A comprehensive guide to drafting your annual report
Technological disruption, climate change, fractured geopolitics and the continued effects of the COVID-19 pandemic have created fundamental shifts in society, changing the game for businesses, governments and individuals. The uncertainties brought about by the pandemic and the increasingly complex environmental impact have made corporate reporting ever more challenging.
The 2021 edition of PwC’s Illustrative Annual Report will serve as an excellent resource to assist you in the preparation of your company’s annual report, providing stakeholders with relevant and reliable information to build trust and deliver sustained outcomes.
With an increasingly pronounced climate change impact, investors and other stakeholders are demanding more information on how the environmental issues are affecting the companies, including disclosures on measures around managing the associated physical and transition risks.
In Singapore, the SGX issued a public consultation in August 2021 proposing for issuers to provide climate-related disclosures in line with the Task Force on Climate-Related Financial Disclosure (TCFD) recommendations. While the requirements are yet to be finalised, this publication has included voluntary disclosures as per the TCFD recommendations as part of the Sustainability Report 2021.
Climate related risks may affect an entity’s decision-making processes, cash flows, financial position and financial performance. With the proposal from SGX for issuers to provide climate-related disclosures in line with the TCFD recommendations, companies will need to consider the related implications to financial reporting.
This publication highlights these considerations in the guidance note of Note 2.1, and illustrates disclosure of climate-related significant judgements, estimates and assumptions in the guidance note of Note 3.
In 2020, the International Accounting Standards Board completed its project on the financial reporting impacts arising from the global interest rate benchmark reforms (IBOR reform). The global progress on the replacement of benchmark interest rates continues in 2021.
This is expected to impact a significant number of entities, given the wide variety of financial products that draw reference to interest rate benchmarks. In particular, the IBOR reform (Phase 2) amendments is effective for annual reporting periods beginning on or after 1 January 2021 and certain IBOR reform illustrative financial statement disclosures can be found in Appendix 3 of this publication.