Compilation of Financial Statements in Singapore: Complete Guide (2026)

Every Singapore company is legally required to prepare financial statements but not every company needs a costly audit. If your business qualifies as a small company under the Companies Act, a compilation of financial statements is all you need to stay compliant with ACRA and IRAS.

This guide covers everything Singapore SME owners need to know: what a compilation report is, who needs one, what it includes, how much it costs, and how to get it done quickly and correctly.

What Is a Compilation of Financial Statements?

A compilation of financial statements (also called a compilation report or unaudited financial statements) is a set of financial records prepared by a professional accountant based on information provided by your company's management.

Unlike an audit, a compilation does not involve verification or independent checking of your figures. The accountant compiles and presents the data in the correct format in accordance with the Singapore Financial Reporting Standards (SFRS) but does not express any assurance on the accuracy of the numbers.

Think of it this way: an auditor examines your accounts like a detective. A compiler organises and presents them like a professional editor.

A compilation report is legally recognised for submission to:

• ACRA (Accounting and Corporate Regulatory Authority) for annual return filing

• IRAS (Inland Revenue Authority of Singapore) for income tax filing

Who Needs a Compilation of Financial Statements in Singapore?

Under the Singapore Companies Act (Cap. 50), all registered companies must prepare financial statements annually. However, whether you need an audited or unaudited (compiled) report depends on your company's size and structure.

Small Company Exemption

A Singapore private limited company is exempt from audit if it qualifies as a small company meaning it meets at least 2 of the following 3 criteria for the past two consecutive financial years:

If your company meets this threshold, you are not required to have your accounts audited but you are still required to prepare unaudited financial statements (a compilation report).

Exempt Private Companies (EPCs)

An Exempt Private Company one with no corporate shareholders and 20 or fewer individual shareholders with annual turnover below S$5 million may also file unaudited reports.

Dormant Companies

Dormant exempt private companies are also exempt from audit but must still comply with basic filing requirements.

Important: Even if you are audit-exempt, you are still legally required to prepare financial statements in accordance with SFRS and submit them to ACRA and IRAS. Failure to comply can result in fines of up to S$50,000 or up to S$100,000 and imprisonment if there is intent to defraud.

What Is Included in a Compilation Report?

A complete compilation of financial statements in Singapore must include the following:

1. Statement of Financial Position (Balance Sheet)
   A snapshot of your company's assets, liabilities, and equity at the end of the financial year.
   
   

2. Statement of Profit or Loss and Comprehensive Income
   Your company's revenues, expenses, and net profit or loss for the year.
   
   

3. Statement of Changes in Equity
   Shows movements in the company's equity during the financial year.
   
   

4. Statement of Cash Flows
   Tracks the movement of cash in and out of the business.
   
   

5. Notes to the Financial Statements
   Explanatory notes providing context and detail behind the numbers.
   
   

6. Directors' Report
   A statement from the directors summarising the company's affairs and results.
   
   

7. Statement by Directors
   A signed declaration confirming that the financial statements present a true and fair view of the company's position.
   
   

The report must be prepared in compliance with Singapore Financial Reporting Standards (SFRS) or SFRS for Small Entities, depending on your company's eligibility.

Compilation vs Audit vs Review: What's the Difference?

Many Singapore business owners are unsure which type of financial statement engagement they need. Here's a clear breakdown:

Bottom line: If your company qualifies as a small company or exempt private company, a compilation is the most cost-effective and legally sufficient option.

How Much Does Compilation of Financial Statements Cost in Singapore?

Pricing varies depending on the complexity of your accounts, your industry, and the accounting firm you engage in. Here's a general guide:

Factors that affect the price include:

• Number of transactions during the year

• Whether your bookkeeping records are up to date

• The number of bank accounts and entities involved

• Whether XBRL filing is required for ACRA submission

Tip: Keeping clean and organised bookkeeping records throughout the year significantly reduces the time (and cost) of preparing your compilation report.

