IS Chartered Accountant - SINGAPORE ACCOUNTANCY CONVENTION 2014 - ISCA

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IS Chartered Accountant - SINGAPORE ACCOUNTANCY CONVENTION 2014 - ISCA
IS                      Chartered
                                                  Accountant
                          Journal of ISCA | September 2014
IS CHARTERED ACCOUNTANT
  SEPTEM BER 20 14

                                                  SINGAPORE ACCOUNTANCY
                                                     CONVENTION 2014

                                 Ethics Forum                Accounting Conference    Singapore
                           Integrated Reporting              Auditing & Assurance    Accountancy
                                  Forum                           Conference           Awards
IS Chartered Accountant - SINGAPORE ACCOUNTANCY CONVENTION 2014 - ISCA
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IS Chartered Accountant - SINGAPORE ACCOUNTANCY CONVENTION 2014 - ISCA
PRESIDENT’S MESSAGE

Commitment,
duty, passion
Serving with heart
Dear members,
August was a busy month for the nation,    are noteworthy as they encourage us         mentioned the expanding participation
the profession and the Institute.          to pause and reflect – a deliberation       numbers at our CPE courses, as well as
     As a nation, we celebrated            that is often the precursor of improved     members who have stepped forward
Singapore’s 49th birthday, and honoured    efficiency. This is because the process     to offer their services to the Institute.
the people who have contributed to the     is typically underlined by a passion or     These are all examples of an informed
city-state with the National Day Awards.   belief, which along with commitment,        membership that is committed and
For the profession, the Singapore          fuels the action to bring a mission or      passionate, and takes responsibility not
Accountancy Convention 2014                project to fruition.                        only for its own development but also
brought together about 1,400 industry           Modern Singapore is a prime            for the advancement of the profession
luminaries, distinguished guests           example of what passion and                 and industry.
and delegates while the Singapore          commitment can do. The pioneer                   For members who were not at the
Accountancy Awards Dinner, which           generation has laid the foundation for      Singapore Accountancy Convention,
saw close to 700 guests, unveiled the      a thriving, independent city-state, and     we have a summary of the proceedings,
recipients of the inaugural Singapore      as a nation, we are very grateful to our    and the profiles of the Singapore
Accountancy Awards. The Singapore          elders for their contributions. It is now   Accountancy Awards recipients here.
Accountancy Awards commends                our duty and commitment to ensure                To further strengthen the
individuals and firms that embody          that their golden years are enjoyed in      capabilities of public accountants,
excellence, promote good practices and     comfort and peace. In this respect, the     ACRA has announced more stringent
strengthen the branding of the business    government has established the pioneer      registration requirements. From
and profession.                            generation package and announced            1 February 2015, applicants’ years of
     Earlier in May, the People’s          various initiatives.                        work experience must include specific
Association had also marked the efforts         At his National Day Rally speech,      audit management experience which
of grassroots organisations (GROs)         Prime Minister Lee Hsien Loong also         will be made mandatory. The details of
in promoting social cohesion and           paid tribute to the pioneer generation.     the upcoming changes, as well as other
community bonding among residents          His speech centred on three broad           information directly relevant to your
with the PA WeCARE Awards; many            themes – creating opportunities             work, are available in this issue.
of our members serve in these award-       for Singaporeans to realise their                As a national accountancy body,
winning GROs.                              potential, ensuring sufficiency during      we are committed to improving the
     Our heartiest congratulations to      retirement, and making Singapore a          standing and standard of the profession
the award-winning members whose            home for everyone. In our ongoing           locally and globally, serving our
good works have been recognised. And       effort to provide members with useful       members as an advocate and partnering
to the many more unsung heroes who         information, we have produced a special     them in their accountancy journey.
continue their unwavering service to       bulletin featuring the key points of        Similarly, as stakeholders, members play
the nation, profession and community       PM Lee’s speech with this journal issue.    a vital role in enriching the accounting
in various capacities, we are also proud        Commitment, passion and service        landscape. Together, we can work
of you.                                    are closely associated with the             towards establishing Singapore as a
     Awards are visible citations of       accounting profession – the Singapore       vibrant business and accountancy hub.
achievement; they are also helpful         Accountancy Convention 2014 was
in setting benchmarks and raising          well attended while the Singapore           Gerard Ee
standards. But beyond the celebratory      Accountancy Awards attracted a strong       FCA (Singapore)
events and public declarations, awards     field of nominees. I had previously         president@isca.org.sg

                                                                                                               September 2014   1
IS Chartered Accountant - SINGAPORE ACCOUNTANCY CONVENTION 2014 - ISCA
CONTENTS
                                                                                     MERIT AWARD          EXCELLENCE
                                                                                    FRONT COVER OF          AWARD
                                                                                   THE YEAR (TRADE)       BEST COVER
                                                                       Sep              2014                DESIGN
                                                                                                             APA
                                                                       2014                                  2013

    FOCUS

18 Singapore
Accountancy
Convention 2014
ISCA’s capstone event

                                                                                                      18
brought together about 1,400
stakeholders and industry
luminaries to discuss
developments in the key
disciplines of accounting,
auditing, ethics and
integrated reporting
                                         Singapore Accountancy Convention 2014
44 Celebrating
Excellence in
Accountancy                          IN TUNE
The inaugural Singapore
Accountancy Awards honoured
individuals and businesses           4    2014 National Day Awards
that epitomise excellence,           6    2014 PA WeCARE Awards
promote good practices, and          8    ACRA Raises Quality Bar for
strengthen branding of the                Public Accountants
profession and industry              10   SIT Signs MOUs with Accounting

                                                                              15
                                          Industry Leaders
50 Honouring                         11   Singapore has New Centre for
Members’                                  Excellence in Taxation
Contributions                        12   ISCA Members Make Clean Sweep       14   ISCA Breakfast Talk: Strategy in Ethics
ISCA Awards 2014 recognised               of Best CFO Award at Singapore      15   Gain Heaps on Tax with SIATP
members for having made major             Corporate Awards 2014               16   New ISCA Members Receive
contributions to the Institute and   14   ISCA and CPA Australia Celebrate         Rousing Welcome
accountancy profession                    30 Years of Dinner Talk Series      17   ISCA Calendar of Events

2   IS Chartered Accountant
IS Chartered Accountant - SINGAPORE ACCOUNTANCY CONVENTION 2014 - ISCA
IS CHARTERED ACCOUNTANT

                                                                           COUNCIL MEMBERS                     EDITORIAL TEAM
  VIEWPOINT                                                                Advisor Teo Ser Luck
                                                                           President Gerard Ee
                                                                                                               Editor
                                                                                                               Jennifer Toh
                                                                           Vice President R. Dhinakaran        Email: editor@isca.org.sg
                                                                           Treasurer Ho Tuck Chuen             Deputy Editor
                                                                           Members Chan Hon Chew,              Pauline Chee
                                                                           Frankie Chia, Michael Chin,         Assistant Editor
                                                                           Ho Yew Kee, Paul Lee,               Eugene Chan
                                                                           Lee Shi Ruh, Lee Wai Fai,           Members
                                                                           Lim Kexin, Vincent Lim,             Chan Sze Yee
                                                                           Max Loh, Anthony Mallek,            Kang Wai Geat
                                                                           Ong Pang Thye, Sim Hwee Cher,       Joelle Loy
                                                                           Tam Chee Cheong,                    Betsy Tan

 52
                                                                           Tan Khoon Guan                      Joyce Tang
                                                                                                               Anne Tay
                                                                           PRINCIPAL OFFICERS
                                                                           Chief Executive Officer             PUBLISHER
                                                                           Lee Fook Chiew                      Institute of Singapore
                                                                           Chief Operating Officer             Chartered Accountants
                                                                           Goh Puay Cheh                       60 Cecil Street, ISCA House,

