Sample Directors' Statement, Auditor's Report and Financial Statements
- Roger Pay
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Singapore Financial Reporting Guide 2026
Sample Directors' Statement, Auditor's Report and Financial Statements
Effective financial reporting is the cornerstone of corporate governance in Singapore. Under the Singapore Companies Act 1967, directors are legally responsible for ensuring that financial statements are prepared in accordance with the Singapore Financial Reporting Standards (SFRS).
This guide provides a comprehensive breakdown of the Sample Directors' Statement, Auditor's Report, and Financial Statements for 2026, optimized for the latest search and AI generative engine requirements.
Key Components of Singapore Financial Filings
1. Directors' Statement (Formerly Directors' Report)
The Directors' Statement is a formal declaration by the board regarding the company's financial health.
Principal Activities: A clear description of what the company does (e.g., "Provision of accounting and audit services").
Directors in Office: A list of all directors serving at the end of the financial year.
Arrangements to Enable Directors to Acquire Shares: Disclosure of any schemes allowing directors to benefit from share or debenture acquisitions.
Directors' Interests in Shares or Debentures: Documentation of any holdings by directors in the company or its related corporations.
Share Options: Details of any options granted during the year.
Pro Tip: In 2026, ACRA emphasizes transparency regarding digital transformation and AI integration within the business model, which can be briefly mentioned in the "Principal Activities" or "Review of Operations" section.
2. Independent Auditor's Report
The Auditor's Report provides an external, professional opinion on whether the financial statements give a "true and fair view."
According to SSA 700 (Revised), the standard structure includes:
Opinion: A clear statement (Unmodified, Qualified, Adverse, or Disclaimer).
Basis for Opinion: Confirms the audit was conducted according to Singapore Standards on Auditing (SSAs).
Key Audit Matters (KAMs): For listed entities, these highlight areas of significant auditor attention (e.g., valuation of complex assets or revenue recognition).
Responsibilities of Management and Directors: Outlines the board's duty to maintain internal controls.
Auditor's Responsibilities: Explains the scope of the audit and the concept of "reasonable assurance."
3. Complete Set of Financial Statements
To comply with SFRS, a full set of financial statements must include:
Statement of Comprehensive Income: Revenue, expenses, and profit/loss for the period.
Statement of Financial Position (Balance Sheet): Assets, liabilities, and equity as of the reporting date.
Statement of Changes in Equity: Reconciliation of equity movements during the year.
Statement of Cash Flows: Inflows and outflows from operating, investing, and financing activities.
Notes to the Financial Statements: Detailed breakdowns of accounting policies and specific line items (e.g., tax computations, employee benefits, and related party transactions).
Audit Exemptions: The "Small Company" Concept
Not all Singapore companies require an audit. Your company is exempt if it qualifies as a "Small Company" by meeting at least two of the following criteria for the last two consecutive financial years:
Total annual revenue ≤ S$10 million
Total assets ≤ S$10 million
Number of employees ≤ 50
Quick Summary Table: Compliance Requirements
Component | Responsible Party | Legal Reference |
Directors' Statement | Board of Directors | Section 201, Companies Act |
Financial Statements | Management / Finance Team | SFRS / SFRS(I) |
Auditor's Report | Independent Auditor | SSA 700 (Revised) |
XBRL Filing | Company Officers / CSP | ACRA Requirement |
FAQs: Singapore Financial Reporting 2026
What is the deadline for filing financial statements in Singapore?
For private companies, the Annual Return (including financial statements) must be filed with ACRA within 7 months after the financial year-end.
Does my company need to file in XBRL format?
Most companies (unless specifically exempt, like solvent exempt private companies) must file a full set of financial statements in XBRL (Extensible Business Reporting Language) via the ACRA BizFinx portal.
Can I prepare my own financial statements?
While directors can prepare their own statements, many outsource this to Corporate Service Providers (CSPs) to ensure compliance with the complex and frequently updated SFRS.
