At Wan Consultants, we have over 30 years of experience in providing top-notch, efficient and accurate financial statement preparation services for businesses in Singapore. Our diverse clientele includes F&B outlets and restaurants, enrichment centres, renovation contractors, commission agents, manufacturers, cleaning companies, hair and beauty salons, wholesale and retail traders, construction main and sub-contractors, transport & freight forwarding companies etc.
Is Financial Statement Preparation A Statutory Requirement?
Yes. Under sections 201(2) and 201(5) of the Companies Act, directors are responsible to present and lay before the company, at its annual general meeting, financial statements that comply with Accounting Standards issued by the Accounting Standards Council and give a true and fair view of the financial position and performance of the company. Directors are not expected to be accounting experts and could engage the financial statement preparation services of a professional accounting firm.
Is Keeping Accounting And Other Records A Statutory Requirement?
Yes. Under sections 199(2A) and 199(1) of the Act, directors are responsible to maintain a system of internal accounting controls and keep proper accounting and other records that will enable the preparation of true and fair financial statements. As part of our financial preparation service, we would keep your complete accounting records such as General Ledger, Fixed Asset detailed listing, GST detailed listing, bank statements and bank reconciliation, etc in our server.
Who Needs To File Financial Statements To ACRA?
SG-incorporated exempt private companies (EPCs) that are insolvent need to file financial statements to ACRA. Smaller and non-publicly accountable companies should file their financial statements in Simplified XBRL format, together with a PDF copy of the financial statements authorised by directors. A smaller company refers to one whose revenue and total assets do not exceed $500,000 and $500,000 respectively. All other insolvent companies should file their financial statements in Full XBRL format.
Filing in Full XBRL format requires certain training and therefore it is recommended to outsource to a secretarial firm.
If I Am A Solvent Exempt Private Company, Do I Need To File Financial Statements To ACRA?
No, solvent EPCs only need to make an online declaration of their solvency.
If My Company Has A Corporate Shareholder And It Is Solvent, Do I Need To File Financial Statements To ACRA?
Yes, because your company is a private company, it needs to file financial statements to ACRA. Smaller and non-publicly accountable companies should file their financial statements in Simplified XBRL format, together with a PDF copy of the financial statements authorised by directors. A smaller company refers to one whose revenue and total assets do not exceed $500,000 and $500,000 respectively. All other private companies should file their financial statements in Full XBRL format. Filing in Full XBRL format requires certain training and it is best to outsource to a secretarial firm.
What is an insolvent company?
A company is only insolvent if it is unable to meet its debts when they are due. In accounting terms, it is when the value of a company’s liabilities exceeds the value of its assets.
If My Company Is Dormant, Are Financial Statements Preparation Required?
No. If the dormant company is unlisted, not a subsidiary, and the company’s total assets is not more than S$500,000, the company is exempted from financial statements preparation. The company should still keep the accounting and other records as required by the Companies Act.
What is a Dormant Company According To ACRA?
According to ACRA, a company is considered dormant if there is no accounting transaction during that financial year. The Companies Act also states the transactions which will be disregarded when determining dormancy:
– the taking of shares in the company by a subscriber to the memorandum in pursuance of an undertaking of his in the memorandum;
– the appointment of a secretary of the company;
– the appointment of an auditor;
– the maintenance of a registered office;
– the keeping of registers and books;
– the payment of any fee and charges payable under written law;
– the payment of any composition amount payable under written law;
– the payment or receipt by the company of a nominal sum not exceeding $5,000.
What Is A Dormant Company according to IRAS?
IRAS defines a dormant company as one that does not carry on business and has no income for the whole of the basis period. Dormant companies can seek to waive the income tax filing.
What Is The Difference Between ACRA and IRAS’ Definition Of A Dormant Company?
If a company has expenses such as salary to an employee, the company is considered dormant by IRAS, but active by ACRA.
What Constitutes A Complete Set Of Financial Statements?
According to Singapore Financial Reporting (FRS) standards, a complete set of financial statements comprises: a) a statement of financial position as at the end of the period; b) a statement of profit or loss and comprehensive income; c) a statement of changes in equity for the period; d) a statement of cash flows for the period; and e) notes, comprising significant accounting policies and other explanatory information.
What is the duty of the director in relation to financial reporting?
Directors are required to exercise care, competence and diligence in the review of the complete set of financial statements presented to the shareholders during AGM.
Directors should seek the financial statements preparation service of Chartered Accountants who could explain the content of the financial statements to them.
Are There Other Reasons For Preparing Financial Statements?
Preparing financial statements helps you make better business decisions and be aware of the financial status of your business (i.e. profit or loss position, whether there is internal fraud or theft). Financial statements preparation may also be requested by licensing authorities, MOM, customers during job tenders, statistics departments, grants applications, landlords, and by potential buyers of your company.
What Are The Documents Required For Financial Statement Preparation Service?
The documents required for financial statement preparation service are bank statements, sales invoices or serially numbered sales receipts, purchases and expenses invoices, CPF statements and salary payslips, rental agreements, documents relating to your imports and exports (eg bill of lading, airway bill, export permit), hire purchase agreements, bank loan statements, payment vouchers on payment made to individuals, closing stock lists, GST Form 5 and detailed listing etc.
Can I keep the records electronically?
Yes, IRAS accepts records kept digitally.
| Promotional Secretarial Fee (SGD) | ||
|---|---|---|
| 1 Year Plan | 2 Years Plan | 3 Years Plan |
| 300 | 600 | 850 |
| Other services 其他服务 | SGD |
|---|---|
| Appoint Corporate Secretary 委任公司秘书 | 63 |
| Register of Registrable Controller + AML/ CFT 公司控制权宣誓 | 35 each |
Full Compliance Package 全合规呈报配套
| Annual turnover (SGD) 年营业额 | Promotional Price (SGD) | |
|---|---|---|
| Dormant | 年营业额零 | 438 |
| 1 ~ 50,000 | 年营业额少于五万 | 698 |
| 50,000 ~ 100,000 | 年营业额少于十万 | 898 |
| 100,000 ~ 200,000 | 年营业额少于二十万 | 1,198 |
| 200,000 ~ 300,000 | 年营业额少于三十万 | 1,398 |
| 300,000 ~ 400,000 | 年营业额少于四十万 | 1,698 |
| 400,000 ~ 500,000 | 年营业额少于五十万 | 1,998 |
| Above 500,000 | 年营业额多于五十万 | Contact Us for a Quote |
Full Compliance Package includes:
- Full Set Financial Statements – Income Statement, Balance Sheet and General Ledger 全套帐目
- Bank Reconcilation 银行对账
- Fixed Asset Schedule 资产表
- Unaudited Report 未审核计报告
- Annual Return 呈报董事常年会议
- Annual General Meeting 股东会议
- Submission of Income Tax Return 公司报税
- Notes to Financial Statements