A Singapore private limited company enjoys audit exemption, i.e. the accounts do not have to be subject to audit provided the shareholders of the private limited company comprise individuals only and the annual turnover of the private limited company is S$5million and below

However, Singapore private limited companies are still required to prepare financial reports in a format as defined by the Companies Act and the Singapore Financial Reporting Standards (FRSs) for submission to the relevant authorities such as Accounting and Corporate Regulatory Authority (ACRA) and Inland Revenue Authority of Singapore (IRAS). It is important that the financial report be prepared by a Chartered Accountant (C.A.) registered with the Institute of Singapore Chartered Accountants (ISCA) to ensure compliance with the requirements of the Singapore Companies Act and the Singapore Financial Reporting Standards.

Financial report which includes:

• Director’s Report
• Statement of Directors
• Income Statement
• Balance Sheet
• Statement of Changes in Equity
• Cash Flow Statement
• Accounting Policies
• Notes to Financial Statements
• Detailed Income Statement