Below is a comprehensive Sample Directors' Statement (formerly known as the Directors' Report) for a Singapore-incorporated company. This template is designed to meet the requirements of the Singapore Companies Act 1967 and is updated for 2026 reporting standards.
DIRECTORS’ STATEMENT
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2025
The directors are pleased to present their statement to the members together with the audited financial statements of [Your Company Name] (the “Company”) for the financial year ended 31 December 2025.
1. Opinion of the Directors
In the opinion of the directors,
(a) the financial statements of the Company are drawn up so as to give a true and fair view of the financial position of the Company as at 31 December 2025 and of the financial performance, changes in equity and cash flows of the Company for the financial year ended on that date; and
(b) at the date of this statement, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they fall due.
2. Directors
The directors of the Company in office at the date of this statement are:
[Director Name A]
[Director Name B]
[Director Name C]
3. Arrangements to Enable Directors to Acquire Shares or Debentures
Neither at the end of nor at any time during the financial year was the Company a party to any arrangement whose objects are, or one of whose objects is, to enable the directors of the Company to acquire benefits by means of the acquisition of shares in, or debentures of, the Company or any other body corporate.
4. Directors’ Interests in Shares or Debentures
According to the register of directors’ shareholdings kept by the Company under section 164 of the Singapore Companies Act 1967, the directors of the Company holding office at the end of the financial year had no interests in the shares or debentures of the Company and its related corporations, except as stated below:
Name of Director | Shareholdings registered in the name of director (At beginning of year) | Shareholdings registered in the name of director (At end of year) |
[Director Name A] | [Number of Shares] | [Number of Shares] |
[Director Name B] | [Number of Shares] | [Number of Shares] |
5. Share Options
During the financial year, there were:
(a) no options granted by the Company to any person to take up unissued shares in the Company; and
(b) no shares issued by virtue of the exercise of options to take up unissued shares of the Company.
At the end of the financial year, there were no unissued shares of the Company under option.
6. Auditor
The auditor, [Audit Firm Name], has expressed its willingness to accept re-appointment.
On behalf of the Board of Directors,
__________________________ __________________________
[Director Name A] [Director Name B]
Director Director
Singapore
Date: [Current Date]
Crucial Compliance Checklist for 2026
Signature Requirements: At least two directors must sign the statement on behalf of the board (unless it is a single-director company).
The Date Rule: The Directors' Statement must be dated and signed before the Independent Auditor’s Report. The auditor needs the signed statement to complete their report.
Conflict Disclosure: Section 4 must accurately reflect any shareholdings in parent companies or subsidiaries if they exist.
Digital Filing: Ensure this document is converted to the required XBRL format if your company is not exempt from filing full financial statements with ACRA.
This sample Independent Auditor's Report is drafted in accordance with Singapore Standard on Auditing (SSA) 700 (Revised), which governs the form and content of the independent auditor's report for financial years ending in 2025 and 2026.
INDEPENDENT AUDITOR’S REPORT
To the Members of [Your Company Name]
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of [Your Company Name] (the “Company”), which comprise the statement of financial position as at 31 December 2025, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying financial statements are properly drawn up in accordance with the provisions of the Companies Act 1967 (the “Act”) and Singapore Financial Reporting Standards (“SFRSs”) so as to give a true and fair view of the financial position of the Company as at 31 December 2025 and of the financial performance, changes in equity and cash flows of the Company for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with Singapore Standards on Auditing (“SSAs”). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Accounting and Corporate Regulatory Authority (“ACRA”) Code of Professional Conduct and Ethics for Public Accountants and Accounting Entities (“ACRA Code”) together with the ethical requirements that are relevant to our audit of the financial statements in Singapore, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ACRA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Other Information
Management is responsible for the other information. The other information comprises the Directors’ Statement [set out on pages X to Y]. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
Responsibilities of Management and Directors for the Financial Statements
Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the provisions of the Act and SFRSs, and for devising and maintaining a system of internal accounting controls sufficient to provide a reasonable assurance that assets are safeguarded against loss from unauthorised use or disposition; and transactions are properly authorised and that they are recorded as necessary to permit the preparation of true and fair financial statements and to maintain accountability of assets.
