FOUNDATION PROGRAMME SINGAPORE QP SYLLABUS HANDBOOK

 
FOUNDATION PROGRAMME SINGAPORE QP SYLLABUS HANDBOOK
S INGAPO RE QP SY L L A B U S H A NDB O O K
FOUNDATION PROGRAMME
2013-2014

                        SINGAPORE QP SYLLABUS HANDBOOK — FOUNDATION PROGRAMME | 1
S INGAPO RE QP SY L L A B U S H A NDB O O K
FOUNDATION PROGRAMME
2013-2014

Sin g a p o re QP Sylla b us H a ndbo o k

© 2013-2014 Singapore Accountancy Commission
                                            SINGAPORE QP SYLLABUS HANDBOOK — FOUNDATION PROGRAMME | 2
Singapore Qualification Programme

The Singapore Qualification Programme (Singapore QP) is a post-university professional accountancy qualification with
3 main components:

1. Academic Base;
2. Professional Programme; and
3. Practical Experience.

The inter-relationships between these components are shown in the following diagram:

                                      CHARTERED ACCOUNTANT OF SINGAPORE

                                      SINGAPORE QUALIFICATION PROGRAMME

                            PROFESSIONAL PROGRAMME                                   PRACTICAL EXPERIENCE

                                 Integrative Business Solutions

                                                                                            Minimum 3 years
                       Financial Reporting                 Assurance                      experience within a
                                                                                        training commitment in
                        Business Value,                                                  an Accredited Training
                      Governance and Risk                   Taxation                    Organisation supervised
                                                                                        by an Approved Mentor

                                   Ethics and Professionalism

                                                       ACADEMIC BASE

                                                                          Foundation Programme
                                       Accredited Degree
                                        in Accountancy
                                                                          Non-Accredited Degree

                                                                SINGAPORE QP SYLLABUS HANDBOOK — FOUNDATION PROGRAMME | 3
PROGRAMME OBJECTIVE

The Foundation Programme provides a pathway into the Singapore QP for candidates who do not have an Accredited
Accountancy Degree. The Foundation Programme of the Academic Base will develop in graduates the base technical
knowledge and skills as well as capacities for inquiry, abstract logical thinking, critical analysis, appropriate communication,
personal and interpersonal skills required by the accounting profession. These provide a base for further development during
the Professional Programme and Practical Experience.

The Foundation Programme covers a set of 6 core syllabus areas:
1. Financial Accounting and Reporting;
2. Management Accounting;
3. Financial Management;
4. Audit and Assurance;
5. Singapore Law; and
6. Singapore Taxation.

Candidates will be assessed on these areas using examinations conducted by an Accredited Learning Organisation. Candidates
with accounting and business related qualifications may apply to the SAC with their transcripts for exemptions against 1 or more
areas of the Foundation Programme.

                                                           SINGAPORE QP SYLLABUS HANDBOOK — FOUNDATION PROGRAMME | 4
FINANCIAL ACCOUNTING
& REPORTING SYLLABUS

    Rationale

    The Financial Accounting & Reporting (FAR) module provides               AIM
    students with a solid grounding in the basics of double entry
                                                                             To   develop       knowledge    and    skills   in
    bookkeeping, thereby enabling students to prepare financial
                                                                             understanding      and   applying     accounting
    statements for both single entity and group entities applying
                                                                             standards and the theoretical framework in the
    the Singapore Financial Reporting Standards (SFRS). Students
                                                                             preparation for financial statements of entities,
    are expected to interpret financial statements for different types
                                                                             including group entities and analysing and
    of business entities to different stakeholders, recognising the
                                                                             interpreting those financial statements.
    various needs of the respective stakeholders.

