ICAS - September 2014

WORLD-CLASS BUSINESS PROFESSIONALS | WWW.ICAS.ORG.UK

WHO’S WHO?

LEADING FIGURES IN THE FD ROLE THE MAGAZINE OF ICAS | SEPTEMBER 2014 | £3.99

CAPITAL CAREERS EXPERT ADVICE FOR SUCCESS IN THE CITY

ALSO INSIDE RORY BREMNER MAKES AN IMPRESSION

3

CONTENTS

18

MORE CHOICES THAN FACTS?

ROBERT OUTRAM IS THE EDITOR OF THE CA MAGAZINE

ROBERT.OUTRAM@THINKPUBLISHING.CO.UK FOLLOW US ON TWITTER.COM/THECAMAG

MAGAZINE SUBSCRIPTIONS

05

P RESIDENT While economic confidence returns in Britain, challenges remain globally

06

UPFRONT Auditing shake-up; UK GAAP webinar; Q&A with Matt Archdale; awards; fundraising; your letters; movers and shakers

16

NNIVERSARY EVENTS A “Leadership” events to celebrate the 160th birthday of ICAS

18

AREERS IN LONDON C Charting the opportunities for newly qualified CAs in the big city

26

22

40

26

44

28

52

32

58

I NTERVIEW: NIGEL MOSS Lloyds Development Capital’s managing director in Scotland

INTERVIEW: RORY BREMNER The comedian and impressionist on satire, politics and making CAs laugh

FD SURVEY 2014 Finance chiefs give their verdict on the economy and restoring public trust in business In association with DLA Piper

FDS’ WHO’S WHO Our rundown of CAs in the top finance jobs in 2014 In association with PRG

1 year, 12 issue subscriptions: UK £45; overseas £65; students £20. Back issues: £5, subject to availability. Tel: 0131 347 0314 or email professionalservices@icas.org.uk Cover illustration: Neil Webb/Corbis

VOLUME 118 ISSUE 1298 SEPTEMBER 2014

LATER THIS month, voters in Scotland will be asked to decide whether they want to remain part of the UK or become citizens of a new, independent country.

While it may seem to many like the longest election campaign ever, a referendum is not like a typical election. Voters are not being asked to choose their parliamentary representatives, but to make a far-reaching decision themselves.

Many people have complained that they need “more facts” on which to base their decision, but the problem is not so much a lack of information as the fact that so much of it appears to be disputed, or partisan in nature (anyone who has not already done so should visit icas.org. uk/ScottishIndependence/ to see the important and balanced contribution ICAS has made to informing the independence debate).

Although economic and material issues will not be the determining factors for everyone, the difficulty of assessing the future potential upside and downside for either option is the kind of dilemma people in business face all the time.

Our annual FDs’ Survey, published in this issue, shows however that finance chiefs are, overall, more optimistic about prospects for the economy than they have been for a number of years (see page 28).

Despite the many uncertainties ahead, it’s an upbeat message that will hopefully turn out to be well founded.

C ONFERENCING AND EVENTS Experts share their tips and advice for hosting a successful event

B RIEFING Financial reporting; taxation; charity SORP explained; challenging HMRC’s DRD measures; shared parental leave; “goodwill” in tax

I NSIDE ICAS Foundation in call for mentoring volunteers; event planner; international news; new members, removals and obituaries

LAST WORD Andrew Rigby explains why online annual reporting needn’t be painful

Member of the Audit Bureau of Circulation 17,846 (July 2013-June 2014)

SEPTEMBER 2014 CA MAGAZINE

4 UPFRONT

PRESIDENT 5

JANN BROWN REPORTS ON BRIGHTER FINANCIAL PROSPECTS AT HOME AND WORLDWIDE CHALLENGES

TURNING WISHES INTO ACTIONS On 23 October 2014 we mark the 160th anniversary of the signing of the Royal Charter, which saw us become the first professional body of accountants in the world. We’ve got a series of great events in Hong Kong, London, Edinburgh and New York to celebrate that historic moment. More details are on our 160th microsite.

Please take a couple of hours from your busy business diary and join us in celebrating your pride in ICAS (see page 16 for more details).

Hokey Cokey on interest rate rises and ventures that we are only half way on the long road to recovery. On top of that, my professional scepticism questions what progress has really been made to rebalance the UK economy?

On the global stage, every week seems to bring another crisis: Ukraine, Syria, Gaza, Iraq. Geopolitical turmoil isn’t good for global business. American air strikes on Islamic State militants in Iraq send a shudder through the spine of boardrooms. The prospect of sanctions for Russia over its behaviour in Ukraine is just another worry for many finance leaders.

The fear is that these conflicts could create the conditions for slow and faltering economic growth for some time to come.

If world peace is a tricky task, so is the other big issue our FDs have set their sights on in this year’s survey – how to restore public trust in business?

ICAS believes that we and every one of our 20,000 members have a role to play in this. Interestingly, CA FDs see “changing corporate culture” as the route to restoring trust.

Regulation was at the bottom of the list. A clear and encouraging response that behaviour and

“Nearly 3,000 of our 20,000 members are finance directors or chief financial officers. That’s an impressive collective of boardroom clout... our ICAS finance leaders can have real power in leading change in the difficult journey of restoring trust in business”

principles, not rules, are at the heart of the solution.

There was also a cry for “more transparent, understandable financial reporting”. That’s a mantra which is often preached on these pages. But I feel there is a growing consensus that after years of talking, now is the time to turn wishing words into effective actions.

Stronger, independent boards are also highlighted as another key to the elixir of trust. Again, this is an issue that ICAS has pursued with evangelical zeal in recent times.

The “Finance Directors’ Who’s Who” which is also in this edition of The CA shows how uniquely placed ICAS is to lead change in Britain’s boardrooms.

It is an astonishing array of talent, all connected by the CA qualification and

by ICAS values.

Nearly, 3,000 of our 20,000 members are FDs or CFOs. That’s an impressive collective of boardroom clout. Our “Who’s Who?” is a stark illustration of where our ICAS finance leaders can have real power in leading change in the difficult journey of restoring trust in business.

The answer lies in our actions and our leadership.

JANN BROWN CA IS PRESIDENT OF ICAS PHOTO BY ZUMA/REX

FINANCE DIRECTORS are not often mistaken for a ray of sunshine.

However, this month’s survey in The CA of our ICAS finance directors shows the ice melting even in our corner of the boardroom, as economic confidence returns for the finance leaders of Britain.

While last year more than half of our FDs could see no light at the end of the tunnel, 76 per cent now predict growth over the next 12 months.

Back in 2010, our brows were even more furrowed as 75 per cent of FDs only saw a gloomy future in our crystal balls.

But just before we start uncorking the Irn Bru in celebration and relaxing the iron fist on our risk registers, it is worth pointing out that while the UK climate is encouraging, the global risks would have you reaching for the Prozac.

Growth in the Eurozone flatlined in the second quarter with fresh calls for the European Central Bank to administer financial fertiliser. The economies of Germany, France and Italy are all in retreat. Unemployment levels are grim.

Back in Britain, Governor Mark Carney (pictured, right) dances the

SEPTEMBER 2014 CA MAGAZINE

6 UPFRONT

KEEPING YOU UP TO DATE WITH THE LATEST DEVELOPMENTS IN ACCOUNTANCY AND BUSINESS

UPFRONT

AUDITING SHAKE-UP

TENDERS DOUBLE ON LAST YEAR MORE UK large companies than ever are changing their auditors, even ahead of new rules from the Competition and Markets Authority (CMA) that will make audit retendering compulsory.

A snapshot study of the FTSE 350-listed companies, carried out by PwC in July, indicated that there could be 56 tenders in total in 2014, compared to 30 tenders in 2013 and 18 in 2012.

PwC says tendering levels have shot up following the introduction of the Financial Reporting Council’s “comply or explain” 10-year tendering regime, which came into effect on 1 October 2012.

As of 8 July, PwC says, 17 companies had completed tenders this year, 14 tenders had kicked off and seven more companies had put out notifications that they are considering tenders.

There are 18 other companies expected to review their audit arrangements. This suggests 56 plcs – one in seven of the FTSE 350 – will tender this year.

Of the companies that have put their audit out to tender since October 2012, two out of three appointed a new auditor. Companies recently switching have included outsourcing and distribution business Bunzl, which moved from KPMG to PwC; software group Sage, which

Bunzl was just one of the FTSE companies switching auditors this year

switched from PwC to EY; and AIM-listed Tertiary Minerals, which appointed Crowe Clark Whitehill to replace BDO. An even tighter regime on tendering is expected to come into force once the UK Government implements European Union rules on mandatory rotation.

James Chalmers (pictured inset), UK head of assurance at PwC, said: “Now that there is greater clarity on the implications of the EU

rules, companies are able to make decisions on when to tender at a time that makes most sense for their particular circumstances. For some, that means going early, for others it means going later, but – crucially – the choice is still theirs to make.

“In our experience, companies make their choice based on the quality of the team and the strength of the network in the UK and overseas.”

PwC currently audits 29 per cent of FTSE 350 companies.

ICAS WEBINAR

UK GAAP IS DEAD, LONG LIVE UK GAAP THE INTERNATIONAL standard FRS 102 becomes mandatory for UK companies with accounting periods commencing on or after 1 January 2015. All existing UK accounting standards will be replaced by a single standard, which is substantively based on the IFRS for SMEs. ICAS members can find out more in an online event hosted by James Barbour CA (pictured), director – technical policy with ICAS, on Friday 5 September.

The webinar will provide members with an update on

the forthcoming mandated introduction of new UK GAAP and highlight some of the key differences from existing practice.

The webinar takes place from 12.30pm to 2pm on 5 September, and is free to ICAS members and students (non-members: £25 inc VAT).

To book or for more details, contact Lauren Johnston at memberengagement@icas. org.uk or go online to http://icas.org.uk/Events/ UKGAAPisdeadlongliveUKGAAP/Webinar/

7 NUMBERS

$17bn

Record settlement agreed by Bank of America with the US Government, to resolve an investigation into the bank’s role in the sale of mortgage-backed securities in the run-up to the 2008 financial crisis.

232%

Increase in levels of reported fraud in the UK in the first six months of 2014, compared with the same period in the previous year.

Source: KPMG Fraud Barometer

£1,437bn

Estimated value of UK household debts in 2013, more than three times the level of debt in 1990. Source: analysis of consumer credit data by Verum Financial Research

MEMBER BENEFITS

APPOINTMENT

Jim Pettigrew CA

PETTIGREW CHAIRS CLYDESDALE ICAS DEPUTY President Jim Pettigrew CA has been appointed as chairman of the board of Clydesdale Bank, and will also chair the board of National Australia Group Europe Limited.

He replaces Cameron Clyne, the former chief executive of Clydesdale parent company National Australia Bank, who has now retired.

Pettigrew has served on the boards as a non-executive director since September 2012, and David Allvey will succeed him as chairman of the boards’ audit committee.

Pettigrew also currently holds a number of non-executive director positions and is chairman of the Edinburgh Investment Trust PLC, deputy chairman of Royal Bank of Canada (Europe), senior independent director and remuneration committee chairman with Crest Nicholson plc and audit committee chairman with Aberdeen Asset Management plc.

As well as being deputy president of ICAS, Pettigrew chairs the risk committee for Hermes Fund Managers Ltd and is a non-executive director of AON UK Ltd.

David Thorburn, chief executive of Clydesdale Bank, said: “We’re delighted Jim has agreed to chair the boards.

“He’s made a significant contribution to the boards over the past two years during what has been a period of major transformation for the business.

“Jim’s considerable business knowledge and experience will continue to be invaluable to the boards as we build on our strategy to become a stronger and more competitive business.”

FD SURVEY

LEGAL PEACE OF MIND IS THERE a better way to manage your employment law, human resources and health and safety risks?

Law At Work provide the high-quality advice and support that you expect from a leading law firm or technical health and safety consultancy, but at an all-inclusive fixed price; providing peace of mind whatever your sector or size.

ICAS Member benefits include: l a free employment law health check of your employment contracts and policies; l a free health and safety health check of your policies and procedures; l between one and three months’ free advice when you sign up to a fixed-term contract with LAW. LAW have a market-leading retention rate at the end of three year contracts, and still work with their first client, from 2001.

Find out more at icas.org.uk/ ca/offers/law/

FINANCE CHIEFS ARE UPBEAT, POLL SHOWS THE CA’S annual poll of FDs/CFOs shows more optimism over prospects for the UK economy than at any time since the global financial crisis in 2008/09.

The FD Survey, carried out by The CA in association with DLA Piper, is based on responses from more than 160 FDs/CFOs who are ICAS members. The poll shows that 72 per cent expect “modest growth” and 10 per cent “strong growth” over the next 12 months, with only 14 per cent predicting flat or zero growth.

Non-UK based FDs were less sanguine, with as many as 25 per cent predicting flat or zero growth for the economy where they are.

The poll also asked the FDs what measures would do most to restore trust in business. The most important factors, the poll shows, are: “a change in corporate culture”, “prioritising sustainability, not short-term performance” and “more transparent, understandable financial reporting.”

FD SURVEY, PAGE 28.

10%

2 2 %%

14%

ECONOMIC PROSPECTS

72% T he economy is set to decline again over the next 12 months G rowth will be flat or negligible through to H2 2015 W e will see modest growth over the next 12 months W e will see strong growth over the next 12 months N o opinion SEPTEMBER 2014 CA MAGAZINE

8 UPFRONT BOOK REVIEWS

WHERE I AM TODAY

“Wicked” problems; and India’s new relationship with China THE PRICE OF FISH Michael Mainelli and Ian Harris Nicholas Brealey Publishing (£12.99)

HHHH This book is subtitled “A new approach to wicked economics and better decisions”. In this context “wicked” does not mean “very good”; it applies to problems that are highly complex and seemingly intractable, like overpopulation, sustainability, global warming, the global financial crisis and over-fishing in our oceans.

In fact, fishing is used as a classic example of the limitations of classical economics. The interplay of supply, demand and price have not prevented many fishing grounds around the world from catastrophic depletion.

What is needed, the authors say, is a new way of thinking, drawing not only economics but also from a range of disciplines such as psychology, biology and quantum physics.

This book is thought provoking, fresh and accessible, and most importantly it could, and indeed should, encourage fresh thinking among businesspeople and policymakers alike.

THE SILK ROAD REDISCOVERED Anil K.Gupta, Girija Pande and Haiyan Wan Jossey-Bass (£23.99)

HHHV By 2025, China and India will be two of the world’s four largest economies.

Links between China and India are becoming ever more significant.

The Silk Road Rediscovered analyses the growing corporate linkages between India and China. For example: India’s Mahindra is the fifth largest tractor manufacturer in China; Tata Motors’ Jaguar Land Rover unit is the fastest growing luxury auto seller in China; and India’s NIIT is the most influential IT training brand in China.

China’s Huawei has its second largest R&D centre in Bangalore and employs over 5,000 people in India, while Shanghai Electric earns its largest revenues outside China from India.

The authors argue that whether these ventures are set to fail or succeed depends on whether executives learn some important lessons.

HHHHH ESSENTIAL HHHH VERY GOOD HHH USEFUL HH FLAWED H DON’T BOTHER CA MAGAZINE SEPTEMBER 2014

…AND THE WORST? Having to accept not everything can be done at once.

MATT ARCHDALE, DIVISIONAL FINANCIAL CONTROLLER, GKN AEROSPACE ENGINE SYSTEMS, SWEDEN WHEN DID YOU QUALIFY AS A CA AND WHO DID YOU TRAIN WITH? I qualified as a CA in 2008 with EY in Birmingham.

BRIEF CAREER HISTORY I progressed into EY’s Valuation & Business Modelling team within the Transactions practice post qualification and spent a hugely enjoyable four years performing specialised financial modelling projects and developing cutting edge analytic techniques and products with some really bright people. In late 2011 I joined GKN’s Aerospace Division as M&A manager and was immediately immersed in leading the acquisition modelling of GKN’s acquisition of Volvo’s Aerospace division.

Eight months later we successfully completed the $1bn acquisition of Volvo Aero (now renamed Engine Systems), and I moved straight into leading the financial integration of the group into GKN. In summer 2013, I moved to Sweden to take up the divisional controller role.

WHAT DOES YOUR JOB INVOLVE? I act as the “spider in the web” for our businesses. With 14 sites across four continents, there is always something interesting happening. I manage the structure and processes for effective planning and strategic decision-making, and perform analysis and reporting to the executive leadership team. I work with our businesses to drive standardisation and commonality into our processes, and create bespoke “tactical solutions” when the more robust and long-term systems are still in the making.

WHO DO YOU REPORT TO? I report to the CFO, Engine Systems, with a dotted line into the CEO. WHAT’S THE BEST THING ABOUT YOUR JOB? Taking highly complex matters and breaking them down in order to make high-level strategic decisions makes me tick. I love the fact I get to be inventive almost every day.

PROUDEST MOMENT SO FAR? Playing a significant role in completing, and then integrating the Volvo Aero deal. It was a huge team effort that attracted a lot of national and international attention, and a lot of people dug very deep to make it happen.

Seeing something you worked at the core of so intensely get so much positive coverage is very rewarding.

HOW’S YOUR WORK/LIFE BALANCE? It’s easy to want to “have it all” but I try to be realistic. I stay when I have to and go home when I can.

WHAT DO YOU DO TO RELAX? My five-year-old daughter has a built-in antenna that tells her if I’m anywhere close to a state of relaxation, and she intervenes.

HOW HAS YOUR TRAINING AS A CA HELPED PREPARE YOU FOR YOUR ROLES IN M&A, FINANCIAL MODELLING AND INTEGRATION – IF IT HAS? I appreciate the value of my CA training more and more as my career progresses.

No matter what the challenge, be it a business issue or something more finance technical, there’s always some foundation that I am able to build from. This provides a level of confidence and versatility that I see in many CAs. WHAT SINGLE PIECE OF ADVICE WOULD YOU GIVE FOR A CA LOOKING TO PURSUE THIS CAREER ROUTE? Say yes when opportunities arise – don’t worry about what you can’t do, but focus on what you can do – you will surprise yourself. Opportunity breeds opportunity.

“Taking highly complex matters and breaking them down in order to make high-level strategic decisions makes me tick. I love the fact I get to be inventive”

10 UPFRONT PEOPLE

APPOINTMENT

ALLISON IS BUILDING THE FUTURE WITH NEWS that Stewart Milne is to step down as chief executive at his construction company, former managing director Glenn Allison CA (pictured above) has been named as his successor.

A past president of ICAS, Allison has been with Stewart Milne Group for 25 years and is also currently vice-chairman of CBI Scotland.

Milne will continue to provide overall leadership as executive chairman, with a greater focus on long-term strategy and business planning. The company recently announced significant expansion plans, which include a 40 per cent increase in order intake for timber systems and delivery of up to 5,000 new homes across Scotland and the north west of England.

Allison said: “This is a particularly exciting period for the group and I am pleased and proud to play a more focused and strategic role in delivering our long-term plans.”

CA STARS AT THE GAMES

APPOINTMENT

CA MAGAZINE SEPTEMBER 2014

PHOTO BY ROBERT PERRY/REX

MANX JOB FOR NANDHA GRANT THORNTON has announced the appointment of Raj Nandha CA as senior tax manager in the firm’s Isle of Man office.

Nandha recently worked as a tax manager with a local corporate service provider and was previously with Crowe Clark Whitehill – formerly Horwath Clark Whitehill.

Dennis McGurgan, managing director of Grant Thornton, commented: “I am delighted to welcome Raj to our growing team at Grant Thornton. He brings a wealth of experience from the finance sector both here in the Island and in the UK, an in-depth knowledge of a broad range of taxation issues and an enthusiasm for his role which will benefit our clients.”

Ian Beattie CA, chair of Scottish Athletics

IAN BEATTIE won’t easily forget the moment he stepped onto the trackside at Glasgow’s Hampden Park for a medal ceremony at the XXth Commonwealth Games.

He recalls: “The atmosphere was incredible.

I thought it was loud where we’d been sitting, but when you got onto the track and heard that crowd, my goodness, it was something.”

Beattie was officiating at the men’s discus medal ceremony – along with fellow CA Ian Reid, CFO of Glasgow 2014 – in his capacity as chairman of Scottish Athletics. Beattie, who is also chief operating officer with law firm Lindsays, has had a long involvement with sport, including six years as a board member and then vice-chair at Sport Scotland, and his current role, which he took up in 2012.

Beattie is justifiably proud of the hard work he and his colleagues put into preparing for the Games and of the success that Team Scotland achieved on track and field. With four medals in athletics – silver for runners Eilidh Child and

Lynsey Sharp

Lynsey Sharp, bronze for hammer thrower Mark Dry and gold for para-athlete Libby Clegg in the T12 100 metres – Scotland doubled its previous haul in Delhi.

But as Beattie points out: “We also look at a points table based on placements from one to eight, and that’s probably a better measure of strength in depth. We finished with 73 points on that basis, which was significantly better than in the previous few Games.”

Scottish Athletics also managed to field 57 athletes, a number that exceeded expectations, Beattie says, adding that the future is looking bright: “This is just stage one. We had 30 athletes in the team who were 23 or younger.”

So how did they do it? Beattie says: “The investment and planning is absolutely key and coaching is also critical… our mantra has consistently been, ‘It’s all about performing when it counts’.”

In order to maintain that momentum, Scottish Athletics has also been working with local clubs to ensure that the enthusiasm generated by the Games is met with a professional and wellorganised response.

