Elite Group

Accounting

Elite has professional accountants who can customize accounting services that meet the actual needs of customers according to their situations. Elite's accounting services include:

  1. We use professional accounting software to provide accounting services according to the complexity and requirements of the accounts.
  2. Set up accounting books and enter the company's income and expenditure.
  3. Compiled by:
    1. Balance Sheet
    2. Profit and Loss Statement
    3. Cash Flow Statement
    4. Statement of changes in equity
    5. Account details
    6. Prepare the company's financial reports

Financial Statements

financial report

Financial statements are written records that communicate a company's business activities and financial performance. They are usually prepared by the company's accounting department, audited by an audit firm, signed by the company's directors, and approved at the annual general meeting of shareholders.

Types of Financial Reports for Singapore Companies

There are two types of financial statements – audited financial statements and unaudited financial statements.

A Singapore private limited company/small company that is exempt from audit may present its accounts using unaudited financial statements. A non-exempt company must present its accounts using audited financial statements, unless the company is completely inactive and dormant during the financial period.

Structure of Financial Reporting of Singapore Companies

Financial statements consist of several key parts, including:

  • Directors' Report
  • Director's Statement
  • Auditor's Statement (for audited accounts only)
  • Statement of Financial Position (Balance Sheet)
  • Profit and Loss Statement
  • Equity Statement
  • Cash flow statement
  • Notes to Financial Statements (Disclosure Notes)

Why prepare financial statements?

Financial statements need to be prepared because:

1. This is required by law in Singapore. The Singapore Companies Act provides in Section 201 that company directors need to prepare financial reports that comply with the Singapore Accounting Standards.

2. The Singapore Inland Revenue Authority requires companies registered in Singapore to prepare financial statements and tax calculations every year for corporate tax submission. In recent years, if your company is eligible to submit Form CS, you do not need to submit your financial statements to the Singapore Inland Revenue Authority. However, the Individual Retirement Security System has made it clear that even if you do not need to submit it with Form CS, you still need to continue to keep your financial reporting records and tax calculations.

3. If your company is not exempted from audit, or if it is exempted from audit but is insolvent, you will need to submit your financial statements to the Singapore Accounting and Corporate Regulatory Authority (ACRA) within the specified annual reporting period.

4. Financial statements are essentially a report card of a company's financial performance, and the information they provide is extremely valuable to the company's owners and directors in evaluating the company's future plans.

5. When you intend to sell shares in your company to other shareholders, you will need to pay stamp duty, and part of calculating stamp duty requires using financial statements to calculate the net asset value of the company.

6. If you have taken out a business or property loan, a copy of your financial statements may be required during your refinancing process.

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