The Ultimate Guide to Preparing Financial Statements for ACRA (2026 Edition)
- a22162
- 6 hours ago
- 7 min read
ACRA Financial Statement Guide 2026
The Ultimate Guide to Preparing Financial Statements for ACRA (2026 Edition)
Maintaining compliance in Singapore’s regulatory environment is critical for every business owner. While the Accounting and Corporate Regulatory Authority (ACRA) provides technical guidelines, navigating the nuances of the Singapore Financial Reporting Standards (SFRS) and XBRL filing can be daunting.
This comprehensive guide breaks down everything you need to know about preparing, auditing, and filing your financial statements in 2026.
1. Do You Need to Prepare Financial Statements?
Under the Singapore Companies Act, every incorporated company is required to prepare a set of financial statements that provide a "true and fair" view of its financial position.
Who must file?
Most Companies: Required to file a full set of financial statements with their Annual Return.
Exempt Private Companies (EPCs): If you are a solvent EPC (annual revenue ≤ S$5M and no corporate shareholders), you are exempt from filing but must still prepare them for your Annual General Meeting (AGM).
Insolvent EPCs: Must file a full set of financial statements in XBRL format.
2. Key Components of a Compliant Financial Statement
To meet ACRA's standards, your statements must align with the Singapore Financial Reporting Standards (SFRS) or SFRS for Small Entities. A complete set includes:
Directors’ Statement: A formal report signed by at least two directors
Statement of Comprehensive Income: Revenue, expenses, and profit/loss.
Statement of Financial Position: Assets, liabilities, and equity (the Balance Sheet).
Statement of Changes in Equity: Tracking movements in share capital and reserves.
Statement of Cash Flows: Where the money came from and where it went.
Notes to the Financial Statements: Detailed breakdowns of specific line items and accounting policies.
3. The "Small Company" Audit Exemption (2026 Criteria)
Many SMEs believe they need an audit every year, but you may be exempt. A company qualifies as a "Small Company" (and avoids audit fees) if it meets at least 2 of these 3 criteria for the last two consecutive financial years:
Total Annual Revenue ≤ S$10 million
Total Assets ≤ S$10 million
Number of Employees ≤ 50
Pro Tip: If your company is part of a group, the entire group must meet the "Small Group" criteria to qualify for the exemption.
4. Understanding XBRL Filing Requirements
ACRA requires most companies to file their financial statements in XBRL (Extensible Business Reporting Language). This is a digital format that allows for easier data analysis.
Filing Format | Who it applies to |
Full XBRL | Most standard companies and those with complex accounts. |
Simplified XBRL | Smaller, non-publicly accountable companies (approx. 120 data elements). |
PDF Only | Companies limited by guarantee and certain foreign branches. |
Common XBRL Mistakes to Avoid:
Mapping Errors: Incorrectly "tagging" a line item (e.g., putting 'Other Income' under 'Revenue').
Rounding Inconsistencies: Ensuring the numbers in your XBRL file match your signed PDF statements to the dollar.
Outdated Templates: Using the 2021 taxonomy for a 2025 filing.
5. Deadlines and Penalties: Mark Your Calendar
Missing an ACRA deadline results in more than just a fine; it can affect your company’s "Green Tick" status on BizFile+.
For Private Companies:
AGM: Within 6 months of Financial Year-End (FYE).
Annual Return (AR): Within 7 months of FYE.
The Cost of Delay:
Late filing fees range from S$300 to S$600 per late lodgement.
Persistent default can lead to a court summons or disqualification of directors.
6. Checklist: 5 Steps to a Stress-Free Filing
Confirm your FYE: Ensure your accounting period doesn't exceed 18 months in the first year.
Appoint a Professional: Unless you are an accountant, use a Corporate Service Provider to handle the XBRL conversion.
Hold your AGM/Pass Resolutions: Even if you dispense with a physical meeting, you need the paperwork.
Review the Director’s Statement: Ensure it is signed and dated after the audit report (if applicable).
