ISCA Mini Conference Series: Insights Into The Review Of Financial Statements

ISCA completed the last instalment of the ISCA Mini Conference Series on 8 November 2023. Organised by the ISCA Financial Statements Review Advisory Panel (FSRAP), more than 250 participants attended this two-hour virtual conference, gaining valuable insights into the review of financial statements.

James Xu, Chairman of ISCA FSRAP and Partner, Deloitte & Touche LLP, delivered the welcome address. This was followed by the keynote address by Kuldip Gill, Assistant Chief Executive (Accounting Regulatory & Sustainability Group), Accounting and Corporate Regulatory Authority (ACRA), who emphasised the importance of accurate and reliable financial reporting. Ms Gill then shed light on emerging risks and trends requiring closer attention during the review of financial statements.

KEY FOCUS AREAS FOR THE REVIEW OF FINANCIAL STATEMENTS

Yvonne Chiu, Deputy Chairperson of ISCA FSRAP and Partner, KPMG LLP, presented a summary of the pertinent financial reporting areas that directors should focus on more closely in their review of the financial statements for the financial year ending 2023. These areas are highlighted in the Financial Reporting Practice Guidance No.1 of 2023 issued by ACRA in November 2023. These areas include the accounting impact from macroeconomic and geopolitical uncertainties, and climate change movements.

KEY MANAGEMENT ESTIMATES AND JUDGEMENT

The next segment was led by Yong Zen Yun and Poh Chin Beng, members of ISCA FSRAP. Through their engaging presentation, Ms Yong, who is Accounting Technical Leader, PricewaterhouseCoopers LLP, and Mr Poh, who is Partner, RSM Chio LLP, highlighted key considerations for several common judgements and estimates. These included areas of judgement and uncertainties such as contingent consideration in business combinations, impairment of financial and non-financial assets, and fair value measurement.

GOING CONCERN

Yeow Hui Cheng, member of ISCA FSRAP and Partner, Ernst & Young LLP, commenced the concluding segment with an overview of the accounting and auditing considerations relating to going concern assessment.

Ms Yeow then moderated a panel discussion featuring Goh Chyan Pit, Managing Director (Capital Markets), DBS Bank Ltd; Vincent Choo, Finance Director, Tada Mobility Pte Ltd; and Tan Wee Khim, Technical Director, Financial Reporting and Information Department, ACRA. The panellists shared the risk factors that can impact a company’s solvency and the going concern assessments, as well as red flag indicators, that investors and directors should look out for. They also emphasised the importance of ensuring sufficient disclosures relating to going concern in the financial statements, particularly given the current economic conditions.