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ICPAS Sponsors World Expo 2010 Forum on Volunteerism Last Update - 09/02/2010

As part of its commitment to fostering corporate social responsibility, ICPAS sponsored a forum on volunteerism in January. The forum �Volunteerism As a Way of Life is held in celebration of the World Expo 2010 in Shanghai, happening from May to October this year. Some 70,000 volunteers will be needed for the World Expo.

Organised by MediaCorp and the Expo 2010 committee, the forum aimed to encourage volunteerism at the personal and corporate levels. ICPAS President Dr Ernest Kan was one of the panelists at the forum, which discussed issues such as enhancing the volunteer experience and encouraging people to volunteer.

Dr Kan spoke on ICPAS� commitment to corporate social responsibility, including the Institute�s recent collaboration with People�s Association to encourage ICPAS members to volunteer with PA�s grassroots organisations. ICPAS signed a Memorandum of Understanding with PA in January, aimed at having more CPAs Singapore volunteer their time and expertise in aid of the community, with opportunities to serve as treasurers or assistant treasurers in grassroots organisations.

Other panelists included Professor Zhou Hanmin, Vice Chairman of the 2010 Shanghai World Expo Executive Committee, Ms Claire Chiang, Senior Vice President of Banyan Tree Holdings, Mr Laurence Lien, CEO of National Volunteer & Philanthropy Centre, MediaCorp artiste Pierre Png, Ms Li Yin from Shanghai University and Mr Zhang Ning, founder of Charyou Organisation.

Panelists gave their views on the value of volunteerism. The discussion also touched on the role organisations play in fostering volunteerism.

The made-for-television forum on volunteerism is slated to air on Channel NewsAsia on February 15.

For a detailed report, look out for the February 2010 issue of Singapore Accountant.

First Episode, Channel NewsAsia, CNA - Singapore & CNA - International
15 February 2010, Monday, 9.30pm

Encore Telecast:
� Tuesday 12.30pm
� Wednesday, 4.30pm
� Thursday, 6.00pm

Note: Telecast details are subject to change.

ICPAS and SAA closed from 13th to 16th February Last Update - 10/02/2010

The Institute of Certified Public Accountants of Singapore (ICPAS) and Singapore Accountancy Academy (SAA) will be closed for the Chinese New Year holidays from 13th February to 16th February.

We will resume operations on 17th February.
We apologise for any inconvenience caused.

Wishing You A Prosperous New Year!

PA and ICPAS Sign MOU to Facilitate Volunteering by ICPAS Members Last Update - 01/02/2010

18 January 2010 � The People�s Association (PA) and the Institute of Certified Public Accountants of Singapore (ICPAS) signed a Memorandum of Understanding today (18 January 2010) to encourage ICPAS� more than 21,000 members to volunteer with PA�s 2,000 Grassroots Organisations (GROs).

The objective of the MOU is to encourage ICPAS members to contribute their skills in aid of the community, while grassroots organisations benefit by having professional expertise to oversee their finances.

For a detailed report, look out for the February 2010 issue of Singapore Accountant
Grassroots activities bring people together to promote social cohesion and racial harmony, through various activities and programmes. GROs also raise funds to help those in need, including offering financial assistance, and educational bursaries. ICPAS members can offer valuable assistance, as Treasurers or Assistant Treasurers within the GROs, to help oversee the GROs� finances.

ICPAS members, who are already active in volunteer work, welcome this additional opportunity to lend their expertise in pursuit of important community bonding goals.

�As the largest professional body in Singapore, ICPAS is committed to championing corporate social responsibility. We have had a long history of serving the community, with a community service committee spearheading annual community service projects since 1984. The partnership with PA today is synergistic, allowing us to better serve the community with greater impact, said Dr Ernest Kan, President of ICPAS.

�I believe CPAs Singapore, with their competencies in business and finance, and their reputation for professionalism and integrity, can contribute much to PA�s grassroots organisations and CDCs. I encourage our members to step forward and offer their skills and expertise to serve the community,� he added.

Mr Tan Boon Huat, Chief Executive Director of the PA, said, �The People's Association is delighted to work with ICPAS to facilitate their members volunteering with our grassroots organisations. The PA offers a wide variety of volunteering opportunities, and we welcome ICPAS members to volunteer in any capacity. Those who wish to volunteer in their area of expertise are welcome to serve as grassroots Treasurers or Assistant Treasurers. We laud ICPAS's great example of a professional organisation promoting such civic responsibility among its members. Other like-minded professional bodies will find the PA a ready partner in similar efforts.�

For a detailed report, look out for the February 2010 issue of Singapore Accountant

ICPAS Featured in China Central Television (CCTV) Programme Last Update - 22/01/2010

Audiences in China will learn more about ICPAS and its training arm Singapore Accountancy Academy (SAA) in a programme by China�s main broadcasting network CCTV called �Admiring Asia City � Singapore�.

In an episode on Singapore�s services sector, SAA is featured as a leading private education provider for accountancy programmes, showing why the school is a leading accountancy school and the choice for many foreign students.
In an interview with CCTV, ICPAS President Dr Ernest Kan said, �With top lecturers and student-focused staff members, SAA offers students the assurance of a quality education and a strong support network, providing them with the right learning environment to help them succeed.�

The segment also features former and existing SAA students, who spoke about why they chose to enroll with SAA and the many positive experiences they have had with their lecturers and fellow students. The episode will be shown on CCTV -10 on 29 January, at 11am.

Fresh Content for Singapore Accountant Last Update - 05/01/2010

ICPAS has added new features to its Singapore Accountant journal. The enhanced version features exciting new content, tailored to help members excel in their development as accountancy professionals.

The January 2010 issue of Singapore Accountant includes features on China�s development as an economic superpower as well as a titled �Structuring MNC�s Investment in China: Latest Considerations.� You can expect more auditing and accountancy content from ICPAS Research on �Challenges of Local Small and Medium Audit Practices�. Also featured in this issue are Tips From The Top, featuring Mr Nicholas Fung, CEO of One Empower Pte Ltd and in the Office Life article, �Team builder or Time Waster? Seven Signs Your Meeting is Sapping Productivity�.

Thank you for reading the Singapore Accountant and we welcome your feedback. Please email your letters to editor@icpas.org.sg.

Transforming Singapore into a Leading Global Accountancy Hub Last Update - 30/12/2009

Transforming Singapore into a Leading Global Accountancy Hub

�...the importance of developing a practice-focused professional accountancy qualification that is globally recognised and internationally portable�

�The challenge lies in getting the leading global economies to recognise this qualification�

�Where will the funding for all these recommendations come from, given that each recommendation requires considerable amount of resources to implement?�

�What is the Committee�s rationale for implementing a two-year targeted incentive programme to consolidate practices in the Small and Medium Practices (SMP) segment?�

These are some of the questions and observations developed from the Forum on CDAS Exposure Document held on 14 December 2009 at the STI Auditorium at Capital Tower. About 90 participants attended the forum to discuss the 10 recommendations developed by the Committee to Develop the Accountancy Sector (CDAS).

On 18 November 2009, MOF and ACRA issued a joint press release to announce the public consultation document on recommendations to transform Singapore into a leading global accountancy hub over the next 10 years.

�In a recent Global Financial Centres Survey, commissioned by the City of London, Singapore is the top Asian financial centre and third in the world, behind only London and New York. Singapore�s reputation as a financial centre would serve to benefit its economy and attract foreign investors to make Singapore its choice investment destination. To this end, we would require our accounting professionals to be well qualified and internationally mobile. One of the key recommendations � to develop a globally recognised post-graduate practice-focused professional accounting qualification � seeks to do just that. Through this forum, we would like to hear your views on how Singapore can develop a strong practice-focused accounting profession that is internationally recognised and portable,� said Dr Kan.

A panel discussion, chaired by Dr Ernest Kan was held. Panellists included Mr Benjamin Cheam, Mr Rohan Kamis, ICPAS Corporate Governance Committee (CGC) Member and Managing Partner of Rohan Mah & Partners, Mr Soh Gim Teik, ICPAS CFO Committee Chairman and Partner of Finix Corporate Advisory LLP, Mr Yeoh Oon Jin, ICPAS Council Member and Partner of PricewaterhouseCoopers LLP, Mr R Dhinakaran, ICPAS Management Accounting Committee Chairman & Managing Director, Jay Gee Enterprises Pte Ltd and Mr Loo Wen Lieh, ICPAS CFO Committee Member and Group Financial Controller, Tee Yih Jia Manufacturing Pte Ltd.

Look out for the February issue of Singapore Accountant for more details on issues raised in the panel discussion.

