Balance Sheet Singapore
Balance Sheet uses in Singapore
Balance Sheet, in Singapore Financial Reporting Standards SFRS also known as the statement of financial position, is one of the statement of accounts required by the Inland Revenue Authority of Singapore IRAS, for entities to easily file their income tax return at the end of their accounting year. There must be balanced of an entity’s entire assets against summation of its shareholders’ equity and its liabilities.
Balance sheet shall breakdown into line items as a minimum to show the following sums:
Current, readily or easily cash convertible like
- Cash as in bank deposits, petty cash;
- Accounts receivable as in collectibles within 1 year;
- Inventories as in price of purchased value where they can be sold off easily;
- Other cash equivalent receivables.
Non-Current, not easily convertible to cash like
- Property, plant and equipment (PP&E) as in fixed assets;
- Less accumulated depreciation and impairment except for real estate;
- Intangible assets as in goodwill and copyrights;
- Other investments.
Current, incurred payments within 1 year like
- Accounts payable as in credit term expenses;
- Short term loans;
- Tax payable as in coming 1 year;
- Provisions as in amount that owed to employee benefits.
Non-Current, incurred payments beyond 1 year like
- Long term loans as in deferred expenses and taxation payable.
- Capital or Shares as funded by shareholders investment;
- Retained earnings as in entity financial gain to be reinvested;
- Less drawings, as in dividends or repayment of capital.
Balance Sheet is definitely an essential assessment tool for an entity’s financial condition at a point of time with a few period of time (per year, per quarter, per month). This entity report adds value to the users about its funding, its own and its financial obligations. For entity owners or managers to steer the entity’s direction, they must know whether the entity yields a profit or loss and increase the entity’s financial condition by working out investment decisions, cost cutting measures and etc. For investors or creditors to gain profit, they must evaluate the entity’s solvency and liquidity. To generate good balance sheet, all these information must have bookkeeping done properly. Please contact us if you need any bookkeeping service support for your business or entity.