ICPAS and Accounts 2005/2006 - ISCA€¦ · and Accounts 2005/2006 FORGING TOWARDS SUCCESS SCALING...
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ICPAS Annual Report and Accounts 2005/2006 FORGING TOWARDS SUCCESS SCALING GREATER HEIGHTS CREATING MAXIMIUM IMPACT
Transcript of ICPAS and Accounts 2005/2006 - ISCA€¦ · and Accounts 2005/2006 FORGING TOWARDS SUCCESS SCALING...
ICPAS Annual Report
and Accounts 2005/2006
FORGINGTOWARDSSUCCESS
SCALINGGREATERHEIGHTS
CREATINGMAXIMIUMIMPACT
The emblem consists of a book, a shield and two supporting lions over an escroll bearing the motto of the Institute.
The book symbolises guidance and the constant search for knowledge.
The shield symbolises the Institute as a corporate body with a well-established and solid foundation of accuracy and care. It has three main features:
(a) The scales or daching to reflect the long history of Singapore as a commercial centre;
(b) An interlocking element to denote networking and the significant involvement of the Institute’s members with computers; and
(c) Various currencies to represent the units of measure with which the accountancy profession is associated.
The supporting lions indicate the Institute’s country of origin: the Lion City, Singapura.
emblem of the institute of certified public accountantsof singapore
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inotice ofannual general meeting
Notice is hereby given that in accordance with Article 67 of the Constitution of the Institute, the Annual General Meeting 2005/2006 of the Institute of Certified Public Accountants of Singapore will be held on Saturday, 22 April 2006 at 2.00 pm, at Meritus Mandarin Singapore, Mandarin Ballroom (6th Floor, South Tower), 333 Orchard Road, Singapore 238867.
AGENDA
1. President’s address.
2. To confirm the minutes of the Annual General Meeting 2004/2005 of members held on 23 April 2005.
3. To receive the Report of the Council for the year 2005/2006 and Accounts of the Institute for the year ended 31 December 2005.
4. To elect eight members to the Council as follows:
(a) Practising Members – four to hold office for a term of two years;
(b) Non-practising Members – four to hold office for a term of two years.
The following members of the Council retire in accordance with the provisions of Articles 38 to 40 of the Constitution:
Practising Members Non-practising Members
Kan Yaw Kiong, Ernest Chan Yoke Kai Khoo Ho Tong Loh Hoon Sun Seow Teow Han, John Tang Kok Kwai Yeoh Oon Jin Wong Lai Yong
Nominations have been received for the following:
Practising Members Nominated by Kan Yaw Kiong, Ernest Fang Ai Lian Khoo Ho Tong Ho Mun-Tuke, Don Seow Teow Han, John Kon Yin Tong Yeoh Oon Jin Lee Chee Wung Sitoh Yih Pin
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Non-practising Members Nominated byChan Yoke Kai Choo Teck MinLoh Hoon Sun Tan Boen EngPang Yang Hoong Tan Yan Keow, ClaraWong Lai Yong Yee Lat Shing Yim Kam May
By order of the Council
Janet TanSecretary28 March 2006
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INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS OF SINGAPORE20 Aljunied Road, #06-02 CPA House,
Singapore 389805Tel: (65) 6749 8060Fax: (65) 6749 8061
ANNUAL GENERAL MEETING LUNCH
Lunch will be served at 12.45 pm, followed by the Annual General Meeting at 2.00 pm. To assist the Secretariat in the lunch arrangements, please return this reply form to the Institute by 13 April 2006.
I will be attending the AGM lunch on Saturday, 22 April 2006, at 12.45 pm, at Meritus Mandarin Singapore, 333 Orchard Road, Singapore 238867.
Member’s Name (in block): I/C Number:
Membership Category: *Honorary / Fellow / Practising / Non-practising / Provisional / Member-in-retirement
Company:
Telephone Number: *(Office)/(Home) E-mail address:
Date:
Please tick if *Vegetarian / Muslim menu is required
Note: The lunch menu will be ‘no pork, no lard’.
*Please delete where inapplicable.
annual general meeting lunch reply form
NB: To avoid unnecessary costs to the Institute, please inform the Secretariat at least 3 days before the function if you have registered but subsequently are unable to attend the AGM lunch.
Signature
INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS OF SINGAPORE
20 Aljunied Road, #06-02 CPA House,
Singapore 389805
STAMP
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contents Notice of Annual General Meeting
Annual General Meeting Lunch Reply Form
ICPAS Mission and Objectives
About ICPAS
Corporate Information
President’s Message
Minutes of the Annual General Meeting 2004/2005
Report of the Council
The CPA Singapore Brand
Membership Services
Membership Profile
Community Responsibility
Highlights of 2005
Committees Review
Technical Pronouncements – 31 December 2005
Overview of Consolidated Financial Results
Auditors’ Report to Members of the Institute of Certified Public Accountants of Singapore
Balance Sheets as at 31 December 2005
Consolidated Income and Expenditure Statement for the Year Ended 31 December 2005
Consolidated Statement of Changes in Accumulated Fund and Miscellaneous Fund for the Year Ended 31 December 2005
Consolidated Cash Flow Statement for the Year Ended 31 December 2005
Notes to the Financial Statements — 31 December 2005
Statistical Highlights of the Years 2000 to 2005
Form of Proxy
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FORGING
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missionThe mission of the Institute of Certified Public Accountants of Singapore (ICPAS) is “to develop, support and enhance the integrity, status and interests of the accountancy profession in Singapore”.
objectivesICPAS seeks to achieve its mission by maintaining high standards of technical competence among its members; upholding the integrity and independence of the accountancy profession; enhancing the professional image and voice of the accountancy fraternity; contributing meaningfully to society through an active involvement in community service; and maintaining high standards of professionalism and productivity within the Institute’s organisation and management to better serve the needs of its members.
ICPAS mission and objectives
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The Institute of Certified Public Accountants of Singapore (ICPAS) is the national organisation of the accountancy profession in Singapore. It was established in June 1963 as the Singapore Society of Accountants (SSA) under the Singapore Society of Accountants Ordinance, 1963, then reconstituted and renamed ICPAS on 11 February 1989 under the Accountants Act 1987. As of 1 April 2004, ICPAS has been reconstituted as a society under the Societies Act.
Besides administering the Institute’s membership, ICPAS caters for the training and professional development of its members through regular courses conducted by its training arm, the Singapore Accountancy Academy (SAA). Courses offered by the Academy include internationally recognised accounting courses under its Joint Scheme of Examination agreements with The Association of Chartered Certified Accountants (ACCA) leading to the professional ACCA qualification, and the
about ICPAS
ACCA Certified Accounting Technician qualification, as well as the Diploma in Professional Accounting with a pathway to articulate into the Bachelor of Commerce (Accounting) programme in the University of Queensland, Australia.
ICPAS’ network of members spans the globe and its international outlook and connections are reflected in its membership of regional and international accountancy organisations like the ASEAN Federation of Accountants (AFA), the Asia-Oceania Tax Consultants’ Association (AOTCA) and the International Federation of Accountants (IFAC).
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5organisation chart
Executive Director
Directorate
Finance & Admin
ICPAS Council
Membership
Practice Monitoring
Singapore AccountancyAcademy
Technical
Continuing Professional Education
Courses
Logistics / F&AExamination & Student Registry
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corporate information
Front Row (from left to right)
Yeoh Oon JinKhoo Ho TongFang Ai LianErnest Kan Yaw Kiong (Vice-President)Tan Boen Eng (President)John Seow Teow Han (Treasurer)Gillian Yeo Hian HengLoh Hoon SunDanny Teoh Leong Kay
Back Row (from left to right)
Wong Lai YongTom Yee Lat ShingQuek Shi KuiLee Chee WungDon Ho Mun-TukeChan Yoke KaiTang Kok KwaiJanet Tan (Executive Director)
Absent
Kon Yin TongSitoh Yih PinYim Kam May
The ICPAS Council 2005/2006
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7 The Council
Tan Boen Eng – President Kan Yaw Kiong, Ernest – Vice President Seow Teow Han, John – Treasurer
Elected to Represent Elected to Represent Practising Members Non-practising Members
Fang Ai Lian Chan Yoke Kai Ho Mun-Tuke, Don Loh Hoon Sun Kan Yaw Kiong, Ernest Quek Shi Kui Khoo Ho Tong Tan Boen Eng Kon Yin Tong Tang Kok Kwai Seow Teow Han, John Wong Lai Yong Sitoh Yih Pin Yee Lat Shing, Tom Yeoh Oon Jin Yim Kam May
Appointed under Article 27 of the ICPAS Constitution
Yeo Hian Heng, Gillian (appointed on 18.09.2004)
Co-opted under Article 28 of the ICPAS Constitution
Lee Chee Wung (appointed on 1.1.2006) Teoh Leong Kay, Danny (appointed 18.09.2004)
Secretary / Executive Director
Janet Tan
Auditors
Ewe, Loke & Partners Certified Public Accountants 8 Robinson Road, #08-00 ASO Building Singapore 048544
Registered and Administrative Office
20 Aljunied Road, #06-02 CPA House, Singapore 389805 Telephone: (65) 6749 8060 Facsimile: (65) 6749 8061 Email: [email protected] Website: www.icpas.org.sg
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president’s message
Dear members,
2005 was a year of many firsts for ICPAS!
The Institute produced its first television commercial (TVC), which was telecast during the “The Agenda – Corporate Culture”, a five-episode program jointly sponsored by ICPAS and CPA Australia on Channel NewsAsia. It was the first time in history that we have co-sponsored a television program.
The CPA Forum 2005, which culminated from the TV program, was a great success, with many eminent speakers sharing their experiences and knowledge on corporate governance and expansion of businesses in a shrinking business world.
The Institute signed its second Mutual Recognition Agreement in 2005. This time, the agreement was signed with The Association of Chartered Certified Accountants (ACCA), UK. Under this agreement, both ICPAS and ACCA will be able to share their resources and cooperate in future research, training and development of talent pool. Our members have benefited from becoming a member of an international body.
The Institute scored another first with the opening of the Singapore Accountancy Academy’s (SAA) City Campus at OUB Centre in December 2005. With the opening of the City Campus, members can now attend Continuing Professional Education (CPE) courses at a more convenient location.
Other milestones of the Academy in 2005 include being one of the first few Private Educational Organisations (PEOs) to achieve the CaseTrust accreditation and the achievement of the Singapore Quality Class (SQC) for PEOs.
Going forward, the Institute will continue to strive to increase its international and regional presence. To increase the mobility of our members and international recognition of ICPAS membership, the Institute will actively negotiate with overseas accountancy bodies to enter into a MRA with us.
Some initiatives you can expect in 2006 include a new and bolder advertising campaign to promote the CPA Singapore designation, a jointly sponsored TV program on Channel NewsAsia and the CPA Forum 2006.
In conclusion, I would like to thank our members for their continuing support in 2005. I would also like to thank the Council and committee members for their invaluable contributions to the Institute and the development of the accountancy profession in Singapore.
Tan Boen EngPresident
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9minutes of the annual general meeting 2004/2005
Date: Saturday, 23 April 2005Time: 2.00 pmVenue: Mandarin Ballroom 6th Floor, South Tower Meritus Mandarin Singapore 333 Orchard Road, Singapore 238867
Total number of members presentPractising Members: 73 Non-practising Members: 247Provisional Members: 31 351
Chairman and President: Mr Tan Boen EngSecretary: Ms Janet Tan
1.0 NOTICE OF MEETING
The notice of meeting, having been circulated to members before the meeting, was taken as read.
2.0 PRESIDENT’S ADDRESS
The Chairman began his address by welcoming all members present at the Institute’s Annual General Meeting 2004/2005. He said that in the past year, several events and developments had taken place. He added that the Annual Report and Accounts 2004/2005 provided details of the Institute’s activities over a nine-month period from 1 April 2004 to 31 December 2004.
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The Chairman proceeded to highlight the more significant developments of the Institute and briefed members on the Institute’s activities.
SIGNIFICANT DEVELOPMENTS AND ISSUES
Auditing and Assurance Standards
The Chairman reported that for the period 1 April 2004 to 31 December 2004, the Institute’s Council approved three revised or new sample auditor’s reports.
He added that as of 31 December 2004, the Committee was considering 18 issues in relation to proposed new or revised auditing standards and statements of auditing practice, some of which were either on exposure draft or awaiting approval from the Accounting and Corporate Regulatory Authority (ACRA).
Details on the list of approved new and revised sample auditor’s reports, approved auditing pronouncements and exposure drafts dealt with by the Committee can be found in its report on pages 35 and 36 of the ICPAS Annual Report and Accounts 2004/2005.
The Chairman said that the increasing number of share listings via initial public offerings (IPOs) prompted the Monetary Authority of Singapore and the Singapore Exchange to recommend that issue managers strengthen their due diligence work before guiding private companies for public listings. To help members who might be engaged as reporting auditors during the IPO listing process, the Institute issued an exposure draft on a new Statement of Auditing Practice (SAP), ED/SAP XX Comfort Letters and Other Assistance for Public Offerings of Equity Securities in Singapore.
The Chairman informed the meeting that the Institute organised a seminar in January 2005 entitled “Expectation of Work of Auditors”. The seminar covered topics on the role of different parties in financial reporting, the auditor’s responsibility to consider fraud in an audit of financial statements, the responsibility and work of auditors, and the Sarbanes-Oxley Act. It was useful and relevant in educating non-accountants, and in narrowing the “expectation gap” in audits.
Accounting Standards
The Chairman reported that the Institute continued to play a pivotal role in working with the Council on Corporate Disclosure and Governance (CCDG) in the due process of setting accounting standards, known as the Financial Reporting Standards, or FRSs, in Singapore. The FRSs are very much harmonised with and consistent with the International Financial Reporting Standards issued by the International Accounting Standards Board (IASB).
The meeting was informed that for the period 1 April 2004 to 31 December 2004, the Institute reviewed the proposals in the various exposure drafts issued by the IASB and the International Financial Reporting Interpretations Committee (IFRIC) and prepared comment letters taking into account comments received. The comment letters were forwarded to the CCDG for submission to the IASB as appropriate.
The Chairman added that the list of IASB exposure drafts that was considered by the CCDG with representations and recommendations from the Committee and the Institute’s representatives can
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11be found in the Committee’s report on pages 33 and 34 of the ICPAS Annual Report and Accounts 2004/2005.
The Chairman reported that in August 2004, the Institute organised a seminar to raise awareness among members of the IASB Discussion Paper entitled “Preliminary Views on Accounting Standards for SMEs” and to encourage active feedback from members so that views from the local context can be brought to the IASB’s attention. The ASC reviewed the proposals in the above IASB Discussion Paper and prepared a comment letter, taking into account comments received, for the CCDG to submit to the IASB as appropriate.
Other Technical Committees
The Chairman reported that the Banking & Finance, Insurance and the Taxation & Levies Committees continued to work closely with the relevant government agencies and much work has been done in the past year.
He said that the Financial Statements Review Committee continued with its task of providing constructive feedback to both the auditors and preparers of financial statements with the view to enhance the compliance of accounting standards.
The Chairman mentioned that the Corporate Governance Committee (CGC) continued with its initiatives in drawing on the experience of auditors, accountants, consultants, company directors and other experts with the objective of creating greater awareness of corporate governance issues as a means of promoting fairness, transparency and accounting in businesses. During the year, CGC also held a forum on “The Corporate Governance Code” and a seminar on “Financial Reporting - Risks, Roles and Responsibilities” jointly with the Corporate Governance & Financial Reporting Centre (CGFRC) of the National University of Singapore and the Singapore Institute of Directors (SID).
In October 2004, the Management Accounting Committee (MAC) organised a seminar to emphasise the importance of timely financial reporting, as well as to facilitate the sharing of experiences in this area. The MAC would continue to organise pertinent seminars for the benefit of members, especially those in management accounting.
The Chairman added that the Public Accounting Practice Committee (PAPC) started a new initiative called the technical discussion group in 2004. The technical discussion group is a forum for Practising Members of the Institute to exchange views on technical matters relating to accounting, audit, tax, and other relevant practice matters. The discussion group is self-funding and plans to meet regularly to exchange information and share professional experiences. Three technical discussion group sessions were held from May to September 2004.
Singapore Accountancy Academy (SAA)
The Chairman commented that the education industry is becoming more and more competitive. He reported that to attain a bigger share of the foreign market and to internationalise its brand name in China, the Academy participated in the China Education Expo 2004 in Beijing and Shanghai in October 2004. The Expo was one of the most important and authoritative education events in China. SAA would continue to participate in such prominent education fairs to increase its foreign student base.
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He added that to expand its local student base in Singapore, the Academy advertised more aggressively in 2004 to create greater awareness of SAA. SAA also embarked on a branding exercise and it has a new logo and slogan – “Quality Education. Lifetime Opportunities.” The Academy hoped that the increased advertising and promotion activities would help SAA increase its market share in Singapore.
The Chairman said that quality education ranks number one on SAA’s priority list. He reported that the Academy’s results for the June 2004 ICPAS/ACCA joint scheme examination were a testament of SAA’s quality. He said that the Academy would continue to improve its curriculum and training to bring out the best in every student.
The Chairman added that in 2004, SAA put in place a Student Protection Scheme as stipulated by the Consumers Association of Singapore (CASE) by way of the NTUC Income Student Tuition Fee Insurance. The period of insurance would cover the entire duration of the course enrolled by the insured student. The cost of the premium was borne by SAA.
The Chairman reported that in March 2005, SAA was one of the earliest private education organisations in Singapore to have successfully obtained the CaseTrust mark, which is a requirement for all private schools intending to recruit foreign students.
The meeting was informed that SAA turned 20 in 2005. The Academy aimed to increase its market share in Singapore by beefing up its marketing activities to position itself as the premier accountancy academy in Singapore.
Continuing Professional Education
The Chairman said that the Institute recognised the importance of Continuing Professional Education (CPE) in preserving and enhancing the standards of the accountancy profession and maintaining public confidence.
He reported that from 1 April 2004 to 31 December 2004, the Academy conducted a total of 101 CPE courses in areas such as accounting, banking and finance and tax.
“CPA Singapore” Branding
The Chairman reported that in 2004, the Institute appointed an advertising agency to create branding advertisements to create awareness of the “CPA Singapore” designation and to promote the value of ICPAS membership. He added that the Institute hoped that the branding advertisements would raise the profile of a “CPA Singapore” and increase the Institute’s membership base.
New Initiatives
With regard to new initiatives, the meeting was informed that in December 2004, the Institute conducted its first Membership Satisfaction Survey to solicit feedback from members about its services and products, various modes of communication and the CPE courses conducted by the Institute. The Chairman thanked the members who took the time to fill up and send the survey form to the Institute despite their busy schedule. He said that the data collated from the survey would help the Institute
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13evaluate how best it could further enhance the value of the ICPAS membership. He announced that the Membership Satisfaction Survey would be conducted on an annual basis. He encouraged members to provide their valuable feedback when they receive the forms at the end of year 2005.
The Chairman reported that for the first time, the Institute printed and distributed specially designed ICPAS calendars to members.
He added that the Institute also issued vouchers for CPE courses conducted by SAA to Practising and Non-practising Members. He said that this was the Institute’s way of showing its appreciation to members for their continuing support and to encourage them to constantly upgrade themselves.
