A Singapore intermediate holding company may be exempt from preparing consolidated financial statements. Whether it qualifies depends on its reporting framework and on how its parent prepares its accounts.
The Exemption (Paragraph 4(a) of FRS 110 / SFRS(I) 10)
- It is wholly owned, or its non-controlling owners have been informed and do not object
- Its debt or equity is not publicly traded
- It is not filing to list instruments with a securities regulator
- Its ultimate or intermediate parent publishes consolidated financial statements for public use
Where FRS and SFRS(I) Differ
- SFRS(I) 10: The parent’s consolidated statements must comply with SFRS(I) or IFRS. If the parent uses Singapore FRS or another local GAAP, the exemption is not available.
- FRS 110: The parent’s publicly available consolidated statements may be prepared under any recognised framework.
Next Steps
- Confirm your entity’s reporting framework
- Obtain the parent’s audited, publicly available consolidated statements
- Disclose the exemption and the parent’s name and location in your financial statements
Contact us if you need help assessing the exemption or preparing group financial statements.