Compilation of Financial Statements | Singapore Accounting Firm
Singapore Accounting Firm, Tan,Chan & Partners provide Exempt Private Company (EPC) Accounts Compilation Service, which will help you fully comply with the new Companies Act and reduce your business costs tremendously.
A compilation of financial statements report assures that information is put together with professional competence and due care. It is also sufficient for income tax filing purposes. However, a Compilation Engagement is not an audit where no audit opinion is issued.
What is an Exempt Private Company (EPC)?
- » An EPC is a private company with no corporate shareholders and not more than 20 shareholders.
- » An EPC is a company whose annual revenue does not exceed the prescribed annual revenue threshold of $5 million for financing years starting on and after 1 June 2004
Eligibility for audit exemption:
- » Dormant companies (i.e. those with no significant accounting transactions), or
- » The laws allows a small exempt private companies to be exempted from audit requirements in respect of a financial year if its revenue in that year does not exceed the prescribe amount of S$5 million on and after 1 June 2004.
- » The amended law also removes the requirement for secretaries of exempt private companies to sign on the exempt private company certificates. This amendment shall apply to all exempt private companies for financial years starting on and after 15th May 2003
Director’s obligation under the law:
- » Maintain proper accounting records, that will allow their accounts to be audited, if necessary, i.e. by the requests of:-
- The shareholders representing 5% or more of a company’s ordinary shares
- The Registrar of Companies and Businesses.
- The Banks or other Creditors/Financial Companies.
- Other Corporate Bodies.
- Prepare “true and fair” financial statements that comply with the Financial Reporting Standards (“FRS”) that are prescribed by the Council on Corporate Disclosure and Governance (“CCDG”).
- Penalty for non-compliance with prescribed accounting standards: With effect from January 2003, the law requires all companies inSingaporeto prepare their financial statements in accordance with the prescribed accounting standards. When there is non-compliance with such a legal requirement, there will be a fine of up to $50 000. The fine will be increased to $100 000 and the offender may also be imprisoned for up to 3 years if the offence is committed with an intent to defraud. The criminal sanction provided is intended to send a strong signal that the government takes a serious view of such offences.
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