52 Asia-Pacific Tax                    59 The Strategic CFO
                                                                           Executive Director                  Singapore 049709
                                                                           (Corporate Services)
Complexity Survey 2014                 The modern CFO is able to help      Janet Tan
                                                                           Executive Director
                                                                                                               Tel: (65) 6749-8060
                                                                                                               Fax: (65) 6749-8061
A Deloitte tax survey that looks at    shape strategy, drive innovation,   (Technical Knowledge                Email: isca@isca.org.sg
trends and criteria that influence     harness technology and create       Centre & Quality Assurance)         Website: www.isca.org.sg
                                                                           Lim Ai Leen
investment decisions in Asia-Pacific   value to support and sustain        Executive Director
markets in the aftermath of the        business over the long term         (Policy & Strategic                 PUBLISHING & DESIGN CONSULTANT
                                                                           Planning/Industry
global financial crisis                                                    Development)
                                                                           Yee Cheok Hong

56 Government
                                                                           Executive Director                  MCI(P) 190/05/2013
                                                                           (Professional Accountants           PPS 709/09/2012 (022807)
Schemes for SMEs                                                           in Business (PAIB)
                                                                           Development)
                                                                                                               ISSN 2010-1864

Tips on how SMEs can optimise                                              Danielle Yew
available benefits in the ICV                                                                                  ADVERTISING
                                                                           EDITORIAL ADVISORY PANEL            VMI Media International
scheme, as well as explore the

                                        59
                                                                           Chairman                            Diana Teo
less popular categories in the PIC                                         Gerard Ee                           Hp: 9389-5235
                                                                           Deputy Chairman                     Email:
and PIC+ schemes                                                           Tan Hun Tong                        teodiana3333@yahoo.com.sg
                                                                           Members
                                                                           Cheng Nam Sang                      PRINTING COMPANY
 TECHNICAL EXCELLENCE                                                      Ho Tuck Chuen
                                                                           Keung Ching Tung Edmund
                                                                                                               Times Printers Private Limited

                                                                           Paul Lee
                                                                           Luke Lim
62 Technical Highlights                68 Singapore IFRS
                                       Convergence                         The views expressed in IS Chartered Accountant
64 IFRS 15 Revenue                     Singapore-incorporated              journal do not necessarily represent those of the
                                                                           Institute of Singapore Chartered Accountants (ISCA).
from Contracts with                    companies listed on SGX must        No responsibility is accepted by the Institute or its staff
Customers                              apply a new financial reporting     for the accuracy of any statement, opinion or advice
IFRS 15 introduces a new revenue       framework identical to the IFRS     contained in the text or advertisements, and readers are
                                                                           advised to rely on their own judgement or enquiries, and
recognition model for contracts with   for annual period beginning on      to consult their own advisors in making any decisions
customers which replaces most of       or after 1 January 2018             which would affect their interests. No part of this
the current revenue recognition                                            publication may be reproduced, stored in a retrieval
                                                                           system, or transmitted in any form or by any means,
guidance under IFRS and US GAAP                                            electronic, mechanical, photocopying, recording or
                                                                           otherwise, without the prior written permission of ISCA.

                                        68
                                                                           IS Chartered Accountant journal welcomes contributions
                                                                           and letters. These may be edited for clarity or length.
                                                                           Articles, letters and requests to reproduce articles
                                                                           appearing in IS Chartered Accountant journal should
                                                                           be sent to Editor, IS Chartered Accountant, Institute of

                                        FIRST LOOK                         Singapore Chartered Accountants, 60 Cecil Street, ISCA
                                                                           House, Singapore 049709 or email: editor@isca.org.sg.

 64                                    72 Books & Quiz
 ERRATUM
                                                                                                  SUBSCRIPTIONS
 It was stated in the President’s Message (August 2014) that Singapore           SINGAPORE              OVERSEAS             SINGLE ISSUE
                                                                                  S$164                 S$190                   S$16
 is moving towards becoming a global accountancy hub in 2010. It                for 12 issues          for 12 issues         (including GST)
                                                                                   a year                 a year
 should have read: “As Singapore moves towards becoming a global                (including GST,          (including
 accountancy hub in 2020, it is important for the profession as a                handling and           handling and
                                                                               postage charges)       postage charges)
 whole to continually advance.” We are sorry for the error.

                                                                                                                         September 2014        3
IS Chartered Accountant - SINGAPORE ACCOUNTANCY CONVENTION 2014 - ISCA
NATIONAL DAY
AWARDS 2014
 The Meritorious Service Medal 2014                The Public Administration Medal (Bronze) 2014

MR PO’AD BIN SHAIK ABU BAKAR MATTAR               MR TANG LEE HUAT
Member                                            Ministry of Defence
Council of Presidential Advisers                  Deputy Director (Defence Finance)
                                                  Defence Finance Organisation
                                                  Ministry of Defence
 The Public Service Star (Bar) 2014
                                                  DR ANDREW LEE TONG KIN
                                                  Ministry of Education
MS FRANCES CHEANG CHIN NEO JP, BBM, PBM           Associate Professor of Accounting (Practice)
Ministry of Social and Family Development         School of Accountancy
Honorary Treasurer                                Singapore Management University
National Council of Social Service
                                                  MISS PEGGY LOW POH CHOO
                                                  Ministry of Transport
 The Public Service Star 2014                     Deputy Director
                                                  Finance Corporate Development Division
                                                  Ministry of Transport
MR QUEK SEE TIAT PBM
Ministry of National Development
Chairman                                          MS CHUA CHEN YUN
Building and Construction Authority               Ministry of Transport
                                                  Assistant Director, Internal Audit
                                                  Maritime and Port Authority of Singapore
MR LIM HOW TECK PBM
Ministry of the Environment and Water Resources
Board Member
Public Utilities Board                             The Commendation Medal 2014

                                                  MISS CHIO SHEOK HWEE
 The Public Administration Medal (Silver) 2014    Auditor-General’s Office
                                                  Senior Assistant Director
                                                  Auditor-General’s Office
MDM GOH POH GEK
Ministry of Education
Financial Controller                              MS SHIRLYNN LOO MUI HOON
Financial Management Branch, FD Div               Supreme Court
Ministry of Education                             Deputy Director (Strategic Planning & Policy)
                                                  Strategic Planning & Policy Directorate
                                                  Supreme Court

                                                  MS LIM HUEY FANG
                                                  Ministry of National Development
                                                  Deputy Director (Arrears Management)
                                                  Housing Management Group
                                                  Housing & Development Board

                                                  MISS GOH KAH LENG
                                                  Prime Minister’s Office
                                                  Deputy Director (Finance)
                                                  Finance Department
                                                  Monetary Authority of Singapore

 4   IS Chartered Accountant
IS Chartered Accountant - SINGAPORE ACCOUNTANCY CONVENTION 2014 - ISCA
The Singapore National Day Awards are a means of recognising
the various forms of merit and service to the country. This year,
a total of 3,354 Individuals in 19 award categories received
National Day honours. ISCA is proud to announce that 29 of
our members were conferred awards for their outstanding service
and merit to the country.
   On behalf of the Institute of Singapore Chartered Accountants,
ISCA President Gerard Ee would like to extend his heartfelt
congratulations to our award recipients. We are proud of you!

 The Public Service Medal 2014                 The Long Service Medal 2014

MR TAN WANG CHEOW                             MDM LEE YIM MAY
Aljunied GRC                                  Ministry of Defence
Patron                                        Group Head
Bedok Reservoir-Punggol CCC                   Ministry of Defence

MR PATRICK KOK SOON FATT                      MS TAN LIN
Bishan-Toa Payoh GRC                          Ministry of Education
Member                                        Deputy Director
Thomson-Toa Payoh CCC                         SP Business School
                                              Singapore Polytechnic
MS DIANA PANG LI YEN
East Coast GRC                                MS SNG SIOK BENG
Chairperson                                   Ministry of Finance
Fengshan CC WEC                               Principal Tax Officer
                                              Corporate Tax Division
                                              Inland Revenue Authority of Singapore
MR TIEW CHEW MENG
CDC — South West
District Councillor                           MDM CHOW SIEW FAH
South West CDC                                Ministry of National Development
                                              Deputy Director (Costing)
                                              Development & Procurement Group
MR CHALY MAH CHEE KHEONG                      Housing & Development Board
Ministry of Law
Chairman
Singapore Land Authority Board                MDM CHEAH LAI CHAN
                                              Ministry of National Development
                                              Principal Accountant
MR CHEY CHOR WAI                              Finance Group
Ministry of Social and Family Development     Housing & Development Board
Former Chairman
Dover Park Hospice Governing Council
                                              MDM NG SOOK YIN
                                              Ministry of National Development
MR GAUTAM BANERJEE                            Director (Management Reporting,
Ministry of Trade and Industry                Budget & Administration)
Senior Managing Director and Co-Chairman      Finance Group
of the Asia Operating Committee, Blackstone   Housing & Development Board
Chairman of Blackstone Singapore
                                              MDM WONG PECK WOON
                                              Ministry of National Development
                                              Deputy Director (Financial Reporting)
                                              Finance Group
                                              Housing & Development Board

