Penalty for Non Compliance With Prescribed Accounting Standard - Section 204
All companies with annual financial periods commence on or after
1 January 2003 must prepare their financial statement in accordance with the prescribed account standards,
Financial Reporting Standards (“FRS”) issue by the new accounting standards-setting body, the
Council On Corporate Disclosure and Governance (“CCDG”). When there is non-compliance with such legal requirement, there will be a fine of up to
$50,000/-. The fine will be increased to
$100,000/- and the offender may also be imprisoned for up to 3 years if the offence is committed with an intent to defraud. The criminal sanction provided is intended to send a strong signal that the Government takes a serious view of offences.
With effect for
01 April 2004 , The Registrar of Companies and Businesses (RCB) and The Public Accountants Board (PAB) have been merged to form the
Accounting and Corporate Regulatory Authority (ACRA). ACRA officer will take steps to check all documents submitted via electronics filing (Bizfile) for non-compliance with the above Section 204.
