Financial Statements Singapore
Financial statements (or otherwise known as annual report) are used by investors, financial analysts, the banks and various other users for different purpose. Basic understanding of different elements of the financial statements and the financial ratios are essential as they are records of the financial status of the business.
Financial statements consist of a few key elements:
- Balance Sheet what the company owns and owes.
- Income Statement how profitable the company is.
- Cash flow Statement how the company is paying for their operations and how much cash it is generating
- Statement of Changes in Equity this is also known as Statement of Retained Earnings. This statement uses both information from Income Statement and Balance Sheet. In a sole proprietorship, this statement show the changes of equity of the business, which is derived from income from the business and investment by the owner into the business, after deducting withdrawals by the owner.
- A list of accounting policies
- Notes to the Financial Statements
Information in the financial statements is analyzed to determine the profitability and investment potential of a business. The different components of the financial statements when combined may tell a different story then when viewed in isolation. For example, a company showing profits in the Income Statement may be showing net cash outflow from their operating activities in the Cash flow Statement. If the Accounts Receivable in the Balance Sheet of the company is showing a growing balance, it may mean that the company has problem collecting payment from its customers and may face cash flow problems. If users of the financial statement then compute a financial ratio of accounts receivable over revenue and the ratio is increasing, this could support the earlier deduction.
Financial statements filed with Accounting and Corporate Regulatory Authority (ACRA) Singapore can be in either PDF or XBRL format, depending on certain type of companies.
In Singapore, financial statements must be prepared according to the Singapore Financial Reporting Standards (FRS).
The panel of service providers selected by SingaporeAccounting.com is well versed in Singapore FRS. You can rest assured that the financial statements prepared will comply with Singapore FRS requirements. Please refer to Accounting Services for further information on the services offered.