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Preparation of Singapore Financial Reports (FR)

OVERVIEW

 

A Singapore private limited company enjoys audit exemption, i.e. the accounts do not have to be subject to audit provided that:

 

  • the shareholders of the private limited company comprise individuals only; and The annual turnover of the private limited company is S$5million and below. 


However, Singapore private limited companies are still required to prepare financial reports in a format as defined by the Companies Act and the Singapore Financial Reporting Standards (FRSs) for submission to the relevant authorities such as Accounting and Corporate Regulatory Authority (ACRA) and Inland Revenue Authority of Singapore (IRAS).

 

It is important that the financial report be prepared by a Chartered Accountant (C.A.) registered with the Institute of Certified Accountants of Singapore to ensure compliance with the requirements of the Singapore Companies Act and the Singapore Financial Reporting Standards.

 

Our C.A. can assist your company to prepare the financial report which includes:

 

  • Director's Report

  • Statement of Directors

  • Income Statement

  • Balance Sheet

  • Statement of Changes in Equity

  • Cash Flow Statement

  • Accounting Policies

  • Notes to Financial Statements

  • Detailed Income Statement.

 

 

Preparation of Director’s Report:

 

The Directors are responsible for preparing financial statements for each financial year in accordance with theFinancial Reporting Standards (FRSs) and general accounting practice. The statements must give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. This requires the faithful representation of the effects of transactions, other events and conditions in accordance with reporting standards.

 

Preparing the Annual financial statement is a tedious task which needs meticulous processing of records of financial transactions. At Beaufort, our experts can minimize the pressure on your in-house resources by helping you in:

 

  • selecting and applying suitable accounting policies.

  • preparing financial statements in line with the international accounting standards.

  • presenting information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information.

  • providing additional disclosures to enable clear understanding of transactions, other events and conditions on the entities financial position and financial performance.

 

Companies are legally obliged to include a Director’s Report in their annual financial statement. The report must give a fair review of the company’s financial and operational results and condition and also include additional information such as dividend recommendation, reserved earnings, details of directors and their interest, principal risks and uncertainties etc.

 

Director’s Report is an important communication medium for a company to interact with various interest groups such as investors, creditors, government bodies, business analysts etc. Therefore it is essential to ensure that the report includes all the relevant information succinctly, yet without any ambiguity.

 

Preparation of Auditor’s Report:

 

Companies are required to submit an Independent Auditor’s as well as Director’s Report as part of their annual filing requirements. Both reports are part of a system of checks and balances to ensure sound financial practices, and in turn, enhance investors’ confidence and uphold shareholders’ interest.

 

What companies must be audited?

 

All private limited companies are required to prepare audited financial reports except for those that fall within the definition of a “small company” during a financial year (FY) if it meets any 2 of the following criteria within the FY:

 

  • Total annual revenue is less than or equal to $10 million

  • Total assets are less than or equal to $10 million

  • Number of employees is less than or equal to 50

 

Note: Companies with corporate shareholders can also qualify for this exemption if the whole group collectively satisfies any 2 or the 2 criteria within the FY.

 

 

Let us know how we can help you.

 

  • Leverage our expertise today for the best results!

  • Call us at +65 62277 269 or Contact Beaufort Now for a free consultation.

  • We at Beaufort believe that every client is unique and deserves support specific to his/her needs. Call us at +65 62277 269 or drop us an email CustomerFirst@Beaufort-capital.com to let us know how we can be of service to you.

 

Interested in Beaufort's Drafting of Director's and Auditor's Reports? Contact Us Today for a free consultation.

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