Compilation of financial statements and accounting standards

Compilation of financial statements and accounting standards 编制财务报表和会计准则

As audit requirements are gradually being relaxed in Singapore for companies, more bookkeepers and accountants have been advising their clients that do not require to perform an audit to do a compilation of financial statements instead. So, what exactly is a compilation and is it necessary? 随着新加坡对企业的审计要求逐渐放宽,越来越多的簿记员和会计师开始建议那些不需要进行审计的客户转而编制财务报表。那么,编制到底是什么,有必要吗?

Compilation of financial statements 编制财务报表

To put it simply, a compilation of financial statements is preparation of a set of financial statements without doing the same level of verification as doing a full audit. Under the Companies Act, it is necessary for the directors of the company to prepare a set of financial statements annually. This requirement is stated under section 201 of the Companies Act: 简单地说,编制财务报表就是编制一套财务报表,而不进行与全面审计相同的核查工作。根据公司法,公司董事每年必须准备一套财务报表。这一要求是根据《公司法》第201条规定的:

201.— (1) The directors of every company must lay before the company at its annual general meeting the financial statements for the financial year in respect of which the annual general meeting is held.
(2) Subject to subsections (12) to (15), the financial statements referred to in subsection (1) shall comply with the requirements of the Accounting Standards and give a true and fair view of the financial position and performance of the company. 除第(12)至(15)款另有规定外,第(1)款所提述的财务报表应符合会计准则的规定,并真实、公正地反映公司的财务状况和业绩。

When we talk about bookkeeping, the end product will be a set of management accounts comprising of balance sheet and income statement with schedules showing movement or breakdown of the various ledger accounts in financial figures. The main difference between the management accounts and the financial statements is the disclosures that is mandated by the accounting standards. The accounting standards that are referred to is what is commonly known as Financial Reporting Standards Singapore (FRSs). The Accounting Standards Council (ASC) is the main body that establishes the set of FRSs that companies have to prepare their financial statements according to. Most countries follow closely the international financial reporting standards and Singapore is no exception. 当我们谈到簿记时,最终的结果将是一套管理账目,包括资产负债表和损益表,并附有明细表,以财务数字显示各种分类账的变动或分类。管理账目和财务报表之间的主要区别是会计准则规定的披露。这里所指的会计准则就是通常所说的新加坡财务报告准则(FRSs)。会计准则委员会(ASC)是制定财务报告准则的主要机构,公司必须根据该准则编制财务报告。大多数国家都严格遵循国际财务报告准则,新加坡也不例外。

There are certain disclosures that are required by the standards that cannot be directly extracted from the management accounts. For example, the company has to disclose the committed operating leases that it has entered into and is still not completed as at the financial year end. The company also has to disclosure what transactions is with related parties such as loans to directors. These are normally information that is useful to shareholders or investors but which cannot be found in the balance sheet or profit and loss. 有些信息是标准所要求的,不能直接从管理账户中提取。例如,该公司必须披露已签订的、但截至本财年末仍未完成的经营租赁合同。该公司还必须披露与关联方的交易,比如向董事发放的贷款。这些信息通常对股东或投资者有用,但不能在资产负债表或损益表中找到。

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