Our team of experts specializing in Financial Accounting Standards will assess your situation and determine the best course of action. We prepare quality Financial Statements to help ensure that our clients’ financial reporting meet the regulatory and business requirements as well as to lend credibility to the company’s financial position.
The financial statement would include:
- Directors’ report
- Directors’ statements
- Profit/loss statement
- Balance sheet statement
- Change in shareholders’ equity
- Notes to financial statements
Do I need to prepare my company's financial statements if I do not need to be audited?
- Yes you do according to section 201(2) and 201(5) of The Singapore Company Act, Chapter 50.
Requirements for audit
Currently in Singapore, a company is exempted from having its accounts audited if it is an exempt private company with annual revenue of $5 million or less. This approach is being replaced by a new small company concept which will determine exemption from statutory audit. In another words, a company no longer needs to be an exempt private company to be exempted from audit.
A company qualifies as a small company if:
(a) it is a private company in the financial year in question (Non listed); 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;
(iii) no. of employees ≤ 50.
For a company which is part of a group:
(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.
Where a company has qualified as a small company, it continues to be a small company for subsequent financial years until it is disqualified. A small company is disqualified if:
(a) it ceases to be a private company at any time during a financial year; or
(b) it does not meet at least 2 of the 3 the quantitative criteria for the immediate past two consecutive financial years.
Where a group has qualified as a small group, it continues to be a small group for subsequent financial years until it does not meet at least 2 of the 3 the quantitative criteria for the immediate past two consecutive financial years.
* To be on the safe side, contact us to check whether your company needs to be audited or not.