Compilation Report Service | Unaudited Financial Statements

The Companies Act has provisions for certain types of companies to be exempted from audit. These companies are

• - dormant company, defined as a company that has ceased trading and does not have any accounting transactions.
• - small company, defined as a company where for the immediate past two consecutive financial years, the company meets at least 2 of 3 following criteria:
  (i) its total annual revenue in the financial year does not exceed  S$10 million;
  (ii) its total assets in the financial year does not exceed S$10 million
  (iii) its total number of employees does not exceed 50 full time employees at the end of the financial year;

Further to the above, no minority shareholders representing more than 5% of the company's total shares have requested that the accounts to be audited.

If your company fits the requirements above, then you need not have to be audited and therefore you can prepare the compilation report aka unaudited financial statements or Directors reports.

However, Companies and directors still have a legal responsibility to ensure that proper accounting and other records are kept to enable the unaudited financial statements/ compilation report to show a true and fair view to be prepared in accordance with the Singapore Financial Reporting Standards. The preparer of such compilation report has to have the professional competence and  due care in preparing the compilation of financial statements report.

The unaudited financial statements or compilation report is to be tabled during AGM, Annual Return Filing with ACRA and corporate income tax filing with IRAS.