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SETTING STANDARDS IN FINANCIAL AUDITING & ACCOUNTANCY

JANUARY 2013

EXCLUSIVE! PINNACLE OF SUCCESS

<(,(,+c)HOYHPU)/+c8H[HY89c6THU69c:H\KP(YHIPH:9c2\^HP[2+

My father once said, ‘I have never seen a poor accountant’ – that advice still holds true today, says CFO of du Mark Shuttleworth

INTEGRATED REPORTING FRAMEWORK Challenges emerge a year since the International Integrated Reporting Council launched its pilot programme

Relive all the spectacular moments from the Accountancy & Finance recognition ceremony in Dubai. Our extensive coverage ranges from interviews with individual winners, to corporate success stories, including; PwC runs away with ‘Firm of the Year’ and ‘Deal of The Year’ gongs Phoenix students dominate nominations list for ‘Young Accountant of the Year’ HE Sheikh Nahayan on the origins of modern-­day accounting Colourful photographs of overall winners

CHARTERED ACCOUNTANT OF THE YEAR Chris Taylor, the COO of Abu Dhabi Finance, is Middle East’s undisputed top CA, and rightfully so

PUBLICATION LICENSED BY IMPZ


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EDITOR'S AUDIT

7\ISPZOLY Dominic De Sousa .YV\W*66 Nadeem Hood 4HUHNPUN+PYLJ[VY Richard Judd richard@cpidubai.com +971 4 440 9126

Hats off to industry’s top guns  ƒ†‘—–Ž‘‘‘ˆƒ……‘—–‹‰ƒ†ϐ‹ƒ…‡’”ƒ…–‹–‹‘‡”•Šƒ•„”‘ƒ†‡‡† ‘˜‡”–Š‡”‡…‡–›‡ƒ”•ǡƒ•–Š‡’”‘ˆ‡••‹‘ƒŽ•„‡…‘‡‘”‡ƒ†‘”‡‹˜‘Ž˜‡†‹ –Š‡ˆ”‘–Ž‹‡‘ˆ„—•‹‡••‡•Ǥ

,+0;690(3 ,KP[VY Joyce Njeri joyce@cpidubai.com +971 440 9140

†‡‡†ǡˆ‘”–Š‘•‡™Š‘™‡”‡’”‹˜‹Ž‡†‰‡†–‘Œ‘‹–Š‡…”°‡†‡Žƒ…”°‡‘ˆ–Š‡ ”‡‰‹‘ǯ•Ž‡ƒ†‹‰‹†—•–”›ϐ‹‰—”‡•†—”‹‰–Š‡ •–‹–—–‡‘ˆŠƒ”–‡”‡†……‘—–ƒ–• ‹‰Žƒ†ƒ†ƒŽ‡•ȋ Ȍš…‡ŽŽ‡…‡™ƒ”†•‹‰Š–ǡ‘‡–Š‹‰™ƒ•…Ž‡ƒ”Ǣ–Š‡ ’”‘ˆ‡••‹‘Šƒ•‰”‘™‹•‹‰‹ϐ‹…ƒ…‡ƒ†‹ϐŽ—‡…‡Ǥ

*VU[YPI\[VY Shane Phillips (+=,9;0:05. *VTTLYJPHS+PYLJ[VY Chris Stevenson chris@cpidubai.com +971 4 440 9138 796+<*;065  *09*<3(;065 7YVK\J[PVU4HUHNLY James P Tharian james@cpidubai.com +971 4 440 9146 +H[HIHZLHUK *PYJ\SH[PVU4HUHNLY Rajeesh Melath rajeesh@cpidubai.com +971 4 440 9147 +,:0.5 /LHKVM+LZPNU Fahed Sabbagh fahed@cpidubai.com +971 4 440 9148 .YHWOPJ+LZPNULY Glenn Roxas glenn@cpidubai.com 7OV[VNYHWOLYZ Jay Colina *VU[YPI\[PUN7OV[VNYHWOLY Jasmin Najib +0.0;(3:,9=0*,: +PNP[HS:LY]PJLZ4HUHNLY Tristan Troy Maagma >LI+L]LSVWLYZ Abey Mascreen online@cpidubai.com +971 4 440 9100 7\ISPZOLKI`

‡•’‡…–‡†‹†—•–”›‡š’‡”–•ˆ”‘ƒ……‘—–‹‰ǡϐ‹ƒ…‡ƒ†„—•‹‡••Š‘„‘„„‡† ƒ––Š‡‰Žƒ‘—”‘—•‡˜‡––Šƒ–ˆ‡ƒ–—”‡†‡›‘–‡•’‡ƒ‡”Ž›’‹…•’‘”–‹‰Ž‡‰‡† ƒ†‘†‘Ž›’‹…•‘”‰ƒ‹•‡”ǡ‘”†‡„ƒ•–‹ƒ‘‡Ǥ ‘”Š”‹•ƒ›Ž‘”ǡ™Š‘‰”ƒ…‡•‘—”…‘˜‡”–Š‹•‘–Šǡ„‡‹‰†‡…Žƒ”‡†–Š‡ ‹††Ž‡ƒ•–ǯ•—†‹•’—–‡† ǮŠƒ”–‡”‡†……‘—–ƒ–‘ˆ–Š‡‡ƒ”ǯ‹•ƒ†”‡ƒ–Šƒ–Šƒ•„‡‡•‡˜‡”ƒŽ›‡ƒ”•‹–Š‡ƒ‹‰ƒ†”‹††Ž‡†™‹–Š ‹–‡”‡•–‹‰–™‹•–•ƒ†–—”•Ǥ

ƒ‡š…Ž—•‹˜‡‹–‡”˜‹‡™™‹–ŠAccountant Middle  Eastǡ–Š‡Š‹‡ˆ’‡”ƒ–‹‰ˆϐ‹…‡”‘ˆ„—Šƒ„‹ ‹ƒ…‡ ”‡˜‡ƒŽ•–Šƒ–Š‹•‡ƒ”Ž‹‡”’ƒ••‹‘•‹…Ž—†‡†„‡…‘‹‰ƒŽ›’‹…ͺͲͲ‡–”‡…Šƒ’‹‘ǡ„—–ƒ…‘„‹ƒ–‹‘‘ˆ ‹Œ—”‹‡•ƒ†ƒŽƒ…‘ˆ–ƒŽ‡–ƒ†‡Š‹”‡ƒŽ‹•‡Š‡Šƒ†–‘…Š‘‘•‡ƒ‘”‡Ǯ•‡•‹„Ž‡ǯ‘……—’ƒ–‹‘Ǥ Š‡ƒ™ƒ”†•‹‰Š–Š‘™‡˜‡”ǡ„‡Ž‘‰‡†–‘”‹…‡™ƒ–‡”Š‘—•‡‘‘’‡”•ƒ•–Š‡–ƒšǡƒ••—”ƒ…‡ƒ†ƒ†˜‹•‘”›•‡”˜‹…‡•ϐ‹” •ƒ–…Š‡†ƒ†‘—„Ž‡™‹‹–Š‡‘˜‡”ƒŽŽ…ƒ–‡‰‘”‹‡•‘ˆǮ ‹”‘ˆ–Š‡‡ƒ”ǯƒ†Ǯ‘”’‘”ƒ–‡ ‹ƒ…‡‡ƒŽ‘ˆ–Š‡‡ƒ”Ǥǯ‡‰‘ „‡›‘†–Š‡•‡•—……‡••‡•–‘ϐ‹†‘—–Š‘™–Š‡ϐ‹”ƒƒ‰‡†–‘•…‘‘’–Š‡–™‹˜‹…–‘”‹‡•Ǥ —”‡š–‡•‹˜‡…‘˜‡”ƒ‰‡‘ˆ–Š‡ƒ™ƒ”†•…‡”‡‘›”ƒ‰‡•ˆ”‘‹–‡”˜‹‡™•™‹–Š‹†‹˜‹†—ƒŽ™‹‡”•–‘ …‘”’‘”ƒ–‡•—……‡•••–‘”‹‡•‹–Š‡Ǯ™ƒ”†•’‡…‹ƒŽǯ’ƒ‰‡•Ǥ‡ƒŽ•‘”‡Ž‹˜‡ƒŽŽ–Š‡•’‡…–ƒ…—Žƒ”‘‡–•™‹–Š Ž‹˜‡Ž›ƒ†…‘Ž‘—”ˆ—Ž’Š‘–‘‰”ƒ’Š•…ƒ’–—”‡†ˆ”‘–Š‡‡˜‡–Ǥ Š‹•„—’‡” ƒ—ƒ”›‡†‹–‹‘‹•ƒŽ•‘’ƒ…‡†™‹–Š‘–Š‡”‡š…Ž—•‹˜‡ˆ‡ƒ–—”‡•ƒ†‹–‡”˜‹‡™•™‹–Š–‘’‹†—•–”› ’”‘ˆ‡••‹‘ƒŽ•‹…Ž—†‹‰ƒ”Š—––Ž‡™‘”–Šǡ–Š‡Š‹‡ˆ ‹ƒ…‹ƒŽˆϐ‹…‡”ȋ Ȍ‘ˆ‹”ƒ–‡• –‡‰”ƒ–‡† ‡Ž‡…‘—‹…ƒ–‹‘•‘’ƒ›ȋ†—Ȍǡ—”›ƒ—„”ƒƒ‹ƒǡ–Š‡ ‘ˆ‘‡‘ˆǯ•–‘’„ƒ•‹”ƒ–‡• ƒ‘‰‘–Š‡”•Ǥ –Š‡•ƒ‡–Š”‡ƒ†ǡ–Š‹•…‘Ž—Žƒ•–‘–Š‹ƒ†˜‡”–‡–Ž›”‡ˆ‡””‡†–‘‘—––•ǯ ‡‹ˆ‡”ƒ–Š‹ƒ• ƒ•Š‹‡ˆš‡…—–‹˜‡ˆϐ‹…‡”ǡ„—––Š‡–‘’„ƒ‡”‹•‹ˆƒ…––Š‡ Ǥ’‘Ž‘‰‹‡•ˆ‘”–Š‡‡””‘”Ǥ Š‡›‡ƒ”ʹͲͳ͵•–ƒ”–•™‹–Šƒ„ƒ‰ƒ†ƒ•™‡’”‘‹•‡†‹‘—”Žƒ—…Š‹••—‡ǡ–Š‡ƒ‰ƒœ‹‡ǯ•‰”‘—†„”‡ƒ‹‰…‘…‡’–™‹ŽŽ ‡†‡ƒ˜‘—”–‘–ƒ’‹–‘–Š‡’ƒ••‹‘•‘ˆ‘—”…‘”‡”‡ƒ†‡”•„›…”‡ƒ–‹‰ƒ”‹…Šǡ…‘’‡ŽŽ‹‰ƒ†‡‰ƒ‰‹‰‡†‹–‘”‹ƒŽ’Žƒ–ˆ‘”Ǥ ƒ’’›‡™‡ƒ”Ǩ

6MMPJL .YVZ]LUVY)\ZPULZZ;V^LY ;,*64 PO Box 13700 Dubai, UAE

1V`JL5QLYP Editor, Accountant Middle East

Tel: +971 4 440 9100 Fax: +971 4 447 2409

SETTING STANDARDS IN FINANCIAL AUDITING & ACCOUNTANCY

Talk to us:

JANUARY 2013

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;^P[[LY! @AccountancyME EXCLUSIVE! PINNACLE OF SUCCESS My father once said, ‘I have never seen a poor accountant’ – that advice still holds true today, says CFO of du Mark Shuttleworth

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© Copyright 2013 CPI All rights reserved While the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.

INTEGRATED REPORTING FRAMEWORK Challenges emerge a year since the International Integrated Reporting Council launched its pilot programme

Relive all the spectacular moments from the Accountancy & Finance recognition ceremony in Dubai. Our extensive coverage ranges from interviews with individual winners, to corporate success stories, including; PwC runs away with ‘Firm of the Year’ and ‘Deal of The Year’ gongs Phoenix students dominate nominations list for ‘Young Accountant of the Year’

3PURLK0UNYV\W! Accountant Middle East

HE Sheikh Nahayan on the origins of modern-­day accounting Colourful photographs of overall winners

CHARTERED ACCOUNTANT OF THE YEAR Chris Taylor, the COO of Abu Dhabi Finance, is Middle East’s undisputed top CA, and rightfully so

-HJLIVVR! www.facebook.com/AccountancyME

PUBLICATION LICENSED BY IMPZ

www.accountancyme.com 3


CONTENTS JANUARY 2013

Main Features

42 42

PERSONALITY & PRACTICE:

48

ACCOUNTANCY 101:

64

DIFFERENT DIMENSIONS:

Pinnacle of  success  –  From  climbing   corporate  ladders  to  summiting  world’s  t allest   mountains,  du’s  CFO  Mark  Shuttleworth  is  a  high   achiever  whose  mantra  is  peak  performance. Fallout  f rom  t he  A rab  SpringǦ ϐŽ—‡–‹ƒŽ accountancy  professionals  t alk  about  t he  recent   uprisings  in  the  Arab  world  in  an  effort  to  understand   the  current  state  of  t he  industry  and  t he  likely  f uture   consequences  for  accountancy  in  the  region

Eye on  t he  prize  -­‐  Morgan  International’s  CEO   Khalil  Fawaz’s  journey  is  testimony  of  how  accounting  and   auditing  can  be  a  springboard  for  a  rewarding  career.

4

January 2013

55


Current Affairs 6 NEWS & VIEWS:

Deloitte promotes  40  professionals  Ȃ—†‹–ϐ‹” announces  admission  of  40  new  partners,  principals  and  directors   in  the  Middle  East  in  2012,  as  part  of  its  growth  strategy  across   the  region.    

12

INTERNATIONAL PERSPECTIVES:

ICAS faults  audit  r ules  –  Research  by  the  Institute   of  Chartered  Accountants  of  Scotland  has  found  'no  conclusive'   ‡˜‹†‡…‡–Šƒ–ƒ†ƒ–‘”›ƒ—†‹–ϐ‹””‘–ƒ–‹‘‹’”‘˜‡•ƒ—†‹–“—ƒŽ‹–›Ǥ

Profession Watch

10

BUSINESS PICTORIAL:

A visual  story  of  this  month’s  dealings  and   ’”‘…‡‡†‹‰•‹–Š‡ƒ……‘—–‹‰ƒ†ϐ‹ƒ…‡•‡…–‘”•Ǥ

58

POINT BLANK:

Battle against  sleaze  -­‐  Bribery  and   corruption  in  the  Middle  East  is  no  longer  ‘simply  a  cost   of  doing  business’.

70

TAX WATCH:

UAE’s double  t ax  t reaties  -­‐  Emirates  enacts   decrees  for  purposes  of  eliminating  foreign  levies  on   income  from  outbound  activities.

72

TECH TALK:

74

INDUSTRY APPOINTMENTS:

14

ICAEW EXCELLENCE AWARDS:

Extensive coverage  of  t he  spectacular  moments  f rom   the  Accountancy  &  Finance  recognition  ceremony  in  Dubai   ranges  f rom  interviews  w ith  individual  w inners,  to  corporate   success  stories,  including:      P wC  r uns  away  w ith  ‘Firm  of  t he  Year’  and  ‘Deal  of  T he        Year’  gongs    Chris  Taylor,  t he  COO  of  Abu  Dhabi  Finance  clinches  coveted        honour  of  ‘Chartered  Accountant  of  t he  Year’  Phoenix  students  dominate  nominations  list  for  ‘ Young        Accountant  of  t he  Year’    HE  Sheikh  Nahayan  on  t he  origins  of  modern-­‐day  accounting    Colourful  photographs  of  g uests  and  overall  w inners   The Editor of Accountant Middle East, Joyce Njeri, joins PwC Senior Partners Nitin Khanna (left) and Jacques Fakhoury, after the audit company clinched ‘Firm of the Year’ honour at the ICAEW Accountancy and Finance Excellence Awards ceremony in Dubai.

An all  new  paradigm  -­‐  Rapid  growth  of   –‡…Š‘Ž‘‰›‹••™‹ˆ–Ž›‹ϐŽ—‡…‹‰‘’‡”ƒ–‹‘ƒŽ’”‘…‡••‡• of  SMEs  in  the  UAE. Revolving  door  -­‐  Find  out  the  latest  movement   of  professionals  between  roles,  companies  as  well  as   new  industry  hires.  

Special Reports 08 DELOITTE SURVEY:

Staying put  -­‐  Deloitte’s  new  research  reveals  80%  of   employees  plan  to  continue  working  at  their  organisations  over   the  next  year.

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INTEGRATED REPORTING:

Ironing out  t he  creases  -­‐  Challenges  are  beginning   to  emerge,  a  year  since  the  International  Integrated  Reporting   Council  launched  its  pilot  programme  to  help  create  the  world’s   ϐ‹”•–‹–‡‰”ƒ–‡†”‡’‘”–‹‰ˆ”ƒ‡™‘”Ǥ

55

MOVERS & SHAKERS:

Passion for  banking  -­‐  Surya  Subramanian,  Chief   ‹ƒ…‹ƒŽˆϐ‹…‡”‘ˆ‹”ƒ–‡•ƒǡ‘™Šƒ–‹––ƒ‡•–‘Ž‡ƒ†–Š‡ ϐ‹ƒ…‡†‹˜‹•‹‘‘ˆ‘‡‘ˆ–Š‡–‘’Ž‡†‹‰‹•–‹–—–‹‘•‹–Š‡”‡‰‹‘Ǥ

5


NEWS & VIEWS

FLOWERS PAINTS ROSY PICTURE OF ECONOMY

STANCHART TO LAUNCH CASH MANAGEMENT TOOLS FINANCIAL INSTITUTIONS  are  on  t he  path   to  recovery  f rom  t he  global  economic  crisis,   according  to  J.  Christopher  F lowers,  an   ‹–‡”ƒ–‹‘ƒŽ•’‡…‹ƒŽ‹•–‹ϐ‹ƒ…‹ƒŽ•‡”˜‹…‡•Ǥ Speaking  at  t he  London  Business  School  (LBS)   thought  leadership  forum  in  Dubai,  F lowers   shared  his  t houghts  and  insights  on  t he  global   ‘—–Ž‘‘ˆ‘”–Š‡ϐ‹ƒ…‹ƒŽ•‡”˜‹…‡•‹†—•–”›†—”‹‰ an  evening  hosted  by  t he  Coller  Institute  of   Private  Equity  and  t he  LBS.   “One  t hing  I  t hink,  which  is  not  necessarily  a   common  opinion,  is  t hat  eventually,  returns  on   …ƒ’‹–ƒŽƒ†’”‘ϐ‹–ƒ„‹Ž‹–›ˆ‘”ϐ‹ƒ…‹ƒŽ‹•–‹–—–‹‘• will  get  back  to  normal,”  said  F lowers  ( pictured). DzŠ‡”‡ƒ”‡–Š‘•‡‹–Š‡ϐ‹ƒ…‹ƒŽ‹•–‹–—–‹‘• industry  who  t hink  we  are  facing  permanently   low  returns  on  capital.  I  don’t  see  it  t hat  way,  t he   reason  being  t hat  t hese  industries  are  absolutely   essential  to  t he  f unctioning  of  t he  economy.  It   ‹•‡…‡••ƒ”›–Šƒ–‘”‡…ƒ’‹–ƒŽϐŽ‘™•‹–‘–Š‡•‡ industries  so  t hey  can  provide  t he  f unding  t he   economy  needs,  and  t hat  w ill  require  higher   ROEs,”  he  added.  Flowers  also  discussed  t he   crucial  lessons  t hat  banks,  insurance  companies,   key  stakeholders  and  regulators  have  learned   ˆ”‘–Š‡ϐ‹ƒ…‹ƒŽ…”‹•‹•ǤŠ‡†‹•…—••‹‘ˆ‘…—••‡† particularly  on  Europe  and  t he  concerns  posed   by  uncertainty  of  t he  Euro. “We  have  seen  t he  volatility  of  t he  markets,   but  to  have  a  situation  where  t here  are  immense   doubts  whether  a  currency  w ill  persist  or  not...   is  a  very  unusual  issue.  If  a  country  abandons  t he   Euro,  most  banks  in  t hat  particular  country  and   some  in  others  w ill  go  broke." 6

January 2013

THE STANDARD Chartered bank has presented and discussed with clients its plans to revamp its cash and liquidity management platform during the first quarter of 2013. During a conference dubbed ‘Managing Liquidity in a Dynamic economic Environment’ senior finance and treasury executives from the bank discussed the various topics including optimisation of cashflow and working capital management. “Stressed market conditions have led organisations to increasingly focus on Cash and Liquidity Management to support business growth STATS FACT:

11

STANDARD CHARTERED BRANCH OFFICES IN THE UAE

and manage their costs and investments,” said Haytham El Maayergi, Head of Transaction Banking, Standard Chartered UAE. “Standard Chartered is continuously investing in its capabilities and will launch during the first quarter of 2013 leading solutions that improve efficiency, manage risk and strengthen cash management processes for clients globally and in the region. With deep local expertise and a strong footprint across the world’s most dynamic markets of Asia, Africa and the Middle East, Standard Chartered will continue to be well placed to offer a full range of working capital solutions,” El Maayergi added. Standard Chartered has been operating in the UAE since 1958 and has the largest distribution network among international banks with 11 branches four Electronic Banking Units and more than 130 ATMs and CDMs.


NEWS & VIEWS

ACCA ONLINE DELOITTE PROMOTES 40 PROGRAMMES PROFESSIONALS LAUNCHED INTERACTIVE, THE   e-­‐learning  arm  of   the  London  School  of   Business  and  Finance   (LSBF)  has  launched   the  t hird  generation  of   its  online  ACCA  programmes.  According  to  t he   trainers,  the  courses  -­‐  delivered  v ia  an  e-­‐learning   ’Žƒ–ˆ‘”ȂDz™‡”‡”‡ˆ‘”—Žƒ–‡†–‘”‡ϐŽ‡…––Š‡ latest  t rends  and  meet  t he  feedback  provided  by   over  12,000  students  worldwide.”   ‹‹‰–‘‹…”‡ƒ•‡ϐŽ‡š‹„‹Ž‹–›ǡ•–—†‡–•—’’‘”–ǡ interaction  and  value  for  money,  both  t he  ACCA   Tuition  and  the  ACCA  Revision  packages  have   been  improved  w ith  an  increased  number  of   Ž‹˜‡•‡••‹‘•ǡ’‡”•‘ƒŽ‹•‡†–—–‘”•—’’‘”–ǡ‡š’‡”– guidance  and  online  coaching.   Rob  Sowerby,  Director  of  Professional   Courses  at  LSBF,  commented:  “The  new  product   is  designed  to  greatly  improve  t he  level  of   interaction  between  student  and  t utor  and  we   Šƒ˜‡†‡˜‡Ž‘’‡†ƒ…Ž‡ƒ”•–—†›’ƒ–Š–Šƒ–ƒš‹‹•‡• –Š‡…Šƒ…‡•‘ˆ–Š‡‡šƒ•—……‡••Ǥdz

DELOITTE HAS announced the admission of 40 new partners, principals and directors in the Middle East in 2012, as part of its growth strategy across the region. Sixty per cent of the newly promoted leaders are Arab professionals, the majority of whom have had international experience, while the other leaders are a diverse group of international professionals who have either long tenure in the region or have recently moved in to grow their careers and provide international

expertise to clients. Women professionals form 15% of the newly promoted team, including three Arab women leaders. This is in line with Deloitte’s strategy to advance women to leadership positions in the Middle East. “These appointments reflect the firm’s ongoing commitment to delivering innovative, world-leading thinking to all our clients, and reaffirm our confidence in the Middle East as a priority market,” said Omar Fahoum, chairman and chief executive of Deloitte Middle East.

STATS FACT:

15%

PERCENTAGE OF WOMEN PROFESSIONALS IN THE NEWLY PROMOTED TEAM

MECA summit records growth ͹ͷŠ‹‡ˆ ‹ƒ…‹ƒŽˆϐ‹…‡”•ƒ† •‡‹‘”ϐ‹ƒ…‡‡š‡…—–‹˜‡•ˆ”‘’”‘‹‡– …‘’ƒ‹‡•ƒ––‡†‡†–Š‡ϐ‹”•–  conference organised  by  the  Middle  East   CFO  Alliance  (MECA)  in  Dubai  recently.   According  to  t he  organisers,  t he  event   which  centred  on  t he  t heme  of  ‘Driving   Corporate  Performance  in  Uncertain   Times’,  was  a  huge  success,  a nd  featured   speakers  drawn  f rom  prominent   companies  including  SAP,  Bayt.com,   Signature  Group,  Ideal  Management   Consultants  a nd  Resources  Global   Professionals.   MECA  is  the  largest  CFO  Networking   group  across  Middle  East  with  its   members  based  in  UAE,  KSA,  GCC,   Pakistan,  India  and  other  Middle  Eastern   countries.  The  group  regularly  organises   networking  and  information  sharing   events  and  conferences  with  the  support  

of its  sponsoring  partners.   Š‡‡š–‡˜‡–‹•–Š‡ ‹”•– Regional  CFO  Conference  set  to  be  held  on   March  27-­‐28,  2013  in  Dubai.   According  to  the  group’s  President   ƒŽ‡‡—ϐ‹ȋ’‹…–—”‡†Ȍǡ‘”‡–ŠƒʹͷͲ CFOs  from  UAE,  KSA,  Pakistan,  India  

ƒ†‘–Š‡” —Žˆ…‘—–”‹‡•Šƒ˜‡…‘ϐ‹”‡† participation. MECA  events  are   invitation-­‐only  and  organised  mainly  for   ‹–•‡„‡”•Ǥ ˆ›‘—ƒ”‡ƒ•‡‹‘”ϐ‹ƒ…‡ ‡š‡…—–‹˜‡ƒ†™ƒ––‘„‡…‘‡ƒ‡„‡” of  MECA,  you  may  send  your  request  via   the  group’s  LinkedIn  forum.   7


DELOITTE SURVEY

STAYING PUT

Deloitte’s new survey reveals 80% of employees plan to continue working at their organisations over the next year

T

HOUGH HIGH unemployment persists and the global economic recovery remains halting and uneven, employers still face challenges filling technical and skilled jobs. According to   the   new   global   talent   survey   from   Deloitte   and   Forbes   Insights,   Talent   2020:   Surveying   the   talent   paradox   from   the   employee   ’‡”•’‡…–‹˜‡ǡ ˆ‘—” ‘—– ‘ˆ ϐ‹˜‡ ȋͺͲΨȌ ‡’Ž‘›‡‡• surveyed  report  that  they  plan  to  stay  with  their   ‘”‰ƒ‹œƒ–‹‘• ‘˜‡” –Š‡ ‡š– ›‡ƒ”Ȅƒ •‹‰‹ϐ‹…ƒ– ͶͷǦ’‘‹– •™‹‰ ˆ”‘ ʹͲͳͳǡ ™Š‡ ‡ƒ”Ž› –™‘ ‹ –Š”‡‡ ‡’Ž‘›‡‡• •—”˜‡›‡† ȋ͸ͷΨȌ ™‡”‡ ’Žƒ‹‰ on  leaving  t heir  organisations.   “Sourcing   and   retaining   talented   human   capital   has   become   a   top   priority   globally.   It   will   act   as   the   differentiating   factor   in   the   prosperity   of   countries   and   companies,   especially   in   emerging   economies  such  as  t he  Middle  East,”  said  Ghassan   Turqieh,   Human   Capital   consulting   partner   at   Deloitte  Middle  East.   ;OL[HSLU[WHYHKV_ ……‘”†‹‰–‘–Š‡•—”˜‡›ǡ‹–Š‡Žƒ•–ͳʹ‘–Š•Ͷ͸Ψ of   surveyed   employees   have   moved   to   new   jobs   ȋͻΨȌǡ ”‡…‡‹˜‡† ƒ ’”‘‘–‹‘ ȋʹʹΨȌǡ ‘” …Šƒ‰‡† ”‘Ž‡• ȋͳͷΨȌ ™‹–Š –Š‡‹” …—””‡– ‡’Ž‘›‡”•ȄƒŽŽ factors   that   might   make   them   less   inclined   to   ‘˜‡†—”‹‰–Š‡‡š–ͳʹ‘–Š•Ǥ‡–‡ƒ”Ž›‘‡Ǧ –Š‹”† ȋ͵ͳΨȌ ‘ˆ •—”˜‡›‡† ‡’Ž‘›‡‡• ”‡’‘”– –Š‡› ƒ”‡‘–•ƒ–‹•ϐ‹‡†™‹–Š–Š‡‹”Œ‘„•Ǥ

46%

SURVEYED EMPLOYEES WHO HAVE MOVED TO NEW JOBS IN THE LAST 12 MONTHS 8

January 2013

‡Ž‘‹––‡ϐ‹”•–—…‘˜‡”‡†–Š‹•‘†‡”…‘–”ƒ†‹…–‹‘ ˆ”‘–Š‡‡’Ž‘›‡”•‹†‡‹–Š‡ ƒ—ƒ”›ʹͲͳʹ‹••—‡‘ˆ Deloitte Review   with   “The   talent   paradox:   Critical   skills,  recession,  and  theillusion  of  plenitude.”  In  this   latest  Talent  2020  report,  Deloitte  turns  its  focus  to   the  employee  perspective  on  the  talent  paradox. As   more   employees   appear   to   be   sitting   tight   in   their  current  positions,  companies  may  be  tempted   to  neglect  t heir  t alent  and  retention  strategies  out   of   a   false   sense   of   security   that   their   employees   are   here   to   stay.   However,   the   report   warns   that   companies’  most  critical  employees  are  also  those  

with the  most  opportunities  for  movement.   “As   employee   expectations   of   business   continue   to  grow,  employers  should  keep  a  watchful  eye  on   the  latest  employee  attitudes  and  emerging  t alent   trends,”   said   Rana   Ghandour   Salhab,   talent   and   communications  partner  at  Deloitte  Middle  East.   Dz’‡…‹ϐ‹…ƒŽŽ›ǡ„—•‹‡••‡•ƒ›™ƒ––‘ƒ†Œ—•––Š‡‹” talent  management  initiatives  to  focus  on  retaining   two   workforce   segments:   employees   w ith   critical   skills   who   are   at   a   high   risk   of   departure,   and   the   capable  leaders  who  can  advance  their  companies   despite   continuing   global   economic   turbulence,”   she  added. Based  on  the  survey  results  and  Deloitte’s  analysis   ‘ˆ –Š‡ –ƒŽ‡– ƒ”‡–ǡ ‡Ž‘‹––‡ ‹†‡–‹ϐ‹‡† –Š”‡‡ emerging  t rends:  Engage  employees  w ith  meaningful  work  or   watch  them  walk  out  the  door.  Employees  value   meaningful  work  over  other  retention  initiatives.   ƒŒ‘”‹–›ȋͶʹΨȌ‘ˆ”‡•’‘†‡–•™Š‘ƒ”‡•‡‡‹‰ new  employment  believe  their  job  does  not  make   good  use  of  their  skills  and  abilities.    Focus  on  turnover  “red  zones.”  Employee   segments  at  high  risk  of  departure,  or  “turnover   red  zones,”  either  have  less  than  t wo  years  on  the   Œ‘„‘”ƒ”‡‹ŽŽ‡‹ƒŽ‡’Ž‘›‡‡•ȋ–Š‘•‡ƒ‰‡†͵ͳ ƒ†›‘—‰‡”ȌǤ    W hen  it  comes  to  retention,  leadership   ƒ––‡”•Ǥ‘”‡–Šƒ•‹š‹ͳͲ‡’Ž‘›‡‡•ȋ͸ʹΨȌ who  plan  to  stay  w ith  their  current  employers   report  high  levels  of  t rust  in  corporate  leadership.   This   edition   of   the   Talent   2020   report   reveals   •‹‰‹ϐ‹…ƒ– •Š‹ˆ–• ‹ –Š‡ –ƒŽ‡– ƒ”‡– ‘˜‡” –Š‡ past  year,  particularly  when  it  comes  to  turnover   intentions.   In   order   to   help   corporate   leaders   retain   top   talent,   Deloitte   recommends   increasing   a   company’s   focus   on   utilising   and   developing   employee   skills,   emphasising   and   rewarding   authentic  leadership,  and  fostering  an  environment   with  effective,  transparent  communication.  


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BUSINESS PICTORIAL

CRÈME DE LA CRÈME: Winners of the Institute of Chartered Accountants in England and Wales (ICAEW) Middle East Accountancy and Finance Awards are all smiles as they show off their coveted trophies during the prestigious ceremony at the Jumeirah Beach Hotel, Dubai.

SAVOURING THE MOMENT: ICAEW’s Regional Director Peter Beynon with his wife Heather, relishes in the delight of hosting a successful awards ceremony.

10 January 2013


BUSINESS PICTORIAL

MASTER OF CEREMONIES: Dubai Eyeâ&#x20AC;&#x2122;s radio presenter Richard Dean kept the party going at the ICAEW glittering event.

11


INTERNATIONAL PERSPECTIVES

FRC ISSUES REVISED PENSION STANDARD THE UK  Financial  Reporting  Council  (FRC)   has  issued  a  revised  version  of  actuarial   standard  TM1  (AS  TM1).  The  AS  TM1  sets  out   the  assumptions  to  be  used  in  annual  statutory   money  purchase  pension  illustrations  (SMPIs).   The  FRC  said  the  most  important  change  is  t he   removal  of  the  7%  cap  per  annum  on  t he  rate  at   which  pension  scheme  investments  are  assumed   to  build  up.  The  regulator  w ill  monitor  t he   assumptions  used  in  SMPIs  to  assess  the  impact   of  t his  removal.   "Providers  of  SMPIs  must  t hink  very  carefully   about  t he  assumptions  they  use  in  producing   these  illustrations,"  FRC's  Actuarial  Council   chairman  Olivia  Dickson  said.

ICAEW in favour of global IFRS adoption THE ICAEW  has  urged  the   International  Accounting   Standards  Board  (IASB)  to   'end  the  era  of  convergence',   suggesting  instead  that  all   listed  companies  globally   should  be  able  to  apply   International  Financial   Reporting  Standards  (IFRS).    According  to  the  Faculty,  the  last  ten  years   of  progress  towards  the  development  of  global   accounting  standards  has  focused  on  convergence   between  IASB  and  the  US  Financial  Accounting   Standards  Board  (FASB).  ICAEW  argues  that   despite  the  lack  of  agreement  between  the  t wo   bodies  in  some  key  areas,  the  effort  should  now  be   called  off.  Dr  Nigel  Sleigh-­‐Johnson  (pictured),  head   of  the  Faculty,  elaborated:  "All  listed  companies   in  major  countries  currently  not  part  of  the  'IFRS   family'  should  be  given  the  option  of  reporting   under  IFRS,  including  the  US.  Governments   should  let  the  market  speak.  Companies  should  be   permitted  to  assess  for  themselves  whether  the   „‡‡ϐ‹–•‘ˆ–”ƒ•‹–‹‘‘—–™‡‹‰Š–Š‡…‘•–•̶Ǥ 12 January 2013

EC TO PROPOSE MANDATORY NONFINANCIAL REPORTING THE EUROPEAN Commission (EC) will propose a change in European Union (EU) law to make further non-financial disclosures for certain company's mandatory, The Accountant has learnt. The EC plans to introduce amendments to the accounting directives 78/660/EEC and 83/349/EEC aimed at strengthening non-financial reporting requirements for large companies across the EU. At the moment, EC's draft legislation is subject to inter-service consultation, a process which would allow Directorates-General (as are known the various EC's departments and services) to give their input on the proposal. The draft bill, which is not expected to be officially published until January 2013, would make it compulsory to include environmental, social and employee aspects; respect of human rights and anti-corruption and bribery matters in companies' annual reports. The draft regulation applies to companies with more than 500 employees. STATS FACT:

500

NUMBER OF EMPLOYEES FOR COMPANIES TO BE AFFECTED BY NEW REGULATION

ICAS FAULTS AUDIT RULES RESEARCH BY the Institute of Chartered Accountants of Scotland (ICAS) has found 'no conclusive' evidence that mandatory audit firm rotation improves audit quality. The report also found, that the potentially positive influence on auditor independence that rotation may have can't guarantee a higher audit quality and that it could actually damage audit quality. The research comes as the European Parliament debates the audit reform proposals put forward by the European Commission, which includes mandatory audit firm rotation.

ICAS director of research Michelle Crickett said the ICAS research is a "timely addition to the debate over audit market reform." "Regulators need to be very clear about the long-term objectives of rotation," Crickett warned. - The Accountant, UK


INTERNATIONAL PERSPECTIVES

ICAEW APPLIES ACCOUNTANTS’ POSITIVE TO REGULATE ABOUT 2013: IRIS PROBATE SERVICES AND ABS THE INSTITUTE  of   Chartered  Accountants   in  England  and  Wales   (ICAEW)  has  submitted   an  application  to  the   Legal  Services  Board  to   allow  it  to  become  probate  services  and  Alternative   Business  Structures  (ABS)  regulator,  following  a   public  consultation.   A  successful  application  would  therefore  allow   –Š‡ –‘ƒ—–Š‘”‹•‡‹†‹˜‹†—ƒŽ•ƒ†ϐ‹”•ˆ‘” the  reserved  legal  service  of  probate  and  to  license   ϐ‹”•ƒ•Ǥ

IASB mulls new set of priorities THE INTERNATIONAL   Accounting  Standards   Board  (IASB)  has  set   out  its  future  priorities   on  the  back  of  a  public   consultation  it  conducted. The  consultation   included  public  discussions,   meetings  with  investors  and  online  discussions   and  involved  thousands  of  interested  parties.   Š‡ϐ‹˜‡„”‘ƒ†–Š‡‡•‡‡”‰‡†ˆ”‘–Š‡ …‘•—Ž–ƒ–‹‘‹…Ž—†‡ǣȈ‡•’‘†‡–•ƒ•‡† for  a  period  of  relative  calm  after  a  decade  of   ƒŽ‘•–…‘–‹—‘—•…Šƒ‰‡ǢȈŠ‡”‡™ƒ•ƒŽ‘•– unanimous  support  for  the  IASB  to  prioritise  work   ‘–Š‡‘…‡’–—ƒŽ ”ƒ‡™‘”ǡȈŠ‡ ™ƒ• asked  to  make  targeted  improvements  to  respond   –‘–Š‡‡‡†•‘ˆ‡™ƒ†‘’–‡”•‘ˆ •ǢȈŠ‡  should  pay  more  attention  to  the  implementation   of  standards;  among  others.   IASB  chairman  Hans  Hoogervorst  (pictured)   said  "today  we  set  out  a  new  set  of  priorities,  and   new  methods  to  deepen  co-­‐operation  with  the   global  standard-­‐setting  community."  

MOST UK accountants in practice forecast a positive financial situation for their firms in the next year and expect a busy, but profitable 2013, a survey by IRIS Software Group found. The number of respondents seeing a 'positive' or 'extremely positive' outlook has increased by 10% to 67% in relation to the previous two years. For their clients, UK's accountants are not as optimistic as for their own business, with 52% of respondents expecting the clients business in 2013 to be 'mediocre'. According to the respondents, in 2013 they will be focussed on growing their client base, meeting the Real Time Information (RTI) deadline and improving their practice efficiency. IRIS surveyed 222 accountants in practice in October 2012. STATS FACT:

67%

RESPONDENTS WHO PREDICT A POSITIVE OUTLOOK FOR 2013

AUDITORS NEED CONSISTENCY IN PERFORMANCE: IFIAR MORE NEEDS to be done to improve the consistency of performance by auditors, an inaugural audit inspection findings survey has found. The International Forum of Independent Audit Regulators (IFIAR) survey identifies the level of inspection activity among IFIAR members and focuses primarily on inspections of audit firms that are members of the six largest international audit firm networks. It also responds to a request from the Financial Stability Board to provide details of findings from the inspections of audits of major financial institutions. According to the report, members are currently noting numerous

common areas or inspection themes across different jurisdictions. For example, the results indicate the largest number of inspection findings in audits of public companies occurred in the following areas: fair value measurements; internal control testing; and engagement quality control reviews. - The Accountant, UK 13


ACCOUNTANCY & FINANCE AWARDS

A HISTORY ETCHED ON CLAY HE Sheikh Nahayan goes back in time as he narrates the origins of modern-day accounting WORDS OF WISDOM: â&#x20AC;&#x153;The accounting profession owns a history much longer than the UAEâ&#x20AC;&#x2122;s,â&#x20AC;? says HE Sheikh Nahayan bin Mubarak Al Nahayan, Minister of Higher Education and 4DJFOUJmD3FTFBSDI

T

ODAYâ&#x20AC;&#x2122;S TECHNO-­SAVVY number crunchers utilise the best tools and software that the modern world has to offer. But did you know that the forefathers of accounting relied on clay tokens for double-­entry bookkeeping? In  his   history-­â&#x20AC;?rich   speech   tinged   with   humour   and   wit,   HE   Sheikh   Nahayan   bin   Mubarak   Al   Nahayan,   the   Minister   Â&#x2018;Â&#x2C6; Â&#x2039;Â&#x2030;Â&#x160;Â&#x2021;Â&#x201D; Â&#x2020;Â&#x2014;Â&#x2026;Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â? Â&#x192;Â?Â&#x2020; Â&#x2026;Â&#x2039;Â&#x2021;Â?Â&#x2013;Â&#x2039;Ď?Â&#x2039;Â&#x2026; Research,  enlightened  dignitaries  -­â&#x20AC;?  who   comprised  t he  cream  of  t he  accountancy   Â&#x192;Â?Â&#x2020; Ď?Â&#x2039;Â?Â&#x192;Â?Â&#x2026;Â&#x2021; Â&#x2019;Â&#x201D;Â&#x2018;Â&#x2C6;Â&#x2021;Â&#x2022;Â&#x2022;Â&#x2039;Â&#x2018;Â? Č&#x201A; Â&#x192;Â&#x201E;Â&#x2018;Â&#x2014;Â&#x2013; Â&#x2013;Â&#x160;Â&#x2021; colloquial  origins  of  the  modern-­â&#x20AC;?day  act   of  debit  and  credit. â&#x20AC;&#x153; T he   account ing   profession   ow ns   a   history   much   longer   than   the   UAEâ&#x20AC;&#x2122;s,â&#x20AC;?   he  said,  during  the  annual  Accountancy  

14 January 2013

a n d  F i n a n c e   E x c e l l e n c e   a w a r d s   ceremony,  organised  by  the  Institute  of   Chartered  Accountants  in  England  and   Wales  ( ICAEW). â&#x20AC;&#x153;You   must   be   proud   that   your   predecessors   gave   writing   to   the   world   where   archaeologists   and   historians   Â&#x2020;Â&#x2021;Â&#x2013;Â&#x2021;Â&#x201D;Â?Â&#x2039;Â?Â&#x2021;Â&#x2020; Â&#x2C6;Â&#x201D;Â&#x2018;Â? Ď?Â&#x2039;Â&#x201D;Â&#x2021;Â&#x2020; Â&#x2026;Â&#x17D;Â&#x192;Â&#x203A; Â&#x2013;Â&#x2018;Â?Â&#x2021;Â?Â&#x2022; shaped  as  spheres,  cones  and  ovoids.â&#x20AC;?   +LIP[HUKJYLKP[LU[YPLZ The  tokens  furnished  a  basic  method  of   keeping  track  of  produce  and  exchanges   and   centuries   later,   the   advent   of   large-­â&#x20AC;? scale   trading   enabled   a   vast   increase   in   the  number  of  tokens  representing  items   such  as  bread,  honey,  metal  and  textiles. â&#x20AC;&#x153;People  began  to  store  t heir  tokens  in  clay   envelopes,â&#x20AC;?  Sheikh  A l  Nahayan  narrated,   adding  t hat  â&#x20AC;&#x153;tokens  added  were  in  effect  


ACCOUNTANCY & FINANCE AWARDS

what  we   would   call   debit   entries,   while   tokens  removed  were  credit  entries.â&#x20AC;?   â&#x20AC;&#x153;Eventually  t he  owners  of  clay  envelopes   realised  t hat  t hey  could  account  for  t heir   Â&#x2013;Â&#x2018;Â?Â&#x2021;Â?Â&#x2022;Â&#x201E;Â&#x203A;Ď?Â&#x17D;Â&#x192;Â&#x2013;Â&#x2013;Â&#x2021;Â?Â&#x2039;Â?Â&#x2030;Â&#x2013;Â&#x160;Â&#x2021;Â&#x2039;Â&#x201D;Â&#x2021;Â?Â&#x2DC;Â&#x2021;Â&#x17D;Â&#x2018;Â&#x2019;Â&#x2021;Â&#x2022;Â&#x192;Â?Â&#x2020; pressing   the   tokens   into   wetted   clay.   Â&#x160;Â&#x2021;Â&#x203A;Â&#x2013;Â&#x160;Â&#x2014;Â&#x2022;Â&#x2026;Â&#x201D;Â&#x2021;Â&#x192;Â&#x2013;Â&#x2021;Â&#x2020;Â&#x2013;Â&#x160;Â&#x2021;Â&#x2122;Â&#x2018;Â&#x201D;Â&#x17D;Â&#x2020;ÇŻÂ&#x2022;Ď?Â&#x2039;Â&#x201D;Â&#x2022;Â&#x2013;Â&#x2013;Â&#x192;Â&#x201E;Â&#x17D;Â&#x2021;Â&#x2013; and  moved  from  3-­â&#x20AC;?D  to  2-­â&#x20AC;?D  accounting,â&#x20AC;?   the   Minister   said,   to   the   amusement   of   the  dignitaries.   :LUZLVMYLZWVUZPIPSP[` While   emphasising   on   the   important   role   that   accountants   play   in   todayâ&#x20AC;&#x2122;s   business  world,  Sheikh  Nahayan  sent  t he   crowd   rolling   with   laughter   by   quoting   a  famous  statement  by  the  â&#x20AC;&#x2DC;King  of  Rock   and  Rollâ&#x20AC;&#x2122;  Elvis  Presley.   â&#x20AC;&#x153;He   [Elvis   Presley]   once   said   that   â&#x20AC;&#x2DC;I   have   no   use   for   bodyguards,   but   I   have   Â&#x2DC;Â&#x2021;Â&#x201D;Â&#x203A; Â&#x2022;Â&#x2019;Â&#x2021;Â&#x2026;Â&#x2039;Ď?Â&#x2039;Â&#x2026; Â&#x2014;Â&#x2022;Â&#x2021; Â&#x2C6;Â&#x2018;Â&#x201D; Â&#x2013;Â&#x2122;Â&#x2018; Â&#x160;Â&#x2039;Â&#x2030;Â&#x160;Â&#x17D;Â&#x203A; Â&#x2013;Â&#x201D;Â&#x192;Â&#x2039;Â?Â&#x2021;Â&#x2020; Â&#x2026;Â&#x2021;Â&#x201D;Â&#x2013;Â&#x2039;Ď?Â&#x2039;Â&#x2021;Â&#x2020;Â&#x2019;Â&#x2014;Â&#x201E;Â&#x17D;Â&#x2039;Â&#x2026;Â&#x192;Â&#x2026;Â&#x2026;Â&#x2018;Â&#x2014;Â?Â&#x2013;Â&#x192;Â?Â&#x2013;Â&#x2022;ǯǤdz â&#x20AC;&#x153;Yes,   you   are   an   essential   part   of   our   society,   and,   with   your   moral   sense   of   social   responsibility   guiding   your   character,   you   are   invaluable,â&#x20AC;?   Sheikh     Nahayan  said. The   Minister   showered   plaudits   on   ICAEW   for   the   meticulous   planning   of   the   awards   event,   saying   with   over   138,000   members   worldwide,   the   Institute   operates   with   great   authority   and   understanding   in   the   accountancy  f ield,  a nd  â&#x20AC;&#x153;serving  p eople   in   a   field   that   has   recently   been   too   often   represented   in   trust-­â&#x20AC;?destroying   headlines,   ICAEW   knows   that   there   is   no  s ubstitute  f or  e xcellence.â&#x20AC;?  

â&#x20AC;&#x153;Your challenge to be accountable to society mirrors that of our own UAE. Building a sustainable economy is our top policy priority.â&#x20AC;? our  environment   and   preserve   our   cultural   heritage.   That   cultural   heritage   Â&#x160;Â&#x192;Â&#x2022; Â&#x2020;Â&#x2021;Ď?Â&#x2039;Â?Â&#x2021;Â&#x2020; Â&#x2018;Â&#x2014;Â&#x201D; Â?Â&#x2018;Â&#x201D;Â&#x192;Â&#x17D; Â&#x2019;Â&#x201D;Â&#x2039;Â?Â&#x2026;Â&#x2039;Â&#x2019;Â&#x17D;Â&#x2021;Â&#x2022;Ǥ Â&#x2021; Â&#x2039;Â? the  UAE  must  honour  them  by  working  for   environmental  protection,  social  cohesion,   cultural   identity   and   quality   of   life.   We   must  earn  the  trust  and  respect  of  society   and  behave  in  a  fair  and  honest  manner.â&#x20AC;?   (JJV\U[HISL[VZVJPL[` Drawing   parallels   to   the   industry,   Sheikh   Nahayan   said;   â&#x20AC;&#x153;Like   you,   we   are   accountable   to   society,   committed   to   its   traditions  and  values  and  dedicated  to  our   vision  and  goals  for  its  future.â&#x20AC;?   The   ceremony   was   attended   by   leading   professionals   from   across   the   region   and   graced   by   Olympic   sporting   legend   and   London  Olympics  organiser  Lord  Sebastian   Coe,  who  was  the  keynote  speaker.   The   awards   were   spread   over   ten   categories   and   celebrated   the   very   best   of   Â&#x192;Â&#x2026;Â&#x2026;Â&#x2018;Â&#x2014;Â?Â&#x2013;Â&#x192;Â?Â&#x2026;Â&#x203A;Â&#x192;Â?Â&#x2020;Ď?Â&#x2039;Â?Â&#x192;Â?Â&#x2026;Â&#x2021;Â&#x2C6;Â&#x201D;Â&#x2018;Â?Â&#x2013;Â&#x160;Â&#x201D;Â&#x2018;Â&#x2014;Â&#x2030;Â&#x160;Â&#x2018;Â&#x2014;Â&#x2013; the   Middle   East,   where   winners   were   selected  by  a  judging  team  of  13  recognised  

KEYNOTE SPEAKER: Olympic sporting legend and London Olympics organiser Lord Sebastian Coe addresses dignitaries during the BXBSETFWFOU

â&#x20AC;&#x153;The  global   economy   depends   on   your   accuracy,   your   clarity,   your   candor,â&#x20AC;?   he   said,   adding,   â&#x20AC;&#x153;Your   challenge   to   be   accountable   to   society   mirrors   that   of   our   own   UAE.   Building   a   sustainable   economy   is   our   top   policy   priority.   Our   second   priority   is   a   balanced   and   Â&#x2020;Â&#x2039;Â&#x2DC;Â&#x2021;Â&#x201D;Â&#x2022;Â&#x2039;Ď?Â&#x2039;Â&#x2021;Â&#x2020; Â&#x2020;Â&#x2021;Â&#x2DC;Â&#x2021;Â&#x17D;Â&#x2018;Â&#x2019;Â?Â&#x2021;Â?Â&#x2013; Â&#x2013;Â&#x160;Â&#x192;Â&#x2013; Â&#x2122;Â&#x2039;Â&#x17D;Â&#x17D; Â&#x2021;Â?Â&#x2022;Â&#x2014;Â&#x201D;Â&#x2021; stability.   Those   priorities   speak   to   social   responsibility.  They  also  raise  other  issues   because,   while   we   increase   prosperity   and   eliminate   poverty,   we   know   that   our   actions   must   at   the   same   time   conserve   15


ACCOUNTANCY & FINANCE AWARDS

HELLO CELLO: Escala, an electronic string quartet from London, captivated the crowd with their NVTJDBMQSPXFTT

and  respected   industry   experts   from   Â&#x192;Â&#x2026;Â&#x2026;Â&#x2018;Â&#x2014;Â?Â&#x2013;Â&#x2039;Â?Â&#x2030;ÇĄĎ?Â&#x2039;Â?Â&#x192;Â?Â&#x2026;Â&#x2021;Â&#x192;Â?Â&#x2020;Â&#x201E;Â&#x2014;Â&#x2022;Â&#x2039;Â?Â&#x2021;Â&#x2022;Â&#x2022;Ǥ Peter  B eynon,  ICAEW  R egional  D irector   Middle  E ast,  s aid:  â&#x20AC;&#x153; It  h as  b een  e xcellent   to   have   the   chance   to   recognise   and   reward  the  very  best  of  our  profession   from  across  t he  M iddle  E ast.   The   vital   work   that   finance   professionals  do  t hroughout  t he  r egion   can   s ometimes   b e   overlooked   but   w ith   talented  p eople  l ike  t hese,  we  c an  a ll  do   business   with   increasing   confidence.   The   winners   should   be   extremely   proud  of  t heir  achievements.â&#x20AC;?   :\WLYPVYL_JLSSLUJLPUPUK\Z[Y` Among   the   winners   were   Mohammed   Alabbar   f rom   Emaar,   who   w as   awarded   Business   Leader   of   the   Year,   CFO   of   the   Year   Prasanth   Manghat   from   NMC   Health  a nd  Muhra  a l  Mulla  f rom  Deloitte,   who   was   crowned   Young   Accountant   of   the   Year.   PwC   won   Firm   of   the   Year,   while   Tamkeen   was   recognised   for   Excellence  i n  Training  a nd  Development   of  Finance  P rofessionals.   S u r y a   S u b r a m a n i a n ,   G r oup   C h i e f   Â&#x2039;Â?Â&#x192;Â?Â&#x2026;Â&#x2039;Â&#x192;Â&#x17D;Â&#x2C6;Ď?Â&#x2039;Â&#x2026;Â&#x2021;Â&#x201D;Â&#x2C6;Â&#x201D;Â&#x2018;Â?Â&#x17D;Â&#x192;Â&#x2013;Â&#x2039;Â?Â&#x2014;Â?Â&#x2022;Â&#x2019;Â&#x2018;Â?Â&#x2022;Â&#x2018;Â&#x201D;

Elvis Presley once said: â&#x20AC;&#x2DC;I have no use for bodyguards, but I have very specific use for two highly trained certified public accountantsâ&#x20AC;&#x2122;.

16 January 2013

Â? Â&#x2039; Â&#x201D; Â&#x192;Â&#x2013; Â&#x2021; Â&#x2022; ÇĄ Â&#x2022; Â&#x192; Â&#x2039;Â&#x2020;ÇŁ Dz  Â&#x160;Â&#x2021; Ď? Â&#x2039; Â? Â&#x192; Â?Â&#x2026;Â&#x2021; profession  in   t he   Middle   East   is   g rowing   and  becoming  stronger  every  year.  We   congratulate   all   the   winners   for   their   dedication   and   on   achieving   personal   excellence   whilst   also   helping   ensure   prosperity  for  t he  region.â&#x20AC;?   Â&#x2019;Â&#x2021;Â? Â&#x2013;Â&#x2018; Ď?Â&#x2039;Â?Â&#x192;Â?Â&#x2026;Â&#x2021; Â&#x2019;Â&#x201D;Â&#x2018;Â&#x2C6;Â&#x2021;Â&#x2022;Â&#x2022;Â&#x2039;Â&#x2018;Â?Â&#x192;Â&#x17D;Â&#x2022; Â&#x192;Â&#x2026;Â&#x201D;Â&#x2018;Â&#x2022;Â&#x2022; the   regional   business   community,   the   awards  recognise  those  individuals  and   organisations   who   have   demonstrated   Â&#x2022;Â&#x2014;Â&#x2019;Â&#x2021;Â&#x201D;Â&#x2039;Â&#x2018;Â&#x201D; Â&#x2021;Â&#x161;Â&#x2026;Â&#x2021;Â&#x17D;Â&#x17D;Â&#x2021;Â?Â&#x2026;Â&#x2021; Â&#x2039;Â? Â&#x2013;Â&#x160;Â&#x2021;Â&#x2039;Â&#x201D; Ď?Â&#x2039;Â&#x2021;Â&#x17D;Â&#x2020; Č&#x201A; Â&#x2122;Â&#x160;Â&#x2018; are  t he  very  best  in  what  t hey  do.   0*(,>RL`TPSLZ[VULZ Based   in   the   Dubai   Financial   Centre   (DIFC),  the  ICAEW  Middle  East  regional   Â&#x2018;Â&#x2C6;Ď?Â&#x2039;Â&#x2026;Â&#x2021;Â&#x2122;Â&#x192;Â&#x2022;Â&#x2018;Â&#x2019;Â&#x2021;Â?Â&#x2021;Â&#x2020;Â&#x2039;Â?ʹͲͲ͝Â&#x192;Â?Â&#x2020;Â&#x2019;Â&#x201D;Â&#x2018;Â&#x2DC;Â&#x2039;Â&#x2020;Â&#x2021;Â&#x2022; support   to   over   1,400   members   and   students,   and   works   closely   with   governments,   regulators   and   key   stakeholders.   The  a ssociationâ&#x20AC;&#x2122;s  r ecent  k ey  m ilestones   include   the   launch   of   the   ICAEW   Emiratisation   scholarship   scheme   to   attract   local   Emiratis   into   the   profession   and   responding   to   various   consultation   papers   on   proposed   changes   to   financial   structures   and   regulations  i n  t he  UAE.   ICAEW  also  assists  the  Dubai  Financial   Services   Authority   (DFSA)   with   audit   quality   monitoring,   and   produces   a   series   of   thought   leadership   and   technical  events  for  both  members  and   non  members,  w ithin  t he  G CC.  


