SETTING STANDARDS IN FINANCIAL AUDITING & ACCOUNTANCY
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
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
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Accountant Middle Eastǡϐ ͺͲͲ ǡ Ǯǯ Ǥ ǡ ǡ ϐ Ǯ ǯǮ Ǥǯ ϐϐ Ǥ Ǯ ǯǤ Ǥ ǡ ϐ ȋ Ȍ ȋȌǡǡ ǯ Ǥ ǡ ǯ ϐ ǡ ǤǤ ʹͲͳ͵ ǡǯ ǡ Ǥ Ǩ
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Tel: +971 4 440 9100 Fax: +971 4 447 2409
SETTING STANDARDS IN FINANCIAL AUDITING & ACCOUNTANCY
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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
© 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
PUBLICATION LICENSED BY IMPZ
CONTENTS JANUARY 2013
PERSONALITY & PRACTICE:
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 ϐ 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.
Current Affairs 6 NEWS & VIEWS:
Deloitte promotes 40 professionals Ȃϐ announces admission of 40 new partners, principals and directors in the Middle East in 2012, as part of its growth strategy across the region.
ICAS faults audit r ules – Research by the Institute of Chartered Accountants of Scotland has found 'no conclusive' ϐǤ
A visual story of this month’s dealings and ϐ Ǥ
Battle against sleaze -‐ Bribery and corruption in the Middle East is no longer ‘simply a cost of doing business’.
UAE’s double t ax t reaties -‐ Emirates enacts decrees for purposes of eliminating foreign levies on income from outbound activities.
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 ϐ 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.
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 ϐǤ
MOVERS & SHAKERS:
Passion for banking -‐ Surya Subramanian, Chief ϐ ǡ ϐ Ǥ
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 ϐ 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 ϐ 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 ϐϐ will get back to normal,” said F lowers ( pictured). ǲϐ 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 ϐ 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 ϐ Ǥ 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
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:
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 Ȃǲϐ latest t rends and meet t he feedback provided by over 12,000 students worldwide.” ϐǡǡ interaction and value for money, both t he ACCA Tuition and the ACCA Revision packages have been improved w ith an increased number of ǡǡ 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 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.
PERCENTAGE OF WOMEN PROFESSIONALS IN THE NEWLY PROMOTED TEAM
MECA summit records growth ͷ ϐ ϐ 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. Regional CFO Conference set to be held on March 27-‐28, 2013 in Dubai. According to the group’s President ϐȋ ȌǡʹͷͲ CFOs from UAE, KSA, Pakistan, India
ϐ participation. MECA events are invitation-‐only and organised mainly for Ǥ ϐ of MECA, you may send your request via the group’s LinkedIn forum. 7
Deloitte’s new survey reveals 80% of employees plan to continue working at their organisations over the next year
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 ϐ ȋͺͲΨȌ surveyed report that they plan to stay with their Ȅ ϐ ͶͷǦ ʹͲͳͳǡ ȋͷΨȌ 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_ ǡͳʹͶΨ of surveyed employees have moved to new jobs ȋͻΨȌǡ ȋʹʹΨȌǡ ȋͳͷΨȌ Ȅ factors that might make them less inclined to ͳʹǤǦ ȋ͵ͳΨȌ ϐǤ
SURVEYED EMPLOYEES WHO HAVE MOVED TO NEW JOBS IN THE LAST 12 MONTHS 8
ϐ ʹͲͳʹ 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 ǡ 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 ǡ ϐ emerging t rends: Engage employees w ith meaningful work or watch them walk out the door. Employees value meaningful work over other retention initiatives. ȋͶʹΨȌ 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 ȋ͵ͳ ȌǤ W hen it comes to retention, leadership ǤͳͲȋʹΨȌ 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 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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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
MASTER OF CEREMONIES: Dubai Eyeâ€™s radio presenter Richard Dean kept the party going at the ICAEW glittering event.
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 ̶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:
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
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 ϐ the reserved legal service of probate and to license ϐǤ
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. ϐ ǣȈ for a period of relative calm after a decade of ǢȈ unanimous support for the IASB to prioritise work ǡȈ asked to make targeted improvements to respond ǢȈ 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:
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€œThe accounting profession owns a history much longer than the UAEâ€™s,â€? says HE Sheikh Nahayan bin Mubarak Al Nahayan, Minister of Higher Education and 4DJFOUJmD3FTFBSDI
ODAYâ€™S TECHNO-ÂSAVVY 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-Âentry bookkeeping? In Â his Â history-Ââ€?rich Â speech Â tinged Â with Â humour Â and Â wit, Â HE Â Sheikh Â Nahayan Â bin Â Mubarak Â Al Â Nahayan, Â the Â Minister Â Â‘Âˆ Â‹Â‰ÂŠÂ‡Â” Â†Â—Â…ÂƒÂ–Â‹Â‘Â? ÂƒÂ?Â† Â…Â‹Â‡Â?Â–Â‹Ď?Â‹Â… Research, Â enlightened Â dignitaries Â -Ââ€? Â who Â comprised Â t he Â cream Â of Â t he Â accountancy Â ÂƒÂ?Â† Ď?Â‹Â?ÂƒÂ?Â…Â‡ Â’Â”Â‘ÂˆÂ‡Â•Â•Â‹Â‘Â? Č‚ ÂƒÂ„Â‘Â—Â– Â–ÂŠÂ‡ colloquial Â origins Â of Â the Â modern-Ââ€?day Â act Â of Â debit Â and Â credit. â€œ T he Â account ing Â profession Â ow ns Â a Â history Â much Â longer Â than Â the Â UAEâ€™s,â€? Â he Â said, Â during Â the Â annual Â Accountancy Â
14 January 2013
a n d Â F i n a n c e Â E x c e l l e n c e Â a w a r d s Â ceremony, Â organised Â by Â the Â Institute Â of Â Chartered Â Accountants Â in Â England Â and Â Wales Â ( ICAEW). â€œYou Â must Â be Â proud Â that Â your Â predecessors Â gave Â writing Â to Â the Â world Â where Â archaeologists Â and Â historians Â Â†Â‡Â–Â‡Â”Â?Â‹Â?Â‡Â† ÂˆÂ”Â‘Â? Ď?Â‹Â”Â‡Â† Â…ÂŽÂƒÂ› Â–Â‘Â?Â‡Â?Â• shaped Â as Â spheres, Â cones Â and Â ovoids.â€? Â +LIP[HUKJYLKP[LU[YPLZ The Â tokens Â furnished Â a Â basic Â method Â of Â keeping Â track Â of Â produce Â and Â exchanges Â and Â centuries Â later, Â the Â advent Â of Â large-Ââ€? scale Â trading Â enabled Â a Â vast Â increase Â in Â the Â number Â of Â tokens Â representing Â items Â such Â as Â bread, Â honey, Â metal Â and Â textiles. â€œPeople Â began Â to Â store Â t heir Â tokens Â in Â clay Â envelopes,â€? Â Sheikh Â A l Â Nahayan Â narrated, Â adding Â t hat Â â€œtokens Â added Â were Â in Â effect Â
ACCOUNTANCY & FINANCE AWARDS
what Â we Â would Â call Â debit Â entries, Â while Â tokens Â removed Â were Â credit Â entries.â€? Â â€œEventually Â t he Â owners Â of Â clay Â envelopes Â realised Â t hat Â t hey Â could Â account Â for Â t heir Â Â–Â‘Â?Â‡Â?Â•Â„Â›Ď?ÂŽÂƒÂ–Â–Â‡Â?Â‹Â?Â‰Â–ÂŠÂ‡Â‹Â”Â‡Â?Â˜Â‡ÂŽÂ‘Â’Â‡Â•ÂƒÂ?Â† pressing Â the Â tokens Â into Â wetted Â clay. Â ÂŠÂ‡Â›Â–ÂŠÂ—Â•Â…Â”Â‡ÂƒÂ–Â‡Â†Â–ÂŠÂ‡Â™Â‘Â”ÂŽÂ†ÇŻÂ•Ď?Â‹Â”Â•Â–Â–ÂƒÂ„ÂŽÂ‡Â– and Â moved Â from Â 3-Ââ€?D Â to Â 2-Ââ€?D Â accounting,â€? Â the Â Minister Â said, Â to Â the Â amusement Â of Â the Â dignitaries. Â :LUZLVMYLZWVUZPIPSP[` While Â emphasising Â on Â the Â important Â role Â that Â accountants Â play Â in Â todayâ€™s Â business Â world, Â Sheikh Â Nahayan Â sent Â t he Â crowd Â rolling Â with Â laughter Â by Â quoting Â a Â famous Â statement Â by Â the Â â€˜King Â of Â Rock Â and Â Rollâ€™ Â Elvis Â Presley. Â â€œHe Â [Elvis Â Presley] Â once Â said Â that Â â€˜I Â have Â no Â use Â for Â bodyguards, Â but Â I Â have Â Â˜Â‡Â”Â› Â•Â’Â‡Â…Â‹Ď?Â‹Â… Â—Â•Â‡ ÂˆÂ‘Â” Â–Â™Â‘ ÂŠÂ‹Â‰ÂŠÂŽÂ› Â–Â”ÂƒÂ‹Â?Â‡Â† Â…Â‡Â”Â–Â‹Ď?Â‹Â‡Â†Â’Â—Â„ÂŽÂ‹Â…ÂƒÂ…Â…Â‘Â—Â?Â–ÂƒÂ?Â–Â•ÇŻÇ¤Çł â€œYes, Â you Â are Â an Â essential Â part Â of Â our Â society, Â and, Â with Â your Â moral Â sense Â of Â social Â responsibility Â guiding Â your Â character, Â you Â are Â invaluable,â€? Â Sheikh Â Â Nahayan Â said. The Â Minister Â showered Â plaudits Â on Â ICAEW Â for Â the Â meticulous Â planning Â of Â the Â awards Â event, Â saying Â with Â over Â 138,000 Â members Â worldwide, Â the Â Institute Â operates Â with Â great Â authority Â and Â understanding Â in Â the Â accountancy Â f ield, Â a nd Â â€œserving Â p eople Â in Â a Â field Â that Â has Â recently Â been Â too Â often Â represented Â in Â trust-Ââ€?destroying Â headlines, Â ICAEW Â knows Â that Â there Â is Â no Â s ubstitute Â f or Â e xcellence.â€? Â
â€œYour challenge to be accountable to society mirrors that of our own UAE. Building a sustainable economy is our top policy priority.â€? our Â environment Â and Â preserve Â our Â cultural Â heritage. Â That Â cultural Â heritage Â ÂŠÂƒÂ• Â†Â‡Ď?Â‹Â?Â‡Â† Â‘Â—Â” Â?Â‘Â”ÂƒÂŽ Â’Â”Â‹Â?Â…Â‹Â’ÂŽÂ‡Â•Ç¤ Â‡ Â‹Â? the Â UAE Â must Â honour Â them Â by Â working Â for Â environmental Â protection, Â social Â cohesion, Â cultural Â identity Â and Â quality Â of Â life. Â We Â must Â earn Â the Â trust Â and Â respect Â of Â society Â and Â behave Â in Â a Â fair Â and Â honest Â manner.â€? Â (JJV\U[HISL[VZVJPL[` Drawing Â parallels Â to Â the Â industry, Â Sheikh Â Nahayan Â said; Â â€œLike Â you, Â we Â are Â accountable Â to Â society, Â committed Â to Â its Â traditions Â and Â values Â and Â dedicated Â to Â our Â vision Â and Â goals Â for Â its Â future.â€? Â The Â ceremony Â was Â attended Â by Â leading Â professionals Â from Â across Â the Â region Â and Â graced Â by Â Olympic Â sporting Â legend Â and Â London Â Olympics Â organiser Â Lord Â Sebastian Â Coe, Â who Â was Â the Â keynote Â speaker. Â The Â awards Â were Â spread Â over Â ten Â categories Â and Â celebrated Â the Â very Â best Â of Â ÂƒÂ…Â…Â‘Â—Â?Â–ÂƒÂ?Â…Â›ÂƒÂ?Â†Ď?Â‹Â?ÂƒÂ?Â…Â‡ÂˆÂ”Â‘Â?Â–ÂŠÂ”Â‘Â—Â‰ÂŠÂ‘Â—Â– the Â Middle Â East, Â where Â winners Â were Â selected Â by Â a Â judging Â team Â of Â 13 Â recognised Â
KEYNOTE SPEAKER: Olympic sporting legend and London Olympics organiser Lord Sebastian Coe addresses dignitaries during the BXBSETFWFOU
â€œThe Â global Â economy Â depends Â on Â your Â accuracy, Â your Â clarity, Â your Â candor,â€? Â he Â said, Â adding, Â â€œYour Â challenge Â to Â be Â accountable Â to Â society Â mirrors Â that Â of Â our Â own Â UAE. Â Building Â a Â sustainable Â economy Â is Â our Â top Â policy Â priority. Â Our Â second Â priority Â is Â a Â balanced Â and Â Â†Â‹Â˜Â‡Â”Â•Â‹Ď?Â‹Â‡Â† Â†Â‡Â˜Â‡ÂŽÂ‘Â’Â?Â‡Â?Â– Â–ÂŠÂƒÂ– Â™Â‹ÂŽÂŽ Â‡Â?Â•Â—Â”Â‡ stability. Â Those Â priorities Â speak Â to Â social Â responsibility. Â They Â also Â raise Â other Â issues Â because, Â while Â we Â increase Â prosperity Â and Â eliminate Â poverty, Â we Â know Â that Â our Â actions Â must Â at Â the Â same Â time Â conserve Â 15
ACCOUNTANCY & FINANCE AWARDS
HELLO CELLO: Escala, an electronic string quartet from London, captivated the crowd with their NVTJDBMQSPXFTT
and Â respected Â industry Â experts Â from Â ÂƒÂ…Â…Â‘Â—Â?Â–Â‹Â?Â‰ÇĄĎ?Â‹Â?ÂƒÂ?Â…Â‡ÂƒÂ?Â†Â„Â—Â•Â‹Â?Â‡Â•Â•Ç¤ Peter Â B eynon, Â ICAEW Â R egional Â D irector Â Middle Â E ast, Â s aid: Â â€œ It Â h as Â b een Â e xcellent Â to Â have Â the Â chance Â to Â recognise Â and Â reward Â the Â very Â best Â of Â our Â profession Â from Â across Â t he Â M iddle Â E ast. Â The Â vital Â work Â that Â finance Â professionals Â do Â t hroughout Â t he Â r egion Â can Â s ometimes Â b e Â overlooked Â but Â w ith Â talented Â p eople Â l ike Â t hese, Â we Â c an Â a ll Â do Â business Â with Â increasing Â confidence. Â The Â winners Â should Â be Â extremely Â proud Â of Â t heir Â achievements.â€? Â :\WLYPVYL_JLSSLUJLPUPUK\Z[Y` Among Â the Â winners Â were Â Mohammed Â Alabbar Â f rom Â Emaar, Â who Â w as Â awarded Â Business Â Leader Â of Â the Â Year, Â CFO Â of Â the Â Year Â Prasanth Â Manghat Â from Â NMC Â Health Â a nd Â Muhra Â a l Â Mulla Â f rom Â Deloitte, Â who Â was Â crowned Â Young Â Accountant Â of Â the Â Year. Â PwC Â won Â Firm Â of Â the Â Year, Â while Â Tamkeen Â was Â recognised Â for Â Excellence Â i n Â Training Â a nd Â Development Â of Â Finance Â P rofessionals. Â S u r y a Â S u b r a m a n i a n , Â G r oup Â C h i e f Â Â‹Â?ÂƒÂ?Â…Â‹ÂƒÂŽÂˆĎ?Â‹Â…Â‡Â”ÂˆÂ”Â‘Â?ÂŽÂƒÂ–Â‹Â?Â—Â?Â•Â’Â‘Â?Â•Â‘Â”
Elvis Presley once said: â€˜I have no use for bodyguards, but I have very specific use for two highly trained certified public accountantsâ€™.
16 January 2013
Â? Â‹ Â” ÂƒÂ– Â‡ Â• ÇĄ Â• Âƒ Â‹Â†ÇŁ Ç˛ ÂŠÂ‡ Ď? Â‹ Â? Âƒ Â?Â…Â‡ profession Â in Â t he Â Middle Â East Â is Â g rowing Â and Â becoming Â stronger Â every Â year. Â We Â congratulate Â all Â the Â winners Â for Â their Â dedication Â and Â on Â achieving Â personal Â excellence Â whilst Â also Â helping Â ensure Â prosperity Â for Â t he Â region.â€? Â Â’Â‡Â? Â–Â‘ Ď?Â‹Â?ÂƒÂ?Â…Â‡ Â’Â”Â‘ÂˆÂ‡Â•Â•Â‹Â‘Â?ÂƒÂŽÂ• ÂƒÂ…Â”Â‘Â•Â• the Â regional Â business Â community, Â the Â awards Â recognise Â those Â individuals Â and Â organisations Â who Â have Â demonstrated Â Â•Â—Â’Â‡Â”Â‹Â‘Â” Â‡ÂšÂ…Â‡ÂŽÂŽÂ‡Â?Â…Â‡ Â‹Â? Â–ÂŠÂ‡Â‹Â” Ď?Â‹Â‡ÂŽÂ† Č‚ Â™ÂŠÂ‘ are Â t he Â very Â best Â in Â what Â t hey Â do. Â 0*(,>RL`TPSLZ[VULZ Based Â in Â the Â Dubai Â Financial Â Centre Â (DIFC), Â the Â ICAEW Â Middle Â East Â regional Â Â‘ÂˆĎ?Â‹Â…Â‡Â™ÂƒÂ•Â‘Â’Â‡Â?Â‡Â†Â‹Â?Í´Í˛Í˛ÍťÂƒÂ?Â†Â’Â”Â‘Â˜Â‹Â†Â‡Â• support Â to Â over Â 1,400 Â members Â and Â students, Â and Â works Â closely Â with Â governments, Â regulators Â and Â key Â stakeholders. Â The Â a ssociationâ€™s Â r ecent Â k ey Â m ilestones Â include Â the Â launch Â of Â the Â ICAEW Â Emiratisation Â scholarship Â scheme Â to Â attract Â local Â Emiratis Â into Â the Â profession Â and Â responding Â to Â various Â consultation Â papers Â on Â proposed Â changes Â to Â financial Â structures Â and Â regulations Â i n Â t he Â UAE. Â ICAEW Â also Â assists Â the Â Dubai Â Financial Â Services Â Authority Â (DFSA) Â with Â audit Â quality Â monitoring, Â and Â produces Â a Â series Â of Â thought Â leadership Â and Â technical Â events Â for Â both Â members Â and Â non Â members, Â w ithin Â t he Â G CC. Â
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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?
