Illustrative Financial Statements 2019

Illustrative Financial Statements 2019

Preface

About this publication:

This publication is an illustrative financial statements (IFS) of a Singapore-incorporated company, ABC Pte. Ltd., prepared in accordance with:

l Financial Reporting Standards in Singapore (FRSs)

l Singapore Companies Act, Chapter 50 (CA)

The IFS serve to provide an illustration of the annual financial statements of a company whose principal activities are those of trading. The disclosures contained in these IFS are made based on a hypothetical entity and certain assumptions have been made about the applicability of the disclosures required by FRSs.

The IFS are designed to capture a wide set of circumstances and transactions, and in enhancing the relevance of the IFS, all minimum disclosure requirements of FRSs are complied with, generally without considering materiality. Also, since the IFS are prepared based on a fictitious entity, assessing materiality is not possible in some circumstances. This set of IFS is a helpful enabler for entities preparing financial statements under FRSs, but its illustrative nature must be appreciated.

The names of people and entities included as illustrations are fictitious. Any resemblance to any person or business is purely coincidental.

This 2019 edition includes illustrations of disclosures which are effective for annual periods beginning on or after 1 January 2019.

To draw the attention of users to changes in this publication as compared to the 2018 edition, we have side-lined the new illustrations, disclosure requirements and other editorial changes in this manner.

Important notices:

l This publication is intended as an illustrative guide rather than a definitive statement.

l While the IFS contain most of the usual disclosures typically found in the financial statements of entities whose activities include trading, the disclosures and help tips in this publication are not meant to be exhaustive. Reference should be made to the relevant standards and regulations for specific disclosure requirements.

l This publication should not be relied upon as a substitute for seeking professional advice concerning the appropriate accounting treatment for specific individual situations or ensuring compliance with the FRSs and/or CA.

Abbreviations:

The following abbreviations are used in this publication:

ACRA CA FRS

ISCA SSA

Accounting and Corporate Regulatory Authority Singapore Companies Act, Chapter 50 Financial Reporting Standard in Singapore ? INT FRS Interpretations of FRS ? FRS IE FRS Illustrative Examples ? FRS IG FRS Implementation Guidance Institute of Singapore Chartered Accountants Singapore Standard on Auditing

TABLE OF CONTENTS Directors' Statement Independent Auditor's Report Statement of Profit or Loss and Other Comprehensive Income Statement of Financial Position Statement of Changes in Equity Statement of Cash Flows Notes to the Financial Statements Appendix A S tatement of Profit or Loss and Other Comprehensive Income

(Illustrating the analysis of expenses by nature)

PAGE 1 ? 4 5 ? 8 9 ? 11 12 ? 13 14 ? 15 16 ? 18 19 ? 104

105

ABC PTE. LTD.

DIRECTORS' STATEMENT FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019

CA 201: 16

The directors are pleased to present their statement to the members together with the audited financial statements of ABC Pte. Ltd. (the Company) for the financial year ended 31 December 2019.

1. Opinion of the directors

In the opinion of the directors,

CA Sch 12(1)(a)

(a) the financial statements of the Company are drawn up so as to give a true and fair view of the financial position of the Company as at 31 December 2019 and the financial performance, changes in equity and cash flows of the Company for the year then ended; and

CA Sch 12(1)(b)

(b) at the date of this statement, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they fall due.

CA Sch 12(7)

2. Directors

The directors of the Company in office at the date of this statement are:

Irene Lee Nelson Ma Steven Lee

(Appointed on 31 March 2019)

3. Arrangements to enable directors to acquire shares or debentures

CA Sch 12(8)(a) CA Sch 12(8)(b)

Neither at the end of nor at any time during the financial year was the Company a party to any arrangement whose objects are, or one of whose objects is, to enable the directors of the Company to acquire benefits by means of the acquisition of shares in, or debentures of, the Company or any other body corporate.

CA Sch 12(9)

4. Directors' interests in shares or debentures

According to the register of directors' shareholdings kept by the Company under section 164 of the Singapore Companies Act, Chapter 50 (the Act), the directors of the Company who held office at the end of the financial year had no interests in the shares or debentures of the Company and its related corporations except as stated below:

Name of directors

Direct interest

Deemed interest

At the

At the

beginning of

beginning of

financial year At the end financial year At the end

or date of of financial or date of of financial

appointment

year

appointment

year

Ordinary shares of the Company Irene Lee Nelson Ma Steven Lee

1,500 1,500 1,000

1,500 1,500 1,000

1,500

-

1,500

-

1

ABC PTE. LTD.

DIRECTORS' STATEMENT (Continued) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019

CA Sch 12(2) CA Sch 12(5) CA Sch 12(6)

5. Share options

There were no share options granted during the financial year to subscribe for unissued shares of the Company.

There were no shares issued during the financial year by virtue of the exercise of options to take up unissued shares of the Company.

There were no unissued shares of the Company under option at the end of the financial year.

6. Auditor PA LLP has expressed its willingness to accept re-appointment as auditor.

CA 201: 16

On behalf of the Board of Directors

_______________________ Irene Lee Director 30 May 2020

_______________________ Nelson Ma Director

Help tips

(i) Addressee(s) of the Directors' Statement

The phrase `to the member' should be used if the Company has only one shareholder.

(ii) Opinion of the directors

Where there are events or conditions that may cast significant doubt on the Company's ability to pay its debts as and when they fall due, the opinion of the directors should be amended accordingly with the appropriate disclosures.

(iii) Signing of the Directors' Statement

The phrase `On behalf of the Board of Directors' is not necessary if the Company has two or fewer directors.

If the Company has two directors, the phrase `The Board of Directors' is suggested.

If the Company has only one director, the phrase `The Sole Director' is suggested.

2

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