Whereas some companies may be exempted from the audit of financial statements, the Companies Act has not exempted companies from preparation of financial statements that complies with Singapore Financial Reporting Standards. Many companies may have in-house accounting team who prepares the accounts that lead to Balance Sheet and Profit or Loss. However, Balance Sheet and Profit or Loss are not complete financial statements.
Complete financial statements includes balance sheet, profit or loss, statement of changes in equity, statement of cashfows, notes to financial statements comprising a summary of significant accounting policies and other explanatory information, comparative figures and balance sheet at the beginning of previous year if needed be.
While the balance sheet and profit or loss makes the easiest part of the financial statements, the notes to the financial statements contain some of the most important breakdown of what is needed by reader which is often neglected by the Company. Our accountants are always kept abreast with the changes in the accounting standards and disclosure requirements. Shall you require assistance or information about any requirements about preparation of financial statements, call us or leave us an email.