Financial Reporting & Auditing in Singapore

The Accounting Profession of Singapore

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 a number of other accounting bodies. Generally, prior to being admitted as a full member, they must attend a week-long pre-admission course. Members are designated as certified public accountants (CPA).

The Public Accountants Board, whose council members are appointed by the Ministry of Finance, licenses and registers accountants who wish to practise. It also handles practice monitoring, disciplinary matters and regulations on professional conduct.

Accounting Records in Singapore

All companies incorporated under the Companies Act are required to maintain books of accounts that sufficiently explain the transactions and financial position of the company.

The books may be kept either at the company’s registered office or at another place the directors think fit. 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. They provide guidelines on the accounting measurements and disclosure requirements. Businesses may depart from such standards if the standards conflict with disclosure exemptions granted by law. Otherwise, ICPAS may take disciplinary action against any of its members who are in violation of the standards.

Rules on accounting measurements are generally established by SAS and INT. Disclosure requirements are governed 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 Commencing 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. Instead, Singapore Financial Reporting Standards (FRS), issued by the new accounting standards-setting body, the Council on Corporate Disclosure and Governance (CCDG), are now effective. FRS are essentially adopted from International Financial Reporting Standards (IFRS). The previous SAS were adopted from the same set of IFRS (formerly referred to as IAS) but with modification to certain transitional provisions. Consequently, there are differences between FRS and SAS.

Interpretations of Standards are authoritative guidance on the application of the relevant standards. CCDG adopted all international interpretations as Interpretations of FRS (INT FRS) with effect from financial periods 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.

Financial Reporting in Singapore

The Companies Act requires that an audited set of financial statements, made up to not more than six months before every Annual General Meeting, is to be presented to the shareholders at the meeting. 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.

Companies which meet specific provisions in the Companies Act may be exempt from having their accounts audited but nevertheless must prepare financial statements that comply with the Companies Act.

Annual Requirements for Companies in Singapore

The Companies Act requires every company, except for those exempted in accordance with the provisions in the Act, to appoint one or more auditors qualified for appointment under the Accountants Act to report on the company’s financial statements. The auditors are to ascertain whether proper books of accounts have been kept and whether the financial statements agree with the company’s records. They will then report on the trueness and 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. However, they are still required to prepare accounts (and consolidated accounts where applicable) that comply with FRS.

o Small exempt private companies An exempt private company with revenue in a financial year below S$5m is exempted from appointing auditors and from audit requirements. Revenue is defined according to the statutory accounting standards, i.e. the FRS.

o Dormant companies A dormant company is exempted from appointing auditors and from the audit requirements if it has been dormant either (a) from the time of its formation or (b) since the end of the previous financial year. A company is considered dormant during a period in which no accounting transaction occurs, and the company ceases to be dormant on the occurrence of such a transaction. For this purpose, transactions arising from the following are disregarded:

  • Taking of shares in the company by a subscriber to the memorandum
  • Appointment of company secretary
  • Appointment of auditor
  • Maintenance of a registered office
  • Keeping of registers and books
  • Fees, fines or default penalties paid to the Registrar of Companies

5 Tips to Avoiding Travel Eczema

Your eczema has been under control for a while. You have attained that sweet spot of equilibrium where your known eczema triggers are understood and avoided, whatever medications you take are working and not causing side effects, your skin is as good as it gets. Only one problem, you will be traveling soon.

Travel eczema, occurs when your body meets up with irritants and allergens you cannot control, as a result of not being on home turf. Whether it’s air, water, food, sun, soaps, detergents or weather, traveling presents some hard to solve problems trying to keep eczema in check.

Sometimes it’s the irritant or allergen you are exposed to that you would usually avoid, that causes the problem. But sometimes, just the change of routine or unfamiliar environments can cause flare-ups. Traveling can be stressful and eczema loves stress.

Here are a few tips to keep eczema at bay:

1) Do a little research into the type of foods you will encounter that are indigenous to the area you will visit. What can you eat, what can’t you eat. Eating the cuisines of other cultures is a major component of travel, and knowing what common additives are used in the preparation of popular dishes is a good way to stay symptom free.

2) Pack enough of your favorite medications, cremes, ointments and solutions. Don’t think you’ll be able to pick some of these up where ever you go. First, some products won’t be available, second , they may be very expensive and third, you don’t want to spend time running a round looking for something to ease your discomfort. If you travel to a tropical climate and you start to experience eczema symptoms like flaking and cracked skin, these minor openings are perfect places for more serious infections to gain a foothold, if you have the right medication this will not present itself as a problem. Better to have a little extra baggage than find yourself without your wonder creme.

3) Try to drink enough water or fluids, this will keep your system less stressed and better able to cope. I try to drink only bottled water that comes as close as possible to the type I drink at home. Meaning, I drink spring water with a specific mineral/chemical make up, so much sulfur, dissolved salts, etc., so when I travel I don’t drink mineral waters which may have higher mineral concentrations or added ingredients. If you drink German beer at home, then drink german beer abroad.

4) Pack and use an anti allergy travel sheet like an Allersac. Bleaches, detergents, soaps, perfumes are just a few of the triggers a travel sheet will help you to avoid when you spend 30% or more, of your time in a strange bed. An anti-allergy travel sheet, one that can be washed repeatedly, will be your best bet. Make sure, which ever travel sheet you use, it has a pillow pocket to protect against direct contact with the hotel pillow. One of the major causes of allergic eczema is dust mite dander. A travel sheet with a small pore size or one that claims protection from dust mites would be wise.

