Illustrative Annual Report 2025
Set the future in motion with trust and confidence
Set the future in motion with trust and confidence
In 2025, organisations are called to set the future in motion with trust and confidence—demonstrating resilience amid an uncertain and evolving environment, while accelerating purposeful transformation in operations and reporting. Investors continue to expect companies to disclose how their climate transition plans align with their business models to provide clarity on how climate related risk are weaved into financial reporting.
Advances in Generative AI are altering operating models and governance considerations. The strategic priority is to embed AI into core processes through a disciplined, phased approach that delivers incremental benefits while building a team that can harness AI and drive good corporate reporting. Differentiation will arise from how organisations combine AI with institutional knowledge and proprietary data, supported by the right people, appropriate controls and strong oversight. Timely adoption, with a clear focus on reliability and accountability, will be essential to sustaining an advantage.
At the same time, uncertainty in the global environment is intensifying. Conflicts, tariffs, sanctions and evolving international regimes are reshaping the global economy. Resilient organisations will have to respond with rigorous planning, prudent financial and operational management and transparent reporting.
It is essential to protect and elevate trust in the turbulent times ahead, and we believe that high-quality reporting and transparent communications is critical to achieving this objective. Our 2025 Illustrative Annual Report offers practical guidance to help organisations navigate this evolving landscape.
Three key focuses in 2025
Generative AI
Uncertainty in the global environment
The impact of climate change on the financial statements
Generative AI
In 2025, GenAI strategy is about value that starts now—and it extends well beyond productivity and efficiency. With systems that can increasingly reason and understand the implications of their decisions, AI can design new solutions, strategies and even catch its own mistakes. For finance and assurance functions, that means integrating AI into the workflow, from using it to extract and verify data, perform analysis and flag unusual items to performing market analysis or research – reducing manual effort and ensuring that the work is more accurate, consistent and timely.
The other half of that equation is the human factor, it is not just about the technology, it is about the people who use them. Organisations have to commit to training their people to embrace and implement GenAI in a way that is guided by human understanding, ingenuity and experience, to build trust and deliver sustainable outcomes.
The momentum in this space is clear, nearly half (49%) of technology leaders in PwC’s October 2024 Pulse Survey said that AI was “fully integrated” into their companies’ core business strategy. What will set leaders apart is not the choice of large language model, but how they combine AI with institutional knowledge and proprietary data supported by responsible governance and ongoing upskilling. Those who act now can lay the foundations to build a human-led, tech enabled organisational model.
Uncertainty in the global environment
The global environment continues to grow in uncertainty. Ongoing conflicts, trade tensions, sanctions and tariffs, along with shifting international policy regimes are reshaping global market dynamics. Organisations must contend with managing this increase in geopolitical risk while also focusing on maintaining stakeholder confidence and trust. In this context, to thrive, organisations need to focus on building resilience while clearly communicating how these forces affect strategy, operations, capital allocation and performance.
Organisations should consider the relevant impacts on financial reporting, including reassessing indicators of impairment, revisiting valuation inputs and assumptions, and update provisions for obligations that may arise or accelerate. Equally important is transparent disclosure of these key assumptions, sensitivities, and contingencies so stakeholders can understand the company’s exposure and response. In today’s environment that is fraught with increased complexity and change, good corporate reporting is imperative to elevating trust in the eco-system. Our illustrative annual report is designed to guide you in these areas, supporting transparent and comprehensive disclosures.
The impact of climate change on the financial statements
The impact of climate change on the financial statements is increasingly in the spotlight. Investors and regulators expect evidence of how ESG—especially climate-related risks—are embedded in the estimates and judgements that underpin financial reporting. Accordingly, organisations should evaluate how climate considerations influence their financial statements and determine the disclosures needed for compliance. Transparent disclosures on these impacts can serve to strengthen relationships with key stakeholders and increase the trust they place in your organisation.
This year our illustrative financial statements includes guidance on reporting uncertainty arising from climate related factors, demonstrating the materiality assessment in determining when additional disclosures are warranted as well as examples on how to present the nature, timing and key assumptions impacted by the uncertainties even when the financial effects are immaterial. We have also set out key considerations for estimates and judgements and included signposts to guide readers to relevant materials in this space.
