Corporate Compliance and Financial Reporting in Singapore

Financial reporting is a corporate compliance requirement that private limited companies should adhere to and the engagement of a corporate service provider Singapore is critical for accurate reporting. When considering investing in Singapore, it’s important to note that accounting standards usually are developed for two reasons; it’s generally done according to the country’s corporate governance requirement. The second reason is that accounting standards are typically designed to improve the country’s financial reporting framework.

Compilation of reports should be undertaken by an outside accountant to help management with financial data presentation as financial statements. The accountant professional engaged for the task should be a person that has a greater knowledge of the business operations and the industry if they are to compile the financial statements correctly. It’s for such reasons that one should consider engaging a corporate service provider for all such tasks 

 Compilation report – 110 is a crucial reporting process that should be done with professionals who are well-versed with the system. A company must choose to engage a reputable corporate service provider Singapore for such tasks to be free of any filing error or mistakes. A compilation report will provide one with the comfort that the financial information is compiled to express professional competence. Whether a company is exempt from filing requirements or audits, the company is still required by law to prepare financial statements for compilation reports according to the set financial reporting standards.

Here are some of the key reports that should be prepared as they work on the compilation report – 110. 

Engagement letter

This letter of engagement authorizes the corporate service provider hired to provide a compilation report – 110. The document should clearly define the services performed by the professional hired for the task. It should have the signatures of both the service provider and the client. Some of the information in the engagement letter include; the services to be provided, the amount and the timing of the payments, the specific due dates, and how the contracts can be terminated. 

Most of the compilation engagement letters should clearly state that the accountant will prepare and present financial statements alongside the compilation report – 110 service. 

Financial statements

Once the corporate service provider Singapore has accepted the terms of audit engagement; they are then tasked with preparing and presenting the company’s financial statements. The service provider should be ready to follow the agreed-upon reporting framework. The financial statements can either cover a short period like one month or even annual statements. 

Compilation report

Unlike the audit review report, the report includes a series of financial statements that have been analyzed and reviewed by the auditor. The service provider’s opinion concerning the fairness of the financial statements is not in any way required when working on the compilation report – 110. Knowing what the reporting entails is key if the entire process is to be executed as required.