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 ϐ 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.ϐǡ ǯ 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 ϐ 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.
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 Â entered Â for Â the Â award Â because Â we Â are Â so Â proud Â of Â everything Â we Â have Â achieved Â at Â ADF Â during Â 2012, Â including Â â€“ Â improved Â business Â per for ma nce, Â excel lent Â c u s t omer Â ser v ice, Â r i g o r o u s Â r i s k Â m a n a g e m e n t , Â a n d Â s m o o t h Â internal Â processes Â â€“ Â that Â we Â wanted Â to Â share Â our Â achievement s Â w it h Â t he Â w ider Â business Â communit y. Â Â The Â ICAEW Â awards Â seemed Â an Â excellent Â opportunity Â to Â do Â t hat. Â The Â following Â day Â when Â you Â went Â back Â to Â Abu Â Dhabi, Â how Â did Â you Â share Â the Â news Â with Â y our Â c olleagues? Â A nd Â h ow Â d id Â y ou Â a s Â a Â team Â c elebrate? Â Â– Â™Â‡ ÂŠÂ‘ÂŽÂ† Âƒ Â™Â‡Â‡Â?ÂŽÂ› ÇŽÂŠÂ—Â†Â†ÂŽÂ‡ÇŻÇĄ ÂŽÂ‹Â?Â?Â‹Â?Â‰ Â‘Â—Â” Â‘ÂˆĎ?Â‹Â…Â‡Â•Â˜Â‹ÂƒÂ˜Â‹Â†Â‡Â‘Â…Â‘Â?ÂˆÂ‡Â”Â‡Â?Â…Â‡ÇĄÂ™ÂŠÂ‡Â”Â‡Â™Â‡Â…Â‡ÂŽÂ‡Â„Â”ÂƒÂ–Â‡
our Â successes Â and Â share Â our Â areas Â of Â focus Â and Â Â‘Â—Â” Â…ÂŠÂƒÂŽÂŽÂ‡Â?Â‰Â‡Â• ÂˆÂ‘Â” Â–ÂŠÂ‡ Â™Â‡Â‡Â? ÂƒÂŠÂ‡ÂƒÂ†Ç¤ Ď?Â‹Â?Â† Â‹Â– Âƒ very Â effective Â tool Â to Â ensure Â members Â of Â staff Â are Â recognised Â for Â their Â efforts Â and Â we Â stay Â on Â track Â in Â terms Â of Â the Â company Â and Â individual Â objectives. Â I Â am Â pretty Â sure Â that Â the Â ADF Â Head Â of Â Finance Â had Â posted Â t he Â news Â on Â various Â social Â networking Â sites Â before Â the Â end Â of Â the Â evening Â though. Â We Â celebrated Â w ith Â a Â team Â lunch. Now Â that Â you Â have Â been Â declared Â the Â Chartered Â Accountant Â of Â t he Â Year, Â what Â would Â you Â do Â differently Â in Â 2013? Â How Â would Â you Â describe Â your Â mission Â in Â t he Â profession? Â I Â am Â not Â sure Â winning Â the Â award Â will Â encourage Â me Â to Â do Â anything Â differently Â in Â 2013, Â however Â I Â hope Â t hat Â it Â inspires Â a ll Â A DF Â staff Â to Â increase Â t heir Â efforts Â as Â it Â shows Â that Â even Â a Â relatively Â small Â company Â can Â achieve Â great Â things. Â The Â values Â which Â t he Â ICAEW Â enshrines Â â€“ Â particularly Â around Â transparency Â and Â integrity Â â€“ Â are Â values Â which Â are Â at Â the Â core Â of Â the Â ADF Â customer Â service Â offering Â and Â I Â therefore Â hope Â the Â awareness Â encourages Â us Â to Â continue Â to Â act Â as Â a Â catalyst Â in Â the Â banking Â ÂƒÂ?Â†Ď?Â‹Â?ÂƒÂ?Â…Â‹ÂƒÂŽÂ•Â‡Â”Â˜Â‹Â…Â‡Â•Â•Â‡Â…Â–Â‘Â”Â‹Â?Â–ÂŠÂ‡Ç¤ Â„Â‡ÂŽÂ‹Â‡Â˜Â‡ my Â mission Â is Â the Â same Â as Â any Â other Â member Â of Â the Â ICAEW Â â€“ Â to Â always Â act Â with Â integrity Â and Â transparency Â and Â to Â use Â your Â skills Â to Â improve Â t he Â business Â performance Â of Â whichever Â organisation Â you Â work Â w ith. Who Â has Â been Â your Â mentor Â throughout Â your Â c areer? Â I Â have Â had Â different Â mentors Â in Â my Â professional Â career. Â Â I Â started Â my Â career Â with Â Deloitte Â in Â Â–ÂŠÂ‡ Â™ÂŠÂ‡Â”Â‡ Â™ÂƒÂ• ÂŽÂ—Â…Â?Â› Â‡Â?Â‘Â—Â‰ÂŠ Â–Â‘ ÂŠÂƒÂ˜Â‡ Â–ÂŠÂ”Â‡Â‡ mentors Â during Â my Â t ime Â t here Â â€“ Â Steve Â Wilkinson, Â Les Â Platt Â and Â Sharon Â Thorne. Â All Â three Â were Â completely Â different Â characters. Â Â I Â learnt Â so Â much Â in Â my Â six Â years Â there Â which Â have Â helped Â me Â in Â my Â career Â to Â date. Â The Â breadth Â of Â opportunity Â Â‘ÂˆÂˆÂ‡Â”Â‡Â†Â–Â‘Â?Â‡ÂƒÂ–Â–ÂŠÂ‡Ď?Â‹Â”Â?ÇĄÂƒÂŽÂ‘Â?Â‰Â™Â‹Â–ÂŠÂ–ÂŠÂ‡Â‡ÂšÂ…Â‡ÂŽÂŽÂ‡Â?Â– training Â and Â practical Â experience Â really Â put Â me Â in Â a Â great Â position Â to Â have Â a Â successful Â career Â in Â Financial Â Services. Â Â• Â–ÂŠÂ‡ ÂŠÂ‹Â‡Âˆ Â’Â‡Â”ÂƒÂ–Â‹Â?Â‰ ÂˆĎ?Â‹Â…Â‡Â” Â‘Âˆ Â„Â— ÂŠÂƒÂ„Â‹ Finance Â what Â does Â your Â work Â entail? Â My Â role Â is Â very Â broad Â â€“ Â which Â is Â one Â of Â t he Â t hings Â I Â love Â about Â it. Â I Â have Â responsibility Â for Â Finance, Â Risk Â Management, Â Client Â Care Â and Â Quality Â Assurance, Â Human Â Resources, Â Operations, Â IT Â and Â Change Â Management. Â Therefore Â each Â day Â
20 January 2013
ACCOUNTANCY & FINANCE AWARDS
can Â include Â staff Â development Â issues, Â client Â service Â improvements, Â Information Â Security Â Â—Â’Â†ÂƒÂ–Â‡Â•ÇĄĎ?Â‹Â?ÂƒÂ?Â…Â‹ÂƒÂŽÂ’Â‡Â”ÂˆÂ‘Â”Â?ÂƒÂ?Â…Â‡Â”Â‡Â˜Â‹Â‡Â™Â•ÇĄÂ’Â”Â‘Â†Â—Â…Â– enhancements Â among Â others. Â Overall Â though, Â I Â see Â my Â role Â as Â one Â of Â strategic Â leadership, Â as Â I Â see Â it, Â the Â fundamental Â role Â of Â the Â COO Â is Â to Â provide Â support Â to Â the Â Board Â and Â CEO Â to Â ensure Â that Â the Â strategic Â v ision Â and Â mission Â of Â A DF Â is Â successfully Â implemented Â and Â accomplished. What Â are Â the Â best Â and Â worst Â things Â about Â your Â job? Â The Â best Â things Â about Â my Â job Â are Â the Â people Â I Â work Â with Â and Â the Â breadth Â of Â the Â role. Â From Â working Â with Â the Â ADF Â Board Â of Â Directors Â on Â strategy Â and Â governance, Â through Â to Â mentoring Â our Â talented Â Emirati Â staff, Â to Â ensure Â they Â are Â developing Â along Â the Â lines Â of Â their Â career Â development Â plans, Â no Â day Â i s Â ever Â t he Â same. Â T he Â most Â challenging Â part Â of Â the Â role Â is Â the Â same Â ÂƒÂ• Â?Â‘Â•Â– Â‡ÂšÂ‡Â…Â—Â–Â‹Â˜Â‡Â• Č‚ Ď?Â‹Â?Â†Â‹Â?Â‰ Â–ÂŠÂ‡ Â”Â‹Â‰ÂŠÂ– Â™Â‘Â”Â?Č€ life Â balance Â and Â ensuring Â enough Â time Â in Â the Â working Â day Â is Â spent Â on Â strategic Â issues Â and Â ÂˆÂ‘Â”Â™ÂƒÂ”Â†Â’ÂŽÂƒÂ?Â?Â‹Â?Â‰ÂƒÂ•Â‘Â’Â’Â‘Â•Â‡Â†Â–Â‘Ď?Â‹Â”Â‡Ď?Â‹Â‰ÂŠÂ–Â‹Â?Â‰Ç¤ Please Â share Â with Â us Â your Â key Â career Â moments Â in Â the Â journey Â to Â becoming Â a Â Chartered Â Accountant. Â Â Well Â I Â took Â an Â interesting Â path Â to Â becoming Â a Â Chartered Â Accountant. Â I Â really Â wanted Â to Â emulate Â Sebastian Â Coe Â and Â become Â an Â Olympic Â 800 Â metre Â champion Â but Â a Â combination Â of Â injuries Â and Â lack Â of Â talent Â made Â me Â realise Â I Â had Â to Â choose Â a Â Â?Â‘Â”Â‡ ÇŽÂ•Â‡Â?Â•Â‹Â„ÂŽÂ‡ÇŻ Â‘Â…Â…Â—Â’ÂƒÂ–Â‹Â‘Â?Ç¤ ÂƒÂ…Â–Â—ÂƒÂŽÂŽÂ› Â•Â–Â—Â†Â‹Â‡Â† Geography Â as Â my Â undergraduate Â degree, Â where Â I Â specialised Â in Â the Â geographical Â distribution Â of Â crime. Â Perhaps Â more Â relevant Â than Â I Â thought, Â Â‰Â‹Â˜Â‡Â?Â•Â‘Â?Â‡Â‘ÂˆÂ–ÂŠÂ‡ÂŠÂ‹Â‰ÂŠÂ’Â”Â‘Ď?Â‹ÂŽÂ‡ÂƒÂ…Â…Â‘Â—Â?Â–Â‹Â?Â‰ÂˆÂ”ÂƒÂ—Â†Â• we Â have Â witnessed Â in Â the Â corporate Â world Â in Â the Â last Â few Â years. Â During Â the Â career Â fairs Â at Â Â‹Â˜Â‡Â”Â’Â‘Â‘ÂŽ Â?Â‹Â˜Â‡Â”Â•Â‹Â–Â› Â™ÂƒÂ• Â”Â‡ÂƒÂŽÂŽÂ› Â‹Â?Â’Â”Â‡Â•Â•Â‡Â† Â„Â› Â–ÂŠÂ‡Â’Â”Â‡Â•Â‡Â?Â–ÂƒÂ–Â‹Â‘Â?Â•Â?ÂƒÂ†Â‡Â„Â›Â–ÂŠÂ‡ÇŽÂ‹Â‰ÍśÇŻÂ…Â…Â‘Â—Â?Â–Â‹Â?Â‰ Firms Â and Â in Â particular Â Deloitte. Â The Â quality Â of Â the Â accounting Â t rainees Â and Â managers Â presenting Â at Â t he Â event Â (including Â Sharon, Â who Â later Â became Â one Â of Â my Â mentors) Â persuaded Â me Â t hat Â t hree Â years Â of Â training Â to Â become Â a Â Chartered Â Accountant Â seemed Â a Â good Â investment. Â I Â had Â always Â been Â pretty Â comfortable Â with Â numbers Â and Â economics Â and Â thought Â I Â would Â Â„Â‡ Âƒ Â?ÂƒÂ–Â—Â”ÂƒÂŽ Ď?Â‹Â–Ç¤ Â‹Â?Â† Â›Â‘Â—ÇĄ Â–ÂŠÂ‡ Ď?Â‹Â”Â•Â– Â–Â™Â‘ Â™Â‡Â‡Â?Â• of Â intense Â book-Ââ€?keeping Â training Â which Â I Â went Â through Â did Â make Â me Â have Â one Â or Â two Â moments Â
where Â I Â reconsidered Â my Â decision. Â Nonetheless Â I Â am Â pleased Â to Â say Â I Â achieved Â 1st Â time Â passes Â Â‹Â? ÂƒÂŽÂŽ Â‘Âˆ Â?Â› Â‡ÂšÂƒÂ?Â• ÂƒÂ?Â† Â‹Â? ÍłÍťÍťÍş Â“Â—ÂƒÂŽÂ‹Ď?Â‹Â‡Â† ÂƒÂ• Âƒ Chartered Â Accountant. Â Â In Â total Â I Â spent Â six Â g reat Â years Â at Â Deloitte Â â€“ Â working Â in Â the Â Assurance, Â Management Â Consulting, Â and Â Corporate Â Finance Â departments. Â Â I Â was Â even Â ÂŽÂ—Â…Â?Â› Â‡Â?Â‘Â—Â‰ÂŠ Â–Â‘ Â„Â‡ Â•Â‡Â…Â‘Â?Â†Â‡Â† Â–Â‘ Â–ÂŠÂ‡ ÂŠÂ‡ÂƒÂ† Â‘ÂˆĎ?Â‹Â…Â‡ in Â New Â York Â for Â t hree Â months Â where Â I Â worked Â on Â developing Â t he Â Deloitte Â audit Â methodologies, Â w ith Â a Â focus Â on Â value-Ââ€?added Â auditing. On Â the Â same Â issue, Â the Â role Â of Â accountants Â ÂŠÂƒÂ• Â„Â”Â‘ÂƒÂ†Â‡Â?Â‡Â†Ç¤ Â‘Â™ Â‹Â–ĚľÂ• Â?Â‘Â– Â‘Â?ÂŽÂ› Â…Â‘Â?Ď?Â‹Â?Â‡Â† Â–Â‘ technical, Â but Â also Â advisory Â and Â corporate Â strategy. Â Can Â you Â share Â with Â us Â about Â these Â changing Â roles Â in Â todayâ€™s Â globalised Â world? Â I Â agree Â that Â the Â role Â of Â the Â accountant Â has Â Â…ÂŠÂƒÂ?Â‰Â‡Â†ÂˆÂ”Â‘Â?ÇŽÂ„Â‘Â‘Â?ÇŚÂ?Â‡Â‡Â’Â‡Â”ÇŻÂ–Â‘ÇŽÂ•Â–Â”ÂƒÂ–Â‡Â‰Â‹Â…ÂƒÂ†Â˜Â‹Â•Â‘Â”ÇŻÇĄ although Â I Â t hink Â t hat Â most Â professions Â have Â found Â expectations Â increasing Â in Â recent Â years. Â It Â is Â a Â great Â honour Â and Â challenge Â and Â I Â think Â it Â makes Â the Â profession Â and Â a Â career Â in Â Finance Â a Â very Â promising Â proposition. Â I Â think Â the Â ICAEW Â is Â doing Â a Â great Â job Â of Â providing Â support Â to Â chartered Â accountants Â across Â the Â globe Â in Â balancing Â this Â new Â role. Â It Â is Â i mportant Â t hough Â f or Â accountants Â t o Â b e Â very Â clear Â i n Â w hat Â t heir Â r ole Â i s Â w ithin Â a n Â organisation Â and Â ensure Â an Â appropriate Â balance Â is Â in Â place Â 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 ϐ ϐ 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 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 ǤǯǢ ϐ ϐ 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 Ǥ ϐ 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 implementation i n 2011. Ensure you understand the bigger picture – if ǯ products, your market and the economic picture ϐϐ ϐ 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 ϐ ϐ Ǥ
