Compilation of Unaudited Financial Statements
Non-Audit Services – a viable option
Under certain circumstance it becomes a very viable choice to opt for a Non-Audit Service. Instead of having their annual accounts audited by an independent auditor (which can cost up to S$10,000 and take 2-3 months depending on the complexity) many SMEs are choosing to go the route of a Compilation Report, which covers all of the compliance requirements, but is less intrusive, costs between S$300 and S$1,000, and can take as little as 3 days to compile.
What is a Compilation Report?
It is a complete set of financial statements that is prepared in compliance with the Singapore Financial Reporting Standards (SFRS) and includes the following:
- Directors’ Statements
- Statement of Comprehensive Income
- Statement of Financial Position
- Statement of Changes in Equity
- Accounting Policies
- Notes to Financial Statements
- Detailed Income Statement
A compilation report produced by OS1 Enterprise will be compiled by specialists, to professional standards. It will conform fully to all SFRS requirements, and is perfect for income tax and annual return filing purposes.
Is My Company Exempt for Audits?
Your company may be exempted from audit requirements (and can file unaudited accounts) and become classified as an Exempt Private Company (EPC) if it meets any of the following conditions:
- For the financial period commencing on or after 1 June 2014 it is a company with no corporate shareholders and not more than 20 individual shareholders, and with annual revenues of less than S$5 million. (Where the financial year is less than 12 months, the amount must be apportioned pro-rata).
- It is a dormant company with a financial period commencing on or after 15 May 2013
- An audit is not required by:
Shareholders holding not less than 5% interest in the company’s share capital; or ACRA; or other government authorities/financial institutions/ creditors.
OS1 Enterprise offers the most cost-effective method of preparing your Compilation Report.