In Singapore, the responsibility for the preparation of financial statements primarily falls on the management of a company or entity, especially the director. These financial statements are typically prepared following the Singapore Financial Reporting Standards (SFRS) or International Financial Reporting Standards (IFRS) for companies listed on the Singapore Exchange (SGX).
The specific financial reporting standards that a company must follow can depend on various factors, including its size, industry, and regulatory requirements. Generally, larger companies listed on SGX are required to follow IFRS, while smaller companies may follow SFRS or the Singapore Financial Reporting Standard for Small Entities (SFRS for SE).
Audited financial statements are required for most companies in Singapore. An external auditor, who is a registered public accountant in Singapore, is responsible for conducting an independent audit of the financial statements to assure their accuracy and compliance with the relevant accounting standards.
Additionally, the Accounting and Corporate Regulatory Authority (ACRA) in Singapore regulates financial reporting and accounting standards. It provides guidance and sets regulations to ensure that financial statements are prepared by the applicable standards and that companies fulfill their statutory obligations.
In summary, the key parties responsible for the preparation of financial statements in Singapore are:
- Company management: They are responsible for preparing the financial statements in compliance with the appropriate accounting standards.
- External auditors: They are responsible for auditing the financial statements to provide an independent opinion on their accuracy and compliance with accounting standards.
- Regulatory authorities: ACRA oversees financial reporting in Singapore and sets regulations to ensure compliance with accounting and reporting standards.