The Companies (Amendment) Bill was passed by Parliament in October 2014. On 15 April 2015, ACRA announced that the legislative changes to the Companies Act will be effected in two phases. The first phase will be implemented on 1 July 2015. The second phase will commence in the first quarter of 2016.
Phase 1 (Effective 1 July 2015)
“Small Company” Concept for Audit Exemption
To reduce the regulatory burden on small companies and move further towards a risk-based approach, a new small company concept will be introduced for exemption from statutory audit.
The audit exemption applies to a company with respect to financial statements for a financial year commencing on or after 1 July 2015.
Current Criteria for audit exemption
New “Small Company” criteria for audit exemption
-Total annual revenue ≤S$10M
-Total assets ≤ S$10M
-No of employee as at financial period date ≤50;
-company must qualify as a small company; and
-entire group must be “small group”; the above test must be met on a group (consolidated) basis as well
For more details on qualification criteria, transitional provisions for existing companies, and application to new companies incorporated after 1 July 2015, please click here.
Phase 2 (Targeted Q1 2016)
Click here for the key legislative amendments for Phase 2.
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