Financial Report

Why Prepare Financial Statements? Financial statements are required because: 1. This is a legal requirement in Singapore. Section S201 of the Singapore Companies Act requires the directors of a company to prepare financial statements that comply with the “Singapore Accounting Standards”. 2. The Inland Revenue Authority of Singapore requires companies registered in Singapore to prepare financial statements and tax computations for filing corporation tax annually. In recent years, if your company is eligible to file Form C-S, you are not required to file your financial statements with the Inland Revenue Authority of Singapore (IRAS). However, the IRAS has made it […]

Consolidated Statement In accordance with IFRS 10, when an entity controls one or more other entities, the financial statements need to be consolidated.   Article 10 of IFRS stipulates that the parent company shall prepare and display the consolidated statements according to the quasi-side.   Definition of consolidated statements: The financial statements of a group in which the assets, liabilities, equity, income, expenses and cash flows of the parent company and its subsidiaries are presented in the financial statements as those of a single economic entity.   Definition of Control of an investee: An investor controls an investee when the […]

Financial Report Compliance Financial reporting needs to meet the requirements of the Singapore Financial Reporting Standards in many aspects. Director’s Statement: Recipient of director’s statement If the company has only one shareholder, the term “to shareholders” should be used. Directors’ opinions When there is an event or situation that casts serious doubts on the company’s solvency, the directors’ opinions should be revised accordingly and appropriately disclosed. Signing the director’s statement If the company has only two or fewer directors, there is no need to use the term “representative of the board of directors” when signing the director’s statement. If the […]

Prepare Financial Statements Each set of accounts is usually unique and non-repeatable. Financial statements are usually prepared by trained accountants who understand the requirements for each set of accounts. A person with no accounting training may be incapable of coming up with a proper set of financial statements. Thus, our advice is to hire the right person – a professional accountant – to ensure that the preparation of the financial statements can be completed with minimal trouble. In order to prepare a set of financial statements effectively, you need the following information on hand: The general ledger and management account […]