STUDENTS SHOULD BE ABLE TO:
A Discuss the need for and the components           D Review a set or extracts of financial statements and compute financial
of a conceptual and regulatory framework,           ratios to identify and advise on the key trends, reasons for and possible
considering alternative models and practices.       implications of these trends for different types of businesses and
Recognise and account for the changes in            stakeholders. Outline the limitations of interpretation techniques on
accounting policies and correction of prior         financial statements.
period errors.
                                                    Guidance on the weighting of areas within any given examination is
B Describe and apply the double entry system        outlined in the relational diagram below.
based on the accounting treatments prescribed
by SFRS to different business transactions for
a Singapore business entity. Prepare relevant          ILLUSTRATIVE RELATIONAL DIAGRAM OF SYLLABUS OUTLINE

extracts of financial statements, as appropriate.

C    Prepare     consolidated    accounts     for      A conceptual and regulatory framework
subsidiaries and associates under a business                   for financial reporting
                                                                   (A) up to 10%
combination. Determine and account for
the components of goodwill, inter-group
trading and inter-group indebtedness. Explain
circumstances when management may wish                   Financial statements (B) 40%-60%
and can claim exemption from preparing                                                                      Analysing and
consolidated financial statements.                                                                           interpreting
                                                                                                                financial
                                                                                                              statements
                                                                                                            (D) 10% -25%
                                                           Business combinations (C) 25%

                                                          SINGAPORE QP SYLLABUS HANDBOOK — FOUNDATION PROGRAMME | 5
FINANCIAL ACCOUNTING & REPORTING

SYLLABUS IN DETAIL

  A Legal and                                                    A Conceptual Framework for
  Regulatory Framework                                               Financial Reporting
  for Financial Reporting
                                                   a)    The need for a conceptual framework
  a) The need for a regulatory                     b)    Relevance, reliability, comparability and understandability
     framework                                     c)    Recognition and measurement of assets and liabilities
                                                   d)    The legal versus the commercial view of accounting
  b) The accounting standard setting
                                                   e)    Alternative financial reporting models and practices
     process
                                                   f)    The concept of ‘true and fair view’ (‘faithful representation’)
  c) Legal and regulatory requirements
     for specialised, not-for-profit and
     public sector entities

  d) Legal requirements relating to             Business combinations
     the presentation of single entity          a) The concept and principles of a group structure
     financial statements                       b) The concept of consolidated financial statements
                                                c) Preparation of consolidated financial statements including
                                                   subsidiaries and associates

        Financial Reporting Standards
                                                                              Analysing and
                                                                              Interpreting Financial
   a) FRS 1: Presentation of financial statements
   b) FRS 2: Inventory
   c) FRS 7: Cash Flow Statements                                             Statements
   d) FRS 12: Income Taxes
   e) FRS 16: Property, Plant and Equipment                                   a) Limitations of financial statements
   f) FRS 17: Leases                                                          b) Calculate and interpret financial
   g) FRS 36: Impairment of assets                                               ratios and trends to address various
   h) FRS 37: Provisions, Contingent Liabilities                                 stakeholders’ needs
      and Contingent Assets                                                   c) Limitations of interpretation
   i) FRS 38: Intangible assets                                                  techniques
   j) FRS 39: Recognition and Measurement of Financial                        d) Analyse and interpret financial
      Instruments                                                                statements for specialised, not-for-
                                                                                 profit, and public sector entities
   k) Regulatory requirements for preparing financial statements
   l) Reporting on an entity’s financial performance