Dialogue Session with Female MPs
The Chairman reported that on 6 January 2005, the Institute hosted a dialogue session between Mrs Lim Hwee Hua, Minister of State for Finance and Transport; Dr Amy Khor Lean Suan, Mayor of South West Community Development Council; Ms Indranee Thurai Rajah, Member of Parliament for Tanjong Pagar GRC and its female members. The topics discussed revolved around three themes, i.e. professional issues affecting the members, work-life balance or family issues and the status of accounting regulations in Singapore arising from the recent China Aviation Oil (CAO) scandal. The dialogue session was useful and the Institute hoped that it gave the government a better insight into the problems that female accountants faced.
Financial Performance of the Institute
On the Institute’s financial performance, the Chairman highlighted that during the period under review, the Institute achieved a total surplus after income tax of $1.4 million. He said that the Institute was going through a difficult time and was experiencing falling income due to intense competition in the education industry. He added that the Institute hoped that its members would continue to support the Institute and its activities during this trying period.
Retiring Council Member
The Chairman informed the meeting that one Council Member, Mr Eric Tan Hock Chye, retired from practice on 31 January 2005, and in accordance with Article 45 of the Constitution, a casual vacancy was created.
The Chairman said that Mr Tan has been a member of the Institute since 1966. He served on the Council since 1997 to 2005 and was the Treasurer from 1999 to 2001.
On behalf of all members and fellow Council Members, the Chairman thanked him for his valuable contribution to the Institute and wished him all the best in his future endeavours.
Going Forward
The Chairman commented that 2004 had been an eventful year with the introduction of the Sarbanes-Oxley Act, the introduction of the $5 million audit exemption and even more high profile corporate
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accounting scandals, such as Parmalat, AIG and Marsh & MacLennan. He added that Singapore also experienced its fair share of accounting scandals including China Aviation Oil, Informatics, Auston International and Accord Customer Care Solutions. He said that the issue of corporate governance has been thrown into the spotlight as a result of these corporate malfeasance and fraud.
The Chairman emphasised that inevitably, every accountant has an important role to play in sustaining a good code of ethics, complying with good corporate governance practices and preventing accounting fraud. He urged all members to uphold the integrity and image of the accountancy profession and to put to an end the avalanche of corporate scandals in order to rebuild the public’s confidence in the profession.
The Chairman announced that going forward, the Institute would continue in its mission of reviewing the Institute’s ethical standards to ensure that the needs of a changing world were reflected in the high ethical standards of the Institute and creating greater awareness of corporate governance issues as a means of promoting fairness, transparency and accounting in businesses.
Conclusion
The Chairman wished members all the best and thanked them for their support and contribution to the Institute over the years, especially those who have devoted much time and effort to the work of the Institute.
He thanked the members for taking the time to attend the Institute’s Annual General Meeting that afternoon.
3.0 CONFIRMATION OF THE MINUTES OF THE ANNUAL GENERAL MEETING 2003/2004
3.1 The minutes of the Annual General Meeting (AGM) 2003/2004 held on 18 September 2004, having been circulated to all members were taken as read.
3.2 On the proposal of Mr Tan Bee Hong and seconded by Dr A. Jothidas, the minutes of the AGM 2003/2004 were approved.
3.3 The Chairman then polled the members present on the confirmation of the minutes. From the poll results, the Chairman declared that the minutes had been confirmed.
4.0 ANNUAL REPORT AND ACCOUNTS 2004/2005
4.1 The Chairman referred the members to the Annual Report of the Council for the year 2004/2005 and the Accounts for the Institute for the period 1 April 2004 to 31 December 2004 and invited comments from the members present.
4.2 As no questions were raised, the Annual Report of the Institute for the year 2004/2005 and the Accounts of the Institute for the period 1 April 2004 to 31 December 2004 have been received by the meeting, upon proposal by Mr Wong Shee Ling and seconded by Dr A Jothidas, Ms Yim Kam May and Mr Yeoh Oon Jin.
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155.0 ELECTION OF COUNCIL MEMBERS
5.1 The Chairman informed the meeting that the following members of the Council had retired in accordance with the provisions of Articles 38 to 40 of the Constitution:
Practising Members Non-practising MembersFang Ai Lian Quek Shi KuiHo Mun-Tuke, Don Tan Boen EngKon Yin Tong Yee Lat ShingSitoh Yih Pin Yim Kam May
5.2 As only four nominations each had been received in respect of the Practising Members and Non- practising Members, the four Practising Members and four Non-practising Members were deemed to be duly elected members of the Council for a two-year term as from this Annual General Meeting in accordance with Article 23 of the ICPAS (General Meetings) Rules. They were:
Practising Members Non-practising Members Fang Ai Lian Quek Shi Kui Ho Mun-Tuke, Don Tan Boen Eng Kon Yin Tong Yee Lat Shing Sitoh Yih Pin Yim Kam May
6.0 TERMINATION OF MEETING
In conclusion, the Chairman cited Rule 6 of the ICPAS (General Meetings) Rules, which provided that no motion shall be discussed at any Annual General Meeting of the Institute unless the required notice of 14 days was given. As the Secretariat had not received any such notice, and as all items on the agenda had been dealt with, the meeting was formally declared closed at 2.40 pm.
Signed as correct record
Chairman
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The Council has pleasure in presenting its 2005/2006 Annual Report and Accounts of the Institute for the year ended 31 December 2005.
At the first Council meeting held on 23 April 2005, the following Council members were elected as office bearers:
President – Tan Boen EngVice President – Kan Yaw Kiong, ErnestTreasurer – Seow Teow Han, John
The Council
The 2005/2006 Council held ten ordinary meetings from 23 April 2005 to 28 February 2006. The number of Council meetings attended (A) and the number of committees on which each Council member served (B) are given below: A B A BChan Yoke Kai 7 1 Sitoh Yih Pin 4 4Fang Ai Lian 6 3 Tan Boen Eng 10 11Ho Mun-Tuke, Don 6 3 Tang Kok Kwai 9 2Kan Yaw Kiong, Ernest 8 10 Teoh Leong Kay, Danny 4 2Khoo Ho Tong 8 7 Wong Lai Yong 10 5Kon Yin Tong 6 7 Yee Lat Shing, Tom 9 4Lee Chee Wung 8 5 Yeo Hian Heng, Gillian 4 4Loh Hoon Sun 8 3 Yeoh Oon Jin 6 2 Quek Shi Kui 7 3 Yim Kam May 9 3Seow Teow Han, John 8 6
Manpower and Training
Between 1 April 2005 and 28 February 2006, five new staff were recruited to replace those who had left earlier. 10 new positions were created in the Secretariat and the Academy to enhance the Institute’s services in areas of branding, membership and professional education. The total staff strength of the Institute as at 28 February 2006 stands at 65.
The Council supports the national drive to promote work-life balance as well as staff training and development. The Institute has successfully implemented a five-day work week for all employees without compromising on its commitment to cater to the needs of members on Saturdays. The Institute
report of the council
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believes that by upgrading the skills of its staff and providing a work-life balanced environment for staff, productivity and efficiency would be further enhanced.
Singapore Accountancy Academy
The year 2005 saw many exciting changes to the Singapore Accountancy Academy (SAA). These changes enabled SAA to better position itself to serve the Institute’s members, as well as local and international students.
In March 2005, SAA was one of the first few Private Educational Organisations (PEO) to have achieved the CaseTrust for Education accreditation. With this accreditation, SAA students can be assured of high quality student welfare practices and standards as there is a transparent and fair refund policy in place.
The Academy has also achieved the Singapore Quality Class (SQC) for Private Education Organisations in November 2005. The SQC-PEO is a scheme administered by SPRING Singapore. It recognises PEOs that have attained a commendable level of performance in their journey to business excellence in the private education sector.
This milestone is a seal of approval of SAA’s level of service and management quality. It demonstrates that SAA has come a long way and is now a step closer towards its vision of being the Premier Accountancy Academy in the region. The SQC-PEO status will enable SAA to better promote accountancy education in the region, especially in the less developed countries, and brand SAA as the only PEO with the backing of a national accountancy body with excellent business processes and professionalism.
December 2005 also marked the commencement of operations of the SAA’s City Campus at OUB Centre, 1 Raffles Place. The campus has over 8,000 square feet of training space. This new facility enables SAA to reach out to the many potential part-time students who are working in the heart of the Central Business District (CBD). This Campus will be the ideal springboard for SAA to offer postgraduate programmes targeted at working professionals.
Following suggestions from ICPAS members for a training premise that is closer to their offices in the CBD area, SAA has also moved its Continuing Professional Education (CPE) Department to the City Campus. Other advantages of the City Campus include ample parking facilities at OUB Centre, ample amenities in the vicinity, as well as easy access to public transportation. The City Campus also houses a CPA Members Lounge, where ICPAS members can relax, network and interact with their counterparts.
Since its launch in November 2004, the ICPAS Professional Examinations has successfully admitted more than 100 students. A first anniversary advertisement was placed in the newspaper to congratulate successful candidates.
International Relations
The Institute hosted the following visits in 2005:
• Professor Gary Martin, Pro Vice Chancellor (Strategy) from the Murdoch University, Western Australia visited the Institute on 2 March 2005.
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19• On 25 April 2005, the Institute hosted a visit by Ms Clare Minchington, Acting Managing Director for Education, Training and Development from ACCA, UK.• A group of 24 officials from the Suzhou Industrial Park and Suzhou Municipal & District Government visited the Institute on 26 April 2005.• On 1 July 2005, the Institute hosted a visit by Mr David L Balangue, National President of the Philippine Institute of Certified Public Accountants (PICPA), and the Chairman and Managing Partner of SGV & Co.• The Institute hosted a visit by a group of 20 officials from YanTai Audit Training Group of Shandong, China on 6 July 2005. • On 14 July 2005, Ms Judy Vulker, Project Director of the Chartered Institute of Management Accountants (CIMA) Asia Pacific visited the Institute.• On 23 August 2005, Ms Ann Johns, Director of Education and Membership of CPA Australia visited the Institute.• On 25 August 2005, the Institute hosted a visit by Mr Ian McCusker, Managing Director for Strategy & Development from ACCA, UK.• The Institute hosted a visit by Mr Dondog Luvsanochir, President of Mongolian Institute of Certified Public Accountants (MonICPA), Members of Parliament and specialists from the Ministry of Finance of Mongolia on 20 September 2005. • On 28 September 2005, the Institute hosted a visit by Dr Raymond Madden, Executive Director – Education and Training of the Institute of Chartered Accountants in England & Wales (ICAEW).• On 15 November 2005, Mr Christopher Forster, President of ACCA, paid a courtesy call on the Institute together with the Head of ACCA Singapore, Ms Penelope Phoon. • On 7 December 2005, a delegation from ACCA comprising Mr Alan Hatfield, Head of Learning Partnership; Mr Stephen Heathcote, Director of Training & Development; Mr Mitchell Tee, Manager of Educational Affairs; and Ms Penelope Phoon from ACCA Singapore visited the Institute.
Technical Matters
AccountingDuring the year, the Institute’s Accounting Standards Committee (ASC) continued to play a pivotal role in working with the Council on Corporate Disclosure and Governance (“CCDG”) to review new accounting proposals and setting accounting standards, i.e. Financial Reporting Standards (FRSs). The FRSs are virtually converged with International Financial Reporting Standards (IFRSs) and International Accounting Standards (IASs) issued by the International Accounting Standards Board (IASB).
Details of the contributions of the Committee can be found in the Committee’s report on pages 39 – 41 of the annual report.
AuditingThe list of auditing standards and exposure drafts approved by the Institute’s Council on the recommendations of the Auditing and Assurance Standards Committee (AASC) during the year, can be found on pages 42 – 43 of the annual report.
The list of auditing pronouncements which have been withdrawn can also be found on pages 42 – 43 of the annual report.
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Statements of Recommended Accounting PracticeThe Institute has approved the following Statements of Recommended Accounting Practice (RAPs):
• RAP 11 Pre-Completion Contracts for the Sale of Development Property seeks to provide interim guidance on revenue recognition for property developers in Singapore;
• RAP 6 Accounting and Reporting By Charities which sets out recommendations on the way in which a charity should account for and report on the resources entrusted to it and the activities in which it undertakes. It seeks to improve the quality of financial reporting, reduce diversity in accounting practice and presentation and enhance comparability and understandability of information presented in the accounts of a charity. This RAP is applicable to all charities in Singapore and is effective for annual periods beginning on or after 1 January 2006 (revised in November 2005).
Prior to the issuance of the revised RAP 6, the Institute had issued an Exposure Draft of Revised Statement of Recommended Accounting Practice 6 Accounting and Reporting by Charities (RAP 6), after close consultation with the Council on Governance of Institutions of a Public Character (CGIPCs); and
• RAP 7 Reporting Framework for Unit Trusts which sets out recommendations as to how the managers of a unit trust authorised by the Monetary Authority of Singapore (“MAS”), including unit trusts registered with the Central Provident Fund Board (“CPF”) should prepare the unit trust’s financial statements for unitholders (revised in May 2005).
Acknowledgement
The Council would like to thank all members who have actively supported the Institute’s activities and programmes during the year. The Council would like to commend the chairmen and members of the various committees for their valuable contributions and dedicated service to the Institute.
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To the business community, employers and public, having the “CPA Singapore” designation indicates a commitment to true professionalism, a commitment that employers appreciate. Having the “CPA Singapore” designation shows that you are career-oriented and intend to succeed. The designation bears the hallmarks of high standing and professional integrity.
The “CPA Singapore” brand is synonymous with Integrity, Commitment, Professionalism, Authority in their field and Superiority, the five acronyms that represent “ICPAS”. The prestigious designation provides the member with a distinct competitive edge over other accountants.
The “FCPA Singapore” or Fellow status brings CPAs to another level. It recognises the seniority of CPAs as members who have reached the top echelons in their profession.
Activities in 2005
The Institute’s branding campaign in 2005 to promote trust and reputation, as well as to create awareness and recognition of the “CPA Singapore” brand name include the following activities:
• Career Fair 2005• Co-sponsorship of “The Agenda – Corporate Culture” on Channel NewsAsia
the CPA Singaporebrand
• CPA Forum 2005• Sponsorship of National Day Parade 2005• Production of ICPAS’ first television commercial (TVC) and print advertisements• Media publicity for ICPAS• Promotion of the designation to employers• Mutual Recognition Agreement (MRA) with The Association of Chartered Certified Accountants (ACCA)• Participation in local / overseas conferences• Singapore Corporate Awards
Career Fair 2005The Institute, together with its training arm, the Singapore Accountancy Academy (SAA), participated in the Career Fair 2005 which was held at the Suntec City
The SAA/ICPAS booth attracted many visitors enquiring about SAA courses and ICPAS membership during the Career Fair 2005
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Convention Centre from 3 March to 6 March 2005. The Fair gave the Institute the opportunity to introduce the benefits of ICPAS membership to accountancy students and working accountants.
Co-sponsorship of “The Agenda – Corporate Culture” on Channel NewsAsiaTo raise the profile of ICPAS and the “CPA Singapore” designation in the business community, the Institute co-sponsored five episodes of “The Agenda – Corporate Culture” program on Channel NewsAsia (CNA) with CPA Australia. The program was telecast from 6 July 2005 to 3 August 2005.
The series examined issues relating to corporate governance, whether ethics can be legislated, the role of the board of directors, diversification into new markets, doing businesses in Asia, the West and Middle East and outsourcing.
CPA Forum 2005The Institute co-organised CPA Forum 2005 with CPA Australia on 12 August 2005. The theme of the forum was based on the topics featured in Channel NewsAsia’s “The Agenda – Corporate Culture” TV series. The high-profile forum featured prominent speakers, including ICPAS members.
Sponsorship of National Day Parade 2005To emphasise the important role the accountancy profession plays in positioning Singapore as a global business and financial hub, the Institute sponsored $5,000 cash towards the National Day Parade 2005. The Institute has been contributing to the national day parades since 2000.
Production of ICPAS’ First TV Commercial & Print AdvertisementsThe Institute produced its first television commercial (TVC) in June 2005, which
Panellists at the CPA Forum 2005. (From left to right) Mr Peter Barker, CFO-Asia Pacific of Cisco System (USA) Pte Ltd; Mrs Fang Ai Lian, Chairman of Ernst & Young, Singapore; Mr Melvin Yong, Executive Editor/Presenter of Channel NewsAsia; Mr Chaly Mah, Managing Director of Deloitte & Touche, Singapore; and Mr Soh Yew Hock, CEO of Wearnes International Ltd.
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was aired during the telecast of the five episodes of “The Agenda – Corporate Culture” on Channel NewsAsia. The 30-second commercial featured a CEO seeking a CPA Singapore’s advice to expand his business empire. It emphasised the qualities of a CPA Singapore, i.e. Integrity, Commitment, Professionalism, Authority in their field and Superiority and portrayed a CPA Singapore as “the one you can count on” for good advice.
The CPA Singapore print advertisements, which has appeared in The Straits Times and Today newspapers, featured a rocket ship launching into outer space. Painted on the tip of the space shuttle were the words “CPA Singapore”, which signified “lifting Singapore’s accountancy profession to greater heights”.
The Institute has engaged an advertising agency to produce a new series of branding advertisements to further promote the designation in 2006.
Media Publicity for ICPASTo lend credibility to the Institute and its members, it is pertinent to reach the business community and the public at large not just through advertising, but public relations efforts as well. In this regard,
the Institute works closely with the media to garner their support in featuring news on the Institute or its activities in the newspapers, radio or TV.
In 2005, the media covered major events such as the CPA Forum 2005, the signing
ICPAS’ first television commercial.
The Institute’s first print advertisement.
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of the Mutual Recognition Agreement (MRA) with The Association of Chartered Certified Accountants (ACCA) and the ICPAS Annual Dinner and Dance 2005, as well as briefings on the auditor’s responsibility to consider fraud in an audit, roles and responsibilities of an audit committee and a CFO, the issue of Exposure Draft Recommended Accounting Practice 6 (RAP 6) for charities and the revised RAP 6 for charities. The Institute was also interviewed on its views on various issues including the revised Corporate Governance Code, audit exemption, the National Kidney Foundation saga and the Singapore Corporate Awards. During the year, the Institute and Academy worked with the media to produce articles on accountancy as a career and ICPAS membership.
The Institute will continue to strive to achieve maximum media exposure for ICPAS and its members where possible, to build a strong brand name for the “CPA Singapore” designation and increase the profile of ICPAS.
Promotion of the Designation to EmployersThe Institute actively promotes the “CPA Singapore” designation to employers on a regular basis by writing to employers to highlight to them the benefits of employing a CPA Singapore and what he or she can do.
MRA with ACCATo ensure that ICPAS membership remains relevant across markets, the Institute signed the Mutual Recognition Agreement (MRA) with ACCA on 22 August 2005. This partnership is a significant milestone in that it is a closer step towards international recognition of the “CPA Singapore” designation. The Institute’s first MRA was signed with CPA Australia in 2004.
Participation in local / overseas conferencesTo raise the profile of ICPAS, the Institute
participates in local and overseas conferences. In 2005, the Institute was involved in the following conferences:
• ICPAS Vice President, Dr Ernest Kan, was invited to be a speaker at The Institute of Chartered Accountants of India’s (ICAI) International Conference on “Accountancy Profession: Adding Value to New Horizons of Economic Growth” on 1 September 2005 in New Delhi, India.
