The Latest Accounting Updates in Singapore (2025–2026)

As Singapore continues to evolve as a global financial hub, companies operating here must keep up with a stream of accounting and financial reporting changes. From refreshed reporting standards to enhanced regulatory guidance, these updates aim to improve transparency, comparability, and clarity in financial statements.

1. Major Changes to Financial Reporting Standards (FRS & SFRS(I))

Singapore’s financial reporting framework remains closely aligned with the International Financial Reporting Standards (IFRS), but with local nuances through the Singapore Financial Reporting Standards (SFRS and SFRS(I)). Here are the key developments:

🔹 New & Revised Standards Coming into Effect

• Amendments to SFRS(I) 9 and SFRS(I) 7 (Classification & Measurement of Financial Instruments) will take effect from 1 January 2026. These affect how financial assets and liabilities are classified and measured, including updated disclosure requirements.

• Annual Improvements to SFRS(I)s — Volume 11 also becomes effective from 1 January 2026, focusing on minor clarifications and technical corrections to various standards.

• SFRS(I) 18 — Presentation and Disclosure in Financial Statements (a major new standard replacing SFRS(I) 1-1) will apply from 1 January 2027. It offers enhanced guidance on structuring financial statements and disclosures.

• The third edition of the SFRS for Small Entities was released recently and will also take effect from 1 January 2027, bringing simplified accounting and disclosure frameworks for smaller businesses.

  
  

These changes mean companies should start planning their transition strategies and system updates now, especially for the upcoming reporting periods spanning 2026–2027.

2. Focus on Presentation and Disclosure — IFRS 18

One of the most impactful shifts internationally — and in Singapore by extension — is the introduction of IFRS 18, Presentation and Disclosure in Financial Statements:

• IFRS 18 replaces IAS 1 and sets out new principles for presenting financial performance and disclosures in annual reports.

• This includes new categories and subtotals in the income statement, requirements around management performance measures (MPMs), and updated guidance for how information is grouped and explained.

• The effective date internationally is 1 January 2027, and Singapore is expected to adopt this through its local SFRS(I) framework on a similar timeline.

What this means for companies: Accountants and finance teams will likely need to redesign financial statement templates and enhance narrative disclosures to comply — and to meet investor expectations for clearer performance reporting.

3. Regulatory & Compliance Guidance from ACRA

The Accounting and Corporate Regulatory Authority (ACRA) continues to play an important role in financial reporting oversight:

• ACRA recently published its Financial Reporting Surveillance Programme Report 2024 along with a Directors’ Guide to the FRSP, reinforcing the statutory responsibilities of company directors for accurate and compliant reporting.

• The Accounting Standards Committee (ASC), established under ACRA, regularly issues amendments and consults on new proposals, such as the exposure draft on risk mitigation accounting with feedback due in April 2026.

This regulatory guidance not only updates accounting standards but also emphasizes good governance, accountability, and the “true and fair” view of financial reports.

4. What Businesses Should Do Now

Here’s a quick checklist for companies operating in Singapore:

✅ Assess impacts of the forthcoming SFRS(I) changes — especially around financial instruments and presentation standards.

✅ Prepare for IFRS 18 by reviewing current reporting structures and identifying gaps.

✅ Review internal systems (e.g., accounting software) to ensure they can handle new disclosure and classification requirements.

✅ Educate finance teams and directors on updated regulatory expectations, including greater transparency and narrative reporting.

✅ Plan transition timelines well ahead of the 2026–2027 implementation dates.

💡 Final Thought

Singapore’s accounting landscape is becoming more robust, transparent, and aligned with global best practices. While this means some preparatory effort for businesses, the end result is enhanced comparability and investor confidence — benefits that pay off in a competitive global market.