Liquor Licence
2019-11-09
Food Import Licence
2019-11-20
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 company has two directors, the term “board of directors” is recommended. If the company has only one director, the term “sole director” is recommended.
Date of Director’s Statement
The director’s statement should be sent to all persons entitled to receive notice of the company’s general meeting no less than 14 days before the annual general meeting (AGM). Such director’s declarations shall be made per the resolutions of the directors. Such directors’ resolutions shall specify the date of such declarations and be signed by two directors of the company on behalf of the directors. These directors’ declarations shall include the 12th Annex of the Singapore Companies Act.
The annual general meeting of shareholders of a non-listed company shall be held within six months after the end of the financial year, unless the company meets the requirements of Section 175A of the Singapore Companies Act.
Directors’ interests in stocks or bonds
In the following circumstances, the director or chief executive officer of the company shall be deemed to have interests or rights of any shares or bonds of the company if:
The wife or husband of a director or chief executive (who is not a director or chief executive themselves) holds or owns an interest or right in any shares or bonds; or
The child of the director or chief executive (as the case may be) under the age of 18 (who is not a director or chief executive themselves) holds or has an interest in shares or bonds.
“Children” includes stepsons, adopted sons, stepdaughters and adopted daughters.
If a director resigns after the end of the financial year but before the date of the director’s declaration, his rights and interests at the end of the financial year still need to be disclosed.
If no director holds any shares or bonds of the company or any related company, the directors are recommended to disclose as follows:
None of the directors of the company who served on the reporting date at the beginning or end of the financial year held any equity or bonds in the company or any related company.
If a director has the right to exercise or control the exercise of not less than 20% of the voting shares of the relevant company, the director is deemed to have an interest in the relevant company.
If the company is a wholly-owned subsidiary of another company (i.e. a holding company), then the company may be deemed to have complied with the provisions of Section 164 of the Singapore Companies Act if the details shown in the register of the company are shown in the register of the holding company.
Stock option
Details of the share options issued by the Company that are required to be disclosed:
(I) a company other than the parent company (which is required to file a consolidated financial statement) has granted any option to subscribe for the unissued shares of the company during the period covered by the financial statement
(A) the number and class of shares for which “options” have been granted;
(B) the expiry date of the option;
(c) the basis on which the option is exercised; and
(D) whether the person to whom the “option” is granted is entitled to participate in any issue of shares by any other company by virtue of the “option.”
(ii) where any of the above details have been disclosed in a previous directors’ statement, reference may be made to that statement.
(iii) particulars of the shares issued as a result of the exercise of an option to subscribe for unissued shares of the company during the period to which the statement relates (whether the option was granted before or during that period).
(iv) the number of unissued shares of the company and the final period under the class option in the relevant statements, the price, or the method of fixing the price price, the issue of these shares, the right to choose the due date and, if any, the option that they have granted to participate in the issue of shares of any other company.
Resignation of directors
Nothing in this Ordinance shall require particulars of a director who resigned during that financial year and before the issue of a directors’ declaration.
If a director resigns after the end of that financial year but before the date of the directors’ statement, his interest at the end of that financial year should still be disclosed.
Modification of defective financial statements
The directors may amend the financial statements of the company in respect of any financial year of the company. Amendments are limited to those aspects in which the financial statements do not meet the requirements of the Singapore Companies Act. The revised financial statements must be accompanied by a new directors’ report and an auditor’s report.
Independent audit report
Other information
When the auditor considers that there is a material misstatement of other information, the “Other information” section should be amended accordingly.
For many private companies, a director’s statement may be the only document that constitutes other information. If a company publishes an annual report, the “other information” section should be changed accordingly.
In preparing the financial statements for non-going operations, replace the provisions of the preceding paragraph with the following:
The determination of whether management has correctly used the going concern accounting basis. When this use is inappropriate and management uses an accounting alternative basis, we can determine whether the alternative is acceptable. We also need to assess the adequacy of the disclosure and the reasons for the use. Our conclusions need to be based on audit evidence up to the date of publication of our auditor’s report.
The appropriateness of management’s use of an accounting going concern basis has been summarized. When this use is inappropriate and management uses an alternative basis of accounting, we conclude whether the alternative basis used by management is acceptable in this case. We also assess the adequacy of the disclosure, describing the basis of the alternative and the reasons for its use. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report.
Main audit matters
The requirement to communicate principal audit matters in an independent auditor’s report applies to the audit of the full set of general-purpose financial statements of a listed entity. In the glossary of a recognized stock exchange, a listed entity is defined as “an entity whose shares, shares or liabilities are listed on a recognized stock exchange or under the regulations of a recognized stock exchange or other equivalent institution.” Accordingly, the key audit matters (KAMs) report also applies to an entity dealing in bonds or notes on the Singapore Exchange or other recognized stock exchange.
Key audit matters (KAMs) are the most important matters in the audit of financial statements and are selected from those communicated to the person responsible for management.
Auditors of non-listed entities may choose to communicate the main audit matters on a case-by-case basis.
Responsibilities of Auditors concerning other information
The Accounting Standards define other information as financial or non-financial information contained in the entity’s annual report.
For example, when the directors consider that the financial statements have been prepared to give a true and fair view of the financial position of a company, and a material misstatement in the financial statements causes the auditor to issue a qualified opinion, the auditor requires that the matter that gives rise to the qualified opinion be reported accordingly in the section titled “Other information”.