File via BizFile+: Use CorpPass to submit your Annual Return and upload the XBRL file.
Frequently Asked Questions (FAQs)
Q: Can I file my own XBRL?
A: Yes, using ACRA’s free BizFinx Preparation Tool. However, it is highly technical and time-consuming. Most businesses outsource this to avoid validation errors.
Q: What if my company is dormant?
A: Dormant relevant companies are exempt from preparing financial statements but must still file a "Dormant" status via the Annual Return in BizFile+.
Q: Does IRAS use the same financial statements?
A: Yes. The financial statements you prepare for ACRA form the basis of your tax computation for IRAS. However, tax deadlines (ECI and Form C-S) differ from ACRA deadlines.
Why Bestar is the Preferred Corporate Service Provider in Singapore for 2026
The Ultimate Guide to Preparing Financial Statements for ACRA (2026 Edition)
Choosing the right partner for your company’s compliance and financial health is a critical business decision. In Singapore’s stringent regulatory environment, Bestar Singapore stands out as a top-tier professional accounting firm and Corporate Service Provider (CSP) that bridges the gap between basic bookkeeping and strategic financial leadership.
1. Beyond Compliance: The Bestar Advantage
While many firms offer standard incorporation services, Bestar provides a "SME+" ecosystem. This approach is designed for growing businesses that have outgrown simple automated platforms and require human expertise for complex scenarios.
ISCA-Registered Expertise: Our team consists of qualified accountants and members of the Institute of Singapore Chartered Accountants (ISCA), ensuring your records meet the highest professional standards.
One-Stop Lifecycle Support: From initial Company Incorporation and Corporate Secretarial duties to complex Statutory Audits, M&A Advisory, and Liquidation, we support your business at every stage.
ACRA Registered Filing Agent: As an authorized agent, we handle all BizFile+ submissions directly, ensuring you never miss a deadline for Annual Returns or XBRL filings.
2. Strategic Tax Optimization (YA 2026 Focus)
Tax compliance in 2026 isn't just about filing forms; it’s about maximizing the latest government incentives announced in the Singapore Budget. Bestar’s tax specialists proactively manage:
CIT Rebate Maximization: We help companies navigate the 50% Corporate Income Tax (CIT) Rebate (capped at S$40,000) for the Year of Assessment 2026.
SUTE vs. PTE Analysis: We determine whether your startup qualifies for the Start-Up Tax Exemption (SUTE) or the Partial Tax Exemption (PTE) to minimize your effective tax rate.
GST Advisory: Specialized support for GST registration, quarterly filings, and ASK (Assisted Self-Help Kit) reviews to prevent costly IRAS audits.
3. Technology-Driven, Human-Led
Bestar embraces the future of finance without sacrificing the personal touch. We are Software Agnostic partners, certified in leading cloud platforms:
Feature | Bestar Singapore | Traditional Firms | Digital-Only Platforms |
Software | Xero / QuickBooks / MYOB | Manual / Desktop | Proprietary (Locked-in) |
Audit | In-house Audit Services | Outsource to 3rd party | None / External referral |
Support | Dedicated Account Manager | Seasonal / Slow | Chatbot / Ticket-based |
Complexity | Handles M&A & Groups | Limited | Simple entities only |
4. Specialized Services for High-Growth Sectors
Singapore is a global hub for innovation, and Bestar has developed deep vertical expertise in:
Single Family Offices (SFOs): Structuring and compliance for Section 13O/13U tax incentive schemes.
Fund Management: Audit and regulatory reporting for Licensed and Registered Fund Management Companies (LFMCs/RFMCs) under MAS guidelines.
E-commerce & Tech: Handling high-volume transactions and cross-border tax complexities.
5. How to Appoint Bestar as Your Corporate Partner
Transitioning to Bestar is a seamless process. Whether you are starting a new venture or switching from a provider that no longer meets your needs, we handle the heavy lifting:
Consultation: We assess your current compliance status and business goals.
Resolution: We prepare the necessary board resolutions to appoint Bestar as your Company Secretary or Tax Agent.
