Illustrative Annual Report 2024

Resilient growth: building strength and fostering transformation

In 2024, the importance of resilience and transformation continues to grow. In an environment defined by evolving economic, environmental, and social challenges, businesses are being called upon to build strength and drive change through sustainable practices. We remain committed to empowering organisations to not only withstand these pressures but also to foster meaningful transformation in their operations and reporting.

This year’s theme captures the dual focus on resilience in the face of challenges and the proactive transformation needed to succeed in a rapidly changing landscape. In our recent PwC Global Investor Survey, sustainability remains a top priority for investors, who are increasingly prioritising sustainability factors in their decision-making processes, expecting companies to disclose how sustainability aligns with their business models, provide clarity on the costs of meeting their commitments, and offer a roadmap toward achieving these goals.

At the same time, Generative Artificial Intelligence (GenAI) is poised to revolutionise financial reporting by automating data analysis, improving accuracy, and reducing manual effort. With its ability to process complex data and streamline regulatory compliance, GenAI empowers businesses to enhance reporting quality and make faster, more informed decisions. As AI-driven transformation accelerates across finance and other functions, embracing this technology will be crucial to staying competitive and fostering sustainable growth.

In 2024, businesses also face significant changes in the global tax landscape as governments address Base Erosion and Profit Shifting (BEPS). Singapore’s forthcoming tax measures aim to ensure fair taxation and greater transparency, requiring companies to rethink their tax strategies and strengthen compliance. These developments have broad operational, financial, and reputational implications.

Our 2024 Illustrative Annual Report offers practical guidance to help organisations navigate this evolving landscape while maintaining resilience and adaptability.

Three key focuses in 2024

Sustainability reporting

BEPS developments

GenAI

Sustainability reporting

Sustainability reporting has become essential for communicating long-term value creation and managing environmental, social, and governance (ESG) risks. This evolution reaches a significant milestone with the introduction of the International Sustainability Standards Board (ISSB) standards. In Singapore, listed companies will be required to adopt ISSB-aligned climate-related disclosures from 2025, with large non-listed companies following in 2027. This is part of a broader initiative to ensure that businesses are managing both the physical and transition risks associated with climate change, while aligning with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

With global standards and investor expectations on the rise, sustainability reporting must not only comply with new guidelines but also effectively communicate a company’s resilience and ability to transform in response to environmental challenges. In 2024, companies must engage deeply with their stakeholders to identify what information is most relevant and to ensure that sustainability risks and opportunities are fully integrated into financial reporting.

As these changes unfold, the sustainability section of this publication provides insights into the new sustainability disclosure standards and guides companies through this complex, yet critical, area of reporting. By preparing for these developments, businesses can ensure their reporting is aligned with global best practices, while also demonstrating their commitment to sustainability.
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BEPS developments

As the global tax environment evolves, 2024 is a crucial year for companies preparing for the implementation of the Global Anti-Base Erosion (GloBE) rules under the OECD’s BEPS 2.0 Pillar Two framework.

In Singapore, the government has announced its commitment to implement the GloBE rules, including a domestic top-up tax (DTT), for in-scope MNEs starting from the financial year beginning on or after 1 January 2025. With these upcoming changes on the horizon, companies should not delay their preparations.

With complex data gathering, impact forecasting, and compliance tasks ahead, this transformation requires significant investment of time and resources. MNEs need to accelerate their readiness for the Pillar Two regime by focusing on key building blocks, including enhancing data management, reassessing tax strategies, and ensuring compliance with new disclosure requirements.

The Pillar Two framework introduces significant complexities, particularly around the calculation and reporting of top-up taxes. As outlined in the SFRS(I) 1-12 Income Taxes amendments, companies are required to make additional disclosures on BEPS-related taxes for financial years beginning on or after 1 January 2023. These disclosures are crucial for transparency, providing stakeholders with insights into how tax strategies align with global standards.

As you prepare for the implementation of the GloBE rules in Singapore, this publication highlights the consideration and related disclosures in Note 10: Income Taxes. We encourage you to reach out to your regular PwC Contact or our Tax Contact should you have any questions or comments.
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GenAI – revolutionising financial reporting

GenAI is poised to transform financial reporting by driving efficiency, accuracy, and strategic insights. The integration of GenAI into financial reporting processes will significantly reduce manual efforts and streamline regulatory compliance.

