Financial Report

INTRODUCTION

With regard to the financial reporting of Singapore companies, we need to understand the types of financial reports and their key components.

Types of Financial Reports for Singapore Companies

There are two types of financial statements – audited financial statements and unaudited financial statements.

For audit-exempt private limited companies/small companies in Singapore, their accounts can be presented in the form of financial statements with unaudited accounts. For a private limited company in Singapore with an annual turnover of more than S $5 million, irrespective of whether it is exempt from audit, it must present its accounts in audited financial statements, unless it was completely inactive during the financial period.

Structure of corporate financial reporting in Singapore

The financial statements consist of several key components, including :

• Directors’ report
• Directors’ Statement
• Auditor’s statement (for audited accounts only)
• Statement of financial position (balance sheet)
• Profit and loss account (UK)
• Statement of Shareholdings
• Cash flow statement
• Notes on the financial statements (disclosure note)