with your financial

Finance Function OutsourcingHow Deloitte can help with your financial reporting obligations

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Introduction 03

Our key services 04

Financial statements preparation 05

Preparation of group consolidation accounting workings 06

XBRL conversion services 08

Compilation and preparation of accounting/audit schedules 10

Contact us 11

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Finance Function Outsourcing | How Deloitte can help with your financial reporting obligations

Organizations face significant pressure maintaining and growing the bottom-line, especially during this period of uncertainty. Business leaders need to spend more time focusing on core business activities, while ensuring that organizations remain compliant with business regulatory requirements.

With our years of experience on finance compliance, Deloitte’s Finance Function Outsourcing team is uniquely positioned to help organizations with the various compliance activities, particularly those associated with financial reporting. Having Deloitte take on those activities frees up your people to focus on driving the bottom line.

You focus on your core business, we help you take care of the rest.

Introduction

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Our key services

Compilation and preparation of accounting schedules Preparing accounting schedules for audit is a tedious and laborious accounting task. Employers often face difficulties in obtaining sufficient and competent finance and accounting resources to do so. Our team members, with their long experience in audit, can support you in the compilation of accounting data and preparation of accounting schedules to enable a smoother audit.

Financial statements preparationAs a result of increasing scrutiny from today’s investors, regulators and other stakeholders, finance teams often struggle with compliance requirements and tight timelines. Increasingly complex financial reporting standards, lack of dedicated resources and expertise exacerbate the struggle. Deloitte’s highly trained accounting team can help you to produce high quality financial statements to help you fulfil your statutory reporting obligations.

Preparation of group consolidation accounting workingsDeloitte can assist to prepare group consolidation accounting workings for both internal and external reporting purposes. Consolidation accounting rules can be complex, especially when you have changes to the group composition and structure. With help from our highly trained consolidation team, your personnel can remain focused on supporting business activities.

XBRL conversion servicesSingapore incorporated companies are required to file their financial statements in XBRL unless excluded by the Accounting & Corporate Regulatory Authority (ACRA). As XBRL conversion and filing is typically a ‘once a year affair’, finance teams that lack the experience may be unduly bogged down with XBRL work, and this distracts them from supporting business activities. Deloitte offers assistance on your XBRL conversion needs to help you meet your statutory obligations and free up your finance team’s time for other work.

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Financial statements preparation

The challenges

• Unlike monthly/weekly recurring finance activities, preparing a full set of financial statements is an annual affair. Without the benefit of regularity, preparation of financial statements by finance teams would take time.

• With constant revisions to and increased complexity in accounting standards, it becomes increasingly difficult for those involved in financial reporting to be operationally skilled in time when the new standards become effective.

• Implications of non-compliance can be significant, including reputational and monetary losses (e.g. fines).

As finance teams grapple with the above challenges, they would have less time to focus on supporting the business.

The Deloitte solutionIn the context of financial statements preparation, Deloitte can assist by:

• Working hand-in-hand with the management in developing financial report templates that are tailored to your organization’s reporting needs, in accordance with the prevailing accounting and regulatory standards;

• Updating the financial report templates as accounting and regulatory standards change;

• Working with the organization, external auditors and other relevant stakeholders in laying out the timeline, requirements and information needed for the current year well before the year-end reporting deadlines;

• Providing training to organization’s staff on these requirements to maximize reporting efficiencies and assisting them to produce ‘auditor ready’ financial statements, reporting packages, and supporting financial report disclosures;

• Performing technical reviews of organization-prepared financial statements by senior Deloitte personnel for compliance with relevant accounting standards

These free up your finance teams to focus on supporting the business.

Beyond regulatory filings, financial statements are useful for stakeholders in assessing a company’s financial position, its performance and its exposure to financial risks etc. However, preparers of these statements do face some challenges.

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Preparation of group consolidation accounting workings

The challengesThe challenges associated with preparation of group consolidation workings are similar to that of financial statements preparation e.g.

• Unlike monthly/weekly recurring finance activities, preparing consolidation workings may be an annual affair. Without the benefit of regularity, preparation of those workings by finance teams would take time.

• With constant revisions to and increased complexity in accounting standards, it becomes increasingly difficult for those involved in consolidation workings to be operationally skilled in time for when the new standards become effective.

In addition, some organizations may have a view that it would not be economical to invest in a consolidation reporting software. This means finance teams have to resort to expending more manual efforts in dealing with consolidation complexities. These make the group reporting process even more time-consuming and prone to human errors.

The challenges are more pronounced for groups that operate several business units and in multiple geographies e.g. there could be differences in accounting frameworks and/or financial year ends adopted by the parent company as compared to its subsidiaries, associates and joint ventures.

The Deloitte solutionDeloitte can assist in:

• Developing and maintaining an up-to-date group accounting work stream for year-end reporting purposes;

• Working with the organization, its subsidiaries and other related parties within the group in laying out the timeline, responsibilities and information needed from each party for the current year well before the year-end starts, to achieve clear understanding of the accountabilities of each parties and enable the reporting deliverables to be completed within the specified timeline; and

• Providing the organization with a dedicated team of accounting professionals that are well equipped in the preparation of group consolidation as well as the complexities of the industry in which the organization operates in.

