Business and Accounting

Working Capital Management: Best Practices

As the festive season approaches and the cash registers commence their merry ringing, how do companies optimise their working capital? According to the latest 2014 Finance Priorities Survey by Protiviti, managing cash flow and working capital efficiently and effectively is key.

Working capital management involves managing inventories, accounts receivables and payables. Improved working capital management can help strengthen a company’s financials and help grow its business. A Hackett Group study has shown that through effective working capital management, top performing organisations are able to free up US$2.9 billion more in working capital than the typical Global 1000 organisation.

Please click here to read the full article.


 International Integrated Reporting (< IR >) Framework Latest Release

 
The release of the International Integrated Reporting (< IR >) Framework on Monday 9 December 2013, marks an important milestone in the market-led evolution of corporate reporting. It follows a three-month global consultation led by the International Integrated Reporting Council (IIRC) earlier this year, which elicited over 350 responses from every region in the world, the overwhelming majority of which expressed support for < IR >.
 
< IR > applies principles and concepts that are focused on bringing greater cohesion and efficiency to the reporting process, and adopting “integrated thinking” as a way of breaking down internal silos and reducing duplication. It improves the quality of information available to providers of financial capital to enable a more efficient and productive allocation of capital. Its focus on value creation, and the ‘capitals’ used by the business to create value over time, contributes towards a more financially stable global economy and is a force for sustainability.
 
Click here to download the Framework.

 


 ISCA-KPMG Risk Management Study: Towards Better Risk Governance (A Study of Singapore Listed Companies 2013)

Our study is a joint effort by ISCA and KPMG to gather insights on the risk management landscape in Singapore. It provides an understanding of the risk management capabilities and structures of listed companies in Singapore, as well as risk management disclosures in their annual reports. In addition, it also assesses the state of adoption of risk management practices among listed companies in accordance with the revised Code 2012 Principle 11 and SGX LR 1207(10).

Data was collected from a total of 250 companies listed on the SGX. For the purpose of our study, secondary listings, newly listed companies, real estate investment trusts, and companies that have not released any annual reports for FY11/12, including companies under judicial management, were excluded from the sampling.
 
The 250 sampled companies were sorted into three groups based on their market capitalisation. Data was collected using the annual reports for FY11/12 that were publicly available as at 31 December 2012.
 
Please click here to read the full report.


 Shaping and Influencing the Integrated Reporting Framework 

The International Integrated Reporting Council (IIRC) has issued a consultation Draft of the International Integrated Reporting (IR) Framework and is seeking the Institute’s comments. Here, we share ISCA’s recent initiatives on IR, as well as the key observations which we had raised in our comment letter to IIRC.

Please click here to read the full article.


ISCA’s Comment Letter to IIRC : Shaping and Influencing the Draft IR Framework

The International Integrated Reporting Council (IIRC) has issued a Consultation Draft of the International Integrated Reporting (<IR>) Framework and seeks the Institute’s comments.

IIRC is a global coalition of regulators, investors, companies, standard setters, the accounting profession and NGOs. Together, this coalition shares the view that corporate reporting needs to evolve to provide a concise communication about how an organization’s strategy, governance, performance and prospects, in the context of its external environment, lead to the creation of value over the short, medium and long term. The <IR> Framework is being developed to meet this need and provide a foundation for the future.

In line with our role as the national accountancy body and our vision to be a globally recognised professional accountancy body with Asian insights, the Institute is keen to play a role in raising awareness and encouraging discussion about <IR> not just in Singapore, but also within the ASEAN region.

In recent months, the ISCA has worked together with IIRC on raising the awareness and gathering feedback on <IR> through our thought-leadership events, such as ICPAS-IIRC “The Future of Corporate Reporting” roundtable and the SAC Post Convention workshop on “The Future of Corporate Reporting : Is Integrated Reporting the Answer?”.  Of significance, the Roundtable noted the importance for perspectives from the ASEAN region to be better represented or, if not, well represented in the development of the International <IR> Framework.

Given that the Framework is expected to make a significant impact across a broad range of stakeholders, such as investors, preparers of annual reports, assurance providers, directors and academics, ISCA has reached out to these groups to seek their views on specific areas of the Framework through a questionnaire, so as to allow our response to take into consideration the different perspectives of the various stakeholders. Where appropriate, we have also incorporated the invaluable feedback gathered from the above mentioned thought-leadership events.

Please click here to download the full comment letter.


 On-The-Ground Experience Counts

Expansion beyond Singapore is becoming a must for many domestic companies. This is necessitated by the increasing cost challenges, manpower constraints and, for some, limited growth in the local market. Reinforcing this push is also a pull factor. Despite the subdued global economic outlook, many growth opportunities continue to exist in Asia. In addition to the potential provided by emerging markets like Myanmar and Indonesia, China remains a major market for Singapore business to consider expanding to. 

Please click here to read the full article.


ISCA-CPA Australia Survey on Advisory Services for Singapore Businesses

This joint survey by the Institute of Singapore Chartered Accountants (ISCA) and  CPA Australia was conducted between September and October 2012. It aims to understand the range of accounting and advisory services needed by SMEs and those provided by Small and Medium-sized Accounting Practices (SMPs). 

Please click here to read the full survey report.


ISCA-CPA Australia Roundtable 2013: Leveraging on Advisory Services for Business Growth

Small and medium-sized accounting practices (SMPs), as trusted business advisors to small and medium-sized enterprises (SMEs), can be a significant and valuable source of support to help SMEs achieve their business goals. According to a recent survey jointly conducted by ISCA and CPA Australia, SMPs can better support the growth of SMEs by diversifying from audit and assurance services to provide advisory services to support SMEs’ internationalisation efforts.

Please click here to read the full report.