Accountants: Facing Challenges and Shaping the Economy Last Update - 22/12/2009

The 16th ASEAN Federation of Accountants (AFA) Conference was organised by the Brunei Institute of Certified Public Accountants (BICPA). The ASEAN accounting fraternity gathered in Brunei on 8 and 9 December 2009 to discuss developments of the profession in the region.

The AFA Conference is a biennial event organised by AFA with each of the 10 AFA primary member bodies taking turns in rotation to host the event. The 16th AFA Conference, themed �Accountants: Facing Challenges and Shaping the Economy�, featured prominent speakers around the region and it was officiated by the Second Minister of Finance of Brunei Darussalam, the Honourable Pehin Orang Kaya Laila Setia Dato Seri Setia Awg Hj Abdul Rahman Bin Hj Ibrahim.

The Conference was one of the largest gathering of accountants in Brunei Darussalam, involving industry leaders, accountants, business professionals and educators in accounting and finance in ASEAN for a two-day plenary and concurrent sessions. The participants exchanged thoughts on best practices in finance and accounting management, issues and challenges affecting businesses, insights and cutting-edge information on global trends and emerging issues. In addition, important topics such as the roles and responsibilities of CFOs, financial scandals, Islamic finance, and accountants� role in supporting business confidence and economic recovery, audit rotation, corporate governance, accounting standards and IFRS matters, and SME financing were also discussed.

Numerous discussion panels were conducted. �Global economic downturn � why CFOs are in the hot seat� was the topic for the first discussion session. Dr Ernest Kan, ICPAS President, gave a presentation and shared on some high profile examples of corporate failures and their CFOs, the various roles and responsibilities of the CFO, demanding and possibly conflicting issues that CFOs have to grapple with.

�Rules or principles based � can accounting standards prevent financial scandals?�, moderated by Mr Kon Yin Tong, ICPAS Council Member, was the focus in a concurrent session. This session touched on the complexity of accounting standards, common reasons for adopting rules-based accounting standards in a litigious environment, the importance of involving the preparers of financial statements, auditors and regulators in implementing high quality FRSs, ethical considerations in preventing or minimising financial scandals.

Mr Lim Boon Cheng, ICPAS Council Member, gave a presentation on �Audit rotation will give you greater integrity and value to your company � a wishful thinking?� The session covered issues like the importance of audit independence, international and local rules and guidance on audit rotation and many more.

Mr Gerard Ee, ICPAS Vice President, highlighted on �Corporate governance vs profitability � which comes first?� The evolvement of corporate governance with growth and complexity of businesses over the years, general reluctance and difficulties faced by whistle-blowers, and considerations to balance the pursuit of profits with sustainable development were discussed.

Discussion on �Can IFRS be adopted as the global financial reporting language? How practical and how soon?� was another session. The discussion highlighted the merits of having a single set of high quality and understandable accounting standards to enhance comparability, facilitate cross border listing and reduce transaction costs.

This was followed by a report on the ACCA survey results on Small and Medium Enterprises (SME) Financing. The welcome and closing remarks for the Conference were delivered by Pengiran Haji Moksin, BICPA President.

The 16th AFA Conference was held at the Rizqun International Hotel in Bandar Seri Begawan, Brunei Darussalam.

For a detailed report, look out for the February 2010 issue of Singapore Accountant.

Wishes for the New Year Last Update - 28/12/2009

In this round-up of what CEOs and business leaders wish to see in 2010, ICPAS President Dr Ernest Kan was featured. He commented that ��The Committee to Develop the Accountancy Sector (CDAS) in Singapore has announced its recommendations to grow Singapore into a global accountancy hub. One of the committee�s recommendations is for ICPAS to become a global accountancy body.

As President of ICPAS, I hope to heighten ICPAS� stature as a leading accountancy body and promote the CPA Singapore designation to be recognised in major capital markets and be portable internationally.

I hope that under my leadership, in 2010 the Institute will be positioned for tremendous growth and development, to support Singapore�s goal to be a key player in the global economy.�
Featured in 'Lianhe Zaobao', December 27, 2009

FRS 1 (Revised 2008) – How a Revised Accounting Standard Affects You Last Update - 22/12/2009

The Institute of Certified Public Accountants of Singapore (ICPAS) organised a seminar on �FRS 1 (Revised 2008) � How a Revised Accounting Standard Affects You�, on 11 December 2009 at the STI Auditorium at Capital Tower. The speaker, Ms Kok Moi Lre is the technical partner at PricewaterhouseCoopers LLP and also a member of ICPAS�s Accounting Standards Committee and the Financial Statements Review Committee. The Singapore Institute of Directors (SID) and Investment Management Association of Singapore (IMAS) were ICPAS�s strategic partners at the event.

The turnout for the seminar was encouraging and all 250 seats at the auditorium were sold out a week before the seminar.

The seminar commenced with the keynote address by Dr Ernest Kan, President of ICPAS. In his address, Dr Kan provided a brief outline of ICPAS�s thought-leadership initiatives for the coming year. He also encouraged participants to provide feedback on the public consultation report issued by the Committee to Develop the Accountancy Sector (CDAS) which aims to transform Singapore into a global accountancy hub.

Ms Kok presented the following key changes in FRS 1 (Revised 2008) which is effective for annual periods commencing on or after 1 January 2009.

� Presentation of a �Third� Balance Sheet when there are retrospective adjustments and reclassifications.

� Introduction of a new primary statement - the Statement of Comprehensive Income.

� Due to the introduction of the Statement of Comprehensive Income, the Statement of Changes in Equity will also look different compared to that under the old FRS 1, as it will only disclose transactions with equity holders, such as issuance of additional share capital and dividends.

Under FRS 1 (Revised 2008), there will also be changes in the terminologies used for two primary statements- The Balance Sheet is renamed as the Statement of Financial Position, and the Cash Flow Statement is renamed as the Statement of Cash Flows. However Ms Kok emphasised that it is not mandatory to adopt the change in terminology for these 2 primary statements.

Ms Kok also took participants through the economic entity approach. The key implication of this approach is that minority interest (MI), or non-controlling interest (NCI) as is known under FRS 27 (revised 2009), are contributors of equity and have equity interest in part of the business of the reporting entity. Hence, MI/NCI is shown under the equity section of the reporting entity.

The seminar ended with an interactive Q&A segment where Mr Reggie Thien, Council Member of the SID, and Ms Kok fielded questions from the participants. Mr Ramchand Jagtiani, Head of Technical Division at ICPAS was the moderator for the session.

For a detailed report, look out for the February 2010 issue of Singapore Accountant.

ICPAS to transform itself into a global professional accountancy body Last Update - 21/12/2009

THE Asia-Pacific accountancy market was worth US$30.8 billion (S$42.6 billion) last year, and will reach US$38.3 billion by 2013, figures from Datamonitor show.

Singapore's contribution to the market is 2.8 per cent. Australia, at 30 per cent, has the largest share, followed by China with 16.6 per cent and India at 16.4 per cent.

The national accountancy body is the Institute of Certified Public Accountants of Singapore (ICPAS), which has 21,000 members, most of whom work in Singapore.

The president of the institute is Dr Ernest Kan. One of the committee's proposals is for ICPAS to transform itself into a global professional accountancy body.

S'pore aims to be accountancy hub

A POST-GRADUATE accountancy qualification that can be a passport to finance jobs worldwide has been proposed by a committee set up by the Ministry of Finance to look at ways of transforming Singapore into a global accountancy hub.

The proposal was announced by Minister in the Prime Minister's Office and Second Minister for Finance and Transport, Mrs Lim Hwee Hua, at the Ernst & Young Entrepreneur of the Year award ceremony yesterday. It is part of a raft of recommendations contained in a consultation paper from the Committee to Develop the Accountancy Sector (CDAS).

Mrs Lim said: 'Ultimately, we want to build up a body of accountancy professionals with the breadth of relevant experience and skills...and the integrity to uphold the high standards that would be crucial to Singapore's reputation as a trusted hub.'

The minister said that Singapore was home to many businesses and companies with regional and international headquarter responsibilities.

'Accountants, including chief financial officers (CFOs) and internal auditors, play a key role in helping entrepreneurs grow and expand their enterprises,' she added.

Last December, the Ministry of Finance appointed CDAS - chaired by Mr Bobby Chin, the ex-managing partner of Big Four firm KPMG - to review the Singapore accountancy sector and profession.

Since then the committee has held more than 70 meetings with various parties including the universities, students, companies and government agencies.

CDAS is asking for feedback on three areas:
� Making Singapore a leading centre for accountancy talent, education and professional development.
� Developing Singapore into a centre for high value-adding professional accountancy services; and
� Enhancing the sector's institutions and infrastructure.