22 January 2013
ACCOUNTANCY & FINANCE AWARDS
As Â a Â top Â Chartered Â Accountant Â how Â much Â Â†Â‡Â?ÂƒÂ?Â† Â†Â‘ Â›Â‘Â— ÂˆÂ‘Â”Â‡Â•Â‡Â‡ ÂˆÂ‘Â” Â“Â—ÂƒÂŽÂ‹Ď?Â‹Â‡Â† ÂƒÂ…Â…Â‘Â—Â?Â–ÂƒÂ?Â–Â• Â‹Â? Â–ÂŠÂ‡ Â‹Â†Â†ÂŽÂ‡ ÂƒÂ•Â– Â”Â‡Â‰Â‹Â‘Â? Â‹Â? Ď?Â‹Â˜Â‡ years Â time? Â For Â instance, Â what Â particular Â skills Â will Â be Â most Â in Â demand? Â And Â how Â will Â Â„Â—Â•Â‹Â?Â‡Â•Â•Â‡Â• Â‹Â? Â–ÂŠÂ‡ Â”Â‡Â‰Â‹Â‘Â? Â…ÂŠÂƒÂ?Â‰Â‡ Â‹Â? Ď?Â‹Â˜Â‡ Â›Â‡ÂƒÂ”Â• as Â a Â result Â of Â t he Â g lobal Â economic Â downturn? Â Â I Â hope Â that Â demand Â increases Â for Â Chartered Â Accountants Â in Â the Â Middle Â East Â over Â the Â next Â Ď?Â‹Â˜Â‡ Â›Â‡ÂƒÂ”Â•Ç¤ ÂŠÂ‡ Â‡Â…Â‘Â?Â‘Â?Â‹Â… Â’Â‡Â”ÂˆÂ‘Â”Â?ÂƒÂ?Â…Â‡ Â‘Âˆ Â–ÂŠÂ‡ region Â is Â improving Â along Â with Â an Â increase Â in Â regulatory Â reform, Â t ransparency Â and Â governance Â Â”Â‡Â“Â—Â‹Â”Â‡Â?Â‡Â?Â–Â• Â™ÂŠÂ‹Â…ÂŠ Â•ÂŠÂ‘Â—ÂŽÂ† Â?Â‡ÂƒÂ? Â™Â‡ÂŽÂŽ Â“Â—ÂƒÂŽÂ‹Ď?Â‹Â‡Â† accountants Â are Â in Â demand. Â Companies Â and Â government Â will Â be Â looking Â to Â Â™Â‡ÂŽÂŽ Â“Â—ÂƒÂŽÂ‹Ď?Â‹Â‡Â† Â…ÂƒÂ?Â†Â‹Â†ÂƒÂ–Â‡Â• Â™Â‹Â–ÂŠ Â‹Â?Â–Â‡Â”Â?ÂƒÂ–Â‹Â‘Â?ÂƒÂŽ experience Â who Â can Â add Â value Â to Â their Â organisations. Â Businesses Â in Â the Â region Â have Â already Â changed Â as Â a Â result Â of Â the Â downturn. Â Firstly Â they Â are Â shifting Â their Â focus Â from Â West Â to Â East Â as Â it Â becomes Â clear Â t hat Â t he Â A sian Â economies Â are Â likely Â to Â outperform Â Europe Â in Â the Â future. Â Secondly Â t here Â is Â a Â g reater Â level Â of Â understanding Â at Â a Â Board Â level Â of Â the Â importance Â of Â effective Â Ď?Â‹Â?ÂƒÂ?Â…Â‹ÂƒÂŽ Â”Â‹Â•Â? Â?ÂƒÂ?ÂƒÂ‰Â‡Â?Â‡Â?Â– ÂƒÂ?Â† ÂƒÂ•Â•Â‘Â…Â‹ÂƒÂ–Â‡Â† governance Â standards. Â Accountants Â who Â have Â experience Â of Â international Â markets, Â who Â have Â managed Â t hrough Â a Â downturn Â should Â be Â well Â placed Â in Â t he Â job Â market. What Â is Â most Â important Â to Â you Â as Â an Â accountant Â when Â it Â comes Â to Â building Â a Â successful Â accounting Â team Â in Â your Â organisation? Â For Â me Â it Â does Â not Â matter Â what Â kind Â of Â team Â you Â are Â trying Â to Â build Â â€“ Â HR, Â accounting, Â business Â development Â and Â the Â like. Â The Â most Â important Â thing Â is Â that Â the Â team Â shares Â a Â common Â set Â of Â values Â and Â is Â clear Â about Â the Â objectives Â of Â the Â organisation Â and Â t heir Â own Â team. Â
company Â scorecard Â into Â individual Â goals. Â I Â am Â pleased Â to Â say Â that Â since Â introducing Â these Â concepts Â we Â have Â outperformed Â against Â budget Â and Â 2012 Â has Â been Â a Â record Â year Â for Â us Â in Â terms Â of Â business Â performance. What Â are Â some Â of Â your Â favourite Â gadgets, Â apps, Â tools, Â and Â products Â -Ââ€? Â especially Â related Â to Â social Â media? Â I Â like Â the Â Balanced Â Scorecard Â app Â in Â the Â iPad Â and Â also Â use Â an Â efficiency Â tool Â called Â ÇŽÂ‡Â•Â…Â—Â‡Â‹Â?Â‡ Â‘Â„Â‘Â–ÇŻ Â™ÂŠÂ‹Â…ÂŠ ÂŠÂ‡ÂŽÂ’Â• Â?Â‡ Â?Â‘Â?Â‹Â–Â‘Â” where Â I Â spend Â my Â time. Â Â I Â think Â LinkedIn Â is Â a Â great Â networking Â resource Â and Â our Â HR Â team Â uses Â it Â heavily Â for Â recruiting. Â Â I Â try Â and Â keep Â up Â with Â trends Â using Â Twitter Â and Â stay Â in Â touch Â with Â old Â f riends Â on Â Facebook. Â How Â do Â you Â spend Â your Â free Â time? Â What Â are Â your Â sporting Â interests, Â if Â any? Â I Â love Â competitive Â sports Â â€“ Â I Â used Â to Â compete Â at Â a Â pretty Â high Â level Â in Â Middle Â Distance Â running Â and Â Â•Â‹Â?Â…Â‡Â?Â‘Â˜Â‹Â?Â‰Â–Â‘Â–ÂŠÂ‡ÇĄÂŠÂƒÂ˜Â‡Â–ÂƒÂ?Â‡Â?Â—Â’Â”Â‹ÂƒÂ–ÂŠÂŽÂ‘Â?Ç¤ I Â competed Â in Â t he Â Abu Â Dhabi Â Triathlon Â for Â t he Â last Â couple Â of Â years. Â Â I Â enjoy Â the Â social Â element Â of Â the Â training Â and Â the Â competitive Â nature Â of Â the Â sport. Â Â I Â also Â enjoy Â watersports, Â tennis, Â travelling Â with Â my Â w ife Â Tunde Â and Â swimming Â w ith Â my Â daughters, Â Catrin Â and Â Maddie. Â Â We Â had Â an Â amazing Â adventure Â in Â Sri Â Lanka Â earlier Â in Â 2012 Â and Â I Â would Â really Â recommend Â a Â trip Â there Â to Â anyone Â â€“ Â it Â is Â an Â amazing Â and Â f riendly Â country. Â
FAMILY SUPPORT: Chris Taylor with his wife Tunde, during one of the family holidays abroad.
Common Â values Â and Â common Â goals Â are Â what Â Â†Â”Â‹Â˜Â‡Â•ÂƒÂ–Â‡ÂƒÂ?ÇŻÂ•Â’Â‡Â”ÂˆÂ‘Â”Â?ÂƒÂ?Â…Â‡ÂƒÂ?Â†ÂŠÂ‡ÂŽÂ’Â•Â–Â‘Â‡Â?Â•Â—Â”Â‡ they Â work Â together Â to Â support Â the Â company Â in Â achieving Â its Â aims. Â At Â ADF Â we Â have Â four Â very Â clearly Â stated Â values Â â€“ Â One Â Team, Â One Â Goal; Â Continuous Â Improvement; Â Valuing Â our Â Community; Â and Â Passion Â for Â Our Â Clients. Â We Â have Â a Â values Â recognition Â programme, Â and Â I Â t alk Â about Â the Â values Â at Â every Â gathering Â of Â our Â company. Â Â‡Â—Â•Â‡ÂƒÇŽÂ‹Â–Â‡ÇŻÂ˜Â‡Â”Â•Â‹Â‘Â?Â‘ÂˆÂ–ÂŠÂ‡ÂƒÂŽÂƒÂ?Â…Â‡Â†Â…Â‘Â”Â‡Â…ÂƒÂ”Â† methodology Â to Â ensure Â everyone Â is Â clear Â about Â ÇŻÂ• Â‘Â˜Â‡Â”ÂƒÂŽÂŽ Â‘Â„ÂŒÂ‡Â…Â–Â‹Â˜Â‡Â•ÇĄ ÂƒÂ?Â† Â™Â‡ Â…ÂƒÂ•Â…ÂƒÂ†Â‡ Â–ÂŠÂ‹Â• 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
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 ʹͲͳʹǤ 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.
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 “Mohasabaǳ ϐ ǯ Ǧ ϐ 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 ǡͺ͵ͶϐǤ
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 Ǧϐ ǡ 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 ϐ Ǥϐ was almost 150%, and the growth in the loan book was about 24%. Since his taking over the support function of the company, ϐ ϐ 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: ϐ 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, 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 ϐ ʹǡͷͲͲ 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 ϐǤ
OUTSTANDING INDIVIDUAL CONTRIBUTION TO THE ACCOUNTANCY PROFESSION Winner: Edward Quinlan – Chairman of ICAEW’s Advisory Board
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€˜Young Accountant of the Yearâ€™ at ICAEW Middle East Excellence Awards 32 January 2013
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 Â advert Â said Â that Â a Â major Â distributor Â based Â in Â Jebel Â Ali Â was Â looking Â for Â an Â accountant-Ââ€? cum-Ââ€?receptionist. Â I Â felt Â this Â summed Â up, Â at Â the Â time, Â the Â way Â accountants Â were Â often Â perceived Â in Â the Â UAE Â (and Â to Â an Â extent Â within Â the Â region) Â and Â just Â how Â far Â there Â was Â to Â go Â to Â educate Â the Â business Â Â…Â‘Â?Â?Â—Â?Â‹Â–Â› ÂŠÂ‡Â”Â‡ Â‹Â? Â–Â‡Â”Â?Â• Â‘Âˆ Â–ÂŠÂ‡ Â„Â‡Â?Â‡Ď?Â‹Â–Â• Â–ÂŠÂƒÂ– Â“Â—ÂƒÂŽÂ‹Ď?Â‹Â‡Â† Ď?Â‹Â?ÂƒÂ?Â…Â‡ Â’Â”Â‘ÂˆÂ‡Â•Â•Â‹Â‘Â?ÂƒÂŽÂ• Â…ÂƒÂ? Â„Â”Â‹Â?Â‰ Â–Â‘ Â„Â‘Â–ÂŠ companies Â and Â indeed Â government Â organisations. Â It Â is Â seven Â years Â since Â I Â saw Â that Â advertisement Â â€“ Â have Â things Â moved Â on Â from Â then Â or Â is Â the Â UAE Â still Â in Â dire Â need Â of Â a Â new Â understanding Â when Â it Â comes Â to Â professional Â accountancy? Â <2Z[HUKHYKZVM[YHPUPUN We Â established Â Phoenix Â Financial Â Training Â here Â in Â Dubai Â in Â August Â 2006 Â â€“ Â the Â stated Â aim Â was Â to Â bring Â UK Â standards Â of Â training Â and Â customer Â service Â to Â the Â UAE Â and Â eventually Â the Â wider Â region. Â We Â deliver Â Â‡ÂšÂƒÂ?Â‹Â?ÂƒÂ–Â‹Â‘Â? Â„ÂƒÂ•Â‡Â† Â–Â”ÂƒÂ‹Â?Â‹Â?Â‰ ÂˆÂ‘Â” Â“Â—ÂƒÂŽÂ‹Ď?Â‹Â…ÂƒÂ–Â‹Â‘Â?Â• such Â as Â ICAEW Â (English Â Chartered), Â CIMA Â (the Â Â“Â—ÂƒÂŽÂ‹Ď?Â‹Â…ÂƒÂ–Â‹Â‘Â? ÂƒÂ‹Â?Â‡Â† Â’Â”Â‹Â?ÂƒÂ”Â‹ÂŽÂ› ÂƒÂ– ÂƒÂ?ÂƒÂ‰Â‡Â?Â‡Â?Â– Accountants Â working Â in Â business Â rather Â than Â practice) Â and Â ACCA Â (the Â UK Â based, Â globally Â portable Â Â“Â—ÂƒÂŽÂ‹Ď?Â‹Â…ÂƒÂ–Â‹Â‘Â?Â™ÂŠÂ‹Â…ÂŠÂ‘ÂˆÂˆÂ‡Â”Â•ÂƒÂŠÂ‹Â‰ÂŠÂ†Â‡Â‰Â”Â‡Â‡Â‘ÂˆĎ?ÂŽÂ‡ÂšÂ‹Â„Â‹ÂŽÂ‹Â–Â› to Â candidates Â wanting Â to Â have Â options Â on Â how Â to Â Â’Â—Â”Â•Â—Â‡Â–ÂŠÂ‡Â‹Â”Â…ÂƒÂ”Â‡Â‡Â”Â•Â‹Â?ÂƒÂŽÂŽĎ?Â‹Â‡ÂŽÂ†Â•ČŒÂƒÂ?Â†ÂŠÂƒÂ˜Â‡Â†Â‡ÂŽÂ‹Â˜Â‡Â”Â‡Â† Â‘Â˜Â‡Â” Â–ÂŠÂƒÂ– Â–Â‹Â?Â‡ Â?ÂƒÂ?Â› ÂŠÂ—Â?Â†Â”Â‡Â†Â• Â‘Âˆ Â?Â‡Â™ÂŽÂ› Â“Â—ÂƒÂŽÂ‹Ď?Â‹Â‡Â† accountants Â into Â the Â UAE Â job Â market Â and Â beyond. Â It Â is Â important Â to Â remember Â that Â as Â a Â training Â provider Â we Â only Â do Â part Â of Â the Â job. Â Our Â focus Â is Â on Â Â†Â‡ÂŽÂ‹Â˜Â‡Â”Â‹Â?Â‰Ď?Â‹Â”Â•Â–Â…ÂŽÂƒÂ•Â•Â–Â—Â‹Â–Â‹Â‘Â?Â–Â‘Â•Â—Â’Â’Â‘Â”Â–Â–ÂŠÂ‡Â•Â‡Č‹ÂŽÂƒÂ”Â‰Â‡ÂŽÂ›ČŒ young Â people Â to Â pass Â their Â examinations Â -Ââ€? Â however Â to Â become Â a Â recognised Â member Â of Â these Â Institutes Â it Â is Â necessary Â to Â not Â only Â pass Â exams, Â but Â acquire Â around Â three Â years Â of Â relevant Â practical Â experience Â and Â it Â is Â thoroughness Â of Â this Â combination Â that Â
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€˜Young Accountant of the Yearâ€™. In themselves, they define a microcosm of the growing band of young finance professionals in the region.
