The SID Audit Committee Chapter



AC Chapter Pit Stops

The first AC Chapter Committee has organised a series of “pit stop” sessions to specially help AC Chapter members deep dive into specific areas of significance to ACs.

Date     :   17 September 2019, 0900 to 1100

Topic:  Managing Tax Disputes and Controversy

Tax is increasingly under scrutiny for company boards given the current focus on paying the right amount of tax. In addition to shareholders, the government, media and public take an active interest in corporate tax compliance and if companies are managing their own tax risks. Company directors have an obligation to oversee the significant tax matters and risks of their organisations.

At the same time, the level of complexity and the volume of disputes between tax authorities and taxpayers are on the rise. With the increasing amount of data being shared amongst tax authorities globally, and the use of data analytics and forensic tools, tax authorities are able to uncover noncompliant cases and target audit initiatives.


    Date     :   26 June 2019, 0900 to 1100

    Topic:  Keeping ACs Up-To-Date with the New Insolvency Regime

    The Insolvency, Restructuring and Dissolution Act 2018 was passed by the Singapore Parliament on 1 October 2018. It consolidates Singapore’s current insolvency regime (variously found in the Bankruptcy Act, the Companies Act, and other assorted legislation) into a single Act.

    Navigating the new provisions can be daunting. What has changed, and what remains the same? How will the practice of insolvency be impacted? At what point will management / directors become liable for “wrongful trading”?

    Mr Jonathan Tang, from Morgan Lewis Stamford LLC, will take you through the material changes to Singapore’s insolvency regime in the new Act. Specifically, he will discuss (i) when and how liability arises under the new “wrongful trading” provision, and what steps directors should take to avoid liability under this provision; (ii) the impact of the new restrictions on ipso facto clauses; and (iii) the new licensing and regulatory regime for insolvency practitioners under the new Act.

      Date     :   13 June 2019, 0900 to 1100

      Topic:  Financial Reporting: Fraud in China

      China’s economy may be slowing down but local and multinational companies still expect to meet their budgets and hit performance targets. Amid this climate, a number of cases involving financial and accounting fraud, leading to financial misstatement and significant legal risks have surfaced.

      This session will provide first-hand insights into the detection, investigation and prevention of financial and accounting fraud. KPMG’s Forensic Team will share key takeaways and useful tips on the topics below. We look forward to an informative and lively session.

        Date     :   16 May 2019, 0900 to 1100

        Topic:  Business Valuation: Key Points for the AC

        While the concept of “fair value” has been around for decades, it has only recently been highlighted in financial reporting. With standards such as IFRS 9 – Financial Instruments and IFRS 13 – Fair Value Measurements, fair value accounting has become a key accounting concept that represents a significant shift in the way we look at financial reporting. However, being too conservative or overly optimistic in applying valuation to a company's assets could lead to undesirable consequences and erode stakeholders’ value.

        This session will cover some of the key fair value concepts that Audit Committees and independent directors need to be aware of, so that they will be equipped to provide independent views on board decisions.

          Date     :   25 April 2019, 0900 to 1100

          Topic:  Disrupting Technologies Impact on Internal Audit

          New technologies are appearing at an amazing pace and each has the potential for disrupting any organisation. Management needs to be able to take advantage where appropriate and the board needs assurance that this is done both effectively and prudently.

          If competitors are able to leverage technology faster and with better results, that can have a significant negative effect. But new risks are introduced with new tools and they have to be anticipated and addressed.

            Date     :   7 March 2019, 0900 to 1100

            Topic:  Elevating the AC role with Analytics and AC Commentary

            ACs are central to effective corporate governance. How can ACs enhance this key role and showcase the good work they have done? This session aims to provide insights on how ACs can leverage on analytics and AC commentaries to elevate their role.

            The change brought about by data analytics to today’s business is real. Some businesses use it effectively, making it a key source of competitive advantage while others are still exploring how analytics will fit into their businesses. Given the accelerating pace at which data-driven technologies are evolving businesses, Boards and ACs who remain status quo will lose out to their competitors who take full advantage of data analytics to improve their revenues and profits.

