2008 - ISCA

Transcription

2008 - ISCA

A FUTURE OF GROWTH
IN A WORLD OF OPPORTUNITY
Annual Report 2007/2008
ABOUT ICPAS
Established in 1963, the Institute of
Certified Public Accountants of Singapore
(ICPAS) is the national accountancy body
that develops, supports and enhances
the integrity, status and interests of the
profession. The Certified Public Accountant
Singapore (CPA Singapore) is a professional
in accountancy, finance and business
who has the relevant work experience
in addition to a recognised accountancy
qualification. Today, ICPAS has over 19,000
members working and making their mark
worldwide, which makes the CPA Singapore
a designation with global recognition.
CONTENTS
i
iii
2
3
4
6
8
13
17
19
29
48
55
79
Notice of Annual General Meeting
Annual General Meeting Lunch Reply Form
The CPA Singapore Identity
Organisation Chart
President’s Message
ICPAS Council and Corporate Information
Minutes of Annual General Meeting 2006/2007
Report of the Council
Statistical Highlights
Year-in-Review
Committees Review
Technical Pronouncements – 31 December 2007
Financial Statements
Form of Proxy
ICPAS Annual Report 2007/2008
NOTICE OF ANNUAL GENERAL MEETING
Notice is hereby given that in accordance with Article 67 of the Constitution of the Institute, the Annual General Meeting
2007/2008 of the Institute of Certified Public Accountants of Singapore will be held on Saturday, 19 April 2008 at 2.00 pm,
at Marina Mandarin, Marina Mandarin Ballroom, Level 1, 6 Raffles Boulevard, Marina Square, Singapore 039594.
AGENDA
1 President’s address.
2 To confirm the minutes of the Annual General Meeting 2006/2007 of members held on 21 April 2007.
3 To receive the Report of the Council for the year 2007/2008 and Accounts of the Institute for the year ended 31 December 2007.
4 To elect eight members to the Council as follows:
(a) Practising members – four to hold office for a term of two years;
(b) Non-practising members – four to hold office for a term of two years.
The following members of the Council retire in accordance with the provisions of Articles 38 to 40 of the Constitution:
Practising Members Kan Yaw Kiong, Ernest
Khoo Ho Tong
Seow Teow Han, John
Yeoh Oon Jin
Nominations have been received for the following:
Non-Practising Members
Chan Yoke Kai
Loh Hoon Sun
Pang Yang Hoong
Wong Lai Yong
Practising Members Kan Yaw Kiong, Ernest
Khoo Ho Tong
Yeoh Oon Jin
Nominated by
Fang Ai Lian
Ho Mun-Tuke, Don
Kon Yin Tong
Lee Chee Wung
Sitoh Yih Pin
Lim Boon Cheng
Kan Yaw Kiong, Ernest
Khoo Ho Tong
Tan Ai Geok, Linda
Teo Pin Ghee
Tsang Siu For, Thomas
ii
Loh Hoon Sun
Pang Yang Hoong
Wong Lai Yong
Nominated by
Chan Yoke Kai
Quek Shi Kui
Tan Boen Eng
Yee Lat Shing
Yim Kam May
Ee Hock Kim, Gerard
Quek Shi Kui
Tan Boen Eng
Tan Eng Teng
Yee Lat Shing
Yim Kam May
By order of the Council
Janet Tan
Secretary
26 March 2008
ANNUAL GENERAL MEETING LUNCH REPLY FORM
INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS OF SINGAPORE
20 Aljunied Road #06-02 CPA House Singapore 389805 Tel: (65) 6749 8060 Fax: (65) 6749 8061
ANNUAL GENERAL MEETING LUNCH
Lunch will be served at 12.45 pm, followed by the Annual General Meeting at 2.00 pm. To assist the Secretariat in the lunch
arrangements, please return this reply form to the Institute by 11 April 2008.
I will be attending the AGM lunch on Saturday, 19 April 2008, at 12.45 pm, at Marina Mandarin, Marina Mandarin
Ballroom, Level 1, 6 Raffles Boulevard, Marina Square, Singapore 039594.
Member’s Name (in block):
I/C Number:
Membership Category:
*Honorary / Fellow / Practising / Non-Practising / Provisional / Member-in-retirement
Company:
Telephone Number: *(Office)/(Home)
E-mail address:
Date:
Please tick if *Vegetarian / Muslim menu is required
Note: The lunch menu will be ‘no pork, no lard’.
*Please delete where inapplicable.
NB: To avoid unnecessary costs to the Institute, please inform the
Secretariat at least 3 days before the function if you have
registered but are unable to attend the AGM lunch subsequently.
__________________________________
Signature
iii
Fold here
Stamp
20 Aljunied Road
#06-02 CPA House
Singapore 389805
Fold here
GROUNDED VALUES
Steeped in professional integrity and independence,
ICPAS ensures a solid foundation for all our members
to grow to their fullest professional competence.
THE CPA SINGAPORE IDENTITY
INTEGRITY
COMMITMENT
RATIONALE
This logo uses the idea of an “equal” or
“tally” sign, often used by accounting
professionals.
Incorporating it into the logo gives it a
sense of balance and wit.
The strokes on the symbol represent
the qualities that a CPA Singapore
(Certified Public Accountant Singapore)
possesses, which are Integrity,
Commitment, Professionalism,
Authority in their field and Superiority.
The first letter of each quality also make
up the acronym of ICPAS.
PROFESSIONALISM
AUTHORITY
SUPERIORITY
ORGANISATION CHART
ICPAS COUNCIL
Directorate
EXECUTIVE DIRECTOR
Communications
Finance & Administration
Information Technology
Membership Administration
& Registry
Membership Marketing
& Services
Practice Monitoring
Singapore Accountancy
Academy
Technical
Examination & Student
Registry
PRESIDENT’S MESSAGE
Dear Members,
I am happy to report a progressive year for the Institute.
In many aspects, ICPAS has forged ahead in attaining our
strategies to advance the profession and build recognition
of Certified Public Accountant Singapore (CPA Singapore).
As the inner section of this Report shows, we continue to
invest substantially in the development of the profession.
Throughout 2007, the Institute has organised countless
seminars, talks and courses on topical and relevant
subjects for practising and non-practising members to
continually upgrade and update themselves. Members also
received constant updates on accounting and auditing
standards as well as industry updates through our regular
communications channel, be it the weekly ePublication, the
bi-monthly Singapore Accountant journal, ad-hoc email
broadcasts and so forth.
Part of our commitment is to provide the necessary
resources and infrastructure to create a vibrant and
conducive learning environment for our members and
students, to foster a suitable environment and cultivate the
passion for lifelong learning. As such, we officially opened
our Singapore Accountancy Academy (SAA) City Campus
right in the heart of the central business district on 24 April.
The purchase of the property is timely. Besides meeting the
growing need for space, the new facility also enables the
Academy to expand its provision of Continuing Professional
Education courses to members.
ICPAS has also accredited the University of London’s BSc
Accounting & Finance degree, enabling graduates to apply
for ICPAS Professional Examniation and eventually attain the
“CPA Singapore” designation. With SAA’s accomplished track
record of 22 years in providing quality academic and technical
training together with the strong team of experienced UOL
lecturers, we are confident that this programme will put our
graduates at a competitive advantage.
To increase our international footprint, we made
significant progress through partnerships with other
professional associations to create learning and career
advancement opportunities for our members.
Our recent survey indicates strong brand awareness, with a high of 97%
indicating that they have seen or heard about ICPAS and CPA Singapore
in the past year. Clearly we have made great strides over the last year
in heightening the profile of CPAs Singapore and ICPAS. Our aggressive
brand communications programs in 2007 highlighted the depth and
breadth of the skills CPAs Singapore possess. In addressing the shortage of manpower in the accounting
profession, the Institute partnered with industry leaders
to hold a career exhibition on 19 September. Through this
exhibition, we connected many potential employees with
leading industry firms such as Chio Lim Stone Forest, Deloitte,
Ernst & Young, Foo Kon Tan Grant Thornton, KPMG and many
others, to generate interest in the accounting career.
We are seeing good results in our membership growth targets
through our renewed accreditation process, alternative
channels to the designation, and dual-designation programs,
such as the ACCA/ICPAS Joint Examination Scheme. As a
result, our membership has grown by close to 6% to 19,168
members in 2007.
To increase our international footprint, we made significant
progress through partnerships with other professional
associations to create learning and career advancement
opportunities for our members. During the year, we signed
memorandum of co-operations (MOC) with the Vietnam
Association of Certified Public Accountants (VACPA),
Cambodia’s National Accounting Council and Kampuchea
Institute of Certified Public Accountants and Auditors
(KICPAA). ICPAS members can now practise in Vietnam and
Cambodia provided they meet the requirements of VACPA
and KICPAA respectively. With these MOCs in place, we are
looking to the promotion of the bilateral friendship and
multifaceted cooperation, especially in the area of training
and professional development activities for the mutual
benefit of both parties’ members.
The newly launched UOB ICPAS Professionals Platinum
Card fulfills our promise to continually promote greater
recognition of the accounting professionals and to offer
value to our members. Throughout 2007, we have put
together a variety of lifestyle programmes to encourage
work-life balance and an all-rounded development for
our members. The myriad of activities ranges from public
speaking to sports and provides opportune networking
platform for participants too.
Responses from our recent survey indicates strong brand
awareness, with a high of 97% indicating that they have
seen or heard about ICPAS and CPA Singapore in the past
year. Clearly we have made great strides over the last year
in heightening the profile of CPAs Singapore and ICPAS.
Our aggressive brand communications programmes in
2007 highlighted the depth and breadth of the skills CPAs
Singapore possess. Whether employers are looking at
growing a successful business, or individuals are looking
at strengthening their professional credentials, we have
impressed upon both target audiences that “All it takes is
CPA Singapore”. Together with our active public relations,
the CPA Singapore and ICPAS were constantly seen and
heard across the media all through the year.
As the voice of the profession, the Institute continues to
raise appropriate concerns and feedbacks to the regulatory
bodies as well as stakeholders.
ICPAS will continue to invest in future sources of growth. Be
it technology, business model, strategy, processes, we will
prepare the Institute for growth and leadership and work
towards being a globally recognised leading accountancy
body.
Lastly, I would like to thank my fellow Council members
as well as our Committee members who have given their
precious time and contributed to the Institute throughout
the year. I am also grateful to our members for their
continuing and unfailing support. I would also like to thank
the staff and management team for their hard work in the
past year.
TAN BOEN ENG
President
ICPAS COUNCIL 2007/2008
FRONT ROW (FROM LEFT):
2ND ROW (FROM LEFT):
BACK ROW (FROM LEFT):
Dr Kan Yaw Kiong, Ernest (Vice-President)
Mr Tan Boen Eng (President)
Mr Khoo Ho Tong (Treasurer)
Mr Seow Teow Han, John
Mr Yeoh Oon Jin
Mr Tom Yee Lat Shing
A/Prof. Pang Yang Hoong
Ms Janet Tan (Executive Director)
Mr Don Ho Mun-Tuke
Ms Wong Lai Yong
Mr Loh Hoon Sun
Mr Lee Chee Wung
Ms Yim Kam May
Mr Quek Shi Kui
Mr Sitoh Yih Pin
NOT IN PICTURE:
Prof. Chan Yoke Kai, Mrs Fang Ai Lian, Mr Kon Yin Tong, Mr Danny Teoh, Prof. Yeo Hian Heng, Gillian
CORPORATE INFORMATION
THE COUNCIL
Tan Boen Eng – President
Kan Yaw Kiong, Ernest – Vice-President
Khoo Ho Tong – Treasurer
ELECTED TO REPRESENT PRACTISING MEMBERS
ELECTED TO REPRESENT
NON-PRACTISING MEMBERS
Fang Ai Lian
Ho Mun-Tuke, Don
Khoo Ho Tong
Kon Yin Tong
Seow Teow Han, John
Sitoh Yih Pin
Yeoh Oon Jin
Chan Yoke Kai
Loh Hoon Sun
Pang Yang Hoong
Quek Shi Kui
Tan Boen Eng
Wong Lai Yong
Yee Lat Shing, Tom
Yim Kam May
APPOINTED UNDER ARTICLE 27 OF THE ICPAS CONSTITUTION
Yeo Hian Heng, Gillian (appointed on 22.04.2006)
CO-OPTED UNDER ARTICLE 28 OF THE ICPAS CONSTITUTION
Lee Chee Wung (appointed on 01.01.2008)
Teoh Leong Kay, Danny (appointed 22.04.2006)
SECRETARY/EXECUTIVE DIRECTOR
Janet Tan
AUDITORS
Baker Tilly TFWLCL
TeoFoongWongLCLoong
15 Beach Road, #03-10 Beach Road
Singapore 189677
REGISTERED AND ADMINISTRATIVE OFFICE
20 Aljunied Road, #06-02 CPA House
Singapore 389805
Telephone : (65) 67498060 Facsimile : (65) 67498061
E-Mail : cpasingapore@icpas.org.sg
Website : www.icpas.org.sg
MINUTES OF ANNUAL GENERAL MEETING 2006/2007
Date:
Time:
Venue:
Saturday, 21 April 2007
2.00 pm
Mandarin Ballroom
6th Floor, South Tower
Meritus Mandarin Singapore
333 Orchard Road, Singapore 238867
TOTAL NUMBER OF MEMBERS PRESENT
Practising members:
Non-practising members:
Provisional members:
61
259
25
345
Chairman and President:
Mr Tan Boen Eng
Secretary:
Ms Janet Tan
1. NOTICE OF MEETING
The notice of meeting, having been circulated to members before the meeting, was taken as read.
2. PRESIDENT’S ADDRESS
The Chairman began his address by welcoming all members present at the Institute’s Annual General Meeting
2006/2007. He then proceeded to update the meeting on the Institute’s activities for the past year.
SIGNIFICANT DEVELOPMENTS AND ISSUES
Technical Committees
The Chairman reported that the Institute held several technical seminars through the various technical committees and
technical group discussions on topical issues for its members. The seminars provide members with the opportunities to
update their technical knowledge while the discussions allow members to come together to discuss with one another
practical issues encountered in the course of their work.
The Institute’s Accounting Standards Committee continued to play a critical role in working with the Council on
Corporate Disclosure and Governance (CCDG) in reviewing new accounting proposals and setting accounting standards.
He also highlighted that the Institute is planning a seminar on the exposure draft (ED) on Financial Reporting Standards
for Small and Medium-Sized Entities, which was issued by CCDG in March 2007. The ED was based on the ED of the same
title issued by International Accounting Standards Board (IASB).
The Chairman updated that the Institute has also released a revised edition of the “Audit Manual for Small Companies” in
March. The manual incorporated documentation required to enable compliance with the latest Singapore Standards on
Auditing. The publication is on sale at ICPAS and comes with a complimentary CD-ROM version.
The Chairman reported that two new committees namely, the CFO Committee and the Young Accountants Group
Committee were formed in 2006 to provide platforms for members to exchange views and share ideas.
Membership Services
The Chairman updated that a new Membership Marketing and Services Division was set up. The new Division has
arranged exclusive discounts through various tie-ups with merchants, as well as activities to engage members and
enhance membership value. The Division is also responsible for promoting and marketing the ICPAS membership.
“CPA Singapore” Branding
He further updated that the Institute embarked on a branding campaign in 2006 to create awareness of the CPA
Singapore brand and to elevate the image of accountants.
To further publicise the CPA Singapore brand as well as to promote accountancy as a career, the Institute also
commissioned a two-part television program, entitled Strength in Numbers, on Channel NewsAsia in October.
Singapore Accountancy Academy
The Chairman reported that the Institute purchased the entire 23rd floor of 6 Raffles Quay for its SAA City Campus,
following favourable feedback for SAA to have a centrally located campus for the convenience of working adults.
CPA Forum
The Chairman also invited members to sign up for the CPA Forum, which ICPAS jointly organises with CPA Australia
annually. This year, the theme of the forum is “Connecting Asian Economies” and it is scheduled on 17 and 18 August.
Going Forward
The Chairman commented that in moving forward, the Institute will continue to strategise on how to grow its
membership and find innovative ways to create and increase membership value. He invited members to come forth with
suggestions on ways to improve service.
Conclusion
The Chairman acknowledged the contributions of the Council and Committee members in the past year, with special thanks
to retiring Treasurer, Mr John Seow. He also thanked members for their support and for taking time off to attend the AGM.
3. CONFIRMATION OF THE MINUTES OF THE ANNUAL GENERAL MEETING 2005/2006
3.1
The minutes of the Annual General Meeting (AGM) 2005/2006 held on 22 April 2006, having been circulated to all
members were taken as read.
3.2
On the proposal of Mr Tan See Peng and seconded by Ms Yim Kam May, the minutes of the AGM 2005/2006, were
approved.
3.3
The Chairman then polled the members present on the confirmation of the minutes. From the poll results, the
Chairman declared that the minutes had been confirmed.
4. ANNUAL REPORT AND ACCOUNTS 2006/2007
4.1.1
The Chairman referred the members to the Annual Report of the Council for the year 2006/2007 and the Accounts
for the Institute for the year ended 31 December 2006 and invited comments from the members present.
4.1.2
Mr Mubarak Abdat Salim commented that the presentation of the Annual Report is getting more impressive over
the years. It has more useful information to members and is keeping up with the trends. He queried whether
the presentation of the Balance Sheet on page 68 was in line with generally accepted accounting principles.
In relation to the two signatures of the President and the Treasurer, he asked what exactly did they mean. He
commented that this could be opened to various interpretations. He was not sure why it was not in line with the
disclosures found in the annual report of other associations or professional bodies. He was of the view that there
should be a separate attestation by the President and the Treasurer, signing on behalf of the Council, that the
Institute’s financial statements are true and fair. He needed to clarify why the Institute was still sticking to this
age-old practice.
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4.1.3
The Treasurer addressed Mr Salim’s query and commented that he was correct in saying that the signature was
an age-old practice. However, he mentioned that the Registry of Societies does not have a requirement for a
separate attestation statement, different from the Companies Act. Mr Salim’s point was therefore noted and
the Treasurer believed the next Treasurer would revise the presentation approach in next year’s annual report
if considered necessary. On Mr Salim’s comment that many associations have upgraded and have a different
attestation format in their annual reports, the Treasurer replied that to his knowledge, many of them still follow
the same practice.
4.1.4
The Vice-President added while the point was noted, the practice has complied with the requirement of the
regulations. As for his point as to whether it has complied with the generally accepted accounting principles in
Singapore, he mentioned that this is not an accounting practice issue. If the concern is whether the Council takes
responsibility for the set of financial statements, the answer is yes. And this is further reiterated in the auditor’s
report that states the responsibility of the Council.
4.1.5
Mr Tan See Peng commented that on the matter of accounting standards, he noticed two anomalies now in
applying the standards to the local scene. He pointed out that international standards should not be blindly
applied to our local practice. He quoted two instances. Firstly, the requirement of showing the audit fees in a
listed company. Nowadays one does not have to show the regular audit fees but only need to show the nonaudit fees. The intention, presumably, is to show the independence of the auditors. However, if the statutory
audit fees are not shown, as compared to non-audit fees, he questioned how one would know if the auditors
were truly independent. Secondly, with regards to FRS 40, one has to show the fair value of the investment
property. He came across one company, which engages in the hotel and property businesses, where out of the
profit before tax of $120mil, $55.7mil comes from the fair value adjustment of the investment property, which
has to be shown. However he thinks the $55.7mil is not realised as the company has not disposed of the asset.
Therefore showing it as part of the earnings of the company is very misleading. The management had also
admitted as such. He mentioned there should be a footnote to say the amount is not realised. However, FRS
40 required it to be shown as earnings. Mr Tan therefore pointed out that perhaps the Accounting Standards
Committee could look into this matter and advise on the application of such standards.
