Address by ISCA President Mr Kon Yin Tong at ISCA’s Annual General Meeting on 20 June 2020

Fellow Council Members

And Members of ISCA

Good Morning.

Thank you for attending ISCA’s annual general meeting today.  This is the first time we are holding the ISCA AGM virtually, given the need to continue with social distancing measures to minimise community spread of COVID-19.  This is necessary, even in Phase 2 of post-circuit breaker, to safeguard our members’ health and well-being.   It is also due to the pandemic that ISCA has postponed our AGM this year from the usual April to June.

Nothing has changed lives and livelihoods more drastically in recent times than the COVID-19 pandemic.  Globally, many countries are grappling with its impact and have rolled out stimulus and assistance packages to protect their respective economies and businesses. While Singapore is not immune to the effects of this global virus outbreak, we can be thankful that our government is doing the same, if not more, in managing the situation as best as possible, from instituting circuit breaker measures to boosting the economy with four rounds of support measures.

Together, the Unity Budget, Resilience Budget, Solidarity Budget and Fortitude Budget bring government’s support to S$92.9 billion in total, or 19.2 percent of Singapore’s GDP.  Deputy Prime Minister and Finance Minister Heng Swee Keat has called this “a landmark package, and a necessary response to an unprecedented crisis.”

ISCA’s Initiatives to Support Members

This is undoubtedly a difficult time for many of us. We understand that, like many other professions, members of the accountancy profession face challenges arising from the COVID-19 crisis. These include disruptions in the execution of projects, adjusting operations to comply with COVID-19 measures, loss of business and clients, cashflow issues and the threat of job loss.

To address these multi-faceted challenges, ISCA has rolled out a myriad of initiatives including an assistance package worth up to $3.6 million to help our members through this crisis.  Some of these initiatives were announced by Ms Indranee Rajah, Minister in the Prime Minister's Office and Second Minister for Finance and Education, on her Facebook and LinkedIn on 20 April.    

The announcement was also covered by the media like Channel NewsAsia, Business Times and Berita Harian.

The initiatives fall into three main categories: Career Support, Resources and Virtual Learning Support.  Let me share briefly on each of them.

Career Support

First, on Career Support, we have rolled out a Career Microsite and Virtual Career Fair for Accounting and Finance Professionals.

Career Microsite

I will first touch on the Career Microsite. Under the guidance of ISCA Advisor Mr Teo Ser Luck, ISCA launched a career microsite, which hosts a career portal and government career schemes for accountancy and finance professionals.

The career portal features accounting and finance-related job posts extracted from Workforce Singapore’s MyCareersFuture.sg portal.

Through the portal, we also provide a complimentary job matching service that is only available for ISCA members. Members who are looking for career opportunities can apply to list their career history on an anonymous basis. ISCA will then facilitate the job matching process between potential employers and candidates. The career matching service has been well received. We have heard positive feedback from employers about being able to reach candidates who are qualified Chartered Accountants directly.

The microsite features government schemes for PMETs.  The Professional Conversion Programme is targeted at mid-career switchers who wish to specialise in areas with good prospects.

There is also the P-Max Programme, which matches jobseekers with suitable positions, and the Career Support Programme, which can help employers defray reskilling and upskilling expenditure.  

Virtual Career Fair for Accounting and Finance Professionals

The second initiative under Career Support, ISCA and Workforce Singapore co-organised a Virtual Career Fair for Accounting and Finance Professionals between 18 and 31 May 2020. The Virtual Career Fair connected jobseekers with employers for roles in areas such as finance, accounting, tax and audit.  Spanning two weeks, the fair attracted more than 11,000 visitors and more than 2,500 job applications.

Resources

Next, under resources, we have a number of initiatives and these include the COVID-19 Resource Centre, Technical Guidance, the ISCA COVID-19 Navigator and a special articles series in the IS Chartered Accountant journal.

