Financial Statements Compilation/ Unaudited Financial Reports
Companies that fit ACRA definition of a small company concept will qualify for exemption from statutory audit. Hence, a company no longer needs to be an exempt private company to be exempted from audit.
However, all companies in Singapore, except small companies and dormant companies, are required to file audited reports to ACRA. Under Companies Act, it is mandatory to appoint an auditor within 3 months of its incorporation. The directors would have to appoint an auditor to audit the accounts. At ST Accounting, you can engage us to perform the necessary schedules and prepare the company for an audit. We could liaise with your appointed auditor. For companies that qualify as ‘small company’, we could provide to prepare unaudited Financial Reports in accordance to Singapore Financial Reporting Standards.
The Companies Act has provisions for certain types of companies to be exempted from audit. These companies are:
- – dormant company, defined as a company that has ceased trading and does not have any accounting transactions.
- – exempt private company (“EPC”), defined as a company that has 20 or less shareholders and none of them are corporations. Also, the revenue of such company must be less than S$5 million
Further to the above, no minority shareholders representing more than 5% of the company’s total shares have requested that the accounts to be audited.
If the company fits the requirements as described above, there is no need to conduct an audit.
Even though an audit is not require, a Company and its directors are still legally responsible to make sure that proper accounting records are kept to prepare the unaudited financial statements in accordance with the Singapore Financial Reporting Standards.
The compilation report or unaudited financial statements is to be tabled when performing Annual Return Filing with ACRA and income tax filing with IRAS. Besides filing with ACRA and IRAS, it is also important to get the compilation report or unaudited financial statements ready when tabled during the AGM.
What is a Compilation Report?
The Compilation Report or unaudited Financial Statements consists of:
– Directors’ Report
– Statement of Directors
– Statement of Comprehensive Income
– Statement of Financial Position
– Cash Flow statement
– Statement of Changes in Equity
– Accounting Policies
– Notes to Financial Statements
Our Unaudited Annual Report Fees starts from only $680!