In Singapore, companies are required to hold their annual general meetings within 6 months after the financial year-end (for SGX-listed companies, this period is 4 months) as per the Companies Act (Sec. 175). Consequently, many companies aim to prepare their financial statements within approximately 5 months, considering the time needed for issuing notices and convening the meeting.
Moreover, Singaporean companies are generally required to prepare consolidated financial statements (Sec. 201: Companies Act). This means that the financial reporting of their Japanese subsidiaries will also be reflected in the consolidated financial statements.
Additionally, even non-listed companies are obligated to undergo audits (Sec. 201(8): Companies Act). However, companies classified as “Small Companies” under the Companies Act are exempt from the audit requirement. Specifically, companies meeting at least two of the following criteria are categorized as Small Companies:
1) Turnover of SGD 10 million or less for the past two financial years.
2) Total assets of SGD 10 million or less for the past two financial years.
3) Number of employees being 50 or fewer at the end of the current financial year.
Based on the above provisions, Singaporean companies with turnover and asset amounts of approximately 1 billion yen may still be subject to audit requirements, even if they are non-listed. Consequently, their Japanese subsidiaries might also be required to undergo audits.
At our firm, we conduct audits for such Japanese subsidiaries of Singaporean companies while collaborating with the auditors of the parent company. We also offer consultations and estimates, so please feel free to contact us.
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Our Advantageous Points
・A certified public accountant with experience in auditing a Japanese subsidiary of a major audit firm handles the engagement.
・They offer flexible advice on accounting standards such as IFRS and US-GAAP.
・They also cater to requests for reporting and explanations in English.
・The level of service provided is comparable to that offered by major audit firms.
・Due to a small and efficient team, the workload is minimized, resulting in reasonable audit fees.