{"id":4731,"date":"2026-04-28T17:59:41","date_gmt":"2026-04-28T09:59:41","guid":{"rendered":"https:\/\/glutenfreepleasure.com\/__proxy_domain\/scmohan.com.sg\/?p=4731"},"modified":"2026-04-29T15:02:20","modified_gmt":"2026-04-29T07:02:20","slug":"the-detail-that-matters-your-compliance-action-plan-before-6-may-2026","status":"publish","type":"post","link":"https:\/\/glutenfreepleasure.com\/__proxy_domain\/scmohan.com.sg\/the-detail-that-matters-your-compliance-action-plan-before-6-may-2026\/","title":{"rendered":"Directors, Take Note: The Detail That Matters – Your Compliance Action Plan Before 6 May 2026 (Part 2)"},"content":{"rendered":"

[vc_row][vc_column icons_position=”left”][vc_column_text css=””]<\/p>\n

\"ChandraChandra Mohan [Managing Director]
\nFounder \/ Senior Audit Partner \/ FCA [Singapore] \/ FCCA \/ CPA [Aust] \/ MBA
\nPublished 23 April 2026<\/p>\n

Where We Left Off<\/b><\/p>\n

In <\/span>Part 1 of this series<\/b><\/a>, we traced two decades of Singapore’s corporate regulatory evolution – from liberalisation to strict accountability – and introduced the four key amendments taking effect on <\/span>6 May 2026<\/b>. If you haven’t read Part 1, start there.<\/span><\/p>\n

\ud83d\udc49<\/span> Read Part 1: Directors, Take Note – ACRA’s 2025 Amendments Are the Biggest Regulatory Shift in 20 Years<\/b><\/a><\/p>\n

In this Part 2, we dive into the detail: what each amendment means, what every director must know about financial reporting, and your compliance action plan.<\/span><\/p>\n

These amendments are not designed to punish compliant directors. They protect Singapore’s corporate ecosystem by holding accountable those with different motives – levelling the playing field for directors who play by the rules.<\/span><\/p>\n

The four key amendments taking effect on <\/span>6 May 2026<\/b>:<\/span><\/p>\n\n\n\n\n\n\n\n\n
#<\/b><\/th>\nAmendment<\/b><\/th>\nImpact Level<\/b><\/th>\n<\/tr>\n<\/thead>\n
1<\/span><\/td>\nHeavier Penalties for Directors<\/span><\/td>\n\ud83d\udd34<\/span> Critical<\/span><\/td>\n<\/tr>\n
2<\/span><\/td>\nExpanded Director Disqualification (AML)<\/span><\/td>\n\ud83d\udd34<\/span> Critical<\/span><\/td>\n<\/tr>\n
3<\/span><\/td>\nTwo-Tier Share Buyback Approval<\/span><\/td>\n\ud83d\udfe1<\/span> Important<\/span><\/td>\n<\/tr>\n
4<\/span><\/td>\nIndividual Auditor Identification<\/span><\/td>\n\ud83d\udfe1<\/span> Important<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

FRS, FRSSE, and the Companies Act: What Every Director Must Know<\/b><\/h3>\n

Many SME directors leave financial reporting entirely to their accountants. While engaging qualified professionals is essential, you must understand the frameworks governing your company’s accounts.\u00a0<\/span><\/p>\n

In plain English:<\/b> Your financial statements must follow specific accounting standards – <\/span>FRS<\/b> or <\/span>FRSSE<\/b> – depending on your company’s size. These standards are prescribed by the Accounting Standards Council (ASC) under ACRA.<\/span><\/p>\n

Your Legal Obligations as a Director:<\/b>\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n\n
Obligation<\/b><\/th>\nCompanies Act Reference<\/b><\/th>\nWhat It Means<\/b><\/th>\n<\/tr>\n<\/thead>\n
Maintain proper accounting records<\/span><\/td>\nSection 199<\/b><\/td>\nRecords must be accurate, up to date, and accessible at all times<\/span><\/td>\n<\/tr>\n
Prepare compliant financial statements<\/span><\/td>\nFRS or FRSSE<\/b><\/td>\nMust comply with the applicable accounting standard – no exceptions<\/span><\/td>\n<\/tr>\n
Ensure true and fair view<\/span><\/td>\nCompanies Act<\/b><\/td>\nFinancial statements must accurately reflect your company’s financial position<\/span><\/td>\n<\/tr>\n
Act honestly and with reasonable diligence<\/span><\/td>\nSection 157<\/b><\/td>\nYou must take an active interest in your company’s affairs – not just sign documents<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

A Critical Reminder: Engage a Registered Professional Accountant<\/b><\/h3>\n

One of the smartest decisions you can make as a director is to engage a professional accountant who is registered with and answerable to ACRA. These professionals operate under ACRA’s regulatory oversight – including the Practice Monitoring Programme (PMP) – and are held to prescribed standards of competence, ethics, and accountability.<\/span><\/p>\n

Be thoughtful about who prepares your company’s financial statements. Unregistered individuals or firms may offer lower fees, but they are not subject to ACRA’s oversight, not bound by professional standards, and not accountable if things go wrong. You are. Under the new amendments, non-compliant financial statements can expose directors to penalties of up to $20,000 per offence and 12 months’ imprisonment. An ACRA-registered professional accountant is not just a service provider – they are your first line of protection.<\/span><\/p>\n

Your Responsibility as a Director<\/b><\/p>\n

Your professional accountant supports your compliance – they do not replace your responsibility for it. The Companies Act places the ultimate duty on you, the director.<\/span><\/p>\n