ACRA, ISCA reiterate financial statements accounting standards
ACRA and ISCA will be selecting sample financial statements from a pool of listed and non-listed companies, including charities, for financial years ended from 1 January 2013. Contrary to their previous practice which focused mainly on financial statements of listed companies with modified audit reports, ACRA will now also be reviewing financial statements with unmodified audit reports to check for financial reporting deficiencies that may impair the reliability of the financial statements.
Under the new agreement, ISCA will be sharing its observations on potential non-compliances in financial statements with ACRA, which will deliberate and take enforcement action against directors under the Singapore Companies Act, if necessary. Under Section 204 of the Companies Act, depending on the severity of the offence that they are guilty of, the directors could be imposed fines and/or be subject to imprisonment.