Illustrative Annual Report 2007

Business communities across the world have recognised that in order to attract long-term capital, they need to create Trust and demonstrate Transparency in their communications with their stakeholders.

The 2007 edition of PricewaterhouseCoopers’ publication “Towards Trust and Transparency - Illustrative Annual Report” aims to help directors, audit committee members, management and preparers of financial statements achieve high-quality financial reporting with best-practice illustrations of disclosures under the various requirements of the Singapore Financial Reporting Standards (FRS), Singapore Companies Act and Singapore Exchange Listing Manual.

There are a number of new and critical illustrations included in this publication, starting with the new disclosure requirements under FRS 107 Financial Instruments: Disclosures and amended FRS 1 Presentation of Financial Statements: Capital Disclosures.

Whilst the disclosure of financial risks is not new, FRS 107 introduces many new quantitative disclosures. Some examples include amount of receivables that are past due but not impaired, future cash outflow on financial instrument on an undiscounted basis and sensitivity analysis to market risks on financial assets. In addition, FRS 107 and amended FRS 1 introduce a new approach to disclosure - disclosure of information that is used by key management in their measurement and monitoring of financial risks and capital. This new approach allows users to have an insight into how key management views the companies’ financial risks and what constitutes capital, specific risk management policies and processes, or the lack of them. Due to sensitivity of these new disclosures, you are encouraged to plan and prepare for the disclosures under FRS 107 and amended FRS 1 well in-advance of the financial year-end, including the communication plans to users as most of the information may be reported for the first time.

Additionally, we have included a useful illustration on the adoption of FRS 40 Investment Property in the illustrative financial statements, including the controversial accounting of the related deferred tax on fair value gains. In the Appendices, additional illustrations on complex areas such as multi-element arrangements, post-employment pension and medical benefits and other critical accounting estimates and judgements are also included. In addition, a detailed summary of the key changes in new or amended FRSs can be found in the section on "Summary of Key Changes on SFRS" in this publication.

The International Accounting Standards Board currently has 31 topics for amendments or new International Financial Reporting Standards (IFRS) on its active agenda. More than half of these are expected to have an impact on preparation of financial statements from 2009. The topics expected to require significant time to understand and implement include Operating Segments, Customer Loyalty Programmes, Insurance Contracts, Business Combinations, Service Concession and Income Taxes. For many companies, getting ready for 2009 will certainly be challenging. It is worthwhile to evaluate these changes and consider adopting some of them earlier so as to spread out the burden of implementing new standards in a big-bang manner.

We trust that you will find this publication an excellent resource for the preparation of your companies’ annual reports for the coming financial year-end. Please consult with PricewaterhouseCoopers partners and managers should you have any questions or comments regarding this publication or the implementation of the new standards.


1. Foreword and Publication Guide (1.8mb)
2. List of Technical Pronouncements (1.9mb)
3. Comparison between FRS and IFRS (1.9mb)
4. Summary of Key Changes from FRS (1.9mb)
5. Index to Illustrative Annual Report (1.9mb)
6. Board of Directors and Corporate Governance Report (1.8mb)
7. Directors' Report, Statement by Directors and Auditors' Report (1.9mb)
8. Income Statement, Balance Sheets, Changes in Equity, Cash Flow Statement (1.9mb)
9. Significant Accounting Policies (280kb)
10. Other Notes to the Financial Statements (490kb)
11. Additional Disclosure Requirements (1.8mb)
12. Additional Illustrative Disclosures (1.9mb)
13. Acknowledgement (62kb)
14. Contact Details (24kb)