4.1.6
The Vice-President thanked Mr Tan for his interesting questions on accounting standards. He replied that this
was beyond the scope of the AGM. However, his two suggestions are noted by the Institute and the Accounting
Standards Committee could consider this matter. On the issue of whether we should take the cost approach
versus the valuation approach on FRS 40 and if one should blindly follow the IASB standards, he noted that the
Council on Corporate Disclosure and Governance, which is the standard setting body for accounting standards
in Singapore, has taken the approach to align the Singapore standards to international standards. As to whether
they have been applied blindly, it is a matter of perception.
4.1.7
Mr Mubarak Abdat Salim clarified on his earlier point that he was not referring to any compliance nor accounting
standards about the attestations. The general principle of an attestation is to require the Council to take
responsibility and to testify that the financial statements that they have prepared are true and fair. Mr Salim then
went on to query about the Members’ Satisfaction Survey 2006 response rate in terms of absolute numbers and
percentage. If the response is low, he asked if the survey is then effective.
4.1.8
The Vice-President replied that all members have been given a chance to provide their feedback through the
survey. Based on the data, 10% of the members responded to the survey. Further, in any survey, respondents
normally provide constructive comments. As to whether the 10% response rate is good or otherwise, it is a
question of the acceptability level. The Institute certainly hopes to have a higher response rate and is targeting a
20% response rate for the next survey. However, he would leave it to members to assess if this is representative
and if 10% is good enough. He encouraged more members to come forward and respond to the next survey.
4.1.9
Mr Mubarak Abdat Salim also pointed out that some of the survey questions are not easily understood. He was
one of the respondents and had a hard time completing the survey. If respondents are doubtful about certain
questions and did not know how to respond appropriately, the answers may not be coherent to the questions in
the survey and the subsequent results may not be conclusive.
4.1.10 The Executive Director replied that his point is noted and indicated that moving forward, the Institute would
review the questions and make it more user-friendly and easier for members to complete. On the other hand, if
members need clarification while completing the survey, they could call the Institute to clarify.
4.1.11 The President added that the Institute also welcomes suggestions from members on how to improve the survey
forms so as to make it easier for members to respond.
4.1.12 As no further matters were raised, the Annual Report of the Institute for the year 2006/2007 and the Accounts
of the Institute for the year ended 31 December 2006 have been received by the meeting, upon proposal by Mr
David Phua Puay Heng and seconded by Mr Jerry Lee.
5. ELECTION OF COUNCIL MEMBERS
5.1
The Chairman informed the meeting that the following members of the Council had retired in accordance with
the provisions of Articles 38 to 40 of the Constitution:
Practising Members
Fang Ai Lian
Ho Mun-Tuke, Don
Kon Yin Tong
Sitoh Yih Pin
As only four nominations each had been received in respect of the Practising Members and Non-practising
Members, the four Practising Members and four Non-practising Members were deemed to be duly elected
members of the Council for a two-year term as from this Annual General Meeting in accordance with Article 23 of
the ICPAS (General Meetings) Rules. They were:
5.2
Practising Members
Fang Ai Lian
Ho Mun-Tuke, Don
Kon Yin Tong
Sitoh Yih Pin
Quek Shi Kui
Tan Boen Eng
Yee Lat Shing, Tom
Yim Kam May
Quek Shi Kui
Tan Boen Eng
Yee Lat Shing, Tom
Yim Kam May
6. TERMINATION OF MEETING
In conclusion, the Chairman cited Rule 6 of the ICPAS (General Meetings) Rules, which provided that no motion shall
be discussed at any Annual General Meeting of the Institute unless the required notice of 14 days was given. As the
Secretariat had not received any such notice, and as all items on the agenda had been dealt with, the meeting was
formally declared closed at 2:50 pm.
Signed as a correct record
Chairman
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GLOBAL NETWORK
Our international network of contemporaries and
partners connects ICPAS globally and opens doors of
opportunities to all members.
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REPORT OF THE COUNCIL
The Council has pleasure in presenting its 2007/2008 Annual Report and Accounts of the Institute for the year ended
31 December 2007.
At the first Council meeting held on 21 April 2007, the following Council members were elected as office bearers:
President
Vice-President
Treasurer
-
-
-
Tan Boen Eng
Khoo Ho Tong
THE COUNCIL
The 2007/2008 Council held ten ordinary meetings from 21 April 2007 to 29 February 2008. The number of Council meetings
attended (A) and the number of committees on which each Council member served (B) are given below:
Chan Yoke Kai
Fang Ai Lian
Ho Mun-Tuke, Don
Khoo Ho Tong
Kon Yin Tong Lee Chee Wung
Loh Hoon Sun
Pang Yang Hoong
Quek Shi Kui
A
6
5
8
9
7
3
6
8
6
8
B
1
Seow Teow Han, John
3
Sitoh Yih Pin
3
Tan Boen Eng
10
Teoh Leong Kay, Danny
8
Wong Lai Yong
4
Yee Lat Shing, Tom
5
Yeo Hian Heng, Gillian
3
Yeoh Oon Jin
2
Yim Kam May
3
A
7
3
10
3
10
8
7
7
10
B
5
4
10
1
5
3
3
3
3
MANPOWER AND TRAINING
4 new positions were created in the Secretariat and the Academy to enhance the Institute’s services in areas of IT, Courses
and Professional Examinations. The total staff strength of the Institute as at February 2008 stood at 81.
In line with the Institute’s goal to improve customer service and communications, staff attended training in leadership
management, assertiveness & conflict management and team building throughout the year.
SINGAPORE ACCOUNTANCY ACADEMY
With its dedicated focus on quality education, the Singapore Accountancy Academy (SAA) has delivered results that speak for
itself in 2007. Since the Academy moved into its own premise at 6 Raffles Quay, the facilities of the City Campus have been well
utilised by members and students alike. Located at the central business district, the City Campus is poised to reach out to more
working adults for its various programmes. Already, many members attending CPE classes there have commended on the
convenience of the new location.
SAA has also expanded its portfolio of courses with the launch of the University of London degrees courses with majors in
Accounting & Finance, Banking & Finance, and Management. To date, over 200 students have taken up these programmes
and enrollment is expected to increase.
Another landmark achievement is the commencement of the Business Analytics & Reporting (BAR) programme. The aim
of this ICPAS certified computer-based training course is to enable accounting professionals to leverage on infocomm
technologies to make strategic and timely financial decisions using commonly available software. The course is funded and
supported by the Infocomm Development Authority (IDA).
14
Another noteworthy highlight is that the revamp of the lectures and addition of tutorials have helped to boost the overall
passing rate for the ICPAS/ACCA Examinations. For this feat, the SAA has been accorded “Platinum Status” by ACCA UK in
recognition of its good passing rates.
In 2007, the SAA has also broken new grounds in attracting international students from new markets. There were about 160
new students from Myanmar enrolled with SAA. Although the recent political unrest in Myanmar may affect the January 2008
student intake, the Academy is confident that this new market has the potential to recruit more students in time to come.
The SAA will continue its efforts to strengthen its foothold as a premier accountancy academy in the region.
INTERNATIONAL RELATIONS
The Institute hosted the following visits in 2007:
8 Jan Accounting Department, Petra Christian University, Indonesia
Members of Delegation
11 Jan
CPA Australia
Mr Geoff Rankin, Chief Executive
Mrs Ann Johns, Director of Education and Membership
1 Feb
The Chartered Institute of Management Accountants
Ms Judy Vulker, Project Director, Asia Pacific
12 Mar
The Chartered Institute of Management Accountants
Mr John Coghlan, President
14 Mar
The Institute of Chartered Accountants in Australia
Mr Rob DiMonte, President
Mr Graham Meyer, Chief Executive Officer
26 Mar
The Institute of Chartered Accountants in England and Wales
Dr Raymond Madden, Executive Director, Learning & Professional Development
10 Apr
Malaysian Institute of Accountants
Mr Choong Shin Cheong, Roland, Chairman (Johor Branch)
Mr Chuah Soon Guan, Head, Continuing Professional Education
Mr G. Shanmugam, Manager, Continuing Professional Education
Ms Chan Hua Seng, Manager (Johor Branch)
25 Apr
Mongolian National Audit Office
Mr Javzmaa Lkhamsuren, Auditor General of Mongolia
Mr Ch. Nasanbat, General Auditor
Ms Nurzed Lkhagvasuren, International and Public Relations Officer
25 May
India’s Karnataka State Chartered Accountants Association
12 Jun Beijing Municipal Audit Bureau
12 Jul The Association of Chartered Certified Accountants
Mr Allen Blewitt, Chief Executive
22 Aug
Association of Government Accountants of the Philippines (AGAP), Inc.
30 Aug
The Institute of Chartered Accountants of India
Mr Sunil Talati, President
5 Sep
The Institute of Chartered Accountants in England & Wales
Mr Richard Dyson, President
Mr Raymond Madden, Executive Director of Learning & Professional Development
Ms Elaine Hong, International Development Manager of Learning & Professional Development
TECHNICAL MATTERS
Accounting
During the year, the Institute’s Accounting Standards Committee (ASC) continued to play a pivotal role in working with the
Council on Corporate Disclosure and Governance (CCDG) to review new accounting proposals and setting accounting standards,
i.e. Financial Reporting Standards (FRSs). The FRSs are virtually converged with International Financial Reporting Standards
(IFRSs) and International Accounting Standards (IASs) issued by the International Accounting Standards Board (IASB).
The Accounting Standards Act was passed in Parliament on 27 August 2007 and the Act came into effect on 1 November
2007. With the enactment of the Accounting Standards Act, the Accounting Standards Council took over the task of
prescribing accounting standards from the CCDG.
Details of the contributions of the Committee can be found in the Committee’s report on page 29 of the annual report.
Auditing
The Institute’s Auditing and Assurance Standards Committee (AASC) continued to review and issue auditing promulgations.
Auditing standards known as Singapore Standards on Auditing (SSAs) and audit practice statements known as Statements
of Auditing Practice (SAPS) are harmonised with international equivalent International Standards on Auditing (ISAs) and
International Auditing Practice Statements (IAPSs) respectively issued by the International Auditing and Assurance Standards
Board (IAASB) of the International Federation of Accountants (IFAC). The AASC also issues Audit Guidance Statements (AGSs)
as best practice statements to provide assistance to auditors on matters of relevance not covered by SSAs or SAPs. The list of
auditing standards and exposure drafts approved by the Institute’s Council on the recommendations of the AASC during the
year, can be found in the Committee’s report on pages 32 - 34 of the annual report.
Statements of Recommended Accounting Practice
The Institute approved the following revised Statement of Recommended Accounting Practice (RAPs) during the year:
- Revised Auditors’ Report in Appendix 1 and 2 of RAP 7 Reporting Framework for Unit Trusts
ACKNOWLEDGEMENT
The Council would like to thank all members who have actively supported the Institute’s activities and programmes during
the year. The Council would like to commend the chairmen and members of the various committees for their valuable
contributions and dedicated service to the Institute.
15
STATISTICAL HIGHLIGHTS
Activities
No. of Committees
No. of Meetings
Publications of the Institute
Courses and Talks
Conferences 2005
33
67
20
244
1
2007
35
68
22
335
1
2006
35
74
18
318
1
Membership
No. of Members
17,328
18,143
19,168
Total Subscriptions
$2,434,760
$2,534,130
$2,645,770
Total Secretariat’s Expenses
$3,125,387
$3,280,091
$3,648,805
1
Average Subscription per Member $141
$140
$138
Average Expense per Member1
$180
$181
$190
$13,270,8522 $16,905,2902
Total revenue
$12,716,9652
Total expenses $9,562,7302
$11,336,3472
$13,260,8322
Share of profit of associates (net of tax)
-
$41,5682
$38,8582
Income tax expenses $793,5712
$438,0092 $658,8362
Total surplus for the year $2,360,6642
$1,538,0642 $3,024,4802
1
This is based solely on members’ subscriptions and does not take into account other sources of income
2
Consolidated figures 2006
2007
2005
2006
2007
$3,024,480
2005
$1,538,064
$2,360,664
$13,270,852
$41,568
$16,905,290
2005
Total Surplus of the year
$38,858
Share of Profit Associates
(Net of Tax)
Total Revenue
$12,716,965
16
2006
2007
FUTURE GROWTH
ICPAS continues to develop and actualise dynamic,
forward-looking initiatives to advance the accountancy
profession in Singapore and around the world.
18
YEAR-IN-REVIEW
CONTINUING PROFESSIONAL EDUCATION
•
In the past year, the Institute continued to provide the tools
for career growth and development through our myriad of
continuing professional education courses, technical
seminars and conferences.
Practical Insights: ICPAS Audit Manual for Small
Companies seminar
•
Sarbanes-Oxley (SOX) Compliance Update: Impact
of Changes on Business & IT Audit, and Governance
seminar
•
ICPAS/Singapore Institute of Taxation Limited (SIT):
Seminar on Updates on Recent Tax Case Law
•
Forum on the Exposure Drafts of the ICPAS and ACRA
Codes
•
Business Analytics and Reporting (BAR) Conference
•
Observations by the Financial Statements Review
Committee seminar
•
Seminar and Panel Discussion on Audit Committees
•
Seminar on Anti-Money Laundering and Anti-Terrorism
Financing
•
Seminar on Recent Court of Appeal Cases
Seminars / Forums / Conferences
• ICPAS/Insolvency Practitioners Association of Singapore
Limited (IPAS): Maximising Value Through Restructuring
seminar
•
Financial Reporting Responsibilities & Expectations and
the Proposed SME Accounting Standards seminar
•
ICPAS/Accounting and Corporate Regulatory Authority
of Singapore (ACRA): Preparation and Filing of Financial
Statements in XBRL seminar
•
ICPAS/National Council on Social Services (NCSS): RAP 6
Accounting and Reporting By Charities Forum
•
•
Public Accountants Conference 2007 (organised by the
Accounting and Corporate Regulatory Authority with
ICPAS as the strategic partner)
CPA Forum 2007 (jointly organised by ICPAS and CPA
Australia)
YEAR-IN-REVIEW
Continuing Professional Education (CPE)
• Close to 270 CPE seminars and 12 CPA Dinner Talks were
held in 2007.
•
CPE Training Directory Goes Online
Members can now conveniently register, make payments
for seminars, plan and manage their CPE calendar online.
ICPAS continues to provide the
tools for career growth and
development through our myriad
of continuing professional
education courses, technical
seminars and conferences.
19
20
YEAR-IN-REVEIW
VOICE OF THE PROFESSION
The Institute works with all our stakeholders, including
government decision makers, employers, the media and
the general public to generate awareness about the
accountancy profession.
Over the past year, the Institute has been working closely
with the now defunct Council on Corporate Disclosure and
Governance, which has been replaced by the Accounting
Standards Council, in reviewing new accounting exposure
drafts and setting accounting standards.
During the year, the Institute’s Council, on the
recommendation of the Auditing and Assurance Standards
Committee, approved 13 auditing pronouncements.
The Asean Federation of Accountants (AFA) Council quarterly
meetings were attended by the Institute’s representatives on
the AFA Council: Mr Tan Boen Eng, Dr Ernest Kan, Mr Khoo Ho
Tong and Mr John Seow, who is also AFA’s Treasurer. The last
AFA Council Meeting in Jakarta, was held in conjunction
with the 92nd AFA Conference in December. Dr Ernest Kan
and Mr Lucas Tran who represented the Institute at this
conference, which focused on the dynamic roles of
accountants in corporate governance, were speakers as well.
The Institute was also proud to be the partner organisation
for the Singapore Corporate Awards (SCA), an annual event
that honours exemplary of companies and individuals that
have helped to raise Singapore’s standard of corporate
disclosure and governance.
ICPAS also jointly organised a CFO Roundtable with Robert
Half in September. The Roundtable provided a platform
for finance and accounting professionals to discuss the
challenges Singapore businesses face in building a finance
team amid today’s changing workforce.
We also played a pivotal role in influencing policy makers on
behalf of members by actively engaging in dialogue sessions
with various government institutions and industry regulators:
•
On 6 March, the Public Accounting Practice Committee
had a dialogue session with the Ministry of Community
Development, Youth and Sports (MCYS) to explore possible
assistance from our members to complement their efforts
in setting up a business framework for social enterprises.
•
On 28 March, the Public Accounting Practice Committee
had a dialogue session with the Accounting and
Corporate Regulatory Authority (ACRA) and provided
information on our members’ operational needs for
ACRA’s proposed membership portal.
•
On 25 April and 24 October, the Institute and various
professional bodies participated in dialogue sessions
with ACRA to update on the upcoming activities and
recent initiatives by ACRA.
YEAR-IN-REVIEW
Acting as the voice
of the profession,
the Institute actively
participates in
meetings and
dialogues to
advocate for the
profession and its
members.
•
On 12 June, representatives of the Auditing and
Assurance Standards Committee had a dialogue session
with the MCYS to discuss and clarify certain issues
pertaining to the audits and regulations concerning
Institutions of a Public Character (IPC) / charities.
•
On 5 September, representatives of the Auditing and
Assurance Standards Committee had a dialogue session
with the Inland Revenue Authority of Singapore (IRAS) to
discuss proposed revisions to the IRAS sample auditor’s
reports found in Audit Guidance Statement 1 (AGS 1)
Sample Auditor’s Reports.
•
On 7 September, representatives from the Institute had
a dialogue session with the Financial Action Task Force
(FATF) assessors at the Monetary Authority of Singapore
(MAS) to discuss how the accountancy profession
has implemented FATF principles to combat moneylaundering (ML) and terrorism financing (TF).
•
On 17 January and 12 November, representatives of
the Auditing and Assurance Standards Committee had
dialogue sessions with the Central Provident Fund Board
(CPF Board) to touch base and share observations in the
audits of the product and service providers and on the
changes pertaining to the sales charge and expense ratio
caps under the CPF Investment Scheme (CPFIS).
•
On 1 November, representatives of the Banking and
Finance Committee had a dialogue session with the
Monetary Authority of Singapore to discuss several
issues including Basel II Implementation in Singapore,
Collective Impairment under MAS Notice 612, CDO
issues and market trends.
•
ICPAS also had quarterly dialogues with ACRA to discuss
issues of concern and touch base on developments.
21
22
YEAR-IN-REVEIW
The Institute charted
new frontiers
through the signing
of memorandum of
co-operations with
overseas accountancy
bodies.
INTERNATIONAL RECOGNITION
To increase our international footprint, we signed memorandum of co-operations
(MoC) with the Vietnam Association of Certified Public Accountants (VACPA) in
June and with Cambodia’s National Accounting Council and Kampuchea Institute
of Certified Public Accountants and Auditors (KICPAA) in September. ICPAS
members can now practise in Vietnam and Cambodia provided they meet the
requirements of VACPA and KICPAA respectively. These MoCs enhanced mutual
cooperation between the parties as well as the promotion of the common
advancement of the accountancy profession in the countries.
We have also been working closely with the Chinese Institute of Certified Public
Accountants (CICPA) to ink an agreement of co-operation in the first half of 2008.
The scope of co-operation would be in the areas of mutual recognition of
continuing professional education and training.
YEAR-IN-REVIEW
BRINGING VALUE TO MEMBERS
In order to keep up with the ever-expanding role of
accounting professionals, the Institute continued to look
for ways to support members innovatively that will help
to enhance their well-being too. The Institute also helped
to set up opportunities for members to interact and build
worthwhile business contacts through networking and
social activities.
