Financial Accounting Report on ComfortDelGro
by Ivan Jaben Pang
Student | Content Creator
About ComfortDelGro:
ComfortDelGro, globally known as one of the most popular land transport companies, holding a broad global workforce, shareholder base and outlook, was established through the unification of Comfort Group and DelGro Corporation on 29 March 2003. The two groups were originally founded in the 1970s and had grown to develop into one of the most successful listed transport companies by the time they merged.
ComfortDelGro is now known for its operations across several countries and globally owns a collective amount of 46,000 vehicles such as busses, taxies and rental cars. ComfortDelGro’s business nature consists of bus services, taxi services, car rental and leasing, rail services and many more.
Aside from being a leader in the Singapore market, ComfortDelGro also has a strong overseas presence. Its services have extended from the United Kingdom and Ireland to Malaysia, Vietnam, Australia, China, and its nine cities.
Two possible functions performed by accountants of ComfortDelGro:
1. Analysing and summarising profits or losses
Firstly, once the financial transactions are recorded systematically, the function of a financial accountant is to analyse and summarise transactions to show the company's current financial position. The team of accountants in ComfortDelGro analyses the accounts in the trial balance and summarises it in the final reports of the company to know the profit earned or loss incurred by the business during an accounting year.
2. Analysing and budgeting of the expenses of the ComfortDelGro taxi(s).
Secondly, the accountant(s) of ComfortDelGro would record all the expenses of the company. By having monthly records of expenses associated with taxi cars, such as fuel, maintenance, and repairs, the accountant(s) can better analyse the expenses. Once the expenses have been analysed, accountant(s) can plan a budget solely on future taxi car expenses.
Do you agree with the statement, "With the latest technological advancement such as accounting automation and artificial intelligence, your company will not need to employ any accountants going forward."
After doing extensive research on this statement, we disagree with the above statement, and here is why.
With technological advancement growing at such a quick rate, it is no surprise that there would be an increase in job loss. However, accounting technological advancement to job loss is situational.
Improvements in accounting automation and artificial intelligence will not replace accountant jobs. On the contrary, it will revolutionise accounting. It would be considered more transformative for accountants than disruptive.
While Artificial Intelligence and Automation can handle many basic accounting tasks in a more efficient manner and minimise human error, it cannot completely substitute accountants. Companies will always need a human accountant to analyse and interpret Artificial Intelligence data. Artificial Intelligence and Automation does not have human instinct and the human experience of an accountant. An accountant can add value to the companies using his own personal and professional experience.
There are many well-known accounting automated programs like Xeno and ZOHO Books, which can replace time-consuming and routine activities such as Bookkeeping, creation of General Ledgers, etc. Providing, many beneficial factors like efficiency, time-saving, elimination of human error, accurate data, cloud storage, easier data storage, easier data retrieval, and changes that can be made in real-time. However, contrary to belief, these automated programs will not replace Human Accountants as there are many “Human components” that play a part in accounting as a whole. Instead of automated programs and human accountants being mutually exclusive, they can work as one cohesively. Accountants can make use of the effectiveness and efficiency of these programs to minimise mundane time activities and focus most of their expertise and experience on analysing the dashboards provided.
To further support our point, here is a study revealed by Mckinsey Company on “Activities that can be automated using demonstrated technologies”. This chart proves that there are many difficult tasks that cannot be automated by technology, making technology a tool for accountants to use for efficiency rather than a replacement of accountants.
https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/bots-algorithms-and-the-future-of-the-finance-function?cid=soc-web (Bots, algorithms, and the future of the finance function)
https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/bots-algorithms-and-the-future-of-the-finance-function?cid=soc-web (Bots, algorithms, and the future of the finance function)
According to the chart above, accounting automation and artificial intelligence are unable to fully take over the following areas such as Revenue Management, Financial Controlling and External Reporting, Tax Advisory, Financial Planning and Analysis, Treasury, Risk Management, Auditing, External Relations and Business Development Advisory.
Accounting automation produces raw data which are not useful for businesses. Accounting Automation and Artificial Intelligence cannot cater to a company’s distinctive framework and business and are unable to translate raw data into useful perceptions. On the other hand, Accountants can interpret the data to meet the business needs.
