Financial Statement in Singapore: 6 Common Notices For You

What are included in Singapore financial statements

A comprehensive set of financial statements, according to the Singapore Financial Reporting Standards, includes the following:

A financial position statement (balance sheet)
A complete income statement
A cash flow statement is a financial statement that shows how much money is coming in
A modification in equity statement
Notes on further explanatory data
For comparison reasons, these statements must include not only the numbers for the current planned financial year, but also the previous year. The balance statement for the financial year 2014, for example, must also include the statistics from the previous year.

If your firm owns 51 percent of another company’s stock, for example, you’ll need to produce consolidated financial statements to show the financial status of both the group and the company.

Find template: Here

Does my company have to file financial statements in Singapore?

In Singapore, all businesses must file financial statements in XBRL format with the Accounting and Corporate Regulatory Authority (ACRA).

Most businesses must use a Full XBRL template to submit their financial accounts. A reduced version of the XBRL template is available for smaller and non-publicly responsible businesses (which has much fewer elements to fill in than the full template).

According to BBCIncorp Wordpress’s post on Singapore Financial Statement (2022): Your firm satisfies the following requirements to be classed as a “smaller company”: Its revenue for the fiscal year is capped at 500,000 Singapore dollars, and the total asset value is also capped at 500,000 SGD.

Can my business be exempted from filing financial statements in Singapore?

The answer is Yes but only in the following circumstances:

• Your type of business is a sole proprietorship, general partnership, limited partnership, or limited liability partnership.
• Your company has been dormant since the end of the previous financial year. Furthermore, it is not a listed company, not a subsidiary company, and its total assets are not more than 500,000 SGD.
• Your Singapore company is a solvent exempt private company. An exempt private company (EPC) is defined as a company that has fewer than 20 members. None of them is a corporation. An EPC is solvent when it is able to pay its debts before due dates.

Remember that even if your company is exempt from reporting Singapore financial statements with ACRA, you must still compile and preserve records of these financial statements. In the event of an inquiry, the government may still seek to inspect these records from your company.

Private solvent-exempt corporations may voluntarily file financial statements in Singapore.

What is the filing deadline for Singapore financial statements?

Financial statements must be included in your company’s yearly submissions to ACRA (unless it is exempted). As a result, the filing date for Singapore financial statements will coincide with the filing deadline for the annual report.

For your information, the deadline for filing an annual report following a financial year end is 7 months for non-listed firms and 5 months for listed companies.

Your firm must, however, convene an Annual General Meeting (AGM) and disclose its financial results to the shareholders prior to submitting an annual report. When the firm’s financial accounts are provided to all members within 5 months of the financial year’s end, the company may be excused from conducting an AGM.

Do my company’s financial statements need to be audited in Singapore?

According to https://bbcincorp.com/resources/singapore-financial-statements: No, but only if your business is classified as a “small business” in Singapore. To be deemed “small,” your business must be a private corporation that meets two of the following three criteria in its first or second fiscal year:

The annual income is limited to ten million dollars.
There are no more than ten million dollars in total assets.
There are no more than 50 employees.
Your firm does not need to appoint an auditor if it is exempt from the auditing obligation.

However, if your firm is not a small business, it is required to examine the Singapore financial statements and must employ an auditor (within 3 months after the incorporation, according to the Companies Act).

How can I prepare my company’s Singapore financial statements?

You may produce financial statements in any format you choose for general meetings or internal usage (Words or Excel for example).

When filing with ACRA, however, these financial papers must be prepared in XBRL format. There are two options for doing so.

The first option is to prepare the paperwork yourself using the BizFin preparation tool. Here’s how it works in a nutshell:

Step 1: Get the software.
Step 2: Fill in the blanks in the XBRL template with the information from your financial statements (the ones that you have already presented at the annual general meeting).

Step 3: Check for mistakes with the tool and correct them as needed.
Step 4: After uploading the financial accounts, log in to BizFile+ and file the annual report with the documents you just uploaded.