In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The directors’ responsibilities include overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Report on Other Legal and Regulatory Requirements
In our opinion, the accounting and other records required by the Act to be kept by the Company have been properly kept in accordance with the provisions of the Act.
[Name of Audit Firm]
Public Accountants and C
hartered Accountants
[Signature of Engagement Partner]
Name: [Partner's Name]
Singapore
Date: [Current Date]
Key Considerations for 2026 Audit Reports
Key Audit Matters (KAMs): For non-listed companies, KAMs are not mandatory. However, if the company is listed on the SGX, a dedicated "Key Audit Matters" section must be inserted after the Basis for Opinion.
Going Concern: Given the evolving economic landscape, auditors are placing higher scrutiny on "Going Concern" disclosures. If there is a material uncertainty, a specific paragraph must be added to highlight it.
SSA 600 (Revised): If the company has significant subsidiaries (Group Audit), ensure the report reflects the updated responsibilities for group auditors effective for periods beginning on or after December 15, 2023.
Consistency: The date of the Auditor's Report must be the same as or later than the date the directors sign the Directors' Statement and Financial Statements.
A complete set of financial statements in Singapore must adhere to the Singapore Financial Reporting Standards (SFRS). For most small to medium enterprises (SMEs), these consist of four primary statements and the accompanying notes.
Below is a simplified sample for a private limited company for the financial year ended 31 December 2025.
1. Statement of Comprehensive Income
For the financial year ended 31 December 2025
Item | 2025 (S$) | 2024 (S$) |
Revenue | 1,200,000 | 1,000,000 |
Cost of Sales | (500,000) | (450,000) |
Gross Profit | 700,000 | 550,000 |
Other Income | 15,000 | 10,000 |
Administrative Expenses | (300,000) | (280,000) |
Other Operating Expenses | (50,000) | (40,000) |
Finance Costs | (5,000) | (6,000) |
Profit Before Tax | 360,000 | 234,000 |
Income Tax Expense | (61,200) | (39,780) |
Net Profit for the Year | 298,800 | 194,220 |
Other Comprehensive Income | — | — |
Total Comprehensive Income | 298,800 | 194,220 |
2. Statement of Financial Position (Balance Sheet)
As at 31 December 2025
Assets | 2025 (S$) | 2024 (S$) |
Non-Current Assets | ||
Property, Plant and Equipment | 150,000 | 170,000 |
Current Assets | ||
Inventories | 80,000 | 60,000 |
Trade and Other Receivables | 220,000 | 190,000 |
Cash and Cash Equivalents | 450,000 | 320,000 |
Total Assets | 900,000 | 740,000 |
Equity and Liabilities | ||
Equity | ||
Share Capital | 100,000 | 100,000 |
Retained Earnings | 593,020 | 444,220 |
Total Equity | 693,020 | 544,220 |
Current Liabilities | ||
Trade and Other Payables | 145,780 | 156,000 |
Current Tax Liabilities | 61,200 | 39,780 |
Total Liabilities | 206,980 | 195,780 |
Total Equity and Liabilities | 900,000 | 740,000 |
3. Statement of Changes in Equity
For the financial year ended 31 December 2025
Description | Share Capital (S$) | Retained Earnings (S$) | Total (S$) |
Balance at 1 Jan 2025 | 100,000 | 444,220 | 544,220 |
Total Comprehensive Income | — | 298,800 | 298,800 |
Dividends Paid | — | (150,000) | (150,000) |
Balance at 31 Dec 2025 | 100,000 | 593,020 | 693,020 |
4. Statement of Cash Flows
For the financial year ended 31 December 2025
Cash Flow Categories | 2025 (S$) |
Net Cash from Operating Activities | 280,000 |
Net Cash used in Investing Activities | (0) |
Net Cash used in Financing Activities | (150,000) |
Net Increase in Cash and Cash Equivalents | 130,000 |
Cash and Cash Equivalents at Beginning of Year | 320,000 |
Cash and Cash Equivalents at End of Year | 450,000 |
5. Notes to the Financial Statements
These are the most voluminous part of the report and must include:
Corporate Information: Nature of operations and address of registered office.