                                              MR SOH PECK LIN
                                              Ministry of Trade and Industry
                                              Learning Specialist
                                              Finance and Compliance
                                              Singapore Tourism Board

                                              MR LOCK WIN CHONG
                                              Ministry of Transport
                                              Senior Manager
                                              Government Collections
                                              & Refunds
                                              Corporate Services
                                              Land Transport Authority

                                                                                 SEPTEMBER 2014   5
IS Chartered Accountant - SINGAPORE ACCOUNTANCY CONVENTION 2014 - ISCA
2014 PA
WeCARE AWARDS
                   The People’s Association (PA) Awards scheme recognises the efforts of the grassroots
                   organisations (GROs) in carrying out activities and programmes aligned with the PA and GROs’
                   mission of reaching out to residents through promoting social cohesion and community bonding.
                       The WeCARE Award, where CARE stands for Channels, Ages, Races and Estates, is a
                   constituency-based award which honours the outreach of the constituencies, as well as how
                   balanced the outreach is, in terms of age, race and estate.
                       As an Institute, ISCA cares about Singapore and the community in which we live, work and
                   play. In 2010, we signed a Memorandum of Understanding with PA to encourage our members to
                   volunteer with PA’s GROs, where they can contribute their skills in aid of the community; GROs
                   also benefit from having professional expertise to oversee their finances.
                       We are pleased that more than 50 of our members have served and continue to serve in
                   various capacities in the constituencies that have been recognised for their good work.

                   ISCA MEMBERS SERVING IN CONSTITUENCIES THAT
                   RECEIVED THE 2014 WeCARE AWARDS

                    PLATINUM
                   MS TIONG SAI LAN, JOYCE                 MISS CHUI QING MUNN                               MISS ONG MEI PING
                   Executive Member, Lucky Heights NC      Assistant Treasurer, Nee Soon Central CCMC        Member, Tampines West CCC
                   Bedok                                   Assistant Treasurer, Nee Soon Central Zone 1 RC   Tampines West
                                                           Treasurer, Nee Soon Central CC YEC
                   MS LOO LUCY                             Nee Soon Central                                  MISS SOONG WEE CHOO
                   Treasurer, Bishan North CCC                                                               Treasurer, Tiong Bahru CCMC
                   Bishan North                            MS GRACE LU YUHONG                                Treasurer, Tiong Bahru CC BFC
                                                           Member, Pasir Ris East CCC                        Tanjong Pagar-Tiong Bahru
                   MISS TAN SHU CHUIN, NICOLE              Pasir Ris East
                   Assistant Treasurer, Bishan North CCC                                                     MR LIM TECK LENG, DARRELL
                   Bishan North                            MDM SUMITA TRIPATHI                               Associate Member, Silat RC
                                                           Executive Member, Brontosaur RC                   Member, Tanjong Pagar-Tiong Bahru C2E
                   MDM YAP FONG PENG, MAYPLE               Pasir Ris West                                    Tanjong Pagar-Tiong Bahru
                   Grassroots Member, Canberra Zone 2 RC
                   Canberra                                MS NG LI HUI, JUNE                                MR TAN TIAN SOO
                                                           Secretary, Pioneer CCC                            Treasurer, Teck Ghee CCMC
                   MS TEO SIEW LUAN, RUTH                  Pioneer                                           Teck Ghee
                   Member, Cheng San-Seletar CCC
                   Cheng San-Seletar                       MDM LIM MOOI KHIM                                 MR TEI TONG HUAT
                                                           Assistant Treasurer, Queenstown CCC               Assistant Treasurer, Telok Blangah CCC
                   MDM SEAH GEK CHOO                       Treasurer, Queenstown C2E                         Telok Blangah
                   Treasurer, Kampong Glam CCMC            Treasurer, Queenstown CC WEC
                   Kampong Glam                            Queenstown                                        MDM TUNG SIEW SHEONG
                                                                                                             Treasurer, Thomson-Toa Payoh C2E
                   MDM LIM SIEW LI, LELAINA                MISS SRIMAJANI (JAN WONG)                         Thomson-Toa Payoh
                   Auditor, Moulmein Watten NC             Assistant Treasurer, Anchorvale CCMC
                   Moulmein                                Sengkang West                                     MISS LING BEE YEN, ALLYSIA
                                                                                                             Auditor, Toa Payoh East CCC
                                                           DR LIM SING YONG                                  Toa Payoh East
                                                           Assistant Treasurer, Sengkang West CCC
                                                           Treasurer, Anchorvale CCMC                        MR KOH WEE KEONG
                                                           Sengkang West                                     Assistant Treasurer, Whampoa CCC
                                                                                                             Member, Whampoa CCMC
                                                           MISS TO SOR PENG                                  Whampoa
                                                           Treasurer, Tampines East Zone 1 RC
                                                           Tampines East

6   IS Chartered Accountant
IS Chartered Accountant - SINGAPORE ACCOUNTANCY CONVENTION 2014 - ISCA
GOLD
MR TOK SOON LEONG                          MDM WONG SZE WAI                          MISS NGO SIEW POD
Member, Braddell Heights CCC               Assistant Treasurer, Bukit Panjang CCC    Auditor, Kampong Ubi CCMC
Treasurer, Braddell Estate NC              Bukit Panjang                             Auditor, Eunosville NC
Braddell Heights                                                                     Kembangan-Chai Chee
                                           MR LIM KIM SENG
MR CHENG WENG HONG                         Treasurer, Jalan Senang NC                MR KWA TEOW HUAT, PHILIP
Member, Bukit Batok CCC                    Kembangan-Chai Chee                       Treasurer, Punggol South CCC
Bukit Batok                                                                          Punggol South
                                           MDM NG MEI YEN
MDM LIN XIAORONG                           Treasurer, Kembangan-Chai Chee CCC        MR CHOW CHEW SENG
Assistant Treasurer, Bukit Batok CCC       Assistant Treasurer, Lorong Melayu NC     Treasurer, Zhenghua CCC
Bukit Batok                                Kembangan-Chai Chee                       Auditor, Zhenghua-Jelapang RC
                                                                                     Zhenghua
MR FONG YU KEONG, ALVIN                    MR ONG WOON PHENG
Assistant Secretary, Toh Guan View RC      Treasurer, Kampong Ubi CCMC
Bukit Batok East                           Kembangan-Chai Chee

 SILVER
MR LIM KIM HOE                             MR TEO WEE TEE                            MISS LIM KEXIN
Executive Member, Admiralty Zone 7 RC      Assistant Treasurer, Changi Simei CCC     Grassroots Member, Serangoon CCC
Admiralty                                  Auditor, East View Garden NC              Serangoon
                                           Changi Simei
MR WONG TENG KAY                                                                     MR CHONG SIMON
Assistant Treasurer, Bukit Timah CC SCEC   MISS TEO HUI JING                         Assistant Treasurer, Hwi Yoh Court RC
Bukit Timah                                Associate Member, Telok Kurau Zone 1 NC   Serangoon
                                           Joo Chiat
MDM TONG JUN LIN                                                                     MR TAN HOCK TENG
Member, Bukit Timah CCC                    MDM CHONG CHIN FAH                        Treasurer, Tanglin-Cairnhill CCC
Bukit Timah                                Treasurer, Mountbatten CCC                Tanglin-Cairnhill
                                           Mountbatten
MR QUAH BOON WEE                                                                     MR TIMBER YEH
Assistant Treasurer, Cashew Zone 2 RC      MR PERIAKARUPPAN ARAVINDAN                Treasurer, Tanglin NC
Cashew                                     Treasurer, Mountbatten C2E                Tanglin-Cairnhill
                                           Mountbatten
MS SOH LI LIAN                                                                       MDM LIM BEE HUI, JOANNE
Auditor, Changi Simei CCC                  MR WU BANG WEN                            (LIN MEIHUI)
Changi Simei                               Auditor, Punggol East CCC                 Executive Member, Farrer Holland NC
                                           Punggol East                              Ulu Pandan