Benefits & Privileges
• Introduction of the UOB-ICPAS Professional Platinum Card
•
Close to 100 dining, shopping and personal grooming
offers from popular merchants
•
Complimentary makeover sponsored by jeweller,
Coulisse, for ICPAS Annual Dinner & Dance
•
Launch of the Membership Privileges and Services online
portal to facilitate the access of these perks by using
their e-Membership card
•
Electronic birthday card that entitle members to
exclusive vouchers
Social and Networking
• Over 80 events including fashion and grooming
workshops, culinary & sporting classes, fengshui talks
and personal development seminars, networking
evenings and movie screenings
•
Welcome receptions at the City Campus for new members
•
ICPAS Annual Dinner & Dance 2007 – “A Musical
Extravaganza”
•
Speechcraft 2007
•
CPA Games 2007
23
24
YEAR-IN-REVEIW
ICPAS improved the value
it provides to its members
through privileges
programme tie-ups as well
as social and networking
activities.
MEMBERS PROMOTION
The Institute is committed to developing, supporting and enhancing the
CPA Singapore designation, which provides our members with the
professional recognition, status and prestige they deserve. Attracting new
members is vital to the continued growth of the Institute. Thus a series of
marketing and branding initiatives were deployed throughout the year
to position the CPA Singapore as the designation of choice for both
employees and employers.
Branding the CPA Singapore designation
A series of print advertisements featuring the key messages of
“Strengthening Your Professional Credentials”, “Growing a Successful
Business” and “All it takes is CPA Singapore” appeared in media such as The
Business Times, The Straits Times and Today. We also explored new media
such as the Internet by putting up interactive web banners and advertorial
in Channel NewsAsia.
YEAR-IN-REVIEW
Positioning the CPA Singapore brand as
the designation of choice among the
various stakeholders is a key strategy
for the Institute’s future growth.
To reach out to our target audiences more effectively, we
also placed the advertisements at strategic locations such
as the City Hall MRT boarding platforms and on buses that
ply the central business districts, tertiary institutions and
town areas.
More publicity for the CPA Singapore designation was
generated through the CPA Forum’s publicity.
The Institute was also constantly seen and heard across
all media through interviews and soundbites given by
prominent ICPAS representatives and CPAs Singapore.
A survey conducted at the end of 2007 also revealed very
strong brand awareness of ICPAS and CPA Singapore.
Similarly, the brand recall was high with more than half
of the respondents indicating that they have seen the
advertisements and over 80% of them could recognise
the correct visual and message.
Marketing the CPA Singapore designation
To market the CPA Singapore designation to accountancy
graduates, the Institute has worked closely with the
Nanyang Technological University (NTU) and Singapore
Management University (SMU) Accountancy Alumni & Career
Centres. For example, the Institute held CPA Singapore
Career Talks at NTU to explain how the professional
designation could help them in their career.
We also launched a direct mailing campaign for the CPA
Singapore prospectus to target the ICPAS-ACCA Joint Scheme
graduates, SMU Accountancy Alumni & NTU Accountancy
Alumni. The Institute also contributed an article relating to
ICPAS membership and CPA Singapore to the SMU
Accountancy website (SoAR).
The inaugural ICPAS Day held on 19 September at Suntec
City featured a career exhibition, which connected over
1,000 participants, most of whom are ICPAS members to
accountancy and recruitment firms.
The Institute also tied up with recruitment specialists
Kerry Consulting, Robert Half International and Robert
Walters to run regular sessions of career development talks
for ICPAS members.
Last year also saw the introduction of the Associate (ICPAS)
designation for provisional members who have yet to meet
the criteria of the full membership.
25
YEAR-IN-REVEIW
Membership Growth
2005
18,143
19,168
The membership promotion efforts have paid off as we see an increase in membership
growth rate at close to 6% in 2007 over 2006 compared to around 5% in 2006 over 2005.
17,328
26
2006
2007
MEMBERSHIP PROFILE
Membership Class
Age
4%
18%
3%
13%
23%
22%
73%
44%
73% | Non-Practising
18% | < 30
13% | 51-60
23% | Provisional
44% | 31-40
3% | > 60
4% | Practising
22% | 41-50
Gender
63% | Female
Local vs Overseas
37% | Male
37%
5%
63%
95%
95% | Local
5% | Overseas
YEAR-IN-REVIEW
ACCOUNTANCY EDUCATION
We remain committed to foster the needs of the
accountancy industry by providing quality education and
training through the Singapore Accountancy Academy
(SAA), the training arm of the Institute.
We officially opened our Singapore Accountancy Academy
(SAA) City Campus right in the heart of the central business
district on 24 April to provide a convenient, vibrant
and conducive learning environment for our members
and students.
SAA also expanded its portfolio of courses last year with its
launch of the University of London degrees courses with
majors in Accounting & Finance, Banking & Finance, and
Management. To date, over 200 students have taken up
these programmes and enrollment is expected to increase.
Another hallmark achievement by the SAA is the
commencement of the Business Analytics & Reporting
(BAR) course. The aim of this ICPAS certified computer-based
training program is to enable finance professionals to
leverage on infocomm technology to make strategic and
timely financial decisions using commonly available
software. The course is funded and supported by Infocomm
Development Authority (IDA).
SAA was also accorded the prestigious “Platinum Status”
by ACCA UK in recognition of its good passing rates.
The improved overall passing rate for the ICPAS/ACCA
Examinations was made possible by revamping and
improving on lectures and adding tutorials.
Last year also saw the collaboration between SAA and the
Millennia Institute (a consolidation of Pre-U centres) to teach
a top up version of the ICPAS / ACCA Certified Accounting
Technician (CAT) programme to their relevant students,
which will allow such students to graduate with an “A” level
certificate as well as the CAT qualification. The programme
has been very successful and saw more than 60 students
signing up in a single cohort. SAA is currently studying how
it can replicate this model to other public schools under the
Ministry of Education.
The opening of the new city
campus and an expanded
portfolio of courses, among other
key achievements, have helped
the SAA strengthen its foothold
as the premier accountancy
academy in Asia.
27
28
YEAR-IN-REVEIW
CORPORATE SOCIAL RESPONSIBILITY
The Institute is committed to corporate social responsibility
(CSR) and to further embed good corporate citizenship
within our culture that will serve both member interest and
the public interest.
Community Service
The Community Service Commtitee organised activities
throughout the year that benefited the less fortunate in the
society:
•
Walk for Fun’d in March to raise funds for the Breast
Cancer Foundation
•
Annual Reach-Out in November
•
Christmas Outing in December
•
Movie screenings of “Pirates of the Caribbean 3: At
World’s End” and “Golden Compass” which were jointly
held with the Social Committee
The Institute is committed to
corporate social responsibility
and to further embed good
corporate citizenship within
our culture that will serve both
member interest and the public
interest.
In December, the Institute also organised a charity event
with Sharity Giftbox ran by the Boys Brigade, which received
overwhelming response from big-hearted ICPAS members.
Scholarship and Awards
This year, the Institute gave out the ICPAS Gold Medal to the
most outstanding accountancy students from NTU, SMU,
Ngee Ann, Singapore and Temasek Polytechnics.
Additionally, ICPAS Scholarship Awards were presented to
two second-year and two third-year students from the
Nanyang Business School at NTU. We also awarded the ICPAS
Scholarship Awards to two third-year and two fourth-year
students from the School of Accountancy at Singapore
Management University.
COMMITTEES REVIEW
ACCA COMMITTEE
Kan Yaw Kiong, Ernest – Chairman
Ng Song Piak
Ho Mun-Tuke, Don – Dy Chairman
Quek Shi Kui
Chia Chiew Meng, Robin
Ramasamy, Jayapal
Lee Chee Wung
Tan Lye Heng, Paul
Lim Lay Lian, Jocelyn
Yim Kam May
The ACCA Committee played a useful role in enhancing the success of the ICPAS/ACCA Joint Professional Examination
Scheme.
The Committee worked with the student society, ACCA / ICPAS Student Society (AISS), to organise a series of social and studyrelated student activities including a corporate visit to Deloitte & Touche and talk on the ACCA new syllabus. The Committee
will continue to be involved in the AISS activities in order to assist the ACCA student body as a whole.
ICPAS and ACCA continued to work closely to promote the Joint Scheme through joint career talks and student events such
as the Student Orientation Day, which was held twice yearly for newly registered Joint Scheme students and the bi-annual
ACCA/ICPAS Graduation Ceremony, which was held for graduates of the December 2006 and June 2007 examination sessions.
ACCOUNTING STANDARDS COMMITTEE
Fang Ai Lian – Chairperson
Kon Yin Tong
Akhtar, Sajjad
Low Eng Huat, Peter
Ang Hao Yao
Ng Eng Juan
Boon Yoon Chiang
Sivaram, Nagaraj
Chia Siew Eng
Tan Boon Siong
Chin Foong Yoke, Evelyn Tan Hock Neo, Pearl
Foong Daw Ching
Tan Siah Yong
Goh Ann Nee (appointed 27.06.07)
Tan Song Kok, Henry (appointed 18.07.07)
Iyer, Shanker
Teo Cheow Tong (appointed 16.05.07)
Tham Sai Choy
With the enactment of the Accounting Standards Act, the Accounting Standards Council (ASC) was formed to take over the
task of prescribing accounting standards from the Council on Corporate Disclosure and Governance (CCDG).
ICPAS Accounting Standards Committee continued working closely with the newly formed ASC in reviewing new accounting
proposals and setting accounting standards, i.e. Financial Reporting Standards (FRSs). The FRSs are virtually converged with
International Financial Reporting Standards (IFRSs) and International Accounting Standards (IASs) issued by the International
Accounting Standards Board (IASB).
As of 31 December 2007, the following were issued as FRSs and Interpretations subsequent to the Institute’s
recommendations:
•
FRS 23 Borrowing Costs
•
FRS 108 Operating Segments
•
INT FRS 111 FRS 102 – Group and Treasury Share Transactions
•
INT FRS 112 Service Concession Arrangements
29
30
COMMITTEES REVIEW
During the year, the Committee also deliberated on the following IFRSs, amendments to IASs/IFRSs, revised implementation
guidance and Interpretations issued by IASB/IFRIC. Corresponding revisions/amendments were made to FRSs and INT FRSs:
•
IFRIC 13 Customer Loyalty Programmes
•
IFRIC 14 IAS 19 – Defined Benefit Assets & Minimum Funding Requirements
•
FRS 1 Presentation of Financial Statements
•
FRS 2 Inventories
•
FRS 7 Cash Flow Statements
•
FRS 8 Accounting Policies, Changes in Accounting Estimates and Errors
•
FRS 11 Construction Contracts
•
FRS 16 Property, Plant & Equipment
•
FRS 19 Employee Benefits
•
FRS 23 Borrowing Costs
•
FRS 27 Consolidated and Separate Financial Statements
•
FRS 33 Earnings Per Share
•
FRS 34 Interim Financial Reporting
•
FRS 36 Impairment of Assets
•
FRS 38 Intangible Assets
•
FRS 101 First-time Adoption of Financial Reporting Standards
•
FRS 105 Non-current Assets Held for Sale and Discontinued Operations
•
FRS 106 Exploration for and Evaluation of Mineral Resources
•
INT FRS 29 Disclosure – Service Concession Arrangements
•
INT FRS 101 Changes in Existing Decommissioning Restoration and Similar Liabilities
•
INT FRS 104 Determining Whether an Arrangement Contains a Lease
COMMITTEES REVIEW
The following IASB exposure drafts were considered by the ASC with representations and recommendations from the
Committee and representatives from the relevant industries:
•
ED Proposed Amendments to IFRS 1 First-time Adoption of Interpretation Financial Reporting Standards: Cost of an
Investment in a Subsidiary
•
ED of the International Financial Reporting Standard for Small and Medium-sized Entities (SMEs)
•
ED Proposed Amendments to IAS 24 Related Party Disclosures
•
ED Amendments to FRS 39 Exposure Qualifying for Hedge Accounting
•
ED 9 Joint Arrangements
•
ED Proposed Improvements to IFRS
•
ED INT FRS Real Estate Sales
•
ED INT FRS Hedges of a Net Investment in a Foreign Operation
The Committee reviewed the above proposals and prepared comment letters taking into account feedback received.
The comment letters were forwarded to the Council for approval/comments and to the ASC for submission to the IASB as
appropriate.
At its meetings, the Committee made presentations on the IASB/IFRIC exposure drafts, to which ASC members and
representatives were invited. The purpose of the presentations was to facilitate understanding of the technical issues and
implications of the accounting standards and proposals.
The Committee also provided views on the following:
•
IASB Discussion Paper on Fair Value Measurements
•
IASB Discussion Paper on Preliminary Views on Insurance Contracts
ACCREDITATION COMMITTEE
Tan Boen Eng – Chairman
Kwok, Kevin
Pang Yang Hoong
Yeoh Oon Jin
The Committee met to discuss the outstanding issues in respect of the negotiation for Mutual Recognition Agreement (MRA)
between the Institute of Chartered Accountants of India (ICA-India) and the Institute. Both sides have not been able to close
the gap. For instance, ICA-India’s latest proposal contains a condition that the proposed MRA covers only ICPAS members who
were born in Singapore.
Arising from the Committee’s recommendation, Council has decided to grant provisional accreditation to NUS’ Bachelor of
Business Administration (Accountancy) programme subject to a yearly review over the next three years.
31
32
COMMITTEES REVIEW
ATTS COMMITTEE
Ong Chin Guan, Noris – Chairman
N Vimala Devi
Tan Boen Eng – Dy Chairman
Lee Kian Meng, Ernest
Chee Kim Hock (appointed 21.04.07) Yee Fook Hong
The Committee met to deal with the policy and operational aspects of the Association of Taxation Technicians Singapore and
to review the results of the ATTS examinations.
A total of 4 forums were held for the benefit of the ATTS students and members. Besides inviting tax practitioners as speakers,
the Committee also invited IRAS to lead the tax forums. To reach out to more tax support staff, the forums were opened to
staff from CPA firms. The forums received overwhelming reponse with full capacity turnout. The total turnout of the 4
forums was 688 participants.
The ATTS Annual Tea Reception 2007 was held in April to present First and Second Place Awards and Merit Certificates to
students who performed well in the June and December 2006 examinations. This was the first time the invitation to the Tea
Reception was extended to CPA firms and a total of 87 representatives from CPA firms attended the event. The Guest-of-Honour
was Mr Alan Ow, Senior Deputy Commissioner of IRAS.
The ATTS Diploma in Taxation was awarded Skills Development Funding in April. With this, students sponsored by their
companies can apply for up to 90% Workforce Development Agency (WDA) financial support.
AUDITING AND ASSURANCE STANDARDS COMMITTEE
Kan Yaw Kiong, Ernest – Chairman Yeoh Oon Jin – Dy Chairman
Barmaky, Shariq
Cheong, Sabina
Christie, Hamish
Foo See Liang
Ho, Kate
Lee, Maria
Lee, Paul
Ng, Julie
Siew Wun Mui
Tan Wee Khim
Tay, Joanne
Thein, Reggie
Toh, Joseph
Tran Phuoc, Lucas
Wong-Yeow Anna Irene
Yeo Boon Chye
Yeo Ek Khuan
In 2007, the Committee organised the following seminars:
18 May - Financial Reporting Responsibilities & Expectations and the Proposed SME Accounting Standards (co-organised with
the Association of Small and Medium Enterprises)
24 July - Public Accountants Conference 2007 (The Institute is strategic partner to organiser, the Accounting and Corporate
Regulatory Authority). The Chairman of the Committee spoke on the topic “International Developments - Auditing Standards”
11 September - Practical Insights: ICPAS Audit Manual for Small Companies
29 October - Anti-Money Laundering and Anti-Terrorism Financing
During the year, the Institute’s Council, on the recommendation of the Committee, approved the following:
•
Revised sample auditor’s report for money-changing and remittance businesses (Audit Guidance Statement 1 Sample
Auditor’s Reports - AGS 1)
COMMITTEES REVIEW
•
Revised sample auditor’s reports found in Singapore Standard on Auditing (SSA) 700 The Independent Auditor’s Report on a
Complete Set of General Purpose Financial Statements and Appendix 1 of AGS 1
•
Revised sample auditor’s report on “Report of Factual Findings - EDAS Scheme (EDB)” (AGS 1)
•
Revised sample auditor’s report on “Project accounts - Housing Developers (Project Account) Rules” (AGS 1)
•
Revised AGS on charities (Appendix 2 of AGS 5 Audits of Entities in Specific Industries, Professions or Vocations)
•
Revised sample auditor’s report for a branch (Appendices 1D, 1G and 10 of AGS 1)
•
First set of redrafted clarity SSAs:
• Preface to the Singapore Standards on Quality Control, Auditing, Review, Other Assurance and Related Services
• SSA 240 The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements
• SSA 300 Planning an Audit of Financial Statements
• SSA 315 Identifying and Assessing the Risks of Material Misstatement Through Understanding the Entity and Its Environment
• SSA 330 The Auditor’s Responses to Assessed Risks
As of 31 December 2007, the Committee was considering issues in relation to proposed new or revised auditing
pronouncements on the following matters:
• Comfort Letters and Other Assistance for Public Offerings of Equity Securities in Singapore
• The Audit of Group Financial Statements
• Materiality in Planning and Performing an Audit
• Evaluation of Misstatements Identified during the Audit
• Communication with Those Charged with Governance
• Written Representations
• Audit Documentation
• Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures
• Subsequent Events
• The Auditor’s Consideration of the Internal Audit Function
• The Auditor’s Responsibility in Relation to Other Information in Documents Containing Audited Financial Statements
• Related Parties
• Going Concern
• Overall Objective of the Independent Auditor, and the Conduct of an Audit in Accordance with Singapore Standards on Auditing
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COMMITTEES REVIEW
• The Auditor’s Responsibilities Relating to Laws and Regulations in an Audit of Financial Statements
• Considering the Relevance and Reliability of Audit Evidence
• Quality Control for Firms that Perform Audits and Reviews of Financial Statements, and Other Assurance and Related Services Engagements
• Quality Control for an Audit of Financial Statements
• The Independent Auditor’s Report on General Purpose Financial Statements
• Modifications to the Opinion in the Independent Auditor’s Report
• Emphasis of Matter Paragraphs and Other Matter(s) Paragraphs in the Independent Auditor’s Report
• Special Considerations - Audits of Special Purpose Financial Statements and Specific Elements, Accounts or Items of a Financial Statement
• Engagements to Report on Summary Financial Statements
• Initial Audit Engagements - Opening Balances
• Audit Sampling
• External Confirmations
• Using the Work of an Auditor’s Expert
On top of that, the Institute, on the recommendation of the Committee and the approval of Council, provided its comments
on various exposure drafts issued by the IAASB of IFAC.
During the year, representatives from the Committee engaged regulatory agencies and other interested parties, including the
Accounting and Corporate Regulatory Authority, the Inland Revenue Authority of Singapore and the Central Provident Fund
Board, in dialogue meetings to discuss regulatory developments and auditing related matters.
BANKING & FINANCE COMMITTEE
Fang Ai Lian – Chairperson
Chua Kim Chiu – Dy Chairman
Cheng Ai Phing
Desai, Prakash Ambelal
Ng Geok Mui
Nixon, Dominic
Ong Ai Boon
Woo, Wilson
Leong Kok Keong
Yap Chee Meng
The Committee worked with the Accounting Standards Committee in considering the following IASB Exposure Drafts and
Interpretations:
•
IFRIC D22 Hedges of a Net Investment in a Foreign Operation
•
ED Amendments to IAS 39 Exposure Qualifying for Hedge Accounting
COMMITTEES REVIEW
The Committee also worked with the Accounting Standards Committee to issue the Revised Auditors’ Report in RAP 7 in
February.
The Committee provided its comments on the MAS Consultation Paper on Amendments to the Securities and Futures Act in
January.
