Compilation of Financial Statements refers to the report that was prepared or compiled by an outsourced accountant.
Compilation of Financial Statements
Compilation of Financial Statements – A compilation is often the result of an accounting service known as write-up work. With compilations, or compiled financial statements, the outside accountant converts the data provided by the client into financial statements without providing any assurances or auditing services.
Compilations allow companies without an accountant to have financial statements prepared at a lower cost than reviewed or audited financial statements.
Companies that are exempted from the audit are still required to prepare unaudited financial statements (or known as compilation report) as comply with the Singapore FRSs.
“Under sections 201(2) and 201(5) of the Companies Act (the “Act”), directors are responsible to present and lay before the company, at its annual general meeting, financial statements that:
- comply with Accounting Standards1 issued by the Accounting Standards Council; and
- give a true and fair view of the financial position and performance of the company.”
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