                                                        SINGAPORE QP SYLLABUS HANDBOOK — FOUNDATION PROGRAMME | 6
MANAGEMENT
ACCOUNTING SYLLABUS

Rationale
                                                    AIM
The Management Accounting module                    To develop knowledge and skills in the
introduces and develops cost accounting             application of management accounting
techniques            for     decision-making.      techniques to quantitative and qualitative
Students       will    appreciate    the   issues   information for planning, decision-making,
surrounding scarce resources, pricing               performance evaluation, and control.
and make-or-buy decisions, and how
this relates to performance assessment.
As budgeting is an important aspect for
                                                    STUDENTS SHOULD BE ABLE TO:
many accountants, students will explore
different budgeting techniques and their            A Explain, apply and contrast a variety of cost accounting techniques,
respective inherent problems. Some of               including activity based costing (ABC), target costing, life-cycle,
the budgeting techniques introduced                 throughput accounting and environmental accounting.
in this module include standard costing             B Select and appropriately apply decision-making techniques such
and variances, mix, yield, planning and             as relevant cost analysis, cost volume analysis, limiting factor, pricing
operational variances. It is important for          and make or outsource decisions to promote efficient and effective
accountants to be able to interpret the             use of scarce business resources, appreciate the risks and uncertainties
variances in the context of performance             inherent in business and control those risks.
measurement.
                                                    C Explain the objectives of budgeting and the fit of different budgetary
Students       will    also   be    required   to   systems within the performance hierarchy and apply appropriate
understand            how     performance      is   budgeting techniques such as zero based, activity based, capital
measured and controlled. Accountants                budgeting, statistical, incremental and feed-forward control. Use and
need to understand how a business                   appraise various quantitative methods for planning and control, taking
should be managed and controlled. They              into account how behaviours impact budget setting and control.
should appreciate the importance of both
financial and non-financial performance             D Determine and investigate discrepancies between budget and

measures in management accounting.                  actual performance, presenting information in an appropriate format

Accountants should also appreciate the              for management purposes and recommend to management possible

difficulties    in     assessing    performance     remedial actions. Standard costing systems include flexed budgets,

in divisionalised businesses and the                sales, production and ABC variance analysis whilst paying attention to

problems caused by external influences.             the behavioural problems that can result from such analysis.

                                                    E Use a variety of financial and non-financial performance indicators to
                                                    assess the performance of a business. Explain the benefits and problems
                                                    faced when assessing divisional performance and consider the impact
                                                    of different transfer pricing systems on performance measurement.
                                                    Discuss how performance measurement and control would differ in the
                                                    not-for-profit and public sectors.

                                                          SINGAPORE QP SYLLABUS HANDBOOK — FOUNDATION PROGRAMME | 7
Guidance on the weighting of the areas within
                                                     ILLUSTRATIVE RELATIONAL DIAGRAM OF SYLLABUS OUTLINE
any given examination is outlined within the
relational diagram to the right.

                                                            Cost and management
                                                            accounting techniques
                                                                   (A) 20%

                                                         Decision-making techniques
                                                                  (B) 20%
                                                                                                           Performance
                                                                                                           measurement
                                                                                                            and control
                                                                                                             (E) 20%

                                                                  Budgeting
                                                                   (C) 20%

                                                             Standard costing and
                                                               variance analysis
                                                                   (D) 20%
MANAGEMENT ACCOUNTING

SYLLABUS IN DETAIL

                 Specialist cost
                  and management
                   accounting techniques                           Decision-making
                     a) Activity based costing
                                                                    techniques
                      b) Target costing
                                                                      a) Relevant cost analysis
                        c) Life-cycle costing
                                                                       b) Cost volume analysis
                         d) Throughput accounting
                                                                         c) Limiting factors
                           e) Environmental accounting
Budgeting                                                                 d) Pricing decisions
                                                                            e) Make or buy and other short term
a) Objectives                                                                decisions
 b) Budgetary systems                                                          f) Dealing with risk and uncertainty in
   c) Types of budgets                                                           decision making
    d) Quantitative analysis in budgeting           Performance
      e) Behavioural aspects of budgeting
                                                     measurement and control
                                                         a) The scope of performance
                                                          measurement
  Standard costing and                                      b) Divisional performance and
   variances analysis                                        transfer pricing
                                                               c) Performance analysis in not-for-profit
      a) Budgeting and standard costing
                                                                organisations and the public sector
       b) Basic variances and operating statements
                                                                  d) External considerations and behavioural
         c) Mix and yield variances
                                                                   aspects
          d) Planning and operational variances
            e) Behavioural aspects of standard costing

                                                          SINGAPORE QP SYLLABUS HANDBOOK — FOUNDATION PROGRAMME | 8
AUDIT &
ASSURANCE SYLLABUS

                                                      Rationale

                                                       The Audit & Assurance module provides students with the
                                                       requisite knowledge to plan and perform an audit in accordance
                                                       with appropriate Singapore Standards on Auditing (SSA) and the
                                                       regulations to form an audit opinion on whether the financial
                                                       statements are free from material misstatement.