The committee is also looking for comments on the 10 key proposals it has drafted to make this vision a reality.

Mrs Lim highlighted three of them at the awards event last night, one of them being the development of a post-graduate professional accountancy qualification.

The committee said that in Australia, Britain and the United States, professional bodies have their own accountancy qualification programmes.

Having a similar accountancy qualification will help Singapore develop as a centre for accountancy education. The qualification should be globally recognised and be internationally portable, meaning that it opens up access to work in global capital markets.

Gaining the qualification can also allow non-accounting trained professionals a chance at a second career.

Another proposal Mrs Lim drew attention to was developing a CFO certification programme that takes on board the evolving role of the chief financial officer.

No longer is he just a 'scorekeeper' who keeps track of the company's results.

Many in the industry say a CFO now needs to go further and implement financial strategy which is in line with the business strategy.

The ideal CFO should have a broad base of knowledge, encompassing the business, the industry, financial markets and internal functions, the committee said.

What a CFO needs are programmes to equip him to do his job better, it added.
Singapore Exchange-listed Changjiang Fertilizer's chief financial officer Joel Leong told The Straits Times: 'The experience of Singapore CFOs are varied and their capabilities need to be enhanced. Those from smaller companies need to be exposed to how larger companies tackle different situations.'

The third proposal Mrs Lim disclosed was the setting up of an accountancy sector development fund to help the sector grow.

The fund could assist local accountancy firms expand regionally or help implement technology that would make the sector more efficient.

It could also attract global accounting conferences to Singapore.

The consultation paper is available on www.acra.gov.sg and the deadline for feedback is Dec 31.

Dinner & Dialogue 2009 Last Update - 11/11/2009

Excitement filled the air with more than 500 particpants join us at engaging and insightful Dinner & Dialogue at The Ritz-Carlton. We were honoured to have ICPAS Advisor, Mr Teo Ser Luck to grace the event on 6 November.

The event kick off with the welcome address by ICPAS President, Dr Kan who shared on Gen Y being the future leaders and their diversity in views. He also elaborated on his 200 days president's message which was electronically mailed to all 21,000 members on the the upcoming development of the institute and the achievements we have accomplished.

He added � Looking into the future, in 5 to 10 years� time, I hope, and believe many of you here share my vision, that ICPAS develops itself into a more dynamic organisation. The accountancy profession in Singapore has the potential to further strengthen its capabilities and contribute towards the nation�s economic prosperity. Singapore�s external thrust is in line with the regionalisation and globalisation efforts of many accountancy practices and businesses. Accounting professionals who are bold in venturing out will find that their skill-sets and IFRS knowledge are highly sought after globally.�

�It is heartening that ICPAS, as the national accountancy body and Singapore�s largest professional body, is taking a leading role in addressing a salient issue facing the nation.� ICPAS advisor, Mr Teo Ser Luck highlighted in his keynote speech. He further added that �As a nation, we need inspired and committed young Singaporeans. We want to continue to build an environment where young adults will always feel a sense of ownership and responsibility for Singapore, know that they have a stake in the nation, and know that they have support for their goals and aspirations.�

The key highlight of the event was the dialogue session faciliated by ChannelNews Asia presenter, Melissa Hyak. In the dialogue, key issues Gen Yers faced and the challenges organisations faced in harnessing the talents and retention strategies to keep the Gen Yers. Mr Teo Ser Luck pointed out that the Gen Yers are more tech savvy, preferring an unconventional approach to life, Gen Yers are intrinsically motivated, working to fulfill goals which are aligned with their personal values and value work-life balance.

The faciliator opened the forum up to the audience to ask questions which added live and interaction amongst the partipants.

Another main highlight of the event was the presentation of the �Distinguished Service Award� to Mr Tan Boen Eng, who has been the president of ICPAS from 1995 to April 2009. A video tribute was made specially for Mr Tan on his achievements and journey in the industry.

The atmosphere further heightened with the performance by the electric violinist and hot samba dance performance.

ICPAS would like to thank all the particpants for their overwhelming support and for the participating organisations and sponsors that have made this event a huge success. ICPAS look forward to provide more fruitful and engaging discussion forums for our members in the years to come.

For more details and pictures, please look out for the January 2010 issue of the Singapore Accountant.

Statement regarding the Straits Times report dated 3 November on the legal case Last Update - 24/11/2009

1. Suit No. 660 of 2008/K was commenced by Stansfield College in the High Court against Teo Chua Chin, T. Durairajoo, Alan Ng Kam Cheong and the Institute of Certified Public Accountants of Singapore (�ICPAS�) (collectively referred to as the Defendants) sometime in September 2008.

2. Teo Chua Chin, T. Durairajoo, Alan Ng Kam Cheong, the 1st to 3rd Defendants of Suit No. 660 of 2008/K (�the proceedings�) are lecturers who used to lecture at Stansfield College before they started lecturing at the Singapore Accountancy Academy (�SAA�) sometime in 2007.

3. The allegations of copyright infringement made by Stansfield College against the Defendants relates to certain supplementary notes in the UOL programme.

4. Since the commencement of the action, SAA did not use the notes in question to avoid further complications and does not intend to use these notes anymore as SAA has since developed a new set of comprehensive course materials for its students.

The Settlement

5. ICPAS maintains and continues to maintain that Stansfield College�s claims are unmeritorious. At all times, ICPAS was ready, willing and able to rigorously defend Stansfield College�s claims.

6. As in all lawsuits, it is in the interest of any defending litigant to avoid expending unnecessary time and costs by exploring settlement without admitting liability. Solely on this footing, the 1st to 3rd Defendants, together with ICPAS, made an offer to settle for a nominal sum of $20,000 a whole month before trial.

7. Although the offer to settle was made before the trial started, Stansfield College persisted in going for trial.

8. Stansfield College only accepted the nominal settlement offer on the 3rd day of trial, after two of Stansfield College�s witnesses had been rigorously cross-examined by the Defendants' solicitors. This delay in accepting the offer has certain costs consequences against Stansfield College. Had Stansfield College persisted further, the offer of settlement would have been withdrawn.

Conclusion

9. Stansfield College chose to accept the nominal settlement sum of $20,000, which is less than 10% of what Stansfield College was minimally seeking by commencing its action in the High Court which has a monetary limit of $250,000 or more.

10. By accepting the nominal settlement offer,

a. Stansfield College has not proven its case against the Defendants as there has been no determination by the Court.

b. Stansfield College has to wholly discontinue its action without any admission of liability by any of the Defendants whatsoever.

Seminar on Observations by the Financial Statements Review Committee Last Update - 21/10/2009

In the half-day seminar on the 15 October conducted by the Institute�s FSRC observed compilations from its reviews for the past 12 months, gathered more than 400 participants from accounting firms, statutory boards and ICPAS member from various industries. Ms Cheng Ai Phing, Chairperson of the FSRC and a partner of Deloitte & Touche LLP shared her expertise on the FSRC�s objectives, work process and future projects which FSRC has identified to raise the level of corporate financial reporting in Singapore. Ms Cheng also provided statistics on the number of company financial statements from various industries reviewed for 2007 to 2009.

Mr Chris Choo, partner of Mazars LLP shared about the FSRC�s observations on compliance with various FRSs and SSA 600 & 700. He provided several examples to illustrate various disclosure requirements of these standards.

Ms Kok Moi Lre, partner of PricewaterhouseCoopers LLP presented on FRS 1, 10 & 21. Her presentation includes a variety of examples and simulating questions for the participants. It was highlighted that FRS 1 (Revised) Presentation of Financial Statements applies to financial statements with annual periods commencing from 1 January, 2009. Thereafter, Ms Kok moved on to explain the two presentation options on one/two statement approach of the New Statement of Comprehensive Income. On FRS 21 � Effects of Changes in Foreign Exchange Rates, the various factors to consider as per FRS 21.9 & FRS 21.10 in the selection of a suitable functional currency for an entity were shared.

The FSRC�s observations on FRS 32, 107 and 39 was next. Mr Ho Kok Yong, partner of Deloitte & Touche LLP expounded on these observations in a witty and captivating manner coupled with several industrial illustrations. On FRS 32, he emphasised on the importance of distinguishing between the requirements of (old) FRS 32 on Financial Instruments: Presentation and Disclosure and (new) FRS 32 on Financial Instruments � Presentation which is supplemented by FRS 107 on Financial Instruments � Disclosures. Mr Ho also explained on the observations on the subject of disclosure of interest rate risk, credit risk and sensitivity analysis of various types of market risk to which the entity was exposed at the end of the reporting period.

