XBRL Filing with ACRA for Dormant companies
All companies, whether private, limited, or dormant, must comply with the ACRA requirements. This means they have to file financial statements in accordance with their filing requirements by ACRA. Companies may apply for an exemption to filing financial statements in the XBRL format, but they’ll not be exempt from filing financial statements. For instance, if your business removes the requirement for comparative periods in your financial statement, after giving valid reasons, your company can be exempt from filing financial statements in the XBRL format. But, you’ll still be required to submit the company financials in the requisite (PDF) format.
Requirements for Filing Accounts with ACRA
Every year at AGMs (Annual General Meetings), the directors of the company are required to disclose all business-related information to the shareholders. Interlinked documents must also be furnished to the shareholders. Documents such as:-
● Report of Directors & Statement by Directors
● Independent Auditors’ Report (if required)
● Balance Sheet
● Profit and Loss Statement
● Statement of Changes in Equity
● Cash flow Statement
● Corresponding Notes to Financial Statements
These statements are prepared based on reports from independent auditors or directors.
Is Your Company Eligible?
Annual filings are reports that are given particular importance by ACRA for both active as well as dormant Singapore based companies. So, yes, every company, be it private, limited, unlimited, or dormant are required to file financial statements with ACRA. Failing to meet with ongoing ACRA compliance conditions and requirements can result in severe consequences.
If Your Company is Dormant, then What?
EPCs that have not carried out any accounting transactions or business activities for the concerned financial year are offered certain types of relaxation:
● The copies of financial statements or consolidated financial statements and balances of the company don’t need to be audited.
● Section 203 of the Singapore Companies Act clearly states that a dormant company can omit any reference to the auditor’s report.
● Dormant companies don’t need to attach accounts and can complete an online declaration of solvency instead.
In any case, a dormant company is required to file accounts with ACRA.
Contact the Experts
Even though dormant companies are exempt from audit requirements, they are still required to file financial statements with ACRA. If you still have any further questions regarding dormant company filing requirements with ACRA, you can seek expert guidance from DataTracks.
DataTracks has vast experience of 15+ years in regulatory reporting solutions across the globe. So reach out to one of our experts at firstname.lastname@example.org and let us help you comply with the ACRA’S XBRL requirements.