• ICPAS Vice President, Dr Ernest Kan, delivered an opening address to a group of 40 members of the Western India Regional Council (WIRC) of the Institute of Certified Accountants of India (ICAI) on 5 September 2005. The ICAI members were in Singapore for an international study tour including Thailand, Malaysia and India.
• On 26 September 2005, ICPAS and ICAI jointly organised a seminar on the “Business Opportunities in India and Singapore”. ICPAS President, Mr Tan Boen Eng, delivered the welcome address and ICPAS Deputy Director of Technical Division, Mr Ramchand Jagtiani, spoke
Dr Ernest Kan, ICPAS Vice President, being interviewed by Channel NewsAsia on his views on the roles and responsibilities of a CFO.
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on the challenges and opportunities of the accountancy profession in Singapore.
• Dr Ernest Kan, ICPAS Vice President,was one of the keynote speakers at the 14th ASEAN Federation of Accountants (AFA) Conference held between 9 – 10 December 2005 at Hanoi, Vietnam. During his presentation entitled “Global Standard, Local Convergence”, Dr Kan deliberated on topics such as globally accepted international standards, International Federation of Accountants’ (IFAC) structure, its mission, recent developments and the Wong Report and GAAP convergence.
Singapore Corporate AwardsThe Institute was pleased to participate in the inaugural Singapore Corporate Awards (SCA). The SCA is organised by The Business Times in collaboration with UBS, supported by the Singapore Exchange Limited and partnered by ICPAS, Investment Management Association of Singapore, Securities Investors Association (Singapore), Singapore Institute of Directors and Citigate Dewe Rogerson i.MAGE.
The SCA consists of the Annual Report Award (ARA), Best Managed Board Award, Best Investor Relations Award and the Chief Financial Officer (CFO) of the Year Award. The Institute performed the Secretariat function for the ARA and the CFO of the Year Award. ICPAS was actively involved in providing secretarial support and helping in the assessments for the ARA and CFO of the Year awards.
The ARA panel of judges is chaired by the Institute’s member, Mr Kevin Kwok. Also representing the Institute on the ARA panel of judges are ICPAS members Ms Eleanor Lee, Mr Ian Gan and Mrs Maria Lee.
The Institute’s representative on the CFO of the Year Award judging panel is its Vice President, Dr Ernest Kan, who provided valuable input towards the judging criteria and the assessment of the nominees for the award.
A toast to more future collaborations at the signing ceremony of the Mutual Recognition Agreement between ICPAS and ACCA. Standing from left to right are Dr Ernest Kan, Vice President of ICPAS; Mr Tan Boen Eng, President of ICPAS; and Mr Allen Blewitt, Chief Executive of ACCA.
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Mr Gerard Tan Wee Seng• Fellow (ICPAS)• Chairman, SUN-DAC Centre for the Disabled
Pingat Pentadbiran Awan (Gangsa) [Public Administrative Medal (Bronze)]
Mr Mun Kwok On• Fellow (ICPAS) • Deputy Director, School of Business and Accountancy, Ngee Ann Polytechnic Management Committee
Bintang Bakti Masyarakat[Public Service Star]
Mr Jack Soh Tze Churn, PBM• Non-practising Member• Chairman, Nee Soon South CCC
Pingat Bakti Masyarakat[Public Service Medal]
Associate Professor Ho Kim Wai• Fellow (ICPAS)• Vice-chairman, Dover Community Club Management Committee
Mr Lim Sean Teck• Non-practising Member • Assessor, Appeals Board (Land Acquisition)
Significant Achievements of Members
The achievements of ICPAS members go a step further in enhancing the prestigious image of CPAs Singapore. During the year, the following members were conferred with the prestigious National Day Honours 2005 awards by the Government of Singapore:
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27membership services
Technical Services
• During the year, the Institute, through its Accounting Standards Committee, continued to play a pivotal role in working with the Council on Corporate Disclosure and Governance (CCDG) in reviewing new accounting proposals and setting accounting standards, i.e. Financial Reporting Standards (FRSs) and Interpretations of Financial Reporting Standards (INT FRSs). As of 31 December 2005, two FRSs, three amendments to FRSs, two INT FRSs and one amendment to INT FRS were issued by CCDG subsequent to the Institute’s recommendations.
• During the year, the Institute’s Council, on the recommendation of the Auditing and Assurance Standards Committee, approved 19 auditing pronouncements and 22 conforming amendments to various SSAs arising from the Audit Risk Standards. Six auditing pronouncements are pending the approval of the Accounting and Corporate Regulatory Authority (ACRA).
• On 22 June 2005, the Banking & Finance Committee held a discussion with the Monetary Authority of Singapore (MAS) on the proposed amendments to the specimen report in SAP 5 Auditors’ Supplementary Report for Banks.
• On 21 November 2005, a meeting was held between representatives from the Banking & Finance Committee and MAS on issues pertaining to the revision
of Form 7 “Auditor’s Report for a holder of a markets services licence”.
• On 20 April 2005, the Institute’s Insurance Committee engaged the representatives from the Insurance Department of the Monetary Authority of Singapore (ID-MAS) in a dialogue session to discuss the developments in the insurance sector, especially on the Risk Based Capital Regulations, and the accounting and auditing aspects of the insurance business.
• On 29 March 2005, representatives from the Institute’s Taxation & Levies Committee participated in an IRAS dialogue session on the filing requirements of Form C for Year of Assessment 2005.
• On 18 November 2005, representatives from the Taxation & Levies Committee participated in IRAS’ feedback session on record keeping under the Income Tax Act and the self-assessment system.
• The seminars organised by the Technical Division in 2005 include:
o Auditing and Assurance Standards Committee: “Expectation of Work of Auditors” seminar in January o “Limited Liability Partnerships” seminar in July o Public Accounting Practice Committee: “Practice Strategy & Alliance Forum” in October
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Minister and female MPs listening to suggestions from the floor during a dialogue session with female members in January 2005. (From left: Ms Indranee Thurai Rajah, Member of Parliament for Tanjong Pagar GRC; Dr Amy Khor Lean Suan, Mayor of South West Community Development Council and Mrs Lim Hwee Hua, Minister of State for Finance & Transport)
ICPAS Vice President and IFAC Board Member, Dr Ernest Kan (left) with the Chairman of the Public Interest Oversight Board (PIOB), Dr Stavros Thomadakis, at the IFAC Board meeting held in Cape Town, South Africa in March 2005.
Professional Voice
As the Institute is the professional voice of the accountancy profession, it is involved in or participates in activities or initiatives where the Institute or its members are able to voice matters concerning the accountancy profession. Such activities in 2005 include:
Local Activities• On 6 January 2005, the Institute hosted a
dialogue session between Mrs Lim Hwee Hua, Minister of State for Finance & Transport, and its female members. The session gave members an opportunity to voice their comments, feedback and suggestions on professional issues affecting them and work-life balance or family issues.
• On 21 June 2005, the Institute organised a meeting with the Economic Development Feedback Group to gather any industry- related concerns that members may wish to highlight.
International Activities• ICPAS Vice President and International
Federation of Accountants (IFAC) Board
Member, Dr Ernest Kan, represented the Singapore accountancy profession during the IFAC Board meetings in March, July and November 2005. During these meetings, the Board agreed to launch new initiatives to meet the needs of developing nations, took actions to strengthen its international standard-setting processes, reconfirmed its focus on supporting professional accountants in carrying out their corporate governance responsibilities, initiated a global study on how to enhance the quality of the financial reporting supply chain, and moved ahead on the development of guidance materials on International Standards of Auditing (ISAs) and International Standards on Quality Control (ISQCs) for use in SME audit engagements.
• ICPAS, represented by President, Mr Tan Boen Eng and Vice President, Dr Ernest Kan, attended the International Federation of Accountants’ (IFAC) Council meeting in November 2005. At the meeting, IFAC introduced initiatives to help developing nations and to further support quality performance by accountants worldwide.
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29• In March 2005, ICPAS Vice President,
Dr Ernest Kan, attended the International Accounting Standards Board (IASB) Regional Standard Setters Meeting. The Institute shares the same vision as IASB in working towards a single set of high quality, understandable and enforceable global accounting standards.
• The Institute was involved in the 41st – 44th Meetings of the ASEAN Coordinating Committee on Services (CCS) held in March, June, August and November 2005. Meetings of the Ad-hoc Expert Group on Mutual Recognition Arrangements (MRAs) were held, where participants discussed ASEAN-wide MRAs for various professional services, including accountancy, architecture, engineering and surveying. ICPAS President, Mr Tan Boen Eng, represented the Institute at the Meetings.
• ICPAS attended the 82nd to 85th ASEANFederation of Accountants (AFA) Council Meetings in February, May, September and December 2005. During the meetings, the Institute discussed with its ASEAN counterparts the possibilities for training cooperation among AFA member bodies, the draft ASEAN Mutual Recognition Arrangement Framework on Accountancy Services, the conferment
of certificate of membership to the Federation of Accounting Professionals, (FAP) etc.
• The Institute attended the Asia-OceaniaTax Consultants’ Association’s (AOTCA) 13th General Council Meeting and Extraordinary General Meeting in Manila, Philippines on 10 and 11 November 2005 respectively. Mr Tan Boen Eng, President and Dr Ernest Kan, Vice President represented the Institute at the Meeting. During the meetings, the participants discussed the fiscal year 2005 business report, the estimated fiscal year 2005 financial report, the relief measures for member organisations affected by the tsunami disaster and the activities and budget for the fiscal year 2006.
Communications
The Institute understands the power of knowledge and the importance of keeping members updated on upcoming events and technical news. The various platforms the Institute uses to communicate with its members include:
• The weekly ICPAS ePublication, anelectronic newsletter, was launched in September 2005. The e-newsletter is a
Singapore Accountant journals ICPAS Connect newsletters
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quick round-up of what’s happening at the Institute, a summary of technical updates, as well as news update in the accountancy profession during the week.
• The Institute revamped the bi-monthlySingapore Accountant journal in December 2005. The first issue of the revamped journal was published in January 2006. Besides sporting a new cover design and layout, a new column entitled “People” was introduced to include interviews with successful CPAs Singapore and Chairpersons of the various Technical Committees in ICPAS.
• The Institute revamped the bi-monthlyICPAS Connect newsletter in November 2005. The layout of the newsletter was changed to give it a more refreshing look and feel. The contents were updated to include business and accountancy news, snap polls and famous quotes.
• The ICPAS corporate video was updated in 2005. It gives an overview of the objectives of the Institute, ICPAS membership, and its extensive network with local government bodies and overseas accountancy bodies.
• The Institute introduced new sections in the ICPAS website, namely “ICPAS Professional Exam”, “Press Release”, “ePublication Archive”, “News Archive” and “Poll / Survey”. The Institute’s corporate video can also be viewed on the website.
Social and Networking
The Social and Sports Committees organised the following activities in 2005:
Social• Microsoft Excel 2003 Seminar in January • MacRitchie Nature Trail in May • Speechcraft Programme at Prisons School in May • Talk on Traditional Chinese Medicine and Tour of Eu Yan Sang’s Bird’s Nest Gallery in August• Jewellery Art Talk and Workshop (1) & (2) in September • Computer Skills Preview Workshops between September and October • ICPAS Annual Dinner & Dance 2005 – “The Grand Shanghai” in October • Speechcraft 2005 in October• Guided Tour to Chek Jawa in December
Participants studying the rare marine life in Chek Jawa with guidance from the volunteer guides of the nature reserve.
ICPAS ePublication e-newsletter
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Sports• CPA Games between August and October• IPG Games among the six professional bodies between October and November
Membership Benefits
Members of ICPAS enjoy the following benefits:
• Exclusive use of “CPA Singapore” designation for full members• Singapore Accountant journal• ICPAS Connect newsletter• ICPAS ePublication e-newsletter• Online members’ handbook • CPE seminars at members’ rate• Networking opportunities for members at ICPAS events• Interactive homepage – enabling online updates of members’ mailing address and online payment of fees and CPE courses • Free email account• Affinity credit card with American Express• ICPAS Group Insurance Scheme
Members library.
• Specially arranged discount offers for members • Library services • CPA Members Lounge at the SAA City Campus
The Institute will continuously review and improve on its services and strive to increase the value of the ICPAS membership.
Participants of the MacRitchie Nature Trail.
CPA Members Lounge.
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membership profile
Membership by Class
Non-practisingMembers
ProvisionalMembers
796
12,302
3,879
350
1
17,328Members-
in-retirementHonoraryMember
TotalPractisingMembers
Membership by Gender
Female
6,612
10,716
17,328Total
Male
Membership by Age Distribution
31 – 40 years
41 – 50 years
3,469
7,436
3,775
1,966
682
17,32851 – 60 years ≥ 61 years
Total≤ 30 years
(4.6%)
(71.0%)
(22.4%)
(2.0%)
(0.0%)
(100.0%)
(38.2%)
(61.8%)
(100.0%)
(20.0%)
(42.9%)
(21.8%)
(11.3%)
(4.0%)
(100.0%)
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33communityresponsibility
The Institute believes that its responsibilities and concerns should extend beyond the accountancy profession to benefit the community at large. As such, the Institute maintains an active involvement in community service to contribute meaningfully to society.
Community Service
In January 2005, the Institute contributed a cash donation of $5,000 to the Singapore Red Cross’ “Tidal Waves Asia Fund” for the tsunami victims.
The Academy helped the Lions Club of Singapore Nanyang and the PAP Community Foundation Headstart Fund raise funds through donation cards in January and February 2005 respectively.
The Academy supported the Singapore Children Society by selling mobile phone straps in July 2005 to its staff and students. It also helped the Children’s Cancer Foundation in raising awareness on cancer among its students.
The Academy raised funds for the Singapore Red Cross by selling donation lucky draw tickets in August 2005.
The Institute’s Community Service Committee organises activities that benefit the less fortunate such as the elderly, handicapped and underprivileged children. Such activities include the annual “Reach Out” event in November and the Christmas Outing in December.
Volunteering to entertain the elderly for the day is Mrs John Seow (backrow, centre) who danced and sang with a group of her voluntary dance students. On her right is Ms Wong Lai Yong, Chairperson of the Community Service Committee.
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The Institute continued to purchase greeting cards from the Spastic Children’s Association of Singapore. The Academy sold Lunar New Year cards for the Association of Foot and Mouth Artists (MFPA) in December 2005.
Education
The Institute places great importance on the advancement of accountancy education and training in Singapore. To encourage accountancy students to strive for academic excellence, the Institute sponsors scholarships and awards.
For students at the School of Accountancy and Business, Nanyang Technological University (NTU), the Institute sponsors awards such as the ICPAS Gold Medal cum Cash Award for the most outstanding student throughout the course of his/her study, the ICPAS Book Prize for the student with the highest aggregate marks in accountancy subjects in his/her final year and the ICPAS Gold Medal for the top student in the NTU MBA (Accountancy) programme. The Institute also sponsors the ICPAS Gold Medal for the most outstanding graduate from Singapore Management University’s Bachelor of Accountancy programme.
The Institute also presents the ICPAS Scholarship Awards to two second-year and two third-year students from the School of Accountancy and Business at NTU each year. From 2004, ICPAS also presents ICPAS Scholarship Awards to two third-year and two fourth-year students from the School of Accountancy at Singapore Management University (SMU).
The Institute is also supportive of accountancy education and training in the polytechnics. The ICPAS Book Prize is given to the top students of Nanyang Polytechnic’s Diploma in Accountancy
and Finance programme while the ICPAS Gold Medal award is presented to the top students of Temasek Polytechnic’s Diploma in Accounting and Finance programme. The Institute continues to sponsor the ICPAS Gold Medal and Book Prize for the most outstanding graduate from Ngee Ann Polytechnic’s Accountancy Department and the Merit Award (Diploma in Accountancy) for the top accountancy student in Singapore Polytechnic.
The Academy sponsors top ITE students to study ACCA and CAT at the Academy.
Environmentalism
The Academy embarked on a School Recycling Programme in September 2005 to encourage students and staff to recycle waster paper and cans.
Receiving his scholarship from Mr Tan Boen Eng at the ICPAS Dinner & Dance 2005 is Mr Wong Jinrong, Simon from the Nanyang Technological University.
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35highlights of 2005
January
On 6 January 2005, the Institute hosted a dialogue session between Mrs Lim Hwee Hua, Minister of State for Finance & Transport; Dr Amy Khor Lean Suan, Mayor of South West Community Development Council; Ms Indranee Thurai Rajah, Member of Parliament for Tanjong Pagar GRC and its female members at the M Hotel.
March
The Academy was one of the first few Private Educational Organisations (PEO) to achieve the CaseTrust for Education accreditation on 15 March 2005.
April
The Insolvency Practitioners Association of Singapore Limited (IPAS) was incorporated
Participants of the dialogue session between female MPs and ICPAS female members.
on 12 April 2005, with the support of ICPAS, the Law Society of Singapore and the Official Receiver and Official Assignee. Representing the Institute on the Board are Mr Don Ho, who is also the Chairman of IPAS, and Mr Chan Ket Teck. IPAS aims to be the premier professional body for the insolvency profession in Singapore with an emphasis on training, continued professional education and ethics. The Secretary is Mr Ramchand Jagtiani, ICPAS Deputy Director of Technical Division.
June
On 21 June 2005, the Institute organised a meeting with the Economic Development Feedback Group to gather any industry-related concerns that members may wish to highlight. The meeting was chaired by Mr George Abraham, Chairman and Managing Director of The GA Group Pte Ltd.
More than 20 members participated actively in the feedback session conducted by the Economic Development Feedback Group.
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July
ICPAS and the Accounting & Corporate Regulatory Authority (ACRA) jointly organised a seminar entitled “Limited Liability Partnerships” on 6 July 2005 at the Meritus Mandarin Singapore. The objective of the seminar was to address the salient features of Limited Liability Partnerships (LLPs).
For the first time, ICPAS jointly sponsored five episodes of “The Agenda – Corporate Culture” program on Channel NewsAsia (CNA) with CPA Australia. The program was telecast every Wednesday from 6 July 2005 to 3 August 2005. The Institute’s first TV commercial was also aired during the program.
August
On 12 August 2005, ICPAS and CPA Australia jointly organised the CPA Forum 2005. The theme of the forum was based on the topics featured in Channel NewsAsia’s “The Agenda – Corporate Culture” TV series jointly sponsored by ICPAS and CPA Australia. The Guest-of-Honour was Mrs Lim Hwee Hua, Minister of State for Finance and Transport.
The panel discussion during the seminar on “Limited Liability Partnerships” chaired by Dr Ernest Kan, ICPAS Vice President (first from right). With him are (from left) Ms Toh Wee San (Deputy Head, Policy and Planning Division, ACRA) and Ms K Latha (Acting Head, Business Facilitation Division, ACRA).
The Institute signed a Mutual Recognition Agreement (MRA) with The Association of Chartered Certified Accountants (ACCA) on 22 August 2005. The MRA enables ICPAS members to be a full member of ACCA and vice versa. ICPAS members who have completed the ICPAS Professional Examination and have satisfied ACCA’s practical experience requirement will be eligible for admission into membership of ACCA.
The arrival of the Guest-of-Honour, Mrs Lim Hwee Hua, Minister of State for Finance and Transport at the CPA Forum 2005. Walking behind her on her right is Mr Mark Coughlin (partially hidden), National President of CPA Australia. In the centre background is Mr Soh Yew Hock, President of CPA Australia, Singapore Division. On Mrs Lim’s left is Mr Tan Boen Eng, ICPAS President. Behind him is Dr Ernest Kan, ICPAS Vice President.