Beattie says there will be no resting on laurels. The board are already looking ahead to the World Athletics Championships in Beijing next year and the Olympics in Rio in 2016. And he says there is plenty of opportunity for the business community to help out through sponsorship – which need not be a massive expense – and through individual volunteering to offer expertise and guidance. He adds: “There’s a big role for ICAS members.”

Movers&Shakers

11

Your monthly round-up of who is moving where

Angus Cockburn CA has been named as chief financial officer at outsourcing group Serco. He was previously interim chief executive and, prior to that, CFO, at Glasgow-based global support services business Aggreko. Cockburn joins his former chief executive at Aggreko, Rupert Soames, who moved to head up Serco as chief executive earlier this year (see also the Financial Directors Who’s Who, page 32).

Biopharmaceutical company ProMetic has announced the promotion of Bruce Pritchard CA (pictured right) to the newly created position of chief operating officer. He was formerly the company’s chief financial officer and will continue to fill that role until a replacement is appointed.

He is currently a member of the ICAS Council, a member of the Board of Examiners of the Institute of Directors and a non-executive director of both Imanova and Being Digital.

ProMetic, headquartered in Canada, also operates in the UK and US and has a global customer base. The company has also appointed Stefan Clulow, chief investment officer and managing director of private investment firm Thomvest Asset Management Inc, to its board of directors.

Fife-based Cooper Software has made two senior appointments, as George Elliott CA is named chairman and Colin Gove joins as finance director from Wolfson Microelectronics.

Elliott became a board adviser to the company last year and previously served as director of finance and secretary of Wolfson Microelectronics.

Wilkinson & Associates has announced the appointment of Mairianne Kpedekpo CA (pictured right) to lead their new professional practice recruitment division. Kpedekpo formerly worked with PwC in both Scotland and Australia, in recruitment and as a finance manager.

Euan Campbell CA (pictured left) has joined the team of private investment office Murray Capital as finance manager. Campbell qualified with Ernst & Young in Scotland, before joining RBS. Latterly he was the finance manager for a US-based family office in Virginia.

Clydesdale Bank has announced the appointment of Paul Mayer (pictured right) as head of its

Scottish retail branches. Formerly a senior regional manager for Santander, Mayer will have responsibility for leading performance across Clydesdale Bank’s retail network.

companies funds. His previous roles include five years as senior investment manager within the Kempen Capital Management Pan-European Smaller Companies Team.

KPMG has announced the appointment of Josh White as an associate director in the firm’s competition economics practice. He will be based in KPMG’s Canary Wharf office and joins the firm from Analysis Group in Montreal where he was senior economist.

Nicola Dundas (pictured left) has been named client partner at Simpson & Marwick solicitors. She formerly led the private client department at Bonar Mackenzie and is established to advise clients on all legal life stage issues with particular emphasis on planning, wills, powers of attorney, guardianships and executries.

SAM Wealth, the firm of independent financial advisers, has announced the arrival of new partner Alan Moore (pictured right), who joins from McCrea Financial Services. He previously held a senior position at Grant Thornton and for the last seven years was a director of McCrea Financial Services.

Standard Life Investments, the global investment manager, has recruited Andrew Paisley into its smaller companies team.

He will be responsible for the management of Standard Life Investments’ European smaller

West Yorkshire based chartered accountancy firm Clough & Company has made five promotions across its audit and taxation departments.

Ann Brown has been promoted from senior audit manager to director of Clough & Company, and former senior tax manager Dean Pearson is now director of Clough taxation solutions.

In addition, Lucy Foxall is now assistant tax manager, Claire Robinson is assistant audit manager and Neil Baldwin has been promoted to audit manager.

To let us know about your latest news, moves or achievements, please contact The CA at ca@thinkpublishing.co.uk

MONEY DOES GROW ON TREES Commercial forest investment in Finland provides steady cash flow and capital growth.

www.upmbonvesta.com

Finland’s best forest properties.

UPM BONVESTA

SEPTEMBER 2014 CA MAGAZINE

12 UPFRONT AFTER HOURS

MIDLANDS AUTHOR SET TO THRILL EVERYONE MAY have at least one book in them, but for Rob Sinclair CA, an assistant director with EY in Birmingham, three is the magic number as he recently celebrated publishing the first in a trilogy of fast-paced thrillers.

Sinclair explains the release of his debut novel, Dance with the Enemy, is the culmination of a five-year journey that started on something of a whim.

“I said to my wife while we were on holiday almost quite offhand that I could write a book. From that point I just started thinking about some ideas that I thought would be interesting and went from there.”

The inaugural entry in the Enemy series follows secret agent Carl Logan in a tale of revenge and clandestine operations, as he’s put in charge of a transatlantic rescue mission.

The shadowy world that Sinclair has crafted is in

Rob Sinclair

some respects not too far removed from his role as a forensic accountant specialising in fraud investigation. He does, however, note that he keeps his work with EY and the adventures of Carl Logan fairly separate.

“I’ve worked on some fascinating global fraud and corruption cases.

While I haven’t used the details of any of them directly in my stories, a couple of scenes in the third book were inspired by something that actually happened.”

Dance with the Enemy (published by Clink Street, £7.99 paperback, and Kindle Direct, 99p ebook for a limited time) is available online at retailers and can be ordered from all good book shops.

AWARD

CA IN THAMES RIVER RESCUE A CA has been nominated for two prestigious awards from the City of London Police following his rescue of a woman who had fallen into the River Thames.

Paul Sopher CA (pictured right), a tax consultant with KPMG in London, was relaxing after work, having a drink with his girlfriend aboard HMS President, when a commotion at the side of the boat caught his attention and he saw a young woman in distress in the Thames.

Sopher says: “She must have fallen in from the riverbank and she had been in the water so long she couldn’t move. We were waiting for the marine police who had been called out but when I noticed that she was completely blue and that her head was going under, I just jumped in and put her into a life ring.”

Sopher managed to get the woman to safety and the next day he was back at his desk with KPMG. “The story has gone round the firm,” Sopher explains. “They’ve very kindly given me a box at the O2 for an event that KPMG is running.”

London Police officials have also personally thanked Sopher and put him forward for a Commissioner’s Commendation for bravery as well as a civilian award.

FUNDRAISING

WHITELAW WELLS DUO CONQUER QUAD DAVID MAIN CA and Corena Scott,

colleagues at Whitelaw Wells, are pictured splitting the melon, which is the traditional method of completing the Artemis Great Kindrochit Quadrathlon.

The “Quad” involves teams of two swimming across Loch Tay, climbing seven Munros, kayaking eight miles back along Loch Tay, then cycling 34 miles round Loch Tay. Main and Scott had the added challenge of traditional July weather, with wet, windy and cloudy conditions over all the Munros. They were pleased to finish in a time of just over 16 hours.

The purpose of the Quad is to raise funds for Mercy Corps and Mary’s Meals.

The annual target is around £300,000, and the Quad has raised almost £8m for good causes since it started over 10 years ago. The Whitelaw Wells team raised over £3,000 as their contribution.

CA MAGAZINE SEPTEMBER 2014

David Main CA and Corena Scott split the melon

Who are the front-runners of the accounting world?

13

the CA with the biggest audit job in Britain the CEOs from Guardian Media Group and Weir Group the deputy governor of the Bank of England the CFOs from BP and Jaguar Land Rover these are just some of the amazing speakers in our lineup of 160th events

Find out more icas.org.uk/160_years

SEPTEMBER 2014 CA MAGAZINE

Your

SAY

Write to us at ca@thinkpublishing.co.uk and you could win a bottle of Benromach 10 Year Old Scotch Whisky, a bottle of Benromach Organic and two blenders’ glasses

Your comments and views, in association with

LETTER OF THE MONTH

TRIBUNALS I READ a recent newspaper report indicating that the number of cases taken to industrial tribunals had dropped as much as 80 per cent during the last year.

Presumably this is not as a result of employers behaving more fairly with their staff, but more likely to be because aggrieved staff can no longer afford to take their cases to an industrial tribunal.

Some 16 years ago, I experienced a constructive dismissal situation, but fortunately my then errant employer settled out of court once a lawyer’s letter was sent to them, but even that limited procedure could cost a substantial amount these days.

Sadly, many less fortunate employees could find themselves in a situation where they would like to take their case to a tribunal, but can no longer afford to do so. Even if they are “selfrepresenting” the cost of up to £1,200 to lodge papers could be prohibitive.

Whilst I accept that previously there were many cases taken to tribunals which could be considered frivolous and had no justification, the current regime could be considered a charter for unscrupulous employers to hide behind the possibility that their aggrieved employees will be unable to afford to go to court.

Perhaps our politicians should revisit this situation so that employers and employees can resolve their differences on a more level playing field at a more affordable cost.

Tony Cormack CA, Bonnyrigg

RULES ARE DAMAGING THE PROFESSION FURTHER TO David Evans’ excellent letter

in last month’s magazine (Your Say, The CA, August 2014) I write as a proud ICAS member with over 30 years of commercial experience.

Despite working for a small private company and therefore not restricted by any stock listing requirements, I am very concerned at the impact of the growing number of rules. I have found it increasingly difficult to explain that our profession which used to be all about judgement is increasingly restricted by a rulebook.

My first real issue arose a number of years ago when you could no longer accrue a final dividend even if it was declared and paid prior to the accounts being signed. When my employer had a clear policy of linking final dividends to results, it was difficult to explain why these could not be included. The official explanation from ICAS and our auditors that legally it was not contractual was met with some disbelief and the obvious comments that surely someone should have thought of this (and by now have corrected it) before it was incorporated within the Companies Act. It is very difficult to suggest that the accounts reflect the Board’s actions when such a fundamental activity as declaring an appropriate level of dividend cannot be incorporated within them.

The new GAAP proposals for medium-sized enterprises again reduce the judgement afforded to the profession. In particular, they hugely devalue the profit and loss account by including

certain long-term items (which are already disclosed elsewhere in the accounts) within it.

I have a copy of a set of accounts for a small plc where, despite paying exactly the same interest to their bank in two consecutive years, the only P&L published (a statement of comprehensive income) shows a difference of nearly £20m in finance costs. Being listed, they have no choice but to comply with the rules, but the application of such changes to medium-sized private companies will only result in explanations and adjustments for bankers, shareholders and other users, which reflects extremely badly on our profession. If a Board is able to satisfactorily support their position, then the auditor should be able to exercise judgement in deciding whether or not the accounts show “a true and fair view” irrespective of complying with GAAP. Earlier in the August magazine is an article headed “Firms are Ready” about companies opting out of audits in future. By taking away judgement from auditors it seems likely we will only accelerate the number of companies opting out of the audit requirement as they will no longer see the statutory accounts properly reflecting their operations. Accounts will doubtless be prepared for bankers and shareholders, but ultimately our profession will be the poorer (and not just in terms of pound notes) for imposing such a rigid regime.

Ken Horton CA, Glasgow

TAX REVIEW

CITIZENS HAVE THEIR SAY ON TAX WE KNOW what politicians think about tax, but what about the public? A “citizen jury” convened

by Britain Thinks for PwC asked what sort of tax system people would want to see in future.

Among the conclusions were: l The balance of taxation should not be shifted further from income towards wealth or consumption. l Inheritance tax could be CA MAGAZINE SEPTEMBER 2014

abolished, but there should be new and higher bands for council tax and stamp duty land tax. l I ncome tax and national insurance should be integrated. l I ncreasing personal allowances is more popular than reducing the rate of income tax. lV AT should be radically simplified with all essentials VAT-free but a standard 20 per

cent rate on everything else. l “ Sin taxes” should apply to unhealthy foods. l Lottery wins should be taxed.

The exercise also arrived at some core principles for taxation, including transparency, simplicity, fairness, certainty and the principle that the system should not discourage people who “do the right thing” such as working hard and saving for the future.

Tax unhealthy foods, say public

15 LEADING FIGURES

DYNAMIC DUO LIVE UP TO EARLY EXPECTATION

ROBERT BRUCE ASSESSES THE LEGACY OF TWO INFLUENTIAL SCOTTISH CAs, BILL MORRISON AND SIR JACK SHAW

THE ACCOUNT of the history of “The Fifth Quarter-Century” of ICAS published in 1980 included a prescient photograph. The caption reads: “At the 1967 Summer School – two young CAs with notable futures: WCC Morrison and JC Shaw.”

They did indeed have notable futures. Bill Morrison, after many years building the great Scottish firm of Thomson McLintock into a single national firm, took it into KPMG and became deputy senior partner. Sir Jack Shaw, after a career in practice, took a founding role in Scottish Financial Enterprise and became governor of the Bank of Scotland. Both were also professors, and presidents of ICAS: Shaw in 1983/4 and Morrison the year after.

What linked them most importantly was a steadfast belief in the ICAS culture of education, mentoring, and ethics. They were both influential thinkers within accountancy.

Each had their promise recognised early.

While he was still studying, Morrison was appointed as personal assistant in Glasgow to James Dowling, the Thomson McLintock senior partner, the leading accountant in Scotland at the time. Jack Shaw was similarly embedded in the culture of Graham, Smart & Annan in Edinburgh.

“What was most valuable was the contact the apprentice had with the partner,” said Shaw recently, “and you learned from every case you did.”

The fierce reputation of the senior partners carried all before them. “People knew when James Dowling got off the train at Haymarket [in Edinburgh],” said Shaw.

Morrison once recalled telling Dowling that someone was a difficult client. “What’s wrong

Bill Morrison and Sir Jack Shaw

with that?” responded Dowling. “Anyone can handle easy clients.”

This type of grounding was combined with a rigorous education provided by ICAS using practitioners, often senior ones, from the firms.

“There was a fellowship among apprentices,” recalls Shaw. “So the Institute was not just an abstraction. It had a physical being.” Morrison once referred to “the bond of the training contract and the aura of the professional office”.

What both men stood for can perhaps be best summed up by Sir David Tweedie, speaking when chairman of the International Accounting Standards Board. “Bill Morrison was my senior partner at Thomson McLintock

a new

direction in tax ITP_1113_ 185x35_strip AD_CA MAG_NEW DIRECTION.indd 1

and KPMG, and a perfect example of a CA,” he said. “I was asked by the National Coal Board to investigate the origins of the national coalminers’ strike in the 1980s. Was the pit whose closure led to the strike really uneconomic? The Coal Board was one of McLintock’s biggest clients and we knew this report was going to be highly sensitive. Bill’s attitude was what I expected: ‘Say what you think, if we lose the client because they don’t like your conclusions, we just accept that’.”

Morrison and Shaw lived full business lives.

But it is the influence they both had in defining and nurturing the educational and ethical culture of the Scottish accountancy profession for which they will be best remembered.

“The hallmark must be quality,” Morrison once said. “Without that there is no service to provide, and nothing anyone would want.”

ROBERT BRUCE IS A FREELANCE JOURNALIST AND EDITOR OF 150 YEARS AND STILL COUNTING, ON ICAS AND ITS HISTORY

#ITPtax icas.org.uk/itp 15/07/2014 14:32

SEPTEMBER 2014 CA MAGAZINE

16 ANNIVERSARY EVENTS

CELEBRATE 160 YEARS AT THE TOP

Keith Cochrane

MORE THAN A CENTURY AND A HALF AFTER IT WAS FOUNDED, ICAS IS STILL GOING STRONG. TO MARK ITS 160TH ANNIVERSARY, THE INSTITUTE IS HOLDING A SERIES OF EVENTS AT HOME AND ABROAD António Horta Osório

Ross McEwan

CA MAGAZINE SEPTEMBER 2014

THIS YEAR, ICAS celebrates 160 years since Lord Palmerston signed a royal warrant, creating the world’s first body of chartered accountants in 1854.

This body of professionals, based in Edinburgh, eventually became the Institute of Chartered Accountants of Scotland.

The principles of rigorous professionalism, ethical independence and acting in the public interest are still at the heart of what ICAS stands for.

The anniversary will be marked by a series of events, including a grand reception in Edinburgh’s Assembly Rooms on 23 October, and celebrations throughout October in Jersey, Manchester, Bristol, Nottingham and Birmingham.

As part of the 160th anniversary celebrations, ICAS has brought together distinguished speakers from business and finance for a series of events to consider the challenges for professionals, and businesspeople generally, in today’s world.

Sir David Tweedie CA, past president of ICAS, described by many as the most influential accountant in the world, has spent a lifetime at the centre of the global politics of business and accounting. In his talk, on 2 September at New

York’s Yale Club, he will reflect on the global financial crisis and describe what he believes politicians and the profession must do to learn from the failures of the past.

ICAS members in Hong Kong can hear Professor Niall Lothian CA, OBE speaking on 4 September. A past president of ICAS, Professor Lothian holds senior posts in management schools in Fontainebleau, Edinburgh, Berlin and Oxford.

He is also chairman of “venture philanthropy” organisation Inspiring Scotland, and he will discuss a range of topics, including the CA profession, audit independence and ethics.

On 10 September, David Gauke MP, financial secretary to the Treasury, will give a talk in London on the wide-ranging change he is leading in the UK tax system, and the reforms he is hoping to help bring about in the realm of international tax.

Keith Cochrane CA, chief executive of international engineering business Weir Group, will be speaking in Glasgow on 11 September.

Weir Group has 15,000 employees in 70 countries, with revenue of nearly £2.5bn, and Cochrane will explain the secrets of growing a global company.

17 Andrew Miller CA, CEO of Guardian Media Group, will address a business breakfast event in Edinburgh on 12 September, talking about the challenges involved in his role, and offering his insights into the continuing impact of digital communications.

As comptroller and auditor general, Sir Amyas Morse CA can lay claim to be “Britain’s auditor”, leading the National Audit Office which scrutinises more than £1trn of public spending each year. He will be speaking in London at a breakfast session on 18 September.

On Friday 26 September, the two CAs leading Stagecoach, chairman Sir Brian Souter CA and chief executive Martin Griffiths CA, will team up to tell the story of how a £20,000 loan started up what was to become one of the UK’s biggest transport businesses. The event takes place at Edinburgh’s Royal Scots Club.

Restoring trust in business is a critical task for the accountancy profession, and this will be the topic of the talk given by David Cruickshank CA, UK chairman of Deloitte, one of the Big Four accountancy firms. A tax partner who specialises in advice to large corporate clients, he will outline the steps he believes should be taken to create a robust system that inspires public confidence – and meets the needs of business and HMRC. He will be speaking at the Corinthian, Glasgow, on 30 September.

On 14 October at the Deloitte Academy, London, BP’s chief financial officer Dr Brian Gilvary will tell the story of the energy giant and give a finance professional’s perspective on what has been a challenging period in the sector.

As CEO of the Lloyds Banking Group, António Horta Osório is one of the most influential figures in UK business. Speaking in London on 21 October,

David Cruickshank

“Restoring trust in business is critical for the accountancy profession, and this will be the topic of the talk given by David Cruickshank” he will tell how he and his senior management are continuing to transform Lloyds after the trauma of the global financial crisis. He will also look at the group’s next challenges.

On 4 November, also in London, the Bank of England’s deputy governor Andrew Bailey will be talking about his role as deputy governor for prudential regulation and CEO of the Prudential Regulation Authority at the bank, and on ensuring lessons are learned from the financial crisis.

Land Rover’s CFO, Ken Gregor, will be speaking in Birmingham on 19 November on the topic of “leadership during recovery”. Gregor, who has been CFO since 2008, will talk about Jaguar Land Rover’s drive to profit and productivity following its acquisition by India’s Tata Group.

Ross McEwan is, arguably, the man with the toughest job in world banking. On 27 November the chief executive officer of RBS Group will explain, at an ICAS event in Edinburgh, how RBS is seeking to move on from the dark days of the biggest losses in corporate banking history, misselling scandals and political controversy, and he will outline the customer-focused philosophy driving change.

Andrew Miller

Martin Griffiths

CALENDAR OF EVENTS SPEAKER/EVENT

DATE LOCATION

Sir David Tweedie

2 September

The Yale Club, New York

Professor Niall Lothian OBE

4 September

The Hong Kong Club, Hong Kong

David Gauke MP, financial secretary to the Treasury

10 September

KPMG offices, 8 Salisbury Square, London

Keith Cochrane, Weir Group

11 September

The Corinthian, Glasgow

Andrew Miller, Guardian Media Group

12 September

The Royal Scots Club, Edinburgh

Sir Amyas Morse, National Audit Office

18 September

The Grange St Paul’s Hotel, London

Sir Brian Souter and Martin Griffiths, Stagecoach

26 September

The Royal Scots Club, Edinburgh

David Cruickshank, Deloitte

30 September

The Corinthian, Glasgow

Annual CA Dinner, London

6 October

The Savoy Hotel, London

Dr Brian Gilvary, BP plc

14 October

The Deloitte Academy, London

António Horta Osório, Lloyds Banking Group

21 October

KPMG offices, 8 Salisbury Square, London

160th Anniversary Reception

23 October

The Assembly Rooms, Edinburgh

Andrew Bailey, Bank of England

4 November

London

Ken Gregor, Jaguar Land Rover

19 November

Shoosmiths offices, Birmingham

Ross McEwan, CEO, RBS

27 November

Edinburgh

Annual CA Dinner, Edinburgh

28 November

Sheraton Grand Hotel, Edinburgh

For more details, including how to book your place at these events, see Event Planner, page 54.