Accountants have knowledge, expertise and years of experience to offer judgment that Artificial Intelligence cannot. Let’s assume that Artificial Intelligence is capable of coming to a conclusion founded upon predefined rules. The accountants are still required to make accounting judgment and give input into the machine the decisions that will affect the company’s profitability.
In addition, accountants add value to businesses by providing advisory, which Artificial Intelligence is unable to replicate, they can also assist shareholders to understand their financial reports better by relating it to day-to-day business. Accountants help business break down the massive financial data into simple, straightforward information that will ultimately help business to make decisions that directly or indirectly impact their company’s profitability.
Accounting Automation Programs are bound to have errors and complications that cannot be resolved by themselves. This is where Accountants can play a part in using their years of professional accounting experience to spot errors and resolve them.
In Conclusion, Accounting Automation and Artificial Intelligence are currently not advanced enough to be capable of learning from experience immediately or to give any personal opinions or professional advice to fit the stakeholder’s needs. These technologies do not have emotions or instinct when carrying out operations and only can follow a set of rules given, which may lead to errors made by the program. Therefore, we disagree that the company does not need to hire any accountants going forward as accounting automation and artificial intelligence can only help to ease the workload of accountants.
Prepare Journal Entries on Purchase of Fixed Assets, Cash Sales of goods or Services, and Incurred Operating Expense on Credit [Based on Estimation]
About ComfortDelGro:
ComfortDelGro, globally known as one of the most popular land transport companies, holding a broad global workforce, shareholder base and outlook, was established through the unification of Comfort Group and DelGro Corporation on 29 March 2003. The two groups were originally founded in the 1970s and had grown to develop into one of the most successful listed transport companies by the time they merged.
ComfortDelGro is now known for its operations across several countries and globally owns a collective amount of 46,000 vehicles such as busses, taxies and rental cars. ComfortDelGro’s business nature consists of bus services, taxi services, car rental and leasing, rail services and many more.
Aside from being a leader in the Singapore market, ComfortDelGro also has a strong overseas presence. Its services have extended from the United Kingdom and Ireland to Malaysia, Vietnam, Australia, China, and its nine cities.
Two possible functions performed by accountants of ComfortDelGro:
1. Analysing and summarising profits or losses
Firstly, once the financial transactions are recorded systematically, the function of a financial accountant is to analyse and summarise transactions to show the company's current financial position. The team of accountants in ComfortDelGro analyses the accounts in the trial balance and summarises it in the final reports of the company to know the profit earned or loss incurred by the business during an accounting year.
2. Analysing and budgeting of the expenses of the ComfortDelGro taxi(s).
Secondly, the accountant(s) of ComfortDelGro would record all the expenses of the company. By having monthly records of expenses associated with taxi cars, such as fuel, maintenance, and repairs, the accountant(s) can better analyse the expenses. Once the expenses have been analysed, accountant(s) can plan a budget solely on future taxi car expenses.
Do you agree with the statement, "With the latest technological advancement such as accounting automation and artificial intelligence, your company will not need to employ any accountants going forward."
After doing extensive research on this statement, we disagree with the above statement, and here is why.
With technological advancement growing at such a quick rate, it is no surprise that there would be an increase in job loss. However, accounting technological advancement to job loss is situational.
Improvements in accounting automation and artificial intelligence will not replace accountant jobs. On the contrary, it will revolutionise accounting. It would be considered more transformative for accountants than disruptive.
While Artificial Intelligence and Automation can handle many basic accounting tasks in a more efficient manner and minimise human error, it cannot completely substitute accountants. Companies will always need a human accountant to analyse and interpret Artificial Intelligence data. Artificial Intelligence and Automation does not have human instinct and the human experience of an accountant. An accountant can add value to the companies using his own personal and professional experience.
There are many well-known accounting automated programs like Xeno and ZOHO Books, which can replace time-consuming and routine activities such as Bookkeeping, creation of General Ledgers, etc. Providing, many beneficial factors like efficiency, time-saving, elimination of human error, accurate data, cloud storage, easier data storage, easier data retrieval, and changes that can be made in real-time. However, contrary to belief, these automated programs will not replace Human Accountants as there are many “Human components” that play a part in accounting as a whole. Instead of automated programs and human accountants being mutually exclusive, they can work as one cohesively. Accountants can make use of the effectiveness and efficiency of these programs to minimise mundane time activities and focus most of their expertise and experience on analysing the dashboards provided.
