FINANCIAL STATEMENT PREPARATION

Financial statements provide information to stakeholders such as creditors, shareholders, employees and the public. The information in the financial statements reflects the company’s financial position, performance and cash flow to help stakeholders make decisions in their dealings with the company.

Under section 201 of the Companies Act, Directors are also required to present at AGM, company’s accounts that comply with the requirements of the Accounting Standards and which give a true and fair view of the state of affairs of the company to its shareholders.

A complete set of financial statement comprises the following:

• A statement of financial position as at reporting date;
• Either:
◦ (a) A single statement of comprehensive income for the reporting period, or
◦ (b) A separate income statement and a separate statement of comprehensive income for the reporting period
• A statement of changes in equity for the reporting period;
• A statement of cash flows for the reporting period;
• Notes, comprising a summary of significant accounting policies and other explanatory information, and
• A statement of financial position as at the beginning of the earliest comparative period when an entity applies an accounting policy retrospectively or makes a retrospective restatement of items in its financial statements, or when it reclassifies items in its financial statements (not applicable for financial statements prepared in accordance with Singapore Financial Reporting Standards for Small Entities)

Exempt Private Companies (EPCs) that has no corporate shareholder and no more than 20 shareholders, and have a turnover of not more than S$5million for the accounting year can prepare UNAUDITED financial statement to file Annual Returns with ACRA (Accounting and Corporate Regulatory Authority). Dormant companies are also exempted from filing audited financial statements.

Service

Chan Management Services will prepare (unaudited) Financial statements in accordance with Financial Report Standard(“FRS”) prescribed by the Council on Corporate Disclosure and Governance (“CCDG”) and to give a “true and fair” view on company financial position. The financial statement would include:

• directors’ report,
• directors’ statements,
• profit/loss statement,
• balance sheet statement,
• change in shareholders’ equity,
• notes to financial statements

In the case of audited financial statement, we will offer audit services through our Partner Audit Firm. Our audit service would include provisions designed specifically to comply with ACRA’s and IRAS’ statutory requirements.

Process/Documents Needed

• One of the directors/ managers to be present during the preparation of the account statement.
• Provide Estimated Annual Sales Turnover of Company;
• Management Report consisting of Profit & Loss, Balance Sheet, General Ledger, Accounts Payable/Receivable Reports and Bank Reconciliation Report for Financial Period; (if you did not use our book-keeping service);