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ACCOUNTANCY & FINANCE AWARDS

‘IT’S THE ULTIMATE CROWN’

For Chris Taylor, being declared the Middle East’s undisputed Chartered Accountant of the Year is a dream that has been several years in the making. After clinching the coveted honour at the ICAEW Accountancy and Finance Excellence Awards ceremony, the COO of Abu Dhabi Finance sat with Joyce Njeri for this revealing yet invigorating interview… Firstly, congratulations on your win at the ICAEW Middle East Accountancy and Finance Awards. How did you feel when you were called out to accept the award when you were up against other top class chartered accountants?

A.

To be  honest  my  immediate  reaction   was  surprise.  Having  seen  the  quality   of  the  attendees  and  nominees  at  the   event  I  was  pretty  sure  that  I  was  not   going   to   w in   t his   t ime   round.   My   surprise   t urned   pretty  quickly  to  concern  as  I  knew  Richard  Dean,   from   Dubai   Eye,   was   going   to   ask   me   some   tough   questions  on  accepting  the  award.  

18 January 2013

The competition   for   the   coveted   title   was   tough.   What   does   winning   the   Chartered   Accountant  of  t he  Year  Award  mean  to  you?   Winning  t he  award  means  t hree  t hings  to  me: 1.  It  is  recognition  for  a ll  of  t he  hard  work  t he  staff   at  Abu  Dhabi  Finance  have  put  into  improving  our   business  performance  during  2012;   2.   It   made   me   very   proud   to   be   recognised   by   the  ICAEW.    I  have  been  a  member  of  the  ICAEW   since   1995   and   have   been   extremely   happy   to   •‡‡ƒŽŽ‘ˆ–Š‡‹”‡ˆˆ‘”–•‹‡Šƒ…‹‰–Š‡’”‘ϐ‹Ž‡‘ˆ Chartered  Accountants  in  the  Middle  East  in  the   last  couple  of  years.  

Did you   know   you   were   shortlisted   for   the   award,  or  was  it  a  surprise?  

3.†ϐ‹ƒŽŽ›ǡ ǯŠƒ’’›–Šƒ– Šƒ†’ƒ‹†›ƒ—ƒŽ subscription for  t his  year,  on  t ime.

I k new  I  was  shortlisted  and  I  was  a lready  excited   as  I  hoped  to  meet  my  all-­‐time  sports  hero,  Lord   Sebastian  Coe,  at  t he  event.

Going back  in  t ime  now,  share  w ith  us  why  you   ‡–‡”‡†–Š‡ƒ™ƒ”†‹–Š‡ϐ‹”•–’Žƒ…‡ƒ†™Šƒ– you  were  hoping  to  achieve.  


ACCOUNTANCY & FINANCE AWARDS

It is the fundamental role of the COO to provide support to the Board and CEO, to ensure that the strategic vision and mission of Abu Dhabi Finance is successfully implemented and accomplished.

19


ACCOUNTANCY & FINANCE AWARDS

I am not sure winning the award will encourage me to do anything differently in 2013, however I hope that it inspires all ADF staff to increase their efforts as it shows that even a relatively small company can achieve great things. We  entered   for   the   award   because   we   are   so   proud  of  everything  we  have  achieved  at  ADF   during   2012,   including   â&#x20AC;&#x201C;   improved   business   per for ma nce,   excel lent   c u s t omer   ser v ice,   r i g o r o u s   r i s k   m a n a g e m e n t ,   a n d   s m o o t h   internal  processes  â&#x20AC;&#x201C;  that  we  wanted  to  share   our   achievement s   w it h   t he   w ider   business   communit y.     The   ICAEW   awards   seemed   an   excellent  opportunity  to  do  t hat.   The   following   day   when   you   went   back   to   Abu   Dhabi,   how   did   you   share   the   news   with  y our  c olleagues?  A nd  h ow  d id  y ou  a s  a   team   c elebrate?   Â&#x2013;   Â&#x2122;Â&#x2021; Â&#x160;Â&#x2018;Â&#x17D;Â&#x2020; Â&#x192; Â&#x2122;Â&#x2021;Â&#x2021;Â?Â&#x17D;Â&#x203A; ÇŽÂ&#x160;Â&#x2014;Â&#x2020;Â&#x2020;Â&#x17D;Â&#x2021;ÇŻÇĄ Â&#x17D;Â&#x2039;Â?Â?Â&#x2039;Â?Â&#x2030; Â&#x2018;Â&#x2014;Â&#x201D; Â&#x2018;Â&#x2C6;Ď?Â&#x2039;Â&#x2026;Â&#x2021;Â&#x2022;Â&#x2DC;Â&#x2039;Â&#x192;Â&#x2DC;Â&#x2039;Â&#x2020;Â&#x2021;Â&#x2018;Â&#x2026;Â&#x2018;Â?Â&#x2C6;Â&#x2021;Â&#x201D;Â&#x2021;Â?Â&#x2026;Â&#x2021;ÇĄÂ&#x2122;Â&#x160;Â&#x2021;Â&#x201D;Â&#x2021;Â&#x2122;Â&#x2021;Â&#x2026;Â&#x2021;Â&#x17D;Â&#x2021;Â&#x201E;Â&#x201D;Â&#x192;Â&#x2013;Â&#x2021;

our  successes   and   share   our   areas   of   focus   and   Â&#x2018;Â&#x2014;Â&#x201D; Â&#x2026;Â&#x160;Â&#x192;Â&#x17D;Â&#x17D;Â&#x2021;Â?Â&#x2030;Â&#x2021;Â&#x2022; Â&#x2C6;Â&#x2018;Â&#x201D; Â&#x2013;Â&#x160;Â&#x2021; Â&#x2122;Â&#x2021;Â&#x2021;Â? Â&#x192;Â&#x160;Â&#x2021;Â&#x192;Â&#x2020;Ǥ  Ď?Â&#x2039;Â?Â&#x2020; Â&#x2039;Â&#x2013; Â&#x192; very   effective   tool   to   ensure   members   of   staff   are   recognised   for   their   efforts   and   we   stay   on   track   in   terms   of   the   company   and   individual   objectives.   I   am   pretty   sure   that   the   ADF   Head   of   Finance   had   posted   t he   news   on   various   social   networking   sites   before   the   end   of   the   evening   though.  We  celebrated  w ith  a  team  lunch. Now   that   you   have   been   declared   the   Chartered  Accountant  of  t he  Year,  what  would   you   do   differently   in   2013?   How   would   you   describe  your  mission  in  t he  profession?   I  am  not  sure  winning  the  award  will  encourage   me  to  do  anything  differently  in  2013,  however  I   hope  t hat  it  inspires  a ll  A DF  staff  to  increase  t heir   efforts   as   it   shows   that   even   a   relatively   small   company   can   achieve   great   things.   The   values   which  t he  ICAEW  enshrines  â&#x20AC;&#x201C;  particularly  around   transparency  and  integrity  â&#x20AC;&#x201C;  are  values  which  are   at  the  core  of  the  ADF  customer  service  offering   and   I   therefore   hope   the   awareness   encourages   us  to  continue  to  act  as  a  catalyst  in  the  banking   Â&#x192;Â?Â&#x2020;Ď?Â&#x2039;Â?Â&#x192;Â?Â&#x2026;Â&#x2039;Â&#x192;Â&#x17D;Â&#x2022;Â&#x2021;Â&#x201D;Â&#x2DC;Â&#x2039;Â&#x2026;Â&#x2021;Â&#x2022;Â&#x2022;Â&#x2021;Â&#x2026;Â&#x2013;Â&#x2018;Â&#x201D;Â&#x2039;Â?Â&#x2013;Â&#x160;Â&#x2021;Ǥ Â&#x201E;Â&#x2021;Â&#x17D;Â&#x2039;Â&#x2021;Â&#x2DC;Â&#x2021; my   mission   is   the   same   as   any   other   member   of   the   ICAEW   â&#x20AC;&#x201C;   to   always   act   with   integrity   and   transparency  and  to  use  your  skills  to  improve  t he   business  performance  of  whichever  organisation   you  work  w ith. Who   has   been   your   mentor   throughout   your   c areer?   I  have  had  different  mentors  in  my  professional   career.     I   started   my   career   with   Deloitte   in   Â&#x2013;Â&#x160;Â&#x2021;  Â&#x2122;Â&#x160;Â&#x2021;Â&#x201D;Â&#x2021;  Â&#x2122;Â&#x192;Â&#x2022; Â&#x17D;Â&#x2014;Â&#x2026;Â?Â&#x203A; Â&#x2021;Â?Â&#x2018;Â&#x2014;Â&#x2030;Â&#x160; Â&#x2013;Â&#x2018; Â&#x160;Â&#x192;Â&#x2DC;Â&#x2021; Â&#x2013;Â&#x160;Â&#x201D;Â&#x2021;Â&#x2021; mentors  during  my  t ime  t here  â&#x20AC;&#x201C;  Steve  Wilkinson,   Les   Platt   and   Sharon   Thorne.   All   three   were   completely  different  characters.    I  learnt  so  much   in   my   six   years   there   which   have   helped   me   in   my   career   to   date.   The   breadth   of   opportunity   Â&#x2018;Â&#x2C6;Â&#x2C6;Â&#x2021;Â&#x201D;Â&#x2021;Â&#x2020;Â&#x2013;Â&#x2018;Â?Â&#x2021;Â&#x192;Â&#x2013;Â&#x2013;Â&#x160;Â&#x2021;Ď?Â&#x2039;Â&#x201D;Â?ÇĄÂ&#x192;Â&#x17D;Â&#x2018;Â?Â&#x2030;Â&#x2122;Â&#x2039;Â&#x2013;Â&#x160;Â&#x2013;Â&#x160;Â&#x2021;Â&#x2021;Â&#x161;Â&#x2026;Â&#x2021;Â&#x17D;Â&#x17D;Â&#x2021;Â?Â&#x2013; training   and   practical   experience   really   put   me   in  a  great  position  to  have  a  successful  career  in   Financial  Services.   Â&#x2022; Â&#x2013;Â&#x160;Â&#x2021; Â&#x160;Â&#x2039;Â&#x2021;Â&#x2C6; Â&#x2019;Â&#x2021;Â&#x201D;Â&#x192;Â&#x2013;Â&#x2039;Â?Â&#x2030; Â&#x2C6;Ď?Â&#x2039;Â&#x2026;Â&#x2021;Â&#x201D; Â&#x2018;Â&#x2C6; Â&#x201E;Â&#x2014; Â&#x160;Â&#x192;Â&#x201E;Â&#x2039; Finance  what  does  your  work  entail?   My  role  is  very  broad  â&#x20AC;&#x201C;  which  is  one  of  t he  t hings   I   love   about   it.   I   have   responsibility   for   Finance,   Risk   Management,   Client   Care   and   Quality   Assurance,   Human   Resources,   Operations,   IT   and   Change   Management.   Therefore   each   day  

20 January 2013


ACCOUNTANCY & FINANCE AWARDS

can  include   staff   development   issues,   client   service   improvements,   Information   Security   Â&#x2014;Â&#x2019;Â&#x2020;Â&#x192;Â&#x2013;Â&#x2021;Â&#x2022;ÇĄĎ?Â&#x2039;Â?Â&#x192;Â?Â&#x2026;Â&#x2039;Â&#x192;Â&#x17D;Â&#x2019;Â&#x2021;Â&#x201D;Â&#x2C6;Â&#x2018;Â&#x201D;Â?Â&#x192;Â?Â&#x2026;Â&#x2021;Â&#x201D;Â&#x2021;Â&#x2DC;Â&#x2039;Â&#x2021;Â&#x2122;Â&#x2022;ÇĄÂ&#x2019;Â&#x201D;Â&#x2018;Â&#x2020;Â&#x2014;Â&#x2026;Â&#x2013; enhancements   among   others.   Overall   though,   I   see  my  role  as  one  of  strategic  leadership,  as  I  see   it,  the  fundamental  role  of  the  COO  is  to  provide   support  to  the  Board  and  CEO  to  ensure  that  the   strategic  v ision  and  mission  of  A DF  is  successfully   implemented  and  accomplished. What   are   the   best   and   worst   things   about   your  job?   The   best   things   about   my   job   are   the   people   I   work   with   and   the   breadth   of   the   role.   From   working   with   the   ADF   Board   of   Directors   on   strategy  and  governance,  through  to  mentoring   our   talented   Emirati   staff,   to   ensure   they   are   developing   along   the   lines   of   their   career   development   plans,   no   day   i s   ever   t he   same.   T he   most   challenging   part   of   the   role   is   the   same   Â&#x192;Â&#x2022; Â?Â&#x2018;Â&#x2022;Â&#x2013; Â&#x2021;Â&#x161;Â&#x2021;Â&#x2026;Â&#x2014;Â&#x2013;Â&#x2039;Â&#x2DC;Â&#x2021;Â&#x2022; Č&#x201A; Ď?Â&#x2039;Â?Â&#x2020;Â&#x2039;Â?Â&#x2030; Â&#x2013;Â&#x160;Â&#x2021; Â&#x201D;Â&#x2039;Â&#x2030;Â&#x160;Â&#x2013; Â&#x2122;Â&#x2018;Â&#x201D;Â?Č&#x20AC; life   balance   and   ensuring   enough   time   in   the   working   day   is   spent   on   strategic   issues   and   Â&#x2C6;Â&#x2018;Â&#x201D;Â&#x2122;Â&#x192;Â&#x201D;Â&#x2020;Â&#x2019;Â&#x17D;Â&#x192;Â?Â?Â&#x2039;Â?Â&#x2030;Â&#x192;Â&#x2022;Â&#x2018;Â&#x2019;Â&#x2019;Â&#x2018;Â&#x2022;Â&#x2021;Â&#x2020;Â&#x2013;Â&#x2018;Ď?Â&#x2039;Â&#x201D;Â&#x2021;Ď?Â&#x2039;Â&#x2030;Â&#x160;Â&#x2013;Â&#x2039;Â?Â&#x2030;Ǥ Please   share   with   us   your   key   career   moments   in   the   journey   to   becoming   a   Chartered  Accountant.     Well   I   took   an   interesting   path   to   becoming   a   Chartered  Accountant.  I  really  wanted  to  emulate   Sebastian  Coe  and  become  an  Olympic  800  metre   champion   but   a   combination   of   injuries   and   lack   of   talent   made   me   realise   I   had   to   choose   a   Â?Â&#x2018;Â&#x201D;Â&#x2021; ÇŽÂ&#x2022;Â&#x2021;Â?Â&#x2022;Â&#x2039;Â&#x201E;Â&#x17D;Â&#x2021;ÇŻ Â&#x2018;Â&#x2026;Â&#x2026;Â&#x2014;Â&#x2019;Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â?Ǥ  Â&#x192;Â&#x2026;Â&#x2013;Â&#x2014;Â&#x192;Â&#x17D;Â&#x17D;Â&#x203A; Â&#x2022;Â&#x2013;Â&#x2014;Â&#x2020;Â&#x2039;Â&#x2021;Â&#x2020; Geography   as   my   undergraduate   degree,   where   I   specialised   in   the   geographical   distribution   of   crime.   Perhaps   more   relevant   than   I   thought,   Â&#x2030;Â&#x2039;Â&#x2DC;Â&#x2021;Â?Â&#x2022;Â&#x2018;Â?Â&#x2021;Â&#x2018;Â&#x2C6;Â&#x2013;Â&#x160;Â&#x2021;Â&#x160;Â&#x2039;Â&#x2030;Â&#x160;Â&#x2019;Â&#x201D;Â&#x2018;Ď?Â&#x2039;Â&#x17D;Â&#x2021;Â&#x192;Â&#x2026;Â&#x2026;Â&#x2018;Â&#x2014;Â?Â&#x2013;Â&#x2039;Â?Â&#x2030;Â&#x2C6;Â&#x201D;Â&#x192;Â&#x2014;Â&#x2020;Â&#x2022; we   have   witnessed   in   the   corporate   world   in   the   last   few   years.   During   the   career   fairs   at   Â&#x2039;Â&#x2DC;Â&#x2021;Â&#x201D;Â&#x2019;Â&#x2018;Â&#x2018;Â&#x17D; Â?Â&#x2039;Â&#x2DC;Â&#x2021;Â&#x201D;Â&#x2022;Â&#x2039;Â&#x2013;Â&#x203A;  Â&#x2122;Â&#x192;Â&#x2022; Â&#x201D;Â&#x2021;Â&#x192;Â&#x17D;Â&#x17D;Â&#x203A; Â&#x2039;Â?Â&#x2019;Â&#x201D;Â&#x2021;Â&#x2022;Â&#x2022;Â&#x2021;Â&#x2020; Â&#x201E;Â&#x203A; Â&#x2013;Â&#x160;Â&#x2021;Â&#x2019;Â&#x201D;Â&#x2021;Â&#x2022;Â&#x2021;Â?Â&#x2013;Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â?Â&#x2022;Â?Â&#x192;Â&#x2020;Â&#x2021;Â&#x201E;Â&#x203A;Â&#x2013;Â&#x160;Â&#x2021;ÇŽÂ&#x2039;Â&#x2030;͜ǯÂ&#x2026;Â&#x2026;Â&#x2018;Â&#x2014;Â?Â&#x2013;Â&#x2039;Â?Â&#x2030; Firms   and   in   particular   Deloitte.   The   quality   of   the  accounting  t rainees  and  managers  presenting   at   t he   event   (including   Sharon,   who   later   became   one  of  my  mentors)  persuaded  me  t hat  t hree  years   of   training   to   become   a   Chartered   Accountant   seemed  a  good  investment.   I   had   always   been   pretty   comfortable   with   numbers   and   economics   and   thought   I   would   Â&#x201E;Â&#x2021; Â&#x192; Â?Â&#x192;Â&#x2013;Â&#x2014;Â&#x201D;Â&#x192;Â&#x17D; Ď?Â&#x2039;Â&#x2013;Ǥ Â&#x2039;Â?Â&#x2020; Â&#x203A;Â&#x2018;Â&#x2014;ÇĄ Â&#x2013;Â&#x160;Â&#x2021; Ď?Â&#x2039;Â&#x201D;Â&#x2022;Â&#x2013; Â&#x2013;Â&#x2122;Â&#x2018; Â&#x2122;Â&#x2021;Â&#x2021;Â?Â&#x2022; of   intense   book-­â&#x20AC;?keeping   training   which   I   went   through  did  make  me  have  one  or  two  moments  

where  I   reconsidered   my   decision.   Nonetheless   I   am   pleased   to   say   I   achieved   1st   time   passes   Â&#x2039;Â? Â&#x192;Â&#x17D;Â&#x17D; Â&#x2018;Â&#x2C6; Â?Â&#x203A; Â&#x2021;Â&#x161;Â&#x192;Â?Â&#x2022; Â&#x192;Â?Â&#x2020; Â&#x2039;Â? ͳ͝͝ͺ Â&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;Ď?Â&#x2039;Â&#x2021;Â&#x2020; Â&#x192;Â&#x2022; Â&#x192; Chartered  Accountant.     In  total  I  spent  six  g reat  years  at  Deloitte  â&#x20AC;&#x201C;  working   in   the   Assurance,   Management   Consulting,   and   Corporate   Finance   departments.     I   was   even   Â&#x17D;Â&#x2014;Â&#x2026;Â?Â&#x203A; Â&#x2021;Â?Â&#x2018;Â&#x2014;Â&#x2030;Â&#x160; Â&#x2013;Â&#x2018; Â&#x201E;Â&#x2021; Â&#x2022;Â&#x2021;Â&#x2026;Â&#x2018;Â?Â&#x2020;Â&#x2021;Â&#x2020; Â&#x2013;Â&#x2018; Â&#x2013;Â&#x160;Â&#x2021; Â&#x160;Â&#x2021;Â&#x192;Â&#x2020; Â&#x2018;Â&#x2C6;Ď?Â&#x2039;Â&#x2026;Â&#x2021; in   New   York   for   t hree   months   where   I   worked   on   developing  t he  Deloitte  audit  methodologies,  w ith   a  focus  on  value-­â&#x20AC;?added  auditing. On   the   same   issue,   the   role   of   accountants   Â&#x160;Â&#x192;Â&#x2022; Â&#x201E;Â&#x201D;Â&#x2018;Â&#x192;Â&#x2020;Â&#x2021;Â?Â&#x2021;Â&#x2020;Ǥ Â&#x2018;Â&#x2122; Â&#x2039;Â&#x2013;ĚľÂ&#x2022; Â?Â&#x2018;Â&#x2013; Â&#x2018;Â?Â&#x17D;Â&#x203A; Â&#x2026;Â&#x2018;Â?Ď?Â&#x2039;Â?Â&#x2021;Â&#x2020; Â&#x2013;Â&#x2018; technical,   but   also   advisory   and   corporate   strategy.   Can   you   share   with   us   about   these   changing  roles  in  todayâ&#x20AC;&#x2122;s  globalised  world?   I   agree   that   the   role   of   the   accountant   has   Â&#x2026;Â&#x160;Â&#x192;Â?Â&#x2030;Â&#x2021;Â&#x2020;Â&#x2C6;Â&#x201D;Â&#x2018;Â?ÇŽÂ&#x201E;Â&#x2018;Â&#x2018;Â?ÇŚÂ?Â&#x2021;Â&#x2021;Â&#x2019;Â&#x2021;Â&#x201D;ÇŻÂ&#x2013;Â&#x2018;ÇŽÂ&#x2022;Â&#x2013;Â&#x201D;Â&#x192;Â&#x2013;Â&#x2021;Â&#x2030;Â&#x2039;Â&#x2026;Â&#x192;Â&#x2020;Â&#x2DC;Â&#x2039;Â&#x2022;Â&#x2018;Â&#x201D;ÇŻÇĄ although  I  t hink  t hat  most  professions  have  found   expectations   increasing   in   recent   years.   It   is   a   great  honour  and  challenge  and  I  think  it  makes   the   profession   and   a   career   in   Finance   a   very   promising  proposition.   I   think   the   ICAEW   is   doing   a   great   job   of   providing   support   to   chartered   accountants   across   the   globe   in   balancing   this   new   role.   It   is   i mportant   t hough   f or   accountants   t o   b e   very   clear  i n  w hat  t heir  r ole  i s  w ithin  a n  organisation   and   ensure   an   appropriate   balance   is   in   place   21


ACCOUNTANCY & FINANCE AWARDS

The best things about my job are the people I work with and the breadth of the role, from working with the ADF Board of Directors on strategy and governance through to mentoring our talented Emirati staff. so t hat  t hey  c an  a chieve  a ll  of  t he  g oals  l aid  out   for  t hem.   In   other   words   there   is   no   point   being   a   great   strategic  advisor  t o  t he  c ompany  i f  t he  basics  i n   terms   of   management   information,   accounting   ƒ† ϐ‹ƒ…‹ƒŽ ”‡’‘”–‹‰ ƒ† ”‡‰—Žƒ–‘”› ϐ‹Ž‹‰• are   not   in   place.   Therefore   my   message   would   be...   ensure   you   get   the   basics   right   and   then   look   to   adding   value   through   the   strategic   advisor  r ole. I   also   have   to   mention   that   the   operational   challenges  f aced  b y  t he  a ccountancy  p rofession   have   increased   in   recent   years.   Complicated   products,   increasing   layers   of   regulation   and   reporting   requirements,   probably   down-­‐ sizing  i n  t erms  o f  f inance  f unctions  r esources,   increasingly   international   operations,   increased   l evels   o f   d isclosure   a nd   h eightened   levels   of   analysis   of   financial   information   by   regulators,   investors,   regulators,   and   media  

CORPORATE TITBIT: Common values and goals are what drives a team's performance and helps to ensure they work together to support the company in achieving its aims.

have all   served   to   increase   pressure   on   getting   the   numbers   right   in   a   quicker   time   than   e ver   b efore.     Organisations   are   becoming   more   and   more   complicated   and   diverse   in   their   operations   and   ϐ‹ƒ…‡ –‡ƒ• ‡‡† –‘ ™‘” Šƒ”† –‘ •–ƒ› ƒŠ‡ƒ† of  t he  c urve.  For  me  one  of  t he  biggest  challenges   is   meeting   the   basic   accounting   and   reporting   requirements   whilst   at   the   same   time   ensuring   the   Finance   team   is   able   to   provide   value   added   proactive  business  advice. What   advice   would   you   give   to   your   peers   in   terms  of  minimising  reporting  mistakes?   Reporting   mistakes   can   cause   a   lot   of   damage   to   an   organisation   –   it   can   lead   to   the   wrong   decisions   being   made   and   also   reputations   †ƒƒ‰‡ǤŠ‡”‡ˆ‘”‡‹–ǯ•‹’‡”ƒ–‹˜‡–Šƒ–›‘—Ǣ  •—”‡ ›‘—” ϐ‹ƒ…‹ƒŽ ƒ……‘—–‹‰ ƒ† ”‡’‘”–‹‰ •›•–‡• ƒ”‡ ”‘… •‘Ž‹† ƒ† ϐ‹– ˆ‘” purpose.   Many   functions   still   rely   on   manual   workarounds   to   cope   with   their   everyday   reporting   requirements.   At   ADF,   for   example,   I   am   very   proud   to   say   we   have   implemented   a   fully   automated   IFRS   compliant   Oracle   solution   ˆ‘” ‘—” ‡–‹”‡ ’”‘†—…– ”ƒ‰‡Ǥ —” ϐ‹ƒ…‹ƒŽ reporting   system   interfaces   with   our   Lending   system   to   produce   IFRS   compliant   reporting   with  no  need  for  manual  intervention.  We  close   our   books   on   Day   2   after   month   end   and   were   recognised   by   Banker   Middle   East   Industry   ™ƒ”†• ˆ‘” ‡•– •‡ ‘ˆ ‡…Š‘Ž‘‰› ˆ‘” –Š‹• implementation  i n  2011.    Ensure  you  understand  the  bigger  picture  –  if   ›‘—†‘ǯ–Šƒ˜‡ƒ‹†‡’–Š—†‡”•–ƒ†‹‰‘ˆ›‘—” products,  your  market  and  the  economic  picture   –Š‡›‘—™‹ŽŽϐ‹†‹–†‹ˆϐ‹…—Ž––‘”‡ƒŽŽ›‡•—”‡–Šƒ– ›‘—”ϐ‹ƒ…‹ƒŽ”‡’‘”–‹‰‹•ƒ……—”ƒ–‡Ǥ   Budget   –   be   rigorous   in   your   budget   process.   This  w ill  act  as  your  sense  check  when  comparing   actual  results  to  budget.  If  your  budget  process  is   weak  t hen  your  benchmark  is  poor,  making  it  t hat   much  harder  to  spot  any  errors.     Quality   staff   and   systems   –   invest   heavily   in   hiring   and   developing   the   best   team   you   can   afford.    Review  time  –  set  aside  enough  quality  review   –‹‡–‘‡•—”‡–Šƒ–ƒ›•‹‰‹ϐ‹…ƒ–‹•–ƒ‡•…ƒ „‡•’‘––‡†ƒ†”‡…–‹ϐ‹‡†„‡ˆ‘”‡’—„Ž‹…ƒ–‹‘Ǥ

22 January 2013


ACCOUNTANCY & FINANCE AWARDS

As  a   top   Chartered   Accountant   how   much   Â&#x2020;Â&#x2021;Â?Â&#x192;Â?Â&#x2020; Â&#x2020;Â&#x2018; Â&#x203A;Â&#x2018;Â&#x2014; Â&#x2C6;Â&#x2018;Â&#x201D;Â&#x2021;Â&#x2022;Â&#x2021;Â&#x2021; Â&#x2C6;Â&#x2018;Â&#x201D; Â&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;Ď?Â&#x2039;Â&#x2021;Â&#x2020; Â&#x192;Â&#x2026;Â&#x2026;Â&#x2018;Â&#x2014;Â?Â&#x2013;Â&#x192;Â?Â&#x2013;Â&#x2022; Â&#x2039;Â? Â&#x2013;Â&#x160;Â&#x2021; Â&#x2039;Â&#x2020;Â&#x2020;Â&#x17D;Â&#x2021; Â&#x192;Â&#x2022;Â&#x2013; Â&#x201D;Â&#x2021;Â&#x2030;Â&#x2039;Â&#x2018;Â? Â&#x2039;Â? Ď?Â&#x2039;Â&#x2DC;Â&#x2021; years   time?   For   instance,   what   particular   skills   will   be   most   in   demand?   And   how   will   Â&#x201E;Â&#x2014;Â&#x2022;Â&#x2039;Â?Â&#x2021;Â&#x2022;Â&#x2022;Â&#x2021;Â&#x2022; Â&#x2039;Â? Â&#x2013;Â&#x160;Â&#x2021; Â&#x201D;Â&#x2021;Â&#x2030;Â&#x2039;Â&#x2018;Â? Â&#x2026;Â&#x160;Â&#x192;Â?Â&#x2030;Â&#x2021; Â&#x2039;Â? Ď?Â&#x2039;Â&#x2DC;Â&#x2021; Â&#x203A;Â&#x2021;Â&#x192;Â&#x201D;Â&#x2022; as  a  result  of  t he  g lobal  economic  downturn?     I   hope   that   demand   increases   for   Chartered   Accountants   in   the   Middle   East   over   the   next   Ď?Â&#x2039;Â&#x2DC;Â&#x2021; Â&#x203A;Â&#x2021;Â&#x192;Â&#x201D;Â&#x2022;Ǥ Â&#x160;Â&#x2021; Â&#x2021;Â&#x2026;Â&#x2018;Â?Â&#x2018;Â?Â&#x2039;Â&#x2026; Â&#x2019;Â&#x2021;Â&#x201D;Â&#x2C6;Â&#x2018;Â&#x201D;Â?Â&#x192;Â?Â&#x2026;Â&#x2021; Â&#x2018;Â&#x2C6; Â&#x2013;Â&#x160;Â&#x2021; region   is   improving   along   with   an   increase   in   regulatory  reform,  t ransparency  and  governance   Â&#x201D;Â&#x2021;Â&#x201C;Â&#x2014;Â&#x2039;Â&#x201D;Â&#x2021;Â?Â&#x2021;Â?Â&#x2013;Â&#x2022; Â&#x2122;Â&#x160;Â&#x2039;Â&#x2026;Â&#x160; Â&#x2022;Â&#x160;Â&#x2018;Â&#x2014;Â&#x17D;Â&#x2020; Â?Â&#x2021;Â&#x192;Â? Â&#x2122;Â&#x2021;Â&#x17D;Â&#x17D; Â&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;Ď?Â&#x2039;Â&#x2021;Â&#x2020; accountants  are  in  demand.   Companies   and   government   will   be   looking   to   Â&#x2122;Â&#x2021;Â&#x17D;Â&#x17D; Â&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;Ď?Â&#x2039;Â&#x2021;Â&#x2020; Â&#x2026;Â&#x192;Â?Â&#x2020;Â&#x2039;Â&#x2020;Â&#x192;Â&#x2013;Â&#x2021;Â&#x2022; Â&#x2122;Â&#x2039;Â&#x2013;Â&#x160; Â&#x2039;Â?Â&#x2013;Â&#x2021;Â&#x201D;Â?Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â?Â&#x192;Â&#x17D; experience   who   can   add   value   to   their   organisations.   Businesses   in   the   region   have   already   changed   as   a   result   of   the   downturn.   Firstly  they  are  shifting  their  focus  from  West  to   East  as  it  becomes  clear  t hat  t he  A sian  economies   are   likely   to   outperform   Europe   in   the   future.   Secondly  t here  is  a  g reater  level  of  understanding   at   a   Board   level   of   the   importance   of   effective   Ď?Â&#x2039;Â?Â&#x192;Â?Â&#x2026;Â&#x2039;Â&#x192;Â&#x17D; Â&#x201D;Â&#x2039;Â&#x2022;Â? Â?Â&#x192;Â?Â&#x192;Â&#x2030;Â&#x2021;Â?Â&#x2021;Â?Â&#x2013; Â&#x192;Â?Â&#x2020; Â&#x192;Â&#x2022;Â&#x2022;Â&#x2018;Â&#x2026;Â&#x2039;Â&#x192;Â&#x2013;Â&#x2021;Â&#x2020; governance  standards.   Accountants  who  have  experience  of  international   markets,  who  have  managed  t hrough  a  downturn   should  be  well  placed  in  t he  job  market. What  is  most  important  to  you  as  an  accountant   when   it   comes   to   building   a   successful   accounting  team  in  your  organisation?   For  me  it  does  not  matter  what  kind  of  team  you   are   trying   to   build   â&#x20AC;&#x201C;   HR,   accounting,   business   development   and   the   like.   The   most   important   thing   is   that   the   team   shares   a   common   set   of   values   and   is   clear   about   the   objectives   of   the   organisation  and  t heir  own  team.  

company  scorecard   into   individual   goals.   I   am   pleased   to   say   that   since   introducing   these   concepts   we   have   outperformed   against   budget   and  2012  has  been  a  record  year  for  us  in  terms  of   business  performance. What   are   some   of   your   favourite   gadgets,   apps,   tools,   and   products   -­â&#x20AC;?   especially   related   to  social  media?   I   like   the   Balanced   Scorecard   app   in   the   iPad   and   also   use   an   efficiency   tool   called   ÇŽÂ&#x2021;Â&#x2022;Â&#x2026;Â&#x2014;Â&#x2021;Â&#x2039;Â?Â&#x2021; Â&#x2018;Â&#x201E;Â&#x2018;Â&#x2013;ÇŻ Â&#x2122;Â&#x160;Â&#x2039;Â&#x2026;Â&#x160; Â&#x160;Â&#x2021;Â&#x17D;Â&#x2019;Â&#x2022; Â?Â&#x2021; Â?Â&#x2018;Â?Â&#x2039;Â&#x2013;Â&#x2018;Â&#x201D; where   I   spend   my   time.     I   think   LinkedIn   is   a   great   networking   resource   and   our   HR   team   uses   it   heavily   for   recruiting.     I   try   and   keep   up  with  trends  using  Twitter  and  stay  in  touch   with  old  f riends  on  Facebook.   How   do   you   spend   your   free   time?   What   are   your  sporting  interests,  if  any?   I   love   competitive  sports  â&#x20AC;&#x201C;   I   used   to   compete  at   a   pretty  high  level  in  Middle  Distance  running  and   Â&#x2022;Â&#x2039;Â?Â&#x2026;Â&#x2021;Â?Â&#x2018;Â&#x2DC;Â&#x2039;Â?Â&#x2030;Â&#x2013;Â&#x2018;Â&#x2013;Â&#x160;Â&#x2021;ÇĄÂ&#x160;Â&#x192;Â&#x2DC;Â&#x2021;Â&#x2013;Â&#x192;Â?Â&#x2021;Â?Â&#x2014;Â&#x2019;Â&#x201D;Â&#x2039;Â&#x192;Â&#x2013;Â&#x160;Â&#x17D;Â&#x2018;Â?Ǥ I  competed  in  t he  Abu  Dhabi  Triathlon  for  t he  last   couple  of  years.    I  enjoy  the  social  element  of  the   training  and  the  competitive  nature  of  the  sport.     I   also   enjoy   watersports,   tennis,   travelling   with   my  w ife  Tunde  and  swimming  w ith  my  daughters,   Catrin  and  Maddie.    We  had  an  amazing  adventure   in   Sri   Lanka   earlier   in   2012   and   I   would   really   recommend   a   trip   there   to   anyone   â&#x20AC;&#x201C;   it   is   an   amazing  and  f riendly  country.  

FAMILY SUPPORT: Chris Taylor with his wife Tunde, during one of the family holidays abroad.

Common  values   and   common   goals   are   what   Â&#x2020;Â&#x201D;Â&#x2039;Â&#x2DC;Â&#x2021;Â&#x2022;Â&#x192;Â&#x2013;Â&#x2021;Â&#x192;Â?ÇŻÂ&#x2022;Â&#x2019;Â&#x2021;Â&#x201D;Â&#x2C6;Â&#x2018;Â&#x201D;Â?Â&#x192;Â?Â&#x2026;Â&#x2021;Â&#x192;Â?Â&#x2020;Â&#x160;Â&#x2021;Â&#x17D;Â&#x2019;Â&#x2022;Â&#x2013;Â&#x2018;Â&#x2021;Â?Â&#x2022;Â&#x2014;Â&#x201D;Â&#x2021; they   work   together   to   support   the   company   in   achieving   its   aims.   At   ADF   we   have   four   very   clearly   stated   values   â&#x20AC;&#x201C;   One   Team,   One   Goal;   Continuous   Improvement;   Valuing   our   Community;  and  Passion  for  Our  Clients.  We  have   a  values  recognition  programme,  and  I  t alk  about   the   values   at   every   gathering   of   our   company.   Â&#x2021;Â&#x2014;Â&#x2022;Â&#x2021;Â&#x192;ÇŽÂ&#x2039;Â&#x2013;Â&#x2021;ÇŻÂ&#x2DC;Â&#x2021;Â&#x201D;Â&#x2022;Â&#x2039;Â&#x2018;Â?Â&#x2018;Â&#x2C6;Â&#x2013;Â&#x160;Â&#x2021;Â&#x192;Â&#x17D;Â&#x192;Â?Â&#x2026;Â&#x2021;Â&#x2020;Â&#x2026;Â&#x2018;Â&#x201D;Â&#x2021;Â&#x2026;Â&#x192;Â&#x201D;Â&#x2020; methodology   to   ensure   everyone   is   clear   about    ÇŻÂ&#x2022; Â&#x2018;Â&#x2DC;Â&#x2021;Â&#x201D;Â&#x192;Â&#x17D;Â&#x17D; Â&#x2018;Â&#x201E;Â&#x152;Â&#x2021;Â&#x2026;Â&#x2013;Â&#x2039;Â&#x2DC;Â&#x2021;Â&#x2022;ÇĄ Â&#x192;Â?Â&#x2020; Â&#x2122;Â&#x2021; Â&#x2026;Â&#x192;Â&#x2022;Â&#x2026;Â&#x192;Â&#x2020;Â&#x2021; Â&#x2013;Â&#x160;Â&#x2039;Â&#x2022; 23


ACCOUNTANCY & FINANCE AWARDS

BIG DEAL PwC shines as the tax, assurance and advisory services company runs away with ‘Firm of the Year’ and for the second year in a row, ‘Deal of The Year’ gongs

P

RICEWATERHOUSECOOPERS (PwC) has had a consistent p r e s e n c e i n t h e M i dd l e E a s t f o r o v e r 4 0 ye a r s , a p e r i o d coincidentally aligned with the life of the UAE. This history   of   success   is   explicable.   At   the   ICAEW   awards   ceremony,   PwC   emerged   as   double   winner,   having   been   crowned   ‘Firm   of  the  Year’  and,  for  the  second  year  running,   received   the   ‘Corporate   Finance   Deal   of   the   Year’   g ong.   In   an   interview   with   Accountant   Middle   East,   top   Partners   at   the   firm   said   that   winning   both  of  these  awards  mean  a  lot,  even  for  the   global  f irm  t hat  r egularly  w ins  a  d iverse  a rray   of   a wards. “The   M iddle   E ast   r egion   h as   a   g lobal   s trategic   importance   for   such   a   firm,   whose   presence   stretches   from   Libya   in   the   west,   to   Iraq   in  

24 January 2013

the e ast,  L ebanon  i n  t he  n orth  a nd  K ingdom  o f   Saudi   A rabia   i n   t he   s outh,”   s aid   I an   S chneider,   a   s enior   P artner   a t   P wC.   “This   has   been   cemented   by   the   strategic   alliance   of   the   Middle   East   firm   with   the   UK   firm   which   has   facilitated   more   investment   and   g rowth,”   h e   a dded.   .L[[PUNP[YPNO[ According  to  Schneider,  the  award  of  ‘Firm  of   the  Year’  i s  “ recognition  f or  w hat  P wC  i s  d oing   regionally   t o   g et   i t   r ight.”   “PwC   has   grown   its   operations   across   the   region,   both   from   a   people   perspective   and   financial   results.   In   addition,   it   has   been   about   ‘doing   the   right   thing’.   Good   examples   of  this  include;  that  members  of  staff  in  Libya   were   paid   throughout   the   period   of   turmoil   in   the   country,   which   resulted   in   many   other   businesses   closing   and   withdrawing,”   said   Schneider,  a dding  t hat  “ Maintaining  a  p resence  


ACCOUNTANCY & FINANCE AWARDS

“PwC has grown its operations across the region, both from a people perspective and financial results.”

[in Libya]   allowed   PwC   to   hit   the   ground   running   a s   s oon   a s   b usiness   r estarted.”   “Another   was   the   way   in   which   staff   from   Egypt   were   utilised   on   assignments   throughout   the   wider   region,   at   the   time   of   the  turmoil  there.  In  many  areas  of  the  multi   faceted  professional  services  firm,  the  ability   to   b ring   i n   s pecialists   a nd   s pecific   e xpertise,   from   wherever   in   the   PwC   organisation   it   happens   to   reside,   allows   the   business   to   continue  to  grow  and  develop,  and  to  meet   the  n eeds  o f  t he  l ocal  b usiness  c ommunity,”   the   o fficial   s aid.   )\ZPULZZYLZ[Y\J[\YPUNWYHJ[PJL A  g ood  e xample  o f  t his  w as  t he  d ecision   taken   in   2010   to   establish   a   Business   Restructuring   practice   in   the   region.   Ian   Schneider,   an   experienced   restructuring  p ractitioner  w ith  multi  -­‐   national  e xperience  r elocated  t o  D ubai   in   January   2011.   He   embarked   upon   the   t ask   o f   n ot   o nly   b uilding   a   t eam,   b ut   also   s trategically   u sing   t he   k nowledge   o f   other   international   members   of   the   team,   to  build  up  the  experience  and  expertise  of   local   practitioners   to   ensure   a   future   with   local   c apability.   That   team   now   comprises   17   professionals   from   very   diverse   backgrounds   and   includes   people  f rom  t he  U K,  A ustralia,  Q atar,  t he  UAE,   Jordan,   E gypt   a nd   L ebanon.  

TRIUMPH: Ian Schneider, a senior Partner at PwC poses with the award after the mSNXPOUIFA$PSQPSBUF Finance Deal of the Year’ gong at the ICAEW awards event.

“[The team]   has   been   delighted,   in   only   its   second   year,   to   be,   in   conjunction   with   the   management   team   of   Dubai   DryDocks,   the   recipient  of  the  award  for  ‘Corporate  Finance   Deal  of  the  Year.’  As  noted,  PwC  has  now  won   the  a ward  e very  t ime  i t  h as  b een  a warded  a nd   so   the   pressure   is   already   on   for   next   year,”   Schneider   s aid. A   key   feature   of   the   DryDocks   deal   was   the   close   working   relationship   between   the   25


ACCOUNTANCY & FINANCE AWARDS

PwC, which has the largest and oldest restructuring practice globally, has been at the forefront of the implementation of new legal developments in reform.

Group, its   legal   advisors   (Clifford   Chance   LLP)   and   the   management   team.   Schneider   says   there   was   also   a   very   good,   and   strong,   working   relationship   with   the   lender   group,   led   b y   I an   M cMillan   o f   H SBC. “As   experienced   restructuring   professionals,   PwC   and   Clifford   Chance   were   able   to   bridge   the   gap,   that   always   exists,   between   the   lenders   a nd   t he   b orrower,”   S chneider   s aid.   5L^HUK\U[LZ[LKKLJYLL As   far   back   as   February   2011,   the   group   sought   to   consider   the   contingency   plan   of   using   the   new   and   untested   Dubai   Decree   57,   a   procedure   to   implement   a   consensual   restructuring   solution.   The   DDW   debt   arrangements,  in  common  with  many  done  in   the   period   2004   to   2008   required   100%,   by   both  number  a nd  v alue,  o f  t he  l enders  t o  a gree   to   a ny   c hanges   t o   t he   d ebt   a rrangements.   “This   sort   of   arrangement,   unfortunately,   gives   the   ability   for   a   holder   of   debt   to   try   and   extract   hostage   value   to   boost   their   own   financial   return,   even   if   this   is   contrary   to   the   interests   of   everyone   else.   In   the   more   developed   restructuring   markets,   processes   have  been  developed  to  prevent  this  as  is  the   case   in   the   USA   (under   Chapter   11)   and   the   UK   (under   Schemes   of   Arrangement   or   the   Company  Voluntary  Arrangement  provisions)   and   o ther   E nglish   l aw   j urisdictions.” PwC,   which   has   the   largest   and   oldest   restructuring   practice   globally,   has   been   at   the   forefront   of   the   implementation   of   new   legal  d evelopments  i n  r eform.  T he  f irm  d id  t he   first  c ases  u nder  t he  n ew  E uropean  I nsolvency   regulations  and  has  implemented  some  of  the   more   difficult   Schemes   of   Arrangement   (for   instance,   Re   Bluebrook).   As   such,   DryDocks   turned   to   PwC   to   help   with   the   aspect   of   contingency  p lanning  t o  u se  D ecree  57  i f  a ll  o f   26 January 2013

the lenders   wouldn’t   agree,   which   was   a   very   high   p ractical   r eality.   7SHU^P[OZ\MMPJPLU[MSL_PIPSP[` After   having   completed   this   phase   of   work   the   PwC   team   were   asked   to   help   DryDocks,   as   their   full   blown   financial   advisor,   in   their   discussions   with   their   lenders.   According   to   Schneider,  t he  P wC  t eam  w ere  a ble  t o  d raw  o n   their  e xperience  o f  o ther  s ituations  t o  d evelop   a  structure,  and  then  a  proposal,  that  worked   for   a ll.   “This   solution   gained   wide   lender   support   at   the   meetings   that   DDW   organised   with   its   lenders.     However,   it   was   still   clear   that   some   of   the   funds   would   not   agree   to   the   deal  a nd  w ould  l ook  t o  s ecure  a  s uper  r eturn.   Accordingly   the   DryDocks   management   and   leadership  team  took  the  brave  step  of  being   prepared  t o  u se  D ecree  57,”  h e  s ays.  T he  f iling   was   made   on   April   1,   2012   and   the   process   got   u nderway.   “Everything  went  to  plan  with  one  exception,   caused   by   commercial   matters   within   the   business,  b ut  t he  p lan  h ad  b een  d esigned  w ith   sufficient   f lexibility   t o   m anage   s uch   m atters.”   *SHZZPJYLZ[Y\J[\YPUNYVSL At  t he  b eginning  o f  J uly,  t he  r elevant  m eetings   of   the   impacted   creditors   (which   were   just   the   providers   of   debt   finance   –   there   was   no   impact   on   customers,   suppliers   or   employees)   and   shareholders   were   convened   and   passed   the   resolutions   to   approve   the   agreed   restructuring.   The   votes   were   comprehensively   in   favour   with   everyone   who   voted   supporting   the   plan   and   only   two   creditors   not   voting   –   effectively   97%   of   the   creditors   s aid   “ yes   p lease”. The   Tribunal   approved   the   restructuring   at   the   end   of   August   and   the   various   conditions   precedent   were   discharged   by   October   31,   2012  and  the  deal  came  into  place.  PwC’s  role   ended   that   day   and   matters   are   now   in   the   hands  o f  m anagement  t o  d eliver  t heir  b usiness   plan   a nd   c omply   w ith   t heir   l oan   a greements.   “It  was  a  classic  restructuring  role  for  a  world   leader  l ike  P wC  -­‐  s upporting  t he  c lient  t o  achieve   their  objectives  by  using  their  experience,  but   delivering   a   great   'PwC   Experience'   for   the   client,”  S chneider  proudly  s ays.  


ACCOUNTANCY & FINANCE AWARDS

ACCOUNTANCY & FINANCE excellence awards: the winners BUSINESS LEADER OF THE YEAR Award sponsor:  BDO  Corporate  Finance Winner:  HE  Mohamed  A labbar Shortlisted:  Rizwan  Sajan,  HE  Mohamed  Alabbar,  Colm  McLoughlin Judges’  Comments:  This  award  goes  to  a  man  who  possesses   a  visionary  global  perspective,  successful  track  record  and  a   proven  ability  to  develop  and  nurture  business  across  a  range   of  industries.  He  was  the  founder  of  the  Dubai  Department  of   Economic  Development  and  served  as  its  Director  General  to   develop  and  promote  the  economy  of  Dubai  before  he  became   the  Chairman  of  Emaar  Properties,  one  of  the  world’s  largest  real   estate  companies.  (Pictured:  Ahmed  Matroushi  receives  the  award   on  behalf  of  HE  Mohamed  Alabbar).

YOUNG ACCOUNTANT OF THE YEAR Award sponsor:  Taqa  Global Winner:  Muhra  a l  Mulla   Shortlisted:  Muhra  A l  Mulla,  Nanditha  R amanathan,   Anam  Sami,  Nauman  Mian Judges’  Comments:  T his  award  goes  to  a  person  who  has   demonstrated  nothing  but  determination  to  succeed  in  her   career.  She  exhibits  g reat  ambition  w ith  a  positive  attitude   and  is  an  excellent  team  player.  She  is  a  leading  example  of  t he   upcoming  breed  of  young,  enterprising,  highly  motivated  and   career  minded  Emirati  youth.  Not  only  was  she  a  top  scorer   in  her  university  years  but  a lso  is  a  top  achiever  in  her  ACA   exams.  T he  dedication  and  commitment  she  portrayed  shows   that  she  is  heading  in  t he  r ight  direction  to  early  achievement   of  many  key  milestones  in  a  fast-­‐track  f uture  c areer.  

28 January 2013


ACCOUNTANCY & FINANCE AWARDS

CORPOR ATE FINANCE DEAL OF THE YEAR Award sponsor:  Chalhoub  Group Winner:  PwC  -­‐  for  leading  the  complex  restructuring  of  Drydocks Shortlisted:  PwC  &  Damas,  PwC  &  Drydocks,  Deloitte  Corp  Finance Judges’  Comments:  T his  award  goes  to  t he  advisors  of  a   ”‡•–”—…–—”‹‰’”‘…‡••…‘’Ž‡–‡†‹—‰—•–ʹͲͳʹǤ –‹•–Š‡ϐ‹”•– major  regional  Middle  East  restructuring  concluded  t hrough   a  judicial  process  w ith  t he  support  of  majority  creditors  and   public  t ransparency.  T his  milestone  deal  could  usher  in  a  new   era  for  restructuring  in  t he  Middle  East.  T his  restructuring   was  an  innovative  and  collaborative  effort  and  could  not   have  been  achieved  w ithout  t he  commercial,  pragmatic  and   innovative  input  f rom  a ll  teams  working  together.

EXCELLENCE IN FINANCIAL REPORTING Award sponsor:  Middle  East  a nd  North  A frica  practice   of  Ernst  a nd  Young Winner:  Mubadala Shortlisted:  Emirates,  A ramex,  Mubadala Judges’  Comments:  T his  award  goes  to  a n  organisation   that  operates  in  11  diverse  sectors,  has  approximately  170   consolidated  entities,  40  jointly  controlled  entities  a nd  20   associates.  It  has  been  rated  10/10  on  t he  L inaburg-­‐Maduell   Transparency  Index  a nd  was  awarded  t he  Best  R anked   Middle  East  organisation  on  PIIE  S WF  scoreboard.

CFO OF THE YEAR CFO OF THE YEAR Award sponsor:  K PMG Winner:  Prasanth  Manghat Shortlisted:  James  R igney  f rom  Etihad,  Yuvraj  Narayan  f rom   DP  World,  Prasanth  Manghat  f rom  NMC  Healthcare Judges’  Comments:  T his  award  goes  to  an  individual  who   continuously  shows  g reat  leadership  skills  and  has  been   instrumental  in  t he  successful  listing  of  t he  company  he   works  for  in  t he  premium  segment  of  F TSE  250  on  t he  London   Stock  E xchange  in  2012.

29


ACCOUNTANCY & FINANCE AWARDS

EXCELLENCE IN TRAINING AND DEVELOPMENT OF FINANCE PROFESSIONALS Award sponsor:  Nexia  International Winner:  Tamkeen Shortlisted:    E&Y,  IMA  Dubai  Chapter,  Tamkeen Judges’  Comments:  T his  award  goes  to  t he  developer  of   “Mohasabadzƒ’”‘‰”ƒ‡•’‡…‹ϐ‹…ƒŽŽ›†‡•‹‰‡†–‘Š‡Ž’ǯ• ‹ƒŠ”ƒ‹‹’Ž‡‡–™‘”Ž†Ǧ…Žƒ••ƒƒ‰‡‡–ƒ†ϐ‹ƒ…‹ƒŽ accounting  a nd  auditing  s ystems  t hough  renowned  expert   service  providers.  T he  programme  has  been  successful   in  propagating  t he  importance  of  proper  accounting  a nd   auditing  practices  a s  a  prerequisite  to  improving  enterprise   performance,  particularly  w ithin  SMEs.  Out  of  t he  1,200   •–ƒ”‰‡–‡†ǡͺ͵ͶŠƒ˜‡„‡‡ϐ‹–‡†ˆ”‘–Š‹•’”‘‰”ƒ‡Ǥ

EXCELLENCE IN FINANCIAL JOURNALISM Award sponsor:  Deloitte Winner:  T he  Business  Breakfast  Show Shortlisted:    James  Doran  f rom  The  National,  Brandy  a nd   Malcolm  f rom  t he  Business  Breakfast,  Dubai  Eye Judges’  Comments:  This  award  goes  to  a  show  that  keeps   you  wanting  to  come  back  for  more.    A  show  that  broadcasts   ‹–‡”˜‹‡™•™‹–ŠŠ‹‰ŠǦ’”‘ϐ‹Ž‡…‘—‹–›‡„‡”•ǡ†‡Ž‹˜‡”• local  and  world  business  stories,  gives  overviews  of  currency   and  commodity  markets  in  UAE  and  has  over  100,000  listeners.

