Financial Accounting Assignment

This financial accounting assignment analyzes Hyflux Limited, covering two main parts. Part A examines accounting standard regulatory bodies in Singapore, specifically the Singapore Accountancy Commission (SAC) and Singapore Financial Accounting Standards (based on IFRS). Part B delves into Hyflux Limited's financial statements, analyzing the difference between net profit and comprehensive income for 2016 and detailing the types of entities under Hyflux Limited, including subsidiaries (Hydrochem (S) Pte Ltd, TuasOne Pte Ltd, Hyflux Membrane Manufacturing (S) Pte Ltd, Hyflux Engineering Pte Ltd, TuaSpring Pte Ltd, Spring China Utility Ltd), joint ventures (Star Infrastructure Development Limited, PT Oasis Waters International), and associates (SingSpring Trust). The report uses information from Hyflux's 2016 annual report and other online sources to support its analysis.

Running head: FINANCIAL ACCOUNTING ASSIGNMENT
Financial accounting assignment
Name of the student
Name of the university
Author note

1FINANCIAL ACCOUNTING ASSIGNMENT
Table of Contents
Part A.........................................................................................................................................2
1. Accounting standard regulatory bodies in Singapore............................................................2
Part B..........................................................................................................................................3
7. Net profit analysis of Hyflux Limited....................................................................................3
10. Type of entities under Hyflux Limited.................................................................................4
References..................................................................................................................................7

2FINANCIAL ACCOUNTING ASSIGNMENT
Part A
1. Accounting standard regulatory bodies in Singapore
(1)
 Name – Singapore Accountancy Commission (SAC)
 Date of creation – It was established during April 2013 as the statutory body under
Singapore government
 Main responsibilities – it is responsible for drive the accountancy excellence all over
the country through developing the talent, researching, leadership and professional
qualification (Sac.gov.sg 2017).
 Number of members – there are 13 members in the board of SAC including the CEO,
president, managing partner, Chief Financial officer
 Regulation act – Singapore Accountancy Commission Act 2013 and the act was
commenced on 1st April 2013.
(2)
 Name – Singapore Financial Accounting Standards
 Date of creation – 16th August 2002
 Main responsibilities – it includes the principles and the governing practices for
treating various financial transactions. The main responsibilities are to set out the
measurement, recognition, disclosure and presentation requirements that deal with the
events and transactions crucial for general purpose financial statements
(Guidemesingapore.com 2017).

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 Number of members - there are 12 members in the board including the Chairman,
deputy chairman and other members.
 Regulation Act – Singapore Financial Reporting standard (SFRS) and it is based on
the IFRS. The act came in force from 1st January 2003.
Part B
7. Net profit analysis of Hyflux Limited
Net profit for the year ended 31st December 2016 for Hyflux Limited amounted to S$ 10,537
thousands. However, the amount of comprehensive loss for the year ended 31st December
2016 for the company amounted to S$ 5,817.

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The main reason behind the difference of the two figures is that under the income
statement for calculating the profit, operating expenses of the company are deducted from the
income to get the income before tax and thereafter the tax credit is added to the figure to get
the amount of profit for the year. On the contrary, under the comprehensive income statement
from the profit amount various comprehensive incomes like income from joint ventures and
positive changes in hedged cash flow is added and losses from foreign exchange translation
and negative changes in the hedged cash flow are deducted. Therefore, there is a difference
between the two figures derived from the income statement and comprehensive income
statement. Further, it is recognized that the comprehensive income statement is the better way
of representing the company’s performance as it is a extended part of the income statement
and it is a more detailed approach for showing the income and expenses.
10. Type of entities under Hyflux Limited
Subsidiaries – there are 6 subsidiaries those are directly held by the company. The company
provides interest free and unsecured loans to the subsidiaries for which the settlement is not

5FINANCIAL ACCOUNTING ASSIGNMENT
planned and are not expected to settle in the near future. Subsidiaries are considered
significant as per the SGX Listing Manual if the total tangible assets include 20% of the total
tangible asset of the group (Investors.hyflux.com/misc/ar2016.pdf 2017). Names of the
subsidiaries are as follows –
 Hydrochem (S) Pte Ltd
 TuasOne Pte Ltd
 Hyflux Membrane Manufacturing (S) Pte Ltd
 Hyflux Engineering Pte Ltd
 TuaSpring Pte Ltd
 Spring China Utility Ltd
Joint ventures – all the major arrangement under joint venture are structured as the separate
establishment that offers the company with the right towards the net asset of the company.
Depending on that the interest of the joint arrangement are classified as the joint venture and
measured the interest as per equity method. Name of the joint ventures are –
 Star Infrastructure Development Limited
 PT Oasis Waters International

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Associates – the associates are considered significant as per the SGX Listing Manual if the
total tangible assets include 20% of the total consolidated tangible asset of the group or if the
profits before tax are accounted for 20% or greater than 20% of consolidated profits before
tax of the company. Name of the associate directly held by the company is SingSpring Trust.

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References
Guidemesingapore.com. 2017. Singapore Accounting Standards. [online] Available at:
https://www.guidemesingapore.com/business-guides/taxation-and-accounting/accounting-
standards/singapore-accounting-standards [Accessed 10 Sep. 2017].
Investors.hyflux.com/misc/ar2016.pdf. 2017. ANNUAL REPORT 2016. [online] Available
at: http://investors.hyflux.com/misc/ar2016.pdf [Accessed 10 Sep. 2017].
Sac.gov.sg. 2017. Government Bodies | Singapore Accountancy Commission. [online]
Available at: https://www.sac.gov.sg/collaboration/our-stakeholders-and-partners/
government-bodies [Accessed 10 Sep. 2017].