Mr Tham Chee Soon, partner of Ernst & Young LLP who gave a presentation on FRS 103, 27 & 28. Generally Mr. Tham felt that there were not many FSRC observations on these standards. Instead, he provided industrial examples on the application of the standards to provide a better understanding to the participants. Two examples were provided to enable the participants to distinguish between the acquisition of a group of assets from an entity and a business combination between two entities as stated in FRS 103.

Insights on the two exposure drafts issued by the IASB: ED 2009/7 Financial Instruments: Classification and Measurement and ED 2009/5 Fair Value Measurement and feedback on ED 2009/7 were provided by Mr Jeremy Hoon, partner of KPMG LLP. On the topic of Financial Instruments - Classification, ED 2009/7 proposed two primary measurement categories for financial assets and liabilities of Amortised Cost and Fair Value. Classifications of Held to Maturity, Available For Sale and Loans and Receivables categories are eliminated. On ED 2009/5 Fair Value Measurement, it was once again underscored that fair value is defined as the current exit price and it applies to all assets, liabilities and equity instruments.

Following the presentation, a panel discussion was conducted. The panelist included Ms Cheng,
FSRC Chairperson and the speakers, Mr Choo, Ms Koh, Mr Ho, Mr Tham and Mr Hoon. Questions concerning the treatment on the provision for deferred tax in respect of fair value gain on investment properties and the accounting treatment for quasi-equity loans from a parent to a subsidiary were discussed. Ms Cheng, FSRC Chairperson also advised participants to keep in view on the future changes to IAS /IFRS in particular, FRS 39 and fair value measurement.

The Institute�s Financial Statements Review Committee (FSRC) reviews audited financial statements with the objective of providing constructive feedback in areas where the presentation or content of the financial statements appear to fall short of compliance with the statutory requirements including the Singapore Financial Reporting Standards, the Institute�s published standards and other promulgations.

For a detailed report, look out for the January 2010 issue of Singapore Accountant.

Stand to WIN LCD TV sets Last Update - 07/01/2010

We wish to thank you for your continuous support towards the institute over the past year.

Please note the membership subscription renewal for 2010 will commence from 1st December 2009 to 31st January 2010.

We encourage you to be part of our green initiative to reduce paper usage by logging on to Members Login above to renew your subscription online. Subscription payments received online before 31st January 2010 will qualify for our lucky draw, with a chance to win two 42� LCD television sets.

How To Qualify:

Step 1: Login to your ICPAS account
Step 2: Proceed to my Payments
Step 3: Proceed to my Payments List

In addition, to ensure you are kept abreast of industry happenings, please update your particulars online through the Members� Profile Update Portal. Alternatively, you may also send us the updates via the membership subscription renewal form which will be mailed to you in due course.

As the new year approaches, ICPAS will continue to enhance the interests of our members and work closely with government agencies to heighten the recognition of the CPA Singapore designation in key capital markets around the world. We will continue to do our best to serve our valued members by developing and enhancing the integrity, status and interests of the accounting profession.

For more information, please email to membership@icpas.org.sg, or call the Member Services Division at 6597 5620.

BAR Seminar - Empowering Better and Timely Business Decisions Last Update - 30/09/2009

More than 500 accounting and industry professionals were present at a Business Reporting Seminar organised by the Institute of Certified Public Accountants of Singapore on the 23 September 2009.

With the increased emphasis placed on corporate governance and transparency, an effective and efficient business reporting and information dissemination process has become critical for the business community. Information users require timely business information to make decisions.

The Singapore Business Reporting Seminar addressed these areas with the use of the globally accepted reporting language eXtensible Business Reporting Language (XBRL) can be harnessed upon by analysis tools to provide user-enabled platforms to make timely business decisions.

In addition, the seminar also covered the recent revisions to the financial reporting standards (FRS) 1 Presentation of Financial Statements, effective for annual periods beginning on or after 1 January 2009, the upcoming revisions to the current ACRA Taxonomy and the FS Manager.

In his opening address, ICPAS President Dr Ernest Kan highlighted the �critical role ICPAS members play in facilitating the transition to XBRL financial reporting in Singapore.� He added that Singapore is one of very few countries globally to have a full XBRL financial statements filing process in place with significant volume, although over time, it is expected that more countries will have business reporting in XBRL process in place.

There was a total of seven speakers from various organisations namely Mr Ivan Koo Ms, Sia Su Chun and Ms Jerlene Tan from ACRA, Mr Andre van Zyl from WHK Horwath ,Ms Ong Suat Ling from Ernst & Young, Mr KK Tang ICPAS IT Committee Chairman. ACRA�s Chief Executive, Ms Juthika Ramanathan and Mr Ow Fook Chuen, and Deputy Chief Executive of ACRA were also present at the seminar.

Mr Ivan Koo who is the Head (XBRL Office), ACRA, shared the possibilities of releasing the power of XBRL as a financial analytical tool. ACRA allows two options for XBRL corporate financial statements filing, namely full XBRL and partial XBRL. The statistics show that partial XBRL filing is the more popular option amongst companies. Since the implementation on 31 August 2009, 81,906 XBRL financial statements had been filed with ACRA.

The changes to ACRA Taxonomy arising from following FRS revisions which includes FRS 1 Financial Statements, FRS 27 Consolidated and Separate Financial Statements and FRS 103 Business Combinations was presented by Ms Sia Su Chun, Deputy Head (XBRL Office), ACRA shared on the. She also shared on the enhancement made to FS manager.

Tang Kok Kwai, ICPAS IT Committee Chairman spoke on the automated business reporting and that the promotion of the use of XBRL information for Business Analysis by ACRA is very timely. He also highlighted the three examples of XBRL download.

For more details, please visit Business Analytics and Reporting.

Singapore Accountant Readers Survey Results Last Update - 22/10/2009

Thank you for your participation in the Singapore Accountant Readers Survey . We have received overwhelming response from our members. The survey helps us to draw insights of what our members really want. Please see attachment to view the results.
Survey Findings:
� 50 percent of the respondents read every issue of the journal, while 28 percent reported reading most issues.

� 50 percent of the respondents read at least 50 percent of the content, while 39 percent read at least 75 percent of the content. Only 9 percent read the journal from cover to cover.

� 79 percent keep an issue for more than one month, which connotes that readers find Singapore Accountant a useful read and do take the time to read through the publication.

� Most respondents (65 percent) rated the quality of the journal average, based on overall contents, cover presentation, ease of reading, layout and design, photo quality and writing style. This implies that there is much room for improvement in terms of the Journal�s look and feel.

� However, 78 percent of the respondents agree that �Singapore Accountant is a good source of information on accounting�, which indicates that the journal continues to offer value as a useful source of industry knowledge. Most respondents felt that through the journal, they were kept abreast of industry news. Respondents also felt the articles were relevant to their profession and served as a source of continuing education.

� Of the areas in which the journal falls short of expectations, 52 percent felt it did not provide useful career and networking information. 28 percent felt that journal had too many advertisements.

We would also like to congratulate the 5 lucky winners who have won themselves a pair of tickets worth $200 to ICPAS Dinner & Dialogue on the 6 November 2009 at the Ritz-Carlton

1) Venkataraman Raju
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2) Rachel Swee
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3) James Lee
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4) Chong Lai Yoong
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5) Hwee Ji Feng, Andrew
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Singapore Accountant Readers Survey Result (Graph)

Huge potential to be unlocked in Asean Last Update - 06/08/2009

There is huge potential to be unlocked in this region, say speakers at the Asean Regionalisation Prospects and Capital Markets dialogue organised by ICPAS and Asean Federation of Accountants on 31 July.

Addressing the business leaders and the accounting profession at the event, ICPAS President Dr Ernest Kan urged the delegates to not only stay competitive in their own countries, but explore regional expansion as well as there are vast opportunities in Asia and ASEAN. He said that we should �take a closer look at Asean markets with an open mind�.

Dr Ahmad Magad, who is the Member of Parliament for Pasir Ris - Punggol GRC, was the guest-of-honour at the event. He touched on the economic potential of Asean and areas of cooperation that businesses can look into, namely, infrastructure, energy, new media, healthcare, tourism, SME cooperation and investments.

Invited speaker Mr Richard Teng, Senior Vice President and Head, Issuer Regulation, Singapore Exchange Limited, shared that firms can consider listing on Asean bourses. While regional integration had compelling benefits, he acknowledged that potential stumbling blocks may not make integration easy. These could include nationalistic tendencies and differences in security law regimes, regulation structures and listing criteria, just to name a few.

Clarification Last Update - 28/09/2009

We refer to the article �Accounting for Deferred Tax and Investment Property� published in the Sep/Oct issue of the SINGAPORE ACCOUNTANT.

