS.
SFRS, sometimes still called FRS, is the full set of standards used by most private companies that are not listed and do not elect the small-entity option. In substance it mirrors SFRS(I), so the accounting treatments are the same; the main difference is the explicit IFRS-compliance statement that SFRS(I) carries.
SFRS for Small Entities is a slimmed-down framework for smaller companies. It reduces the disclosures and simplifies some measurements, which cuts the cost of preparing accounts for a small business that does not need the full standard.
Which SFRS standard applies to your company?
The quickest way to find your framework is to work down from the most demanding standard to the least. If your company is listed or otherwise publicly accountable, you must use SFRS(I). If it is a private company, you default to full SFRS. Only if it is also small, and not publicly accountable, can you elect SFRS for Small Entities.
| Company type | Framework | Notes |
|---|---|---|
| SGX-listed company or entity with public accountability | SFRS(I) | Aligned with IFRS; mandatory for financial years beginning on or after 1 January 2018. |
| Private limited company (not listed, not electing the small-entity option) | SFRS (FRS) | The full Singapore standards; aligned with IFRS in substance. |
| Small entity (not publicly accountable, meets 2 of 3 size criteria) | SFRS for Small Entities | Optional simplified framework with fewer disclosures. |
| Sole proprietorship or partnership | Not company financial statements | No statutory SFRS filing; accounts kept on a cash or other basis for tax. |
In practice, the framework choice trips up SMEs in two ways. First, eligibility for SFRS for Small Entities is tested over the previous two financial years, so a company that has just crossed S$10 million in revenue or grown past 50 staff cannot drop the standard the instant a number moves, and a fast-growing company should watch the trend rather than the single year. Second, many companies that could elect the simplified standard never do, because a lender or a future buyer prefers full SFRS for comparability. The size test makes you eligible; it does not make the choice automatic.
If you are unsure where your company sits, our guide on how to check if a company is registered in Singapore shows how to read the entity type and status on an ACRA business profile, which is the starting point for the decision above.
SFRS vs IFRS: what is the difference?
For a listed Singapore company, there is no practical difference in the accounting. SFRS(I) is designed to be identical in content to IFRS Accounting Standards, so a transaction is recognised and measured the same way under both. The reason Singapore keeps its own label is governance: the ASC reviews and adopts each IFRS standard so it has legal effect locally, rather than Singapore companies pointing to a foreign body’s text.
The naming can confuse people, so it helps to hold three ideas apart. IFRS is the global standard set by the International Accounting Standards Board. SFRS(I) is Singapore’s adoption of IFRS, word for word in substance, for companies with public accountability. SFRS (FRS) is the parallel set most private companies use, also aligned with IFRS.
So when an overseas partner asks whether your accounts are “IFRS-compliant”, a company on SFRS(I) can answer yes. A private company on full SFRS follows the same recognition and measurement rules, which is why the figures are comparable even when the cover page says SFRS rather than IFRS.
What is SFRS for Small Entities, and who qualifies?
SFRS for Small Entities is the simplified framework, and eligibility is the part that matters. Drawing on the IRAS guidance on the SFRS for Small Entities, a company can use it if it is not publicly accountable, publishes general-purpose financial statements for external users, and is a small entity.
A company is a small entity if it meets at least two of these three size criteria:
- Total annual revenue of not more than S$10 million.
- Total gross assets of not more than S$10 million.
- A total of not more than 50 employees.
It must satisfy two of the three over the previous two consecutive financial years. “Publicly accountable” rules out listed companies and entities such as banks and insurers that hold assets in a fiduciary capacity for a broad group of outsiders, so a typical private SME without public listing usually fails only on size, not on accountability.
Note that this size test is for choosing an accounting framework. It is not the same as the audit exemption small company test under the Companies Act, which decides whether your accounts must be audited. A company can qualify for one and not the other, so check both separately when planning your year-end.
Who sets the accounting standards in Singapore?
The standard-setter is the Accounting Standards Committee (ASC), which sits under ACRA. The function moved to ACRA on 1 April 2023, when the Accountancy Functions (Consolidation) Act 2022 merged ACRA, the former Accounting Standards Council, and the Singapore Accountancy Commission into one body. The power to make accounting standards rests on the Accounting Standards Act.