                                           MR GOH SHER WEE                           MR TING CHOON YEW
                                           Treasurer, Serangoon CCC                  Member, Ulu Pandan CCC
                                           Serangoon                                 Chairman, Mount Sinai NC
                                                                                     Ulu Pandan

                                                                                                                             SEPTEMBER 2014   7
IS Chartered Accountant - SINGAPORE ACCOUNTANCY CONVENTION 2014 - ISCA
IN TUNE
INDUSTRY NEWS

ACRA Raises Quality Bar
for Public Accountants
T
          he Accounting and                Chief Executive, ACRA, on August 1
                                                                        highest quality. Audit opinions rest
          Corporate Regulatory             at the Singapore Accountancy on sound judgement and healthy
          Authority (ACRA) has             Convention 2014 organised by skepticism, the application of which
          announced more stringent         ISCA. The change will ensure closer
                                                                        can only be gained through adequate
requirements for Public Accountants,       alignment of the practical experience
                                                                        and relevant experience. ACRA is
which will kick in from 1 February 2015.   requirements of a PA’s core  raising the bar to ensure that all new
    Aspiring PAs will have to acquire      responsibility to ensure high quality
                                                                        public accountants are sufficiently
more years of work experience,             audits of financial statements.
                                                                        experienced for their responsibility.”
including specific audit management            “Audit is a cornerstone of public
                                                                             The revised requirements were
experience which will be made              confidence in capital markets,”
                                                                        drawn up in consultation with the
mandatory. The new requirements            said Mr Yap. “We must ensure that
                                                                        professional accountancy bodies
were announced by Kenneth Yap,             audits in Singapore remain of the
                                                                        and representatives from both large
                                                                                      and small audit firms.
                                                                                      The changes are also

                                                                      s               in line with current
                                                                                      market practice, where
                                                       Audit opinions rest on         most audit managers
                                                       sound judgement and            tend to accumulate
                                                        healthy skepticism,           more than the current
                                                         the application of           requirement of three
                                                                                      years of practical audit
                                                         which can only be
                                                                                      experience before
                                                          gained through              applying to become
                                                           adequate and               a PA.
                                                        relevant experience                Although the new
                                                                                      practical experience
                                                                                      requirements will
                                                                        apply to all applications received
                                                                        on or after 1 February 2015, ACRA
                                                                        is announcing them now to help
                                                                        aspiring PAs prepare in advance.
                                                                        The requirements will be prescribed
                                                                        in the Accountants (Public Accountants)
                                                                        Rules under the Accountants Act.
                                                                                                                                   PHOTO SHUTTERSTOCK

                                                                                   More information about future changes to the
                                                                                   qualification requirement for PA registration
                                                                                   is available at www.acra.gov.sg/Public_
                                                                                   Accountants/News_and_Events/Future_
                                                                                   Changes_to_the_Qualifications_Requirement_
                                                                                   for_Registration_as_a_Public_Accountant.

 8   IS Chartered Accountant
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KEY DIFFERENCES BETWEEN CURRENT AND NEW REQUIREMENTS TO REGISTER AS A PA
Current requirements                    New requirements

                                        2,500 hours (approximately 2 years) of qualifying audit experience (QAE) after obtaining
                                        full membership of ISCA or, in the case of applicants who are non-ISCA members (that is,
                                        members of other accountancy professional bodies or those who had not yet applied for ISCA
3 years of experience                   membership), after having completed an equivalent amount of post-qualification experience.
(including at least 2 years             Applicants who gain the Singapore QP or recognised equivalent professional qualification after
after final exams)                      1 January 2019 will need to have gained their 2,500 hours of QAE after they have completed
                                        the qualification.
                                             [In practice, this generally means that applicants will have at least 5 years of work
                                        experience (3 years to gain full membership of ISCA or to complete the practical experience
                                        requirements as part of the Singapore QP and 2 years of QAE)].

                                        Applicants will be required to have QAE. QAE is experience in audit management, audit quality
                                        review, and senior technical roles, such that the applicant would have performed the key audit
Audit management experience             functions (KAF) in planning, leading the engagement and forming and reporting conclusions
is not mandatory                        and opinions.
                                             Those relying on experience in audit quality review and senior technical roles must have
                                        at least 1,250 hours (approximately 1 year) of recent experience in KAF.

1 of the 3 years experience need        All of the experience must have been gained under the supervision of an Audit Principal (AP).
not be “structured”, that is, need      A declaration is required from one or more APs that the applicant has
not be obtained and recorded            a) Completed 2,500 hours of QAE, and
under the supervision of an             b) Competently and independently performed the KAF under the AP’s oversight.
approved public accountant.

                                        The AP should have 5 years of experience as a public accountant, and not have failed a practice
An Approved Principal must have
                                        review with the following sanctions:
5 years of experience. There is no
                                        • Hot review order (unless the Public Accountants Oversight Committee agrees otherwise)
requirement to have passed his
                                        • Restriction
practice review under the Practice
                                        • Suspension
Monitoring Programme.
                                        • Cancellation

12 months of continuous
                                        At least 1,250 hours (approximately 1 year) of experience must be gained with the same AP
experience must be gained under
                                        or firm.
the same Approved Principal.

At least 1 year of experience must be
gained in Singapore to ensure that
                                        At least 1,250 hours (approximately 1 year) of QAE must be gained in Singapore.
applicants are conversant with local
laws and regulations.

The experience must be gained
within 7 years and, of these,
                                        The QAE must be gained in the 5 years immediately preceding application.
1 year must be gained within
the last 3 years.

There is an alternative
discretionary category, where
applicants with at least 6 years of
experience but whose experience         Discretionary category to be removed. However, there will be an avenue for exemptions
does not fit existing requirements,     supported by particular reasons about why the applicant could not meet the required criteria.
will be approved if the PAOC
considers the experience to be of
sufficient breadth and depth and
sufficiently recent.

                                                                                                                      September 2014      9
IN TUNE
INDUSTRY NEWS

                                                                                             Accountancy sector’s needs. The

SIT Signs MOUs
                                                                                             programme enables students to
                                                                                             find employment for IWSP during
                                                                                             the peak auditing period, and helps

with Accounting
                                                                                             employers alleviate their work
                                                                                             load during peak season. IWSP
                                                                                             can benefit employers as it can

Industry Leaders
                                                                                             function as an extended probation
                                                                                             period, providing the firms with
                                                                                             cost-effective means of evaluating
                                                                                             future employees. In turn, students
                                                                                             can benefit from the enriching

S
          ingapore Institute of               Lee Fook Chiew, CEO of ISCA,                   experience and better understand
          Technology (SIT) has                and Quek See Tiat, Chairman of                 how the profession operates,” said
          inked MOUs with                     Industry Advisory Committee, SIT               ISCA CEO Mr Lee.
          Accounting industry                 Accountancy degree programme.                      “Our industry partners have
leaders, commemorating its strong             Mr Quek is the Chairman of the                 shown great support for our degree
partnership with industry and                 Building and Construction Authority,           programmes since they were
strengthening industry support for            and Former Partner and Deputy                  launched this year. Working together
its Bachelor of Accountancy with              Chairman, PwC Singapore.                       on the IWSP enables us to tailor the
Honours degree programme.                         The MOUs will bolster support              IWSP to fit the manpower needs of
     SIT sealed agreements with Baker         for SIT’s Integrated Work Study                individual companies. I look forward
Tilly TFW, BDO, Deloitte & Touche, EY,        Programme (IWSP) by providing                  to our continued partnership, and
Foo Kon Tan Grant Thornton, KPMG              students with the opportunity to               to welcoming the new generation
Services, Nexia TS, PKF-CAP, PwC,             develop specialist skills through              of accountants who will face
RSM Chio Lim, and UHY Lee Seng Chan           hands-on experience. “It is                    their industry with confidence,”
& Co. The MOUs were signed on                 commendable that SIT has tailored              said Professor Tan Thiam Soon,
August 19, and witnessed by                   the Accountancy IWSP to fit the                President, SIT.

