C ertain amendments to the Singapore
Companies Act (the “Act”)
were introduced in December 2002
and May 2003, and which have effects on
accounting and corporate secretarial as well
as on corporate management. A summary
of these amendments to the Act are as follows:
Accounting records and systems of control
Section 199(1) of the Act provides that
every company shall keep such accounting
or other records to sufficiently explain the
transactions and financial position of the
company and enable true and fair profit and
loss accounts and balance sheets to be prepared.
Therefore, it is the responsibilities of
the directors or officers of the company to
ensure compliance with the Act. Any noncompliance
with this section may lead to
penalties of a maximum of S$2,000 or to
imprisonment for a term not exceeding
three months and also to a default penalty.
Accounts, consolidated accounts to comply
with Accounting Standards
Section 200A of the Act establishes an
Accounting Standards Committee which is
in effect the Council on Corporate Disclosure
and Governance (CCDG) and this
Council has prescribed accounting standards
known as Financial Reporting Standards
(FRS) via the Companies (Accounting
Standards) Regulations 2002.
Section 201(1A) requires to lay before the
company at its AGM, the company’s financial
statements which should comply with
the FRS and such financial statements
should give a true and fair view of the financial
results and the financial position of
the company. Section 201(3) of the Act
require that the company’s profit and loss
and balance sheet laid at the AGM comply
with the FRS. These FRS are effective f ...