Companies that are exempted from the audit requirement are still required to prepare a full set of unaudited Financial Statements including explanatory notes with Directors’ Statement, and be prepared in compliance with the Singapore Financial Reporting Standards.
The unaudited Financial Statements is for the purpose of Annual General Meetings, tax submission and accountability to stakeholders. The unaudited Financial Statements can also be used to obtain banking facilities, apply for government grants and to meet regulatory requirements in specific industries.
Unaudited Financial Statements contains:
Directors’ Statement
Statement of Comprehensive Income
Statement of Financial Position
Statement Of Changes In Equity
Statement of Cash Flows
Notes to the Financial Statements
Exemption from Audit requirement:
The audit exemption is applicable for financial years beginning on or after the change in the law (1 Jul 2015) if the company qualify as a small company or a company which is part of a small group.
A company qualifies as a small company if:
(a) it is a private company in the financial year in question; and
(b) it meets at least 2 of 3 following criteria for immediate past two consecutive financial years:
(i) total annual revenue ≤ $10m;
(ii) total assets ≤ $10m;
(iii) no. of employees ≤ 50.
For a company which is part of a group:
(a) the company must qualify as a small company; and
(b) entire group must be a “small group” to qualify to the audit exemption.
For a group to be a small group, it must meet at least 2 of the 3 quantitative criteria on a consolidated basis for the immediate past two consecutive financial years.
Where a company has qualified as a small company, it continues to be a small company for subsequent financial years until it is disqualified. A small company is disqualified if:
(a) it ceases to be a private company at any time during a financial year; or
(b) it does not meet at least 2 of the 3 the quantitative criteria for the immediate past two consecutive financial years.
Where a group has qualified as a small group, it continues to be a small group for subsequent financial years until it does not meet at least 2 of the 3 the quantitative criteria for the immediate past two consecutive financial years.
For an non-obligatory quote; please email profit & loss and balance sheet to info@asia.com.sg. We will respond within 3 working days.