To further support our point, here is a study revealed by Mckinsey Company on “Activities that can be automated using demonstrated technologies”. This chart proves that there are many difficult tasks that cannot be automated by technology, making technology a tool for accountants to use for efficiency rather than a replacement of accountants.
https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/bots-algorithms-and-the-future-of-the-finance-function?cid=soc-web (Bots, algorithms, and the future of the finance function)
According to the chart above, accounting automation and artificial intelligence are unable to fully take over the following areas such as Revenue Management, Financial Controlling and External Reporting, Tax Advisory, Financial Planning and Analysis, Treasury, Risk Management, Auditing, External Relations and Business Development Advisory.
Accounting automation produces raw data which are not useful for businesses. Accounting Automation and Artificial Intelligence cannot cater to a company’s distinctive framework and business and are unable to translate raw data into useful perceptions. On the other hand, Accountants can interpret the data to meet the business needs.
Accountants have knowledge, expertise and years of experience to offer judgment that Artificial Intelligence cannot. Let’s assume that Artificial Intelligence is capable of coming to a conclusion founded upon predefined rules. The accountants are still required to make accounting judgment and give input into the machine the decisions that will affect the company’s profitability.
In addition, accountants add value to businesses by providing advisory, which Artificial Intelligence is unable to replicate, they can also assist shareholders to understand their financial reports better by relating it to day-to-day business. Accountants help business break down the massive financial data into simple, straightforward information that will ultimately help business to make decisions that directly or indirectly impact their company’s profitability.
Accounting Automation Programs are bound to have errors and complications that cannot be resolved by themselves. This is where Accountants can play a part in using their years of professional accounting experience to spot errors and resolve them.
In Conclusion, Accounting Automation and Artificial Intelligence are currently not advanced enough to be capable of learning from experience immediately or to give any personal opinions or professional advice to fit the stakeholder’s needs. These technologies do not have emotions or instinct when carrying out operations and only can follow a set of rules given, which may lead to errors made by the program. Therefore, we disagree that the company does not need to hire any accountants going forward as accounting automation and artificial intelligence can only help to ease the workload of accountants.
Prepare Journal Entries on Purchase of Fixed Assets, Cash Sales of goods or Services, and Incurred Operating Expense on Credit [Based on Estimation]
Effects On Accounting Equation
Reasoning for estimation of $500,000 on Taxi Cars:
Reasoning for estimation of $1,104,657 in Taxi Revenue:
Reasoning for $258,083 in Materials & Consumables Costs:
We have chosen 19 March 2020 as 19 March is where the Certificate of Entitlement (COE) of car prices drop in Singapore. This would be a good time for ComfortDelGro to take advantage of COE prices to make bulk purchases of Vehicles. We cannot estimate but can only assume that $500,000 was spent on vehicles which could potentially allow ComfortDelGro to purchase about 5-6 Cars which is relatively reasonable.
We have chosen the taxi revenue based on the latest year, 2020, where we take the amount and divide it by 365 days to find the average amount of taxi revenue per day, which we could use to estimate that there would be a total taxi revenue of $1,104,657 on that day, that would be paid by debit or cash by customers. ($403,200,000 / 365 = $1,104,657.534).
Reasoning for estimation of $500,000 on Taxi Cars:
We have chosen 19 March 2020 as 19 March is where the Certificate of Entitlement (COE) of car prices drop in Singapore. This would be a good time for ComfortDelGro to take advantage of COE prices to make bulk purchases of Vehicles. We cannot estimate but can only assume that $500,000 was spent on vehicles which could potentially allow ComfortDelGro to purchase about 5-6 Cars which is relatively reasonable.
Reasoning for estimation of $1,104,657 in Taxi Revenue:
Effects On Accounting Equation
Reasoning for estimation of $500,000 on Taxi Cars:
We have chosen 19 March 2020 as 19 March is where the Certificate of Entitlement (COE) of car prices drop in Singapore. This would be a good time for ComfortDelGro to take advantage of COE prices to make bulk purchases of Vehicles. We cannot estimate but can only assume that $500,000 was spent on vehicles which could potentially allow ComfortDelGro to purchase about 5-6 Cars which is relatively reasonable.
