Consolidated Financial Statements
Consolidated financial statements in Singapore are prepared in accordance with Singapore Financial Reporting Standards (SFRS), which are based on International Financial Reporting Standards (IFRS). IFRS 10, Consolidated Financial Statements, provides the accounting framework for the preparation and presentation of consolidated financial statements.
Consolidated financial statements are financial statements that present the financial position, financial performance and cash flows of a parent and its subsidiaries as those of a single economic entity. A subsidiary is an entity that is controlled by another entity (the parent). Control is defined as the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
Entities that are required to prepare consolidated financial statements in Singapore:
Public companies listed on the Singapore Exchange (SGX)
Private companies that are controlled by a public company listed on the SGX
Private companies that have subsidiaries
Private companies that are required to prepare consolidated financial statements under other laws or regulations
Entities that are exempt from preparing consolidated financial statements in Singapore:
Private companies that are small and medium-sized enterprises (SMEs) and that meet all of the following criteria:
They have an annual turnover of not more than S$100 million.
They have total assets of not more than S$100 million.
They have not more than 100 employees.
Private companies that are wholly-owned subsidiaries of another private company and that meet all of the following criteria:
They have the same financial year-end as their parent company.
They have the same accounting policies as their parent company.
Their parent company prepares consolidated financial statements that include the subsidiary.
How to prepare consolidated financial statements in Singapore:
To prepare consolidated financial statements, the following steps are typically followed:
Identify the entities to be consolidated. This includes identifying all subsidiaries of the parent company.
Eliminate intragroup transactions and balances. This is done to avoid double counting of assets, liabilities, equity, income and expenses within the group.
Adjust the carrying amounts of assets and liabilities to reflect their fair values. This is done to ensure that the consolidated financial statements present a fair view of the group's financial position.
Prepare the consolidated balance sheet, income statement, statement of changes in equity and statement of cash flows.
Consolidated financial statements are important because they provide users with a more complete and accurate view of the financial position, financial performance and cash flows of a group of companies. Consolidated financial statements are also required for companies that are listed on a stock exchange, as they provide investors with the information they need to make informed investment decisions.
Examples of consolidated financial statements in Singapore:
Singapore Airlines Limited (SIA) and its subsidiaries
DBS Group Holdings Limited and its subsidiaries
Oversea-Chinese Banking Corporation Limited (OCBC) and its subsidiaries
United Overseas Bank Limited (UOB) and its subsidiaries
These companies are all public companies listed on the SGX and are required to prepare consolidated financial statements.
How Bestar can Help
Bestar is a leading provider of accounting software and services in Singapore. Bestar can help companies with their consolidated financial statements in a number of ways, including:
Providing training and support on how to prepare consolidated financial statements. Bestar offers a variety of training and support resources to help companies learn how to prepare consolidated financial statements in accordance with SFRS.
Providing outsourced accounting services to prepare consolidated financial statements on behalf of companies. Bestar offers a range of outsourced accounting services, including the preparation of consolidated financial statements. This can be a valuable option for companies that do not have the in-house expertise or resources to prepare consolidated financial statements themselves.
Here are some specific examples of how Bestar can help with consolidated financial statements in Singapore:
Help to identify the entities to be consolidated. Bestar can help companies to identify all of their subsidiaries, including indirect subsidiaries.
Help to eliminate intragroup transactions and balances. Bestar can help to eliminate intragroup transactions and balances, such as sales and purchases between group companies.
Help to adjust the carrying amounts of assets and liabilities to reflect their fair values. Bestar can help to adjust the carrying amounts of assets and liabilities to reflect their fair values, using a variety of valuation methods.
Help to prepare the consolidated balance sheet, income statement, statement of changes in equity and statement of cash flows. Bestar can help to generate the consolidated financial statements, in accordance with SFRS.
Provide training and support on how to prepare consolidated financial statements. Bestar offers a variety of training and support resources, such as online tutorials, webinars, and helpdesk support.
Provide outsourced accounting services to prepare consolidated financial statements on behalf of companies. Bestar has a team of experienced accountants who can prepare consolidated financial statements on behalf of companies, in accordance with SFRS.
Overall, Bestar can provide a comprehensive solution for companies in Singapore that need help with their consolidated financial statements. Bestar's training, support, and outsourced accounting services can help companies to save time and money, and to ensure that their consolidated financial statements are prepared accurately and in accordance with SFRS.
Please contact us if you have any other questions.
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