                                                       Students will be expected to understand the nature, purpose
                                                       and scope of assurance engagements, including statutory audits
                                                       and its regulatory environment. Professional ethics relating to
                                                       audit and assurance will also be introduced. Students are also
                                                       required to understand the scope of an internal audit and
                                                       the differences between an internal audit and external audit.

AIM
                                                       Areas covered under the audit of financial statements include
                                                       planning and risk assessment, evaluating internal controls, audit
To develop knowledge and understanding
                                                       evidence and procedures. Students will also learn how an audit
on the process of carrying out the
                                                       is completed along with a review of the financial statements
assurance engagement based on the
                                                       and reporting, including statutory audit reports, management
Singapore Standards on Auditing.
                                                       reports, and internal audit reports.

STUDENTS SHOULD BE ABLE TO:
A Explain the nature, purpose and scope of audit and assurance               in relation to fraud, and laws and regulations.
engagements and the regulatory environments for statutory audits.            Demonstrate how an auditor plans an audit
Discuss the need for corporate governance and the provisions of the          and documents his work.
Code of Corporate Governance. Define and apply the fundamental
                                                                             D Describe and evaluate the information
principles of professional ethics.
                                                                             systems and internal controls to identify
B Discuss the need for internal audit with reference to corporate            and communicate control risks and their
governance. Compare the differences between an external and                  potential consequences, making appropriate
internal audit. Discuss the scope of internal audit, the advantages and      recommendations. Explain and list the various
disadvantages of outsourcing the internal audit function, and the nature     tests of controls.
and purpose of internal audit assignments.
                                                                             E Identify and describe audit procedures and
C Demonstrate how the auditor obtains an understanding of the entity         evidence required on specific items to meet
and its environment and assesses the risk of material misstatement.          the objectives of audit engagements and
Explain the concept of materiality. Discuss the auditor’s responsibilities   the application of SSA. Explain the use of

                                                          SINGAPORE QP SYLLABUS HANDBOOK — FOUNDATION PROGRAMME | 9
computer-assisted audit techniques (CAAT)
                                                       ILLUSTRATIVE RELATIONAL DIAGRAM OF SYLLABUS OUTLINE
and the extent to which auditors are able to
rely on the work of others.

F Discuss procedures used in a subsequent             Audit framework, ethics and
                                                                                                         Internal audit
                                                        corporate governance
events review and a going concern review.                                                                   (B) 10%
                                                                (A) 15%
Consider written representations as a form of
audit evidence. Explain how the conclusions
from audit work are reflected in different types                          Audit planning and risk (C) 20%
of audit reports, and explain other types of
assurance reports.
                                                                              Internal control (D) 20%
Guidance on the weighting of the areas within
any given examination is outlined within the
relational diagram on the right.                                       Audit evidence and procedures (E) 15%

                                                                       Audit completion and reports (F) 20%
AUDIT & ASSURANCE

SYLLABUS IN DETAIL

              Internal Audit
 a) Internal audit and corporate
                                                      Audit Framework and Regulation
    governance
                                                      a)   The concept of audit and other assurance engagements
 b) Differences between the external
                                                      b)   Statutory audits
    auditor and the internal auditor
                                                      c)   The regulatory environment and corporate governance
 c) The scope of the internal audit function
                                                      d)   Professional ethics
 d) Outsourcing the internal audit function
 e) Internal audit assignments

