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Accounting Records and Financial Statements

Records

The Companies Act (Chapter 50) of Singapore imposes a requirement on every company, the directors and managers to keep such accounting and other records as will sufficiently explain the transactions and financial position of the company with reasonable accuracy.

The accounting records must be kept in such manner as will enable:-

-    true and fair financial statements of the company to be prepared from time to time

-    the financial statements to be conveniently and properly audited


Retention

Company shall retain accounting records for a period of not less than 5 years with effect from 1 January 2007 onwards after the completion of the transactions or operations to which they respectively relate.  However records for accounting period ended before 1 January 2007 shall be kept for 7 years.

The accounting and such other relevant records must be kept at the registered office or such other place as the directors think fit and shall at all times be open to inspection by the directors, will enable the preparation of true and fair financial statements.

Failure to comply with the requirements, the company and every officer of the company who is in default shall be guilty of an offence and shall be liable on conviction to a fine or to imprisonment and also to a default penalty.


Financial Statements

A financial statement should be prepared in compliance with the Financial Reporting Standards and requirements of the Companies Act (Chapter 50) include:-

1.1    a single comprehensive income statement (profit and loss account) or
1.2    an income statement with statement of comprehensive income
2.      a statement of financial position (balance sheet)
3.      a statement of changes in equity
4.      a statement of cash flow (cash flow statement)
5.      a set of notes to the financial statements
6.      a directors’ report
7.      a statement by directors
8.      an auditors’ report, where applicable

With effect from 1 November 2007, The Accounting and Corporate Regulatory Authority (ACRA) has introduced a new filing requirement whereby all Singapore registered companies other than those classified in the excluded category, are require to file their financial statements in XBRL (eXtensible Business Reporting Language) format.

Why XBRL?

It will provide more value-added financial information, improved transparency and timely dissemination of financial information.

Finance personal, for example, the accountant of a company is required to prepare the financial statements in XBRL format, to be submitted with annual return to the ACRA every year.


Accounting/Book Keeping Services

We could assist company in keeping its accounting records and prepare management accounts on a regular basis depending on the volume of transactions involved.


General Administration and Support Services

We could also provide administrative services relating to accounting services, for example, preparation of vouchers and deposit of cheques received.


Preparing Financial Statements

It could be a tedious and technical process to translate management accounts into financial statements in compliance with the Financial Reporting Standards and the Companies Act for anyone without accounting background.

Together with our fellow professionals, we could assist you in preparing the financial statements in compliance with the Financial Reporting Standards and the Companies Act from data in management accounts.


Preparation of XBRL Financial Statements

It will require some accounting knowledge and could be a time consuming process to prepare financial statements in XBRL format.

We could assist company in preparing financial statements in XBRL format, off load the burden faced by the finance personal, save their time for other important financial reporting.


Appointment of Auditors

Directors of a company must ensure that the company appoints auditors of the company within 3 months of incorporation; any auditors so appointed shall hold office until the conclusion of the first Annual General Meeting.

“Dormant company” and exempt private company with annual revenue that does not exceed the prescribed amount are exempted from appointing auditors for as long as it remains dormant or exempt private company with annual revenue does not exceed the prescribed amount.

Together with our fellow professionals from the accounting and tax, we try to provide a one-stop station to meet all aspects of business needs.