The Companies Act penalties for non compliance is heavy and can go upto $10,000 or imprisonment not exceeding 2 years!
Compilation Report Service | Unaudited Financial Statements
The Companies Act has provisions for certain types of companies to be exempted from audit. These companies are
- – dormant company, defined as a company that has ceased trading and does not have any accounting transactions.
- – exempt private company (“EPC”), defined as a company that has 20 or less shareholders and none of them are corporations. Also, the revenue of such company must be less than S$5 million.
Further to the above, no minority shareholders representing more than 5% of the company’s total shares have requested that the accounts to be audited.
If your company fits the requirements above, then you need not have to be audited.
However, Companies and directors still have a legal responsibility to ensure that proper accounting and other records are kept to enable the unaudited financial statements to show a true and fair view to be prepared in accordance with the Singapore Financial Reporting Standards.
The unaudited financial statements or compilation report is to be tabled during AGM, Annual Return Filing with ACRA and income tax filing with IRAS.
What is a Compilation Report?
The Compilation Report or unaudited Financial Statements consists of:- Directors’ Report
- Statement of Directors
- Statement of Comprehensive Income
- Statement of Financial Position
- Statement of Changes in Equity
- Accounting Policies
- Notes to Financial Statements
- Detailed Income Statement
As there is no auditing done, the service fees to prepare the Compilation Report is much lower than an audit engagement.Our Compilation Report service starts from only $350!