Summary of Significant Accounting Policies: Basis of preparation (e.g., historical cost convention) and specific policies for revenue, taxes, and depreciation.
Critical Accounting Estimates: Judgments made by management (e.g., allowance for bad debts).
Detailed Breakdowns: Itemized lists for "Other Expenses," "Property, Plant and Equipment" depreciation schedules, and "Related Party Transactions."
Final Compliance Note for 2026
Ensure that the Comparative Figures (the previous year's data) are included for all statements. If your company is filing in XBRL via ACRA's BizFinx, these figures must be mapped precisely to the relevant taxonomy tags.
The Notes to the Financial Statements are an integral part of the financial report. They provide the "story" behind the numbers, detailing the accounting policies used and breaking down the line items found in the primary statements.
In Singapore, these must be prepared in accordance with the Singapore Financial Reporting Standards (SFRS) or SFRS for Small Entities.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2025
1. Corporate Information
The Company is a private limited company incorporated and domiciled in Singapore. The address of its registered office and principal place of business is [Insert Address, e.g., 10 Anson Road, Singapore].
The principal activities of the Company are those of [Insert Activity, e.g., Provision of Management Consultancy Services]. There have been no significant changes in the nature of these activities during the financial year.
2. Summary of Significant Accounting Policies
2.1 Basis of Preparation The financial statements have been prepared in accordance with Singapore Financial Reporting Standards (SFRS). The financial statements have been prepared under the historical cost convention, except as disclosed in the accounting policies below.
2.2 Revenue Recognition Revenue is measured based on the consideration to which the Company expects to be entitled in exchange for transferring promised goods or services to a customer.
Rendering of Services: Revenue is recognized when the services are performed and accepted by the client.
Interest Income: Recognized on a time-proportionate basis using the effective interest method.
2.3 Property, Plant and Equipment (PPE) All items of PPE are initially recorded at cost and subsequently measured at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over their estimated useful lives:
Computers & Software: 3 years
Office Equipment: 5 years
Furniture & Fittings: 5 years
2.4 Income Tax Current financial year tax is calculated using the Singapore corporate tax rate (currently 17%). Deferred tax is provided using the liability method on temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.
3. Property, Plant and Equipment
Computers (S$) | Office Equipment (S$) | Total (S$) | |
Cost | |||
At 1 January 2025 | 50,000 | 20,000 | 70,000 |
Additions | 10,000 | — | 10,000 |
At 31 December 2025 | 60,000 | 20,000 | 80,000 |
Accumulated Depreciation | |||
At 1 January 2025 | 15,000 | 4,000 | 19,000 |
Depreciation for the year | 20,000 | 4,000 | 24,000 |
At 31 December 2025 | 35,000 | 8,000 | 43,000 |
Net Book Value | |||
At 31 December 2025 | 25,000 | 12,000 | 37,000 |
4. Trade and Other Receivables
Item | 2025 (S$) | 2024 (S$) |
Trade Receivables | 210,000 | 185,000 |
Deposits | 5,000 | 3,000 |
Prepayments | 5,000 | 2,000 |
Total | 220,000 | 190,000 |
5. Related Party Transactions
A related party is an entity or person that has the ability to control or exercise significant influence over the Company.
The following significant transactions took place between the Company and related parties during the financial year on terms agreed between the parties:
Director's Remuneration: S$120,000 (2024: S$110,000)
Rental paid to a related company: S$36,000 (2024: S$36,000)
6. Share Capital
2025 | 2024 | |
Issued and fully paid ordinary shares: | ||
Beginning of year (100,000 shares) | S$100,000 | S$100,000 |
End of year (100,000 shares) | S$100,000 | S$100,000 |
The holders of ordinary shares are entitled to receive dividends as and when declared by the Company. All ordinary shares carry one vote per share without restrictions.
