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Preparation of SFRS Financial Statements Services

Singapore Financial Statements Preparation Services | Business AdvisorsIf you have a business incorporated in Singapore, you should engage an experienced Accountant or a Singapore accounting service firm to assist you in bookkeeping of your transaction.

As part of their service, they will prepare the Singapore Financial Reporting Standards (SFRS) financial statements for filing with ACRA and IRAS on an annual basis.

If your company does not qualify for audit exemption, you must engage a Singapore Audit Firm to conduct the annual audit and the auditors can assist you in the preparation of the SFRS financial statements.

There are compliance requirements and these are mandated by ACRA.


What are the ACRA filing requirements in Singapore? 

 1. For the financial year commencing 1 July 2015 before  

Exempt Private Companies (EPC) is defined as a private limited company, with no corporate shareholders, and has 20 or lesser shareholders. 

a. Small Exempt Private Companies (EPC)

These refer to EPC with annual revenue up to SGD 5 million or less for financial years with effect from 1 June 2004 (SGD 2.5 million or less for financial years between 15 May 2003 and before 1 June 2004).

– For a solvent company, there is no need to audit the accounts and no requirements to attach accounts. The directors are required to complete an online declaration of solvency.

– For an insolvent company, there is no need to audit the accounts and the company must attach the accounts when filing annual returns.
 

b. Normal Exempt Private Companies (EPC)

These refer to EPC with annual revenue more than SGD 5 million for the financial years with effect from 1 June 2004 (or more than SGD 2.5 million for the financial years with effect from 15 May 2003 but before 1 June 2004).

– For a solvent company, an audit is required and no requirements to attach accounts. The directors are required to complete an online declaration of solvency.

– For an insolvent company, an audit is required, and the company must attach the accounts when filing annual returns.


c. Dormant Exempt Private Companies (EPC)

These refer to EPC that does not have any accounting transactions for the financial year or has not commenced business since the date of incorporation.

– For a solvent company, there is no need to audit the accounts and no requirements to attach accounts. The directors are required to complete an online declaration of solvency.

– For an insolvent company, there is no need to audit the accounts and the company must attach the accounts when filing annual returns.


d. Private Companies (Non-EPC)

These refer to companies limited by shares with at most fifty (50) shareholders (corporations or individual shareholders).

– For an active company, an audit is required, and the company must attach the accounts when filing annual returns.

– For a dormant company, there is no need to audit the accounts and the company must attach the accounts when filing annual returns.

– For an insolvent company, an audit is required, and the company must attach the accounts when filing annual returns.

 

2. New Audit Exemption for financial years commencing on and after 1 July 2015

A small company is defined as a private company and must meet at least two or three quantitative criteria for immediate past two financial years:-

a. The total annual revenue should not be not more than SGD 10 million;
b. The total assets should not be not more than SGD 10 million; and/or
c. The total number of employees should not be not more than 50.

A small group is defined as a private group and must meet at least two or three quantitative criteria for immediate past two financial years:-

a. The consolidated group revenue should not be more than SGD 10 million;
b. The consolidated group assets should not be not more than SGD 10 million; and/or

c. The aggregate number of employees should not be not more than 50.

Audit exemption applies to Singapore companies that fulfil the “small company” criteria and for a company which is part of a group, the company must qualify as a "small company" and the entire group must qualify as a “small group”. 


3. Compiling of Accounts and Preparation of Unaudited Financial Statements

We can prepare the unaudited SFRS financial statements for your business, regardless of business entity types. 

The financial statements are prepared based on the regulatory framework of Singapore Financial Reporting Standards (SFRS) and Singapore Companies Act, Cap 50.

The Accountant will then take that information from the source documents, organise it, and book them into an accounting system. This takes care of the stressful aspects of bookkeeping while also providing your company with management reports on which it can base decisions and make projections.

When it is time to file your taxes with IRAS, you will need to do is submit the tax computations, supporting schedules, tax forms and SFRS financial statements. If you wish, the Singapore Accountant can take care of this for you as well.

When a Singapore Accountant offers the preparation of unaudited accounts service, he ensures your business meets the Singapore regulatory reporting requirements.


4. Filing of Annual Returns (AR) with ACRA

To save your time on this administrative process, you should always pass this to the Company Secretary to assist you.  

Your time is better spent overseeing your company, not compiling records and drafting the SFRS financial statements.  And you want your current employees to be fully dedicated to the job at hand—that makes for greater productivity and success.

There is no need to add an accounting department to your company, either, as the duties do not constitute a full-time job. 

The best option regarding productivity and finances is to hire a Singapore professional accounting firm.

They have the industry knowledge and professional experience to help guide you through the annual compliance process, and you can hire them on an as-needed basis. 

For a custom quote, please complete the quotation form and our accounting service team will contact you to assist on your request.