Reasoning for estimation of $1,104,657 in Taxi Revenue:
We have chosen the taxi revenue based on the latest year, 2020, where we take the amount and divide it by 365 days to find the average amount of taxi revenue per day, which we could use to estimate that there would be a total taxi revenue of $1,104,657 on that day, that would be paid by debit or cash by customers. ($403,200,000 / 365 = $1,104,657.534).
We have chosen the taxi revenue based on the latest year, 2020, where we take the amount and divide it by 365 days to find the average amount of taxi revenue per day, which we could use to estimate that there would be a total taxi revenue of $1,104,657 on that day, that would be paid by debit or cash by customers. ($403,200,000 / 365 = $1,104,657.534).
Reasoning for $258,083 in Materials & Consumables Costs:
Using Materials and consumable costs from 2020, the cost of materials and consumables based on the statement of financial position is 94.2 million. To find the estimated cost of Materials and Consumables, we divided 94.2 million by 365 days to find the daily expenditure, an estimate of $258,082 per day.
Likely Impact of Covid-19 on ComfortDelGro
Covid 19 safety measures and circuit breaker has affected ComfortDelGro’s revenue and profit significantly. As most people work from home and do home-based learning, the demand for transport, taxi services and car rentals has reduced drastically. There was a huge drop is tourist arrivals as borders were closed. The strengthened safety measures were also used to control crowds within shopping malls and restaurants with disruption of nightlife. Lesser people are willing to take a taxi or public transport in fear of coming into close contact with others. Singapore Government Relief Measures such as Job Support Scheme has helped to reduce staff costs.
With the new measures put in place by the Singapore Government in 2020, there was a decrease in the Profit After Taxation account by $225.5 million from its original amount of $318.2 million in 2019. Leaving ComfortDelGro with $92.7 million in Total Profit after Taxation for the year. This meant that there was a 70% drop in Total Profit after Taxation. From 2019 to 2020, there was a fall in total revenue of 17% from $3,901.1 million to $3,228.6 million. This was due to a significant drop in demand and customers using the services of ComfortDelGro because of the new measures that the Government put in place. Furthermore, there was a decrease in staff costs from $1,726.2 million in 2019 to $1,550.1 million in 2020 mainly due to government grants of $152.4 Million.
On further inspection on the revenue account, the revenue of the taxi services fell by $261.5 million from its original amount of $664.7 million in 2019. Leaving ComfortDelGro with $403.2 million in revenue, specifically for Taxi Services carried out. This meant that there was a 39.3% drop in Taxi Services Revenue.
There was also a decrease in the public transport service revenue by $310.7 million from its original amount of $2878.6 million in 2019. Leaving ComfortDelGro with $2567.9 million in revenue specifically for the Public Transport Services.
This means that there was a 10.8% drop in Revenue for Public Transport Services.
According to the Statement of Financial Position, as shown above, there is an increase in Total Grant Receivables from a total of $321.9 million ($280.3 million + $41.6 million) in 2019 to $346.4 million ($279.1 million + $67.3 million) in 2020, this is due to the grant receivables from the Australia President and from the Singapore Government Relief Measures such as Job Support Scheme Initiative towards ComfortDelGro.
Taking a closer look at the Statement of Financial Position. There was a deferred grants of $415.8 million that were associated with the net present value of grant from Australia regulators, the leftover balance was granted under the COVID-19 Government Relief Measures of $30.5 million. The $30.5 million mostly helped to reduce staff costs through Job Support Schemes. Adding up to a total of $446.3 million in Deferred Grants in 2020 which was an increase from $392.5 million in 2019.
In Conclusion, there was a total fall in Overall Revenue and Profit due to the tightening of safety measures in 2020. Also, there was an increase in Assets and Liability due to Government Grants given to ComfortDelGro
Appendix
https://links.sgx.com/1.0.0/corporate-announcements/CTD4EGYO4J2PX08W/f227bd829581c8a62be42fc01155eb3c376ba3a6ce9322ad5c251bc7cc36c79d (Overall Information from SGX)
https://links.sgx.com/FileOpen/ComfortDelGro%20-%20AR%202020%20dated%2026%20March%202021.ashx?App=Announcement&FileID=653369 (ComfortDelGro – AR 2020 dated 26 March 2021)
https://floqast.com/blog/will-robots-take-our-jobs-if-accounting-is-automated/#:~:text=These%20days%2C%20many%20accounting%20teams,of%20CFOs%20by%20Grant%20Thornton. (Will Robots Take Our Jobs if Accounting is Automated?)
