Exemption rules for filing full XBRL documents with ACRA
All private limited companies in Singapore are required to comply with the regulations set forth by the Accounting and Corporate Regulatory Authority (ACRA). Annual filings are reports that are given particular importance by ACRA for both active and dormant Singapore companies and failing to regularly meet ongoing ACRA compliance conditions and requirements in a timely fashion can result in serious consequences.
Requirements for filing accounts
Every year at annual general meetings (AGM), the directors of any company are expected to disclose all business information to shareholders. Interlinked documents such as annual financial statements of a company are generally compiled altogether on the timeline established by the Financial Reporting Standards of Singapore. These statements are prepared based on data in the reports from company directors and/or independent auditors, with balance sheets and profit-loss statements being part of them.
Filing a director’s report or audited accounts
A company that does not have a recorded sales turnover of over $5 million is not required to prepare a complete audited report. The same is true if the company does not have more than 20 shareholders. They are only obligated to prepare an unaudited report, also known as a director’s report. But companies with corporate shareholding or turnover exceeding $5 million are expected to prepare the mandated audit reports.
Filing annual returns
All companies that are locally incorporated need to file their annual returns under the Companies Act going forward. They are supposed to do this within the duration of a month after holding their AGM, or at the time when the company passes written resolutions in the place of holding an AGM. For filing annual returns, companies need to include information such as their registration number and address, and include the company type and the plus principle activities during the financial year.
Financial statements in XBRL
It is also vital that companies generate their complete financial statements in the XBRL (eXtensible Business Reporting Language) global standard when filing their annual returns. This step is necessary for insolvent companies or for companies that had a corporate shareholder for the financial year.
If a company cannot meet the deadline because of the lack of infrastructure or due to unavoidable delays, and is unable to prepare the statements, file their annual returns, or even hold their AGM, then an extension period of either one or two months can be requisitioned. This gives the company some more breathing room to stay in compliance with all ACRA regulations, and have a transparent and smooth operation of business.
This was the complete set of information contained in the exemption rules regarding filing XBRL documents with ACRA. We hope that you found the information helpful. If you have any questions, you can find us on https://www.datatracks.com.sg/
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