ICAEW CHARTERED ACCOUNTANT OF THE YEAR Award sponsor:  Michael  Page  Finance Winner:  Chris  Taylor Shortlisted:  Chris  Taylor  f rom  Abu  Dhabi  Finance,  Gabrielle   Kane  f rom  t he  Accounts  Dept Judges’  Comments:  This  award  goes  to  a  man  who  was  able   to  transform  the  company  he  works  for  from  a  loss  making   …‘’ƒ›–‘ƒŠ‹‰ŠŽ›’”‘ϐ‹–ƒ„Ž‡…‘’ƒ›ǤŠ‡‰”‘™–Š‹–Š‡’”‘ϐ‹– was  almost  150%,  and  the  growth  in  the  loan  book  was  about   24%.  Since  his  taking  over  the  support  function  of  the  company,   Š‡Šƒ•ƒƒ‰‡†–‘•‡…—”‡…‘”’‘”ƒ–‡†‡’‘•‹–•ƒ†‹•‹–Š‡ϐ‹ƒŽ •–ƒ‰‡‘ˆ‡‰‘–‹ƒ–‹‰ƒϐ‹”•–‡†‹—–‡”ˆ—†‹‰ˆƒ…‹Ž‹–›ˆ‘”–Š‡ company  to  ensure  effective  liquidity  management. 30 January 2013


ACCOUNTANCY & FINANCE AWARDS

BUSINESS FINANCE TEAM OF THE YEAR Award sponsor:  P wC Winner:  NMC  Healthcare Shortlisted:  Etihad,  NMC  Healthcare,  DHL Judges’  Comments:   Š‹•ƒ™ƒ”†‰‘‡•–‘ƒϐ‹ƒ…‡–‡ƒ–Šƒ– was  instrumental  in  t he  successful  listing  of  its  company   in  t he  premium  segment  of  F TSE  250  on  t he  London  Stock   Exchange  in  2012.  It  goes  to  a  team  t hat  works  for  one  of   the  largest  private  healthcare  providers  in  t he  UAE  having   6  hospitals  and  8  pharmacies  under  its  management  w ith   a  product  mix  t hat  includes  FMCG,  Educational  equipment,   Šƒ”ƒ…‡—–‹…ƒŽ•ǡ…‹‡–‹ϐ‹…‡“—‹’‡–ǡ‘•‡–‹…•ǡ ‘‘†‹–‡• and  Veterinary  products.

FIRM OF THE YEAR Award sponsor:  Abraaj  Group Winner:  P wC Shortlisted:    Deloitte  &  Touche,  P wC,  E&Y Judges’  Comments:  T his  award  goes  to  a n  organisation  t hat   has  been  in  t he  region  for  over  30  years  w ith  a  w ide  regional   ‡–™‘”‘ˆ‘ˆϐ‹…‡•ƒ†‘˜‡”ʹǡͷͲͲ•–ƒˆˆ™Š‹…Š‡ƒ„Ž‡•‹––‘ fully  understand  t he  multi-­‐jurisdictional  environment  in   which  its  clients  operate.    In  t he  UAE,  it  has  over  58  partners   and  800  s taff  in  which  t heir  main  objective  is  to  innovate  a nd   ‹’Ž‡‡–‡™‹‹–‹ƒ–‹˜‡•–‘‡‡’–Š‡‹”…Ž‹‡–••ƒ–‹•ϐ‹‡†Ǥ

OUTSTANDING INDIVIDUAL CONTRIBUTION TO THE ACCOUNTANCY PROFESSION Winner: Edward  Quinlan  –  Chairman  of  ICAEW’s  Advisory  Board

31


CAREER DEVELOPMENT

Anam Sami (centre) is a relatively new recruit to the KPMG ranks. She has already achieved UXPHMPCBMmSTUQSJ[FTJO -BXBOE"VEJUJOHBTQBSU of her ACCA studies in the last two sittings and recently scored an almost VOQSFDFEFOUFEJO IFS-BXQBQFS

PHOENIX STUDENTS SHINE

Learners from the financial institution dominate nominations list for â&#x20AC;&#x2DC;Young Accountant of the Yearâ&#x20AC;&#x2122; at ICAEW Middle East Excellence Awards 32 January 2013


CAREER DEVELOPMENT

I DAVID THOMASSON MANAGING DIRECTOR, PHOENIX FINANCIAL TRAINING

RECALL seeing an advertisement in the press during one of my visits to Dubai in 2006.

The  advert   said   that   a   major   distributor   based   in   Jebel   Ali   was   looking   for   an   accountant-­â&#x20AC;? cum-­â&#x20AC;?receptionist.  I  felt  this  summed  up,  at  the  time,   the   way   accountants   were   often   perceived   in   the   UAE   (and   to   an   extent   within   the   region)   and   just   how   far   there   was   to   go   to   educate   the   business   Â&#x2026;Â&#x2018;Â?Â?Â&#x2014;Â?Â&#x2039;Â&#x2013;Â&#x203A; Â&#x160;Â&#x2021;Â&#x201D;Â&#x2021; Â&#x2039;Â? Â&#x2013;Â&#x2021;Â&#x201D;Â?Â&#x2022; Â&#x2018;Â&#x2C6; Â&#x2013;Â&#x160;Â&#x2021; Â&#x201E;Â&#x2021;Â?Â&#x2021;Ď?Â&#x2039;Â&#x2013;Â&#x2022; Â&#x2013;Â&#x160;Â&#x192;Â&#x2013; Â&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;Ď?Â&#x2039;Â&#x2021;Â&#x2020; Ď?Â&#x2039;Â?Â&#x192;Â?Â&#x2026;Â&#x2021; Â&#x2019;Â&#x201D;Â&#x2018;Â&#x2C6;Â&#x2021;Â&#x2022;Â&#x2022;Â&#x2039;Â&#x2018;Â?Â&#x192;Â&#x17D;Â&#x2022; Â&#x2026;Â&#x192;Â? Â&#x201E;Â&#x201D;Â&#x2039;Â?Â&#x2030; Â&#x2013;Â&#x2018; Â&#x201E;Â&#x2018;Â&#x2013;Â&#x160; companies  and  indeed  government  organisations.   It   is   seven   years   since   I   saw   that   advertisement   â&#x20AC;&#x201C;   have  things  moved  on  from  then  or  is  the  UAE  still  in   dire  need  of  a  new  understanding  when  it  comes  to   professional  accountancy?   <2Z[HUKHYKZVM[YHPUPUN We  established  Phoenix  Financial  Training  here  in   Dubai  in  August  2006  â&#x20AC;&#x201C;  the  stated  aim  was  to  bring   UK   standards   of   training   and   customer   service   to   the  UAE  and  eventually  the  wider  region.  We  deliver   Â&#x2021;Â&#x161;Â&#x192;Â?Â&#x2039;Â?Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â? Â&#x201E;Â&#x192;Â&#x2022;Â&#x2021;Â&#x2020; Â&#x2013;Â&#x201D;Â&#x192;Â&#x2039;Â?Â&#x2039;Â?Â&#x2030; Â&#x2C6;Â&#x2018;Â&#x201D;  Â&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;Ď?Â&#x2039;Â&#x2026;Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â?Â&#x2022; such   as   ICAEW   (English   Chartered),   CIMA   (the    Â&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;Ď?Â&#x2039;Â&#x2026;Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â? Â&#x192;Â&#x2039;Â?Â&#x2021;Â&#x2020; Â&#x2019;Â&#x201D;Â&#x2039;Â?Â&#x192;Â&#x201D;Â&#x2039;Â&#x17D;Â&#x203A; Â&#x192;Â&#x2013; Â&#x192;Â?Â&#x192;Â&#x2030;Â&#x2021;Â?Â&#x2021;Â?Â&#x2013; Accountants   working   in   business   rather   than   practice)  and  ACCA  (the  UK  based,  globally  portable   Â&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;Ď?Â&#x2039;Â&#x2026;Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â?Â&#x2122;Â&#x160;Â&#x2039;Â&#x2026;Â&#x160;Â&#x2018;Â&#x2C6;Â&#x2C6;Â&#x2021;Â&#x201D;Â&#x2022;Â&#x192;Â&#x160;Â&#x2039;Â&#x2030;Â&#x160;Â&#x2020;Â&#x2021;Â&#x2030;Â&#x201D;Â&#x2021;Â&#x2021;Â&#x2018;Â&#x2C6;Ď?Â&#x17D;Â&#x2021;Â&#x161;Â&#x2039;Â&#x201E;Â&#x2039;Â&#x17D;Â&#x2039;Â&#x2013;Â&#x203A; to   candidates   wanting   to   have   options   on   how   to   Â&#x2019;Â&#x2014;Â&#x201D;Â&#x2022;Â&#x2014;Â&#x2021;Â&#x2013;Â&#x160;Â&#x2021;Â&#x2039;Â&#x201D;Â&#x2026;Â&#x192;Â&#x201D;Â&#x2021;Â&#x2021;Â&#x201D;Â&#x2022;Â&#x2039;Â?Â&#x192;Â&#x17D;Â&#x17D;Ď?Â&#x2039;Â&#x2021;Â&#x17D;Â&#x2020;Â&#x2022;Č&#x152;Â&#x192;Â?Â&#x2020;Â&#x160;Â&#x192;Â&#x2DC;Â&#x2021;Â&#x2020;Â&#x2021;Â&#x17D;Â&#x2039;Â&#x2DC;Â&#x2021;Â&#x201D;Â&#x2021;Â&#x2020; Â&#x2018;Â&#x2DC;Â&#x2021;Â&#x201D; Â&#x2013;Â&#x160;Â&#x192;Â&#x2013; Â&#x2013;Â&#x2039;Â?Â&#x2021; Â?Â&#x192;Â?Â&#x203A; Â&#x160;Â&#x2014;Â?Â&#x2020;Â&#x201D;Â&#x2021;Â&#x2020;Â&#x2022; Â&#x2018;Â&#x2C6; Â?Â&#x2021;Â&#x2122;Â&#x17D;Â&#x203A; Â&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;Ď?Â&#x2039;Â&#x2021;Â&#x2020; accountants  into  the  UAE  job  market  and  beyond.   It   is   important   to   remember   that   as   a   training   provider  we  only  do  part  of  the  job.  Our  focus  is  on   Â&#x2020;Â&#x2021;Â&#x17D;Â&#x2039;Â&#x2DC;Â&#x2021;Â&#x201D;Â&#x2039;Â?Â&#x2030;Ď?Â&#x2039;Â&#x201D;Â&#x2022;Â&#x2013;Â&#x2026;Â&#x17D;Â&#x192;Â&#x2022;Â&#x2022;Â&#x2013;Â&#x2014;Â&#x2039;Â&#x2013;Â&#x2039;Â&#x2018;Â?Â&#x2013;Â&#x2018;Â&#x2022;Â&#x2014;Â&#x2019;Â&#x2019;Â&#x2018;Â&#x201D;Â&#x2013;Â&#x2013;Â&#x160;Â&#x2021;Â&#x2022;Â&#x2021;Č&#x2039;Â&#x17D;Â&#x192;Â&#x201D;Â&#x2030;Â&#x2021;Â&#x17D;Â&#x203A;Č&#x152; young  people  to  pass  their  examinations  -­â&#x20AC;?   however   to  become  a  recognised  member  of  these  Institutes   it  is  necessary  to  not  only  pass  exams,  but  acquire   around   three   years   of   relevant   practical   experience   and   it   is   thoroughness   of   this   combination   that  

At the ICAEW Middle East Awards we were proud to see four of our previous and current students making up the nominations list for â&#x20AC;&#x2DC;Young Accountant of the Yearâ&#x20AC;&#x2122;. In themselves, they define a microcosm of the growing band of young finance professionals in the region.

potentially  adds  so  much  for  businesses.   ;LJOUPJHSWYHJ[PJLVMHJJV\U[HUJ` Â&#x160;Â&#x203A; Â&#x192;Â&#x201D;Â&#x2021; Â&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;Ď?Â&#x2039;Â&#x2021;Â&#x2020; Â&#x192;Â&#x2026;Â&#x2026;Â&#x2018;Â&#x2014;Â?Â&#x2013;Â&#x192;Â?Â&#x2013;Â&#x2022; Â&#x2022;Â&#x2018; Â&#x2DC;Â&#x192;Â&#x17D;Â&#x2014;Â&#x192;Â&#x201E;Â&#x17D;Â&#x2021; Â&#x2013;Â&#x2018; Â&#x201E;Â&#x2014;Â&#x2022;Â&#x2039;Â?Â&#x2021;Â&#x2022;Â&#x2022;Â&#x2021;Â&#x2022;ÇŤÂ&#x2030;Â&#x192;Â&#x2039;Â?Â&#x2030;Â&#x2018;Â&#x2039;Â?Â&#x2030;Â&#x201E;Â&#x192;Â&#x2026;Â?Â&#x2013;Â&#x2018;Â&#x2013;Â&#x160;Â&#x2021;Â&#x2026;Â&#x17D;Â&#x192;Â&#x2022;Â&#x2022;Â&#x2039;Ď?Â&#x2039;Â&#x2021;Â&#x2020;Â&#x2019;Â&#x192;Â&#x2030;Â&#x2021;Â&#x2022; it   was   (and   unfortunately   still   is)   common   practice   to   see   companies   looking   for   a   candidate   who   possessed   â&#x20AC;&#x2DC;a   degree   in   accountancy   or   an   MBA   and   also  fourteen  years  in  the  role  of  Chief  Accountant  or   Financial  Controller  in  a  clothing  wholesaler  based   in  the  UAEâ&#x20AC;&#x2122;,  I  want  to  pull  this  apart  a  little  to  reveal   the  problems  we  sometimes  face... 1.   The   degree   â&#x20AC;&#x201C;   The   universities   here,   and   indeed   around  the  world,  do  a  fabulous  job  in  educating  young   Â&#x2019;Â&#x2021;Â&#x2018;Â&#x2019;Â&#x17D;Â&#x2021; Â&#x192;Â?Â&#x2020; Â&#x2013;Â&#x160;Â&#x2039;Â&#x2022; Â&#x2039;Â?Â&#x2026;Â&#x17D;Â&#x2014;Â&#x2020;Â&#x2021;Â&#x2022; Â&#x2022;Â&#x2019;Â&#x2021;Â&#x2026;Â&#x2039;Ď?Â&#x2039;Â&#x2026; Â&#x2C6;Â&#x2014;Â&#x201D;Â&#x2013;Â&#x160;Â&#x2021;Â&#x201D; Â&#x2021;Â&#x2020;Â&#x2014;Â&#x2026;Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â? Â&#x2039;Â? Â&#x2013;Â&#x160;Â&#x2021; Ď?Â&#x2039;Â?Â&#x192;Â?Â&#x2026;Â&#x2039;Â&#x192;Â&#x17D; Ď?Â&#x2039;Â&#x2021;Â&#x17D;Â&#x2020;Ǥ Â&#x2018;Â&#x2122;Â&#x2021;Â&#x2DC;Â&#x2021;Â&#x201D;ÇĄ Â&#x2039;Â&#x2013; Â&#x2022;Â&#x160;Â&#x2018;Â&#x2014;Â&#x17D;Â&#x2020; Â?Â&#x2021;Â&#x2DC;Â&#x2021;Â&#x201D; Â&#x201E;Â&#x2021; presumed  that  a  college  degree  teaches  young  people   to   be   accountants   -­â&#x20AC;?   the   focus   is   entirely   different,   being  based  far  more  on  concepts  and  theories,  rather   than  the  technical  practice  of  accountancy.   This  is  sometimes  doubted  in  some  parts  of  the  world   but   it   should   be   remembered   that   in   the   very   highly   competitive   UK   market   the   â&#x20AC;&#x2DC;Big   4â&#x20AC;&#x2122;   happily   recruit   graduates   from   all   disciplines   â&#x20AC;&#x201C;   their   view   is   that   they,  along  with  the  training  provider,  will  teach  the   young   people   to   be   accountants.   What   they   want   are  the  best  people  and  the  name  of  the  degree  (be  it   accountancy  or  geology)  largely  does  not  really  count,   indeed  I  have  often  heard  them  comment  that  they   may   positively   discriminate   against   Accountancy   graduates   on   the   basis   that   they   want   to   train   the   students  from  scratch  with  no  preconceptions.   2.  The  MBAČ&#x201A;Â&#x160;Â&#x2039;Â&#x17D;Â&#x2022;Â&#x2013;Â&#x2013;Â&#x160;Â&#x2021;Â&#x2039;Â&#x2022;Â&#x192;Â&#x201E;Â&#x201D;Â&#x2039;Â&#x17D;Â&#x17D;Â&#x2039;Â&#x192;Â?Â&#x2013;Â&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;Ď?Â&#x2039;Â&#x2026;Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â? and   provides   true   insight   into   the   workings   of   a   business  and  its  environment,  it  is  still  a  very  general   Â&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;Ď?Â&#x2039;Â&#x2026;Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â?Â&#x192;Â?Â&#x2020;Â&#x2039;Â&#x2022;Â?Â&#x2018;Â&#x2022;Â&#x2013;Â&#x2026;Â&#x2021;Â&#x201D;Â&#x2013;Â&#x192;Â&#x2039;Â?Â&#x17D;Â&#x203A;Â?Â&#x2018;Â&#x2013;Â&#x192;Â&#x2022;Â&#x2014;Â&#x201E;Â&#x2022;Â&#x2013;Â&#x2039;Â&#x2013;Â&#x2014;Â&#x2013;Â&#x2021;Â&#x2C6;Â&#x2018;Â&#x201D; three  years  of  technical  accountancy  training.   I  see  the  depth  and  breadth  of  material  our  students   have  to  cover  in  all  aspects  of  Financial  Reporting,   Management   Accounting,   Budgeting   and   Control   along   with   related   disciplines   in   the   areas   of   Treasury,   Taxation   and   Auditing   and   know   that   a   Â&#x2030;Â&#x2021;Â?Â&#x2021;Â&#x201D;Â&#x192;Â&#x17D;Â&#x2039;Â&#x2022;Â&#x2013; Â&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;Ď?Â&#x2039;Â&#x2026;Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â?ÇĄ Â&#x2039;Â&#x201D;Â&#x201D;Â&#x2021;Â&#x2022;Â&#x2019;Â&#x2021;Â&#x2026;Â&#x2013;Â&#x2039;Â&#x2DC;Â&#x2021; Â&#x2018;Â&#x2C6; Â&#x2013;Â&#x160;Â&#x2021; Â&#x17D;Â&#x2021;Â&#x2DC;Â&#x2021;Â&#x17D; it  is  pitched  at,  is  no  substitute  for  the  integrity  of   Â&#x2013;Â&#x160;Â&#x2039;Â&#x2022;Â&#x2013;Â&#x201D;Â&#x192;Â&#x2039;Â?Â&#x2039;Â?Â&#x2030;ǤÂ&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;Ď?Â&#x2039;Â&#x2021;Â&#x2020;Â&#x2022;Â&#x2013;Â&#x192;Â&#x2C6;Â&#x2C6;Â&#x160;Â&#x192;Â&#x2DC;Â&#x2021;Â&#x2013;Â&#x160;Â&#x2021;Â&#x2039;Â&#x201D;Â&#x2019;Â&#x17D;Â&#x192;Â&#x2026;Â&#x2021;Â&#x2039;Â? businesses  but  not  as  accountants.   3.   The   fourteen   years   â&#x20AC;&#x2DC;in   the   same   jobâ&#x20AC;&#x2122;   â&#x20AC;&#x201C;   This   is   simply   a   replacement   for   the   professional   Â&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;Ď?Â&#x2039;Â&#x2026;Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â? Â&#x2013;Â&#x160;Â&#x2021;Â&#x203A; Â&#x2022;Â&#x160;Â&#x2018;Â&#x2014;Â&#x17D;Â&#x2020; Â&#x160;Â&#x192;Â&#x2DC;Â&#x2021;Ǥ Â&#x2C6; Â&#x2013;Â&#x160;Â&#x2021;Â&#x203A; Â&#x160;Â&#x192;Â&#x2DC;Â&#x2021; Â&#x201E;Â&#x2021;Â&#x2021;Â? doing   this   same   job,   in   the   same   industry,   in   the   same   location   for   14   years   why   would   they   want   33


CAREER DEVELOPMENT

to  come   and   do   the   same   thing   â&#x20AC;&#x201C;   if   they   do   then,   is   this   the   type   of   person   you   want?   A   thorough   technical  training  focuses  on  building  skills  that  are   transferable  across  industries  and  processes. Â&#x2018;Â&#x2122;Â&#x160;Â&#x192;Â&#x2013;Â&#x2039;Â&#x2022;Â&#x2013;Â&#x160;Â&#x2021;Â&#x192;Â?Â&#x2022;Â&#x2122;Â&#x2021;Â&#x201D;ÇŤÂ&#x160;Â&#x2021;Â&#x160;Â&#x2014;Â&#x2030;Â&#x2021;Â&#x201E;Â&#x2021;Â?Â&#x2021;Ď?Â&#x2039;Â&#x2013;Â&#x2018;Â&#x2C6;Â&#x2019;Â&#x201D;Â&#x2018;Â&#x2C6;Â&#x2021;Â&#x2022;Â&#x2022;Â&#x2039;Â&#x2018;Â?Â&#x192;Â&#x17D; Â&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;Ď?Â&#x2039;Â&#x2026;Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â? Â&#x2013;Â&#x201D;Â&#x192;Â&#x2039;Â?Â&#x2039;Â?Â&#x2030; Â&#x2039;Â? Â&#x192;Â&#x2026;Â&#x2026;Â&#x2018;Â&#x2014;Â?Â&#x2013;Â&#x192;Â?Â&#x2026;Â&#x203A; Â&#x192;Â?Â&#x2020; Ď?Â&#x2039;Â?Â&#x192;Â?Â&#x2026;Â&#x2021; Â&#x2039;Â&#x2022; not   only   based   in   the   skills   and   knowledge   acquired,   Â&#x201E;Â&#x2014;Â&#x2013; Â&#x2013;Â&#x160;Â&#x2021; Â&#x2020;Â&#x2021;Â&#x2DC;Â&#x2021;Â&#x17D;Â&#x2018;Â&#x2019;Â&#x2021;Â&#x2020; Â&#x2026;Â&#x2018;Â?Ď?Â&#x2039;Â&#x2020;Â&#x2021;Â?Â&#x2026;Â&#x2021; Â&#x2013;Â&#x2018; Â&#x201E;Â&#x2021; Â&#x192;Â&#x201E;Â&#x17D;Â&#x2021; Â&#x2013;Â&#x2018; Â&#x2020;Â&#x2021;Â&#x2019;Â&#x17D;Â&#x2018;Â&#x203A; these  attributes  into  a  variety  of  situations.   Â&#x160;Â&#x2021; Â&#x2019;Â&#x201D;Â&#x2018;Â&#x2C6;Â&#x2021;Â&#x2022;Â&#x2022;Â&#x2039;Â&#x2018;Â?Â&#x192;Â&#x17D;Â&#x17D;Â&#x203A; Â&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;Ď?Â&#x2039;Â&#x2021;Â&#x2020; Â&#x2019;Â&#x2021;Â&#x201D;Â&#x2022;Â&#x2018;Â? Â&#x2026;Â&#x192;Â? Â?Â&#x2018;Â&#x2DC;Â&#x2021; comfortably   between   roles   and   industries   â&#x20AC;&#x201C;   their   underlying   understanding   of   the   way   business   Â&#x192;Â?Â&#x2020; Ď?Â&#x2039;Â?Â&#x192;Â?Â&#x2026;Â&#x2021; Â&#x2122;Â&#x2018;Â&#x201D;Â?Â&#x2022; Â&#x192;Â?Â&#x2020; Â&#x2013;Â&#x160;Â&#x2021; Â&#x2022;Â&#x203A;Â&#x2022;Â&#x2013;Â&#x2021;Â?Â&#x2022; Â&#x192;Â?Â&#x2020; Â&#x2019;Â&#x201D;Â&#x2018;Â&#x2026;Â&#x2021;Â&#x2022;Â&#x2022;Â&#x2021;Â&#x2022; necessary   to   manage   and   report   on   this   will   allow   them  to  easily  adapt  to  all  situations  and  requirements.   @V\UNHTIP[PV\ZHJOPL]LYZ At   Phoenix   we   have   been   at   the   forefront   of   developing   such   people   now   for   six   years   and   we   Â&#x192;Â&#x201D;Â&#x2021;Â&#x2026;Â&#x2018;Â?Ď?Â&#x2039;Â&#x2020;Â&#x2021;Â?Â&#x2013;Â&#x2013;Â&#x160;Â&#x192;Â&#x2013;Â&#x2013;Â&#x160;Â&#x2021;Â&#x201E;Â&#x2014;Â&#x2022;Â&#x2039;Â?Â&#x2021;Â&#x2022;Â&#x2022;Â&#x2021;Â&#x2022;Â&#x192;Â?Â&#x2020;Â&#x2021;Â?Â&#x2013;Â&#x2039;Â&#x2013;Â&#x2039;Â&#x2021;Â&#x2022;Â&#x2013;Â&#x160;Â&#x2021;Â&#x203A; Â&#x152;Â&#x2018;Â&#x2039;Â? Â&#x2C6;Â&#x2021;Â&#x2021;Â&#x17D; Â&#x2013;Â&#x160;Â&#x2021; Â&#x201E;Â&#x2021;Â?Â&#x2021;Ď?Â&#x2039;Â&#x2013; Â&#x2021;Â&#x2DC;Â&#x2021;Â&#x201D;Â&#x203A; Â&#x2020;Â&#x192;Â&#x203A; Â&#x2018;Â&#x2C6; Â&#x2021;Â?Â&#x2019;Â&#x17D;Â&#x2018;Â&#x203A;Â&#x2039;Â?Â&#x2030; Â&#x2013;Â&#x160;Â&#x2021;Â&#x2022;Â&#x2021; talented  young  professionals  in  their  business. At  the  recent  ICAEW  Middle  East  Awards  we  were   proud   to   see   four   of   our   previous   and   current   students   making   up   the   nominations   list   for   â&#x20AC;&#x2DC;Young   Â&#x2026;Â&#x2026;Â&#x2018;Â&#x2014;Â?Â&#x2013;Â&#x192;Â?Â&#x2013; Â&#x2018;Â&#x2C6; Â&#x2013;Â&#x160;Â&#x2021; Â&#x2021;Â&#x192;Â&#x201D;ǯǤ Â? Â&#x2013;Â&#x160;Â&#x2021;Â?Â&#x2022;Â&#x2021;Â&#x17D;Â&#x2DC;Â&#x2021;Â&#x2022; Â&#x2013;Â&#x160;Â&#x2021;Â&#x203A; Â&#x2020;Â&#x2021;Ď?Â&#x2039;Â?Â&#x2021; Â&#x192;Â?Â&#x2039;Â&#x2026;Â&#x201D;Â&#x2018;Â&#x2026;Â&#x2018;Â&#x2022;Â?Â&#x2018;Â&#x2C6;Â&#x2013;Â&#x160;Â&#x2021;Â&#x2030;Â&#x201D;Â&#x2018;Â&#x2122;Â&#x2039;Â?Â&#x2030;Â&#x201E;Â&#x192;Â?Â&#x2020;Â&#x2018;Â&#x2C6;Â&#x203A;Â&#x2018;Â&#x2014;Â?Â&#x2030;Ď?Â&#x2039;Â?Â&#x192;Â?Â&#x2026;Â&#x2021; professionals  in  the  region.  Nauman  Mian  â&#x20AC;&#x201C;  a  dedicated  young  man  who  has   completed   his   ACCA   and   decided   to   â&#x20AC;&#x2DC;top   upâ&#x20AC;&#x2122;   this   Â&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;Ď?Â&#x2039;Â&#x2026;Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â?Â&#x201E;Â&#x203A;Â&#x2022;Â&#x2013;Â&#x2014;Â&#x2020;Â&#x203A;Â&#x2039;Â?Â&#x2030;Â&#x2C6;Â&#x2018;Â&#x201D;ÇĄÂ&#x192;Â?Â&#x2020;Â&#x201D;Â&#x2021;Â&#x2026;Â&#x2021;Â?Â&#x2013;Â&#x17D;Â&#x203A;Â&#x192;Â&#x2026;Â&#x160;Â&#x2039;Â&#x2021;Â&#x2DC;Â&#x2039;Â?Â&#x2030;ÇĄ Â&#x160;Â&#x2039;Â&#x2022;  Â&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;Ď?Â&#x2039;Â&#x2026;Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â? Â&#x2039;Â? Â&#x192;Â&#x2020;Â&#x2020;Â&#x2039;Â&#x2013;Â&#x2039;Â&#x2018;Â?Ǥ Â&#x192;Â&#x2014;Â?Â&#x192;Â? Â&#x160;Â&#x192;Â&#x2022; shown   huge   determination   over   recent   years   to   balance   work,   family   and   study   pressures   at   the   Â&#x2022;Â&#x192;Â?Â&#x2021;Â&#x2013;Â&#x2039;Â?Â&#x2021;Â&#x192;Â&#x2022;Â&#x2020;Â&#x2021;Â&#x2DC;Â&#x2021;Â&#x17D;Â&#x2018;Â&#x2019;Â&#x2039;Â?Â&#x2030;Â&#x160;Â&#x2039;Â&#x2022;Â&#x2019;Â&#x201D;Â&#x2018;Â&#x2C6;Â&#x2021;Â&#x2022;Â&#x2022;Â&#x2039;Â&#x2018;Â?Â&#x192;Â&#x17D;Â&#x2022;Â?Â&#x2039;Â&#x17D;Â&#x17D;Â&#x2022;Ǥ Â&#x2021;Â&#x2039;Â&#x2022; currently  CFO  of  Bayt.com  here  in  the  UAE.     Muhra   Al   Mulla   â&#x20AC;&#x201C;   a   young   Emirati   lady   who   is   now  combining  recent  motherhood  with  her  studies   Â&#x2013;Â&#x2018;Â&#x2122;Â&#x192;Â&#x201D;Â&#x2020;Â&#x2013;Â&#x160;Â&#x2021; Â&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;Ď?Â&#x2039;Â&#x2026;Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â?Â&#x2122;Â&#x160;Â&#x2039;Â&#x17D;Â&#x2021;Â&#x2019;Â&#x2014;Â&#x201D;Â&#x2022;Â&#x2014;Â&#x2039;Â?Â&#x2030;Â&#x160;Â&#x2021;Â&#x201D;

The huge benefit of professional qualification training in accountancy and finance is not only based in the skills and knowledge acquired, but the developed confidence to be able to deploy these attributes into a variety of situations.

34 January 2013

Nauman Asif Mian has DPNQMFUFEIJT"$$" BOEEFDJEFEUPAUPQ VQUIJTRVBMJmDBUJPO by studying for, and recently achieving, his *$"&8DFSUJmDBUJPO)F is currently the CFO of Bayt.com.

career  at  Deloitte.  Muhra  is  one  of  a  select  handful  of   students  working  under  the  auspices  of  the  ICAEW   Emiratisation   study   scheme   and   is   exhibiting   phenomenal  skills  in  balancing  all  aspects  of  her  life   including  her  duties  as  wife,  mother  and  employee   Â&#x2122;Â&#x160;Â&#x2039;Â&#x17D;Â&#x2022;Â&#x2013;Â&#x2019;Â&#x201D;Â&#x2018;Â&#x2030;Â&#x201D;Â&#x2021;Â&#x2022;Â&#x2022;Â&#x2039;Â?Â&#x2030;Â&#x201D;Â&#x192;Â&#x2019;Â&#x2039;Â&#x2020;Â&#x17D;Â&#x203A;Â&#x2013;Â&#x160;Â&#x201D;Â&#x2018;Â&#x2014;Â&#x2030;Â&#x160;Â&#x2013;Â&#x160;Â&#x2021;Â&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;Ď?Â&#x2039;Â&#x2026;Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â?Ǥ   Nanditha   Ramanathan   â&#x20AC;&#x201C;   an   extremely   competent,   intelligent   and   mature   young   lady,   Â&#x192;Â?Â&#x2020;Â&#x2039;Â&#x2013;Â&#x192;Â&#x160;Â&#x192;Â&#x2022;Â&#x17D;Â&#x2039;Â&#x2DC;Â&#x2021;Â&#x2020;Â&#x160;Â&#x2021;Â&#x201D;Â&#x2021;Â&#x2039;Â?Â&#x2013;Â&#x160;Â&#x2021;Â&#x2122;Â&#x2039;Â&#x2013;Â&#x160;Â&#x160;Â&#x2021;Â&#x201D;Â&#x2019;Â&#x192;Â&#x201D;Â&#x2021;Â?Â&#x2013;Â&#x2022; since   the   age   of   one.   She   has   completed   her   ACCA   Â&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;Ď?Â&#x2039;Â&#x2026;Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â? Â&#x192;Â?Â&#x2020; Â&#x2039;Â&#x2022; Â&#x2026;Â&#x2014;Â&#x201D;Â&#x201D;Â&#x2021;Â?Â&#x2013;Â&#x17D;Â&#x203A; Â&#x2122;Â&#x2018;Â&#x201D;Â?Â&#x2039;Â?Â&#x2030; Â&#x2122;Â&#x2039;Â&#x2013;Â&#x160;   in   their   Management   Consultancy   department.   Â&#x192;Â?Â&#x2020;Â&#x2039;Â&#x2013;Â&#x192; Â&#x2039;Â&#x2022; Â&#x192; Â&#x2026;Â&#x2018;Â?Ď?Â&#x2039;Â&#x2020;Â&#x2021;Â?Â&#x2013; Â&#x192;Â?Â&#x2020; Â&#x2013;Â&#x192;Â&#x17D;Â&#x2021;Â?Â&#x2013;Â&#x2021;Â&#x2020; Â&#x2019;Â&#x2014;Â&#x201E;Â&#x17D;Â&#x2039;Â&#x2026; Â&#x2022;Â&#x2019;Â&#x2021;Â&#x192;Â?Â&#x2021;Â&#x201D; who   will,   I   am   sure,   go   on   to   achieve   great   things   Â&#x2039;Â?Â&#x160;Â&#x2021;Â&#x201D;Ď?Â&#x2039;Â?Â&#x192;Â?Â&#x2026;Â&#x2021;Â&#x2026;Â&#x192;Â&#x201D;Â&#x2021;Â&#x2021;Â&#x201D;Č&#x201A;Â&#x2022;Â&#x160;Â&#x2021;Â&#x160;Â&#x2018;Â&#x2019;Â&#x2021;Â&#x2022;Â&#x2013;Â&#x2018;Â?Â&#x2018;Â&#x2DC;Â&#x2021;Â&#x2018;Â?Â&#x2013;Â&#x2018;Â&#x160;Â&#x2021;Â&#x201D; MBA  studies  in  the  near  future.    Anam  Sami  â&#x20AC;&#x201C;  Anam  is  an  intellectually  gifted  young   Â&#x17D;Â&#x192;Â&#x2020;Â&#x203A;Â&#x2122;Â&#x160;Â&#x2018;Â&#x2039;Â&#x2022;Â&#x192;Â&#x201D;Â&#x2021;Â&#x17D;Â&#x192;Â&#x2013;Â&#x2039;Â&#x2DC;Â&#x2021;Â&#x17D;Â&#x203A;Â?Â&#x2021;Â&#x2122;Â&#x201D;Â&#x2021;Â&#x2026;Â&#x201D;Â&#x2014;Â&#x2039;Â&#x2013;Â&#x2013;Â&#x2018;Â&#x2013;Â&#x160;Â&#x2021; Â&#x201D;Â&#x192;Â?Â?Â&#x2022; here   in   Dubai.   She   has   already   achieved   two   global   Ď?Â&#x2039;Â&#x201D;Â&#x2022;Â&#x2013;Â&#x2019;Â&#x201D;Â&#x2039;Â&#x153;Â&#x2021;Â&#x2022;Â&#x2039;Â?Â&#x192;Â&#x2122;Â&#x192;Â?Â&#x2020;Â&#x2014;Â&#x2020;Â&#x2039;Â&#x2013;Â&#x2039;Â?Â&#x2030;Â&#x192;Â&#x2022;Â&#x2019;Â&#x192;Â&#x201D;Â&#x2013;Â&#x2018;Â&#x2C6;Â&#x160;Â&#x2021;Â&#x201D; studies  in  the  last  two  sittings  and  recently  scored  an   Â&#x192;Â&#x17D;Â?Â&#x2018;Â&#x2022;Â&#x2013;Â&#x2014;Â?Â&#x2019;Â&#x201D;Â&#x2021;Â&#x2026;Â&#x2021;Â&#x2020;Â&#x2021;Â?Â&#x2013;Â&#x2021;Â&#x2020;ͳͲͲΨÂ&#x2039;Â?Â&#x160;Â&#x2021;Â&#x201D;Â&#x192;Â&#x2122;Â&#x2019;Â&#x192;Â&#x2019;Â&#x2021;Â&#x201D;ǤÂ&#x2018;Â&#x2013;Â&#x160; her  employer  and  Phoenix  are  incredibly  proud  of  the   global  footprint  she  is  establishing  for  the  region  with   Â&#x2013;Â&#x160;Â&#x2021;Â&#x2022;Â&#x2021;Â&#x201D;Â&#x2021;Â&#x2022;Â&#x2014;Â&#x17D;Â&#x2013;Â&#x2022;Â&#x192;Â?Â&#x2020;Â&#x2022;Â&#x160;Â&#x2021;Â&#x2022;Â&#x2013;Â&#x2039;Â&#x17D;Â&#x17D;Â&#x160;Â&#x192;Â&#x2022;Ď?Â&#x2039;Â&#x2DC;Â&#x2021;Â&#x2019;Â&#x192;Â&#x2019;Â&#x2021;Â&#x201D;Â&#x2022;Â&#x2013;Â&#x2018;Â&#x2030;Â&#x2018;Ǥ For  us  at  Phoenix,  perhaps  the  most  rewarding  thing   is  to  see  the  cultural,  gender  and  ethnic  diversity  of   Â&#x2013;Â&#x160;Â&#x2039;Â&#x2022; Â?Â&#x2018;Â?Â&#x2039;Â?Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â? Â&#x17D;Â&#x2039;Â&#x2022;Â&#x2013; Â&#x192;Â?Â&#x2020; Â&#x2013;Â&#x160;Â&#x2021; Â&#x2122;Â&#x192;Â&#x203A; Â&#x2013;Â&#x160;Â&#x2039;Â&#x2022; Â&#x201D;Â&#x2021;Ď?Â&#x17D;Â&#x2021;Â&#x2026;Â&#x2013;Â&#x2022; Â&#x2013;Â&#x160;Â&#x2021; tremendous  strength  that  this  brings  to  Dubai.   This  diversity  is  one  of  the  many  reasons  that,  for  so   Â?Â&#x192;Â?Â&#x203A;Â&#x2018;Â&#x2C6;Â&#x2014;Â&#x2022;ÇĄĎ?Â&#x2039;Â?Â&#x2020;Â&#x2014;Â&#x201E;Â&#x192;Â&#x2039;Â&#x2013;Â&#x2018;Â&#x201E;Â&#x2021;Â&#x2022;Â&#x2014;Â&#x2026;Â&#x160;Â&#x192;Â&#x2122;Â&#x2018;Â?Â&#x2020;Â&#x2021;Â&#x201D;Â&#x2C6;Â&#x2014;Â&#x17D;Â&#x2019;Â&#x17D;Â&#x192;Â&#x2026;Â&#x2021;


CAREER DEVELOPMENT

Â&#x2013;Â&#x2018;Â&#x17D;Â&#x2039;Â&#x2DC;Â&#x2021;ÇĄÂ&#x2020;Â&#x2018;Â&#x201E;Â&#x2014;Â&#x2022;Â&#x2039;Â?Â&#x2021;Â&#x2022;Â&#x2022;Â&#x192;Â?Â&#x2020;Â&#x201E;Â&#x201D;Â&#x2039;Â?Â&#x2030;Â&#x2014;Â&#x2019;Â&#x2026;Â&#x160;Â&#x2039;Â&#x17D;Â&#x2020;Â&#x201D;Â&#x2021;Â?Ǥ Â&#x2018;Â&#x2122;Â&#x2021;Â&#x2DC;Â&#x2021;Â&#x201D;ÇĄ the  nomination  of  Muhra  (who  then  went  on  to  win   the  â&#x20AC;&#x2DC;Young  Accountant  of  the  Year  Awardâ&#x20AC;&#x2122;  for  2012)   is  a  sign  of  how  things  are  developing  in  the  UAE. There  has  been  a  positive  drive  on  the  part  of  all  of   Â&#x2014;Â&#x2022; Â&#x2039;Â?Â&#x2DC;Â&#x2018;Â&#x17D;Â&#x2DC;Â&#x2021;Â&#x2020; Â&#x2039;Â? Â&#x2019;Â&#x201D;Â&#x2018;Â&#x2C6;Â&#x2021;Â&#x2022;Â&#x2022;Â&#x2039;Â&#x2018;Â?Â&#x192;Â&#x17D; Ď?Â&#x2039;Â?Â&#x192;Â?Â&#x2026;Â&#x2039;Â&#x192;Â&#x17D; Â&#x2021;Â&#x2020;Â&#x2014;Â&#x2026;Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â? Â&#x2039;Â? the  region  to  encourage  particularly  local  nationals,   to   see   Accountancy   as   a   valuable   and   meaningful   career  option.   ,TPYH[PZ[HRPUN\WHJJV\U[PUN For  many  years  now,  given  the  opportunity,  I  have   stressed  to  young  Emiratis  that  the  UAE  is  a  country   rich  in  resources  and  capital  and  it  is  incumbent  on   them  to  spend  time  developing  the  skills  to  enable   Â&#x2013;Â&#x160;Â&#x2021;Â? Â&#x2013;Â&#x2018; Â&#x17D;Â&#x2018;Â&#x2018;Â? Â&#x192;Â&#x2C6;Â&#x2013;Â&#x2021;Â&#x201D; Â&#x2013;Â&#x160;Â&#x2021;Â&#x2039;Â&#x201D; Â&#x2018;Â&#x2122;Â? Ď?Â&#x2039;Â?Â&#x192;Â?Â&#x2026;Â&#x2021;Â&#x2022;ÇĄ Â&#x2122;Â&#x2039;Â&#x2013;Â&#x160;Â&#x2018;Â&#x2014;Â&#x2013; placing   a   long   lasting   over-­â&#x20AC;?reliance   on   expatriates   like  myself. This  has  been  a  long  road  and  there  have  been  times   when   it   seems   like   little   progress   has   been   made   but  now  to  me  all  of  a  sudden  we  are  seeing  more   young   Emiratis   in   the   classroom   across   all   of   our   Â&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;Ď?Â&#x2039;Â&#x2026;Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â?Â&#x2022;Ǥ Â&#x2014;Â&#x160;Â&#x201D;Â&#x192; Â&#x2039;Â&#x2022; Â&#x152;Â&#x2014;Â&#x2022;Â&#x2013; Â&#x2018;Â?Â&#x2021;ÇĄ Â&#x192;Â&#x17D;Â&#x201E;Â&#x2021;Â&#x2039;Â&#x2013; Â&#x2021;Â&#x161;Â&#x2026;Â&#x2021;Â&#x17D;Â&#x17D;Â&#x2021;Â?Â&#x2013; example  of  this.  The  young  Emiratis  we  are  seeing   are   extremely   able   and   talented   and   as   in   her   case,   often   incredibly   determined.   Despite   the   strong   bias   amongst   many   areas   of   the   local   community   Â&#x2039;Â? Â&#x2022;Â&#x2021;Â&#x2021;Â&#x2039;Â?Â&#x2030; Ď?Â&#x2039;Â&#x2021;Â&#x17D;Â&#x2020;Â&#x2022; Â&#x2022;Â&#x2014;Â&#x2026;Â&#x160; Â&#x192;Â&#x2022; Â&#x2014;Â?Â&#x192;Â? Â&#x2021;Â&#x2022;Â&#x2018;Â&#x2014;Â&#x201D;Â&#x2026;Â&#x2021;Â&#x2022; Â&#x192;Â?Â&#x2020; Marketing  as  comparatively  attractive,  there  is  now   Â&#x192;Â&#x2030;Â&#x201D;Â&#x2018;Â&#x2122;Â&#x2039;Â?Â&#x2030;Â&#x201D;Â&#x2021;Â&#x192;Â&#x17D;Â&#x2039;Â&#x2022;Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â?ÇĄ Â&#x2013;Â&#x160;Â&#x2039;Â?Â?ÇĄÂ&#x2013;Â&#x160;Â&#x192;Â&#x2013;Ď?Â&#x2039;Â?Â&#x192;Â?Â&#x2026;Â&#x2021;Â&#x2039;Â&#x2022;Â&#x192;Â&#x2013;Â&#x2013;Â&#x160;Â&#x2021; centre  of  everything  in  business  and  commerce  and   Â&#x201E;Â&#x2021;Â&#x2039;Â?Â&#x2030; Â&#x192; Â&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;Ď?Â&#x2039;Â&#x2021;Â&#x2020; Â&#x2019;Â&#x201D;Â&#x2018;Â&#x2C6;Â&#x2021;Â&#x2022;Â&#x2022;Â&#x2039;Â&#x2018;Â?Â&#x192;Â&#x17D; Â&#x192;Â&#x2026;Â&#x2026;Â&#x2018;Â&#x2014;Â?Â&#x2013;Â&#x192;Â?Â&#x2013; Â&#x2018;Â&#x2019;Â&#x2021;Â?Â&#x2022; oneâ&#x20AC;&#x2122;s   career   up   to   many   and   varied   opportunities   including  the  highest  levels.

There has been a positive drive on the part of all of us involved in professional financial education in the region to encourage particularly local nationals, to see Accountancy as a valuable and meaningful career option. 7YVMLZZPVUHSZHZILHUJV\U[LYZ Things  have   changed   in   the   region   and   in   particular   in   the   UAE.   To   a   certain   extent   it   was   understandable   up   to   2008   to   see   accountants   as   bean   counters   simply   adding   up   how   much   money  businesses  had  made  in  the  previous  year.   After   all,   in   those   days   making   money   for   the   hugely   entrepreneurial   local   and   international   businesses   in   the   region   was   relatively   simple.   Financial  planning  and  strategy,  budgetary  control   and   planning   didnâ&#x20AC;&#x2122;t   seem   to   be   required   but   the   Ď?Â&#x2039;Â?Â&#x192;Â?Â&#x2026;Â&#x2039;Â&#x192;Â&#x17D;Â&#x2026;Â&#x201D;Â&#x2039;Â&#x2022;Â&#x2039;Â&#x2022;Â&#x2026;Â&#x160;Â&#x192;Â?Â&#x2030;Â&#x2021;Â&#x2020;Â&#x192;Â&#x17D;Â&#x17D;Â&#x2018;Â&#x2C6;Â&#x2013;Â&#x160;Â&#x192;Â&#x2013;Ǥ The   businesses   that   survived   and   grew,   and   indeed   are   now   thriving   again,   recognised   the   need   for   a   Â&#x160;Â&#x2014;Â&#x2030;Â&#x2021; Â&#x2022;Â&#x2013;Â&#x2021;Â&#x2019; Â&#x2026;Â&#x160;Â&#x192;Â?Â&#x2030;Â&#x2021; Â&#x2039;Â? Â&#x2013;Â&#x160;Â&#x2021; Ď?Â&#x2039;Â?Â&#x192;Â?Â&#x2026;Â&#x2039;Â&#x192;Â&#x17D; Â&#x2039;Â?Â&#x2013;Â&#x2021;Â&#x2030;Â&#x201D;Â&#x2039;Â&#x2013;Â&#x203A; Â&#x2018;Â&#x2C6; Â&#x2013;Â&#x160;Â&#x2021;Â&#x2039;Â&#x201D; Â&#x201E;Â&#x2014;Â&#x2022;Â&#x2039;Â?Â&#x2021;Â&#x2022;Â&#x2022;Â&#x2021;Â&#x2022;Â&#x192;Â?Â&#x2020;Â&#x2039;Â&#x2013;Â&#x2039;Â&#x2022;Â&#x2013;Â&#x160;Â&#x2021;Â&#x2022;Â&#x2021;Â&#x203A;Â&#x2018;Â&#x2014;Â?Â&#x2030;Ď?Â&#x2039;Â?Â&#x192;Â?Â&#x2026;Â&#x2021;Â&#x2019;Â&#x201D;Â&#x2018;Â&#x2C6;Â&#x2021;Â&#x2022;Â&#x2022;Â&#x2039;Â&#x2018;Â?Â&#x192;Â&#x17D;Â&#x2022; that  are  now  at  the  forefront  of  helping  businesses  to   Â&#x2019;Â&#x2014;Â&#x2013; Â&#x2013;Â&#x160;Â&#x2021; Â?Â&#x2014;Â&#x2026;Â&#x160; Â?Â&#x2021;Â&#x2021;Â&#x2020;Â&#x2021;Â&#x2020; Ď?Â&#x2039;Â?Â&#x192;Â?Â&#x2026;Â&#x2039;Â&#x192;Â&#x17D; Â&#x2022;Â&#x2013;Â&#x201D;Â&#x192;Â&#x2013;Â&#x2021;Â&#x2030;Â&#x2039;Â&#x2021;Â&#x2022;ÇĄ Â&#x2026;Â&#x2018;Â?Â&#x2013;Â&#x201D;Â&#x2018;Â&#x17D;Â&#x2022; and  reporting  mechanisms  into  place.   ,UZ\YPUNĂ&#x201E;UHUJPHSPU[LNYP[` Â&#x160;Â&#x2021;  Â&#x160;Â&#x192;Â&#x2022; Â&#x2013;Â&#x160;Â&#x2021; Ď?Â&#x2039;Â?Â&#x192;Â?Â&#x2026;Â&#x2039;Â&#x192;Â&#x17D; Â&#x201D;Â&#x2021;Â&#x2022;Â&#x2018;Â&#x2014;Â&#x201D;Â&#x2026;Â&#x2021;Â&#x2022; Â&#x192;Â?Â&#x2020; Â&#x2013;Â&#x192;Â&#x17D;Â&#x2021;Â?Â&#x2013; Â&#x2013;Â&#x2018; play  on  the  world  stage  but  if  it  wants  to  do  this,  I   Â&#x192;Â?Ď?Â&#x2039;Â&#x201D;Â?Â&#x17D;Â&#x203A;Â&#x2018;Â&#x2C6;Â&#x2013;Â&#x160;Â&#x2021;Â&#x2018;Â&#x2019;Â&#x2039;Â?Â&#x2039;Â&#x2018;Â?Â&#x2013;Â&#x160;Â&#x192;Â&#x2013;Â&#x2122;Â&#x2021;Â&#x2122;Â&#x2039;Â&#x17D;Â&#x17D;Â?Â&#x2021;Â&#x2021;Â&#x2020;Â&#x2013;Â&#x2018;Â&#x160;Â&#x192;Â&#x2DC;Â&#x2021; Â&#x2013;Â&#x160;Â&#x2021; Â?Â&#x2021;Â&#x2026;Â&#x2021;Â&#x2022;Â&#x2022;Â&#x192;Â&#x201D;Â&#x203A; Ď?Â&#x2039;Â?Â&#x192;Â?Â&#x2026;Â&#x2039;Â&#x192;Â&#x17D; Â&#x2022;Â?Â&#x2039;Â&#x17D;Â&#x17D;Â&#x2022; Â&#x2021;Â?Â&#x201E;Â&#x2021;Â&#x2020;Â&#x2020;Â&#x2021;Â&#x2020; Â&#x2039;Â?Â&#x2013;Â&#x2018; Â&#x2018;Â&#x2014;Â&#x201D; Â&#x201E;Â&#x2014;Â&#x2022;Â&#x2039;Â?Â&#x2021;Â&#x2022;Â&#x2022;Â&#x2021;Â&#x2022;Â&#x192;Â?Â&#x2020;Â&#x2039;Â?Â&#x2020;Â&#x2021;Â&#x2021;Â&#x2020; Â&#x2018;Â&#x2DC;Â&#x2021;Â&#x201D;Â?Â?Â&#x2021;Â?Â&#x2013;Â&#x2020;Â&#x2021;Â&#x2019;Â&#x192;Â&#x201D;Â&#x2013;Â?Â&#x2021;Â?Â&#x2013;Â&#x2022;Â&#x2013;Â&#x2018; Â&#x2021;Â?Â&#x2022;Â&#x2014;Â&#x201D;Â&#x2021;Â&#x2013;Â&#x160;Â&#x2021;Ď?Â&#x2039;Â?Â&#x192;Â?Â&#x2026;Â&#x2039;Â&#x192;Â&#x17D;Â&#x2039;Â?Â&#x2013;Â&#x2021;Â&#x2030;Â&#x201D;Â&#x2039;Â&#x2013;Â&#x203A;Â&#x2018;Â&#x2C6;Â&#x2018;Â&#x2014;Â&#x201D;Â&#x2021;Â&#x161;Â&#x2019;Â&#x192;Â?Â&#x2022;Â&#x2039;Â&#x2018;Â?Ǥ Â&#x160;Â&#x2018;Â&#x2021;Â?Â&#x2039;Â&#x161; Â?Â&#x2018;Â&#x2122; Â&#x2026;Â&#x2018;Â?Â&#x2020;Â&#x2014;Â&#x2026;Â&#x2013;Â&#x2022; Ď?Â&#x2039;Â?Â&#x192;Â?Â&#x2026;Â&#x2039;Â&#x192;Â&#x17D; Â&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;Ď?Â&#x2039;Â&#x2026;Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â? Â&#x201E;Â&#x192;Â&#x2022;Â&#x2021;Â&#x2020; Â&#x2013;Â&#x201D;Â&#x192;Â&#x2039;Â?Â&#x2039;Â?Â&#x2030; Â&#x2C6;Â&#x2018;Â&#x201D; Â&#x2018;Â&#x2DC;Â&#x2021;Â&#x201D;Â?Â?Â&#x2021;Â?Â&#x2013; Â&#x2021;Â&#x2019;Â&#x192;Â&#x201D;Â&#x2013;Â?Â&#x2021;Â?Â&#x2013;Â&#x2022; Â&#x192;Â?Â&#x2020; Sovereign   Wealth   funds   in   both   Dubai   and   Abu   Dhabi,   in   addition   we   produced   well   over   one   Â&#x160;Â&#x2014;Â?Â&#x2020;Â&#x201D;Â&#x2021;Â&#x2020;Â?Â&#x2021;Â&#x2122;Â&#x17D;Â&#x203A;Â&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;Ď?Â&#x2039;Â&#x2021;Â&#x2020;Â&#x192;Â&#x2026;Â&#x2026;Â&#x2018;Â&#x2014;Â?Â&#x2013;Â&#x192;Â?Â&#x2013;Â&#x2022;Â&#x2039;Â?ʹͲͳʹÂ&#x192;Â&#x17D;Â&#x2018;Â?Â&#x2021; â&#x20AC;&#x201C;  they  are  much  needed.  

Nanditha Ramanathan IBTDPNQMFUFEIFS "$$"RVBMJmDBUJPO and is currently working with KPMG in their Management Consultancy EFQBSUNFOU

The  receptionist-­â&#x20AC;?cum-­â&#x20AC;?accountant  job  adverts  are   still   t here   but   letâ&#x20AC;&#x2122;s   hope   it   is   not   for   much   longer.   For   Phoenix   in   2013,   it   is   going   to   be   more   of   t he   same  â&#x20AC;&#x201C;  we  w ill  continue  to  t ry  to  spread  t he  word   and  t urn  out  g reat  young  professionals  â&#x20AC;&#x201C;  we  have   had   the   award   winner   in   2011   (Mitali   Botadra)   and  now  in  2012  so  we  will  be  hoping  for  a  hat-­â&#x20AC;? trick  in  2013.     35


INTEGRATED REPORTING

Challenges are beginning to emerge, a year since the International Integrated Reporting Council launched its pilot programme to help create the world’s first integrated reporting framework. Nicola Maher reports on the developments so far...