You can also find more about the ICAS 160th anniversary programme online at http://160years.icas.org.uk/

SEPTEMBER 2014 CA MAGAZINE

18 CAREERS IN THE CITY

POST-RECESSION AND POST-SCANDAL, WHAT ARE THE OPPORTUNITIES FOR NEWLY QUALIFIED CAs LOOKING TO MAKE IT IN THE METROPOLIS? IAN HARPER INVESTIGATES

LONDON CALLING IN RECENT YEARS London has seen economic recession, financial scandal and a new wave of financial regulation. So what are the opportunities now for a qualified CA? “The CA qualification has always been extremely highly regarded. But this doesn’t necessarily mean that their business role could be confined to simply the financial reporting dimensions of any company, and CAs are in much demand, for example, within the management consultancy industry and, indeed, within the investment community as a whole,” says Bryan Johnston, senior divisional director at the private client and institutional stockbroker, Brewin Dolphin.

Mark Masson CA, a director with Highgate Executive in London, says: “There are a vast range of positions in accountancy practices, financial services and industry. I specialise in the energy and infrastructure sectors and am dealing with roles, for example, in infrastructure funds for newly qualified chartered accountants.”

According to Hays director Kelly Fordham, the opportunities are broad: “High-performing individuals across all core finance roles are in continued demand from commerce and industry employers. Also, as the financial services sector starts to recover, opportunities are emerging in product control, regulatory reporting and front-office analyst positions for major banks and investment firms.”

Ibi Kabir, senior global accountancy consultant at Change Recruitment Group, notes: “While London is globally known for its financial services institutions within the ‘Square Mile’, it

CA MAGAZINE SEPTEMBER 2014

holds an impressive reputation for the presence of major bluechip companies within manufacturing, construction, media, oil and gas and pharmaceuticals, to name but a few sectors.”

But what if you want an “alternative” career, or at least something a little different? What are the options and how might your CA skills set you apart from the competition?

Masson points to alternatives such as M&A, investment analysis, and portfolio management in the sectors he deals with and says CAs stand out for: “Strong academic results, and financial modelling, valuations, transactions and M&A experience in an accountancy practice.”

Kabir takes a more pragmatic view: “Businesses are highly focused on professionals who can ‘add value’ and ‘multi-task’, i.e. save costs, increase profit, eliminate risks etc. Examples of roles CAs can move into include business analyst, a range of change and project-managerial posts, strategic management consultant, operations manager, auditor (depending on qualification) and, of course, resource management roles within small and medium-sized organisations.”

“High-performing individuals across all core finance roles are in demand from commerce and industry employers” Kelly Fordham

19

FOUR CAs IN TOP CITY POSITIONS MIKE BALFOUR, CHIEF EXECUTIVE OFFICER, THOMAS MILLER INVESTMENT Mike Balfour was appointed CEO of Thomas Miller Investment in November 2010. He joined the company in 2009 as chief investment officer and is based in London.

Balfour qualified as a CA in London with Neville Russell and spent 16 years with Edinburgh Fund Managers, including six years as chief investment officer and managing director.

He joined Glasgow Investment Managers as CEO in 2004.

Thomas Miller Investment is part of the Thomas Miller Group, a world leader in providing insurance services for the international shipping and transport sectors and UK-based professional bodies, as well as private client asset management.

For Johnston, the key for a CA is to use their skills imaginatively. He says: “The ability of an imaginative CA to identify a potential prospect first, be it in the structuring of some financial vehicle or what is likely to be the continued manoeuvrings within the corporate sector over merger and acquisition, could be invaluable.”

He adds: “However valued an individual qualification in any profession, experience is of even greater worth, so a newly qualified CA should be patient when starting to swim in the real world as opposed to the ‘seas’ of academia.”

There is also another skill of value, he says: “A CA qualification is also useful in understanding the more arcane dimensions of the City’s world, including option trading, for example, ETFs [exchange traded funds] and the like.”

Fordham says: “Outside the core finance roles, alternative career options are seen in risk, regulatory, compliance and operational roles, and CAs will often be considered for the majority of positions within infrastructure.”

She adds: “Newly qualified CAs are moving into roles such as product control, regulatory reporting, capital management, treasury, front office, in-house strategy and corporate finance.

Likewise, we often see a demand for CAs in investor relations and client-facing opportunities within the major banks and firms.”

CHANGE IN PACE… AND OPPORTUNITY

Once seemingly tied to tradition, the City is now characterised by rapid change. Johnston, says: “The City is faced with the increasing need to conform to all manner of regulatory dimensions, such as suitability, both over specific stock selection and portfolio construction, along with risk analysis. A good compliance officer will be worth his or her weight in gold, probably quite literally, and a confirmed ability to understand financial matters can only be an advantage.”

DOUGLAS FLINT, GROUP CHAIRMAN, HSBC HOLDINGS PLC Douglas Flint is chairman of HSBC, one of the world’s largest international banking groups. He began his career with Peat Marwick Mitchell & Co (now KPMG) where he trained as a CA. He was appointed a partner of the firm in 1988.

He joined the HSBC Group as group finance directordesignate in 1995. In February 2010, his responsibilities were broadened to that of chief financial officer, executive director risk and regulation. He was appointed group chairman of HSBC Holdings plc in 2010.

DAVID NICOL, CHIEF EXECUTIVE, BREWIN DOLPHIN David Nicol is chief executive of Brewin Dolphin, one of the UK’s leading providers of personalised, discretionary wealth management services.

He qualified in 1980 as a CA with Ernst & Young and spent two years working for KPMG in Hong Kong before joining Morgan Stanley in London in 1984. He worked for Morgan Stanley for 26 years in a number of operations and finance roles, becoming a director in 2004.

He sits on the board of the Chartered Institute of Securities and Investments and the Council of ICAS, and he is a member of the Appointment Committee of the Hermes Property Unit Trust. He joined the board of Brewin Dolphin as a non-executive director in 2012 and was appointed as chief executive in 2013.

SENTHIL ALAGAR, HEAD OF RESTRUCTURING, BARCLAYS BANK Senthil Alagar leads an award-winning team of experienced corporate restructuring professionals who work with and support corporate clients through challenging situations. He has specialised in corporate restructuring and turnaround for the past 12 years, operating as a stakeholder and as an adviser to corporates and lenders.

He has been a member of ICAS since 1999, and graduated with honours in accountancy from the University of Glasgow.

He is a member of the ICAS mentors’ panel.

SEPTEMBER 2014 CA MAGAZINE

20 CAREERS IN THE CITY Fordham agrees: “The emphasis is now on areas of regulatory reporting, capital/liquidity analysis, financial planning and analysis, commercial decision support, MI [management information], compliance, and risk, both operational and market. And as the economic climate continues to gain positive movement, new listings emerge and equity capital markets gather pace, we’ll continue to see demand for CAs for the first rung of the research ladder, provided they came via the Big Four ECM [equity capital markets] route.”

She adds: “Alongside regulatory roles, employers are often keen to have CAs apply their skill in roles focused on the production and delivery of commercial MI and performance analysis.”

Employers also want experience. Kabir says: “Experience of manufacturing, distribution, sales and marketing over what may be a series of roles, gives the CA a more rounded set of experiences. The skills gained can be enhanced by continuing professional development, including professional peer group communication and networking, as well as nurturing up-to-date knowledge of the latest analytical software, for example.”

Looking ahead, Kabir points to the growing significance of “Big Data”, and especially the ability to manipulate it and distil it into potential business strategies. He says: “The CA’s ability to work with data sets that are too large and complex to manipulate or interrogate with standard methods or tools can set them apart in this environment.”

FIRST MOVES CAN BE CRUCIAL

Stepping back, are there roles for CAs that can lead more naturally to further career opportunities?

Simon Smith, director of the commerce and industry division at 5-10 Group, advises: “I would recommend that CAs seek out secondments in industry to enhance their skill set as well as training in softer skills such as presentation and people.”

The major banks are looking for more than just a technical skill set. Fordham says: “They want to see people who can really understand the business, challenge and influence at the highest level from day one. We would always advise on keeping their first move in a core area of finance to gain a broad skill set.”

While some areas have great potential, are there others CAs should avoid for fear of going down a career cul-de-sac?

Nick Talreja, manager of compliance, risk and finance at Badenoch & Clark, says: “Most of the positions available to CAs are fairly progressive; however it does depend on the calibre of the candidate. People should be wary of roles that have a limited shelf life in the market, such as positions based around specific regulatory change.”

Fordham warns CAs to consider their first move carefully: “It is critical in shaping their career and determining the opportunities available to them in the future,” she says.

However, she adds: “Very few roles will result in a dead end.

Product control was once seen as a niche and specialist route, but we have since had a huge demand for these individuals to move into the evolving world of compliance and risk.”

Smith agrees: “There aren’t any ‘no go’ areas as such, but my advice would be to earn your stripes in a technical accounting role in an industry you are passionate about so that you understand the workings of financial reports, and how the business fundamentally works, and then use that knowledge to move into more commercial and strategic positions.”

Of course, CAs qualifying in a large public practice firm are also likely to find many opportunities to progress.

Dan Richards, head of recruitment at EY, comments: “CAs in London may well end up in a large organisation so if they have experience of dealing with large turnover clients, or complex organisations, that may help. CAs within professional services may want to seek as many diverse opportunities as they can.”

He adds: “Assurance services are evolving in line with a heavy increase in regulation so it is useful for CAs to have experience of things outside of core audit and accounting, such as process and control analysis or compliance and regulation analysis.”

To conclude, Fordham and Smith offer some wise words: “To make your CV stand out, ensure your client experience is highlighted and include as much detail as possible about your previous experience with examples to demonstrate successes.”

Smith adds: “Choose one or two preferred agencies to represent you in the market. By limiting the number of people you work with you will get a superior service and buy in from your consultant and the job search will become a partnership. Work on your commercial knowledge and getting an understanding in practice of accounts preparation… and have a clear five-year plan.”

IAN HARPER IS A FREELANCE BUSINESS JOURNALIST

“A good compliance officer will be worth his or her weight in gold, probably quite literally” Bryan Johnston

TIRED OF LONDON? CONSIDER THE OVERSEAS OPTIONS “I’VE BEEN fortunate enough to recruit in the USA and in Hong Kong over the last few years and there is always demand overseas for qualified CAs – the markets there are actually very similar to London in their make-up. The pros are learning about different ways of working, management, cultures and travelling.

It also separates your experience and CV from the masses, so immediately makes you interesting and stand out.

“Largely, these financial centres pay similar salaries, but there are differences in the cost of living so that’s a factor. The cons are getting to

CA MAGAZINE SEPTEMBER 2014

grips with differences in accounting principles and local rules and regulations which can vary and need to be learnt. There are undoubtedly language and visa barriers too, not to mention commitments at home. My advice would be to gain experience in London and seek a move with your employer for a secondment overseas – it’s far easier to get access to the roles once you are living somewhere and embedded in the culture.”

SIMON SMITH IS DIRECTOR OF THE 5-10 GROUP

‘What gives you the license to do this?’

T H E C E O O F A M A J O R S WIS S WATC H BR A ND ON HEA R ING A BO U T C AL I B R E S H 2 1, CH R I S TO PH E R W A R D ’ S F IR S T IN- HOUS E MOV EMENT.

The chronometer-certified C9 Harrison 5 Day Automatic, with 120-hour power reserve, is the first watch to house our own movement. Conceived and designed by our master watchmaker, Johannes Jahnke, and manufactured by some of Switzerland’s finest watchmaking craftsmen, it is destined to be one of the most talked about watches in years. And, yes, you do have the license to own one.

C A LI BRE SH 21

EXC LUS IV ELY AVAI L AB L E AT christopher ward.co.uk

22 INTERVIEW

Equipped for

equity

CA MAGAZINE SEPTEMBER 2014

PHOTOGRAPHY BY BRENDAN MACNEILL

23

ROBERT OUTRAM TALKS TO NIGEL MOSS CA ABOUT THE CAREER PATH THAT LED HIM TO HIS ROLE AS MANAGING DIRECTOR OF LLOYDS DEVELOPMENT CAPITAL IN SCOTLAND AND THE HEALTH OF THE COUNTRY’S EQUITY MARKET LLOYDS DEVELOPMENT Capital (LDC) has around £2bn in equity invested in 80 or so businesses around the UK, from industrial concerns such as Nuclear Engineering Services in the Midlands, to high quality dessert makers the Ministry of Cakes, in Somerset.

In Scotland, LDC is headed by a CA, Nigel Moss. Over the past two years, LDC has built up its team in Scotland and now has six directors, based in Edinburgh and Aberdeen. The Scottish team is the newest to be set up at LDC and partially reflects the aim of gaining some oil & gas sector exposure for the portfolio; Mark Kerr, one of the directors, is former co-head of oil & gas for 3i in Aberdeen and Kevin Binnie, also based in Aberdeen, is a CA with solid experience in the sector with KPMG and SCF Partners.

It’s not all about the energy sector, however. Moss says: “Not having size and scale in Scotland didn’t sit right with our portfolio. By having people on the ground, we can ensure that we get all the connections that we can to Scotland, and we are always looking for new deals.”

The aim is to build a Scottish portfolio of around eight businesses, investing in the region of £50m each year. So far LDC has two: the oil services group Ramco, based in Aberdeen, and MB Aerospace, a high-end engineering business based in Motherwell.

Other companies in the LDC portfolio also have Scottish connections; for example, leisure business Forest Holidays and MAMA & Co, which operates music venues such as the Forum and Jazz Café in London, and the Picture House in Edinburgh.

Moss explains: “We have our main office in Edinburgh rather than Aberdeen because are focused on looking for deals and not just oil & gas. We are looking for companies making more than £1m of profit, and we want to invest between £2m and £100m of equity.”

Moss himself also has specialist expertise in the property sector and was formerly responsible for managing Lloyds’ Uberior Ventures portfolio of equity interests in around 150 property-based companies, from garden centres to London’s iconic Savoy Hotel.

“When you are supplying the equity and growth capital for companies, and if you are more than an hour and a half away, or your flight’s cancelled, or you can’t take off because of snow, then you are not giving the company the support it needs”

He continues to be involved with LDC’s work in this sector across the UK – for example D&D Restaurants, which operates a number of venues in London, New York, Japan and Denmark including Quaglino’s and Le Pont de la Tour.

Moss also sits on the board of the United House Group, a construction and residential development business.

Over the last decade and more, many observers have bemoaned the comparative decline of private equity on the ground in Scotland, with many players choosing to operate from London. Moss says that, in the mid-market, physical presence is important: “When you are supplying the equity and growth capital for companies, and if you are more than an hour and a half away or your flight’s cancelled, or you can’t take off because of snow, then you are not giving the company the support that it needs. I think you have to know what that management team are going through, to make the most of your investment.”

So are Moss and his team chasing deals or is it the other way around? “It’s a bit of both, really,” he says. “We are out there getting the word out and speaking to as many companies as possible. Larger deals, say around £50m, tend to attract London PE houses; with £75m, £100m deals you get global interest and we have seen some of those deals go to foreign investors. But with the smaller deals, you get very few PE houses in Scotland, so it’s about letting people know we are here if you want to talk about your future and your growth.”

The private equity sector has been on something of a roller coaster, from the heady days of the early 2000s when debt finance was plentiful, through the credit crunch and recession, to the recovery. Moss points out that LDC’s approach was always more cautious than some and, he says, the business has never been over-leveraged. This has enabled LDC to continue to invest in around 15 deals a year, on average, even through the downturn.

Moss trained as a CA in Edinburgh with Ernst & Young, and became involved with corporate finance early on. It was the 1990s and venture capital trusts had just been introduced, and Moss was working on the audit of, among others, Aberdeen Murray Johnstone (now Aberdeen Asset Management).

In 2001, Moss was there at the start as a director with the Bank of Scotland’s Integrated Finance operation, which took an innovative approach to combining debt and equity. He says: “For the first five years it was an interesting model, investing in small deals throughout the UK – traditional private equity – and it was when the size and scale changed that integrated finance ended up in a very different place. But when it was just the traditional deals, it was good fun.”

With the onset of the financial crisis – and the takeover of HBOS/Bank of Scotland by Lloyds – Moss took on a challenging role managing Lloyds’ equity exposure to property sector. This meant responsibility for a portfolio of £20bn in assets across 180 joint ventures.

Having seen all sides of the economic cycle, Moss moved to LDC which offered the chance of a transfer to Scotland after several years of being London-based. With two young children, as well as a keen interest in outdoor sports like skiing and mountain biking, the opportunity was too good to miss.

NIGEL MOSS Curriculum Vitae 1996

Trains as a CA in corporate finance with Ernst & Young in Edinburgh, qualifying as a CA in 2000

2000

Joins BP corporate finance team, to help integrate ARCO acquisition

2001

Appointed as director of integrated finance, HBOS

2008

Responsible for managing Lloyds Banking Group’s equity exposure to the property market

2009

Appointed managing director of joint ventures equity, Lloyds, to manage the bank’s Uberior Ventures portfolio

2012

Appointed managing director private equity, Scotland LDC

OTHER ROLES

Board member with Uberior Ventures, UEL, Delancey Advisory Committee and United House Group

EDUCATION

University of Edinburgh

INTERESTS

Spending time with his family (two children), skiing and mountain biking

SEPTEMBER 2014 CA MAGAZINE

24 INTERVIEW

Moss says his CA training made an excellent foundation for his current role. As he puts it: “I probably didn’t appreciate it at the time, but the core audit and corporate finance that you get [as a CA student] is still relevant to what we’re doing just now. You are out there, meeting the management team, and getting a tour of the business; very much as when you are doing an audit in your CA traineeship, which is quite a privileged position.”

Moss adds: “The most satisfying part [of my job] is seeing the growth in the businesses come through. The most frustrating is that you will lose some deals to competitors, or they just won’t happen. So it’s relentless, you always want to know what’s going on... we would never rest on our laurels.

There’s always a company in the portfolio looking to make an acquisition or looking to realise its investment.

“There are companies coming through that may not be ready for investment yet, but if we don’t take the time to get to know them now, when the deal eventually happens it would just be about the money, which is not our ethos.”

He admits to having had some concerns, initially, about how much deal flow might be coming through in Scotland, but having seen the level of confidence out there he is a lot more optimistic.

Moss says: “There are great companies at all stages of investment in Scotland now, from Inverness to the Borders and everywhere in between. It’s as good as anywhere in the UK.”

“There are companies that may not be ready for investment yet, but if we don’t get to know them now, when the deal eventually happens it would just be about the money, which is not our ethos” CA MAGAZINE SEPTEMBER 2014

LLOYDS DEVELOPMENT CAPITAL PRIVATE EQUITY houses invest in companies’ equity, while banks provide debt finance, right?

Right – except that for some time, banks have also been involved in their own equity investments.

“Integrated finance” – combining debt and equity funding – grew rapidly in the years leading up to the global financial crisis. Lloyds Development Capital is not an example of “integrated finance”, however – it is a private equity house (LDC) that belongs to a bank, and furthermore it is free to deal with other banks just as much as with its own parent,

when it comes to putting deals together.

LDC is the leading regional private equity player in the midmarket, typically making investments between £2m and £100m, in sectors as diverse as financial services, information technology, heavy engineering and entertainment.

Equity capital from LDC is used to fund buy-outs, acquisitions, investment for growth or equity release for management looking to realise some of the value they have built up in the business. Since 2003, LDC has supported more than 130 management teams in this way.

25

26 INTERVIEW

CA MAGAZINE SEPTEMBER 2014

27

FUNNY BUSINESS AT THE SAVOY ROBERT OUTRAM TALKS TO COMEDIAN AND IMPRESSIONIST RORY BREMNER AS HE FIGURES OUT HIS SPEECH FOR THE CA DINNER IN LONDON IN OCTOBER RORY BREMNER is catching up with the news on the Cabinet reshuffle, and he’s not happy. “Half my acts are going to disappear in the next 15 minutes!” he exclaims.

Bremner is best known as an impressionist and satirical comedian, using his gift for mimicry not just to raise a laugh, but to make his audience think a little, too.

In October, he’ll be the star turn at the CA Dinner at London’s Savoy Hotel. The CA caught up with him as he was heading out to Belgium to film a programme for the BBC on First World War military medical hero Charles McKerrow, as part of the WWI commemorative season. McKerrow, a doctor from Ayrshire, revolutionised the way stretcher bearers worked, and virtually created the Army paramedic. Sadly, after only about a year on the front line he was killed himself.

The story has resonance for Bremner, the son of an Army officer, and he has previously presented films on the Scottish soldier in British history. It’s a serious side to a career that began with making people laugh in shows like Spitting Image and Week Ending.

He moved to Channel 4 to collaborate with veterans of satire John Bird and John Fortune, to create shows with hardhitting political comment as well as comedy. Bremner says of Fortune, who died last year: “I still miss him, very much. He and John Bird were like mentors to me, and they taught me a lot about comedy and about life.”

So what of satire in 2014? Bremner says: “We’ve been through a bizarre four or five years with this Coalition government and nobody’s really laid a glove on them. But things go in waves, and maybe they [TV chiefs] thought the Coalition is more than capable of producing its own satire.”

Bremner’s last purely satirical show was aired in the runup to the 2010 election. After that, he appeared on shows like Mock the Week, but he admits to feeling less at home with the unscripted, laddish panel shows currently in vogue.

“Today’s politicians are more boring,” he says. “I doubt whether even David Cameron knows who most of the Cabinet are, particularly after this reshuffle. We are in this bland, managerial, non-ideological phase and the two exceptions are Boris Johnson and Nigel Farage, neither of whom are my cup of tea politically, but who seem to capture the imagination, precisely because they are less worried about what they say.”

