“Small Company” Concept for Exemption from Statutory Audit

NEW CRITERIA FOR AUDIT EXEMPTION FOR SMALL COMPANIES an AsiaBiz Infographic | www.asiabiz.sg CRITERIA FOR NEW COMPANIES INCORPORATED ON OR AFTER 1 JULY 2015 A company qualifies as a "small company" and is exempted from audit if it meets at least 2 out of 3 of the following criteria: 3/3 Total annual revenue of not more than $10 million Total gross assets as at the end of the financial reporting period of not more than $10 million Total number of employees as at the end of the financial year of not more than 50 CRITERIA FOR COMPANIES WHO ARE PART OF A "SMALL GROUP" For a group to be a "small group", it must meet at least 2 of the 3 quantitative criteria on a consolidated basis for the immediate or past two consecutive financial years. 2/3 Parent Company Total group should not be more than: (01 $10 million annual sales revenue + D $10 million in total gross assets* Subsidiary 50 employees" *at the end of the financial reporting period CRITERIA FOR EXISTING COMPANIES INCORPORATED ON OR BEFORE 30 JUNE 2015 Individual Corporate Shareholders Shareholders All existing companies, whether corporate shareholders, incorporated on or before 30 June 2015, can qualify as a "small company" if it meets at least 2 of the 3 quantitative criteria for financial year commencing on 1 July 2015 onwards. or individual (2/3 Total gross assets as at the end of the financial Total number of Total annual revenue of employees as at the end of the financial year of not more than reporting period of not more than $10 million $10 million not more than 50 A company continues to be exempted from audit until it does not meet the quantitative criteria for the immediate past two consecutive financial years. NEED HELP WITH YOUR UNAUDITED REPORT? Our corporate specialists can help you. Call us at +65 6303 4614 for a free consultation. AsiaBiz ASIABIZ SERVICES PTE LTD | 30 Cecil Street, #19-06 Prudential Tower, Singapore 049712 Phone: (+65) 6303 4614 | Fax: (+65) 6303 2670| [email protected] | www.asiabiz.sg II IIII-