Financial Reporting Practice Guidance No. 1 of 2016 – Areas of Review Focus for FY2016 Financial Statements

Financial Reporting Practice Guidance No. 1 of 2016 – Areas of Review Focus for FY2016 Financial Statements

ACRA issues Financial Reporting Practice Guidance No. 1 of 2016 on 8 December 2016.

In 2016, weak market sentiments and continued slow-growth in the global environment have affected many Singapore companies. This Practice Guidance highlights seven financial reporting areas, which may require more attention by the company directors before approving the 2016 Financial Statements. These areas include going concern assumption, impairment assessment of long-lived assets, recognition of one-off gain or loss, and business acquisitions. Please click here to download the Practice Guidance No.1 of 2016.

The primary objective of the FRSP is to guide directors to comply with the prescribed Accounting Standards in Singapore. In September 2016, ACRA published its second annual FRSP report on key findings from reviews of listed companies’ 2014 Financial Statements. In the report, it was observed that there were fewer cases with findings when compared to the inaugural report. Many listed companies also took quick action to rectify financial reporting gaps highlighted by the FRSP. The four areas with the highest instances of findings were new consolidation standards, business acquisitions, impairment of long-lived assets and fair value of properties. Please click here to download the second FRSP annual report.