(Left) Mr Tan Boen Eng, ICPAS President and (right) Mr Allen Blewitt, ACCA Chief Executive sealed the MRA between ICPAS and ACCA.
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September
On 1 September 2005, Mr Danny Teoh, ICPAS Council Member, accepted the invitation to join the Reconstituted Standards Advisory Council (SAC) of the International Accounting Standards Board (IASB) by the International Accounting Standards Committee Foundation.
October
The Institute held its Annual Dinner and Dance on 21 October 2005 at The Oriental Singapore. Gracing the event was Mr Raymond Lim, Minister for Prime Minister’s Office and Second Minister for Finance and Foreign Affairs. Themed “The Grand Shanghai”, the event was a fun-filled evening of song, dance, games, great food and prizes. Some 350 members and guests attended the Dinner.
November
The Institute’s training arm, the Singapore Accountancy Academy (SAA), achieved the Singapore Quality Class (SQC) for Private Education Organisations (PEO) on 11 November 2005.
December
The Institute’s training arm, Singapore Accountancy Academy (SAA), opened its City Campus on 1 December 2005 at the 27th Floor of OUB Centre. The new Campus will also enable SAA to capture a bigger market share of working adults undertaking the ACCA course on a part-time basis.
Mr Raymond Lim, Minister for Prime Minister’s Office and Second Minister for Finance and Foreign Affairs (second from left) presented the ICPAS Medals to Ms Cheng Ai Phing (centre), Mr Eric Tan Hock Chye (2nd from right) and Mr Phillip Tan Eng Seong (extreme right). Standing beside Minister Lim is Mr Tan Boen Eng, ICPAS President.
SAA City Campus
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CREATING
MAXIMUM
IMPACT
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39committeesreview
ACCA Committee
Kan Yaw Kiong, Ernest – Chairman Ng Song PiakHo Mun-Tuke, Don – Dy Chairman Quek Shi KuiChia Chiew Meng, Robin Ramasamy, JayapalLee Chee Wung Tan Lye Heng PaulLim Lay Lian, Jocelyn Yim Kam May
The ACCA Committee played a central role in enhancing the ICPAS-ACCA Joint Professional Examination Scheme.
In November 2005, the ICPAS Examination and Student Registry published the inaugural issue of Student newsletter – Quantum Leap. This is distributed to all 17,500 students registered under the joint scheme, providing them with information on the activities and events organised by ICPAS and ACCA.
Student Orientation Programme (SOP) is conducted twice a year in the months of February and August for all new students, with speakers from both ICPAS and ACCA. In August 2005, the programme received an overwhelming response of close to 1,000 students.
An ICPAS / ACCA Planning Committee was formed consisting of staff from both ICPAS and ACCA to look into joint activities like the bi-annual ACCA Convocation. This will further strengthen the working relationship between the two bodies and improve the services of the joint scheme programme.
Accounting Standards Committee
Fang Ai Lian – Chairperson Lee, AndrewAkhtar, Sajjad Lim Say Hoe, Johnny (until 5.9.05)Ang Hao Yao Loh, JenniferBoon Yoon Chiang Low Eng Huat, PeterChia Siew Eng Ng Eng Juan (appointed 2.8.05)Chua Soon Khai (until 18.1.06) Ng, KatherineFoong Daw Ching Sivaram, NagarajIyer, Shanker Tan Boon Siong (appointed 18.1.06)Kan Yaw Kiong, Ernest Tan Siah YongKon Yin Tong Tan Yuen Fah, PhilipLam Kai Cheung, Gordon Tham Sai Choy (appointed 25.5.05)
The Committee continues to play a pivotal role in working with the Council on Corporate Disclosure and Governance (CCDG) in reviewing new accounting proposals and setting accounting standards, i.e. Financial Reporting Standards (FRSs). The FRSs are virtually converged with International Financial Reporting
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Standards (IFRSs) and International Accounting Standards (IASs) issued by the International Accounting Standards Board (IASB).
As of 31 December 2005, the following were issued as FRSs and Interpretations subsequent to the Institute’s recommendations to the CCDG:
• FRS 40 Investment Property;• FRS 106 Exploration for and Evaluation of Mineral Resources;• Amendments to FRS 19 Employee Benefits;• Amendments to FRS 39 Financial Instruments: Recognition and Measurement on Cash Flow Hedge Accounting of Forecast Intragroup Transactions; • Amendments to FRS 39 Financial Instruments: Recognition and Measurement on Transition and Initial Recognition of Financial Assets and Financial Liabilities;• INT FRS 104 Determining whether an Arrangement contains a Lease; • INT FRS 105 Rights to Interests arising from Decommissioning, Restoration and Environmental Rehabilitation Funds; and• Amendments to INT FRS 12 Consolidation – Special Purpose Entities.
During the year, the Committee also deliberated on the following IFRS, amendments to IASs/IFRSs, revised implementation guidance and Interpretations issued by IASB/IFRIC:
• IFRS 7 Financial Instruments: Disclosures and a complementary amendment to IAS 1 Presentation of Financial Statements - Capital Disclosures;• Amendment to IAS 21 The Effects of Changes in Foreign Exchange Rates – Net Investment in a Foreign Operation;• Amendments to IAS 39 Financial Instruments: Recognition and Measurement – The Fair Value Option;• Amendments to IAS 39 Financial Instruments: Recognition and Measurement and IFRS 4 Insurance Contracts - Financial Guarantee Contracts;• Amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards;• Revised Guidance on Implementing IFRS 4 Insurance Contracts; • IFRIC 6 Liabilities arising from Participating in a Specific Market – Waste Electrical and Electronic Equipment; and• IFRIC 7 Applying the Restatement Approach under IAS 29 Financial Reporting in Hyperinflationary Economies.
The following IASB exposure drafts and technical correction were considered by the CCDG with representations and recommendations from the Committee and representatives from the relevant industries:
• IASB Draft Technical Correction (DTC 1) to IAS 21 The Effects of Changes in Foreign Exchange Rates – Net Investment in a Foreign Operation;• IASB ED Amendments to IFRS 3 Business Combinations;• IASB ED Amendments to IAS 27 Consolidated and Separate Financial Statements;• IASB ED Amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets and IAS 19 Employee Benefits; • IASB ED Amendments to IFRS 6 Exploration for and Evaluation of Mineral Resources and IFRS 1 First- time Adoption of International Financial Reporting Standards;• IFRIC D17 IFRS 2 Share-based Payment - Group and Treasury Share Transactions;• IFRIC D16 Scope of IFRS 2 Share-based Payment;• IFRIC D15 Reassessment of Embedded Derivatives;• IFRIC D14 Service Concession Arrangements – The Intangible Asset Model;
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41• IFRIC D13 Service Concession Arrangements – The Financial Asset Model; and• IFRIC D12 Service Concession Arrangements – Determining the Accounting Model. The Committee reviewed the above proposals and prepared comment letters taking into account comments received. The comment letters were forwarded to the Council for approval/comments and to the CCDG for submission to the IASB as appropriate.
At its meetings, the Committee made presentations on the IASB/IFRIC exposure drafts, to which CCDG members and representatives are invited. The purpose of the presentations is to facilitate understanding of the technical issues and implications of the accounting standards and proposals.
The Committee also formed ad hoc sub-committees to review the existing RAP 6 Accounting by Charities and look into the issuance of a recommended accounting practice, RAP 11 Pre-Completion Contracts for the Sale of Development Property, which seeks to provide guidance on revenue recognition for property developers in Singapore. Following the Committee’s recommendations, the revised RAP 6 Accounting and Reporting by Charities and RAP 11 were issued in November and October 2005 respectively.
The Committee also provided views on the following:
• IASB Draft Memorandum of Understanding “The Role of Accounting Standard-Setters and their Relationships with the IASB”;• IASB Staff Questionnaire on Possible Modifications of the Recognition and Measurement Principles in IFRSs for use in IASB Standards for SMEs;• IASB Handbook of Consultative Arrangements and IFRIC Consultative Paper on Review of Operations; and• IASB Proposed Policy on Technical Corrections.
Accreditation Committee
Tan Boen Eng – Chairman Pang Yang HoongKan Yaw Kiong, Ernest Yeo Hian Heng, GillianKon Yin Tong
During the year, the Committee met to consider and subsequently recommended to Council to grant recognition of the Master of Professional Accounting (MPA) programme offered by the Singapore Management University (SMU) for the purpose of membership admission.
A joint committee was formed with representatives from the Accounting and Corporate Regulatory Authority (ACRA) and ICPAS to review the CIMA new syllabus.
As provided under the Singapore-India Comprehensive Economic Co-operation Agreement (CECA) which came into force on 1 August 2005, the Institute is in the process of negotiating a Mutual Recognition Agreement (MRA) with the Institute of Chartered Accountants of India (ICAI).
ATTS Committee
Ong Chin Guan, Noris – Chairman N Vimala DeviTan Boen Eng – Dy Chairman Wong Fong YenLee Kian Meng, Ernest Yee Fook Hong
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During the period under review, the Committee met to deal with the policy and operational aspects of the Association of Taxation Technicians Singapore (ATTS) and to review the results of the ATTS examinations.
A total of four forums were held during the period under review for the benefit of the ATTS students and members. The turnout at the forums was good. The Year 2005 ATTS tax bulletin was sent to update all students and members on current tax legislation and practice.
The ATTS Annual Reception 2005 was held to present First and Second Place Awards, and Merit Certificates to students who performed well in the 2004 examinations.
Auditing and Assurance Standards Committee
Kan Yaw Kiong, Ernest – Chairman Lee, MariaYeoh Oon Jin – Dy Chairman Siew Wun MuiBarmaky, Shariq Tan Wee KhimChin, Robin Tay, JoanneChoong Chow Siong Thein, ReggieChristie, Hamish Toh, JosephFoo See Liang Wong-Yeow Anna IreneHow, Derek Yeo Ek Khuan
During the year under review, the Institute’s Council, on the recommendation of the Committee, approved the following:
• Revised SAP 3 Microfilm Records and Their Audit Implications• Revised SAP 1014 Reporting by Auditors on Compliance with Financial Reporting Standards• Revised SSA 930 Engagements to Compile Financial Information (renamed as SSRS 4410)• Revised SSA 240 The Auditor’s Responsibility to Consider Fraud in an Audit of Financial Statements• SSQC1 Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements• Revised SSA 220 Quality Control for Audits of Historical Financial Information• Glossary of Terms (consequential amendments arising from the revised SSA 220)• SSA 620 Using the Work of an Expert (consequential amendments arising from the revised SSA 220)• SAP 1012 Auditing Derivative Financial Statements (consequential amendments arising from the revised SSA 220)• Framework for Assurance Engagements• SSAE 3000 Assurance Engagements other than Audits or Reviews of Historical Financial Information • Revised SSA 600 Using the Work of Another Auditor• Revised SSA 300 Planning an Audit of Financial Statements• Revised RAP 7 Reporting Framework for Unit Trusts• Revised Preface to Singapore Standards on Quality Control, Auditing, Assurance and Related Services• Revised SAP 7 Audit of Solicitors’ Accounts• Conforming amendments to various SSAs arising from the Audit Risk Standards• Revised SSA 320 Audit Materiality• SSRE 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity• Revised SSA 230 Audit Documentation
The following auditing pronouncements have been withdrawn:
• SSA 310 Knowledge of the Business
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43• SSA 400 Risk Assessments and Internal Control• SSA 401 Auditing in a Computer Information Systems Environment• SAP 2 The Interpretation of ‘Material’ in Relation to Accounts• SAP 5C Auditors’ Supplementary Report for Corporate Members of the Singapore International Monetary Exchange (SIMEX)• SAP 6 True and Fair • SAP 1001 IT Environments — Stand-Alone Personal Computers• SAP 1002 IT Environments — On-Line Computer Systems• SAP 1003 IT Environments — Database Systems• SAP 1008 Risk Assessments and Internal Control — CIS Characteristics and Considerations• SAP 1009 Computer Assisted Audit Techniques
As of 31 December 2005, the Committee was considering issues in relation to proposed new or revised auditing standards and statements of auditing practice on the following matters, some of which were either on exposure draft or awaiting approval from the Accounting and Corporate Regulatory Authority (ACRA):
• Proposed Operations Policy on Bold Type Lettering• Reports on the Internal Control Procedures of Service Organisations• Revision to SSA 700 The Independent Auditor’s Report on a Complete Set of General Purpose Financial Statements• Amendments to SSA 1 Objective and General Principles Governing an Audit of Financial Statements• Amendments to SSA 2 Terms of Audit Engagements• Conforming amendments to SSA 701 Modifications to the Independent Auditor’s Report, SSA 21 Subsequent Events and SSA 24 The Independent Auditor’s Report on Special Purpose Audit Engagements• Comfort Letters and Other Assistance for Public Offerings of Equity Securities in Singapore• Materiality in the Identification and Evaluation of Misstatements• Auditing Accounting Estimates and Related Disclosures (Other than Those Involving Fair Value Measurements and Disclosures)• The Audit of Group Financial Statements• The Auditor’s Communication with Those Charged with Governance• Modifications to the Opinion in the Independent Auditor’s Report• Emphasis of Matter Paragraphs and Other Matters Paragraphs in the Independent Auditor’s Report• The Independent Auditor’s Report on Other Historical Financial Information• The Independent Auditor’s Report on Summary Audited Financial Statements• Programme for improving the clarity of SSAs: Preface to Singapore Standards on Quality Control, Auditing, Assurance and Related Services; SSA 240 (Redrafted) The Auditor’s Responsibility to Consider Fraud in an Audit of Financial Statements; SSA 300 (Redrafted) Planning an Audit of Financial Statements; SSA 315 (Redrafted) Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement; and SSA 330 (Redrafted) The Auditor’s Procedures in Response to Assessed Risks
On 27 January 2005, the Committee organised a seminar entitled “Expectation of Work of Auditors” at the Meritus Mandarin Singapore. The participants at the seminar included members from the Singapore Institute of Directors (SID), Securities Investors Association of Singapore (SIAS), Association of Small and Medium Enterprises (ASME), Singapore Investment Banking Association (SIBA), and Practising Members of the Institute. Approximately 200 participants attended the seminar.
The objective of the seminar was to address the “expectation gap” in audits. The topics that were covered included the role of different parties in financial reporting, the auditor’s responsibility to consider fraud in an audit of financial statements, the responsibility and work of auditors, and the Sarbanes-Oxley Act.
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During the year, representatives from the Committee engaged various government agencies, including the Monetary Authority of Singapore and the Central Provident Fund Board, in dialogue meetings to discuss regulatory changes and developments.
Banking & Finance Committee
Fang Ai Lian – Chairperson Ong Ai BoonChua Kim Chiu – Dy Chairman Woo, WilsonCheng Ai Phing Yap Chee MengLeong Kok Keong
The Committee worked with the Accounting Standards Committee in considering the following IASB accounting standards:
• IASB IFRS 7 Financial Instruments: Disclosures and a complementary amendments to IAS 1 Presentation of Financial Statements – Capital Disclosures;• IASB Amendments to IAS 39 and IFRS 4 Insurance Contracts – Financial Guarantee Contracts;• IASB Amendments to IAS 39 Financial Instruments: Recognition and Measurement — The Fair Value Option;• IASB Amendments to IAS 39 Financial Instruments: Recognition and Measurement — Cash Flow Hedge Accounting of Forecast Intragroup Transactions;• IFRIC Draft Interpretation D15 Reassessment of Embedded Derivatives; and• IASB Proposed Policy on Technical Corrections.
Separately, the Committee also formed two sub-committees to deliberate on the Financial Sector Incentive Scheme Auditor’s Report and the proposed revision of MAS Form 7 “Auditor’s Report for a Holder of a Capital Markets Services Licence”.
In its continual efforts to engage the relevant authorities to discuss and resolve issues in the banking and finance industry, the Committee held discussions with the Monetary Authority of Singapore (MAS) on the proposed amendments to the specimen report in SAP 5 Auditors’ Supplementary Report for Banks and the proposed revision to MAS Form 7. The Committee also drafted the sample wordings for the audit report in view of the difference in requirements between FRS 39 and MAS 612 for comments by MAS.
The Committee continues to deliberate on the draft SAP on Auditor’s Supplementary Report for Members of CDP/SGX, proposed amendments to SAP 5 Auditors’ Supplementary Report for Banks, Auditors’ Report on Financial Sector Incentive (FSI) Scheme and the draft Auditors’ Report on ACRA exemption for non-compliance with FRSs.
Board of Examiners
Yeo Hian Heng, Gillian – Chairperson Lian Wee CheowChew Tong Gunn Loh Hoon SunChoo Teck Min Pang Yang Hoong
Since its official launch in November 2004, the ICPAS Professional Examinations had successfully admitted more than 100 candidates. The first anniversary of the programme was announced to the public on 27 December 2005 through a newspaper advertisement congratulating all successful candidates.
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45The Mutual Recognition Agreement (MRA) signed with ACCA on 22 August 2005 was on the basis of the ICPAS Professional Examinations.
During the year a team of Examiners was appointed for the setting and marking of the ICPAS Professional Examinations. Examinations were held for three modules: Audit and Assurance in May, Advanced Taxation in August and Financial Reporting and Disclosure in November.
CAT Committee
Tan Boen Eng – Chairman Lim Kim TongKhoo Ho Tong – Dy Chairman Tjioe Miouw HoenLim Cheng Lian, Angela
In the year 2005, 840 new student members joined the CATS/ACCA joint scheme, bringing the total number of registered student members to 2,369.
The number of new students, especially international students is expected to increase with SAA’s achievement of the Singapore Quality Class (SQC) for Private Education Organisations (PEO) award.
The number of graduates was 452 and there was a steady increase in the number of CATS Full members since its inception in 2001. The current membership strength is 439 Ordinary and Senior Members.
China Committee
Tan Boen Eng – Chairman Khoo Ho TongSitoh Yih Pin – Dy Chairman Lee Kok PohTeo Meng Hua – Dy Chairperson Lim Lian SoonChew Soon Beng Wong Lai YongChia Chiew Meng, Robin Yong Cherng Nan
The Committee hosted the following visits in 2005:
China Delegation from Suzhou Industrial Park and Suzhou Municipal District GovernmentA group of 24 officials from the Suzhou Industrial Park and Suzhou Municipal & District Government visited the Institute on 26 April 2005. There was an active exchange of accounting practices between the committee members and visitors during the session.
China Delegation from YanTai Audit Training GroupThe Committee hosted a visit for a group of 20 officials from YanTai Audit Training Group of Shandong, China on 6 July 2005. The delegation was on a training and exchange programme to learn more about the rules and policies of Singapore’s accounting and auditing systems. The visitors gained useful insight on the accounting practices and education system in Singapore.
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Community Service Committee
Wong Lai Yong – Chairperson Loh Boon Leng, DavidWong Kian Kok – Dy Chairman Tan Lee ChooChia Chiew Meng, Robin Tang Shiuh HueiLee Lai Ken, Helen Wong Lee Eng, ElsieLing Ing Hea, Grace Yeo Siew Huay, Micolle (appointed 24.8.05)
The Committee organised the following community service projects:
Speechcraft Programmes at Prison SchoolFollowing the success of the six-lesson speechcraft workshop held at the Prison School in 2004, the Community Service Committee organised another round of speechcraft programme jointly with the CPA Toastmaster Club between 25 May and 28 June 2005. The programme, which was designed to help participants develop public speaking and presentation skills, received good response. A total of 41 members from the Prison School attended the programme. Another series of the workshop was also conducted in December 2005.
