Compilation of Financial Statements in Singapore: A Guide for Businesses

In Singapores well-regulated corporate environment, accurate and compliant financial reporting isnt just a legal requirementits a vital part of responsible business management. For many companies, especially smaller private limited companies and exempt private companies, preparing acompilation of financial statements in Singaporeis a necessary step toward maintaining statutory compliance and financial transparency.

This article explores what the compilation of financial statements entails, why it's essential, how it's tied to ACRA financial statementsrequirements, and what businesses should know about the compilation of financial statements Singapore price.

What Is a Compilation of Financial Statements?

A compilation of financial statementsis the process where an external accountant or corporate services provider gathers and presents a companys financial data in the form of structured statements, without auditing or verifying the accuracy of the data.

These compiled financial statements typically include:

lStatement of Comprehensive Income (Profit & Loss)

lStatement of Financial Position (Balance Sheet)

lCash Flow Statement

lNotes to the Accounts

lDirectors Statement

Unlike an audit, a compilation does not express an opinion on the fairness or accuracy of the financials. However, the format and preparation must still adhere to the Singapore Financial Reporting Standards (SFRS).

Who Needs to Prepare Compiled Financial Statements in Singapore?

In Singapore, most private limited companiesare required to prepare financial statements annually as part of their regulatory obligations to the Accounting and Corporate Regulatory Authority (ACRA). These statements are submitted together with the Annual Returnfiling.

Businesses that typically require compilation of financial statements in Singaporeinclude:

lDormant companies(those with no financial transactions during the year)

lExempt Private Companies (EPCs)that are not subject to audit

lStartups and SMEsthat meet the small company exemption criteria

Companies that outsource bookkeeping and require an end-of-year financial summary for filing

ACRA Financial Statements Requirements

ACRA financial statementsare the official set of documents that companies submit to ACRA as part of their annual compliance. These statements must:

lBe prepared in accordance with SFRS

lInclude the Directors Statement

lBe filed in XBRL format for most companies, unless exempt

lReflect accurate figures based on actual bookkeeping records

Be submitted in time with the companys annual return

Failure to file compliant ACRA financial statementscan result in penalties, late fees, or in serious cases, enforcement actions against directors.

Why Is the Compilation of Financial Statements Important?

While some companies may consider compiled financial statements as a formality, they play a crucial role in a companys financial management and compliance. Here are some key reasons why they matter:

1.Regulatory Compliance
Properly compiled financials ensure that your company meets its statutory obligations to ACRA and IRAS.

2.Financial Transparency
Even if youre exempt from audit, compiled financials give directors and shareholders a clear view of the companys financial health.

3.Investor Readiness
Having professionally prepared financial statements is essential if you are seeking loans, funding, or partnerships.

4.Tax Preparation
Compiled financial statements serve as the foundation for accurate corporate tax computation and filing.

5. Credibility
Even for small or dormant companies, providing financial transparency through proper compilations adds credibility to the business.

What Is the Compilation of Financial Statements Singapore Price?

The cost of preparing compiled financial statements in Singaporedepends on several factors:

Complexity and size of the business: More transactions and accounts lead to more work.

Whether bookkeeping is already completed: If the provider must clean up or re-do your books, costs will be higher.

Dormant vs active company: Dormant companies typically enjoy lower compilation fees.

Turnaround time: Urgent requests may incur additional charges.

Bundled services: Some corporate service providers offer packages that include bookkeeping, tax filing, and compilation.

Generally, the compilation of financial statements Singapore priceranges from a few hundred to over a thousand dollarsdepending on the above factors. For instance, ZE Global offers tailored packages that align with your companys profile, ensuring cost-effective solutions without compromising on compliance.

Should You Outsource Compilation Services?

Yesespecially if:

lYou dont have an in-house accountant

lYour bookkeeping is done by a third party

lYou want to ensure alignment with ACRA and IRAS standards

lYoure looking for a hassle-free, year-end compliance process

Outsourcing to a firm like ZE Global ensures that your financial statements are prepared with precision, formatted correctly in XBRL where needed, and submitted on time. This not only saves time but also provides peace of mind.

Conclusion

In Singapores corporate ecosystem, staying compliant with annual reporting requirements is essential. Even for small and dormant companies, the compilation of financial statementsis a critical step that supports regulatory filings, tax reporting, and long-term credibility.

Whether you're preparing ACRA financial statements, managing end-of-year reporting, or simply trying to meet your compliance deadlines without stress, engaging professionals can help you navigate the process smoothly. And with competitive compilation of financial statements Singapore pricepoints available through service providers like ZE Global, you can ensure compliance without breaking the bank.