If a CPA decides to provide assistance to clients related to their CTA compliance, understanding the risks presented by the service is a key step in understanding how to manage them. Careful planning and consistent application of risk management techniques including, but not limited to, a separate engagement letter that narrowly defines the scope of services may help mitigate risk. Consultation with your legal counsel and professional liability insurance carrier is strongly recommended to help you understand your risks. (c) To establish and administer a repository of documents and information relating to business entities, public accountants, and corporate service providers; and to provide the public with access to such documents and information. (b) To report, make recommendations to, and advise the Government on matters relating to the registration and regulation of business entities, public accountants, and corporate service providers. (d) To represent the Government internationally in matters relating to the registration and regulation of business entities, public accountants, and corporate service providers.

The Accounting and Corporate Regulatory Authority (ACRA) is a statutory board under the Ministry of Finance of the Government of Singapore. ACRA is the regulator of business registration, financial reporting, public accountants and corporate service providers. ACRA is also responsible for developing the accountancy sector and setting the accounting standards for companies, charities co-operative societies, and societies in Singapore. ACRA fosters a vibrant and trusted business environment that enables innovation and growth and contributes towards making Singapore the best place for business. The Accounting and Corporate Regulatory Authority (ACRA) is the regulator of business registration, financial reporting, public accountants, and corporate service providers.

Accounting and Corporate Regulatory Authority

Additionally, if you choose to incorporate a company or set up a limited liability partnership (instead of registering a sole-proprietorship or partnership), your personal and business finances are separated. This means your personal liabilities are limited i.e. in case the business is sued, you are not in danger of losing your personal assets. Although payroll accountant salary guide directing the client to an attorney for advice may be the right answer, it may not always be the most popular. For more, read “Do I Really Need a New Engagement Letter for That? ACRA will continue to keep abreast of industry standards and strive to implement best practices where applicable, with respect to the way we manage personal data.

• However, some business owners may not be required to do so because they are exempted from registration.
• Although directing the client to an attorney for advice may be the right answer, it may not always be the most popular.
• This will build on their momentum and progress in climate reporting.

Such consultation is recommended in applying this material in any particular factual situations. The CTA is new, and how the CTA fits within the existing interpretation of the practice of public accountancy is unclear. In addition, accountants’ professional liability policies typically exclude coverage for actual or alleged criminal acts. Depending on the state, a UPL violation may be treated as a criminal matter. If a client suffers a loss that can be traced to CTA noncompliance, they may allege that the CPA failed to advise them.

Oh BOI: The Corporate Transparency Act and CPA firms

ACRA was formed as a statutory board on 1 April 2004, following the merger of the then Registry of Companies and Businesses (RCB), and the Public Accountants’ Board (PAB). ACRA is committed to promoting environmental sustainability and recognises that the way we deliver our service and perform our regulatory role has an impact on the environment. Receive our weekly REACH Bytes e-newsletter and be updated on the latest REACH events and public consultations. You must register a business if you are carrying out any activity for profit on an ongoing basis unless you are exempted (see below).

Accounting and Corporate Regulatory Authority Singapore 2024

We are also responsible for developing the accountancy sector and setting the accounting standards for companies, charities, co-operative societies, and societies in Singapore. The Accounting and Corporate Regulatory Authority (ACRA) is the regulator of business registration, financial reporting, public accountants and corporate service providers. ACRA’s role is to monitor corporate compliance with disclosure requirements and regulation of public accountants performing statutory audit.

Accounting and Corporate Regulatory Authority definition

Additionally, any person who, without authorization, knowingly discloses or uses beneficial ownership information (BOI) can be fined $500 per day (up to $250,000) and imprisoned for up to five years. In Singapore, only a public accountant or an accounting entity approved by ACRA may provide an audit opinion on financial statements. (e) To promote public awareness of the new business structures, compliance requirements, corporate government practices, and any other matter under the purview of the ACRA.

Responsibilities of ACRA

Answering one-off questions related to the CTA, if relied upon by a client, may not only result in bad or incomplete advice, but may also cross the line into the unauthorized practice of law, as discussed in the next section. Through its independent oversight of public accountants and accounting entities, ACRA enables a high degree of confidence in Singapore’s audited financial information. Mandatory climate reporting from FY2027 for Large Non-Listed Companies – Non-listed companies with annual revenue of at least $1 billion should make CRDs from FY2027. A review will be conducted in 2027 with the view to mandate climate reporting on Large Non-Listed Companies with revenue of at least $100 million, by around FY2030. The review will consider factors such as international developments, industry capacity and the implementation experience of Large Non-Listed Companies. Mandatory climate reporting from FY2025 for all Listed Issuers – Listed Issuers, including those incorporated overseas, business trusts and real estate investment trusts, should report CRDs from FY2025.

ACRA promotes a trusted and vibrant environment for businesses to thrive and flourish, and contribute towards making Singapore the best place for business. ACRA was formed on 1 April 2004 by the Accounting and Corporate Regulatory Act, which resulted in the merger of the then Registry of Companies and Businesses (RCB), and the Public Accountants’ Board (PAB). The merger was to synergise the monitoring of companies’ compliance with disclosure requirements,[3] and the regulation of public accountants performing statutory audit.

You have sole responsibility for your compliance with the CTA, including its BOI reporting requirements and the collection of relevant ownership information. We shall have no liability resulting from your failure to comply with the CTA. Information regarding the BOI reporting requirements can be found at fincen.gov/boi. Consider consulting with legal counsel if you have questions regarding the applicability of the CTA’s reporting requirements and issues surrounding the collection of relevant ownership information. Coverage for any claim asserted arising from CTA services will be evaluated based on the claim’s underlying facts, the insured’s policy language, and applicable state law at the time the claim is reported.

MINISTRY OF FINANCEACCOUNTING AND CORPORATE REGULATORY AUTHORITY

Prescribed standards aligned with the ISSB requirements for climate reporting – Both Listed Issuers and Large Non-Listed Companies should report CRDs using the local prescribed standards that mirror the requirements in the ISSB standards. To allow more time to prepare, these companies could opt to make certain complex CRDs such as Greenhouse gas Scope 3 emissions1 one/two years after reporting requirements kick in. Accountants have a limited grant to “interpret” tax law under Title 26 of the U.S. Code (the Internal Revenue Code) via Treasury Circular No. 230 and state accountancy statutes. It is unclear whether interpretation of CTA statutes, which are under Title 31 of the U.S. Depending on a client’s fact pattern, CTA compliance may require affected entities to obtain legal advice and analysis.