Reach-Out 2005The Annual Reach-Out 2005 was organised on 6 November 2005 at the Singapore Swimming Club. Over 250 guests from nine charitable organisations were invited to a Chinese lunch. The guests particularly enjoyed the performances by Erh Gu and sang along with the medley of Hokkien and Teochew songs put up by the various performers. They were also entertained with live band music by the Esquires and two dance items performed by a team of young dancers from Marsiling Secondary School.
Christmas Outing 200560 residents and staff from the Canossaville Children’s Home, St Vincent Home and Ubi Hostel for the Disabled were invited to a Christmas Outing on 7 December 2005. The guests were taken on a leisurely bus ride along Orchard Road to view the Christmas lightings before heading to Rendezvous Hotel Singapore for an eight-course dinner. They were also entertained by lovely tunes performed by Mr Paul Low and his three-piece band during the dinner.
Yellow Ribbon Fundraising EventIn aid of the Yellow Ribbon Fund, a fundraising event was organised on 11 February 2006 at Prison Link Centre Changi (PLCC). Members toured the prison premises and learnt more about rehabilitative programmes that ex-offenders undergo. They were treated to a sumptuous lunch specially prepared by the “Iron Chefs” after the tour. In addition, they helped to raise more funds for the project by participating in the charity auction. All proceeds raised went towards the Yellow Ribbon Fund.
Corporate Finance Committee
Mah Chee Kheong, Chaly – Chairman Tham Sai ChoyNg Geok Mui Tsai Ai LiangTan Chian Khong Wong Kian KokTan Eng Seong, Phillip
The Committee considers issues relating to corporate finance matters, typically by discussing and providing input on matters relating to corporate finance to the regulatory authorities and other corporate finance/investment banking organisations, and works closely with other committees within the Institute on
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47matters pertaining to accounting and auditing standards and to provide input on professional issues to the standards setters.
As of 31 December 2005, the Committee is considering the issuance of guidance to members on the preparation of combined financial statements for entities under common control for the purpose of inclusion in prospectuses prepared for initial public offerings.
Corporate Governance Committee
Kan Yaw Kiong, Ernest – Chairman Lee Kin WaiMak Yuen Teen – Dy Chairman Kamis, RohanJothidas, A Yee Lat Shing, TomKon Yin Tong
The Committee continued to draw on the experience of auditors, accountants, consultants, company directors and other experts to raise awareness of corporate governance issues and to promote fairness, transparency and accountability in the conduct of business.
To achieve its objectives, the Committee has established good working relations and collaborated with organisations such as the Corporate Governance and Financial Reporting Centre (CGFRC) of the NUS Business School and the Singapore Institute of Directors (SID).
During the year, the Institute provided feedback to the Council on Corporate Disclosure and Governance (“CCDG”) on the Proposed Revisions to the Code of Corporate Governance, based on the deliberations by the Committee. The Ministry of Finance issued a revised Code on 14 July 2005, which was largely based on the CCDG’s recommendations.
The Committee also issued press releases on behalf of the Institute on matters pertaining to corporate governance, such as the roles and responsibilities of the Chief Financial Officer (CFO) and other key players in the corporate environment, and to advocate the importance of good corporate governance.
The Committee also discussed the National Kidney Foundation (NKF) saga and how corporate governance and internal controls in charitable organisations can be enhanced. Following the publication of the independent auditor’s report on NKF, the Institute issued a media release based on the Committee’s recommendations and highlighted the importance that the Institute places on the integrity and professionalism of directors, management and auditors in ensuring good corporate governance.
Several Committee members are also represented on initiatives such as the CFO of the Year and Best Investor Relations awards under the auspices of the Singapore Corporate Awards (SCA), and the Singapore Corporate Governance Awards organised by the Securities Investors Association (Singapore) (SIAS).
The Committee continues to discuss the development of new best practice guidelines to promote sound corporate governance in companies. Representatives from the Committee continue to contribute articles to the “Corporate Governance” column of the Singapore Accountant.
The Committee acknowledges the importance of its role in the development, implementation and promotion of sound corporate governance and will continue to participate actively in projects associated with its objectives and to organise relevant seminars, talks, forums and dialogues on corporate governance.
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CPA Australia Committee
Loh Hoon Sun – Chairman Lim Kim TongChan Lai Koon Mun Kwok OnHan Lih Lih Tan Boen Eng
The CPA Australia Committee has continued to work towards developing ICPAS’ strategic alliance with CPA Australia. In the last 12 months, the two organisations have worked together to launch a number of successful initiatives and enhance the profile of the two professional bodies and the profession in general.
“The Agenda – Corporate Culture” & CPA Forum 2005ICPAS and CPA Australia co-sponsored “The Agenda – Corporate Culture” on Channel NewsAsia (CNA). The two bodies also jointly organised the CPA Forum 2005 which was held on 12 August 2005.
Continuing Professional DevelopmentThe monthly joint Dinner Talk was another successful enterprise, with over 350 subscribers from both bodies.
Disciplinary Committee
Tan Boen Eng – Chairman Sitoh Yih PinFang Ai Lian Yee Lat Shing, TomKhoo Ho Tong Yeo Hian Heng, Gillian Loh Hoon Sun
The Committee dealt with two cases submitted by the Investigation Committee.
Ethics Committee
Teoh Leong Kay, Danny – Chairman Kon Yin TongAng Peng Koon, Patrick Quek Shi KuiCheong Fook Seng, Anthony Soh Chung Hian, DanielHo Mun-Tuke, Don Tay Joo SoonKhoo Ee Bin Yuen Ewe Jin, Phillip
During the year, the Committee welcomed a lawyer and a Non-practising Member of the Institute as new members to the Committee. The addition of these members serves to bring about a more diverse and balanced viewpoint to the Committee.
In June 2005, the Ethics Committee of IFAC issued a revised Code of Ethics for Professional Accountants and an exposure draft that proposes revisions to the definition of a network firm. The Institute, on the recommendation of the Committee and the approval of Council, provided its comments on the IFAC exposure draft.
In September 2005, the Institute sought members’ comments on the adoption of the revised IFAC Code as an ICPAS equivalent Code of Ethics.
The Committee met in January 2006, and deliberated that representatives from the Committee could seek to engage representatives from the Accounting and Corporate Regulatory Authority (ACRA) in a dialogue session to discuss the adoption of the revised IFAC Code in Singapore.
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49Examination Committee
Kan Yaw Kiong, Ernest – Chairman Kon Yin TongChee Hay Kheong Lim Lian SoonHo Yew Kee The Committee continued to play its role in the implementation and administration of the Joint Examination Schemes with The Association of Chartered Certified Accountants (ACCA) for its Professional Entry Route (PER) and Certified Accounting Technician (CAT) qualifications.
Upon the recommendation from the Institute, ACCA UK has changed the bi-annual Examination Review Board Meeting from a sit down meeting to a discussion forum, whereby all authorised parties are free to discuss and comment on each paper once it is available on the web. This has seen an improvement in the quality and speed of response from the Examining Team.
The ACCA and the Regional Language Centre (RELC) had acted upon the comments from students gathered by the Institute to improve on the conducive environment of the examination venue. In this regard, the December 2005 examinations were held at the Singapore Expo which was easily accessible by public transport and fully air-conditioned.
The Committee continued to approve both the appointments and reappointments of examiners, assessors and inspectors for all the above examinations. The Institute would like to thank Dr Low for his service as the examiner of ACCA Paper 2.2 Corporate and Business Law for the last 15 years. A new P2.2 examiner has been appointed.
A representative from the Committee continues to attend the Law and Tax Panel Meetings conducted by ACCA UK with all the examiners on the coming examination.
Financial Statements Review Committee
Tan Eng Seong, Phillip – Chairman Tan Ching SiewCheng Ai Phing – Dy Chairperson Tan Kay Yeow, DouglasChia Soo Hien, Frankie Tan Swee HoLeaver, David Anthony Tan Tong KaiLee, Andrew Teo Chai ChooLee Jee Cheng, Philip Tham Chee SoonLim Choon Hock, William Toh Kian Leong, JosephLing Soon Hwa, Philip Wong Kian Kok Lo Wei Min Wong Siew EngOoi Chee Kar Wong Sook YeeSoh Kok Leong Yeo Boon Chye
182 sets of financial statements were reviewed. These included newly-listed public companies and a selection of private limited financial statements. Gazetted financial statements relating to property developments were also chosen for review during the year.
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These financial statements were reviewed by members working under the following three sub-committees:
Number of Financial Sub-Committee Chairman / Chairperson Statements ReviewedPublished Accounts Phillip Tan Eng Seong 96 Private Limited Accounts Cheng Ai Phing 80 Gazetted Accounts Lo Wei Min 6 182
In the course of its reviews, the Committee has highlighted to Practising Members areas where the presentation or content of the financial statements fall short of compliance with the Financial Reporting Standards and other promulgations. Generally, the standard of disclosure in the financial statements has improved. However, it was noted that for certain sets of financial statements reviewed, Practising Members were found to be not conversant with the Financial Reporting Standards. These Practising Members were recommended to attend training courses to update themselves on the Standards. In addition, two members were found wanting in the discharge of their professional duties and subsequently referred to the Accounting and Corporate Regulatory Authority (ACRA) for further action.
In view of the substantial changes to the Financial Reporting Standards which are effective for financial periods beginning on or after January 1, 2005, Practising Members are advised to take note of the changes and ensure their compliance in the relevant financial statements.
General Purpose & Finance Committee
Tan Boen Eng – Chairman Seow Teow Han, JohnKan Yaw Kiong, Ernest
During the year, the Committee met to deal with administrative and financial matters relating to the Institute. The Committee reviewed the annual budget as well as the annual salary adjustments for staff.
The Committee considered and made recommendations to the Council on the presentation of ICPAS Gold/Silver/Merit awards to three members who had made significant contributions to the Institute and/or the community. It also awarded eight ICPAS Scholarship Awards to accountancy undergraduates from Nanyang Technological University and Singapore Management University. The awards and scholarships were presented at the Institute’s Annual Dinner on 21 October 2005.
The Committee also decided to award the ICPAS Gold Medal to the top graduate from SMU’s Master of Professional Accounting Programme to be launched in 2006.
The Committee reviewed and approved a proposal to set up a City Campus so that the Singapore Accountancy Academy (SAA) can establish a presence in the Central Business District (CBD) to attract working adults into ACCA and CAT programmes, as well as to bring its Continuing Professional Education (CPE) courses closer to ICPAS members working in the city area.
Insolvency Practices Committee
Ho Mun-Tuke, Don – Chairman Iyer, Ramasamy SubramaniamTam Chee Chong – Dy Chairman Ng Wei Teck, Michael (until 30.9.05)Aw Eng Hai Seshadri Rajagopalan
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51Chan Ket Teck Tan Ng Kuang, NickyPeter Chay (appointed 18.1.06) Tay Swee SzeChee Yoh Chuang Yong Cherng Nan
During the year, the Committee continued to provide its views and inputs to the Insolvency & Public Trustee’s Office (IPTO) on various insolvency issues, such as matters pertaining to the administration of liquidation cases. The Committee’s Chairman and two other committee members continued to serve on the Working Group of IPTO to review and discuss the existing provisions and possible improvements in the insolvency legislation with the objective to enact a new Omnibus Insolvency Act on corporate and individual insolvency.
The Committee’s Chairman represented the Institute to attend the Seventh World Congress of INSOL International – Globalisation – The Impact on Restructuring, Turnaround and Insolvency, held in Sydney from 13 to 16 March 2005 for an exchange of information and ideas on international insolvency issues. Besides attending the congress, the IPTO had arranged a visit to meet up with the officers from the Australian Securities & Investment Commission (ASIC). The Committee’s Chairman was also invited by the Ministry of Law to study US Chapters 11 and 13 of the Bankruptcy Code, held in the United States from 24 March to 4 April 2005.
Insurance Committee
Tan Eng Seong, Phillip – Chairman Lim, Andrew Desai, Prakash Ambelal Mak Keat MengFaulkner, Paul Ngo Siew PodHoon Ching Sing, Jeremy Yee Lat Shing, Tom
The Committee continues to participate actively and contribute positively to the insurance industry by providing feedback and recommendations on various industry matters to insurance bodies and regulators, whilst handling issues raised by members.
During the year, the Committee continued with its written communications and dialogue meetings with the Insurance Department of the Monetary Authority of Singapore (ID-MAS) on the developments in the insurance sector, especially on the Risk-Based Capital Regulations, and the accounting and auditing aspects of the insurance business. The Committee also participated in the deliberation of the IASB amendments to IAS 39 Financial Instruments: Recognition and Measurement and IFRS 4 Insurance Contracts - Financial Guarantee Contracts and discussed issues relating to the implementation of FRS 104 Insurance Contracts, FRS 39 Financial Instruments: Recognition and Measurement - Financial Guarantee Contracts and Risk-Based Capital Requirements.
Investigation Committee
Kan Yaw Kiong, Ernest – Chairman Loh Yoon MinSeow Teow Han, John – Dy Chairman Ong Sim HoKamis, Rohan Lee Chow Soon (Lay Person)Lee Chee Wung
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The Committee dealt with six cases against Non-practising Members during the year in review, of which one case was dismissed, two cases were referred to the Disciplinary Committee and three cases were on-going.
Of the two cases referred to the Disciplinary Committee, one member was found guilty of professional misconduct while the other member had failed “to satisfy a judgment debt or has, individually or as a partner, made an assignment for the benefit of creditors or has, under any resolution of creditors or order of the court or any deed or document, had his estate placed in liquidation for the benefit of creditors or has made any arrangement for the payment of a composition to creditors.”
Management Accounting Committee
Chan Yoke Kai – Chairman Ghosh, B CJothidas, A – Dy Chairman Hwang Soo ChiatChee Ai-Ping, Sera Kwan Chee Wai, JamesCheng Wai Fung Low Peng Nam, EricChong Kum Fatt, Michael Navaratnam, VChung Lai Hong Ting Sie Siong, Raymond
During the year in review, the Committee deliberated and provided its comments on the Exposure Draft International Guidelines on Environmental Management Accounting (EMA) issued by the International Federation of Accountants (IFAC).
The Committee will continue to take an active role in the promulgation of management accounting guidelines in Singapore and organise seminars and workshops for the benefit of ICPAS members, especially those relevant to management accounting.
Membership Committee
Seow Teow Han, John – Chairman Tang Kok KwaiFoo Siang Guan, Ron – Dy Chairman Wong Lai YongKhoo Ho Tong – Dy Chairman Yang Ching ChaoTan Hock Chye, Eric (until 14.2.06) Yeoh Oon Jin
The Committee comprises eight members who have been appointed by the Council in accordance with Article 53.14 of the Institute’s Constitution.
The Committee makes monthly recommendations to the Council on the admission of members, fellows, membership reclassifications, resignations, reinstatements, removal of members for non-payment of the annual subscription fees and other related matters.
Public Accounting Practice Committee
Kon Yin Tong – Chairman Liew Geok Bee, LisaLee Chee Wung – Dy Chairman Luar Eng HwaTeoh Leong Kay, Danny – Dy Chairman Seow Teow Han, JohnHo Lon Gee Tan Kian Leng, ClementKhoo Ee Bin Teo Meng HuaKhoo Ho Tong
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53The Committee considers issues relating to the public accounting arena, and participates in dialogue sessions with the Accounting and Corporate Regulatory Authority (ACRA) and other relevant authorities, where the interests of Practising Members are not addressed by other ICPAS Technical committees.
During the year, the Institute, on the recommendation of the Committee and the approval of Council, provided its comments on the ACRA consultation paper on the review of the annual filing requirements for companies. The consultation paper sought views on the proposal to split the filing of annual return and annual accounts.
On 10 October 2005, the Malaysian Institute of Accountants (MIA) and the Institute of Certified Public Accountants of Singapore (ICPAS) organised a joint forum entitled “Practice Strategy & Alliance Forum” in Johor Bahru, Malaysia. The objective of the forum was to provide a platform for practitioners in both Singapore and Malaysia to meet and network, with the possible intention to either form an alliance or a merger. Representatives from the Institute’s Public Accounting Practice Committee (PAPC), Mr Kon Yin Tong and Mr Khoo Ee Bin, were invited to speak at the forum.
Mr Kon Yin Tong and his counterpart from MIA opened the forum with a welcome address. They provided a broad overview of the topics that were discussed at the forum. Guest speakers from MIA provided insights about MIA’s alliance model and merger strategy and various initiatives. Mr Kon Yin Tong summarised the current state of affairs regarding accounting standards for small and medium-sized entities and Mr Khoo Ee Bin provided an insight on the impact of audit exemption in Singapore.
In January 2006, the Institute, on the recommendation of the Committee and the approval of Council, provided its comments on the Ministry of Finance’s public consultation paper on a Unique Establishment Identifier (UEI). It is believed that a UEI for establishments in Singapore, similar to the NRIC number for individuals, simplifies both an establishment’s interactions with the Government and business-to-business interactions.
Singapore Accountancy Academy Committee
Tan Boen Eng – Chairman Quek Shi KuiKan Yaw Kiong, Ernest – Dy Chairman Seow Teow Han, JohnChew Tong Gunn Sitoh Yih PinKhoo Ho Tong Yang Ching Chao
During the year, the Committee met to set key policies and decisions to reinforce the SAA’s commitment in providing quality training. The Committee has successfully guided the Academy towards achieving its mission and vision.
In March 2005, SAA was awarded the CaseTrust for Education accreditation by the Consumer Association of Singapore. The recognition affirms SAA’s good business practice and commitment to its customers.
In November 2005, SAA was the proud recipient of the Singapore Quality Class (SQC) for Private Education Organisations (PEO) award.
The Committee will continue its supervisory role to guide SAA in its future developments in the education and training industry.
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Singapore Accountant Editorial Board
Tan Boen Eng – Chairman Low Kee YangTan Hun Tong – Dy Chairman Shee Ping Fatt, AlfredKan Yaw Kiong, Ernest Sitoh Yih PinKon Yin Tong Williams, Mitchell
The Singapore Accountant is the bi-monthly journal of the Institute. The journal keeps members abreast of the latest events and activities of the Institute as well as new developments and updates in the accountancy profession.
The Editorial Board is committed to maintaining the standard of the journal, and keeping it relevant to the needs of the readers. The Editorial Board revamped its journal in 2006. From January 2006, the journal sports a fresh new look with some adjustments to the contents. A new column entitled “People” was introduced where prominent members who hold senior positions are interviewed in each issue. Also featured under the “People” column is an interview with a Chairman / Chairperson of one of the Technical Committees in each issue.
Social Committee
Yim Kam May – Chairperson Lo Wei MinWong Lai Yong – Dy Chairperson Loo Wen LiehHeng Yeow Meng, Michael Seah Gek ChooHo Nai Chuen Tang Shiuh HueiKoh Boon Ngee, Andrew Wong Lee Eng, Elsie
The Committee organised the following social activities:
Microsoft Excel 2003 SeminarA re-run of the Microsoft Excel 2003 Seminar was held on 20 January 2005. Members picked up valuable tips on using new functions of Microsoft Excel 2003 including formulae and functions, worksheet and formatting features during the seminar.