5) Environmental factors like cold, humidity, sunlight and heat can cause flare-ups especially when it’s the change that is the cause. If you travel to a warm climate from mid winter conditions at home, be prepared. Pack clothing that will mitigate reactions, sunblock, hat, gloves etc. The weather might cause your sinus problem to flare, which in turn stresses your body and causes your eczema to activate, or the humidity allows high mold or pollen counts where you travel. There are websites like http://www.aaaai.org/ which publish pollen and mold counts, and many sites for weather forecasts.

Having eczema and learning how it activates and affects you takes years, some people get a handle on it, others don’t, but even if you don’t know what the causes are, some simple precautions, a little research and remaining calm can help you to get the most out of traveling, even with eczema.

How Many Times Have You Had A Jewelry Dilemma

Which necklace style is appropriate with this outfit? Should I use a long necklace or a short necklace will be better suited? The following list describes the most common necklace lengths and how to use them.

Collar – 12-13 inches in length

Collars are usually made up of two or more strands and lie snugly on the middle of the neck. Collars are an ideal complement to elegant V-neck, boat neck or off the shoulder fashions.

Choker – 14-16 inches in length

A choker is despite the most classic and versatile of all the single strand lengths and is designed to lie around the base of the neck. It is appropriate with everything from casual to formal eveningwear, and completes any neckline imaginable. Is the perfect length to add subtle elegance to your workday paired with a button-down shirt, yet just as stylish with a cocktail dress. This is a good necklace length for a child. This way the necklace has "growth room".

Princess – 17-19 inches in length

The princess length necklace is best suited for crew and high necklines. It also fulfills low plunging necklines. This is an excellent choice if you are not certain which strand length is most appropriate and is the perfect necklace length for a pendant.

Matinee – 20-24 inches in length

The matinee necklace is the right choice for casual or business dressing. It looks best with high necklines and adds sophistication to a professional look. The matinee length is also very well suited for fancier wear such as long sundresses and formal gowns. The extra length of the matinee necklace gives the wearer a sense of luxury and confidence. It certainly may dress up an outfit.

Opera – 28-34 inches in length

The opera necklace offers many attractive options. Can be worn as a single strand, it is refined and perfect for high or crew necklines. Can be doubled upon itself and serves as a versatile two-strand choker. It can be knotted at the neckline or above the bust to create a stylish vintage look. Traditionally, opera length necklaces are worn with eveningwear, although can be used to accessorize more casual attires.

Rope or Lariat – Over 45 inches in length

The rope necklace is very elegant and dangerously sexy. It can be made with several clasps placed in strategic locations, enabling it to be broken down into different necklace and bracelet combinations, or doubled and even tripled to create a stunning multi-strand choker. This versatile length may also be tied in a knot for a charming modern look. Ropes can also be knotted and slung over the shoulder to accentuate the beauty of a backless dress. Lariats are at last 48 inches long, with the ends left unattached for knotting or wrapping around the neck.

Now that you know all about necklaces lengths make sure you include all of them in your wardrobe so you do not have to worry about not having the right one when you need it.

How To Save Money On Your Heating Bills

How much do you think you spend on your heating bills at present? According to the Energy Saving Trust, on average half the money spent on utility bills in the UK goes towards heating and hot water.

Is it therefore any surprise that come the first sign of winter, many households have the same debate rumbling on, whether to put the heating on. But, did you know that by taking precautionary steps, you can reduce your energy bills at the same time as keeping your home warm. Five top tips we recommend are…

Make an Extra Layer Your First Choice:

Many of us opt to switch the heating on the moment that we feel a chill in the home. Automatically reaching for the heating will cause your energy bills to rocket. Instead, your first option should be to make an extra layer of clothing your first choice to keeping warm.

Have Your Boiler Serviced Annually:

As with all appliances within the home, general usage can take its toll on your boiler. This wear and tear will leave your boiler performing below its optimum level, hindering its efficiency and costing you more in energy bills.

To reduce the risk of wear and tear on your boiler, you should have it serviced annually. Ideally the service should take place before winter takes hold.

Along with getting your boiler serviced, it’s also recommended to install a CO2 alarm next to the boiler.

Bleed Your Radiators:

If you’ve put your heating on and found that the top of your radiator is cooler than the bottom, then you’ll need to bleed them. This isn’t a difficult task, nor is it time consuming. But it is one which should be carried out at the earliest opportunity to save you money on your energy bills.

To bleed your radiators, all you’ll need is a radiator key and a towel.

With your heating off, use the radiator key to turn the valve at the top of the radiator to release any trapped air. Whilst doing this, hold the towel just below the valve to catch any water which may trickle out. As soon as water appears, close the valve.

Set TRVs Low:

Many modern radiators come with TRVs, which enable you to set the temperature of the individual radiator. Whilst many of us will turn the TRV to six, this will cost you money without heating the room any quicker.

To help save money on your energy bills, set the TRV to its lowest setting, before gradually turning them up until you find a comfortable room temperature. It’s also recommend to keep the TRVs on a low setting in rooms which aren’t frequented often. This will help keep the room warm without wasting heat.

Utilise Natural Heat:

OK, so the sun isn’t as strong during the winter months, it can still provide the required warmth to naturally heat your home. To make the most out of the natural warmth from the sun, leave your curtains open during the day, and closed during the evening.

Along with closing your curtains during the evening, it’s also a good idea to keep internal doors closed where possible.

These five simple steps will help you to save money on your heating and energy bills, at the same time as keeping the house warm. But, for those who are looking for an additional heat source there are a number of portable radiators available which will provide the heating requirements you need.