ACRA goes XBRL

Wef 1 April 2007, ACRA will require companies and local branches of foreign companies to file their financial statements in XBRL format via Bizfile.

To know more, sign up for "Public Awareness Seminar" and learn how to prepare and file financial statements in XBRL format.

Seminar will be held at Supreme Court Auditorium on Thursday, 30 November 2006 at 8.30 am to 12.30 noon. The eflyer says $12 (I think).

I would love to go and learn but alas I will not be in town. So to whoever intends to attend, pls share with us. Go to www.acra.gov.sg for more info.

Do a bit of national service for ACRA la..

N Khan says...

"Dear Mr. Wong,

My name is Nus and I am one of your I.IJ (revision class) student. I am a student of Singapore Accountancy Academy as well but this is the first time I am joining your class. I have already attended the first lesson and I think you have a brilliant approach to make everybody learn the concept and actually "apply" it in examination question.

You said in class, you send reading materials and assignments through the e-mails, and I would be very glad if you send me some materials as well.

I am very determine to pass this coming 1.1 exam and I believe your help will lead me to reach my destination.

Thank You So Much for taking your time to read this."

Your Student,

Ms Khan, May 2006 Revision Class

P/S On 15 Sep 2006, she did passed.

J Liew says...

"I have just completed paper 1.1 in the recent June 2005 exams.

The months of hard work have paid off and I would like to express my appreciation to Mr Edgar Wong for his unwavering commitment, patience and guidance. He has definitely helped his students cope with the subject at a more comfortable pace."

J Liew, Sep 2005

Serene says...

"By the way, I must say that you teach really well, whereby you'll put yourself in students' shoes and explain. As I had taken accounts back in Secondary and Poly days (lecturer seems to be teaching himself or maybe he could not explain clearly).

I didn't actually learn through so much understanding. I've only memorised to pass this far. As a matter of fact, I hated accounts in secondary days. I know I can't play a fool with ACCA now. Have to work triplely hard."

Serene, Sep 2005

Helena says...

"You are excellent lecturer. Your lecturing is very interesting.

I never felt boring or tired when attending your lecture after work. Besides you are very responsible lecturer who really cares about the improvement of the students."

Helena, Sep 2005

“Brave New World” in Financial Reporting

The world's biggest accountancy firms united in their call to make financial statements more meaningful for investors on 9 Nov 2006.

What are some of the proposed changes?

• They are pushing to include more non-financial information.
• They want quarterly financial statements to be replaced by real-time Internet-based reporting.
• They want to create and present a menu of fraud audit proposals at different pricing.
• Individual auditors (instead of the firm) be subject to penalty for faulty audits.

Who are the parties to this 24-page proposal?

PricewaterhouseCoopers, KPMG, Ernst & Young, Deloitte, Grant Thornton and BDO

Basis to include non-financial information

KPMG Singapore's head of audit, Tham Sai Choy explained the close link between non-financial information and valuation of a company. Example of non-financial information – the changes to a company's oil reserves, a telco's subscriber numbers, an airline’s load factor etc. Is there a need for these numbers to be audited too as they become more and more meaningful in giving guidance to investors on its performance?

Basis for Internet-based reporting

The report has also suggested that information be easily accessed by users through new Internet-based reporting technologies. The main reason for the lag is the need to assure quality and reliability of business information to users. Till then, paper-based financial statements will prevail as the only legitimate form of communicating performance.

Basis for fraud audit proposals at different pricing

• to close the expectation gap with clients to expect auditors to discover frauds and errors under current audit programmes
• to provide clients with a choice on the level of intensity of investigative work needed

My Conclusion

It is an amazing effort for so many key players of the auditing industry to be able to come together present a united front. But what is the true underlying driving this cohesion? Is the auditing profession looking at how they can enhance their relevance to the business community and thus ensure their continued economic existence? One of the proposals highlighted the need for individual auditors (instead of the firm) be subject to penalty for faulty audits.

In any industry, the industry players are encouraged to do some self-regulation to ensure service quality and fair existence before the strong arms of the LAW come in and take full control of its destiny.

Hour Glass, Gems TV and FRS39

Hour Glass paid $15.5 million for a 5% stake in Gems TV Holdings towards the end June 2006.

Who is Hour Glass and who is Gems TV?
Hour Glass is in business of retailing luxury watches and accessories and listed in the SGX.

Gems TV buys cut gemstones, makes them into handcrafted jewellery in Thailand and sells the goods through a 'reverse auction' over television shopping networks to home buyers in the UK.

Gems TV is currently offering nearly 285.8mio shares at $1.08 apiece in its IPO now.

At the offer price of $1.08, that stake will be worth $44.5mio ie. a potential unrealised investment gain of $29 million after just 4 months!!! This is definitely a situation of “got money can make more money”.

What is Hour Glass’s investment horizon?
Hour Glass has indicated that it will hold the investment for the long term. It has also agreed that it will not, without the PRIOR CONSENT (as compared to “moratorium”) of the IPO's global coordinator, dispose of any of the shares for 12 months after the listing. Thus technically speaking, Hour Glass may be able to sell its stake within 12 months.

How will Hour Glass account for this investment in their books?
Hour Glass has stated that the investment will be classified as being available-for-sale (AFS) under FRS39 – Financial Instruments: Recognition and Measurement and will thus be restated at fair market value as at the end of the financial year.

What are the impacts of this decision?
For investments under AFS, any unrealised holding gains and losses are deferred in reserves until they are realised or when impairment occurs.

Thus the unrealised gain of $29mio expected on 10 Nov 2006 will go to the reserves and not go to P&L.

Shareholders will thus see the impact on net tangible assets per share and no effect on the earnings per share.

Place your bets! Place your bets!

Hi,

Anyone dare to guess what questions will come out for Section B in the coming ACCA Paper 1.1 (ie. Dec 2006)?

Q1 -
Q2 -
Q3 -
Q4 -
Q5 -

Come on! Give it a calculated guess!!!

Good nite...