Accounting Standards in Singapore are made up of a set of principles and guidelines that govern various financial transactions of every company in the country. The Accounting Standards Council or ASC, under the Accounting Act, has prescribed the standards for financing to be used by all business entities.
Accounting Standard Council
In prescribing Financial Reporting Standards or FRS, the ASC implements a proper and official process to guarantee that the standards of financing are consistently of high quality. The ASC also works hand in hand with the Accounting Standards Committee of the Institute of Certified Public Accountants of Singapore or the ICPAS’ ASC.
International Accounting Standards Board
The International Accounting Standards Board (IASB), which is based in London, United Kingdom, is the one that organized the International Accounting Standards (IAS) and the International Financial Reporting Standards (IFRS). This is where the country and even online accounting services in Singapore like Smart Acc has closely patterned its financial records standards. Presently, our country’s bookkeeping fundamentals and accounting services online are now arranged in the Companies Act. These are known as the Financial Reporting Standards (FRS).
One of the key principals of Singapore’s bookkeeping is accrual-based. Accrual-based accounting answers the desire for more accuracy of financial information and the need to organize complex business transactions. This is considered as a standard accounting practice for companies, with the exemption of very small businesses. With this method, there becomes a more precise picture of a company’s present condition. However, because it is complex, it is expensive to implement this. In accrual-based bookkeeping, revenues are recorded when earned, and costs are recorded when incurred, with or without the presence of cash.
The opposite of accrual-based accounting is cash accounting, which is one of the many functions of http://www.smartacc.com.sg/ in Singapore and is easier to record as it accounts transactions only if there is an exchange of cash between the company and the customer. However, in Singapore’s bookkeeping standards, accrual-based accounting is more commonly used than the other one. All accounting services for small business and even larger establishments are patterned in accrual-based records.
Details on Financial Reporting Standards
In Singapore, a complete set of financial statements includes the following: statement of comprehensive income, statement of changes in equity, a balance sheet, cash flow statement, and summary of accounting policies. Except for Statement of Cash Flow, companies must base their financial statements on accrual accounting. Also in preparing financial statements, the management of the company must assess the company’s ability to continue its operations.