In its continual efforts to engage the relevant authorities to discuss and resolve issues in the banking and finance industry,
the Committee had a dialogue session in November with the MAS on several issues including Basel II Implementation in
Singapore, Collective Impairment under MAS Notice 612 and CDO issues and market trends.
BAR CERTIFICATION COMMITTEE
Themin Suwardy – Chairman
Kwok Chee Chiu, Winston
Lee Jeng Wah
Thio Tse Gan
The BAR Certification Committee worked closely with another committee – BAR Panel of Advisors to oversee the ICPAS / IDA
Business Analytics & Reporting (BAR) course, with the Certification Committee overseeing the quality control and certification
and Panel of Advisors looking after the content development. The terms of reference of the Certification Committee are to
maintain and control high standard for the whole certification process for ICPAS / IDA Business Analytics & Reporting (BAR)
course and ensure the relevance and quality of the project is congruent with the objectives of the BAR Course.
The Certification Committee continued to refine and improve the assessment criteria and oversee the introduction of
“Certificate of Competency with Merit” awards to exemplary projects submitted by participants. Together with the instructors,
the BAR Certification Committee was successful in securing IDA’s continued funding for the course. This helps the Institute to
make the course available to a wider group of accountants.
The Committee was also involved in the BAR Conference held on 19 September, which was attended by about 1000 financial
professionals.
BAR PANEL OF ADVISORS
Sia Siew Kien – Chairman
Thio Tse Gan
The Wie Djien, Jerry
Based on feedback from focus group, the Advisors reviewed the revamped BAR course to incorporate more specific case
studies relevant to businesses. The key changes in the content include:
1) Participants are now shown how to automatically import new data into their data empire without traditional cut and
paste, which is prone to errors.
2) A new simulation module incorporating what-if scenarios analysis on the face of the budget that gives instantaneous
results was added to the revamped BAR course.
3) A corporate finance model to determine the optimal capital structure for a company was added.
The Committee formed the Panelists for the Q&A session at the BAR Conference held on 19 September, providing answers to
numerous questions on how to improve workplace-reporting efficiency.
BOARD OF EDUCATION AND EXAMINERS
Yeo Hian Heng, Gillian – Chairperson
Chew Tong Gunn
Choo Teck Min
Lian Wee Cheow
Pang Yang Hoong
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COMMITTEES REVIEW
The Committee streamlined the Institute’s CPE guidelines so as to be in line with the IFAC IES Standards and to maintain the
professional competence of professional accountants.
Over the course of the year, the Committee has assessed and successfully accredited the Bachelor of Business (Accountancy)
from Royal Melbourne Institute of Technology (RMIT). Graduates are eligible to apply for ICPAS Professional Examination (PE)
if they have attempted the recommended core subjects at the degree level.
To cater to the increasing demand of the ICPAS PE, the Committee has decided on the change of the examination frequency.
Starting from the November 2008 examination session, all the five modules under the ICPAS PE will be offered twice a year
instead of two papers offered quarterly.
CAT COMMITTEE
Ooi, Peter
Khoo Ho Tong – Dy Chairman
Teo Hui Leng
Lim Cheng Lian, Angela
2007 was one of the best performing years for SAA’s CAT programme. Enrolment for both international and local markets has
increased more than 30%. SAA has 70 students registered for the scheme at Millennia Institute and over 30 students for the
Institute of Technical Education (ITE) collaboration. There is also a sharp increase in students under the Skill Development
Fund (SDF) and Surrogate Employer Programme (SEP).
There were a total of 1514 new student members joining the CATS/ACCA joint scheme, bringing the total number of
registered student members to 3333.
The number of graduates was 386 and there was a steady increase in the number of CATS Full members. The current
membership strength is 414 for both Ordinary and Senior Members.
CFO COMMITTEE
Soh Gim Teik – Chairman
Goh Bee Kheng, Grace Jong Voon Hoo
Koo Tse Chia
Loo Wen Lieh
The Committee continued to provide a platform to address the professional needs of the Institute’s members by organising
conferences, workshops, round-table discussions and networking sessions for Chief Financial Officers, Financial Controllers,
Finance Directors etc.
During the year, the Committee and Robert Half International jointly hosted an inaugural CFO Roundtable Discussion.
A distinguished group of leading financial and accounting professionals were invited to discuss the challenges Singapore
businesses face in building a team of finance professionals amid today’s changing workforce. The participants exchanged
ideas and share best practices on how organisations can manage and train existing staff to meet the changing needs of their
roles, as well as how to retain valuable employees especially when the economy is facing a talent crunch.
CHINA COMMITTEE
Sitoh Yih Pin – Dy Chairman
Teo Meng Hua – Dy Chairman
Chew Soon Beng
Khoo Ho Tong
Lim Lian Soon
Ong Kian Guan, Joshua
Wong Lai Yong
Yong Cherng Nan
Yow Hon Meng, Jason
COMMITTEES REVIEW
The Committee hosted the visit of the Chinese delegation from Beijing Municipal Audit Bureau. A group of seven officials from
the Beijing Municipal Audit Bureau visited the Institute on 12 June. There was an active exchange of audit practices between
the Committee members and the visitors during the session.
COMMUNITY SERVICE COMMITTEE
Wong Lai Yong – Chairperson
Wong Kian Kok – Dy Chairman
Chia Chiew Meng, Robin
Lee Lai Ken, Helen
Ling Ing Hea, Grace
Loh Boon Leng, David
Tan Lee Choo
Tang Shiuh Huei
Wong Lee Eng, Elsie
Yeo Siew Huay, Micolle
The Committee organised the following community service projects in 2007:
•
Walk for Fun’d
A charity drive in the form of a treasure hunt to raise funds for Breast Cancer Foundation was held at the Fort Canning
Park on 31 March.
•
Movie Screening – “Pirates of the Carribean 3: At World’s End”
50 children from the Andrew and Grace Home attended this movie screening on 26 May.
•
Reach-Out 2007
The Annual Reach-Out was held on 4 November at Superbowl Golf and Country Club where 300 residents from nine
charitable organisations were invited to a Chinese lunch and entertainment.
•
Autism Resource Centre Charity Dance
The Institute sponsored 50 charity dance performance tickets to persons with special needs to attend the 1 December
Matinee organised by the Autism Resource Centre (Singapore). The charity dance was held to raise funds for a new school.
•
Christmas Outing
The Institute shared Christmas joy with 80 residents from Kaki Bukit Seniors Activity Centre on 6 December. The residents
cruised down Orchard Road to see the Christmas lightings before having dinner at River View Hotel.
•
Movie Screening – “Golden Compass”
On 8 December, 79 children from several homes attended this movie screening.
CORPORATE FINANCE COMMITTEE
Mah Chee Kheong, Chaly – Chairman
Tham Sai Choy
Ng Geok Mui
Tham Tuck Seng
Tan Chian Khong
Wong Kian Kok
The Committee discussed and provided input on matters relating to corporate finance to the regulatory authorities and other
corporate finance/investment banking organisations. It also worked closely with other committees within the Institute on
matters pertaining to accounting and auditing standards and provided input on professional issues to the standards setters.
In January and November, the Institute, on the recommendation of the Committee and the Banking and Finance Committee
and the approval of Council, provided its comments on the Monetary Authority of Singapore’s (MAS) second and third policy
consultation papers on the “Policy Consultation on Amendments to the SFA and the FAA”. The public consultation papers
arose from MAS’ review of the Securities and Futures Act (SFA) and the Financial Advisers Act (FAA), and are part of the
initiatives of MAS to regularly review its regulatory requirements and to benchmark them against international best practices.
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COMMITTEES REVIEW
CORPORATE GOVERNANCE COMMITTEE
Bowman, Bill
Ho Yew Kee (appointed 15.08.07)
Jothidas, A
Kamis, Rohan
Lee Kin Wai
Ramasamy, Dhinakaran
Yee Lat Shing, Tom
The Committee continued to draw on the experience of auditors, accountants, consultants, company directors and other
experts to raise awareness of corporate governance issues and to promote fairness, transparency and accountability in the
conduct of business.
In January, the Committee responded to the Ministry of Home Affairs (MHA)’s Consultation Paper on the Proposed
Amendments to the Singapore Penal Code.
In August, the Institute provided feedback to the Charities Unit on the Consultation paper on the Draft Code of Governance
for Charities and Institutions of Public Character (IPCs).
The Committee also continued to discuss the development of new best practice guidelines to promote sound corporate
governance in companies. Representatives from the Committee continued to contribute articles to the “Corporate
Governance” column of the Singapore Accountant.
The Committee acknowledged the importance of its role in the development, implementation and promotion of sound
corporate governance and will continue to participate actively in projects associated with its objectives and to organise
relevant events on corporate governance.
During the year, the Committee organised the following seminars and panel discussions:
•
Seminar on “Sarbanes-Oxley (SOX) Compliance Update: Impact of Changes on Business & IT Audit, and Governance”;
•
Seminar on the recent court appeal cases “United Project Consultants Pte Ltd v Leong Kwok Onn”, “Gaelic Inns Pte Ltd v PlanAssure PAC” and “JSI Shipping (S) Pte Ltd v TeoFoongWongLCLoong”; and
•
Seminar and Panel Discussion on Audit Committees.
Representatives from the Committee were invited to sit on the discussion panel of the ICPAS-NCSS Seminar on RAP 6
Accounting & Reporting by Charities held on 26 June.
CPA AUSTRALIA COMMITTEE
Loh Hoon Sun – Chairman
Bowman, Bill
Chan Lai Koon
Han Lih Lih
Koh Noi Keng
Law, Janice
Lim Kim Tong
Ooi, Peter
Seah, Linda
Tan Boen Eng
Jointly organised by ICPAS and CPA Australia on 17-18 August, the CPA Forum provided a platform for regulators and business
leaders to exchange views and share their ideas with the business community. Over 800 CPAs and industry leaders from
Singapore, Australia, Hong Kong and Malaysia gathered for the one-and-a-half-day Forum. They looked at the various aspects
of Asian economies integration, including business expansion, investments, business risk, talent attraction and retention,
opportunities for SMEs, accounting standards and taxation.
Another successful enterprise is the joint monthly Dinner Talks held at the Conrad Centennial Singapore, which drew close to
300 members from both bodies.
COMMITTEES REVIEW
DISCIPLINARY COMMITTEE
Loh Hoon Sun
Fang Ai Lian
Sitoh Yih Pin
Kon Yin Tong
Yee Lat Shing, Tom
Lee Chee Wung
The Committee dealt with 1 case submitted by the Investigation Committee.
ETHICS COMMITTEE
Teoh Leong Kay, Danny – Chairman Ang Peng Koon, Patrick
Cheong Fook Seng, Anthony
Ho Mun-Tuke, Don
Quek Shi Kui
Soh Chung Hian, Daniel
Tay Joo Soon
Yuen Ewe Jin, Phillip
During the year, the Institute, on the recommendation of the Committee and the approval of Council, provided its comments
to the International Ethics Standards Board for Accountants (IESBA), an independent standard-setting board within the
International Federation of Accountants (IFAC), on the following exposure drafts (EDs):
•
Sections 290 and 291 of the IFAC Code of Ethics for Professional Accountants, which essentially sought to update and
strengthen the independence requirements contained in the IFAC Code.
•
Strategic and Operational Plan 2008-2009, which outlines how the IESBA’s mission and objectives align with IFAC’s strategic
priorities, and also explains how the IESBA works to achieve its objective as set out in its Terms of Reference.
In August, the Institute, on the recommendation of the Committee and the approval of Council, issued an ED of a revised
ICPAS Code of Professional Conduct and Ethics, based on Part C of the IFAC Code. This follows the issuance of an ED on the
Code of Professional Conduct and Ethics for Public Accountants (the ACRA Code) by the Accounting and Corporate Regulatory
Authority’s Public Accountants Oversight Committee (PAOC) Ethics Sub-Committee. The ACRA Code is based on Parts A and B
of the IFAC Code. The ICPAS Code will be based on the ACRA Code for Parts A and B when the latter is finalised.
In September, the Institute held a forum on the “Exposure Drafts of the ICPAS and ACRA Codes” to solicit feedback from
members and the feedback discussed had been considered and incorporated in a comment letter to ACRA on its ED on the
ACRA Code.
EXAMINATION COMMITTEE
Kan Yaw Kiong, Ernest – Chairman Chee Hay Kheong, Daniel
Ho Yew Kee
Lee Jee Cheng, Philip (appointed 21.04.07)
Lim Lian Soon
The Committee continued to play its role in the implementation and administration of the ACCA/ICPAS Joint Scheme for its
ACCA Professional Entry Route (PER) and Certified Accounting Technician (CAT) qualifications.
The ACCA new syllabus was first examined in the December 2007 examination session. In conjunction with the introduction of
the new syllabus, the Committee had approved and endorsed the standard exemptions policy for qualifications awarded by local
educational institutions.
The Committee worked closely with the Singapore examination team to provide feedback and suggestions to ACCA on ways
to improve administrative processes, in the hope that the examining team could focus their attention on the setting of the
papers and thus enhancing the quality of the Singapore adapted papers. The Committee continued to approve both the
appointments and re-appointments of examiners, assessors and inspectors for the Singapore variant and adapted papers.
A representative from the Committee continues to attend the Law and Tax Panel Meetings conducted by ACCA UK with all the
examiners on the coming examination.
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COMMITTEES REVIEW
FINANCIAL STATEMENTS REVIEW COMMITTEE
Tan Eng Seong, Phillip – Chairman
Ooi Chee Kar
Cheng Ai Phing – Dy Chairperson
Sim Cheng Geok, Helen
Bay, Esther
Soh Kok Leong
Chia Soo Hien, Frankie
Tan Kay Yeow, Douglas
Chin, Robin
Tan Swee Ho
Eng Chin Chin
Tan Tong Kai
Goh Swee Hong
Teo Chai Choo
Ho Kok Yong
Tham Chee Soon
Kok Moi Lre
Toh Kian Leong, Joseph
Leaver, David Anthony
Wong Kian Kok
Ling Soon Hwa, Philip
Wong-Yeo Siew Eng
Lo Wei Min
Yeo Boon Chye
120 sets of financial statements were reviewed. These included newly-listed public companies and a selection of private
limited financial statements.
These financial statements were reviewed by members working under the following sub-committees:
Sub-Committee
Chairman/Chairperson
Published Accounts Phillip Tan Eng Seong
Private Limited Accounts
Cheng Ai Phing
Number of Financial
Statements Reviewed
72
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120
In the course of its reviews, the Committee has highlighted to practising members areas where the presentation or content
of the financial statements fall short of compliance with the Singapore Financial Reporting Standards (FRS) and other
promulgations. Generally the standard of disclosure in the financial statements has improved. However, it was noted that
for certain sets of financial statements reviewed, practising members were found to be not conversant with the FRS and
pronouncements issued by the Institute in respect of the Singapore Standards on Auditing (SSA). These practising members
were recommended to attend training courses to update themselves on the Standards. In addition, one member was found
wanting in the discharge of his professional duties and subsequently referred to the Accounting and Corporate Regulatory
Authority for further action.
In view of the substantial changes to the Singapore Financial Reporting Standards, which are effective for financial periods
beginning on or after 1 January 2005, members are advised to take note of the changes and ensure their compliance in the
relevant financial statements.
On 5 October, the Committee conducted a seminar on observations compiled from its reviews over the past 20 months.
More than 400 participants from CPA firms, statutory boards and various industries attended this seminar.
GENERAL PURPOSE & FINANCE COMMITTEE
Khoo Ho Tong
During the year, the Committee met to deal with administrative and financial matters relating to the Institute. The Committee
reviewed the annual budget, annual salary adjustments and promotional exercise for staff as well as the appointment of
internal auditors to evaluate the internal controls of the Secretariat and the SAA.
COMMITTEES REVIEW
The Committee considered and made recommendations to the Council on the presentation of ICPAS Silver and Merit Awards
to two members who had made significant contributions to the Institute and or the community. It also awarded eight ICPAS
Scholarship Awards to accountancy undergraduates from Nanyang Technological University and Singapore Management
University. The awards and scholarships were presented at the Institute’s Annual Dinner and Dance on 26 October.
The Committee also recommended to Council that Provisional Member be entitled to use the designation “Associate (ICPAS)”.
The Committee discussed the development of a CPA Singapore logo to foster greater identification, recognition and brand
building.
INFORMATION TECHNOLOGY SERVICES COMMITTEE
Tang Kok Kwai – Chairman
Seow Teow Han, John
Lee Jeng Wah – Dy Chairman
Sia Siew Kien
Chee Hay Kheong, Daniel
Tan Wee Peng, Kelvin
Chin Chen Keong, John
Themin Suwardy
Chong Kek Sing
Thio Tse Gan
Hooi Cheng Cheong
Wee Phui Gam
Lim Shien Ching, Henry
With to the aim to revamp the Institute’s IT infrastructure and applications, this committee will propose an IT Governance
Framework for guidance and quality control of this project. These guidelines and best practices will assist to ensure that the
Institute’s investment in IT will achieve the intended benefits.
INSOLVENCY PRACTICES COMMITTEE
Ho Mun-Tuke Don – Chairman
Tam Chee Chong – Deputy Chairman
Aw Eng Hai
Chan Ket Teck
Chay, Peter
Chee Yoh Chuang
Iyer, Ramasamy Subramaniam
Reid, Timothy James (appointed 16.05.07)
Seshadri Rajagopalan
Tan Ng Kuang, Nicky
Tay Swee Sze
Yong Cherng Nan
During the year, representatives of the Committee provided its views and inputs to the Insolvency & Public Trustee’s Office
(IPTO) on the Consultation Paper on the Proposed Debt Repayment Scheme issued by Ministry of Law and IPTO. The proposed
scheme seeks to help wage-earner debtors with relatively small unsecured debts not exceeding $100,000 avoid bankruptcy.
The proposed scheme will be administered by appointed and qualified case administrators from the IPTO who would ensure
that the debtor proposes and completes the debt repayment plan within five years.
Members were also involved in the participation to provide and emphasise the importance to increase the awareness of
insolvency practitioners in technical competency and the current legal precedents by the High Court in Singapore. In this
respect, a series of CPE programmes were organised jointly with IPAS and SAA on the relevant features of Insolvency and
Restructuring, which would be of interest to practitioners.
Members of the IPC took an active part in reviewing, submitting written suggestions and giving constructive inputs to the
proposed amendments to the Insolvency Legislation and participated in the INSOL International Singapore Symposium held
at the Fullerton Hotel, Singapore in November.
INSURANCE COMMITTEE
Mak Keat Meng – Chairman
Sim Hwee Cher – Dy Chairman
Faulkner, Paul
Hoon Ching Sing, Jeremy
Ngo Siew Pod
Tan Eng Seong, Phillip
Yee Lat Shing, Tom
Young, Kenny Horlley
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COMMITTEES REVIEW
The Committee continued to contribute to the insurance industry through feedback and recommendations on various
industry matters to insurance bodies and regulators, whilst handling issues raised by members.
In July, the Committee deliberated and submitted a comment letter on the Public Consultation on Proposed Risk
Management Guideline for Insurance Business to the Insurance Supervision Department of the Monetary Authority of
Singapore.
The Committee worked with the Accounting Standards Committee on the following IASB discussion papers and
implementation guidance:
• Discussion Paper on Preliminary Views on Insurance Contracts
• Revised Implementation Guidance on IFRS 4 Insurance Contracts
In 2007, MAS issued the supplementary report on the audit of Investment-Linked Life Insurance Polices (ILP) Sub-Funds, based
on the recommendations of the Insurance Committee.
INVESTIGATION COMMITTEE
Lee Chow Soon (Lay Person)
Seow Teow Han, John – Dy Chairman
Loh Yoon Min
Khoo Ho Tong
Ong Sim Ho
During the year, the Committee dealt with three cases against non-practising CPAs, of which one case was dismissed and one
case was referred to the Disciplinary Committee for professional misconduct. The third case is still on going.