potentially Â adds Â so Â much Â for Â businesses. Â ;LJOUPJHSWYHJ[PJLVMHJJV\U[HUJ` ÂŠÂ› ÂƒÂ”Â‡ Â“Â—ÂƒÂŽÂ‹Ď?Â‹Â‡Â† ÂƒÂ…Â…Â‘Â—Â?Â–ÂƒÂ?Â–Â• Â•Â‘ Â˜ÂƒÂŽÂ—ÂƒÂ„ÂŽÂ‡ Â–Â‘ Â„Â—Â•Â‹Â?Â‡Â•Â•Â‡Â•ÇŤÂ‰ÂƒÂ‹Â?Â‰Â‘Â‹Â?Â‰Â„ÂƒÂ…Â?Â–Â‘Â–ÂŠÂ‡Â…ÂŽÂƒÂ•Â•Â‹Ď?Â‹Â‡Â†Â’ÂƒÂ‰Â‡Â• it Â was Â (and Â unfortunately Â still Â is) Â common Â practice Â to Â see Â companies Â looking Â for Â a Â candidate Â who Â possessed Â â€˜a Â degree Â in Â accountancy Â or Â an Â MBA Â and Â also Â fourteen Â years Â in Â the Â role Â of Â Chief Â Accountant Â or Â Financial Â Controller Â in Â a Â clothing Â wholesaler Â based Â in Â the Â UAEâ€™, Â I Â want Â to Â pull Â this Â apart Â a Â little Â to Â reveal Â the Â problems Â we Â sometimes Â face... 1. Â The Â degree Â â€“ Â The Â universities Â here, Â and Â indeed Â around Â the Â world, Â do Â a Â fabulous Â job Â in Â educating Â young Â Â’Â‡Â‘Â’ÂŽÂ‡ ÂƒÂ?Â† Â–ÂŠÂ‹Â• Â‹Â?Â…ÂŽÂ—Â†Â‡Â• Â•Â’Â‡Â…Â‹Ď?Â‹Â… ÂˆÂ—Â”Â–ÂŠÂ‡Â” Â‡Â†Â—Â…ÂƒÂ–Â‹Â‘Â? Â‹Â? Â–ÂŠÂ‡ Ď?Â‹Â?ÂƒÂ?Â…Â‹ÂƒÂŽ Ď?Â‹Â‡ÂŽÂ†Ç¤ Â‘Â™Â‡Â˜Â‡Â”ÇĄ Â‹Â– Â•ÂŠÂ‘Â—ÂŽÂ† Â?Â‡Â˜Â‡Â” Â„Â‡ presumed Â that Â a Â college Â degree Â teaches Â young Â people Â to Â be Â accountants Â -Ââ€? Â the Â focus Â is Â entirely Â different, Â being Â based Â far Â more Â on Â concepts Â and Â theories, Â rather Â than Â the Â technical Â practice Â of Â accountancy. Â This Â is Â sometimes Â doubted Â in Â some Â parts Â of Â the Â world Â but Â it Â should Â be Â remembered Â that Â in Â the Â very Â highly Â competitive Â UK Â market Â the Â â€˜Big Â 4â€™ Â happily Â recruit Â graduates Â from Â all Â disciplines Â â€“ Â their Â view Â is Â that Â they, Â along Â with Â the Â training Â provider, Â will Â teach Â the Â young Â people Â to Â be Â accountants. Â What Â they Â want Â are Â the Â best Â people Â and Â the Â name Â of Â the Â degree Â (be Â it Â accountancy Â or Â geology) Â largely Â does Â not Â really Â count, Â indeed Â I Â have Â often Â heard Â them Â comment Â that Â they Â may Â positively Â discriminate Â against Â Accountancy Â graduates Â on Â the Â basis Â that Â they Â want Â to Â train Â the Â students Â from Â scratch Â with Â no Â preconceptions. Â 2. Â The Â MBAČ‚ÂŠÂ‹ÂŽÂ•Â–Â–ÂŠÂ‡Â‹Â•ÂƒÂ„Â”Â‹ÂŽÂŽÂ‹ÂƒÂ?Â–Â“Â—ÂƒÂŽÂ‹Ď?Â‹Â…ÂƒÂ–Â‹Â‘Â? and Â provides Â true Â insight Â into Â the Â workings Â of Â a Â business Â and Â its Â environment, Â it Â is Â still Â a Â very Â general Â Â“Â—ÂƒÂŽÂ‹Ď?Â‹Â…ÂƒÂ–Â‹Â‘Â?ÂƒÂ?Â†Â‹Â•Â?Â‘Â•Â–Â…Â‡Â”Â–ÂƒÂ‹Â?ÂŽÂ›Â?Â‘Â–ÂƒÂ•Â—Â„Â•Â–Â‹Â–Â—Â–Â‡ÂˆÂ‘Â” three Â years Â of Â technical Â accountancy Â training. Â I Â see Â the Â depth Â and Â breadth Â of Â material Â our Â students Â have Â to Â cover Â in Â all Â aspects Â of Â Financial Â Reporting, Â Management Â Accounting, Â Budgeting Â and Â Control Â along Â with Â related Â disciplines Â in Â the Â areas Â of Â Treasury, Â Taxation Â and Â Auditing Â and Â know Â that Â a Â Â‰Â‡Â?Â‡Â”ÂƒÂŽÂ‹Â•Â– Â“Â—ÂƒÂŽÂ‹Ď?Â‹Â…ÂƒÂ–Â‹Â‘Â?ÇĄ Â‹Â”Â”Â‡Â•Â’Â‡Â…Â–Â‹Â˜Â‡ Â‘Âˆ Â–ÂŠÂ‡ ÂŽÂ‡Â˜Â‡ÂŽ it Â is Â pitched Â at, Â is Â no Â substitute Â for Â the Â integrity Â of Â Â–ÂŠÂ‹Â•Â–Â”ÂƒÂ‹Â?Â‹Â?Â‰Ç¤Â“Â—ÂƒÂŽÂ‹Ď?Â‹Â‡Â†Â•Â–ÂƒÂˆÂˆÂŠÂƒÂ˜Â‡Â–ÂŠÂ‡Â‹Â”Â’ÂŽÂƒÂ…Â‡Â‹Â? businesses Â but Â not Â as Â accountants. Â 3. Â The Â fourteen Â years Â â€˜in Â the Â same Â jobâ€™ Â â€“ Â This Â is Â simply Â a Â replacement Â for Â the Â professional Â Â“Â—ÂƒÂŽÂ‹Ď?Â‹Â…ÂƒÂ–Â‹Â‘Â? Â–ÂŠÂ‡Â› Â•ÂŠÂ‘Â—ÂŽÂ† ÂŠÂƒÂ˜Â‡Ç¤ Âˆ Â–ÂŠÂ‡Â› ÂŠÂƒÂ˜Â‡ Â„Â‡Â‡Â? doing Â this Â same Â job, Â in Â the Â same Â industry, Â in Â the Â same Â location Â for Â 14 Â years Â why Â would Â they Â want Â 33
to Â come Â and Â do Â the Â same Â thing Â â€“ Â if Â they Â do Â then, Â is Â this Â the Â type Â of Â person Â you Â want? Â A Â thorough Â technical Â training Â focuses Â on Â building Â skills Â that Â are Â transferable Â across Â industries Â and Â processes. Â‘Â™ÂŠÂƒÂ–Â‹Â•Â–ÂŠÂ‡ÂƒÂ?Â•Â™Â‡Â”ÇŤÂŠÂ‡ÂŠÂ—Â‰Â‡Â„Â‡Â?Â‡Ď?Â‹Â–Â‘ÂˆÂ’Â”Â‘ÂˆÂ‡Â•Â•Â‹Â‘Â?ÂƒÂŽ Â“Â—ÂƒÂŽÂ‹Ď?Â‹Â…ÂƒÂ–Â‹Â‘Â? Â–Â”ÂƒÂ‹Â?Â‹Â?Â‰ Â‹Â? ÂƒÂ…Â…Â‘Â—Â?Â–ÂƒÂ?Â…Â› ÂƒÂ?Â† Ď?Â‹Â?ÂƒÂ?Â…Â‡ Â‹Â• not Â only Â based Â in Â the Â skills Â and Â knowledge Â acquired, Â Â„Â—Â– Â–ÂŠÂ‡ Â†Â‡Â˜Â‡ÂŽÂ‘Â’Â‡Â† Â…Â‘Â?Ď?Â‹Â†Â‡Â?Â…Â‡ Â–Â‘ Â„Â‡ ÂƒÂ„ÂŽÂ‡ Â–Â‘ Â†Â‡Â’ÂŽÂ‘Â› these Â attributes Â into Â a Â variety Â of Â situations. Â ÂŠÂ‡ Â’Â”Â‘ÂˆÂ‡Â•Â•Â‹Â‘Â?ÂƒÂŽÂŽÂ› Â“Â—ÂƒÂŽÂ‹Ď?Â‹Â‡Â† Â’Â‡Â”Â•Â‘Â? Â…ÂƒÂ? Â?Â‘Â˜Â‡ comfortably Â between Â roles Â and Â industries Â â€“ Â their Â underlying Â understanding Â of Â the Â way Â business Â ÂƒÂ?Â† Ď?Â‹Â?ÂƒÂ?Â…Â‡ Â™Â‘Â”Â?Â• ÂƒÂ?Â† Â–ÂŠÂ‡ Â•Â›Â•Â–Â‡Â?Â• ÂƒÂ?Â† Â’Â”Â‘Â…Â‡Â•Â•Â‡Â• necessary Â to Â manage Â and Â report Â on Â this Â will Â allow Â them Â to Â easily Â adapt Â to Â all Â situations Â and Â requirements. Â @V\UNHTIP[PV\ZHJOPL]LYZ At Â Phoenix Â we Â have Â been Â at Â the Â forefront Â of Â developing Â such Â people Â now Â for Â six Â years Â and Â we Â ÂƒÂ”Â‡Â…Â‘Â?Ď?Â‹Â†Â‡Â?Â–Â–ÂŠÂƒÂ–Â–ÂŠÂ‡Â„Â—Â•Â‹Â?Â‡Â•Â•Â‡Â•ÂƒÂ?Â†Â‡Â?Â–Â‹Â–Â‹Â‡Â•Â–ÂŠÂ‡Â› ÂŒÂ‘Â‹Â? ÂˆÂ‡Â‡ÂŽ Â–ÂŠÂ‡ Â„Â‡Â?Â‡Ď?Â‹Â– Â‡Â˜Â‡Â”Â› Â†ÂƒÂ› Â‘Âˆ Â‡Â?Â’ÂŽÂ‘Â›Â‹Â?Â‰ Â–ÂŠÂ‡Â•Â‡ talented Â young Â professionals Â in Â their Â business. At Â the Â recent Â ICAEW Â Middle Â East Â Awards Â we Â were Â proud Â to Â see Â four Â of Â our Â previous Â and Â current Â students Â making Â up Â the Â nominations Â list Â for Â â€˜Young Â Â…Â…Â‘Â—Â?Â–ÂƒÂ?Â– Â‘Âˆ Â–ÂŠÂ‡ Â‡ÂƒÂ”ÇŻÇ¤ Â? Â–ÂŠÂ‡Â?Â•Â‡ÂŽÂ˜Â‡Â• Â–ÂŠÂ‡Â› Â†Â‡Ď?Â‹Â?Â‡ ÂƒÂ?Â‹Â…Â”Â‘Â…Â‘Â•Â?Â‘ÂˆÂ–ÂŠÂ‡Â‰Â”Â‘Â™Â‹Â?Â‰Â„ÂƒÂ?Â†Â‘ÂˆÂ›Â‘Â—Â?Â‰Ď?Â‹Â?ÂƒÂ?Â…Â‡ professionals Â in Â the Â region. Â Nauman Â Mian Â â€“ Â a Â dedicated Â young Â man Â who Â has Â completed Â his Â ACCA Â and Â decided Â to Â â€˜top Â upâ€™ Â this Â Â“Â—ÂƒÂŽÂ‹Ď?Â‹Â…ÂƒÂ–Â‹Â‘Â?Â„Â›Â•Â–Â—Â†Â›Â‹Â?Â‰ÂˆÂ‘Â”ÇĄÂƒÂ?Â†Â”Â‡Â…Â‡Â?Â–ÂŽÂ›ÂƒÂ…ÂŠÂ‹Â‡Â˜Â‹Â?Â‰ÇĄ ÂŠÂ‹Â• Â“Â—ÂƒÂŽÂ‹Ď?Â‹Â…ÂƒÂ–Â‹Â‘Â? Â‹Â? ÂƒÂ†Â†Â‹Â–Â‹Â‘Â?Ç¤ ÂƒÂ—Â?ÂƒÂ? ÂŠÂƒÂ• shown Â huge Â determination Â over Â recent Â years Â to Â balance Â work, Â family Â and Â study Â pressures Â at Â the Â Â•ÂƒÂ?Â‡Â–Â‹Â?Â‡ÂƒÂ•Â†Â‡Â˜Â‡ÂŽÂ‘Â’Â‹Â?Â‰ÂŠÂ‹Â•Â’Â”Â‘ÂˆÂ‡Â•Â•Â‹Â‘Â?ÂƒÂŽÂ•Â?Â‹ÂŽÂŽÂ•Ç¤Â‡Â‹Â• currently Â CFO Â of Â Bayt.com Â here Â in Â the Â UAE. Â Â Muhra Â Al Â Mulla Â â€“ Â a Â young Â Emirati Â lady Â who Â is Â now Â combining Â recent Â motherhood Â with Â her Â studies Â Â–Â‘Â™ÂƒÂ”Â†Â–ÂŠÂ‡ Â“Â—ÂƒÂŽÂ‹Ď?Â‹Â…ÂƒÂ–Â‹Â‘Â?Â™ÂŠÂ‹ÂŽÂ‡Â’Â—Â”Â•Â—Â‹Â?Â‰ÂŠÂ‡Â”
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 Â at Â Deloitte. Â Muhra Â is Â one Â of Â a Â select Â handful Â of Â students Â working Â under Â the Â auspices Â of Â the Â ICAEW Â Emiratisation Â study Â scheme Â and Â is Â exhibiting Â phenomenal Â skills Â in Â balancing Â all Â aspects Â of Â her Â life Â including Â her Â duties Â as Â wife, Â mother Â and Â employee Â Â™ÂŠÂ‹ÂŽÂ•Â–Â’Â”Â‘Â‰Â”Â‡Â•Â•Â‹Â?Â‰Â”ÂƒÂ’Â‹Â†ÂŽÂ›Â–ÂŠÂ”Â‘Â—Â‰ÂŠÂ–ÂŠÂ‡Â“Â—ÂƒÂŽÂ‹Ď?Â‹Â…ÂƒÂ–Â‹Â‘Â?Ç¤ Â Nanditha Â Ramanathan Â â€“ Â an Â extremely Â competent, Â intelligent Â and Â mature Â young Â lady, Â ÂƒÂ?Â†Â‹Â–ÂƒÂŠÂƒÂ•ÂŽÂ‹Â˜Â‡Â†ÂŠÂ‡Â”Â‡Â‹Â?Â–ÂŠÂ‡Â™Â‹Â–ÂŠÂŠÂ‡Â”Â’ÂƒÂ”Â‡Â?Â–Â• since Â the Â age Â of Â one. Â She Â has Â completed Â her Â ACCA Â Â“Â—ÂƒÂŽÂ‹Ď?Â‹Â…ÂƒÂ–Â‹Â‘Â? ÂƒÂ?Â† Â‹Â• Â…Â—Â”Â”Â‡Â?Â–ÂŽÂ› Â™Â‘Â”Â?Â‹Â?Â‰ Â™Â‹Â–ÂŠ in Â their Â Management Â Consultancy Â department. Â ÂƒÂ?Â†Â‹Â–Âƒ Â‹Â• Âƒ Â…Â‘Â?Ď?Â‹Â†Â‡Â?Â– ÂƒÂ?Â† Â–ÂƒÂŽÂ‡Â?Â–Â‡Â† Â’Â—Â„ÂŽÂ‹Â… Â•Â’Â‡ÂƒÂ?Â‡Â” who Â will, Â I Â am Â sure, Â go Â on Â to Â achieve Â great Â things Â Â‹Â?ÂŠÂ‡Â”Ď?Â‹Â?ÂƒÂ?Â…Â‡Â…ÂƒÂ”Â‡Â‡Â”Č‚Â•ÂŠÂ‡ÂŠÂ‘Â’Â‡Â•Â–Â‘Â?Â‘Â˜Â‡Â‘Â?Â–Â‘ÂŠÂ‡Â” MBA Â studies Â in Â the Â near Â future. Â Â Anam Â Sami Â â€“ Â Anam Â is Â an Â intellectually Â gifted Â young Â ÂŽÂƒÂ†Â›Â™ÂŠÂ‘Â‹Â•ÂƒÂ”Â‡ÂŽÂƒÂ–Â‹Â˜Â‡ÂŽÂ›Â?Â‡Â™Â”Â‡Â…Â”Â—Â‹Â–Â–Â‘Â–ÂŠÂ‡ Â”ÂƒÂ?Â?Â• here Â in Â Dubai. Â She Â has Â already Â achieved Â two Â global Â Ď?Â‹Â”Â•Â–Â’Â”Â‹ÂœÂ‡Â•Â‹Â?ÂƒÂ™ÂƒÂ?Â†Â—Â†Â‹Â–Â‹Â?Â‰ÂƒÂ•Â’ÂƒÂ”Â–Â‘ÂˆÂŠÂ‡Â” studies Â in Â the Â last Â two Â sittings Â and Â recently Â scored Â an Â ÂƒÂŽÂ?Â‘Â•Â–Â—Â?Â’Â”Â‡Â…Â‡Â†Â‡Â?Â–Â‡Â†ÍłÍ˛Í˛Î¨Â‹Â?ÂŠÂ‡Â”ÂƒÂ™Â’ÂƒÂ’Â‡Â”Ç¤Â‘Â–ÂŠ her Â employer Â and Â Phoenix Â are Â incredibly Â proud Â of Â the Â global Â footprint Â she Â is Â establishing Â for Â the Â region Â with Â Â–ÂŠÂ‡Â•Â‡Â”Â‡Â•Â—ÂŽÂ–Â•ÂƒÂ?Â†Â•ÂŠÂ‡Â•Â–Â‹ÂŽÂŽÂŠÂƒÂ•Ď?Â‹Â˜Â‡Â’ÂƒÂ’Â‡Â”Â•Â–Â‘Â‰Â‘Ç¤ For Â us Â at Â Phoenix, Â perhaps Â the Â most Â rewarding Â thing Â is Â to Â see Â the Â cultural, Â gender Â and Â ethnic Â diversity Â of Â Â–ÂŠÂ‹Â• Â?Â‘Â?Â‹Â?ÂƒÂ–Â‹Â‘Â? ÂŽÂ‹Â•Â– ÂƒÂ?Â† Â–ÂŠÂ‡ Â™ÂƒÂ› Â–ÂŠÂ‹Â• Â”Â‡Ď?ÂŽÂ‡Â…Â–Â• Â–ÂŠÂ‡ tremendous Â strength Â that Â this Â brings Â to Â Dubai. Â This Â diversity Â is Â one Â of Â the Â many Â reasons Â that, Â for Â so Â Â?ÂƒÂ?Â›Â‘ÂˆÂ—Â•ÇĄĎ?Â‹Â?Â†Â—Â„ÂƒÂ‹Â–Â‘Â„Â‡Â•Â—Â…ÂŠÂƒÂ™Â‘Â?Â†Â‡Â”ÂˆÂ—ÂŽÂ’ÂŽÂƒÂ…Â‡
