|Extent of IFRS application||Status||Additional Information|
|IFRS Standards are required for domestic public companies||Listed companies in Singapore are required to use Singapore Financial Reporting Standards (SFRS), which are substantially converged with IFRS Standards. However, with permission of the securities regulator, listed companies may use IFRS Standards as issued by the Board.|
|IFRS Standards are permitted but not required for domestic public companies|
|IFRS Standards are required or permitted for listings by foreign companies||All foreign companies listed on the Singapore Exchange are permitted to apply IFRS Standards under the Listing Rules. Specifically, foreign companies whose equity securities have a primary listing in Singapore are required to apply SFRS, IFRS Standards, or US GAAP, while those with a secondary listing are required only to reconcile their financial statements to SFRS, IFRS Standards or US GAAP.|
|The IFRS for SMEs Standard is required or permitted||Permitted.|
|The IFRS for SMEs Standard is under consideration|
Singapore has adopted all effective IFRS Standards, except for IFRIC 2 Members’ Shares in Co-operative Entities and Similar Instruments, and has made several modifications primarily to transition provisions and effective dates of the IFRS Standards that it has adopted. Accordingly, the standards, known as Singapore Financial Reporting Standards (SFRS), are substantially aligned with IFRS Standards. The non-adoption of IFRIC 2 does not affect Singapore-incorporated companies (both listed and non-listed). The sole modification to requirements of IFRS Standards does not affect listed Singapore-incorporated companies, but could affect non-listed Singapore-incorporated companies.
A new financial reporting framework identical to IFRS Standards will be introduced for mandatory application by Singapore-incorporated companies listed on Singapore Exchange (SGX) for annual periods beginning on or after 1 January 2018 (see below).
Singapore started the process of aligning SFRS closely with IFRS Standards in 2002. Full convergence of SFRS with IFRS Standards for Singapore-incorporated companies listed on SGX was a strategic direction of the ASC set in 2009. On 29 May 2014, the ASC announced that Singapore-incorporated companies listed on SGX will apply a new financial reporting framework identical to IFRS Standards for annual periods beginning on or after 1 January 2018. Non-listed Singapore-incorporated companies may also voluntarily apply the new framework at the same time.
Companies switching to the new financial reporting framework will apply IFRS 1 First-time Adoption of International Financial Reporting Standards. Because the new framework will be identical to IFRS Standards, companies will have the option of asserting compliance with IFRS Standards as well as with the new Singapore financial reporting framework.
Under the Singapore Companies Act, Singapore-incorporated companies (both listed and non-listed) are required to use accounting standards as prescribed by the ASC in their consolidated and separate financial statements. SFRS is the prescribed set of accounting standards for all Singapore-incorporated companies.
Singapore-incorporated companies (both listed and non-listed) are also permitted to use IFRS Standards if approval for the use of IFRS is granted to such companies by the Accounting and Corporate Regulatory Authority of Singapore (ACRA).
In addition, a Singapore-incorporated company that is listed on both a securities exchange in Singapore and a securities exchange outside Singapore is permitted to use IFRS Standards if the securities exchange outside Singapore on which the company is listed requires the use of IFRS Standards.
In both of those circumstances, there is no need for Singapore-incorporated companies using IFRS Standards to reconcile their IFRS Standards financial statements to SFRS.
All effective IFRS Standards have been adopted as SFRS, with the exception of IFRIC 2 Members’ Shares in Co-operative Entities and Similar Instruments, and with several modifications primarily to transition provisions and effective dates.
IFRS Standards are permitted for Singapore-incorporated companies if approval for the use of IFRS Standards is granted by ACRA, or in the case of a Singapore-incorporated company that is listed on both a securities exchange in Singapore and a securities exchange outside Singapore, if the latter requires the use of IFRS Standards.
SFRS is aligned with currently effective IFRS Standards except as follows:
The only differences between the Singapore version of the IFRS for SMEs Standard (known as the SFRS for Small Entities) and the IFRS for SMEs Standard are:
An entity is eligible to use the SFRS for Small Entities if it is not publicly accountable, publishes general purpose financial statements for external users, and meets the definition of a 'small entity' for each of the previous two consecutive financial reporting periods, with amended application to newly incorporated entities. An entity qualifies as a small entity if it meets at least two of the three following criteria: