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Financial Reporting Surveillance Programme 

High quality financial reporting is important for building trust in our capital market and economy. Financial reporting is a requirement for all entities in Singapore's financial ecosystem, including local companies and foreign entities listed on the Singapore Exchange. ACRA conducts financial reporting surveillance of these entities in order to maintain high financial reporting standard, protect investors and uphold market integrity.

(A) Singapore-incorporated Companies

Directors are responsible for preparing and tabling annual financial statements in compliance with the accounting standards in Singapore (Sections 201(2) and 201(5) of the Companies Act 1967). 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:

  1. issue advisory letters to inform directors of the material non-compliances and encourage them to take note in the preparation of future financial statements;
  2. 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;
  3. issue warning or impose composition sum against the directors to deter future offence(s); and/or
  4. 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.

(B) Other Listed Issuers 

From 1 February 2025, ACRA includes other listed issuers such as business trusts, real estate investment trusts and foreign-incorporated companies in its financial reporting surveillance for compliance with the accounting standards. This enhances regulatory oversight to maintain market integrity and investor confidence across all entities raising funds from the public in Singapore.

When reviewing these issuers’ financial statements, ACRA may:

• request information and/or documents from the issuers; and/or
• engage with the issuers’ management to seek clarifications.

Where material non-compliances with accounting standards are identified, ACRA may share this information with MAS and SGX RegCo for their assessment of potential breaches under the Securities and Futures Act 2001 and the Listing Rules, respectively.

For more details on the regulatory framework and inter-agency cooperation, please refer to the MAS Enforcement Monograph available at https://www.mas.gov.sg/publications/monographs-or-information-paper/2022/enforcement.

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. Read 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.   

Practice Guidance
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