All companies incorporated in Singapore is required to prepare financial statements that comply with Accounting Standards (also commonly known as Financial Reporting Standards) under Section 201 of the Singapore Companies Act (Cap. 50).
This is regardless whether is the company exempted or is required to be audited.
A set of financial statements is required to be prepared in order for the corporate secretary to file the annual requirements in XBRL.
A company is also required to have a set of financial statements prepared when submitting their income tax, although submission is only required when filing of income tax using Form C.
A set of financial statements aids management in understanding the company’s performance and financial position as compared to trying to understand from reading the accounting documents.