COVID-19 Resource Centre

The virtual COVID-19 Resource Centre has regularly updated content curated for accountancy and finance professionals. This includes technical guidance on accounting and auditing issues arising from the COVID-19 situation as well as government announcements, which include primarily advisories and clarifications on firms’ operations.  It also includes links to relevant news articles, e-learning resources and assistance schemes for ISCA members.

Technical Guidance

COVID-19 raises a wide array of challenges for accountancy professionals, from making complex judgments over the impact of this pandemic on valuations and going concern to disruptions in processes and procedures in accounting, finance and audit.

To support the accountancy profession in addressing some of these challenges, a number of technical guidance were issued. I will share this briefly on four of these.

• First, the ISCA’s Auditing and Assurance Standards Committee and Financial Reporting Committee, in collaboration with ACRA, have formed a joint COVID-19 Working Group.

   

   

  The Working Group has published guidance in the form of Frequently Asked Questions (or FAQs) on ISCA’s COVID-19 Series microsite to share its deliberations on accounting and auditing issues faced by the profession. The Working Group will continue to issue new FAQs to support the profession throughout this challenging period. 

   

• Second, to provide guidance on alternatives for group auditors who are unable to get access to their component auditors’ work papers due to the travel restrictions arising from COVID-19, ISCA has issued Audit Guidance Statement 12 (AGS 12). AGS 12 also provides guidance on other audit considerations which are applicable to group auditors arising from such extraordinary events. 

   

• Third, the Financial Reporting Bulletin 2 (FRB 2) was issued to address the question of whether the COVID-19 outbreak was an adjusting or non-adjusting event for entities with a 31 December 2019 financial reporting date and other accounting implications arising from the outbreak. 

   

• And fourth, the Financial Reporting Bulletin 5 (FRB 5) was issued to provide accounting guidance and key considerations on how to account for Singapore property tax rebates arising from the Government relief measures for COVID-19. 

   

• In addition to these technical guidance, ISCA and the Singapore Accountancy Commission have also issued two advisories for accounting practices, regarding the additional support measures for companies, accounting practices and advice on the application of time-limited exemptions, as well as safe management practices in the post circuit breaker period.

We will continue to produce guidance on accounting and auditing implications arising from the COVID-19 pandemic.

ISCA COVID-19 Navigator
Apart from technical guidance, ISCA also produced  the COVID-19 Navigator.   The Navigator provides a summary of the assistance schemes and resources from the government and ISCA to support individuals and businesses affected by the pandemic.  

The guide directs individuals and businesses to relevant support schemes and resources from the government and ISCA, including the schemes from the Fortitude Budget. The schemes and resources are categorised for employees, business owners and key decision makers in organisations, so that users of the guide can easily identify and access the schemes relevant to them. Since the launch of this Navigator, we have received much positive feedback from members on the usefulness of it.  I hope many more of you will find it useful and do share it with your colleagues and clients.

ISCA Journal special series

In addition to the ISCA COVID-19 Navigator, ISCA is running a three-part COVID-19 Special in the May to July issues of the IS Chartered Accountant Journal. 

In this current crisis, it is imperative for our members to know how to cope with the situation, both from a business perspective and from a standards approach. As accountancy and finance professionals, we should be aware of the business implications to our organisations.

At the same time, we need to be mindful of potential financial reporting and auditing issues which may arise. Additionally, there is a need to plan ahead and prepare ourselves and our organisations for recovery when the outbreak ends. We hope the series of articles in the IS Chartered Accountant journal will provide some guidance for our members.

Virtual Learning Support

Last but not least, the third category is on Virtual Learning Support. In times like these, continuing professional development is more critical than ever, to enable members to be in a strong position to seize the opportunities that arise when the situation changes for the better.  

To support members in upskilling for the future, ISCA has rolled out a CPD support scheme, where every ISCA member is given a $100 CPD voucher to offset their course fees. This is part of the assistance package that I mentioned earlier that is worth up to $3.6million. 

