Many Singapore companies prepare full financial statements with extensive disclosures that their readers rarely need. A new standard, FRS 119, allows eligible companies to keep full FRS accounting but provide significantly fewer disclosures, for financial years beginning on or after 1 January 2027.
Background
- The Accounting Standards Committee (ASC) issued FRS 119 and SFRS(I) 19 Subsidiaries without Public Accountability: Disclosures in October 2024, based on IFRS 19.
- In August 2025, the ASC amended FRS 119 to extend the same relief to small entities, renaming it Subsidiaries and Small Entities without Public Accountability: Disclosures.
- Applying the standard is optional. Recognition, measurement and presentation still follow full FRS; only the disclosures are reduced.
Who Can Apply FRS 119?
1. Subsidiaries without public accountability whose parent (local or foreign) publishes consolidated financial statements available for public use that comply with FRS, SFRS(I) or IFRS.
2. Small entities without public accountability that report under full FRS and:
- are not a public company under the Companies Act 1967;
- are not a registered charity; and
- meet at least two of these three size criteria:
- total annual revenue of not more than S$10 million;
- total assets of not more than S$10 million;
- not more than 50 employees.
A company generally needs to meet the criteria for the two preceding consecutive financial years before it can apply FRS 119, so FY2025 and FY2026 figures matter for a December 2027 year-end.
What Changes in Practice
- Shorter financial statements, with simplified disclosures on areas such as financial instruments, leases and fair value.
- Lower preparation time and cost, and a more focused review by auditors.
- Companies currently using the SFRS for Small Entities may consider moving to full FRS with FRS 119 disclosures, gaining full FRS accounting without the full disclosure burden.
Example: A Singapore subsidiary of an overseas group whose parent publishes IFRS consolidated accounts can drop many detailed risk and lease disclosures from its own statutory accounts, while still providing the information the parent needs for group reporting.
What You Should Do Now
- Check whether your company qualifies, using your FY2025 and FY2026 figures.
- Decide whether to adopt FRS 119 from 2027 (earlier application is permitted).
- For subsidiaries, confirm what disclosures your parent still needs in the group reporting package.
How We Can Help You
We can assess your eligibility, advise on whether FRS 119 or the SFRS for Small Entities suits your company better, and prepare your financial statements under the new requirements. Contact us to arrange a discussion.