How to Get Your Financial Statements Compiled in Singapore

Here's the typical process when you engage an accounting firm for a compilation:

Step 1 — Provide your financial records
Share your bookkeeping records, bank statements, receipts, invoices, and any existing accounts for the financial year.

Step 2 — Accountant prepares the statements
A qualified accountant reviews and organises your data, prepares all required financial statements in SFRS-compliant format, and drafts the Directors' Report and Statement by Directors.

Step 3 — Review and sign off
You review the draft statements. Once satisfied, the directors sign the Statement by Directors and Directors' Report.

Step 4 — Filing with ACRA and IRAS
The final compilation report is submitted to ACRA as part of your annual return, and used for IRAS income tax filing (Form C-S or Form C).

The entire process typically takes 1 to 2 weeks, provided your records are in order.

Why Must a CPA Prepare Your Compilation Report?

In Singapore, compilation reports should be prepared by a Certified Public Accountant (CPA) registered with the Institute of Singapore Chartered Accountants (ISCA). Here's why this matters:

• CPAs are trained in SFRS compliance and the Companies Act requirements

• IRAS and ACRA expect reports to meet professional standards

• Errors or non-compliance can trigger queries, penalties, or rejection of your filing

• A professionally prepared report gives directors confidence they are meeting their legal obligations

Attempting to prepare your own compilation without professional guidance significantly increases the risk of filing errors and regulatory penalties.

Frequently Asked Questions

Q1: Is a compilation of financial statements the same as an unaudited financial statement?
Yes. In Singapore, the terms are used interchangeably. A compilation report and unaudited financial statements refer to the same document financial statements prepared by an accountant without an independent audit.

Q2: Do I still need to file financial statements if my company had no activity this year?
Yes. Even dormant companies are required to prepare and file financial statements with ACRA. However, the process is simpler and less costly for dormant companies.

Q3: Can I use a compiled financial statement for bank loans or investor meetings?
You can, but banks and investors generally prefer audited financial statements as they carry a higher level of assurance. For regulatory filing purposes, a compilation is sufficient for qualifying companies.

Q4: What happens if I don't file my financial statements with ACRA?
Failure to file on time is a breach of the Companies Act and can result in fines for the company and its directors. Repeated non-compliance may also lead to the company being struck off the register.

Q5: How often do I need to compile financial statements in Singapore?
Annually. Your financial statements must be prepared and filed for each financial year, typically within 5 months of your financial year end (for private companies).

Q6: Can a compilation report be used for GST registration?
Yes. IRAS accepts compiled financial statements as supporting documents for GST registration and other tax-related applications.

Q7: What is XBRL and does my compilation need it?
XBRL (eXtensible Business Reporting Language) is a digital format required by ACRA for certain companies when filing financial statements. Most small companies file in simplified XBRL or are exempt your accountant will advise based on your company's profile.

Q8: How long does it take to get a compilation report done?
Typically 1 to 2 weeks once all records are provided to the accountant. Complex accounts or incomplete records can extend this timeline.

Summary: Key Takeaways

• A compilation of financial statements is a legally required, cost-effective alternative to an audit for qualifying Singapore companies

• Your company qualifies if it meets at least 2 of 3 small company criteria: revenue ≤ S$10M, assets ≤ S$10M, employees ≤ 50

• A full compilation includes balance sheet, P&L, cash flow statement, equity statement, notes, and directors' documents

• Typical cost ranges from S$300 to S$1,200 depending on complexity

• The report is accepted by both ACRA and IRAS for all standard compliance filings

• Always engage a CPA registered with ISCA to ensure compliance and avoid penalties

Need Your Financial Statements Compiled?

Staying compliant doesn't have to be complicated. Whether you're filing for the first time or looking for a more reliable accounting partner, Contact Tianlong Today. Our team of qualified CPAs can prepare your compilation report quickly and accurately fully compliant with ACRA and IRAS requirements.

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