                                                                                                                 Review
  Audit Evidence
                                                                                a) Subsequent events
  a)  The use of assertions by auditors
                                                                                b) Going concern
  b)  Audit procedures
  c)  The audit of specific items                  Reporting                    c) Written representations

  d)  Audit sampling and other means                                            d) Audit finalisation and the final review
                                                   a) Audit reports
      of testing                                   b) Reports to
  e) Computer-assisted audit techniques               management
  f) Using the work of others                      c) Internal audit             Planning and Risk
                                                                                 Assessment
  g) Auditing for not-for-profit                      reports
      organisations
                                                                                 a) Objective and general principles
  Internal control                                                               b) Assessing the risks of material
                                                                                    misstatement
  a)   Internal control systems                                                  c) Understanding the entity and its
  b)   The use of internal control systems by auditors                              external environment
  c)   Transaction cycles                                                        d) Materiality, fraud, laws and regulations
  d)   Tests of controls                                                         e) Analytical procedures
  e)   The evaluation of internal control components                             f) Planning an audit
  f)   Communication of internal controls to the audit committee                 g) Audit documentation

                                                           SINGAPORE QP SYLLABUS HANDBOOK — FOUNDATION PROGRAMME | 10
FINANCIAL
MANAGEMENT SYLLABUS

                                                       Rationale

                                                       The Financial Management (FM) module is designed to equip
                                                       students with the skills that would be expected from a finance
                                                       manager responsible for the finance function of a business.
                                                       Students will be introduced to the role and purpose of the
                                                       financial management function within a business. An exploration
                                                       of the economic environment will preclude the discussion of
                                                       the three key financial management decisions of investing,
                                                       financing, and dividend policy.

                                                       The introduction to investing decisions will be covered in two
                                                       stages - investment in (and the management of) working capital
                                                       and the appraisal of long-term investments. The section on
                                                       financing decisions will examine the various sources of business
                                                       finance, including dividend policy and how much finance can be
                                                       raised from within the business. Cost of capital and other factors
                                                       that influence the choice of the type of capital a business will
AIM                                                    raise follows. The principles underlying the valuation of business
To develop the knowledge and skills
                                                       and financial assets, including the impact of cost of capital on
expected of a finance manager, in relation
                                                       the value of business, is covered next.
to investment, financing, and dividend
policy decisions.                                      The module concludes with an introduction to, and examination
                                                       of, risk and the main techniques employed in the management
                                                       of such risk.

STUDENTS SHOULD BE ABLE TO:
A Describe the nature and purpose of financial management and how            also be considered under the discounted cash
the objectives relate to an entity’s corporate strategy both financially     flow techniques, as appropriate.
and non-financially in different types of organisations. For each type of
                                                                             D Describe the different sources of short and
business, outline the economic environment faced by the business and
                                                                             long term finance including Islamic finance
consider the role of financial markets and institutions.
                                                                             that is appropriate and available to different
B Discuss the importance of working capital management and describe          business entities, in different industries and
the different management approaches relating to inventory, accounts          size, including small and medium sized entities.
receivable, accounts payable and cash appropriate to the business            Consider the implications of an existing or
entity, for working capital needs and funding strategies.                    proposed finance structure on gearing, cost
                                                                             of capital (debt and equity) and the capital
C Identify the purpose of investment appraisal, and apply the non
                                                                             structure. Consider the impact of cost of
discounted and discounted cash flow techniques, adjusting for the
                                                                             capital in investment appraisal.
effects of risk and uncertainty. Effects of inflation and taxation should

                                                           SINGAPORE QP SYLLABUS HANDBOOK — FOUNDATION PROGRAMME | 11
E Identify the different types of risk that
                                                      ILLUSTRATIVE RELATIONAL DIAGRAM OF SYLLABUS OUTLINE
may be contained within a defined business
environment     and    discuss     the   available
mitigation strategies available.                           Financial management function and environment (A) 10%

F Describe and apply the different business
valuation models available to value a business             Working capital management (B) 20%
entity with debt and/or equity. Outline the
efficient market hypothesis and how this
                                                                Investment appraisal (C) 20%
affects the valuation of shares.