MANAGEMENT ACCOUNTING COMMITTEE
Chan Yoke Kai – Chairman
Chung Lai Hong
Jothidas, A – Dy Chairman
Ghosh, B C
Cheng Wai Fung
Low Peng Nam, Eric
Chong Kum Fatt, Michael
Navaratnam, V
During the year, the Committee deliberated and recommended to the Institute the withdrawal of the following Statements on
International Management Accounting Practice (IMAPs) on the basis of convergence with the International Federation of
Accountants (IFAC):
•
IMAP – Preface to Statements on International Management Accounting Practice
•
IMAP 1 (Revised) Management Accounting Concepts
•
IMAP 4 Management Control of Projects
•
IMAP 5 Managing Quality Improvements
IFAC has withdrawn the IMAPs as it is moving towards producing principles-based pronouncements. Nonetheless, IFAC may
consider encapsulating the history of management accounting so that this work is not lost but has yet to decide on how to
proceed with this. Consequently, the Committee agreed with the approach to promulgating principles-based guidance and
recommended the withdrawal of the preface to IMAPs & IMAPs 1, 4 and 5 on the grounds of harmonisation with IFAC.
COMMITTEES REVIEW
The Committee also deliberated and provided its comments on the following Exposure Drafts issued by IFAC during the year:
•
Exposure Draft on the Preface to IFAC’s International Management Accounting Statements and International Good Practice Guidance
•
Exposure Draft of a Proposed International Management Accounting Statement – Project Appraisal Using Discounted Cash Flow
The issuance of these Exposure Drafts follows the work of IFAC’s Professional Accountants in Business (PAIB) Committee. The
PAIB Committee has embarked on an initiative to develop principles-based pronouncements for PAIBs and had issued EDs on
a proposed preface to new management accounting guidance and the proposed IMAS Project Appraisal Using Discounted Cash Flow.
The Committee would continue to take an active role in the promulgation of management accounting guidelines in
Singapore and organise seminars and workshops for the benefit of ICPAS members, especially those pertaining to
management accounting.
MEMBERSHIP COMMITTEE
Seow Teow Han, John – Chairman
Wong Lai Yong
Khoo Ho Tong – Dy Chairman
Yang Ching Chao
Choo Teck Min
Yeoh Oon Jin
Khoo Teng Aun
The Committee is responsible for the review of membership matters and to make monthly recommendations to Council on
the admission of provisional and non-practising members, fellows, membership reclassifications, resignations, reinstatements,
removal of members for non-payment of annual subscription fees and other related matters.
Having successfully attracted the ICPAS/ACCA joint scheme graduates to join the Institute under its new scheme, the
Committee would be extending the same scheme to NTU and SMU 2008 Bachelor of Accountancy graduating cohorts.
PUBLIC ACCOUNTING PRACTICE COMMITTEE
Seow Teow Han, John – Chairman
Kon Yin Tong
Liew Geok Bee, Lisa – Dy Chairman
Lee Chee Wung
Heng Yeow Meng, Michael
Luar Eng Hwa
Ho Lon Gee
Tan Kian Leng, Clement
Khoo Ho Tong
The Committee considered issues relating to the public accounting arena and participates in dialogue sessions with the
Accounting and Corporate Regulatory Authority (ACRA) and other relevant authorities, to further the interests of practising
members.
On 6 March, the Committee met with representatives from the Ministry of Community Development, Youth and Sports
(MCYS) to explore possible assistance from our members to complement their efforts in setting up a business framework
for social enterprises. MCYS seeks to create a pro-social enterprise environment and a culture of social entrepreneurship
in Singapore. Following the meeting, the Committee successfully facilitated the setting up of a panel of members whom
the social enterprises can approach to perform services in the areas of book-keeping, financial audit, taxation or corporate
secretarial.
The Committee also met representatives from ACRA on 28 March to provide information on our members’ operational needs
for ACRA’s proposed membership portal. This portal serves to provide customised information for the needs of professional
bodies like ICPAS and aims to ease company secretaries’ record-keeping requirements, facilitate practice management, reduce
costs and support business continuity planning needs.
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COMMITTEES REVIEW
During the year, in response to our members’ needs and ACRA’s request, the Committee facilitated in setting up a hot review
panel, to provide an alternative to public accountants should they need help in seeking hot review partners. A hot review is
an interim measure imposed by the PAOC to enable a public accountant to take the necessary corrective actions to comply
with auditing standards before a revisit by the PMP reviewers.
SINGAPORE ACCOUNTANCY ACADEMY COMMITTEE
Kan Yaw Kiong, Ernest – Dy Chairman
Chew Tong Gunn Khoo Ho Tong Loh Hoon Sun
Quek Shi Kui
Seow Teow Han, John
Sitoh Yih Pin
Yang Ching Chao
The Academy has successfully maintained a sizable presence in today’s competitive environment. Strategising in areas such as
quality lecturers, high passing rates, customer service and course management has borne fruits. SAA was granted the
Platinum approval under the ACCA’s Approved Learning Partner – Student Tuition programme. Platinum approval is the
highest and most prestigious level of the programme.
In 2007, SAA launched 2 new programmes: The University of London External programme and the Nottingham University
MSC International Business Management. There are about 200 students enrolled in the UOL BSc Accounting and Finance, BSc
Banking and Finance or BSc Business programmes.
During the year, SAA presented awards to lecturers with outstanding performance and SAA students who are prizewinners of
the ICPAS/ACCA joint examination scheme.
SINGAPORE ACCOUNTANT EDITORIAL BOARD
Tan Boen Eng – Chairman Low Kee Yang
Tan Hun Tong – Dy Chairman
Shee Ping Fatt, Alfred
Sitoh Yih Pin
Koh Hian Chye
Wang Jiwei
Kon Yin Tong
Singapore Accountant, the bi-monthly journal, continues to be one of the key communication channels between ICPAS and its
members. Following its revamp in the beginning of 2006, the journal underwent further enhancements in 2007.
As it seeks to cater to wider, more business-oriented members, the journal focused its stories on topical issues such as Islamic
banking, corporate governance, the rising Asian economies, mergers and acquisitions, etc. It also has more in-depth reports of
the Institute’s seminars and events for the benefit of members. The journals’ news and happenings coverage were expanded
to show members’ involvement with the Institute.
What’s more, the Singapore Accountant carried quality interviews with prominent members such as Ms Chua Sock Koong
(SingTel Group CEO), Mr Gerard Ee (Chairman of NKF), Mr Siew Peng Yim (CFO of the Year and CFO of HTL International).
In addition, the look and feel of the journal was reformatted to be neater and more reader-friendly. There are now more
photos, better pagination as well as stylish layout just to name a few.
Looking ahead, we will continually improve on the journal to provide a fresh perspective; one aligned with the dynamism
of the CPA Singapore, yet firmly grounded in its primary objective of providing up-to-date technical information to the
accounting profession.
COMMITTEES REVIEW
SOCIAL COMMITTEE
Yim Kam May – Chairperson
Wong Lai Yong – Dy Chairperson
Ho Nai Chuen
Koh Boon Ngee, Andrew
Lo Wei Min
Loo Wen Lieh
Seah Gek Choo
Tang Shiuh Huei
Wong Lee Eng, Elsie
The Committee organised the following social activities:
•
Movie Premier – “Spiderman 3”
About 150 members attended this movie premier on 1 May. Before the screening, members were given a parchment craft
demonstration. Participants also had an opportunity to socialise with each other over lunch.
•
Movie Screening – “Pirates of the Caribbean 3: At World’s End”
On 26 May, more than 100 members attended this movie screening.
•
PewterSmithing Workshop
Members had a fun hands-on session playing the Pewtersmith on 22 June where they were awarded a personalised
pewter-smith certificate for their unique handmade masterpiece. They also enjoyed a river bumboat ride.
•
Movie Screening – “Harry Potter and the Order of the Phoenix”
More than 100 members watched this movie on 14 July. In conjunction with the release of the last book of the Harry
Potter series - “Harry Potter and the Deathly Hallows” on 21 July, the Institute offered members special discounts on the
Harry Potter backlist titles and attractive gifts.
•
Speechcraft 2007
Organised jointly with the CPA Toastmasters Club, the annual Speechcraft programme was held over four sessions
in the month of October. Speechcraft 2007 was conducted with the objective of helping members develop effective
communication skills. Besides building a foundation in public speaking skills, members were also trained on how to give
interesting speeches and presentations. The last session of the seminar coincided with the Club’s 20th Anniversary and
the induction of new members on 23 October.
•
ICPAS Annual Dinner & Dance 2007 – “A Musical Extravaganza”
Over 300 guests and members attended ICPAS Annual Dinner and Dance 2007 – “A Musical Extravaganza” on 26 October,
at Grand Hyatt Singapore. The Guest-of-Honour, Mrs Lim Hwee Hua, Minister of State for Finance and Transport, delivered
the keynote address. Two members were presented with the ICPAS Medal awards in recognition of their outstanding
contributions to the Institute, while another two Committee members were presented with Certificates of Appreciation
for their long services rendered.
•
Helena Rubinstein Workshop
The Helena Rubinstein workshop held on 23 November and 25 January taught members the proper steps of a skin care
regime.
•
Movie Screening – “Golden Compass”
About 60 members attended this movie screening on 8 December.
45
46
COMMITTEES REVIEW
SPORTS COMMITTEE
Yim Kam May – Chairperson
Neo Peck Hwee, Belinda
Phua Puay Heng, David
Voo Chih Yeong
Wee Bee Lay, May
Yeo, Rankin Brandt
CPA Games
A total of 19 games were played in this year CPA Games including two new games – floorball and softball.
PricewaterhouseCoopers once again emerged as the overall Champion for this tournament. The Games concluded
successfully with the Award Presentation cum Closing Dinner held on 19 October on board the Cheng Ho Cruise Ship.
Inter-Professional Games (IPG)
This year’s IPG, hosted by the Singapore Medical Association, was actively participated by the six professional bodies of
accountants, architects, doctors, engineers, lawyers and surveyors. The Games ended with a closing dinner cum prize
presentation ceremony held at The Singapore Island Country Club on 17 November. The Institute proudly bagged the first
place for Basketball, Badminton, Bowling, Table Tennis, Snooker and Soccer, and emerged once again as the overall Champion,
through the enthusiastic support and active participation from members.
TASK FORCE ON PRE-ADMISSION COURSE
Cheng Ai Phing – Chairperson
Khoo Teng Aun
Lee Chee Wung
Lian Wee Cheow
Lim Boon Cheng
Tan Mui Siang, Patricia
Toh Kian Leong, Joseph
During the year, the Task Force met to review the developments that took place following the presentations of the Task Force’s
recommendations made to Council and ACRA. The Task Force worked closely with the ICPAS Secretariat and the various
overseas professional bodies to identify a curriculum writer to enhance the ethics module in the Pre-admission course. The
appointed curriculum writer has been identified and a curriculum committee comprising of Ms Cheng Ai Phing, Mr Lim Boon
Cheng and Mr Tom Yee (ICPAS Council member) has been working closely with the writer to enhance the ethics module
curriculum incorporating the principles set out in the International Education Standards of the International Federation of
Accountants.
TAXATION AND LEVIES COMMITTEE
Ong Chin Guan, Noris – Chairman
Miao, Nicholas
Tan Boen Eng - Dy Chairman
Ng Teck Mong, Albert
Boon Suan Lee
Sandison, David Jackson
Khoo Ho Tong
Sum Yee Loong
Liew, Winnie
Tan, Angela
Lo Ngai Hung
Wong Lai Yong
Low Weng Keong
Yee Fook Hong
The Committee continued to deal with the interpretation and practice aspects of tax issues raised by members. During the
year, the Committee provided its comments on various matters including the following consultation papers:
•
Public Consultation on GST Advance Ruling System (ARS) by Inland Revenue Authority (IRAS)
•
Public Consultation on Avoidance of Double Taxation Agreements (DTAs) by Ministry of Finance (MOF)
•
Public Consultation on Draft Income Tax (Amendment) Bill 2007 by MOF
Representatives from the Committee continued to contribute articles to the “Tax Focus” column of the Singapore Accountant.
COMMITTEES REVIEW
YOUNG ACCOUNTANTS GROUP COMMITTEE
Wang, Jack – Chairman
Ho Wah Fong, Alex Kwan Chee Wai, James
Lee Boon Teck
Lee Kim Lin, Eleanor (appointed 18.07.07)
Lim Lay Lian, Jocelyn
Wee Hiang Bing, Terry (appointed 18.07.07)
The Committee organised the following activities:
•
Planning for your career and work life balance
It was a great evening of networking for young accountants as they gathered at National Museum Singapore on 10
April to learn from recruitment firm Robert Half International on the skill sets employers value and appreciate for the
various finance positions. The Committee also invited Ms Claire Chiang to share her secret on work life balance, given her
demanding career as the Senior Vice-President of Banyan Tree Holdings Ltd.
•
MBA Night @ The Blue Room
More than 70 participants attended the networking event, MBA Night @ The Blue Room on 14 June. The event was held at
The Arts House at The Old Parliament. Speakers from various global business schools such as Manchester Business School
Worldwide, The University of Chicago Graduate School of Business, Insead, Melbourne Business School and University of
Nottingham were invited to speak on various topics pertaining to a MBA qualification.
•
Private Equity In Asia
A full house of 300 members from both the Institute and Chartered Financial Analyst Singapore (CFAS) came together
to attend the Private Equity in Asia seminar held at SMU’s Main Auditorium on 21 July. Jointly organised by the Institute
and CFAS, this hugely popular event saw six distinguished speakers touched on the trends, mechanics as well as an
experience sharing session with a key figure involved in a major buyout.
•
NTU Career Seminar
On 9 October, the Committee conducted a career seminar for the National Technological University (NTU) accounting
students. The topic for the seminar was “Private VS Public Accounting”. Over a hundred students turned up for this career
seminar, which was carried out in a lively panel discussion format.
47
48
TECHNICAL PRONOUNCEMENTS
31 December 2007
FINANCIAL REPORTING STANDARDS (FRS)
Issued by the Accounting Standards Council (ASC)
No.
Title
IAS/IFRS Equivalent
Preface to Financial Reporting Standards
Framework for the Preparation and Presentation of Financial Statements
FRS 1
Presentation of Financial Statements
FRS 1 (Revised)
Presentation of Financial Statements
FRS 2
Inventories
FRS 2 (Revised)
Inventories
FRS 7
Cash Flow Statements
FRS 7 (Revised)
FRS 8
Accounting Policies, Changes in Accounting Estimates and Errors
FRS 8 (Revised)
Accounting Policies, Changes in Accounting Estimates and Errors
FRS 10 Events after the Balance Sheet Date
FRS 11
Construction Contracts
FRS 11 (Revised)
Construction Contracts
FRS 12 Income Taxes
FRS 14 Segment Reporting
FRS 16
Property, Plant and Equipment
FRS 16 (Revised)
Property, Plant and Equipment
FRS 17 Leases
FRS 18
Revenue
FRS 19 Employee Benefits
FRS 19 (Revised)
Employee Benefits
FRS 20
Accounting for Government Grants and Disclosure of Government Assistance
FRS 21
The Effects of Changes in Foreign Exchange Rates
FRS 23
Borrowing Costs
FRS 23 (Revised)
Borrowing Costs
FRS 24
Related Party Disclosures
FRS 25
Accounting for Investments
(superseded by FRS 40 from 1.1.2007)
FRS 26
Accounting and Reporting by Retirement Benefit Plans
FRS 27
Consolidated and Separate Financial Statements
FRS 27 (Revised)
Consolidated and Separate Financial Statements
FRS 28
Investments in Associates
FRS 29
Financial Reporting in Hyperinflationary Economies
FRS 31
Interests in Joint Ventures
FRS 32
Financial Instruments: Presentation
FRS 33 Earnings per Share
FRS 33 (Revised)
Earnings per Share
FRS 34
Interim Financial Reporting
FRS 34 (Revised)
Interim Financial Reporting
FRS 36
Impairment of Assets
FRS 36 (Revised)
Impairment of Assets
FRS 37
Provisions, Contingent Liabilities and Contingent Assets
FRS 38
Intangible Assets
FRS 38 (Revised)
Intangible Assets
FRS 39
Financial Instruments: Recognition and Measurement
FRS 40
Investment Property
FRS 41
Agriculture
Yes
Yes
1
1
2
2
7
7
8
8
10
11
11
12
14
16
16
17
18
19
19
20
Effective Date
1.1.2007
1.1.2009
1.1.2005
1.1.2009
1.1.2005
1.1.2009
1.1.2005
1.1.2009
1.1.2007
1.1.2005
1.1.2009
1.1.2007
1.1.2007
1.1.2006
1.1.2009
1.1.2007
1.1.2005
1.1.2007
1.1.2009
1.1.2005
21
1.1.2006
23
1.1.2005
23
1.1.2009
24
1.1.2006
25
1.1.2005
(withdrawn) 26
1.1.2005
27
1.1.2005
27
1.1.2009
28
1.1.2005
29
1.1.2005
31
1.1.2005
32
1.1.2007
33
1.1.2007
33
1.1.2009
34
1.1.2005
34
1.1.2009
36
1.7.2004
36
1.1.2009
37
1.1.2006
38
1.1.2006
38
1.1.2009
39
1.1.2007
40
1.1.2007
41
1.1.2005
FINANCIAL REPORTING STANDARDS (FRS)
(cont’d)
No.
Title
IAS/IFRS Equivalent
FRS 101
FRS 101 (Revised)
FRS 101 (Revised)
FRS 102
FRS 103
FRS 104
FRS 105
FRS 105 (Revised)
FRS 106
FRS 106 (Revised)
FRS 107
FRS 108
First-time Adoption of Financial Reporting Standards
First-time Adoption of Financial Reporting Standards First-time Adoption of Financial Reporting Standards Share-based Payment Business Combinations
Insurance Contracts
Non-current Assets Held for Sale and Discontinued Operations
Non-current Assets Held for Sale and Discontinued Operations
Exploration for and Evaluation of Mineral Resources
Exploration for and Evaluation of Mineral Resources
Financial Instruments: Disclosures Operating Segments Effective Date
IFRS 1
IFRS 1
IFRS 1
IFRS 2
IFRS 3
IFRS 4
IFRS 5
IFRS 5
IFRS 6
IFRS 6
IFRS 7
IFRS 8
1.1.2007
1.1.2008
1.1.2009
1.1.2007
1.1.2007
1.1.2007
1.1.2005
1.1.2009
1.1.2006
1.1.2009
1.1.2007
1.1.2009
SIC/IFRIC Equivalent
Effective Date
Preface
Preface to Interpretations of Financial Reporting Standards
-
INT FRS 7
Introduction of the Euro
7
INT FRS 10
Government Assistance - No Specific Relation to Operating Activities
10
INT FRS 12
Consolidation - Special Purpose Entities
12
Amendment to scope of INT FRS 12 (issued Mar 2005)
– for reference
INT FRS 13
Jointly Controlled Entities - Non-Monetary Contributions 13
by Venturers
INT FRS 15
Operating Leases - Incentives
15
INT FRS 21
Income Taxes - Recovery of Revalued Non-Depreciable Assets
21
INT FRS 25
Income Taxes - Changes in the Tax Status of an Enterprise or 25
its Shareholders
INT FRS 27
Evaluating the Substance of Transactions Involving the 27
Legal Form of a Lease
INT FRS 29
Disclosure - Service Concession Arrangements
29
INT FRS 29 (Revised) Disclosure - Service Concession Arrangements
29
INT FRS 31
Revenue - Barter Transactions Involving Advertising Services
31
INT FRS 32
Intangible Assets - Web Site Costs
32
INT FRS 101
Changes in Existing Decommissioning, Restoration and IFRIC Similar Liabilities
Interpretation 1
INT FRS 101(Revised)Changes in Existing Decommissioning, Restoration and IFRIC Similar Liabilities
Interpretation 1
INT FRS 104
Determining whether an Arrangement contains a Lease
IFRIC Interpretation 4
INT FRS 104 (Revised)Determining whether an Arrangement contains a Lease
INT FRS 105
Rights to Interests arising from Decommissioning, Restoration IFRIC and Environmental Rehabilitation Funds
Interpretation 5
INT FRS 106
Liabilities arising from Participating in a Specific Market – IFRIC Waste Electrical and Electronic Equipment
Interpretation 6
1.1.2005
1.1.2005
1.1.2005
INTERPRETATIONS OF FINANCIAL REPORTING STANDARDS (INT FRS)
No.
