Companies incorporated and registered with ACRA in Singapore, branches and subsidiaries included, are required to submit financial statements prepared in accordance to the Singapore Financial Reporting Standards (SFRS) formulated by the Accounting Standards Council (ASC), based on the International Financial Reporting Standards (IFRS). Financial reporting standards use the same set of criteria to measure and disclose the financial wellbeing of businessess around the world, and are important with regard to a country’s corporate governance, and therefore must be robust and credible to promote public confidence.
With expertise in SFRS, a Singapore Accounting Firm will be able to assist business owners (especially enterpreneurs) during filing season. If you are unfamiliar with prescribed standards such as the Singapore Financial Reporting Standards (International) (SFRS(I)) ASC or Financial Reporting Standards (FRS) ASC or SFRS for Small Entities ASC or Charities Accounting Standard ASC, or which applies to your company’s state of financial accountability, then you should entrust a Singapore Accounting Company and their chartered accountants with the job of doing the reporting.
Singapore Accounting Firm
In addition t0 preparing and filing financial statements in accordance with SFRS for your business, a Singapore Accounting Firm can also be a valuable alliance when it comes staying compliant with other regulations of ACRA or IRAS, such as:
1. Publication Requirements
- A Profit & Loss Account and a Financial Balance Sheet are required to be prepared and submitted by every company.
- Relevant accounting and bookkeeping records must be kept for five years following the end of the business year of each transaction.
- Companies can choose their tax year, but audited accounts must be filed with ACRA on an annual basis.
- A company is required to maintain keep certain records in addition to accounting records, e.g. registers of substantial shareholders, debenture holders, directors’ and chief executive officer’s shareholdings, registrable controllers and nominee directors (if any).
For foreign companies, financial statements, together with the audited financial statements of the branch, are to be filed within two months of the date of the AGM of the head office, or within seven months from the financial year-end date if no AGM is required in the place of its incorporation.
2. Certification and Auditing
Unless exempted, a company is required to conduct an audit of its financial standing through a statutory auditor. Dormant companies (companies with no significant accounting transactions during the fiscal year), and small companies that fulfil ACRA’s Qualification Criteria for Audit Exemption are exempt from the statutory audit requirements.
3. Accounting Reports
Income Tax Returns, Profit and Loss Statements, and Balance sheet.
4. Tax Year
Calendar year (1 Jan to 31 Dec) and referred to as the Year of Assessment (YA). Income assessment for the YA is based upon the income derived from the previous calendar year (or basis year). However, IRAS allows for businesses with a non-calendar accounting year end to use the accounting year as a basis year instead.
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