The referendum campaign has also focused unprecedented attention on the politics of Bremner’s native Scotland. For a satirist, that has been a double-edged sword. He says: “Maybe there’ll be a sigh of relief on 19 September once people can be

Rory Bremner is the after dinner speaker at the CA Dinner at The Savoy Hotel, London on Monday 6 October. For information or to book, please contact Hollie Munford on +44 (0)208 0909 5508 or londonoffice@ icas.org.uk or, alternatively, go online to icas.org. uk/cadinners

themselves again, and not have everything seen through this prism of ‘independence versus the status quo’.

“Elections divide people into different camps and this has, particularly. It’s a debate that raises a lot of heat. Nobody said ‘how dare you!’ when I did impressions of John Major. But you do get that in this climate.”

Bremner believes satire is a healthy part of democracy: “People engage more in politics if they follow it, if they take an interest in it. When Spitting Image was on, people knew who Norman Tebbit was, or Norman Fowler, or even Ken Baker. They were being lampooned, but people had a sense of who they are.”

He adds: “The great thing about accountants as an audience is that they are prepared to laugh at themselves. And there is always some piece of legislation or something that they are trying to get their heads around, so you can make them laugh about that, or politics, or life generally.

So what’s in store at The Savoy? Bremner says: “There’ll be a lot of voices, a bit of politics from around the world, topical comedy and there might be a joke about accountancy. But you could leave at that point, if you’re offended…”

“The great thing about accountants as an audience is that they are prepared to laugh at themselves.

And there is always some piece of legislation or something that they are trying to get their heads around, so you can make them laugh about that, or politics, or life generally” SEPTEMBER 2014 CA MAGAZINE

28 FINANCIAL DIRECTORS SURVEY IN ASSOCIATION WITH

CAUTIOUS OPTIMISM IN 2014 RESPONSES THE INDEPENDENCE REFERENDUM, IMPROVING GOVERNANCE AND NEED FOR GREATER BANK LENDING LOOM LARGE IN THIS YEAR’S FDs SURVEY MANAGING WHAT MATTERS: THE TOP 10 ISSUES RANKED BY IMPORTANCE (Last year’s position shown in brackets, if in the 2013 top 10) 1. Controlling costs (1) 2. Growing revenues (2) 3. Staff recruitment and retention (3) 4. Corporate governance (8) 5. Availability of finance (5) 6. Fraud prevention (-) 7. Bringing new products and services to market (4) 8. E-commerce and the Internet (7) 9. Expanding into new markets (6) 10. Interest rates (-)

ECONOMIC PROSPECTS

What are the prospects for the UK economy, or your local economy, if this is different, in the coming 12 months?

10%

72%

74%

12%

19%

9%

In your organisation?

In the finance function?

CA MAGAZINE SEPTEMBER 2014

13%

1% 1%

25%

2013

12%

SCOTLAND

Do you anticipate redundancies during the remainder of 2014? Those answering “yes”:

2014

14%

ALL RESPONSES

REDUNDANCIES

5%

1%

2 2 %%

11%

3 %

5 5 % %

UK – ALL

NON UK

75%

62%

The economy is set to decline again over the next 12 months Growth will be flat or negligible through to H2 2015 We will see modest growth over the next 12 months We will see strong growth over the next 12 months No opinion

25 %

29 IN ASSOCIATION WITH

ACCORDING TO the Bank of England, we are only halfway down the road to recovery. But if our survey of finance directors is anything to go by, that road is looking sunnier.

The FD Survey is based on an online poll of ICAS members in the FD/CFO role with, this year, more than 160 responses. On the economy, 72 per cent expect “modest growth” and 10 per cent “strong growth”; these are the best numbers for some years. Also, fewer FDs report recessionrelated challenges such as reduced availability of bank finance, or an increase in bad debts.

Economic factors also may help to explain changes in the “top 10 issues” table. “Interest

rates” and “fraud prevention” for example are both now back on the agenda.

This year, however, differences emerged depending on where the financial directors are based (54 per cent in Scotland, 21 per cent elsewhere in the UK and the rest outside the UK). Non-UK respondents were markedly less optimistic about the economy where they are.

There was not a major difference between Scotland and the rest of the UK in terms of economic outlook, but for the former, the upcoming referendum on independence looms large as an issue. Scottish-based FDs rated this as fourth on their list of priorities, and 67 per cent saw implications for their

own organisation in the event of a “yes” vote (rest of UK: 28 per cent).

Of those who believed the referendum would affect them, around a third had attended a conference or other event on the issue, far fewer had sought professional advice (so far) and 27 per cent had considered relocating “some or all” of their operations – although that does not, of course, mean that they would do so.

Finally, we asked about measures to restore trust in business. Overwhelmingly, our FDs said “corporate culture”, “sustainability” and “transparent financial reporting” will be key to achieving that.

As ever, thanks to all those members who took part.

ECONOMIC PROSPECTS: BY SIZE OF COMPANY

9%

2 %

11%

12%

3 %

7%

16%

4

%

2 %

15%

<£10M %

£10M£100M %

>£100M %

77%

69%

72%

The economy is set to decline again over the next 12 months Growth will be flat or negligible through to H2 2015 We will see modest growth over the next 12 months

We will see strong growth over the next 12 months No opinion

HAVE YOU EXPERIENCED ANY OF THE FOLLOWING DURING 2014, SO FAR?

No %

2014 2013 Reduced availability of bank finance 89 84 Less favourable terms for bank finance 85 75 Reduced availability of equity funding 94 91 Downward pressure on prices 44 35 Increase in bad or doubtful debts 73 64 Increased demand from stakeholders for financial information 45 53 Opportunities for your business to grow market share organically 18 26 Opportunities for your business to grow through acquisition 48 47

Yes, to some extent % 2014 2013 9 14 13 22 4 6 48 51 24 31 42 39 66 59 40 42

Yes, significantly % 2014 2013 2 3 3 3 2 3 8 14 3 5 13 8 16 15 12 11

SEPTEMBER 2014 CA MAGAZINE

30 FINANCIAL DIRECTORS SURVEY IN ASSOCIATION WITH

SCOTLAND DECIDES

Do you see any implications for your organisation, if Scotland votes for independence in the referendum this September?

ALL

SCOTLAND

REST OF UK

NON-UK

NO

37%

12%

50%

82%

YES

44%

67%

28%

8%

19%

21%

22%

10%

Don’t know

HAVE YOU TAKEN ANY OF THE STEPS BELOW WITH REGARD TO THE REFERENDUM ON SCOTTISH INDEPENDENCE? Please select any that apply (note: the responses shown are from those who believe their organisation might be affected) Read Scottish Government material Read UK Government material Attended any conference, seminar or event on the issue Sought advice from your accountants Sought advice from your lawyers CA MAGAZINE SEPTEMBER 2014

74% 70% 32% 7% 11%

Sought advice on crossborder pensions issues Sought other professional advice Raised the issues at board level Mentioned the issue in the directors’ report Considered relocation of any operations

5% 12% 62% 14% 27%

31

RESTORING CONFIDENCE

IN ASSOCIATION WITH

Which ONE measure or action would do most to move the economy forwards? (Shown in decreasing order of importance) 1. Banks need to lend more 2. Cut red tape 3. Tax cuts for individuals 4. Tax cuts for business 5. Corporates need to increase their capital expenditure 6. More government help for business 7. More state spending on public projects 8. More effective regulation for the financial sector 9. Reducing the state’s deficit further and faster 10. Full or partial breakup of the Eurozone Many people are concerned that public trust in business generally has been eroded by a number of factors. How would you rate the factors below in terms of restoring that trust? Shown in decreasing order: 1.

2.

3.

4.

5.

6.

7.

8.

9.

A change in corporate culture Prioritising sustainability, not short-term performance More transparent, understandable financial reporting Stronger, more independent boards Greater emphasis on teaching and instilling ethics Better communication between business and the media A fresh approach to executive remuneration Better communication between business and politicians More effective regulation

FDs’ COMMENTS ON “RESTORING TRUST”: “More honesty. A better balance between employees and the company – this relationship needs to improve.”

“General public feeling is led by the media – whether or not that is a good thing... Businesses need to think on a longer term basis – less selfishness, less greed and more sharing.”

“A more responsible media not driven by selling papers with sensationalist often untrue headlines.”

“The public has to grasp the profit motive; multinationals have to adopt ethics in their tax planning.”

“It’s all about ethics. The short-term nature of the markets and executive pay have driven the change. Executives should strive to grow a business over the long term and not year to year.”

“The assumption is that ‘business needs to change’. The reality is that the public need to change, or at least realise that there is no ‘business’ – just people like them, me and you.”

“Too many incentive schemes are set for short-term goals not longterm growth and sustainability.”

“More publicity surrounding company officers who stray from the straight path. Higher penalties for company officials who perpetrate fraud or play with the financial numbers.”

“I think the public could be better educated on what business is actually for: to employ people, to invest in for pension planning, rather than it being seen as ‘bad’ due to excessive director remuneration and bad decision-making, certainly on the part of the banks.”

Be upbeat, but be prepared THE YEAR AHEAD OFFERS OPPORTUNITIES, BUT IT WILL, NO DOUBT, PRESENT CHALLENGES TOO. SIMON RAE, MANAGING PARTNER OF DLA PIPER IN SCOTLAND, OUTLINES THE KEY AREAS TO BE AWARE OF FINANCE DIRECTORS’ confidence in the economy is positive again, with 86 per cent of FDs in Scotland expecting modest or strong growth over the next 12 months. This time last year, just 59 per cent offered the same sentiment.

It is clear from this year’s survey that the FDs’ lists of concerns are adapting each year, no doubt reflecting some of the more positive soundings in the market and the, increasingly, competitive business landscape.

FDs were asked what issues will be of most concern to them over the next year and, not surprisingly, some of the “regulars” from recent years (such as access to finance and interest rates) featured prominently.

With that said, growing revenues and staff recruitment and retention were also listed just below a general caveat that there is a need to control costs.

Organic and inorganic growth can be a complicated and costly exercise for businesses. Over the past 12 months there has been a significant increase in transactional activity, both in Scotland and across the rest of the UK. These transactions, by their nature, involve a wide variety of legal and other issues that need to be assessed and managed.

Staff recruitment and retention is also, clearly, an important cornerstone for successful and growing businesses. In the next 12 months there will be a number of changes in this already complex area. Taking one particular example, female staff who became pregnant in or after July 2014 will have the right to apply for shared maternity/ paternity leave. There can be little room for error and having the right advice in place is a valuable tool to help protect your business as these changes come into effect.

In 2014, no analysis or survey would be complete without a mention of the forthcoming independence referendum. More than two thirds (67 per cent) of FDs in Scotland indicated that a “yes” vote would have implications for their business and more than a quarter (28 per cent) in the rest of the UK agreed. While the regular polls may provide some insight, no-one can predict the outcome of the referendum. On this basis, being prepared and understanding the potential impact of this on key areas (such as the implications for key contracts) is vital.

SIMON RAE IS THE MANAGING PARTNER OF DLA PIPER IN SCOTLAND

SEPTEMBER 2014 CA MAGAZINE

32 FINANCIAL DIRECTORS WHO’S WHO IN ASSOCIATION WITH

A-Z OF FINANCE PROFESSIONALS

FROM CONSTRUCTION TO CONFECTIONERY, DAIRY GOODS TO DATING SITES, ACCOUNTANTS ARE AT THE FINANCIAL HELM OF MANY SECTORS ACROSS THE GLOBE. WE LOOK AT THIS YEAR’S MONEY MEN AND WOMEN GREGOR ALEXANDER SSE Gregor Alexander CA was named finance director of Scottish & Southern Energy (SSE) in October 2002, having previously served as group treasurer and tax manager. His involvement with the group extends back to Scottish Hydro-Electric, which he joined in 1990, before its merger with Southern Electric in 1998 to form Scottish & Southern Energy. He is also a director of Scotia Gas Networks and Scottish Hydro-Electric Power Distribution.

SALLY BROOKS Cobham Antenna Systems Sally Brooks CA is finance director with Cobham Antenna Systems, a high-tech company supporting the aerospace sector, based in Marlow, Buckinghamshire and Lewisville, Texas. She trained as a CA with Arthur Andersen and worked in financial roles at Christian Salvesen and Eaton Corporation – in Scotland, the US, England and Germany – before moving to her present role at Cobham.

JAMES BELL Aberdeen Harbour Board James Bell joined Aberdeen Harbour Board in 2009 from Caledonian Brewery, a subsidiary of Heineken UK, where he had been head of finance since 2002. A graduate of Dundee University, he trained with Bird Simpson Chartered Accountants and spent seven years with Meston Reid in Aberdeen eventually becoming senior manager before moving to Edinburgh and joining Diageo in 2001. Bell is also chairman of the Finance Group of the British Ports Association.

DAVID COCKBURN Innis & Gunn David Cockburn CA is CFO with craft brewer Innis & Gunn. The company’s export success owes much to its unique story; a beer brewed initially to create flavour for whisky barrels, which is now a premium ale in its own right. Cockburn trained as a CA with Coopers & Lybrand, and moved in 2005 to become head of M&A in Scotland for Grant Thornton. He joined the board of Innis & Gunn in 2008 and became CFO in 2011.

PETER BOLE Tesco Bank Peter Bole CA joined Tesco Bank as finance director in 2009. Prior to that, he worked in several roles at RBS, most recently as finance director of the partnership, international and broker businesses within RBS Insurance. He has also held roles with Deloitte and Standard Life Investments.

ALISTER COWAN Husky Energy Alister Cowan CA was appointed chief financial officer, Husky Energy, in July 2008.

He was previously executive vice-president and chief financial officer of British Columbia Hydro & Power Authority.

Husky Energy is one of Canada’s largest integrated energy companies. Its headquarters are in Calgary, Alberta, and it is publicly traded on the Toronto Stock Exchange.

“Alister Cowan is chief financial officer, Husky Energy, one of Canada’s largest integrated energy companies. Its headquarters are in Calgary, Alberta” CA MAGAZINE SEPTEMBER 2014

SHANE CORSTORPHINE Skyscanner Shane Corstorphine CA is CFO at Skyscanner, the Edinburgh-based travel price comparison website operator, which is increasing its global reach all the time. In 2013, turnover for the business was £65.8m, up 96 per cent on the previous year, with around 25m people using its website and app each month.

33 IN ASSOCIATION WITH

Corstorphine qualified as a CA with PwC and left to work on an online startup business before moving to corporate finance at RBS and Barclays. He joined Skyscanner as CFO in 2012.

COLIN FLEMING AMEC Colin Fleming CA is finance director for Amec’s Europe operations covering oil and gas, clean energy and environment and infrastructure markets. He has been at Amec for 14 years and has more than 30 years’ experience at senior level within the major oil and gas service companies. With annual revenues of some £4bn, Amec is a FTSE listed company that designs, delivers and maintains strategic and complex assets and employs around 27,000 people in more than 40 countries worldwide.

ALAN GRAY NHS Grampian Alan Gray CA is the director of finance and board member of NHS Grampian.

Employing more than 15,000 staff and with an annual operating expenditure in excess of £1bn, NHS Grampian is one of the largest organisations in the north east. Alan is responsible for the board’s strategic financial planning, has executive responsibility for performance management and is chairman of the programme board responsible for the public sector capital programme across the north of Scotland. Prior to taking up his current post, Alan spent 25 years in professional practice, latterly as a director with PwC. MICHAEL HEALY Thomas Cook Michael Healy CA joined the Thomas Cook Group plc on 14 May 2012 and became group CFO on 1 July 2012. Prior to this, he was group FD of Kwik-Fit Group. He has considerable international experience across a broad range of industries and was previously chief operating officer and FD of the Hong Kong listed First Pacific Company Ltd and subsequently CFO of ebookers plc.

CHRIS HOUGHTON Telecom Plus Chris Houghton CA is finance director and an executive director of Telecom Plus plc. He qualified as a CA with PricewaterhouseCoopers in 2003 and joined Telecom Plus in September 2008. He was appointed FD in February 2009.

Telecom Plus plc, which owns and operates the Utility Warehouse brand, provides a wide range of utility services, spanning both the communications and energy markets. The company is listed on the London Stock Exchange.

JOHN IRVINE Stewart Milne Group John Irvine CA is group FD at house builder Stewart Milne Group, one of the largest independent builders in the UK residential market. He joined Stewart Milne in May 2001 from Headlam Group in Glasgow, where he was finance director of the Eclipse Blinds Division.

JAMES KIDD AVEVA James Kidd CA joined AVEVA – a global engineering software provider to the plant, power and marine industries – in 2004 and was appointed financial director on 1 January 2011. Prior to his appointment to the board, James held several senior finance roles within the group and was head of finance from 2006.

IAN LEGGETT Dennis Publishing Ian Leggett CA is group FD at Dennis Publishing. He joined the magazines business in September 1992, having spent 10 years with Touche Ross and three years as FD at Harrap Publishing Group. In his initial role as FD of Dennis Publishing he facilitated the growth of the company in the UK through launches and acquisitions. He also participated in the launch of Maxim and The Week in the US. He now oversees group finance.

DAVID LOGAN F&C Asset Management David Logan CA joined the board of F&C Asset Management as an executive director on 31 July 2006 serving as CFO until May 2014 when he took on his current role as chief operating officer, alongside his continuing financial responsibilities. Prior to joining F&C Logan spent 17 years in the accounting profession, including four years as a partner at Deloitte & Touche LLP and three years as a partner at Andersen.

“Alan Gray is the director of finance at NHS Grampian, [which has] more than 15,000 staff and an annual operating expenditure in excess of £1bn” CAROLE CRAN Aggreko Carole Cran CA is chief financial officer of Aggreko, the world’s largest temporary power generation company. She was appointed on 1 June this year, after serving as interim chief financial officer from April.

Cran has corporate finance and accounting experience acquired over a number of years in senior financial roles with considerable exposure to emerging markets. Having joined Aggreko in 2004 as group financial planning manager, Carole has worked closely with Angus Cockburn CA

(CFO until April 2014 until his move to Serco, see page 34) as group financial controller and more recently as director of finance.

Before joining Aggreko, she spent seven years at BAE Systems, in a range of senior financial positions, including four years in Australia.

She trained as a CA with KPMG in the UK and Australia.

SEPTEMBER 2014 CA MAGAZINE

34 FINANCIAL DIRECTORS WHO’S WHO IN ASSOCIATION WITH

RICHARD LOGAN Iomart Richard Logan CA is group finance director, Iomart, an integrated Internet and telecommunications company which has evolved to become one of Europe’s largest providers of cloud computing services. Logan was previously finance and commercial director of Kingston SCL for 10 years, during which time he played a key role in a management buy-out and subsequent trade sale.

JOHN LOVE Macfarlane Group John Love CA is finance director with the Macfarlane Group. He has been with the group since 1996 and became FD in 1999.

Prior to joining Macfarlane Group he was with Deloitte.

Macfarlane Group operates three leading UK-based businesses in the packaging and labels sector and is listed on the UK Stock Exchange.

IAIN MACKAY HSBC Holdings Iain Mackay CA has been chief financial officer of HSBC – the world’s second-largest international banking group – since 2009. He previously served as senior executive vice-president and chief financial officer of HSBC North America Holdings, where he was instrumental in the restructuring of the bank’s consumer finance business in North America. HSBC’s chairman, Douglas Flint, is also a CA. BRIAN MACKIE Autobar Group After a successful career in the European drinks sector, Brian Mackie CA has swapped alcohol for caffeine, as chief financial officer with the Autobar Group, one of Europe’s biggest players in beverage vending machines. Prior to joining Autobar, Mackie worked in the consumer goods industry, including roles at Mars Inc, Cott Corporation, Maxxium Worldwide and StarBev. MARTIN MAGEE Jersey Electricity Martin Magee CA joined the board of the listed Jersey Electricity plc in the Channel Islands as finance director in May 2002. He was previously with Scottish Power. Magee is also non-executive Audit Committee chairman of Stanley Gibbons plc and a non-executive director of the Newton Offshore Strategy Fund Ltd. DAVID MAITLAND Food & Beverage Business Unit, Amcor David Maitland CA is finance director of the Food & Beverage business unit of Amcor, a Zurich-based business with 20 manufacturing facilities across Europe and a turnover in excess of £1bn.

He has held various operational and finance positions over CA MAGAZINE SEPTEMBER 2014

ANGUS COCKBURN Serco Angus Cockburn’s move from Aggreko to the CFO role at outsourcing services group Serco, announced in August, reunites him with his former chief executive, Rupert Soames, who himself moved to head up Serco in May. With both profits and revenues hit by a number of lost contracts – including a controversial prisoner-tagging service for the UK Government – Soames and Cockburn have a major challenge ahead. Their track record as a team at Aggreko, a power generation business supporting everything from international sporting events to disaster relief facilities, is a strong one, however, and the announcement of Cockburn’s appointment provided an immediate boost to the share price.

Cockburn joined Aggreko in May 2000. He previously worked in senior management roles at Pringle of Scotland, and PepsiCo Inc. the last 20 years with Amcor, the world’s largest packaging company. After qualifying David worked for BP and was previously FD of ASCO before joining Amcor.

ALASTAIR MARSH Lloyd’s Register & Shipping Alastair Marsh CA is CFO at Lloyd’s Register & Shipping, and he is also a trustee director on its board of trustees. Lloyd’s Register is an independent risk management organisation providing risk assessment and mitigation services and management systems certification in the maritime sector and other industries where independent verification is required.

