The preparation of financial statements in Singapore typically follows a specific order, with each statement building upon the information in the previous one. The typical order of preparation for financial statements in Singapore includes:

  1. Income Statement (Profit and Loss Statement): This statement starts with the company’s revenues and lists all the expenses incurred during a specific accounting period. The net income or loss for the period will be calculated in it. The income statement provides an overview of the company’s operational performance.
  2. Statement of Comprehensive Income: The statement of comprehensive income includes not only the net income from the income statement but also other comprehensive income items, such as unrealized gains or losses on available-for-sale securities. 
  3. Statement of Financial Position (Balance Sheet): The balance sheet presents the company’s assets, liabilities, and shareholders’ equity as of a specific date. It provides a snapshot of the company’s financial position, showing what it owns, what it owes, and the residual interest of the owners.
  4. Statement of Changes in Equity: This statement outlines changes in the company’s equity over a specific accounting period. It includes details on the issuance or buyback of shares, dividends paid, and changes in reserves or retained earnings.
  5. Statement of Cash Flows: The cash flow statement shows how the company generated and used cash during the accounting period. It is divided into operating, investing, and financing activities, providing insights into the company’s cash management.
  6. Notes to the Financial Statements: These are essential disclosures that provide additional information about the items presented in the financial statements. The notes offer explanations, details, and disclosures about accounting policies, contingent liabilities, related party transactions, and other material information.
  7. Statement of Financial Position (Comparative): This is a restatement of the balance sheet as of the end of the prior accounting period, usually presented side by side with the current balance sheet. It helps stakeholders compare the company’s financial position between two periods.
  8. Additional Statements: Depending on the specific requirements of the company, its industry, and regulatory obligations, there may be additional statements or schedules, such as segment reporting, related party transactions, and fair value measurement disclosures.
  9. Auditor’s Report: After the financial statements are prepared, they are subject to an independent audit by an external auditor. The auditor’s report provides an opinion on the fairness and accuracy of the financial statements.

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