              Date     :   27 November 2018, 0900 to 1100

              Topic:  Valuation and the Impairment Imperative

              Audit Committees (ACs) play an important role in the financial reporting process and should question the need for, and adequacy of, asset impairment and the adequacy of related disclosures. ACs also need to critically assess whether management and staff have adequate skills to deal with impairment issues.

              Impairment testing often relies on estimating the value of assets by discounting estimated future cash flows using appropriate discount rates. Given the subjectivity of elements of impairment calculations, disclosures concerning uncertainties and key assumptions are generally important to users of financial reports. As such, ACs have a duty to ensure that the information in the financial report is consistent with their knowledge of the company’s financial position and affairs while bearing in mind their knowledge of the business, the assets, the environment in which the company operates, and the future prospects of the business.

                Date     :   27 September 2018, 0900 to 1100

                Topic:  BEPS & Other Tax Implications for AC & Boards

                Globalisation has changed how businesses conduct operations and digitisation has accelerated the pace of change as well as the convergence of sectors and industries.

                However, tax rules have not kept up and tax authorities around the world have been updating them with the aim of getting what they perceive as their fair share of tax revenue. At the same time, tax administrations are also leveraging technology to gain better and deeper insights into taxpayers’ behaviours and enhance their capabilities to detect and deter non-compliance. The speed of tax developments worldwide has thrust tax risk management to the forefront of the Board’s mind.

                  Date     :   19 July 2018, 0900 to 1100

                  Topic:  Harnessing the Full Potential of Internal Audit

                  The pace of innovation in every industry is accelerating and risk professionals face the growing challenge of helping their organisations ensure effective processes and controls exist without hindering its progress. For this AC pit stop, we brought together two speakers who will share their expert views and different perspectives on how to harness the full potential of internal audit.

                  Mr. David Toh, PwC, will share the results of the 2018 PwC’s State of the Internal Audit Profession Survey and provide a closer look into how internal audit functions are creating a technology- and talent- enabled foundation to support their organisation’s innovation strategy.

                    Date     :   28 June 2018, 0900 to 1100

                    Topic:  Getting Ready for FRS 116 (Leases)

                    From 2019, the accounting treatment of leases by lessees will change fundamentally.

                    FRS 116 eliminates the current dual accounting model for lessees, which distinguishes between on-balance sheet finance leases and off-balance sheet operating leases. Instead, there is a single, on-balance sheet accounting model that is similar to current finance lease accounting.

                    Bringing operating leases on-balance sheet and accounting it like finance lease will make lessees appear to be more asset-rich but also more heavily indebted. The resulting impact on key financial performance indicators may be significant.

                      Date     :   23 May 2018, 0900 to 1100

                      Topic:  THE AC’S ROLE IN CRISIS MANAGEMENT
                      Small to mid-sized listcos operate in a world with far less media and investor attention than the big caps. With less access to "oxygen of capital" due to lower valuations, liquidity and public profile, they face many challenges.

                      At the same time, they occasionally face crisis situations, be it the sudden loss of a major customer, a plant accident, internal corporate fraud and, increasingly, shareholder activism.

                        Date     :   29 March 2018, 0900 to 1100

                        Topic:  AML/CFT for Non-Financial Companies
                        There is a common misconception among non-financial companies that requirements for Singapore’s Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) regime is only applicable to the financial sector and in particular, the financial institutions.

                        In  Singapore,  Terrorism  (Suppression  of  Financing)  Act  TSOFA  requires  any  persons  (including  entity)  to inform the Police if they are in possession of property or has information about a transaction belonging to a terrorist.

                          Date     :   8 January 2018, 0900 to 1100
                          Partner:   Ernst & Young LLP, KPMG LLP and PwC LLP

                          Topic:  Financial Reporting and Audit Considerations for 2018
                          Rapid changes are taking place in Singapore’s audit and financial reporting landscape. 2017 saw the implementation of the enhanced auditor’s reports (EARs), which provided investors with greater transparency over the audit process. 2018 will see the next wave of accounting changes. Two major new accounting standards will be effective: FRS 109 Financial Instruments and FRS 115 Revenue from Contracts with Customers. At the same time, Singapore listed companies will apply a new financial reporting framework identical to the International Financial Reporting Standards (IFRS).