I

NTEGRATED REPORTING (IR) has come a relatively long way in a short time. It has been just over two years since the International Integrated Reporting Council (IIRC) was formed through collaboration between the Global Reporting Initiative and the Prince’s Accounting for Sustainability Project. Š‡

ǯ• –ƒ• –‘ †‡˜‡Ž‘’ –Š‡ ™‘”Ž†ǯ• ϐ‹”•– ‰Ž‘„ƒŽŽ› ƒ……‡’–‡† ‹–‡‰”ƒ–‡† ”‡’‘”–‹‰ ˆ”ƒ‡™‘” ‹• ‰ƒ–Š‡”‹‰ ’ƒ…‡ǡ †”‹˜‡ „› –Š‡ ‡‡† ˆ‘” …‘”’‘”ƒ–‡ ”‡’‘”–‹‰ –‘ Šƒ˜‡ ˆ‡™‡” …‘’Ž‹ƒ…‡”‡“—‹”‡‡–•ǡ™‹–Š‘”‡‹–‡‰”ƒ–‡† –Š‹‹‰ƒ††‡…‹•‹‘Ǧƒ‹‰Ǥ

 ”‡’”‡•‡–• ƒ ‡˜‘Ž—–‹‘ ‹ …‘”’‘”ƒ–‡ ”‡’‘”–‹‰ ™Š‹…Š ‹–‡†• –‘ „—‹Ž† ‘ ”‡…‡– †‡˜‡Ž‘’‡–• ‹ ϐ‹ƒ…‹ƒŽ ƒ† ‘Ǧϐ‹ƒ…‹ƒŽ ”‡’‘”–‹‰ ™‹–Š –Š‡ ‰‘ƒŽ ‘ˆ ’”‘†—…‹‰ ƒ ƒ—ƒŽ ‹–‡‰”ƒ–‡† ”‡’‘”– ƒ„‘—– –Š‡ ™ƒ› ‹ ™Š‹…Š ƒ ‘”‰ƒ‹•ƒ–‹‘ǯ• •–”ƒ–‡‰›ǡ ‰‘˜‡”ƒ…‡ǡ ’‡”ˆ‘”ƒ…‡ƒ†’”‘•’‡…–•Ž‡ƒ†–‘–Š‡…”‡ƒ–‹‘ ƒ† ’”‡•‡”˜ƒ–‹‘ ‘ˆ •Š‘”–ǡ ‡†‹— ƒ† Ž‘‰Ǧ –‡”˜ƒŽ—‡Ǥ

36 January 2013

7YV[V[`WLMYHTL^VYR Š”‘—‰Š–Š‡Š‡Ž’‘ˆƒ’‹Ž‘–’”‘‰”ƒ‡ǡŽƒ—…Š‡† ‹ —‡ ʹͲͳͳǡ ƒ† ‘™ ‹˜‘Ž˜‹‰ ‘”‡ –Šƒ ͺͲ „—•‹‡••‡• ˆ”‘ †‹ˆˆ‡”‡– ‡…‘‘‹… •‡…–‘”• ƒ…”‘•• ‘”‡ –Šƒ ʹͲ …‘—–”‹‡•ǡ –Š‡

 Šƒ• Žƒ—…Š‡†ƒ†”ƒˆ–‘—–Ž‹‡‘ˆ–Š‡ ˆ”ƒ‡™‘”ǡƒ† ™‹ŽŽ Žƒ—…Š ƒ ’”‘–‘–›’‡ ˆ”ƒ‡™‘” „‡ˆ‘”‡ –Š‡ ‡† ‘ˆ –Š‡ ›‡ƒ”Ǥ Š‡ ƒ †”ƒˆ– ˆ”ƒ‡™‘” ™‹ŽŽ „‡ ’”‘†—…‡†‹‹†ǦʹͲͳ͵ǡˆ‘ŽŽ‘™‡†„›–Š‡†‡ϐ‹‹–‹˜‡ ˜‡”•‹‘‹Žƒ–‡ʹͲͳ͵Ǥ ›‡ƒ”‘ˆ”‘–Š‡Žƒ—…Š‘ˆ–Š‡’‹Ž‘–’”‘‰”ƒ‡ ƒ†…ŠƒŽŽ‡‰‡•ƒ†–”‡†•ƒ”‡„‡‰‹‹‰–‘‡‡”‰‡Ǥ

–‹•–Š‡•‡™Š‹…Šƒ”‡‡š’‡…–‡†–‘Š‡Ž’‡Šƒ…‡Š‘™ –Š‡‡˜‡–—ƒŽˆ”ƒ‡™‘”™‹ŽŽŽ‘‘ƒ†™‘”Ǥ –ƒ”‡…‡–

’‹Ž‘–’”‘‰”ƒ‡…‘ˆ‡”‡…‡ǡThe Accountant ˆ‘—† •‘‡ ‘ˆ –Š‡ „‹‰‰‡•– …ŠƒŽŽ‡‰‡• ‡‡”‰‹‰ ‹…Ž—†‡ǣ Ž‹‹‰ ‘Ǧϐ‹ƒ…‹ƒŽ ‹ˆ‘”ƒ–‹‘–‘…‘”‡•–”ƒ–‡‰›ǡ…‘”’‘”ƒ–‡•‹Ž‘•ǡ–Š‡ …Šƒ‰‹‰‘ˆ„‡Šƒ˜‹‘—”ǡƒ†‹–‡‰”ƒ–‡†–Š‹‹‰Ǥ *OHSSLUNLZLTLYNL  ˜‡•–‡–•ǯ•‡‹‘”‹˜‡•–‡–ƒƒ‰‡”‘ —”‘’‡ƒ ‡“—‹–‹‡• —•ƒƒ ‡Óƒ””—„‹ƒ ”ƒ‰—ƒ•


INTEGRATED REPORTING

‘™Ž‡†‰‡ ‘ˆ ‘–Š‡” ’ƒ”–• ‘ˆ –Š‡ „—•‹‡••Ȍ ™Š‹…Š ™‹ŽŽ„‡–Š‡„‹‰‰‡•–‹••—‡•ˆ‘”…‘’ƒ‹‡•’”‘†—…‹‰ ƒ‹–‡‰”ƒ–‡†”‡’‘”––‘‘˜‡”…‘‡Ǥ Š‡ ‘–Š‡” ‹••—‡ ‘ˆ …‘’Ž‹ƒ…‡ ”‡’‘”–‹‰ ‡ƒ• –Š‘•‡ ‹ …Šƒ”‰‡ …—””‡–Ž› –ƒ‡ ƒ ǮŠ‡ƒ†Ǧ†‘™ǯ •‘Ž‹–ƒ”› ƒ’’”‘ƒ…Š –‘ ”‡’‘”–‹‰ ƒ† –”›‹‰ –‘ „”‡ƒ–Šƒ–Šƒ„‹––‘ϐ‹†ƒ„‡––‡”™ƒ›‘ˆ”‡’‘”–‹‰ ™‹ŽŽƒŽ•‘„‡Šƒ”†ǡ„—–ǡŠ‡•–”‡••‡•ǡ‘‡–Šƒ–—•– „‡†‘‡Ǥ Dz‘‡–Š‡Ž‡••‹–‹•„‡‹‰‘˜‡”…‘‡ǡdz”—…ƒ‘–‡•Ǥ Dz  –Š‹ –Š‘•‡ –Šƒ– Œ‘‹ –Š‡ ’‹Ž‘– ’”‘‰”ƒ‡ —†‡”•–ƒ†–Š‡›‡‡†–‘Ž‹ˆ––Š‡‹”‡›‡•ǡ„—––Š‘•‡ ™Š‘ ƒ”‡ ƒ”‘—† –Š‡ ‘—–•‹†‡ǡ ƒ”‡ •–”—‰‰Ž‹‰Ǥ Š‡”‡ǯ• ƒŽ™ƒ›• –Š‡ …‘‡–ǡ …‡”–ƒ‹Ž› ˆ”‘ –Š‡ ϐ‹ƒ…‹ƒŽ”‡’‘”–‹‰…‘—‹–›ǡ™Š‹…Š…‘•–ƒ–Ž› •ƒ› Ǯ’Ž‡ƒ•‡ ‘ ‘”‡ ”‡’‘”–‹‰ǯǤ ‡ ƒ”‡ –”›‹‰ –‘ „”‹‰ ƒ„‘—– ƒ …Šƒ‰‡ ƒ† ‡˜‘Ž—–‹‘ ‹ …‘”’‘”ƒ–‡ ”‡’‘”–‹‰ǡ‘–…”‡ƒ–‡ƒ††‹–‹‘ƒŽ”‡’‘”–‹‰Ǥdz REACTION: IIRC Chairman Paul Druckman says it is the integrated thinking and silo effect that will be “the biggest issues for companies producing an integrated report to overcome.”

™ƒ”• ‹ –Š‡ …—””‡– ‡…‘‘‹… …Ž‹ƒ–‡ ‹– ‹• ‘– ‘Ž› „—•‹‡•• –ƒ‹‰ ƒ •Š‘”–Ǧ–‡” ƒ’’”‘ƒ…Š „—– Dz‡˜‡‹˜‡•–‘”•ƒ”‡‰‡––‹‰‘”‡•Š‘”––‡”dzƒ† —Ž‡•• –Š‡ …‘’ƒ‹‡• –ƒ‡ ƒ Ž‘‰Ǧ–‡” ƒ’’”‘ƒ…Š –‘”‡’‘”–‹‰Dz‘–Š‹‰™‹ŽŽ…Šƒ‰‡dzǤ Dz• •‘‘ ƒ• ›‘— Šƒ˜‡ –Š‡ …‘‡…–‹˜‹–› –Š‡ –Š‡ Ž‘‰Ǧ–‡” ˆ‘…—• ™‹ŽŽ ”‡–—”Ǥ Š‹• ‹• ‡šƒ…–Ž› ™Šƒ– ™‡ ™ƒ–Ǥ ‡ †‘ǯ– ™ƒ– –‘ ‹˜‡•– ˆ‘” Œ—•– ‘‡ ‘–Šǡdz‡Óƒ””—„‹ƒ ”ƒ‰—ƒ••ƒ›•Ǥ DzŠƒ–™‡†‘ƒ•ˆ‹ƒ…‹ƒŽ‹˜‡•–‘”•‹•™‡•–ƒ”– Ž‘‘‹‰ƒ––Š‡„—•‹‡••‘†‡Ž‘ˆ–Š‡…‘’ƒ›ǡ –Š‡ ™‡ Ž‘‘ ƒ– –Š‡ ‹†—•–”‹ƒŽ ‡˜‹”‘‡–ǡ –Š‡ …‘–‡š– –Š‡ …‘’ƒ› ‹• ‘’‡”ƒ–‹‰ ‘Ǥ ‡ –”›–‘•‡‡–Š‡ˆ‹ƒ…‹ƒŽ•–‘†ƒ›ǡ„—–—…Š‘”‡ ‹’‘”–ƒ–Ž› –”› –‘ ‹†‡–‹ˆ› …Šƒ‰‡ǡ ™Š‹…Š ™‹ŽŽ „‡ ‹’‘”–ƒ– ˆ‘” –Š‡ …‘’‡–‹–‹˜‡ ’‘•‹–‹‘ ‘ˆ –Š‹• …‘’ƒ› ‰‘‹‰ ˆ‘”™ƒ”†Ǥ † ™Šƒ– ‹–‡‰”ƒ–‡† ”‡’‘”–‹‰ ƒ…–—ƒŽŽ› ‹• ’”‘’‘•‹‰ ‹• ‡šƒ…–Ž›–Šƒ–Ǥdz *VTWSPHUJLYLWVY[PUN

 …Šƒ‹”ƒ ƒ—Ž ”—…ƒ •ƒ›• ‹– ‹• –Š‡ ‹–‡‰”ƒ–‡† –Š‹‹‰ ƒ† •‹Ž‘ ‡ˆˆ‡…– ȋ†‹ˆˆ‡”‡– †‹˜‹•‹‘• ™‹–Š‹ ƒ …‘’ƒ› Šƒ˜‹‰ Ž‹––Ž‡

Šƒ‰‹‰ –Š‡ …—Ž–—”‡ ‘ˆ ”‡’‘”–‹‰ ‹ ƒ …‘’ƒ› ™Š‡”‡ ‹†‹˜‹†—ƒŽ †‡’ƒ”–‡–• ’”‘†—…‡ –Š‡‹” •Šƒ”‡ ‘ˆ –Š‡ ‹ˆ‘”ƒ–‹‘ •‡’ƒ”ƒ–‡Ž› ‹• ƒ‘–Š‡” ‘„•–ƒ…Ž‡ –Šƒ– ™‹ŽŽ ‡‡† –‘ „‡ –ƒ…Ž‡† „‡ˆ‘”‡ ƒ ‹–‡‰”ƒ–‡†”‡’‘”–…ƒ„‡‡ˆˆ‡…–‹˜‡Ž›’”‘†—…‡†Ǥ 3HJRVMX\HSP[` ‡Óƒ””—„‹ƒ ”ƒ‰—ƒ• ƒ‰”‡‡•ǡ „—– ƒ††• –Šƒ– ‹–‡‰”ƒ–‹‰ –Š‡ •–”ƒ–‡‰› ‘ˆ –Š‡ …‘’ƒ› ƒ† DzŠ‘™ ƒƒ‰‡‡– ‹• ‹–‡‰”ƒ–‹‰   ˆƒ…–‘”• ‹ –Š‡•–”ƒ–‡‰›‘ˆ–Š‡…‘’ƒ›dz™‹ŽŽƒŽ•‘‡‡†–‘„‡ ™‘”‡†‘Ǥ Š‡‘–Š‡”’‘‹–•”—…ƒ‘–‡•ƒ”‡ƒ…‘’ƒ›ǯ• …‘–”‘Ž•ƒ†–Š‡Žƒ…‘ˆ“—ƒŽ‹–›‘ˆ–Š‡†ƒ–ƒ–Šƒ–‹• …—””‡–Ž›„‡‹‰…‘ŽŽ‡…–‡†‘—–•‹†‡–Š‡ϐ‹ƒ…‹ƒŽ•Ǥ Dz‘’ƒ‹‡• ™‹ŽŽ Šƒ˜‡ –‘ ‰‡– „‡––‡” †ƒ–ƒ ƒ† ‹ˆ‘”ƒ–‹‘ƒ†‘”‡…‘–”‘Ž•‘˜‡”–Š‡ǡ„—––Šƒ– ‹•…—””‡–Ž›’”‘˜‹‰–‘„‡†‹ˆϐ‹…—Ž–ǡdzŠ‡‡š’Žƒ‹•Ǥ Š‡”‡ ƒ”‡ …‘…‡”•Ǥ ‹”•–ǡ ˆ‘” …‘’ƒ‹‡• ƒŽ”‡ƒ†› ‰ƒ–Š‡”‹‰ ‘Ǧϐ‹ƒ…‹ƒŽ ‹ˆ‘”ƒ–‹‘ǡ –‘ ‰‡– –Š‹• †ƒ–ƒ –‘ ƒ Ž‡˜‡Ž ‘ˆ “—ƒŽ‹–› …‘’ƒ”ƒ„Ž‡ ™‹–Š

There is a fine line the IIRC needs to walk because by making the framework too flexible and less comparative, there is a risk people would use different metrics to suit their own needs.

37


INTEGRATED REPORTING

One of the criticisms that have been around corporate reporting is, it has become very compliance-­focused, rather than getting companies to tell their value story the way that they see it. –Š‡ ϐ‹ƒ…‹ƒŽ• ™‹ŽŽ –ƒ‡ –‘‘ Ž‘‰Ǥ ‡…‘†Ž›ǡ ˆ‘” …‘’ƒ‹‡• –Šƒ– Šƒ˜‡ ›‡– –‘ „‡‰‹ ‰ƒ–Š‡”‹‰ –Š‹• †ƒ–ƒǡ‹–™‘—Ž†–ƒ‡‡˜‡Ž‘‰‡”Ǥ Dz – Šƒ• –ƒ‡ –Š‡ ’ƒ•– ͳͲͲ ›‡ƒ”• –‘ ‰‡– ϐ‹ƒ…‹ƒŽ †ƒ–ƒ –‘ ™Š‡”‡ ‹– ‹• –‘†ƒ›ǡ „—– ™‡ Šƒ˜‡ǯ– ‰‘– ͳͲͲ ›‡ƒ”•–‘‰‡–‘–Š‡”†ƒ–ƒ–‘–Šƒ–•–ƒ†ƒ”†Ǥ‡†‘Ž‹˜‡ ‹ƒˆƒ•–Ǧ’ƒ…‡†™‘”Ž†ƒ†‹–™‹ŽŽ–ƒ‡–‹‡Ǥ › ˜‹‡™›‘—ǯ”‡–ƒŽ‹‰ƒ„‘—–‘‡‘”–™‘‘”–Š”‡‡›‡ƒ”• ‘–ƒŠ—†”‡†ǡdz”—…ƒ•ƒ›•…‘ϐ‹†‡–Ž›Ǥ 5VUÄUHUJPHSKH[H ”ƒœ‹Ž‹ƒ ‡˜‡Ž‘’‡– ƒ ȋȌ …‘”’‘”ƒ–‡ ”‡’‘”–‹‰ƒ†‰‘˜‡”ƒ…‡ƒ†˜‹•‘”Ÿ‹ƒƒ”‹ƒ†ƒ ‘•–ƒ‘”‰‡”–Š‹•…‘ϐ‹†‡––Šƒ–‡˜‡‹ˆ…‘’ƒ‹‡• ƒ”‡‘–›‡–’”‡’ƒ”‡†–‘’”‘˜‹†‡–Š‡‘Ǧϐ‹ƒ…‹ƒŽ †ƒ–ƒǡ ‘…‡ –Š‡› •–ƒ”– ‰ƒ–Š‡”‹‰ –Š‹• ‹ˆ‘”ƒ–‹‘ –Š‡‹”„—•‹‡••™‹ŽŽ„‡‡ϐ‹–Ǥ Dz – …ƒ „‡ ƒ ˜‡”› ’‘™‡”ˆ—Ž –‘‘Ž ˆ‘” ƒƒ‰‹‰ –Š‡ „—•‹‡•• ‹ –Š‡ ˆ—–—”‡ „‡…ƒ—•‡ ‹– ™‹ŽŽ ‰‹˜‡ –Š‡ ƒƒ‰‡”ƒ„”‘ƒ†‡”˜‹‡™‘ˆ–Š‡„—•‹‡••Ǥ‘–‘Ž› ™Šƒ– ƒˆˆ‡…–• ’”‘ϐ‹–ƒ„‹Ž‹–› ‘” ‘–ǡ „—– Š‘™ –Š‡ …‘’ƒ› „‡Šƒ˜‡• ƒ† ‹’ƒ…–• •‘…‹‡–› ƒ† –Š‡ ‡˜‹”‘‡–Ǥ  –Š‹ –Šƒ– †‡…‹•‹‘Ǧƒ‹‰ ‹ –Š‡ ˆ—–—”‡ ™‹ŽŽ „‡ —…Š ‘”‡ •‘Ž‹† ƒ† ”‡•’‘•‹„Ž‡ „‡…ƒ—•‡‘ˆ–Šƒ–ǡdzƒ‘•–ƒ‘”‰‡”–Š‡š’Žƒ‹•Ǥ ”—…ƒ”‡ƒ”•–Šƒ–’‡‘’Ž‡‡‡†–‘”‡‡„‡” –Š‡ ˆƒ…– –Šƒ– ‹– ‹‰Š– „‡ ƒ Dz‡˜‹”‘‡–ƒŽ ‹†‹…ƒ–‘”dzƒ…‘’ƒ›‹•Ž‘‘‹‰ƒ–ǡ„—–Dz‹ˆ‹–Šƒ•ƒ ‡ˆˆ‡…–‘–Š‡…‘’ƒ›ǯ•˜ƒŽ—‡ǡ‹–‹•ϐ‹ƒ…‹ƒŽdzǤ 9LN\SH[VY`YLX\PYLTLU[Z  ’ƒ”–‡”ƒ†

‡„‡”ƒ˜‹†ƒ––Š‡™• –Š‹•’‡‘’Ž‡•Š‘—Ž†ƒŽ•‘ˆ‘…—•‘–Š‡†‹ˆˆ‡”‡…‡ „‡–™‡‡–Š‡ϐ‹ƒ…‹ƒŽ‡†‘ˆƒ—ƒŽ”‡’‘”–‹‰ƒ† –Š‡ƒ””ƒ–‹˜‡‡†Ǥ DzŠ‡ϐ‹ƒ…‹ƒŽ†‘‡•–‡†–‘„‡†”‹˜‡„›†‡–ƒ‹Ž‡† ”‡“—‹”‡‡–•ǡ ™Š‡”‡ƒ• –Š‡ ƒ””ƒ–‹˜‡ Šƒ• “—‹–‡ ƒ Ž‘–‘”‡ϐŽ‡š‹„‹Ž‹–›‹–‡”•‘ˆ–Š‡‡š–‡––‘™Š‹…Š …‘’ƒ‹‡• †‘ ”‡’‘”– ƒ† –Š‡ ˜‘Ž—‡ –Šƒ– –Š‡› ‰‹˜‡ǡdzŠ‡‡š’Žƒ‹•Ǥ 38 January 2013

Dz –‡‰”ƒ–‡†”‡’‘”–‹‰‹–Šƒ–•‡•‡‹•ƒ„‘—–„‡––‡” ”‡’‘”–‹‰”ƒ–Š‡”–Šƒ‘”‡”‡’‘”–‹‰Ǥ †‘ǯ––Š‹ ”‡ƒŽ‹•–‹…ƒŽŽ› –Š‡”‡ ‹• Ž‹‡Ž› –‘ „‡ ƒ •—„•–ƒ–‹˜‡ …Šƒ‰‡ ‹ ”‡‰—Žƒ–‘”› ”‡“—‹”‡‡–• ‹ –Š‡ •Š‘”– –‡”Ǣ  –Š‹ –Šƒ– ‹– ™‹ŽŽ –ƒ‡ ƒ Ž‘‰‡” ’‡”‹‘† „‡ˆ‘”‡ ‹–‡‰”ƒ–‡† ”‡’‘”–‹‰ „‡…‘‡• ‡„‡††‡† ƒ† ‡‡–• –Š‡ …ƒ’‹–ƒŽ ƒ”‡–•ǯ ‡‡† ˆ‘” „‡––‡” ‹ˆ‘”ƒ–‹‘Ǥdz

 –‡”• ‘ˆ Š‘™ –Š‡  ˆ”ƒ‡™‘” ™‹ŽŽ ™‘”ǡ ”—…ƒ‡š’Žƒ‹•–Š‡

ǯ•‹–‡–‹‘‹•–‘ƒ‡ –Š‡ˆ”ƒ‡™‘”Dz‡š–”‡‡Ž›ϐŽ‡š‹„Ž‡ǡ™Š‹Ž‡’‘‹–‹‰ –‘–Š‡‡–”‹…•–Š‘•‡…‘’ƒ‹‡•ƒ›™ƒ––‘—•‡dzǤ Š‡”‡‹•Š‘™‡˜‡”ƒϐ‹‡Ž‹‡–Š‡

‡‡†•–‘™ƒŽ „‡…ƒ—•‡„›ƒ‹‰–Š‡ˆ”ƒ‡™‘”–‘‘ϐŽ‡š‹„Ž‡ƒ† Ž‡••…‘’ƒ”ƒ–‹˜‡–Š‡”‡‹•ƒ”‹•’‡‘’Ž‡™‘—Ž†—•‡ †‹ˆˆ‡”‡–‡–”‹…•–‘•—‹––Š‡‹”‘™‡‡†•Ǥ Dz –ǯ•ƒ„ƒŽƒ…‡Ǥ ˆ™‡ǯ”‡–‘‘ϐŽ‡š‹„Ž‡–Š‡›‘—™‘ǯ– Šƒ˜‡ ƒ› …‘’ƒ”ƒ„‹Ž‹–›Ǥ ˆ ™‡ǯ”‡ –‘‘ ”‹‰‹† –Š‡  –Š‹‹–‡‰”ƒ–‡†”‡’‘”–‹‰™‹ŽŽ‘–„‡‡ˆˆ‡…–‹˜‡Ǥ‡ Šƒ˜‡–‘ϐ‹†ƒ„ƒŽƒ…‡ǡdz”—…ƒ•ƒ›•Ǥ 9LSL]HU[TL[YPJ ƒ––Š‡™•ƒ††•–Šƒ–‹ˆ›‘—Dz–”›ƒ†•‡–‘—–ƒ†ϐ‹† ‡˜‡”›”‡Ž‡˜ƒ–‡–”‹…ˆ‘”‡˜‡”›‹†—•–”›™‡™‘ǯ– „‡–ƒŽ‹‰Œ—•––™‘›‡ƒ”•ǡ‹–™‹ŽŽ„‡ƒŽ‘–‘”‡dzǤ Dz †‘–Š‹‹–Šƒ•–‘„‡’”‹…‹’Ž‡•Ǧ„ƒ•‡†ƒ† –Š‹ –Š‡ ”‡ƒŽ‹–› ‹• –Š‡ ƒ”‡– ™‹ŽŽ ‡† —’ †‹…–ƒ–‹‰


INTEGRATED REPORTING

™Šƒ– ‹• ”‡Ž‡˜ƒ–Ǥ • …‘’ƒ‹‡• ‹ ’ƒ”–‹…—Žƒ” ‹†—•–”›•‡…–‘”•”‡’‘”–‘–Š‹‰•ǡ–Š‡”‡™‹ŽŽ„‡ ƒ †‡ƒ† ˆ‘” …‘’ƒ”ƒ„‹Ž‹–› ƒ† …‘•‹•–‡…›ǡ •‘ ™‡ ™‹ŽŽ ‰‡– –Šƒ– ’—ŽŽ ˆ‘” ‹‘˜ƒ–‹‘ ƒ• –‹‡ ’”‘‰”‡••‡•ǡdzŠ‡‡š’Žƒ‹•Ǥ Dz ƒ›™ƒ›• –Š‹‹–™‹ŽŽ…‘‡ˆ”‘‹˜‡•–‘”• ƒ† ˆ”‘ …ƒ’‹–ƒŽ ’”‘˜‹†‡”• Ž‹‡ „‹‰ †‡˜‡Ž‘’‡– „ƒ•–Šƒ–™‹ŽŽ‹•‹•–‘‡–”‹…•ǡ”ƒ–Š‡”–Šƒ

 ‹•‹•–‹‰Ǥ –Š‹‹–ǯ•†ƒ‰‡”‘—•ˆ‘”—•–‘‹•‹•–Ǥdz Da Costa   Borgerth   adds   that   at   BNDES   there   are   ƒŽ•‘ƒŽƒ”‰‡—„‡”‘ˆDz“—ƒŽ‹–ƒ–‹˜‡‹†‹…ƒ–‘”•–Šƒ– ™‡ –ƒ‡ ‹–‘ …‘•‹†‡”ƒ–‹‘ „‡ˆ‘”‡ ϐ‹ƒ…‹‰ ƒ …‘’ƒ›‹”ƒœ‹ŽdzǤ Dz  –Š‹ –Š‡”‡ǯ• ƒ †ƒ‰‡” –Šƒ– ‹ˆ ›‘— †‡ϐ‹‡ ™Šƒ– •Š‘—Ž† „‡ ”‡’‘”–‡† ‘ –Š‡ ›‘—ǯ”‡ –‘‘ •’‡…‹ϐ‹…Ǥ ƒ–Š‡” –Šƒ Ž‡ƒ˜‹‰ ‹– –‘ ’”‹…‹’Ž‡•ǡ ’”‡’ƒ”‡”• ™‹ŽŽ Ž‘‘ ƒ– –Š‹‰• Œ—•– –Š”‘—‰Š –Š‡ Ž‡• ‘ˆ ™Šƒ– –Š‡›ǯ”‡ ”‡“—‹”‡† –‘ ”‡’‘”–Ǥ ‡ ‘ˆ –Š‡ …”‹–‹…‹•• –Šƒ– Šƒ˜‡ „‡‡ ƒ”‘—† …‘”’‘”ƒ–‡ ”‡’‘”–‹‰ ‹•ǡ ‹– Šƒ•„‡…‘‡˜‡”›…‘’Ž‹ƒ…‡Ǧˆ‘…—•‡†ǡ”ƒ–Š‡”–Šƒ ‰‡––‹‰…‘’ƒ‹‡•–‘–‡ŽŽ–Š‡‹”˜ƒŽ—‡•–‘”›–Š‡™ƒ› –Šƒ––Š‡›•‡‡‹–ǡ™Š‹…Š‹•‰‘‹‰–‘„‡‘•–”‡Ž‡˜ƒ– ˆ‘”ƒ…‘—‹–›„ƒ•‡–‘—†‡”•–ƒ†›‘—”˜ƒŽ—‡ǡdz ƒ––Š‡™•‘–‡•Ǥ -P]LRL`WYVQLJ[Z ƒ–‡”‹ƒŽ‹–›‹•ƒŽ•‘„‡‹‰†‡„ƒ–‡†ƒ•–‘™Š‘•Š‘—Ž† †‡–‡”‹‡ ™Šƒ– ‹• ƒ–‡”‹ƒŽ ƒ† ™Šƒ– ‹• ‘–ǡ „—–

–Š‡”‡‹•…‘•‡•—•ƒ‘‰–Š‡

‡„‡”•–Šƒ– –Š‹••Š‘—Ž†„‡ƒ”‡–ǦŽ‡†Ǥ Dz Š‘’‡ƒƒ‰‡‡–†‡…‹†‡•™Šƒ–ƒ–‡”‹ƒŽ‹•ˆ‘” –Š‡ …‘’ƒ› ƒ† ˆ‘” –Š‡ „—•‹‡•• ‘†‡Ž ‰‘‹‰ ˆ‘”™ƒ”† ‹ –Š‡ •Š‘”–ǡ ‡†‹— ƒ† Ž‘‰ –‡”ǡdz ‡Óƒ””—„‹ƒ ”ƒ‰—ƒ••ƒ›•Ǥ ”—…ƒ•ƒ›•–Š‡”‡ƒ”‡ϐ‹˜‡‡›’”‘Œ‡…–•ˆ‘”–Š‡

–‘”‡•‘Ž˜‡„‡ˆ‘”‡‹–…ƒ•‡––Ž‡‘ƒˆ”ƒ‡™‘”Ǥ Š‡•‡ ‹…Ž—†‡ǣ „—•‹‡•• ‘†‡Žǡ ƒ–‡”‹ƒŽ‹–›ǡ …ƒ’‹–ƒŽ…‘‡…–‹˜‹–›ǡƒ†˜ƒŽ—‡Ǥ Dz‡ǯ”‡ƒŽ•‘†‘‹‰ƒ’”‘Œ‡…–‘ƒ••—”ƒ…‡ǡdzŠ‡•ƒ›•Ǥ DzŠ‘•‡ˆ‘—”’Ž—•ƒ••—”ƒ…‡ƒ”‡–Š‡‘‡•™‡Šƒ˜‡ –‘„‡††‘™Ǥ‹–Š‹–Š‡

–Š‡‘‡–Šƒ–…ƒ—•‡• –Š‡ ‘•– –Š‘—‰Š– ‹• –Š‡ ‘‡ ‘˜‡” ˜ƒŽ—‡ǡ „—– –Š‡ ‘•–…”‹–‹…ƒŽ‹–‡”•‘ˆˆ‘—†ƒ–‹‘‹•–Š‡„—•‹‡•• ‘†‡ŽǤ Š‹• ‹• „‡…ƒ—•‡ ‹–ǯ• Š‘™ „—•‹‡•• …”‡ƒ–‡• ˜ƒŽ—‡Ǥ Ž‡•• ™‡ …”‡ƒ–‡ •‘‡ ‰—‹†ƒ…‡ ‘ ™Šƒ– ™‡ ƒ”‡ Ž‘‘‹‰ ˆ‘” –Š‡ –‘ ”‡’‘”–ǡ ƒ† –Š‡”‡ ‹• …‘•‡•—•ǡ™‡™‹ŽŽ•–”—‰‰Ž‡ǤŠ‡’”‡Ž‹‹ƒ”›™‘” ‘ –Š‡ „—•‹‡•• ‘†‡Ž Šƒ• „‡‡ ™‡ŽŽ ”‡…‡‹˜‡†ǡ •‘  †‘ǯ– –Š‹ ‹–ǯ• ‰‘‹‰ –‘ „‡ ƒ ’”‘„Ž‡ǡ „—– ‘‡–Š‡Ž‡••‹–ǯ•ƒ˜‡”›…”‹–‹…ƒŽ’ŽƒǤdz 0UKLWLUKLU[HZZ\YHUJL ‘–Š‡” …‘…‡” ‹• ƒ••—”ƒ…‡ „‡…ƒ—•‡ ‹ˆ ›‘— Šƒ˜‡ ƒ …‘’ƒ› ”‡’‘”–‹‰ ‘ Ž‘–• ‘ˆ ‡–”‹…• ƒ† ˆ‘ŽŽ‘™‹‰ –Š‡  ˆ”ƒ‡™‘” –Š‡ ™‹–Š‘—– ‹†‡’‡†‡– ƒ••—”ƒ…‡ ‹– ”ƒ‹•‡• –Š‡ “—‡•–‹‘ ‘ˆ ™Š‡–Š‡”’‡‘’Ž‡–”—•––Šƒ–‹ˆ‘”ƒ–‹‘Ǥ ”—…ƒ •ƒ›• ƒ••—”ƒ…‡ …ƒ „‡ —†‡”–ƒ‡ ‘ ƒ› •‘”– ‘ˆ ‡–”‹…• ‘™ǡ „—– –Š‡ ƒ‹ …ŠƒŽŽ‡‰‡ ™‹ŽŽ „‡ ‘ –Š‡ Dz„”‘ƒ†‡” ”ƒ‰‡ ‘ˆ –Š‹‰• „‡‹‰ ƒ••—”‡†ǡƒ†–Š‡‘”‡™‘”–Šƒ–ǯ•‹˜‘Ž˜‡†ǡ™Š‹…Š •‘‡‘‡Šƒ•‰‘––‘’ƒ›ˆ‘”dzǤ ‘‡™‹ŽŽƒ”‰—‡–Šƒ–‹ˆ–Š‡ϐ‹ƒ…‹ƒŽ•…‘–‹—‡–‘ „‡ƒ••—”‡†ǡ„—––Š‡”‡•–‘ˆ–Š‡‹ˆ‘”ƒ–‹‘‹•‘– ƒ••—”‡†ǡ –Š‡ ‹– …‘—Ž† Žƒ… ‹–‡‰”‹–›Ǥ ‘™‡˜‡”ǡ ”—…ƒ ’‘‹–• ‘—– –Šƒ– ƒ– –Š‡ ‘‡– –Š‡ …‘”’‘”ƒ–‡ •‘…‹ƒŽ ”‡•’‘•‹„‹Ž‹–› ”‡’‘”– ‹• ‘– „‡‹‰ƒ••—”‡†ǡƒŽ–Š‘—‰ŠŠ‡ƒ–‹…‹’ƒ–‡•–Š‹•„‡‹‰ †‡˜‡Ž‘’‡†‹–Š‡•‡…‘†•–ƒ‰‡‘ˆ Ǥ Dz ’‡”•‘ƒŽŽ›ˆ‡‡Ž–Šƒ–™‹–Š‘—–ƒ••—”ƒ…‡ǡ‹–‡‰”ƒ–‡† ”‡’‘”–‹‰Žƒ…•…”‡†‹„‹Ž‹–›Ǥ—–Ž‡–ǯ•‘–ƒ••—‡™‡ǯ”‡ –ƒŽ‹‰ƒ„‘—––Š‡•ƒ‡–›’‡‘ˆƒ••—”ƒ…‡ƒ•™‡ǯ”‡ –ƒŽ‹‰ ƒ„‘—– ™‹–Š –Š‡ …—””‡– ϐ‹ƒ…‹ƒŽ ”‡’‘”–‹‰ „‡…ƒ—•‡™‡ǯ”‡‘–ƒ••—”‹‰†ƒ–ƒǡŠ‡‡š’Žƒ‹•Ǥ DzŠƒ–ǯ• ƒŽ”‡ƒ†› „‡‹‰ †‘‡Ǥ Šƒ– ™‡ǯ”‡ †‘‹‰ ‹• ƒ••—”‹‰ –Šƒ– –Š‡ ‹ˆ‘”ƒ–‹‘ ƒ† –Š‡ ƒ””ƒ–‹˜‡ 39


INTEGRATED REPORTING

–Šƒ–ǯ• †‡•…”‹„‹‰ –Š‡ •–”ƒ–‡‰› ‘ˆ –Š‡ „—•‹‡•• ‹• ƒ…–—ƒŽŽ› –Š‡ •–”ƒ–‡‰› ‘ˆ –Š‡ „—•‹‡••Ǥ –ǯ• ‘– One of the criticisms that have been around ƒ…–—ƒŽŽ›•ƒ›‹‰‹ˆ‹–ǯ•”‹‰Š–‘”™”‘‰ǡŒ—•––Šƒ––Š‹• ‹•™Šƒ––Š‡›ǯ”‡†‘‹‰ƒ†™‡…ƒƒ••—”‡›‘—–Š‹•‹• corporate reporting is, it has become very –Š‡‹”’ƒ–ŠǤdz

Dz –‡‰”ƒ–‡†”‡’‘”–‹‰‹–Šƒ–•‡•‡‹•ƒ„‘—–„‡––‡” THE PILOT PROGRAMME: ”‡’‘”–‹‰”ƒ–Š‡”–Šƒ‘”‡”‡’‘”–‹‰Ǥ †‘ǯ––Š‹ Participating countries ”‡ƒŽ‹•–‹…ƒŽŽ› –Š‡”‡ ‹• Ž‹‡Ž› –‘ „‡ ƒ •—„•–ƒ–‹˜‡ …Šƒ‰‡ ‹ ”‡‰—Žƒ–‘”› ”‡“—‹”‡‡–• ‹ –Š‡ •Š‘”– –‡”Ǣ  –Š‹ –Šƒ– ‹– ™‹ŽŽ –ƒ‡ ƒ Ž‘‰‡” ’‡”‹‘† „‡ˆ‘”‡ ‹–‡‰”ƒ–‡† ”‡’‘”–‹‰ „‡…‘‡• ‡„‡††‡† ƒ† ‡‡–• –Š‡ …ƒ’‹–ƒŽ ƒ”‡–•ǯ ‡‡† ˆ‘” „‡––‡” ‹ˆ‘”ƒ–‹‘Ǥdz

–ǯ•ƒ•Šƒ‡›‘—…ƒǯ–ϐ‹†ƒ†‹ˆˆ‡”‡–™‘”†ˆ‘”‹–ǡ „‡…ƒ—•‡  –Š‹ ™‡ Šƒ˜‡ –‘ –Š‹ ‘—–•‹†‡ –Š‡ „‘š ‹–‡”•‘ˆ™Šƒ–‹•–Š‡ƒ••—”ƒ…‡Ǥ –ǯ••–‹ŽŽ™‹–Š‹ –Š‡ ϐ‹ƒ…‹ƒŽ• ™‹ŽŽ –ƒ‡ –‘‘ Ž‘‰Ǥ ‡…‘†Ž›ǡ ˆ‘” –Š‡”‡‹–‘ˆ–Š‡ƒ••—”ƒ…‡’”‘˜‹†‡”•Ǥ –ǯ•‘–‡™ …‘’ƒ‹‡• –Šƒ– Šƒ˜‡ ›‡– –‘ „‡‰‹ ‰ƒ–Š‡”‹‰ –Š‹• •…‹‡…‡‹–‹•Œ—•–ƒ•Ž‹‰Š–Ž›†‹ˆˆ‡”‡––ƒ‡‘‹–Ǥdz †ƒ–ƒǡ‹–™‘—Ž†–ƒ‡‡˜‡Ž‘‰‡”Ǥ :\Z[HPUPUNPU[LYLZ[ Dz – Šƒ•™‡”‡ –ƒ‡ –Š‡ ’ƒ•– ͳͲͲ–Šƒ– ›‡ƒ”• –‘ ‰‡– ϐ‹ƒ…‹ƒŽ Š‡”‡ ‹‹–‹ƒŽ ™‘””‹‡• ‹ –Š‡ ™ƒ‡ ‘ˆ –Š‡ †ƒ–ƒ –‘ ™Š‡”‡ ‹– ‹• –‘†ƒ›ǡ „—– ™‡ Šƒ˜‡ǯ– ‰‘– ͳͲͲ

Ž‘„ƒŽ ‹ƒ…‹ƒŽ”‹•‹•ȋ Ȍ‹–™‘—Ž†„‡†‹ˆϐ‹…—Ž––‘ ›‡ƒ”•–‘‰‡–‘–Š‡”†ƒ–ƒ–‘–Šƒ–•–ƒ†ƒ”†Ǥ‡†‘Ž‹˜‡ …”‡ƒ–‡–Š‡‘‡–—–‘Žƒ—…Šƒ ˆ”ƒ‡™‘”ƒ† ‹ƒˆƒ•–Ǧ’ƒ…‡†™‘”Ž†ƒ†‹–™‹ŽŽ–ƒ‡–‹‡Ǥ › •—•–ƒ‹‹–‡”‡•–‹–Š‡’”‘Œ‡…–ǤŠ‡•‡…‘…‡”•Šƒ˜‡ ˜‹‡™›‘—ǯ”‡–ƒŽ‹‰ƒ„‘—–‘‡‘”–™‘‘”–Š”‡‡›‡ƒ”• „‡‡Žƒ‹†–‘”‡•–ƒ•ƒ‰”‘™‹‰—„‡”‘ˆ ‘”–—‡ͷͲͲ ‘–ƒŠ—†”‡†ǡdz”—…ƒ•ƒ›•…‘ϐ‹†‡–Ž›Ǥ …‘’ƒ‹‡•–ƒ‡’ƒ”–‹–Š‡’‹Ž‘–’”‘‰”ƒ‡Ǥ

 –‡”• ‘ˆ Š‘™ –Š‡  ˆ”ƒ‡™‘” ™‹ŽŽ ™‘”ǡ ”—…ƒ‡š’Žƒ‹•–Š‡

ǯ•‹–‡–‹‘‹•–‘ƒ‡ –Š‡ˆ”ƒ‡™‘”Dz‡š–”‡‡Ž›ϐŽ‡š‹„Ž‡ǡ™Š‹Ž‡’‘‹–‹‰ –‘–Š‡‡–”‹…•–Š‘•‡…‘’ƒ‹‡•ƒ›™ƒ––‘—•‡dzǤ

compliance-­focused, rather than getting DzŠ‡‘–Š‡”’‹‡…‡‘ˆ–Šƒ–‹•–Š‡›ǯ”‡‘–Œ—•––‡ŽŽ‹‰—• companies to tell their value story the way –Š‡‰‘‘†‡™•ǡ–Š‡›ǯ”‡–‡ŽŽ‹‰—•–Š‡™Š‘Ž‡‡™•Ǥ that they see it. Š‡ƒ••—”ƒ…‡‹•ƒ„•‘Ž—–‡Ž›…”‹–‹…ƒŽ–‘–Š‡’”‘…‡••Ǥ

5VUÄUHUJPHSKH[H Š‡”‡ƒ”‡ƒŽ•‘Ž‡ƒ†‡”•ˆ”‘…‘”’‘”ƒ–‡ǡ‹˜‡•–‡–ǡ ”ƒœ‹Ž‹ƒ ‡˜‡Ž‘’‡– ƒ ȋȌ …‘”’‘”ƒ–‡ ƒ……‘—–‹‰ǡ •‡…—”‹–‹‡•ǡ ”‡‰—Žƒ–‘”›ǡ ƒ…ƒ†‡‹… ƒ† ”‡’‘”–‹‰ƒ†‰‘˜‡”ƒ…‡ƒ†˜‹•‘”Ÿ‹ƒƒ”‹ƒ†ƒ •–ƒ†ƒ”†Ǧ•‡––‹‰ •‡…–‘”• ƒ• ™‡ŽŽ ƒ• –Š‡ –Š‹”† ‘•–ƒ‘”‰‡”–Š‹•…‘ϐ‹†‡––Šƒ–‡˜‡‹ˆ…‘’ƒ‹‡• •‡…–‘”‘–Š‡…‘—…‹Ž‹–•‡ŽˆǤ ƒ”‡‘–›‡–’”‡’ƒ”‡†–‘’”‘˜‹†‡–Š‡‘Ǧϐ‹ƒ…‹ƒŽ †ƒ–ƒǡ …‘—‹…ƒ–‹‘ ‘…‡ –Š‡› •–ƒ”– ‰ƒ–Š‡”‹‰ –Š‹• ‹ˆ‘”ƒ–‹‘

 †‹”‡…–‘” ‘ƒ–Šƒ ƒ„”‡› –Š‡‹”„—•‹‡••™‹ŽŽ„‡‡ϐ‹–Ǥ –Š‹•‹–ǯ•‡ƒ•‹‡”–‘‰‡––Š‡…‘˜‡”•ƒ–‹‘ƒ„‘—–  •–ƒ”–‡†•‹…‡–Š‡ „‡‰ƒǤ Dz – …ƒ „‡ ƒ ˜‡”› ’‘™‡”ˆ—Ž –‘‘Ž ˆ‘” ƒƒ‰‹‰ –Š‡ „—•‹‡•• ‹Šƒ• –Š‡’”‘„ƒ„Ž› ˆ—–—”‡ „‡…ƒ—•‡ ‹– ™‹ŽŽ ‰‹˜‡–Šƒ– –Š‡ DzŠ‡ …”‹•‹• Š‡Ž’‡† —• –‘ ‘’‡ ƒƒ‰‡”ƒ„”‘ƒ†‡”˜‹‡™‘ˆ–Š‡„—•‹‡••Ǥ‘–‘Ž› …‘˜‡”•ƒ–‹‘™‹–Š‹˜‡•–‘”•ƒ†•ƒ›ǮŽ‘‘–Š‡”‡ǯ• ™Šƒ– ƒˆˆ‡…–• ’”‘ϐ‹–ƒ„‹Ž‹–› ‘”„ƒ‹‰ ‘–ǡ „—–”‡‰—Žƒ–‹‘ Š‘™ –Š‡ ‰‘‹‰ –‘ „‡ …Šƒ‰‡ǯ Ȃ ˆ”‘ …‘’ƒ› „‡Šƒ˜‡• ‹’ƒ…–• •‘…‹‡–› ƒ† –Š‡ ”‹‰Š– –Š”‘—‰Š –‘ ƒ† …‘”’‘”ƒ–‡ ‰‘˜‡”ƒ…‡ …‘†‡• ‡˜‹”‘‡–Ǥ  –Š‹ –Šƒ– †‡…‹•‹‘Ǧƒ‹‰ ‹ –Š‡ „‡‹‰–‹‰Š–‡‡†—’ǡ–‘ƒ‡™ˆ‘…—•‘”‹•‹„ƒ• ˆ—–—”‡ ™‹ŽŽ „‡ —…Š ‘”‡ •‘Ž‹† ƒ† ”‡•’‘•‹„Ž‡ ƒ†ϐ‹ƒ…‹ƒŽ‹•–‹–—–‹‘•Ǥ –Š‹‹–ǯ•’”‘„ƒ„Ž›ƒŽ‘– „‡…ƒ—•‡‘ˆ–Šƒ–ǡdzƒ‘•–ƒ‘”‰‡”–Š‡š’Žƒ‹•Ǥ ‡ƒ•‹‡” ˆ‘” —• –‘ •ƒ› –Šƒ–ǯ• ’ƒ”– ‘ˆ •‘”–‹‰ ‘—– –Š‡ ϐ‹ƒ…‹ƒŽ…”‹•‹•Ǥ†…ƒ™‡–Š‹ƒ„‘—–…‘”’‘”ƒ–‡ ”—…ƒ”‡ƒ”•–Šƒ–’‡‘’Ž‡‡‡†–‘”‡‡„‡” ”‡’‘”–‹‰ ƒ• ™‡ŽŽǡ „‡…ƒ—•‡ ‹– †‡ƒŽ• ™‹–Š •‘‡ –Š‡–Š‡ ˆƒ…– –Šƒ–„› ‹–‘ ‹‰Š– „‡ƒŽŽƒ Dz‡˜‹”‘‡–ƒŽ ‘ˆ ‹••—‡•ǡ ‡ƒ• ‘ˆ –Š‡ǡ „—– †‡ƒŽ• ‹†‹…ƒ–‘”dzƒ…‘’ƒ›‹•Ž‘‘‹‰ƒ–ǡ„—–Dz‹ˆ‹–Šƒ•ƒ ™‹–Š •‘‡ ‘ˆ –Š‡ ‹••—‡• –Šƒ– ’‘•‡ ƒ ”‹• –‘ ›‘—” ‡ˆˆ‡…–‘–Š‡…‘’ƒ›ǯ•˜ƒŽ—‡ǡ‹–‹•ϐ‹ƒ…‹ƒŽdzǤ ‹˜‡•–‡–ǡdzƒ„”‡›•ƒ›•Ǥ 9LN\SH[VY`YLX\PYLTLU[Z  ’ƒ”–‡”ƒ†

‡„‡”ƒ˜‹†ƒ––Š‡™• –Š‹•’‡‘’Ž‡•Š‘—Ž†ƒŽ•‘ˆ‘…—•‘–Š‡†‹ˆˆ‡”‡…‡ The financial does tend to be driven by „‡–™‡‡–Š‡ϐ‹ƒ…‹ƒŽ‡†‘ˆƒ—ƒŽ”‡’‘”–‹‰ƒ† detailed requirements, whereas the narrative –Š‡ƒ””ƒ–‹˜‡‡†Ǥ

has quite a lot more flexibility in terms of the DzŠ‡ϐ‹ƒ…‹ƒŽ†‘‡•–‡†–‘„‡†”‹˜‡„›†‡–ƒ‹Ž‡† ”‡“—‹”‡‡–•ǡ ™Š‡”‡ƒ• –Š‡ ƒ””ƒ–‹˜‡ “—‹–‡ ƒ extent to which companies do report andŠƒ•the Ž‘–‘”‡ϐŽ‡š‹„‹Ž‹–›‹–‡”•‘ˆ–Š‡‡š–‡––‘™Š‹…Š volume that they…‘’ƒ‹‡• give. †‘ ”‡’‘”– ƒ† –Š‡ ˜‘Ž—‡ –Šƒ– –Š‡› ‰‹˜‡ǡdzŠ‡‡š’Žƒ‹•Ǥ 38 January 2013 40

Š‡”‡‹•Š‘™‡˜‡”ƒϐ‹‡Ž‹‡–Š‡

‡‡†•–‘™ƒŽ „‡…ƒ—•‡„›ƒ‹‰–Š‡ˆ”ƒ‡™‘”–‘‘ϐŽ‡š‹„Ž‡ƒ† Ž‡••…‘’ƒ”ƒ–‹˜‡–Š‡”‡‹•ƒ”‹•’‡‘’Ž‡™‘—Ž†—•‡ †‹ˆˆ‡”‡–‡–”‹…•–‘•—‹––Š‡‹”‘™‡‡†•Ǥ Dz –ǯ•ƒ„ƒŽƒ…‡Ǥ ˆ™‡ǯ”‡–‘‘ϐŽ‡š‹„Ž‡–Š‡›‘—™‘ǯ– Šƒ˜‡ ƒ› …‘’ƒ”ƒ„‹Ž‹–›Ǥ ˆ ™‡ǯ”‡ –‘‘ ”‹‰‹† –Š‡  –Š‹‹–‡‰”ƒ–‡†”‡’‘”–‹‰™‹ŽŽ‘–„‡‡ˆˆ‡…–‹˜‡Ǥ‡ Šƒ˜‡–‘ϐ‹†ƒ„ƒŽƒ…‡ǡdz”—…ƒ•ƒ›•Ǥ 9LSL]HU[TL[YPJ ƒ––Š‡™•ƒ††•–Šƒ–‹ˆ›‘—Dz–”›ƒ†•‡–‘—–ƒ†ϐ‹† ‡˜‡”›”‡Ž‡˜ƒ–‡–”‹…ˆ‘”‡˜‡”›‹†—•–”›™‡™‘ǯ– „‡–ƒŽ‹‰Œ—•––™‘›‡ƒ”•ǡ‹–™‹ŽŽ„‡ƒŽ‘–‘”‡dzǤ 4HYRL[[YLUKZ

– ‹• –Š‹• ƒ”‡–ǦŽ‡† ‹’‡–—• –Šƒ– ‹• ‡š’‡…–‡† –‘ Dz †‘–Š‹‹–Šƒ•–‘„‡’”‹…‹’Ž‡•Ǧ„ƒ•‡†ƒ† –Š‹ ‰‡–

 ‘ˆˆ –Š‡ ‰”‘—† ”ƒ–Š‡” –Šƒ ƒ ”‡‰—Žƒ–‘”› –Š‡ ”‡ƒŽ‹–› ƒ”‡– ™‹ŽŽ™Š‡”‡ ‡† —’ ‘‡ǡ —Ž‹‡‹• ‹–Š‡ ‘—–Š ˆ”‹…ƒǡ

†‹…–ƒ–‹‰ „‡…ƒ‡ ƒ ƒ†ƒ–‘”› ”‡“—‹”‡‡– ˆ‘” ‘Šƒ‡•„—”‰ –‘… š…Šƒ‰‡ǦŽ‹•–‡† …‘’ƒ‹‡• –‘ ’”‘†—…‡ ƒ ‹–‡‰”ƒ–‡†”‡’‘”–‘”‡š’Žƒ‹™Š›‘–Ǥ ‘™‡˜‡”ǡ ƒ– •‘‡ ’‘‹– –Š‡”‡ ™‹ŽŽ „‡ ƒ ‡‡† –‘ ’—•Š  ‘—– –‘ ƒ ™‹†‡” ‡– ‘ˆ …‘’ƒ‹‡• ‹ˆ –Š‡”‡ ‹• –‘ „‡ ƒ ‰Ž‘„ƒŽ …Šƒ‰‡ ‹ –Š‡ ™ƒ› …‘”’‘”ƒ–‹‘• ”‡’‘”–ǡƒ†”‡‰—Žƒ–‹‘‹•Ž‹‡Ž›–‘„‡–Š‡—†‰‡–‘ ‰‡––Š‹•†‘‡Ǥ Dz‡‰—Žƒ–‘”• ™ƒ–…Š ™Šƒ– Šƒ’’‡• ‹ –Š‡ ƒ”‡– ƒ•™‡ŽŽǤŠ‡›ǯŽŽ„‡™ƒ–…Š‹‰–Š‡•‡–”‡†•„‡…ƒ—•‡ ”‡‰—Žƒ–‘”• Ž‹‡ –Š‡  ‹ƒ…‹ƒŽ ‡’‘”–‹‰ ‘—…‹Žǯ• ‹‹–‹ƒ–‹˜‡• •–ƒ› ˜‡”› …Ž‘•‡ –‘ ƒ”‡– –”‡†•ƒ††‡˜‡Ž‘’‡–•ǤŠ‡›™‹ŽŽ„‡™ƒ–…Š‹‰ǡ ’ƒ”–‹…—Žƒ”Ž› ‰‹˜‡ –Š‡ •…ƒŽ‡ ƒ† •‹œ‡ ‘ˆ –Š‡ ‘”‰ƒ‹•ƒ–‹‘• ‹˜‘Ž˜‡† ‹ –Š‹•  ‘˜‡‡–ǡdz ƒ„”‡›…‘…Ž—†‡•Ǥ Š‡”‡ ‹• •–‹ŽŽ ƒ ™ƒ› –‘ ‰‘ ‹ ‰‡––‹‰ –Š‡ …ŠƒŽŽ‡‰‡• ‹”‘‡† ‘—– ƒ† –Š‡  ˆ”ƒ‡™‘” ‘ˆˆ–Š‡‰”‘—†„—–™‹–Š•‘—…Š‹–‡”‡•–ˆ”‘ –Š‡ –‘’ Ž‡˜‡Ž ‘ˆ „—•‹‡•• ƒ† –Š‡ ‹˜‡•–‘” …‘—‹–› ‹– ‹• Šƒ”† ‘– –‘ „‡Ž‹‡˜‡ –Š‹• ‹• –Š‡ ˆ—–—”‡‘ˆ…‘”’‘”ƒ–‡”‡’‘”–‹‰Ǥ