The Ceremony was attended by representatives from the various organisations and SIT President Prof Tan Thiam Soon (5th from
left), and witnessed by ISCA CEO Lee Fook Chiew (6th from left), and BCA Chairman Quek See Tiat (11th from left), in his capacity as
Chairman of Industry Advisory Committee, SIT Accountancy degree programme.

10   IS Chartered Accountant
Singapore has
New Centre
forExcellence
in Taxation                                                At the signing ceremony for the new Centre for Excellence in
                                                           Taxation were (from left) SMU President Prof Arnoud De Meyer;
                                                           IRAS Commissioner Dr Tan Kim Siew, and Tax Academy of
                                                           Singapore CEO Eng-Tay Geok Lee.

I
      n an initiative that moves             Helmed by SMU Professor of          to produce multi-disciplinary
      Singapore one step closer to      Accounting and ISCA Honorary             research on international taxation
      becoming a global accountancy     Technical Advisor Sum Yee Loong          from the legal, economic and
      hub for Asia Pacific, Singapore   as Centre Director, SMU-TA CET           public policy perspectives. It will
Management University (SMU), in         aims to produce robust research          receive the support of a Technical
partnership with the Tax Academy of     in international and regional tax        Advisory Panel comprising leading
Singapore, launched a new Centre for    issues for policy development and        academics and practitioners,
Excellence in Taxation (SMU-TA CET)     engagement of the international          both local and international,
on August 5. The move is supported      tax community. It will partner           with extensive experience and
by the Inland Revenue Authority of      members of the academia, industry        knowledge of global tax trends
Singapore (IRAS).                       leaders and government officials         and issues.

                                                                                                      September 2014   11
IN TUNE
ISCA NEWS

ISCA Members Make Clean Sweep
of Best CFO Award at Singapore
Corporate Awards 2014

I
        SCA members Lee Wai Fai,               Report Award and Best CFO Award.         year, our heartiest congratulations
        Phillip Choo and Dominic Siu               Corporate governance is integral     go to the ISCA members for having
        were conferred the Best CFO            to a country’s development, and          received the Best CFO Award:
        Award in their respective              Josephine Teo, Senior Minister of        + Lee Wai Fai, Group Chief
categories at the Singapore Corporate          State for Finance and Transport, had         Financial Officer and Managing
Awards (SCA) 2014. Their win was               shared at the SCA Seminar 2014 on            Director of United Overseas
announced at the SCA Gala Dinner               May 19 that excellence in corporate          Bank Ltd (company with market
held at Resorts World Convention               governance is part of a culture of           capitalisation of $1 billion and
Centre, Sentosa, on July 15, and               doing right, and a contribution to a         above);
witnessed by more than 800 guests              well-functioning economic sector         + Phillip Choo, Chief Financial
from government agencies, trade                that puts a premium on trust and             Officer of Rotary Engineering
associations and both private and              integrity. This sentiment underlied          Ltd (company with market
public companies. President Tony Tan           this year’s Awards.                          capitalisation of $300 million
Keng Yam was the guest-of-honour.                                                           to less than S$1 billion), and
    Now in its ninth year, the key             CONGRATULATIONS TO THE                   + Dominic Siu, Group Chief Financial
objectives of the SCA are to recognise         BEST CFO AWARD WINNERS                       Officer of MTQ Corporation
and honour companies listed on the             The Best CFO Award honours CFOs              Ltd (company with market
Singapore Exchange (SGX) as well               who played a significant role in             capitalisation of $300 million
as outstanding individuals for their           supporting, advocating and promoting         or less).
pursuit of excellence in corporate             good corporate governance,
disclosure and governance. It is               disclosure and transparency, and         In an exclusive interview, the Award
jointly organised by ISCA, Singapore           are exemplary role models in             recipients shared their thoughts about
Institute of Directors (SID) and The           corporate financial disclosure by        their win.
Business Times, and supported by               going beyond the regulatory financial
both Accounting and Corporate                  reporting requirements. In addition,     ISCA: How do you feel about
Regulatory Authority (ACRA) and                it recognises CFOs who help create       winning the award?
SGX. ISCA continues to perform the             long-term sustainable shareholder        Lee: It is an honour to be given this
role of Secretariat for the Best Annual        value for their organisations. This      prestigious industry award but I do not
                                                                                        see this as a personal achievement.
                                                                                        This Award is an affirmation of my
     The Singapore Corporate Awards comprises five key awards:                          work and also an endorsement of
     + Best Annual Report Award                                                         UOB’s disciplined approach to growing
     + Best Investor Relations Award                                                    its business. Through prudence, hard
     + Best Chief Executive Officer Award                                               work and well-timed investments, UOB
     + Best Managed Board Award                                                         has built a solid franchise across Asia.
     + Best Chief Financial Officer Award                                               I am proud to have been a part of
                                                                                        UOB’s growth in the last 25 years.
     The Best CFO Award is given to the top CFO in each of the three award categories
     according to their company’s market capitalisation, namely $1 billion and above;   Choo: I am very thankful to God for
     $300 million to less than $1 billion, and $300 million or less.                    His grace and favour shown to me. In
                                                                                        addition, I feel deeply honoured and

12    IS Chartered Accountant
stakeholders. In short, a CFO’s role
                                                                                            has become more strategic. It used
                                                                                            to be 70% operational and 30%
                                                                                            strategic, but it is now the other way
                                                                                            around, where much more time is
                                                                                            spent on strategic analysis.
                                                                                                The banking sector has undergone
                                                                                            tremendous changes since the
                                                                                            2008 global financial crisis. The
                                                                                            step-up in regulatory and compliance
                                                                                            requirements in recent years is having
                                                                                            an impact on the business models of
                                                                                            banks. CFOs of banks today need to
                                                                                            provide an objective voice on financial
                                                                                            performance, especially in the areas
                                                                                            of controlling costs, managing capital
ISCA members and winners of the Best CFO Award Dominic Siu, MTQ Corporation;
Lee Wai Fai, UOB, and Phillip Choo, Rotary Engineering (2nd, 4th and 5th from left          and maintaining liquidity, which have
respectively), with judges Dr Ernest Kan, Immediate Past President, ISCA (1st from left),   become a critical focus for banks
and Alan Chan, CEO, Singapore Press Holdings (centre)                                       in recent years amid the evolving
                                                                                            banking landscape.
appreciative of my Chairman, Audit             global macro trends, anticipate
Committee, staff and my family for             the impact such trends would have            Choo: A good CFO today must be
their support. This recognition is to be       on business, and be able to guide            able and willing to perform multiple
shared with them.                              the organisation to grow within              roles, from being a strategic business
                                               prescribed risk perimeters.                  partner to serving as the financial
Siu: Very much surprised and of                                                             guardian as well as the ethical
course deeply honoured; a strong               Choo: I believe the openness and             conscience of the organisation. We
recognition of the achievements over           communication with all stakeholders          are always called upon to integrate
the last few years!                            to build trust and confidence in my          finance and business strategies, assist
                                               company and in me have helped me             the CEO to utilise available resources
ISCA: What has contributed                     greatly. This is particularly important      and navigate the organisation through
to your win?                                   in my case, as I had helped the              challenges and change. Topping this
Lee: I would attribute this award to           company navigate through a rough             off is the constant need to obtain buy-
two things – experience and a strong           patch, and worked together with the          in and communicate effectively with
team. I have had the opportunity to            team to achieve a strong recovery.           all stakeholders such as the board,
gain knowledge in different areas of                                                        bankers, auditors and investment
the bank across the region through             Siu: I think focus and discipline            community. And the CFO is expected
job rotations during the early days            played key parts in what was achieved        to remain level-headed and sane at
of my career. That experience has              at the personal level. It goes without       the same time!
equipped me with an in-depth                   saying that the support and hard work
understanding of the banking business          of my colleagues were also key to the        Siu: In my mind, one of the key
and has helped lay the foundation for          successes we have had so far.                roles of the CFO is risk management,
my work as a CFO.                                                                           which is an essential part of the
    Importantly, I have a strong team          ISCA: What do you think                      corporate planning and management
of people who keeps me abreast of              is the role of a CFO in                      process. Another key role is
and prepared for the changes in the            today’s context?                             communication. Communication does
business and regulatory landscape              Lee: Today, a CFO has to think               not only encompass the traditional
across the region. The role of a CFO is        long term, understand regulatory             reporting functions but also includes
no longer just about reading numbers;          changes, formulate strategies, and           articulating the financial performance
a good CFO needs to understand                 communicate simply and clearly to            to various stakeholders.