During this period of safe distancing, we have curated live webinars and e-learning modules under our eLearning Space to provide members with virtual learning support.

To date, our eLearning Space has more than 200 webinars in various topics. In addition to these, we have made another more than 50 webinars available to members free of charge. This is part of our commitment to support our members through the crisis.  ISCA also has more than 400 courses in our e-learning course library, making it easy for members to learn from home during this period.  

Similarly, our Singapore Accountancy and Audit Convention (or SAAC) series will be changed to a virtual format this year. 

The next event is the Professional Accountants in Business (PAIB) Virtual Conference on 25 August. With 2020 being an unprecedented year for Singapore and the rest of the world, the PAIB Virtual Conference will carry the theme “Gear up to Reboot in a New World”.

The conference will cover topics relevant to the current situation.  These topics include accounting and auditing implications arising from the pandemic, the new code of ethics required, how to enhance enterprise risk management in times of uncertainty and how job roles in the finance function will be redesigned.  We hope that the content line-up will support members in navigating the new normal. 

Financial Assistance to Members

In addition to Continuing Professional Development support, we are mindful that some members may face with financial hardship during this period.  For this, we have made provisions in two areas, to cater to members who are suffering from financial difficulties – membership fees and CPD.

• Members who are facing financial hardship due to unemployment can request for a 50 percent reduction in membership subscription fees. Members who face exceptional circumstances may be granted a fee waiver.
• On CPD, there is a financial deferment scheme for members who would like to enrol in ISCA courses and qualification programmes. Subject to meeting the eligibility criteria, members can defer payment of course fees till 31 December 2020, by up to 80 percent of the fees.

SMP Programme

And separately, we have a series of specific initiatives to support Small and Medium Practices. During this period, it is inevitable that many SMPs will be hard hit.

We recognise the need to support SMPs, especially as the pandemic has accelerated the pace of digitalisation. The pace of digitalisation will continue to accelerate, given the telecommuting arrangements enforced by the government to minimise community spread of COVID-19. And like all companies, SMPs will need to keep up with the pace of change.

With the support of Enterprise Singapore, ISCA launched the SMP Programme in May this year. The programme aims to drive digitalisation, upskilling & reskilling and internationalisation of SMPs in Singapore. Under this Programme, ISCA will partner with SMPs to build digital capabilities to drive productivity and innovation; achieve business continuity and successful post-crisis recovery.

Resources will be directed towards engaging SMPs to guide them on their digitalisation journey. ISCA will also work with solutions providers to run a series of tech talks. These talks will showcase digital tools that lead to more efficient and effective work processes. These tools will also facilitate greater collaboration and engagement within teams and with clients. These initiatives will be made available to SMPs on a complimentary basis.

In addition to existing funding schemes, ISCA is also working closely with government agencies to help SMPs defray costs when adopting new digital solutions. The SMP Programme is estimated to help more than 300 SMPs in the next three years.

Some of ISCA’s initiatives in 2019

While the COVID-19 global crisis has required us to step up with more immediate support in the short term, supporting our members to achieve their professional aspirations has always been our role.

And we have been developing initiatives to help our members meet the evolving needs of business, even before the pandemic struck.  I will now run through some of ISCA’s key initiatives in 2019 to help the profession stay relevant and adaptable in the evolving business landscape.

As accountants, we need to be adaptable to ride the wave of uncertainty, and one way to be adaptable is to be multi-skilled. In line with our strategic priority to enable members to achieve their professional aspirations, ISCA supports our members by providing pathways for them to acquire specialised skills that are in demand. These remain relevant and perhaps even more so when we emerge from COVID-19.

One of these specialisation pathways is the Infrastructure & Project Finance Qualification (ISCA IPFQ), which we developed in collaboration with EY Singapore. Asia’s infrastructure sector is set to boom over the next decade. Just earlier this month, Minister in the Prime Minister's Office and Second Minister for Finance Indranee Rajah cited infrastructure as a bright spot amid gloomy economic forecasts triggered by the COVID-19 pandemic.