Â–Â‘ÂŽÂ‹Â˜Â‡ÇĄÂ†Â‘Â„Â—Â•Â‹Â?Â‡Â•Â•ÂƒÂ?Â†Â„Â”Â‹Â?Â‰Â—Â’Â…ÂŠÂ‹ÂŽÂ†Â”Â‡Â?Ç¤Â‘Â™Â‡Â˜Â‡Â”ÇĄ the Â nomination Â of Â Muhra Â (who Â then Â went Â on Â to Â win Â the Â â€˜Young Â Accountant Â of Â the Â Year Â Awardâ€™ Â for Â 2012) Â is Â a Â sign Â of Â how Â things Â are Â developing Â in Â the Â UAE. There Â has Â been Â a Â positive Â drive Â on Â the Â part Â of Â all Â of Â Â—Â• Â‹Â?Â˜Â‘ÂŽÂ˜Â‡Â† Â‹Â? Â’Â”Â‘ÂˆÂ‡Â•Â•Â‹Â‘Â?ÂƒÂŽ Ď?Â‹Â?ÂƒÂ?Â…Â‹ÂƒÂŽ Â‡Â†Â—Â…ÂƒÂ–Â‹Â‘Â? Â‹Â? the Â region Â to Â encourage Â particularly Â local Â nationals, Â to Â see Â Accountancy Â as Â a Â valuable Â and Â meaningful Â career Â option. Â ,TPYH[PZ[HRPUN\WHJJV\U[PUN For Â many Â years Â now, Â given Â the Â opportunity, Â I Â have Â stressed Â to Â young Â Emiratis Â that Â the Â UAE Â is Â a Â country Â rich Â in Â resources Â and Â capital Â and Â it Â is Â incumbent Â on Â them Â to Â spend Â time Â developing Â the Â skills Â to Â enable Â Â–ÂŠÂ‡Â? Â–Â‘ ÂŽÂ‘Â‘Â? ÂƒÂˆÂ–Â‡Â” Â–ÂŠÂ‡Â‹Â” Â‘Â™Â? Ď?Â‹Â?ÂƒÂ?Â…Â‡Â•ÇĄ Â™Â‹Â–ÂŠÂ‘Â—Â– placing Â a Â long Â lasting Â over-Ââ€?reliance Â on Â expatriates Â like Â myself. This Â has Â been Â a Â long Â road Â and Â there Â have Â been Â times Â when Â it Â seems Â like Â little Â progress Â has Â been Â made Â but Â now Â to Â me Â all Â of Â a Â sudden Â we Â are Â seeing Â more Â young Â Emiratis Â in Â the Â classroom Â across Â all Â of Â our Â Â“Â—ÂƒÂŽÂ‹Ď?Â‹Â…ÂƒÂ–Â‹Â‘Â?Â•Ç¤ Â—ÂŠÂ”Âƒ Â‹Â• ÂŒÂ—Â•Â– Â‘Â?Â‡ÇĄ ÂƒÂŽÂ„Â‡Â‹Â– Â‡ÂšÂ…Â‡ÂŽÂŽÂ‡Â?Â– example Â of Â this. Â The Â young Â Emiratis Â we Â are Â seeing Â are Â extremely Â able Â and Â talented Â and Â as Â in Â her Â case, Â often Â incredibly Â determined. Â Despite Â the Â strong Â bias Â amongst Â many Â areas Â of Â the Â local Â community Â Â‹Â? Â•Â‡Â‡Â‹Â?Â‰ Ď?Â‹Â‡ÂŽÂ†Â• Â•Â—Â…ÂŠ ÂƒÂ• Â—Â?ÂƒÂ? Â‡Â•Â‘Â—Â”Â…Â‡Â• ÂƒÂ?Â† Marketing Â as Â comparatively Â attractive, Â there Â is Â now Â ÂƒÂ‰Â”Â‘Â™Â‹Â?Â‰Â”Â‡ÂƒÂŽÂ‹Â•ÂƒÂ–Â‹Â‘Â?ÇĄ Â–ÂŠÂ‹Â?Â?ÇĄÂ–ÂŠÂƒÂ–Ď?Â‹Â?ÂƒÂ?Â…Â‡Â‹Â•ÂƒÂ–Â–ÂŠÂ‡ centre Â of Â everything Â in Â business Â and Â commerce Â and Â Â„Â‡Â‹Â?Â‰ Âƒ Â“Â—ÂƒÂŽÂ‹Ď?Â‹Â‡Â† Â’Â”Â‘ÂˆÂ‡Â•Â•Â‹Â‘Â?ÂƒÂŽ ÂƒÂ…Â…Â‘Â—Â?Â–ÂƒÂ?Â– Â‘Â’Â‡Â?Â• oneâ€™s Â career Â up Â to Â many Â and Â varied Â opportunities Â including Â the Â highest Â 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 Â have Â changed Â in Â the Â region Â and Â in Â particular Â in Â the Â UAE. Â To Â a Â certain Â extent Â it Â was Â understandable Â up Â to Â 2008 Â to Â see Â accountants Â as Â bean Â counters Â simply Â adding Â up Â how Â much Â money Â businesses Â had Â made Â in Â the Â previous Â year. Â After Â all, Â in Â those Â days Â making Â money Â for Â the Â hugely Â entrepreneurial Â local Â and Â international Â businesses Â in Â the Â region Â was Â relatively Â simple. Â Financial Â planning Â and Â strategy, Â budgetary Â control Â and Â planning Â didnâ€™t Â seem Â to Â be Â required Â but Â the Â Ď?Â‹Â?ÂƒÂ?Â…Â‹ÂƒÂŽÂ…Â”Â‹Â•Â‹Â•Â…ÂŠÂƒÂ?Â‰Â‡Â†ÂƒÂŽÂŽÂ‘ÂˆÂ–ÂŠÂƒÂ–Ç¤ The Â businesses Â that Â survived Â and Â grew, Â and Â indeed Â are Â now Â thriving Â again, Â recognised Â the Â need Â for Â a Â ÂŠÂ—Â‰Â‡ Â•Â–Â‡Â’ Â…ÂŠÂƒÂ?Â‰Â‡ Â‹Â? Â–ÂŠÂ‡ Ď?Â‹Â?ÂƒÂ?Â…Â‹ÂƒÂŽ Â‹Â?Â–Â‡Â‰Â”Â‹Â–Â› Â‘Âˆ Â–ÂŠÂ‡Â‹Â” Â„Â—Â•Â‹Â?Â‡Â•Â•Â‡Â•ÂƒÂ?Â†Â‹Â–Â‹Â•Â–ÂŠÂ‡Â•Â‡Â›Â‘Â—Â?Â‰Ď?Â‹Â?ÂƒÂ?Â…Â‡Â’Â”Â‘ÂˆÂ‡Â•Â•Â‹Â‘Â?ÂƒÂŽÂ• that Â are Â now Â at Â the Â forefront Â of Â helping Â businesses Â to Â Â’Â—Â– Â–ÂŠÂ‡ Â?Â—Â…ÂŠ Â?Â‡Â‡Â†Â‡Â† Ď?Â‹Â?ÂƒÂ?Â…Â‹ÂƒÂŽ Â•Â–Â”ÂƒÂ–Â‡Â‰Â‹Â‡Â•ÇĄ Â…Â‘Â?Â–Â”Â‘ÂŽÂ• and Â reporting Â mechanisms Â into Â place. Â ,UZ\YPUNĂ„UHUJPHSPU[LNYP[` ÂŠÂ‡ ÂŠÂƒÂ• Â–ÂŠÂ‡ Ď?Â‹Â?ÂƒÂ?Â…Â‹ÂƒÂŽ Â”Â‡Â•Â‘Â—Â”Â…Â‡Â• ÂƒÂ?Â† Â–ÂƒÂŽÂ‡Â?Â– Â–Â‘ play Â on Â the Â world Â stage Â but Â if Â it Â wants Â to Â do Â this, Â I Â ÂƒÂ?Ď?Â‹Â”Â?ÂŽÂ›Â‘ÂˆÂ–ÂŠÂ‡Â‘Â’Â‹Â?Â‹Â‘Â?Â–ÂŠÂƒÂ–Â™Â‡Â™Â‹ÂŽÂŽÂ?Â‡Â‡Â†Â–Â‘ÂŠÂƒÂ˜Â‡ Â–ÂŠÂ‡ Â?Â‡Â…Â‡Â•Â•ÂƒÂ”Â› Ď?Â‹Â?ÂƒÂ?Â…Â‹ÂƒÂŽ Â•Â?Â‹ÂŽÂŽÂ• Â‡Â?Â„Â‡Â†Â†Â‡Â† Â‹Â?Â–Â‘ Â‘Â—Â” Â„Â—Â•Â‹Â?Â‡Â•Â•Â‡Â•ÂƒÂ?Â†Â‹Â?Â†Â‡Â‡Â† Â‘Â˜Â‡Â”Â?Â?Â‡Â?Â–Â†Â‡Â’ÂƒÂ”Â–Â?Â‡Â?Â–Â•Â–Â‘ Â‡Â?Â•Â—Â”Â‡Â–ÂŠÂ‡Ď?Â‹Â?ÂƒÂ?Â…Â‹ÂƒÂŽÂ‹Â?Â–Â‡Â‰Â”Â‹Â–Â›Â‘ÂˆÂ‘Â—Â”Â‡ÂšÂ’ÂƒÂ?Â•Â‹Â‘Â?Ç¤ ÂŠÂ‘Â‡Â?Â‹Âš Â?Â‘Â™ Â…Â‘Â?Â†Â—Â…Â–Â• Ď?Â‹Â?ÂƒÂ?Â…Â‹ÂƒÂŽ Â“Â—ÂƒÂŽÂ‹Ď?Â‹Â…ÂƒÂ–Â‹Â‘Â? Â„ÂƒÂ•Â‡Â† Â–Â”ÂƒÂ‹Â?Â‹Â?Â‰ ÂˆÂ‘Â” Â‘Â˜Â‡Â”Â?Â?Â‡Â?Â– Â‡Â’ÂƒÂ”Â–Â?Â‡Â?Â–Â• ÂƒÂ?Â† Sovereign Â Wealth Â funds Â in Â both Â Dubai Â and Â Abu Â Dhabi, Â in Â addition Â we Â produced Â well Â over Â one Â ÂŠÂ—Â?Â†Â”Â‡Â†Â?Â‡Â™ÂŽÂ›Â“Â—ÂƒÂŽÂ‹Ď?Â‹Â‡Â†ÂƒÂ…Â…Â‘Â—Â?Â–ÂƒÂ?Â–Â•Â‹Â?Í´Í˛ÍłÍ´ÂƒÂŽÂ‘Â?Â‡ â€“ Â they Â are Â much Â needed. Â
Nanditha Ramanathan IBTDPNQMFUFEIFS "$$"RVBMJmDBUJPO and is currently working with KPMG in their Management Consultancy EFQBSUNFOU
The Â receptionist-Ââ€?cum-Ââ€?accountant Â job Â adverts Â are Â still Â t here Â but Â letâ€™s Â hope Â it Â is Â not Â for Â much Â longer. Â For Â Phoenix Â in Â 2013, Â it Â is Â going Â to Â be Â more Â of Â t he Â same Â â€“ Â we Â w ill Â continue Â to Â t ry Â to Â spread Â t he Â word Â and Â t urn Â out Â g reat Â young Â professionals Â â€“ Â we Â have Â had Â the Â award Â winner Â in Â 2011 Â (Mitali Â Botadra) Â and Â now Â in Â 2012 Â so Â we Â will Â be Â hoping Â for Â a Â hat-Ââ€? trick Â in Â 2013. Â Â 35
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...
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.
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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. ϐ Ǥ ǡ ǡǤ ǲ ͳͲͲ ϐ ǡ ǯ ͳͲͲ Ǥ Ǧ Ǥ ǯ ǡǳ ϐǤ 5VUÄUHUJPHSKH[H ȋȌ ϐ Ǧϐ ǡ ϐǤ ǲ Ǥ ϐ ǡ Ǥ Ǧ ǡǳǤ ǲ ǳ ǡǲ ǯǡϐ ǳǤ 9LN\SH[VY`YLX\PYLTLU[Z
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ǯ Ǥ ǯ One of the criticisms that have been around ǯǡ ǯ corporate reporting is, it has become very Ǥǳ
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ǡ ǡ ϐ ǲ ǯ Ǥǳ Ǣǯ Ǥ Ǥ Ǥ ǡ ͳͻͺ͵Ͳ How do you determine w hat’s ǯ ǤǯͳʹͲ material t o r eport a nd w hat i s not? ǡ Ǥ ǯ ǡ ǲ ǲ Ǥϐ Ǥ Ǥ ǡǯǡ ǡ ǯǤǳ ǳǤ Ǥ Ǥ What advice would you offer ϐ Ǥ businesses w anting t o produce a n ǡ ǡ integrated r eport? ǡ Ǥ ǡ ǲ Ǥ Ǥǳ ǯ ǡ Do you t hink i ntegrated r eporting Ǥǳ ǤǤ will s pread w ithout r egulatory impetus? What a re t he m ajor c hallenges ǡ ǲ ǡ ǲ encountered s o f ar? Ǥǯ Ǥǯǯ ǲǡ Ǥ ǯ see w hether t he m arket f orces a Ǥǡ ϐ ǯ ǡ ǯǡǤ Ǥ ǡ ǡ ǯ Ǥ ǡ ǲǯ Ǥ probably ǯ ǡǯ b e t he b est w ay t o s tart ǤǳThe Accountant, UK Ǥǳ Ǥǯ 41 39
PERSONALITY & PRACTICE
From climbing corporate ladders to summiting worldâ€™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
LIMBING THE world’s Seven Summits is a serious undertaking even for any seasoned mountaineer.
For Mark Shuttleworth, the Chief ϐ ȋȌǡ ǯ Ǥ ǦǦ Ǥ ͳͻ ǡ Ǥ ǲ ǯ Ǥ Ǧ ǡǳ Ǥ (TVTLU[[OH[JOHUNLKT`SPML ǡ Ǥ ǲ Ǥ ǡ ǡ Ǥ ǯ 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.”
Accountant Middle East, ǡ ϐ ǡ ϐǤ 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.” ǡ Ǥ ̈́͵ ʹͲͳͳ Ǥ ʹͲͳʹ ǯ Ǧ ǦǦ ǡ Ǥ ǡ Ǥ ǡǯǦ Ǥ ;YHNLK`VU4V\U[,]LYLZ[ ǯ ϐ Ǥ ǡǲǥ Ǥǳ ǲ Ǥ ǡ ͳͲͲΨ Ȃ ϐ ǡǳǤ
DU’S MOBILESERVICES SUBSCRIBER BASE 44 January 2013
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LESSON LEARNT: “Today I value my time so much more than before. It is truly the most valuable thing we have,” says Mark.
Ǥ ͺͶ ͳͲͲ ǡ
Ǥ Ǥ ǲ Ǥ Ǥ Ǥ Ǥ ϐ ǡǳ Ǥ Ǥ 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.
PERSONALITY & PRACTICE
ϐ ǡ Ǣ ǲ ϐ ϐǤ ǡ ǡ ǡ Ǥ ȋ Ȍ Ǥ Ǥǳ
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Ǥǡ ǡǡ Ǣ Ǥ ǡ Ǥ ϐ Ǥ ǲ ϐ Ǥǡ ǡ ϐ Ǯǯ ǡ ϐ ǡ Ǣ ǡ Ƭ ǡ ǡǳǤ :OHYPUNZ[YH[LN`HUK]PZPVU Ǣ ǲAssessing the CFOǳ Ǧ of Accountant Middle EastǦ ̵ ǡ Ǧ Ǥ 46 January 2013
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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
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“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.” Ǥ Ǥǳ ǲ Ǧ ϐ Ǧ Ǥ Ǧ Ǥ Ǥ Ǥǳ >VYRPUN^P[OPU]LZ[VYZ ǡ ǡ ǦǤ ǲ Ǥ ǯ ǯ Ǥ Ǥ Ǩ Ǥǳ ǲ Ǥ ǡ Ǥ Ǥ ǡ Ǥ Ǥ ǯ ǡǳ Ǥ 47
FALLOUT FROM THE
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.
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 ϐ 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 ϐ 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.
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 ϐ such change is impossible in the short term, according to the Chartered Institute of Management Accountants ϐ ǡ Ǥ With any severe political change such as has ǡ ϐ are expected initially due to political unrest, which leads to reduced foreign investments, liquidity ϐ 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 ϐǤ ǲ 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, ϐ ǡ̶ ǦǤ ̶ can refer here to Tunisia and Egypt, both of which have promising growth opportunities. Neither can ̵ϐ 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
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 Ǥ ϐ of members across the region as markets slow down in Europe and elsewhere." He believes there is an opportunity to increase the ϐ Ǥ ̶ ϐ 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 ϐǡ 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 ϐ ϐ 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." ϐ 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
ϐ ϐ 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 ϐ 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 ϐ adversity such as the present global economic downturn. We could expect more s tudents in t he MENA region to seek internationally recognised ϐ the region." He agrees with Beynon's view that accountants are ϐ 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 ϐ Ǥ̶ :[YVUNL[OPJHSJVYL ϐ ϐ emulate other more developed regions, corruption will slowly decline.