                            Held on 16 November 2017, 0900 to 1100
                            Partner:   EY

                            Topic:  Demystifying Sustainability Reporting and Integrated Reporting
                            The SGX has made sustainability reporting a requirement on a “comply or explain” basis with effect from financial year 2017 onwards. Over time, annual reports are expected to evolve beyond reporting of statutory financial performance to disclosing fully the value created by the enterprise and how it will be sustained in the future.
                            The session will:

                            • Address the rationale for non-financial reporting and help participants on their journey of non-financial reporting.
                            • Discuss the principles and requirements of both sustainability reporting and integrated reporting.
                            • Provide participants with an understanding of the key differences between the two reporting frameworks, and the suitability of each reporting framework to their companies.

                            Held on 3 November 2017, 0900 to 1100
                            Partner:   Deloitte & Touche

                            Topic:  The Critical Role of ACs in Valuation and Impairment of Assets
                            Many board members often lament that the capital markets undervalue their companies due to the lack of appreciation for their businesses. Yet in many cases, companies have not developed their own rigorous, detailed perspective on what value lies within their companies. An honest assessment of a company’s value lies at the heart of this issue.

                              Held on 7 September 2017, 0900 to 1100
                              Partner:   PwC

                              Topic:  Practical Implications of FRS 109 Accounting for Financial Instruments
                              The new Standard introduces significant changes in the accounting for financial instruments, particularly in the areas of classification and measurement, impairment and hedge accounting. In this seminar, you will learn how FRS 109 affects various balance sheet items including trade receivables, intercompany loans, investments, contract assets and the profitability of the company using practical examples. We will also share key governance questions to ask your management to ensure FRS 109 had been applied appropriately.

                              Course Objectives

                              • High level overview of the key requirements of FRS 109 and differences with FRS 39 from a corporate perspective.
                              • Key impact of the Standard to a company’s financial performance and systems, process and data requirements.
                              • Key implementation challenges and typical timeline with examples from companies undergoing the implementation process.
                              • Key governance questions directors should be asking in relation to the Standard.

                              Held on 27 July 2017, 0900 to 1100
                              Partner:   KPMG

                              Topic:  Practical Implications of FRS 115 Revenue from Contracts with Customers
                              ACRA and ASC have issued reminders to directors to pay attention to the significance of and changes in FRS 115. The session will focus on the most common issues faced by companies when implementing the new standard:

                              • How should a company approach the analysis?
                              • Who needs to be involved in such a project and how to drive the change?
                              • What IT implications arise from these changes? 
                              • What process and control measures should be taken to maintain the high level of control effectiveness?
                              • What are the lessons learnt from the experience of companies that have early adopted the standard?

                              Held on 12 April 2017, 0900 to 1100
                              Partner:   ACRA

                              Topic:  FRSP and AQIs
                              This Pit Stop will cover two of ACRA’s key regulatory programmes, the FRSP and the AQIs Disclosure Framework,  targeted  at  helping  audit  committees  raise  the  quality  bar  of  financial  reporting  and  audit  in Singapore.

                              • Case studies developed from real-life cases with practical tips on how audit committees could detect red flags and pick up potential irregularities in financial statements; and
                              • “Restatements-first” policy and other revised FRSP processes taking place from 1 April 2017 geared towards involving more stakeholders in the review process.

                              Held on 16 February 2017, 0900 to 1100
                              Partner:   Deloitte

                              Topic:  Relevance of the Enhanced Auditor’s Report to Directors, ACs and Management
                              The enhanced auditor’s report is effective for audits of financial statements for periods ending on or after 15 December 2016. The session covered what the changes are from the conventional audit report, with particular emphasis on:

                              • Key audit matters (KAM) and the role of the ACs and management in relation to them.
                              • Going concern, especially in “close-call” situations.
                              • “Other Information” which is usually the annual report (other than the financial statement) and the added importance attached to it in the enhanced audit report. 

                              The session also discussed how ACs should prepare for the AGM in the light of the enhanced auditor’s report.

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