We wish to clarify that the views expressed in the contributed article do not necessarily represent those of the Institute. As stated in the clauses under the Contents column, the Institute does not accept responsibility for the accuracy of any statement, opinion or advice contained in the text.

ICPAS had issued an article titled �Deferred Tax on Revaluation Gains/Losses of Investment Properties� on 16 October 2007 in our website under the �what�s new� section. We would like to reiterate that the views as stated in the article published on 16 October 2007 remain valid.

Whilst the article published in the Sep/Oct issue of the SINGAPORE ACCOUNTANT is correct in stating that there is no capital gains tax in Singapore, the writers had mainly considered one out of two possible ways in which the revalued carrying amount of investment property can be recovered, i.e. via sale. The other way in which FRS 12 allows the revalued carrying amount of the investment property to be recovered is through use.

Investment properties could comprise freehold land, leasehold land and buildings which include integral plant & equipment. In Singapore, leasehold land, building, plant & equipment are generally depreciable assets. Freehold land is not a depreciable asset.

INT FRS 21, paragraph 5 states that �the deferred tax liability or asset that arises from the revaluation of a non-depreciable asset in accordance with FRS 16.31 shall be measured on the basis of the tax consequences that would follow from recovery of the carrying amount of that asset through sale.� Since freehold land is not depreciated, and there is no capital gains tax in Singapore, there is hence no deferred tax in respect of investment property which belongs to the freehold land sub-category, whether the revalued carrying amount is to be recovered through sale or use. To be more precise, gains/losses from the revaluation of freehold land of investment property through sale is applied at zero capital gains tax rate, resulting in zero deferred tax asset/liability.

However, for investment properties which belong to the leasehold land and buildings (which include integral plant & equipment) sub-categories, and where the revalued carrying amount is to be recovered through use, a deferred tax liability should be recognised because according to SFRS 12 paragraph 20(a), even if the entity does not intend to dispose of the asset, �the revalued carrying amount of the asset will be recovered through use and this will generate taxable income which exceeds the depreciation that will be allowable for tax purposes in future periods�.

Guanxi Still Paves the Way for Business in China Last Update - 11/09/2009

Establishing guanxi is still the way to go when conducting business in the economic powerhouse of China, according to Jason Lee, Partner of Lixin International. It is therefore important to understand the cultural differences between different regions of China. If a practitioner intends to do business in China, his advice is that one should have a reliable and resourceful local Chinese partner with a wide network in China. Of course, one has to abide by the local laws and regulations.

Mr Lee was speaking on �Business Environment in China and China Accounting Standards� at the Technical Discussion Group held on 7 September.

Mr Lee also noted that there has been an accelerated speed of unification with the world economy after China joined World Trade Organisation. The replacement of Chinese Accounting Standards (CAS) by the International Financial Reporting Standards (IFRS) since January 2007 is one such example. This is to bring China more in line with the rest of the world. Still, there were a few notable differences between CAS and IFRS.

Opportunities continue to abound in China. However, the Chinese entrepreneurs nowadays are generally younger with better academic qualifications, noted Mr Lee. Further, the government is stepping up efforts to clamp down corruption.

For a detailed report, look out for the November/December 2009 issue of Singapore Accountant.

Public Accountants Look at Professional Scepticism and Communication Last Update - 25/08/2009

The Public Accountants Conference 2009, organised by Accounting and Corporate Regulatory Authority (ACRA) in strategic partnership with ICPAS, focused on professional scepticism and communication.

Mrs Lim Hwee Hua, Minister, Prime Minister�s Office and Second Minister for Finance and Transport spoke on the key role of the accountancy profession in the corporate governance framework and the importance of upholding quality. She also emphasised the need for the profession to seize opportunities for growth and to leverage on the trusted Singapore brand.

Ms Juthika Ramanathan, ACRA�s Chief Executive shared that it is important for stakeholders to work together to strengthen the corporate governance regime, including vigorous oversight of public accountants and upholding quality and standards.

Next, the findings on the �Process and Considerations in the Appointment and Change of External Auditors of Listed Companies in Singapore� were presented by Practice Associate Professor Foo See Liang, School of Accountancy, Singapore Management Uuniversity (SMU). Prof Foo�s presentation dealt with important links within the corporate governance framework such as the need for open communication between the audit committee (AC) and the auditor. He further explained that the audit fee is only one of the criteria when deciding on reappointment or change of auditors. Other key drivers such as knowledge ability and experience are also considered.

The panel discussion that followed focused on �The Interplay Between Responsible Parties in the Corporate Governance Ecosystem�. The panelists were Mr Gautam Banerjee, Executive Chairman, PricewaterhouseCoopers LLP Singapore; Mr Vincent Chen, Chairman, Corporate Governance Committee, Securities Investors Association (Singapore); AP Foo See Liang, SMU; Mr Lee White, General Manager, Standards and Public Affairs, Institute of Chartered Accountants in Australia; and Mr Yap Chee Keong, Advisor, Singapore Power Limited and Independent and Non-Executive Director, The Straits Trading Company Ltd. The panelists exchanged views on the implications of AP Foo�s study and other issues from various views base on their individual experiences in the corporate world. The panelists agreed that it is vital for the auditor to maintain strong communication with the AC as an important prerequisite for good corporate governance. Another issue discussed was on audit fee levels in Singapore and Australia. It is interesting to note that anecdotally, the average audit fee levels in Singapore are lower than in Australia for listed firms, which may indicate that clients in Australia rely much more on having good auditors as a tool of risk management and hence a necessity to good corporate governance.

Dr Ernest Kan, ICPAS President, in his presentation touched on the topic �Providing a Common Platform for Profession Development�. He analysed the challenges, trends, common platforms and professional development issues.

In another panel discussion involving Mr Frankie Chia, Managing Partner, BDO Raffles; Mr Gerard Ee, Vice-President, ICPAS; Mr Shanker Iyer, Founding Partner, Shanker Iyer & Co; Dr Ernest Kan; and Mr Sitoh Yih Pin, Founding Partner, Nexia TS Public Accounting Corporation, the panellists touched on the topic Strengths and Opportunities for Singapore�s Public Accountancy Profession�. The panel exchanged views on how the growth of China�s economy will present local CPA firms with more opportunities and when the large Chinese corporations eventually expand overseas like their western counterparts had done so, they will set up subsidiaries in Singapore. Local CPA firms may also be interested to establish tie-up arrangements with the second tier CPA firms in China.

Mr Shariq Barmaky, Audit/Technical Partner, Deloitte & Touche Singapore presented the highlights on the technical developments in auditing standards. He drew attention to the history of the clarity standards and explained that the final set of clarified ISAs comprising 36 ISAs will be effective for audits of financial statements for periods beginning on or after 15 December 2009 and there will probably not be any new ISAs for another 2 years.

To wrap up the day, Mr Yeoh Oon Jin, Head of Assurance, PricewaterhouseCoopers LLP Singapore spoke on the �Practical Audit Guidance: In Depth Guidance on Key Audit Areas�. He emphasised that professional scepticism is something which can be acquired through experience, and one who has the right attitude to learn can acquire knowledge. Mr Yeoh, completed his presentation by sharing valuable insights from his personal experiences throughout his career.

The event on 19 August attracted a total of 750 participants.

ICPAS and CPA Australia Seal Mutual Recognition Agreement Last Update - 04/08/2009

Institute of Certified Public Accountants of Singapore (ICPAS) President, Ernest Kan, and CPA Australia Deputy President and Deputy Chair, Board of Directors, Low Weng Keong, today renewed the mutual recognition agreement (MRA) between ICPAS and CPA Australia. The mutual recognition arrangement provides a common platform to recognise the qualifications and training of each member�s body.

ICPAS President Ernest Kan said, " The Institute has always had a long-standing relationship with CPA Australia and it�s great to be able to strengthen our ties with a tangible offering to members. It is in line with the Institute�s objective to achieve international recognition for CPA Singapore. An important part of this arrangement is strengthening the ability of ICPAS and CPA Australia to cooperate with each other in developing a network of support and strategic collaborations, thereby enhancing the professional standards of both the accounting bodies."

�CPA Australia is very proud to continue to be in alliance with ICPAS � the national accountancy body which plays an important role in developing, supporting, and enhancing the integrity, status and interests of the profession in Singapore. This accords with CPA Australia's vision to be the global professional accountancy designation for strategic business leaders focusing on growing the accounting profession and attracting high-achieving members.� said Low Weng Keong, Deputy President and Deputy Chair, Board of Directors, CPA Australia.

