Compilation Financial Statements

Compilation reports are unaudited financial statements. Companies may opt for non-audit services if they fulfil the statutory requirements. Compilation reports are inexpensive, and they serve as a better option for companies to meet the same compliance requirement for proper record keeping.

A compilation report will give you the level of comfort that the information is compiled with professional competence and due care. It is sufficient for income tax filing to the Inland Revenue Authority of Singapore (IRAS) and annual return filing to the Accounting and Corporate Regulatory Authority (ACRA).

What a Compilation Report Includes

A full set of compilation reports should include explanatory notes and accompanied by the Directors’ Report and the Statement by Directors. The reports are prepared in compliance with the Singapore Financial Reporting Standards (“SFRS”).

Audit Exemption Criteria

Companies with financial years that started on or after 1 July 2015 may be exempted for an audit if it meets at least 2 of the 3 following criteria for the immediate past two consecutive financial years:

• Total annual revenue of less than or equal to $10M
• Total assets of less than or equal to $10M
• No. of employees of less than or equal to 50

For a company which is part of a group:

• The company must be qualified as a small company
• The entire group must be a “small” group

For a group to be a small group, it must meet at least 2 of the 3 quantitative criteria on a consolidated basis for the immediate past two consecutive financial years.

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