As mentioned by Minister Indranee, growing economies need reliable infrastructure for carrying out essential functions when faced with external challenges.[1]

The introduction of the ISCA IPFQ is in line with the government’s efforts to harness Singapore’s infrastructure development ecosystem in support of Asia’s infrastructure growth. With the qualification, we aim to support the sector’s training needs for skilled talent by providing a pathway for our members who are accountancy professionals to specialise in this growing field.

What is expected of accountancy professionals has also evolved. Accountancy professionals are now looked upon as business partners to provide business insights to improve decision-making and explain the story behind numbers. To equip accountancy professionals with relevant skills for Industry 4.0, we launched the Professional Business Accountant (PBA) programme, which leads to the ISCA PBA designation. Aligned to the ISCA Professional Accountants in Business Framework, besides technical excellence and ethics, the programme also covers topics in areas like future finance, business acumen and leadership.

Truly, learning never stops for accountancy professionals. We have to keep abreast of latest updates and developments in order to deliver excellence and professionalism. In line with ISCA’s strategic priority to share business insights and uphold technical excellence, ISCA issued several new and revised auditing and assurance standards in 2019.

We work with global bodies such as the International Auditing and Assurance Standards Board to contribute to the global standard-setting process.

Locally, ISCA also collaborates closely with government and industry partners to advance the profession. This is in line with our strategic priority to be a major influencer of key components in the ecosystem.

Together with the Infocomm Media Development Authority and Singapore Accountancy Commission, we launched the Accountancy Industry Digital Plan in August 2019 to help SMPs embark on their digital transformation journey and adopt technology for greater productivity and competitiveness.  

Now, it has become even more crucial for SMPs to ramp up their digitalisation efforts, with COVID-19 spurring digital transformation. I encourage SMPs to leverage ISCA’s resources and support schemes to accelerate their digitalisation journey.

To prepare SMPs for a digital future, ISCA collaborated with Singapore Polytechnic to offer a Robotic Process Automation course for employees of SMPs from August 2019. We expect over 100 SMPs to benefit from this programme over the next few years.

We also established the Virtual SMP Centre in August last year. This is an online platform to serve the needs of SMPs as they embark on their digitalisation journey. SMPs can use the online self-assessment toolkit to determine their stage of digital readiness, identify digital solutions and training programmes, and source for available funding schemes.

While we upskill and reskill the professional competencies of accountancy professionals, there is also a need for ISCA to foster the talent pipeline and build brand awareness among the younger audience segment. With this in mind, and in line with our strategic priority to elevate the ISCA Brand, we started the Youth Associate (ISCA) membership.

With the Youth Associate (ISCA) membership, we also aim to encourage more accountancy students to remain in the profession after graduation. Response has been positive, and more than 1,000 students signed up as ISCA Youth Associates.

Last year, the Institute launched the ISCA Digital Badges, along with the Chartered Accountants Worldwide Network Member Logo. They provide new ways to raise the visibility of our members’ credentials in an increasingly online world. Unlike paper certificates, Digital Badges enable members to share their professional achievements with just a few clicks on social media and digital platforms. The Chartered Accountants Worldwide Network Member Logo shows that members who are Chartered Accountants are part of a wider global network of leading professional accountancy institutes, lending credence to our members and the Institute they belong to.

ISCA also continued to expand our network and influence globally, in line with our strategic priority to raise ISCA’s global prominence. As ISCA elevates its brand internationally, the stature and employability of ISCA members will correspondingly be enhanced across international markets. Being part of a globally recognised brand heightens our members’ employability globally, bringing them greater career portability, market access and professional recognition.

Last year, we intensified our activities in the ASEAN region. This is now all the more vital with the geopolitical developments, which elevated the importance of ASEAN as an economic bloc. With the US-China trade war, businesses are moving their factories out of China and into ASEAN. The tariff and trade wars have stretched global supply chains to breaking point.