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 ǡϐǤǡ 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 Ǥ ϐ great demand, but this can only increase as the oil revenues slowly run out." ϐ ʹͲ͵Ͳǡϐ has become acute. The indigenous population are ϐ religious background and the fact that they are Arabic speaking, Willsdon continues. ̶ ϐ ʹͲ 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 ϐ services -‐ means that we can only expect Islamic ϐ Ǥǳ “There are also many governments in the MENA region who envy the success enjoyed by countries ϐ and identity. Countries such as Bahrain, the UAE and Qatar to name a few are keen to develop themselves ϐ Ǥ̶ 7YVWLYJVYWVYH[LNV]LYUHUJL The Dubai chapter of the IMA has experienced increased ϐ ǡǦǤ "Organisations now look for accountants who ϐ 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 ϐ 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 ϐ Ǥ -‐ The Accountant, UK 51
MENA IPOs RAISE $2B
Saudi Arabia and the UAE come tops as regional hubs of public listing activity for investors
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€™s Middle East and North Africa (Mena) fourth quarter and year-Âend 2012 â€˜IPO Updateâ€™ report
AMOUNT RAISED BY SAUDI ARABIA THROUGH IPO IN 2012 52 January 2013
The Â year Â closed Â w ith Â regional Â companies Â raising Â a Â total Â of Â $339.8 Â million Â t hrough Â three Â initial Â public Â offerings Â (IPOs) Â in Â the Â fourth Â quarter Â of Â 2012. Â ÂŠÂ‹Â•Â‹Â•Â•Â‹Â‰Â?Â‹Ď?Â‹Â…ÂƒÂ?Â–ÂŽÂ›ÂŠÂ‹Â‰ÂŠÂ‡Â”Â–ÂŠÂƒÂ?Â–ÂŠÂ‡Í„Í´Í´Í¸Ç¤ÍłÂ?Â‹ÂŽÂŽÂ‹Â‘Â? raised Â in Â t he Â fourth Â quarter Â of Â 2011 Â and Â the Â $252.3 Â million Â raised Â in Â the Â third Â quarter Â of Â 2012. Phil Â Gandier, Â Menaâ€™ Â Head Â of Â Transaction Â Advisory Â Services, Â Ernst Â & Â Young Â says: Â â€œItâ€™s Â been Â an Â
eventful Â year Â  Â for Â the Â region, Â with Â mixed Â implications Â for Â the Â capital Â markets. Â Drawing Â comparisons Â over Â the Â last Â two Â years Â we Â have Â noticed Â a Â steady Â climb Â in Â the Â amount Â of Â funds Â being Â raised Â by Â IPOs Â possibly Â hinting Â that Â markets Â are Â inching Â towards Â better Â results. Â The Â outlook Â for Â 2013 Â will Â be Â to Â a Â great Â extent Â Â‹Â?Ď?ÂŽÂ—Â‡Â?Â…Â‡Â† Â„Â› Â‹Â?Â˜Â‡Â•Â–Â‘Â” Â•Â‡Â?Â–Â‹Â?Â‡Â?Â–Â•ÇĄ ÂƒÂ‰ÂƒÂ‹Â?Â•Â– Â–ÂŠÂ‡ backdrop Â of Â regional Â developments. Â We Â are Â Â…Â‘Â?Ď?Â‹Â†Â‡Â?Â– Â–ÂŠÂƒÂ– ÂƒÂ—Â†Â‹ Â”ÂƒÂ„Â‹Âƒ ÂƒÂ?Â† Â–ÂŠÂ‡ Â™Â‹ÂŽÂŽ continue Â to Â be Â the Â regional Â hubs Â of Â IPO Â activity Â for Â investors Â in Â 2013.â€? Â ;OYLL076ZPU8 Dallah Â Healthcare Â Holding Â Company Â led Â regional Â IPO Â deal Â sizes Â with Â its Â $143 Â million Â listing Â on Â the Â Saudi Â Stock Â Exchange Â (Tadawul) Â in Â November Â followed Â
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„Â›ÂŽ ÂœÂœ Â•ÂŽÂƒÂ?Â‹Â…ÂƒÂ?Â?ÂƒÂ–Í„ÍłÍ˛Í¸Â?Â‹ÂŽÂŽÂ‹Â‘Â?Â‘Â?Â–ÂŠÂ‡Â—Â•Â…ÂƒÂ– Securities Â Market Â in Â September. Â The Â third Â IPO Â in Â Q4 Â was Â Amira Â Nature Â foods Â listing Â on Â the Â New Â York Â Stock Â Exchange Â (NYSE) Â at Â $90m Â in Â October. Saudi Â Arabia Â led Â the Â country Â standings Â in Â 2012, Â raising Â $1.4 Â billion Â through Â seven Â IPOs Â in Â all Â of Â Í´Í˛ÍłÍ´ÇĄÂˆÂ‘ÂŽÂŽÂ‘Â™Â‡Â†Â„Â›Â–ÂŠÂ‡Â™Â‹Â–ÂŠÍ„Í´ÍšÍšÂ?Â‹ÂŽÂŽÂ‹Â‘Â?ÂƒÂ?Â† Â?ÂƒÂ?Â™Â‹Â–ÂŠÍ„Í´Í¸ÍśÇ¤ÍśÂ?Â‹ÂŽÂŽÂ‹Â‘Â?Ç¤Â‘Â”Â‘Â…Â…Â‘ÂƒÂ?Â†Â—Â?Â‹Â•Â‹Âƒ were Â the Â only Â other Â Mena Â countries Â with Â IPO Â activity Â in Â 2012. Phil Â Gandier Â says: Â â€œWhen Â we Â look Â back Â at Â the Â sector Â split Â of Â the Â IPOs Â that Â have Â taken Â place Â in Â 2012 Â we Â can Â see Â a Â broad Â spread Â of Â coverage Â Â™ÂŠÂ‡Â”Â‡Ď?Â‹Â˜Â‡Â™Â‡Â”Â‡Â‹Â?Â–ÂŠÂ‡ÂƒÂ–Â‡Â”Â‹ÂƒÂŽÂ•Â•Â‡Â…Â–Â‘Â”ÇĄÂˆÂ‘ÂŽÂŽÂ‘Â™Â‡Â† by Â three Â each Â in Â the Â Financial Â and Â Consumer Â Products Â sectors, Â two Â in Â the Â Healthcare Â sector Â and Â one Â IPO Â in Â t he Â Packaged Â Foods Â Sector.â€? .SVIHS076HJ[P]P[`
Â?ÍśÍ´Í˛ÍłÍ´ÇĄÂ–ÂŠÂ‡Â?ÂƒÂ”Â?Â‡Â–Â•Â”ÂƒÂ‹Â•Â‡Â†Í„ÍšÇ¤ÍľÂ„Â‹ÂŽÂŽÂ‹Â‘Â?Č‹Í´Íť IPOs), Â narrowing Â the Â lead Â on Â the Â Asian Â markets, Â which Â raised Â $8.8 Â billion Â (59 Â IPOs). Â European Â exchanges Â also Â saw Â something Â of Â a Â return Â to Â form, Â Â™Â‹Â–ÂŠÂ†Â‡ÂƒÂŽÂ˜ÂƒÂŽÂ—Â‡Â”Â‡ÂƒÂ…ÂŠÂ‹Â?Â‰Í„ÍšÇ¤Í˛Â„Â‹ÂŽÂŽÂ‹Â‘Â?Č‹Í´Í˛ Â•ČŒÇ¤ Globally, Â year-Ââ€?on-Ââ€?year, Â the Â picture Â for Â Q4 Â remained Â somewhat Â depressed. Â The Â number Â of Â Â†Â‡ÂƒÂŽÂ•ÂˆÂ‡ÂŽÂŽÍśÍ¸Î¨ÂˆÂ”Â‘Â?Í´ÍˇÍˇÂ†Â‡ÂƒÂŽÂ•Â‹Â?ÍśÍ´Í˛ÍłÍłÂ–Â‘ÍłÍľÍ¸ deals Â in Â Q4 Â 2012, Â whereas Â by Â capital Â raised, Â it Â Â‘Â?ÂŽÂ›ÂˆÂ‡ÂŽÂŽÍ¸Î¨ÂˆÂ”Â‘Â?Í„Í´ÍťÇ¤ÍłÂ„Â‹ÂŽÂŽÂ‹Â‘Â?Â‹Â?Â–ÂŠÂ‡Â•ÂƒÂ?Â‡Â’Â‡Â”Â‹Â‘Â† ÂŽÂƒÂ•Â–Â›Â‡ÂƒÂ”Â–Â‘Í„Í´ÍšÇ¤ÍľÂ„Â‹ÂŽÂŽÂ‹Â‘Â?Â–ÂŠÂ‹Â•Â“Â—ÂƒÂ”Â–Â‡Â”Ç¤ Maria Â Pinelli, Â Ernst Â & Â Youngâ€™s Â Global Â Vice Â Chair Â Strategic Â Growth Â Markets Â says: Â â€œThe Â weakening Â
economy, Â unstable Â equity Â market Â conditions Â and Â poor Â performances Â on Â some Â IPO Â transactions Â Â—Â?Â†Â‘Â—Â„Â–Â‡Â†ÂŽÂ›Â‹Â?Â’ÂƒÂ…Â–Â‡Â†Â‹Â?Â˜Â‡Â•Â–Â‘Â”Â•ÇŻÂ…Â‘Â?Ď?Â‹Â†Â‡Â?Â…Â‡Ç¤Â• expected, Â there Â has Â been Â lower Â IPO Â activity Â in Â Asia Â as Â the Â number Â of Â state Â owned Â enterprises Â (SOEs) Â coming Â to Â market Â has Â diminished. Â The Â ÂˆÂ‘Â—Â”Â–ÂŠ Â“Â—ÂƒÂ”Â–Â‡Â” Ď?Â‹Â‰Â—Â”Â‡Â• Â•ÂŠÂ‘Â™ Â–ÂŠÂƒÂ– Â–ÂŠÂ‡ market Â is Â back Â by Â deal Â number Â and Â rewarding Â companies Â that Â perform Â strongly. Â Europe Â has Â Â•Â‹Â‰Â?Â‹Ď?Â‹Â…ÂƒÂ?Â–ÂŽÂ› Â‹Â?Â…Â”Â‡ÂƒÂ•Â‡Â† ÂƒÂ…Â–Â‹Â˜Â‹Â–Â› Â‹Â? Â–ÂŠÂ‡ ÂˆÂ‘Â—Â”Â–ÂŠ quarter, Â compared Â to Â t he Â rest Â of Â t he Â year.â€? <:Z[VJRL_JOHUNLZHOLHKVM(ZPH The Â NYSE Â and Â NASDAQ Â exchanges Â raised Â $44.9 Â Â„Â‹ÂŽÂŽÂ‹Â‘Â? Â‹Â? ÍłÍ´Íş Â†Â‡ÂƒÂŽÂ•ÇĄ ÂƒÂ?Â† Â”ÂƒÂ‹Â•Â‡Â† ÍłÍťÎ¨ Â‘Âˆ global Â proceeds Â in Â 2012; Â leading Â the Â Shenzhen, Â Hong Â Kong Â and Â Shanghai Â stock Â exchanges Â ($11.1 Â billion Â via Â 129 Â deals, Â $9.8 Â billion Â via Â 44 Â deals, Â $5.3 Â billion Â v ia Â 25 Â deals Â respectively) Â for Â a Â second Â consecutive Â year. ÂŠÂ‡ Â•Â‹ÂƒÂ? Â‡ÂšÂ…ÂŠÂƒÂ?Â‰Â‡Â• Â‘Â?ÂŽÂ› Â…Â‘Â?Â’ÂŽÂ‡Â–Â‡Â† ÍľÍšÍľ Â†Â‡ÂƒÂŽÂ• Â™ÂŠÂ‹Â…ÂŠ Â”ÂƒÂ‹Â•Â‡Â† Í„ÍśÍšÂ„ÇĄ Â†Â‘Â™Â? ÍśÍ¸Î¨ Â„Â› Â…ÂƒÂ’Â‹Â–ÂƒÂŽ Â”ÂƒÂ‹Â•Â‡Â† Â…Â‘Â?Â’ÂƒÂ”Â‡Â†Â–Â‘Í´Í˛ÍłÍłČ‹Í¸ÍłÍ˛ Â•ÇĄÂ”ÂƒÂ‹Â•Â‹Â?Â‰Í„ÍşÍşÂ„Â‹ÂŽÂŽÂ‹Â‘Â?ČŒÇ¤ Other Â active Â stock Â exchanges Â included, Â Bursa Â ÂƒÂŽÂƒÂ›Â•Â‹ÂƒÇĄ Â”ÂƒÂ‹Â•Â‹Â?Â‰ Í„ÍšÇ¤Í¸ Â„Â‹ÂŽÂŽÂ‹Â‘Â? Â™Â‹Â–ÂŠ Â–ÂŠÂ”Â‡Â‡ Â‘Âˆ Â–ÂŠÂ‡ yearâ€™s Â top Â 20 Â deals, Â the Â HKEx Â ($9.8 Â billion Â in Â 44 Â deals), Â and Â the Â Shanghai Â and Â Shenzhen Â Stock Â ÂšÂ…ÂŠÂƒÂ?Â‰Â‡Â• Č‹ ÂƒÂ?Â† ÂŠÂ‹Â‡ÂšÂ–ČŒÇĄ Â”ÂƒÂ‹Â•Â‡Â† Í„ÍłÍ¸Ç¤Íś billion Â in Â 154 Â deals Â in Â total. â€œLooking Â ahead Â to Â 2013, Â we Â expect Â a Â better Â Â‘Â—Â–ÂŽÂ‘Â‘Â?ÇĄ Â™Â‹Â–ÂŠ Âƒ Â•Â–Â”Â‡Â?Â‰Â–ÂŠÂ‡Â?Â‹Â?Â‰ Â‡Â…Â‘Â?Â‘Â?Â› leading Â the Â recovery, Â followed Â in Â the Â latter Â half Â of Â the Â year Â by Â Europe Â and Â Asia. Â Reduced Â stock Â market Â volatility, Â assertive Â action Â from Â central Â banks Â and Â brighter Â economic Â prospects Â suggest Â 2013 Â could Â be Â the Â right Â time Â for Â companies Â currently Â in Â t he Â pipeline Â to Â list,â€? Â says Â Pinelli. Â Ç˛ÂŠÂ‡ÇĄÂ‘Â”Â‘Â?Â–Â‘ÇĄÂ‘Â?Â†Â‘Â?ÇĄ Â”ÂƒÂ?Â?ÂˆÂ—Â”Â–ÇĄÂƒÂ?Â†Â‘Â•Â…Â‘Â™ Â•Â–Â‘Â…Â?Â‡ÂšÂ…ÂŠÂƒÂ?Â‰Â‡Â•ÂŽÂ‹ÂˆÂ–Â‡Â†Â•Â‹Â‰Â?Â‹Ď?Â‹Â…ÂƒÂ?Â–ÂŽÂ›Â‹Â?Â–ÂŠÂ‡ÂˆÂ‘Â—Â”Â–ÂŠ quarter, Â thus Â suggesting Â that Â signs Â of Â stability Â in Â equity Â markets Â and Â supportive Â central Â bank Â policy Â are Â starting Â to Â take Â effect. Â We Â believe Â the Â market Â is Â likely Â to Â see Â smaller Â offerings Â initially Â Â™ÂŠÂ‹ÂŽÂ‡ Â?ÂƒÂ”Â?Â‡Â– ÂƒÂ?Â† Â‹Â?Â˜Â‡Â•Â–Â‘Â” Â…Â‘Â?Ď?Â‹Â†Â‡Â?Â…Â‡ Â„Â—Â‹ÂŽÂ†Â•ÇĄÇł the Â executive Â adds. Â 53
MOVERS & SHAKERS
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?
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 ǡϐ 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
ϐ ǡ 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 ϐ Ǥ 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 ϐ ϐ 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 ϐǫ 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 ǡ stories of individual glory t hat sometimes tend to Ȃǡϐ 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 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, ϐ Ǥ 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 ͳͻͺͶϐ Ǧϐ 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 ͳͻͻͷ ϐ 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 ϐ in motion to build one of the most successful ϐ ϐ crisis. Later I held other roles as CFO, Singapore and South-‐East Asia and COO for the global ϐ 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 ϐ Ǥ 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 ϐ 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 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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SLEAZE Bribery and corruption in the Middle East is no longer ‘simply a cost of doing business’
58 January 2013
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
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 (‘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)
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
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 ϐǡǡ 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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‘GET GOING. MOVE FORWARD’ Khalil Fawaz’s journey from CFO to CEO of Morgan International is awe inspiring and worthy of admiration
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 ϐ ǡ accountants to evolve with the times. And ϐ to be t he way forward. This is why K halil’s journey ǡϐ
64 January 2013
the new CEO of Morgan International is inspiring and indicative of the t imes. (MVYJL[OH[JYLH[LZ[OLLKNL ǡ ϐ 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 ǡ Ǧ ǡ ǡǳ ǡ ǲ my eyes set on the top job and each career move provided me with a solid foundation
