On 6 November 2023, the Accounting and Corporate Regulatory Authority (“ACRA”) issued Financial Reporting Practice Guidance No. 1 of 2023 on Areas of Review Focus for FY2023 Financial Statements (“Practice Guidance”) highlighting financial reporting areas that require closer attention by directors when reviewing their FY2023 financial statements.
The Practice Guidance explains that as audit quality is also an integral part of the financial reporting ecosystem, audit committees should actively engage the external auditors and monitor the audit process to identify and resolve collectively any areas of concern. High quality audits play a crucial role in building confidence and trust in financial markets.
ACRA’s proposed areas of review focus for FY2023 financial statements are:
- Accounting impact from macroeconomic uncertainties
- Accounting impact from climate change movements
- Accounting impact from geopolitical uncertainties
- Developments in (a) new accounting standards and (b) Base Erosion and Profit Sharing (BEPS) Pillar Two
- Quality control reviews
- Audit inspection findings
The following are available on the ACRA website www.acra.gov.sg:
- ACRA announcement: Review Focus for FY2023 Financial Statements
- Financial Reporting Practice Guidance No. 1 of 2023: Areas of Review Focus for FY2023 Financial Statements