KENNETH McCALLUM Match.com Kenneth McCallum CA is UK FD for Match.com, one of the largest online dating sites and an early pioneer in the sector. Last year Match.com, part of the US group InterActiveCorp, reported earnings of $788m.

McCallum trained as a CA with Martin Aitken & Co in Glasgow and then worked in corporate finance before moving into the marketing sector, with finance roles in Glasgow agency Curious Oranj and then WPP and Ocean Outdoor.

“Kenneth McCallum is UK FD for Match.com, one of the largest online dating sites and an early pioneer in the sector. [He previously held] finance roles in Glasgow agency Curious Oranj, WPP and Ocean Outdoor”

35 IN ASSOCIATION WITH

JIM McCONVILLE Phoenix Group Jim McConville CA was appointed as group finance director of the Phoenix Group in June 2012. He was CFO of Northern Rock plc during the turnaround of the company and, prior to that, between 1988 and 2010, he worked for the Lloyds Banking Group. The Phoenix Group, a FTSE 250 listed company, is a closed life assurance fund consolidator that specialises in the management and acquisition of closed life and pension funds.

“As CFO of Glasgow 2014, Ian Reid must be breathing a huge sigh of relief, with wide praise for the organisation, spectacle and spirit of the event. [He will now] help manage the wind-down of the organisation”

MICHAEL McKEON Severn Trent Michael McKeon CA joined the board of water utility Severn Trent in December 2005 as group finance director. Prior to that, he was group finance director of the building materials group Novar. Severn Trent Water provides water and sewerage services to more than 3.7m households and businesses across the Midlands and mid-Wales.

GAIL MOHAMED HSBC Luxembourg Gail Mohamed is CFO for the Luxembourg operations of global banking group HSBC, including corporate and private banking, and equity finance. Gail Mohamed qualified as a CA with Ernst & Young before moving into a career in banking, first with Bank of Scotland and then Midland Bank, which was acquired by HSBC. After a spell working with Highlands and Islands Enterprise she returned to HSBC, working in London and then Malta before her move to Luxembourg in 2011.

ROSS PATERSON Stagecoach Ross Paterson CA was appointed as finance director at Stagecoach, the listed transport operator, in 2013. He joined Stagecoach in 1999 and has since held various senior finance and company secretarial roles. He became director of finance and company GEORGE FAIRWEATHER Alliance Boots It’s interesting times for Alliance Boots following one of the summer’s biggest acquisition deals, which saw the UK-based retailer snapped up by US pharmacy giant Walgreens. The new, combined company will be called “Walgreen Boots Alliance”, and its headquarters will be in the Chicago area, although Boots will remain at its UK headquarters in Nottingham. Alliance Boots receives £3.13bn in cash and 144.3m shares of common stock of Walgreens under the deal, which is expected to be finalised in early 2015.

One of those at the centre of this dramatic turn of events has been George Fairweather CA, who was appointed group finance director of Alliance Boots in July 2006, having joined Alliance UniChem in the same position in 2002. Previously, he was group finance director of Elementis and Dawson International. Earlier in his career, he worked for Dixons Group, Procter & Gamble and KPMG Thomson McLintock.

secretary in 2007. The Stagecoach management team includes two other CAs in senior roles: chief executive Martin Griffiths and chairman Brian Souter.

STUART PATERSON Forth Ports Stuart Paterson CA joined Forth Ports, the Edinburgh-based port operator and property developer as group finance director in October 2010, following a 10-year stint as chief financial officer at Johnston Press. Forth Ports owns and operates eight commercial ports on the Firth of Forth, the Firth of Tay and the Thames: Tilbury (London), Grangemouth, Dundee, Leith (Edinburgh), Rosyth, Methil, Burntisland and Kirkcaldy.

BILL RATTRAY Aberdeen Asset Management Bill Rattray CA joined financial services group Aberdeen Asset Management in 1985 as company secretary, then became group financial controller. He was appointed finance director on 31 January 1991. Before joining the group, he trained as a CA with Ernst & Whinney (now Ernst & Young) in Aberdeen and qualified in 1982. Rattray is a director of a number of group subsidiaries.

IAIN REID National Trust for Scotland Iain Reid CA joined the National Trust for Scotland in October 2010. Previously he worked in the software and property sectors and he was also finance director of IT services company Newell & Budge.

IAN REID Glasgow 2014 As CFO of Glasgow 2014, the organisation set up to prepare and manage the 2014 Commonwealth Games in Glasgow this summer, Ian Reid CA must be breathing a huge sigh of relief, with wide praise for the organisation, spectacle and spirit of the event. Ian Reid CA is responsible for a range of corporate functions as well as finance, and his task now will be to help manage the wind-down of the organisation over the next few months. He was previously chief financial planner for Glasgow Housing Association, and before that worked at Ernst & Young, PwC and the European Commission.

SEPTEMBER 2014 CA MAGAZINE

time

for change

Talent is important but itâ&#x20AC;&#x2122;s hard to find Traditional recruitment is changing and finding the right people is getting harder. Reduce sourcing time, boost quality of hire, and showcase your employer brand with our recruitment solutions. We work closely with you to help attract the right candidate for your business.

Call us on 0131 347 0223 or email ihardie@icas.org.uk to learn how we can help you recruit qualified CAs CA MAGAZINE SEPTEMBER 2014

37 IN ASSOCIATION WITH

ERIC RILEY Celtic Football Club Eric J Riley CA is financial director at Celtic FC, having joined the company in August 1994. He has executive responsibility for operational areas of corporate strategy and finance. In June 2013 he was appointed a director of the newly constituted Scottish Professional Football League Ltd. During 2013/14 he was also a member of the Finance Committee of the European Club Association.

PETER ROSE Hunting Peter Rose CA was appointed finance director of energy services group Hunting in 2008, in addition to his existing role as company secretary. He had held senior positions in industry before joining Hunting in 1997.

Hunting is based in the UK and Canada, and provides a range of specialist services, from well construction and exploration to shipbroking.

KATHRYN ROSS YMCA Canada Kathryn Ross brings more than 17 years of experience in providing financial leadership for the non-profit sector to her role as Chief Financial Officer of YMCA Canada. Her international career includes roles on the audit teams of some of the world’s largest professional services firms, in Scotland, Italy and Toronto, and before joining YMCA Canada in 2012, she provided financial leadership for Imagine Canada, Toronto Community Foundation and The Baycrest Centre Foundation. She is a member of both ICAS and the Institute of Chartered Accountants of Ontario.

MARTIN MURRAY Cathay Pacific Martin Murray CA trained in Scotland with Ernst & Young, but has since made his career in the Far East. He has been finance director at Hong Kong-based Cathay Pacific Airways since November 2011.

Prior to taking up his position at Cathay Pacific, Murray was deputy finance director of Swire Pacific. He is also a director of Hong Kong Dragon Airlines Ltd and Hong Kong Airport Services Ltd. Cathay Pacific has had a good year so far, with a massive increase in first half earnings as a new strategy involving more flights to US destinations paid off. For the six months to June, net profit rose to HK$347m (£27m), compared with HK$24m for the same period last year.

STEWART ROUGH Dawn Group Stewart Rough CA joined construction business Dawn Group as group finance director during 2003. He is responsible for the financial management and direction of the group and its subsidiary companies. Prior to joining Dawn, Rough was group financial controller at John Menzies, the newspaper distribution and airport logistics group. Dawn Group is one of the country’s largest independent property and construction groups.

IAIN SCOTT Scottish Enterprise Iain Scott CA has been chief financial officer of Scottish Enterprise, Scotland’s largest economic development body, since May 2010. He has been with the organisation since 1991, holding a number of finance and corporate planning roles.

ALAN SEMPLE John Wood Group Alan Semple CA is group finance director at Wood Group, the Aberdeen-based energy services company. He was finance director for the company’s well support business from 1997 to 2000 and, prior to joining Wood Group, was finance director of GRT Bus Group. The Wood Group is a FTSE 250 business with an annual turnover of more than $7bn and profit before tax of $412.8m (year to 31 December 2013).

JONATHAN SILVER The Laird Group Jonathan Silver CA joined Laird in 1986 and was appointed to the board as finance director in 1994, having previously served as group treasurer and corporate development manager. He has helped steer Laird from being a diversified industrial conglomerate to a company focused on electronics and technology, in particular components and materials for radio and wireless devices.

NEIL SIMPSON Brewdog Neil Simpson CA is FD at independent brewery group Brewdog. One of the fastest growing businesses in the sector, Brewdog recorded revenue up 70 per cent to £18m for 2013. The company is also a pioneer in crowdfunding, using social media to encourage its customers to become shareholders. Simpson trained with Ritson Smith in Aberdeen and had various roles within the firm before moving to become FD at Brewdog.

JOHN STEWART Hostess Brand An accountancy graduate from the University of Glasgow, John Stewart CA is now chief financial officer of the giant US baker and confectioner Hostess Brand. Prior to this, he was executive vice-president and chief financial officer for drinks company Dr Pepper Snapple, where he led the separation of the business from its UK parent, Cadbury.

SEPTEMBER 2014 CA MAGAZINE

38 FINANCIAL DIRECTORS WHO’S WHO IN ASSOCIATION WITH

MICHAEL STEWART Alexander Dennis Michael Stewart CFO has been group finance director at bus and coach manufacturer Alexander Dennis since 2008. The group, the UK leader in this sector, has an annual turnover of around £500m and employs some 2,000 people, spanning operations across UK, North America and Asia Pacific.

GERRY SWEENEY First Milk Group Gerry Sweeney CA is group finance director with First Milk, a post to which he was appointed in January 2013. Prior to joining First Milk, he was finance director at Robert Wiseman Dairies. First Milk is the UK’s only major dairy company 100 per cent owned by farmers, and it supplies a wide range of products, including cheese, raw milk, butter and skimmed milk powder.

ALAN THOMSON Ballyvesey Holdings Alan Thomson CA is group finance director of Ballyvesey Holdings, a family-run company headquartered in Northern Ireland with a turnover of around £500m and diverse interests, including logistics, recycling and property development. He joined the business in 2001 and was named FD in 2011.

ALAN TROTTER Alliance Trust Alan Trotter CA joined the board of investment management business Alliance Trust in 2010, following an extensive career in financial services, with, among others, Standard Life, the Royal Bank of Scotland and Legal and General. He is a member of the University of Edinburgh Audit Committee.

MARK WALKER ASCO Mark Walker CA was appointed as CFO of Aberdeen-based oil and gas services company ASCO in February 2013. He is responsible for all financial activity and information technology at the company. Walker was previously financial controller at KCA Deutag Drilling Group and trained as a CA with KPMG in Aberdeen.

GEORGE WATT STV George Watt CA joined independent broadcasting and media group STV in 1998 as group financial controller and treasurer, before being appointed to the board in February 2001 as group finance director. Previously he worked with KPMG’s audit and assurance services in both the UK and the US. He is an executive committee member of the Scottish Council for Development and Industry.

CA MAGAZINE SEPTEMBER 2014

“Gerry Sweeney is group finance director with First Milk … the UK’s only major dairy company 100 per cent owned by farmers, and it supplies a wide range of products, including cheese, raw milk, butter and skimmed milk powder” ELAINE WHELAN Lancashire Holdings Elaine Whelan CA joined the speciality insurance products provider Lancashire in March 2006 and leads the group finance function, reporting to the group president. She was previously chief accounting officer of Zurich Insurance Company, Bermuda Branch and, before that, an audit manager with PricewaterhouseCoopers, Bermuda.

JAMIE WILSON SABMiller Jamie Wilson CA joined SABMiller in 2005 and was appointed as CFO in 2011. He has held a number of senior positions in the group, including managing director for SABMiller’s central European businesses, and finance director for SABMiller Europe. SABMiller is the second largest brewing group worldwide, with a group revenue of $22.3bn (£13.4bn).

PETER WOOD AllSaints Peter Wood CA has been CFO of British fashion brand AllSaints for four years and for one of those years he was interim CEO. With annual revenues of more than £200m from more than 100 stores in nine countries AllSaints is currently focused on international expansion underpinned by a strong digital presence. Over the past 15 years Wood has been CFO at various fast growth, privately owned businesses.

ANNE THORBURN Exova Anne Thorburn CA is CFO and an executive board member of Exova, the international test lab group. She joined in August 2009 and was previously group finance director at British Polythene Industries. Based in Edinburgh, Exova had a turnover of £279m in 2013 and a global operation of 117 specialist testing laboratories in 22 countries, serving clients in a range of sectors from aerospace to pharmaceuticals.

In July, Exova bought up Indian testing business Metallurgical Services, the group’s sixth acquisition within a year and one which further extends its global reach.

PRG is proud to continue sponsoring the Financial Directors Who’s Who

PRG, the CA recruiter that knows what’s what To recruit for your team, contact us today on

Glasgow 0141 331 9380 Edinburgh 0131 550 1460 www.prgrecruitment.com PRG Recruitment LLP, trading as PRG, acts as an Employment Business and an Employment Agency

40 EVENTS

FROM CHOOSING THE RIGHT VENUE TO PICKING THE BEST SPEAKERS, THE EXPERTS GIVE ANTHONY HARRINGTON THEIR TOP TIPS ON HOW TO MAKE AN EVENT STAND OUT

CONFERENCE COMMANDMENTS EVERY CONFERENCE and annual association gathering has its unique aspects. However, Kate Heriot, head of events at The Big Partnership, suggests a list of 10 “Event Commandments” to keep in mind to extract the maximum potential from an event.

They boil down to the following: Avoid clashing with other events that are important 1 to your intended audience.

Make it easy for people to sign up to and get to 2 your event.

Be alive to the possibilities of creating brand 3 awareness across all aspects of the event.

Follow up with delegates 4 post the event.

Build a good “hook” into the event to give it a 5 “must attend” quality.

Remember the strong appeal that Scotland and 6 the rest of the UK have as locations for international conferences and gatherings.

Planning is everything – prepare in 7 good time.

Think things through from the delegate’s 8 perspective – find ways of making them feel special.

Remember that expensive speakers are not necessarily 9 good speakers. Do your research before selecting the people you wish to approach.

Long experience suggests that Thursdays are best 10 for one-day events. It is close enough to the weekend without eating into it.

Fiona Mackay, director, member engagement at ICAS, organises some 300 member events a year and has recently taken over responsibility for ICAS conferences. One of the more testing features of conference organisation at ICAS is that the membership is global and events need to be set up worldwide.

Mackay explains that the tried and tested ICAS solution to this challenging requirement is to build long-lasting relationships with people who are prepared to chair these events.

“Having a good chair is key to having a successful event.

With their knowledge and experience of the topic, the chair can advise on appropriate speakers for the conference, for example, which can attract more delegates ,” she comments.

Mackay points out that one of the features of conferences now is live streaming. “We are doing more and more live streaming of conferences and events. We have people signing up for this from all over the world. It is a tremendous way of extending the opportunity and value of the conference beyond the audience who can attend on the day,” she says.

Events that can’t be live streamed, for one reason or another, can be filmed and put on your website for later viewing, either in the public domain or reserved for a restricted “membersCA MAGAZINE SEPTEMBER 2014

only” audience, if that is what is required.

“We are finding live streaming and web hosting hugely beneficial. We have some great speakers and it is not often possible to ask them to speak on multiple occasions at multiple venues. So if you make the session available on the Internet you can get tremendous mileage from a great speech,” she adds.

Organisers have various views on whether speakers should be asked to hand in their presentations in advance. Mackay says that her team always have the presentations available on a USB memory stick for delegates to take back with them.

“Speakers may ask for the speech not to be sent out in advance, but being able to give the delegates something they can refer to when they are back in the office is very important,” she comments. “If you are paying for an event, you should get something to take away. That is imperative, in my view.”

Mackay is a great believer in getting feedback from delegates.

“We send the feedback form to them electronically after the event, and we try to ask no more than four or five questions,” she notes. Hard experience shows that keeping the questions short results in a much greater level of participation.

When you solicit feedback, you need to ensure that you do something with it. Mackay says that she makes a particular point of contacting delegates if they register a complaint or a criticism in their feedback.

One important decision for the conference organiser is how much time to allocate for the event. Will your delegates, who will often be busy people, have the time to attend a two-day conference, or would a day or half-day event fit the bill? Would it be useful to combine a day conference with a networking dinner the night before?

Location and timing are also critical factors. For example, 2014 is shaping up to be a fantastic year for those in charge of marketing Scotland’s many conference venues. As Lindsay Brown, marketing manager for emerging markets and special projects at VisitScotland, comments: “Business tourism in Scotland has been showcased throughout the world on

“Live streaming of events is a tremendous way of extending the opportunity and value of the conference beyond the audience who can attend on the day” Fiona Mackay

41

HOME FROM HOME London’s Caledonian Club is frequently the venue of choice for ICAS events and smaller conferences.

As the Club’s general manager Ian Campbell notes, a large number of the Club’s members are Scottish chartered accountants. On top of this, Campbell points out that the Club, the decor of which is in the true tradition of a private members club, provides a unique, non-corporate environment that acts like a home from home for delegates.

“We had a very good extension done in 2006 which follows closely the style of the original house, but our new conference room is air conditioned and seats 150 delegates theatre style or 120 in the round,” Campbell says.

The Caledonian Club can add zest to an event by offering whisky or salmon tasting evenings.

Somerset House in London’s Covent Garden is now a contemporary arts venue

Cricket and conferences at Lord’s SEPTEMBER 2014 CA MAGAZINE

Marcus Ginns

Gibson Hall in the heart of the City of London

42 EVENTS The Natural History Museum

the back of the Glasgow Commonwealth Games, the Ryder Cup at Gleneagles and the 900-plus nationwide events of Homecoming Scotland.”

Choosing an outstanding venue – provided it lies within the organiser’s budget – lays the platform for a successful conference. Unique Venues of London offers a directory of outstanding and unusual London venues, ranging from the Churchill War Rooms to Leighton House Museum and the London Transport Museum.

While London has a vast array of hotels to choose from, Scotland too has seen its bedroom stock increase markedly over the last two years, with some very fine hotels coming “on stream”, including the Ibis Edinburgh Centre South Bridge, the Motel One Edinburgh-Royal, a second Motel One, EdinburghPrinces, and the Hotel du Vin in St Andrews.

If preventing delegates from getting bored is the name of the game, James Ward, the organiser of The Boring Conference, would seem to have set himself a Herculean task and has so far succeeded brilliantly. The Boring Conference has now been staged for four years in a row and is attracting a larger audience each year. It is a compendium of presentations, 20 in all, over the course of a day, all on the theme of what sound like insanely boring topics.

“We’ve had people speak on the sounds made by vending machines. One chap was enthusiastic about all kinds of inkjet printers. Another was into shipping forecasts,” Ward says.

TOP TIPS Make sure your guests remember your event for all the right reasons closely 1 Work with your conference chair to make the event a success. signing 2 Make up and signing in as easy as possible. good 3 Pick speakers and don’t let them turn it into a sales pitch. hard 4 Think about which venues will be both practical and appealing to delegates. social 5 Use media to build up a buzz about your event. is no 6 There such thing as a boring subject, only poor presentation.

The Royal Opera House

With topics so intensely narrow in focus, how does he avoid delegates rioting from sheer boredom? The secret, he says, is to keep the speeches short. No-one gets more than 10 minutes and speakers are told that although the topics might be boring, the presentations shouldn’t be. “Having relatively short talks means that if anyone is genuinely boring, the audience know there will be another speaker along in a few minutes with a different topic,” Ward says.

Ward has to surmount a second hurdle that most conference organisers do not face. Most conferences have a more or less clearly defined target audience to market to. Ward has to market to the general public at large, as it were. Success here, he says, comes from the power of social media and the fact the conference gets a lot of repeat delegates. “People get really intrigued by the idea of making the boring interesting,” he comments.

Of course, every conference is unique, which is one of the reasons conference organisers generally enjoy their jobs. The Boring Conference has some facets that it is hard to imagine being duplicated elsewhere. Ward sums it up thus: “My philosophy is to under-promise and then get as close as you can to delivering. If the day turns out to be genuinely boring, well, that’s what it said on the tin. But no-one is going to be so churlish as to complain that they had a really enjoyable time!”

ANTHONY HARRINGTON IS A FREELANCE BUSINESS JOURNALIST

INTERNATIONAL RELATIONS BUSINESS IS increasingly global and sometimes it may be necessary to host a meeting or an event on the other side of the world. Even in a different time zone, however, it can be possible to find a home from home, thanks to the international reciprocal relationships between clubs.

A member of London’s Caledonian Club, for example, will find there are reciprocal arrangements with leading clubs around the world, including the Yale Club of New York City, the Chicago Club, the Tanglin Club in Singapore, the Hong Kong Club, India’s Bangalore Club,

CA MAGAZINE SEPTEMBER 2014

the Automobile Club de France in Paris and South Africa’s Cape Town Club, to name but a few.

The facilities generally available range from accommodation and dining to rooms for one on one meetings, small conferences and celebrations.

Of course, in most cases club facilities are available only to members (or reciprocal members) and their guests, but that if anything only adds to the prestige that such establishments – which often occupy some of the best addresses in their home cities – have in the eyes of locals and visitors alike.

Tanglin Club, Singapore

CC ad 122 x 185_Layout 1 21/08/2014 17:05 Page 1

A warm Scottish welcome awaits you

With its quiet, convenient location in central London, The Caledonian Club has been a homefrom-home for its members and their guests for over 120 years. It offers a thriving social network, superb hospitality in elegant surroundings and an invaluable business base.