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‘Â‰Â‹Â•Â–Â‹Â…Â•ÇĄ ÂƒÂ…Â‹ÂŽÂ‹Â–Â› ÂƒÂ?ÂƒÂ‰Â‡Â?Â‡Â?Â–ÇĄ ÂƒÂ”Â?Â‡Â–Â‹Â?Â‰ ÂƒÂ?Â† Human Â Resources. Â Â‹Â”Â•Â–Â‡Â•Â–ÂƒÂ„ÂŽÂ‹Â•ÂŠÂ‡Â†Â‹Â?Â‡Â‹Â”Â—Â–Â‹Â?ÍłÍťÍťÍˇÇĄÂ–ÂŠÂ‡Ď?Â‹Â”Â?Â‹Â•Â?Â‘Â™ present Â across Â 34 Â locations Â and Â helps Â thousands Â of Â candidates Â each Â year Â to Â succeed. Â Morgan Â
Â?Â–Â‡Â”Â?ÂƒÂ–Â‹Â‘Â?ÂƒÂŽÂ‘ÂˆÂˆÂ‡Â”Â•Â™Â‘Â”Â?Â•ÂŠÂ‘Â’Â•ÇĄÂ‹Â?ÇŚÂŠÂ‘Â—Â•Â‡Â–Â”ÂƒÂ‹Â?Â‹Â?Â‰ ÂƒÂ?Â†ÂˆÂ—ÂŽÂŽÂ’Â”Â‘Â‰Â”ÂƒÂ?Â?Â‡Â•ÂˆÂ‘Â”Â†Â‡Â•Â‹Â‰Â?ÂƒÂ–Â‹Â‘Â?Â•ÇŁÇĄÇĄ ÇĄ ÇĄ ÇĄ ÇĄ Č€ÇĄ ÇĄ Â‹Â’ ÇĄ ÇĄ ÂƒÂ?Â†Â”Â‘ÂˆÂ‡Â•Â•Â‹Â‘Â?ÂƒÂŽÂ‹Â’ÂŽÂ‘Â?ÂƒÂ‹Â?ÂƒÂ”Â?Â‡Â–Â‹Â?Â‰Ç¤
Â?ÂˆÂƒÂ…Â–ÇĄÂŠÂƒÂŽÂ‹ÂŽÂ‹Â•ÂƒÂ‘Â”Â‰ÂƒÂ?ÂŽÂ—Â?Â?Â‹ÂƒÂ?Â†Â•Â–Â—Â†Â‹Â‡Â†ÂˆÂ‘Â” his Â CPA Â using Â t he Â Becker Â CPA Â Review Â at Â 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˝
ÂƒÂ?Â† Â”Â‡Â“Â—Â‹Â”Â‡Â† Â•Â?Â‹ÂŽÂŽÂ• Â–Â‘ Â—Â?Â†Â‡Â”Â•Â–ÂƒÂ?Â† ÂƒÂ?Â† Â†Â”Â‹Â˜Â‡ Â–ÂŠÂ‡Â„Â—Â•Â‹Â?Â‡Â•Â•ÂˆÂ‘Â”Â™ÂƒÂ”Â†Ç¤Çł ÂŠÂƒÂŽÂ‹ÂŽÂŠÂƒÂ•ÂƒÂƒÂ…ÂŠÂ‡ÂŽÂ‘Â”Â‘ÂˆÂ—Â•Â‹Â?Â‡Â•Â•Â†Â?Â‹Â?Â‹Â•Â–Â”ÂƒÂ–Â‹Â‘Â?ÇĄ Â‹Â•ÂƒÂ‡Â”Â–Â‹Ď?Â‹Â‡Â†Â—Â„ÂŽÂ‹Â…Â…Â…Â‘Â—Â?Â–ÂƒÂ?Â–Č‹ČŒÂƒÂ?Â†ÂŠÂƒÂ•ÂƒÂ? MBA. Â This Â helped Â the Â 33-Ââ€?year Â old Â executive Â to Â begin Â his Â journey Â in Â accountancy Â and Â ensured Â he Â stayed Â abreast Â w ith Â new Â developments Â and Â t rends Â over Â the Â years. Â He Â says Â the Â positive Â impact Â and Â priceless Â value Â his Â education Â gave Â him Â is Â what Â garnered Â his Â interest Â in Â Morgan Â International. Â Â’Â”Â‘ÂˆÂ‡Â•Â•Â‹Â‘Â?ÂƒÂŽ Â–Â”ÂƒÂ‹Â?Â‹Â?Â‰ Â’Â”Â‘Â˜Â‹Â†Â‡Â”ÇĄ Â‘Â”Â‰ÂƒÂ? International Â represents Â leading Â international Â institutions Â offering Â a Â w ide Â range Â of Â programmes Â ÂˆÂ‘Â”Â†Â‡Â•Â‹Â‰Â?ÂƒÂ–Â‹Â‘Â?Â•Â‹Â?Â…Â…Â‘Â—Â?Â–Â‹Â?Â‰ÇĄÂ—Â†Â‹Â–Â‹Â?Â‰ÇĄ Â‹Â?ÂƒÂ?Â…Â‡ÇĄ
2UV^SLKNLPZWV^LY The Â power Â of Â professional Â education Â drives Â progress Â and Â development. Â It Â is Â not Â a Â luxury Â but Â Â”ÂƒÂ–ÂŠÂ‡Â” Âƒ Â?Â‡Â…Â‡Â•Â•Â‹Â–Â›ÇĄ Â‹Âˆ Â–ÂŠÂ‡ Â‹Â†Â†ÂŽÂ‡ ÂƒÂ•Â– ÂƒÂ?Â† Â‘Â”Â–ÂŠ ÂˆÂ”Â‹Â…ÂƒČ‹Â‡Â?ÂƒČŒÂ”Â‡Â‰Â‹Â‘Â?Â™Â‹Â•ÂŠÂ‡Â•Â–Â‘Â’ÂŽÂƒÂ›ÂƒÂŽÂ‡ÂƒÂ†Â‹Â?Â‰Â”Â‘ÂŽÂ‡ in Â the Â global Â economy. Â And Â this Â is Â why Â Khalil Â has Â always Â been Â keen Â to Â Â•ÂŠÂƒÂ”Â‡ ÂŠÂ‹Â• Â?Â?Â‘Â™ÂŽÂ‡Â†Â‰Â‡ Â™Â‹Â–ÂŠ Â‘Â–ÂŠÂ‡Â”Â•ÇĄ ÂŽÂ‘Â?Â‰ Â„Â‡ÂˆÂ‘Â”Â‡ ÂŠÂ‡ Â„Â‡Â…ÂƒÂ?Â‡Â‘Â”Â‰ÂƒÂ? Â?Â–Â‡Â”Â?ÂƒÂ–Â‹Â‘Â?ÂƒÂŽĚľÂ•Ç¤ Â?Â–ÂŠÂ‡Â’ÂƒÂ•Â–ÇĄÂŠÂ‡ organised Â and Â presented Â specialised Â t raining Â and Â Â…Â‘Â—Â”Â•Â‡Â• Â‘Â? ÇĄ ÂƒÂ?Â† Â‘Â–ÂŠÂ‡Â” Â’Â‡Â”Â–Â‹Â?Â‡Â?Â– Â–Â‘Â’Â‹Â…Â• Â™Â‹Â–ÂŠÂ‹Â? Â–ÂŠÂ‡ Ď?Â‹Â‡ÂŽÂ†ÇĄ ÂƒÂ–Â–Â”ÂƒÂ…Â–Â‹Â?Â‰ Â–ÂŠÂ‡ Â‹Â?Â–Â‡Â”Â‡Â•Â– Â‘Âˆ Â?ÂƒÂŒÂ‘Â” Â”Â‡Â‰Â‹Â‘Â?ÂƒÂŽ ÂƒÂ?Â† Â‹Â?Â–Â‡Â”Â?ÂƒÂ–Â‹Â‘Â?ÂƒÂŽ Ď?Â‹Â”Â?Â• ÂƒÂ…Â”Â‘Â•Â• Â˜ÂƒÂ”Â›Â‹Â?Â‰ industries. Â He Â was Â nominated Â the Â best Â instructor Â ÂƒÂ–Â‘Â”Â‰ÂƒÂ? Â?Â–Â‡Â”Â?ÂƒÂ–Â‹Â‘Â?ÂƒÂŽÂˆÂ‘Â”Â–Â‡ÂƒÂ…ÂŠÂ‹Â?Â‰Ç˘ ÂŽÂ‡Â˜Â‡ÂŽÂ•ÍłÂƒÂ?Â†Í´Ç˘ Ç˘Â‹Â’ÂŽÂ‘Â?ÂƒÂ‹Â? ÂƒÂ?Â†Ç¤ â€œTeaching Â at Â Morgan Â has Â been Â an Â extremely Â Â”Â‡Â™ÂƒÂ”Â†Â‹Â?Â‰Â‡ÂšÂ’Â‡Â”Â‹Â‡Â?Â…Â‡ÇĄÂ‹Â–ÂƒÂŽÂŽÂ‘Â™Â‡Â†Â?Â‡Â–Â‘Â•ÂŠÂƒÂ”Â‡Â?Â› knowledge Â with Â aspiring Â professionals Â across Â the Â Â”Â‡Â‰Â‹Â‘Â?ÇĄ Â‰Â‹Â˜Â‡Â? Â?Â‡ Â–ÂŠÂ‡ Â‘Â’Â’Â‘Â”Â–Â—Â?Â‹Â–Â› Â–Â‘ Â‡ÂšÂ’ÂƒÂ?Â† Â?Â› network Â base Â and Â kept Â me Â abreast Â of Â the Â latest Â Â–Â”Â‡Â?Â†Â•Â‹Â?Â–ÂŠÂ‡ÂƒÂ…Â…Â‘Â—Â?Â–Â‹Â?Â‰ÂƒÂ?Â†Ď?Â‹Â?ÂƒÂ?Â…Â‡Ď?Â‹Â‡ÂŽÂ†ÇĄĚśÂŠÂ‡Â•ÂƒÂ›Â•Ç¤ ;OLYVSLVMWYVMLZZPVUHSL_WVZ\YL Khalil Â acknowledges Â that Â his Â passion Â for Â education Â and Â ability Â to Â make Â an Â impact Â would Â be Â incomplete Â w ithout Â real-Ââ€?life Â work Â experience Â and Â exposure Â to Â the Â challenges Â in Â the Â marketplace. Â His Â 12 Â year Â career Â has Â been Â eventful Â and Â has Â Â•Â‡Â‡Â? ÂŠÂ‹Â? Â‰ÂƒÂ‹Â? Â‹Â?Â˜ÂƒÂŽÂ—ÂƒÂ„ÂŽÂ‡ ÂƒÂ—Â†Â‹Â–ÇĄ ÂƒÂ†Â˜Â‹Â•Â‘Â”Â› ÂƒÂ?Â† 65
Khalil Â was Â responsible Â for Â over Â 100 Â employees Â at Â Â–ÂŠÂ‡ Â’Â”Â‘Â…Â—Â”Â‡Â?Â‡Â?Â–ÇĄ ÂŽÂ‘Â‰Â‹Â•Â–Â‹Â…Â•ÇĄ Â–Â”Â‡ÂƒÂ•Â—Â”Â›ÇĄ Â…Â‘Â”Â’Â‘Â”ÂƒÂ–Â‡ Ď?Â‹Â?ÂƒÂ?Â…Â‡ÇĄ Â‹Â?Â˜Â‡Â•Â–Â‘Â” Â”Â‡ÂŽÂƒÂ–Â‹Â‘Â?Â•ÇĄ Ď?Â‹Â?ÂƒÂ?Â…Â‹ÂƒÂŽ Â’ÂŽÂƒÂ?Â?Â‹Â?Â‰ÇĄ Â„Â—Â†Â‰Â‡Â–Â‹Â?Â‰ÂƒÂ?Â†Â”Â‡Â’Â‘Â”Â–Â‹Â?Â‰ÇĄÂƒÂ…Â…Â‘Â—Â?Â–Â‹Â?Â‰ÂƒÂ?Â†Â–ÂƒÂšÂƒÂ–Â‹Â‘Â? and Â management Â accounting Â departments. Â His Â active Â role Â as Â CFO Â meant Â he Â was Â highly Â involved Â in Â strategic Â decision-Ââ€?making Â and Â this Â prepped Â him Â to Â seamlessly Â t ransition Â to Â CEO. Â 7PVULLY^P[OH]PZPVU Â?Â‡ Â‘Âˆ ÂŠÂ‹Â• Â…ÂƒÂ”Â‡Â‡Â” ÂŠÂ‹Â‰ÂŠÂŽÂ‹Â‰ÂŠÂ–Â• Â…ÂƒÂ?Â‡ Â‹Â? Í´Í˛ÍłÍ´ÇĄ Â™ÂŠÂ‹ÂŽÂ‡ ÂŠÂ‡ Â™ÂƒÂ• Â•Â–Â‹ÂŽÂŽ Âƒ Ç¤ ÂŠÂƒÂŽÂ‹ÂŽ ÂŽÂ‡Â† Â–ÂŠÂ‡ Â•Â—Â’Â‡Â”Â˜Â‹Â•Â‹Â‘Â?ÇĄ structuring Â and Â execution Â of Â the Â R ights Â Issuance Â of Â ÂƒÂ‹Â?ÂƒÂ—Â†Â‹Â”ÂƒÂ„Â‹ÂƒÂƒÂ?Â‘Â—Â?Â–Â‹Â?Â‰Â–Â‘Í„ÍłÇ¤Í¸Â„Â‹ÂŽÂŽÂ‹Â‘Â?Ç¤ÂŠÂ‹Â• transaction Â represented Â the Â largest Â investment Â banking Â transaction Â in Â the Â GCC Â region. Â He Â was Â also Â behind Â an Â international Â debt Â arrangement Â ÂƒÂ?Â‘Â—Â?Â–Â‹Â?Â‰Â–Â‘Í„ÍľÍ´ÍˇÂ?Â‹ÂŽÂŽÂ‹Â‘Â?Ç¤
UPWARD MOBILITY: Along with technical knowledge, the transition from auditing to CFO to CEO requires selfdiscipline, perseverance BOETUSPOHMFBEFSTIJQTLJMMT
investment Â experience Â at Â reputable Â regional Â and Â Â‹Â?Â–Â‡Â”Â?ÂƒÂ–Â‹Â‘Â?ÂƒÂŽĎ?Â‹Â”Â?Â•Ç¤ He Â says Â that Â each Â milestone Â in Â his Â career Â enriched Â his Â understanding Â of Â t he Â industry Â and Â helped Â him Â identify Â knowledge Â gaps Â and Â the Â skills Â needed Â to Â address Â new Â developments. Â â€œLast Â year Â particularly Â provided Â me Â with Â unparalleled Â exposure Â that Â helped Â me Â accomplish Â Âƒ ÂŽÂ‘Â– ÂƒÂ• Â–ÂŠÂ‡ ÂŠÂ‹Â‡Âˆ Â‹Â?ÂƒÂ?Â…Â‹ÂƒÂŽ ÂˆĎ?Â‹Â…Â‡Â” ÂˆÂ‘Â” ÂƒÂ‹Â?ÇĄ ÂƒÂ—Â†Â‹ Â”ÂƒÂ„Â‹Âƒ Č‹Âƒ ÂŽÂ‹Â•Â–Â‡Â† Â–Â‡ÂŽÂ‡Â…Â‘Â? Â…Â‘Â?Â’ÂƒÂ?Â›ČŒ ÂƒÂ?Â† the Â Chairman-Ââ€?General Â Manager Â of Â Centre Â for Â Â‘Â”Â’Â‘Â”ÂƒÂ–Â‡ Â‡Â”Â˜Â‹Â…Â‡Â• Č‹Âƒ Â•Â—Â„Â•Â‹Â†Â‹ÂƒÂ”Â› Â‘Âˆ Â‘Â”Â‰ÂƒÂ?
Â?Â–Â‡Â”Â?ÂƒÂ–Â‹Â‘Â?ÂƒÂŽČŒÇĄÇłÂŠÂ‡Â•ÂƒÂ›Â•Â’Â”Â‘Â—Â†ÂŽÂ›Ç¤ Â‡ÂˆÂ‘Â”Â‡ Â„Â‡Â…Â‘Â?Â‹Â?Â‰ Â‘Â”Â‰ÂƒÂ? Â?Â–Â‡Â”Â?ÂƒÂ–Â‹Â‘Â?ÂƒÂŽĚľÂ• ÇĄ
â€œHistorically, CFOs were more financially driven, where as nowadays they have become more involved in strategic decision making and operational activities in the companies.â€?
66 January 2013
Khalil Â was Â a Â pioneer Â with Â vision Â long Â before Â he Â joined Â ÂƒÂ‹Â?ÂƒÂ•Â…ÂƒÂ?Â„Â‡Â•Â‡Â‡Â?Â‹Â?ÂŠÂ‹Â•Â‡Â•Â–ÂƒÂ„ÂŽÂ‹Â•ÂŠÂ‹Â?Â‰ÂƒÂ•Â—Â„Â•Â‹Â†Â‹ÂƒÂ”Â›Â‘Âˆ Â‘Â”Â‰ÂƒÂ? Â?Â–Â‡Â”Â?ÂƒÂ–Â‹Â‘Â?ÂƒÂŽÇĄÂ‡Â?Â–Â”Â‡ÂˆÂ‘Â”Â‘Â”Â’Â‘Â”ÂƒÂ–Â‡Â‡Â”Â˜Â‹Â…Â‡Â• Č‹ČŒÇĄÂ™ÂŠÂ‹ÂŽÂ‡ÂƒÂ…Â–Â‹Â?Â‰ÂƒÂ•Â–ÂŠÂ‡Â‡ÂƒÂ†Â‘ÂˆÂ‘Â”Â’Â‘Â”ÂƒÂ–Â‡ Â‹Â?ÂƒÂ?Â…Â‡ ÂƒÂ–Â‹Â†Â†ÂŽÂ‡ÂƒÂ•Â–ÂƒÂ’Â‹Â–ÂƒÂŽ Â”Â‘Â—Â’Č‹ ČŒÇĄÂƒÂ•Â—Â„Â•Â‹Â†Â‹ÂƒÂ”Â›Â‘Âˆ Â–ÂŠÂ‡ Â‹Â”Â•Â–ÂƒÂ–Â‹Â‘Â?ÂƒÂŽÂƒÂ?Â?Ç¤Ç¤Ç¤ His Â journey Â is Â a Â testimony Â of Â how Â accounting Â and Â auditing Â can Â be Â a Â springboard Â for Â a Â rewarding Â
career. He began his career at one of the ‘Big 4’ ϐ as an Experienced Manager in the Assurance and Business Advisory division. ǡ audit projects in nine countries from his base ϐ ǡ ϐ diligence mandates. ǮͶǯϐǡ ȋ Ȍ as audit methodology champion. Recognised for ǡ Ǧ ǡ ̈́ʹͲͲ ϐ ǡ 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 ϐ ǡ while nowadays they have become more involved
in strategic decision making and operational ǡ ǯǤ ϐ ǡ ϐ concepts and this is something that will allow a person to persevere and make strategic decisions ǡǳǤ ϐ accounting industry… and plans to use his new position to promote the profession. This vision ϐǡ ǡ ϐ Ǯ gap’ and helping the Mena region move towards reporting standards best suited to this era of globalised business. ;HRPUNHJJV\U[VMHIL[[LYM\[\YL ǡ ǲ Ȁ ǡ Ǣ ǡ nationalisation. Therefore local talents need to enhance their skills through professional ϐ have an important role to play in this rapidly ǡǳǤ ǲ ǡ ǡ Ǧ ǡ ǡ this happen. The institution provides students with a greater learning experience and empowers Ǥǳ ̵ ǡϐ ǡ ǡ ǡ ǡ ϐ Ǥ Khalil says he is excited to lead Morgan into a new phase by enhancing the educational ǡ ǡϐ as well as employers who wish to train their ǡ 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 ǡ a l eader i n t he p rofessional e ducation f ield. A s ǡ ǡ ǡ ǡ penetrating new markets… just to name a ǡǳǤ 67
Anam Sami receives her recognition award from Stuart Dunlop, the Head of ACCA Middle East
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
ell us about yourself, ACCA studies and your recent achievements
me Â manage Â my Â work Â amidst Â study Â leaves Â and Â preparations Â f or Â e xams.
I Â was Â born Â and Â brought Â up Â in Â Dubai Â and Â went Â to Â the Â UK Â to Â pursue Â my Â Bachelors Â in Â Economics. Â Upon Â graduating, Â I Â returned Â back Â to Â the Â Â…Â‘Â—Â?Â–Â”Â›ÂƒÂ?Â†ÂŒÂ‘Â‹Â?Â‡Â† ÂƒÂ•Â?Â›Ď?Â‹Â”Â•Â–Â™Â‘Â”Â?Â’ÂŽÂƒÂ…Â‡Ç¤
Worth Â mentioning Â here Â is Â the Â support Â of Â the Â Human Â Resource Â department, Â which Â has Â also Â Â’ÂŽÂƒÂ›Â‡Â† Âƒ Â•Â‹Â‰Â?Â‹Ď?Â‹Â…ÂƒÂ?Â– Â”Â‘ÂŽÂ‡ Â‹Â? Â?Â› Â•Â—Â…Â…Â‡Â•Â•Ç¤ Â‹Â–ÂŠÂ‘Â—Â– their Â guidance Â it Â would Â have Â been Â nearly Â impossible Â to Â cope Â between Â work Â and Â studies. Â They Â helped Â me Â in Â the Â smooth Â processing Â of Â my Â study Â leave Â applications, Â registration Â of Â classes Â and Â much Â more.
I Â am Â c urrently Â pursuing Â A ssociation Â of Â Chartered Â Â‡Â”Â–Â‹Ď?Â‹Â‡Â† Â…Â…Â‘Â—Â?Â–ÂƒÂ?Â–Â• Č‹ČŒ Â“Â—ÂƒÂŽÂ‹Ď?Â‹Â…ÂƒÂ–Â‹Â‘Â?Ç¤ I Â have Â cleared Â nine Â out Â of Â the Â necessary Â 14 Â papers. Â I Â have Â managed Â to Â score Â the Â highest Â marks Â globally Â in Â two Â ACCA Â examinations. Â These Â include Â Corporate Â Law Â and Â the Â Audit Â and Â Assurance Â paper. Â The Â facets Â of Â accounting Â profession Â are Â broad, Â including Â auditing, Â tax, Â legislation, Â management, Â Â„ÂƒÂ?Â?Â‹Â?Â‰ÂƒÂ?Â‘Â?Â‰Â‘Â–ÂŠÂ‡Â”Â•Ç¤ Â•Â–ÂŠÂ‡Â”Â‡Â‘Â?Â‡Â•Â’Â‡Â…Â‹Ď?Â‹Â…ÂƒÂ”Â‡Âƒ which Â is Â of Â most Â interest Â to Â you? Â Financial Â Service Â is Â one Â of Â my Â areas Â of Â interest Â and Â I Â would Â like Â to Â continue Â my Â association Â with Â KPMG. Â KPMG Â has Â a Â huge Â client Â base Â and Â provides Â excellent Â training Â and Â support Â to Â its Â employees. Â In Â future, Â I Â aspire Â to Â specialise Â in Â ÂƒÂ—Â†Â‹Â–Â‹Â?Â‰ Â‹Â?Â˜Â‡Â•Â–Â?Â‡Â?Â– Â„ÂƒÂ?Â?Â• Â‘Â” Â’Â”Â‹Â˜ÂƒÂ–Â‡ Â‡Â“Â—Â‹Â–Â› Ď?Â‹Â”Â?Â•Ç¤Â„Â‘Â˜Â‡ÂƒÂŽÂŽÂ?Â›ÂƒÂ‹Â?Â‹Â•Â–Â‘Â…Â‘Â?Â’ÂŽÂ‡Â–Â‡ÂƒÂŽÂŽÂ‘ÂˆÂ?Â› ACCA Â papers Â successfully.
