Financial Reporting Surveillance Programme
High quality financial reporting is important to build trust in our capital market and economy.
Directors are responsible for preparing and tabling annual financial statements in compliance with the prescribed accounting standards in Singapore (Sections 201(2) and 201(5) of the Companies Act). A set of financial statements that complies with the accounting standards will provide reliable and comparable information to the stakeholders for decision-making.
As the regulator of companies, ACRA enquires with the directors where it appears that the financial statements are not compliant with the accounting standards through the Financial Reporting Surveillance Programme (FRSP).
When material non-compliances with accounting standards are established, we may take the following actions:
- issue advisory letters to inform directors of the material non-compliances and encourage them to take note in the preparation of future financial statements;
- seek remediation actions from the company, such as revision of past financial statements. This facilitates the communication of reliable and comparable financial information to investors;
- issue warning or impose composition sum against the directors to deter future offence(s); and/or
- prosecute directors in court to deter potential offender(s).
We also work with professional bodies to build the competency of directors and preparers of financial statements.
Reporting to the Public
To enhance transparency, we publish reports summarising the activities and findings of the FRSP. These reports aim to help companies avoid the common pitfalls and improve their financial reporting by enhancing their understanding of the application and interpretation of the Accounting Standards and the requirements of the Act. Click here to view the FRSP reports.
Financial Reporting Resources for Companies and Directors
To guide directors and other financial statements preparers, we publish Financial Reporting Practice Guidance highlighting the areas of the FRSP’s review focus for the coming year. This will remind directors of the risks of misstatements in the financial statements as well as how to better meet the information needs of investors and other users of financial statements. Please click on the links below to access the list of Practice Guidance.