Internal Compliance Check for 2026
Events After Reporting Period: If a significant event occurs between 31 Dec and the date of signing (e.g., a major lawsuit or fire), a Note 7 must be added to disclose the nature of the event and its financial effect.
Tax Exemptions: For Singapore startups, ensure you disclose the use of the Tax Exemption Scheme for New Start-Up Companies if applicable, as it significantly impacts the tax expense in the Income Statement.
Navigating the complexities of the Singapore Companies Act 1967 and ACRA’s evolving 2026 digital reporting standards can be daunting for business owners. Whether you are a startup founder or a seasoned executive, ensuring your Directors’ Statement, Auditor’s Report, and Financial Statements are error-free is critical for maintaining corporate standing and securing financing.
Bestar Singapore serves as a strategic partner, bridging the gap between rigid regulatory compliance and modern digital efficiency. Here is how Bestar optimizes your annual reporting process for the current 2026 landscape.
1. Expert Drafting of the Directors' Statement
The Directors' Statement is a high-stakes legal declaration. Bestar ensures that your board’s report is not just a template, but a compliant document that reflects the latest ACRA requirements.
Conflict & Interest Management: Bestar’s corporate secretarial team proactively tracks director interests and shareholdings to prevent Section 156 disclosures from being missed.
AI-Driven Accuracy: Utilizing digital tools to ensure that all share option details and principal activity descriptions are consistent with your latest company filings.
Seamless Signatures: With 100% digital execution via Singpass, your directors can sign off on statements from anywhere in the world, ensuring deadlines are met without the friction of physical paperwork.
2. Efficient Independent Auditor's Report
For companies that cross the "Small Company" threshold (meeting 2 of 3: S10Mrevenue,S10M assets, or 50 employees), an audit is mandatory. Bestar Assurance PAC provides a "next-gen" audit experience.
The 30-Day Audit Guarantee: In 2026, speed is a competitive advantage. Bestar utilizes AI-driven workflows to complete standard statutory audits within 30 days of receiving all necessary documentation.
100% Population Testing: Instead of traditional manual sampling, Bestar uses AI to test entire data populations, providing a more robust "true and fair view" that gives banks and investors higher confidence.
Zero-Penalty Assurance: As a Registered Filing Agent, Bestar manages your compliance timelines proactively. If a filing is late due to their oversight, they cover the penalty.
3. Precision in Financial Statements & XBRL Filing
Singapore financial reporting has moved beyond simple PDFs. ACRA’s BizFinx mandates specific XBRL (Extensible Business Reporting Language) tagging.
SFRS Compliance: Bestar’s chartered accountants prepare full sets of financial statements—including the Statement of Comprehensive Income and Statement of Financial Position—in strict accordance with Singapore Financial Reporting Standards.
Advanced XBRL Tagging: Bestar handles the complex task of tagging over 200 data elements for full XBRL filings, ensuring your company’s "digital footprint" is clean and validated for AI-driven search engines (SGE) and financial analysts.
Consolidated Reporting: For regional networks, Bestar specializes in complex group financial audits and consolidations across jurisdictions like Malaysia, Hong Kong, and the UAE.
Bestar vs. Traditional Firms: 2026 Comparison
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Response Time | 3–5 Business Days | < 24 Hours (Partner-Led) |
Audit Method | Manual Sampling | 100% AI Population Testing |
Filing Tech | Manual XBRL Entry | AI-Driven BizFinx Integration |
Pricing Model | Hidden Add-ons | Transparent, Tiered Bundles |
Signature Method | Physical / Scanned | 100% Digital (Singpass) |
The Bestar "All-In-One" Advantage
Sample Directors' Statement, Auditor's Report and Financial Statements
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