Highlights of the report
Corporate governance report
Impact of climate change on financial statements
Financial statements
Corporate governance report
Good corporate governance is the foundation of a healthy organisation. It not only sets the tone for how an organisation operates and behaves internally and in the market, but it also defines the relationship between the board of directors, management, and the rest of the organisation.
Corporate governance issues can vary from strategic topics such as corporate strategy, IT oversight, and innovation, to board composition and risk oversight. They also encompass real-time issues like crisis management and shareholder activism. We provide the governance expertise needed to address tough questions and tackle complex challenges.
Our network of professionals offers in-depth local experience and knowledge of corporate governance best practices and solutions, supported by an extensive global network. We collaborate with you to identify and assess key governance and compliance risks, integrating their management into your existing processes.
Impact of climate change on financial statements
The impact of climate change on the financial statements is a high-profile issue. Investors and regulators are increasingly looking for evidence of how the entity has incorporated ESG matters and in particular climate-related risk factors when making estimates and judgements in the preparation of the financial statements. Climate-related risk could include both transition impacts, for example additional costs incurred by the entity as a result of transitioning to a low-carbon economy, or physical impacts, such as damage to assets as a result of fires and flooding.
The accounting standards have an overarching requirement to disclose information that users need for them to understand the impact of particular transactions, events and conditions on the entity’s financial position and financial performance. Therefore, in light of the current focus on, and impact of, climate change, entities should ensure that they have assessed the impact of climate change on measurement of assets and liabilities, and what disclosures are necessary in this context for the financial statements to comply with Singapore Financial Reporting Standards (SFRS)(I)s.
This appendix discusses how climate change could affect certain measurements and therefore the related disclosures in the financial statements. It also outlines some of the relevant considerations when making estimates and judgements and drafting the relevant disclosures to satisfy the current SFRS(I) requirements. We have provided signposts throughout the main publication as reminders for readers to refer to this guidance where necessary.
Financial statements
These accounting guidance from PwC provide additional information and are supplementary to the illustrative disclosures presented in this Illustrative Annual Report.
Capital Markets and Accounting Advisory Services
Companies embarking on new business or capital market transactions, whether through an initial public offering (IPO) or via a merger with a special purpose acquisition company (SPAC), or by obtaining green and sustainable financing through schemes announced by the Monetary Authority of Singapore (MAS), face new challenges due to increasingly stringent compliance and regulatory requirements. With the evolving reporting requirements, the scrutiny on accounting and financial reporting has never been so high and the digitalisation of the finance function is also playing an increasingly important role.
Whether the ultimate choice is through an IPO, SPAC, or direct listing, companies need to objectively assess their readiness for life as a public company.
PwC’s Capital Markets and Accounting Advisory Services (CMAAS) team has many years of experience in successfully advising companies on issues relating to accounting and financial reporting. From complex accounting topics to questions about the conversion of accounting standards to IFRS to digitalisation - no matter what challenge you face, we are there for you.
Last mile reporting | Capital Markets and Accounting Advisor
Our commitment
As regulatory requirements and stakeholder expectations continue to evolve setting the future in motion requires more than just a focus on financial performance; it demands an ongoing commitment to transparency, sustainable practices, and credible reporting. These are the fundamental building blocks to creating a robust system of corporate reporting, which in turn is a critical step towards elevating trust in the eco-system. Our 2025 illustrative annual report reflects these priorities, helping organisations navigate the complexities of sustainability reporting, risks management, and communicate value creation effectively to stakeholders.
We believe growth is not just about numbers—it is about creating value that is sustainable, equitable, and aligned with the needs of a changing world. Ultimately, how trust is maintained and built will be a key differentiating factor and a critical step in the way we create and protect value.  As you prepare your annual report for 2025, we hope this resource will serve as a valuable guide in showcasing your organisation’s trusted progress and transformative momentum.
We encourage you to consult with your regular PwC contact, should you have any questions or comments regarding this publication.
Illustrative Annual Report 2025
Set the future in motion with trust and confidence
Contact us
Marcus Lam
Executive Chairman, PwC Singapore
Corporate Reporting Services
Sustainability Reporting
Kok Moi Lre
Capital Markets and Accounting Advisory Services
Base erosion and profit sharing (BEPS)
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