All companies incorporated in Singapore and all Singapore branches of foreign companies are required by the Companies Act to prepare and present financial statements that comply with the Singapore Financial Reporting Standards (SFRS). Under the Income Tax Act, a Company is required to keep proper business records for a minimum period of 5 years.
Accounting is not simply recording of sale and purchases invoices. Performing that alone will not ensure your accounts are in compliant with the accounting standards. There are many other accounting considerations to be addressed. This includes accounting for provisions, depreciation of your fixed assets, reconciliation of bank balances etc. Please see the link for a full list of Singapore Financial Reporting Standards: http://www.asc.gov.sg/2017volume
This is a general accounting flow of a business:
The financial statements are made up the following components:
- Director's Statement
- Statement by Auditors (for audited accounts only)
- Statement of Financial Position
- Statement of Comprehensive Income
- Statement of Changes in Equity
- Cashflow Statement
- Notes to Financial Statements (Additional disclosures to all the key accounts)
Companies are required by the law to prepare financial statement.
- IRAS requires financial statements to be submitted for Form-C tax filing
- ACRA requires all companies to submit their financial statements unless they are exempt solvent companies
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