�We strongly believe accountants who hold the ICPAS and CPA Australia designations are well equipped with skills to meet the economic challenges ahead in the ongoing development of established and emerging economies.� Mr Low said.

Through this mutual recognition arrangement, ICPAS and CPA Australia agree to have reciprocal admission of appropriately qualified members and hence, allow members of both bodies to obtain professional qualifications in Singapore and Australia.

For more information, go to www.icpas.org.sg/general/mra.asp.

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Transitional Arrangements

Transitional arrangements for this MRA expire on 31 December 2009.

Any member of CPA Australia or ICPAS in the status of CPA or FCPA, who has 10 years of consecutive membership is eligible for reciprocal membership in the same status eg a CPA (Aust.) is eligible for CPA Singapore (Non-practising) membership.

Impact on ICPAS members

CPA Australia will admit as a CPA (Aust.) any Member of Good Standing of ICPAS who:
(a) is the holder of either:
(i) an AEI-NOOSR recognised degree; or
(ii) an ICPAS recognised degree,
which fulfils CPA Australia�s core competency requirements; and
(b) who has successfully completed:
(i) the ICPAS Professional Examination;
(ii) ICPAS� practical work experience requirements; and
(iii) any other standard entry requirements for admission to membership of ICPAS.

CPA Australia will admit as an Associate any Member of Good Standing of ICPAS.

Members of ICPAS will be exempted from the Practical Experience Requirement by CPA Australia and will be individually assessed to determine whether they receive any exemptions from the Professional Level of the CPA Program based on their prior qualifications.

CPA Australia is not obliged to admit as its member any Member of ICPAS who:

(a) is a Member of ICPAS by virtue of an MRA or any other mutual recognition arrangement with another professional body;
(b) is the subject of a current investigation into his or her professional conduct; or
(c) has been subject to any disciplinary sanctions within the five (5) years prior to his or her application.

CPA Australia will assess the membership application of any member of ICPAS on a case-by-case basis.

Impact on CPA Australia members

ICPAS will admit as a CPA Singapore (Non-practising) any Member of Good Standing of CPA Australia who has successfully completed:

(a) the CPA Program;
(b) the Practical Experience Requirement;
(c) any other standard entry requirements for admission to membership of CPA Australia;
(d) the ICPAS Pre-admission Course; and
(e) the requirement for proficiency in Singapore laws, as prescribed by ICPAS.

ICPAS is not obliged to admit as its member any member of CPA Australia who:

(a) is a member of CPA Australia by virtue of an MRA or any other mutual recognition arrangement with another professional body;
(b) is the subject of a current investigation into his or her professional conduct; or
(c) has been subject to any disciplinary sanctions within the five (5) years prior to his or her application.

ICPAS will assess the membership application of any member of CPA Australia on a case-by-case basis.

AFA adopts Operational Plan for 2009 Last Update - 29/01/2009

At the 96th Council Meeting held on 16 to 17 January, the ASEAN Federation of Accountants (AFA) Council agreed in principle to the AFA Operational Plan for 2009, which sketches out the connections between AFA activities in 2009 with AFA�s mission, vision and three strategic objectives:

- Strengthening AFA institutional capabilities, through project coordination and monitoring and enhancing AFA internal and external communication channel,
- Supporting the capacity building of member institutions by being the platform for cooperation among member institutions in sharing best practices and resources, and
- Championing specific issues which would promote the standing of the accountancy profession within the ASEAN region

The AFA Council also gave consent to the following projects to be carried out this year:

- setting up of an AFA Task Force to be led by the Federation of Accounting Profession of Thailand; to formulate a set of Standards for Small and Medium Enterprises (SMEs) which can be voluntarily applied by ASEAN countries,
- efforts to enhance awareness and application of International Public Sector Accounting Standards (IPSAS) in the ASEAN region to be spearheaded by the Indonesian Intitute of Accountants and CPA Australia.
- the setting up a Regional Task Force on Accounting Standards to study and give comments to International Accounting Standards Board (IASB)�s exposure drafts, standards and interpretation,
- developing research criteria for AFA sponsorship consideration, and
- compilation of Mutual Recognition Arrangements concluded in the ASEAN region

CFO Forum – Business Intelligence: A Useful Tool for these Challenging Times Last Update - 29/06/2009

On 25 June 2009, ICPAS and Microsoft jointly organised a CFO Forum on Business Intelligence: A Useful Tool For These Challenging Times.

In his opening address, ICPAS President Ernest Kan highlighted the role of the Chief Financial Officer in these challenging economic conditions. He said that the modern day CFO is a top multi-tasker wearing many hats, dealing with diverse and complex issues, championing best practices and providing the CEO and Board with important quantitative and qualitative business insights.

Microsoft Singapore Managing Director Jessica Tan offered her perspective on the role of a CFO in such challenging times in her keynote address. She touched on the dynamic economic environment, ecosystem of customers and partners, pressure and opportunities for the CEO and CFO.

Micro-Mechanics Holdings Ltd CFO
Chow Kam Wing illustrated how the modern CFO�s role had changed in view of the current global economic crisis. He also expanded on the various key roles of the CFO.

Mr Danny Chua who is the finance director of Microsoft Singapore, shared with participants the various operations and roles of a day in the life of a Microsoft CFO. He also shared the use of technology as a driver of innovation and business agility.

A panel discussion comprising the various speakers was moderated Mr Soh Gim Teik, chairman of ICPAS CFO Committee. The discussion shared views and experiences, including the importance of access to timely financial and operational information and getting the buy-in from top management to leverage more extensively and efficiently on IT.

S$1.5million to Encourage Accounting Professionals to Train During Downturn Last Update - 07/07/2009

Institute of Certified Public Accountants of Singapore (ICPAS) is giving back as much as S$1.5million to its members through its Continuous Professional Education (CPE) Training Assistance Package. ICPAS hopes that this will help meet members� training needs in this economic downturn.

The scheme aims to help individuals as well as our small medium practices to manage their training costs and encourage them to send their Certified Public Accountants (CPAs) for training during this downturn. With the funding support, they can save on manpower costs and at the same time build stronger capabilities for the future.

�The importance of skills and training in economically tough times is not something that is only of interest to us in Singapore. Internationally, it is a recurring theme as other Governments announce packages to address rising unemployment and stimulate the economy. ICPAS places a lot of emphasis on CPE notwithstanding the stage of the economy. We hope the Training Assistance Package acts as incentives for the accountants to keep learning and keep themselves up-to-date, when the temptation in tough times is to reduce that investment,� commented ICPAS President Dr Ernest Kan.

Under this Training Assistance Package, which is a funding support scheme, ICPAS members will receive CPE training credits worth 50% of their membership fees, valid in the year 2009. For every dollar spent on CPE training, members will enjoy a dollar rebate, up to a maximum of 50% of their membership fees. The redeemed credits cannot pay more than 50% of any course fee.

What�s more, core programmes such as Technical Discussion Groups and some practice-related courses will be conducted on a cost recovery basis. Further, ICPAS has also frozen its CPE training fees for 2009. Put together, these should significantly reduce the cost of continuing professional education for its 21,000-strong members.

�It is critical to maintain the emphasis on training and CPE during the economic downturn in order to meet the nation�s skills needs once the economy recovers. This package will in some way, help to achieve this,� added Dr Kan.

With effect from 9 July, ICPAS members can login to the CPE online system to utilise the credits when they make payment for the CPE seminars, which they have enrolled for. For more information, please call the Continuing Professional Education Department at 6532 5312 ext. 300.

User Guide on How To Use CPE Credits

ICPAS Partners Robert Half to Launch the Global Salary Guide 2009/2010 Last Update - 24/06/2009

ICPAS has partnered with Robert Half International to launch the 2009/2010 Global Financial Salary Guide.

According to the Global Financial Salary Guide 2009/2010 and inaugural Asia Pacific Banking & Financial Services Salary Guide 2009/2010, salary levels of finance and accounting professionals are holding steady in 2009 and 2010 while demand for banking and finance talent remain strong in Asia Pacific despite ongoing economic challenges, Launched by Robert Half International (�Robert Half�), these salary guides offer interesting insights into the hiring environment and average salaries for finance professionals globally and in Singapore.

The Global Financial Salary Guide 2009/2010 provides data on starting salaries for finance and accounting professionals. Currently in its third year of publication, this guide is launched by Robert Half in partnership with the Institute of Certified Public Accountants of Singapore (�ICPAS�) for the second year running. According to the guide, average salaries for finance and accounting professionals in 2009/2010 remain comparable to that in 2008/2009, in spite of harsher economic conditions. This underscores the heightened importance of finance and accounting roles today, triggered by a renewed emphasis on financial management and cost control in light of the collapse of major financial systems, which led to the global economic meltdown over the past year.

