Under the Companies Act, the following companies are not required to have their accounts audited:
- Companies that meet the "small company" criteria for a financial year starting on or after 1 July 2015 (Small Company = Private company that meets 2 of the following 3 quantitative criteria for immediate past 2 financial years: total revenue is equal or less than S$10 million; total assets is equal or less than S$10 million; number of employees is equal or below 50); or
- For a company which is part of a group: the company must qualify as a small company (see above) and the entire group must be a "small group" (Small Group = one that meets 2 of the following 3 quantitative criteria for immediate past 2 financial years: consolidated group revenue is equal or less than S$10 million; consolidated total assets is equal or less than S$10 million; aggregate number of employees is equal or below 50).
However, such companies must continue to maintain proper accounting records and prepare "true and fair" financial statements in accordance with the Financial Reporting Standards (FRS). Failure to maintain proper accounting records could result in Directors being fined up to S$2,000 or imprisoned for a term of up to 3 months in addition to a default penalty. Directors could also be fined up to S$50,000 if the financial statements do not comply with the FRS.
Covering the essential FRSs, the Preparing Unaudited Financial Statements workshop is designed to equip participants with the knowledge to prepare "true and fair" financial statements that comply with the FRS. Sample financial statements (Full FRS & SE FRS) will be provided.
- Audit Exemption & Legal Requirements
- Framework for the Preparation & Presentation of Financial Statements
- Interpretation of FRS
- FRS 1-1: Presentation of Financial Statements
- FRS 1-2: Inventories
- FRS 1-7: Cash Flow Statements
- FRS 1-8: Accounting Policies, Changes in Accounting Estimates & Errors
- FRS 1-10: Events After the Balance Sheet Date
- FRS 1-12: Income Taxes
- FRS 1-16: Property, Plant & Equipment
- FRS 115: Revenue
- FRS 1-24: Related Party Disclosures
- FRS 1-40: Investment Property