If you run a company in Singapore, one annual non‑negotiable is getting your statutory financial statements done properly. This article sets out the essentials so you can plan your year, avoid last‑minute scrambles, and stay compliant.
Who Must Prepare Financial Statements?
All Singapore‑incorporated companies must prepare financial statements that follow Singapore’s accounting standards and give a “true and fair” view. The board is on the hook for this duty. The only exception is a narrow one for “dormant relevant companies” that meet specific conditions in the Companies Act.
Even if you are small or not audited, you still need a proper set of accounts each year unless you are a qualifying dormant relevant company.
Which Accounting Rules Apply?
Companies prepare their accounts in accordance with Singapore accounting standards SFRS(I) or SFRS, as issued locally. You don’t need to pick the label—your accountant will—but the directors must ensure the accounts comply.
This means that your financial statements must show a statement of cashflows and detailed notes to the accounts.
Do You Need An Audit?
Not always. Many private companies qualify for audit exemption under the “small company” concept. You’re exempt if, for the last two financial years, your company was private and met any two of these three tests:
- Revenue ≤ S$10 million
- Total assets ≤ S$10 million
- Employees ≤ 50
If you are in a group, the group must also meet the above thresholds on a consolidated basis.
Do You Have To File The Financial Statements With ACRA?
It depends on your company type and solvency:
a.) Most Companies – File financial statements with ACRA as part of the Annual Return.
b.) Solvent Exempt Private Companies (EPCs) – private companies with ≤20 shareholders and no corporate shareholders—do not have to file their financial statements. They file the Annual Return and simply declare solvency.
c.) Insolvent EPCs – Must file.
In What Format Do You File?
Smaller and non‑publicly accountable companies generally file using Simplified XBRL and attach a PDF copy authorised by directors.
All other companies file Full XBRL and attach the signed PDF.
When Are The Key Deadlines?
Non‑Listed Companies
Hold the AGM within 6 months after financial year end (FYE). So if your balance date is 31 December, your AGM must be held before the next 30 June.
You can dispense with the AGM if you send the financial statements to all members within 5 months after FYE and no member requests an AGM. (Members retain rights to demand a meeting within prescribed timelines.)
Private Companies
Annual Return (AR) filing for private companies is due within 7 months after FYE.
What If The Company Is Dormant?
A dormant relevant company may be exempt from preparing financial statements. This is a specific statutory carve‑out — ensure you genuinely qualify before relying on it.
What Exactly Goes Into A Basic Set Of Financial Statements?
Your company’s financial statements must include:
- Statement of Financial Position
- Statement of Comprehensive Income
- Statement of Changes in Equity
- Statement of Cash Flows
- Notes (the explanations that make the numbers understandable)
If you’re consolidated, include the group’s numbers as required by the standards.
Directors’ Responsibilities – What Matters Most?
Keep proper accounting records and internal controls so the numbers can be prepared and reviewed by the due dates. Ensure the statements comply with the standards and are true and fair.
Approve and authorise the financial statements before they’re circulated / filed.
Late Filing And Penalties (So You Don’t Learn The Hard Way)
Late Annual Return filing triggers a $300 penalty if filed within 3 months after the due date, or $600 if more than 3 months late (for due dates on/after 14 Jan 2022).
ACRA may also take enforcement action for late AGMs and repeated breaches, including criminal prosecution of Directors.
Common Mistakes To Avoid
- Assuming “no audit” means “no accounts.” You still need to prepare financial statements.
- Missing the 5‑month window when skipping the AGM. If you don’t send out the accounts in time, you can’t rely on the exemption.
- Using the wrong filing format. Check whether Simplified or Full XBRL applies to you and attach the director‑authorised PDF.
- Relying on “dormant” status without checking the fine print. The dormant relevant company exemption is specific—don’t assume you meet the requirements.