Financial Reporting Standard for Small Entities – That is good news for you as a Small Business Owner!
A start up or a small business entity does not have to comply with the Singapore Financial Report Standard (SFRS) since there is SFRS for small entities. This mean that you as a small business owner will be exempted from many tedious paperwork for compliance purposes according to the guideline set out by the Accounting Standards Council (ASC) in Singapore.
However, in order to qualify as a small entity a company must meet at least two of these requirements:
- annual revenue not exceeding S$ 10 million;
- total assets not exceeding S$ 10 million; and
- not more than 50 employees
It should also not be a public company and it should publish general purpose financial statements.
The SFRS for small entities are much easier to comply which is a relief for most small organizations provided you met the criteria. Please be informed that this standard came into effect for the reporting period beginning on or after 1 January 2011. Do note that prior to this date, the small companies had to comply with full SFRS which was a burden to them given their little and sometimes lack of resources.
So what is in it for you as a small business owner?
- no more wasting time doing work just for the sake of compliance
- incurring unnecessary cost for your small business doing all the paperwork
- no long need an in-house accountant to do these complicated which save you money
Although there isn’t a need to comply with SFRS, the Accounting and Corporate Regulatory Authority (ACRA) still requires smaller businesses to maintain and keep proper sets of books and also file your completed set of accounts which comprise of your financials statement every year.
If you need help in accounting related matters, do visit our website to find out how you can benefits and leverage on our professional expertise and knowledge.
