Consultation on Proposed Financial Reporting Framework for Societies

Introduction

1.       The ROS, and the ASC under the Accounting and Corporate Regulatory Authority (ACRA), seek feedback from societies in Singapore on the financial reporting framework (FRF) that all societies should adopt in the preparation of their financial statements.

Background

2.        The ASC has issued four FRFs for use by different types of entities in Singapore:

• Singapore Financial Reporting Standards (International) (SFRS(I)) (opens in new tab);

• Singapore Financial Reporting Standards (SFRS) (opens in new tab);

• Singapore Financial Reporting Standards for Small Entities (SFRS for SEs) (opens in new tab); and

• Charities Accounting Standard (CAS) (opens in new tab).

3.         The Societies Act requires societies to use the applicable FRFs issued by the ASC, but the ASC has not specified a FRF for societies. We understand that a significant proportion of societies are likely using SFRS for their financial reporting.

Key proposal

4.         The ROS and the ASC propose to prescribe SFRS as the single FRF for all societies. The effective date for this change will be determined after the consultation, but societies will be given at least two years’ notice to prepare before the change takes effect. The proposal aims to promote consistency and comparability in financial reporting across societies, while reducing their reporting burden without compromising reporting quality.

5.         Societies with charity status may continue to apply the CAS as they will not be affected by this proposal. Societies that are currently applying SFRS for SEs and wish to continue doing so will be allowed to do so until the ASC advises otherwise.

Consultation details

6.         View the consultation paper (opens in new tab).

7.          Share your feedback through FormSG (opens in new tab) by 31 December 2026.