What Directors Should Know Before Signing Financial Statements in Singapore
In Singapore, signing off on a company’s financial statements is more than a formality — it’s a legal responsibility. Whether you’re a nominee director, active founder, or newly appointed board member, affixing your signature means accepting accountability for the accuracy and completeness of your company’s financial disclosures.
At USAFE, we work closely with directors across SMEs, startups, and group subsidiaries to ensure that financial statements are properly prepared, reviewed, and compliant. In this article, we break down what every director should understand before signing off.
Why Director Sign-Off Is Legally Significant
Under the Companies Act (Cap. 50), directors are responsible for ensuring that the financial statements present a true and fair view of the company’s financial position. When directors sign these documents, they are making a formal declaration to:
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Shareholders
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ACRA
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IRAS
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External auditors (if applicable)
Failure to fulfil this duty can lead to civil and criminal penalties, including fines and disqualification from holding directorships.
Common Misconceptions Directors Should Avoid
1. “I’m not involved in finance – I’ll just trust the accountant.”
Even if you’re not a finance expert, as a director, you remain legally responsible. You cannot simply shift blame to staff or external providers.
2. “My company is dormant or exempt, so it doesn’t matter.”
Even dormant companies must prepare and maintain financial statements in proper format, even if audit exemption applies.
3. “We’ll fix it later if there’s a mistake.”
Once filed, amending financial statements can be complex and may raise red flags with IRAS or ACRA. It’s far better to get it right the first time.
What You Should Check Before Signing
Before signing off, directors should:
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Review the financial performance: Ensure revenue, expenses, and profit figures make sense.
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Check for disclosure completeness: Especially related party transactions, contingent liabilities, loans to directors, etc.
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Validate asset and liability balances: Cross-check with supporting documents or third-party confirmations if necessary.
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Ensure proper compliance format: Singapore Financial Reporting Standards (SFRS or SFRS for Small Entities).
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Understand tax implications: Deferred tax, unutilised losses, and other provisions should be reviewed carefully.
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Ensure management representation letters are factual (if audit is involved).
At USAFE, we help directors interpret financial statements, identify red flags, and correct compliance gaps before finalisation.
How USAFE Supports Directors with Confidence and Clarity
As a licensed Public Accounting (PA) firm, we support directors at every stage of financial reporting — from preparation to audit to ACRA filing. We work with both exempt and non-exempt companies, including those facing time-sensitive filing deadlines or undergoing restructuring.
Our services include:
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Compilation of Unaudited Financial Statements
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Voluntary or Statutory Audit
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XBRL Reporting and ACRA Filing
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Financial Statement Review and Advisory
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Tax Adjustments and IRAS Compliance Checks
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Group Consolidation and Disclosure Management
For foreign directors or nominee directors with limited visibility, we also provide independent financial statement walkthroughs so you know what you’re signing.
Final Thoughts: Don’t Sign Blindly — Sign Responsibly
Signing financial statements without proper review is a legal and reputational risk. Directors should treat this task as seriously as signing a contract or board resolution.
At USAFE, we go beyond compliance — we help directors fulfil their duties confidently, knowing the numbers are accurate, complete, and defensible.
Need professional guidance before signing your next set of financials?
Talk to our team today. We’re here to help directors stay compliant, protected, and well-informed.
Disclaimer: This article is for informational purposes only and does not constitute any professional advice. Feel free to contact us to consult with our professional advisors team for personalized advice and guidance.
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