Financial statements need to be arranged by all organizations, whether private, public, or non-profit. They provide information on the organization’s performance to provide fiscal accountability and precision to its stakeholders and people with an interest in the company. These statements facilitate management to make business conclusions, enable creditors to appraise loan applications, and offer people with information to make investment decisions.
The Institute of Certified Public Accountants of Singapore (ICPAS) is the national body in lieu of the accounting profession in Singapore. Its membership is open to members of the Institutes of Chartered Accountants of England and Wales, Australia, Scotland, Ireland and other accounting bodies. The Companies Act necessitates that an audited set of financial statements, made up to not more than six months prior to every Annual General Meeting, is to be obtainable by the shareholders at the meeting. They must be accompanied by the directors' and auditors' reports and also with a statement from the directors stating that the financial statements are true and fair and that it is sensible to consider that the company can reasonably recompense its debts as they become due.
Financial Statements Preparation in Singapore goes through different processes.Compilation Of Financial Statements is important because they offer lowest level of assurance. They are a presentation of different financial reports and documentation, which represents the management of an organization. This is the only type of financial statement which allows the organization to exclude note disclosures as long as there is no intention to hoodwink the users. This is also the only financial statement that a non-certified accountant can prepare.
Consolidated financial statements are usually more significant than separate statements and, thus, are crucial when one company has a controlling financial interest in other companies. Consolidation is usually indicated when one company owns more than 50 percent of the outstanding voting shares of another company. It has many advantages but the most important is that organizations are able to contrast their own individual performance with others in the same industry or line of business. It is because of the recognized principles, standards and policies which make sure that there is a benchmark to be followed in the preparation of financial reports.