Guidance on the weighting of the areas within
                                                           Business finance and the cost of capital
any given examination is outlined within the                              (D) 20%                             Business
relational diagram on the right.                                                                             valuations
                                                                                                              (F) 10%
                                                                 Risk management (E) 20%

FINANCIAL MANAGEMENT

SYLLABUS IN DETAIL

    Financial Management
                 Function
a) The nature and purpose of financial
                                                     Financial Management Environment
   management
b) Financial objectives and relationship with
                                                     a) The economic environment for business
   corporate strategy
c) Stakeholders and impact on corporate              b) The nature and role of financial markets and institutions
   objectives
d) Financial and other non-financial
   objectives in not-for-profit organisations

                                                                                Investment
    Working Capital Management                                                  Appraisal
    a) The nature, elements and importance of working capital
                                                                               a) The nature of investment decisions
    b) Management of inventories, accounts receivable,
                                                                                  and the appraisal process
       accounts payable and cash
                                                                               b) Non-discounted cash flow techniques
    c) Determining working capital needs and funding strategies
                                                                               c) Discounted cash flow (DCF)
                                                                                  techniques
                                                                               d) Allowing for inflation and taxation in
                                                                                  DCF
                                                                               e) Adjusting for risk and uncertainty in
                                                                                  investment appraisal
                                                                               f) Specific investment decisions (lease
                                                                                  or buy; asset replacement, capital
                                                                                  rationing)

                                                        SINGAPORE QP SYLLABUS HANDBOOK — FOUNDATION PROGRAMME | 12
Business Finance
a) Sources of, and raising
                                                 Cost of Capital
   short-term finance
                                                 a) Sources of finance and their relative costs
b) Sources of, and raising
                                                 b) Estimating the cost of equity
   long-term finance
                                                 c) Estimating the cost of debt and other capital instruments
c) Raising short and long term
                                                 d) Estimating the overall cost of capital
   finance through Islamic financing
                                                 e) Capital structure theories and practical considerations
d) Gearing and capital
                                                 f) Impact of cost of capital on investments
   structure considerations
e) Finance for Small and Medium-sized
   Entities (SMEs)

                                                                         Risk Management
Business Valuations                                                      a) The nature and types of risks
                                                                            (including operational, market,
a) Nature and purpose of the valuation of business and
                                                                            exchange rate, interest rate,
   financial assets
                                                                            information systems, information,
b) Models for the valuation of shares
                                                                            reputational and strategic) and
c) The valuation of debt and other financial assets
                                                                            approaches to risk management
d) Efficient Market Hypothesis (EMH) and practical
                                                                         b) Reasons for exchange rate
   considerations in the determination of share prices
                                                                            differences and interest rate
e) Principles of microeconomics
                                                                            fluctuations
f) Principles of macroeconomics
                                                                         c) Hedging techniques for foreign
                                                                            currency risk
                                                                         d) Hedging techniques for interest
                                                                            rate risk

                                                  SINGAPORE QP SYLLABUS HANDBOOK — FOUNDATION PROGRAMME | 13
SINGAPORE LAW
SYLLABUS

                                                      Rationale

                                                       Singapore Law provides students with a basic understanding
                                                       of the Singapore corporate and business law and recognising
                                                       legal issues. The module covers an introduction to the legal
                                                       system in Singapore, the basics of contract law and tort law and
AIM                                                    professional negligence.
To develop knowledge and skills in
                                                       The module will also cover specific legal areas relating to
the understanding of the general legal
                                                       partnerships and companies. This includes the formation and
framework, and specific legal areas
                                                       constitution of companies, the financing of companies and types
relating to business, recognising the
                                                       of capital, the day to day management, and administration of
need to seek further specialist legal
                                                       companies. Students will also learn the concept of majority
advice where necessary.
                                                       control and minority protection, and the insolvency of companies
                                                       including alternatives to winding up.

