|The Board should disclose a summary of all the AC's activities in the company's Annual Report. The Board should also disclose in the company's Annual Report measures taken by the AC members to keep abreast of changes to accounting standards and issues which have a direct impact on financial statements.|
This Guideline requires the AC’s activities and its measures to stay current with accounting standards to be disclosed in the annual report.
This Guideline is consistent with Section 201B(9) of the Companies Act in its description of the nature and extent of the functions performed by the AC in the annual report.
As it is an important Board Committee, this description provides investors with an understanding of the work that the AC does. The company could also elaborate on the duties of the AC as set out in Guideline 12.4.
The Guideline also calls for a disclosure of the measures taken by AC members to keep abreast of relevant accounting standards and issues. This recognises (i) the increasing complexity of business and the global developments in accounting standards which have intensified in recent years; and (ii) the need for AC members to diligently update themselves on changes and emerging trends that impact the company.
B. SGX Disclosure Guide
C. Related Rules and Regulations
- Section 201B(9) of the Companies Act: Audit Committees.
D. CG Guides
- AC Guide Appendix 1C: Sample AC Terms of Reference [AC Composition].
- AC Guide Appendix 1D: Sample ARC Terms of Reference [AC Composition].
E. Related Articles