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Financial Statement Services

All businesses and companies need to keep proper accounting records for their own business needs as well as regulatory compliance. The landscape for accounting is changing rapidly. With remote working becoming the new norm, the use of technology in accounting such as cloud accounting services has become increasing prevalent and important.

As more companies embrace working from home and the de-centralisation of their operations, more efficient and productive ways are sought to keep their businesses running and profitable. Our company has also leveraged the use of technology to help our clients find the edge in an increasingly competitive business landscape.

Financial Statement Services

All companies big and small need to prepare their financial statements yearly. As an established provider of accounting services in Singapore, we serve all our clients with the same level of care and professionalism.

Financial Statements and related accounting services Singapore

All Singapore incorporated companies are required to file financial statements with ACRA, except for those which are exempted. As an established provider of accounting services in Singapore, we serve all our clients with the same level of care and professionalism.

According to the Singapore Financial Reporting Standards, a complete compilation of financial statements should comprise the following documents. Note that the information required is of the financial year that is ending or has just passed:

  • Statement by Directors;
  • Statement of financial position;
  • Statement of comprehensive income;
  • Statement of changes in equity;
  • Statement of cash flows;
  • Notes on significant accounting policies and other explanatory information; and
  • Comparative information of the above statements and notes on the preceding period.

To ensure that the company complies with all rules and regulations, our professional accountants can help your company compile the financial statements in line with these standards. We can help adapt from appropriate accounting standards for the relevant financial period and also advise on areas with critical judgements and significant estimates.

Audit exemption

Some companies may be exempted from filing audited financial statements if they fall within the definition of a “small company” during the financial year, if it meets any 2 of the 3 criteria below:

  • Total Annual Revenue not more than S$10 million
  • Total Assets not more than S$10 million
  • Number of employees not more than 50

For a company which is a part of a group:

(a) the company must qualify as a small company; and

(b) entire group must be a “small group” to qualify to the audit exemption.

For a group to be a small group, it must meet at least 2 of the 3 quantitative criteria for the group’s consolidated financial statements for the immediate past two consecutive financial years.

We understand that the information may be confusing for the untrained person. Contact us today to find out how we can help you. Rest assured that you will be engaging one of the most established locally grown companies for accounting services in Singapore.

Compliance Requirements

Most private limited companies in Singapore are no longer required to have their accounts audited if they satisfy the criteria for a small company or belongs to a group which qualifies as a small group.

Exempt private companies — which have no corporate shareholders and no more than 20 individual shareholders — with turnover of less than S$5 million for the accounting year can file unaudited reports. Dormant exempt companies are also exempt from submitting audited reports.

FAQ

1. Who need to file financial statements?

All Singapore (SG) incorporated companies are required to file financial statements (FS) with ACRA, except for dormant unlisted companies. A dormant company is exempted from the statutory audit requirements but is still required to prepare financial statements. Sole proprietorships, partnerships, limited liability partnerships, or limited partnerships are not required to file FS with ACRA.

2. Can insolvent dormant company be exempted from preparing financial statements?

Yes, if the dormant company is unlisted, is not a subsidiary or a listed company, and the company’s total assets is not more than S$500,000, the company is exempted even if insolvent.

3. When will the exemption for dormant companies from preparation of financial statements take effect?

The exemption would be available for financial year ending on or after 3 Jan 2016.

4. If a dormant unlisted company is exempted from the requirement to prepare financial statements, does it still need to hold an annual general meeting (AGM)?

The company must still hold an AGM. However, if the company is a private company, the company can dispense with the holding of its AGM if there are no other resolutions which need to be tabled.

5. How can I tell whether a company is dormant?

The test for dormancy is provided for in the Companies Act, i.e. that there is no accounting transaction during that financial year. The Companies Act also states the transactions which will are to be disregarded when determining dormancy:

  1. the taking of shares in the company by a subscriber to the memorandum in pursuance of an undertaking of his in the memorandum;
  2. the appointment of a secretary of the company;
  3. the appointment of an auditor;
  4. the maintenance of a registered office;
  5. the keeping of registers and books;
  6. the payment of any fee and charges payable under written law;
  7. the payment of any composition amount payable under written law;
  8. the payment or receipt by the company of a nominal sum not exceeding S$5,000.

Get in Touch

Contact us today and we will connect you with the most appropriate specialist to meet your needs.