MEDIA RELEASE

Harmony and sustainability are themes of business forum

The impacts of new accounting standards and sustainability reporting will be discussed at a high level business forum in Singapore today (Friday 11 August).

The 2006 CPA Forum, co-organised by the Institute of Certified Public Accountants of Singapore (ICPAS) and CPA Australia, is based on the Channel NewsAsia television series Business Dashboard, which they co-commissioned. It will feature a panel of distinguished business leaders who will lead the discussion on issues raised in the series, and how they affect business and the wider economy. The Guest of Honour is Mrs Lim Hwee Hua, Minister of State for Finance and Transport.

In the first session, the panel will consider the impact of the 20 new accounting standards introduced a year ago with the objective of international harmonisation.

ICPAS President Mr Tan Boen Eng said, “Aligning our accounting standards with those of the International Accounting Standards Board (IASB) has resulted in benefits which are reflected in lower capital costs for cross border listings, greater transparency and comparability, and increased investor confidence. As an international business centre, Singapore’s accounting framework is harmonised so as to meet the requirements of its constituents, including investors.”

According to CPA Australia President Paul Meiklejohn, “There is a clear need for business professionals to think about the implications for their companies and investors at a local level, as more and more nations use the financial reporting standards of the IASB. The forum provides an excellent opportunity for this type of learning.”

The forum will emphasise that the challenges presented by the new accounting standards are not the same for all companies. Some of the concerns expressed may include:

· the complexity of some of the standards;

· impact of using fair value;

· increased disclosure requirements, and

· removal of exemptions for small companies.

The forum will also consider sustainability accounting and its place in the modern business.

“Expectations that companies disclose more about their social and environmental impacts are redefining the scope of company reporting,” said Mr Meiklejohn.

“We are seeing a greater interest in sustainability accounting by companies and by investors, including large institutional and international investors. They increasingly recognise sustainability accounting as a fundamental component of business risk identification and management.”

Mr Tan said, “Burgeoning populations, unprecedented growth in consumption, depletion of natural resources and the heightening expectations of social and environmental accountability have sharpened the focus on sustainability on a global basis. Sustainability reporting by an entity shows investors and other constituents how responsible an entity is from the social and environmental perspective rather than purely from the economic perspective.“

About 400 CEOs, CFOs, directors, financial controllers, accountants and auditors will be attending the forum.