• • •

A prestigious address in London’s Belgravia En-suite bedrooms, bar, dining room and lounges Private rooms for meetings, dining and receptions

• • •

A well equiped business centre and business lounge High speed internet connectivity throughout A warm Scottish welcome and great camaraderie

T H E C A L E D O N I A N C L U B . N o. 9 H A L K I N S T R E E T . B E L G R AV I A . L O N D O N S W 1 X 7 D R T E L E P HON E : 0 2 0 7 3 3 3 8 7 1 2 . E M A I L : A D @ C A L E D ON IA NC LU B. C OM

www.caledonianclub.com

SHAKE THINGS UP THIS CHRISTMAS at one of our AmaZing Venues

Ackergill Tower

Highlands of Scotland

Château Rhianfa

Anglesey, North Wales

Kinnettles Castle North of Dundee

Stanbrook Abbey

Malvern, Worcestershire

Carberry Tower South of Edinburgh

Solent Forts

In the Sea, off Portsmouth

Party Nights, Festive Lunches, Festive Afternoon Teas & Exclusive Use available

To book, call: 0330 333 7 222 or visit us at: AmaZingVenues.co.uk

SEPTEMBER 2014 CA MAGAZINE

44 UPFRONT

CHARITY SORP; CONCERNS OVER HMRC’S DRD PLANS; SHARED PARENTAL LEAVE; GOODWILL HUNTING

WILLIAM PERUGINI / SHUTTERSTOCK.COM

BRIEFING

FINANCIAL REPORTING

FINANCIAL INSTRUMENTS STANDARD FINALISED BANKS AND other financial institutions are set to face major changes in the way they report credit losses on their loan portfolios, following the publication of IFRS 9 Financial Instruments by the International Accounting Standards Board (IASB).

IFRS 9 is part of the IASB’s response to the global financial crisis. Its package of reforms includes what the IASB calls “a logical model for classification and measurement”, a single, forwardlooking “expected loss” impairment model and a substantially reformed approach to hedge accounting. It follows a failure to agree a joint approach on accounting for financial instruments with US standard setter the Financial Accounting Standards Board (FASB).

The new standard will come into effect on 1 January 2018, with early application permitted. l Classification and measurement: IFRS 9 introduces an approach for the classification of financial assets which is driven by cash flow characteristics and the business model in which an asset is held. This single, principlebased approach replaces existing rule-based CA MAGAZINE SEPTEMBER 2014

requirements. The new model also results in a single impairment model being applied to all financial instruments. l Impairment: IFRS 9 brings in an expectedloss impairment model that will require more timely recognition of expected credit losses.

Specifically, the new standard requires entities to account for expected credit losses from when financial instruments are first recognised and to recognise full lifetime expected losses on a more timely basis. The changes are expected to lead to an increase in the level of loan allowances carried by many banks, reducing their “Tier 1” capital. The IASB has announced its intention to create a transition resource group to support stakeholders in the transition to the new impairment requirements. l Hedge accounting: The model for this includes enhanced disclosures and is meant to enable entities to better reflect risk management activities in their financial statements. l Own credit: IFRS 9 also removes the volatility in profit or loss that was caused by changes in

the credit risk of liabilities that had been elected to be measured at fair value. Gains caused by the deterioration of an entity’s own credit risk on such liabilities are no longer recognised in profit or loss. Early application of this, prior to any other changes in accounting for financial instruments, is permitted by IFRS 9.

Colin Martin, head of KPMG’s UK assurance services, commented: “Adapting the new rules is going to mean a lot of time, effort and money for banks. A major issue for banks and investors in banks will be how adoption of the new standard will affect regulatory capital ratios. Banks will need to factor this into their capital planning.”

Tony Clifford, global IFRS financial instruments leader for EY, said: “Financial services organisations and banks, in particular, will need to manage carefully how they communicate the implementation of the new model to their shareholders and other key stakeholders.”

A Project Summary of the new standard is available to download on the IFRS website at bit.ly/IFRS9_fin_instruments

45 INFLATION

RPI AND CPI FOR JULY 2014

FRC LAB

THE RETAIL Price Index (RPI) for July 2014 is 256 (Jan 1987=100) and the Consumer Price Index (CPI) for July 2014 is 127.8 (Jan 2005=100).

256 127.8 RPI JUL 2014

CPI JUL 2014

REPORTING

INTEGRATED REPORTING (IR) ENTERS THE ASSURANCE DEBATE THE INTERNATIONAL Integrated Reporting Council (IIRC) has released its latest paper, Assurance on <IR>: an introduction to the discussion, in order to help stakeholders understand the role of assurance and initiate a global discussion on its benefits and challenges.

The paper has been released alongside a more detailed document, Assurance on <IR>: an exploration of issues. Together, the papers discuss topics such as: the nature of assurance and how different mechanisms contribute to credibility and trust; methodology issues dealing with, for example, future-oriented information, “soft narrative” and completeness of a report; and materiality, the reporting boundary and connectivity for assurance purposes.

An Assurance Technical Collaboration Group, led by the Independent Regulatory Board for Auditors (South Africa), and made up of experts from across the world, including David Wood, ICAS executive director, technical policy and practice support; and Anne Adrain, ICAS assistant director, sustainability and assurance, prepared the detailed paper and helped ensure it reflects the debate in assurance. The issues raised resonate with the work that ICAS is currently conducting into the future of assurance as highlighted in the Balanced and Reasonable discussion paper (April 2013) and Assurance on Management Commentary – Where Next?

These papers can be viewed online at icas. org.uk/Technical-Knowledge/Audit-andAssurance/Thought-leadership/ Responses to the IIRC discussion paper are requested by 1 December 2014 and the IIRC assurance papers can be downloaded at: www.theiirc.org/ resources-2/assurance/

CLEARING THE CLUTTER IN ANNUAL REPORTS THE FINANCIAL Reporting Council’s (FRC) Financial Reporting Lab (“the Lab”) has issued an insight report, Towards Clear & Concise Reporting. The report reviews the progress made by companies towards producing relevant and succinct annual reports and accounts, and provides ideas on how companies can make further progress.

Based on a review of the most recent round of annual reports published by FTSE 350 companies, the Lab encourages companies to think about:

l the communication channels used and how to match information to users’ needs; l how to focus content on what is most important to investors; l removing immaterial disclosures; l using cross-referencing and layout to improve clarity; and l planning ahead.

The report also gives practical insight into the process of change and how BP and Prudential have managed this.

TAXATION

LAW SOCIETY QUERIES SCOPE OF LAND AND BUILDINGS TAX BUSINESSES WHICH under a “licence to occupy”, rather than a traditional lease, may find themselves confused as to whether they are liable for the Land and Buildings Transaction Tax (LBTT), due to be introduced in Scotland next year to replace Stamp Duty Land Tax (SDLT).

The warning comes from the Law Society of Scotland in its response to a Scottish Government consultation, which proposes to make certain businesses operating under a licence liable for LBTT. Such licences are currently not liable for SDLT. Isobel d’Inverno, convener of the Society’s tax law committee, said: “The draft regulations propose to make ‘retail shops’ operating under a licence to occupy liable… but is not clear to us from the wording of the

regulations what is meant by the term ‘retail shop’. Businesses operating under licences or concession agreements are currently not subject to SDLT, so the regulations implementing the new tax need to be clear and precise. For example, would it include cafes on trains, launderettes, or perfume counters in large stores?”

The Society also questioned whether businesses operating on a temporary basis – for example, catering tents at events such as festivals – would fall within the remit of the regulations.

D’Inverno said: “As it stands, without further clarity on these regulations, professional advisers may be unable to advise their clients whether LBTT applies.”

SEPTEMBER 2014 CA MAGAZINE

46 BRIEFING STANDARDS

READING BETWEEN THE LINES OF THE NEW SORP KATE SAYER EXPLAINS THE THINKING BEHIND, AND IMPLICATIONS OF, THE UPDATED CHARITY SORP THE CHARITY SORP (Statement of Recommended Practice)

Kate Sayer

is a partner with audit firm Sayer Vincent and was a member on the charity SORP Committee

is an interpretation of the financial reporting standards and generally accepted accounting practice in the UK. Because these have changed, the SORP has to be updated.

Financial Reporting Standard 102 (FRS 102) has brought together a whole series of piecemeal standards and guidelines into a single standard and includes specific sections on public benefit entities.

WHY ARE THERE NOW TWO SORPS?

As many charities are small, it seemed appropriate to issue a second version of the SORP that would apply specifically to small charities, in line with the Financial Reporting Standard for Smaller Entities (FRSSE).

l All charities must disclose the total amount of all employee l

l l

l l

WHICH CHARITIES CAN FOLLOW THE FRSSE SORP?

The small company thresholds require that the entity concerned must meet two out of three of the following criteria for the current and preceding year: l Gross income at or below £6.5m. l Balance sheet total at or below £3.26m. l 50 or fewer employees (as an average over the period).

WHAT ARE THE PROS AND CONS OF THE FRSSE SORP? With this option, accounts will change very little as the FRSSE describes current accounting practice. However, it does not cover charity items such as voluntary income and heritage assets, so you have to look to FRS 102 for the appropriate accounting treatment in those cases. In addition, the future of the FRSSE is uncertain and it is currently being updated. It is likely that a new version will adopt some of the principles of FRS 102, but it is also possible that it will be scrapped in the medium term.

HOW DO I KNOW WHICH SORP TO CHOOSE?

You have to choose the FRS 102 SORP if your income is greater than £6.5m or you think you will exceed the small company thresholds in the near future. There is a useful helpsheet (SORP Helpsheet 3, available at www.charitysorp.org) that sets out the differences between the two versions of the SORP.

WHAT’S DIFFERENT IN THE FRS 102 SORP?

The main change in FRS 102 is a move to “fair value” as the basis for including transactions and balances. We have not moved away from historic cost completely, but it will be necessary to consider fair value more frequently. Other matters in the FRS 102 SORP: l All entities have to prepare a statement of cash flows. l Income including legacies should be recognised when their receipt is “probable” rather than certain.

CA MAGAZINE SEPTEMBER 2014

l

benefits received by “key management personnel” for their services to the charity – this applies to the senior managers.

All charities must disclose the fact that there were no employees who received pay over £60,000 or disclose the number of employees remunerated above £60,000 in bands of £10,000.

Charities are encouraged to disclose their remuneration policy in the trustees’ annual report.

Governance costs are no longer shown as a separate row in the Statement of Financial Activities (SoFA), but must be disclosed in the notes.

Comparatives are required for each column of the SoFA, but may be provided in the notes to the accounts.

Gains and losses on investment assets are part of the income or expenditure of the charity and therefore go “above the line”.

Material items should be disclosed separately in the accounts, as should extraordinary items. All charities have to make a statement about going concern, either explaining any material uncertainties or risks to cast doubt on it or the factors that support it.

“The future of the FRSSE is uncertain and it is being updated. It is likely that a new version will adopt some of the principles of FRS 102” WHEN DO THE CHANGES TAKE EFFECT?

You need to apply a new SORP for your accounting period beginning on or after 1 January 2015. So the first year ends affected are 31 December 2015, but you need to consider whether you will be making changes such as revaluations, which would have to be reflected in the comparative balances. In that case you need to think about getting a revaluation as at the transition date, which will be from 31 December 2013, as this will form the opening position for the comparative in the first accounts prepared under FRS 102. You may also need to consider whether you will have to change your accounting treatment of transactions in 2014.

There is a dedicated microsite for the Charity SORP at www.charitysorp.org and more information can be found on the “SORP 2015” page on the Sayer Vincent website at www.sayervincent.co.uk

47

Donâ&#x20AC;&#x2122;t find yourself up the creek.

Law At Work are your expert partners in employment law, HR and health & safety. We know that time consuming and expensive legal issues can take your business into dangerous waters. By delivering the high quality service you expect from a leading law firm, at an affordable, all-inclusive price, we will guide you safely through the rapids.

Minding your business. lawatwork.co.uk

0141 271 5555

G12346 Law Creek Campaign LANDSCAPE 7prf.indd 1

14/08/2013 10:51

Yes or No Law in Scotland The peopleâ&#x20AC;&#x2122;s verdict, so what now?

October 3 & 4 2014 Sheraton Grand, Edinburgh

For more information and prices visit www.lawscot.org.uk/events/LawInScotland Friday 3 October - 8 hours CPD Saturday 4 October - 2 hours CPD

SEPTEMBER 2014 CA MAGAZINE

48 BRIEFING TAX

HMRC’S PROPOSED DIRECT RECOVERY OF DEBT (DRD) MEASURES WOULD ENABLE THE TAXMAN TO TAKE WHAT’S OWED DIRECTLY OUT OF INDIVIDUALS’ BANK ACCOUNTS. ICAS HAS A FEW CONCERNS ABOUT THIS, HOWEVER, SAYS CHARLOTTE BARBOUR

THE DANGERS OF ‘ONE SIZE FITS ALL’ THE MEASURES in the DRD consultation are aimed at the selfemployed and tax credit claimants in order to provide HM Revenue & Customs with the means to drive contact with those who “can pay, but won’t pay”.

Based on the experience of ICAS members, the categories of people who do not reply to correspondence and who might have outstanding debt include: l those who can pay but will not – “the obstinate”; l those who need help to understand or manage their tax affairs, including the elderly – “the vulnerable”; and l those who are chronically disorganised, or hapless – “the chaotic”.

However, based on this consultation, HMRC appears to be working on the assumption that all those with debt are in the “can pay, but won’t pay” category. ICAS has said that different debt collection procedures are required for each of the groups.

The proposal does not sit comfortably with the needs of the vulnerable and it would be a mismanagement of HMRC powers to apply “one size fits all” without analysing and providing for different categories of non-payers.

WILL THE PROPOSALS BE EFFECTIVE?

An elderly, vulnerable person who requires assistance with their tax affairs may find significant obstacles in obtaining this. If a relative attempts to phone HMRC, they need authorisation, the enquiry centres have been shut, and all services are moving online.

Chasing “the chaotic” by cash collection on its own will not solve their compliance issues. These are the ones most likely to receive estimated assessments, which may or may not be a reasonable assessment of their liability.

With their determined approach to delay payment of tax, it is naive to think “the obstinate” will not already have moved their funds before DRD can be implemented and other means should be considered, such as higher penalties.

“HMRC appears to be working on the assumption that all those with debt are in the ‘can pay, but won’t pay’ category” CA MAGAZINE SEPTEMBER 2014

PROBLEM AREAS

ICAS has noted that there is risk of errors, both by HMRC and by the banks, and ICAS members doubt that the DRD proposals will be operated without error.

Concerns have also been expressed about the potential unintended consequences. For example, insolvency practitioners have questioned whether DRD is appropriate or gives HMRC preference over other creditors, contrary to existing government policy. More invidious is the potential effect on the taxpayer’s banking relationships once the bank is aware of HMRC’s concerns. DRD may lead to a bank deciding to reduce its lending facilities or to seek further security; or the reduction in funds may lead to a default event or may result in a breach of covenants and affect credit ratings. All of these have to be factors to be considered by HMRC when requesting bank information and, of course, if HMRC causes such losses, for which compensation might be liable.

SAFEGUARDS

Further consultation is required on detailed proposals for DRD safeguards, to ensure they will actually provide adequate taxpayer protection. These include: l A fail-safe mechanism to ensure that the calculation of the tax debt is the minimum that is reasonable and justifiable before DRD collection commences. It is noted that, for the self-employed, the example in the document is with an estimated bill. l A recognition that some taxpayers on low incomes can have most cumbersome tax affairs, particularly if there are a variety of small sources of income and tax credits, and low income taxpayers are least likely to be able to pay for advice. l An appreciation that some taxpayers may be in a vulnerable position and require support to tidy up their affairs, rather than removal of their funds. l An understanding that the self-employed may have cash flow problems and simply need time to pay. Nor is it guaranteed that a sum in their bank is surplus if, for example, cash is needed to pay wages, fund their working capital or replace an essential asset when it breaks down.

There is the impression that whilst a taxpayer can request an extension under TTP (“Time to Pay”) it may not always be granted by HMRC, so it is not always the safeguard it might seem.

The ICAS response to the DRD consultation is available at http://icas.org.uk/technical-knowledge/ tax/consultations-and-submissions/

Charlotte Barbour CA

is head of taxation (private clients and small business) with ICAS

49 IN ASSOCIATION WITH

AS BUSINESSES PREPARE FOR NEW SHARED PARENTAL LEAVE LEGISLATION, NEIL MACLEAN ANSWERS SOME BIG QUESTIONS

GET READY FOR SHARED PARENTAL LEAVE FAMILIES IN Scotland, England and Wales will soon have greater flexibility when deciding who will take time off work to look after their new baby. Mothers will be able to choose to share up to 50 weeks of maternity leave and 37 weeks of pay with their partner. The leave must be taken before the baby’s first birthday and parents can be off work separately or together.

The new rules come into force from 1 December 2014, and will generally apply to babies due from 5 April 2015.

This means the rules will affect families who fall pregnant from July 2014.

Perhaps the most unexpected aspect of the shared parental leave regime is that employees can each take at least three separate blocks of leave returning to work in between each block if they wish. This is a big difference from the current maternity and paternity leave rules where time off must be taken in one continuous period. Blocks of shared parental leave can be anything from one to 50 weeks long. The ability to take patterns of leave offers great flexibility to families, but could be difficult for businesses to manage.

The partner who shares the leave can be the child’s father, the mother’s husband or civil partner at the time of the birth, or a partner who lives with her and the child in an “enduring family relationship”. Where there is more than one eligible partner (for example the father and a new partner), the mother can choose who to share her leave with. Leave cannot be shared with anyone else who will help to care for the child, for example, the baby’s grandparent. After ending maternity leave early, mothers can also take shared parental leave.

From December 2014 partners will be allowed unpaid time off to attend two ante-natal appointments. Employees will also be protected against suffering a detriment if they request or take shared parental leave (or if their employer thinks they may do so).

There is a mirrored scheme for adoption and surrogacy.

THE BIG QUESTIONS

How many employees are likely to take the leave?

The Government estimates that the take-up will only be between 2 per cent and 8 per cent. However, it remains to

be seen how the leave will be used as this could depend on a number of factors, including the extent to which employers offer enhanced benefits.

Neil Maclean is a partner with Shepherd and Wedderburn

Do employers need to offer enhanced maternity pay to employees on shared parental leave?

The Government has suggested that employers currently offering women enhanced maternity pay will not need to offer enhanced shared parental pay. However, there is European case law which could support a sex discrimination claim against an employer that doesn’t offer the same enhanced benefits during shared parental leave as it does during maternity leave. This issue is likely to remain unclear until there is a legal challenge.

How will people react to requests?

Perhaps one of the most immediate risks facing businesses is how other employees will react when a man gives notice to take a significant period of time off to look after a baby. If eyebrows are raised or comments are made to him (or behind his back) that wouldn’t be made about a woman taking maternity leave, then there is a real risk of sex discrimination claims.

This is potentially the most significant change to family leave arrangements since the introduction of maternity leave in 1975! Employers need to be prepared: they should review their approach to enhanced maternity pay (if offered), update their policies and practices to accommodate shared parental leave, and educate managers so shared parental leave requests are handled appropriately. www.shepwedd.co.uk

“The ability to take patterns of [shared parental] leave offers great flexibility to families, but could be difficult for businesses to manage” SEPTEMBER 2014 CA MAGAZINE

50 BRIEFING VALUATION

COURT CONSIDERS GOODWILL CASE

KEN McMANUS AND DANIEL HEDLEY EXPLAIN THE IMPLICATIONS OF A RECENT CASE ON GOODWILL IN A PROFESSIONAL PRACTICE HOW DOES one value goodwill in an accountancy practice?

This point was considered in the recent case of Graham Wildin v HMRC TC 03586 when Mr Wildin appealed a CGT bill arising on the disposal of his practice when it was transferred to a company in 2003.

In both 2003 and 1982 (for the deemed base cost of the disposal) there had been no sale as such, so it was necessary to establish the market values, as defined in section 272 TCGA as “the price which those assets might reasonably be expected to fetch on a sale in the open market”.

Mr Wildin took the approach adopted by many accountants; he calculated the goodwill as gross recurring fees multiplied by a factor. In 2003 the multiplier that he used was 1.5, but a different multiplier, of 3.5, was used for the 1982 valuation. HMRC, however, considered that the valuation method should be based on valuing the overall practice and then deducting net assets, as generally happens with most businesses. This case considered which valuation method should be used; how gross recurring fees should be measured; and the multiplier that should be used.

Although First Tier Tribunal decisions do not set legally binding precedent, they may be persuasive, particularly if there is no appeal of the decision.

“HMRC put forward the view that goodwill cannot be sold alone: it always attaches to a business, so in this case the total practice value needed to be established, applying a multiple of fees, from which net assets then need to be deducted to arrive at goodwill” THE VALUATION METHOD

In July 1981 a block of fees had been transferred from a partnership in which Mr Wildin had been a partner, to his new sole practice. The practice had a range of general accounting work and audit, without any niche clients, and it was typical of a small, local accountancy firm.

HMRC put forward the view that goodwill cannot be sold alone: it always attaches to a business, so in this case the total practice value needed to be established, applying a CA MAGAZINE SEPTEMBER 2014

multiple of fees, from which net assets then need to be deducted to arrive at goodwill. The appellant argued, however, that in the case of an accountancy practice, it is essentially a block of fees and therefore cannot be compared to a standard corporate acquisition. It is standard to value the goodwill of an accountancy firm simply by multiplying the gross recurring fees.