In Singapore, certain accounting positions are seeing slight increases in salary levels, including the roles of Chief Accountant, Internal Auditor and Assistant Accountant with three to five years of industry experience. Increasingly stringent financial regulatory and compliance standards have given rise to the need for more rigorous audit and accounting practices. The trend towards standardised accounting and reporting systems has also led to a higher demand for audit and accounting professionals.

Said Dr Ernest Kan, President of Institute of Certified Public Accountants of Singapore (ICPAS), �We are happy to partner Robert Half again on the global salary guide, which serves as a fundamental guide for the recruitment of accountants in the current economy. With calls for greater accountability and transparency in financial reporting from authorities and stakeholders alike, companies are requiring more competent candidates to effectively manage their finances and business risks as well as optimise costs and processes. The guide serves to underscore the fact that demand for audit and accounting expertise, typically from qualified accountants like CPAs Singapore, is now greater than ever.�

Agreed Mr Tim Hird, Managing Director of Robert Half Singapore, �While it is interesting to note that salary levels of finance professionals are bucking the economic trend, this is in fact a simple function of market demand and supply. As organisations continue to grapple with the challenges of the downturn, the increasing need for highly skilled finance and accounting professionals have lent stability to salary levels for these roles. However, while demand for these talent remains strong, many employees are hesitant to leave their jobs in this current market, preferring to take a risk-averse approach to their job searches. This has created a distinct supply gap, even in these difficult times.�

These views resonate with the data from the inaugural Asia Pacific Banking & Financial Services Salary Guide 2009/2010, which provides insights into the recruitment competitive landscape and job prospects for banking and financial services professionals in the region.

In Asia Pacific, employers continue to be cautious about recruitment decisions. With decreased access to credit, businesses are focusing more on cost reduction and short term hiring measures. Project-based and temporary roles are gaining popularity as companies seek to ensure completion of work on lower budgets and without significant additions to permanent headcount. Contract staffing is particularly preferred for the flexibility it provides. The impact of hire and departure on staff morale is also lower compared to permanent job losses when the time comes for temporary staff to leave the company.

In Singapore, the key hiring trend is that of steady optimism. Financial services institutions are still hiring, albeit at slower rates than prior to the global economic downturn. Companies remain cautiously optimistic of their prospects, with a desire to gain a competitive advantage during these tougher times. In particular, small-medium enterprises are focused on growing by expanding their front office teams, accessing a pool of top finance talent previously inaccessible but now made available to them due to redundancies and prolonged hiring freezes at larger banks.

Back office functions are also in demand as larger multinational companies move their operations to Singapore from higher cost regions. With more bank mergers, opportunities for project-based integration work across finance, operations, risk and technology functions are on the rise.

Similar trends are present elsewhere in the region. In Australia, companies are seeing a talent shortage in finance and accounting due to lower hiring confidence levels and employees� reluctance to change jobs. Hiring and job hunting in Hong Kong have also become more selective, even as firms become more upbeat about growth amid the downturn. The situation in Japan is slightly different: while layoffs in Japanese firms have remained low due to Japan�s corporate culture, there is greater emphasis on bottom-lines and employees are now more accountable for their contributions to corporate growth.

Companies typically go through four key employment stages when coping with a recession, observed Mr Hird. Firstly, non-critical contracting employees are released. Secondly, headcount for permanent and fulltime roles is frozen, followed by a reduction in existing headcount. Finally, contract workers are rehired when the economy recovers and business stabilises. This reflects the tremendous potential of temporary and contract positions as viable options for candidates in a tighter job market. For businesses, contract staffing brings about potential cost savings, new skills and abilities, greater flexibility in the workforce, and acts as a manpower supplement during peak periods.

Added Mr Hird, �As the both Salary Guides reveal, finance professionals with specialised skill-sets remain well sought-after by businesses, with particular hiring interests in the areas of internal audit, operational risk, credit risk, compliance and financial governance, and mainstream financial and management accounting.�

�We are heartened that employers recognise the necessity to retain their best talents, who will be instrumental in taking businesses to the next phase when the market turns. This also reflects that highly qualified talents with relevant skills will always be in demand, regardless of the economic and job market conditions. At the same time, it would serve finance and accounting job candidates well to fully utilise available market knowledge and resources, such as Robert Half�s salary guides, to remain updated about their options and make well-informed choices to thrive in the market�, Mr Hird concluded.

The third Robert Half Global Financial Salary Guide 2009/2010 provides comprehensive research data on average starting salaries for 16 key accounting and finance positions across 21 countries, spanning Singapore, Australia, Austria, Belgium, Brazil, Canada, Czech Republic, France, Germany, Hong Kong, Italy, Ireland, Japan, Luxembourg, Netherlands, New Zealand, Spain, Switzerland, United Arab Emirates (Dubai), United Kingdom and the United States. This annual guide aims to help both companies and employees make better employment and hiring strategies through a comparative salary guide across these countries in the country�s corresponding currency value. The information provided is based on extensive research from global job placements by Robert Half, ongoing surveys of senior executives, and the accumulated expertise of Robert Half�s staffing professionals worldwide.

The Asia Pacific Banking & Financial Services Salary Guide 2009/2010 is Robert Half�s first salary guide focused on the banking and financial services sector in Australia, Hong Kong, Japan and Singapore, providing comprehensive research data on average salary ranges for 28 key financial services positions. This annual guide analyses the issues affecting employees in light of the recent global financial crisis, and the impact on recruitment trends within the financial services sector.

Asia Pacific Banking & Financial Services Salary Guide 2009/2010

Global Salary Guide 2009/2010

ICPAS goes all out to support Singapore secondary schools Last Update - 14/05/2009

As the national accountancy body, ICPAS believes in fostering, nurturing and inculcating the values of accountancy in Singapore's youths. In support of this belief, the Institute has embarked on a progressive drive to champion the following:

1. Provision of aid and value-add to local secondary schools who presently offer or do not offer the curriculum subject Principle of Accounts (POA) through:

- the establishment of an island-wide mass POA tutoring programme for needy students, where student volunteers from local universities will be engaged as volunteer tutors to render remedial lessons.

- the engagement of CPAs Singapore for possible relief teaching stints to assist in addressing the shortage of POA subject teachers, as based on feedback from heads of various secondary schools.

2. Organisation of industry visits for local secondary school students to established accounting firms as fortifying means to promote the field of accountancy to secondary schools, and reinforce the accountancy foundation through the comprehension of the daily operations of these firms.

3. Conducting of accountancy career talks to local secondary schools to present students with insights into the profession, cultivate their interest at a young age, and offer them broader perspectives where opportunities within the industry are concerned.

New faces at the helm Last Update - 22/04/2009

ICPAS welcomes the new Office Bearers to head its Council, following the retirement of Mr. Tan Boen Eng, who stepped down as President at the Annual General Meeting last Saturday, 18 April.

The new Office Bearers are:

President
Dr Ernest Kan

Vice-President
Mr Gerard Ee

Treasurer
Mr Khoo Ho Tong

The ICPAS Council 2009/2010

President: Ernest Kan

Vice-President: Gerard Ee

Treasurer: Khoo Ho Tong

Council Members:
Don Ho
Kon Yin Tong
Lee Chee Wung
Lim Boon Cheng
Loh Hoon Sun
Pang Yang Hoong
Steven Phan
Quek Shi Kui
Sitoh Yih Pin
Tan Boen Eng
Danny Teoh
Wong Lai Yong
Tom Yee
Gillian Yeo
Yeoh Oon Jin
Yim Kam May

Forum on Small and Medium Practices Last Update - 15/04/2009

The main objective of the forum on Small and Medium Practices held on 7 April was to highlight the many IFAC initiatives on SMEs and SMPs that might benefit SMPs in Singapore. Dr Ernest Kan, ICPAS Vice President identified the challenges SMPs were currently facing on the Forum on Small and Medium Practices. Practitioners were encouraged to be nimble and creative in such difficult times and to find business opportunities amidst the current economic downturn.

Mr Paul Thompson, Senior Technical Manager, Small and Medium Practices (SMP) Committee, International Federation of Accountants (IFAC), the invited speaker for the event gave an overview of IFAC and the IFAC�s SMP Committee. He called on practitioners to constantly provide feedback to IFAC�s SMP Committee, which was set up to identify and represent the needs of the constituents and where applicable, to give consideration to relevant issues pertaining to SMEs/SMPs.