Title
1.1.2005
1.1.2005
1.1.2005
1.1.2005
1.1.2005
1.1.2005
1.1.2008
1.1.2005
1.1.2005
1.9.2004
1.1.2009
1.1.2006
1.1.2008
1.1.2007
1.12.2005
49
50
INTERPRETATIONS OF FINANCIAL REPORTING STANDARDS (INT FRS)
(cont’d)
No.
Title
INT FRS 107
Applying the Restatement Approach under FRS 29 Financial Reporting in Hyperinflationary Economies
INT FRS 108
Scope of FRS 102
INT FRS 109
Reassessment of Embedded Derivatives
INT FRS 110
Interim Financial Reporting and Impairment
INT FRS 111
FRS 102 - Group and Treasury Share Transactions
INT FRS 112
Service Concession Arrangements
INT FRS 112 (Revised)Service Concession Arrangements
SIC/IFRIC Equivalent
Effective Date
1.3.2006
1.5.2006
1.6.2006
1.11.2006
1.3.2007
1.1.2008
1.1.2009
EXPOSURE DRAFTS OF FINANCIAL REPORTING STANDARDS AND
INTERPRETATIONS OF FINANCIAL REPORTING STANDARDS (ED FRS AND ED INT FRS)
Title
ED of Proposed Amendments to FRS 39 Financial Instruments: Exposures Qualifying for Hedge Accounting (issued December
2007)
ED 9 Joint Arrangements (issued December 2007)
ED 9 Illustrative Examples (issued December 2007)
ED 9 Basis of Conclusions (issued December 2007)
ED of Proposed Improvements to Financial Reporting Standards (issued December 2007)
ED INT FRS – Hedges of a Net Investment in a Foreign Operation (issued August 2007)
ED INT FRS – Real Estate Sales (issued July 2007)
ED FRS Small and Medium-size Entities (issued March 2007)
Draft Implementation Guidance
ED Proposed Amendments to FRS 24 Related Party Disclosures (issued March 2007)
ED Proposed Amendments to FRS 101 First-time Adoption of Financial Reporting Standards – Cost of an Investment in a
Subsidiary (issued February 2007)
SINGAPORE STANDARDS ON AUDITING (SSA)
No.
Title
ISA Equivalent
Preface to the Singapore Standards on Quality Control, Auditing, Review, Yes
Other Assurance and Related Services (Revised)
Preface to Singapore Standards on Quality Control, Auditing, Assurance and Related Services
Yes
Glossary of Terms
Yes
Framework for Assurance Engagements
Yes
Effective Date
(Annual periods beginning on or after)
15.12.09
Sep 96
Audit report date: 1.1.05
51
(cont’d)
No.
Title
ISA Equivalent
200 – 299 General Principles and Responsibilities
SSA 200 Objective and General Principles Governing an Audit of Financial Statements 200
SSA 210
Terms of Audit Engagements
210
SSA 210 (Revised) Terms of Audit Engagements
210
SSA 220 Quality Control for Audits of Historical Financial Information
220
SSA 230
Audit Documentation 230
SSA 240 (Revised) The Auditor’s Responsibilities Relating to Fraud in an Audit of 240
SSA 240
The Auditor’s Responsibility to Consider Fraud in an Audit of 240
SSA 250
Consideration of Laws and Regulations in an Audit of 250
SSA 260
Communications of Audit Matters with Those Charged with Governance
260
300 – 499 Risk Assessment and Response to Assessed Risks
SSA 300 (Revised) Planning an Audit of Financial Statements
300
SSA 300
Planning an Audit of Financial Statements
300
SSA 315 (Revised) Identifying and Assessing the Risks of Material Misstatement 315
Through Understanding the Entity and Its Environment
SSA 315
Understanding the Entity and Its Environment and Assessing the
315
Risks of Material Misstatement
SSA 320
Audit Materiality
320
SSA 330 (Revised) The Auditor’s Responses to Assessed Risks
330
SSA 330
The Auditor’s Procedures in Response to Assessed Risks
330
SSA 402
Audit Considerations Relating to Entities using Service Organisations
402
500 – 599 Audit Evidence
SSA 500
Audit Evidence
500
SSA 501
Audit Evidence – Additional Considerations for Specific Items
501
SSA 505
External Confirmations
505
SSA 510
Initial Engagements – Opening Balances
510
SSA 520
Analytical Procedures
520
500 – 599 Audit Evidence
SSA 530
Audit Sampling and Other Means of Testing
530
SSA 540
Audit of Accounting Estimates
540
SSA 545
Auditing Fair Value Measurements and Disclosures
545
SSA 550
Related Parties
550
SSA 560 Subsequent Events
560
SSA 570
Going Concern
570
SSA 580
Management Representations
580
Effective Date
15.12.05
15.12.04
Deferred
15.6.05
15.06.06
15.12.09
15.12.04
15.12.04
15.12.04
15.12.09
15.12.04
15.12.09
15.12.04
15.12.04
15.12.09
15.12.04
15.12.04
15.12.04
15.12.04
15.12.04
15.12.04
15.12.04
15.12.04
15.12.04
15.12.04
15.12.04
15.12.04
15.12.04
52
(cont’d)
No.
Title
ISA Equivalent
Effective Date
600 – 699 Using Work of Others
SSA 600
Using the Work of Another Auditor
600
SSA 610
Considering the Work of Internal Auditing
610
SSA 620
Using the Work of an Expert
620
1.1.97
15.12.04
15.12.04
700 – 799 Audit Conclusions and Reporting
SSA 700 The Independent Auditor’s Report on a Complete Set of 700
General Purpose Financial Statements
SSA 701
Modifications to the Independent Auditor’s Report
701
SSA 710
Comparatives
710
SSA 720
Other Information in Documents Containing Audited 720
800 – 899 Specialised Areas
SSA 800
The Independent Auditor’s Report on Special Purpose 800
Audit Engagements
Audit report date:
31.12.06
15.12.04
15.12.04
SINGAPORE STANDARDS ON REVIEW ENGAGEMENTS (SSRE)
SSRE 2400
SSRE 2410
Engagements to Review Financial Statements (previously SSA 910)
Review of Interim Financial Information Performed by the Independent Auditor of the Entity
ISRE 2400
ISRE 2410
1.1.97
15.12.06
Assurance Engagements other than Audits or Reviews of ISAE 3000
Historical Financial Information
The Examination of Prospective Financial Information
ISAE 3400
(previously SSA 810)
Audit report date:
1.1.05
1.7.01
SINGAPORE STANDARDS ON ASSURANCE ENGAGEMENTS (SSAE)
SSAE 3000
SSAE 3400
SINGAPORE STANDARDS ON RELATED SERVICES (SSRS)
SSRS 4400
SSRS 4410
Engagements to Perform Agreed-upon Procedures Regarding Financial Information (previously SSA 920)
Engagements to Compile Financial Information (previously SSA 930)
ISRS 4400
1.1.97
ISRS 4410
1.1.97
ISQC 1
Date: 15.6.05
SINGAPORE STANDARD ON QUALITY CONTROL (SSQC)
SSQC 1
Quality Control for Firms That Perform Audits and Reviews of Historical Financial Information, and Other Assurance and
Related Services Engagements
53
STATEMENTS OF AUDITING PRACTICE (SAP)
No.
Title
IAPS Equivalent
SAP 19
SAP 24
SAP 25
SAP 1000
SAP 1004
SAP 1005
SAP 1006
SAP 1010
SAP 1012
SAP 1013
SAP 1014
Guidance to Auditors on Money Laundering and Terrorism Financing
Auditors and Public Offering Documents
Audit of Listed Companies
Inter-Bank Confirmation Procedures
The Relationship Between Banking Supervisors and Banks’ External Auditors
The Special Considerations in the Audit of Small Entities
Audits of the Financial Statements of Banks
The Consideration of Environmental Matters in the Audit of Financial Statements
Auditing Derivative Financial Instruments
Electronic Commerce – Effect on the Audit of Financial Statements
Reporting by Auditors on Compliance with Financial Reporting Standards
1000
1004
1005
1006
1010
1012
1013
1014
AUDIT GUIDANCE STATEMENTS (AGS)
No.
Title
Effective Date
(Annual periods beginning on or
after)
Preface to Audit Guidance Statements
AGS 1
Sample Auditor’s Reports AGS 2
Verification of Debtor Balances – Confirmation by Direct Communication
(previously SAP 1)
AGS 3
Microfilm Records and their Audit Implications (previously SAP 3)
AGS 4
Existence and Valuation of Inventories in the Context of the Historical Cost System
(previously SAP 4)
AGS 5
Audits of Entities in Specific Industries, Professions or Vocations
(previously SAP 7, SAP 8 and SAP 9)
AGS 6
Bank Reports for Audit Purposes (previously SAP 10)
AGS 7
Value for Money Auditing In a Statutory Board (previously SAP 18)
AGS 8
Reports on the Internal Control Procedures of Service Organisations
EXPOSURE DRAFTS OF SINGAPORE STANDARDS ON AUDITING AND
STATEMENTS OF AUDITING PRACTICE (ED/SSA AND ED/SAP)
No.
Title
ED/SSA 505
ED/SSA 620
ED/SSQC 1
ED/SSA 220
ED/SSA 510
ED/SSA 530
ED/SSA 700
ED/SSA 705
ED/SSA 706
ED/SSA 800
External Confirmations (issued November 2007)
Using the Work of an Auditor’s Expert (issued November 2007)
Quality Control for Firms that Perform Audits and Reviews of Financial Statements, and Other Assurance and Related Services Engagements (issued August 2007)
Quality Control for an Audit of Financial Statements (issued August 2007)
Initial Audit Engagements - Opening Balances (issued August 2007)
Audit Sampling (issued August 2007)
The Independent Auditor’s Report on General Purpose Financial Statements (issued August 2007)
Modifications to the Opinion in the Independent Auditor’s Report (issued August 2007)
Emphasis of Matter Paragraphs and Other Matter(s) Paragraphs in the Independent Auditor’s Report
(issued August 2007)
Special Considerations - Audits of Special Purpose Financial Statements and Specific Elements, Accounts or Items of a Financial Statement (issued August 2007)
54
EXPOSURE DRAFTS OF SINGAPORE STANDARDS ON AUDITING AND
STATEMENTS OF AUDITING PRACTICE (ED/SSA AND ED/SAP)
(cont’d)
No.
Title
ED/SSA 805
ED/SSA 200
ED/SSA 250
ED/SSA 500
ED/SSA 550
ED/SSA 570
ED/SSA 230
ED/SSA 540
ED/SSA 560
ED/SSA 580
ED/SSA 610
ED/SSA 720
ED/SSA 260
ED/SSA 320 & ED/SSA 450 ED/SSA 600 (Revised)
ED/SAP XX
Engagements to Report on Summary Financial Statements (issued August 2007)
Overall Objective of the Independent Auditor, and the Conduct of an Audit in Accordance with
Singapore Standards on Auditing (issued May 2007)
The Auditor’s Responsibilities Relating to Laws and Regulations in an Audit of Financial Statements
(issued May 2007)
Considering the Relevance and Reliability of Audit Evidence (issued May 2007)
Related Parties (issued March 2007)
Going Concern (issued March 2007)
Audit Documentation (issued January 2007)
Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures
(issued January 2007)
Subsequent Events (issued January 2007)
Written Representations (issued January 2007)
The Auditor’s Consideration of the Internal Audit Function (issued January 2007)
The Auditor’s Responsibility in Relation to Other Information in Documents Containing Audited
Financial Statements (issued January 2007)
Communication with Those Charged with Governance (issued Nov 2006)
Materiality in Planning and Performing an Audit and Evaluation of Misstatements Identified during the Audit (issued Nov 2006) The Audit of Group Financial Statements (issued March 2006)
Comfort Letters and Other Assistance for Public Offerings of Equity Securities in Singapore
(issued December 2004)
STATEMENTS OF RECOMMENDED ACCOUNTING PRACTICE (RAP)
No.
Title
Last Update
RAP 6
RAP 7
RAP 8
RAP 9
RAP 10
RAP 11
RAP 12
Accounting and Reporting by Charities
Reporting Framework for Unit Trusts
Foreign Income Not Remitted to Singapore
IPO Costs
FRS 103 Business Combinations - Clarification of transitional provisions
Pre-Completion Contracts For The Sale Of Development Property
Merger Accounting for Common Control Combinations for financial statements prepared under Part IX of the Fifth Schedule to the Securities and Futures
(Offers of Investments) (Shares and Debentures) Regulations 2005
Jun 06
Feb 07
Nov 04
Nov 04
Dec 04
Oct 05
Dec 06
TAXATION AND LEVIES PRACTICE GUIDELINES (TAX)
No.
Title
TAX 1
TAX 2
TAX 3
Clarifications of Tax Matters as at 31 December 1985
Clarifications of Tax Matters
Clarifications of Tax Matters for the period from 1 January 1990 to 30 June 1996
FINANCIAL STATEMENTS
56
57
58
59
60
61
62
Statement by Council
Independent Auditor’s Report
Income and Expenditure Statements
Balance Sheets
Statements of Changes in Accumulated Fund and Miscellaneous Fund
Notes to the Financial Statements
56
STATEMENT BY COUNCIL
On behalf of the Council of the Institute of Certified Public Accountants of Singapore (the “Institute”), we, Tan Boen Eng
and Khoo Ho Tong being the President and Treasurer respectively, do hereby state that in our opinion, the consolidated
financial statements of the Group and financial statements of the Institute set out on pages 58 to 78 are properly drawn
up in accordance with the provisions of the Societies Act and Singapore Financial Reporting Standards so as to give a true
and fair view of the state of affairs of the Group and the Institute as at 31 December 2007 and of its results, changes in
accumulated and miscellaneous funds and cash flows of the Group and the Institute for the financial year ended on that date.
Tan Boen Eng President Date: 13 February 2008
Khoo Ho Tong
Treasurer
INDEPENDENT AUDITOR’S REPORT
To members of the Institute of Certified Public Accountants of Singapore
We have audited the accompanying financial statements of the Institute of Certified Public Accountants of Singapore (the
“Institute”) and its subsidiaries (collectively, the “Group”) set out on pages 58 to 78, which comprise the balance sheets of
the Group and the Institute as at 31 December 2007, the income and expenditure statements, statements of changes in the
accumulated fund and miscellaneous fund and cash flow statement of the Group and the Institute for the year then ended
and a summary of significant accounting policies and other explanatory notes. The financial statements of the financial year
ended 31 December 2006 were audited by another firm of Certified Public Accountants whose report dated 21 February 2007
expressed an unqualified opinion on those financial statements.
The Council’s Responsibility for the Financial Statements
The Council is responsible for the preparation and fair presentation of these financial statements in accordance with
the provisions of the Societies Act and Singapore Financial Reporting Standards. This responsibility includes designing,
implementing and maintaining internal controls relevant to the preparation and fair presentation of financial statements
that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting
policies; and making accounting estimates that are reasonable in the circumstances.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in
accordance with Singapore Standards on Auditing. Those Standards require that we comply with ethical requirements and plan
and perform the audit to obtain reasonable assurance as to whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal controls relevant to the entity’s preparation and fair presentation of the financial statements in order to
design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity’s internal controls. An audit also includes evaluating the appropriateness of accounting policies
used and the reasonableness of accounting estimates made by the Council, as well as evaluating the overall presentation of
the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion,
(a) the consolidated financial statements of the Group and the financial statements of the Institute are properly drawn up
in accordance with the provisions of the Societies Act and Singapore Financial Reporting Standards so as to give a true
and fair view of the state of affairs of the Group and of the Institute at 31 December 2007 and the results, changes in
accumulated fund and miscellaneous fund and cash flows of the Group and the Institute for the year ended on that date;
and
(b) the accounting and other records required by the regulations enacted under the Societies Act to be kept by the Institute
have been properly kept in accordance with those regulations.
Baker Tilly TFWLCL
Certified Public Accountants, Singapore
Date: 13 February 2008
57
58
INCOME AND EXPENDITURE STATEMENTS
For the financial year ended 31 December 2007
Note
Group
2007
$
Institute
2006
$
2007
$
FEE INCOME FOR THE YEAR
Members’ annual fees
2,645,770
2,534,130
2,645,770
Members’ admission fees
272,400
213,400
272,400
2,918,170
2,747,530
2,918,170
LESS EXPENDITURE
Administrative expenses
3
(4,916,250)
(4,107,638) (4,855,988)
Deficit from operating activities
(1,998,080)
(1,360,108) (1,937,818)
OTHER INCOME
4
872,329
(1,125,751)
Net surplus from the Academy
6
Total surplus from operating activities
4,770,209
3,644,458
Share of profit of associates (net of tax)
Total surplus before tax
38,858
3,683,316
Income tax expense
7
(658,836)
2,534,130
213,400
2,747,530
(4,057,036)
(1,309,506)
662,787
(1,275,031)
554,553
(754,953)
2,585,289
1,934,505
4,770,209
3,495,178
2,585,289
1,830,336
41,568
1,976,073
–
3,495,178
–
1,830,336
709,324
(650,784)
(438,009)
(645,718)
TOTAL SURPLUS AFTER INCOME TAX TRANSFERRED TO ACCUMULATED FUND
3,024,480
1,538,064
2,849,460
The accompanying notes form an integral part of these financial statements.
