Details About The Accounting Profession Of Singapore

By Author: Asia Biz
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The Institute of Certified Public Accountants of Singapore (ICPAS) is the national body representing the accounting profession in Singapore.It maintains a register of qualified accountants comprising mainly local graduates.Membership is open to members of the Institutes of Chartered Accountants of England and Wales, Australia, Scotland, Ireland and some number of other accounting bodies.Generally, prior to being admitted as a full member, they must attend a week-long pre-admission course.After they became members, they will now be considered as certified public accountants.

It is the The Public Accountants Board who is responsible for issuing licenses as well as registering aspiring accountants. They are also responsible in managing practice monitoring, disciplinary matters and regulations on professional conduct.

Facts about Accounting Records in Singapore

The law requires all incorporated company to submit books with complete details of financial transactions of the company.

The said book will now be placed in the company's address or wherever the director might think would be the best place.If ...
... the books are maintained outside Singapore, sufficient records must be maintained in Singapore to facilitate the preparation and/or audit of financial statements that reflect accurately the company's financial position.

Sources of Accounting Principles

Financial Periods Commencing before 1 January 2003

The principal source of accounting principles in Singapore, namely Statements of Accounting Standards (SAS) and Interpretation of Statements of Accounting Standards (INT), are issued by ICPAS. These standards are essentially International Accounting Standards (IAS) modified for certain transitional provisions. Guidelines on the accounting measurements and announcement of requirements are provided by them. If for some reasons, ethics conflict with disclosure exemptions granted by law, certain company may go wayward from the expected ethics. In that case, it is required for CPAS to take whatever disciplinary action appropriate against members who are responsible in violating the standards. It is SAS and INT who are responsible in establishing rules on accounting measurements. Proclamation of requirements are done by SAS, INT and the Companies Act.

ICPAS is a member of the International Accounting Standards Committee (IASC). Compliance with IASC standards are not mandatory, but the institute supports the IASC objectives of formulating and publishing standards for observance during presentation of audited financial statements and promoting worldwide acceptance of such standards.

Financial Periods Beginning on or after 1 January 2003

With the implementation of section 37 of the Companies (Amendment) Act 2002, SAS issued by ICPAS will not be used with effect from annual financial periods commencing on or after 1 January 2003. Rather, Singapore Financial Reporting Standards (FRS), released by the new accounting standards-setting body, the Council on Corporate Disclosure and Governance (CCDG), are being used instead. In essence, FRS are are acquired from International Financial Reporting Standards (IFRS). The former SAS were acquired from the same set of IFRS (formerly referred to as IAS) however, with some changes to some provisions. Consequently, there are differences between FRS and SAS. Understanding of Standards are considered a legitimate guide on the application of the pertinent rules. CCDG accepted all international interpretations as Interpretations of FRS (INT FRS) effective beginning on or after 1 January 2003.

Compliance with FRS is a statutory requirement whereby any non-compliance amounts to a breach of the Companies Act by the directors.

Singaporean Financial Report

There is a requirement of audit to the financial statements up to six months prior to the Annual General Meeting by the shareholders. Generally if a company incorporated in Singapore has one or more subsidiaries, it must prepare consolidated financial statements unless it meets certain criteria as provided for in FRS 27 Consolidated and Separate Financial Statements. Currently, financial statements under the Companies Act consist of the balance sheet, income statement together with explanatory notes. With the Companies (Accounting Standards) Regulations 2002 coming into operation for financial periods on or after 1 January 2003, a complete set of financial statements will comprise the balance sheet, income statement, statement of changes in equity, cash flow statement and explanatory notes.

The financial statements must be accompanied by the directors' and auditors' reports and by a statement from the directors declaring that the financial statements show a true and fair view and that it is reasonable to believe that the company can reasonably pay its debts as they become due. Although companies that have complied with the requirements are not audited, they are still oblige to procure their financial statements in compliance with the Companies Act.

Requirements for Singaporean Companies on a Yearly Basis

One or more auditors should be appointed that are qualified for appointment under the Accountants Act to responsible in reporting the company's financial statements.All auditors that are appointed are accountable on keeping and maintaining all the important files and documents of the company.They will then report on the fairness of the financial statements to the shareholders at the Annual General Meeting.Audit Exemption Starting with the financial year beginning on or after 15 May 2003, the following companies are no longer required to have their accounts audited.But then, they are still obliged to prepare accounts that comply with FRS.

Small exempt private companies

Companies with a annual revenue of below S$5m are given exemption to appoint auditors as well as comply audit requirements. It is according to the legal accounting standards such as FRS that revenue is defined.

Dormant companies

An inactive company is not required to appoint auditors as well as accomplish audit requirements if it has been inactive either (a) during its creation or (b) from the end of the last financial year. It is considered an inactive company if it stop engaging its accounting transactions as well as it continues to be as such when transactions occur. With this regard, business affairs commencing from the ones below are ignored:
Getting of shares in the company by a subscriber to the memorandum
Appointment of company secretary
Nomination of an auditor
Maintaining an office that has been registered
Safekeeping of registers and books
Payment of bills, fines or default penalties to the Registrar of Companies

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