INTEGRATED REPORTING

™Šƒ– ‹• ”‡Ž‡˜ƒ–Ǥ • …‘’ƒ‹‡• ‹ ’ƒ”–‹…—Žƒ” –Š‡”‡‹•…‘•‡•—•ƒ‘‰–Š‡

‡„‡”•–Šƒ– ‹†—•–”›•‡…–‘”•”‡’‘”–‘–Š‹‰•ǡ–Š‡”‡™‹ŽŽ„‡ –Š‹••Š‘—Ž†„‡ƒ”‡–ǦŽ‡†Ǥ ƒ †‡ƒ† ˆ‘” …‘’ƒ”ƒ„‹Ž‹–› ƒ† …‘•‹•–‡…›ǡ •‘ ™‡ ™‹ŽŽ ‰‡– –Šƒ– ’—ŽŽ ˆ‘” ‹‘˜ƒ–‹‘ ƒ• –‹‡ Dz Š‘’‡ƒƒ‰‡‡–†‡…‹†‡•™Šƒ–ƒ–‡”‹ƒŽ‹•ˆ‘” 2L`WHY[PJPWHU[ZPU0U[LYUH[PVUHS0U[LNYH[LK9LWVY[PUN*V\UJPSWPSV[WYVNYHTTLHKKYLZZJOHSSLUNLZHUKO\YKSLZ –Š‡ …‘’ƒ› ƒ† ˆ‘” –Š‡ „—•‹‡•• ‘†‡Ž ‰‘‹‰ ’”‘‰”‡••‡•ǡdzŠ‡‡š’Žƒ‹•Ǥ L_WLJ[LKVU[OLQV\YUL`[V^HYKZZ[HUKHYKZL[[PUNWYVJLZZ ˆ‘”™ƒ”† ‹ –Š‡ •Š‘”–ǡ ‡†‹— ƒ† Ž‘‰ –‡”ǡdz Dz ƒ›™ƒ›• –Š‹‹–™‹ŽŽ…‘‡ˆ”‘‹˜‡•–‘”• ‡Óƒ””—„‹ƒ ”ƒ‰—ƒ••ƒ›•Ǥ Christoph D olderer,   d irector   of   †‡˜‡Ž‘’‡– ƒ† ˆ”‘ …ƒ’‹–ƒŽ ’”‘˜‹†‡”• Ž‹‡ „‹‰ Tai-­‐Hong  F ung,  s enior  m anager  of   „‡•–ˆ‹–ƒ†™‘”‘—–Š‘™‹–•Š‘—Ž† accounting   a nd  t axes  at  G erman   ”—…ƒ•ƒ›•–Š‡”‡ƒ”‡ϐ‹˜‡‡›’”‘Œ‡…–•ˆ‘”–Š‡ „ƒ•–Šƒ–™‹ŽŽ‹•‹•–‘‡–”‹…•ǡ”ƒ–Š‡”–Šƒ

 corporate accounting  i n  t he  US  at   „‡•–„‡ƒ’’Ž‹‡†Ǥ ˆ™‡ǯ”‡’”‘†—…‹‰ƒ utilities   c ompany  E nBW:

–‘”‡•‘Ž˜‡„‡ˆ‘”‡‹–…ƒ•‡––Ž‡‘ƒˆ”ƒ‡™‘”Ǥ ‹•‹•–‹‰Ǥ –Š‹‹–ǯ•†ƒ‰‡”‘—•ˆ‘”—•–‘‹•‹•–Ǥdz Microsoft: ’—„Ž‹•Š‡†ȏ‹–‡‰”ƒ–‡†Ȑ”‡’‘”–‘‡†ƒ›ǡ Š‡•‡ ‹…Ž—†‡ǣ „—•‹‡•• ‘†‡ŽǡŠ‘™†‘™‡’”‡•‡–‹–ƒ†Š‘™†‘‡•‹– ƒ–‡”‹ƒŽ‹–›ǡ What h ave   b een  t he   m ajor   Da   Costa   Borgerth   adds   that   at   BNDES   there   are  d id  …ƒ’‹–ƒŽ…‘‡…–‹˜‹–›ǡƒ†˜ƒŽ—‡Ǥ Why   M icrosoft  join  t he  pilot   ™‘”‹…‘””‡Žƒ–‹‘™‹–ŠƒŽŽ–Š‡‘–Š‡” challenges   of  producing  a n   ƒŽ•‘ƒŽƒ”‰‡—„‡”‘ˆDz“—ƒŽ‹–ƒ–‹˜‡‹†‹…ƒ–‘”•–Šƒ– programme? ”‡’‘”–‹‰™‡†‘Ǥdz integrated   r eport? ™‡ –ƒ‡ ‹–‘ …‘•‹†‡”ƒ–‹‘ „‡ˆ‘”‡ ϐ‹ƒ…‹‰ ƒ Dz‡ǯ”‡ƒŽ•‘†‘‹‰ƒ’”‘Œ‡…–‘ƒ••—”ƒ…‡ǡdzŠ‡•ƒ›•Ǥ Dz‹…”‘•‘ˆ–ǯ•ƒ……‘—–‹‰ƒ†”‡’‘”–‹‰ Dz‘‰‡––Š‡…‘‹–‡–ˆ”‘–Š‡ …‘’ƒ›‹”ƒœ‹ŽdzǤ †‹”‡…–‘”‘„ƒ—šǡ‹–Š‡Žƒ•–ͳͲǦͳʹ How  a re  you  t ackling  t he   DzŠ‘•‡ˆ‘—”’Ž—•ƒ••—”ƒ…‡ƒ”‡–Š‡‘‡•™‡Šƒ˜‡ „‘ƒ”†ǡ„‡…ƒ—•‡‹ˆ›‘—™ƒ––‘•‡– ›‡ƒ”•ǡŠƒ•„‡‡‹˜‘Ž˜‡†™‹–ŠŠ‘™–Š‡ materiality  i ssue?   —’ƒ’”‘Œ‡…–ƒ††‘ǯ–Šƒ˜‡–Š‡ Dz  –Š‹ –Š‡”‡ǯ• ƒ †ƒ‰‡” –Šƒ– ‹ˆ ›‘— †‡ϐ‹‡•–ƒ†ƒ”†Ǧ•‡––‹‰’”‘…‡••Šƒ•„‡‡ ™Šƒ– –‘„‡††‘™Ǥ‹–Š‹–Š‡

–Š‡‘‡–Šƒ–…ƒ—•‡• Dz ‘”‘—”‘™‹–‡”ƒŽ•–—†›™‡ƒ”‡ –Š‡ ‘•– –Š‘—‰Š– ‹• –Š‡ ‘‡ ‘˜‡” –ƒ‹‰ƒ…Ž‡ƒ•Š‡‡–ƒ’’”‘ƒ…ŠǤ‘ ˜ƒŽ—‡ǡ „—– –Š‡ …‘‹–‡–ˆ”‘–Š‡–‘’ǡ–Š‡‹–ǯ• •Š‘—Ž† „‡ ”‡’‘”–‡† ‘ –Š‡ ›‘—ǯ”‡ –‘‘ •’‡…‹ϐ‹…Ǥ ‰‘‹‰Ǥ ‡ǯ•„‡‡ƒ•–”‘‰ƒ†˜‘…ƒ–‡ ‘•–…”‹–‹…ƒŽ‹–‡”•‘ˆˆ‘—†ƒ–‹‘‹•–Š‡„—•‹‡•• “—‹–‡†‹ˆˆ‹…—Ž––‘…Šƒ‰‡–Š‡„‡Šƒ˜‹‘—” ƒ–Š‡” –Šƒ Ž‡ƒ˜‹‰ ‹– –‘ ’”‹…‹’Ž‡•ǡ ’”‡’ƒ”‡”• ˆ‘”‹’”‘˜‹‰…‘”’‘”ƒ–‡”‡’‘”–‹‰Ǥ ™‹–Š‹–Š‡ ˆ”ƒ‡™‘”ǡ™‡Šƒ˜‡–‘ …”‡ƒ–‡• ƒ†…—Ž–—”‡‹–Š‡…‘’ƒ›Ǥdz ™‹ŽŽ Ž‘‘ ƒ– –Š‹‰• Œ—•– –Š”‘—‰Š –Š‡ Ž‡• ‘ˆ†Š‡ǯ•™‘”‡†–‹”‡Ž‡••Ž›™‹–Š–Š‡ ™Šƒ– ‘†‡ŽǤ Š‹• ‹• „‡…ƒ—•‡ ‹–ǯ• Š‘™ „—•‹‡•• ™‘”‘—–Š‘™™‡ƒ’’Ž›‹––‘–Š‹‰•™‡ ˜ƒŽ—‡Ǥ Ž‡•• ™‡ …”‡ƒ–‡ •‘‡ ‰—‹†ƒ…‡ ‘ ™Šƒ– –Š‡›ǯ”‡ ”‡“—‹”‡† –‘ ”‡’‘”–Ǥ ‡ ‘ˆ –Š‡ …”‹–‹…‹•• ‹ƒ…‹ƒŽ……‘—–‹‰‡–‡”ǡ™Š‹…Š‹• –Š‹ƒŽ‘‰Ǧ–‡”‹˜‡•–‘”™‘—Ž†„‡ What a re  „‡‡ t he  bƒ”‘—† enefits? ƒ† –Š‡”‡ ‹• –Šƒ– Šƒ˜‡ …‘”’‘”ƒ–‡ ”‡’‘”–‹‰–Š‡•–ƒ†ƒ”†ƒ……‘—–‹‰„‘†›‹–Š‡ ‹•ǡ ‹– ™‡ ƒ”‡ Ž‘‘‹‰ ˆ‘” –Š‡ –‘ ”‡’‘”–ǡ ‹–‡”‡•–‡†‹Ǥ‡‘„˜‹‘—•Ž›‡‡†–‘ DzŠ‡„‡‡ˆ‹–•ƒ”‡”‡’‘”–•–Šƒ– …‘•‡•—•ǡ™‡™‹ŽŽ•–”—‰‰Ž‡ǤŠ‡’”‡Ž‹‹ƒ”›™‘” Šƒ•„‡…‘‡˜‡”›…‘’Ž‹ƒ…‡Ǧˆ‘…—•‡†ǡ”ƒ–Š‡”–Šƒ ™‹–Š–Š‡‡…—”‹–‹‡•ƒ†š…Šƒ‰‡ –Š‹‹––Š”‘—‰Šǡ–ƒ‹‰–Š‡Ž‡•ˆ”‘ ‡˜‡”›‘‡…ƒ—†‡”•–ƒ†„‡…ƒ—•‡™‡ ‘ –Š‡ „—•‹‡•• ‘†‡Ž Šƒ• „‡‡ –Š‡Ž‘‰Ǧ–‡”‹˜‡•–‘”Ǥdz ™‡ŽŽ ”‡…‡‹˜‡†ǡ ‰‡––‹‰…‘’ƒ‹‡•–‘–‡ŽŽ–Š‡‹”˜ƒŽ—‡•–‘”›–Š‡™ƒ› ‘‹••‹‘ȋȌǤŠ‹•’”‘Œ‡…–‹•ƒ ’—„Ž‹•Š‹ˆ‘”ƒ–‹‘–Šƒ–ǯ•”‡Ž‡˜ƒ–ǡ •‘  †‘ǯ– –Š‹ ‹–ǯ• ‰‘‹‰ –‘ „‡ ƒ ’”‘„Ž‡ǡ „—– –Šƒ––Š‡›•‡‡‹–ǡ™Š‹…Š‹•‰‘‹‰–‘„‡‘•–”‡Ž‡˜ƒ– ƒ˜‡—‡ˆ‘”Š‹–‘Š‡Ž’—•Ž‡ƒ†–Š‡™ƒ› ƒ†›‘—ˆ—Žˆ‹Ž–Š‡‡š’‡…–ƒ–‹‘•‘ˆ ‘‡–Š‡Ž‡••‹–ǯ•ƒ˜‡”›…”‹–‹…ƒŽ’ŽƒǤdz ˆ‘”ƒ…‘—‹–›„ƒ•‡–‘—†‡”•–ƒ†›‘—”˜ƒŽ—‡ǡdz †‡ˆ‹‹‰„‡––‡”…‘”’‘”ƒ–‡”‡’‘”–‹‰‹ Is  t here  a  r isk  of  e xposing  t oo  much   ›‘—”•–ƒ‡Š‘Ž†‡”•Ǥ –™‹ŽŽ‹…Ž—†‡ ƒ––Š‡™•‘–‡•Ǥ –Š‡ʹͳ•–…‡–—”›Ǥdz in  t he  US?   0UKLWLUKLU[HZZ\YHUJL ‡ƒ‹‰ˆ—Ž‹ˆ‘”ƒ–‹‘ǡ™Š‹…Š‹• Dz –Š‹–Šƒ–ǯ•ƒŽ™ƒ›•ƒ…ŠƒŽŽ‡‰‡ …‘…‡” ‹ˆ ›‘— ‘”‡–”ƒ•’ƒ”‡––Šƒ‹–Š‡’ƒ•–Ǥ -P]LRL`WYVQLJ[Z Why  d id  ‘–Š‡” M icrosoft   w ant  t‹• o  pƒ••—”ƒ…‡ roduce   „‡…ƒ—•‡ ‰‡––‹‰–Š‡”‹‰Š–„ƒŽƒ…‡‘ˆ†‹•…Ž‘•‹‰ Šƒ˜‡ ƒr eport? …‘’ƒ› ”‡’‘”–‹‰ ‘ Ž‘–• ‘ˆ ‡–”‹…• –‹Ž‹–›…‘’ƒ‹‡•ǡ‡•’‡…‹ƒŽŽ›ǡ‹ ƒ–‡”‹ƒŽ‹–›‹•ƒŽ•‘„‡‹‰†‡„ƒ–‡†ƒ•–‘™Š‘•Š‘—Ž† an  i ntegrated   –‘‘—…Š‘”–‘‘Ž‹––Ž‡Ǥ ”‘‘—”˜‹‡™ǡ –Š‡ ™‹–Š‘—–

‡”ƒ›ǡ‹–Š‡’ƒ•–Šƒ˜‡‘–„‡‡•‘ †‡–‡”‹‡ ™Šƒ– ‹• ƒ–‡”‹ƒŽ ƒ† ™Šƒ– ‹• ‘–ǡ „—– ƒ† ˆ‘ŽŽ‘™‹‰ –Š‡  ˆ”ƒ‡™‘”™‡†‹•…Ž‘•‡ƒŽ‘–‹‘—”ϐ‹ƒ…‹ƒŽ Dz ‘”—•‹–Š‡™‡ǯ”‡•–‹ŽŽ ‹†‡’‡†‡– ƒ••—”ƒ…‡ ‹– ”ƒ‹•‡• –Š‡ “—‡•–‹‘ ‘ˆ –”ƒ•’ƒ”‡–Ǥdz ‡š’‡”‹‡–‹‰Ǣ™‡ǯ”‡‘–‰‘‹‰–‘ •–ƒ–‡‡–•Ǥ ˆ›‘—Ž‘‘ƒ–‘—”ƒ—ƒŽ ™Š‡–Š‡”’‡‘’Ž‡–”—•––Šƒ–‹ˆ‘”ƒ–‹‘Ǥ „‡’—„Ž‹•Š‹‰ƒ”‡’‘”–ƒ›–‹‡•‘‘Ǥ ”‡’‘”–ǡ„ƒ…‹ͳͻͺ͸‹–™ƒ•͵Ͳ’ƒ‰‡• How do  you  determine  w hat’s   ‡ǯ”‡Œ—•––”›‹‰–‘—†‡”•–ƒ† Ž‘‰Ǥ‘™‹–ǯ•™‘”†›ƒ†‘”‡–ŠƒͳʹͲ ”—…ƒ •ƒ›• ƒ••—”ƒ…‡ …ƒ „‡ —†‡”–ƒ‡ ‘ material  t o  r eport  a nd  w hat  i s  not?   –Š‡ˆ”ƒ‡™‘”ǡƒ’’Ž›•‘‡‘ˆ–Š‡ ’ƒ‰‡•Ž‘‰Ǥ –ǯ•Šƒ”†–‘•ƒ›™Š‡–Š‡”™‡ ƒ› •‘”– ‘ˆ ‡–”‹…• ‘™ǡ „—– –Š‡ ƒ‹ …ŠƒŽŽ‡‰‡ Dz‘—ˆ‹†ƒ–‡”‹ƒŽ‹–›‹–Š‡ ‘™Ž‡†‰‡ƒ†•Ž‘™Ž›–”›–‘„—‹Ž†–Š‡ †‹•…Ž‘•‡–‘‘Ž‹––Ž‡‘”–‘‘—…Š„‡…ƒ—•‡ ™‹ŽŽ „‡ ‘ –Š‡ Dz„”‘ƒ†‡” ”ƒ‰‡ ‘ˆ‹–†‡’‡†•‘–Š‡ƒ—†‹‡…‡Ǥ‘‡ϐ‹†‹– –Š‹‰• „‡‹‰ ƒ……‘—–‹‰†‡’ƒ”–‡–ǤŠƒ–‹• ‘‡–—ǤŠ‡”‡‹•ƒ„‹‰‰‡”…”‹–‹…ƒŽ ƒ••—”‡†ǡƒ†–Š‡‘”‡™‘”–Šƒ–ǯ•‹˜‘Ž˜‡†ǡ™Š‹…Š ƒ–‡”‹ƒŽ‹•™Šƒ–™‡Šƒ˜‡–‘ƒ……‘—– ƒ••‘–Š‡™‡•–…‘ƒ•–ǡ‡•’‡…‹ƒŽŽ› —•‡ˆ—Žƒ†•‘‡†‘ǯ–Ǥdz •‘‡‘‡Šƒ•‰‘––‘’ƒ›ˆ‘”dzǤ ˆ‘”Ǥ –Š‹™‡–ƒ‡–Š‡ƒ’’”‘ƒ…Š ™‹–Š–Š‡–‡…Š‘Ž‘‰›ˆ‹”•„‡‹‰ ‘ˆƒ•‹‰‘—”•–ƒ‡Š‘Ž†‡”•™Šƒ– ‹–‡”‡•–‡†Ǥ –Š‹–Šƒ–™‹ŽŽ‰‹˜‡—•–Š‡ What  advice  would  you  offer   ‘‡™‹ŽŽƒ”‰—‡–Šƒ–‹ˆ–Š‡ϐ‹ƒ…‹ƒŽ•…‘–‹—‡–‘ ƒ–‡”‹ƒŽ‹ˆ‘”ƒ–‹‘–Š‡›™ƒ– ‘’’‘”–—‹–›–‘Ž‡ƒ†–Š‡…Šƒ”‰‡Ǥ‡ businesses  w anting  t o  produce  a n   „‡ƒ••—”‡†ǡ„—––Š‡”‡•–‘ˆ–Š‡‹ˆ‘”ƒ–‹‘‹•‘– –‘•‡‡ƒ†™‡ƒŽ•‘ƒ•‘—”„‘ƒ”† ƒŽ”‡ƒ†›Šƒ˜‡–Š‡‘™Ž‡†‰‡ǡ™‡Šƒ˜‡ integrated  r eport?   ƒ••—”‡†ǡ –Š‡ ‹– …‘—Ž† Žƒ… ‹–‡‰”‹–›Ǥ ‘™‡˜‡”ǡ ‡„‡”•™Šƒ–‹ˆ‘”ƒ–‹‘ˆ”‘–Š‡‹” –Š‡‡š’‡”–‹•‡•‘™‡…ƒ–Š‹ƒ„‘—– Dz ‡–ˆƒ‹Ž‹ƒ”™‹–Š›‘—”…‘…‡’–ǤŠ‡ ”—…ƒ ’‘‹–• ‘—– –Šƒ– ƒ– –Š‡ˆ‹”•–•–‡’‹•–”›‹‰–‘—†‡”•–ƒ†–Š‡ ‘‡– –Š‡ ’‡”•’‡…–‹˜‡‹•ƒ–‡”‹ƒŽǤdz Š‘™™‡…ƒ•Šƒ’‡‘”ˆ‘”‹–‡‰”ƒ–‡† …‘”’‘”ƒ–‡ •‘…‹ƒŽ ”‡•’‘•‹„‹Ž‹–› ”‡’‘”– ‹• ‘– ”‡’‘”–‹‰ƒ†Š‘™‹–™‘”•‹ˆ™‡ǯ”‡ ˆ”ƒ‡™‘”–‘•‡‡‹ˆ–Š‹•‹••‘‡–Š‹‰ „‡‹‰ƒ••—”‡†ǡƒŽ–Š‘—‰ŠŠ‡ƒ–‹…‹’ƒ–‡•–Š‹•„‡‹‰ Do  you  t hink  i ntegrated  r eporting   ‡˜‡”‰‘‹‰–‘’”‘†—…‡‘‡Ǥdz –Šƒ–‹•™‘”–Š™Š‹Ž‡ˆ‘”–Š‡…‘’ƒ› †‡˜‡Ž‘’‡†‹–Š‡•‡…‘†•–ƒ‰‡‘ˆ Ǥ–‘†‘ǤŠ‹–Š”‘—‰Š™Šƒ–›‘—” will  s pread  w ithout  r egulatory   impetus? What  a re  t he  m ajor  c hallenges   ‹–‡‰”ƒ–‡†•–”ƒ–‡‰›‹•ǡƒ†–Š‡ Dz ’‡”•‘ƒŽŽ›ˆ‡‡Ž–Šƒ–™‹–Š‘—–ƒ••—”ƒ…‡ǡ‹–‡‰”ƒ–‡† Dz –Š‹ƒ–ˆ‹”•–™‡•Š‘—Ž†–”›–‘ encountered   s o  f ar?   ‰‡–‡†—…ƒ–‡†ǤŠ‡”‡ǯ•ƒŽ‘–‘ˆ‰‘‘† ”‡’‘”–‹‰Žƒ…•…”‡†‹„‹Ž‹–›Ǥ—–Ž‡–ǯ•‘–ƒ••—‡™‡ǯ”‡ ’—•Š–Š‹•‘ƒ˜‘Ž—–ƒ”›„ƒ•‹•–‘ Dz”›‹‰–‘„—‹Ž†ƒ–‡ƒǡ•‘–”›‹‰–‘ ‹ˆ‘”ƒ–‹‘‘—––Š‡”‡Ǥ ”‡…‡–Ž› –ƒŽ‹‰ƒ„‘—––Š‡•ƒ‡–›’‡‘ˆƒ••—”ƒ…‡ƒ•™‡ǯ”‡ see   w hether   t he   m arket   f orces   a   ˆ‹†”‡•‘—”…‡•Ǥ‡‘’Ž‡Šƒ˜‡†ƒ›Œ‘„•ǡ ƒ––‡†‡†ƒ™‡„…ƒ•–„›–Š‡‹‰ ‘—” –ƒŽ‹‰ ƒ„‘—– ™‹–Š –Š‡ …—””‡– ϐ‹ƒ…‹ƒŽ ”‡’‘”–‹‰ …‘’ƒ›–‘’—„Ž‹•Šƒ‹–‡‰”ƒ–‡† •‘‹–ǯ•‡˜‡”˜‡”›‡ƒ•›–‘ˆ‹–‹ƒŽŽ–Š‹• ˆ‹”•ǡ™Š‘ƒ”‡‘™Ž‡†‰‡ƒ„Ž‡ƒ„‘—– „‡…ƒ—•‡™‡ǯ”‡‘–ƒ••—”‹‰†ƒ–ƒǡŠ‡‡š’Žƒ‹•Ǥ ”‡’‘”–Ǥ ˆ–Š‹•‹•‘–’‘••‹„Ž‡ǡ™‡ ™‘”–Šƒ–™‡†‘ƒŽ”‡ƒ†›ƒŽ‘‰™‹–Š –Š‡’”‘…‡••ǡ‡•’‡…‹ƒŽŽ›•—•–ƒ‹ƒ„‹Ž‹–› Šƒ˜‡–‘–Š‹ƒ„‘—–™Š‡–Š‡”‹–ǯ•ƒ –Š‡ˆ”ƒ‡™‘”’”‘Œ‡…–Ǥ‡Ž‹‡ƒŽ‘– ƒ……‘—–‹‰ǡ•‘ –Š‹–Šƒ–™‘—Ž† DzŠƒ–ǯ• ƒŽ”‡ƒ†› „‡‹‰ †‘‡Ǥ Šƒ– probably   ™‡ǯ”‡ †‘‹‰ ‰‘‘†–Š‹‰–‘ƒ•‘—””‡‰—Žƒ–‘”•–‘ ‘ˆ‹†‡ƒ•‹–Š‡ˆ”ƒ‡™‘”ǡ„—–‹–ǯ•‘– b e  ‹• t he  b est  w ay  t o  s tart   ƒ••—”‹‰ –Šƒ– –Š‡ ‹ˆ‘”ƒ–‹‘ ƒ†–ƒ…Ž‹‰‹–ǤdzThe   –Š‡ ƒ””ƒ–‹˜‡ Accountant,  UK   ƒ‡–Š‹•…‘’—Ž•‘”›Ǥdz …‘’Ž‡–‡›‡–Ǥ‡ǯ”‡–”›‹‰–‘ˆ‹†–Š‡ 41 39


PERSONALITY & PRACTICE

PINNACLE

OF SUCCESS

From climbing corporate ladders to summiting worldâ&#x20AC;&#x2122;s tallest mountains, Mark Shuttleworth, the CFO of telecommunications company du, is a high achiever whose mantra is peak performance

42 January 2013


PERSONALITY & PRACTICE

SHANE PHILLIPS MANAGING DIRECTOR, SHANE PHILLIPS CONSULTANTS

C

LIMBING THE world’s Seven Summits is a serious undertaking even for any seasoned mountaineer.

For Mark   Shuttleworth,   the   Chief   ‹ƒ…‹ƒŽ ˆϐ‹…‡” ‘ˆ ‹”ƒ–‡• –‡‰”ƒ–‡† ‡Ž‡…‘—‹…ƒ–‹‘• ‘’ƒ› ȋ†—Ȍǡ –Š‡ •…ƒŽ‡ ‘ˆ –Š‡ …ŠƒŽŽ‡‰‡ ™ƒ•ǯ– Ž‘•– ‘ Š‹ ™Š‡ Š‹• †ƒ—‰Š–‡”ƒ’’”‘ƒ…Š‡†Š‹™‹–Š–Š‡‹†‡ƒǤ ƒ” ƒ† Š‹• †ƒ—‰Š–‡” ‡ƒƒ …‘“—‡”‡† –Š‡ ‡˜‡ —‹–• ‹ ƒ ˆ‡ƒ– –Šƒ– ’—– –Š‡ ‹ –Š‡ Š‹•–‘”› „‘‘• ƒ• ‘‡ ‘ˆ ‘Ž› –™‘ ˆƒ–Š‡”Ǧƒ†Ǧ †ƒ—‰Š–‡” –‡ƒ• –‘ Šƒ˜‡ •—‹–‡† –Š‡ Š‹‰Š‡•– ‘—–ƒ‹• ‘ˆ ‡ƒ…Š ‘ˆ –Š‡ •‡˜‡ …‘–‹‡–•Ǥ † ƒ– ͳͻ ›‡ƒ”• ‘ˆ ƒ‰‡ǡ ‡ƒƒ ‹• –Š‡ ›‘—‰‡•– ”‹–‹•Šˆ‡ƒŽ‡ƒ†–Š‡•‡…‘†›‘—‰‡•–ˆ‡ƒŽ‡ ‹–Š‡™‘”Ž†–‘…‘’Ž‡–‡–Š‡Ǥ Dz  †‹† ‘– ‘™ ™Šƒ–  ™ƒ• ‹ ˆ‘” ™Š‡  ƒ‰”‡‡† –‘ ‡ƒƒǯ• ”‡“—‡•– –‘ …Ž‹„ –Š‡ ‡˜‡ —‹–•Ǥ –‹••‹’Ž›–Š‡„‹‰‰‡•–Ž‹ˆ‡Ǧ…Šƒ‰‹‰ ‡˜‡– Šƒ˜‡‡š’‡”‹‡…‡†‹–Š‡Žƒ•–ˆ‹˜‡›‡ƒ”•ǡdz ƒ”•ƒ‹†Ǥ (TVTLU[[OH[JOHUNLKT`SPML ‘” –Š‘•‡ ™Š‘ ƒ”‡ —ƒ……—•–‘‡† –‘ –Š‡ ‡˜‡ —‹–• …ŠƒŽŽ‡‰‡ǡ ‹– ‡ƒ• ›‘— Šƒ˜‡ –‘ –”ƒ˜‡Ž ƒ”‘—†–Š‡™‘”Ž†ƒ†…Ž‹„–Š‡Š‹‰Š‡•–‘—–ƒ‹ ‘‡˜‡”›…‘–‹‡–Ǥ Dz‡‡‹‰ƒŽŽ•‡˜‡…‘–‹‡–•ƒ†–Š‡‹””‡•’‡…–‹˜‡ ‘—–ƒ‹ ”ƒ‰‡• ‹• ƒ ‡š’‡”‹‡…‡ ‹ ‹–•‡ŽˆǤ ‡‡‹‰ ˜‡”‡•–ǡ Š‘™‡˜‡”ǡ ™ƒ• „”‡ƒ–Š–ƒ‹‰Ǥ –ǯ• ƒ‘‡– ™‹ŽŽ‡˜‡”ˆ‘”‰‡–ƒ†…Ž‹„‹‰‹–Šƒ• …Šƒ‰‡†›Ž‹ˆ‡ˆ‘”‡˜‡”Ǥdz

PROUD ACCOUNTANT: “I remember deciding to become a Chartered Accountant when I was 18 years old and my father said, ‘I have never seen a poor accountant’ – that advice still holds true today.”

 ƒ ‡š…Ž—•‹˜‡ ‹–‡”˜‹‡™ ™‹–Š Accountant Middle  East,ƒ””‡˜‡ƒŽ‡†–Šƒ–Š‡—•‡•–Š‡•ƒ‡ –”‹—’Š•ǡ ƒ…Š‹‡˜‡‡–• ƒ† ˜‹‰‘—” ‘—–•‹†‡ ‘ˆ ™‘”’Žƒ…‡ –‘ •–‡‡” Š‹• ϐ‹ƒ…‡ –‡ƒ ƒ– †— „› Š‡Ž’‹‰‘–Š‡”•‹†‡–‹ˆ›–Š‡‹”’‡”•‘ƒŽ’ƒ••‹‘• ƒ†–‘—•‡–Š‡ƒ•ˆ‘—†ƒ–‹‘•ˆ‘”’—”’‘•‡ˆ—Žǡ ‡’‘™‡”‡†ƒ†ˆ—Žϐ‹ŽŽ‹‰Ž‹˜‡•Ǥ 43


PERSONALITY & PRACTICE

“Seeing all seven continents and their respective mountain ranges is an experience in itself. Seeing Everest, however, was breathtaking. It’s a moment I will never forget and climbing it has changed my life forever.” • –Š‡   ‘ˆ †—ǡ –Š‡ ‡š‡…—–‹˜‡ —†‘—„–‡†Ž› Šƒ• ƒ …ŠƒŽŽ‡‰‹‰ Œ‘„Ǥ Š‡ …‘’ƒ› Šƒ† ƒ –—”‘˜‡” ‘ˆ ƒ”‘—† ̈́͵ „‹ŽŽ‹‘ ‹ ʹͲͳͳ ƒ† „‘ƒ•–• ‘˜‡” •‹š ‹ŽŽ‹‘ ‘„‹Ž‡ …—•–‘‡”•Ǥ Š‡ ƒ—ƒŽ”‡•—Ž–•ˆ‘”ʹͲͳʹƒ”‡‘–›‡–’‘•–‡†„—– ‰‹˜‡ –Š‡ …‘’ƒ›ǯ• ‹’”‡••‹˜‡ †‘—„Ž‡Ǧ†‹‰‹– ‡ƒ”Ǧ‘Ǧ‡ƒ” ‰”‘™–Š ”ƒ–‡•ǡ ™‡ …ƒ ‹ƒ‰‹‡ –Šƒ– –Š‹• ƒ› „‡ ƒ‘–Š‡” ”‡…‘”† ›‡ƒ” ˆ‘” –Š‡ –‡Ž‡…‘‰‹ƒ–Ǥ ‘” ƒ› ’‡‘’Ž‡ǡ ™‘”‹‰ ƒ• –Š‡   ‘ˆ •—…Š ƒ ”ƒ’‹†Ž›‡š’ƒ†‹‰„—•‹‡••™‘—Ž†„‡…ŠƒŽŽ‡‰‹‰ ‡‘—‰ŠǤ‹–Šƒˆ”‡‡–‹…•…Š‡†—Ž‡ƒ†„—•›–‡ƒ–‘ ƒƒ‰‡ǡƒ”™ƒ•ǯ–‹‡‡†‘ˆƒŽ‹ˆ‡Ǧ–Š”‡ƒ–‡‹‰ ƒ†˜‡–—”‡ˆ‘”ƒƒ†”‡ƒŽ‹”—•ŠǤ ;YHNLK`VU4V\U[,]LYLZ[ ‹•†ƒ—‰Š–‡”ǯ•‡–Š—•‹ƒ•ƒ†Š‹•…‘ϐ‹†‡…‡‹ Š‹• –‡ƒ –‘ ”— –Š‹‰• •‘‘–ŠŽ› ‹ Š‹• ƒ„•‡…‡ ‰ƒ˜‡ Š‹ –Š‡ ’‡ƒ…‡ ‘ˆ ‹† Š‡ ‡‡†‡† –‘ ƒ‡ –Š‡†‡…‹•‹‘–‘†‘–Š‡…ŠƒŽŽ‡‰‡Ǥ†—‹•‘™•‡˜‡ ›‡ƒ”• ‘Ž† ƒ† ƒ” Šƒ• ƒ —•Šƒ‡ƒ„Ž‡ –”—•– ‹ Š‹•–‡ƒǡDzǥ™Š‹…Š‹••‘‹’‘”–ƒ–Ǥdz Dz  ‡™ –Šƒ– –Š‡ –‡ƒ  Šƒ† „—‹Ž– ™ƒ• ‘‡ ‘ˆ –Š‡ „‡•– –‡ƒ• ‹ –Š‡ ”‡‰‹‘ ƒ†  …‘—Ž† Ž‡ƒ˜‡ –Š‡ ‰—›• –‘ ‹– ˆ‘” –Š‡ ˆ‡™ ‘–Š• ‹– –ƒ‡• –‘ …Ž‹„ ˜‡”‡•–Ǥ Š‡ ›‘— •–ƒ”– ’”‡’ƒ”‹‰ ˆ‘” •—…Š ƒ ƒŒ‘” ’‡”•‘ƒŽ …ŠƒŽŽ‡‰‡ǡ ›‘— “—‹…Ž› ”‡ƒŽ‹•‡ –Šƒ– ›‘— ‡‡† –‘ „‡ ƒ„Ž‡ –‘ ˆ‘…—• ͳͲͲΨ ‘ ™Šƒ– ›‘— ƒ”‡ †‘‹‰ Ȃ ‹– ™‘—Ž† „‡ ƒ †‹•ƒ•–‡” –‘„‡™‘””›‹‰ƒ„‘—––Š‡‘ˆϐ‹…‡™Š‹Ž•–…Ž‹„‹‰ ˜‡”‡•–ǡdzƒ”•ƒ›•Ǥ

6M

DU’S MOBILESERVICES SUBSCRIBER BASE 44 January 2013

Dz‡ƒƒƒ† …Ž‹„‡†˜‡”‡•–†—”‹‰–Š‡–Š‹”† ‘•– †‡ƒ†Ž‹‡•– •‡ƒ•‘ ‹ –Š‡ Š‹•–‘”› ‘ˆ –Š‡ ‘—–ƒ‹Ǥ Š‡ ƒ—ƒŽ …Ž‹„‹‰ •‡ƒ•‘ ‹• ˜‡”› •Š‘”–ǡ ˆ”‘ ‘Ž› ’”‹Ž –‘ ƒ›ǡ ™‹–Š ‘Ž› ƒ ƒ˜‡”ƒ‰‡ ‘ˆ ‡‹‰Š– †ƒ›• ™Š‡”‡ ›‘— …ƒ ƒ…–—ƒŽŽ› •–ƒ† ‘ –Š‡ •—‹– †—‡ –‘ –Š‡ •–”‘‰ Œ‡– •–”‡ƒ –Šƒ– Š‹–• ‘˜‡” –Š‡ ‘—–ƒ‹Ǥ —”‹‰ –Š‹• •‡ƒ•‘ –‡ ’‡‘’Ž‡ †‹‡† ‘ –Š‡ ‘—–ƒ‹ ƒ† •‹š ‘ˆ –Š‡•‡ ™‡”‡ ™‹–Š‹ ƒ Š‘””‡†‘—• ʹͶ Š‘—”’‡”‹‘†Ǥdz

7Z`JOVSVNPJHSZ[YLUN[OHUKJVUÄKLUJL ƒ” ƒ† ‡ƒƒǯ• •—‹– ƒ––‡’– ™ƒ• ‹ ‡ƒ” ‰ƒŽ‡ˆ‘”…‡™‹†•™‹–ŠŽ‹––Ž‡˜‹•‹„‹Ž‹–›ƒ†™ƒ•–Š‡ †ƒ›ƒˆ–‡”–Š‡ƒŒ‘”–”ƒ‰‡†›‘–Š‡‘—–ƒ‹Ǥ• –Š‡ϐ‹”•––‡ƒ—’ǡ–Š‡›…ƒ‡ƒ…”‘••–Š‡ƒˆ–‡”ƒ–Š ‘ˆ–Š‡‹‰Š–„‡ˆ‘”‡™Š‹…Š‡ƒ–‡‹–Š‡”—…Ž‹’’‹‰ ”‘—†„‘†‹‡•‘”…—––‹‰’‡‘’Ž‡‘ˆˆ–Š‡ϐ‹š‡†Ž‹‡• ™Š‡”‡–Š‡›Šƒ†’‡”‹•Š‡†Ǥ Dz‘”†• …ƒ‘– †‡•…”‹„‡ ™Šƒ– ™‡ •ƒ™ ‘” Šƒ† –‘ ‰‘ –Š”‘—‰ŠǤ Š‘•‡ ƒ”‡ ˜‡”› •‘„‡”‹‰ ‘‡–•ǡdz ƒ”•ƒ›•Ǥ Dz• ™‡ŽŽ ƒ• –Š‡ ’•›…Š‘Ž‘‰‹…ƒŽ ‹’ƒ…– ‘ˆ „‡‹‰ •—””‘—†‡† „› †‡ƒ–Šǡ –Š‡ ’Š›•‹…ƒŽ …‘†‹–‹‘• ™‡”‡ ƒŽ•‘ ‹…”‡†‹„Ž‡Ǥ ˜‡”› ‘‡ ‘ˆ ›‘—” Š—ƒ •‡•‡• ‹• „‡‹‰ ƒ––ƒ…‡†Ǥ Š‡ ‡˜‹”‘‡– ‹• ƒŽ‘•– —‹ƒ‰‹ƒ„Ž› †‹ˆϐ‹…—Ž– –‘ †‡ƒŽ ™‹–ŠǤ ‘™Ž‹‰ ™‹†•ǡ –Š‹ ƒ‹”ǡ –‡’‡”ƒ–—”‡• ‘ˆ Ǧͷͷ †‡‰”‡‡• ‡–‹‰”ƒ†‡ ƒ† ƒŽ‘•– œ‡”‘ ˜‹•‹„‹Ž‹–› ƒ†‡˜‡”‡•–ƒˆ‘”‹†ƒ„Ž‡‘’’‘‡–Ǥdz Dz‡•’‹–‡ –Š‡ ϐ‹‡”…‡ ™‡ƒ–Š‡” –Šƒ– ‡ƒ– ™‡ ™‡”‡ –Š‡‘Ž›–‡ƒ–‘•—‹–ˆ”‘–Š‡‘—–Š•‹†‡–Šƒ– †ƒ›™‡‡˜‡”‘…‡†‘—„–‡†‘—”‰—‹†‡•Ǥ‡‡˜‡” ‘…‡ –Š‘—‰Š– ™‡ •Š‘—Ž† –—” „ƒ… „‡…ƒ—•‡ ™‡ ™‡”‡ǯ–‰‘‹‰–‘ƒ‡‹–Ǥ ƒ˜‹‰–Š‡†‡‡’‡•––”—•– ‹ ‘—” ‰—‹†‡• ‰ƒ˜‡ —• ‹…”‡†‹„Ž‡ ’•›…Š‘Ž‘‰‹…ƒŽ •–”‡‰–Šƒ†…‘ϐ‹†‡…‡Ǥdz DzŠ‹• ‹• ƒ ”‡ƒŽŽ› ‹’‘”–ƒ– ’ƒ”– ‘ˆ –Š‡ ’”‘…‡•• Ȃ •‡Ž‡…–‹‰ ›‘—” ‰—‹†‡•Ǥ ‡ –‘‘ –‹‡ ’‹…‹‰


PERSONALITY & PRACTICE

–Š‡ –‡ƒ –Šƒ– ™‡™ƒ–‡†–‘–ƒ‡ —•—’ ˜‡”‡•–Ǥ …‡›‘—’‹…–Š‡ǡ›‘—„‡Ž‹‡˜‡‹–Š‡ƒ†›‘— Ž‡– –Š‡ †‘ –Š‡‹” Œ‘„• ™‹–Š ƒ„•‘Ž—–‡ ˆƒ‹–ŠǤ –ǯ• ƒ „‡ƒ—–‹ˆ—Ž ‘‡– ‹ Š—ƒ —†‡”•–ƒ†‹‰ ƒ†

 ™‹ŽŽ ƒŽ™ƒ›• „‡ ‰”ƒ–‡ˆ—Ž ˆ‘” –Šƒ–Ǥ ‘ „‡ ƒ„Ž‡ –‘ Ž‡– ‰‘ ‹• ƒ ƒ–—”‡ •‹ŽŽ –Šƒ– ‡ƒ„Ž‡• ‡˜‡”›„‘†› –‘†‡Ž‹˜‡”Š‹•‘”Š‡”„‡•–Ȃ–Š‹•‹••‘‡–Š‹‰–Šƒ–

 ™‹ŽŽ …ƒ””› ™‹–Š ‡ ‹ ‡˜‡”›–Š‹‰  †‘ ƒ† ‹– …‡”–ƒ‹Ž›ƒ’’Ž‹‡•–‘›”‘Ž‡ƒ• Ǥ—–—ƒŽ–”—•– ƒ† ”‡•’‡…– ˆ‘” ‡˜‡”›„‘†›ǯ• ƒ„‹Ž‹–› –‘ †‘ ™Šƒ– –Š‡›ƒ”‡–”ƒ‹‡†–‘†‘Ȃ™‹–Š‘—–‹…”‘Ǧƒƒ‰‹‰ ‘” •‡…‘† ‰—‡••‹‰Ǣ –Š‘•‡ ƒ”‡ ‡‘”‘—•Ž› ˜ƒŽ—ƒ„Ž‡–‘‘Ž•Ǥdz =HS\LJYLH[PVUMVYVYNHUPZH[PVU ƒ”„‡Ž‹‡˜‡•–Šƒ–ƒ …ƒǯ–†‘Š‹•Œ‘„’”‘’‡”Ž› ‹ˆ Š‡ ‹• –‹‡† –‘‘ †‡‡’Ž› ‹–‘ ‘’‡”ƒ–‹‘• ƒ† ƒ†‹‹•–”ƒ–‹‘ǡ”ƒ–Š‡”ǡŠ‹•Œ‘„•Š‘—Ž†”‡˜‘Ž˜‡ƒ”‘—† •–”ƒ–‡‰›ƒ†˜ƒŽ—‡…”‡ƒ–‹‘ˆ‘”–Š‡‘”‰ƒ‹•ƒ–‹‘Ǥ Dz‡––Š‡–‡ƒ†‘™Šƒ––Š‡›†‘™‡ŽŽ•‘›‘—…ƒ†‘ ™Šƒ–›‘—†‘™‡ŽŽǡdz‹•‘‡‘ˆŠ‹•ƒ–”ƒ•Ǥ ‹• •‡…‘† Ž‡••‘ ˆ”‘ ˜‡”‡•– ™ƒ• —…Š ‘”‡‹’ƒ…–ˆ—ŽǤ Dz• ™‡ ˆ‘—‰Š– ‘—” ™ƒ› —’ –Š‡ ™‘”Ž†ǯ• –ƒŽŽ‡•– ‘—–ƒ‹ ƒ† …ƒ‡ ƒ…”‘•• ƒŽŽ –Š‡ ƒˆ–‡”ƒ–Š ‘ˆ –Š‡–”ƒ‰‡†›‹–„‡…ƒ‡’”‘ˆ‘—†Ž›…Ž‡ƒ”Š‘™•Š‘”– Ž‹ˆ‡‹•Ǥ‘†ƒ› ˜ƒŽ—‡›–‹‡•‘—…Š‘”‡–Šƒ „‡ˆ‘”‡Ǥ –‹•–”—Ž›–Š‡‘•–˜ƒŽ—ƒ„Ž‡–Š‹‰™‡Šƒ˜‡Ǥ Š‡›‘—ƒ”‡‘–†‡Ž‡‰ƒ–‹‰›‘—”™‘”…‘””‡…–Ž› ›‘— ƒ”‡ •‹’Ž› ™ƒ•–‹‰ –‹‡Ǥ ‘ǯ– ‰‡– ‹˜‘Ž˜‡† ‹†‡…‹•‹‘•–Šƒ–†‘‘–”‡“—‹”‡›‘—”‹’—–Ǥ ‹˜‡ ›‘—” ƒƒ‰‡”• –Š‡ ƒ—–‘‘› –Š‡› ‡‡† –‘ †‘ –Š‡‹”Œ‘„•Ǥdz DzŠ‹• –‹‡• ‹–‘ › ‘–Š‡” ’‘‹– ƒ„‘—– –”—•–Ǥ ‘†ƒ› ƒ—…Š‘”‡ˆ‘…—•‡†–Šƒ Šƒ˜‡‡˜‡” „‡‡ „‡…ƒ—•‡  ƒ ‹–—‹–‹˜‡Ž› ƒ™ƒ”‡ ‘ˆ Š‘™  ƒ•’‡†‹‰›–‹‡ƒ†™Š‡”‡ ƒ‹˜‡•–‹‰ ‹–Ǥ –”—•–‘”‡Ȃ ”‡Žƒš‘”‡Ǥ‰ƒ‹ǡ‹–ǯ•ƒ„‘—– Ž‡––‹‰‰‘ƒ†–”—•–‹‰‹›‘—”‘™ƒ„‹Ž‹–‹‡•ƒ† –Š‘•‡ ‘ˆ –Š‡ ’‡‘’Ž‡ ƒ”‘—† ›‘—Ǥ –ǯ• ƒ…–—ƒŽŽ› ˜‡”›Ž‹„‡”ƒ–‹‰Ǥdz 0*(,>*OHY[LYLK(JJV\U[HU[ ƒ” Šƒ• „‡‡ –Š‡   ‘ˆ –Š”‡‡ ’—„Ž‹…Ž› –”ƒ†‡† …‘’ƒ‹‡•ǤŠ‡ƒ•‡†Š‘™‹–ƒŽŽ•–ƒ”–‡†Š‡•ƒ›•ǡ Dz  ”‡‡„‡” †‡…‹†‹‰ –‘ „‡…‘‡ ƒ Šƒ”–‡”‡† ……‘—–ƒ– ™Š‡  ™ƒ• ͳͺ ›‡ƒ”• ‘Ž† ƒ† › ˆƒ–Š‡”•ƒ‹†ǡǮ Šƒ˜‡‡˜‡”•‡‡ƒ’‘‘”ƒ……‘—–ƒ–ǯ Ȃ–Šƒ–ƒ†˜‹…‡•–‹ŽŽŠ‘Ž†•–”—‡–‘†ƒ›Ǩdz ˆ–‡” –Šƒ– Š‡ •‡– ‘—– –‘ „‡…‘‡ ƒ  Šƒ”–‡”‡† ……‘—–ƒ–ǡ –Š‡ ™‘”Ž†ǯ• Žƒ”‰‡•–

LESSON LEARNT: “Today I value my time so much more than before. It is truly the most valuable thing we have,” says Mark.

Šƒ”–‡”‡†……‘—–ƒ…›‹•–‹–—–‹‘‹–Š‡™‘”Ž†Ǥ „‘—–ͺͶ’‡”…‡–‘ˆƒŽŽ ͳͲͲ…‘’ƒ‹‡• Šƒ˜‡ƒŠƒ‹”ƒǡ‘” ™Š‘‹•ƒŠƒ”–‡”‡†

……‘—–ƒ–Ǥ ˆ–‡” ‹‹–‹ƒŽ –”ƒ‹‹‰ ƒ† “—ƒŽ‹ˆ‹…ƒ–‹‘ ™‹–Š ƒ ˆ‹” –Šƒ– •’‡…‹ƒŽ‹•‡† ‹ –Š‡ —•‹… ‹†—•–”› ƒ” Œ‘‹‡† ™ ‹ –Š‡‹” —•‹‡•• ‡•–”—…–—”‹‰–‡ƒǤ Dz™ ™ƒ• ƒƒœ‹‰ ˆ‘” ‡Ǥ ‘‹‰ ‹ –‘ Š‡Ž’ ”‡•–”—…–—”‡ ƒ „—•‹‡•• –Šƒ– ™ƒ• —†‡” †—”‡•• ™ƒ•–Š‡„‡•–‡š’‘•—”‡ …‘—Ž†Šƒ˜‡Šƒ†Ǥ –™‘—Ž† Šƒ˜‡–ƒ‡‡–™‡–››‡ƒ”•–‘‰‡––Š‡•ƒ‡Ž‡˜‡Ž ‘ˆ‡š’‡”‹‡…‡™‘”‹‰ƒ•ƒ Ǥ –Š‹›…ƒ”‡‡” Šƒ•„‡‡†”‹˜‡‘”‡„››’‡”•‘ƒŽ˜‹•‹‘–Šƒ ƒ …‘”’‘”ƒ–‡ †‡˜‡Ž‘’‡– ’ŽƒǤ ‹”•–  •‡– ‘—– –‘ „‡…‘‡  “—ƒŽ‹ϐ‹‡† ƒ† –Š‡  ™ƒ–‡† –‘ „‡…‘‡ƒ •‘ „‡‰ƒ™‘”‹‰–‘™ƒ”†•–Šƒ–ǡdz –Š‡‡š‡…—–‹˜‡•ƒ›•Ǥ ƒ‹‰–Š‡Œ—’ˆ”‘‘–”‘ŽŽ‡”–‘ ‹•ƒŽ™ƒ›• ƒ–‘—‰Š‘‡ǤŠ‡•‹ŽŽ•‡–•ƒ”‡˜ƒ•–Ž›†‹ˆˆ‡”‡–ƒ† –Š‡”‡‹•‘ˆ–‡˜‡”›Ž‹––Ž‡‹–Š‡™ƒ›‘ˆ†‡˜‡Ž‘’‡–ƒŽ ’”‘‰”ƒ‡• ‘” •–”—…–—”‡• ™‹–Š‹ ‘”‰ƒ‹•ƒ–‹‘• –Šƒ–Š‡Ž’‘–”‘ŽŽ‡”•ƒ‡•—…Šƒ‘˜‡Ǥ

Mark believes that a CFO can’t do his job properly if he is tied too deeply into operations and administration, rather, his job [CFO’s] should revolve around strategy and value creation for the organisation.

