Programme Objective

This course is specially conceptualised and designed to provide you the top 18 lessons we learnt from the financial scandals that have rocked the world and the relevance of ethics, personal and professional skills that are expected in preparing financial statements.

This course will also provide an opportunity to accountants and auditors to develop an independent mindset to compare and question different ethical perspectives. Additionally, the course offers you the tools and techniques that you can apply in performing financial analysis. A first of its kind, this course will point out some of the things that accountants and auditors missed along the way, which were eventually brought to light in the financial scandals of recent years.

Participants will take away with them a number of lessons regarding the professional conduct and ethics in preparing financial statements, as well as the evaluation of the quality of financial reporting by companies.

This is a highly interactive course which will include plenty of short case examples, fun facts, ethical dilemmas faced by accountants and real-life illustrations using several renowned and reputable public listed companies to help reinforce the learning concepts and outcomes.

Participants will, after this course, be able to appreciate the ethical and professional obligations of accountants in preparing financial statements and particularly, to:

1. Distinguish between different definitions of earnings (eg. EBIT, EBITDA, operating income, income from continuing operations, net income, etc.) [FRS 1 – Presentation of Financial Statements];
2. Explain how trends in cash flow from operations can be more reliable than trends in earnings) [FRS 7 – Cash Flow Statements];
3. Contrast cash-basis and accrual-basis accounting and explain why accounting discretion exists in an accrual accounting system [The Conceptual Framework for Financial Reporting issued by the Singapore Accounting Standards Council (ASC)];
4. Explain opportunities and motivations for management to intervene in the external financial reporting process and the mechanisms that discipline such intervention;
5. Explain potential problems that affect the quality of financial reporting, including revenue recognition, expense recognition, balance sheet issues, and cash flow statement issues, and interpret warning signs of these potential problems [FRS 18 - Revenue; FRS 36 – Impairment of Assets; FRS 37 - Provisions, Contigent Liabilities and Contingent Assets; FRS 38 – Intangible Assets];
6. Explain the professional values, ethics and attitudes that identify Chartered Accountants as members of a profession; and
7. Explain the legal and ethical obligations of a Chartered Accountant of Singapore.

Programme Outline

Module 1 – The Top 5 Lessons We Learnt: An Overview of What Went Wrong in Ethics & Governance

• Lesson #1 – Understand What You Are Looking At
• Lesson #2 – Read the Fine Print
• Lesson #3 – If It’s Too Good to Be True, It May Be
• Lesson #4 – Follow the Money
• Lesson #5 – Understand the Risks
• The Future of Financial Analysis in the Post-Crisis Era

Module 2 – The 13 Lessons in Evaluating the Quality of Financial Reporting: The Importance of the Chartered Accountant’s Professional Judgement, Ethical Discretion and Professional Skills

• Accrual versus Cash Accounting
• Manipulation Incentives
• Disciplining Mechanisms
• Revenue Recognition Issues - Accelerating Revenue
• Ratio Detection
• Classification of Nonrecurring or Nonoperating Revenue as Operating
• Expense Recognition – Understating Expenses
• Expense Recognition – Deferring Expenses
• Classification of Operating Expenses as Nonrecurring or Non-Operating
• Big Bath Provisions
• Off-Balance-Sheet Liabilities
• Balance Sheet Goodwill
• Cash Flow Statement Issues

Module 3 – Concepts Integration and Reflection Time

The Trainer will reinforce the learning outcomes for this course by sharing with participants the following recent case study examples, which are continuing to evolve and make headlines news as we speak today:

Practical Case Studies

• Bad Blood at Theranos: Fake It ... Till You Make It at Silicon Valley.
• Real Estate at Evergrande: Will China Export Another Crisis?
• Troubled Water at Hyflux: Flapping Red Flags Missed at a Singapore Darling.

End-of-Session Finale – “Who Wants to be an Ethics Guru?” Why Attend this Seminar? Why this One?
 

Why Attend this Course? Why this One?

The answer is communication. This course will help you better understand the language of finance.

The Trainer is a highly experienced practitioner and instructor and is well-regarded for his ability to translate complex financial concepts into plain language, and the use of illustrations, examples and real-life experiences to help develop/enhance your understanding of financial reporting and ethical issues.

The Trainer is able to draw on his full depth of knowledge about accounting, creativity and experience to develop compelling and enjoyable programs.
 

Training Methodology

Seminar style - Story-telling, Fun Facts, Short Case Examples, Real Life Illustrations, ‘Talk to Your Neighbour’, “It’s Movie Time” with pre- and post-screening activities, and plenty of team activities such as the Trainer’s “trademark” end-of-day fun and exciting quiz (Who Wants to be an Ethics Genius) which will help reinforce the learning concepts and outcomes.

Closing Date for Registration
1 week before programme or until full enrolment

Intended For

An Intermediate Level programme intended for both Practising and Non-Practising Accountants. Professionals who wish to understand the professional obligations and ethics in preparing financial statements, as well as the evaluation of the quality of financial reporting by companies are welcome to attend.

Competency Mapping

Category 2 = 7.00 Hours

Programme Facilitator(s)