Singapore Accounting System

Accounting requirements

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Singapore companies are required to prepare its financial statements according to the Singapore Financial Reporting Standards (“SFRS”) released by the Council on Corporate Disclosure and Governance (“CCDG”).  

CCDG was established on 16th August 2002 by the Ministry of Finance, all of its members are appointed by the Ministry of Finance, with representatives from businesses, professionals, academics and government sectors. The accounting standards developed by CCDG were included in the Singapore Companies Act. 


Financial Year

The accounting period for a Singapore company is 12 months, the first accounting period cannot be less than 6 months or more than 18 months from incorporation date.


Standard

The official language in Singapore is English, thus the company's financial statement has to be prepared in English and in accordance with the SFRS. If the company meets the exemption criteria, the financial statements prepared need not be audited.


Preparation frequency

There are no requirements on how frequent the financial statements need to be prepared. It is solely management's decision. However, a financial statement or audit report (if requirements are met) will have to be prepared for presentation at the company's annual general meeting and subsequently annual return filing.


Source Documents 

1. all bank statements, 

2. sales and purchase invoices, 

3. expenses invoices 

4. contracts (need to be retained and produced when requested for by the authorities. These documents will also need to be retained for at least 5 years.) 



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*(Original article by ERI,please cite ERI for repost. All rights reserved)


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