STUDENTS SHOULD BE ABLE TO:
A Identify the essential elements of the Singapore legal system              F Recognise and apply the appropriate legal
including the court structure, different types of law, the main sources of   rules relating to majority control and minority
law, including precedent and statutory interpretation, and the reception     protection and the remedies available.
of English law in Singapore.
                                                                             G Explain the procedure for the voluntary and
B Recognise the formation of a contract and the content of contracts,        compulsory liquidation of insolvent companies,
vitiating factors, and breach of contract and remedies. Understand the       judicial management and other alternatives to
law of torts and the duty of care, including the duty of care expected of    winding up.
accountants and auditors.
                                                                             H Demonstrate an understanding of corporate
C Distinguish between different forms of business organisations.             governance relating to business. Recognise
Demonstrate knowledge of the legislation governing partnerships.             the nature and legal control over insider
Explain separate legal personality. Understand company formations            dealing, fraudulent and wrongful behaviour.
and its constitutions.

D Recognise and compare types of capital and the financing of
companies, including share capital and loan capital. Explain the doctrine
of capital maintenance and capital reduction, and the rules governing
the distribution of dividends.

E Describe and explain how companies are managed, administered
and regulated including the roles of directors, company secretaries,
and auditors, and the procedures for company meetings, including
resolutions.

                                                         SINGAPORE QP SYLLABUS HANDBOOK — FOUNDATION PROGRAMME | 14
Guidance on the weighting of the areas within
                                                      ILLUSTRATIVE RELATIONAL DIAGRAM OF SYLLABUS OUTLINE
any given examination is outlined within the
relational diagram on the right.

                                                                     The Singapore legal system (A) 10%

                                                          Contract law, tort law and professional negligence (B) 20%

                                                            Partnerships, companies, and legal personality (C) 15%

                                                      Capital and     Management and      Majority control
                                                      financing of    administration of    and minority      Insolvency
                                                       companies        companies           protection        (G) 10%
                                                        (D) 15%           (E) 15%             (F) 5%

                                                            Corporate governance and fraudulent behaviour (H) 10%

SINGAPORE LAW

SYLLABUS IN DETAIL

 The Formation and Constitution of                                            Essential Elements
 Business Organisations                                                       of the Legal System
 a) Types of business organisations                                           a) Court structure
 b) Partnerships and limited liability partnerships                           b) Sources of law
 c) Corporations and separate legal personality concept                       c) Precedent and statutory interpretation
 d) Company formations                                                        d) Reception of English Law in Singapore

                                                                          Capital and the
   The Law of Obligations
                                                                          Financing of Companies
    a) Formation of contract                           a) Share capital
    b) Content of contracts                            b) Loan capital
    c) Vitiating factors                               c) Capital maintenance and dividend law
    d) Discharge of contract, breach
       of contract and remedies
    e) The law of torts
    f) Professional negligence

                                                        SINGAPORE QP SYLLABUS HANDBOOK — FOUNDATION PROGRAMME | 15
Management,
Administration and                    Legal Implications Relating to
Regulation of Companies               Companies in Difficulty or in Crisis
a) Company directors                  a) Insolvency
b) Other company officers             b) Voluntary and compulsory liquidation
c) Company meetings and resolutions   c) Judicial management

  Corporate Governance and                                      Majority Control and
  Ethical Issues Relating to Business                           Minority Protection
  a) Corporate governance
                                                                a) Majority rule and minority rights
  b) Fraudulent behaviour

