Every company incorporated in Singapore is required by the Companies Act (Cap.50) to prepare and submit Financial Statements in compliance with the Singapore Financial Reporting Standards (SFRS).
These statements present a business entity’s financial position and performance to different stakeholders during the mandatory Annual General Meeting. Financial Statements are also required for annual corporate tax submission to IRAS, as well as Annual Return filing to ACRA.
Financial Statements include:
- Directors’ Report
- Statement by Directors
- Statement by Auditors (for audited accounts only)
- Statement of Financial Position (Balance Sheet)
- Statement of Profit and Loss
- Statement of Equity
- Statement of Cashflow
- Notes to Financial Statements (Disclosure notes)
Audited/ Unaudited Financial Statements
A company that meets at least 2 of the following “small company” criteria does not need to submit audited Financial Statements:
Your compan(ies) should be exempted from audit if it meets the criteria of a small company and small group; as follows:
A company qualifies as a small company if:
(a) it is a private company in the financial year in question; and
(b) it meets at least 2 of 3 following criteria for immediate past two consecutive financial years:
(i) total annual revenue ≤ $10m;
(ii) total assets ≤ $10m;
For a company which is part of a group:
(iii) no. of employees ≤ 50.
(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 on a consolidated basis for the immediate past two consecutive financial years.
- Finalized General Ledger and Management Accounts (current year)
- Corporate Tax transactions (current year)
- Financial Statements (prior year)
- Fixed Asset Listing
- Other supporting information required
Need advice or assistance on preparing your company’s Financial Statements and other Annual Compliance items?