Financial Statement Preparation
Financial Statement Preparation is a key requirement for all accountants and finance professionals. The founders at Ezee got their start is public accounting firms. Hence, they are well versed with accounting standards, application of the standards and financial statement preparation. While US GAAP, International Financial Reporting Standards [IFRS] are the most common financial reporting standards, in recent years most standards have been converging towards IFRS.
All publicly listed companies need to prepare financial statements for their shareholders. But smaller companies including sole proprietorship, partnership, limited liability partnership, or limited partnership, are not required to file financial statements with ACRA. Financial statements filed with ACRA may be made public.
ACRA has prescribed the following categories of companies and defined their Financial Statement requirements as
- Insolvent Exempt Private Companies (EPCs) – XBRL FSH (General) templated + PDF FS copy authorized by Directors or Full XBRL template
- Solvent EPCs – Not required to file FS but can do so voluntarily either as PDF copy, XBRL FSH(General) template or Full XBRL template
- Banking, Finance, Insurance: MAS regulated – SBRL FSH(Banks) or SBRL FSH(Insurance) + PDF copy authorized by Directors
- IFRS or Non Singapore Accounting Standards – XBRL FSH(General) template + PDF FS authorized by Directors
- All other companies other than the above – FS in Full XBRL template
- Companies limited by guarantee – PDF FS authorized by Directors
- Foreign Companies with SG branches – PDF FS authorized by Directors
A company qualifies as a small company if
- it is a private company
- meets 2 of 3 criteria below for immediate past two consecutive financial years
- lotal annual revenue <= $10.0M
- total assets <= $10M
- no. of employees <=50
For a company which is a part of a group – the company must qualify as a small company and entire group must be a small group (meeting at least 2 of the 3 quantitative criteria on a consolidated basis for the immediate past two consecutive financial years.
All small companies defined above are exempted from audit.
Financial Statement Preparation
While not all companies require an audit, there are still companies that may need to file PDF copy of the financial statements either as mandatory or voluntarily and also file in the XBRL format. For companies that need assistance with preparing unaudited financial statements or if they required audited financial statements (if requested by their bankers or creditors) Ezee consultants are able to help prepare unaudited financial statements as per Singapore Accounting Standards along-with the notes to the accounts.
What is XBRL?
XBRL stands for eXtensible Business Reporting Language used for the electronic communication of business and financial data worldwide and is specifically suited to sharing information over the Internet. XBRL is managed by an international consortium, works on an open standard, license free and its use is growing rapidly offering cost savings, efficiency, accuracy and reliability of financial data. With the use of tags and metadata, XBRL allows for computer or machine reading of data even though the financial statements may use different words to refer to the same item. Singapore has developed a format or taxonomy for data to be filed in allowable formats. Companies required to submit XBRL information need to input, check and validate the data entry via a specialized tool prior to uploading.
Ezee Pte. Ltd. provides services for XBRL file preparation and submission.