https://medium.com/human-unity/will-accountants-be-replaced-by-computers-2be8cf966fab (Will accountants be replaced by computers?)
https://blog.spendesk.com/en/accounting-automation (8 excellent benefits of accounting automation)
https://www.straitstimes.com/opinion/why-robots-wont-steal-accountants-jobs (Why robots won't steal accountants' jobs)
https://www.cmcmarkets.com/en-ie/news-and-analysis/comfort-delgro (Comfort Delgro | CMC Markets)
https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/bots-algorithms-and-the-future-of-the-finance-function?cid=soc-web (Bots, algorithms, and the future of the finance function)
Using Materials and consumable costs from 2020, the cost of materials and consumables based on the statement of financial position is 94.2 million. To find the estimated cost of Materials and Consumables, we divided 94.2 million by 365 days to find the daily expenditure, an estimate of $258,082 per day.
Likely Impact of Covid-19 on ComfortDelGro
Covid 19 safety measures and circuit breaker has affected ComfortDelGro’s revenue and profit significantly. As most people work from home and do home-based learning, the demand for transport, taxi services and car rentals has reduced drastically. There was a huge drop is tourist arrivals as borders were closed. The strengthened safety measures were also used to control crowds within shopping malls and restaurants with disruption of nightlife. Lesser people are willing to take a taxi or public transport in fear of coming into close contact with others. Singapore Government Relief Measures such as Job Support Scheme has helped to reduce staff costs.
Reasoning for $258,083 in Materials & Consumables Costs:
Using Materials and consumable costs from 2020, the cost of materials and consumables based on the statement of financial position is 94.2 million. To find the estimated cost of Materials and Consumables, we divided 94.2 million by 365 days to find the daily expenditure, an estimate of $258,082 per day.
Likely Impact of Covid-19 on ComfortDelGro
Covid 19 safety measures and circuit breaker has affected ComfortDelGro’s revenue and profit significantly. As most people work from home and do home-based learning, the demand for transport, taxi services and car rentals has reduced drastically. There was a huge drop is tourist arrivals as borders were closed. The strengthened safety measures were also used to control crowds within shopping malls and restaurants with disruption of nightlife. Lesser people are willing to take a taxi or public transport in fear of coming into close contact with others. Singapore Government Relief Measures such as Job Support Scheme has helped to reduce staff costs.
About ComfortDelGro:
ComfortDelGro, globally known as one of the most popular land transport companies, holding a broad global workforce, shareholder base and outlook, was established through the unification of Comfort Group and DelGro Corporation on 29 March 2003. The two groups were originally founded in the 1970s and had grown to develop into one of the most successful listed transport companies by the time they merged.
ComfortDelGro is now known for its operations across several countries and globally owns a collective amount of 46,000 vehicles such as busses, taxies and rental cars. ComfortDelGro’s business nature consists of bus services, taxi services, car rental and leasing, rail services and many more.
Aside from being a leader in the Singapore market, ComfortDelGro also has a strong overseas presence. Its services have extended from the United Kingdom and Ireland to Malaysia, Vietnam, Australia, China, and its nine cities.
Two possible functions performed by accountants of ComfortDelGro:
1. Analysing and summarising profits or losses
Firstly, once the financial transactions are recorded systematically, the function of a financial accountant is to analyse and summarise transactions to show the company's current financial position. The team of accountants in ComfortDelGro analyses the accounts in the trial balance and summarises it in the final reports of the company to know the profit earned or loss incurred by the business during an accounting year.
2. Analysing and budgeting of the expenses of the ComfortDelGro taxi(s).
Secondly, the accountant(s) of ComfortDelGro would record all the expenses of the company. By having monthly records of expenses associated with taxi cars, such as fuel, maintenance, and repairs, the accountant(s) can better analyse the expenses. Once the expenses have been analysed, accountant(s) can plan a budget solely on future taxi car expenses.
Do you agree with the statement, "With the latest technological advancement such as accounting automation and artificial intelligence, your company will not need to employ any accountants going forward."
After doing extensive research on this statement, we disagree with the above statement, and here is why.
With technological advancement growing at such a quick rate, it is no surprise that there would be an increase in job loss. However, accounting technological advancement to job loss is situational.