Title of financial statements
IFRS 1: Entities are allowed to use headings for statements other than IFRS 1
In the first year of appointment as an auditor, if there is a change in the auditor, a section titled, “Other matters” should be added after the section “Basis of opinion,” in which it is disclosed that the financial statements of the company are audited by another auditor, who has issued an unmodified/modified opinion on the statement* (fill in the date of the auditor’s report issued by the previous auditor). It should also include the nature and impact of the modified opinion.
Income statement and other consolidated income statements
Speech
In the application of IFRS 1, the company selects a single income statement and other consolidated income statement and performs a functional analysis of expenses.
As an alternative, companies can provide cost analysis by nature if the information provided is reliable and more relevant
Other comprehensive income
In this set of explanatory financial statements, other comprehensive income is the net income at fair value of equity instruments through other comprehensive income, which is not reclassified as profit or loss. Where applicable, the company is required to submit items of other comprehensive income in accordance with IFRS 1, which are grouped into items that will not be reclassified as profit or loss after certain conditions have been met, and items that will be reclassified as profit or loss after certain conditions have been met.
Share of profit/loss of joint venture
The “profit/(loss) share of a joint venture” is the net amount of tax and non-controlling interests of a joint venture.
Reclassification adjustments
A reclassification adjustment is an adjustment to other comprehensive income that has been previously recognized and is now reclassified to profit or loss. The reclassification adjustment may be presented in the income statement and other statements of comprehensive income, or the notes. The entity proposing the reclassification adjustment in the notes proposes other comprehensive income items after any related reclassification adjustment.
Separate disclosure of income and expense subjects
Major items of income or expenses shall be disclosed separately in nature and amount. The circumstances leading to the separate disclosure of income and expenses include:
(A) The write-down of inventories to net realisable value or property, plant and equipment to a recoverable amount and the reversal of such write-downs;
(B) Restructuring the activities of an entity and repealing any provisions on restructuring costs;
(C) Disposal of property, plant and equipment;
(D) Disposal of investments;
(E) Ceasing of operations;
(f) Litigation settlement;
(g) Other reversals of the terms.
Statement of Financial Status
Submit the third financial statement
After implementing retrospective accounting policies, an entity must submit the third financial statement at the beginning of the earliest comparative period in order to retrospectively restate the items in its financial statements, or to apply retrospective application to the financial statements, or to reclassify the items in its financial statements. The retrospective restatement or reclassification has a significant impact on the information in the statement of financial position at the beginning of the earliest comparative period.
Entities are not required to submit relevant notes to the financial account opening statement at the beginning of the earliest comparative period concerning the following: accounting statements required in accordance with Financial Reporting Standard 1: 41-44 and 8, changes in accounting policies, accounting estimates and errors,
Current and non-current liabilities
If a financial liability should be settled within 12 months of the reporting period, even if the original period exceeds 12 months, the entity classifies it as a current liability and completes an agreement for long-term refinancing or rearrangement of payments within the reporting period and before the issuance of the financial statements is authorized.
If the entity wishes and has the right to refinance or extend the debt for at least 12 months in the reporting period according to the existing loan arrangement, the debt is classified as non-current debt, otherwise, the debt will mature within a shorter period. However, when debt refinancing or rollover is not at the entity’s discretion (for example, there is no refinancing arrangement), the entity does not consider the possibility of debt refinancing and classifies the debt as current debt.
When an entity violates the provisions of the long-term loan agreement or the pay-as-you-go responsibility during the reporting period before the end of the year, it assumes that, at present, even if the lender agrees, the problems in the financial statements during the reporting period and prior to authorization do not require the payment of the result of the default. The entity classifies the debt as current debt because, at the end of the reporting period, it has no unconditional right to delay the payment of at least 12 months after that date.
However, if an entity is classified with non-current liabilities, if the lender agrees to provide a grace period of at least twelve months after the end of the reporting period at the end of the year, the lender cannot demand immediate repayment within the entity’s deadline to correct the default.
Lease
Financial Reporting Standard 116: 47 requires lessees to disclose right-of-use assets separate from other assets and lease liabilities separate from other liabilities in the statement of financial position or the notes. If the lessee does not use the right-of-use asset in the statement of financial status, the lessee must include the right-of-use asset in the same line item and the corresponding underlying asset will be raised if they own any (such as property, plant and equipment), it is in the statement that it requires disclosure of the financial status of which line items include right-of-use assets. Similarly, if the lessee does not separately list the lease liabilities in the statement of financial position, the lessee also needs to disclose various items including the lease liabilities in the statement of financial position.
Singapore FOZL Group Pte. Ltd.
Accounting and Corporate Regulatory Authority of Singapore licensed corporate advisory firm.
Singapore Company Registration, Annual Return, Accounting & Tax
Trademark Registration, Corporate Advisory, Serviced Offices.
6 Raffles Quay，#14-02， #14-06， Singapore 048580
Accounting and Corporate Regulatory Authority of Singapore licensed corporate advisory firm.
Singapore Company Registration, Annual Return, Accounting & Tax
Trademark Registration, Corporate Advisory, Serviced Offices.
6 Raffles Quay，#14-02， #14-06， Singapore 048580