Raising the Financial Reporting Quality of Construction Companies – A Holistic Approach
Properly prepared, financial statements provide useful information which enables companies to monitor their financial health and evaluate their financial performances over a period of time. Useful business analytical ratios and projections can also be churned out using this financial information. Additionally, management can use such outputs as a basis to chart appropriate strategies and business plans, thereby helping to maximise returns to shareholders.
That said, construction companies have faced a number of challenges, which could have negatively affected financial reporting, leading to lower quality financial information being produced for decision-making purposes.
In our case study on Bo-Chap Construction Pte Ltd, we identify potential bottlenecks that prevent satisfactory resolution and explore how we can resolve these issues through a holistic approach termed “ACE”, short for Attitude,Communication and Education.