MacRitchie Nature Trail20 members spent a relaxing Saturday morning with nature on the MacRitchie Nature Trail on 14 May 2005. Participants had the opportunity to see a community of plants and animals during the nature trail and enjoyed the Treetop Walk (250 metres free-standing suspension bridge) which was the major highlight of the event.
Talk on Traditional Chinese Medicine (TCM) and Tour of Eu Yan Sang’s Bird’s Nest GalleryA talk on Traditional Chinese Medicine (TCM) was organised on 20 August 2005. Eu Yan Sang’s clinic manager, Ms Zan Lee, shared with participants the basic concepts of TCM and taught members about common herbs and their medicinal benefits. Participants also had an educational tour of Eu Yan Sang’s Bird’s Nest Gallery following the talk.
Jewellery Art Talk and Workshop Two Jewellery Art Talk and Workshops were held in September for members who were interested in the art of jewellery making. Members were given an in-depth introduction to handmade jewellery art by speaker Ms Jestina Mona Hong. They learnt basic jewellery making techniques such as the looping and stringing methods. Each participant also brought home two pieces of their first self-created jewellery as souvenirs.
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55Computer Skills Preview WorkshopsFollowing the success of the Microsoft Excel Seminar held in January 2005, two Computer Skills Preview Workshops were organised on 29 September and 6 October respectively. The “Office Survival Skills Preview Workshop” offered training on Microsoft Excel skills such as creating shortcuts and working with editing tools while the “10 Tips for Effective Financial Presentations” allowed members to gain knowledge in creating financial presentations using Microsoft PowerPoint. Both hands-on sessions attracted more than 50 participants.
ICPAS Annual Dinner & Dance 2005 – “The Grand Shanghai”Over 350 guests and members were brought back to the era of the old Shanghai times when they attended the ICPAS Annual Dinner and Dance 2005 – “The Grand Shanghai” on 21 October 2005. The dinner was held at The Oriental, Singapore and was graced by Guest-of-Honour, Mr Raymond Lim Siang Keat, Minister for Prime Minister’s Office and Second Minister for Finance and Foreign Affairs, who delivered the keynote address. Three members were presented with the ICPAS Medal awards in recognition of their outstanding contribution to the Institute, while seven Committee members were presented with Certificates of Appreciation for their long services rendered.
Speechcraft 2005Organised jointly with the CPA Toastmasters Club, the annual Speechcraft programme was held over four sessions in October 2005. Speechcraft 2005 was conducted with the objective of helping members develop effective communication skills. Other than building a foundation in public speaking skills, members were also trained on how to give interesting speeches and presentations.
Sports Committee
Yim Kam May – Chairperson Voo Chih YeongNeo Peck Hwee, Belinda Wee Bee Lay, MayPhua Puay Heng, David Yeo Rankin Brandt
The Committee organised the following sports events:
Inter-Professional Games 2005The Institute hosted the Inter-Professional Games 2005. A total of nine games including badminton, basketball, bowling, golf, snooker, soccer, squash, table tennis and tennis were played among members of the six professional bodies of accountants, architects, doctors, engineers, lawyers, surveyors and valuers. ICPAS was the champion for the basketball, golf and table tennis tournaments and came in second for snooker. The Institute was the overall runner-up in this year’s Inter-Professional Games. The Games ended with a prize presentation ceremony cum closing dinner at the Singapore Island Country Club on 12 November 2005.
CPA Games 2005CPA Games 2005 was held during the period of August to October 2005 and saw active participation from the Commerce Team and CPA firms such as the Big Four, BDO Raffles, Chio Lim & Associates and Foo Kon Tan Grant Thornton. A total of thirteen games were played which included two new games – LAN gaming (counterstrike) and pool. PricewaterhouseCoopers emerged as the overall champion for CPA Games 2005 for winning six sports events in total. A prize presentation ceremony cum closing dinner was held at the M Hotel Singapore on 28 October 2005. The major highlight of CPA Games 2005 was the launch of the Achievement Award which would be presented to firms that have won games championship for five and ten years consecutively. The Commerce Team, Deloitte & Touche and PricewaterhouseCoopers were
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presented with the Achievement Awards as they have won the badminton, table tennis and street soccer (ladies) games for five or more consecutive years.
Task Force on Pre-admission Course
Cheng Ai Phing – Chairperson Lim Boon ChengKhoo Teng Aun Tan Mui Siang, PatriciaLee Chee Wung Toh Kian Leong, JosephLian Wee Cheow Wong Sook Yee
The Task Force comprising six Practising Members and two Non-practising Members from the NTU and SMU was set up to review the existing Pre-admission course with the view to address ACRA’s request to review the Ethics and Professional Practice subjects, as well as to evaluate the relevance of the Pre-admission course in today’s context and make necessary recommendations for improvements. During the year, the Task Force met five times and examined the best practices of the other esteemed professional bodies in United Kingdom, Australia, USA, Hong Kong and Canada on their admission requirements including membership and the courses these members are required to take prior to admission into membership. The Task Force has also studied the best practices of the esteemed overseas professional bodies on the pre-requisites and courses that an aspiring practising accountant needs to fulfill and undergo before he is granted a practising licence.
Taxation and Levies Committee
Ong Chin Guan, Noris – Chairman Ng Teck Mong, AlbertTan Boen Eng – Dy Chairman Sandison, David Jackson Low Weng Keong – Dy Chairman Sum Yee LoongBoon Suan Lee Tan, Angela Khoo Ho Tong Wong Kok YeeLiew, Winnie Wong Lai YongLo Ngai Hung Yee Fook HongMiao, Nicholas
The Committee continues to deal with the interpretation and practice aspects of tax issues raised by members and in this respect, it engages the Inland Revenue Authority of Singapore (IRAS) in dialogue meetings regularly. The Committee continues to seek clarifications, rulings and views and to relay feedback to the tax authority on various tax issues, such as matters pertaining to tax implications of FRS 39 Financial Instruments: Recognition and Measurement, benefits-in-kind, etc. and participated in IRAS’ feedback session on record keeping and filing requirements for companies.
During the year, the Committee reviewed and submitted responses to various IRAS’ circulars and consultation papers, highlighting the pertinent practical issues arising therein to IRAS. The Committee also provided its comments on consultation papers issued by the Ministry of Finance.
The Committee continues to engage members on topical tax issues to obtain feedback from members in response to proposed tax changes and to discuss the developments of a precedent case in Singapore in respect of an auditor’s/tax agent’s duty of care.
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57Representatives from the Committee continued to contribute articles to the “Tax Focus” column of the Singapore Accountant.
Working Committee for Practice Monitoring
Foong Daw Ching – Chairman Teo Boon SengLee Chee Wung Wong Sook YeeJohn Seow Teow Han
A working committee for practice monitoring was set up in 2005 to look into the request by the Accounting and Corporate Regulatory Authority (ACRA) on potential areas of collaboration with ICPAS with regard to the practice monitoring programme. The Committee held several meetings with ACRA and had submitted its proposal to ACRA for consideration.
Reports from the following committees are not available as they had no outstanding projects during the year. These Committees will be reactivated when necessary.
Education Committee
Yeo Hian Heng, Gillian – Chairperson Seet Quee LeongTan Boen Eng – Dy Chairman Shee Ping Fatt, AlfredBay, Esther Wong Phui Lun, JosephFoo Chin Yee, Linda Yee Lat Shing, TomLeong Kwong Sin
Information Technology Services Committee
Tang Kok Kwai – Chairman Lim Shien Ching, HenryLee Jeng Wah – Dy Chairman Sia Siew KienChee Hay Kheong, Daniel Themin SuwardyChin Chen Keong, John Tan Wee Peng, KelvinChong Kek Sing Thio Tse GanHooi Cheng Cheong Wee Phui Gam
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technical pronouncements31 december 2005
Financial Reporting Standards (FRS)Issued by the Council on Corporate Disclosure and Governance (CCDG)
No. Title IAS/IFRS Effective Date Equivalent FRS 1 Presentation of Financial Statements 1 1.1.05
FRS 2 Inventories 2 1.1.05
FRS 7 Cash Flow Statements 7 1.1.95
FRS 8 Accounting Policies, Changes in Accounting 8 1.1.05
Estimates and Errors
FRS 10 Events after the Balance Sheet Date 10 1.1.05
FRS 11 Construction Contracts 11 1.1.97
FRS 12 Income Taxes 12 1.4.01
FRS 14 Segment Reporting 14 1.1.00
FRS 16 Property, Plant and Equipment 16 1.1.05
FRS 17 Leases 17 1.1.05
FRS 18 Revenue 18 1.1.97
FRS 19 Employee Benefits 19 1.10.00
Amendments relating to actuarial gains and
losses, group plans and disclosures
(issued June 2005) – for reference FRS 20 Accounting for Government Grants and 20 1.1.85
Disclosure of Government Assistance
FRS 21 The Effects of Changes in Foreign Exchange Rates 21 1.1.05
FRS 23 Borrowing Costs 23 1.1.97
FRS 24 Related Party Disclosures 24 1.1.05
FRS 25 Accounting for Investments 25 1.1.88
FRS 26 Accounting and Reporting by Retirement Benefit Plans 26 1.1.88
FRS 27 Consolidated and Separate Financial Statements 27 1.1.05
FRS 28 Investments in Associates 28 1.1.05
FRS 29 Financial Reporting in Hyperinflationary Economies 29 1.4.01
FRS 31 Interests in Joint Ventures 31 1.1.05
FRS 32 Financial Instruments: Disclosure and Presentation 32 1.1.05
FRS 33 Earnings per Share 33 1.1.05
FRS 34 Interim Financial Reporting 34 1.10.01
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59Financial Reporting Standards (FRS) (cont’d)
No. Title IAS/IFRS Effective Date Equivalent FRS 36 Impairment of Assets 36 1.7.04
FRS 37 Provisions, Contingent Liabilities and Contingent Assets 37 1.10.00
FRS 38 Intangible Assets 38 1.7.04
FRS 39 Financial Instruments: Recognition and Measurement 39 1.1.05
Amendments relating to transition and initial
recognition of financial assets and financial liabilities
(March 2005) – for reference
Amendments relating to cash flow hedge accounting of
forecast intragroup transactions (Sep 2005) – for referenceFRS 40 Investment Property 40 1.1.07
FRS 41 Agriculture 41 1.10.01
FRS 101 First–time Adoption of Financial Reporting Standards IFRS 1 1.1.04
FRS 102 Share–based Payment IFRS 2 1.1.05
FRS 103 Business Combinations IFRS 3 1.7.04
FRS 104 Insurance Contracts IFRS 4 1.1.05
FRS 105 Non–current Assets Held for Sale and Discontinued IFRS 5 1.1.05
Operations
FRS 106 Exploration for and Evaluation of Mineral Resources IFRS 6 1.1.06
Exposure Drafts of Financial Reporting Standards (ED FRS) and Draft Technical Correction (DTC)Issued by the Council on Corporate Disclosure and Governance (CCDG)
Title Comment Period ExpiryDTC Draft Technical Corrections (DTC 1) to FRS 21 The Effects 19.10.05 of Changes in Foreign Exchange Rates – Net Investment
in a Foreign Operation
ED FRS Proposed Amendments to FRS 103 Business Combinations 28.9.05
ED FRS Proposed Amendments to FRS 27 Consolidated and 28.9.05
Separate Financial Statements
ED FRS Proposed Amendments to FRS 37 Provisions, Contingent 28.9.05
Liabilities and Contingent Assets and FRS 19 Employee Benefits
ED FRS Proposed Amendments to FRS 101 First–time Adoption 20.5.05
of Financial Reporting Standards
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Interpretations of Financial Reporting Standards (INT FRS)Issued by the Council on Corporate Disclosure and Governance (CCDG)
No. Title SIC/IFRIC Effective Date Equivalent INT FRS 7 Introduction of the Euro 7 1.2.03
INT FRS 10 Government Assistance – No Specific Relation 10 1.2.03
to Operating Activities
INT FRS 12 Consolidation – Special Purpose Entities 12 1.2.03
Amendment to scope of INT FRS 12
(March 2005) – for reference
INT FRS 13 Jointly Controlled Entities — Non–Monetary 13 1.2.03
Contributions by Venturers
INT FRS 15 Operating Leases – Incentives 15 1.2.03
INT FRS 21 Income Taxes – Recovery of Revalued 21 1.2.03
Non–Depreciable Assets
INT FRS 25 Income Taxes – Changes in the Tax Status of 25 1.2.03
an Enterprise or its Shareholders
INT FRS 27 Evaluating the Substance of Transactions 27 1.2.03
Involving the Legal Form of a Lease
INT FRS 29 Disclosure – Service Concession Arrangements 19 1.2.03
INT FRS 31 Revenue – Barter Transactions Involving 31 1.2.03
Advertising Services
INT FRS 32 Intangible Assets – Web Site Costs 32 1.2.03
INT FRS 101 Changes in Existing Decommissioning, Restoration IFRIC 1.9.04
and Similar Liabilities Interpretation 1
INT FRS 104 Determining whether an Arrangement contains IFRIC 1.1.06
a Lease Interpretation 4
INT FRS 105 Rights to Interests arising from Decommissioning, IFRIC 1.1.06
Restoration and Environmental Rehabilitation Interpretation 5
Funds
Exposure Drafts of Interpretations of Financial Reporting Standards (ED / INT FRS) Issued by the Council on Corporate Disclosure and Governance (CCDG)
Title Comment Period ExpiryED INT FRS FRS 102 Share–based Payment – Group and Treasury Share 18.6.05
Transactions
ED INT FRS Scope of FRS 102 Share–based Payment 18.6.05
ED INT FRS Reassessment of Embedded Derivatives 30.4.05
ED INT FRS Service Concession Arrangements – The Intangible Asset Model 2.4.05
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61Exposure Drafts of Interpretations of Financial Reporting Standards (ED / INT FRS) (cont’d)
Title Comment Period ExpiryED INT FRS Service Concession Arrangements – The Financial Asset Model 2.4.05
ED INT FRS Service Concession Arrangements – Determining the Accounting 2.4.05 Model
Singapore Standards on Auditing (SSA)
No. Title ISA Effective Date Equivalent (Annual periods beginning on or after)Preface to Singapore Standards on Quality Control, Auditing, Assurance Yes Sep 96
and Related Services
Glossary of Terms Yes –
Framework for Assurance Engagements Yes Audit report
date: 1.1.05
100 – 199 Introductory Matters
SSA 100 (superseded by SSAE 3000)
SSA 120 (superseded by Framework for Assurance Engagements)
200 – 299 General Principles and Responsibilities
SSA 200 Objective and General Principles Governing an 200 15.12.04
Audit of Financial Statements
SSA 210 Terms of Audit Engagements 210 15.12.04
SSA 220 Quality Control for Audit Work 220 1.1.97
SSA 220 (Revised) Quality Control for Audits of Historical Financial 220 15.6.05
Information (effective 15 June 2005) (Revised)
SSA 230 Documentation 230 15.12.04
SSA 230 (Revised) Audit Documentation (effective 15 June 2006) 230 15.6.06
(Revised)
SSA 240 The Auditor’s Responsibility to Consider Fraud in an 240 15.12.04
Audit of Financial Statements
SSA 250 Consideration of Laws and Regulations in an Audit 250 15.12.04
of Financial Statements
SSA 260 Communications of Audit Matters with Those 260 15.12.04
Charged with Governance
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Singapore Standards on Auditing (SSA) (cont’d)
No. Title ISA Effective Date Equivalent (Annual periods beginning on or after)
300 – 499 Risk Assessment and Response to Assessed Risks
SSA 300 Planning an Audit of Financial Statements 300 15.12.04
SSA 310 (withdrawn)
SSA 315 Understanding the Entity and Its Environment and 315 15.12.04
Assessing the Risk of Material Misstatement
SSA 320 Audit Materiality 320 15.12.04
SSA 330 The Auditor’s Procedures in Response to Assessed Risks 330 15.12.04
SSA 400 (withdrawn)
SSA 401 (withdrawn)
SSA 402 Audit Considerations Relating to Entities Using 402 15.12.04
Service Organisations
500 – 599 Audit Evidence
SSA 500 Audit Evidence 500 15.12.04
SSA 501 Audit Evidence – Additional Consideration for Specific 501 15.12.04
Items
SSA 505 External Confirmations 505 15.12.04
SSA 510 Initial Engagements – Opening Balances 510 15.12.04
SSA 520 Analytical Procedures 520 15.12.04
SSA 530 Audit Sampling and Other Means of Testing 530 15.12.04
SSA 540 Audit of Accounting Estimates 540 15.12.04
SSA 545 Auditing Fair Value Measurements and Disclosures 545 15.12.04
SSA 550 Related Parties 550 15.12.04
SSA 560 Subsequent Events 560 15.12.04
SSA 570 Going Concern 570 15.12.04
SSA 580 Management Representations 580 15.12.04
600 – 699 Using Work of Others
SSA 600 Using the Work of Another Auditor 600 1.1.97
SSA 610 Considering the Work of Internal Auditing 610 15.12.04
SSA 620 Using the Work of an Expert 620 15.12.04
700 – 799 Audit Conclusions and Reporting
SSA 700 The Auditor’s Report on Financial Statements 700 1.4.02
SSA 710 Comparatives 710 15.12.04
SSA 720 Other Information in Documents Containing Audited 720 15.12.04
Financial Statements
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63Singapore Standards on Auditing (SSA) (cont’d)
No. Title ISA Effective Date Equivalent (Annual periods beginning on or after)
800 – 899 Specialised Areas
SSA 800 The Auditor’s Report on Special Purpose Audit 800 1.1.97
Engagements
Singapore Standards on Review Engagements (SSRE)
No. Title ISRE Effective Date Equivalent (Annual periods beginning on or after)SSRE 2400 Engagements to Review Financial Statements ISRE 2400 1.1.97
(previously SSA 910)
SSRE 2410 Review of Interim Financial Information Performed ISRE 2410 15.12.06
by the Independent Auditor of the Entity
Singapore Standards on Assurance Engagements (SSAE)
No. Title ISAE Effective Date Equivalent (Annual periods beginning on or after)SSAE 3000 Assurance Engagements Other Than Audits or ISAE 3000 Audit report
Reviews of Historical Financial Information date: 1.1.05
SSAE 3400 The Examination of Prospective Financial Information ISAE 3400 1.7.01
(previously SSA 810)
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Singapore Standards on Related Services (SSRS)
No. Title ISRS Effective Date Equivalent (Annual periods beginning on or after)SSRS 4400 Engagements to Perform Agreed–Upon Procedures ISRS 4400 1.1.97
Regarding Financial Information (previously SSA 920)
SSRS 4410 Engagements to Compile Financial Information ISRS 4410 1.1.97
(previously SSA 930)
Singapore Standard on Quality Control (SSQC)
No. Title ISQC Effective Date Equivalent (Annual periods beginning on or after)SSQC 1 Quality Control for Firms that Perform Audits and ISQC 1 Date: 15.6.05
Reviews of Historical Financial Information, and
Other Assurance and Related Services Engagements
Statements of Auditing Practice (SAP)
No. Title IAPS EquivalentSAP 1 Verification of Debtor Balances – Confirmation by Direct –
Communication
SAP 2 (withdrawn)
SAP 3 Microfilm Records and their Audit Implications –
SAP 4 Existence and Valuation of Inventories in the Context of the –
Historical Cost System
SAP 5 Auditors’ Supplementary Report for Banks –
SAP 5A Auditors’ Supplementary Report for Finance Companies –
SAP 5B Auditors’ Supplementary Report for Merchant Banks –
SAP 5C (withdrawn)
SAP 5D (withdrawn)
SAP 6 (withdrawn)
SAP 7 Audit of Solicitors’ Accounts –
SAP 8 Charities –
SAP 9 Audit of Trade Unions –
SAP 10 Bank Reports for Audit Purposes –
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65Statements of Auditing Practice (SAP) (cont’d)
No. Title IAPS EquivalentSAP 11 Review of Interim Financial Information –
SAP 12 (withdrawn)
SAP 13 (withdrawn)
SAP 14 (withdrawn)
SAP 15 (withdrawn)
SAP 16 (superseded by SAP 1006)
SAP 18 Value for Money Auditing in a Statutory Board –
SAP 19 The Auditor’s Role and Responsibilities in relation to the –
Prevention, Detection and Reporting of Money Laundering
SAP 21 (superseded by SAP 1005)
SAP 24 Auditors and Public Offering Documents –
SAP 25 Audit of Listed Companies –
SAP 1000 Inter–Bank Confirmation Procedures 1000
SAP 1001 (withdrawn)
SAP 1002 (withdrawn)
SAP 1003 (withdrawn)
SAP 1005 The Special Considerations in the Audit of Small Entities 1005
SAP 1006 Audits of the Financial Statements of Banks 1006
SAP 1007 (withdrawn)
SAP 1008 (withdrawn)
SAP 1009 (withdrawn)
SAP 1010 The Consideration of Environmental Matters in the Audit 1010
of Financial Statements
SAP 1011 (withdrawn)
SAP 1012 Auditing Derivative Financial Instruments 1012
SAP 1013 Electronic Commerce – Effect on the Audit of Financial Statements 1013
SAP 1014 Reporting by Auditors on Compliance with Financial Reporting Standards 1014
Exposure Drafts of Singapore Standards on Auditing, Operations Policy and Statements of Auditing Practice (ED/SSA, ED/OP and ED/SAP)
No. TitleED/SSA Improving the Clarity of Singapore Standards on Auditing
ED/SSA 701 & 800 The Independent Auditor’s Report on Other Historical Financial Information and
The Independent Auditor’s Report on Summary Audited Financial Statements
ED 2 – SSA Proposed Pronouncements on the Auditor’s Report
ED/SAP X Reports on the Internal Control Procedures of Service Organisations
ED/SAP XX Comfort Letters and Other Assistance for Public Offerings of Equity Securities
in Singapore
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Exposure Drafts of Singapore Standards on Auditing, Operations Policy and Statements of Auditing Practice (ED/SSA, ED/OP and ED/SAP) (cont’d)
No. TitleED/SSA 260 The Auditor’s Communication with Those Charged with Governance
ED/SSA 320 Materiality in the Identification & Evaluation of Misstatements
ED/SSA 540 Auditing Accounting Estimates and Related Disclosures (Other than Those Involving
Fair Value Measurements and Disclosures)
ED/SSA 600 The Audit of Group Financial Statements
ED/SSA 705 & 706 Modifications to the Opinion in the Independent Auditor’s Report & Emphasis of
Matter Paragraphs and Other Matters Paragraphs in the Independent Auditor’s Report
ED/OP 1 Bold Type Lettering
Statements of Recommended Accounting Practice (RAP)
No. Title Last UpdateRAP 1A (withdrawn)
RAP 1 (withdrawn)
RAP 2 (withdrawn)
RAP 3 Reporting Value Added Information Jun 04
RAP 4 Accounting for Financial Futures Jun 04
RAP 5 (withdrawn)
RAP 6 Accounting and Reporting by Charities Nov 05
RAP 7 Reporting Framework for Unit Trusts May 05
RAP 8 Foreign Income Not Remitted to Singapore Nov 04
RAP 9 IPO Costs Nov 04
RAP 10 FRS 103 Business Combinations – Clarification of Transitional Dec 04
Provisions in Singapore
RAP 11 Pre–Completion Contracts for the Sale of Development Property Oct 05
Taxation and Levies Practice Guidelines (TAX)
No. TitleTAX 1 Clarifications of Tax Matters
TAX 2 Clarifications of Tax Matters
TAX 3 Clarifications of Tax Matters for the period from 1 January 1990 to 30 June 1996
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Financial Statements
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overview of consolidated financial results
2005 2004 S$000’s S$000’sMember admission & subscriptions to meet the following expenses: 2,849 2,031
- Marketing & promotion (181) (15)
- Journal & publications (277) (168)
- General & administration (2,724) (2,115)
- Practice monitoring review (62) –
Membership Services Results (395) (267)
Other Income (interest, management fee received, etc.) 1,314 959
Singapore Accountancy Academy 2,235 903
Income Tax (793) (186)
TOTAL 2,361 1,409
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We have audited the financial statements of the Institute of Certified Public Accountants of Singapore and of the group as set out on pages 70 to 92 for the year ended 31 December 2005. The financial statements comprise the balance sheets of the Institute and of the group, the income and expenditure statement, statement of changes in accumulated fund and miscellaneous fund and cash flow statement of the group, and notes thereto. These financial statements are the responsibility of the Council. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with Singapore Standards on Auditing. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the Council, as well as evaluating the overall financial statements presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion,
(i) the accompanying financial statements are properly drawn up in accordance with the Societies Act and Singapore Financial Reporting Standards so as to give a true and fair view of the state of affairs of the Institute and of the group as at 31 December 2005 and the results and statement of changes in accumulated fund and miscellaneous fund and cash flows of the group for the year ended on that date; and
(ii) the accounting and other records required by the regulations enacted under the Societies Act to be kept by the Institute have been properly kept in accordance with those regulations.
