Compilation

Compilation
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ompilation is often the result of an accounting service known as write-up work. With compilations, or compiled financial statements, the outside accountant converts the data provided by the client into financial statements without providing any assurances or auditing services.

 

Most private limited companies in Singapore are no longer required to have their accounts audited if they satisfy certain conditions.

A company qualifies as a small company if:

(a) it is a private company in the financial year in question; and

(b) it meets at least 2 of 3 following criteria for immediate past two consecutive financial years:

        (i) total annual revenue ≤ $10m;

       (ii) total assets ≤ $10m;

       (iii) no. of employees ≤ 50.

For a company which is part of a group:

(a) the company must qualify as a small company; and

(b) entire group must be a “small group” to qualify to the audit exemption.

• 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.

• Where a company has qualified as a small company, it continues to be a small company for subsequent financial years until it is disqualified.
A small company is disqualified if:

(a) it ceases to be a private company at any time during a financial year; or

(b) it does not meet at least 2 of the 3 the quantitative criteria for the immediate past two consecutive financial years.

Where a group has qualified as a small group, it continues to be a small group for subsequent financial years until it does not meet at least 2 of the 3 the quantitative criteria for the immediate past two consecutive financial years.

We at PRUBIZ provide full account services, drafting of unaudited financial reports for exempt companies and offering audit service through our associated audit firms. Our audit services include all financial statements designed specifically to comply with ACRA’s and IRAS’s statutory requirements.

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