ACRA Financial Statement Requirements for Small Exempt Private Companies

For small Exempt Private Companies (EPCs) in Singapore, financial reporting requirements are lighter — but they’re not optional. Many compliance issues arise not from complex rules, but from misunderstandings about what EPCs still need to prepare and file with ACRA.

Here’s a clear, practical explanation of what ACRA expects from small EPCs — and where businesses often go wrong.

What Is a Small Exempt Private Company (EPC)?

An Exempt Private Company is a private company whose shareholders are all individuals and where the number of shareholders does not exceed the statutory limit. Many EPCs are also small companies under Singapore regulations, which may qualify them for certain exemptions.

While EPCs benefit from simplified requirements, they are not exempt from preparing financial statements.

Financial Statements: Still Required

Small EPCs must prepare a full set of financial statements in accordance with Singapore Financial Reporting Standards (SFRS).

These typically include:

• Statement of Financial Position
• Statement of Comprehensive Income
• Statement of Changes in Equity
• Cash Flow Statement
• Notes to the financial statements

Even when audits are not required, these statements must still present a true and fair view of the company’s financial position.

Audit Exemption vs Financial Statement Preparation

A common misconception is that being audit-exempt means financial statements are optional. This is not true.

Many small EPCs qualify for audit exemption, but they must still:

• Prepare proper financial statements
• Ensure figures are accurate and consistent
• Retain records for regulatory and tax purposes

Audit exemption reduces cost — it does not remove reporting responsibility.

XBRL Filing Requirements for Small EPCs

Depending on eligibility, small EPCs may be allowed to submit their financial statements to ACRA in PDF format instead of XBRL when filing Annual Returns. However, this depends on meeting specific criteria and should be reviewed each year.

Filing the wrong format can lead to:

• Rejected Annual Returns
• Delays in compliance
• Additional professional costs

Even when XBRL is not required, the underlying financial data still needs to be accurate and well-structured.

AGM and Annual Return Obligations Still Apply

Small EPCs must either:

• Hold an Annual General Meeting (AGM), or
• Qualify for AGM exemption and meet all exemption conditions

They must also file Annual Returns with ACRA within the statutory deadline. Financial statements — whether in XBRL or PDF — form part of this process.

Why Small EPCs Still Face Compliance Issues

Most problems don’t come from the rules themselves, but from weak financial records.

Common challenges include:

• Inconsistent bookkeeping
• Manual spreadsheets with limited traceability
• Last-minute financial statement preparation
• Confusion around filing format eligibility

These issues often surface close to deadlines.

How Small EPCs Can Stay Compliant With Less Effort

The most effective way for small EPCs to meet ACRA requirements is to maintain clean, structured financial data throughout the year.

AI-powered bookkeeping platforms like ccMonet help by:

• Automating transaction categorisation
• Supporting accurate, consistent records
• Reducing manual errors
• Making financial statement preparation faster and easier

Good systems make compliance predictable — even for small teams without in-house finance staff.

Simplified Doesn’t Mean Optional

ACRA provides flexibility for small Exempt Private Companies, but financial reporting obligations still apply. Preparing accurate financial statements is not just about compliance — it protects directors, supports tax filing, and builds confidence with stakeholders.

With the right financial foundation, small EPCs can meet ACRA requirements smoothly, without unnecessary stress.

👉 Learn how AI-powered bookkeeping helps small Singapore EPCs stay compliant with ACRA requirements at ccMonet

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