EWE, LOKE & PARTNERSCertified Public Accountants, Singapore
Singapore, 14 February 2006
auditors’ report to members of the institute of certified public accountants of singapore
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balance sheets as at 31 December 2005
Group Institute Notes 2005 2004 2005 2004 S$ S$ S$ S$
Non–current assets Property, plant and equipment 3 26,658,702 26,597,853 26,658,702 26,587,793
Current assets Trade and other receivables 4 718,030 392,272 860,979 537,401Fixed deposits 6,361,963 4,027,902 5,819,923 3,489,660Cash and bank balances 1,448,502 1,214,277 1,364,378 1,136,781 8,528,495 5,634,451 8,045,280 5,163,842 Less: Current liabilities Subscription fees received in advance 300,586 218,319 255,326 183,854Trade and other payables 5 1,008,846 1,384,817 1,006,490 1,365,839Course fees received in advance 1,834,070 1,568,817 1,834,070 1,568,817Obligations under finance leases 6 92,524 122,302 92,524 122,302Provision for income tax 637,407 185,953 636,200 185,753 3,873,433 3,480,208 3,824,610 3,426,565
Net current assets 4,655,062 2,154,243 4,220,670 1,737,277
Non–current liabilities Obligations under finance leases 6 (306,357) (161,762) (306,357) (161,762)Deferred income tax 13 (65,500) – (65,500) – (371,857) (161,762) (371,857) (161,762)Net assets 30,941,907 28,590,334 30,507,515 28,163,308 Represented by: Accumulated fund 12 30,903,592 28,542,928 30,469,200 28,115,902Miscellaneous fund 7 38,315 47,406 38,315 47,406 30,941,907 28,590,334 30,507,515 28,163,308
The accompanying notes form an integral part of and should be read in conjunction with these financial statements.
Tan Boen Eng John Seow Teow HanPresident TreasurerDated: 14 February 2006 Dated: 14 February 2006
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01.01.2005 01.04.2004 to to Notes 31.12.2005 31.12.2004 S$ S$ FEE INCOME FOR THE YEAR/PERIOD Members’ annual fees 2,434,760 1,749,409Members’ admission fees 414,500 281,600 2,849,260 2,031,009 LESS: EXPENDITURE Administrative expenses 8 (3,244,305) (2,298,165) DEFICIT FROM OPERATING ACTIVITIES (395,045) (267,156) OTHER INCOME 9 1,314,128 958,622 919,083 691,466 NET SURPLUS FROM THE ACADEMY 11 2,235,152 903,492 TOTAL SURPLUS FROM OPERATING ACTIVITIES 3,154,235 1,594,958 INCOME TAX 13 (793,571) (185,953) TOTAL SURPLUS AFTER INCOME TAX TRANSFERRED TO ACCUMULATED FUND 2,360,664 1,409,005
consolidated income and expenditure statement for the year ended 31 December 2005
The accompanying notes form an integral part of and should be read in conjunction with these financial statements.
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consolidated statement of changes in accumulated fund and miscellaneous fundfor the year ended 31 December 2005
Notes Accumulated Miscellaneous Fund Fund Total S$ S$ S$
Transferred from the Institute as a statutory entity 27,133,923 67,003 27,200,926 Total surplus for the period 1,409,005 – 1,409,005Net decrease for the period 7 – (19,597) (19,597) Balance at 31 December 2004 28,542,928 47,406 28,590,334 Total surplus for the year 2,360,664 – 2,360,664Net decrease for the year 7 – (9,091) (9,091) Balance at 31 December 2005 30,903,592 38,315 30,941,907
The accompanying notes form an integral part of and should be read in conjunction with these financial statements.
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01.01.2005 01.04.2004 to to 31.12.2005 31.12.2004 S$ S$ CASH FLOWS FROM OPERATING ACTIVITIES Total surplus before tax 3,154,235 1,594,958 Adjustments for: Depreciation for property, plant and equipment 431,015 406,433 Interest expense 26,135 27,559 Interest income (97,449) (23,213) Gain on disposal of property, plant and equipment (40) (134) Property, plant and equipment written off 1,532 1,525 Allowance for doubtful receivables – 24,547
OPERATING SURPLUS BEFORE WORKING CAPITAL CHANGES 3,515,428 2,031,675 (Increase)/decrease in trade & other receivables (280,192) 330,985 Increase/(decrease) in subscription fees received in advance 82,267 (1,498,835) (Decrease)/increase in trade & other payables (375,971) 135,513 Increase in course fees received in advance 265,253 452,573 Decrease in miscellaneous fund (9,091) (19,597)Cash generated from operations 3,197,694 1,432,314 Income tax paid (276,617) –Net cash from operating activities 2,921,077 1,432,314 CASH FLOWS FROM INVESTING ACTIVITIES Interest received 51,883 11,462 Purchase of property, plant and equipment (271,166) (109,933) Proceeds from disposal of property, plant and equipment 189,980 1,400Net cash used in investing activities (29,303) (97,071) CASH FLOWS FROM FINANCING ACTIVITIES Interest paid (26,135) (27,559) Repayment of finance lease liabilities (297,353) (90,723)Net cash used in financing activities (323,488) (118,282) NET INCREASE IN CASH AND CASH EQUIVALENTS 2,568,286 1,216,961
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR/ TRANSFERRED FROM THE INSTITUTE AS A STATUTORY ENTITY 5,242,179 4,025,218
CASH AND CASH EQUIVALENTS AS AT END OF YEAR/PERIOD (NOTE 14) 7,810,465 5,242,179
consolidated cash flow statement for the year ended 31 December 2005
The accompanying notes form an integral part of and should be read in conjunction with these financial statements.
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These notes form an integral part of and should be read in conjunction with the accompanying financial statements.
1 GENERAL
The Institute is the national organisation of the accountancy profession in Singapore. It was established in June 1963 as the Singapore Society of Accountants (SSA) under the SSA Ordinance 1963, then reconstituted and renamed the Institute of Certified Public Accountants of Singapore (ICPAS) on 11 February 1989 under the Accountants Act 1987. As of 1 April 2004, ICPAS is reconstituted as a society under the Societies Act. The restructuring is primarily a change of form for the Institute as ICPAS continues to be the national body for the accountancy profession in Singapore and its functions remain unchanged. The registered office and principal place of business of the Institute is located at 20 Aljunied Road, #06-02 CPA House, Singapore 389805.
The financial statements of the Institute for the year ended 31 December 2005 were authorised for issue in accordance with a resolution of the Council on 14 February 2006. The principal activities of the Institute are those of administering the Institute’s membership, catering for the training and professional development of its members.
2 SIGNIFICANT ACCOUNTING POLICIES
2.1 Statement of Compliance
The financial statements of the Institute and its subsidiary companies have been prepared in accordance with the Societies Act and Singapore Financial Reporting Standards (FRS).
In the current financial year, the Group has adopted all relevant, new or revised FRS and Interpretations effective from 1 January 2005.
The comparative figures for the previous year have been adjusted or extended, where necessary, to take into account the impact of the Group’s implementation of the new or revised FRS and Interpretations. However, none of these amendments has affected the results of current or prior years/periods.
The Group has not applied any new standard or interpretation that has been issued but is not yet effective. The new standards that have been issued and not yet effective do not have any impact on the results of current or prior years/periods.
2.2 Basis of Consolidation
The consolidated financial statements include the financial statements of the Institute and its subsidiaries (companies which the Institute has control and power to govern the financial and operating policies) made up to the end of the financial year. All significant inter-company transactions have been eliminated and the consolidated financial statements reflect external transactions only. The results of subsidiary companies acquired during the year are included in the consolidated income and expenditure statement from the date of its acquisition and the results of those disposed of during the year are included up to the date of disposal.
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2.3 Basis of Accounting
The financial statements of the Institute and its subsidiary companies have been prepared under the historical cost convention.
2.4 Property, Plant and Equipment
Property, plant and equipment are stated at cost less accumulated depreciation and impairment to date. Depreciation of property, plant and equipment is calculated on the straight line basis to write off the cost of the assets over their estimated useful lives. The estimated useful lives have been taken as follows:
Freehold building 50 yearsFurniture and office equipment 3 to 10 yearsComputers 3 to 4 yearsRenovation 3 to 5 years
No depreciation is provided on the cost of freehold land.
Fully depreciated assets are retained in the financial statements until such time when they are no longer in use.
2.5 Leased Assets
Where assets are financed by lease agreements that give rights approximating to ownership, the assets are capitalised as if they have been purchased outright at the values equivalent to the present value of the total rental payable during the periods of the leases and the corresponding lease commitments are included under liabilities. The excess of the lease payments over the recorded lease obligations is treated as finance charges which are amortised over each lease term to give a constant rate of charge on the remaining balance of the obligation. Depreciation of these assets is charged to income and expenditure statement on the basis outlined in paragraph 2.4 above.
Rental on operating leases is charged to income and expenditure statement.
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2.6 Impairment of Assets
Assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Whenever the carrying amount of an asset exceeds its recoverable amount, an impairment loss is recognised in income and expenditure statement. The recoverable amount is the higher of an asset’s net selling price and value in use. The net selling price is the amount obtainable from the sale of an asset in an arm’s length transaction. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. Recoverable amounts are estimated for individual assets or, if it is not possible, for the cash-generating unit.
Reversal of an impairment loss recognised in prior years is recorded when there is an indication that the impairment loss recognised for an asset no longer exists or has decreased. The reversal is recorded in income and expenditure statement.
2.7 Trade and other Receivables
Trade and other receivables are recognised and carried at original invoice amount or cost less impairment losses on any uncollectible amount.
2.8 Trade and other Payables
Trade and other payables are carried at amortised cost.
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. Where the effect of time value of money is material, the amount of the provision is the present value of the expenditure expected to be required to settle the obligation.
2.9 Income Recognition
Members’ annual and admission fees, students’ fees and students’ administration fees and CATS & ATTS fees are recognised when due.
Course fees (from continuing professional education and training) are recognised when the services are rendered.
Advertising income is recognised when advertisement is placed.
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2.9 Income Recognition (cont’d)
Interest income is recognised as the interest accrues based on effective interest rate method unless collectibility is in doubt.
Management fee charged to the Academy is recognised when due.
Sundry income, arising mainly from the sale of Members’ Handbooks, are recognised when the goods sold are delivered.
2.10 Employee Benefits
Pension Obligations
As required by law, the Institute makes contributions to the state pension scheme, the Central Provident Fund (CPF). CPF contributions are recognised as compensation expense in the same period as the employment that gives rise to the contribution.
Employee Leave Entitlement
Employee entitlements to annual leave are recognised when they accrue to employees. A provision is made for the estimated liability for leave as a result of services rendered by employees up to the balance sheet date.
2.11 Foreign Currency Translation
Measurement currency
Items included in the consolidated financial statements are measured using the currency that best reflects the economic substance of the underlying events and circumstances relevant to the Institute and its subsidiary companies. The consolidated financial statements are presented in Singapore dollars, which is the measurement currency of the Institute and its subsidiary companies.
Transactions and balances
Transactions in foreign currencies are measured and recorded in Singapore dollars, using the exchange rate in effect at the date of the transaction. Monetary assets and liabilities in foreign currencies are translated into Singapore dollars at rates of exchange approximating those ruling at the balance sheet date. All exchange adjustments are taken to the income and expenditure statement.
notes to the financial statements31 December 2005
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2.12 Income Tax
Income tax for the financial year comprises current and deferred tax. Income tax is recognised in the income and expenditure statement except to the extent that it relates to items recognised directly in equity, in which such tax is recognised in equity.
Deferred income tax is provided, using the liability method, on all temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred tax liabilities are recognised for all taxable temporary differences.
Deferred tax assets are recognised for all deductible temporary differences, carryforward of unused tax losses and unused tax credits to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences, carryforward of unused tax losses and tax credits can be utilised. The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on tax rates that have been enacted or substantively enacted at the balance sheet date.
notes to the financial statements31 December 2005
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3 PROPERTY, PLANT AND EQUIPMENT
Group Furniture Freehold Freehold & Office Land Building Equipment Computers Renovation Total S$ S$ S$ S$ S$ S$ Cost Transferred from the Institute as a statutory entity as at 1 April 2004 20,176,000 6,584,501 1,709,723 823,848 881,030 30,175,102Additions - - 108,235 24,678 - 132,913Disposals - - (4,560) - - (4,560)Written off - - (28,570) (103,899) (4,485) (136,954)Balance as at 31 December 2004 20,176,000 6,584,501 1,784,828 744,627 876,545 30,166,501 Balance as at 1 January 2005 20,176,000 6,584,501 1,784,828 744,627 876,545 30,166,501Additions - - 582,597 100,739 - 683,336Disposals - - (844,510) - (38,606) (883,116)Written off - - (104,056) (4,940) (25,848) (134,844)Balance as at 31 December 2005 20,176,000 6,584,501 1,418,859 840,426 812,091 29,831,877
Accumulated Depreciation Transferred from the Institute as a statutory entity as at 1 April 2004 - 823,063 1,098,224 584,727 794,924 3,300,938Charged for the period - 98,766 179,532 104,312 23,823 406,433Disposals - - (3,294) - - (3,294)Written off - - (28,570) (103,578) (3,281) (135,429)Balance as at 31 December 2004 - 921,829 1,245,892 585,461 815,466 3,568,648 Balance as at 1 January 2005 - 921,829 1,245,892 585,461 815,466 3,568,648Charged for the year - 131,690 167,730 103,490 28,105 431,015Disposals - - (654,570) - (38,606) (693,176)Written off - - (102,829) (4,940) (25,543) (133,312)Balance as at 31 December 2005 - 1,053,519 656,223 684,011 779,422 3,173,175 Net Book Value Balance as at 31 December 2004 20,176,000 5,662,672 538,936 159,166 61,079 26,597,853 Balance as at 31 December 2005 20,176,000 5,530,982 762,636 156,415 32,669 26,658,702
notes to the financial statements31 December 2005
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3 PROPERTY, PLANT AND EQUIPMENT (cont’d)
Institute Furniture Freehold Freehold & Office Land Building Equipment Computers Renovation Total S$ S$ S$ S$ S$ S$
Cost Transferred from the Institute as a statutory entity as at 1 April 2004 20,176,000 6,584,501 1,692,712 823,848 860,945 30,138,006Additions - - 108,235 24,678 - 132,913Written off - - (28,570) (103,899) (760) (133,229)Balance as at 31 December 2004 20,176,000 6,584,501 1,772,377 744,627 860,185 30,137,690 Balance as at 1 January 2005 20,176,000 6,584,501 1,772,377 744,627 860,185 30,137,690Additions - - 582,597 100,739 - 683,336Disposals - - (844,510) - (38,606) (883,116)Written off - - (91,605) (4,940) (9,488) (106,033)Balance as at 31 December 2005 20,176,000 6,584,501 1,418,859 840,426 812,091 29,831,877
Accumulated Depreciation Transferred from the Institute as a statutory entity as at 1 April 2004 - 823,063 1,091,100 584,727 786,526 3,285,416Charged for the period - 98,766 175,405 104,312 18,906 397,389Written off - - (28,570) (103,578) (760) (132,908)Balance as at 31 December 2004 - 921,829 1,237,935 585,461 804,672 3,549,897 Balance as at 1 January 2005 - 921,829 1,237,935 585,461 804,672 3,549,897Charged for the year - 131,690 163,770 103,490 22,651 421,601Disposals - - (654,570) - (38,606) (693,176)Written off - - (90,912) (4,940) (9,295) (105,147)Balance as at 31 December 2005 - 1,053,519 656,223 684,011 779,422 3,173,175
Net Book Value Balance as at 31 December 2004 20,176,000 5,662,672 534,442 159,166 55,513 26,587,793 Balance as at 31 December 2005 20,176,000 5,530,982 762,636 156,415 32,669 26,658,702
notes to the financial statements31 December 2005
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3 PROPERTY, PLANT AND EQUIPMENT (cont’d)
In accordance with the Constitution of the Institute, the freehold land and freehold building was transferred to Institute of Certified Public Accountants of Singapore Pte Ltd which holds the freehold land and freehold building in trust for the Institute.