Improvements in accounting automation and artificial intelligence will not replace accountant jobs. On the contrary, it will revolutionise accounting. It would be considered more transformative for accountants than disruptive.
While Artificial Intelligence and Automation can handle many basic accounting tasks in a more efficient manner and minimise human error, it cannot completely substitute accountants. Companies will always need a human accountant to analyse and interpret Artificial Intelligence data. Artificial Intelligence and Automation does not have human instinct and the human experience of an accountant. An accountant can add value to the companies using his own personal and professional experience.
There are many well-known accounting automated programs like Xeno and ZOHO Books, which can replace time-consuming and routine activities such as Bookkeeping, creation of General Ledgers, etc. Providing, many beneficial factors like efficiency, time-saving, elimination of human error, accurate data, cloud storage, easier data storage, easier data retrieval, and changes that can be made in real-time. However, contrary to belief, these automated programs will not replace Human Accountants as there are many “Human components” that play a part in accounting as a whole. Instead of automated programs and human accountants being mutually exclusive, they can work as one cohesively. Accountants can make use of the effectiveness and efficiency of these programs to minimise mundane time activities and focus most of their expertise and experience on analysing the dashboards provided.
To further support our point, here is a study revealed by Mckinsey Company on “Activities that can be automated using demonstrated technologies”. This chart proves that there are many difficult tasks that cannot be automated by technology, making technology a tool for accountants to use for efficiency rather than a replacement of accountants.
With the new measures put in place by the Singapore Government in 2020, there was a decrease in the Profit After Taxation account by $225.5 million from its original amount of $318.2 million in 2019. Leaving ComfortDelGro with $92.7 million in Total Profit after Taxation for the year. This meant that there was a 70% drop in Total Profit after Taxation. From 2019 to 2020, there was a fall in total revenue of 17% from $3,901.1 million to $3,228.6 million. This was due to a significant drop in demand and customers using the services of ComfortDelGro because of the new measures that the Government put in place. Furthermore, there was a decrease in staff costs from $1,726.2 million in 2019 to $1,550.1 million in 2020 mainly due to government grants of $152.4 Million.
With the new measures put in place by the Singapore Government in 2020, there was a decrease in the Profit After Taxation account by $225.5 million from its original amount of $318.2 million in 2019. Leaving ComfortDelGro with $92.7 million in Total Profit after Taxation for the year. This meant that there was a 70% drop in Total Profit after Taxation. From 2019 to 2020, there was a fall in total revenue of 17% from $3,901.1 million to $3,228.6 million. This was due to a significant drop in demand and customers using the services of ComfortDelGro because of the new measures that the Government put in place. Furthermore, there was a decrease in staff costs from $1,726.2 million in 2019 to $1,550.1 million in 2020 mainly due to government grants of $152.4 Million.
On further inspection on the revenue account, the revenue of the taxi services fell by $261.5 million from its original amount of $664.7 million in 2019. Leaving ComfortDelGro with $403.2 million in revenue, specifically for Taxi Services carried out. This meant that there was a 39.3% drop in Taxi Services Revenue.
There was also a decrease in the public transport service revenue by $310.7 million from its original amount of $2878.6 million in 2019. Leaving ComfortDelGro with $2567.9 million in revenue specifically for the Public Transport Services.
This means that there was a 10.8% drop in Revenue for Public Transport Services.
According to the Statement of Financial Position, as shown above, there is an increase in Total Grant Receivables from a total of $321.9 million ($280.3 million + $41.6 million) in 2019 to $346.4 million ($279.1 million + $67.3 million) in 2020, this is due to the grant receivables from the Australia President and from the Singapore Government Relief Measures such as Job Support Scheme Initiative towards ComfortDelGro.
On further inspection on the revenue account, the revenue of the taxi services fell by $261.5 million from its original amount of $664.7 million in 2019. Leaving ComfortDelGro with $403.2 million in revenue, specifically for Taxi Services carried out. This meant that there was a 39.3% drop in Taxi Services Revenue.
There was also a decrease in the public transport service revenue by $310.7 million from its original amount of $2878.6 million in 2019. Leaving ComfortDelGro with $2567.9 million in revenue specifically for the Public Transport Services.
This means that there was a 10.8% drop in Revenue for Public Transport Services.