2006
$
(427,219)
1,403,117
59
BALANCE SHEETS
At 31 December 2007
Note
Group
2007
$
Institute
2007
$
2006
$
NON-CURRENT ASSETS
Property, plant and equipment
8
41,428,866
41,621,206 41,428,866
Investment in subsidiaries
16
–
–
3
Associates
9
80,426
41,568
–
41,509,292
41,662,774 41,428,869
41,621,206
3
–
41,621,209
CURRENT ASSETS
Inventories
36,209
–
Trade and other receivables
10
597,094
1,858,266
Amount due by subsidiaries
16
–
–
Amount due by associates
16
–
1,725
Fixed deposits
15
3,992,157
857,457
Cash and bank balances
15
2,462,646
1,340,128
7,088,106
4,057,576
TOTAL ASSETS
48,597,398
45,720,350
–
1,854,938
17,076
1,725
310,086
1,260,961
3,444,786
45,065,995
2006
$
36,209
592,998
109,765
–
3,234,241
2,339,358
6,312,571
47,741,440
NON-CURRENT LIABILITIES
Bank loans (secured)
12
5,111,111
6,444,445
5,111,111
Finance lease liabilities
13
171,867
218,389
171,867
Deferred tax liabilities
96,300
96,300
96,300
5,379,278
6,759,134
5,379,278
CURRENT LIABILITIES
Trade and other payables 11
1,998,178
1,642,276
1,984,767
Amount due to associate
3,298
–
3,298
Course fee received in advance
3,009,214
1,877,361
3,009,214
Subscription fee received in advance
620,871
510,739
535,801
Bank loans (secured)
12
1,333,333
1,333,333
1,333,333
Finance lease liabilities
13
97,018
87,969
97,018
Current tax payable
686,339
1,043,409
673,221
7,748,251
6,495,087
7,636,652
TOTAL LIABILITIES
13,127,529
13,254,221 13,015,930
1,630,356
–
1,877,361
448,433
1,333,333
87,969
1,032,619
6,410,071
13,169,205
NET ASSETS
35,469,869
6,444,445
218,389
96,300
6,759,134
32,466,129
34,725,510
31,896,790
Represented by
Accumulated fund
35,466,136
32,441,656
Miscellaneous fund
14
3,733
24,473
35,469,869
32,466,129
34,721,777
3,733
34,725,510
31,872,317
24,473
31,896,790
60
STATEMENTS OF CHANGES IN ACCUMULATED FUND
AND MISCELLANEOUS FUND
Note Accumulated Miscellaneous
fund
fund
$
$
GROUP
Balance at 1 January 2006
30,903,592
38,315
Total surplus for the year
1,538,064
–
Net decrease for the year
14
–
(13,842)
Balance at 31 December 2006
32,441,656
24,473
3,024,480
–
14
–
(20,740)
BALANCE AT 31 DECEMBER 2007 35,466,136
3,733
INSTITUTE
Balance at 1 January 2006
30,469,200
38,315
1,403,117
–
14
–
(13,842)
Balance at 31 December 2006
31,872,317
24,473
2,849,460
–
14
–
(20,740)
BALANCE AT 31 DECEMBER 2007 34,721,777
3,733
Total
$
30,941,907
1,538,064
(13,842)
32,466,129
3,024,480
(20,740)
35,469,869
30,507,515
1,403,117
(13,842)
31,896,790
2,849,460
(20,740)
34,725,510
61
CASH FLOW STATEMENTS
Group
2007
$
Institute
2006
$
2007
$
CASH FLOWS FROM OPERATING ACTIVITIES
3,683,316
1,976,073
3,495,178
Adjustments for:
Depreciation for property, plant and equipment
902,431
612,079
902,431
Interest on finance leases
15,856
15,224
15,856
Loan interest
306,764
88,234
306,764
Impairment loss of trade receivables
53,787
–
53,787
Interest income
(54,512)
(113,299)
(43,195)
Share of profit of associates
(38,858)
(41,568)
–
Gain on disposal of property, plant and equipment
(182)
(200)
(182)
Property, plant and equipment written off
72,171
983
72,171
Operating surplus before working capital changes
4,940,773
2,537,526
4,802,810
Inventory
(36,209)
–
(36,209)
Receivables
1,211,142
(1,197,837)
1,118,503
Subscription fees received in advance
110,133
210,153
87,368
Payables
359,200
633,430
357,709
Course fees received in advance
1,131,853
43,292
1,131,853
Miscellaneous fund
(20,740)
(13,842)
(20,740)
Cash generated from operations
7,696,152
2,212,722
7,441,294
Income tax paid
(1,015,906)
(1,208) (1,005,116)
Net cash from operating activities
6,680,246
2,211,514
6,436,178
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received
52,479
169,175
41,881
Purchase of property, plant and equipment
(723,404) (15,575,566)
(723,404)
Proceeds from disposal of property, plant
and equipment
4,423
200
4,423
Net cash used in investing activities
(666,502) (15,406,191)
(677,100)
2006
$
1,830,336
612,079
15,224
88,234
–
(103,649)
–
(200)
983
2,443,007
–
(1,068,904)
193,107
623,865
43,292
(13,842)
2,220,525
–
2,220,525
159,790
(15,575,566)
200
(15,415,576)
CASH FLOWS FROM FINANCING ACTIVITIES
Interest paid on finance leases
(15,856)
(15,224)
(15,856)
Loan interest paid
(306,764)
(88,234)
(306,764)
Proceeds from bank loan –
8,000,000
–
Repayment of principal loan
(1,333,334)
(222,222) (1,333,334)
Repayment of finance lease liabilities
(100,572)
(92,523)
(100,572)
Net cash (used in)/generated from financing activities
(1,756,526)
7,581,797
(1,756,526)
(15,224)
(88,234)
8,000,000
(222,222)
(92,523)
7,581,797
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR CASH AND CASH EQUIVALENTS AT END OF YEAR (NOTE 15)
(5,613,254)
7,184,301
1,571,047
4,257,218
2,197,585
6,454,803
(5,612,880)
7,810,465
2,197,585
4,002,552
1,571,047
5,573,599
62
NOTES TO THE FINANCIAL STATEMENTS
These notes form an integral part of and should be read in conjunction with the accompanying financial statements.
1 CORPORATE INFORMATION
The Institute (ROS Ref No. 0137/2004) is the national organisation of the accountancy profession in Singapore. It was established
in June 1963 as the Singapore Society of Accountants (SSA) under the SSA Ordinance 1963, then reconstituted and renamed the
Institute of Certified Public Accountants of Singapore (ICPAS) on 11 February 1989 under the Accountants Act 1987. As of 1 April
2004, ICPAS is reconstituted as a society under the Societies Act. The restructuring is primarily a change of form for the Institute
as ICPAS continues to be the national body for the accountancy profession in Singapore and its functions remain unchanged.
The registered office of the Institute is located at 20 Aljunied Road, #06-02 CPA House, Singapore 389805.
The principal activities of the Institute are those of administering the Institute’s membership, catering for the training and
professional development of its members.
The consolidated financial statements relate to the Institute and its subsidiaries (together referred to as the Group) and the
Group’s interests in associates.
2 SIGNIFICANT ACCOUNTING POLICIES
a)
Basis of preparation
The financial statements of the Group have been prepared in accordance with the Societies Act and Singapore Financial
Reporting Standards (FRS).
The financial statements, which are presented in Singapore dollars, have been prepared on historical cost basis except
as disclosed in the accounting policies below.
The accounting policies have been consistently applied by the Group and the Institute and are consistent with those
used in the previous financial year.
The preparation of financial statements in conformity with FRS requires the use of estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of income and expenditure during the financial year. Although these
estimates are based on the Council’s best knowledge of current events and actions and historical experiences and
various other factors that are believed to be reasonable under the circumstances, actual results may ultimately differ
from those estimates. There were no significant judgments and estimates made during the year.
The Group has not applied the following new/revised FRS or interpretations that have been issued as of the balance
sheet date but are not yet effective:
FRS 23
FRS 107
FRS 108
INT FRS 111
INT FRS 112
Amendments to FRS 1
Borrowing Costs
Financial Instruments: Disclosures
Operating Segments
FRS 102 – Group and Treasury Share Transactions
Service Concession Arrangements
Presentation of Financial Statements on Capital Disclosure
The initial application of these standards and interpretations, where applicable, are not expected to have any material
impact on the Group’s financial statements.
b)
Consolidation
Subsidiaries
A subsidiary is an entity over which the Group has the power to govern the financial and operating policies so as to
obtain benefits from its activities. The financial statements of the subsidiaries are included in the consolidated financial
statements from the date of the control commences until the date that control ceases. Intra-group transactions and
balances are eliminated in preparing the consolidated financial statements.
2 SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
b)
Consolidation (cont’d)
Associates
Associates are those entities in which the Group has significant influence, but not control, over their financial and
operating policies. The Group’s investments in associates are accounted for using the equity method. The consolidated
financial statements include the Group’s share of the profit or loss of the associates from the date that significant
influence commences until the date that significant influence ceases. When the Group’s share of losses exceeds its
interest in an associate, the carrying amount of that interest (including any long-term investments) is reduced to zero
and the recognition of further losses is discontinued except to the extent that the Group has an obligation or has made
payments on behalf of the associate.
Accounting for subsidiaries and associates by the Institute
In the Institute’s separate financial statements, investments in subsidiaries and associates are stated at cost less
impairment losses.
c)
Functional and foreign currencies
Functional currency
Items included in the consolidated financial statements are measured using the currency that best reflects the
economic substance of the underlying events and circumstances relevant to the Institute and its subsidiaries (“the
functional currency”). The consolidated financial statements are presented in Singapore dollars, which is the functional
currency of the Institute and its subsidiaries.
Foreign currencies
Transactions in foreign currencies are translated into the functional currency using the exchange rate in effect at the
date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are
translated into the functional currency at the rates ruling at that date. All exchange differences are taken to the income
and expenditure statement.
d)
Inventories
Inventories, comprising accounting books and manuals, are stated at the lower of cost and net realisable value. Cost is
calculated using the first-in, first-out method.
e)
Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses.
Cost includes expenditure that is directly attributable to the acquisition of the asset and costs of bringing the asset to
working condition for its intended use. Dismantlement, removal or restoration costs are included as part of the cost of
asset if the obligation for dismantlement, removal or restoration costs is incurred as a consequence of acquiring or using
the asset. Expenditure for additions, improvements and renewals are capitalised and expenditure for maintenance
and repairs are charged to the income and expenditure statement. The cost of replacing part of an item of property,
plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits
embodied within the part will flow to the Group and its cost can be measured reliably. The costs of the day-to-day
servicing of property, plant and equipment are recognised in the income and expenditure statement as incurred.
Depreciation of property, plant and equipment is calculated on the straight-line basis to write off the cost less residual
value of the assets over their estimated useful lives as follows:
Freehold buildings
Furniture and office equipment
Computers
Renovation
Freehold land is not depreciated.
50 years
3 to 10 years
3 to 4 years
3 to 5 years
63
64
e)
Property, plant and equipment (cont’d)
Depreciation methods, useful lives and residual values are reviewed, and adjusted as appropriate, at each financial yearend.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are
expected from its use or disposal. Any gain or loss arising on derecognition of the asset is included in the income and
expenditure statement in the year the asset is derecognised.
f)
Impairment of non-financial assets
The carrying amounts of the Group’s assets are reviewed at each reporting date to determine whether there is any
indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated.
An impairment loss is recognised in the income and expenditure statement if the carrying amount of an asset or its
cash-generating unit exceeds its recoverable amount. A cash-generating unit is the smallest identifiable asset group
that generates cash flows that largely are independent from other assets and groups.
The recoverable amount of an asset or cash-generating unit is the higher of its fair value less costs to sell and its value in
use. In assessing the value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or
cash-generating unit.
Impairment losses recognised in prior years are assessed at each reporting date for any indications that the loss has
decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to
determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount
does not exceed the carrying amount that would have been determined, net of depreciation, if no impairment loss has
been recognised. Reversal of impairment loss is recorded in income and expenditure statement. After such a reversal,
the depreciation charge is adjusted in future periods to allocate the asset’s revised carrying amount, less any residual
value, on a systematic basis over its remaining useful life.
g) Financial assets
Classification, recognition and measurement
Financial assets are classified as either financial assets at fair value through profit or loss, loans and receivables, held-tomaturity investments or available-for-sale financial assets as appropriate. Financial assets are recognised on the balance
sheet when, and only when, the Group becomes a party to the contractual provisions of the financial instrument.
When financial assets are recognised initially, they are measured at fair value, plus, in the case of financial asset not at
fair value through profit or loss, directly attributable transaction costs. The Group determines the classification of its
financial assets at initial recognition and re-evaluates this designation at each financial year-end, with the exception
that the designation of financial assets at fair value through profit or loss is not revocable.
The Group does not have the following financial assets: financial assets at fair value through profit or loss, held-tomaturity investments and available-for-sale financial assets.
Non-derivative financial assets with fixed or determinable payments that are not quoted in an active market are
classified as loans and receivables. Such assets are carried at amortised cost using the effective interest method, less
impairment losses. Gains and losses are recognised in the income and expenditure statement when the loans and
receivables are derecognised or impaired, as well as through the amortisation process.
The Group classifies the following financial assets as loans and receivables:
•
Cash and cash equivalents
•
Trade and other receivables including amounts due from subsidiary and an associate
g) Financial assets (cont’d)
Impairment of financial assets
The Group assesses at each balance sheet date whether there is any objective evidence that a financial asset or a group
of financial assets is impaired.
Assets carried at amortised cost
If there is objective evidence that an impairment loss on financial assets carried at amortised cost has been incurred,
the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of the
estimated future cash flows discounted at the financial asset’s original effective interest rate. The carrying amount of
the asset is reduced through the use of an allowance account and the amount of the loss is recognised in the income
and expenditure statement.
If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to
an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed. Any
subsequent reversal of an impairment loss is recognised in the income and expenditure statement to the extent that
the carrying value of the asset does not exceed its amortised cost at the reversal date.
Derecognition of financial assets
A financial asset is derecognised when the contractual rights to receive cash flows from the asset have expired.
On derecognition of a financial asset, the difference between the carrying amount and the sum of (a) the consideration
received and (b) any cumulative gain or loss that has been recognised directly in equity is recognised in the income and
expenditure statement.
h) Trade and other receivables
Trade receivables and other receivables are classified and accounted for as loans and receivables under FRS 39 Financial
Instruments: Recognition and Measurement (FRS 39). They are recognised initially at fair value and subsequently
measured at amortised cost using the effective interest method, less allowance for impairment. An allowance for
impairment of trade and other receivables is established when there is evidence that the Group will not be able to
collect all amounts due according to the original terms of the receivables. The amount of the allowance is recognised in
the income and expenditure statement.
i) Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and bank balances and fixed deposits with financial institutions.
j) Cash on hand and in banks and fixed deposits are classified and accounted for as loans and receivables under FRS 39.
The accounting policy is stated in Note 2 (f ).
Financial liabilities
Financial liabilities include trade payables, other amounts payable and interest-bearing loans. Financial liabilities are
recognised on the balance sheet when, and only when, the Group becomes a party to the contractual provisions of
the financial instrument. Financial liabilities are initially recognised at fair value of consideration received less directly
attributable transaction costs and subsequently measured at amortised cost using the effective interest rate method.
Gains and losses are recognised in the income and expenditure statement when the liabilities are derecognised as
well as through the amortisation process. The liabilities are derecognised when the obligation under the liability is
discharged or cancelled or expired.
k)
Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) where, as a result of a past
event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation
65
66
k)
Provisions (cont’d)
and a reliable estimate can be made of the amount of the obligation. Provisions are reviewed at each balance sheet date
and adjusted to reflect the current best estimate. Where the effect of time value of money is material, the amount of the
provision is the present value of the expenditure expected to be required to settle the obligation.
l)
Leases
Finance leases
Leases of assets in which the Group assumes substantially the risks and rewards of ownership are classified as finance
leases. Property, plant and equipment acquired through finance leases are capitalised at the inception of the lease at
the lower of its fair value and the present value of the minimum lease payments. Subsequent to the initial recognition,
the asset is accounted for in accordance with the accounting policy applicable to that asset. Lease payments are
apportioned between the finance charges and reduction of the lease liability so as to achieve a constant rate of interest
on the remaining balance of the liability. Finance charges are charged to the income and expenditure statement.
Operating leases
Leases of assets in which a significant portion of the risks and rewards of ownership are retained by the lessor are
classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor)
are taken to the income and expenditure statement on a straight-line basis over the period of the lease.
When an operating lease is terminated before the lease period has expired, any payment required to be made to the
lessor by way of penalty is recognised as an expense in the period in which termination takes place.
m)
Revenue Recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the
revenue can be reliably measured.
Members’ annual and admission fees, students’ fees and students’ administration fees and CATS & ATTS fees are
recognised when due.
Course fees (from continuing professional education and training) are recognised when the services are rendered.
Advertising income is recognised when advertisement is placed.
Interest income is recognised as the interest accrues based on effective interest rate method unless collectibility is in
doubt.
Sundry income, arising mainly from the sale of Members’ Handbooks, are recognised when the goods sold are delivered.
n)
Employee Benefits
Pension Obligations
As required by law, the Group makes contributions to the state pension scheme, the Central Provident Fund (CPF)
Scheme which is a defined contribution pension scheme. Contributions to CPF are recognised as expense in the period
in which the related service is performed.
Employee Leave Entitlement
Employee entitlements to annual leave are recognised when they accrue to employees. The estimated liability for leave
is recognised for services rendered by employees up to the balance sheet date.
o)
Income Tax
Income tax for the financial year comprises current and deferred tax. Income tax is recognised in the income and
expenditure statement except to the extent that it relates to items recognised directly in equity, in which case it is
recognised in equity.
67
o)
Income Tax (cont’d)
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively
enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years.
Deferred tax is recognised, using the balance sheet method, providing for all temporary differences at the balance sheet
date between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax
is not recognised for the initial recognition of assets or liabilities that affect neither accounting nor taxable profit.
Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they
reverse, based on the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.
A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against
which temporary differences can be utilised. Deferred tax assets are reviewed at each balance sheet date and are
reduced to the extent that it is no longer probable that the related tax benefit will be realised.
