top of page

Preparation of Unaudited Financial Statements in Singapore

Focus on growing your business.
Atriox Management will make accounting hassle-free for you.

What is Financial Statement?

Financial statements provide information to stakeholders such as creditors, shareholders, employees and the public. The information in the financial statements reflects the company's financial position, performance, and cash flow to help stakeholders make decisions in their dealings with the company.

A Complete set of Financial Statement include the following:

  • Statement of Financial Position

  • Statement of changes in equity

  • Statement of cashflows

  • Notes to the Financial Statement

What is an unaudited financial statement?

Financial statements that have not been checked or verified by a qualified independent auditor are considered to be unaudited financial statements or compilation financial statements. This unaudited financial statement is also needed during the AGM within 6 months of the financial year end when filing Annual Returns with ACRA and filing of income tax with IRAS.

What companies need to prepare Unaudited Financial Statement in Singapore?

Every company in Singapore is required to prepare and audit their financial statements and accounting records, unless the company is qualified as:

  1. Small company

  2. Small group

  3. Dormant company


Then these companies are exempted from having their financial statement and accounts audited. This audit exemption is applicable for financial years beginning on or after the change in the law (companies act) on 1 Jul 2015. Below are the requirements for a company to be exempt from the audit:


1. For a company to qualify as a “small company”: 

  1. It is a private company in the financial year in question; and

  2. It meets at least 2 of 3 following criteria for the immediate past two consecutive financial years: 

    1. Total revenue not exceeding S$10 million;

    2. Total assets not exceeding S$10 million;

    3. Number of full-time employees not exceeding 50


2. For a group company or holding company to qualify as a “small group”:

  1. It meets at least 2 of 3 following criteria for the immediate past two consecutive financial years:

    1. The consolidated revenue must not exceed S$ 10 million;

    2. The consolidated total assets must not exceed S$ 10 million;

    3. The total number of employees of the group must not exceed 50.

3. For a company to qualify as a “dormant company”:

  1. The company fulfils the substantial assets test with the total assets of the company at any time within the financial year must not exceed $500,000.
    For a parent company, the consolidated total assets of the group at any time within the financial year must not exceed $500,000.

  2. The company has been dormant from the time of formation or since the end of the previous financial year.


However, exempted companies or “small companies” or “small groups” are still required to prepare unaudited yearly financial statements to file Annual Return with ACRA even if your company is exempt from statutory audit.


Prior Criteria for Audit Exemption

According to the Amendment Act 2014, there are some key changes to the Companies Act relating to Audit and Preparation of Financial Statements in Singapore.


Back in 2014, the prior requirements for companies to be exempt from audit are:

  • No corporate shareholder

  • No more than 20 shareholders

  • Turnover of not more than SGD 5 million for the accounting year

What services are included in our Unaudited Financial Statement?

Atriox Management will prepare the unaudited financial statement in accordance with the Financial Reporting Standard (“FRS”) prescribed by the Council on Corporate Disclosure and Governance (“CCDG”) and to give a “true and fair” view of the company's financial position.

The unaudited financial statement based on the Financial Reporting Standards (“FRS”) would include:

  • Directors’ Report,

  • Directors’ Statements,

  • Profit/Loss Statement,

  • Balance Sheet Statement,

  • Changes in Shareholders’ Equity,

  • Notes to Financial Statements


What if Audited Financial Statement is required?

Audit services will be provided through our network of Strategic Partner Audit Firms. Audit services provided by our strategic partner will include provisions designed specifically to comply with ACRA and IRAS' statutory requirements.

What is the difference between audited and unaudited financial statements?

An unaudited financial statement is mainly used internally in the company. It is also more cost-efficient compared to audited financial statements that are required to be audited by an independent licensed auditor, which will be costly. Audited financial statements, on the other hand, are usually for public companies.

Companies are required to prepare unaudited financial statements singapore
bottom of page