Preparation of Unaudited Financial Statements
Under the Companies Act, Exempt Private Companies* (EPCs) with annual revenue below $2.5 million are not required to have their accounts audited for financial year beginning on or after 15 May 2003. The revenue threshold was raised to $5 million for EPCs with financial year beginning on or after 1 June 2004.
An EPC will still need to prepare unaudited financial statements in accordance to the Companies Act and Singapore Financial Reporting Standards (“FRS”) for the purpose of meeting filing requirements with the necessary statutory bodies. If the exempt private company is insolvent (i.e. unable to meet its debts when they fall due), it has to lodge the accounts with ACRA. The format is similar to an audited financial statement except that you do not need an auditor to sign off the report.
Companies that are dormant can also opt not to have their financial statements audited. Dormant company is defined as a company that has no accounting transactions (except for certain expenses incurred to meet statutory requirements) during the financial year or has not started business since its incorporation.
Cogent Accountancy will prepare your unaudited financial statements in accordance to the Companies Act and Singapore Financial Reporting Standards (“FRS”) based on their underlying accounting records. Our teams are constantly updating themselves with the latest changes and developments in accounting standards, statutory requirements, tax and GST matters impacting businesses, which translates to the value-add we bring to our accounting assignments.
*An exempt private company is a private limited company with no corporate shareholders and has no more than 20 shareholders.
The preparation of unaudited financial statements/compilation includes the following:
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Do contact us for an obligation-free discussion on any of your reporting needs.