                                                                                                                September 2014   13
IN TUNE
ISCA NEWS

ISCA and CPA Australia                                                                   Cutting the cake to mark the 30th

Celebrate 30 Years of
                                                                                         anniversary of the CPD Dinner
                                                                                         Talk series were ISCA member and
                                                                                         ex-Council Member Loh Hoon Sun

Dinner Talk Series
                                                                                         (centre), with CPA Australia “pioneer
                                                                                         generation” and current members.

                                                                                         organising the talk’s content and

I
       SCA and CPA Australia                    committee, Loh Hoon Sun FCPA             speakers. Since then, subsequent
       celebrated a major milestone in          (Aust.), FCA (Singapore), current ISCA   committees, comprising members
       style at the Conrad Centennial           member and ex-Council Member of          and secretariat representatives from
       Ballroom on July 1, when it              then-ICPAS, to cut the anniversary       both ISCA and CPA Australia, have
marked the 30th anniversary of the              cake. “This Dinner Talk series has       continued to meet biannually to
Continuing Professional Development             proven to be an excellent platform       organise the dinner talks.
(CPD) Dinner Talk series.                       for members to network and build             ISCA’s partnership with CPA
    To commemorate the event, in                friendships,” said Mr Loh.               Australia in part helped to increase
addition to the regular participants,                ISCA has been a long-time           the growth and popularity of the
some 20 CPA Australia “pioneer                  collaborator of CPA Australia’s. In      series as it introduced the Institute’s
generation” members had joined in               a partnership which kicked off in        members to the talks, and also
the celebration to catch up with old            2002, the CPA Australia Dinner           advertised the talks through
friends, reminisce about the good               Talk evolved into the Joint Dinner       the Institute’s various publicity
old times and enjoy a sumptuous                 Talk co-organised by ISCA and CPA        channels. Today, the talks attract a
dinner. Together, they accompanied              Australia, when Mr Loh chaired the       constant monthly turnout of some
the first chairman of the Dinner Talk           first committee that was tasked with     250 participants.

      ISCA BREAKFAST TALK

     Strategy
     in Ethics

     B
                right and early on August 13,
                over 90 members eagerly
                made their way to ISCA
                House for the monthly
     ISCA Breakfast Talk. The topic             socially responsible ways,” he said.     Over 90 members attended the
     that morning was “Dialogue                     Although “many CEOs quote            Breakfast Talk to learn about strategy
                                                                                         in ethics from Prof Dr Foo Check Teck.
     on Strategy in Ethics”, led by             Sun Tzu’s strategies for success in
     Professor Dr Foo Check Teck.               business, too few realise that the       as advocated by Sun Tzu.
         “We face constant challenges in        Art of War also strongly emphasises          Members responded well to
     the 21st century not only in terms of      ethical guidelines in all forms of       the session, commenting more
     physical and mental performance            competition,” he highlighted. As a       than once that it was interesting
     but also on an ethical level with          chartered accountant needs to be         and illuminating. For certain, they
     respect to our moral behaviour.            even more ethically responsive, he       gained valuable knowledge and a
     We expect our Chairmen, Board              provided a glimpse of the mindset        better understanding of Sun Tzu’s
     of Directors and CEOs to act in            that an accountant ought to adopt,       Art of War.

14    IS Chartered Accountant
Speakers and panellists at ISCA-SIATP Annual Tax Forum included
(from left) ISCA Deputy Director John Lim; IRAS Assistant Commissioner
Wilson Ong; Mazars LLP Senior Consultant Dominique Kon-Sun-Tack;
EY Partner Chai Wai Fook; ISCA Honorary Technical Advisor Prof Sum
Yee Loong; SIATP Assistant Director Joanna Wong; EY Partner Tan Bin Eng,
and IRAS Manager Julia Chew.

Gain Heaps on Tax
with SIATP

T
          he Singapore Institute                Separately, an Authors Boost            Accredited Tax Advisor (Income Tax & GST)
          of Accredited Tax                 Clarity session facilitated by              Ong Sim Ho engaged the participants in a
                                                                                        lively discussion of the AQQ case and the
          Professionals (SIATP)             Irving Aw, author of LexisNexis             implications on advisory practice.
          escalated its efforts to          Annotated Statutes of Singapore
promote tax excellence through a            – GST Act, explored the indirect                 For more information on achieving
galore of tax events in July.               taxation for e-commerce and how             tax excellence, visit www.siatp.org.sg
    The month started with a                Singapore measures up in relation           today and sign up to be an accredited
Tax Excellence Decoded session              to international developments.              tax professional.
on maximising the benefits of                   The month
Productivity and Innovation Credit          concluded with a
(PIC) with Partners from Ernst and          lively discussion
Young Solutions LLP, Tan Bin Eng,           on the AQQ case
also an ASEAN Leader for Business           which was facilitated
Incentives, and Chai Wai Fook, also an      by Accredited Tax
Accredited Tax Advisor (Income Tax).        Advisor (Income Tax
    The inaugural ISCA-SIATP Annual         & GST) Ong Sim Ho
Tax Forum for small and medium-             who deep-dived into
sized enterprises was a great               the case specifics and
success. Led by a panel of thought          more importantly,
leaders with expertise in PIC, PIC          highlighted the
                                                                      Lawyer and author Irving Aw examined the issues
errors and Innovation & Capability          advisory practice         surrounding the current domestic treatment of
Voucher, they shared their knowledge        implications post-        e-commerce transactions for Singapore GST, and
with the audience.                          AQQ.                      recent international developments.

                                                                                                             September 2014   15
IN TUNE
ISCA NEWS

New ISCA
Members Receive
Rousing Welcome
C
          lose to 70 new members          More importantly, the session
          attended the New Members’       provided new members with a better
          Night on June 19 at ISCA        understanding of the many ways that
          House. The event was            ISCA provides support to prepare
designed to welcome new members           them for the changing demands of                    ISCA President Gerard Ee spoke
to the ISCA family, celebrate their       the profession, thus helping them                about the Institute’s multi-faceted
professional achievements and             stay ahead of their game.                        roles, and how it supports members
provide an overview of the Institute’s        ISCA President Gerard Ee,                    in their accountancy journey.
multi-faceted roles in the global         along with the Institute’s senior
and national accountancy arenas.          management members, extended a                   warm welcome to the new members.
                                                                                           Mr Ee spoke about strengthening
                                                                                           ISCA’s role as a thought leader and
                                                     ★                                     championing projects that will help
                                                                                           shape the profession. He advocated
                                   “The reason I wanted to                                 the outcomes approach, and
                                 take up the CA (Singapore)                                provided relatable examples from his
                                   qualification is because                                vast experience on how businesses
                               Singapore is at the centre of an                            can thrive if they understand their
                               exciting Southeast Asia region                              strategic outcomes and priorities.
                                and I can keep in touch with                               Raising the standing of the Institute
                                 all the latest developments                               will also help elevate the regard that
                                 through this membership.”                                 others have of ISCA members.
                                               YOSHIO EHARA                                     Dinner provided an opportunity
                                                CA (Singapore)
                                                                                           for lively discussions with like-minded
                                    Manager of Internal Audit Office (Tokyo),
                                     The Bank of Tokyo-Mitsubishi UFJ Ltd                  professionals; it was also the time to
                                                                                           showcase creativity and knowledge

                                                                                          ★
                                                                       “CA (Singapore) provides
                                                                        good job opportunities
                                                                           and is respected
                                                                            and recognised
                                                                           internationally.”
                                                                                 TAKUJI KOBAYASHI
                                                                                   CA (Singapore)
                                                                                   Senior Manager,
                                                                          SCS Global Professionals (S) Pte Ltd

  Memory, wit and speed proved to be the winning combination
for the team which topped the ISCA Quiz.