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PERSONALITY & PRACTICE

Š‡ƒ•‡†Š‘™Š‡ƒ†‡–Š‡Œ—’‹–‘–Š‡–‘’ Œ‘„ ‹ ϐ‹ƒ…‡ǡ ƒ” •ƒ›•Ǣ Dz‘— Šƒ˜‡ –‘ ‘™ ™Š‡”‡ ›‘— ™ƒ– –‘ ‰‘ ƒ† ‡‡’ ‘‡ ‡›‡ ϐ‹”Ž› ϐ‹š‡†‘–Šƒ–•’‘–‘–Š‡Š‘”‹œ‘Ǥ•‹•‘ƒ› ƒ•’‡…–•‘ˆŽ‹ˆ‡ǡƒŽ‹––Ž‡Ž—…ƒŽ•‘Š‡Ž’•ƒ†‘ˆ…‘—”•‡ǡ —Ž–‹ƒ–‡Ž›ǡ •‘‡„‘†› Šƒ• –‘ „‡Ž‹‡˜‡ ‹ ›‘—Ǥ   ™ƒ• Ž—…› ƒ† Šƒ† ƒ ‰”‡ƒ–  ™Š‘ „‡Ž‹‡˜‡† ‹ ‡ ƒ† ‰ƒ˜‡ ‡ –Š‡ ‘’’‘”–—‹–› –‘ Ž‡ƒ˜‡ ™ ƒ† „‡…‘‡ ƒ ‹ƒ…‡ ‹”‡…–‘” ȋ‡“—‹˜ƒŽ‡– ‘ˆ ƒ  Ȍƒ–ƒ‡”‹…ƒ…‘”’‘”ƒ–‹‘Ǥ ‡™™Šƒ–  ™ƒ–‡†ƒ†™Š‡ •ƒ™–Š‡‘’’‘”–—‹–› –‘‘‹–Ǥdz

DzŠ‡   ‘ˆ ƒ ’—„Ž‹… …‘’ƒ› —•– Šƒ˜‡ ƒ •–”‘‰ ˜‘‹…‡ –Šƒ– …ƒ •’‡ƒ –‘ –Š‡ ‹˜‡•–‘” …‘—‹–›Ǥ ‘–Š –Š‡  ƒ† –Š‡   •Š‘—Ž† ƒ”–‹…—Žƒ–‡ –Š‡ •–”ƒ–‡‰› ‘ˆ –Š‡ „—•‹‡••Ǥ Š‡ ‹•Ž‹‹–‡†‹Š‹•ƒ„‹Ž‹–›–‘„‡‹–™‘’Žƒ…‡• ƒ–‘…‡•‘Šƒ˜‹‰–Š‡•—’’‘”–‘ˆƒ‘–Š‡”’‡”•‘ ™Š‘ —†‡”•–ƒ†• –Š‡ •–”ƒ–‡‰›ǡ –Š‡ ˜‹•‹‘ ƒ† –Š‡ †‹”‡…–‹‘ ‘ˆ –Š‡ …‘’ƒ› ƒ† …ƒ ‡ˆˆ‡…–‹˜‡Ž› …‘—‹…ƒ–‡ –Šƒ– –‘ –Š‡ ƒƒŽ›•–•ǡ ‡†‹ƒǡ „‘ƒ”†ǡ •–ƒ‡Š‘Ž†‡”•ǡ ƒ† ‘–Š‡” ‡› ’‡‘’Ž‡‹•’ƒ”ƒ‘—––‘–Š‡…‘’ƒ›ǯ••—……‡••Ǥdz

-YVT*VU[YVSSLY[V*-6 ƒ”ǯ•‘˜‡‹–‘ƒ ”‘Ž‡‹•‘––Š‡‘”ƒ•‘•–  • ‰”‘™ —’ ˆ”‘ –Š‡ ‘–”‘ŽŽ‡” ’‘•‹–‹‘ ‹–‘ –Š‡ Œ‘„™‹–Š‹–Š‡•ƒ‡‘”‰ƒ‹•ƒ–‹‘Ǥ‘‡ ƒ”‡ƒ„Ž‡–‘ƒ‡–Š‡Ž‡ƒ’ƒ•Š‡†‹†ˆ”‘‘‡‘ˆ–Š‡ Ǯ‹‰ ‘—”ǯ‹–‘–Š‡–‘’Œ‘„„—–•‘ƒ›’‡‘’Ž‡‰‡– •–—…‹–Š‡”ƒ•‘ˆ‹††Ž‡ƒƒ‰‡‡–ǡ—ƒ„Ž‡ –‘„”‡ƒ–Š”‘—‰Š–Š‡‰Žƒ••…‡‹Ž‹‰Ǥ

Dz—…Š ‹• –Š‡ ‹’‘”–ƒ…‡ ‘ˆ …‘—‹…ƒ–‹‘• –Šƒ– ƒ› ‘”‰ƒ‹•ƒ–‹‘• ‘™ Šƒ˜‡ ƒ ˜‡•–‘” ‡Žƒ–‹‘•ȋ Ȍˆϐ‹…‡”™Š‘•‡ƒ‹‹–‡”ƒŽ…Ž‹‡– ‹•–Š‡ ǤŠ‡ •Š‘—Ž†™‘”…Ž‘•‡Ž›™‹–Š  ƒ† …‘”’‘”ƒ–‡ …‘—‹…ƒ–‹‘• –‘ ‡•—”‡ –Šƒ– ƒŽŽ ‡š–‡”ƒŽ •–ƒ‡Š‘Ž†‡”• ”‡…‡‹˜‡ ƒ …‘Š‡”‡–ǡ …‘•‹•–‡–‡••ƒ‰‡Ǥdz

”‹–‹…ƒŽ–‘—†‡”•–ƒ†‹‰Š‘™–‘ƒ‡–Š‡‘˜‡ ‹–‘–Š‡ ’‘•‹–‹‘‹•–Š‡ƒ„‹Ž‹–›–‘—†‡”•–ƒ† ‡šƒ…–Ž›™Šƒ––Š‡†‹ˆˆ‡”‡…‡„‡–™‡‡ƒ ƒ†ƒ ‘–”‘ŽŽ‡”‹•ǤŠ‡–Š‡”‹–‹•ƒǡ ǡǡ ‘” ƒ›•‡‹‘”Ž‡ƒ†‡”•Š‹’’‘•‹–‹‘Ǣ™Šƒ–”‡ƒŽŽ›ƒ‡• –Š‡ †‹ˆˆ‡”‡…‡ ‹• –Š‡ ƒ„‹Ž‹–› –‘ …‘—‹…ƒ–‡ ‡ˆˆ‡…–‹˜‡Ž›Ǥ ‡‹‰ ƒ„Ž‡ –‘ ’”‡•‡– ‹ˆ‘”ƒ–‹‘ ‹ ƒ …‘’‡ŽŽ‹‰ ™ƒ› –Šƒ– …”‡ƒ–‡• …‘•‡•—• ™‹–Š •‡‹‘” •–ƒ‡Š‘Ž†‡”•ǡ ’‡‡”• ƒ† •—„‘”†‹ƒ–‡• ‹• …”—…‹ƒŽǤŠ‡„‡•–Š‹‡ˆ ‹ƒ…‹ƒŽˆϐ‹…‡”•ƒ”‡‰”‡ƒ– Ž‡ƒ†‡”•™Š‘ƒ”‡ƒ„Ž‡–‘‘„‹Ž‹•‡’‡‘’Ž‡–‘ˆ‘ŽŽ‘™ ƒ‡™†‹”‡…–‹‘Ǥ Dz  –Š‹• ”‡‰‹‘ ‰”‡ƒ– •–”‹†‡• Šƒ˜‡ „‡‡ ƒ†‡ ‹ –Š‡ϐ‹ƒ…‡’”‘ˆ‡••‹‘Ǥƒ†Ž›ǡ‹ƒ›…‘’ƒ‹‡•ǡ ›‘— ™‹ŽŽ •–‹ŽŽ •‡‡ –Š‡ ’‘•‹–‹‘ ‘ˆ   ϐ‹ŽŽ‡† „› ƒ Ǯ‘–”‘ŽŽ‡”ǯ”ƒ–Š‡”–Šƒƒ–”—‡ ǡ™Š‹…Š‡ƒ• –Šƒ–™Š‹Ž•–Š‹•…‘–”‘Ž•ƒ†ϐ‹ƒ…‹ƒŽ•–ƒ–‡‡–• ƒ›„‡˜‡”›‰‘‘†ǡŠ‡‘”•Š‡ƒ›‘–„‡”‡ƒ†›–‘ „‡ƒƒ†˜‹•‘”–‘–Š‡Šƒ‹”ƒƒ†Ǣ‘”ƒ••‹•– ™‹–Š Ž‘‘‹‰ ƒ– ‘’’‘”–—‹–‹‡• •—…Š ƒ• ‘’–‹ƒŽ …ƒ’‹–ƒŽ •–”—…–—”‡•ǡ ‡”‰‡”• Ƭ …“—‹•‹–‹‘•ǡ ‘˜‹‰ –Š‡ „—•‹‡•• ‹–‘ †‹ˆˆ‡”‡– •‡‰‡–• ‘” †‹˜‡•–‹‰ „—•‹‡••‡• ™Š‹…Š ƒ”‡ ƒŽŽ •‘’Š‹•–‹…ƒ–‡† •–”ƒ–‡‰‹…†‹•…—••‹‘•–Šƒ–…ƒ‘Ž›„‡‡–‡”–ƒ‹‡† „›ƒ•‡ƒ•‘‡† ǡdz•ƒ›•ƒ”Ǥ :OHYPUNZ[YH[LN`HUK]PZPVU ‡ƒ…–‹‰ –‘ ƒ ƒ”–‹…Ž‡ –‹–Ž‡†Ǣ DzAssessing the   CFOdz Ǧ –Šƒ– ƒ’’‡ƒ”‡† ‹ –Š‡ ‡…‡„‡” ‹••—‡ of  Accountant  Middle  Eastƒ‰ƒœ‹‡Ǧ‘ ̵• •‹ŽŽ •‡– ”‡“—‹”‡‡–•ǡ ƒ” ‹• ‘ˆ –Š‡ ‘’‹‹‘ –Šƒ–ƒ ‘ˆƒ’—„Ž‹…Ž›–”ƒ†‡†…‘’ƒ›‡‡†• ƒƒ††‹–‹‘ƒŽ•‹ŽŽǦ„ƒ•‡–‘…‘’‡™‹–Š–Š‡™‡‹‰Š– ‘ˆ–Š‡”‘Ž‡Ǥ 46 January 2013

DzŠ‡   •Š‘—Ž† „‡ ‡†‹ƒ –”ƒ‹‡† ƒ† •‹ŽŽ‡† ™‹–Š –Š‡ ƒ„‹Ž‹–› –‘ …Šƒ’‹‘ –Š‡ …‘’ƒ›ǯ• ‡› ‡••ƒ‰‡•Ǥ ‘•‹•–‡…› ‘ˆ ‡••ƒ‰‹‰ ƒ† ƒ ƒ……‡••‹„Ž‡   ‡ƒ –Šƒ– ‹– ‹• ‡ƒ•‹‡” –‘ ƒƒ‰‡ ƒ”‡– ‡š’‡…–ƒ–‹‘• ƒ† ‡‡’ •Šƒ”‡Š‘Ž†‡”• ’”‘’‡”Ž›‹ˆ‘”‡†Ǥdz 7YVWLYJVTT\UPJH[PVUPZRL` ƒ”ˆ‡‡Ž•–Šƒ––Š‹•‹••—…Šƒ‹’‘”–ƒ–’ƒ”–‘ˆ –Š‡Œ‘„–Šƒ–Š‡™ƒ•ƒ ‘—†‹‰‘ƒ”†‡„‡”‘ˆ –Š‡ ‹††Ž‡ ƒ•– ˜‡•–‘” ‡Žƒ–‹‘• ‘…‹‡–›Ǥ Š‡

EXPERT ADVICE: “The CFO of a public company must have a strong voice that can speak to the investor community. Both the CEO and the CFO should articulate the strategy of the business.”


PERSONALITY & PRACTICE

’—”’‘•‡ ‘ˆ –Š‡ •‘…‹‡–› ‹…Ž—†‡• ’”‘˜‹†‹‰  ǯ• ƒ† ǯ• ‹ –Š‡ ”‡‰‹‘ ™‹–Š ‰—‹†ƒ…‡ ‘ Š‘™ –‘ ƒƒ‰‡ ‹••—‡• •—…Š ƒ• ™Šƒ– ƒ ‹˜‡•–‘” ”‘ƒ† •Š‘™•Š‘—Ž†Ž‘‘Ž‹‡ǡ™Šƒ–‡‡†•–‘„‡‹…Ž—†‡† ‹ƒƒ—ƒŽ”‡’‘”–ǡ™Šƒ–•Š‘—Ž†„‡‹“—ƒ”–‡”Ž› ’”‡•‡–ƒ–‹‘•ǡ ™Š‡ …‘…‡”‡† ‘ˆϐ‹…‹ƒŽ• ‡‡† –‘ „”‹‡ˆƒƒŽ›•–•ƒ„‘—–ǥƒ†•‘‘Ǥ Dz‘—‹…ƒ–‹‘”‡ƒŽŽ›‹•ƒ‡›•‹ŽŽ•‡–Ǥ ‘™ƒ† ™Šƒ– †‘ ›‘— ’”‡•‡–ǫ ‘ ›‘— ’—– ‹ˆ‘”ƒ–‹‘ †‘™ ‹ ƒ …Ž‡ƒ” ƒ‡”ǫ Šƒ– ‹• –Š‡ ϐ‹”•– •–‡’ǡ ›‘—”’”‡•‡–ƒ–‹‘‹•ƒ•–‘”›ƒ†–Š‡‹ˆ‘”ƒ–‹‘ •Š‘—Ž†„‡‹ƒ—•ƒ„Ž‡ƒ†ƒ…–‹‘ƒ„Ž‡ˆ‘”ƒ––Šƒ– ›‘—”ǡ›‘—”‘ƒ”†ǡ›‘—”–‡ƒǡ›‘—”•–ƒˆˆǡ –Š‡ ƒƒŽ›•–•ǡ –Š‡ ‡†‹ƒǡ –Š‡ ‰‡‡”ƒŽ ’—„Ž‹… ƒ† ‘–Š‡” ’‡”–‹‡– ’‡‘’Ž‡ …ƒ ƒ……‡•• –‘ „‡…‘‡ ƒ™ƒ”‡ ‘ˆ –Š‡ …‘”’‘”ƒ–‡ ‡••ƒ‰‡Ǥ ‘— Šƒ˜‡ –‘ …‘—‹…ƒ–‡ ™Šƒ– –Š‡ —„‡”• ‡ƒ ƒ† ›‘— ƒ• –Š‡   Šƒ˜‡ –‘ —†‡”•–ƒ† ™Š‡”‡ –Š‡ Š‘– „—––‘•ƒ”‡™Š‡›‘—ƒ”‡–ƒŽ‹‰–‘’‡‘’Ž‡ǡdz–Š‡ ‡š‡…—–‹˜‡•ƒ›•Ǥ ˆ–‡”™‘”‹‰‘ƒ‹–‡”ƒ–‹‘ƒŽŽ‡˜‡Žˆ‘”•‘‡‘ˆ –Š‡™‘”Ž†ǯ•Žƒ”‰‡•–…‘’ƒ‹‡•ǡƒ”ˆ‡‡Ž•…‘’‡ŽŽ‡† –‘‰‹˜‡•‘‡–Š‹‰„ƒ…–‘–Š‡…‘—‹–›Ǥ ‹• ƒ†˜‹…‡ –‘ –Š‡ —’ ƒ† …‘‹‰ ƒ……‘—–ƒ– ‹•ǡ Dzϐ‹”•–Ž›ǡ ‡Œ‘› –Š‡ •‡‰‡– ‘” ‹†—•–”› ›‘— ƒ”‡ ™‘”‹‰‹Ǥ ‘”‡‹–™ƒ•‡Ž‡…–”‘‹…•ǡ–‡…Š‘Ž‘‰› ƒ† –‡Ž‡…‘—‹…ƒ–‹‘•ǡ ™Š‹…Š ƒ”‡ ƒŽŽ …Ž‘•‡Ž› –‹‡† –‘‰‡–Š‡”Ǥ  Œ—•– ϐ‹† –Š‡ –‡…Š‘Ž‘‰› •‡…–‘”

“In this region great strides have been made in the finance profession. Sadly, in many companies, you will still see the position of CFO filled by a ‘Controller’ rather than a true CFO.” ˆƒ•…‹ƒ–‹‰ ƒ†  ƒ ‡š…‹–‡† „› ‹–Ǥ ‘— Šƒ˜‡ –‘ ‰‘‹‡˜‡”›†ƒ›ƒ†„‡Ž‹‡˜‡‹›‘—”…‘’ƒ›ƒ† „‡Ž‹‡˜‡‹™Šƒ––Š‡…‘’ƒ›‹•†‘‹‰Ǥdz Dz‡…‘†Ž››‘—Šƒ˜‡–‘Šƒ˜‡‰‘‘†„ƒ•‹…•Ǧ›‘—‡‡† –‘„‡•‡‡–‘„‡ƒ††‹‰˜ƒŽ—‡‘‹–‡”’”‡–ƒ–‹‘‘ˆ –Š‡ —„‡”• ƒ† ƒŽ•‘ „‡ …ƒ’ƒ„Ž‡ ‘ˆ ‹ϐŽ—‡…‹‰ Ǧ—‹–‡ †‹•…—••‹‘•Ǥ ‘— ƒŽ•‘ Šƒ˜‡ –‘ Šƒ˜‡ ƒ Š‹‰Š •‡•‡ ‘ˆ •‡ŽˆǦƒ™ƒ”‡‡•• ƒ† ‘™ ™Š‡”‡ ›‘—”‰ƒ’•ƒ”‡ƒ†™‘”Šƒ”†–‘…Ž‘•‡–Š‡Ǥ› ‹†‹˜‹†—ƒŽ ™‹•Š‹‰ –‘ „‡…‘‡   ‡‡†• –‘ „‡ ƒ„Ž‡ –‘ ‹†‡–‹ˆ› …”‹–‹…ƒŽ …ƒ’ƒ„‹Ž‹–‹‡• –Šƒ– ƒ”‡ ‡‡†‡†–‘‘˜‡–‘–Š‡‡š–Ž‡˜‡Žƒ†–Š‡™‘”‘ †‡˜‡Ž‘’‹‰ –Š‡Ǥ ‘” ‡  ‡™ …‘—‹…ƒ–‹‘ ƒ† ’”‡•‡–‹‰ ‹ ˆ”‘– ‘ˆ Žƒ”‰‡ ‰”‘—’• ™ƒ• …”‹–‹…ƒŽˆ‘”ƒ›„‹‰ Œ‘„•‘™Š‡ ™ƒ•ƒ–™  ˜‘Ž—–‡‡”‡†–‘„‡–Š‡Š‘—•‡Ž‡…–—”‡”™Š‹…Šˆ‘”…‡† ‡–‘†‡˜‡Ž‘’‹–Šƒ–ƒ”‡ƒǤdz >VYRPUN^P[OPU]LZ[VYZ •™‡ŽŽƒ•‡š…‡ŽŽ‹‰‹•‘‡‘ˆ–Š‡–‘—‰Š‡”’ƒ”–• ‘ˆ –Š‡ Œ‘„ •—…Š ƒ• ™‘”‹‰ ™‹–Š ‹˜‡•–‘”• ƒ† „‡…‘‹‰ ƒ ƒ–—”ƒŽǡ „‡Ž‹‡˜ƒ„Ž‡ ’”‡•‡–‡”ǡ ƒ” ƒŽ•‘’Žƒ…‡•‰”‡ƒ–‡’Šƒ•‹•‘•‘ˆ–‡”•‹ŽŽ••—…Šƒ• ’‡‘’Ž‡Ǧƒƒ‰‡‡–Ǥ Dz‘—‡‡†–‘„‡…‘‹––‡†–‘†‡˜‡Ž‘’‹‰’‡‘’Ž‡Ǥ ‘— …ƒǯ– „‡ ’”‘‘–‡† ‹ˆ ›‘— …ƒǯ– „‡ ”‡’Žƒ…‡†Ǥ Ž™ƒ›•„‡†‡˜‡Ž‘’‹‰•‘‡‘‡„‡Ž‘™›‘—–‘–ƒ‡ ›‘—”Œ‘„ǤŠ‡ ™‡––‘…Ž‹„˜‡”‡•– ™ƒ•‰‘‡ ˆ‘” –™‘ ‘–Š• ƒ† –Š‡ „‹‰‰‡•– …‘’Ž‹‡– ›  …‘—Ž† ‰‹˜‡ › –‡ƒ ™ƒ• –Šƒ– Š‡ …‘—Ž† ‘– ‡˜‡–‡ŽŽ ™ƒ•‰‘‡ǨŠ‡›†‹†•—…Šƒ‰”‡ƒ–Œ‘„Ǥdz Dz‘— ‡‡† –‘ Šƒ˜‡ ƒ •–”‘‰ –‡ƒ ƒ† †‡˜‡Ž‘’ –Š‡•‘–Šƒ––Š‡›…ƒ‡˜‡–—ƒŽŽ›†‘›‘—”Œ‘„‹ ›‘—”ƒ„•‡…‡Ǥ ‹ƒŽŽ››‘—Šƒ˜‡–‘Šƒ˜‡ƒ˜‹•‹‘ǡ ›‘— Šƒ˜‡ –‘ „‡Ž‹‡˜‡ ‹ –Š‡ ˜‹•‹‘ ƒ† –”—•– –Š‡ ˜‹•‹‘Ǥ ‘— ‡‡† –‘ ‘™ ™Š‡”‡ ›‘— ƒ”‡ ‰‘‹‰ ƒ† Š‘™ ›‘— ƒ”‡ ‰‘‹‰ –‘ ‰‡– –Š‡”‡Ǥ ‘— ‡‡† –‘ Šƒ˜‡ ƒ ”‘ƒ† ƒ’ǡ ƒ „Ž—‡ ’”‹– ‰—‹†‹‰ ›‘—” ’”‘‰”‡••‹‘Ǥ ƒ˜‡ƒ’Žƒƒ†‡‡’‹–‹ˆ”‘–‘ˆ ›‘—Ǥˆ…‘—”•‡›‘—™‹ŽŽ‰‘–Š”‘—‰Š›‘—”†‘—„–• ƒ†›‘—ǯŽŽ–ƒ‡‘…•„—–ƒ•Ž‘‰ƒ•›‘—„‡Ž‹‡˜‡ ‹›‘—”•‡Žˆƒ†–”—•–›‘—”˜‹•‹‘›‘—™‹ŽŽƒ‡ ‹–ǡdz–Š‡ •ƒ›•Ǥ 47


ACCOUNTANCY 101

FALLOUT FROM THE

ARAB SPRING

Uprisings and civil strife in the Arab world have caused massive upheaval in many countries in the Middle East and North Africa. Paul Golden talks to some of the region’s influential accountancy professionals to understand the current state of the industry and the likely future consequences for accountancy in the region.

T

HE EVENTUAL economic impact of the infamous ‘Arab Spring’ remains impossible to forecast with any certainty, but there is widespread acceptance that accountants will play a vital role in creating the conditions for future growth. Thus far,  the  protests  that  started  in  Tunisia  in  late   2010   have   had   a   negative   impact   on   the   economies   of  the  countries  affected.   Research   by   political   risk   consultancy   Geopolicity  suggests  that  those  countries  where   political  protests  have  been  most  v iolent  -­‐  Libya,   Syria,   Egypt,   Tunisia,   Bahrain   and   Yemen   -­‐   saw   their  combined  GDP  fall  by  more  t han  $20  billion   in  2011  a lone.   +LH\]PSSL7HY[ULYZOPW The   consultancy   also   states   that   the   support   promised   by   the   G8   at   the   May   2011   Deauville   summit,   known   as   the   Deauville   Partnership,   has   largely  failed  to  materialise.   This   view   is   corroborated   by   data   published   in   June   by   Thomson   Reuters   showing   t hat   of   t he   $60  

48 January 2012

billion in  aid  pledged  to  Arab  countries  last  year,   only  a  quarter  had  been  disbursed.  Jaafar  Hassan,   Jordan’s   minister   of   planning   and   international   cooperation   went   even   further   in   a   recent   ‹–‡”˜‹‡™ǡ •–ƒ–‹‰ –Šƒ– ‘ ϐ‹ƒ…‹ƒŽ ‘” –‡…Š‹…ƒŽ assistance   had   yet   been   extended   within   the   context  of  t he  Deauville  Partnership. The   International   Monetary   Fund   (IMF)   has   calculated   that   the   weaker   Arab   economies   will  need  a bout  $ 300  billi  on  i n  e xternal  f inance   over   the   next   two   years,   with   governments’   borrowing   needs   making   it   harder   and   more   expensive   for   private   sector   companies   to   ”ƒ‹•‡ϐ‹ƒ…‡Ǥ 0UJYLHZLPULJVUVTPJNYV^[O However,   there   are   some   positive   signs.   The   World   Bank   has   estimated   the   infrastructure   sector  across  the  Middle  East  and  North  Africa   (MENA)  has  the  potential  to  create  around  two   million   direct   jobs   and   2.5   million   additional   infrastructure-­‐related   jobs   over   the   next   decade,   while   the   IMF   forecasts   an   increase   in   economic   growth   across   the   region   from   3.5%   last  year  t o  4.2%  i n  2012.


ACCOUNTANCY 101

implemented and   what   impact   this   will   have   on  businesses.  International  investors  are  still   largely  w aiting  on  t he  s idelines.” ;HSRPUNWVSP[PJZ Political   change   is   still   ongoing   in   many   of   the   countries  affected  by  the  Arab  Spring,  so  evaluating   ƒ›‡…‘‘‹…„‡‡ϐ‹–™Š‹…ŠŠƒ•ƒ”‹•‡ƒ•ƒ”‡•—Ž–‘ˆ such  change  is  impossible  in  the  short  term,  according   to  the  Chartered  Institute  of  Management  Accountants   †‹”‡…–‘”‘ˆ •Žƒ‹…ϐ‹ƒ…‡ǡ ‘Š‹ŽŽ•†‘Ǥ With   any   severe   political   change   such   as   has   ‘……—””‡† ‹ –Š‡ ”ƒ„ ’”‹‰ǡ ‡…‘‘‹… †‹ˆϐ‹…—Ž–‹‡• are  expected  initially  due  to  political  unrest,  which   leads   to   reduced   foreign   investments,   liquidity   †‹ˆϐ‹…—Ž–‹‡• ƒ† ‹…”‡ƒ•‡† ’”‡••—”‡ ‘ˆ ’—„Ž‹… economic   demands,   observes   Karim   Abd-­‐Elhay,   president   of   the   Dubai   chapter   of   the   Institute   of   Management  Accountants  (IMA). He   acknowledges   these   countries   are   going   through  a  period  of  transition,  but  adds  that  over   the  long  term  political  change  is  expected  to  have   a  positive  economic  impact  due  to  the  corrective   actions   taken   by   governments   to   reduce   corruption,   encourage   investment   and   optimise   the  utilisation  of  resources.

The United Arab Emirates has benefitted [from the Arab Spring] in that it has been seen as a haven among the tumult that has engulfed other Arab countries -­ ICAEW Middle East Regional Director, Peter Beynon Unsurprisingly, few   observers   are   prepared   to   draw   a   direct   line   between   political   change   and   economic  improvement.   Institute  of  Chartered  Accountants  in  England  and   Wales  (ICAEW)  Middle  East  regional  director  Peter   Beynon  says  in  some  parts  of  Libya  entrepreneurs   are   emerging   in   various   sectors   (such   as   vehicle   importing)   and   that   in   general   entrepreneurs   ƒ…”‘••–Š‡”‡‰‹‘ˆ‡‡Ž–Š‡›™‹ŽŽ„‡‡ϐ‹–Ǥ DzŠ‡ ‹–‡† ”ƒ„ ‹”ƒ–‡• Šƒ• „‡‡ϐ‹––‡† in   that   it   has   been   seen   as   a   haven   among   the   tumult  that  has  engulfed  other  Arab  countries.   But   if   you   look   at   Egypt,   for   example,   the   jury   is   still   out   on   whether   Sharia   law   will   be  

"The faster   a   country   can   stabilise   politically,   –Š‡ ‘”‡ „‡‡ϐ‹–• ‹– …ƒ ‰‡–ǡ̶ •ƒ›• „†ǦŽŠƒ›Ǥ ̶  can  refer   here   to   Tunisia   and   Egypt,   both   of   which   have   promising   growth   opportunities.   Neither   can   ™‡‹‰‘”‡–Š‡•‡…‘—–”‹‡•̵ϐ‹ƒ…‹ƒŽ”‡•‘—”…‡•ƒ† economic   status   -­‐   for   example,   Libya   has   natural   resources   which   will   boost   government   spending   in   infrastructure   projects   and   generate   good   economic  returns."   3HUKYPJOPUVWWVY[\UP[` Beynon   explains   that   while   ICAEW   members   in   the   Arab   world   are   not   isolated   in   their   experiences   in   relation   to   the   wider   business   environment,   the   precise   effects   have   varied   from  country  to  country.   49


ACCOUNTANCY 101

Political change is still ongoing in many of the countries affected by the Arab Spring, so evaluating any economic benefit which has arisen as a result of such change is impossible in the short term -­ Chartered Institute of Management Accountants, Director of Islamic Finance, John Willsdon "Some people  relocated  and  then  returned  to  Egypt,   whereas  Libya  is  seen  as  a  blank  piece  of  paper  and  a   Žƒ†”‹…Š‹‘’’‘”–—‹–›Ǥ ™‘—Ž†‡š’‡…–ƒ‡–‹ϐŽ‘™ of  members  across  the  region  as  markets  slow  down   in  Europe  and  elsewhere."   He  believes  there  is  an  opportunity  to  increase  the   ’”‘ϐ‹Ž‡‘ˆƒ……‘—–ƒ–•ƒ…”‘••–Š‡”‡‰‹‘‘˜‡”–Š‡‡š– ˆ‡™ ›‡ƒ”•Ǥ ̶Š‡ ’”‘ϐ‹Ž‡ ‘ˆ ƒ……‘—–ƒ–• ‹• …Šƒ‰‹‰ and   as   generational   change   takes   place   in   family   businesses   the   next   generation   sees   accountants   as   more   co-­‐pilots   than   just   the   person   producing   numbers  in  the  background."   This  development  goes  hand-­‐in-­‐hand  with  improvements   in   corporate   governance,   continues   Benyon.   "The   impetus   to   crack   down   on   corruption   is   being   driven   internationally   and   we   are   working   with   regulatory   bodies  to  promote  good  business  practice,"  he  says.   4LL[M\[\YLKLTHUK Government  bodies  have  grown  considerably  across   ƒ†ƒ„•‘”„‡†ƒŽ‘–‘ˆŽ‘…ƒŽ“—ƒŽ‹ϐ‹‡†’‡‘’Ž‡ǡ but  scope  for  further  public  sector  growth  is  limited.   Beynon  says:  "It  is  hoped  that  the  local  population   will  be  able  to  meet  future  demand  from  the  private   •‡…–‘”ǡ „—– ‹ –Š‡ •Š‘”– –‡” †‡ƒ† ˆ‘” ϐ‹ƒ…‡ ’”‘ˆ‡••‹‘ƒŽ•™‹ŽŽ„‡ϐ‹ŽŽ‡†„›‡š’ƒ–•ˆ”‘ †‹ƒƒ† Europe.  Many  companies  in  the  Gulf  Co-­‐operation   Council  (GCC)  countries  -­‐   Bahrain,  Kuwait,  Oman,   Qatar,  Saudi  Arabia  and  the  UAE  -­‐  have  programmes   to   develop   local   talent   and   we   are   working   with   larger  employers  and  educational  establishments."   ‡•—‰‰‡•–•–Šƒ–‹–‡”‡•–‹ •Žƒ‹…ϐ‹ƒ…‡™‘—Ž†Šƒ˜‡ increased  even  without  the  rise  of  political  movements   such  as  the  Muslim  Brotherhood,  but  says  developments   in  countries  such  as  Egypt  will  add  impetus  to  the  sector.   "ICAEW   and   other   professional   bodies   will   need   to   lead   standards   and   levels   of   disclosure   around  

•Žƒ‹… ϐ‹ƒ…‡ –‘ ƒ‡ •—”‡ –Š‡› ƒ”‡ …‘•‹•–‡– ™‹–Š…‘˜‡–‹‘ƒŽϐ‹ƒ…‡Ǥ̶ 50 January 2012

0U[LYLZ[MYVT,N`W[ CIMA experienced   the   greatest-­‐ever   increase   in   student   numbers   joining   the   Diploma   in   Islamic   Finance  from  countries  such  as  Bahrain  during  2011,   many   of   whom   enrolled   as   part   of   a   government-­‐ sponsored  programme.   Willsdon  admits  this  may  not  be  directly  related  to   the  Arab  Spring,  but  says  its  timing  would  suggest   that   governments   are   keen   to   show   their   citizens   that  they  are  prepared  to  support  them  in  obtaining   ’”‘ˆ‡••‹‘ƒŽ“—ƒŽ‹ϐ‹…ƒ–‹‘•Ǥ "Interestingly,   we   have   also   seen   an   upsurge   in   interest   from   Egypt,"   he   says,   "which   could   be   directly   related   to   the   election   of   the   pro-­‐Arab   Muslim  Brotherhood  presidential  c andidate.  It  is   often   said   that   surges   in   the   number   of   mature   ’‡‘’Ž‡ –ƒ‹‰ “—ƒŽ‹ϐ‹…ƒ–‹‘• ‘……—” ‹ –‹‡• ‘ˆ adversity   such   as   the   present   global   economic   downturn.  We  could  expect  more  s tudents  in  t he   MENA  region  to  seek  internationally  recognised   “—ƒŽ‹ϐ‹…ƒ–‹‘• ‹ˆ –Š‡› ƒ”‡ –Š‹‹‰ ƒ„‘—– ‡š‹–‹‰ the  region."   He   agrees   with   Beynon's   view   that   accountants   are   Ž‹‡Ž› –‘ Šƒ˜‡ ƒ Š‹‰Š‡” ’”‘ϐ‹Ž‡ ‹ –Š‡ „—•‹‡•• ™‘”Ž† post-­‐Arab  Spring.   "We  tend  to  t hink  in  terms  of  A rabian  Gulf  s tates   as   looking   like   Dubai,   but   the   reality   is   that   much  of  the  Gulf  is  undeveloped  and  a  lot  of  the   manpower  currently  used  to  drive  development   is   expatriate.   Countries   in   the   region   are   in   agreement   that   the   indigenous   population   needs   to   be   up-­‐skilled   and   while   many   citizens   will  look  for  trades,  a  section  will  seek  to  attain   ’”‘ˆ‡••‹‘ƒŽ“—ƒŽ‹ϐ‹…ƒ–‹‘•Ǥ̶ :[YVUNL[OPJHSJVYL ‹ŽŽ•†‘ ‹• …‘ϐ‹†‡– –Šƒ– ƒ• –Š‡  ‡…‘‘‹‡• †‡˜‡Ž‘’ ƒ† Ž‡‰ƒŽ ƒ† ϐ‹•…ƒŽ ’‘Ž‹…‹‡• ƒ–—”‡ ƒ† emulate   other   more   developed   regions,   corruption   will  slowly  decline.  


ACCOUNTANCY 101

With any severe political change such as has occurred in the Arab Spring, economic difficulties are expected initially due to political unrest, which leads to reduced foreign investments, liquidity difficulties and increased pressure of public economic demands -­ Karim Abd-­Elhay, President of the Dubai Chapter of the Institute of Management Accountants (IMA)

"The accounting   profession   has   as   its   backbone   a   strong   ethical   core.   As   the   profession's   strength   increases   in   these   regions   -­‐   possibly   with   the   development   of   regional   accounting   bodies   -­‐   corruption  will  come  more  under  the  microscope  of   the  professional  accountant.  The  various  accounting   bodies'  ethical  core  will  ensure  that  corruption  will   be  rooted  out  over  time."   He   is   also   convinced   there   will   be   enough   accountants   to   meet   future   demand   and   that   this   demand  will  be  driven  by  an  emerging  private  sector   rather  than  the  public  sector,  which  will  inevitably   have   to   be   reduced   in   size   as   state   spending   comes   under  increased  scrutiny.   Says   Willsdon:   "A   major   concern   of   many   Gulf   countries   is   getting   their   own   citizens   to   up-­‐skill.   Oil  revenues  have  meant  that  many  did  not  need  to   work  or  only  wanted  to  be  employed  at  the  highest   Ž‡˜‡Žǡ™Š‡–Š‡”“—ƒŽ‹ϐ‹‡†‘”‘–Ǥ•ƒ”‡•—Ž–ǡƒ›‘ˆ the  largest  organisations  are  being  run  by  a  silent,   expat  majority.”   “Many   of   the   Gulf   states   now   know   they   haven't   got   many   years   of   oil   left   and   therefore   see   the   need   to   invest   in   both   physical   infrastructure   and   also   education   as   a   way   of   empowering   their   …‹–‹œ‡•Ǥ ”‘ˆ‡••‹‘ƒŽ “—ƒŽ‹ϐ‹…ƒ–‹‘• ƒ”‡ ƒŽ”‡ƒ†› ‹ great  demand,  but  this  can  only  increase  as  the  oil   revenues  slowly  run  out."   ‹–Š –Š‡ ‰”‘™–Š ‘ˆ •Žƒ‹… ϐ‹ƒ…‡ ‘˜‡” –Š‡ ’ƒ•– ʹͲ–‘͵Ͳ›‡ƒ”•ǡ†‡ƒ†ˆ‘”•—‹–ƒ„Ž›“—ƒŽ‹ϐ‹‡†•–ƒˆˆ has   become   acute.   The   indigenous   population   are   ‹†‡ƒŽŽ› •—‹–‡† –‘ ϐ‹ŽŽ –Š‹• †‡ƒ† „‡…ƒ—•‡ ‘ˆ –Š‡‹” religious   background   and   the   fact   that   they   are   Arabic  speaking,  Willsdon  continues.   ̶ •Žƒ‹…ϐ‹ƒ…‡Šƒ•„‡‡‰”‘™‹‰ƒ–”ƒ–‡•‘ˆʹͲ–‘ 30%  for  the  past  decade  and  more  and  there  is  no   evidence  that  this  is  likely  to  decrease,"  he  says.  

"The shift   of   many   MENA   countries   to   a   stronger   Arab   identity   -­‐   along   with   the   developments   which   have   already   taken   place   in   the   industry   in   terms   ‘ˆ –Š‡ ƒ˜ƒ‹Žƒ„‹Ž‹–› ‘ˆ •Žƒ‹… ϐ‹ƒ…‡ ’”‘†—…–• ƒ† services   -­‐   means   that   we   can   only   expect   Islamic   ϐ‹ƒ…‡–‘…‘–‹—‡‰”‘™‹‰Ǥdz “There   are   also   many   governments   in   the   MENA   region  who  envy  the  success  enjoyed  by  countries   •—…Šƒ•ƒŽƒ›•‹ƒ‹–‡”•‘ˆ •Žƒ‹…ϐ‹ƒ…‡‰”‘™–Š and  identity.  Countries  such  as  Bahrain,  the  UAE  and   Qatar  to  name  a  few  are  keen  to  develop  themselves   ƒ• •Žƒ‹…ϐ‹ƒ…‡Š—„•Ǥ̶ 7YVWLYJVYWVYH[LNV]LYUHUJL The  Dubai  chapter  of  the  IMA  has  experienced  increased   †‡ƒ†ˆ‘”‹–•’”‘ˆ‡••‹‘ƒŽ…‡”–‹ϐ‹…ƒ–‹‘ǡ•ƒ›•„†ǦŽŠƒ›Ǥ "Organisations   now   look   for   accountants   who   …ƒ Š‡Ž’ ‹ ‹’”‘˜‹‰ ‡ˆϐ‹…‹‡…› –Š”‘—‰Š ’”‘’‡” analysis  and  planning  and  this  comes  in  line  with  the   change  that  the  people  in  the  Arab  Spring  countries   are  looking  for,"  he  says.   He   is   in   accord   with   the   view   that   the   accounting   profession  has  a  role  to  play  in  reducing  corruption   in  business.   "Accounting   professionals   play   a   vital   role   in   implementing   and   applying   proper   corporate   governance,   which   targets   the   reduction   of   corruption.  There  is  increasing  attention  paid  to  the   importance  of  applying  business  ethics  that  provide   ’”‘’‡”–‘‘Ž•–‘ϐ‹‰Š–…‘””—’–‹‘Ǥ While   there   is   still   a   lot   of   work   to   be   done   in   the   wake  of  the  Arab  Spring  the  accounting  profession  is   in  the  perfect  position  to  help  the  countries  affected   to  rebuild  their  economies  by  helping  to  weed  out   corruption  and  take  hold  of  the  opportunities  in  the   ˆ‘”‘ˆ •Žƒ‹…ϐ‹ƒ…‡’”‘†—…–•ƒ†•‡”˜‹…‡•Ǥ           -­‐  The  Accountant,  UK   51


BUSINESS INSIGHTS

MENA IPOs RAISE $2B

Saudi Arabia and the UAE come tops as regional hubs of public listing activity for investors

R

EGIONAL CAPITAL markets raised approximately $2 billion in 2012 up from $843.9 million in 2011; an increase of 134%, according to the latest Ernst & Youngâ&#x20AC;&#x2122;s Middle East and North Africa (Mena) fourth quarter and year-­end 2012 â&#x20AC;&#x2DC;IPO Updateâ&#x20AC;&#x2122; report

$1.4B

AMOUNT RAISED BY SAUDI ARABIA THROUGH IPO IN 2012 52 January 2013

The  year  closed  w ith  regional  companies  raising  a   total  of  $339.8  million  t hrough  three  initial  public   offerings   (IPOs)   in   the   fourth   quarter   of   2012.   Â&#x160;Â&#x2039;Â&#x2022;Â&#x2039;Â&#x2022;Â&#x2022;Â&#x2039;Â&#x2030;Â?Â&#x2039;Ď?Â&#x2039;Â&#x2026;Â&#x192;Â?Â&#x2013;Â&#x17D;Â&#x203A;Â&#x160;Â&#x2039;Â&#x2030;Â&#x160;Â&#x2021;Â&#x201D;Â&#x2013;Â&#x160;Â&#x192;Â?Â&#x2013;Â&#x160;Â&#x2021;Í&#x201E;ʹʹ͸ǤͳÂ?Â&#x2039;Â&#x17D;Â&#x17D;Â&#x2039;Â&#x2018;Â? raised  in  t he  fourth  quarter  of  2011  and  the  $252.3   million  raised  in  the  third  quarter  of  2012. Phil  Gandier,  Menaâ&#x20AC;&#x2122;  Head  of  Transaction  Advisory   Services,   Ernst   &   Young   says:   â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s   been   an  

eventful  year   [2012]   for   the   region,   with   mixed   implications   for   the   capital   markets.   Drawing   comparisons   over   the   last   two   years   we   have   noticed   a   steady   climb   in   the   amount   of   funds   being   raised   by   IPOs   possibly   hinting   that   markets   are   inching   towards   better   results.   The   outlook   for   2013   will   be   to   a   great   extent   Â&#x2039;Â?Ď?Â&#x17D;Â&#x2014;Â&#x2021;Â?Â&#x2026;Â&#x2021;Â&#x2020; Â&#x201E;Â&#x203A; Â&#x2039;Â?Â&#x2DC;Â&#x2021;Â&#x2022;Â&#x2013;Â&#x2018;Â&#x201D; Â&#x2022;Â&#x2021;Â?Â&#x2013;Â&#x2039;Â?Â&#x2021;Â?Â&#x2013;Â&#x2022;ÇĄ Â&#x192;Â&#x2030;Â&#x192;Â&#x2039;Â?Â&#x2022;Â&#x2013; Â&#x2013;Â&#x160;Â&#x2021; backdrop   of   regional   developments.   We   are   Â&#x2026;Â&#x2018;Â?Ď?Â&#x2039;Â&#x2020;Â&#x2021;Â?Â&#x2013; Â&#x2013;Â&#x160;Â&#x192;Â&#x2013; Â&#x192;Â&#x2014;Â&#x2020;Â&#x2039; Â&#x201D;Â&#x192;Â&#x201E;Â&#x2039;Â&#x192; Â&#x192;Â?Â&#x2020; Â&#x2013;Â&#x160;Â&#x2021;  Â&#x2122;Â&#x2039;Â&#x17D;Â&#x17D; continue   to   be   the   regional   hubs   of   IPO   activity   for  investors  in  2013.â&#x20AC;?   ;OYLL076ZPU8 Dallah  Healthcare  Holding  Company  led  regional  IPO   deal  sizes  with  its  $143  million  listing  on  the  Saudi   Stock   Exchange   (Tadawul)   in   November   followed  


BUSINESS INSIGHTS

The outlook for 2013 will be to a great extent influenced by investor sentiments, against the backdrop of regional developments.

Phil Gandier, Head of Transaction Advisory Services, Ernst & Young MENA

Â&#x201E;Â&#x203A;Â&#x17D; Â&#x153;Â&#x153; Â&#x2022;Â&#x17D;Â&#x192;Â?Â&#x2039;Â&#x2026;Â&#x192;Â?Â?Â&#x192;Â&#x2013;Í&#x201E;ͳͲ͸Â?Â&#x2039;Â&#x17D;Â&#x17D;Â&#x2039;Â&#x2018;Â?Â&#x2018;Â?Â&#x2013;Â&#x160;Â&#x2021;Â&#x2014;Â&#x2022;Â&#x2026;Â&#x192;Â&#x2013; Securities  Market   in   September.   The   third   IPO   in   Q4  was  Amira  Nature  foods  listing  on  the  New  York   Stock  Exchange  (NYSE)  at  $90m  in  October. Saudi  Arabia  led  the  country  standings  in  2012,   raising   $1.4   billion   through   seven   IPOs   in   all   of   ʹͲͳʹǥÂ&#x2C6;Â&#x2018;Â&#x17D;Â&#x17D;Â&#x2018;Â&#x2122;Â&#x2021;Â&#x2020;Â&#x201E;Â&#x203A;Â&#x2013;Â&#x160;Â&#x2021;Â&#x2122;Â&#x2039;Â&#x2013;Â&#x160;Í&#x201E;ʹ͚͚Â?Â&#x2039;Â&#x17D;Â&#x17D;Â&#x2039;Â&#x2018;Â?Â&#x192;Â?Â&#x2020; Â?Â&#x192;Â?Â&#x2122;Â&#x2039;Â&#x2013;Â&#x160;Í&#x201E;ʹ͸͜Ǥ͜Â?Â&#x2039;Â&#x17D;Â&#x17D;Â&#x2039;Â&#x2018;Â?ǤÂ&#x2018;Â&#x201D;Â&#x2018;Â&#x2026;Â&#x2026;Â&#x2018;Â&#x192;Â?Â&#x2020;Â&#x2014;Â?Â&#x2039;Â&#x2022;Â&#x2039;Â&#x192; were   the   only   other   Mena   countries   with   IPO   activity  in  2012. Phil   Gandier   says:   â&#x20AC;&#x153;When   we   look   back   at   the   sector   split   of   the   IPOs   that   have   taken   place   in   2012   we   can   see   a   broad   spread   of   coverage   Â&#x2122;Â&#x160;Â&#x2021;Â&#x201D;Â&#x2021;Ď?Â&#x2039;Â&#x2DC;Â&#x2021;Â&#x2122;Â&#x2021;Â&#x201D;Â&#x2021;Â&#x2039;Â?Â&#x2013;Â&#x160;Â&#x2021;Â&#x192;Â&#x2013;Â&#x2021;Â&#x201D;Â&#x2039;Â&#x192;Â&#x17D;Â&#x2022;Â&#x2022;Â&#x2021;Â&#x2026;Â&#x2013;Â&#x2018;Â&#x201D;ÇĄÂ&#x2C6;Â&#x2018;Â&#x17D;Â&#x17D;Â&#x2018;Â&#x2122;Â&#x2021;Â&#x2020; by   three   each   in   the   Financial   and   Consumer   Products   sectors,   two   in   the   Healthcare   sector   and  one  IPO  in  t he  Packaged  Foods  Sector.â&#x20AC;? .SVIHS076HJ[P]P[`

Â?ÍśʹͲͳʹǥÂ&#x2013;Â&#x160;Â&#x2021;Â?Â&#x192;Â&#x201D;Â?Â&#x2021;Â&#x2013;Â&#x2022;Â&#x201D;Â&#x192;Â&#x2039;Â&#x2022;Â&#x2021;Â&#x2020;Í&#x201E;͚Ǥ;Â&#x201E;Â&#x2039;Â&#x17D;Â&#x17D;Â&#x2039;Â&#x2018;Â?Č&#x2039;Í´Íť IPOs),  narrowing  the  lead  on  the  Asian  markets,   which   raised   $8.8   billion   (59   IPOs).   European   exchanges  also  saw  something  of  a  return  to  form,   Â&#x2122;Â&#x2039;Â&#x2013;Â&#x160;Â&#x2020;Â&#x2021;Â&#x192;Â&#x17D;Â&#x2DC;Â&#x192;Â&#x17D;Â&#x2014;Â&#x2021;Â&#x201D;Â&#x2021;Â&#x192;Â&#x2026;Â&#x160;Â&#x2039;Â?Â&#x2030;Í&#x201E;͚ǤͲÂ&#x201E;Â&#x2039;Â&#x17D;Â&#x17D;Â&#x2039;Â&#x2018;Â?Č&#x2039;ʹͲ Â&#x2022;Č&#x152;Ǥ Globally,   year-­â&#x20AC;?on-­â&#x20AC;?year,   the   picture   for   Q4   remained   somewhat   depressed.   The   number   of   Â&#x2020;Â&#x2021;Â&#x192;Â&#x17D;Â&#x2022;Â&#x2C6;Â&#x2021;Â&#x17D;Â&#x17D;͜͸ΨÂ&#x2C6;Â&#x201D;Â&#x2018;Â?ʹ͡͡Â&#x2020;Â&#x2021;Â&#x192;Â&#x17D;Â&#x2022;Â&#x2039;Â?ÍśʹͲͳͳÂ&#x2013;Â&#x2018;ͳ;͸ deals   in   Q4   2012,   whereas   by   capital   raised,   it   Â&#x2018;Â?Â&#x17D;Â&#x203A;Â&#x2C6;Â&#x2021;Â&#x17D;Â&#x17D;͸ΨÂ&#x2C6;Â&#x201D;Â&#x2018;Â?Í&#x201E;ʹ͝ǤͳÂ&#x201E;Â&#x2039;Â&#x17D;Â&#x17D;Â&#x2039;Â&#x2018;Â?Â&#x2039;Â?Â&#x2013;Â&#x160;Â&#x2021;Â&#x2022;Â&#x192;Â?Â&#x2021;Â&#x2019;Â&#x2021;Â&#x201D;Â&#x2039;Â&#x2018;Â&#x2020; Â&#x17D;Â&#x192;Â&#x2022;Â&#x2013;Â&#x203A;Â&#x2021;Â&#x192;Â&#x201D;Â&#x2013;Â&#x2018;Í&#x201E;ʹ͚Ǥ;Â&#x201E;Â&#x2039;Â&#x17D;Â&#x17D;Â&#x2039;Â&#x2018;Â?Â&#x2013;Â&#x160;Â&#x2039;Â&#x2022;Â&#x201C;Â&#x2014;Â&#x192;Â&#x201D;Â&#x2013;Â&#x2021;Â&#x201D;Ǥ Maria   Pinelli,   Ernst   &   Youngâ&#x20AC;&#x2122;s   Global   Vice   Chair   Strategic  Growth  Markets  says:  â&#x20AC;&#x153;The  weakening  

economy,  unstable  equity  market  conditions  and   poor   performances   on   some   IPO   transactions   Â&#x2014;Â?Â&#x2020;Â&#x2018;Â&#x2014;Â&#x201E;Â&#x2013;Â&#x2021;Â&#x2020;Â&#x17D;Â&#x203A;Â&#x2039;Â?Â&#x2019;Â&#x192;Â&#x2026;Â&#x2013;Â&#x2021;Â&#x2020;Â&#x2039;Â?Â&#x2DC;Â&#x2021;Â&#x2022;Â&#x2013;Â&#x2018;Â&#x201D;Â&#x2022;ÇŻÂ&#x2026;Â&#x2018;Â?Ď?Â&#x2039;Â&#x2020;Â&#x2021;Â?Â&#x2026;Â&#x2021;ǤÂ&#x2022; expected,   there   has   been   lower   IPO   activity   in   Asia   as   the   number   of   state   owned   enterprises   (SOEs)   coming   to   market   has   diminished.   The   Â&#x2C6;Â&#x2018;Â&#x2014;Â&#x201D;Â&#x2013;Â&#x160; Â&#x201C;Â&#x2014;Â&#x192;Â&#x201D;Â&#x2013;Â&#x2021;Â&#x201D; Ď?Â&#x2039;Â&#x2030;Â&#x2014;Â&#x201D;Â&#x2021;Â&#x2022; Â&#x2022;Â&#x160;Â&#x2018;Â&#x2122; Â&#x2013;Â&#x160;Â&#x192;Â&#x2013; Â&#x2013;Â&#x160;Â&#x2021;   market   is   back   by   deal   number   and   rewarding   companies   that   perform   strongly.   Europe   has   Â&#x2022;Â&#x2039;Â&#x2030;Â?Â&#x2039;Ď?Â&#x2039;Â&#x2026;Â&#x192;Â?Â&#x2013;Â&#x17D;Â&#x203A; Â&#x2039;Â?Â&#x2026;Â&#x201D;Â&#x2021;Â&#x192;Â&#x2022;Â&#x2021;Â&#x2020; Â&#x192;Â&#x2026;Â&#x2013;Â&#x2039;Â&#x2DC;Â&#x2039;Â&#x2013;Â&#x203A; Â&#x2039;Â? Â&#x2013;Â&#x160;Â&#x2021; Â&#x2C6;Â&#x2018;Â&#x2014;Â&#x201D;Â&#x2013;Â&#x160; quarter,  compared  to  t he  rest  of  t he  year.â&#x20AC;? <:Z[VJRL_JOHUNLZHOLHKVM(ZPH The   NYSE   and   NASDAQ   exchanges   raised   $44.9   Â&#x201E;Â&#x2039;Â&#x17D;Â&#x17D;Â&#x2039;Â&#x2018;Â? Â&#x2039;Â? ͳʹͺ Â&#x2020;Â&#x2021;Â&#x192;Â&#x17D;Â&#x2022;ÇĄ Â&#x192;Â?Â&#x2020;  Â&#x201D;Â&#x192;Â&#x2039;Â&#x2022;Â&#x2021;Â&#x2020; ͳ͝Ψ Â&#x2018;Â&#x2C6; global   proceeds   in   2012;   leading   the   Shenzhen,   Hong   Kong   and   Shanghai   stock   exchanges   ($11.1   billion   via   129   deals,   $9.8   billion   via   44   deals,   $5.3  billion  v ia  25  deals  respectively)  for  a  second   consecutive  year. Â&#x160;Â&#x2021; Â&#x2022;Â&#x2039;Â&#x192;Â? Â&#x2021;Â&#x161;Â&#x2026;Â&#x160;Â&#x192;Â?Â&#x2030;Â&#x2021;Â&#x2022; Â&#x2018;Â?Â&#x17D;Â&#x203A; Â&#x2026;Â&#x2018;Â?Â&#x2019;Â&#x17D;Â&#x2021;Â&#x2013;Â&#x2021;Â&#x2020; ;͚; Â&#x2020;Â&#x2021;Â&#x192;Â&#x17D;Â&#x2022; Â&#x2122;Â&#x160;Â&#x2039;Â&#x2026;Â&#x160; Â&#x201D;Â&#x192;Â&#x2039;Â&#x2022;Â&#x2021;Â&#x2020; Í&#x201E;͚͜Â&#x201E;ÇĄ Â&#x2020;Â&#x2018;Â&#x2122;Â? ͜͸Ψ Â&#x201E;Â&#x203A; Â&#x2026;Â&#x192;Â&#x2019;Â&#x2039;Â&#x2013;Â&#x192;Â&#x17D; Â&#x201D;Â&#x192;Â&#x2039;Â&#x2022;Â&#x2021;Â&#x2020; Â&#x2026;Â&#x2018;Â?Â&#x2019;Â&#x192;Â&#x201D;Â&#x2021;Â&#x2020;Â&#x2013;Â&#x2018;ʹͲͳͳČ&#x2039;͸ͳͲ Â&#x2022;ÇĄÂ&#x201D;Â&#x192;Â&#x2039;Â&#x2022;Â&#x2039;Â?Â&#x2030;Í&#x201E;ͺͺÂ&#x201E;Â&#x2039;Â&#x17D;Â&#x17D;Â&#x2039;Â&#x2018;Â?Č&#x152;Ǥ Other   active   stock   exchanges   included,   Bursa   Â&#x192;Â&#x17D;Â&#x192;Â&#x203A;Â&#x2022;Â&#x2039;Â&#x192;ÇĄ Â&#x201D;Â&#x192;Â&#x2039;Â&#x2022;Â&#x2039;Â?Â&#x2030; Í&#x201E;͚Ǥ͸ Â&#x201E;Â&#x2039;Â&#x17D;Â&#x17D;Â&#x2039;Â&#x2018;Â? Â&#x2122;Â&#x2039;Â&#x2013;Â&#x160; Â&#x2013;Â&#x160;Â&#x201D;Â&#x2021;Â&#x2021; Â&#x2018;Â&#x2C6; Â&#x2013;Â&#x160;Â&#x2021; yearâ&#x20AC;&#x2122;s  top  20  deals,  the  HKEx  ($9.8  billion  in  44   deals),   and   the   Shanghai   and   Shenzhen   Stock   Â&#x161;Â&#x2026;Â&#x160;Â&#x192;Â?Â&#x2030;Â&#x2021;Â&#x2022; Č&#x2039; Â&#x192;Â?Â&#x2020; Â&#x160;Â&#x2039;Â&#x2021;Â&#x161;Â&#x2013;Č&#x152;ÇĄ Â&#x201D;Â&#x192;Â&#x2039;Â&#x2022;Â&#x2021;Â&#x2020; Í&#x201E;ͳ͸Ǥ͜ billion  in  154  deals  in  total. â&#x20AC;&#x153;Looking   ahead   to   2013,   we   expect   a   better   Â&#x2018;Â&#x2014;Â&#x2013;Â&#x17D;Â&#x2018;Â&#x2018;Â?ÇĄ Â&#x2122;Â&#x2039;Â&#x2013;Â&#x160; Â&#x192; Â&#x2022;Â&#x2013;Â&#x201D;Â&#x2021;Â?Â&#x2030;Â&#x2013;Â&#x160;Â&#x2021;Â?Â&#x2039;Â?Â&#x2030;  Â&#x2021;Â&#x2026;Â&#x2018;Â?Â&#x2018;Â?Â&#x203A; leading   the   recovery,   followed   in   the   latter   half   of   the   year   by   Europe   and   Asia.   Reduced   stock   market   volatility,   assertive   action   from   central   banks  and  brighter  economic  prospects  suggest   2013   could   be   the   right   time   for   companies   currently  in  t he  pipeline  to  list,â&#x20AC;?  says  Pinelli.   DzÂ&#x160;Â&#x2021;ÇĄÂ&#x2018;Â&#x201D;Â&#x2018;Â?Â&#x2013;Â&#x2018;ÇĄÂ&#x2018;Â?Â&#x2020;Â&#x2018;Â?ÇĄ Â&#x201D;Â&#x192;Â?Â?Â&#x2C6;Â&#x2014;Â&#x201D;Â&#x2013;ÇĄÂ&#x192;Â?Â&#x2020;Â&#x2018;Â&#x2022;Â&#x2026;Â&#x2018;Â&#x2122; Â&#x2022;Â&#x2013;Â&#x2018;Â&#x2026;Â?Â&#x2021;Â&#x161;Â&#x2026;Â&#x160;Â&#x192;Â?Â&#x2030;Â&#x2021;Â&#x2022;Â&#x17D;Â&#x2039;Â&#x2C6;Â&#x2013;Â&#x2021;Â&#x2020;Â&#x2022;Â&#x2039;Â&#x2030;Â?Â&#x2039;Ď?Â&#x2039;Â&#x2026;Â&#x192;Â?Â&#x2013;Â&#x17D;Â&#x203A;Â&#x2039;Â?Â&#x2013;Â&#x160;Â&#x2021;Â&#x2C6;Â&#x2018;Â&#x2014;Â&#x201D;Â&#x2013;Â&#x160; quarter,   thus   suggesting   that   signs   of   stability   in   equity   markets   and   supportive   central   bank   policy  are  starting  to  take  effect.  We  believe  the   market  is  likely  to  see  smaller  offerings  initially   Â&#x2122;Â&#x160;Â&#x2039;Â&#x17D;Â&#x2021; Â?Â&#x192;Â&#x201D;Â?Â&#x2021;Â&#x2013; Â&#x192;Â?Â&#x2020; Â&#x2039;Â?Â&#x2DC;Â&#x2021;Â&#x2022;Â&#x2013;Â&#x2018;Â&#x201D; Â&#x2026;Â&#x2018;Â?Ď?Â&#x2039;Â&#x2020;Â&#x2021;Â?Â&#x2026;Â&#x2021; Â&#x201E;Â&#x2014;Â&#x2039;Â&#x17D;Â&#x2020;Â&#x2022;ÇĄÇł the  executive  adds.   53


MOVERS & SHAKERS

PASSION FOR

BANKING Surya Subramanian, Chief Financial Officer of Emirates NBD Bank, tells Joyce Njeri what it takes to lead the finance division of one of the top lending institutions in the region

When Emirates NBD Bank announced its third quar ter r e s u l t s yo u a t t r i b u t e d t h e b a n k ’s s t r o n g o p e r a t i n g performance to the sustained cost optimisation initiative, declining operational costs and the bank’s strategy to maintain conser vatism in de-­risking its balance sheet. CFOs are generally known to focus more on reducing operational costs. Do you think some of these measures eschew other growth initiatives, in favour of cost cutting and profit optimisation?

