Company Financial Statements Preparation Generally, the financial statements will be prepared according to the latest Financial Reporting Standards (FRS) by a qualified individual or a corporate service provider like us. Thereafter, the directors will sign off on the report to approve it.
In most cases, the company’s financial statements are prepared without the requirement of being audited. To qualify for an audit exemption, the company has to meet 2 out of the following 3 criteria:
- Annual revenue is less than $10 million;
- Total assets is less than $10 million ;
- Not more than 50 employees.
An audited financial statements must be presented in a fair and true manner of the company’s financial and operational status. This includes ensuring the financial statements are in line with the accounting policies that provides relevant, comparable, reliable information. The information presented in the financial reports will provide the stakeholders with the specific information to make strategic decision. That is why there is high emphasis on the accuracy, reliability and relevance of the financial information.
Typically, the company’s financial statements will indicate the financial performance and position through the following statements:
- Director’s report,
- Statement of comprehensive income,
- Statement of financial position,
- Statement of equity,
- Statement of cash flow,
- Notes to the financial statements
ACRA regularly provides latest guidance to ensure compliance with existing financial reporting standards. Accountants can refer to the latest guidelines when preparing the financial statements. For instances, ACRA recently make an update on the financial reporting practice guidance that focus on FY 2019 financial statements.
Some of the key area of reviews are:
- SFRS(I) 16 / FRS 116 Leases
- SFRS(I) INT 23 Uncertainty over Income Tax Treatments
- SFRS(I) 15 / FRS 115 Revenue from Contracts with Customers
- SFRS(I) 9 / FRS 109 Financial Instruments
Click here for more information regarding the recent reviews.
We can help you to draft the unaudited financial statements to comply with ACRA compliance requirements. Contact us today for a quote.
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