Compilation Financial Statements

In Singapore, compilation of financial staements is prepared in accordance to Singapore Financial Standards (IFRS). Compaines that are exempted from audit requirements are not required to have their accounts audited. Instead, they will prepare unaudited accounts for purpose of Annual General Meetings (AGM’s), filing with ACRA and Income Tax Authority.Companies that exempted from audit are:-

  • Revenue not more than S$5 million for the financial year starting on or after 1 June 2004.
  • Company is dormant for the financial year starting on or after 15 May 2003.

A compilation of financial statements is preparing the financial statements of private entities based on information provided by the entity’s management. They are known as unaudited accounts. A key characteristic of a compilation is that no opinion or any other form of assurance is expressed on the fairness of the presentation of the financial statements. Accordingly, the accountant is not required to make inquiries or perform procedures to verify or review management. Under a compilation, management takes responsibility for the preparation and presentation of the financial statements.