A.

There are   two   aspects   to   cost   control  f rom  a  C FO’s  p erspective.   The  f irst  i s  t o  e nsure  t hat  w e  g et   value   for   every   dirham   spent.   You   can   also   extend   this   to   state   that   CFO’s   will  p ush  f or  r elative  v alue  w hen  t he  s ituation   demands,   such   as   when   we   have   to   choose   between   competing   projects   with   a   limited   investment   s pend.   The   second   aspect   is   trickier   and   often   requires   deep   industry   knowledge   where   we   have   to   balance   between   what   I   call   the   3   Cs   –   Cost,   Control   /   Compliance   and   Customer   Service.   This,   well   done,   leads   to   sustainable   profit  m aximisation.   Taking   about   performance,   CFOs   are   ultimately   evaluated   by   the   company’s   overall   results.   If   performance   falls   short,   the  C FO  i s  u sually  t he  s capegoat.  A s  t he  C FO   of  one  of  t he  biggest  b anks  i n  t he  r egion,  how   do  you  deal  w ith  p erformance  pressure?   54 January 2013


MOVERS & SHAKERS

It helps   that   I   have   experienced   and   learnt   from  a n  e arlier  A sian  f inancial  c risis.   Our  bank  also  has  a  clear  strategy  to  put  the  effects   of  the  crisis  behind  us  and  for  the  management  team,   it  is  a  matter  of  steering  the  course  collectively.  The   performance   pressure   then   turns   into   a   positive   challenge   of   how   to   help   the   organisation   achieve   its  goals.  Also,  as  an  added  positive  in  the  context   of   this   question,   while   our   performance   has     not   „‡‡ƒ•‰‘‘†ƒ•„‡ˆ‘”‡ǡ™‡ƒ”‡•–‹ŽŽƒ’”‘ϐ‹–ƒ„Ž‡ƒ† dividend  paying  institution.   You   were   appointed   to   the   position   of   CFO   in   2010.   This   is   also   the   period   when   the   banking  industry  was  still  in  a  challenging   phase   following   the   global   financial   crisis   that   began   in   2008.   There’s   no   doubt   that   these   events   shaped   and   redefined   the   responsibilities   of   the   CFO   a   great   deal.   How,  i n  your  opinion  h as  t he  r ole  of  t he  C FO   changed  p ost  t he  f inancial  c risis?  

ARABIC ACCOUNTING SYSTEM

TRUSTED PERFORMANCE ABILITY AT WORK DATA SECURITY AND STABILITY DATA TRANSPARENCY www.bazarsoft.com

It helps that I have experienced and learnt from an earlier Asian financial crisis. Our bank also has a clear strategy to put the effects of the crisis behind us and for the management team... it is a matter of steering the course collectively. The role   of   the   CFO,   both   before   and   after   the   financial   crisis,   remains   unchanged.   It   has   however   brought   to   focus   the   lesson   that   ‘control’  i s  a  k ey  e lement  of  t he  job  description,   a   fact   some   CFOs   ignored   to   their   personal   peril  a nd  t hat  of  t heir  organisation.   In  a ddition,  n ow  we  h ave  t o  d eal  w ith  i ncreased   scepticism   from   the   auditors   and   regulators  


MOVERS IFRS SPECIAL & SHAKERS

…ŠƒŽŽ‡‰‡• ˆƒ…‹‰ ϐ‹ƒ…‹ƒŽ ƒ—†‹–‹‰ǡ ‹…Ž—†‹‰ that there   is   a   lot   of   focus   on   judgement   related   to   evaluation   of   credit   and   valuation   of   collateral   and   add   to   that...   the   valuation   of   investments.   That  does  compound  problems  of  documentation   and  debate  for  our  industry  t hat  essentially  deals   with  credit  and  maturity  t ransformation.  

SURYA SUBRAMANIAN: $IJFG'JOBODJBM0GmDFSPG &NJSBUFT/#%#BOL

–‘‘ǡ ˆ”‘ –Š‡ ϐ‹ƒ…‹ƒŽ •‡”˜‹…‡• ‹†—•–”›Ǥ Š‹• means that   a   lot   more   thought   and   back-­‐up   preparation  has  to  go  into  a ll  areas  of  judgment.   Today,   CFOs   are   generally   expected   to   ‡•—”‡ –Š‡ …‘•– ‡ˆϐ‹…‹‡…› ‘ˆ –Š‡ ϐ‹ƒ…‡ ƒ† accounting  f unction,  while  providing  strategic   business  g uidance  and  advice  to  t he  CEO.  How   has   t he   relationship  between   t he   CFO  and  the   …Šƒ‰‡†‘˜‡”–Š‡Žƒ•–ϐ‹˜‡›‡ƒ”•ǫ   The   relationship   between   the   CFO   and   the   CEO   has   never   been   stronger.   You   would   have   noted   that   in   most   instances   of   management   change   initiated   by   the   Board   or   Shareholders,   the   CFO   follows  t he  CEO  on  t he  exit  path.  Before  t he  global   ϐ‹ƒ…‹ƒŽ…”‹•‹•ƒ†‹‹–•ƒˆ–‡”ƒ–Šǡ™‡Šƒ˜‡•‡‡ stories  of  individual  glory  t hat  sometimes  tend  to   •™ƒ›‘”‰ƒ‹•ƒ–‹‘•ȂŽƒ”‰‡†‡ƒŽ•ǡ•‹œ‡ƒ„Ž‡’”‘ϐ‹–• within   a   division,   signature   acquisitions   to   name   a   few.   The   CFO’s   role   to   provide   unbiased   input   to   what   these   mean   at   an   organisational   level   is   key   to   avoiding   portfolio   level   pitfalls   that   are   blind   spots   at   a   divisional   level.   It   is   important   therefore   that   there   is   immense   trust   between   the  CEO  and  CFO  to  help  deliver  on  t he  agenda.   Four   years   on,   [after   the   markets’   collapse]   provided  us  crucial  insights  related  to  operational  

The relationship between the CFO and the CEO has never been stronger. You would have noted that in most instances of management change initiated by the Board or Shareholders, the CFO follows the CEO on the exit path.

56 January 2013

Frequent dialogue   and   reviews   w ith   t he   auditors   helps  in  addressing  key  pressure  points  and  it  is   equally   important   to   share   the   thought   process   „‡Š‹† …‘’Ž‡š †‡…‹•‹‘• ƒ• ™‡ŽŽ ƒ• Š‘™ ‹– ϐ‹–• into  t he  overall  strategy.   By  t he  t ime  t his  article  gets  into  print,  we  w ill  be   ready   to   release   f ull   year   results   at   a   date   earlier   than   ever   before   and   this   would   not   have   been   possible  w ithout  quality  information  sharing  and   coordination  between  us  and  our  auditors. As   organisations   today   work   towards   managing  r isks  and  cutting  down  unnecessary   expenditure,   what   do   you   regard   as   the   critical   operational   areas   or   departments   to   be   watched   in   the   everyday   running   of   the   business?   I   have   to   start   with   my   own   function,   Finance,   –‘ ‡•—”‡ –Šƒ– ‹– ‹• ϐ‹– ˆ‘” ’—”’‘•‡ ‹ ƒ ‡™ ‡”ƒǤ Ensuring  t hat  we  have  t he  r ight  t alent  to  support   the   future   growth   of   the   organisation   is   key   on   my  agenda.   As   a   commercial   bank   that   derives   almost   two-­‐ thirds   of   its   revenue   from   net   interest   income,   a   critical   area   of   focus   is   working   together   with   the  rest  of  the  management  team  to  ensure  best-­‐ in-­‐class  asset  /  liability  management.  We  believe   this   is   what   differentiates   Emirates   NBD   from   many  other  banks  in  t he  region. What  path  did  you  take  to  become  the  CFO  of   Emirates  NBD  Bank?   I   started   my   banking   career   with   Standard   Šƒ”–‡”‡†ƒ‹ͳͻͺͶ™‹–Š–Š‡ϐ‹”•–•‡˜‡›‡ƒ”• ‹ ˜ƒ”‹‘—• ‘’‡”ƒ–‹‘ƒŽ ƒ† ˆ”‘–Ǧ‘ˆϐ‹…‡ ”‘Ž‡• in   India,   including   a   very   rewarding   stint   as   a   branch  manager  of  a  f ull-­‐service  unit  in  Goa.  T his   foundation  gave  me  a  strong  understanding  of  t he   industry,  its  products,  services  and  its  c ustomers.   My  career  in  Finance  started  w ith  a  personal  choice   to  migrate  to  Singapore  in  1991  where  I  continued   with  the  same  bank  in  various  regional  and  local   roles   covering   MIS,   Asset   Liability   Management   and  Business  Performance  Reporting.  


MOVERS & SHAKERS

›ϐ‹”•–„”‡ƒƒ•ƒ …ƒ‡‹ͳͻͻͷ™Š‡‘›ƒŽ ƒ ‘ˆ ƒƒ†ƒ †‡…‹†‡† –‘ …”‡ƒ–‡ ƒ Ž‘…ƒŽ ϐ‹ƒ…‡ function for  its  growing  presence  in  Asia  and  this   brought  me  in  direct  touch  with  senior  management   within   the   bank,   auditors   and   regulators.   The   experiences   were   immense   and   cut   across   new   areas   like   Regulatory   Reporting,   Compliance,   Tax   and  Corporate  Secretarial  functions.   In   1999   Standard   Chartered   Bank   recalled   me   to   support   their   (then)   Global   Corporate   and   Institutional   Banking   franchise   headquartered   in   Singapore   and   I   was   a   key   member   of   the   ϐŽ‡†‰Ž‹‰–‡ƒ–Šƒ–…”‡ƒ–‡†ƒ†•‡––Š‡•–”ƒ–‡‰› in   motion   to   build   one   of   the   most   successful   ϐ‹ƒ…‹ƒŽ ‹•–‹–—–‹‘• ’‘•– –Š‡ •‹ƒ ϐ‹ƒ…‹ƒŽ crisis.  Later  I  held  other  roles  as  CFO,  Singapore   and   South-­‐East   Asia   and   COO   for   the   global   ‹ƒ…‡ˆ—…–‹‘”‡•’‘•‹„Ž‡ˆ‘”ϐ‹ƒ…‡•›•–‡• and  processes  and  shared  service  centres.   I   left   banking   in   early   2007   to   focus   on   family     and   spend   quality   t ime   w ith   my   young   daughter,   and   therefore   I   missed   the   direct   onslaught   of   –Š‡ …—””‡– ϐ‹ƒ…‹ƒŽ …”‹•‹•Ǥ › –‹‡ ™ƒ• •’‡– between  various  community  activities  and  a  foray  

into corporate  governance  as  an  audit  committee   member  at  t he  Infocomm  Development  Authority   in  Singapore.   Later,   I   took   on   a   more   formal   role   with   the   Ministry  of  Finance  and  w ith  t he  Accounting  and   Corporate   Regulatory   Authority   in   Singapore   to   assist   with   the   development   of   accounting   •–ƒ†ƒ”†• ƒ† –Š‡ ”‡‰—Žƒ–‹‘ ‘ˆ ϐ‹ƒ…‹ƒŽ reporting   statements.   This   has   to   be   counted   as   a   unique   and   rewarding   experience   that   also   lead   to   being   a   member  of   the   Advisory   Council   to  t he  International  Accounting  Standards  Board   (IASB).   Eventually   some   search   consultant   dug   me   out   of   a   four   year   retirement   to   bring   me   back   to   my   passion   in   banking   for   a   role   as   the   CFO   of   Emirates  NBD  where  I  have  now  completed  two   very  challenging  yet  satisfying  years.   Outside  the  workplace,  my  interest  lies  in  reading   ‘Ǧϐ‹…–‹‘ǡ•™‹‹‰ƒ†–”ƒ˜‡ŽŽ‹‰–‘‡™’Žƒ…‡• across   the   world.   I   am   glad   that   my   family   also   loves  to  travel  and  that  allows  us  to  learn  about  new   people  and  cultures  each  holiday  we  take.  

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POINT BLANK

BATTLE AGAINST

SLEAZE Bribery and corruption in the Middle East is no longer ‘simply a cost of doing business’

58 January 2013


POINT BLANK

T CHARLES ROBSON DIRECTOR, RISK CONSULTING, FORENSIC - KPMG

HE SUBJECT of bribery and corruption in the region is still not a comfortable one. Bribery has been with us since time immemorial, it is not new. Yet since only relatively recently, has it started to be taken seriously. Why and what to do?

have or,  are,  currently  amending  their  bribery   laws   including   the   Czech   Republic,   Ireland,   Luxembourg,   Romania   and   Sweden.   Outside   the   EU,   Australia,   Brazil   Mexico,   India   and   Russia   have   also   either   recently   amended,   or   are   considering   amending   their   statutes.   Zambia  i s  t he  only  A frican  c ountry  c ited.  

>O`¶7YLZZ\YL[VSLNPZSH[LHNHPUZ[IYPILY` To u nderstand  w hy,  we  need  t o  go  a s  f ar  b ack  a s   1977,   when   the   Foreign   Corrupt   Practices   Act   (FCPA),   came   into   force   in   the   United   States.   The  legislation,  w hich  c riminalised  t he  bribery   of   foreign   public   officials,   followed   a   string   of   corporate  s candals  i n  t he  United  States.  

Until relatively   recently,   governments   in   the   Middle  East  have  watched  these  developments   from  t he  s idelines.  However,  t here  a re  s igns  t hat   here  too,  governments  are  starting  to  take  the   subject  of  c orruption  s eriously.  I n  June  2012,  it   was  a nnounced  t hat  i n  t he  UAE,  t he  State  Audit   Institution   has   been   instructed   to   prepare   an   anti-­‐corruption   draft   law.   Meanwhile,   back   in   November,  2011,  Qatar  a nnounced  t he  s et  up  a n   anti-­‐corruption   watchdog,   the   Administrative   Control   and   Transparency   Authority   (ACTA),   which   has   been   tasked   with   tracking   state   ministries   and   agencies   and   probing   claims   of   abuse  of  p ower  or  public  f unds.

Since the   FCPA   came   into   force,   American   business   leaders   have   complained   that   US   companies   were   placed   at   an   unfair   disadvantage   because   they   were   not   able   to   operate   on   a   level   playing   field.   This   led   to   pressure   for   US   politicians   to   encourage   other   countries   to   take   a   similar   stance.   It   also   culminated   in   the   signing   of   the   OECD   Convention   on   Combating   Bribery   of   Foreign   Public   Officials   in   International   Business   Transactions  i n  1997.   Simply  put,  t he  c onvention  i s  a imed  at  r educing   corruption   by   encouraging   sanctions   against   bribery  in  international  business  transactions   carried  out  by  c ompanies.  Its  goal  i s  t o  c reate  a   truly  level  playing  f ield  i n  t oday's  i nternational   business  environment.   The   39   countries   that   signed   the   convention   (none   of   whom   were   originally   in   the   Middle   East)   agreed   to   put   in   place   legislation   that   criminalises  the  act  of  bribing  a  foreign  public   official.  T his  h as  led  t o  a  f lurry  of  legislation.   We   have   recently   seen   the   passing   of   the   UK   Bribery   Act.   At   least   five   countries   in   the   EU  

Governments in the Middle East have started to take the subject of corruption seriously, with the UAE instructing the State Audit Institution to prepare an anti-­corruption draft law and Qatar announcing it has set up an anti-­corruption watchdog.

*OHUNLVMLTWOHZPZ Why t hen,   i f   c orruption   h as   b een   w ith   u s   s ince   well   before   the   Pharaohs,   are   we   suddenly   seeing  a n  i nterest  i n  t he  t opic?  It  h as  long  b een   understood   that   bribery   has   a   detrimental   effect   on   economic   development.   Bribes,   even   small  payments,  are  socially  damaging  as  they   promote   a   cultural   acceptance   of   a   vice   that   tends   to   lead   to   the   spread   of   corruption   and   the  undermining  of  legitimate  governance  and   the  r ule  of  l aw.   Egregious   business   practices   not   only   stifle   a   country’s   internal   national   economic   development   but   also   significantly   curtail   sustainable   and   beneficial   foreign   direct   investment   opportunities.   Countries   that   lack   transparency   and   clarity   of   regulations   pertaining   to   business   are   generally   less   attractive  t o  f oreign  i nvestors.   The   realisation   that   corruption   is   harmful   is   however  not  the  only  driving  force  for  change,   embarrassing   investigations,   multi-­‐million   dollar   fines,   blacklisting   of   companies   and   even  jail  time  for  executives  are  surely  having   an  effect  t oo.   We  h ave  s een  more  a nd  more  bribery  a llegations   reported  in  the  media,  many  of  them  involving   Middle   East   companies.   The   sectors   that   crop   up   most   often   include,   defense,   healthcare   and  oil  and  gas  but  there  are  also  a  number  of   59


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reported cases   in   the   construction   sector   and   indeed  d iversified  i ndustrials.  

evidence of  anti-­‐bribery  messages  in  internal  and   external  communications.

>OH[[VKVHKLX\H[LWYVJLK\YLZ Ignorance is   not   a   defense.   Regulators   are   starting   to   hold   companies   criminally   liable   if   they   don’t   have   adequate   anti-­‐bribery   procedures   in   place.   It   is   important   to   realise   that   this   duty   of   care   extends   to   agents   and   distributors  acting  on  a n  organisation’s  b ehalf.  

3. Identification  of  Areas  of  High  B ribery  Risk  

What procedures   should   an   organisation   have   in   place?   Until   relatively   recently,   the   level   of   guidance   in   this   area   was   poor,   no   longer.   Transparency   International   recently   issued   detailed   guidance   on   the   topic,   whereas   the   UK   Ministry   of   Justice   (MoJ)   has   suggested   a   risk-­‐ based   approach   to   managing   bribery   based   on   six   key   principles.   These   six   principles   follow   a   common  sense  approach  and  are  explained  below:

I. T ype  of  B usiness  /  B usiness  Model

Organisations a re   e xpected   t o   p erform   bribery   risk   assessments   to   identify   which   areas   of   the   business   carry   a   high   bribery   risk.   When   carrying   this   out,   an   organisation   should   consider,  a mongst  other  t hings:

Certain industries   have   a   strong   history   of   corruption.   A   quick   Google   search   using   the   sector   name   and   the   word   corruption,   may   reveal   multiple   cases   or   allegations.   High   risk   sectors   have   included   for   example,   defense,   healthcare   (medical   devices   and   pharmaceuticals),   extraction   industries,   construction  a nd  c ustoms  c learance.

1. P roportionate  P rocedures An   organisation   should   put   in   place   adequate   and   proportionate   anti-­‐bribery   procedures.   In   practice,  this  means,  procedures  that  take  into   account   the   size,   industry   sector,   geography,   nature   and   complexity   of   the   organisation.   Regulators   e xpect   s imple,   practical   procedures   that  are  proportionate  to  the  level  of  risk.  As  a   minimum,  organisations  should:  D evelop  a  c orporate  a nti-­‐bribery  a nd   corruption  p olicy;  P repare  a ncillary  p olicies  a nd  procedures   to  c over  a reas  of  h igh  r isk,  s uch  a s,  g ifts  a nd   entertainment  a nd  c haritable  donations;  a nd  E stablish  bribery  i ncident  m anagement   procedures  t o  ensure  t hat  s uspected  c ases   of  bribery  a nd  c orruption  a re  duly  e scalated,   adequately  h andled  a nd  i ndependently  a nd   competently  i nvestigated.   2.  D emonstrable  Top-­‐Level  C ommitment Regulators   expect   to   see   clear   evidence   of   commitment  by  the  Board  and  Senior  Management  to   ϐ‹‰Š–‹‰„”‹„‡”›ƒ†…‘””—’–‹‘‹–Š‡‹”‘”‹‰‹ƒ–‹‘ (‘Tone  at  the  Top’).  This  means  promoting  a  culture   within  the  organisation  in  which  bribery  is  never   acceptable.  Regulators  look  for  a  clear  statement  by   the  company  against  bribery,  involvement  of  senior   management   in   anti-­‐bribery   procedures   (steering   committees,  decision  making  and  monitoring)  and   60 January 2013

Tendering is   also   a   high   risk   area.   If   tendering   (either   for   sales   or   for   purchases)  


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is characterised   by   a   long   winded,   onerous   procedures  a nd  t he  v alue  o f  t he  t ender  i s  h igh,   then   t he   l evel   o f   r isk   i s   i ntuitively   g reater.

A  w ritten  c ontract  i s  absent  or  i nformal;  T he  place  of  business  c annot  b e  e asily   corroborated;

II. G eography  C ertain  jurisdictions  a re  more  v ulnerable   to  bribery.  C ompanies  c ommonly  c onsult   corruption  i ndices  s uch  a s  t hose  published   by  Transparency  I nternational  t o  f ocus   anti-­‐bribery  procedures  on  h igher  r isk   jurisdictions;  a nd  Transactions  i nvolving  t ax  h avens  or   opaque  jurisdictions.

T he  n ature  a nd  s ize  of  t he  i ntermediary  i s   inconsistent  w ith  t he  s ervices  r endered;  T here  h ave  b een  i nadequate  b ackground   checks  or  i nvoices  l ack  s upporting   documentation;  or  I ntermediary  i nteraction  i s  s poradic  or  f or  a   single  purpose. IV.  T reasury  and  Accounts  Payable

III. Use  of  a gents  or  intermediaries The   level   of   risk   increases   where   a   business   uses  i ntermediaries.  You  should  b e  p articularly   vigilant  i n  c ases  w here:  I ntermediaries  a re  r ecommended  or   required  by  t he  end  c ustomer;

Corruption risk   management   efforts   should   target  c ash  p ayments,  e xpense  r eimbursements,   irregular   payment   procedures,   out-­‐of-­‐country   payments,   payments   to   tax   havens   or   opaque   jurisdictions  or  one-­‐off  p ayments. Staff   should   be   trained   to   be   vigilant   for   suspicious   v endors.   T hey   s hould   b e   s ceptical   when   invoices   have   vague   descriptions,   the   vendor   was   set   up   or   dormant   prior   to   doing   business   with   you,   or   the   vendor   was   founded   immediately   prior   to   finalising   the   business   a greement. V.  High  Risk  T ransactions Certain   a reas   of   e xpenditure   should   b e   s ubject   to   careful   controls.   They   may   include,   for   example:  Gifts  a nd  entertainment;  C haritable  a nd  p olitical  c ontributions;  Travel  e xpenses  a nd  p ayments  t o  t ravel   agents;  C onferences  a nd  s eminars;  Customer   education  /  t raining;  a nd  R eimbursements  of  (third  p arty)  e xpenses.   4.  Due  Diligence Speaking   to   Senior   Management,   I   have   often   heard   people   say   that   corruption   is   merely   ‘a   cost   of   doing   business’   but   they   do   not   condone   it   and   their   organisation   will   not   engage   in   corruption   but   they   cannot   vouch   61


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Bribes, even small payments, are socially damaging as they promote a cultural acceptance of a vice that tends to lead to the spread of corruption and the undermining of legitimate governance and the rule of law. for their   business   partners   (be   they,   agents   or   intermediaries,   suppliers   or   contractors).   The   regulators   will   not   accept   ignorance   as   a   defense.   On   the   contrary,   organisations   are   surprised  at  the  extent  to  which  they  are  being   held  accountable  f or  t he  actions  of  t heir  business   partners.  T his  h as  profound  i mplications.   The   key   consequence   is   that   due   diligence   reviews   using   a   proportionate   risk-­‐ based   approach,   should   be   undertaken   periodically.   In   particular,   there   should   be   a   focus   on   ‘associated   persons’,   for   example,   those   business   partners   who   perform,   or   will   perform,   services   on   behalf   of   the   organisation,   including   agents,   distributors   and   h igh   r isk   v endors.   When   determining   corruption   risk,   the   business  must:

D etermine  t he  identity  of  its  business   partners  (suppliers,  c ontractors,  a gents,   distributors  a nd  J V  p artners);  D etermine  t he  adequacy  of  t he  level  of  due   diligence  c arried  out  on  business  p artners;  E nsure  t hat  t he  organisation’s  business   partners  a re  aware  of  t he  i mportance  of   compliance  w ith  a nti-­‐bribery  legislation;  a nd  I ncorporate  c ontractual  c lauses  i n  c ontracts   with  business  p artners  r equiring  adherence  t o   anti-­‐bribery  practices. Increasingly,   companies   are   employing   the   use   of   specialist   forensic   organisations   for   this   purpose.   Simply  asking  suppliers  to  provide  uncorroborated   supporting   documentation   is   not   good   enough   in   practice.   You   should   independently   corroborate,   who  the  actual  owners  of  the  business  partners  are,   how  long  and  the  extent  to  which  they  have  been   ‡‰ƒ‰‹‰‹–Š‡‹”ϐ‹‡Ž†‘ˆ‡š’‡”–‹•‡ǡƒ•™‡ŽŽƒ•ǡ–Š‡‹” reputation  for  conducting  business  with  integrity. 5.  C ommunications  and  T raining Periodic   risk-­‐based   management   and   staff   training   ensures   that   anti-­‐bribery   policies   and   procedures   are   properly   communicated   and   embedded   throughout   the   organisation.   This  can  be  promoted  by  internal  and  external   communications   and   training   focused   on   high   risk  a reas  or  f unctions  of  t he  business. In  common  with  other  t ypes  of  misconduct,  it  is  very   important  that  the  organisation  develops  adequate   whistleblower  channels,  through  which,  suspected   cases  of  bribery  may  be  anonymously  reported. 6.  Monitoring  &  Review Last   but   not   least,   regulators   should   see   evidence   of   monitoring   and   regular   review   of   the  a nti-­‐bribery  procedures  i n  place. Although   the   subject   of   bribery   may   not   be   a   comfortable  one,  t he  Boards  of  our  top  companies   are   slowly   coming   to   the   realisation   that   they   can  no  longer  afford  to  ignore,  tolerate,  or  simply   outsource,  t he  problem  of  bribery  and  corruption.   The  message  f rom  the  regulators  is  clear,  companies   and  their  management  w ill  be  increasingly  held  to   account  and  bribery  should  no  longer  be  regarded   as  ‘simply  a  cost  of  doing  business’.  

62 January 2013


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DIFFERENT DIMENSIONS

‘GET GOING. MOVE FORWARD’ Khalil Fawaz’s journey from CFO to CEO of Morgan International is awe inspiring and worthy of admiration

D

ETERMINATION AND the right educational background can account for a lot in today's a c c o u n t i n g, a u d i t i n g a n d finance world. The profession   is   evolving   at   a   rapid   pace   and   Khalil   Fawaz   is   testament   to   this.   Accounting   has   gone   beyond   number   crunching   and   now   involves  exciting  work  that  supports  corporate   strategy  a nd  g rowth.   This   not   only   means   greater   job   prospects   ƒ† ƒ Š‹‰Š‡” Ž‡˜‡Ž ‘ˆ ‰”ƒ–‹ϐ‹…ƒ–‹‘ǡ „—– ”‡“—‹”‡• accountants   to   evolve   with   the   times.   And   ’”‘ˆ‡••‹‘ƒŽ–”ƒ‹‹‰ƒ†…‡”–‹ϐ‹…ƒ–‹‘‹•’”‘˜‹‰ to  be  t he  way  forward.  This  is  why  K halil’s  journey   ˆ”‘ƒ……‘—–‹‰ƒ†ƒ—†‹–‹‰–‘ ǡƒ†ϐ‹ƒŽŽ›–‘

64 January 2013

the new  CEO  of  Morgan  International  is  inspiring   and  indicative  of  the  t imes.   (MVYJL[OH[JYLH[LZ[OLLKNL ……‘”†‹‰ –‘ –Š‡ ›‘—‰ ǡ ƒ……‘—–‹‰ ƒ† ƒ—†‹–‹‰ Šƒ• ’Žƒ›‡† ƒ •‹‰‹ϐ‹…ƒ– ”‘Ž‡ ‹ –Š‡ evolution  of  his  career.   “Enrolling  i n  t he  C PA  p rogramme  a nd  s tarting   my   career   in   auditing   provided   me   with   a   solid   accounting   and   finance   background   that  formed  the  basis  of  my  career.  But  along   ™‹–Š –‡…Š‹…ƒŽ ‘™Ž‡†‰‡ǡ –Š‡ –”ƒ•‹–‹‘ ˆ”‘ ƒ—†‹–‹‰ –‘   –‘  ”‡“—‹”‡• •‡ŽˆǦ†‹•…‹’Ž‹‡ǡ ’‡”•‡˜‡”ƒ…‡ ƒ† •–”‘‰ Ž‡ƒ†‡”•Š‹’ •‹ŽŽ•ǡdz ŠƒŽ‹Ž •ƒ›•ǡ ƒ††‹‰ Dz  Šƒ† my   eyes   set   on   the   top   job   and   each   career   move   provided   me   with   a   solid   foundation  


DIFFERENT DIMENSIONS

The power of professional education drives progress and development. It is not a luxury but rather a necessity if the Middle East and North Africa (MENA) region wishes to play a leading role in the global economy. Â&#x2018;Â&#x2030;Â&#x2039;Â&#x2022;Â&#x2013;Â&#x2039;Â&#x2026;Â&#x2022;ÇĄ Â&#x192;Â&#x2026;Â&#x2039;Â&#x17D;Â&#x2039;Â&#x2013;Â&#x203A; Â&#x192;Â?Â&#x192;Â&#x2030;Â&#x2021;Â?Â&#x2021;Â?Â&#x2013;ÇĄ Â&#x192;Â&#x201D;Â?Â&#x2021;Â&#x2013;Â&#x2039;Â?Â&#x2030; Â&#x192;Â?Â&#x2020; Human  Resources.   Â&#x2039;Â&#x201D;Â&#x2022;Â&#x2013;Â&#x2021;Â&#x2022;Â&#x2013;Â&#x192;Â&#x201E;Â&#x17D;Â&#x2039;Â&#x2022;Â&#x160;Â&#x2021;Â&#x2020;Â&#x2039;Â?Â&#x2021;Â&#x2039;Â&#x201D;Â&#x2014;Â&#x2013;Â&#x2039;Â?ͳ͝͝͡ǥÂ&#x2013;Â&#x160;Â&#x2021;Ď?Â&#x2039;Â&#x201D;Â?Â&#x2039;Â&#x2022;Â?Â&#x2018;Â&#x2122; present   across   34   locations   and   helps   thousands   of   candidates   each   year   to   succeed.   Morgan  

Â?Â&#x2013;Â&#x2021;Â&#x201D;Â?Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â?Â&#x192;Â&#x17D;Â&#x2018;Â&#x2C6;Â&#x2C6;Â&#x2021;Â&#x201D;Â&#x2022;Â&#x2122;Â&#x2018;Â&#x201D;Â?Â&#x2022;Â&#x160;Â&#x2018;Â&#x2019;Â&#x2022;ÇĄÂ&#x2039;Â?ÇŚÂ&#x160;Â&#x2018;Â&#x2014;Â&#x2022;Â&#x2021;Â&#x2013;Â&#x201D;Â&#x192;Â&#x2039;Â?Â&#x2039;Â?Â&#x2030; Â&#x192;Â?Â&#x2020;Â&#x2C6;Â&#x2014;Â&#x17D;Â&#x17D;Â&#x2019;Â&#x201D;Â&#x2018;Â&#x2030;Â&#x201D;Â&#x192;Â?Â?Â&#x2021;Â&#x2022;Â&#x2C6;Â&#x2018;Â&#x201D;Â&#x2020;Â&#x2021;Â&#x2022;Â&#x2039;Â&#x2030;Â?Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â?Â&#x2022;ÇŁÇĄÇĄ  ÇĄ ÇĄ  ÇĄ ÇĄ  Č&#x20AC; ÇĄ ÇĄ Â&#x2039;Â&#x2019; ÇĄ ÇĄ Â&#x192;Â?Â&#x2020;Â&#x201D;Â&#x2018;Â&#x2C6;Â&#x2021;Â&#x2022;Â&#x2022;Â&#x2039;Â&#x2018;Â?Â&#x192;Â&#x17D;Â&#x2039;Â&#x2019;Â&#x17D;Â&#x2018;Â?Â&#x192;Â&#x2039;Â?Â&#x192;Â&#x201D;Â?Â&#x2021;Â&#x2013;Â&#x2039;Â?Â&#x2030;Ǥ

Â?Â&#x2C6;Â&#x192;Â&#x2026;Â&#x2013;ÇĄÂ&#x160;Â&#x192;Â&#x17D;Â&#x2039;Â&#x17D;Â&#x2039;Â&#x2022;Â&#x192;Â&#x2018;Â&#x201D;Â&#x2030;Â&#x192;Â?Â&#x17D;Â&#x2014;Â?Â?Â&#x2039;Â&#x192;Â?Â&#x2020;Â&#x2022;Â&#x2013;Â&#x2014;Â&#x2020;Â&#x2039;Â&#x2021;Â&#x2020;Â&#x2C6;Â&#x2018;Â&#x201D; his  CPA  using  t he  Becker  CPA  Review  at  Morgan.

"Teaching at Morgan International has been an extremely rewarding experience, it allowed me to share my knowledge with other aspiring professionals across the region, and provided the opportunity to keep abreast with the latest trends in the accounting BOEmOBODFmFMEĂ˝

Â&#x192;Â?Â&#x2020; Â&#x201D;Â&#x2021;Â&#x201C;Â&#x2014;Â&#x2039;Â&#x201D;Â&#x2021;Â&#x2020; Â&#x2022;Â?Â&#x2039;Â&#x17D;Â&#x17D;Â&#x2022; Â&#x2013;Â&#x2018; Â&#x2014;Â?Â&#x2020;Â&#x2021;Â&#x201D;Â&#x2022;Â&#x2013;Â&#x192;Â?Â&#x2020; Â&#x192;Â?Â&#x2020; Â&#x2020;Â&#x201D;Â&#x2039;Â&#x2DC;Â&#x2021; Â&#x2013;Â&#x160;Â&#x2021;Â&#x201E;Â&#x2014;Â&#x2022;Â&#x2039;Â?Â&#x2021;Â&#x2022;Â&#x2022;Â&#x2C6;Â&#x2018;Â&#x201D;Â&#x2122;Â&#x192;Â&#x201D;Â&#x2020;Ǥdz Â&#x160;Â&#x192;Â&#x17D;Â&#x2039;Â&#x17D;Â&#x160;Â&#x192;Â&#x2022;Â&#x192;Â&#x192;Â&#x2026;Â&#x160;Â&#x2021;Â&#x17D;Â&#x2018;Â&#x201D;Â&#x2018;Â&#x2C6;Â&#x2014;Â&#x2022;Â&#x2039;Â?Â&#x2021;Â&#x2022;Â&#x2022;Â&#x2020;Â?Â&#x2039;Â?Â&#x2039;Â&#x2022;Â&#x2013;Â&#x201D;Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â?ÇĄ Â&#x2039;Â&#x2022;Â&#x192;Â&#x2021;Â&#x201D;Â&#x2013;Â&#x2039;Ď?Â&#x2039;Â&#x2021;Â&#x2020;Â&#x2014;Â&#x201E;Â&#x17D;Â&#x2039;Â&#x2026;Â&#x2026;Â&#x2026;Â&#x2018;Â&#x2014;Â?Â&#x2013;Â&#x192;Â?Â&#x2013;Č&#x2039;Č&#x152;Â&#x192;Â?Â&#x2020;Â&#x160;Â&#x192;Â&#x2022;Â&#x192;Â? MBA.  This   helped   the   33-­â&#x20AC;?year   old   executive   to   begin  his  journey  in  accountancy  and  ensured  he   stayed  abreast  w ith  new  developments  and  t rends   over  the  years.   He  says  the  positive  impact  and  priceless  value  his   education  gave  him  is  what  garnered  his  interest   in  Morgan  International.    Â&#x2019;Â&#x201D;Â&#x2018;Â&#x2C6;Â&#x2021;Â&#x2022;Â&#x2022;Â&#x2039;Â&#x2018;Â?Â&#x192;Â&#x17D; Â&#x2013;Â&#x201D;Â&#x192;Â&#x2039;Â?Â&#x2039;Â?Â&#x2030; Â&#x2019;Â&#x201D;Â&#x2018;Â&#x2DC;Â&#x2039;Â&#x2020;Â&#x2021;Â&#x201D;ÇĄ Â&#x2018;Â&#x201D;Â&#x2030;Â&#x192;Â? International   represents   leading   international   institutions   offering   a   w ide   range   of   programmes   Â&#x2C6;Â&#x2018;Â&#x201D;Â&#x2020;Â&#x2021;Â&#x2022;Â&#x2039;Â&#x2030;Â?Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â?Â&#x2022;Â&#x2039;Â?Â&#x2026;Â&#x2026;Â&#x2018;Â&#x2014;Â?Â&#x2013;Â&#x2039;Â?Â&#x2030;ÇĄÂ&#x2014;Â&#x2020;Â&#x2039;Â&#x2013;Â&#x2039;Â?Â&#x2030;ÇĄ Â&#x2039;Â?Â&#x192;Â?Â&#x2026;Â&#x2021;ÇĄ

2UV^SLKNLPZWV^LY The  power   of   professional   education   drives   progress   and   development.   It   is   not   a   luxury   but   Â&#x201D;Â&#x192;Â&#x2013;Â&#x160;Â&#x2021;Â&#x201D; Â&#x192; Â?Â&#x2021;Â&#x2026;Â&#x2021;Â&#x2022;Â&#x2022;Â&#x2039;Â&#x2013;Â&#x203A;ÇĄ Â&#x2039;Â&#x2C6; Â&#x2013;Â&#x160;Â&#x2021; Â&#x2039;Â&#x2020;Â&#x2020;Â&#x17D;Â&#x2021; Â&#x192;Â&#x2022;Â&#x2013; Â&#x192;Â?Â&#x2020; Â&#x2018;Â&#x201D;Â&#x2013;Â&#x160; Â&#x2C6;Â&#x201D;Â&#x2039;Â&#x2026;Â&#x192;Č&#x2039;Â&#x2021;Â?Â&#x192;Č&#x152;Â&#x201D;Â&#x2021;Â&#x2030;Â&#x2039;Â&#x2018;Â?Â&#x2122;Â&#x2039;Â&#x2022;Â&#x160;Â&#x2021;Â&#x2022;Â&#x2013;Â&#x2018;Â&#x2019;Â&#x17D;Â&#x192;Â&#x203A;Â&#x192;Â&#x17D;Â&#x2021;Â&#x192;Â&#x2020;Â&#x2039;Â?Â&#x2030;Â&#x201D;Â&#x2018;Â&#x17D;Â&#x2021; in  the  global  economy.   And   this   is   why   Khalil   has   always   been   keen   to   Â&#x2022;Â&#x160;Â&#x192;Â&#x201D;Â&#x2021; Â&#x160;Â&#x2039;Â&#x2022; Â?Â?Â&#x2018;Â&#x2122;Â&#x17D;Â&#x2021;Â&#x2020;Â&#x2030;Â&#x2021; Â&#x2122;Â&#x2039;Â&#x2013;Â&#x160; Â&#x2018;Â&#x2013;Â&#x160;Â&#x2021;Â&#x201D;Â&#x2022;ÇĄ Â&#x17D;Â&#x2018;Â?Â&#x2030; Â&#x201E;Â&#x2021;Â&#x2C6;Â&#x2018;Â&#x201D;Â&#x2021; Â&#x160;Â&#x2021; Â&#x201E;Â&#x2021;Â&#x2026;Â&#x192;Â?Â&#x2021;Â&#x2018;Â&#x201D;Â&#x2030;Â&#x192;Â? Â?Â&#x2013;Â&#x2021;Â&#x201D;Â?Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â?Â&#x192;Â&#x17D;ĚľÂ&#x2022;Ǥ Â?Â&#x2013;Â&#x160;Â&#x2021;Â&#x2019;Â&#x192;Â&#x2022;Â&#x2013;ÇĄÂ&#x160;Â&#x2021; organised  and  presented  specialised  t raining  and   Â&#x2026;Â&#x2018;Â&#x2014;Â&#x201D;Â&#x2022;Â&#x2021;Â&#x2022; Â&#x2018;Â? ÇĄ  Â&#x192;Â?Â&#x2020; Â&#x2018;Â&#x2013;Â&#x160;Â&#x2021;Â&#x201D; Â&#x2019;Â&#x2021;Â&#x201D;Â&#x2013;Â&#x2039;Â?Â&#x2021;Â?Â&#x2013; Â&#x2013;Â&#x2018;Â&#x2019;Â&#x2039;Â&#x2026;Â&#x2022; Â&#x2122;Â&#x2039;Â&#x2013;Â&#x160;Â&#x2039;Â? Â&#x2013;Â&#x160;Â&#x2021; Ď?Â&#x2039;Â&#x2021;Â&#x17D;Â&#x2020;ÇĄ Â&#x192;Â&#x2013;Â&#x2013;Â&#x201D;Â&#x192;Â&#x2026;Â&#x2013;Â&#x2039;Â?Â&#x2030; Â&#x2013;Â&#x160;Â&#x2021; Â&#x2039;Â?Â&#x2013;Â&#x2021;Â&#x201D;Â&#x2021;Â&#x2022;Â&#x2013; Â&#x2018;Â&#x2C6; Â?Â&#x192;Â&#x152;Â&#x2018;Â&#x201D; Â&#x201D;Â&#x2021;Â&#x2030;Â&#x2039;Â&#x2018;Â?Â&#x192;Â&#x17D; Â&#x192;Â?Â&#x2020; Â&#x2039;Â?Â&#x2013;Â&#x2021;Â&#x201D;Â?Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â?Â&#x192;Â&#x17D; Ď?Â&#x2039;Â&#x201D;Â?Â&#x2022; Â&#x192;Â&#x2026;Â&#x201D;Â&#x2018;Â&#x2022;Â&#x2022; Â&#x2DC;Â&#x192;Â&#x201D;Â&#x203A;Â&#x2039;Â?Â&#x2030; industries.  He  was  nominated  the  best  instructor   Â&#x192;Â&#x2013;Â&#x2018;Â&#x201D;Â&#x2030;Â&#x192;Â? Â?Â&#x2013;Â&#x2021;Â&#x201D;Â?Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â?Â&#x192;Â&#x17D;Â&#x2C6;Â&#x2018;Â&#x201D;Â&#x2013;Â&#x2021;Â&#x192;Â&#x2026;Â&#x160;Â&#x2039;Â?Â&#x2030;Ǣ  Â&#x17D;Â&#x2021;Â&#x2DC;Â&#x2021;Â&#x17D;Â&#x2022;ÍłÂ&#x192;Â?Â&#x2020;ʹǢ ǢÂ&#x2039;Â&#x2019;Â&#x17D;Â&#x2018;Â?Â&#x192;Â&#x2039;Â? Â&#x192;Â?Â&#x2020;Ǥ â&#x20AC;&#x153;Teaching   at   Morgan   has   been   an   extremely   Â&#x201D;Â&#x2021;Â&#x2122;Â&#x192;Â&#x201D;Â&#x2020;Â&#x2039;Â?Â&#x2030;Â&#x2021;Â&#x161;Â&#x2019;Â&#x2021;Â&#x201D;Â&#x2039;Â&#x2021;Â?Â&#x2026;Â&#x2021;ÇĄÂ&#x2039;Â&#x2013;Â&#x192;Â&#x17D;Â&#x17D;Â&#x2018;Â&#x2122;Â&#x2021;Â&#x2020;Â?Â&#x2021;Â&#x2013;Â&#x2018;Â&#x2022;Â&#x160;Â&#x192;Â&#x201D;Â&#x2021;Â?Â&#x203A; knowledge  with  aspiring  professionals  across  the   Â&#x201D;Â&#x2021;Â&#x2030;Â&#x2039;Â&#x2018;Â?ÇĄ Â&#x2030;Â&#x2039;Â&#x2DC;Â&#x2021;Â? Â?Â&#x2021; Â&#x2013;Â&#x160;Â&#x2021; Â&#x2018;Â&#x2019;Â&#x2019;Â&#x2018;Â&#x201D;Â&#x2013;Â&#x2014;Â?Â&#x2039;Â&#x2013;Â&#x203A; Â&#x2013;Â&#x2018; Â&#x2021;Â&#x161;Â&#x2019;Â&#x192;Â?Â&#x2020; Â?Â&#x203A; network   base   and   kept   me   abreast   of   the   latest   Â&#x2013;Â&#x201D;Â&#x2021;Â?Â&#x2020;Â&#x2022;Â&#x2039;Â?Â&#x2013;Â&#x160;Â&#x2021;Â&#x192;Â&#x2026;Â&#x2026;Â&#x2018;Â&#x2014;Â?Â&#x2013;Â&#x2039;Â?Â&#x2030;Â&#x192;Â?Â&#x2020;Ď?Â&#x2039;Â?Â&#x192;Â?Â&#x2026;Â&#x2021;Ď?Â&#x2039;Â&#x2021;Â&#x17D;Â&#x2020;ÇĄĚśÂ&#x160;Â&#x2021;Â&#x2022;Â&#x192;Â&#x203A;Â&#x2022;Ǥ ;OLYVSLVMWYVMLZZPVUHSL_WVZ\YL Khalil   acknowledges   that   his   passion   for   education  and  ability  to  make  an  impact  would  be   incomplete  w ithout  real-­â&#x20AC;?life  work  experience  and   exposure   to   the   challenges   in   the   marketplace.   His   12   year   career   has   been   eventful   and   has   Â&#x2022;Â&#x2021;Â&#x2021;Â? Â&#x160;Â&#x2039;Â? Â&#x2030;Â&#x192;Â&#x2039;Â? Â&#x2039;Â?Â&#x2DC;Â&#x192;Â&#x17D;Â&#x2014;Â&#x192;Â&#x201E;Â&#x17D;Â&#x2021; Â&#x192;Â&#x2014;Â&#x2020;Â&#x2039;Â&#x2013;ÇĄ Â&#x192;Â&#x2020;Â&#x2DC;Â&#x2039;Â&#x2022;Â&#x2018;Â&#x201D;Â&#x203A; Â&#x192;Â?Â&#x2020; 65


DIFFERENT DIMENSIONS

Khalil  was  responsible  for  over  100  employees  at   Â&#x2013;Â&#x160;Â&#x2021; Â&#x2019;Â&#x201D;Â&#x2018;Â&#x2026;Â&#x2014;Â&#x201D;Â&#x2021;Â?Â&#x2021;Â?Â&#x2013;ÇĄ Â&#x17D;Â&#x2018;Â&#x2030;Â&#x2039;Â&#x2022;Â&#x2013;Â&#x2039;Â&#x2026;Â&#x2022;ÇĄ Â&#x2013;Â&#x201D;Â&#x2021;Â&#x192;Â&#x2022;Â&#x2014;Â&#x201D;Â&#x203A;ÇĄ Â&#x2026;Â&#x2018;Â&#x201D;Â&#x2019;Â&#x2018;Â&#x201D;Â&#x192;Â&#x2013;Â&#x2021; Ď?Â&#x2039;Â?Â&#x192;Â?Â&#x2026;Â&#x2021;ÇĄ Â&#x2039;Â?Â&#x2DC;Â&#x2021;Â&#x2022;Â&#x2013;Â&#x2018;Â&#x201D; Â&#x201D;Â&#x2021;Â&#x17D;Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â?Â&#x2022;ÇĄ Ď?Â&#x2039;Â?Â&#x192;Â?Â&#x2026;Â&#x2039;Â&#x192;Â&#x17D; Â&#x2019;Â&#x17D;Â&#x192;Â?Â?Â&#x2039;Â?Â&#x2030;ÇĄ Â&#x201E;Â&#x2014;Â&#x2020;Â&#x2030;Â&#x2021;Â&#x2013;Â&#x2039;Â?Â&#x2030;Â&#x192;Â?Â&#x2020;Â&#x201D;Â&#x2021;Â&#x2019;Â&#x2018;Â&#x201D;Â&#x2013;Â&#x2039;Â?Â&#x2030;ÇĄÂ&#x192;Â&#x2026;Â&#x2026;Â&#x2018;Â&#x2014;Â?Â&#x2013;Â&#x2039;Â?Â&#x2030;Â&#x192;Â?Â&#x2020;Â&#x2013;Â&#x192;Â&#x161;Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â? and   management   accounting   departments.   His   active  role  as  CFO  meant  he  was  highly  involved  in   strategic  decision-­â&#x20AC;?making  and  this  prepped  him  to   seamlessly  t ransition  to  CEO.   7PVULLY^P[OH]PZPVU Â?Â&#x2021; Â&#x2018;Â&#x2C6; Â&#x160;Â&#x2039;Â&#x2022; Â&#x2026;Â&#x192;Â&#x201D;Â&#x2021;Â&#x2021;Â&#x201D; Â&#x160;Â&#x2039;Â&#x2030;Â&#x160;Â&#x17D;Â&#x2039;Â&#x2030;Â&#x160;Â&#x2013;Â&#x2022; Â&#x2026;Â&#x192;Â?Â&#x2021; Â&#x2039;Â? ʹͲͳʹǥ Â&#x2122;Â&#x160;Â&#x2039;Â&#x17D;Â&#x2021; Â&#x160;Â&#x2021; Â&#x2122;Â&#x192;Â&#x2022; Â&#x2022;Â&#x2013;Â&#x2039;Â&#x17D;Â&#x17D; Â&#x192;  Ǥ Â&#x160;Â&#x192;Â&#x17D;Â&#x2039;Â&#x17D; Â&#x17D;Â&#x2021;Â&#x2020; Â&#x2013;Â&#x160;Â&#x2021; Â&#x2022;Â&#x2014;Â&#x2019;Â&#x2021;Â&#x201D;Â&#x2DC;Â&#x2039;Â&#x2022;Â&#x2039;Â&#x2018;Â?ÇĄ structuring  and  execution  of  the  R ights  Issuance  of   Â&#x192;Â&#x2039;Â?Â&#x192;Â&#x2014;Â&#x2020;Â&#x2039;Â&#x201D;Â&#x192;Â&#x201E;Â&#x2039;Â&#x192;Â&#x192;Â?Â&#x2018;Â&#x2014;Â?Â&#x2013;Â&#x2039;Â?Â&#x2030;Â&#x2013;Â&#x2018;Í&#x201E;ͳǤ͸Â&#x201E;Â&#x2039;Â&#x17D;Â&#x17D;Â&#x2039;Â&#x2018;Â?ǤÂ&#x160;Â&#x2039;Â&#x2022; transaction   represented   the   largest   investment   banking   transaction   in   the   GCC   region.   He   was   also   behind   an   international   debt   arrangement   Â&#x192;Â?Â&#x2018;Â&#x2014;Â?Â&#x2013;Â&#x2039;Â?Â&#x2030;Â&#x2013;Â&#x2018;Í&#x201E;;ʹ͡Â?Â&#x2039;Â&#x17D;Â&#x17D;Â&#x2039;Â&#x2018;Â?Ǥ

UPWARD MOBILITY: Along with technical knowledge, the transition from auditing to CFO to CEO requires selfdiscipline, perseverance BOETUSPOHMFBEFSTIJQTLJMMT

investment  experience   at   reputable   regional   and   Â&#x2039;Â?Â&#x2013;Â&#x2021;Â&#x201D;Â?Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â?Â&#x192;Â&#x17D;Ď?Â&#x2039;Â&#x201D;Â?Â&#x2022;Ǥ He  says  that  each  milestone  in  his  career  enriched   his   understanding   of   t he   industry   and   helped   him   identify   knowledge   gaps   and   the   skills   needed   to   address  new  developments.   â&#x20AC;&#x153;Last   year   particularly   provided   me   with   unparalleled  exposure  that  helped  me  accomplish   Â&#x192; Â&#x17D;Â&#x2018;Â&#x2013; Â&#x192;Â&#x2022; Â&#x2013;Â&#x160;Â&#x2021; Â&#x160;Â&#x2039;Â&#x2021;Â&#x2C6; Â&#x2039;Â?Â&#x192;Â?Â&#x2026;Â&#x2039;Â&#x192;Â&#x17D; Â&#x2C6;Ď?Â&#x2039;Â&#x2026;Â&#x2021;Â&#x201D; Â&#x2C6;Â&#x2018;Â&#x201D; Â&#x192;Â&#x2039;Â?ÇĄ Â&#x192;Â&#x2014;Â&#x2020;Â&#x2039; Â&#x201D;Â&#x192;Â&#x201E;Â&#x2039;Â&#x192; Č&#x2039;Â&#x192; Â&#x17D;Â&#x2039;Â&#x2022;Â&#x2013;Â&#x2021;Â&#x2020; Â&#x2013;Â&#x2021;Â&#x17D;Â&#x2021;Â&#x2026;Â&#x2018;Â? Â&#x2026;Â&#x2018;Â?Â&#x2019;Â&#x192;Â?Â&#x203A;Č&#x152; Â&#x192;Â?Â&#x2020; the   Chairman-­â&#x20AC;?General   Manager   of   Centre   for   Â&#x2018;Â&#x201D;Â&#x2019;Â&#x2018;Â&#x201D;Â&#x192;Â&#x2013;Â&#x2021; Â&#x2021;Â&#x201D;Â&#x2DC;Â&#x2039;Â&#x2026;Â&#x2021;Â&#x2022; Č&#x2039;Â&#x192; Â&#x2022;Â&#x2014;Â&#x201E;Â&#x2022;Â&#x2039;Â&#x2020;Â&#x2039;Â&#x192;Â&#x201D;Â&#x203A; Â&#x2018;Â&#x2C6; Â&#x2018;Â&#x201D;Â&#x2030;Â&#x192;Â?

Â?Â&#x2013;Â&#x2021;Â&#x201D;Â?Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â?Â&#x192;Â&#x17D;Č&#x152;ÇĄÇłÂ&#x160;Â&#x2021;Â&#x2022;Â&#x192;Â&#x203A;Â&#x2022;Â&#x2019;Â&#x201D;Â&#x2018;Â&#x2014;Â&#x2020;Â&#x17D;Â&#x203A;Ǥ Â&#x2021;Â&#x2C6;Â&#x2018;Â&#x201D;Â&#x2021; Â&#x201E;Â&#x2021;Â&#x2026;Â&#x2018;Â?Â&#x2039;Â?Â&#x2030; Â&#x2018;Â&#x201D;Â&#x2030;Â&#x192;Â? Â?Â&#x2013;Â&#x2021;Â&#x201D;Â?Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â?Â&#x192;Â&#x17D;ĚľÂ&#x2022; ÇĄ

â&#x20AC;&#x153;Historically, CFOs were more financially driven, where as nowadays they have become more involved in strategic decision making and operational activities in the companies.â&#x20AC;?