16   IS Chartered Accountant
★
                                                                “The CA (Singapore)
                                                             brand makes me stand out
                                                             among other professionals.”
                                                                        LEE KIAN JOO (left)
                                                                          CA (Singapore)
                                                                            Executive,
                                                                      Sony Asia Pacific Pte Ltd

                                                                     RAIS BIN MAHMUD (right)
                                                                          CA (Singapore)
                                                                       Accounts Supervisor,
                                                                        Acronis Asia Pte Ltd

                                                       of the Institute through the ISCA              treasured memories in the form
                                                       Quiz. The winning team portrayed               of photographs of the Certificate
                                                       excellent team spirit as they proved           Presentation Ceremony. The event
                                                       to be faster and more innovative               was well received with many
                                                       than other teams in submitting their           members giving it the thumbs-up for
                                                       answers.                                       being interesting and engaging.
                                                            The New Members’ Night was                    We would like to thank our new
                                                       a light-hearted session which                  members for joining us at this event.
                                                       provided a platform to build                   We look forward to supporting you
                                                       lasting connections with other CA              in your development as a member of
              Members engaging in lively discussion    (Singapore). Members took home                 the accountancy profession.

                                                                                                  Members Engagement and Events
                                                                                         Calendar of Events 2014
Sep:08                                                 Upcoming Events                                     Members’ Privileges
                                                              ISCA Breakfast Talk
 10     ISCA Breakfast Talk                             8
                                                              GST Risk Management and
Sep     Sustainability Reporting                       Oct
                                                              Harnessing Technology                                              Bintan Lagoon Resorts
                                                                                                                            10% off best available rates for
 17     ISCA Mingles                                    9     ISCA Engagement with
                                                                                                                                accommodation and F&B
Sep     Understanding Wills & Trust                    Oct    Deloitte & Touche

 19                                                                                                                                      Body Contours
        SSQC Workshop                                  10
                                                              ISCA Engagement with EY                              Enjoy a complimentary Deep Cleansing
Sep                                                    Oct
                                                                                                                   Face Spa or Slimming Contour Wrap or
 25                                                    15                                                                       Back De-Stress Massage
        ISCA New Members’ Night                               ISCA Mingles
Sep                                                    Oct
                                                                                                                                     National Geographic
 26     ISCA-DBS Working Capital                              Accelerating Business Growth Through         Enjoy special subscription rates of up to 43% off
Sep     Advisory Seminar                                17    Technology
                                                                                                                                                       Privé
                                                       Oct    SMP Dialogue: Beyond the Status Quo –                         Enjoy 40% off 1st-time trial and
                                                              4 Lessons for SMPs                                                20% off ala-carte services
                                                        18                                                                           The Wine Company
                                                              IPG Closing Ceremony
                                                       Oct                                                  10% savings on all food & wine for dine-in and
Limited spaces are available for each event and they
are on a first-come-first-served basis.                                                                       30% savings on wine by bottle for takeaway
                                                        6
                                                              International Accountants’ Day
                                                       Nov
Dates and events are subject to change without prior
notice.                                                12
                                                              ISCA Breakfast Talk
                                                       Nov
For more details                                                                                                                          For more details
http://corp.isca.org.sg/membership/events-calendar     19                                                  http://members.isca.org.sg/MemberPrivilege.asp
                                                              ISCA Mingles
                                                       Nov

                                                       29
                                                              ISCA Games Closing Ceremony                                   September 2014     17
                                                       Nov
FOCUS
SINGAPORE ACCOUNTANCY CONVENTION 2014

                 Singapore
                Accountancy
               Convention 2014
                                         Staying Ahead of the Curve

 IN
                         light of a business landscape that
                         is becoming increasingly complex
                         and highly regulated, this year’s
                         Singapore Accountancy Convention
                         2014 explored the pertinent
                         issues and challenges that the
                         profession is facing. At the core of
                         these discussions was a desire to
                         make �inancial reporting, and the
profession as a whole, more relevant to stakeholders.
    As such, the Convention sought to provide practitioners
with an understanding of the developments that matter             Delegates received their Convention materials during registration.
most, in the key disciplines of accounting, auditing, ethics
and integrated reporting. Raising the level of awareness of
these key topics would help accountants to stay ahead of            Delegates heard and learnt from a distinguished
the curve in a fast-evolving environment.                       roster of speakers including Professor Arnold Schilder,

18   IS Chartered Accountant
ISCA President Gerard Ee gave the opening address
at the Singapore Accountancy Convention 2014.

Chairman, International Auditing and Assurance
Standards Board, and Hans Hoogervorst, Chairman,
International Accounting Standards Board.
    This year’s Convention also saw the winners
of the inaugural Singapore Accountancy Awards.
The Awards recognises outstanding practices and
individuals in the profession.                      Meeting old friends and making new ones, the Convention provided a
    Here are the highlights of the Convention,      good platform for networking.
which took place from July 30 to August 1, at
Marina Bay Sands.

                                                                                                     September 2014      19
FOCUS
SINGAPORE ACCOUNTANCY CONVENTION 2014

              ISCA Ethics
                                                                                         “Furthermore, given the changing
                                                                                    business landscape and ongoing
                                                                                    economic uncertainty, accountants
                                                                                    may often �ind themselves in situations

                Forum
                                                                                    where they have to choose between
                                                                                    ful�illing economic interests and
                                                                                    ethical considerations. They may
                                                                                    also be presented with opportunities
                    The Profession’s Commitment to                                  where they may be tempted to take
                     Strengthen Public Confidence                                   advantage of other parties for personal
                                                                                    gain despite knowing that it is ethically
                                                                                    unsound to do so,” said Mr Ee.

                                                                                     “ Therein lies one of the

      T
                       he �irst day of     sector, and the profession has over       recurring issues faced by
                       the Singapore       the years developed a Code of Ethics
                       Accountancy         to de�ine what it means to be ethical.
                                                                                     our profession when it
                       Convention 2014     “Even so, mastering this aspect of our    comes to ethics. What it
                       kicked off with     profession remains challenging as         means to carry out our jobs
                       a topic that has    ethics is rather amorphous in nature,     with honesty, integrity,
                       generated much      going beyond guidelines and structures
                       interest in the     to relate to the intrinsic personal
                                                                                     objectivity, due care and
                       media and the       ethical values held by each and every     confidentiality will vary
profession, especially in recent times.    accountant,” he said.                     across individuals.”
    In the years since the global
�inancial crisis led to the collapse of
�inancial institutions and staggering
losses for investors, the ethical
practices of the corporate world
have come under increased scrutiny.
As the guardians of good corporate
governance, the accountancy
profession has not been spared.
Professional accountants today
have to deal with a multitude of
challenging ethical issues from auditor
independence to money-laundering.
    In his opening address to the                ISCA President
Convention’s ISCA Ethics Forum on               Gerard Ee, in his
July 30, Gerard Ee, President, ISCA,       opening address, said
                                               that ethics forms
said that ethics forms the foundation of       the foundation of
professional conduct in the accountancy    professional conduct.