The ASC adopts each new or amended IFRS standard for use in Singapore, which is how SFRS(I) stays current with the global rules. It also maintains the full SFRS and the SFRS for Small Entities, and issues the standards for charities, co-operative societies, and societies.
How SFRS connects to your filing and audit
The standard you use feeds straight into your statutory duties. Section 201 of the Singapore Companies Act requires directors to present financial statements that comply with the applicable accounting standards, so SFRS is not an optional reference; it is the legal basis of the accounts the directors sign.
Those accounts then drive several downstream steps. Many companies must file their financial statements with ACRA in XBRL format, where the tagging follows the SFRS line items. If your company is not audit-exempt, your auditor checks the statements against SFRS as part of the statutory audit, so a clean set of SFRS-compliant records keeps the audit fee down.
Getting the books right under SFRS through the year is far easier than fixing them at year-end. Our notes on how to prepare for your company’s financial year-end and on accounting compliance in Singapore set out the records to keep. If you are still deciding how much to handle in-house, the difference between bookkeeping and accounting explains where SFRS judgement actually comes in, and many SMEs use outsourced accounting services so a qualified preparer applies the right framework from the start.
What changed recently
SFRS is not static. The ASC issues a fresh volume of SFRS(I) each year to take in the latest IFRS amendments, so the standard in force depends on your financial year. The biggest structural change was the move to SFRS(I) itself: Singapore-listed companies adopted the IFRS-equivalent framework for financial years beginning on or after 1 January 2018. When in doubt about which year’s volume applies, your accountant or auditor should confirm the version against your reporting date.
Frequently Asked Questions
What are the Singapore Financial Reporting Standards (SFRS)?
The Singapore Financial Reporting Standards are the accounting rules companies must follow when preparing their financial statements. They cover how revenue, assets, liabilities, and equity are recognised, measured, and disclosed. There are three frameworks: SFRS(I), SFRS, and SFRS for Small Entities. They are issued by the Accounting Standards Committee under ACRA.
What is the difference between SFRS and IFRS?
IFRS is the global standard set by the International Accounting Standards Board. SFRS(I) is Singapore’s adoption of IFRS and is aligned with it in substance, so a company on SFRS(I) can also state IFRS compliance. SFRS, the framework most private companies use, follows the same recognition and measurement rules, so the figures stay comparable with IFRS.
What is SFRS for Small Entities and who can use it?
SFRS for Small Entities is a simplified framework with fewer disclosures. A company can use it if it is not publicly accountable and meets at least two of three size criteria over the previous two financial years: total annual revenue of not more than S$10 million, total gross assets of not more than S$10 million, and not more than 50 employees. Listed companies and entities such as banks cannot use it.
Which accounting standard must my Singapore company use?
Work from the most demanding standard down. If your company is listed or otherwise publicly accountable, you must use SFRS(I). If it is a private company that is not small or does not elect the simplified option, you use full SFRS. If it is not publicly accountable and meets the small-entity size test, you may elect SFRS for Small Entities.
Who sets the accounting standards in Singapore?
The Accounting Standards Committee (ASC) sets Singapore’s accounting standards, and it sits under ACRA. The function moved to ACRA on 1 April 2023 under the Accountancy Functions (Consolidation) Act 2022, which merged ACRA, the former Accounting Standards Council, and the Singapore Accountancy Commission. The ASC adopts IFRS standards for local use and maintains SFRS and SFRS for Small Entities.
Do all Singapore companies have to follow SFRS?
Yes. Every company incorporated in Singapore must prepare financial statements that comply with the applicable SFRS framework, as required by section 201 of the Companies Act. The framework differs by company type, but there is no SFRS-free option for a company. Sole proprietorships and partnerships are not companies, so they keep accounts on a cash or other basis for tax rather than filing SFRS company financial statements.
Talk to Us
Choosing and applying the right SFRS framework is where many SMEs lose time, especially when a growing company is on the edge of the small-entity size test. Excellence Singapore helps companies keep their books to the correct standard year round, from accounting and bookkeeping to year-end financial statements and audit support. If you are unsure which standard applies, or you want a qualified team to handle the reporting, talk to us and we will set it up properly.