66 January 2013

Khalil  was  a  pioneer  with  vision  long  before  he  joined   Â&#x192;Â&#x2039;Â?Â&#x192;Â&#x2022;Â&#x2026;Â&#x192;Â?Â&#x201E;Â&#x2021;Â&#x2022;Â&#x2021;Â&#x2021;Â?Â&#x2039;Â?Â&#x160;Â&#x2039;Â&#x2022;Â&#x2021;Â&#x2022;Â&#x2013;Â&#x192;Â&#x201E;Â&#x17D;Â&#x2039;Â&#x2022;Â&#x160;Â&#x2039;Â?Â&#x2030;Â&#x192;Â&#x2022;Â&#x2014;Â&#x201E;Â&#x2022;Â&#x2039;Â&#x2020;Â&#x2039;Â&#x192;Â&#x201D;Â&#x203A;Â&#x2018;Â&#x2C6; Â&#x2018;Â&#x201D;Â&#x2030;Â&#x192;Â? Â?Â&#x2013;Â&#x2021;Â&#x201D;Â?Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â?Â&#x192;Â&#x17D;ÇĄÂ&#x2021;Â?Â&#x2013;Â&#x201D;Â&#x2021;Â&#x2C6;Â&#x2018;Â&#x201D;Â&#x2018;Â&#x201D;Â&#x2019;Â&#x2018;Â&#x201D;Â&#x192;Â&#x2013;Â&#x2021;Â&#x2021;Â&#x201D;Â&#x2DC;Â&#x2039;Â&#x2026;Â&#x2021;Â&#x2022; Č&#x2039;Č&#x152;ÇĄÂ&#x2122;Â&#x160;Â&#x2039;Â&#x17D;Â&#x2021;Â&#x192;Â&#x2026;Â&#x2013;Â&#x2039;Â?Â&#x2030;Â&#x192;Â&#x2022;Â&#x2013;Â&#x160;Â&#x2021; Â&#x2021;Â&#x192;Â&#x2020;Â&#x2018;Â&#x2C6;Â&#x2018;Â&#x201D;Â&#x2019;Â&#x2018;Â&#x201D;Â&#x192;Â&#x2013;Â&#x2021; Â&#x2039;Â?Â&#x192;Â?Â&#x2026;Â&#x2021; Â&#x192;Â&#x2013;Â&#x2039;Â&#x2020;Â&#x2020;Â&#x17D;Â&#x2021;Â&#x192;Â&#x2022;Â&#x2013;Â&#x192;Â&#x2019;Â&#x2039;Â&#x2013;Â&#x192;Â&#x17D; Â&#x201D;Â&#x2018;Â&#x2014;Â&#x2019;Č&#x2039; Č&#x152;ÇĄÂ&#x192;Â&#x2022;Â&#x2014;Â&#x201E;Â&#x2022;Â&#x2039;Â&#x2020;Â&#x2039;Â&#x192;Â&#x201D;Â&#x203A;Â&#x2018;Â&#x2C6; Â&#x2013;Â&#x160;Â&#x2021; Â&#x2039;Â&#x201D;Â&#x2022;Â&#x2013;Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â?Â&#x192;Â&#x17D;Â&#x192;Â?Â?ǤǤǤ His  journey  is  a  testimony  of  how  accounting  and   auditing   can   be   a   springboard   for   a   rewarding  


DIFFERENT DIMENSIONS

career. He   began   his   career   at   one   of   the   ‘Big   4’   ƒ—†‹–‹‰ ϐ‹”• ƒ• ƒ ••‹•–ƒ– —†‹–‘” ƒ† Žƒ–‡” as  an  Experienced  Manager  in  the  Assurance  and   Business  Advisory  division.   —”‹‰ –Š‹• –‹‡ǡ Š‡ ™‘”‡† ‘ ƒ†˜‹•‘”› ƒ† audit   projects   in   nine   countries   from   his   base   ‘ˆϐ‹…‡ ™Š‹Ž‡ †‡ƒŽ‹‰ ™‹–Š ƒ—†‹– ƒ••‹‰‡–•ǡ †‹•’—–‡ ƒƒŽ›•‹• ‡‰ƒ‰‡‡–• ƒ† ϐ‹ƒ…‹ƒŽ †—‡ diligence  mandates.   —”‹‰Š‹•–‹‡ƒ––Š‡Ǯ‹‰Ͷǯϐ‹”ǡŠ‡™ƒ•’”‘‘–‡† –‘ ƒƒ‰‡” ‹ ‘Ž› ‘‡ ›‡ƒ” ȋŠƒŽˆ –Š‡ –‹‡ ‹– —•—ƒŽŽ› –ƒ‡•Ȍ ƒ† ™ƒ• ƒˆ–‡”™ƒ”†• ‘‹ƒ–‡† as   audit   methodology   champion.   Recognised   for   –Š‹• –ƒŽ‡–ǡ ŠƒŽ‹Ž ™ƒ• –Š‡ Š‹”‡† „› ŽǦŠƒ„‡‡” ƒ’‹–ƒŽǡ ƒ ”‡‰‹‘ƒŽ ‹˜‡•–‡– „ƒ ™‹–Š ‘˜‡” ̈́ʹͲͲ‹ŽŽ‹‘‘ˆ…ƒ’‹–ƒŽƒ†‘ˆϐ‹…‡•ƒ…”‘•• ‡††ƒŠǡ Riyadh   and   Bahrain.   He   became   Vice   President   of   Investment  Banking  in  only  six  months.   ;OL[YHUZP[PVUMYVT*-6[V*,6 He  says  all  this  experience  laid  t he  foundations  to   successfully  take  on  the  responsibilities  of  a  CFO   and  rise  to  the  expectations  of  a  CEO.   Dz ‹•–‘”‹…ƒŽŽ›  • ™‡”‡ ‘”‡ ϐ‹ƒ…‹ƒŽŽ› †”‹˜‡ǡ while  nowadays  they   have  become   more  involved  

in strategic   decision   making   and   operational   ƒ…–‹˜‹–‹‡•ǡ ™Š‹…Š ‹† ‘ˆ ’”‡’ƒ”‡• ‘‡ –‘ ™‡ƒ” –Š‡ǯ•Šƒ–Ǥ ƒƒϐ‹”„‡Ž‹‡˜‡”–Šƒ–‹‘”†‡”–‘ •—……‡‡†ƒ•ƒǡ‹–‹•‹’‡”ƒ–‹˜‡–Šƒ–‘‡ƒ…“—‹”‡• ƒ†‡‡’…‘’”‡Š‡•‹‘‘ˆƒ……‘—–‹‰ƒ†ϐ‹ƒ…‹ƒŽ concepts   and   this   is   something   that   will   allow   a   person  to  persevere  and  make  strategic  decisions   ƒ„‘—––Š‡†‹”‡…–‹‘‘ˆ–Š‡…‘’ƒ›ǡdzŠ‡•ƒ›•Ǥ ‘™ ƒ• –Š‡  ‘ˆ ‘”‰ƒ –‡”ƒ–‹‘ƒŽ ŠƒŽ‹Ž •ƒ›• Š‡ Šƒ• ƒ ˜‹•‹‘ ˆ‘” –Š‡ ϐ‹ƒ…‡ ƒ† accounting   industry…   and   plans   to   use   his   new   position   to   promote   the   profession.   This   vision   ‹˜‘Ž˜‡•ƒ––”ƒ…–‹‰–ƒŽ‡––‘–Š‡ϐ‹‡Ž†ǡ’”‘‘–‹‰ ‡š…‡ŽŽ‡…‡ǡ ϐ‹ŽŽ‹‰ –Š‡ Ǯ’”‡••‹‰   ‘™Ž‡†‰‡ gap’   and   helping   the   Mena   region   move   towards   reporting   standards   best   suited   to   this   era   of   globalised  business.   ;HRPUNHJJV\U[VMHIL[[LYM\[\YL ……‘”†‹‰ –‘ –Š‡ ‡š‡…—–‹˜‡ǡ Dzƒ”‡–• ‹ –Š‡ ‡ƒȀ  ”‡‰‹‘ ƒ”‡ „‡…‘‹‰ ‹…”‡ƒ•‹‰Ž› …‘’Ž‡šǡ ‘”‡ …‘’‡–‹–‹˜‡Ǣ ‘”‡ ˆ‘…—•‡† ‘ …‘”’‘”ƒ–‡ ‰‘˜‡”ƒ…‡ ”‡‰—Žƒ–‹‘•ǡ ƒ”‡ •Š‹ˆ–‹‰–‘ ƒ†’Žƒ…‹‰ƒŠ—‰‡‡’Šƒ•‹•‘ nationalisation.     Therefore   local   talents   need   to   enhance   their   skills   through   professional   …‡”–‹ϐ‹…ƒ–‹‘ –‘ ‡‡– –Š‡•‡ †‡ƒ†• ƒ• –Š‡› have   an   important   role   to   play   in   this   rapidly   ‰”‘™‹‰‡…‘‘›ǡdzŠ‡•ƒ›•Ǥ Dz‘”‰ƒ –‡”ƒ–‹‘ƒŽ Šƒ• –Š‡ ’”‘‰”ƒ‡•ǡ ‡–™‘”ǡ Ž‘‰Ǧ•–ƒ†‹‰ ‡š’‡”‹‡…‡ǡ ƒ’’”‘ƒ…Š –‘ –”ƒ‹‹‰ǡ‡š’‡”–‹•–”—…–‘”•ƒ†ˆ‘”—Žƒ–‘ƒ‡ this   happen.   The   institution   provides   students   with  a  greater  learning  experience  and  empowers   –Š‡ ™‹–Š –Š‡ ‡›• –‘ •—……‡••Ǥdz ‘”‰ƒ̵• ƒ……‘—–‹‰ǡƒ—†‹–‹‰ƒ†ϐ‹ƒ…‡’‘”–ˆ‘Ž‹‘‹…Ž—†‡• ǡ ǡ  ǡ ǡ   ƒ†  ™‘”•Š‘’• ƒ†…‡”–‹ϐ‹…ƒ–‹‘’”‘‰”ƒ‡•Ǥ Khalil   says   he   is   excited   to   lead   Morgan   into   a   new   phase   by   enhancing   the   educational   ’Žƒ–ˆ‘”ǡŽ‡ƒ”‹‰‡š’‡”‹‡…‡ƒ††‡Ž‹˜‡”›‘ˆ–Š‡ ’”‘‰”ƒ‡•ǡ–Šƒ–™‹ŽŽ‹–—”„‡‡ϐ‹–‹†‹˜‹†—ƒŽ• as   well   as   employers   who   wish   to   train   their   •–ƒˆˆǡ‹‘”†‡”–‘ƒ••‹•––Š‡‹”…‘’ƒ›‹‰ƒ‹‹‰ƒ competitive  advantage.  

TOP AMBITIONS: I had my eyes set on the top job and each career move provided me with a solid foundation and required skills to understand and drive the business forward

Dz ƒ’”‘—†–‘„‡ƒ’ƒ”–‘ˆ‘”‰ƒ –‡”ƒ–‹‘ƒŽǡ a l eader  i n  t he  p rofessional  e ducation  f ield.  A s   –Š‡ǡ ˆ‘”‡•‡‡ƒ’Ž‡–Š‘”ƒ‘ˆ‘’’‘”–—‹–‹‡• ˆ‘”–Š‡‹•–‹–—–‹‘•—…Šƒ•‘”‰ƒ‹…‡š’ƒ•‹‘ǡ ƒ…“—‹•‹–‹‘•ǡ Ž‹•–‹‰ ƒ• ƒ ’—„Ž‹… …‘’ƒ›ǡ ƒ† penetrating   new   markets…   just   to   name   a   ˆ‡™ǡdzŠ‡ƒ††•Ǥ 67


STUDENT ACCOUNTANT

Anam Sami receives her recognition award from Stuart Dunlop, the Head of ACCA Middle East

KPMG STAR

ACES ACCA EXAM Anam Sami, an Associate 3 in KPMG Lower Gulf FS Department, recently scored the highest marks globally in her ACCA Corporate Law, Audit and Assurance paper. She talks to Accountant Middle East about her achievement and future ambitions. 68 January 2013


STUDENT ACCOUNTANT

T

ell us about yourself, ACCA studies and your recent achievements

me  manage   my   work   amidst   study   leaves   and   preparations  f or  e xams.

I  was   born   and   brought   up   in   Dubai   and   went  to  the  UK  to  pursue  my  Bachelors  in   Economics.  Upon  graduating,  I  returned  back  to  the   Â&#x2026;Â&#x2018;Â&#x2014;Â?Â&#x2013;Â&#x201D;Â&#x203A;Â&#x192;Â?Â&#x2020;Â&#x152;Â&#x2018;Â&#x2039;Â?Â&#x2021;Â&#x2020; Â&#x192;Â&#x2022;Â?Â&#x203A;Ď?Â&#x2039;Â&#x201D;Â&#x2022;Â&#x2013;Â&#x2122;Â&#x2018;Â&#x201D;Â?Â&#x2019;Â&#x17D;Â&#x192;Â&#x2026;Â&#x2021;Ǥ

Worth  mentioning   here   is   the   support   of   the   Human   Resource   department,   which   has   also   Â&#x2019;Â&#x17D;Â&#x192;Â&#x203A;Â&#x2021;Â&#x2020; Â&#x192; Â&#x2022;Â&#x2039;Â&#x2030;Â?Â&#x2039;Ď?Â&#x2039;Â&#x2026;Â&#x192;Â?Â&#x2013; Â&#x201D;Â&#x2018;Â&#x17D;Â&#x2021; Â&#x2039;Â? Â?Â&#x203A; Â&#x2022;Â&#x2014;Â&#x2026;Â&#x2026;Â&#x2021;Â&#x2022;Â&#x2022;Ǥ Â&#x2039;Â&#x2013;Â&#x160;Â&#x2018;Â&#x2014;Â&#x2013; their   guidance   it   would   have   been   nearly   impossible   to   cope   between   work   and   studies.   They  helped  me  in  the  smooth  processing  of  my   study   leave   applications,   registration   of   classes   and  much  more.

I  am  c urrently  pursuing  A ssociation  of  Chartered   Â&#x2021;Â&#x201D;Â&#x2013;Â&#x2039;Ď?Â&#x2039;Â&#x2021;Â&#x2020; Â&#x2026;Â&#x2026;Â&#x2018;Â&#x2014;Â?Â&#x2013;Â&#x192;Â?Â&#x2013;Â&#x2022; Č&#x2039;Č&#x152; Â&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;Ď?Â&#x2039;Â&#x2026;Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â?Ǥ I   have   cleared   nine   out   of   the   necessary   14   papers.   I   have   managed   to   score   the   highest   marks   globally   in   two   ACCA   examinations.   These  include  Corporate  Law  and  the  Audit  and   Assurance  paper.   The   facets   of   accounting   profession   are   broad,   including  auditing,  tax,  legislation,  management,   Â&#x201E;Â&#x192;Â?Â?Â&#x2039;Â?Â&#x2030;Â&#x192;Â?Â&#x2018;Â?Â&#x2030;Â&#x2018;Â&#x2013;Â&#x160;Â&#x2021;Â&#x201D;Â&#x2022;Ǥ Â&#x2022;Â&#x2013;Â&#x160;Â&#x2021;Â&#x201D;Â&#x2021;Â&#x2018;Â?Â&#x2021;Â&#x2022;Â&#x2019;Â&#x2021;Â&#x2026;Â&#x2039;Ď?Â&#x2039;Â&#x2026;Â&#x192;Â&#x201D;Â&#x2021;Â&#x192; which  is  of  most  interest  to  you?   Financial  Service  is  one  of  my  areas  of  interest   and   I   would   like   to   continue   my   association   with   KPMG.   KPMG   has   a   huge   client   base   and   provides   excellent   training   and   support   to   its   employees.   In   future,   I   aspire   to   specialise   in   Â&#x192;Â&#x2014;Â&#x2020;Â&#x2039;Â&#x2013;Â&#x2039;Â?Â&#x2030; Â&#x2039;Â?Â&#x2DC;Â&#x2021;Â&#x2022;Â&#x2013;Â?Â&#x2021;Â?Â&#x2013; Â&#x201E;Â&#x192;Â?Â?Â&#x2022; Â&#x2018;Â&#x201D; Â&#x2019;Â&#x201D;Â&#x2039;Â&#x2DC;Â&#x192;Â&#x2013;Â&#x2021; Â&#x2021;Â&#x201C;Â&#x2014;Â&#x2039;Â&#x2013;Â&#x203A; Ď?Â&#x2039;Â&#x201D;Â?Â&#x2022;ǤÂ&#x201E;Â&#x2018;Â&#x2DC;Â&#x2021;Â&#x192;Â&#x17D;Â&#x17D;Â?Â&#x203A;Â&#x192;Â&#x2039;Â?Â&#x2039;Â&#x2022;Â&#x2013;Â&#x2018;Â&#x2026;Â&#x2018;Â?Â&#x2019;Â&#x17D;Â&#x2021;Â&#x2013;Â&#x2021;Â&#x192;Â&#x17D;Â&#x17D;Â&#x2018;Â&#x2C6;Â?Â&#x203A; ACCA  papers  successfully.

Whatâ&#x20AC;&#x2122;s  the   best   advice   you   can   give   to   youngsters  wanting  a  c areer  in  accounting?   My  suggestion  for  a ll  t he  aspirants  would  be  t hat   in   order   to   succeed   one   should   try   and   develop   good   time   management   skills   and   organisation   skills.   Above   all   one   must   follow   a   good   study   plan  and  stay  focused. How   do   you   spend   your   free   time?   What   are   your  interests,  if  any?   In  my  spare  time  I  love  to  read.  My  favourite  authors   are  John  Grisham  and  Sydney  Sheldon.  Apart  from   Â&#x201D;Â&#x2021;Â&#x192;Â&#x2020;Â&#x2039;Â?Â&#x2030;ÇĄ Â&#x17D;Â&#x2039;Â?Â&#x2021;Â&#x2013;Â&#x2018;Â&#x2122;Â&#x192;Â&#x2013;Â&#x2026;Â&#x160;Â?Â&#x2018;Â&#x2DC;Â&#x2039;Â&#x2021;Â&#x2022;ÇĄČ&#x2039;Â&#x2021;Â&#x2022;Â&#x2019;Â&#x2021;Â&#x2026;Â&#x2039;Â&#x192;Â&#x17D;Â&#x17D;Â&#x203A;Â&#x2018;Â&#x17D;Â&#x2020;Â&#x2026;Â&#x17D;Â&#x192;Â&#x2022;Â&#x2022;Â&#x2039;Â&#x2026; Â&#x2018;Â?Â&#x2021;Â&#x2022;Č&#x152;ÇĄÂ&#x201E;Â&#x192;Â?Â&#x2021;Â&#x192;Â?Â&#x2020;Â&#x2022;Â&#x2019;Â&#x2021;Â?Â&#x2020;Â&#x2013;Â&#x2039;Â?Â&#x2021;Â&#x2122;Â&#x2039;Â&#x2013;Â&#x160;Â?Â&#x203A;Â&#x2C6;Â&#x201D;Â&#x2039;Â&#x2021;Â?Â&#x2020;Â&#x2022;Ǥ

What  drives  you? My   motivation   for   success   in   the   academic   life   is   based   on   my   unrelenting   curiosity   and   my   overwhelming   need   to   know   rather   than   to   merely  believe.  I  don't  study  for  g rades,  but  rather   to  satisfy  my  desire  to  k now  and  understand. Who  is  your  mentor/s? My   family   has   been  very  supportive  indeed  and   their   role   in   t he   entire   journey   t ill   date   has   been   substantial.  Together  w ith  my  family,  I  would  like   to  extend  my  heartfelt  t hanks  to  my  teachers  and   mentors  who  made  it  possible  for  me  to  excel  in   my  studies.   I   would   also   sincerely   like   to   thank   my   performance   manager   and   colleagues   for   their   continued  support  and  g uidance.   My  performance  manager  has  been  constantly   guiding   me   in   striking   the   right   balance   between   work   and   studies.   My   colleagues   have   been   very   supportive,   providing   me   with   relevant   on-­â&#x20AC;?the-­â&#x20AC;?job   training   and   helping  

()6<;(**( ACCA  supports  its  154,000  members  and   432,000  students  globally  t hroughout   their  careers,  providing  services  t hrough   Â&#x192;Â?Â&#x2021;Â&#x2013;Â&#x2122;Â&#x2018;Â&#x201D;Â?Â&#x2018;Â&#x2C6;ͺ;Â&#x2018;Â&#x2C6;Ď?Â&#x2039;Â&#x2026;Â&#x2021;Â&#x2022;Â&#x192;Â?Â&#x2020;Â&#x192;Â&#x2026;Â&#x2013;Â&#x2039;Â&#x2DC;Â&#x2021;Â&#x2026;Â&#x2021;Â?Â&#x2013;Â&#x201D;Â&#x2021;Â&#x2022;Ǥ Its  global  infrastructure  means  t hat  exams   and  support  are  delivered  at  a  local  level,   Â&#x2020;Â&#x2039;Â&#x201D;Â&#x2021;Â&#x2026;Â&#x2013;Â&#x17D;Â&#x203A;Â&#x201E;Â&#x2021;Â?Â&#x2021;Ď?Â&#x2039;Â&#x2013;Â&#x2039;Â?Â&#x2030;Â&#x2022;Â&#x2013;Â&#x192;Â?Â&#x2021;Â&#x160;Â&#x2018;Â&#x17D;Â&#x2020;Â&#x2021;Â&#x201D;Â&#x2022;Â&#x2122;Â&#x160;Â&#x2021;Â&#x201D;Â&#x2021;Â&#x2DC;Â&#x2021;Â&#x201D; they  are  based.

My motivation for success in the academic life is based on my unrelenting curiosity and my overwhelming need to know... rather than to merely believe.

69


TAX WATCH

UAE’S DOUBLE TAX TREATIES

Emirates enacts decrees for purposes of eliminating foreign levies on income from outbound activities

TAX TALK: The absence of taxation or enforcement in UAE raises questions on whether resident companies are entitled to access their tax treaty networks.

M

ANY MIDDLE Eastern countries are working on growing their networks of tax treaties to help domestic businesses expand internationally and to attract foreign investment to fuel their economic growth.

NILESH ASHAR PARTNER, KPMG - INTERNATIONAL AND M&A TAX ADVISORY

70 January 2013

Tax treaties  entered  across  the  region  contain   a   variety   of   distinct   features,   some   of   which   are   unique   to   the   region.   Foreign   companies   who   enter   these   markets   should   examine   the   specific   clauses   of   any   relevant   treaties   to   determine   where   and   how   they   should   structure  t heir  i nvestments  i n  t he  r egion.  

;H_YLZPKLUJ`JLY[PMPJH[LZ Treaty issues   involving   the   UAE   are   particularly   unique:   the   country   does   not   impose   corporate   income   tax   at   the   national   level.   However,   all   Emirates   within   the   UAE   have   enacted   corporate   taxes   through   their   own   decrees.   For   now,   these   decrees   are   only   enforced   for   foreign   oil   companies   with   exploration   rights   and   branches   of   foreign   banks.   In   most   cases,   the   UAE   treaties   are   most  important  for  eliminating  foreign  tax  on   income  f rom  o utbound  a ctivities. Given   the   limited   tax   regimes   and   lack   of   formal   tax   authorities   in   UAE,   determining  


TAX WATCH

whether an   entity   is   tax   resident   in   these   countries   and   thus   entitled   to   treaty   benefits   can   be   difficult.   In   order   to   verify   their   entitlement   to   tax   benefits   in   treaty   countries,   r esident   c ompanies   n eed   t o   o btain   tax   residence   certificates   from   the   UAE   finance   m inistry.

For businesses set up under one of UAE’s offshore investment holding company regimes, tax residency certificates are simply not available.

For businesses   set   up   under   one   of   UAE’s   offshore   investment   holding   company   regimes,  tax  residency  certificates  are  simply   not  a vailable.

taxation, treaty  access  should  be  denied  to  the   UAE  entities  s ince  no  double  t axation  c an  a rise.  

(JJLZZPUN[YLH[`ILULMP[Z The absence   of   taxation   or   enforcement   in   UAE   raises   questions   on   whether   resident   companies   are   entitled   to   access   their   tax   treaty   networks.   The   challenge   to   the   ability   to  a ccess  t hese  t ax  t reaties  i s  b ased  e ssentially   on  t hree  b road  a rguments:

However, there   is   a   strong   argument   that   the   treaties’   main   purpose   is   to   encourage   investment   and   so   the   lack   of   taxation   in   the   UAE   should   not   prevent   treaty   access.   Nevertheless,   the   practice   of   the   tax   authorities   in   the   relevant   countries   should   be  r egularly  m onitored.

‘Liable   to   tax’   criterion   in   treaty   residence   articles  

;YLH[`HI\ZL Access to   the   UAE   tax   treaties   can   also   be   denied  o n  t he  b asis  o f  t ax  t reaty  a buses,  due  t o   the  i nclusion  o f  ‘ limitation  o f  b enefits’  a rticles   in   some   treaties.   For   example,   the   UAE-­‐India   treaty   requires   a   UAE   legal   entity   to   have   a   ‘bona  f ide  b usiness  a ctivity’.  

 L ack  o f  d ouble  t axation      E xistence  o f  t ax  t reaty  a buse º3PHISL[V[H_»JYP[LYPVU Many   of   the   treaties   of   the   UAE   link   the   criteria   for   ‘residence’   with   the   entity   being   ‘liable   to   tax’   in   the   country.   Tax   authorities   in   s ome   c ountries,   s uch   a s   Turkey,   w ill   a ccept   the   residency   of   an   entity   that   is   subject   to   tax  by  law,  even  if  no  tax  is  actually  paid  (for   instance,  i f  t hey  a re  l iable  t o  t ax  a t  a  z ero  r ate   for  t heir  f irst  5 0  y ears  o f  e stablishment  u nder   the   Dubai   International   Financial   Centre   (DIFC)   r egime). Other   countries   may   accept   a   tax   residency   certificate  (although  t ax  a uthorities  m ay  a lso   review   the   entity’s   substance   and   beneficial   ownership   of   its   income).   Whether   entities   are  l iable  t o  t ax  h as  b een  q uestioned  p erhaps   most   often   by   the   Indian   tax   authorities,   which   led   the   UAE   and   India   to   drop   the   criterion   on   re-­‐negotiating   their   treaty.   In   most   of   the   UAE’s   new   treaty   negotiations,   ‘liable   for   tax’   clauses   are   being   replaced   by   residence   criterion   based   on   ‘place   of   incorporation   o r   m anagement’. 5VKV\ISL[H_H[PVU Some   tax   authorities   may   argue   that   since   tax   treaties   are   intended   to   eliminate   double  

Similar provisions   also   exist   in   the   UAE’s   treaties  w ith  L uxembourg,  B elgium,  K orea  a nd   other   countries.   Even   where   a   treaty   has   no   such   abuse   provisions,   the   tax   authorities   of   certain  c ountries,  s uch  a s  C hina,  a re  e valuating   potential   treaty   abuse   under   their   domestic   legislation  or  a dministrative  i nterpretations.   The  a bove  i ssues  a re  a mong  t he  m ost  c ommon   problems   encountered   for   foreign   entities   attempting   to   access   the   benefits   of   the   UAE’s   tax   treaty   networks.   Unique   clauses   in   individual   treaties   may   present   other   potential  b arriers  t o  a ccessing  t reaty  b enefits.   The  l ack  o f  o fficial  t ranslations  o f  t reaties  i nto   English  or  other  languages  can  create  further   interpretational  d ifficulties. Given   the   UAE   economy’s   consistent   growth   fuelled   by   long   term   policy   and   vision   of   the   country’s   leadership   towards   diversification   and   progress,   international   and   regional   trade   and   investments   are   bound   to   increase   going  f orward.  For  c ompanies  c onsidering  t he   optimal   structure   for   their   operations   in   or   through   the   UAE,   close   review   of   the   specific   terms  o f  e ach  r elevant  t reaty  i s  c rucial.   71


TECHNOLOGY TALK

AN ALL NEW PARADIGM Rapid growth of technology is swiftly influencing operational processes of SMEs in the UAE

A

GRADUAL SHIFT in the thinking process of management teams at small and medium business has been taking shape in the recent past, thanks to the rapid growth of technology. One factor in particular that has guided this shift has primarily come due to the success of Apple as a mobile device, whether as a phone or a tablet. Most business   owners   possess   one   of   them   and   in  many  cases  both  of  them.  What  this  has  done  is   to   make   them   understand   that   the   Internet   and   the   Cloud   is   something   to   which   they   can   extend   technology  solutions  for  their  businesses.   Their  private  and  personal  data  and  documents  are   already  now  on  Apple’s  cloud  and  they  have  access   to  it  irrespective  of  whether  they  are  using  a  phone,   iPad,  or  a  computer  at  any  time.  

FIGURE 1: Accounting service operating model

,MÄJPLUJ`H[SV^JVZ[ Š‡ •‡…‘† ˆƒ…–‘” –Šƒ–ǯ• ‹ϐŽ—‡…‹‰ –Š‡ •Š‹ˆ– Šƒ• been the  lessons  learnt  from  the  recession.  Business   ‘™‡”•‘™—†‡”•–ƒ†–Š‡„‡‡ϐ‹–•‘ˆ’”‘†—…–‹˜‹–› ƒ†‡ˆϐ‹…‹‡…›ƒ–ƒŽ‘™ϐ‹š‡†…‘•–ǤŠ‡–Š‹”†ƒ•’‡…– is  due  to  the  fact  that  most  entrepreneurs  are  now   dealing   with   higher   volumes   of   information   than   they  did  a  couple  of  years  ago.  

A combination  of  these  factors  is  starting  to  make   organisations   to   rethink   about   the   gains   that   could   be   realised   as   a   result   of   embracing   a   ‘Business   Process   Outsourcing’   route.   Suddenly   it   is   not   just   about   an   outsource   provider   coming   in   to   do   the   accounting   grind,   but   entrepreneurs   are   seeking   ways   of   how   they   can   get   more   out   of   the   entire   outsourcing   process,   including   increased   process   ‡ˆϐ‹…‹‡…›ǡ „‡––‡” ƒƒ‰‡‡– …‘–”‘Ž ƒ• ™‡ŽŽ ƒ• a   safety   net   for   legal   and   regulatory   compliance,   where  applicable.   It   is   safe   to   predict   that   the   shift   in   how   services   are   provided   will   happen   faster   at   the   level   of   small   and   medium-­‐sized   business   models.   This   is   because   larger   enterprises   face   issues   of   security,   compliance   and   most   often   sheer   bureaucracy   that  they  have  to  confront  to  accomplish  the  same   ‡ˆϐ‹…‹‡…›Ž‡˜‡ŽǤ *(7,?PU]LZ[TLU[Z The   change   in   thinking   process   poses   a   few   challenges   for   providers   of   traditional   accounting   •‡”˜‹…‡• ƒ– –Š‡•‡ „—•‹‡••‡•Ǥ —††‡Ž› –Š‡› ϐ‹† themselves   providing   only   one   part   of   a   multi-­‐ part   solution.   The   entry   barrier   for   a   pure   play   technology  player  to  come  in  and  offer  a  composite   solution  is  very  low.   Even   though   the   available   option   may   not   be   the   ideal   solution,   what   will   happen   is   that   the   customer   is   lost   by   the   current   provider.   In   the   customer’s  opinion  the  available  combined  option   is   something   that   is   at   least   a   couple   of   points   better  than  what  he  was  getting  before.    So  what   are  we  talking  about  here?  Most  small  businesses   have   not   made   great   CAPEX   investments   in   software  applications  yet.  Even  if  they  have,  they   have  addressed  the  problem  partially.     There  are  quite  a  few  companies  offering  services   like   invoicing,   payroll,   accounting,   manufacturing   ƒ†ϐŽ‡‡–‘”ƒ••‡––”ƒ…‹‰ƒ–ƒˆ‡™†‘ŽŽƒ”•ƒ‘–ŠǤ These  providers  are  able  to  provide  value  because   the   infrastructure   they   use   is   common   across   multiple   customers.   This   is   called   multi-­‐tenanting   in  technology  language.  

72 January 2013


TECHNOLOGY TALK

Â?Â&#x2021;Â&#x2021;Â&#x2020;Â&#x2022;Â&#x2013;Â&#x2018;Â&#x2019;Â&#x2021;Â&#x201D;Â&#x2C6;Â&#x2018;Â&#x201D;Â?ǤÂ&#x160;Â&#x2021;Â&#x2021;Â&#x192;Â&#x2022;Â&#x2039;Â&#x2021;Â&#x2022;Â&#x2013;Â&#x2122;Â&#x192;Â&#x203A;Â&#x2013;Â&#x2018;Â&#x2020;Â&#x2021;Ď?Â&#x2039;Â?Â&#x2021;Â&#x192;Â&#x2026;Â&#x2018;Â&#x201D;Â&#x2021; task  is  to  formulate  a  simple  question.  For  instance   â&#x20AC;&#x2DC;is   it   important   to   my   customer   that   I   do   this   or   can   I   outsource   it?â&#x20AC;&#x2122;   If   the   answer   is   positive,   then   obviously  this  activity  needs  to  be  retained  and  not   outsourced.  This  way  your  attention  is  focussed  on   keeping  your  customer  happy.  Now  you  know  what   can  be  given  to  a  technology  or  a  service  provider.   Â&#x160;Â&#x2021; Â&#x201E;Â&#x2021;Â?Â&#x2021;Ď?Â&#x2039;Â&#x2013;Â&#x2022; Â&#x2018;Â&#x2C6; Â&#x2039;Â?Â&#x192;Â?Â&#x2026;Â&#x2021; ĆŹ Â&#x2026;Â&#x2026;Â&#x2018;Â&#x2014;Â?Â&#x2013;Â&#x2039;Â?Â&#x2030; ÇŻÂ&#x2022; Â&#x160;Â&#x192;Â&#x2DC;Â&#x2021; evolved   substantially   over   the   past   two   decades.   The  focus  initially  in  the  emerging  days  was  more   on  costs.   Todayâ&#x20AC;&#x2122;s   BPO   providers   can   add   strategic   value   to   an  organization  by  providing  actionable  insights  or   intelligence.  This  is  a  result  of  the  tools  being  used   in  the  process  going  through  considerable  maturity   over  a  period  of  time.  So  by  taking  this  route  there   are  some  objectives  that  one  must  look  to  attain.  

TECH SAVVY: Raju Ramesh, Finesse Co-Founder and CEO

It  translates   to   operating   expenditure   as   almost   all   of   these   providers   have   their   own   servers   and   data  centres  along  with  ongoing  management  and   support  services  all  of  which  is  part  of  a  monthly  fee.   Â&#x160;Â&#x2021;Â&#x2021;Â&#x2C6;Ď?Â&#x2039;Â&#x2026;Â&#x2039;Â&#x2021;Â?Â&#x2026;Â&#x203A;Â&#x2030;Â&#x192;Â&#x2039;Â?Â&#x2021;Â&#x17D;Â&#x2021;Â?Â&#x2021;Â?Â&#x2013;Â&#x17D;Â&#x2018;Â&#x2018;Â?Â&#x2022;Â&#x2122;Â&#x2021;Â&#x17D;Â&#x17D;Â&#x2122;Â&#x2039;Â&#x2013;Â&#x160;Â&#x2039;Â?Â&#x201D;Â&#x2021;Â&#x192;Â&#x2026;Â&#x160; for  these  companies.   5L^Ă&#x2026;L_PIPSP[` The   accounting   service   providers   have   not   seen   the  real  dimension  of  the  threat  yet.  That  threat  is   going  to  come  from  nimble  service  companies  that   are  starting  to  provide  these  applications  alongside   accounting  and  advisory  services  combined  with  all   of  the  above.   Suddenly  customers  can  opt  to  see  a  management   dashboard   on   their   mobile   phone   or   tablet,   get   Â?Â&#x2018;Â&#x2013;Â&#x2039;Ď?Â&#x2039;Â&#x2026;Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â?Â&#x2022;Â&#x2013;Â&#x2018;Â?Â&#x192;Â?Â&#x192;Â&#x2030;Â&#x2021;Â&#x192;Â?Â&#x203A;Â&#x2021;Â&#x2DC;Â&#x2021;Â?Â&#x2013;Â&#x2018;Â&#x201D;Â&#x2013;Â&#x192;Â?Â&#x2021;Â&#x192;Â&#x2020;Â&#x2DC;Â&#x192;Â?Â&#x2013;Â&#x192;Â&#x2030;Â&#x2021; Â&#x2018;Â&#x2C6; Â?Â&#x2021;Â&#x2122; Ď?Â&#x17D;Â&#x2021;Â&#x161;Â&#x2039;Â&#x201E;Â&#x2039;Â&#x17D;Â&#x2039;Â&#x2013;Â&#x203A; Â&#x2013;Â&#x160;Â&#x2021;Â&#x203A; Â?Â&#x2021;Â&#x2DC;Â&#x2021;Â&#x201D; Â&#x2021;Â?Â&#x152;Â&#x2018;Â&#x203A;Â&#x2021;Â&#x2020; Â&#x2039;Â? Â&#x2013;Â&#x160;Â&#x2021; Â&#x2019;Â&#x192;Â&#x2022;Â&#x2013; unless  they  invested  in  technology  CAPEX.  So  what   is  the  starting  point  for  someone  who  would  like  to   Â&#x2030;Â&#x2018; Â&#x2020;Â&#x2018;Â&#x2122;Â? Â&#x2013;Â&#x160;Â&#x2039;Â&#x2022; Â&#x201D;Â&#x2018;Â&#x2014;Â&#x2013;Â&#x2021;ÇŤ Â&#x2013; Â&#x2039;Â&#x2022; Â&#x2039;Â?Â&#x2019;Â&#x2018;Â&#x201D;Â&#x2013;Â&#x192;Â?Â&#x2013; Â&#x2013;Â&#x2018; Ď?Â&#x2039;Â&#x201D;Â&#x2022;Â&#x2013; Â&#x2020;Â&#x2021;Ď?Â&#x2039;Â?Â&#x2021; what  the  core  and  non-­â&#x20AC;?core  tasks  are  that  a  business  

The benefits of Finance & Accounting BPOâ&#x20AC;&#x2122;s have evolved substantially over the past two decades.The focus initially was more on costs, but todayâ&#x20AC;&#x2122;s BPO providers can add strategic value to an organisation by providing actionable insights or intelligence.

9LK\JPUNPU]LZ[TLU[ZYPZRZ Firstly,  this  should  result  in  increasing  the  strength   of  your  company.  This  can  come  from  your  ability   to   now   focus   better   on   the   customer   or   from   the   expertise  built  and  accumulated  by  the  provider.   Secondly,   you   must   be   able   to   reduce   projected   capital   costs   and   therefore   as   a   result,   reduce   investment  risks.  Thirdly,  it  should  increase  access   Â&#x2013;Â&#x2018; Â&#x2022;Â&#x2013;Â&#x192;Â&#x2013;Â&#x2021;ÇŚÂ&#x2018;Â&#x2C6;ÇŚÂ&#x2013;Â&#x160;Â&#x2021;ÇŚÂ&#x192;Â&#x201D;Â&#x2013; Â&#x2013;Â&#x2021;Â&#x2026;Â&#x160;Â?Â&#x2018;Â&#x17D;Â&#x2018;Â&#x2030;Â&#x203A; Â&#x2013;Â&#x2018; Â?Â&#x192;Â?Â&#x2021; Â&#x2022;Â&#x2039;Â&#x2030;Â?Â&#x2039;Ď?Â&#x2039;Â&#x2026;Â&#x192;Â?Â&#x2013; Â&#x2021;Â&#x2C6;Ď?Â&#x2039;Â&#x2026;Â&#x2039;Â&#x2021;Â?Â&#x2026;Â&#x203A;Â&#x2039;Â?Â&#x2019;Â&#x201D;Â&#x2018;Â&#x2DC;Â&#x2021;Â?Â&#x2021;Â?Â&#x2013;ǤÂ&#x192;Â&#x2022;Â&#x2013;Â&#x17D;Â&#x203A;ÇĄÂ&#x2022;Â&#x2021;Â&#x201D;Â&#x2DC;Â&#x2039;Â&#x2026;Â&#x2021;Â&#x17D;Â&#x2021;Â&#x2DC;Â&#x2021;Â&#x17D;Â&#x2022;Â&#x2013;Â&#x2018;Â&#x203A;Â&#x2018;Â&#x2014;Â&#x201D; customer   must   improve   and   they   must   be   able   to   perceive  this  improvement.  From  a  vendor  selection   perspective  they  need  to  bring  understanding  of  your   business,  metrics  for  performance  measurement  and   most  importantly,  the  ability  to  adapt  as  your  business   undergoes  changes. Â&#x2018;Â?Â&#x2021; Â&#x2018;Â&#x2C6; Â&#x2013;Â&#x160;Â&#x2021; Â&#x201E;Â&#x2021;Â?Â&#x2021;Ď?Â&#x2039;Â&#x2013;Â&#x2022; Â&#x2013;Â&#x2018; Â&#x2013;Â&#x160;Â&#x2021; Â&#x2026;Â&#x2014;Â&#x2022;Â&#x2013;Â&#x2018;Â?Â&#x2021;Â&#x201D; Â&#x192;Â&#x17D;Â&#x2022;Â&#x2018; Â&#x2026;Â&#x2018;Â?Â&#x2021; with  providing  a  model  where  the  business  process   is   embedded   with   appropriate   metrics.   What   this   Â?Â&#x2021;Â&#x192;Â?Â&#x2022;Â&#x2039;Â&#x2022;Â&#x2013;Â&#x160;Â&#x192;Â&#x2013;Â&#x2013;Â&#x160;Â&#x2021;Â&#x203A;Â?Â&#x2021;Â&#x2021;Â&#x2020;Â&#x160;Â&#x2021;Â&#x17D;Â&#x2019;Â&#x2013;Â&#x2018;Â&#x2020;Â&#x2021;Ď?Â&#x2039;Â?Â&#x2021;Â&#x2021;Â&#x161;Â&#x2026;Â&#x2021;Â&#x2019;Â&#x2013;Â&#x2039;Â&#x2018;Â?Â&#x2022;Ǥ If   we   can   manage   to   separate   the   routine   from   an   exception   it   is   always   possible   to   provide   a   technology  solution  to  deal  with  the  routine.   The  goal  then  becomes  how  much  more  can  be  put   in  a  basket  called  â&#x20AC;&#x2DC;routineâ&#x20AC;&#x2122;  and  how  much  less  can   be   put   in   the   basket   called   â&#x20AC;&#x2DC;exceptionâ&#x20AC;&#x2122;.   Basically   this  boils  down  to  a  review  of  both  their  processes   Â&#x192;Â?Â&#x2020; Â&#x2039;Â?Â&#x2C6;Â&#x2018;Â&#x201D;Â?Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â? Â&#x192;Â?Â&#x2020; Â&#x2020;Â&#x2021;Ď?Â&#x2039;Â?Â&#x2039;Â?Â&#x2030; Â&#x2122;Â&#x160;Â&#x192;Â&#x2013; Â&#x2022;Â&#x160;Â&#x2018;Â&#x2014;Â&#x17D;Â&#x2020; happen   when,   in   what   order,   and   what   the   red   lines  are.    Once  this  is  in  place  the  ability  to  set  up   exception   rules   will   start   to   emerge   and   providing   information  on  the  go  for  decision  making  becomes   all  the  more  meaningful.   73


INDUSTRY APPOINTMENTS

APPOINTMENTS If you have made a new appointment, promotion or have any relevant hiring news, please email the details and a photo to accountancy@cpidubai.com

The  UAE   I nternal   Audit   A ssociation   (UAE-­â&#x20AC;?IAA),   the   l ocal   b ody   affiliated   t o   the   I nstitute   o f   Internal   A uditors   (IIA-­â&#x20AC;?Global),   has   a nnounced   t he   a ppointment   of   K evin K. Rafiq   a s   a   n ew   Chief   E xecutive   O fficer.   R afiq   will   b e   r esponsible   f or   p roviding   direction   a nd   s upervision   t o   t he   committees   o f   t he   A ssociation,   a nd   coordinating   w ith   t he   B oard   o f   Directors   t o   s trengthen   p artnerships   with   v arious   s takeholders.   Rafiqâ&#x20AC;&#x2122;s   p rofessional   e xperience   spans   t he   f ields   o f   i nternational   business,   m arketing,   c ustomer   service,   l eadership   t raining   a nd   development,   s trategic   m anagement   and   p artnership   d evelopment.   A   Magna   C um   L aude   g raduate,   R afiq   holds   a   b achelor   d egree   o f   S cience   in   B usiness   A dministration   f rom   Strayer   U niversity-­â&#x20AC;?USA,   a nd   a n   M BA   in   I nternational   M anagement   f rom   the   U niversity   o f   M aryland-­â&#x20AC;?USA.

Farook Khimani  â&#x20AC;&#x201C;  has  been   promoted  a s  a   Partner  at  U HY  -­â&#x20AC;?   an  i nternational   network  of   independent   accounting  a nd   Â&#x2026;Â&#x2018;Â?Â&#x2022;Â&#x2014;Â&#x17D;Â&#x2013;Â&#x192;Â?Â&#x2026;Â&#x203A;Ď?Â&#x2039;Â&#x201D;Â?Â&#x2022;ÇŚÂ&#x2021;Â&#x2C6;Â&#x2C6;Â&#x2021;Â&#x2026;Â&#x2013;Â&#x2039;Â&#x2DC;Â&#x2021; Â&#x192;Â?Â&#x2014;Â&#x192;Â&#x201D;Â&#x203A; 1,  2013.  A  commerce  g raduate,  he   Â&#x160;Â&#x192;Â&#x2022;Â&#x201E;Â&#x2021;Â&#x2021;Â?Â&#x192;Â&#x2022;Â&#x2022;Â&#x2018;Â&#x2026;Â&#x2039;Â&#x192;Â&#x2013;Â&#x2021;Â&#x2020;Â&#x2122;Â&#x2039;Â&#x2013;Â&#x160;Â&#x2013;Â&#x160;Â&#x2021;Ď?Â&#x2039;Â&#x201D;Â?Â&#x2C6;Â&#x2018;Â&#x201D; nearly  20  years  i n  audit,  consultancy   and  corporate  services  business  of  t he   Ď?Â&#x2039;Â&#x201D;Â?ÇĄÂ&#x192;Â?Â&#x2020;Â&#x2039;Â&#x2022;Â&#x2026;Â&#x2014;Â&#x201D;Â&#x201D;Â&#x2021;Â?Â&#x2013;Â&#x17D;Â&#x203A;Â&#x2039;Â?Â&#x2026;Â&#x160;Â&#x192;Â&#x201D;Â&#x2030;Â&#x2021;Â&#x2018;Â&#x2C6;Â&#x2013;Â&#x160;Â&#x2021; Â&#x160;Â&#x192;Â&#x201D;Â&#x152;Â&#x192;Â&#x160;Â&#x2018;Â&#x2C6;Ď?Â&#x2039;Â&#x2026;Â&#x2021;Â&#x2039;Â?Â&#x2013;Â&#x160;Â&#x2021;Â?Â&#x192;Â?Â&#x192;Â&#x2030;Â&#x2039;Â?Â&#x2030; Â&#x2013;Â&#x160;Â&#x2021;Â&#x2020;Â&#x192;Â&#x203A;Â&#x2013;Â&#x2018;Â&#x2020;Â&#x192;Â&#x203A;Â&#x201D;Â&#x2014;Â?Â?Â&#x2039;Â?Â&#x2030;Â&#x2018;Â&#x2C6;Â&#x2013;Â&#x160;Â&#x2021;Ď?Â&#x2039;Â&#x201D;Â? including  audit,  corporate  services,   administration  a nd  client  management   of  t he  Northern  Emirates.

74 January 2013

Anmar Khaznadar  joins  the  Grant   Â&#x160;Â&#x2018;Â&#x201D;Â?Â&#x2013;Â&#x2018;Â?Â&#x2018;Â&#x2C6;Ď?Â&#x2039;Â&#x2026;Â&#x2021; as  an  Assistant   Manager  for  the   Fraud  and  Forensics   department.  Prior   to  joining  Grant   Thornton,  Anmar  worked  for  Ernst  &   Young  as  a  Senior  Consultant  for  three   years,  having  spent  four  years  working   with  conventional  and  Islamic  banks   in  the  MENA  region.  He  has  worked   within  an  international  capacity  for   multinational  investment  banks  and  large   corporations  within  various  sectors.  

V.S. Ravi  has   been  promoted  as   a  Partner  at  UHY   -­â&#x20AC;?  an  international   network  of   independent   accounting  and   Â&#x2026;Â&#x2018;Â?Â&#x2022;Â&#x2014;Â&#x17D;Â&#x2013;Â&#x192;Â?Â&#x2026;Â&#x203A;Ď?Â&#x2039;Â&#x201D;Â?Â&#x2022;ÇŚÂ&#x2021;Â&#x2C6;Â&#x2C6;Â&#x2021;Â&#x2026;Â&#x2013;Â&#x2039;Â&#x2DC;Â&#x2021; Â&#x192;Â?Â&#x2014;Â&#x192;Â&#x201D;Â&#x203A; ͳǥʹͲͳ;Ǥ Â&#x2021;Â&#x2039;Â&#x2022;Â&#x192;Â&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;Ď?Â&#x2039;Â&#x2021;Â&#x2020;Â&#x160;Â&#x192;Â&#x201D;Â&#x2013;Â&#x2021;Â&#x201D;Â&#x2021;Â&#x2020; Accountant  from  the  Institute  of   Chartered  Accountants  of  India.  He  passed   the  Chartered  Accountancy  course  in  the   year  May  1999.  He  is  the  Director  of  the   Ď?Â&#x2039;Â&#x201D;Â?ÇĄÂ?Â&#x192;Â?Â&#x192;Â&#x2030;Â&#x2039;Â?Â&#x2030;Â&#x2013;Â&#x160;Â&#x2021;Â&#x2014;Â&#x2020;Â&#x2039;Â&#x2013;Â&#x192;Â?Â&#x2020;Â&#x2026;Â&#x2026;Â&#x2018;Â&#x2014;Â?Â&#x2013;Â&#x2039;Â?Â&#x2030; functions.  He  has  over  eight  years  post   Â&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;Ď?Â&#x2039;Â&#x2026;Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â?Â&#x2021;Â&#x161;Â&#x2019;Â&#x2021;Â&#x201D;Â&#x2039;Â&#x2021;Â?Â&#x2026;Â&#x2021;Â&#x2039;Â?Â&#x2014;Â&#x2020;Â&#x2039;Â&#x2013;Â&#x192;Â?Â&#x2020; Accounts.  Ravi  has  been  associated   Â&#x2122;Â&#x2039;Â&#x2013;Â&#x160;Â&#x2013;Â&#x160;Â&#x2021;Ď?Â&#x2039;Â&#x201D;Â?Â&#x2C6;Â&#x2018;Â&#x201D;Â?Â&#x2021;Â&#x192;Â&#x201D;Â&#x17D;Â&#x203A;Ď?Â&#x2039;Â&#x2DC;Â&#x2021;Â&#x203A;Â&#x2021;Â&#x192;Â&#x201D;Â&#x2022;Â&#x192;Â?Â&#x2020;Â&#x2039;Â&#x2022; Â&#x17D;Â&#x2021;Â&#x192;Â&#x2020;Â&#x2039;Â?Â&#x2030;Â&#x192;Â&#x2013;Â&#x2021;Â&#x192;Â?Â&#x2018;Â&#x2C6;Â&#x2019;Â&#x201D;Â&#x2018;Â&#x2C6;Â&#x2021;Â&#x2022;Â&#x2022;Â&#x2039;Â&#x2018;Â?Â&#x192;Â&#x17D;Â&#x17D;Â&#x203A;Â&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;Ď?Â&#x2039;Â&#x2021;Â&#x2020; accountants  and  trainees.  

Nilesh Ashar  has  joined  K PMG   Lower  Gulf  as  a  UAE   Partner  and  his   role  w ill  focus  on   leading  t he  Firmâ&#x20AC;&#x2122;s   international  and   Mergers  &  Acquisitions  t ax  advisory   services.  He  is  a  member  of  t he  Institute  

of  Chartered  Accountants  in  India  and   was  previously  working  as  a  Director   Â&#x2C6;Â&#x2018;Â&#x201D;Â&#x192;Â?Â&#x2018;Â&#x2013;Â&#x160;Â&#x2021;Â&#x201D;Â&#x201E;Â&#x2039;Â&#x2030;Â&#x2C6;Â&#x2018;Â&#x2014;Â&#x201D;Ď?Â&#x2039;Â&#x201D;Â?Â&#x2039;Â?Â&#x2013;Â&#x160;Â&#x2021;Ǥ Nilesh  brings  over  17  years  experience   working  in  Tax  and  has  led  several  t ax   structuring  assignments  for  private   equity  and  sovereign  wealth  f und   clients  on  t heir  acquisitions  in  t he   UK  and  Europe.  Nilesh  has  a  degree   in  Chartered  Accountancy  f rom  t he   Institute  of  Chartered  Accountants  of   India  and  also  a  Bachelor  of  Commerce   from  Mumbai  University.  

Mushtaq Ali Shaikh  h as  b een   promoted  a s  a   Partner  at  U HY  -­â&#x20AC;?   an  i nternational   network  of   independent   accounting  a nd   Â&#x2026;Â&#x2018;Â?Â&#x2022;Â&#x2014;Â&#x17D;Â&#x2013;Â&#x192;Â?Â&#x2026;Â&#x203A;Â&#x2C6;Â&#x2039;Â&#x201D;Â?Â&#x2022;ÇŚÂ&#x2021;Â&#x2C6;Â&#x2C6;Â&#x2021;Â&#x2026;Â&#x2013;Â&#x2039;Â&#x2DC;Â&#x2021; Â&#x192;Â?Â&#x2014;Â&#x192;Â&#x201D;Â&#x203A; 1,  2013.  Mushtaq  h as  b een  p art  of   the  f irm  f rom  t he  l ast  24  years.  He   is  r esponsible  f or  t he  d ay-­â&#x20AC;?to-­â&#x20AC;?day   running  of  t he  Accounting  f unction   throughout  t he  organisation,   including  budgeting,  t rade  f inance   activity  a nd  a lso  oversees  c ash-­â&#x20AC;?flow   and  c urrency  r equirements.    

Sumeet Nayyar  has  been  promoted   as  a  Partner  at  UHY   -­â&#x20AC;?  an  international   network  of   independent   accounting  and   Â&#x2026;Â&#x2018;Â?Â&#x2022;Â&#x2014;Â&#x17D;Â&#x2013;Â&#x192;Â?Â&#x2026;Â&#x203A;Ď?Â&#x2039;Â&#x201D;Â?Â&#x2022;ÇŚ Â&#x2021;Â&#x2C6;Â&#x2C6;Â&#x2021;Â&#x2026;Â&#x2013;Â&#x2039;Â&#x2DC;Â&#x2021; Â&#x192;Â?Â&#x2014;Â&#x192;Â&#x201D;Â&#x203A;ͳǥ 2013.  Sumeet  has  been  associated  with   UHY  since  2007  and  is  currently  in  the   Consultancy  and  Advisory  division  of  the   Ď?Â&#x2039;Â&#x201D;Â?Ǥ Â&#x2021;Â&#x2039;Â&#x2022;Â&#x192;Â&#x17D;Â&#x2022;Â&#x2018;Â&#x192; Â&#x2026;Â&#x2018;Â?Â&#x2022;Â&#x2014;Â&#x17D;Â&#x2013;Â&#x192;Â?Â&#x2013;Â&#x2122;Â&#x2018;Â&#x201D;Â?Â&#x2039;Â?Â&#x2030; on  the  new  HR  audit  product  currently   Â&#x2014;Â?Â&#x2020;Â&#x2021;Â&#x201D;Â&#x2020;Â&#x2021;Â&#x2DC;Â&#x2021;Â&#x17D;Â&#x2018;Â&#x2019;Â?Â&#x2021;Â?Â&#x2013;Â&#x2122;Â&#x2039;Â&#x2013;Â&#x160;Â&#x2039;Â?Â&#x2013;Â&#x160;Â&#x2021;Ď?Â&#x2039;Â&#x201D;Â?Ǥ


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