Audit Exemption Criteria (from 1 July 2015 onwards)
With the recent amendments to the Singapore Companies Act, a private company that used to require statutory audit may no longer need to do so. The revised audit exemption criteria introduces the concept of “small company” and “small group” classifications in determining if a company/group qualifies for audit exemption for a particular financial year (FY). The previous audit exemption criteria (before FY starting 1 July 2015) for EPCs no longer applies once the revised audit exemption criteria takes effect.
The revised criterion stipulates that a company qualifies as a small company and is exempted from statutory audit if it is a private company and meets at least 2 out of the 3 following criteria:
- Total revenue ≤ S$10 million;
- Total assets ≤ S$10 million;
- Number of employees is ≤ 50
A small group is one that meets at least 2 out of the 3 quantitative criteria mentioned above on a consolidated basis for the last two consecutive financial years.
If your company qualifies for audit exemption, it will still need to prepare unaudited financial statement in accordance to the Companies Act and Singapore Financial Reporting Standards for the purpose of filing the company's tax returns to IRAS. The format is similar to an audited financial statement except that you do not need an auditor to sign off the report.
Consolidation is a combination of accounts of the parent company and its subsidiaries into a single economic entity in accordance with the Singapore Financial Reporting Standards. Consolidated accounts provide a comprehensive view of the financial position and performance of the group, rather than one standalone company’s financial position. This consolidated view provides important information of the group to investors and also for other business purposes.
We also assist in preparation of consolidated accounts post mergers, acquisitions and restructuring of group of companies.