Compilation of Accounts

A company which qualifies as a small company is exempted from having its accounts audited.

 

According to ACRA's criteria (i.e. small company concept) that are effective from financial years beginning on or after 1 July 2015, a company qualifies as a small company if:

a) it is a private company; and
b) it meets at least 2 of the following criteria for the immediate past 2 consecutive financial years:

• Total annual revenue ≤ S$10 million;

• Total assets ≤ S$10 million; and

• Number of employees ≤ 50

 

For a company which is part of a group (including the parent company):

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• the company must qualify as a small company; and

• the entire group must be a "small group" (i.e. meet the quantitative criteria stated in (b) above on a consolidated basis.

 

However, small companies which are exempted from annual audit are not exempted from the obligation to maintain proper accounting records. A compilation report or unaudited financial statements might need to be prepared and submitted when filing annual returns and income tax returns with ACRA and IRAS respectively.

 

A compilation report or unaudited financial statements may also be required to facilitate merger and acquisition, as a routine submission documents to financial institutions and other funding bodies to support provision of a loan or grant and for performance review and business planning by the management.