Date: March 27, 2015
April is the month for AGMs in Singapore, with 60% of all AGMs occurring in a single month. In a recent report on Shareholder Meetings by Prof Mak Yeen Teen, it highlighted that in 2014, 76% of all April meetings were held in the last five business days of April. These five days account for 37% of all meetings held in 2014. However, the clustering of AGMs within a particular month, while severe in Singapore, is even more pronounced in Italy, Japan, South Korea and Thailand and just as pronounced in Australia.
While the issues and reasons for AGMs clustering will be discussed in a forum with Prof Mak later in May; it is important for investors to read and understand the Annual Report. This week, we reprise the interview with James Leong, Chartered Accountant, Adjunct Professor, National University of Singapore and Executive Committee Member, SIAS.
Why Read Annual Reports?
A company’s annual report is the single most important way for it to convey itself to potential investors. As such, it should come as no surprise that an annual report serves to present the company in best light possible without violating any MAS or SGX regulations. Unfortunately, many investors read annual reports but fail to read them effectively. In other words, while annual reports are clearly prepared without any intent to deceive or reflect dishonesty about the business, investors should always read them with a sense of skepticism. In other words, how can investors learn to interpret the information within the annual report to make more informed investment decisions?
James Leong is the creator and trainer of the SIAS Analysing Company Financials for Smart Investing workshop. He is also CEO of Visions.One Consulting Pte Ltd and has more than 20 years of international experience in audit, accounting and financial management. Recently, Mr. Leong has been featured as one of 10 influential professional speakers in Singapore by Singapore Business Review. His passion in teaching has seen him taught at various educational institutions including National University of Singapore, Victoria University of Technology and Institute of Chartered Accountants in Australia. NewsRadio 93.8, Capital Radio 95.8 (Mandarin) and SIAS (Securities Investor Association of Singapore) have regularly interviewed him on demystifying financial concepts and analysis of public listed companies’ annual reports. An executive committee member of SIAS, James is also a member of the judging panel for the Singapore Corporate Awards 2014, Best Annual Report category.
The next Analysing Company Financials for Smart Investing workshop will be on 11 April 2015, Saturday, 2pm – 5pm. Click here to register.