According to the Statement of Financial Position, as shown above, there is an increase in Total Grant Receivables from a total of $321.9 million ($280.3 million + $41.6 million) in 2019 to $346.4 million ($279.1 million + $67.3 million) in 2020, this is due to the grant receivables from the Australia President and from the Singapore Government Relief Measures such as Job Support Scheme Initiative towards ComfortDelGro.
Effects On Accounting Equation
Taking a closer look at the Statement of Financial Position. There was a deferred grants of $415.8 million that were associated with the net present value of grant from Australia regulators, the leftover balance was granted under the COVID-19 Government Relief Measures of $30.5 million. The $30.5 million mostly helped to reduce staff costs through Job Support Schemes. Adding up to a total of $446.3 million in Deferred Grants in 2020 which was an increase from $392.5 million in 2019.
In Conclusion, there was a total fall in Overall Revenue and Profit due to the tightening of safety measures in 2020. Also, there was an increase in Assets and Liability due to Government Grants given to ComfortDelGro
Appendix
https://links.sgx.com/1.0.0/corporate-announcements/CTD4EGYO4J2PX08W/f227bd829581c8a62be42fc01155eb3c376ba3a6ce9322ad5c251bc7cc36c79d (Overall Information from SGX)
https://links.sgx.com/FileOpen/ComfortDelGro%20-%20AR%202020%20dated%2026%20March%202021.ashx?App=Announcement&FileID=653369 (ComfortDelGro – AR 2020 dated 26 March 2021)
https://floqast.com/blog/will-robots-take-our-jobs-if-accounting-is-automated/#:~:text=These%20days%2C%20many%20accounting%20teams,of%20CFOs%20by%20Grant%20Thornton. (Will Robots Take Our Jobs if Accounting is Automated?)
https://medium.com/human-unity/will-accountants-be-replaced-by-computers-2be8cf966fab (Will accountants be replaced by computers?)
https://blog.spendesk.com/en/accounting-automation (8 excellent benefits of accounting automation)
https://www.straitstimes.com/opinion/why-robots-wont-steal-accountants-jobs (Why robots won't steal accountants' jobs)
https://www.cmcmarkets.com/en-ie/news-and-analysis/comfort-delgro (Comfort Delgro | CMC Markets)
https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/bots-algorithms-and-the-future-of-the-finance-function?cid=soc-web (Bots, algorithms, and the future of the finance function)
Taking a closer look at the Statement of Financial Position. There was a deferred grants of $415.8 million that were associated with the net present value of grant from Australia regulators, the leftover balance was granted under the COVID-19 Government Relief Measures of $30.5 million. The $30.5 million mostly helped to reduce staff costs through Job Support Schemes. Adding up to a total of $446.3 million in Deferred Grants in 2020 which was an increase from $392.5 million in 2019.
In Conclusion, there was a total fall in Overall Revenue and Profit due to the tightening of safety measures in 2020. Also, there was an increase in Assets and Liability due to Government Grants given to ComfortDelGro
Appendix
https://links.sgx.com/1.0.0/corporate-announcements/CTD4EGYO4J2PX08W/f227bd829581c8a62be42fc01155eb3c376ba3a6ce9322ad5c251bc7cc36c79d (Overall Information from SGX)
https://links.sgx.com/FileOpen/ComfortDelGro%20-%20AR%202020%20dated%2026%20March%202021.ashx?App=Announcement&FileID=653369 (ComfortDelGro – AR 2020 dated 26 March 2021)
https://floqast.com/blog/will-robots-take-our-jobs-if-accounting-is-automated/#:~:text=These%20days%2C%20many%20accounting%20teams,of%20CFOs%20by%20Grant%20Thornton. (Will Robots Take Our Jobs if Accounting is Automated?)
https://medium.com/human-unity/will-accountants-be-replaced-by-computers-2be8cf966fab (Will accountants be replaced by computers?)
https://blog.spendesk.com/en/accounting-automation (8 excellent benefits of accounting automation)
https://www.straitstimes.com/opinion/why-robots-wont-steal-accountants-jobs (Why robots won't steal accountants' jobs)
https://www.cmcmarkets.com/en-ie/news-and-analysis/comfort-delgro (Comfort Delgro | CMC Markets)
https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/bots-algorithms-and-the-future-of-the-finance-function?cid=soc-web (Bots, algorithms, and the future of the finance function)