LocationFreehold property CPA House 20 Aljunied Road Singapore 389805 Consisting of 5 floors (Units #01–01, #01–03, #01–04, #01–05, #01–06, #02–01, #02–02, #04–01, #04–02, #05–01, #05–02, #06–01 and #06–02) and totalling 2,779 sq. meters Additions in property, plant and equipment include $412,170 (2004: $22,980) under finance leases.
Net book value of property, plant and equipment under finance lease agreements amounted to S$394,114 (2004: S$214,384).
The depreciation for the year/period is charged to the income and expenditure statement as follows:
Group 01.01.2005 01.04.2004 to to 31.12.2005 31.12.2004 S$ S$ The Secretariat (Note 8.1) 227,777 196,523The Practice Monitoring Division (Note 10) 563 –The Academy (Note 11.1) 43,068 33,110The Academy (Note 11.2) 159,607 176,800 431,015 406,433
notes to the financial statements31 December 2005
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4 TRADE AND OTHER RECEIVABLES
Group Institute 2005 2004 2005 2004 S$ S$ S$ S$ Trade receivables 320,303 285,018 320,303 285,018 Less: Allowance for doubtful receivables (41,430) (61,334) (41,430) (61,334) 278,873 223,684 278,873 223,684
Deposits 113,926 22,600 104,926 13,600Interest receivable 59,525 13,959 56,462 12,446Others 20,448 19,851 20,418 19,851Prepayments 243,553 110,493 243,553 110,213Related party (note 16) 1,705 1,685 1,705 1,685Subsidiaries (note 15) – – 155,042 155,922 718,030 392,272 860,979 537,401
Movements in allowance for doubtful receivables:
Group Institute 01.01.2005 01.04.2004 01.01.2005 01.04.2004 to to to to 31.12.2005 31.12.2004 31.12.2005 31.12.2004 S$ S$ S$ S$ Balance at beginning of year/ transferred from the Institute as a statutory entity 61,334 37,572 61,334 37,572Additions during the year/period – 24,547 – 24,547Doubtful receivables recovered (15,064) (785) (15,064) (785)Written off against provision (4,840) – (4,840) –Balance at end of year/period 41,430 61,334 41,430 61,334
notes to the financial statements31 December 2005
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5 TRADE AND OTHER PAYABLES
Group Institute 2005 2004 2005 2004 S$ S$ S$ S$ Trade payables 285,965 242,537 285,965 242,537Accrued operating expenses 432,808 865,300 430,452 846,322Provisions 290,073 276,980 290,073 276,980 1,008,846 1,384,817 1,006,490 1,365,839
6 OBLIGATIONS UNDER FINANCE LEASES
Group & Institute Minimum Lease Present Value Payments of Payments
2005 2004 2005 2004 S$ S$ S$ S$ Within one year 107,748 159,348 92,524 122,302After one year but not more than five years 352,387 190,135 306,357 161,762Total minimum lease payments 460,135 349,483 398,881 284,064Less: Finance charges (61,254) (65,419) – –
Present value of minimum lease payments 398,881 284,064 398,881 284,064
At the expiration of the finance lease agreements, the Institute has the option to purchase the assets for S$6,280 (2004: $65,280). In the event that the option is not exercised, the lessor has the right to sell the assets to a third party and the Institute has undertaken to indemnify the lessor for the difference if the selling price is lower than the residual value of S$6,280 (2004: $65,280).
The effective rate of interest is approximately 6% to 9.6% per annum.
7 MISCELLANEOUS FUND
7.1 This comprises: Group & Institute 2005 2004 S$ S$ Community Service Project Fund (Note 7.2) 38,315 47,406
Balance at end of year/period 38,315 47,406
notes to the financial statements31 December 2005
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7 MISCELLANEOUS FUND (cont’d)
7.2 Community Service Project Fund
The fund is made up of donations from members, money from fund–raising projects and contributions from the Institute. It is used for the Institute’s community service projects. It is made up as follows:
Group & Institute 01.01.2005 01.04.2004 to to 31.12.2005 31.12.2004 S$ S$
Balance at beginning of year/transferred from the Institute as a statutory entity 47,406 67,003Add: Donations from members 18,944 2,111Less: Community service projects funded during the year/period (28,035) (21,708)Balance at end of year/period 38,315 47,406
8 ADMINISTRATIVE EXPENSES
8.1 SECRETARIAT
Group 01.01.2005 01.04.2004 to to 31.12.2005 31.12.2004 S$ S$
Auditors’ remuneration 15,300 11,350Computer and office equipment maintenance 11,200 6,992CPF 157,466 116,556Depreciation of property, plant and equipment (Note 3) 227,777 196,523Employee benefit expenses 20,540 13,313Finance costs – Interest on finance lease 1,954 1,466Fixed assets written off 646 1,204Gain on disposal of fixed assets – (134)General expenses 90,614 59,072ICPAS scholarship 9,000 16,500Incorporation fee – 1,000Insurance premiums 8,571 7,196Journal and publication 276,918 167,752Legal and professional fees 5,020 28,000Library expenses 12,945 11,677
notes to the financial statements31 December 2005
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8 ADMINISTRATIVE EXPENSES (cont’d)
8.1 SECRETARIAT (cont’d)
Group 01.01.2005 01.04.2004 to to 31.12.2005 31.12.2004 S$ S$
Lights and power 31,060 21,978Marketing and promotion 180,991 15,041Office maintenance and air conditioning 152,759 110,891Postage and telecommunications 29,793 34,633Practice Monitoring Division (Note 10) 62,188 –Printing and stationery 22,512 30,020Property tax 59,940 44,955Regional and international conferences 104,470 56,323Rental expenses 58,567 57,540Salaries and bonuses 1,339,842 986,408Social and hospitality 208,486 173,213Subscriptions to accountancy bodies 106,502 83,691Transport 4,533 3,230Website expenses 44,711 41,775 3,244,305 2,298,165
9 OTHER INCOME
Group 01.01.2005 01.04.2004 to to 31.12.2005 31.12.2004 S$ S$
Advertising income 100,387 71,199CATS & ATTS fees 287,196 232,798Doubtful receivables recovered 3,285 – Interest income from fixed deposits and bank balances 97,449 23,213Management fee charged to the Academy 730,000 547,500Penalty fees 5,130 2,110Sundry income 89,422 75,362Website income 1,259 6,440 1,314,128 958,622
notes to the financial statements31 December 2005
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notes to the financial statements31 December 2005
10 PRACTICE MONITORING DIVISION
Group 01.01.2005 01.04.2004 to to 31.12.2005 31.12.2004 S$ S$
Fee income – – Less: Expenses Administrative expenses 5,182 – CPF 5,108 Depreciation of property, plant and equipment (Note 3) 563 – Salaries and bonuses 51,335 – (62,188) –Net deficit (62,188) –
11 NET SURPLUS FROM THE ACADEMY
11.1 Continuing Professional Education (CPE) Group
01.01.2005 01.04.2004 to to 31.12.2005 31.12.2004 S$ S$
Fee income 1,805,535 879,587Doubtful receivables recovered 11,779 520Gain on disposal of fixed assets 9 – 1,817,323 880,107Less: Expenses Administrative expenses 508,229 283,213 Allowance for doubtful receivables – 24,048 Course materials 61,768 37,907 CPF 28,768 15,605 Depreciation of property, plant and equipment (Note 3) 43,068 33,110 Exchange gain (55) (13) Lecturers’ fees 595,118 331,575 Property, plant and equipment written off 188 50 Salaries and bonuses 238,616 138,170 (1,475,700) (863,665)Surplus on CPE 341,623 16,442
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11 NET SURPLUS FROM THE ACADEMY (cont’d)
11.2 Training Courses for ACCA, ATT, CAT, PAC, SAT, STT and Others
Group 01.01.2005 01.04.2004 to to 31.12.2005 31.12.2004 S$ S$
Fee income 6,736,223 4,699,352Doubtful receivables recovered – 265Gain on disposal of fixed assets 31 – 6,736,254 4,699,617Less: Expenses Administrative expenses 1,474,194 1,134,779 Allowance for doubtful receivables – 499 Course manuals 400,858 319,071 CPF 106,612 83,326 Depreciation of property, plant and equipment (Note 3) 159,607 176,800 Exchange gain (206) (70) Interest on finance lease 24,181 26,093 Lecturers’ fees 1,779,015 1,333,995 Property, plant and equipment written off 698 271 Salaries and bonuses 897,766 737,803 (4,842,725) (3,812,567)Surplus on training courses 1,893,529 887,050Net surplus 2,235,152 903,492
12 ACCUMULATED FUND
Movement in Accumulated Fund for the Institute is as follows:
Institute 2005 2004 S$ S$
Balance at beginning of year/transferred from the Institute as a statutory entity 28,115,902 26,718,967Total surplus for the year/period 2,353,298 1,396,935Balance at end of year/period 30,469,200 28,115,902
notes to the financial statements31 December 2005
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13 INCOME TAX Group
01.01.2005 01.04.2004 to to 31.12.2005 31.12.2004 S$ S$
Current tax expense 637,407 185,953Underprovision in prior year 90,664 –Deferred tax expense 65,500 – 793,571 185,953
Reconciliation between the average effective tax rate and the applicable tax rate: Group
01.01.2005 01.04.2004 to to 31.12.2005 31.12.2004 % %
Statutory tax rate 20.0 20.0Tax effect of expenses that are not deductible for tax purposes 1.1 1.6Effect on deferred tax liabilities/(assets) not recognised in prior year 1.7 (0.2)Effect on deferred tax assets/(liabilities) not recognised in current year * (3.3)Prior year underprovision 2.9 –Tax exemption (0.4) (0.7)Others (0.1) (5.7)Average effective tax rate 25.2 11.7 * denotes a percentage of less than 0.1
Deferred income tax liabilities Group & Institute
01.01.2005 01.04.2004 to to 31.12.2005 31.12.2004 S$ S$
Deferred tax liabilities Differences between tax and book depreciation 65,500 –
notes to the financial statements31 December 2005
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13 INCOME TAX (Cont’d)
Deferred tax assets have not been recognised in respect of the following items:–
Group 2005 2004 S$ S$ Deductible temporary differences and unused tax losses 907 765
Deferred tax assets have not been recognised in respect of these items because the availability of future taxable profit is still uncertain against which the subsidiary companies can utilise the benefits.
14 CASH AND CASH EQUIVALENTS
Cash and cash equivalents consist of cash and bank balances and fixed deposits. Cash and cash equivalents in the cash flow statement comprise the following balance sheet accounts:
Group 2005 2004 S$ S$ Fixed deposits 6,361,963 4,027,902Cash and bank balances 1,448,502 1,214,277 7,810,465 5,242,179
Fixed deposits carry effective interest rates of 0.5% to 2.8125% (2004: 0.5% to 1.55%) per annum.
The maturity dates of these fixed deposits ranged from 9 January 2006 to 2 July 2007 (2004: from 10 January 2005 to 21 August 2006).
15 SUBSIDIARY COMPANIES AND INTER-COMPANIES TRANSACTIONS
Association of Taxation Technicians (S) Limited (ATTS), Certified Accounting Technicians (Singapore) Ltd (CATS) and Institute of Certified Public Accountants of Singapore Pte Ltd (ICPAS PL) are deemed to be the subsidiary companies of the Institute as Council Members of the Institute directly control ATTS, CATS and ICPAS PL.
notes to the financial statements31 December 2005
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15 SUBSIDIARY COMPANIES AND INTER-COMPANIES TRANSACTIONS (cont’d)
During the financial year, the Institute has the following significant transactions with the subsidiaries on terms agreed between the parties. The amount due from subsidiaries is unsecured, interest-free and with repayment on demand.
01.01.2005 01.04.2004 to to 31.12.2005 31.12.2004 $ $
Management fee income 166,000 109,750
16 RELATED PARTIES
Singapore Institute of Taxation Limited (SIT) and Insolvency Practitioners Association of Singapore Limited (IPAS) are related parties to the Institute as one of the directors of these companies is a Council Member of the Institute representing the Institute in these companies.
17 CONTINGENT LIABILITY
There was secured contingent liability not provided for in the financial statements as follows:
Institute 2005 2004 S$ S$
Bankers’ guarantee (secured on fixed deposits) – 8,500
18 OPERATING LEASE COMMITMENTS
As at balance sheet date, the commitments in respect of operating leases with a term of more than one year were as follows:
Group 2005 2004 S$ S$
Within one year 321,037 48,000Within two to five years 43,778 52,000
notes to the financial statements31 December 2005
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19 RISK MANAGEMENT
The main risks arising from the Group’s financial management are interest rate risk, credit risk, liquidity risk and foreign currency risk. The Group reviews and agrees policies for managing each of these risks and they are summarised below:
Interest rate risk
The Group is exposed to interest rate risk through the impact of rate changes on interest bearing debts and cash and fixed deposits. The Group’s policy is to manage its interest cost using a mix of fixed and variable rate debt.
Credit risk
The Group involves the risk that counterparties may be unable to meet the terms of their agreements. The Group has no major concentration of credit risk.
The Group places its cash and fixed deposits with creditworthy institutions.
The carrying amount of financial assets recorded in the financial statements, net of any provision of losses, represents the Group’s maximum exposure to credit risk without taking account of the value of any collateral or other security obtained. Liquidity risk
In the management of liquidity risk, the Group monitors and maintains a level of cash and bank balances deemed adequate by the Management to finance the Group’s operations and mitigate the effects of fluctuations in cash flows.
Foreign currency risk
The Group’s foreign currency risk results mainly from cash flows and transactions denominated in foreign currencies. It is the Group’s policy not to enter into derivative forward foreign exchange contracts for hedging and speculative purposes.
The Group has no significant exposure in foreign currency held in financial assets and liabilities.
Fair value of financial assets and financial liabilities
The carrying amount of financial assets and financial liabilities recorded in the financial statements represents their respective net fair values.
notes to the financial statements31 December 2005
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20 COMPARATIVE FIGURES
The financial statements for 2005 cover the twelve-month period from 1 January 2005 to 31 December 2005 and the financial statements for the preceding year cover the nine-month period from 1 April 2004 to 31 December 2004.
notes to the financial statements31 December 2005
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93statistical highlightsof the years 2000 to 2005ACTIVITIES 2000 2001 2002 2003 20042 20043 2005
Number of Committees 39 34 34 34 34 32 33
Number of Meetings 97 73 69 62 84 66 67
Publications of the Institute 16 13 15 16 18 17 20
Courses and Talks 160 231 240 191 233 134 244
Conferences – 1 – – – 1 1
MEMBERSHIP
Number of Members 13,990 14,720 15,438 16,085 16,265 16,558 17,328
Total Subscriptions $1,956,120 $2,068,530 $2,163,865 $2,255,485 $2,831,150 $1,749,409 $2,434,760
Total Secretariat’s Expenses $1,800,071 $1,941,665 $1,843,136 $1,819,537 $2,235,724 $1,636,702 $3,125,387
Average Subscription per Member1 $140 $141 $140 $140 $174 $106 $141
Average Expenses per Member1 $129 $132 $119 $113 $137 $99 $180
TOTAL REVENUE $10,273,448 $10,486,384 $11,288,452 $11,272,757 $13,673,942 $7,895,622 $12,716,9654
TOTAL EXPENSES $7,679,669 $7,561,466 $7,947,784 $7,699,283 $9,616,655 $6,312,934 $9,562,7304
INCOME TAX – – – – – $185,753 $793,5714
TOTAL SURPLUSFOR THE YEAR $2,593,779 $2,924,918 $3,340,668 $3,573,474 $4,057,287 $1,396,935 $2,360,6644
1 This is based solely on members’ subscriptions and does not take into account other sources of income.2 The statistics are for a 15-month period from 1st January 2003 to 31st March 2004.3 The statistics are for a 9-month period from 1st April 2004 to 31st December 2004.4 Consolidated figures.
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THE SCHEDULE
Rule 12
THE INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTSOF SINGAPORE (GENERAL MEETINGS) RULES
I, of
being a member of the Institute, do hereby appoint
of , or failing him
of as my proxy to vote for me at the Annual
General Meeting of the Institute to be held on 22 April 2006 and any adjournment of such meeting.
Dated this day of 2006
Signed by )
in the presence of )
member of the Institute of Certified )
Public Accountants of Singapore, of )
(Address) )
) (Signature of member)
)
)
(Signature of Witness)
NOTE: A member entitled to vote may appoint as his proxy any other member who is qualified to vote, except that no member shall be entitled to vote by proxy in the election of a member or members of the Council. [Rule 11, ICPAS (General Meetings) Rules]
The instrument of proxy shall be in the form set out in the Schedule and shall be signed in the presence of another member, other than the proxy holder, who is entitled to vote. [Rule 12, ICPAS (General Meetings) Rules]
The proxy shall not be entitled to vote at a meeting unless the instrument of proxy has been deposited with the Executive Director not less than 48 hours before the date and time fixed for the meeting. [Rule 15, ICPAS (General Meetings) Rules]
form of proxy
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w w w . i c p a s . o r g . s g
Institute of Certified Public Accountants of Singapore20 Aljunied Road, #06-02 CPA House, Singapore 389805Tel (65) 6749 8060 Fax (65) 6749 8061Email [email protected] www.icpas.org.sg