Audit Committee members should be formally trained in Accounting and Finance Last Update - 03/03/2009

In the light of the increasing sophistication of financial transactions and the growing complexities of the globalised marketplace, more members of the Audit Committees (ACs) of listed companies in Singapore should possess formal accounting and financial qualifications and experience, according to a study on the Profile of Audit Committees of Listed Companies in Singapore 2009, commissioned by the Corporate Governance Committee of the Institute of Certified Public Accountants of Singapore (ICPAS). (Download full report below)

Looking at the educational background of AC members, only fourteen per cent of the members of ACs are formally trained in accountancy and finance. If an education in Business Administration is included, this percentage rises to 37 per cent. From the experience perspective, 26 per cent of the members of ACs have accountancy and finance as their major full-time experiences. If experience as senior management is included, this percentage goes up to 76 percent. Further, only 46 per cent of the companies have two or more financially-trained members in the AC.

Given the depth of one's business and industry knowledge and experience, the Institute acknowledges that directors who are not formally accounting and finance-trained might possibly be as qualified as those who are formally accounting and finance-trained. However, as a strong advocate of best corporate governance practices, the Institute firmly believes that possessing a formal qualification in accounting and finance should be considered as a pre-requisite for at least one member of AC in a listed company.

The survey finds that the Companies Act and the Code of Corporate Governance (CG Code) have been effective in bringing forth structural changes to the composition of ACs of listed companies in Singapore. Most companies complied with the corporate governance guidelines. The regulators have also proactively taken steps to provide additional practical guidance for audit committees as demonstrated by the issuance of a Guidebook for Audit Committees in Singapore by the Audit Committee Guidance Committee (ACGC) in October 2008. The Guidebook was developed with extensive industry input, sought through dialogue sessions, focus groups and a survey of audit committee members. The ACGC had placed emphasis on addressing key areas of concern identified during its consultations so as to provide practical guidance. These areas of concern include risk management, fraud, internal controls and the composition of the audit committee. The best practices are also targeted at audit committee members from various types of companies and all levels of experience.

According to the findings, ACs met more than three times a year on average. The median number of members in the AC is three, which is the minimum suggested membership size by the CG Code. In fact, only five companies (one per cent of the sample) have ACs with less than three members. There are no significant differences between firms of different market capitalisation and those listed on the Catalist in terms of size of the AC.

The survey also finds that on average, nineteen per cent of the members of ACs have been with the company for one year or less. In addition, more than fifty per cent of the members of ACs are associated with the companies for five years or less. It is encouraging to note that most of the recent members of ACs are financially-trained. This suggests that the CG Code is having its impact on the companies� choice of recent AC appointees.

"While the companies are making headway in fortifying their audit committees, there are still areas that need to be remedied especially in the ongoing training and orientation of audit committee members. To stay in line with best practice and to keep up to date with developments particularly in the compliance, regulatory and accounting arenas, it is critically important that audit committee members have adequate training with respect to financial reporting standards and in general finance matters," commented Dr Ernest Kan, Vice-President of ICPAS and Chairman of its Corporate Governance Committee.

ICPAS Survey on Profile of Audit Committee

Accountants expect economy to get worse Last Update - 16/02/2009

The profession cites sales growth, collections and high costs as top concerns for business during this economic downturn

According to the latest CPA Singapore Business Confidence Index, accounting professionals are not confident about the economic outlook. 95 per cent of the respondents rated the current Singapore economic conditions as less favourable now compared to six months ago. 86 per cent of them also expect the economy to worsen. Given that opinion, it is not surprising that 75 per cent of them expect their business situation to worsen in the next six months as expressed in their responses. (Download white paper below)

A high 44 per cent indicated that sales growth is the topmost concern of businesses, according to the survey that was conducted between 2 to 15 January 2009 amongst members of Institute of Certified Public Accountants of Singapore (ICPAS). Accountants are also worried about collections, which is the second top concern of businesses as voted by thirty per cent of those who participated in the survey, suggesting that they are affected by uncollected receivables. The survey also revealed that businesses also grapple with high costs during the economic downturn, which is third in ranking for top business concerns as voted by 28 per cent of the respondents. Attracting talent and staff retention seem to be the least worries of businesses for now.

Accountants� economic expectations, though gloomy, do not appear to be holding back on investment during this crisis. More than half of the respondents (58 per cent) shared that their companies will be increasing or maintaining their level of investment. A slightly smaller percentage (42 per cent) indicated that they are looking at reducing investment.

Healthcare as well as Information & Communications are two sectors enjoying a brighter outlook, as voted by ninety per cent and seventy per cent of the respondents respectively. Conversely, Manufacturing, Wholesale & Retail Trade, Hotels & Restaurants as well as Financial Services are expected to be the worst hit during this difficult time.

Only a quarter of the respondents expect their workforce to be reduced while seventy per cent of them indicted that they are looking at maintaining their workforce. Some, at least, can expect an increase in head count but this is only a small percentage (six per cent).

Commenting on the results, Dr Ernest Kan, ICPAS Vice-President said, �Maintaining investment and sustaining the current level of workforce suggest that companies are hanging on and fighting the economic turmoil. Although battered, they remain resilient. This is a positive sign. Coupled with the Government�s well thought-out and calibrated approaches to counter the financial crisis, we are well poised to ride out this storm.�

He was speaking at the inaugural CPA Singapore Powwow on 16 February, where the Index results were announced. The breakfast event brought together industry leaders � Ms Penny Low, Member of Parliament for Pasir Ris-Punggol GRC, Dr Ernest Kan, Vice-President of ICPAS, Mr Aw Soon Beng, Chief Executive Officer of Westcomb Financial Group and Mr Tim Hird, Director of Robert Half International Pte Ltd � who discussed on the Business Confidence, Concerns and Control in Volatile Times.

CPA Singapore Business Confidence Survey

ICPAS Partners Robert Half in Global Financial Salary Guide Last Update - 14/01/2009

ICPAS has partnered with Robert Half International in the Singapore edition of the Global Financial Salary Guide 2008/2009.

The guide provides comprehensive data on average starting salaries for accounting and finance professionals in 18 countries: Australia, Belgium, Canada, Czech Republic, France, Germany, Hong Kong, Italy, Ireland, Japan, Luxembourg, New Zealand, Singapore, Spain, Switzerland, the Netherlands, United Kingdom and the United States.

ICPAS is pleased to partner Robert Half International in the Salary Guide, which serves as a useful guide for employers and employees on the employment conditions, business confidence levels and recruitment trends.

Download the salary guide

ICPAS ushered in the new year with much heart Last Update - 08/01/2009

Over 200 children, senior citizens and adults with disabilities from eight charitable organisations were invited to a sumptuous lunch at NUSS Kent Ridge Guild House on 4 January. Held in conjunction with the Chinese New Year celebrations, the beneficiaries were treated to an exciting magic show, classical Teochew opera and a grooving musical performance by a �live� band.

Beneficiaries were from:
Tai Pei Old People's Home
Ju Eng Home For Senior Citizens
Chen Su Lan Methodist Children's Home
Geylang East Home for the Aged
Blue Cross Thong Kheng Home
Christalite Methodist Home

ICPAS President honoured by ACCA Last Update - 13/01/2009

Mr Tan Boen Eng, President of Institute of Certified Public Accountants Singapore (ICPAS), was presented with the ACCA Achievement Award for Asia at a ceremony in London in November 2008. Mr Tan was given the Award in recognition of his countless contributions and dedication to the accounting profession in the past 30 years.

Mr Tan�s support to ACCA has been invaluable, as he has actively promoted the ACCA-ICPAS Joint Examination Scheme (JES) since 1983. The JES has prepared and trained thousands of students for rewarding careers. To further fortify the bond between ACCA and ICPAS, Mr Tan was instrumental in the signing of the Mutual Recognition Agreement (MRA) between the two bodies in 2005, another significant step towards international recognition of CPA Singapore.

ICPAS unveils a new eNewsletter, CPA Singapore Wire, in the new year! Last Update - 06/01/2009

Not only is this revamped weekly eNewsletter brimful of the latest News and Events from the Institute and the accounting and finance arena, it now carries a Feature on topical issues. An Online Poll has been added to gauge popular sentiment and track market trends on pertinent business issues. Members who have been seeking Career and E-Learning opportunities through the old ePublication may continue to do so as the Institute positions itself as the gateway to personal development and upgrading.

With a dynamic and user-friendly layout to reach out to an even wider audience, it incorporates exciting Member Activities and Privileges, making it a truly comprehensive and engaging read.

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Choosing between the above-the-fold leaderboard and skyscraper on the right-hand side, you will be speaking directly to over 16,000 ICPAS members and/or CPAs Singapore, allowing your company to gain much visibility and response from these key decision makers in the accounting and finance industry.

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