AI-powered solutions offer automated data quality checks, variance analysis, and validation processes that improve the consistency and reliability of submitted reports. GenAI enables deeper analysis and comparability of results for investors and regulators alike. For financial services, the potential is transformative: a scalable AI-driven reporting solution could codify the entire process—from report interpretation to generation—resulting in time savings and reduced resources needed for compliance.

To fully harness the power of GenAI, businesses must embrace it as a driver of transformation, exploring how GenAI can enhance efficiency, reduce outsourcing, and improve in-house capabilities. As the financial landscape becomes more AI-driven, organisations will need to rethink their approach to measuring value, ensuring that AI investments align with sustainability goals, industry regulations, and competitive pressures.
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Highlights of the report

Corporate governance report

Impact of climate change on financial statements

Financial statements

Corporate governance report

Good corporate governance is the foundation of a healthy organisation. It not only sets the tone for how an organisation operates and behaves internally and in the market, but it also defines the relationship between the board of directors, management, and the rest of the organisation.

Corporate governance issues can vary from strategic topics such as corporate strategy, IT oversight, and innovation, to board composition and risk oversight. They also encompass real-time issues like crisis management and shareholder activism. We provide the governance expertise needed to address tough questions and tackle complex challenges.

Our network of professionals offers in-depth local experience and knowledge of corporate governance best practices and solutions, supported by an extensive global network. We collaborate with you to identify and assess key governance and compliance risks, integrating their management into your existing processes.
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Impact of climate change on financial statements

The impact of climate change on the financial statements is a high-profile issue. Investors and regulators are increasingly looking for evidence of how the entity has incorporated ESG matters and in particular climate-related risk factors when making estimates and judgements in the preparation of the financial statements. Climate-related risk could include both transition impacts, for example additional costs incurred by the entity as a result of transitioning to a low-carbon economy, or physical impacts, such as damage to assets as a result of fires and flooding.

The accounting standards have an overarching requirement to disclose information that users need for them to understand the impact of particular transactions, events and conditions on the entity’s financial position and financial performance. Therefore, in light of the current focus on, and impact of, climate change, entities should ensure that they have assessed the impact of climate change on measurement of assets and liabilities, and what disclosures are necessary in this context for the financial statements to comply with Singapore Financial Reporting Standards (SFRS)(I)s.

This appendix discusses how climate change could affect certain measurements and therefore the related disclosures in the financial statements. It also outlines some of the relevant considerations when making estimates and judgements and drafting the relevant disclosures to satisfy the current SFRS(I) requirements. We have provided signposts throughout the main publication as reminders for readers to refer to this guidance where necessary.
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Financial statements

These accounting guidance from PwC provide additional information and are supplementary to the illustrative disclosures presented in this Illustrative Annual Report.
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Capital Markets and Accounting Advisory Services

With increasingly stringent compliance, regulatory, and reporting requirements, the scrutiny on accounting and financial reporting has never been so high, leading to many firms struggling to cope with the demands of these last miles of reporting requirements.

Our Capital Markets and Accounting Advisory Services (CMAAS) team has many years of experience in successfully advising companies on issues relating to accounting and financial reporting. The team helps to transform not just a firm’s financial reporting, but also management, sustainability, tax, and securities and exchange commission (SEC) reporting.
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Last mile reporting | Capital Markets and Accounting Advisor

Our commitment

As regulatory requirements and stakeholder expectations continue to evolve, particularly around sustainability and tax transparency, we believe that Resilient Growth encompasses more than just financial performance; it requires an ongoing commitment to transparency, sustainable practices, and credible reporting. Our 2024 Illustrative Annual Report reflects these priorities, helping companies navigate the complexities of sustainability reporting, mitigate risks, and communicate their value creation effectively to stakeholders.

We believe that growth is not just about numbers—it’s about creating value that is sustainable, equitable, and aligned with the needs of a changing world. As you prepare your annual report for 2024, we hope this resource will serve as a valuable guide in showcasing your organisation’s resilience and transformative progress.

We encourage you to consult with your regular PwC contact, should you have any questions or comments regarding this publication.