In the past few years, Singapore has become one of the most preferred cities in the world, to invest and carry out businesses activities. In a bid to maintain a balanced business environment, the government of the city-state has imposed a set of stringent laws for the companies. Likewise, the statutory regulations of ACRA (Accounting and Corporate Authority) are the parts of its effort to keep the country’s legal system sound and stable. And, the firms specialized in accounting services Singapore help the businesses comply with the strict regulations of ACRA and other accounting standards. This blog will shed light on an accounting standard called Singapore Finance Reporting Standards (SFRS).
What is Singapore Financial Reporting Standards (SFRS)?
As per Companies Act (Cap.50), all companies incorporated in Singapore along with Singapore branches of foreign companies need to prepare and present financial statements complying with the Singapore Financial Reporting Standards (SFRS). As of now, SFRS seem to be substantially similar to the International Accounting Standards put forth by the International Accounting Standards Board (IASB). In recent years, there has been significant development and changes in financial reporting for which majority of foreign and domestic companies heavily rely on services provided by the accounting firms in Singapore.
Why Complying with the SFRS is Necessary?
Recently, ACRA has entered the scene for reviewing financial matters and monitoring statements, for its compliance with the Companies Act and SFRS. Therefore, Directors, legally responsible for preparation and presentation of their companies financial statements, are directly questionable for any breach identified by ACRA under the Financial Reporting Surveillance Program.
Thus, for effectively discharging duties and legal responsibilities in accordance with the Companies Act, it is necessary for every company director to seek valuable assistance from organizations providing accounting services Singapore.
About Financial Reporting Surveillance Program (FRSP)
As of now, many other countries like Australia, Europe, and the USA already have financial report surveillance programs in place, to monitor compliance of corporations and similar entities with the effective accounting standards. Additionally, taking legal or enforcement actions against the directors of companies having found submitted financial reports violates the accounting or financial standards, is not uncommon in these countries.
Singapore introduced FRSP standards in 2011 that came into existence after extensive efforts from ACRA. These standards were put forth to deliver confidence in the capital market and to keep the corporate market afloat, on the standards of integrity, transparency and quality of financial reporting.
Hire a firm providing accounting services Singapore to prepare the financial reports of your business in accordance with the guidelines of SFRS. The experienced and reputed accounting firms in Singapore are well aware of delivering accounting and financial reporting duties diligently, ensuring neither director has to face any questions regarding violation of SFRS nor the company reputation is at stake.