Financial Reporting Services
Quality financial information is important for vibrant and strong markets. More than ever, suppliers, investors, customers, financial institutions,corporate executives, corporate executives and many more are asking for timely and reliable financial statements to obtain a more accurate picture of the business, whether in terms of generating value or understanding the risks involved.
It is crucial that the market remains confident in the level of integrity, transparency and quality of financial reporting. Therefore, Accounting and Corporate Regulatory Authority (ACRA) has commenced a Financial Reporting Surveillance Programme to enforce against poor financial reporting that leads to unreliable information and/or non-compliance with the Singapore Financial Reporting Standards (SFRSs) issued by Accounting Standards Council Singapore (ASC).
Financial Reporting Surveillance Programme (FRSP)
The FRSP seeks to uphold the integrity, transparency and quality of financial reporting in Singapore. It does this through review of selected financial statements of companies to determine if they comply with the prescribed accounting standards and by taking firm enforcement action when a financial reporting breach is established.
A financial reporting breach occurs when a director has failed to comply with sections 201(1A), 201(3) and 201(3A) and/or sections 199(1) and/or 199(2A) the Companies Act.
Range of Sanctions which may be imposed on Directors
The range of enforcement actions that will be decided by the Registrar of Companies will include:
- advisory letter
- warning letter
- fine by offer of composition and
- prosecution leading to fines and/or imprisonment.
Directors' Duties in relation to Financial Reporting
Under sections 201(1A), 201(3) and 201(3A) of the Act, directors are responsible to present and lay before the company, at its annual general meeting, financial statements that:
- comply with Accounting Standards issued by the Accounting Standards Council and
- give true and fair view of the financial statements, and the state of affairs of the company.
In addition, under sections 199(2A) and 199(1) of the Act, respectively, it is directors’ responsibility to maintain a sound system of internal accounting controls and to keep proper accounting and other records that will enable the preparation of true and fair financial statements.
Challenges to directors in carrying out these financial reporting duties
SFRSs are subject to revision from time to time, it is challenging to keep abreast of the latest update of the accounting standards
Nowadays, businesses have also rapidly become more challenging and business models more intricate. To cope with them, financial reporting standards become increasingly complex and require more professional judgement on the part of the preparers of financial statements. For an example: more judgements to be made in wider use of fair value in measurement of assets and liabilities.
Solution to directors in carrying out these financial reporting duties
To support directors in carrying out these financial reporting duties, our accounting services Singapore has a team of qualified professionals with an appropriate level of expertise and knowledge of relevant accounting standards in order to provide professional accounting services in regard of compilation of financial statements in accordance to the accounting standards.
Why AG Accounting Services Singapore?
Quality. Our accounting teams are led by qualified accountants to ensure our service quality.
Flexibility. Our accounting services can be arranged to be performed at client offices or at our office. Onsite accounting outsourcing arrangement can be scheduled for week days or Saturdays.
Convenience. Clients can decide to have their accounts be maintained at their office or our office. This helps to increase clients’ office space capacity.
Confidentiality. Confidentiality is our core ethical value. All our services are governed by non-disclosure policy.
Cost Effectiveness. It is costly to hire a qualified accountants for a SME, not to mention the cost for setting up an accounting department. Outsourcing accounting function to an accounting firm in Singapore like AG helps to reduce fixed cost which give more flexibility to a company to control its operation cost.