Technical Accounting Advisory | KPMG | SG

Technical Accounting Advisory

Technical Accounting Advisory

KPMG can assist with the application of existing and changing regulatory and reporting standards.

Assistance with applying existing and changing regulatory and reporting standards.

In today's fast changing regulatory environment, it is increasingly difficult for companies to keep ahead of new reporting requirements.

International Financial Reporting Standards (IFRS) is now the accepted accounting standard in more than 100 countries around the world with Singapore targeting to move towards its full convergence to IFRS by 2018. In addition, a series of revised accounting standards, such as Revenue Recognition, Financial Instruments and Leases, are dramatically changing how companies account for transactions. Given these changes in the accounting reporting requirements, it is increasingly important for companies to have access to up-to-date advice on forthcoming changes to reporting requirements and the implications to their businesses.

Companies require assistance in applying existing and changing regulatory and reporting standards as they may not have the in-house resources and experience necessary to track and implement changes.

KPMG adds industry insight, benchmarking capabilities and help clients avoid ‘reinventing the wheel’.

Technical accounting advisory usually includes the following services:

 

Transaction accounting advice

KPMG’s AAS professionals have in-depth and current knowledge of various accounting standards such as IFRS, Singapore Financial Reporting Standards (SFRS), Statutory Board Financial Reporting Standards (SB-FRS) and US Generally Accepted Accounting Principles (US GAAP).

We have experience assisting clients during transactions and events that result in complex technical accounting such as IPOs and listings, financial asset transfers, transactions involving complex financial instruments, financing, leasing, share based payment schemes, amongst others.

 

Hedge accounting advisory

We have developed services in response to client requests for a hedge accounting program that will complement risk management activities.

To avoid surprises in the client’s financial statements, we will ensure that full compliance with all hedge accounting requirements can be achieved when implementing a hedge accounting program.

The AAS team can also design accounting policies and procedures, including hedge documentation templates, design of effectiveness testing methodology and assist in the related operational implementation.

 

General accounting policy advice

The AAS team can assist in reviewing or completing a comprehensive set of accounting policies as well as special area policies.

We add value to companies by benchmarking accounting policies to the accepted industry practices.

 

Accounting changes and QuickScan

With the various projects from the IASB and FASB to achieve global convergence of accounting standards, IFRS are changing especially in the area of Leases, Revenue Recognition and Financial Instruments.

We provide advice on the potential implication of such changes and practical insights on how companies can navigate through the transition in an effective manner.

The team can perform a quick scan or a detailed assessment on the impact of accounting changes on:

  • Financial statements
  • Processes and procedures
  • IT systems
  • Business

 

On-call accounting advice

In order to assist the client’s finance personnel with complex accounting issues and ever-changing accounting standards, KPMG can offer both oral and written advice on accounting issues or interpretation of standards on either a case-by-case basis or over a period of time. We serve as a ‘sounding board’ for clients to help them ensure the high quality application of accounting policies which mitigates the risk of being challenged on their accounting.

 

Success stories

The client wished to apply hedge accounting on purchases and sales of commodities to manage its volatility to foreign currency fluctuations.

Assisted with their hedging strategy, drafting of policies and procedures detailing the hedge accounting process, hedge effectiveness testing methodology, and the preparation of hedge documentation.

Conducted interactive workshops and high-level reviews. The client was able to understand both the accounting requirements and corresponding impact on its existing business processes and operations.

The client had a good understanding of the requirements of hedge accounting and was equipped with sufficient knowledge to apply it.

The client implemented the hedge accounting policies and procedures, and hedge documentation in compliance with FRS 39.

A Japanese trading company in Singapore
Accounting advice and support for the financial statement consolidation process.

Designed a consolidation reporting package for head office reporting.

Gathered financial statements and account for consolidation.

Prepared consolidated accounts.

 

Consolidated reporting package for head office reporting.
Local Statutory Board
Assessment of various co-funding models between the client and its subsidiary to understand the financial and operational impact under each model from both accounting and taxation perspectives.

Conducted discussions with the client to analyze and understand the needs and relationship between the client and its subsidiary.
Assessed each co-funding model individually, considering its accounting implications and tax efficiency.

Quantified the financial impact on the client's and the subsidiary's financial statements under each co-funding model.

Evaluated and ranked the co-funding models in respect to the complexity of the accounting, taxation and implementation issues.

Identified the industry's best practices to enhance the implementation of the co-funding arrangement and provided practical approaches to address the potential challenges under the recommended co-funding model.

Wrote a paper on the accounting and taxation implications of each co-funding model and an assessment of the financial and operational impact of each.

Shared KPMG's observations of the industry's best practices for co-funding arrangements for purposes similar to those of the client.

Presentation on KPMG's recommended co-funding model that best fits the client's criteria.

 

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