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Financial Statements with Directors’ Report Services

Preparation of Unaudited Financial Statements for ACRA submission

Singapore Financial Statements Preparation Services | Business AdvisorsIf you have a business incorporated in Singapore, you have to engage a Chartered Accountant or an accounting service team to complete the bookkeeping of your transaction and prepare the financial statements for filing with ACRA and IRAS on an annual basis.

If your company does not qualify for audit exemption, you would require to have an Audit Firm in Singapore to conduct the annual audit and the auditors can assist you in the preparation of the 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 financial statements for your business, regardless of business entity types.

The Chartered Accountant will then take that information, organise it, and compile it into a simple, easy to understand the financial record. This takes care of the stressful aspects of bookkeeping while also providing your company with financial records on which it can base decisions and make projections.

When it is time to file your taxes, all you will need to do is submit the documents with the required paperwork. If you wish, the Chartered Accountant can take care of this for you as well.

When a Chartered Accountant offers the preparation of unaudited accounts service, he or she does not include an analysis of the company’s performance. It also does not include any guidance on your financial decisions. Many Chartered Accountants offer financial analysis services for an additional fee.

While smaller businesses can use the accounting service, all businesses registered with ACRA are required to have this document and submit it to the ACRA.

The goal of having these records on file is to keep the operations of businesses transparent and to protect those who invest in the company.


4. Filing of Annual Returns (AR) with ACRA

While the process is pretty simple and straightforward, you shouldn’t feel tempted to take it on yourself or make it an extra duty for an existing employee. 

Your time is better spent overseeing your company, not compiling records and creating 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 position 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 Chartered Accountant or professional accounting firm.

They have the industry knowledge and professional experience to help guide you through the 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.