These free up your finance teams to focus on supporting the business.

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The Deloitte differenceHere are some of the benefits to take into consideration if you engage us for preparation of financial statements and/or consolidation workings:

Dedicated personnel Leverage on years of expertise of dedicated Deloitte professionals in both accounting and compliance. Primary benefits will be that of increased quality and faster turn-around times, and more time for finance team to support the business.

Use of technology and ensuring confidential information security Deloitte utilizes in-house tools to support financial statements preparation and consolidation reporting, each of which have proven track-records in providing quality outputs. Furthermore, Deloitte uses the Deloitte Connect platform as a secure and effective way of communication throughout the financial reporting process between Deloitte and the organization. Deloitte Connect is a dedicated and secured online collaboration site that facilitates a two-way dialogue between Deloitte and the organization to effectively manage engagement coordination and information sharing. It significantly reduces e-mail traffic between parties and ensure that information are shared on a timely basis by leveraging on the built-in status dashboards and email alerts within the site. Through a need-to-know-basis access requirement, it ensures that only Deloitte professionals assigned to the engagement and the organization’s assigned staff are able to access the site.

Ease of transition should you decide to Insource the preparation of financial statements and/or consolidation workings Should you decide to insource these activities in future, Deloitte will work with you to achieve a seamless transition. This may involve facilitating training and even assisting you in implementing technology solutions to automate your financial statements and/or consolidation accounting preparation activities.

One stop shop Our team comprises of various specialists, from accounting advisory to accounting operations, who are able to advise you should the need arise in the course of preparing your financial statements and/or consolidation workings.

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XBRL conversion services

The challengesWhether XBRL reporting is implemented for the first time or on a recurring basis, organizations may face hurdles in complying with the annual requirements of XBRL due to the following reasons:

• lack of competent personnel with professional working knowledge on how to perform tagging of accounts in XBRL;

• inconsistency in data-tagging which results to incomparable data submitted, which may result in the organization paying penalties for incorrect data information submitted;

• inability to upgrade and cope up with latest technological advancement due to lack of staff training; and

• extended time dedicated in the preparation of XBRL due to unfamiliarity with the interface of the XBRL system which results to less time spent in core business activities of the organization, e.g. there is a recent change from ACRA, companies are required to apply the revised filing requirement and data elements (XBRL version 3.2) from 1 May 2021.

The Deloitte solutionOur Deloitte specialists have deep knowledge and experience in providing XBRL services across multiple industries such as of fund administration, investment holding, retail, manufacturing, logistics, among others. We will work with you to develop timetable to enable you to meet XBRL regulatory reporting requirements, and we will support your organization on your XBRL conversion.

Financial regulatory bodies of several countries in South-east Asia have already made it an annual requirement for businesses to submit their annual financial statements in XBRL format. In Singapore, all Singapore incorporated companies are required to file financial statements in XBRL format with ACRA, with some exceptions.

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The Deloitte differenceHere are some of the benefits to take into consideration if you engage us for XBRL conversion services:

Cost-benefit analysis As this activity is done annually, the benefits of outsourcing the XBRL service outweigh its cost in terms of shift of focus of personnel time on other more important core business functions.

Greater accuracy We have dedicated personnel with professional experience for each engagement to ensure the quality of service being rendered.

Providing helpful guides We can assist organizations implementing the XBRL requirements for the first time by:

• Explaining to management the applicable XBRL statutory or other reporting requirements;

• Providing detailed quality reviews to identify potential compliance issues in XBRL data files; and

• Delivering recommendations and process enhancements to reduce future compliance issue

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Compilation and preparation of accounting/audit schedules

External audit is part of annual requirements of many medium and large business. Audits entail the preparation of various accounting/audit schedules and documentations by finance teams, diverting their time away from supporting the business.

The challengesSome of the challenges faced by organizations include the following:

• preparing accounting schedules is a tedious and laborious task which would lead to lower finance team morale;

• there may not be enough manpower to source and identify the supporting documents to be furnished to auditors within the stipulated timeframe, leading to audit cost overruns; and

• lack of understanding of the auditors’ requests, especially for complex financial transactions.

The Deloitte solutionLet Deloitte support you in the compilation and preparation of accounting/audit schedules. Our dedicated team of experienced accounting personnel can help you to minimize the disruptions to your day-to-day operations. Leverage on our team of professionals who have in-depth knowledge of accounting and audit to support your finance team during periods of audit.

Deloitte can help you in the time-consuming process of preparation of schedules and compilation of documents. We would also be able to cater temporary staff loan arrangements should you prefer.

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Contact us

Ghamazy RashidPartner, Advisory [email protected]+65 6531 5215

Genevieve Alvarez RobedisoSenior Manager, Advisory [email protected]+65 6800 2725

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