We again took the lead to gather the views of the business and accounting community at the annual Pre-Budget Roundtable and Pre-Budget Survey, focusing on the business outlook and other Budget-related matters. As an advocate for the profession, we submitted the pertinent points to the government for its consideration for Budget 2015. The findings and feedback also provided valuable insights to policymakers, the business and accounting community, and other stakeholders.
We studied many leading issues in accountancy, apprising members and stakeholders of the latest knowledge. Among the trending topics is digital currencies, which are increasingly being used as both a medium of exchange and a store of value. There are as yet no clear guidelines from international standard-setters on how to account for them. Based on existing accounting standards, we analysed the potential accounting treatment for transactions and holdings in digital currencies.
We studied the overall cost of capital of SGX-listed companies and highlighted key issues in both the theory on and practice of estimating the cost of capital, in particular the weighted average cost of capital. The cost of capital is fundamental to a firm’s investment and financing decisions. It is essential to asset pricing as many of the valuation methodologies require it as a key input for discounting future cash flows. The study provided key insights to CFOs, and reinforced the importance of this information in making corporate decisions.
If done right, budgeting can provide a high value-added service to the company. As there are wide variations in the practice and effectiveness of the budgeting approach used by practising accountants in their respective firms, we joined hands with NTU to survey members from the business and accounting community. Through this feedback, we can identify ways to help members acquire the skills to improve their business budgeting process and deliver higher value to their organisations.
As a regional insurance hub, the Singapore insurance industry is affected by global and local regulatory and financial reporting developments including changes in the Risk-Based Capital framework, IFRS 4 and IFRS 9. We sought to understand the key developments and published our findings in the ISChartered Accountant journal.