And the pandemic which had profound changes on the world broke those chains, pushing many businesses to go local or regional rather than global.  This heralds significant economic opportunities for ASEAN. With the increase in economic growth in the region, we can expect that demand for professional services like accountancy will increase in tandem.  

This could lead to greater career and business opportunities for our members, including those who hold the ASEAN CPA designation.

Last year, ISCA carried out capacity-building projects in the region, such as providing training on ISCA’s Audit Manual for Standalone Entities (AMSE) in Vietnam, and ISCA’s Audit Manual for Group Entities in Myanmar. Together with the Singapore University of Social Sciences, ISCA provided training for the Laos Ministry of Public Works and Transport. The Institute also signed a Memorandum of Understanding with the Vietnam Association of Certified Public Accountants for the translation, publication and distribution of ISCA’s AMSE in Vietnam.

In November 2019, the Institute hosted the ASEAN Federation of Accountants (AFA) Council Meeting in Singapore. In conjunction with the meeting, ISCA’s Financial Reporting Committee (ISCA FRC) and AFA held the ISCA FRC-AFA Financial Reporting & Business Conference, which brought together about 180 delegates across ASEAN to discuss updates on financial reporting and business issues.

Events such as these fostered greater cooperation and solidarity among the accountancy bodies in ASEAN, as well as promoted regional integration. One of the key lessons from the pandemic is that we all live on one earth with a shared future. As a profession, we can strengthen our resilience by building our networks, continuing to stay connected and meeting challenges collectively.  

Refreshed Vision & Mission

Recent events have highlighted the need for agility and adaptability. These are qualities familiar to the accountancy profession.

Similarly, ISCA continues to adapt and evolve to meet the changing needs of our members and the profession.  Having provided a broad overview of some of the Institute’s key activities last year, I would like to talk about our plans for the future I am pleased to share with you our refreshed vision, which will take effect from 2021.

Our refreshed vision is to be a world-class accountancy body of trusted professionals, contributing towards an innovative and sustainable economy.

This refreshed vision is supported by our renewed mission statements, represented by the acronym R.I.S.E.

R.I.S.E. stands for:

• Represent our members on matters affecting and of interest to the profession.
• Influence the development of the accountancy profession and ecosystem positively.
• Serve the public interest by helping to instil sound values and ensuring right ethical standards among our members and the profession.
• Enable our members to achieve their professional aspirations.

With our refreshed vision and mission statements in place, the Institute is well positioned to lead the profession through the challenges ahead.

Conclusion

We are living in a time of unprecedented change.  An area that has also changed significantly is the tax landscape, with the increased complexity in tax developments.

Back in 2010, ISCA, in partnership with the Tax Academy, set up a subsidiary, the Singapore Institute of Accredited Tax Professionals (SIATP), to support ISCA members specialising in tax. Today, there is a need to widen SIATP’s ambit beyond serving accountancy-trained tax professionals to include a wider audience. To facilitate its next stage of development, SIATP has been renamed Singapore Chartered Tax Professionals Limited. It has begun operating as an independent entity from April this year, while continuing to work closely with ISCA to support tax professionals in Singapore. ISCA will not receive any consideration for the withdrawal. The reserves of SIATP as at 31 December 2019 amounted to $1.5 million. This $1.5 million contribution takes our total support this year to the profession generally to more than $5 million.

Change is the only constant in life. Perhaps 2020 will be remembered as the year of unexpected changes and heightened uncertainties.  Regardless of how things change, ISCA will continue to support our members via our initiatives, to enable you to realise your professional aspirations.

Obviously, there is a lot of general uncertainty. One of the ways to deal with uncertainty is to be prepared for it. You’ve got to be nimble, be adaptable to face the unexpected.

On this note, I thank my fellow Council members and the team at ISCA for working with me to support our members and the profession through this period of uncertainty.  I thank our members too for their continued support. At ISCA, we will continue to do all we can to help our members and the profession through these challenging times.

Thank you.