Financial statement preparation in Singapore takes place as per these rules and regulations. Company owners in Singapore are required to observe the ongoing provisions of the Financial Reporting Standards, according to their type of legal entity. These accounting standards are set by the Accounting Standards Council in Singapore. Our accounting firm in Singapore is able to provide you with complete details on these requirements and much more, including special statement preparation services.
Table of Contents
What are the documents to be comprised by financial statements in Singapore?
The financial statements of a Singapore company must comprise:
- the financial position statement, which contains the assets, liabilities, and equity of the enterprise;
- the statement of income, which comprises the revenue, capital gains and losses, and the costs of financing, as well as other types of income described in detail by paragraph 82 in the Singapore Financial Reporting Standards;
- the cashflow statement, which includes the money entering or exiting the company through operations, investment, or financing;
- the changes of equity statement, which refers to the types of shares issued by the company, and any changes in the share capital at the beginning and end of the financial year.
Other documents, such as explanatory notes, must be included, depending on the financial operations of a company.
Are there different financial statement requirements based on company size?
Yes, while the documents above are available for medium and large-sized enterprises, Singapore small entities are subject to less stringent filing requirements. They need to file one statement of comprehensive income or two statements: the income and the comprehensive income statement.
To know in which category your company fits, here are the conditions for a Singapore company to be categorized as a small entity:
- it has a maximum of 50 employees;
- its annual revenue does not surpass SGD 10 million;
- the value of its total assets is a maximum of SGD 10 million.
Only 2 of the 3 criteria must be met.
What are the filing deadlines for financial statements in Singapore?
The filing deadline for submitting financial statements in Singapore is 7 months from the end of the fiscal year for companies that are not listed on the Stock Exchange. For enterprises that have branches abroad, the term is extended by one month (therefore, 8 months), as they also need the statements from the respective branch(es).
The filing cannot be made unless the Annual General Meeting has been held, or if the statements have been approved by the shareholders, depending on the case of the company.
Are there any exemptions from filing financial statements in Singapore?
Yes, there are several types of entities that are not required to file financial statements in Singapore, and they are:
- sole traders;
- partnerships;
- exempt private companies;
- dormant companies.
In the latter case, the exemption applies to companies that have been dormant since registration and entities that have become dormant at the end of the financial year. Also, instead of the financial statements, such entities are required to submit an online declaration showing they are solvent.
Who must prepare a Singapore’s company financial statements?
According to the Companies Act, company directors in Singapore are the ones who must present the financial statements before the Annual General Meeting. These documents are drawn up as per the Accounting Standards set forth by the Accounting Standards Council.
The financial statements have an important value for the overall valuation of the company as they provide a truthful view of the company’s profits, losses, position, and performance during the financial year.
Companies that observe good practices for accounting in Singapore will maintain an internal system that allows for proper accounting statement preparation and control.
What are the filing deadlines for financial statements in Singapore?
The filing deadline for submitting financial statements in Singapore is 7 months from the end of the fiscal year for companies that are not listed on the Stock Exchange. For enterprises that have branches abroad, the term is extended by one month (therefore, 8 months), as they also need the statements from the respective branch(es).
The filing cannot be made unless the Annual General Meeting has been held, or if the statements have been approved by the shareholders, depending on the case of the company.
Are there any exemptions from filing financial statements in Singapore?
Yes, there are several types of entities that are not required to file financial statements in Singapore, and they are:
- sole traders;
- partnerships;
- exempt private companies;
- dormant companies.
In the latter case, the exemption applies to companies that have been dormant since registration and entities that have become dormant at the end of the financial year. Also, instead of the financial statements, such entities are required to submit an online declaration showing they are solvent.
Do you provide financial statement preparation services in Singapore?
Yes, our accountants in Singapore can provide a complete financial statements package that contains the director’s reports and statements and the following:
- the profit and loss statement;
- the balance sheet;
- changes in shareholder’s equity;
- any needed notes to the financial statements.
In addition, our team of financial experts can provide audit services as needed.
Contact us for complete accounting services in Singapore. We can help you prepare the annual financial statements and comply with the general accounting standards in place for your type of business in Singapore.