Financial Statements

Is it mandatory to prepare Financial Statements?

All active Private Limited Companies in Singapore are legally obligated to prepare their Financial Statements yearly (either Audited or Unaudited). Financial statements provide detailed and crucial information about a company’s financial position, performance, cash flows, and any pertinent changes that help users make economic decisions.

How can we assist you?

PACE Professional offers a wide range of services, including:

Full Accounting Services
Drafting of unaudited financial statements for exempt companies, as well as audited financial statements through our associated audit partners.

Our audit services comply with ACRA’s and IRAS’s statutory requirements.

*Please note that fees may vary depending on the complexity of the accounts.

When is my company required to prepare an audited financial statement?

Your company is required to prepare an audited financial statement if it meets any of the following criteria for the financial year:

Company’s total annual revenue exceeds S$10 million.
Company’s total assets exceed S$10 million.
Company has more than 50 shareholders.

In addition, if your company is a subsidiary of a company incorporated outside of Singapore, it must prepare audited financial statements if it meets any of the above criteria and the holding company is required to prepare audited financial statements under the laws of its country of incorporation.

Where a company has qualified as a small company, it continues to be a small company for subsequent financial years until it is disqualified.

A small company may be disqualified if:

it ceases to be a private company at any time during a financial year;
or it fails to meet at least 2 of the 3 the quantitative criteria for the immediate past two consecutive financial years.

Where a group has qualified as a small group, it continues to be a small group for subsequent financial years until it does not meet at least 2 of the 3 the quantitative criteria for the immediate past two consecutive financial years.

To add on, the 3 quantitative criteria to qualify as a small company are:

Total annual revenue of not more than SGD 10 million for the financial year
Total assets of not more than SGD 10 million as of the end of the financial year
The number of employees must be fewer than or equal to 50 employees at the end of the financial year.

If a company meets 2 out of the 3 criteria for the immediate past two consecutive financial years, it will qualify as a small company and be exempted from having to prepare audited financial statements.

Relieve yourself of accounting worries with our expert team of accountants.

We will work closely with your team to ensure your complete satisfaction. Trust us to handle your accounting needs with professionalism and expertise.

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