A financial statement reflects the financial status for all of the company’s related entities including the original company assets. Big multinational companies must consolidate financial statements accurately to give clarity for business purposes. When a parent company acquires stock in a company to create a subsidiary, the subsidiary maintains its own separate accounting records but the parent company controls the subsidiary. Therefore, the parent company will consolidate financial statements to present its own financial operations, as well as those of the subsidiary.
In Singapore, accounting standards are known as Singapore Financial Reporting Standards (SFRS) are based on the IFRS. All companies with financial periods starting on or after 1 January 2003 have to comply with SFRS.
Talk to us today to know more how we can help you to consolidate your accounts and be in compliance with Singapore Financial Reporting Standards (SFRS).