Unaudited Financial Statement Format in Singapore: What SMEs Need to Prepare

What Is an Unaudited Financial Statement?

An unaudited financial statement is a financial report prepared without independent verification from an external auditor. These reports are commonly used by SMEs and audit-exempt companies in Singapore for:

• annual return filing

• corporate tax submission

• management reporting

• financing applications

Although they are not audited, the financial statements must still be prepared in accordance with Singapore Financial Reporting Standards (SFRS).

For many SMEs, understanding the proper format of an unaudited financial statement is essential for compliance and accurate reporting.

Why Financial Statement Format Matters

A properly structured financial statement helps businesses:

• maintain compliance with ACRA and IRAS requirements

• improve financial transparency

• support tax filing accuracy

• provide clarity for investors and lenders

Incorrect or incomplete formats may lead to:

• filing issues

• inconsistent reporting

• compliance risks

This is why many businesses rely on professional accountants for preparation.

Source: https://statrys.com/blog/what-is-a-financial-statement

Standard Unaudited Financial Statement Format in Singapore

A complete set of unaudited financial statements usually includes the following sections.

1. Cover Page

The financial statement typically begins with:

• company name

• Unique Entity Number (UEN)

• financial year period

• statement title

Example:

ABC Pte. Ltd.Unaudited Financial StatementsFor the Financial Year Ended 31 December 2025

This establishes the reporting period and entity details clearly.

2. Statement by Directors

This section contains declarations by directors confirming that:

• the financial statements are properly prepared

• accounting records are maintained

• the company is able to meet its obligations

It is an important corporate governance component even for unaudited reports.

3. Statement of Financial Position (Balance Sheet)

The balance sheet shows the company’s financial position at year-end.

Typical Format

Assets
Current Assets
Cash & Bank	XXX
Trade Receivables	XXX
Inventory	XXX
Non-Current Assets
Equipment	XXX
Total Assets	XXX

Liabilities & Equity
Current Liabilities	XXX
Non-Current Liabilities	XXX
Share Capital	XXX
Retained Earnings	XXX
Total Equity	XXX

This report helps assess financial health and solvency.

4. Profit and Loss Statement

Also known as the Income Statement, this section summarises:

• revenue

• operating expenses

• finance costs

• net profit or loss

  
  

Typical Format

Profit & Loss
Revenue	XXX
Cost of Sales	(XXX)
Gross Profit	XXX
Administrative Expenses	(XXX)
Net Profit Before Tax	XXX
Income Tax Expense	(XXX)
Net Profit After Tax	XXX

This report shows operational performance for the year.

5. Statement of Changes in Equity

This section tracks movements in:

• share capital

• retained earnings

• reserves

It shows how profits are retained or distributed throughout the financial year.

6. Cash Flow Statement

The cash flow statement categorises cash movements into:

Operating Activities

Cash generated from business operations.

Investing Activities

Purchase or sale of assets.

Financing Activities

Loans, capital injections, or dividends.

This helps businesses monitor liquidity and cash management.

7. Notes to Financial Statements

The notes section provides additional details regarding:

• accounting policies

• tax expenses

• related party transactions

• commitments and contingencies

These disclosures improve clarity and compliance with accounting standards.

Are SMEs Required to Submit All Sections?

Not always. The exact format and level of detail depend on:

• company size

• audit exemption eligibility

• filing requirements with ACRA

However, maintaining a complete set of financial statements is considered best practice for accurate financial management.

Common Mistakes in Unaudited Financial Statements

Many SMEs encounter issues such as:

• incomplete disclosures

• inconsistent account balances

• incorrect expense categorisation

• missing supporting schedules

• poor bookkeeping records

These issues can delay annual return filing and create tax complications.

Why Proper Bookkeeping Is Important

The quality of financial statements depends heavily on bookkeeping accuracy.

Good bookkeeping ensures:

• reliable financial data

• smoother year-end closing

• accurate tax computation

• easier financial analysis

Cloud accounting systems also improve reporting efficiency and data visibility.

How Unaudited Financial Statements Connect to Compliance

Unaudited financial statements are commonly used for:

Annual Return Filing

Supporting ACRA compliance obligations.

Estimated Chargeable Income (ECI)

Used for early tax estimation.

Corporate Tax Filing

Supports Form C-S/Form C submission.

Consistency across all filings is critical to avoid discrepancies.

How Podwerx Helps Businesses Prepare Unaudited Financial Statements

Podwerx provides comprehensive accounting and compliance support for SMEs.

Financial Statement Preparation

• SFRS-compliant unaudited reports

• year-end account preparation

• management reporting

Bookkeeping Services

• monthly bookkeeping

• reconciliations

• cloud accounting support

Compliance & Tax Services

• annual return filing

• ECI submission

• corporate tax filing support

By integrating bookkeeping and compliance services, Podwerx helps businesses maintain accurate and professional financial reporting.