Financial Reporting and Audit Requirements for the Singapore Companies
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SBS
Mar 1, 2015, 4:21:06 PM3/1/15
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Article Title: Financial Reporting and Audit Requirements for the Singapore Companies
Author: SBS
Word Count: 751
Article URL: http://www.isnare.com/?aid=1927425&ca=Business
Format: 64cpl
Contact The Author: http://www.isnare.com/eta.php?aid=1927425
Easy Publish Tool: http://www.isnare.com/html.php?aid=1927425
*********************** ARTICLE START ***********************
There is a dearth of natural resources in Singapore, which imposes great limitations on what this city-state can do to further its growth. The Singapore leaders wisely decided to invest in the service industry. Realizing the potential of the field of accountancy, they decided to focus on it.
They vowed to make Singapore an accountancy hub, by the year 2020. Singapore leaders, government officials, accountants, Singapore accounting service providers and so many others put in their concerted efforts to realize it.
What is Meant by Singapore Financial Reporting
Today, Singapore has established itself as a force to reckon with in the field of accountancy. Accounting and audit services in Singapore like, SBS Consulting, practice Singapore Financial Reporting Standards (FRS) while delivering their services. Financial reporting for the annual financial periods starting on or after 1 January 2003, must confirm with the stipulations of the FRS.
Singapore Financial Reporting Standards
In 2002, Singapore took some game changing decisions to bring important changes in the way audited financial statements are prepared and presented. They dropped Statements of Accounting Standards (SAS) issued by The Institute of Certified Public Accountants of Singapore (ICPAS).
They choose to implement section 37 of the Companies (Amendment) Act 2002, and move on to Singapore Financial Reporting Standards (FRS). The FRS is an outcome of the efforts of a body that goes by the name of the Council on Corporate Disclosure and Governance or CCDG. The body also gave its consent for the adoption of all international interpretations as that of the Singapore FRSs.
Statutory Requirements for the Companies in Singapore
Unless exempted, each Singapore company is required to table its audited financial statements before its Annual General Meeting (AGM). The Companies Act of Singapore also mandates that such documents should not be more than six months old. Under the current Singapore Financial Reporting Standards, financial statements comprise balance sheet, cash flow statement, income statement, statement of changes in the equity of the company and the explanatory notes.
In addition to these documents, the company must also file reports prepared by its auditors’ and directors’. They must also supply a document signed by the directors of the company, vouching its solvency and ability pay its own debts.
Appointing an Auditor is a Must
As the part of legal requirements of company formation in Singapore, every company, unless it is exempt must appoint at least one auditor within the three months of its incorporation. It must follow all the norms laid down by the Accountants act.
The appointee must be experienced and qualified enough to consume the financial statements, in order to prepare an auditor’s report for the government regulators, creditors, management and the shareholders of the company. External as well as internal audit reports are prepared by the experienced auditing firms in Singapore. They are very useful for these individuals in decision making.
Filing of Estimated Chargeable Income (ECI)
Within three months from the end of each financial year, each Singapore registered company must file its Estimated Chargeable Income (ECI) with the Inland Revenue Authority (IRAS) of Singapore. The filing is mandatory even when the ECI to file is ‘NIL’. The company must file a ‘NIL’ ECI statement with the IRAS.
Filing of Annual Tax Returns with the IRAS
The Singapore companies pay their taxes on the preceding year basis. Profits earned by them in the financial year, ending in the preceding year are taxed accordingly. They must abide by the due date of November 30, for filing their tax returns. Reliable tax services in Singapore assist their clients in efficient tax filing.
Companies lucky Enough to Get an Audit Exemption
Failing to follow Singapore FRS, at the time of preparation of financial statements or to file them is taken as the breach of the Companies Act. It is the responsibility of the directors and they may get penalized for failing in it.
The Singapore law exempts a few of the companies from the statutory auditing of their financial statements. Small exempt private companies having less than S$5 million revenue and the dormant companies are exempted from these requirements. They also need not appoint an auditor. However, they must still prepare their accounts and consolidated accounts, if required, as per the stipulations of FRS.
*********************** ARTICLE END ***********************
- To distribute your articles go to http://www.isnare.com/distribution.php
- For more free-reprint articles go to http://www.isnare.com
Message delivered directly to members of the group:
publish-the...@googlegroups.com
*****************************************************************
Please consider this free-reprint article written by:
SBS
*****************************
IMPORTANT - Publication/Reprint Terms
- You have permission to publish this article electronically in free-only publications such as a website or an ezine as long as the bylines are included.
- You are not allowed to use this article for commercial purposes. The article should only be reprinted in a publicly accessible website and not in a members-only commercial site.
- You are not allowed to post/reprint this article in any sites/publications that contains or supports hate, violence, porn and warez or any indecent and illegal sites/publications.