ACRA Lodgement: We update your company’s particulars on BizFile+ within 14 days.
Handover: We coordinate with your previous provider to ensure all statutory records and secretarial files are transferred securely.
Secure Your Company's Future with Bestar
In 2026, "good enough" accounting is a risk you can't afford. Partner with a firm that treats your compliance as a foundation for growth.
Would you like me to draft a customized service proposal for switching your corporate service provider to Bestar?
Checklist for Switching your Corporate Service Provider to Bestar
Switching your corporate service provider (CSP) to Bestar Singapore is a straightforward process designed to minimize disruption to your business operations. However, to ensure a "clean break" from your previous provider and a seamless transition of your statutory records, following a structured checklist is essential.
Below is the definitive checklist for migrating your corporate secretarial, accounting, and tax services to Bestar.
Phase 1: Pre-Transition Assessment
Before notifying your current provider, verify your contractual obligations and the current state of your company’s compliance.
[ ] Review Current Service Agreement: Check the termination notice period (typically 30 to 90 days) and any "exit fees" for document preparation.
[ ] Identify Compliance Gaps: Check BizFile+ for any overdue Annual Returns or pending ACRA filings. Bestar will need to address these immediately upon takeover.
[ ] Confirm Bestar’s Service Tier: Decide if you are switching only secretarial services or moving your full accounting, GST, and tax portfolio to Bestar for a unified solution.
Phase 2: Engagement & Onboarding with Bestar
Once you decide to move, Bestar initiates the formal "Know Your Customer" (KYC) and appointment process.
[ ] Submit KYC Documents: Provide Bestar with NRIC/Passport copies and proof of address for all directors and shareholders.
[ ] Sign Engagement Letter: Formally appoint Bestar as your Corporate Service Provider and/or Tax Agent.
[ ] Approval of Board Resolutions: Bestar will prepare the Directors' Resolutions in Writing (DRIW) to:
Record the resignation of the outgoing Company Secretary.
Approve the appointment of the new Company Secretary from Bestar.
(Optional) Change the Registered Office Address to Bestar’s office.
Phase 3: The Handover (Document Checklist)
This is the most critical stage. Bestar will liaise with your previous provider, but you should ensure the following files are handed over:
[ ] Statutory Registers:
Register of Members (Shareholders).
Register of Directors, Secretaries, Auditors, and Managers.
Register of Registrable Controllers (RORC).
Register of Nominee Directors.
[ ] Company Constitution: The latest version filed with ACRA.
[ ] Minutes & Resolutions File: All past Annual General Meeting (AGM) minutes and board resolutions.
[ ] Common Seal & Share Certificates: If your company maintains a physical seal and hard-copy share certificates.
[ ] Financial & Tax Records: (If switching accounting services)
Trial Balances, General Ledgers, and fixed asset registers.
Past Tax Computations (Form C-S/C) and GST returns.
Access to Xero/QuickBooks/MYOB subscriptions.
Phase 4: Official ACRA & Regulatory Filings
In Singapore, regulatory changes must be reported within a strict timeframe.
[ ] File Cessation & Appointment (14 Days): Bestar will file the change of Company Secretary on BizFile+ within 14 days of the resolution date.
[ ] Update Registered Office (14 Days): If you are moving your address to Bestar’s premises.
[ ] Endorsement in BizFile+: Directors must log in via Singpass to endorse their consent for the new appointments if prompted by the system.
[ ] Notify Stakeholders: Inform your bank and insurance providers of the change in Company Secretary and Registered Office address.
Phase 5: Post-Takeover Review
[ ] Compliance Audit: Bestar performs an initial "health check" to ensure all past registers are accurate and up to date.
[ ] Compliance Calendar Setup: Bestar sets up your 2025/2026 deadlines for AGM, Annual Return, and Tax filings.
Ready to make the switch?
Bestar can handle the communication with your current provider to ensure a professional and tension-free handover.
Would you like an initial "Termination and Document Request" email that you can send to your current provider to start this process?
Comments