 20   IS Chartered Accountant
PRESENTATION
A GLOBAL CODE OF ETHICS
JAMES SYLPH
Recently-retired Executive Director of
Professional Standards & External Relations,
International Federation of Accountants

T
         he high-pro�ile ethical failures at Enron, WorldCom
         and Satyam, where creative accounting was utilised
         to achieve dishonest ends, have led many to question
whether the accountants and auditors involved had ful�illed
their �iduciary responsibilities.
    In light of these developments, James Sylph, the recently-                         He noted that while accounting standards are becoming
retired Executive Director of Professional Standards &                             more uniform globally, IESBA’s ethical standards are still
External Relations, International Federation of Accountants                        some way off from universal adoption. “Many national
(IFAC), addressed the future expectations of the profession.                       regulators believe that their local codes are better understood
“The global �inancial crisis came as a shock and surprise to                       and have history behind them. They feel that if they use an
many parties. Every party has to ask itself the question of                        international code, they would have a lot more questions than
what can be done better to enhance audit quality and increase                      are worth answering,” he said.
public con�idence,” he said.                                                           He added that the IESBA Code is a living document that
    “We are �irst and foremost a global profession. We                             changes according to an evolving environment, and while
speak as one voice and we do have the public interest in                           most people think that the IESBA Code is focused on auditor
mind. That is part of our mandate and we have to raise our                         independence, it is actually much broader than that.
game. Complacency is not an option.” He went on to detail                              He went on to highlight several areas in IESBA’s current
the response of the International Ethics Standards Board                           work programme for the IESBA Code, which is targeted at
for Accountants (IESBA) to the ethical challenges facing                           both auditors and Professional Accountants in Business
the profession. IESBA is an independent standard-setting                           (PAIB). For instance, IESBA is addressing three priority
body that serves the public interest by setting robust,                            issues with respect to PAIB, with an exposure draft for
internationally-appropriate ethics standards, including                            approval expected in January 2015. These issues include:
auditor independence requirements, for professional                                + Pressure by superiors and others to engage in unethical
accountants worldwide. These are compiled in the Code of                               or illegal acts;
Ethics for Professional Accountants (IESBA Code) handbook.                         + Responsibility of PAIB to produce �inancial reports that
                                                                                                          are faithful representations of the
                                                                                                          economics of transactions, and
  GLOBAL ADOPTION OF IESBA CODE                                                                           + Facilitation payments and bribes.

  Status                   Total  Asia/Oceania
                           number                                                                            IESBA is proposing a cooling-off
                                                                                                         period for key audit partners (KAPs)
  Adopted                  84              Australia, Bangladesh*, Brunei Darussalam, Cambodia,
                                           Fiji, Hong Kong SAR, Japan, Kazakhstan, Kyrgyzstan,           on audit of public interest entities
                                           Malaysia, Mongolia, Nepal, New Zealand, Philippines,          (PIE). This would involve a �ive-year
                                           Russian Federation, South Korea, Sri Lanka*, Uzbekistan       cooling-off for Engagement Partners
  Committed                14              India, Pakistan*, Papua New Guinea, Singapore,                (EPs) and two years for all other KAPs.
  to Adopt                                 Sri Lanka*                                                    An exposure draft for this proposal is
  Based on                 15              China (mainland), Pakistan*, Vietnam                          expected to be issued soon.
  IESBA Code                                                                                                 On the hotly-debated issue of
                                                                                                         auditors providing non-assurance
  Process of               19              Bangladesh*, Indonesia, Sri Lanka*, Taiwan, Thailand
  Convergence                                                                                            services to clients, he said, “Some
* Country has more than one professional body at different stages of convergence
                                                                                                         countries will say you can’t do any other
• Member of G-20                                                                                         work for the client if you are the auditor.

                                                                                                                              September 2014     21
FOCUS
SINGAPORE ACCOUNTANCY CONVENTION 2014

But other countries say it is in the public interest to use his      of laws and regulations to an appropriate authority.
knowledge for non-assurance stuff.” Among other proposals,                An August 2012 exposure draft proposal that
IESBA is considering the withdrawal of emergency exception           requires auditors to disclose to an appropriate authority
provisions regarding bookkeeping and tax services.                   when there is suspected non-compliance with laws and
    IESBA will also be reviewing the structure of the                regulations has faced signi�icant pushback from various
IESBA Code to enhance its usability. He noted that many              stakeholders, he shared. “Some – mostly regulators – say
practitioners believe that “it is a good code, but not easy          that this is exactly what you should do, while auditors
to understand”.                                                      and audit �irms say that you should tear up the proposal
    One key ethical dilemma facing the profession pertains to        and start all over again.” This has prompted IESBA to hold
whistle-blowing – more speci�ically, when a public accountant        three roundtables around the world to obtain more views
should override con�identiality and report non-compliance            from the ground.

 ISCA ETHICS COMMITTEE                                               Members
                                                                     Kwok Wui San, Chairman, Ethics Committee; Interim Chair,
 Pursuant to the announcement of the reconstitution of the           IESBA, and Partner, PwC
 ISCA Ethics Committee (EC) at the ISCA Ethics Forum,
 Singapore Accountancy Convention 2014, the first ISCA EC            Sajjad Akhtar, Managing Partner, PKF-CAP,
 meeting was held on August 15 at the ISCA Boardroom. At the         and Chairman, PKF International
 meeting, ISCA President Gerard Ee shared his belief that ethics     Patrick Ang, Deputy Managing Partner, Rajah & Tann
 is the most important topic for the accountancy profession          David Gerald, President & CEO,
 because it tells people what is right and wrong, and reaffirmed     Securities Investors Association (Singapore)
 ISCA’s position to raise ethical standards for the accountancy
 profession in Singapore.                                            Ong Bee Yen, Partner, Assurance & Advisory Service,
      Kwok Wui San, Chairman of ISCA EC, also explained the          Deloitte & Touche
 objectives and strategic direction of the EC. The focus of the      Tan Seng Choon, Partner, Assurance & Professional Practice, EY
 EC in the coming months would be to revise the ISCA Code of
 Professional Conduct and Ethics, and issue a pronouncement          Observers
 to professional accountants in Singapore on the requirements        Uantchern Loh, Chief Executive,
 and guidelines on anti-money laundering and countering the          Singapore Accountancy Commission
 financing of terrorism.
                                                                     Julia Tay, Deputy Chief Executive, ACRA
      Do look out for further updates on the above projects
 from the ISCA EC.                                                   Richard Teng, Chief Regulatory Officer, Singapore Exchange

     (from left) Uantchern Loh, Tan Seng Choon, Julia Tay, David Gerald, ISCA President Gerard Ee, Kwok Wui San, Sajjad Akhtar,
     Patrick Ang, Richard Teng, ISCA CEO Lee Fook Chiew; not in picture: Ong Bee Yen

22     IS Chartered Accountant
PRESENTATION
THE SINGAPORE
PERSPECTIVE
KWOK WUI SAN
Chairman, ISCA Ethics Committee,
Interim Chair, IESBA, and Partner, PwC

P
         roviding a local point of view on the issue of ethics
         was Kwok Wui San, Chairman, ISCA Ethics Committee;
         Interim Chair, IESBA, and Partner, PwC.
    “The IESBA Code is the benchmark which Singapore
should aspire to as a minimum. If we look at the IESBA Code, it    that the reconstituted ISCA Ethics Committee would
deals with principles of behaviour and standards of practice,”     commence work in August. The committee’s �irst priority
he said.                                                           will be to get Singapore’s ethics standards up to the
    He noted that Singapore is aiming to converge its own          international benchmark. It also aims to provide guidance
code of ethics with IESBA’s by year’s end. “I don’t think we are   and interpretation of ethics standards and raise awareness
lagging behind; we have regulations that are stricter than the     of such standards. (See facing page “ISCA Ethics Committee”).
IESBA Code in some areas, but until we align our ethics code           “Singapore is at a stage that if you want to be an
with the IESBA Code, we can’t say we are ahead of the curve.”      accountancy hub, the profession must be seen to be trusted
    He also urged the profession to kickstart the process of       and relevant. And ethics plays a big part in upholding that
international convergence. In this regard, he revealed             image,” he said.

                                                                   PRESENTATION
                                                                   AUDITOR INDEPENDENCE
                                                                   RUTH PICKER
                                                                   Asia Pacific Risk Management Leader, EY Australia

                                                                   being paid by the company being audited and determined
                                                                   by its management, there was an apparent con�lict of
                                                                   interest for auditors. She added that it was not uncommon
                                                                   for auditors to be pressured by management to overlook
                                                                   certain issues. One simple solution to this conundrum
                                                                   was to let the company’s audit committee, and not its
                                                                   management, set the audit fee.

I
     n her presentation, Ruth Picker, Asia Paci�ic Risk                To cope with such challenges, Mrs Picker said that EY’s
     Management Leader, EY Australia, tried to answer the          code of conduct prohibits the �irm from working with clients
     question of what impartial judgement means for auditors       that do not share its values regardless of what may or may
and whether it can really exist.                                   not be acceptable in a particular country. “We do not subject
    “How do we protect auditors to allow them to display           ourselves to undue pressure to do (unethical) things,” she
that objectivity?” she asked. She said that with audit fees        summed up.

                                                                                                                       September 2014   23
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