- You are not allowed to use this article in UCE (Unsolicited Commercial Email) or SPAM. This article MUST be distributed in an opt-in email list only.
- If you distribute this article in an ezine or newsletter, we ask that you send a copy of the newsletter or ezine that contains the article to http://www.isnare.com/eta.php?aid=1927425
- If you post this article in a website/forum/blog, ALL links MUST be set to hyperlinks and we ask that you send a copy of the URL where the article is posted to http://www.isnare.com/eta.php?aid=1927425
- We request that you ask permission from the author if you want to publish this article in print.
The role of iSnare.com is only to distribute this article as part of its Article Distribution feature ( http://www.isnare.com/distribution.php ). iSnare.com does NOT own this article, please respect the author's copyright and this publication/reprint terms. If you do not agree to any of these terms, please do not reprint or publish this article.
*****************************
Article Title: Financial Reporting and Audit Requirements for the Singapore Companies
Author: SBS
Word Count: 751
Article URL: http://www.isnare.com/?aid=1927425&ca=Business
Format: 64cpl
Contact The Author: http://www.isnare.com/eta.php?aid=1927425
Easy Publish Tool: http://www.isnare.com/html.php?aid=1927425
*********************** ARTICLE START ***********************
There is a dearth of natural resources in Singapore, which imposes great limitations on what this city-state can do to further its growth. The Singapore leaders wisely decided to invest in the service industry. Realizing the potential of the field of accountancy, they decided to focus on it.
They vowed to make Singapore an accountancy hub, by the year 2020. Singapore leaders, government officials, accountants, Singapore accounting service providers and so many others put in their concerted efforts to realize it.
What is Meant by Singapore Financial Reporting
Today, Singapore has established itself as a force to reckon with in the field of accountancy. Accounting and audit services in Singapore like, SBS Consulting, practice Singapore Financial Reporting Standards (FRS) while delivering their services. Financial reporting for the annual financial periods starting on or after 1 January 2003, must confirm with the stipulations of the FRS.
Singapore Financial Reporting Standards
In 2002, Singapore took some game changing decisions to bring important changes in the way audited financial statements are prepared and presented. They dropped Statements of Accounting Standards (SAS) issued by The Institute of Certified Public Accountants of Singapore (ICPAS).
They choose to implement section 37 of the Companies (Amendment) Act 2002, and move on to Singapore Financial Reporting Standards (FRS). The FRS is an outcome of the efforts of a body that goes by the name of the Council on Corporate Disclosure and Governance or CCDG. The body also gave its consent for the adoption of all international interpretations as that of the Singapore FRSs.
Statutory Requirements for the Companies in Singapore
Unless exempted, each Singapore company is required to table its audited financial statements before its Annual General Meeting (AGM). The Companies Act of Singapore also mandates that such documents should not be more than six months old. Under the current Singapore Financial Reporting Standards, financial statements comprise balance sheet, cash flow statement, income statement, statement of changes in the equity of the company and the explanatory notes.
In addition to these documents, the company must also file reports prepared by its auditors’ and directors’. They must also supply a document signed by the directors of the company, vouching its solvency and ability pay its own debts.
Appointing an Auditor is a Must
As the part of legal requirements of company formation in Singapore, every company, unless it is exempt must appoint at least one auditor within the three months of its incorporation. It must follow all the norms laid down by the Accountants act.
The appointee must be experienced and qualified enough to consume the financial statements, in order to prepare an auditor’s report for the government regulators, creditors, management and the shareholders of the company. External as well as internal audit reports are prepared by the experienced auditing firms in Singapore. They are very useful for these individuals in decision making.
Filing of Estimated Chargeable Income (ECI)
Within three months from the end of each financial year, each Singapore registered company must file its Estimated Chargeable Income (ECI) with the Inland Revenue Authority (IRAS) of Singapore. The filing is mandatory even when the ECI to file is ‘NIL’. The company must file a ‘NIL’ ECI statement with the IRAS.
Filing of Annual Tax Returns with the IRAS
The Singapore companies pay their taxes on the preceding year basis. Profits earned by them in the financial year, ending in the preceding year are taxed accordingly. They must abide by the due date of November 30, for filing their tax returns. Reliable tax services in Singapore assist their clients in efficient tax filing.
Companies lucky Enough to Get an Audit Exemption
Failing to follow Singapore FRS, at the time of preparation of financial statements or to file them is taken as the breach of the Companies Act. It is the responsibility of the directors and they may get penalized for failing in it.
The Singapore law exempts a few of the companies from the statutory auditing of their financial statements. Small exempt private companies having less than S$5 million revenue and the dormant companies are exempted from these requirements. They also need not appoint an auditor. However, they must still prepare their accounts and consolidated accounts, if required, as per the stipulations of FRS.
*********************** ARTICLE END ***********************
- To distribute your articles go to http://www.isnare.com/distribution.php
- For more free-reprint articles go to http://www.isnare.com
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