If you run a company in Singapore, one annual non\u2011negotiable is getting your statutory financial statements done properly. This article sets out the essentials so you can plan your year, avoid last\u2011minute scrambles, and stay compliant.<\/p>\n\n\n\n
All Singapore\u2011incorporated companies must prepare financial statements that follow Singapore\u2019s accounting standards and give a \u201ctrue and fair\u201d view. The board is on the hook for this duty. The only exception is a narrow one for \u201cdormant relevant companies\u201d that meet specific conditions in the Companies Act. <\/p>\n\n\n\n
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.<\/p>\n\n\n\n
Companies prepare their accounts in accordance with Singapore accounting standards SFRS(I) or SFRS, as issued locally. You don\u2019t need to pick the label\u2014your accountant will\u2014but the directors must ensure the accounts comply. <\/p>\n\n\n\n
This means that your financial statements must show a statement of cashflows and detailed notes to the accounts. <\/p>\n\n\n\n
Not always. Many private companies qualify for audit exemption under the \u201csmall company\u201d concept. You\u2019re exempt if, for the last two financial years, your company was private and met any two of these three tests:<\/p>\n\n\n\n
If you are in a group, the group must also meet the above thresholds on a consolidated basis. <\/p>\n\n\n\n
It depends on your company type and solvency:<\/p>\n\n\n\n
a.) Most Companies<\/strong> – File financial statements with ACRA as part of the Annual Return.<\/p>\n\n\n\n b.) Solvent Exempt Private Companies (EPCs)<\/strong> – private companies with \u226420 shareholders and no corporate shareholders\u2014do not have to file their financial statements. They file the Annual Return and simply declare solvency.<\/p>\n\n\n\n c.) Insolvent EPCs<\/strong> – Must file.<\/p>\n\n\n\n Smaller and non\u2011publicly accountable companies generally file using Simplified XBRL and attach a PDF copy authorised by directors.<\/p>\n\n\n\n All other companies file Full XBRL and attach the signed PDF.<\/p>\n\n\n\n Hold the AGM within 6 months after financial year end (FYE<\/strong>). So if your balance date is 31 December, your AGM must be held before the next 30 June. <\/p>\n\n\n\n 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.) <\/p>\n\n\n\n Annual Return (AR) filing for private companies is due within 7 months after FYE. <\/p>\n\n\n\n A dormant relevant company may be exempt from preparing financial statements. This is a specific statutory carve\u2011out \u2014 ensure you genuinely qualify before relying on it. <\/p>\n\n\n\n Your company\u2019s financial statements must include: <\/p>\n\n\n\n If you\u2019re consolidated, include the group\u2019s numbers as required by the standards.<\/p>\n\n\n\n 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.<\/p>\n\n\n\n Approve and authorise the financial statements before they\u2019re circulated \/ filed. <\/p>\n\n\n\n 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).<\/p>\n\n\n\n ACRA may also take enforcement action for late AGMs and repeated breaches, including criminal prosecution of Directors. <\/p>\n\n\n\n If you run a company in Singapore, one annual non\u2011negotiable is getting your statutory financial statements done properly. This article sets out the essentials so you can plan your year, avoid last\u2011minute scrambles, and stay compliant. Who Must Prepare Financial Statements? All Singapore\u2011incorporated companies must prepare financial statements that follow Singapore\u2019s accounting standards and give […]<\/p>\n","protected":false},"author":5,"featured_media":3526,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[20,11],"tags":[],"class_list":["post-3525","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-businesses-expanding-abroad","category-singapore"],"acf":[],"yoast_head":"\nIn What Format Do You File?<\/strong><\/h2>\n\n\n\n
When Are The Key Deadlines?<\/strong><\/h2>\n\n\n\n
Non\u2011Listed Companies <\/strong><\/h3>\n\n\n\n
Private Companies<\/strong><\/h3>\n\n\n\n
What If The Company Is Dormant?<\/strong><\/h2>\n\n\n\n
What Exactly Goes Into A Basic Set Of Financial Statements?<\/strong><\/h2>\n\n\n\n
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Directors\u2019 Responsibilities – What Matters Most?<\/strong><\/h2>\n\n\n\n
Late Filing And Penalties (So You Don\u2019t Learn The Hard Way)<\/strong><\/h2>\n\n\n\n
Common Mistakes To Avoid<\/strong><\/h2>\n\n\n\n
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