                                         SINGAPORE QP SYLLABUS HANDBOOK — FOUNDATION PROGRAMME | 16
SINGAPORE TAXATION
SYLLABUS

Rationale
                                               AIM
Singapore Taxation introduces students         To develop knowledge and skills relating
to the subject and system of taxation          to the tax system for individuals, single
in Singapore and provides the core             companies and groups of companies.
knowledge of the underlying principles
and major technical areas of taxation,
as they affect the activities of individuals   STUDENTS SHOULD BE ABLE TO:
and businesses in Singapore.
                                               A Explain the overall function and purpose of the taxation system in the
In this module, students are introduced to     Singapore economy, identifying the different types of taxes (revenue,
the rationale behind and the functions of      direct and indirect) and the principal sources of revenue law and
the tax system in Singapore. The module        practice including how our domestic tax laws interact with that of other
then considers the different tax types         jurisdictions. Appreciate the difference between tax avoidance and tax
that an accountant would need to have          evasion.
a detailed knowledge of, such as income
                                               B Define the scope of individual tax, including income from
tax from self-employment, employment
                                               employment, self-employment, partnership, investment income and
and    investments;    partnerships;    the
                                               the comprehensive computation of taxable income and liability to tax,
corporation tax liability of individual
                                               taking into account allowable exemptions and reliefs.
companies and groups of companies;
and the goods and services tax liability of    C Define the scope of tax and profits chargeable to corporate income
businesses.                                    tax and the comprehensive computation of corporate income tax
                                               liability, taking into account group structures and identify exemptions
Having covered the core areas of the
                                               and reliefs available to companies to minimise tax liabilities.
basic taxes, the student should be able to
compute tax liabilities, explain the basis     D Define the scope of goods and services tax (GST) and explain the GST
of their calculations, apply tax planning      registration requirements and compute GST payments and refunds.
techniques for individuals and companies
                                               E Identify and explain the obligations of taxpayers and/or their agents in
and identify the compliance issues for
                                               Singapore and the implications of non-compliance within the regulatory
each major tax type through a variety
                                               framework, in respect of time limits for the submission of information,
of business and personal scenarios and
                                               claims and payment of tax and procedures, relating to appeals and
situations. These issues include time-bars
                                               disputes, including the penalties for non-compliance.
and penalties for non-compliance.

                                                    SINGAPORE QP SYLLABUS HANDBOOK — FOUNDATION PROGRAMME | 17
Guidance on the weighting of the areas within      ILLUSTRATIVE RELATIONAL DIAGRAM OF SYLLABUS OUTLINE
 any given examination is outlined within the
 relational diagram on the right.
                                                                     The Singapore tax system (A) 10%

                                                                                 Corporate
                                                    Individual tax                                      Goods and
                                                                                income tax
                                                      liabilities                                       services tax
                                                                                  liabilities
                                                       (B) 30%                                            (D) 15%
                                                                                  (C) 30%

                                                      The obligations of the taxpayer and/or their agents (E) 15%

 SINGAPORE TAXATION

 SYLLABUS IN DETAIL

  Goods and Services Tax                                  Individual Tax Liabilities
  a) The scope of goods and services tax (GST)
  b) The GST registration requirements                    a) The scope of income tax
  c) The computation of GST payments/refunds              b) Income from employment
                                                          c) Income from self-employment
                                                          d) Property and investment income
The Singapore Tax System                                  e) The comprehensive computation of taxable
                                                             income and income tax liability
 a) The overall function and purpose of taxation          f) The use of exemptions and reliefs in deferring
    in a modern economy                                      and minimising income tax liabilities
 b) Different types of taxes
 c) Principal sources of revenue law and practice
 d) Tax avoidance and tax evasion

                                                                              The Obligations of
     Corporate Income Tax Liabilities                                         Tax Payers and/or
                                                                              Their Agents
    a) The scope of corporate income tax
    b) Profits chargeable to corporate income tax
                                                                              a) The time limits for the submission
    c) The comprehensive computation of the corporate income
                                                                                 of information, claims and
       tax liability
                                                                                 payment of tax
    d) The effect of a group corporate structure for corporate
                                                                              b) The procedures relating to
       income tax purposes
                                                                                 enquiries, appeals and disputes
    e) The use of exemptions and reliefs in deferring and
                                                                              c) Penalties for non-compliance
       minimising corporate income tax liabilities

                                                     SINGAPORE QP SYLLABUS HANDBOOK — FOUNDATION PROGRAMME | 18
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