3 ADMINISTRATIVE EXPENSES
Secretariat
Group
Institute
2007
$
2006
$
2007
$
2006
$
Auditors’ remuneration
22,000
Computer and office equipment maintenance
18,471
CPF
185,131
Depreciation of property, plant and equipment (Note 9)
521,804
Employee benefit expenses
29,350
Exchange (gain)/Loss
(20)
Finance costs
- Interest on finance lease
1,664
- Interest on loan
306,764
General expenses
110,961
ICPAS scholarship
12,000
Insurance premiums
20,002
Journal and publication
319,276
Legal and professional fees
38,655
Library expenses
15,696
Lights and power
26,275
Marketing and promotion
328,531
Office maintenance and air conditioning
210,037
Postage and telecommunications
43,270
Practice Monitoring Division (Note 5)
180,910
Printing and stationery
25,927
8,504
Property tax
113,440
Regional and international conferences
85,831
Rental expenses
11,964
Salaries and bonuses 1,738,584
Seminars and talks
83,504
Social and hospitality 290,618
Subscriptions to accountancy bodies
110,617
Transport
5,879
Website expenses
50,605
4,916,250
14,800
14,984
159,231
307,124
41,516
–
18,000
18,471
185,131
521,805
29,350
(20)
12,500
14,984
159,231
307,124
41,516
–
1,954
88,234
96,170
12,000
14,163
272,849
27,943
13,844
27,814
401,636
220,427
48,184
170,060
24,608
–
68,103
54,808
11,267
1,485,067
66,945
316,959
107,424
5,024
34,500
4,107,638
1,664
306,764
54,861
12,000
20,002
319,276
38,655
15,696
26,275
328,531
210,037
43,270
180,910
25,763
8,504
113,440
85,831
11,964
1,738,585
83,504
290,618
110,617
5,879
50,605
4,855,988
1,954
88,234
49,985
12,000
14,163
272,849
27,943
13,844
27,814
401,636
220,427
47,974
170,060
22,701
–
68,103
54,808
11,267
1,485,067
66,945
316,959
107,424
5,024
34,500
4,057,036
68
4 OTHER INCOME
Group
Institute
2007
$
2006
$
2007
$
2006
$
Advertising income
CATS & ATTS fees
Interest income from fixed deposits and bank balances
Management fee charged to subsidiaries and associate
Penalty fees
Sundry income
Website income
105,094
364,225
182
54,512
6,800
2,520
330,821
8,175
872,329
104,848
311,121
–
113,299
–
4,760
170,286
5,010
709,324
105,094
–
182
43,195
172,800
2,520
330,821
8,175
662,787
104,848
–
–
103,649
166,000
4,760
170,286
5,010
554,553
5 PRACTICE MONITORING DIVISION
Fee income
Sundry income
Less expenses :
CPF
Depreciation of property, plant and equipment (Note 9)
Salaries and bonuses Net deficit
Group & Institute
2007
2006
$ $
80,350
12,243
111,000
2,211
(100,973)
(14,932)
(6,320)
(151,278)
(273,503)
(180,910)
(28,333)
(22,415)
(1,511)
(231,012)
(283,271)
(170,060)
6 NET SURPLUS FROM THE ACADEMY
(i)
Fee income
Less expenses :
Course materials
CPF
Depreciation of property, plant andequipment (Note 8)
Interest on finance lease
Lecturers’ fees
Salaries and bonuses Surplus on CPE
Group & Institute
2007
2006
$ $
1,815,075
1,778,638
(336,279)
(50,066)
(24,335)
(52,263)
(2,161)
(514,620)
(4,311)
(209,105)
(1,193,140)
621,935
(572,554)
(27,470)
(23,929)
(41,232)
(3,000)
(514,617)
–
(213,385)
(1,396,187)
382,451
69
6 NET SURPLUS FROM THE ACADEMY (CONT’D)
(ii) Training courses for ACCA, ATT, CAT, PAC, SAT, STT, and others
Fee income
Doubtful receivables recovered
Less expenses :
Course manuals
CPF
Depreciation of property, plant andequipment (Note 8)
Exchange gain
Interest on finance lease
Lecturers’ fees
Salaries and bonuses Surplus on training courses
Net surplus from the Academy
7 INCOME TAX EXPENSE
2007
$
CURRENT TAX EXPENSE
Current tax 686,339
(Over)/underprovision in prior year
(27,503)
658,836
DEFERRED TAX EXPENSE
Origination and reversal of temporary differences
–
Underprovision in prior year
–
–
Income tax expense
658,836
Group & Institute
2007
2006
$ $
11,207,306
–
–
11,207,306
8,227,337
499
200
8,228,036
(2,077,886)
(428,298)
(224,696)
(322,044)
218
(11,429)
(2,110,563)
(59,356)
(1,824,978)
(7,059,032)
4,148,274
(1,995,187)
(345,791)
(151,887)
(262,212)
83
(10,270)
(1,933,760)
(983)
(1,325,191)
(6,025,198)
2,202,838
4,770,209
2,585,289
Group
Institute
2006
$
2007
$
2006
$
407,209
–
407,209
673,221
(27,503)
645,718
396,419
–
396,419
20,649
10,151
30,800
438,009
–
–
–
645,718
20,649
10,151
30,800
427,219
70
7 INCOME TAX EXPENSE (CONT’D)
The income tax expense on the results of the financial year varies from the amount of income tax determined by applying the
Singapore statutory rate of income tax to total surplus before tax due to the following factors :
Group
Institute
2007
$
2006
$
2007
$
2006
$
3,683,316
1,976,073
3,495,178
1,830,336
Tax calculated at a tax rate of 18% (2006 : 20%)
Singapore statutory stepped income exemption
Income not subject to tax
Expenses not deductible for tax purposes
(Over)/underprovision in prior year
Others
662,997
(41,468)
–
64,544
(27,503)
266
658,836
395,215
(41,000)
(7,904)
81,092
10,151
455
438,009
629,132
(27,450)
–
71,539
(27,503)
–
645,718
366,067
(30,500)
(7,904)
89,405
10,151
–
427,219
8 PROPERTY, PLANT AND EQUIPMENT
Group & Institute
Furniture
Freehold
Freehold
& Office
Land Buildings Equipment
Computers
Renovation
$
$
$
$
$
COST
Balance as at 1 January 2006
20,176,000
6,584,501
1,418,859
840,426
812,091
Additions
–
15,122,263
196,142
175,016
82,145
Disposals
–
–
–
(1,970)
–
Written off
–
–
(93,067)
(70,408)
(435,449)
Balance as at 31 December 2006 20,176,000
Additions
–
Written off
–
ACCUMULATED
DEPRECIATION
Balance as at 1 January 2006
–
1,053,519
656,223
684,011
779,422
3,173,175
Depreciation charge for the year
–
232,500
266,008
92,587
20,984
612,079
Disposals
–
–
–
(1,970)
–
(1,970)
Written off
–
–
(92,396)
(70,096)
(435,449)
(597,941)
CARRYING AMOUNT
20,420,745
692,099
238,532
93,830
41,621,206
19,986,610
731,845
289,671
244,740
41,428,866
–
–
–
–
–
1,286,019
434,135
–
–
1,720,154
1,521,934
378,419
(206,687)
1,693,666
829,835
272,369
(115,951)
(24,432)
961,821
943,064
184,465
(44,449)
1,083,080
704,532
123,922
(35,045)
–
793,409
458,787
223,620
(12,610)
669,797
29,831,877
15,575,566
(1,970)
(598,924)
Balance as at 31 December 2006
Depreciation charge for the year
Written off
Disposals
Balance as at 31 December 2007
21,706,764
–
–
21,706,764
Total
$
364,957
72,005
(11,905)
–
425,057
44,806,549
786,504
(263,746)
45,329,307
3,185,343
902,431
(162,901)
(24,432)
3,900,441
71
8 PROPERTY, PLANT AND EQUIPMENT (CONT’D)
In accordance with the Constitution of the Institute, the freehold land and freehold buildings were transferred to Institute of
Certified Public Accountants of Singapore Pte Ltd, which holds the freehold land and freehold buildings in trust for the Institute.
Location
Freehold properties
i) CPA House
20 Aljunied Road
Singapore 389805
Consisting of 5 floors
(Units #01-01, #01-03, #01-04, #01-05, #01-06, #02-01, #02-02, #04-01, #04-02,
#05-01, #05-02, #06-01 and #06-02) and totaling 2,779 sq. meters
ii) 6 Raffles Quay
#23-00
Singapore 048580
Assets held under finance leases
During the year, the Group acquired property, plant and equipment with an aggregate cost of S$63,099 (2006: Nil) under
finance leases. The carrying amount of property, plant and equipment held under finance leases as at 31 December 2007 was
S$265,089 (2006 : S$301,424). Leased assets are pledged as security for the related finance lease liabilities (Note 13).
Assets pledged as security
In addition to assets held under finance lease, a piece of freehold property with a total carrying amount of S$14,719,008 (2006:
S$15,021,453) is pledged as security to secure a mortgage loan from a bank (Note 12).
Depreciation
The depreciation for the year is charged to the income and expenditure statement as follows:
The Secretariat (Note 3)
The Practice Monitoring Division (Note 5)
The Academy (Note 6 (i))
The Academy (Note 6 (ii))
Group & Institute
2007
2006
$ $
521,804
6,320
52,263
322,044
902,431
307,124
1,511
41,232
262,212
612,079
9 ASSOCIATES
Investment in associates
Group
Institute
2007
$
2006
$
2007
$
2006
$
80,426
41,568
–*
–*
72
9 ASSOCIATES (CONT’D)
Details of associates are as follows:
Name
Country of incorporation
50
33
Insolvency Practitioners Association of Singapore Limited
Singapore Institute of Taxation Limited
* There is no cost of investment as the associates are companies limited by guarantee whereby every member of the company
undertakes to contribute to meet the debts and liabilities of the company in the event of its liquidation to an a mount not
exceeding $10.
Singapore
Singapore
Effective interest held by the Group
2007
2006
%
%
50
33
The summarised financial information of the associates is as follows:
2007
2006
$ $
ASSETS AND LIABILITIES
Current assets
202,495
105,031
Total assets
202,495
105,031
Current liabilities
24,504
22,471
Total liabilities
24,504
22,471
RESULTS
Revenue
115,781
70,443
Profit after taxation
95,431
49,975
During the financial year, the Institute has the following transaction with an associate on the terms agreed between the parties :
2007
2006
$ $
Management fee income
10 TRADE AND OTHER RECEIVABLES
6,800
Group
–
Institute
2007
$
2006
$
2007
$
2006
$
Trade receivables
Less: Allowance for doubtful receivables
Accrued practice review fee receivable
Deposits
Interest receivable
Others
Prepayments
Prepaid capital expenditure
361,214
–
361,214
43,500
24,750
5,730
18,616
143,284
–
597,094
903,872
(2,156)
901,716
81,000
115,726
3,649
8,997
300,296
446,882
1,858,266
361,214
–
361,214
43,500
24,750
1,634
18,616
143,284
–
592,998
903,872
(2,156)
901,716
81,000
115,726
321
8,997
300,296
446,882
1,854,938
73
10 TRADE AND OTHER RECEIVABLES (CONT’D)
Trade receivables are non-interest bearing and are generally on immediate to about 6 months’ terms.
Movements in allowance for doubtful receivables:
Balance at beginning of year
Doubtful receivables recovered
Written off against provision
Balance at end of year
Group
Institute
2007
$
2006
$
2007
$
2006
$
2,156
(1,351)
(805)
–
41,430
(499)
(38,775)
2,156
2,156
(1,351)
(805)
–
41,430
(499)
(38,775)
2,156
11 TRADE AND OTHER PAYABLES
2007
$
Group
2006
$
2007
$
Institute
2006
$
Trade payables
Accrued operating expenses
806,400
1,191,778
1,998,178
619,229
1,023,047
1,642,276
806,400
1,178,367
1,984,767
619,229
1,011,127
1,630,356
Trade payables are non-interest bearing and are normally settled on 30-day term.
12 BANK LOAN
Effective
interest rate
per annum
2007
2006
%
%
Current liabilities
Secured bank loan 4.65
4.25
Non-current liabilities
Secured bank loan at 1% over the bank’s prevailing cost of
funds per annum* (2006: 4.65% per annum) 6.00
4.65
Secured bank loan at 1% (2006 : 1%) over the bank’s prevailing
cost of funds per annum*
6.00
6.00
Group & Institute
2007
2006
$
$
1,333,333
1,333,333
1,333,332
1,333,332
3,777,779
5,111,111
5,111,113
6,444,445
* The interest rate on the floating rate loan reprice at interval of 1 month.
The loan is repayable in 72 equal monthly installments of about S$111,111 commencing 1 November 2006. It is secured by a
mortgage over a freehold property (Note 8).
The carrying amount of the bank loan approximates its fair value as it bears interest at rates which approximates the current
incremental borrowing rate for similar type of borrowing arrangement.
74
13 FINANCE LEASE LIABILITIES
Group & Institute
Minimum lease
payments
2007
2006
$
$
Present value of
payments
2007
2006
$
$
113,076
199,596
101,727
250,660
97,018
171,867
87,969
218,389
312,672
(43,787)
352,387
(46,029)
268,885
–
306,358
–
268,885
306,358
268,885
306,358
Within one year
After one year but not more than five years
Total minimum lease payments
Less: Finance charges
Present value of minimum lease payments
These finance lease liabilities are secured by a charge over leased assets (Note 8).
At the expiration of the finance lease agreements, the Institute has the option to purchase the assets for S$13,157 (2006: S$6,280). In the event that the option is not exercised, the lessor has the right to sell the assets to a third party and the Institute has undertaken to indemnify the lessor for the difference if the selling price is lower than the residual value of S$13,157 (2006:
S$6,280). The effective rate of interest is approximately 3.8% to 6.8% (2006: 6% to 9.6% per annum).
14 MISCELLANEOUS FUND
Community Service Project Fund
The fund is made up of donations from members, money from fund-raising projects and contributions from the Institute. It is
used for the Institute’s community service projects. It is made up as follows:
Group & Institute
2007
2006
$ $
Balance at beginning of year
Add: Donations from members
Less: Community service projects funded during the year
Balance at end of year
24,473
23,900
(44,640)
(20,740)
3,733
38,315
21,294
(35,136)
(13,842)
24,473
15 CASH AND CASH EQUIVALENTS
Cash and cash equivalents consist of cash and bank balances and fixed deposits.
2007
$
2006
$
2007
$
2006
$
Fixed deposits
Cash and bank balances
3,992,157
2,462,646
6,454,803
857,457
1,340,128
2,197,585
3,234,241
2,339,358
5,573,599
310,086
1,260,961
1,571,047
Group
Institute
Fixed deposits are placed for varying periods of between 1 and 12 months depending on the immediate cash requirements of the Group and the Institute and earn interest of 0.83% to 2.88% (2006 : 0.83% to 2.88%) per annum.
75
16 SUBSIDIARIES AND INTRA-GROUP BALANCES/TRANSACTIONS
Association of Taxation Technicians (S) Limited (“ATTS”), Certified Accounting Technicians (Singapore) Ltd (“CATS”) and Institute
of Certified Public Accountants of Singapore Pte Ltd (“ICPAS PL”), which are all incorporated in Singapore, are deemed to be
wholly-owned subsidiaries of the Institute as Council Members of the Institute directly control ATTS, CATS and ICPAS PL.
The amounts due from subsidiary and associate are unsecured, interest-free and repayable on demand.
During the financial year, the Institute has the following significant transactions with the subsidiaries on terms agreed between the parties:
2007
2006
$ $
Management fee income
166,000
166,000
17 KEY MANAGEMENT PERSONNEL COMPENSATION
Key management personnel compensation comprised:
Short-term employee benefits
Post-employment benefits
Group & Institute
2007
2006
$ $
829,704
60,737
890,441
673,025
51,924
724,949
18 COMMITMENTS
(i)
Capital commitments
Capital expenditure contracted for as at the balance sheet date but not recognised in the financial statements is as
follows:
Group & Institute
2007
2006
$ $
Capital commitments in respect of property, plant and equipment
11,000
58,098
(ii)
Operating lease commitments
The Group leases an office under non-cancellable operating lease agreement. The lease has a term of about 1 year with
an option to renew.
Future minimum lease payments under non-cancellable operating lease as at balance sheet date are as follows:
Group & Institute
2007
2006
$ $
Within one year
After one year but within five years
17,760
28,120
43,778
–
76
19 FINANCIAL INSTRUMENTS
Financial risk management
The main risks arising from the Group’s financial management are interest rate risk, credit risk, liquidity risk and foreign currency risk. The Group reviews and agrees policies for managing each of these risks and they are summarised below:
Interest rate risk
The Group is exposed to interest rate risk through the impact of rate changes on interest bearing loan and fixed deposits. The Group’s policy is to manage its interest cost using a mix of fixed and variable rate debt.
Credit risk
The Group’s exposure to credit risk arises from the failure of a customer or a counterparty to settle its financial and contractual obligations to the Group, as and when they fall due. The Group manages this risk by monitoring credit ratings and limiting the
aggregate financial exposure to any individual counterparty.
The Group places its cash and fixed deposits with banks and financial institutions, which are regulated.
As at balance sheet date, there is no significant concentration of credit risk. The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the balance sheets.
Liquidity risk
In the management of liquidity risk, the Group monitors and maintains a level of cash and bank balances deemed adequate by
the Management to finance the Group’s operations and mitigate the effects of fluctuations in cash flows.
The Group targets for available funds in the form of surplus liquidity and aims at maintaining flexibility in funding by keeping
committed and uncommitted credit lines available.
Foreign currency risk
The Group’s foreign currency risk results mainly from cash flows and transactions denominated in foreign currencies. It is the
Group’s policy not to enter into derivative forward foreign exchange contracts for hedging and speculative purposes.
The Group has no significant exposure in respect of financial assets and liabilities held in foreign currency.
Estimation of fair values
Bank loan
The carrying value of the bank loan approximates its fair value and is disclosed in Note 12.
Other financial assets and liabilities
The notional amounts of financial assets and liabilities with a maturity of less than one year (including trade and other receivables, cash and cash equivalents and trade and other payables) are assumed to approximate their fair values because of
the short period to maturity.
77
20 COMPARATIVE INFORMATION
Reclassifications
Certain reclassifications have been made to the comparative information to enhance comparability with the current year’s presentation. These reclassifications are due to elimination of inter division transactions and regrossing of certain income and
expenditure items and do not have any impact on the accumulated fund and miscellaneous funds. The following
reclassifications were made in the Group’s financial statements:
(i)
Income and Expenditure Statement
Other income Net surplus from the Academy
As
previously
reported
$
Amount
reclassified
$
As
reclassified
$
(4,070,693)
1,382,379
1,875,289
(36,945)
(673,055)
710,000
(4,107,638)
709,324
2,585,289
Amount
reclassified
$ (*)
Amount
reclassified
$ (**)
As
reclassified
$
–
–
–
–
–
–
66,945
170,286
Note 6 Net surplus from the Academy
(previously disclosed in the Notes to the
Financial Statements as Note 13)
Re-grossing of income
Fee Income
1,717,798
–
60,840
1,778,638
8,227,337
(ii) Notes to the Financial Statements
Note 4 Other income
As
previously
reported
$
Inter division billing elimination
Management fee charged to the Academy
710,000
(710,000)
Management fee charged to thePractice
Monitoring Division
30,000
(30,000)
740,000
(740,000)
Re-grossing of income Sundry income
103,341
–
Training courses for ACCA, ATT, CAT, PAC, SAT,
STT and Others
Re-grossing of income
Fee Income
8,049,235
–
178,102
78
20 COMPARATIVE INFORMATION (CONT’D)
(ii) Notes to the Financial Statements (cont’d)
As
previously
reported
$
Amount
reclassified
$ (*)
Amount
reclassified
$ (**)
As
reclassified
$
Note 6 Net surplus from the Academy (cont’d)
(585,340)
73,626
Training courses for ACCA, ATT, CAT, PAC, SAT,
STT and Others
(2,453,459)
636,374
710,000
(60,840)
(572,554)
Note 5 Practice Monitoring Division
Inter division elimination
(58,333)
Note 3 Administrative expenses
Re-grossing of expenses
Seminars and talks
–
(178,102)
(1,995,187)
(238,942)
30,000
-
(28,333)
–
(66,945)
(66,945)
* due to Inter division elimination
** due to Re-grossing of income/expenses
Financial statements of the Institute
The income and expenditure statement, statement of changes in accumulated fund and miscellaneous fund, cash flow
statement and the relevant notes to the financial statements of the Institute for the financial year ended 31 December
2006 have been included in the comparatives information in current year financial statements to enhance comparability
of current year’s presentation.
21 AUTHORISATION OF FINANCIAL STATEMENTS
The financial statements of the Group and Institute for the financial year ended 31 December 2007 were authorised for issue by
the Council on 13 February 2008.
79
FORM OF PROXY
THE SCHEDULE
Rule 12
THE INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
OF SINGAPORE (GENERAL MEETINGS) RULES
I, ________________________________________________________ of ____________________________________________
being a member of the Institute, do hereby appoint _____________________________________________________________
of_______________________________________________ , or failing him ___________________________________________
of ___________________________________________ as my proxy to vote for me at the Annual General Meeting of the Institute
to be held on 19 April 2008 and any adjournment of such meeting.
Dated this _______ day of _________________ 2008.
Signed by _____________________________________________ )
in the presence of ______________________________________ )
member of the Institute of Certified )
Public Accountants of Singapore, of )
(Address) ____________________________________________ )
(Signature of Member)
_____________________________________________ )
_____________________________________________ )
)
(Signature of Witness)
NOTE: A member entitled to vote may appoint as his proxy any other member who is qualified to vote, except that no member shall be entitled to vote by proxy in the election of a member or members of the Council. [Rule 11, ICPAS (General Meetings) Rules]
The instrument of proxy shall be in the form set out in the Schedule and shall be signed in the presence of another member, other than the proxy holder, who is entitled to vote. [Rule 12, ICPAS (General Meetings) Rules]
The proxy shall not be entitled to vote at a meeting unless the instrument of proxy has been deposited with the Executive Director not less than 48 hours before the date and time fixed for the meeting. [Rule 15, ICPAS
(General Meetings) Rules]
This page has been intentionally left blank.
WWW.ICPAS.ORG.SG
20 Aljunied Road, #06-02
CPA House
Singapore 389805
Tel Fax Email
Website (65) 6749 8060
(65) 6749 8061
cpasingapore@icpas.org.sg
www.icpas.org.sg

2008 - ISCA

Transcription

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