GROSS RECURRING FEES

The amount of the gross recurring fees in 1982 was queried in this case because the firm had only recently been established and it was not yet clear what the recurring fees would be. In relation to 2003, however, the tribunal opted to take a three year average of turnover, rather than just the turnover for the previous year.

THE MULTIPLIER

The tribunal considered how the multiplier was calculated and also if it should be the same in both 1982 and in 2003. The multiplier is designed to reflect the accountancy market and the wider economy. It was also suggested that the 1982 multiplier should be discounted, as the practice had only been in existence for nine months and its income streams had not been firmly established. Also, should the multiplier be reduced for a sole practice?

Despite the stance taken in this case by HMRC, its own Shares and Asset Valuation group gave evidence that its records regarding the valuation of accountancy firms showed most valuing goodwill simply by reference to gross recurring fees.

The most common multiplier was between 1 and 1.5 (although arguably many of these are academic because between 1980 and 2010 only 16 per cent had tax at stake).

The tribunal concluded that the goodwill of a general accountancy practice may be valued by reference to a multiple of the fees, i.e. the client book; and that a consistency of approach in applying a multiplier is necessary, as it represents an approximation of market value, which in this case was decided to be 1.625 in 1982, and 1.5 in 2003. The net assets should be considered separately.

In the view of ICAS, this is a sensible decision reflecting the basis upon which most smaller, independent practices are valued. This case should be kept in mind if negotiating with HMRC, although it should be remembered that the multipliers determined by the tribunal reflect not only the general market conditions, but also the specific factors relating to the practice.

KEN McMANUS CA IS HEAD OF PRACTICE SUPPORT WITH ICAS AND DANIEL HEDLEY IS A PRACTICE CONSULTANT WITH ICAS

51 Competitive package, Edinburgh/Dundee

Commercial Finance Manager

Qualified Accountant (up to 2 years PQE)

Alliance Trust PLC is a FTSE 250 self-managed investment company with a third party asset management and a savings business. We have a heritage going back to 1888 and over £11bn assets under management and administration.

We are looking for an ambitious and talented recently qualified accountant who has strong technical and financial modelling skills to help partner with our businesses.

The Role

The Candidate

• Reporting directly to the Group Financial Controller, you will lead the relationship as business partner to one of our business areas.

• You will be a technically excellent qualified accountant with strong financial modelling skills.

• You will support the preparation of the Group’s statutory and regulatory reporting, annual planning and budgetary process and monthly reporting cycles.

• You will possess a high level of gravitas and the ability to influence change and deliver results.

• You will play a key role in developing our business through contribution to key commercial projects and delivery of value to shareholders through pro-active financial management.

• Financial services experience is preferred but strong candidates with experience from other sectors may be considered.

• We also offer a structured professional post-qualified training plan.

Please reply with full details by 30th September 2014 to: Recruitment Team, Alliance Trust, 8 West Marketgait, Dundee DD1 1QN. Email: careers@alliancetrust.co.uk

Estate Accountant The Seafield Family estates, located in Aberdeenshire, Moray and Inverness-shire, require a Chartered Accountant with a minimum of two years’ post qualifying experience and a good knowledge of taxation.

The post is based in our Head Office at Cullen, near Buckie, in North East Scotland.

Full details and history of the estates are on our website: seafield-estate.co.uk.

This is a key appointment providing support to the Chief Executive and senior management involving the supervision of a small accounts and secretarial staff. Experience in using Landmark accounting and rental software would be an advantage but training can be provided if required.

The business operations include farming, forestry, rod fishing, field sports and significant lettings of agricultural land and residential properties. The management structure and focus is commercial, involving individuals, partnerships, trusts and companies, but taking account of the responsibilities associated with integrated land management that protects and enhances the environmental assets.

An attractive remuneration package will be provided inclusive of life cover, pension scheme and car.

Accommodation can be made available.

Applications should be submitted in writing to the Chief Executive, Seafield Estate Office, Cullen, BUCKIE, AB56 4UW or by Email to mail@seafield-estate.co.uk

SEPTEMBER 2014 CA MAGAZINE

52 INSIDE ICAS

NEWS, UPDATES AND EVENTS FROM YOUR INSTITUTE

INSIDE ICAS

SPOTLIGHT ON COURSES Accountants’ Biggest Mistakes – and How to Avoid Them 2 October Glasgow 9.30am-4.30pm £290 + VAT A New UK GAAP for Unlisted Companies 7 October Aberdeen 2pm-5.15pm £150 + VAT Manager to Partner Module 3: Leadership & Management Skills 20 October Edinburgh 9.30am-4.30pm £350 + VAT Spreadsheet Skills for Better Forecasting & Budgeting 21 October Glasgow 9.30am-4.30pm £290 + VAT Finance Directors’ Update 22 October Glasgow 9.30am-1pm £185 + VAT Corporation Tax Refresher 27 October Edinburgh 2pm-5.15pm £150 + VAT See more online at icas.org.uk/ businesscourses.

To book, call 0131 347 0232 (select option 2 for conferences), email ldicas@bpp.com or call BPP on 0330 0 603303; for conferences email LD@icas.org.uk

CA MAGAZINE SEPTEMBER 2014

ICAS FOUNDATION

STUDENT SUPPORT: MENTORS SOUGHT CAs and members of ICAS are fortunate to belong to

a professional community with strong values, writes Linda Jamieson. Proud of their heritage, the quality of their education and their professional responsibilities, CAs recognise their privileged position in a world where there is much disadvantage.

The ICAS Foundation helps make a difference to academically talented young people from disadvantaged communities by helping them take their first steps into a professional career in accountancy, finance or management.

This is achieved through financial support, a mentoring scheme and internships that add important skills and experiences required upon graduation. In June the ICAS Foundation granted 18 bursaries to students from a wide geographical spread in Scotland including a student from the Shetland Islands. The ICAS Foundation is supporting

28 students in seven universities, and more mentors are needed to support the students who were successful in their bursary application this year and are due to start university in September.

The mentors will use their experience in a facilitative manner to support the career exploration and determination of the student and help them take their first steps into a professional career.

The mentoring relationship can be a powerful experience. The time commitment is not onerous and the rewards are significant.

LINDA JAMIESON IS HEAD OF THE ICAS FOUNDATION For more information on mentoring with the ICAS Foundation go to www.icasfoundation.org.uk or contact Linda Jamieson at ljamieson@icasfoundation.org.uk

ICAS 160th ANNIVERSARY

WAX LYRICAL FOR THE ICAS ANNIVERSARY COMEDIANS RUBY WAX (pictured) and Rory Bremner will this autumn be helping ICAS to celebrate its 160 years as the world’s first professional body of chartered accountants.

Outspoken raconteur Ruby Wax will be the after-dinner speaker at the CA Dinner in Edinburgh on Friday 28 November, while Rory Bremner – and no doubt many of the impressionist’s alter egos – will be entertaining at the London CA Dinner on Monday 6 October (see page 26 for an interview with Rory Bremner).

The 160th anniversary will also be marked by a series of events throughout the autumn, including

a gala reception at Edinburgh’s Assembly Rooms on 23 October.

The programme on 23 October will include an ICAS community choir. All members are welcome to take part, with experience welcome but not essential, and rehearsals are taking place at CA House, Edinburgh, on Tuesday evenings.

For further details, contact the Member Engagement team at memberengagement@icas. org.uk or 0131 347 0216.

For more details on the 160th Anniversary Events Programme see event planner, page 54, and Leadership Series feature article, page 16.

53

INTERNATIONAL EVENTS

CA Alan Horn and Scotland captain Greig Laidlaw

CHANNEL ISLANDS Thursday 4 September At the Jersey Community activity afternoon, enjoy a round of golf at Les Ormes, a wide range of activities in Creepy Valley or clay pigeon shooting at Lecq shooting grounds.

Thursday 16 October 160th anniversary Presidential visit to Jersey Time: 6pm for 6.30pm, concluding by 8pm Location: To be confirmed, Jersey HONG KONG Thursday 4 September The ICAS 160th Lectures: A conversation with Professor Niall Lothian, ICAS past president Time: 6.30pm to 8pm Location: Hong Kong Club, 1 Jackson Road

CANADA

SCOTS WIN TORONTO TROPHY

CANADA-BASED CA Alan Horn, chairman of Rogers Communications, had the pleasant duty of presenting Scotland captain Greig Laidlaw with the Douglas J Horn Memorial Cup on 14 June. The cup,

which is contested by the rugby teams of Scotland and Canada, is named after Alan Horn’s late father. On the day, Scotland beat Canada 19-17 in a closely contested game at BMO Field, Toronto.

AUSTRALIA

SEVEN-CITY CHALLENGE TO RAISE FUNDS

time

for change

INN_0614_TFC_DEMAND_185x35_Strip AD.indd 1

INFORMAL AUTUMN DRINKS IN ZURICH Thursday 25 September Time: From 6pm Location: James Joyce Pub, Zürich DINNER IN HOUSTON Thursday 11 December 160th anniversary dinner with the President in Houston (venue tbc) PUB NIGHTS IN TORONTO The Toronto Community pub nights meet on the third Thursday of every month at Scotland Yard, 56 The Esplanade, Toronto from 5.30pm. Look out for the ICAS banner.

ALAN COOPER CA has his sights on the number seven, as he aims to complete the ‘City2’ fun run events in seven major cities in Australia, finishing with Melbourne in November.

The challenge – which will total 100km – is to raise funds for, and awareness of, the struggle against cystic fibrosis, which became a personal issue for Cooper when his son Dylan, who is five, was diagnosed with the condition.

Cooper says: “I only took up running once the legs got too old for football, so it’s certainly a big challenge for me!”

To find out more, and to support his cause, go to www.mycause.com.au/ page/69393/100kmsforcysticfibrosis

CAYMAN ISLANDS Tuesday 9 September Discussion on the Scottish independence referendum and Scotch whisky tasting Time: 6.45pm to 8.30pm Location: Pappagallo Restaurant, West Bay

DRINKS IN GENEVA The Geneva Community meets on the last Thursday of every month at the bar of The Hotel Warwick, Rue de Lausanne 14, 1201 Geneva at 6pm for 6.30pm.

CA Alan Cooper

For full details contact the Member Engagement team on 0131 347 0216 or email memberengagement@icas.org.uk

You’re a CA and you are in demand Access the latest jobs, career advice and support tools to take your CA further – activate your profile at CAjobs.org.uk

23/06/2014 14:15

SEPTEMBER 2014 CA MAGAZINE

54 INSIDE ICAS PROFESSIONAL PLANNER

ICAS EVENTS

LONDON AND HOME COUNTIES Contact: Hollie Munford at londonoffice@icas.org.uk or on 020 7839 4777

Don’t miss out. Save the date!

LOTHIAN AND BORDERS Contact: Lauren Johnston at memberengagement@icas.org.uk or on 0131 347 0216 THURSDAY 11 SEPTEMBER A Guide to the new SORP Speaker: John Selwood ACA, Revolution Solutions Ltd Time: Sandwich lunch from 12 noon for 12.30pm start, concluding by 2.30pm Venue: The Royal Scots Club, Edinburgh FRIDAY 12 SEPTEMBER Guardian Media CEO Andrew Miller on the Digital Revolution Speaker: Andrew Miller CA, chief executive, Guardian Media Group Time: 8am for 8.30am start, concluding by 9.30am Venue: The Royal Scots Club, Edinburgh TUESDAY 16 SEPTEMBER National Trust for Scotland Event Speaker: Kate Mavor, chief executive, National Trust for Scotland Time: 12.30pm for 1pm start, concluding at 2pm Venue: The Royal Scots Club, Edinburgh WEDNESDAY 24 SEPTEMBER A Guide to Independent Examination Speaker: Alasdair Millar CA, senior reviewer, ICAS Time: Sandwich lunch from 12 noon for 12.30pm start, concluding by 2.30pm Venue: ICAS, CA House, Edinburgh THURSDAY 25 SEPTEMBER ICAS Curling: Try Curling Time: Curling from 6.15pm to 8.15pm, followed by meal at 8.30pm Venue: The Peak, Stirling Sports Village, Forthside Way, Stirling FK8 1QZ To book: contact Lauren Johnston (details above) THURSDAY 25 SEPTEMBER Edinburgh Tax Network Topic: Trusts (Scotland) Bill Speaker: Nick Holroyd LLB BCL (Oxon) TEP FSA (Scotland), advocate Time: 12.30pm for 1pm, concluding 2pm Venue: The Mackenzie Building, 172 High Street, Old Assembly Close, Edinburgh FRIDAY 26 SEPTEMBER Stagecoach – The CAs Behind the Wheel Speakers: Sir Brian Souter CA, chairman and Martin Griffiths CA, chief executive, Stagecoach Group plc Time: 8am for 8.30am start, concluding at 9.30am Venue: The Royal Scots Club, Edinburgh WEDNESDAY 1 OCTOBER Improving Charity Governance Managing Charity Risk Speakers: Dr Tom Mitchell CA, partner, CGPM Consulting LLP, and Willie Stewart CA, sole practitioner, William GA Stewart Time: Sandwich lunch from 12 noon for 12.30pm start, concluding by 2.30pm Venue: The Royal Scots Club, Edinburgh THURSDAY 2 OCTOBER Giving Thought to Third Sector Risks Speakers: Derek Ellery, partner, DWF LLP, Iain Talman, partner, DWF LLP, and Stuart Callison, chief executive, St Andrew’s First Aid Time: 5.30pm for 6pm, concl by 7pm Venue: DWF LLP, Edinburgh THURSDAY 23 OCTOBER ICAS 160th Anniversary Reception Time: 5.30pm for 6pm start Venue: Assembly Rooms, Edinburgh

CA MAGAZINE SEPTEMBER 2014

WEDNESDAY 29 OCTOBER Information Security in your Supply Chain Speaker: David Reynolds, International Association of Accountants Innovation & Technology Consultants Time: 8am for 8.30am start, concluding by 10.30am Venue: The Royal Scots Club, Edinburgh TUESDAY 4 NOVEMBER Challenging Times Speakers: Jann Brown CA, president, ICAS, Professor Isobel N Scott CBE BSc CA ACIS and Primrose Scott CA, past presidents, ICAS Time: 5.30pm for 6pm, concl by 7pm Venue: University of Edinburgh Business School, 29 Buccleuch Place, Edinburgh GLASGOW & WEST Contact: Lauren Johnston (as above) THURSDAY 11 SEPTEMBER A World of Opportunities Speaker: Keith Cochrane CA, chief executive, Weir Group Time: 5.30pm for 6pm, concl by 7pm Venue: The Corinthian, 191 Ingram Street, Glasgow MONDAY 22 SEPTEMBER Improving Charity Governance Managing Charity Risk Speakers: Dr Tom Mitchell CA, partner, CGPM Consulting LLP, and Willie Stewart, CA, sole practitioner, William GA Stewart Time: Sandwich lunch from 12 noon for 12.30pm start, concluding by 2.30pm Venue: The Corinthian, Glasgow TUESDAY 30 SEPTEMBER The ICAS 160th Lectures: Restoring Trust – the view from the top Speaker: David Cruickshank CA, chairman, Deloitte LLP Time: 5.30pm for 6pm start, until 7pm Venue: The Corinthian, 191 Ingram Street, Glasgow THURSDAY 9 OCTOBER A Guide to Independent Examination Speaker: Alasdair Millar CA, senior reviewer, ICAS Time: Sandwich lunch from 12 noon for 12.30pm start, concluding by 2.30pm Venue: The Corinthian, Glasgow WEDNESDAY 15 OCTOBER Glasgow & West of Scotland Insolvency Forum Speaker: to be confirmed Topic: to be confirmed Time: 5.15pm for 5.45pm start, concluding by 7.30pm Venue: ICAS Glasgow Office, 2nd Floor, 7 West Nile Street, Glasgow

MONDAY 27 OCTOBER Information Security in your Supply Chain Speaker: David Reynolds, IAAITC Time: 5.30pm for 6pm concluding 8pm Venue: ICAS Glasgow Office, 2nd Floor, 7 West Nile Street, Glasgow GRAMPIAN Contact: Lindsey Stewart, Grampian Area Secretary on ac-g@icas.org.uk or 07941 365627 THURSDAY 9 OCTOBER Economic Business Breakfast Chair: Stuart Oag CA, director, Drum Property Group Speakers: Atholl Duncan, executive director: UK and global member engagement, ICAS; others TBC Time: 8am for 8.30am start, concluding by 9.30am Venue: The Marcliffe Hotel, North Deeside Road, Pitfodels, Aberdeen Cost: £42 TUESDAY 28 OCTOBER Information Security in your Supply Chain Speaker: David Reynolds, IAAITC Time: 12pm for 12.30pm concluding by 2.30pm Venue: The Atholl Hotel, 54 King’s Gate, Aberdeen HIGHLANDS Contact: Anne-Marie Mearns, Highlands area secretary on as-h@icas.org.uk or on 07557550370 WEDNESDAY 1 OCTOBER Bank of England Update Speaker: Will Dowson, agent for Scotland, Bank of England Venue: Drumossie Hotel, Old Perth Road, Inverness Time: 5.30pm for 6pm. Finish 7pm Cost: Members free; non–members £3.50 TAYSIDE Contact: Lauren Johnston at memberengagement@icas.org.uk or on 0131 347 0216 WEDNESDAY 22 OCTOBER ICAS Curling: East v West – Part 1 Time: Meal at 6.30pm, followed by curling from 7.50pm to 9.50pm Cost: £15 inc VAT Venue: The Peak, Stirling Sports Village, Forthside Way, Stirling TUESDAY 28 OCTOBER Information Security in your Supply Chain Speaker: David Reynolds, IAAITC Time: 5.30pm for 6pm concluding 8pm Venue: Dundee Football Club

WEDNESDAY 10 SEPTEMBER An Audience with the Financial Secretary to the Treasury, David Gauke MP Speaker: David Gauke MP, financial secretary to the Treasury Time: 6pm for 6.30pm, concluding by 7.45pm Venue: KPMG Offices, 8 Salisbury Square, London THURSDAY 18 SEPTEMBER The CA with the Biggest Audit Job in Britain Speaker: Sir Amyas Morse CA, comptroller and auditor general, National Audit Office, London Time: 8am for 8.30am, concluding by 9.30am Venue: The Grange St Paul’s, 10 Godliman Street, London FRIDAY 3 OCTOBER Pan Accounting Lunch Speakers: Martin Wheatley, chief executive, FCA, and The Lord Mayor, Alderman Fiona Woolf CBE Time: 12.30pm to 2.30pm Location: Mansion House, Walbrook, London Cost: £85 inc VAT MONDAY 6 OCTOBER London CA Dinner After dinner speaker: Rory Bremner, impressionist and comedian Time: 6.45pm for 7.15pm until 11.00pm Location: The Savoy Hotel, The Strand, London Cost: £120 + VAT; table of 10: £1,200 + VAT (see also page 26) TUESDAY 14 OCTOBER The BP Story – Evening Seminar Speaker: Dr Brian Gilvary Time: 6pm for 6.30pm start, concluding by 7.45pm Venue: The Deloitte Academy, 1 Stonecutter Street, London TUESDAY 21 OCTOBER Lloyds Banking Group - Evening Seminar Speaker: António Horta Osório, group chief executive, Lloyds Banking Group Time: 6pm for 6.30pm start, concluding by 7.45pm Venue: KPMG Offices, 8 Salisbury Square, London BIRMINGHAM, MIDLANDS AND THE SOUTH Contact: Emma Hinckley at ehinckley@ icas.org.uk or on 07900561320 MONDAY 13 OCTOBER ICAS 160th Anniversary Dinner with the President Time: 6.30pm for 7.30pm, concluding by 10pm Venue: Hotel du Vin, Bristol

THE INSOLVENCY AND RESTRUCTURING CONFERENCE THE HIGHLY successful annual ICAS Insolvency Conference this year incorporates Restructuring. The conference offers a unique opportunity for discussion and debate of key issues by bringing together experts in the insolvency and restructuring field. There will be a mixture of case studies, lively discussions and technical sessions. As well as covering relevant legislative and regulatory changes, the conference will address issues affecting the work of the insolvency

profession. The keynote speaker, Teresa Graham (pictured), will be speaking on day two about her recently published report on “pre-pack” administration.

