ACRA’s Areas of Review Focus for FY2024 Financial Statements: A Deeper Look at the Accounting Impact arising from Global Economic Slowdown, Geopolitical Tensions and Rising Costs

Description

This is a hybrid session. You have the option to attend this live in-person or online via Zoom. Please select accordingly at registration.

ACRA has issued in November 2024 the Financial Reporting Practice Guidance No. 1 of 2024 which highlights the areas of review focus for FY2024 financial statements, as a guide to directors in reviewing Financial Statements and discharging their duties as directors.

In this timely workshop, we will take a deeper look at the accounting issues arising from Global Economic Slowdown, Geopolitical Tensions and Rising Costs.

Programme Outline

Expected credit loss

Given the volatile inflation and interest rate environment, use reliable and updated macroeconomic information pertinent to borrowers, including forward-looking assumptions, liquidity challenges and financial conditions, in the assessment of ECL.

Impairment

Consider how changes in inflation and interest rates might impact cash flow projections. For example, review and update growth rate assumptions used in projections by comparing to recent economic data to incorporate the increased uncertainties arising from the macroeconomic environment.

Fair value measurement

Consider current market and macroeconomic conditions such as interest rates, inflation and yields in fair value measurement. Detailed disclosures of valuation techniques and inputs used is required to meet the requirements in SFRS(I) 13 Fair Value Measurement.

Business acquisition

Determining the acquisition date and assessing levels of power and participation in investees are crucial and often judgemental. The outcome frequently depends on the specific terms and conditions of the agreements. Companies pursuing synergistic benefits or restructuring through business acquisitions should evaluate these aspects to accurately determine whether they have joint control, significant influence or control over investees.

For material business acquisitions, evaluate whether goodwill includes premiums for specific intangible assets that may need to be separately identified and recognised.

Cases will be used to illustrate:

• The consideration of current and forward-looking information in assessing ECL.
• The development of value-in-use for determining recoverable amount for impairment test
• The estimation of fair value of investment in unquoted equity
• The determination of acquisition date
• The assessment of power in investee
• The difference between recognised assets and liabilities and identifiable assets and liabilities in the determination of goodwill

This workshop qualifies for 7.0 CPE hours in Financial and Sustainability Reporting Standards and Pronouncements (Category 1).

What you will learn

• Have a practical understanding on the accounting impact arising from the potential economic headwinds
• Learn how you can manage and mitigate the accounting impact and risks arising from the shifting macroeconomic environment

Target Audience

• Accounting and Finance Professionals
• Auditors
• Directors
• Audit Committee Members

Expert Speaker

Chee Hay Kheong Daniel

Daniel holds an Honours degree in Accountancy from the National University of Singapore and is a Certified Information Systems Auditor (CISA). He has more than 15 years of experience in the accounting profession, having worked for one of the Big 4 accounting firms both in Singapore and in the United Kingdom. He has also more than 5 years of senior management experience with MNCs, managing their operations in Singapore and Asia.

Daniel is a highly sought-after seminar trainer. He was an Adjunct Professor in the School of Business, Singapore University of Social Sciences and an Adjunct Associate Professor in the Department of Accounting of the NUS Business School. He served as a committee member of both the IT Committee and the Examination Committee of ISCA, and was a Committee member of the Disciplinary Sub-Committee of Accounting and Corporate Regulatory Authority (ACRA).