Date: Wednesday 12 and Thursday 13 November 2014 (two days) Venue: Gleneagles Hotel, Perthshire Co-chairs: Colin Dempster CA, partner, EY, and Fraser Gray CA, partner, Zolfo Cooper Price: £690 + VAT

TUESDAY 14 OCTOBER ICAS 160th Anniversary Lunch with the President Time: 12.30pm, concluding by 2pm Venue: Park Plaza Hotel, Nottingham TUESDAY 14 OCTOBER ICAS 160th Anniversary Dinner with the President Time: 6.30pm for 7.30pm, concluding by 10pm Venue: Hyatt Regency Hotel, Birmingham WEDNESDAY 19 NOVEMBER Leadership During Recovery Speaker: Ken Gregor, chief financial officer, Jaguar Land Rover Time: 7.30am for 8am start, concluding by 9am Venue: Shoosmiths, 2 Colmore Square, 38 Colmore Circus, Birmingham TUESDAY 25 NOVEMBER Information Security in your Supply Chain Speaker: David Reynolds, IAAITC Time: 5.30pm for 6pm start, concluding by 8pm Venue: Birmingham city centre WEDNESDAY 26 NOVEMBER Information Security in your Supply Chain Speaker: David Reynolds, IAAITC Time: 7.30am for 8am start, concluding by 10am Venue: Bristol city centre MANCHESTER & NORTH OF ENGLAND Contact: Emma Hinckley at ehinckley@ icas.org.uk or on 07900561320 WEDNESDAY 15 OCTOBER ICAS 160th Anniversary Dinner with the President Time: 5.45pm for 6.15pm start, concluding by 10pm Venue: The Lowry Hotel, Manchester MONDAY 24 NOVEMBER Information Security in your Supply Chain Speaker: David Reynolds, IAAITC Time: 5.30pm for 6pm start, concluding by 8pm Venue: Leeds city centre, to be confirmed TUESDAY 25 NOVEMBER Information Security in your Supply Chain Speaker: David Reynolds, IAAITC Time: 7.30am for 8am start, concluding by 10am Location: Manchester city centre Please note that our events are free for members and students and £25 including VAT for non-members, unless stated otherwise. For full details and to book your place, visit icas.org.uk/events CONFERENCES 2014 To book contact the Learning and Development team on LD@icas.org.uk or 0131 347 0211 THURSDAY 4 SEPTEMBER 2014 The Charities Conference Time: 9am–5pm Venue: The Hilton Grosvenor, Edinburgh Price: £212 + VAT (additional concessions for charity staff and trustees available) TUESDAY 16 & WEDNESDAY 17 SEPTEMBER 2014 The Farming, Estate Management and Renewables Conference Time: 9am–5pm Venue: The Hilton Dunkeld, Dunkeld, Perthshire Price: £590 + VAT THURSDAY 6 NOVEMBER 2014 The Practitioners Conference Time: 9am–5pm Venue: Edinburgh (to be confirmed) Price: £195 + VAT

55 DISCIPLINARY

MRS ANNETTE FERGUSON CA IN TERMS of ICAS Rule 13.21, notice is hereby given that the ICAS Investigation Committee has issued a formal written warning and financial penalty in the sum of £500 to Mrs Annette Ferguson of Duncan Accounting, Surrey, in respect that she has been found guilty of unsatisfactory professional conduct on the following grounds: (i) She unreasonably delayed

providing information to a fellow Chartered Accountant over a period of 18 months, in breach of her obligations under Section 210.17 of the ICAS Code of Ethics; and (ii) By not responding in writing to letters from a Case Officer, she failed to co-operate fully with the investigation of a complaint to ICAS, in breach of Regulation 3.18 of the ICAS Investigation Regulations.

REGULATORY PENALTY APPLIED TO ANOVA

IN TERMS of Regulation 7.14 (b) of the Audit Regulations (2008), notice is hereby given that ICAS’s Audit Registration Committee has applied a regulatory penalty of £750 to the audit-registered firm of Anova (Wick), in respect that the Firm has admitted that Mr Simon Hoy, a principal of the firm, signed the audit report of an audit client when he had not applied to be a Responsible Individual in breach of Regulation 4.04 of the Audit Regulations and Guidance 2008 which states that “Only responsible individuals can be responsible for an audit and sign an audit report”.

CHARLES SMITH CA IN TERMS of ICAS Rule 13.21, notice is hereby given that the ICAS Investigation Committee has issued Charles Smith (Mochan Smith & Co) with a formal written warning and a financial penalty in the sum of £500 in respect that he has been found guilty of unsatisfactory professional conduct on the following grounds: (i) He unreasonably delayed

providing information to a fellow Chartered Accountant over a period of eight months, in breach of his obligations under Section 210.17 of the ICAS Code of Ethics. (ii) By not responding in writing to correspondence from a Case Officer, he failed to co-operate fully with the investigation of a complaint, in breach of Regulation 3.18 of the ICAS Investigation Regulations.

CPD PENALTIES IN TERMS of Regulation 5.1 of the CPD Regulations 2012, notice is hereby given that the Continuing Professional Development Regulatory Committee has applied regulatory penalties to six ICAS Members in accordance with Regulation 4 of the Regulations. The regulatory penalties have been applied in response to the Members failing to: a) Submit on time a self-certification of their CPD compliance in their Annual Return; which failure represents a breach of Regulation 2.4 of the CPD Regulations 2012; and b) Produce their 2012 CPD Record to the CPD Regulatory Committee on request; which failure represents a breach of Regulation 2.2 of the CPD Regulations 2012.

In this instance, the Committee has decided that the application of the regulatory penalties shall be publicised on an anonymous basis.

OBITUARIES

In Memoriam

The death has been announced of GEORGE KERR BAILLIE CA, who lived in Penicuik. Prior to retirement, Mr Baillie was senior partner at A S Fisher & Co. He was exam qualified in Edinburgh in 1965, and admitted to membership in November 1965.

GEORGE BLACKWOOD NEWSTEAD CA, who lived in Crieff, died on 25 May 2014 aged 84. He was exam qualified in Glasgow in 1954, and admitted to membership in March 1954. Prior to retirement, Mr Newstead was director and secretary at Alexander Couper & Co (Iron Founders) Ltd.

WILLIAM IAIN McKAY CA, who lived in Royal Leamington Spa, died on 6 April 2014 aged 65. Prior to retirement, Mr McKay was director at Rolls-Royce plc.

He was exam qualified in Glasgow in 1973, and admitted to membership in June 1974.

The death has been announced of JACK SHORE CA, who lived in Glasgow.

Prior to retirement Mr Shore was senior partner at Martin Currie Investment Management. He was exam qualified in Glasgow in 1961, and admitted to membership in November 1961.

DAVID BRUCE CA 1927–2014 ICAS PRESIDENT 1980 ICAS PAST president David Bruce CA, who died in February 2014, was born on 21 January 1927 in Birkenhead where he spent the first six months of his life before moving to Kelvindale, Glasgow.

When he left school he studied mathematics and sciences at Glasgow University. Initially exempt from National Service as a student, he was eventually called up in 1947. He trained with the Royal Engineers and went on to become a Captain in The Royal Corps of Signals. He was involved in an audit of the Mess accounts and this drew him towards his later career in accountancy. In 1955 he was indentured to Kerr, Macleod and McFarlane, where he qualified as a CA, met Joy, his wife to be, and later became a partner in 1961.

When the firm merged with David Strathie & Co and eventually became Deloitte, Haskins and Sells, David subsequently became partner in charge of the Glasgow office.

David was elected President of ICAS in March 1980, serving between 1980 and 1981. It was a time of great challenges for the profession, as outlined in Professor David Flint’s report The Impact of Change on the Accountancy Profession, which was published that year, and it was also the year in which the Institute’s

membership exceeded 10,000 for the first time.

David Bruce moved to his London office for a few years before returning to Scotland in 1993 to work for the Crown Office in Edinburgh.

Away from business, he was an excellent cook. One of his other off-duty passions was woodworking and amongst many productions made wonderful rocking horses for each of his four daughters’ families.

Many examples of his work survive – special boxes, chess sets, doll’s houses, and so on.

David’s health had been deteriorating over the last three years and he spent the last 10 months of his life in Mugdock Care Home where he passed away peacefully on 21 February 2014.

Summing up David Bruce: he had high expectations of himself and those around him; he never faltered in being true to himself, his beliefs and the standards he set. David was widely regarded as a welcoming and hospitable man, but not one to suffer fools gladly. He was always forthright, opinionated and challenging.

As one of his partners of many years described him: “He was an old warrior who was an incredible example to so many of us.”

Gordon Cowie CA (1977-2007) MBE

SEPTEMBER 2014 CA MAGAZINE

56 INSIDE ICAS Lynn Fordham

ADMISSIONS

NEW MEMBERS THE FOLLOWING WERE ADMITTED TO MEMBERSHIP ON 25 JULY 2014 BROWN, Paul, Deloitte LLP, Glasgow CORAZZO, Michelle, Baker Tilly Tax and Accounting Limited, Bromley DE-ALWIS, Prasanna, Anglo American plc, London DUKE, Alexander Robert BAcc (Hons), Ernst &Young LLP, Reading DYER née Baxter, Lynn Janet, Baker Tilly Tax and Accounting Limited, Grangemouth ENGLAND, Samuel Edward Grant, KPMG Tax Business School, London FEDERMAN, Gemma Rachel BSc (Hons), KPMG Tax Business School, London FRITH, Emma BA, KPMG Tax Business School, London GRAHAM, Katie BA, Ernst &Young LLP, London HUGHES, Michael MSci, Gerber, Landa & Gee Limited, Glasgow

LEE, Jennifer Judith, KPMG Tax Business School, London MEHTA, Roshni, Ernst &Young LLP, London NORRIS, Ruth, KPMG Tax Business School, London PALLETT, Jonathan, Ernst & Young LLP, London PILLING, Holly BA (Hons), Crowe Clark Whitehill LLP, Maidstone POTTER, Emma Cathryn, Ernst &Young LLP, Cambridge RANKIN, Sasha, KPMG Tax Business School, London SELLARS, Julia Claire BSc CTA, KPMG LLP, Reading SMITH, Thomas Louis BA, Crowe Clark Whitehill LLP, London TAN, Ee Leen, Whitelaw Wells, Edinburgh WOOLLEY, Timothy Lomas MEng, Ernst &Young LLP, London

EVENT

PRIVATE EQUITY EXPLAINED AN ICAS event in London on 13 November is set to bring together different perspectives on the world of private equity, to demystify the sector and introduce the dynamics that drive it. The event will also show how a CA’s training and experience can fit into a career in private equity.

Already confirmed are Lynn Fordham CA, chief executive officer with SVG Capital, an international private equity investment business listed on the London Stock Exchange, and Stuart McAlpine, a partner with leading European private equity firm Cinven, whose

most recent fundraising exercise amassed more than €5bn.

Fordham has more than 20 years’ experience in financial roles.

McAlpine joined Cinven in 1996 and is a member of the Business Services and Healthcare sector teams.

The event will take place on the evening of Thursday 13 November at the offices of SVG Capital & Aberdeen SVG, Bow Bells House, 1 Bread Street, London EC4 9HH. For more details on the event please contact Hollie Munford at londonoffice@icas. org.uk or on 020 7839 4777

C

M

Y

REMOVALS

THE FOLLOWING HAVE BEEN REMOVED FROM THE MEMBERSHIP OF ICAS DURING THE PERIOD APRIL 2013 – 31 JULY 2014.

Mr Nana Bebaako Addo, Wellington, New Zealand Mr Ruschil Aggarwal, London Mr Graeme Banks, Achnasheen Mr Douglas Benzie, London Mr David James Berry, London Mr Jason Birt, London Mr Graham James Bowes, Gatwick Mrs Moira Isabel Bowie, Cobham Mr Stephen Alexander Bradford, Richmond Hill, Canada Mr Cornelius Edward Kennedy Brooks, Glasgow Mrs Linda Cameron Cameron, Glasgow Mr Douglas Hutton Cameron, Dunfermline Miss Xi Chen, Beijing, People’s Republic of China Mr Satnam Chand Chumber, Birmingham Mr John Cowham, Manchester Mr Ian Darroch, Nicosia, Cyprus Mr Joseph Denham, New York, USA Mr Sandeep Singh Dhillon, London Mr Eric Steven Dinardo, Denver, USA

CA MAGAZINE SEPTEMBER 2014

Mrs Kathryn Jane Donald, Sydney, Australia Mr Alan Hedley Whyte Donn, Paisley Mr Lee Burness Whyte Downie, Linlithgow Mrs Natasha Helen Cecilia Farah, Redmond USA Miss Gillian Anne Findlay, Sydney, Australia Mr Archibald Dickie Fyfe, Stocksfield Mr Leslie William Gibson, Hinckley Mr Mohammad Haider, Milton Keynes Mr Michael Hall Shepparton, Australia Mr Troy Gareth Harris-Speid, London Mr Alexander Heath, Northampton Mr Peter Hickey, London Mr Stephen Hughes, Shetland Mr Kevin James Hunter, Edinburgh Mrs Humaira Hussain, Harrow Mr Glenn Philip Jackson, Glasgow Mrs Anne Marie Keisler, Dunbar Mr Diarmuid Michael Anthony Kelly, Hong Kong Mrs Jennifer Claire Kirwan, Bristol

Mr James Andrew Sammuel Knott, Coventry Mr Deepak Lalit, London Mr James Larmouth, London Miss Margaux Mary Simpson Lashbrook, Aberdeen Miss Patricia Lemmon, London Mr David James Lock, London Miss Jane Longworth, Manchester Mr Stephen Lyon, London Mr Lewis William Macdonald, Singapore Mr Iain Malcolm Robert Mackenzie, London Mr Murray Alexander Mackinnon, New York, USA Miss Caroline McDaid North Ryde, Australia Miss Nuala McLaughlin, London Mr Christoph Martin Meseg, London Mr David George Mitchell, Geneva, Switzerland Mr Richard Moore, London Mr Christopher Paul Morrison, Basingstoke Miss Lorna Morrison, London Mr Iain Muirhead, Sydney, Australia Mr Shaun Mullins, Harrogate Mr David Christopher Murphy, Birmingham Mr Joe Murphy, London Mr Haris Mushtaq, London Mr Christian Garth Nelson, Edinburgh Mr Patrick David Campbell Nelson, New York, USA Miss Zhenhe Ning, Shanghai, People’s Republic of China

Mr Daniel John Charles O’Donnell, Edinburgh Mr Kwame Ofosu-Osei, London Miss Yao Pang, London Mr Rudi Pattni, Berkhamsted Mr David George Raeburn, Glasgow Miss Shraddha Nanu Rajdev, London Miss Yvonne Louise Reilly, Sydney, Australia Mr Mark Rigby, Birmingham Miss Emelie Safstrom, Göteborg, Sweden Mr Faraidon Saheb-Zadha, London Mr Inderjit Sangha, London Mr Charles John Waldron Saunders, Edinburgh Miss Eloiza Savvidou, Limassol, Cyprus Mr Colin George Emmerson Scotland, Edenbridge Mr Clive Gregory Shepherd, Coquitlam, Canada Mr Fareeduddin Siddiqi, London Mr Alistair Smeaton, Edinburgh Miss Abigail Smith, Manchester Mr Robert Roy Swindon, Darlington Mr Hong Chye Tan, Gorebridge Miss Geoh Hwa Tan, London Miss Pooja Thomas, London Mr Matthew Tompkins, Bridport Mr Kennedy McConnell Tree, Dollar Mr Karl John Truesdale, London Mr Tin Leung Tse Killara, Australia Mr Daniel Mark Wilson, London Miss Xia Xin Wong, Central Hong Kong Mr Benedict Wynne-Simmons, London Miss Congmin Xie, London Mr John Antonio Yau, Salamanca Spain

CM

MY

CY

CMY

K

57

SEPTEMBER 2014 CA MAGAZINE

58 THE LAST WORD WITH

ANDREW RIGBY

ONLINE ANNUAL REPORTING DOESN’T HAVE TO BE PAINFUL – IT CAN ACTUALLY COMPLEMENT AND SUPPLEMENT YOUR PRINTED REPORT ONLINE ANNUAL reporting has often been a source of pain for companies that wanted to offer their stakeholders more than just a printed report, but found themselves struggling with trying to deliver a word for word and figure for figure digital replication.

Share your After years of unfulfilled predictions about the stories in death of print, and how online reporting would the ICAS become the default, a new consensus seems to be forums at emerging: that content and choice are what matter in forums.icas. corporate reporting, rather than the delivery channel. org.uk The new strategic reporting requirements have helped online reporting come of age by focusing minds on the communication of the message about a company’s performance, its market context and its outlook.

Many companies are embracing this chance to tell the story of their year, and where they are headed, often to a wider audience than usual. Our advice is to do the same, and think about your reporting as a whole, rather than thinking print or online first, or separately; and about the opportunities that digital can offer to communicate your key messages.

For example, do you need to concentrate on introducing a new CEO? A video might be the best way of doing this, so you could focus on getting some good, authentic talking heads pieces done. In turn that’s going to lead you to put more of your focus on the online report – or at least create an online report that allows you to showcase those videos. Equally, if your CEO isn’t camera-friendly, but comes across well in print, put your focus on his message piece in the printed report, or PDF. But maybe your key messages don’t guide you to a particular format. This is where choice comes in. The companies doing the best job are the ones giving audiences a choice in how they

“Think about your reporting as a whole, rather than thinking print or online first”

EDITOR Robert Outram robert.outram@thinkpublishing.co.uk EDITOR IN CHIEF Anton Colella MANAGING EDITOR Atholl Duncan PUBLISHED BY ICAS EDINBURGH: CA House, 21 Haymarket Yards, Edinburgh EH12 5BH Tel: 0131 347 0100 Fax: 0131 347 0105 GLASGOW: 2nd Floor, 7 West Nile Street, Glasgow G1 2PX LONDON: 1 King Street, London, EC2V 8AU

CA MAGAZINE SEPTEMBER 2014

SUB-EDITOR Sian Campbell sian.campbell@thinkpublishing.co.uk DESIGN Mark Davies mark.davies@thinkpublishing.co.uk EDITORIAL OFFICE Think Publishing Ltd, Suite 2.3, Red Tree Business Suites 33 Dalmarnock Road Glasgow G40 4LA Tel: 0141 375 0483

access reports and, more importantly, the messages within them.

Be guided by data and research (such as web analytics), but also ask them. You’ll probably find different sectors of your audience want print versus online, but the emphasis will vary.

Once you’ve worked out your messaging, and then added in the needs of your audience, you should be getting an idea of what your reporting should look like across both print and online, and how they can support each other.

There are no hard and fast rules, but there are some trends emerging. Print is where companies are tending to present their full report and satisfy all regulatory requirements. This should be made available online as a PDF – many of the key audiences for annual reports, especially institutional investors and analysts, will consume a report online by downloading the PDF. The digital reporting offer complements the print and PDF. Full online reports, where you faithfully reproduce your printed report, are rarely worth the effort and expense given the audience size, especially those accessing the governance and financials.

Instead companies such as Centrica and Tesco, which used to produce full HTML reports, are now concentrating on providing their strategic report content digitally in an engaging and interactive way, with the rest (financials etc) available as downloads. Why? Because this is what their audiences want, and it’s a better use of their resource; the strategic report lends itself nicely to being presented online.

Other companies are going further still and supporting their print report with a bespoke online version summarising the highlights. In the digital world, freed from the restrictions of trying to reproduce a print document – keeping auditors happy, late changes to deep content and figures – they’re concentrating on the key messages and the best way of communicating them online, through videos, infographics, and imagery, all of which can be formulated much earlier in the process. It might sound daunting, but it’s much less painful than trying to keep a full online report in sync with the print version.

ANDREW RIGBY IS CORPORATE DIGITAL CONSULTANT WITH CORPORATE COMMUNICATION AND REPORTING AGENCY EMPEROR

ADVERTISING MANAGER Michael Coulsey michael.coulsey@thinkpublishing.co.uk 020 8962 1261

PUBLISHER John Innes john.innes@thinkpublishing.co.uk 0141 375 0486

SENIOR ADVERTISING EXECUTIVE Richard Ellacott richard.ellacott@thinkpublishing.co.uk 020 8962 1250

SUBSCRIPTION/ CIRCULATION ENQUIRIES Tel: 0131 347 0314 Fax: 0131 347 0105 professionalservices@icas.org.uk

COMMERCIAL OFFICE Think Publishing Ltd, The Pall Mall Deposit, 124-128 Barlby Road, London W10 6BL Tel: 020 8962 3020 Fax: 020 8962 8689 www.thinkpublishing.co.uk

THE CA ONLINE icas.org.uk/theCA/ SOCIAL MEDIA FEEDS @thecamag @ICASaccounting www.facebook.com/ICASbecomeaCA

DISCLAIMER The copyright in all articles published in The CA magazine is reserved, and such articles may not be reproduced in whole or in part without permission.

Neither the Council of the Institute of Chartered Accountants of Scotland nor the editor of The CA magazine necessarily agree with all of the views expressed in the magazine.

ISSN: 1352-9021

Introducing CCH CRM – Your fast track to practice growth Client retention, client acquisition and cross-selling are the best ways to achieve practice growth. More and more accounting Introducing CRM Your CRM fastsystem track totopractice growth firms have discoveredCCH the difference that– a dedicated can make these vital activities – have you?

Client retention, client acquisition and cross-selling are the best ways to achieve practice growth. More and more accounting CCH CRM powered by into can a single system: opportunity and pipeline firms have discovered theWorkbooks differencebrings that aeverything dedicated you CRMneed system make to these vital activities – havemanagement, you? lead tracking, email marketing and much more. CCH CRM has been designed to fast-track your practice growth by saving time, increasing fees andbyimproving client visibility.

Being you cloud-based, is simple, cost-effective and hassle-free.

CCH CRM powered Workbooks brings everything need intoimplementation a single system: opportunity and pipeline management, leadDiscover tracking, email marketing andpractice much more.

CCH CRM has been designed or tocall fast-track your8181 practice growth by saving time, how to fast-track your growth – visit www.cch.co.uk/crm 0844 561 increasing fees and improving client visibility. Being cloud-based, implementation is simple, cost-effective and hassle-free.

Discover how to fast-track your practice growth – visit www.cch.co.uk/crm or call 0844 561 8181 Software Books Online reference Software Fee Protection Books Consultancy Online reference Advice Lines Fee Protection CPD Consultancy Advice Lines

Find your perfect diamond ring from ÂŁ750

EXCLUSIVELY AT

Jamieson-Carry.com