Whatâ€™s Â the Â best Â advice Â you Â can Â give Â to Â youngsters Â wanting Â a Â c areer Â in Â accounting? Â My Â suggestion Â for Â a ll Â t he Â aspirants Â would Â be Â t hat Â in Â order Â to Â succeed Â one Â should Â try Â and Â develop Â good Â time Â management Â skills Â and Â organisation Â skills. Â Above Â all Â one Â must Â follow Â a Â good Â study Â plan Â and Â stay Â focused. How Â do Â you Â spend Â your Â free Â time? Â What Â are Â your Â interests, Â if Â any? Â In Â my Â spare Â time Â I Â love Â to Â read. Â My Â favourite Â authors Â are Â John Â Grisham Â and Â Sydney Â Sheldon. Â Apart Â from Â Â”Â‡ÂƒÂ†Â‹Â?Â‰ÇĄ ÂŽÂ‹Â?Â‡Â–Â‘Â™ÂƒÂ–Â…ÂŠÂ?Â‘Â˜Â‹Â‡Â•ÇĄČ‹Â‡Â•Â’Â‡Â…Â‹ÂƒÂŽÂŽÂ›Â‘ÂŽÂ†Â…ÂŽÂƒÂ•Â•Â‹Â… Â‘Â?Â‡Â•ČŒÇĄÂ„ÂƒÂ?Â‡ÂƒÂ?Â†Â•Â’Â‡Â?Â†Â–Â‹Â?Â‡Â™Â‹Â–ÂŠÂ?Â›ÂˆÂ”Â‹Â‡Â?Â†Â•Ç¤
What Â drives Â you? My Â motivation Â for Â success Â in Â the Â academic Â life Â is Â based Â on Â my Â unrelenting Â curiosity Â and Â my Â overwhelming Â need Â to Â know Â rather Â than Â to Â merely Â believe. Â I Â don't Â study Â for Â g rades, Â but Â rather Â to Â satisfy Â my Â desire Â to Â k now Â and Â understand. Who Â is Â your Â mentor/s? My Â family Â has Â been Â very Â supportive Â indeed Â and Â their Â role Â in Â t he Â entire Â journey Â t ill Â date Â has Â been Â substantial. Â Together Â w ith Â my Â family, Â I Â would Â like Â to Â extend Â my Â heartfelt Â t hanks Â to Â my Â teachers Â and Â mentors Â who Â made Â it Â possible Â for Â me Â to Â excel Â in Â my Â studies. Â I Â would Â also Â sincerely Â like Â to Â thank Â my Â performance Â manager Â and Â colleagues Â for Â their Â continued Â support Â and Â g uidance. Â My Â performance Â manager Â has Â been Â constantly Â guiding Â me Â in Â striking Â the Â right Â balance Â between Â work Â and Â studies. Â My Â colleagues Â have Â been Â very Â supportive, Â providing Â me Â with Â relevant Â on-Ââ€?the-Ââ€?job Â training Â and Â helping Â
()6<;(**( ACCA Â supports Â its Â 154,000 Â members Â and Â 432,000 Â students Â globally Â t hroughout Â their Â careers, Â providing Â services Â t hrough Â ÂƒÂ?Â‡Â–Â™Â‘Â”Â?Â‘ÂˆÍşÍľÂ‘ÂˆĎ?Â‹Â…Â‡Â•ÂƒÂ?Â†ÂƒÂ…Â–Â‹Â˜Â‡Â…Â‡Â?Â–Â”Â‡Â•Ç¤ Its Â global Â infrastructure Â means Â t hat Â exams Â and Â support Â are Â delivered Â at Â a Â local Â level, Â Â†Â‹Â”Â‡Â…Â–ÂŽÂ›Â„Â‡Â?Â‡Ď?Â‹Â–Â‹Â?Â‰Â•Â–ÂƒÂ?Â‡ÂŠÂ‘ÂŽÂ†Â‡Â”Â•Â™ÂŠÂ‡Â”Â‡Â˜Â‡Â” they Â are Â 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.
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.
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
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
AN ALL NEW PARADIGM Rapid growth of technology is swiftly influencing operational processes of SMEs in the UAE
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[ ǯ ϐ been the lessons learnt from the recession. Business ϐ ϐ ϐ Ǥ 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 ϐ ǡ 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 ϐ Ǥ *(7,?PU]LZ[TLU[Z The change in thinking process poses a few challenges for providers of traditional accounting Ǥ 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 ϐ Ǥ 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
Â?Â‡Â‡Â†Â•Â–Â‘Â’Â‡Â”ÂˆÂ‘Â”Â?Ç¤ÂŠÂ‡Â‡ÂƒÂ•Â‹Â‡Â•Â–Â™ÂƒÂ›Â–Â‘Â†Â‡Ď?Â‹Â?Â‡ÂƒÂ…Â‘Â”Â‡ task Â is Â to Â formulate Â a Â simple Â question. Â For Â instance Â â€˜is Â it Â important Â to Â my Â customer Â that Â I Â do Â this Â or Â can Â I Â outsource Â it?â€™ Â If Â the Â answer Â is Â positive, Â then Â obviously Â this Â activity Â needs Â to Â be Â retained Â and Â not Â outsourced. Â This Â way Â your Â attention Â is Â focussed Â on Â keeping Â your Â customer Â happy. Â Now Â you Â know Â what Â can Â be Â given Â to Â a Â technology Â or Â a Â service Â provider. Â ÂŠÂ‡ Â„Â‡Â?Â‡Ď?Â‹Â–Â• Â‘Âˆ Â‹Â?ÂƒÂ?Â…Â‡ ĆŹ Â…Â…Â‘Â—Â?Â–Â‹Â?Â‰ ÇŻÂ• ÂŠÂƒÂ˜Â‡ evolved Â substantially Â over Â the Â past Â two Â decades. Â The Â focus Â initially Â in Â the Â emerging Â days Â was Â more Â on Â costs. Â Todayâ€™s Â BPO Â providers Â can Â add Â strategic Â value Â to Â an Â organization Â by Â providing Â actionable Â insights Â or Â intelligence. Â This Â is Â a Â result Â of Â the Â tools Â being Â used Â in Â the Â process Â going Â through Â considerable Â maturity Â over Â a Â period Â of Â time. Â So Â by Â taking Â this Â route Â there Â are Â some Â objectives Â that Â one Â must Â look Â to Â attain. Â
TECH SAVVY: Raju Ramesh, Finesse Co-Founder and CEO
It Â translates Â to Â operating Â expenditure Â as Â almost Â all Â of Â these Â providers Â have Â their Â own Â servers Â and Â data Â centres Â along Â with Â ongoing Â management Â and Â support Â services Â all Â of Â which Â is Â part Â of Â a Â monthly Â fee. Â ÂŠÂ‡Â‡ÂˆĎ?Â‹Â…Â‹Â‡Â?Â…Â›Â‰ÂƒÂ‹Â?Â‡ÂŽÂ‡Â?Â‡Â?Â–ÂŽÂ‘Â‘Â?Â•Â™Â‡ÂŽÂŽÂ™Â‹Â–ÂŠÂ‹Â?Â”Â‡ÂƒÂ…ÂŠ for Â these Â companies. Â 5L^Ă…L_PIPSP[` The Â accounting Â service Â providers Â have Â not Â seen Â the Â real Â dimension Â of Â the Â threat Â yet. Â That Â threat Â is Â going Â to Â come Â from Â nimble Â service Â companies Â that Â are Â starting Â to Â provide Â these Â applications Â alongside Â accounting Â and Â advisory Â services Â combined Â with Â all Â of Â the Â above. Â Suddenly Â customers Â can Â opt Â to Â see Â a Â management Â dashboard Â on Â their Â mobile Â phone Â or Â tablet, Â get Â Â?Â‘Â–Â‹Ď?Â‹Â…ÂƒÂ–Â‹Â‘Â?Â•Â–Â‘Â?ÂƒÂ?ÂƒÂ‰Â‡ÂƒÂ?Â›Â‡Â˜Â‡Â?Â–Â‘Â”Â–ÂƒÂ?Â‡ÂƒÂ†Â˜ÂƒÂ?Â–ÂƒÂ‰Â‡ Â‘Âˆ Â?Â‡Â™ Ď?ÂŽÂ‡ÂšÂ‹Â„Â‹ÂŽÂ‹Â–Â› Â–ÂŠÂ‡Â› Â?Â‡Â˜Â‡Â” Â‡Â?ÂŒÂ‘Â›Â‡Â† Â‹Â? Â–ÂŠÂ‡ Â’ÂƒÂ•Â– unless Â they Â invested Â in Â technology Â CAPEX. Â So Â what Â is Â the Â starting Â point Â for Â someone Â who Â would Â like Â to Â Â‰Â‘ Â†Â‘Â™Â? Â–ÂŠÂ‹Â• Â”Â‘Â—Â–Â‡ÇŤ Â– Â‹Â• Â‹Â?Â’Â‘Â”Â–ÂƒÂ?Â– Â–Â‘ Ď?Â‹Â”Â•Â– Â†Â‡Ď?Â‹Â?Â‡ what Â the Â core Â and Â non-Ââ€?core Â tasks Â are Â that Â a Â business Â
The benefits of Finance & Accounting BPOâ€™s have evolved substantially over the past two decades.The focus initially was more on costs, but todayâ€™s BPO providers can add strategic value to an organisation by providing actionable insights or intelligence.
9LK\JPUNPU]LZ[TLU[ZYPZRZ Firstly, Â this Â should Â result Â in Â increasing Â the Â strength Â of Â your Â company. Â This Â can Â come Â from Â your Â ability Â to Â now Â focus Â better Â on Â the Â customer Â or Â from Â the Â expertise Â built Â and Â accumulated Â by Â the Â provider. Â Secondly, Â you Â must Â be Â able Â to Â reduce Â projected Â capital Â costs Â and Â therefore Â as Â a Â result, Â reduce Â investment Â risks. Â Thirdly, Â it Â should Â increase Â access Â Â–Â‘ Â•Â–ÂƒÂ–Â‡ÇŚÂ‘ÂˆÇŚÂ–ÂŠÂ‡ÇŚÂƒÂ”Â– Â–Â‡Â…ÂŠÂ?Â‘ÂŽÂ‘Â‰Â› Â–Â‘ Â?ÂƒÂ?Â‡ Â•Â‹Â‰Â?Â‹Ď?Â‹Â…ÂƒÂ?Â– Â‡ÂˆĎ?Â‹Â…Â‹Â‡Â?Â…Â›Â‹Â?Â’Â”Â‘Â˜Â‡Â?Â‡Â?Â–Ç¤ÂƒÂ•Â–ÂŽÂ›ÇĄÂ•Â‡Â”Â˜Â‹Â…Â‡ÂŽÂ‡Â˜Â‡ÂŽÂ•Â–Â‘Â›Â‘Â—Â” customer Â must Â improve Â and Â they Â must Â be Â able Â to Â perceive Â this Â improvement. Â From Â a Â vendor Â selection Â perspective Â they Â need Â to Â bring Â understanding Â of Â your Â business, Â metrics Â for Â performance Â measurement Â and Â most Â importantly, Â the Â ability Â to Â adapt Â as Â your Â business Â undergoes Â changes. Â‘Â?Â‡ Â‘Âˆ Â–ÂŠÂ‡ Â„Â‡Â?Â‡Ď?Â‹Â–Â• Â–Â‘ Â–ÂŠÂ‡ Â…Â—Â•Â–Â‘Â?Â‡Â” ÂƒÂŽÂ•Â‘ Â…Â‘Â?Â‡ with Â providing Â a Â model Â where Â the Â business Â process Â is Â embedded Â with Â appropriate Â metrics. Â What Â this Â Â?Â‡ÂƒÂ?Â•Â‹Â•Â–ÂŠÂƒÂ–Â–ÂŠÂ‡Â›Â?Â‡Â‡Â†ÂŠÂ‡ÂŽÂ’Â–Â‘Â†Â‡Ď?Â‹Â?Â‡Â‡ÂšÂ…Â‡Â’Â–Â‹Â‘Â?Â•Ç¤ If Â we Â can Â manage Â to Â separate Â the Â routine Â from Â an Â exception Â it Â is Â always Â possible Â to Â provide Â a Â technology Â solution Â to Â deal Â with Â the Â routine. Â The Â goal Â then Â becomes Â how Â much Â more Â can Â be Â put Â in Â a Â basket Â called Â â€˜routineâ€™ Â and Â how Â much Â less Â can Â be Â put Â in Â the Â basket Â called Â â€˜exceptionâ€™. Â Basically Â this Â boils Â down Â to Â a Â review Â of Â both Â their Â processes Â ÂƒÂ?Â† Â‹Â?ÂˆÂ‘Â”Â?ÂƒÂ–Â‹Â‘Â? ÂƒÂ?Â† Â†Â‡Ď?Â‹Â?Â‹Â?Â‰ Â™ÂŠÂƒÂ– Â•ÂŠÂ‘Â—ÂŽÂ† happen Â when, Â in Â what Â order, Â and Â what Â the Â red Â lines Â are. Â Â Once Â this Â is Â in Â place Â the Â ability Â to Â set Â up Â exception Â rules Â will Â start Â to Â emerge Â and Â providing Â information Â on Â the Â go Â for Â decision Â making Â becomes Â all Â the Â more Â meaningful. Â 73
APPOINTMENTS If you have made a new appointment, promotion or have any relevant hiring news, please email the details and a photo to firstname.lastname@example.org
The Â UAE Â I nternal Â Audit Â A ssociation Â (UAE-Ââ€?IAA), Â the Â l ocal Â b ody Â affiliated Â t o Â the Â I nstitute Â o f Â Internal Â A uditors Â (IIA-Ââ€?Global), Â has Â a nnounced Â t he Â a ppointment Â of Â K evin K. Rafiq Â a s Â a Â n ew Â Chief Â E xecutive Â O fficer. Â R afiq Â will Â b e Â r esponsible Â f or Â p roviding Â direction Â a nd Â s upervision Â t o Â t he Â committees Â o f Â t he Â A ssociation, Â a nd Â coordinating Â w ith Â t he Â B oard Â o f Â Directors Â t o Â s trengthen Â p artnerships Â with Â v arious Â s takeholders. Â Rafiqâ€™s Â p rofessional Â e xperience Â spans Â t he Â f ields Â o f Â i nternational Â business, Â m arketing, Â c ustomer Â service, Â l eadership Â t raining Â a nd Â development, Â s trategic Â m anagement Â and Â p artnership Â d evelopment. Â A Â Magna Â C um Â L aude Â g raduate, Â R afiq Â holds Â a Â b achelor Â d egree Â o f Â S cience Â in Â B usiness Â A dministration Â f rom Â Strayer Â U niversity-Ââ€?USA, Â a nd Â a n Â M BA Â in Â I nternational Â M anagement Â f rom Â the Â U niversity Â o f Â M aryland-Ââ€?USA.
Farook Khimani Â â€“ Â has Â been Â promoted Â a s Â a Â Partner Â at Â U HY Â -Ââ€? Â an Â i nternational Â network Â of Â independent Â accounting Â a nd Â Â…Â‘Â?Â•Â—ÂŽÂ–ÂƒÂ?Â…Â›Ď?Â‹Â”Â?Â•ÇŚÂ‡ÂˆÂˆÂ‡Â…Â–Â‹Â˜Â‡ ÂƒÂ?Â—ÂƒÂ”Â› 1, Â 2013. Â A Â commerce Â g raduate, Â he Â ÂŠÂƒÂ•Â„Â‡Â‡Â?ÂƒÂ•Â•Â‘Â…Â‹ÂƒÂ–Â‡Â†Â™Â‹Â–ÂŠÂ–ÂŠÂ‡Ď?Â‹Â”Â?ÂˆÂ‘Â” nearly Â 20 Â years Â i n Â audit, Â consultancy Â and Â corporate Â services Â business Â of Â t he Â Ď?Â‹Â”Â?ÇĄÂƒÂ?Â†Â‹Â•Â…Â—Â”Â”Â‡Â?Â–ÂŽÂ›Â‹Â?Â…ÂŠÂƒÂ”Â‰Â‡Â‘ÂˆÂ–ÂŠÂ‡ ÂŠÂƒÂ”ÂŒÂƒÂŠÂ‘ÂˆĎ?Â‹Â…Â‡Â‹Â?Â–ÂŠÂ‡Â?ÂƒÂ?ÂƒÂ‰Â‹Â?Â‰ Â–ÂŠÂ‡Â†ÂƒÂ›Â–Â‘Â†ÂƒÂ›Â”Â—Â?Â?Â‹Â?Â‰Â‘ÂˆÂ–ÂŠÂ‡Ď?Â‹Â”Â? including Â audit, Â corporate Â services, Â administration Â a nd Â client Â management Â of Â t he Â Northern Â Emirates.
74 January 2013
Anmar Khaznadar Â joins Â the Â Grant Â ÂŠÂ‘Â”Â?Â–Â‘Â?Â‘ÂˆĎ?Â‹Â…Â‡ as Â an Â Assistant Â Manager Â for Â the Â Fraud Â and Â Forensics Â department. Â Prior Â to Â joining Â Grant Â Thornton, Â Anmar Â worked Â for Â Ernst Â & Â Young Â as Â a Â Senior Â Consultant Â for Â three Â years, Â having Â spent Â four Â years Â working Â with Â conventional Â and Â Islamic Â banks Â in Â the Â MENA Â region. Â He Â has Â worked Â within Â an Â international Â capacity Â for Â multinational Â investment Â banks Â and Â large Â corporations Â within Â various Â sectors. Â
V.S. Ravi Â has Â been Â promoted Â as Â a Â Partner Â at Â UHY Â -Ââ€? Â an Â international Â network Â of Â independent Â accounting Â and Â Â…Â‘Â?Â•Â—ÂŽÂ–ÂƒÂ?Â…Â›Ď?Â‹Â”Â?Â•ÇŚÂ‡ÂˆÂˆÂ‡Â…Â–Â‹Â˜Â‡ ÂƒÂ?Â—ÂƒÂ”Â› ÍłÇĄÍ´Í˛ÍłÍľÇ¤Â‡Â‹Â•ÂƒÂ“Â—ÂƒÂŽÂ‹Ď?Â‹Â‡Â†ÂŠÂƒÂ”Â–Â‡Â”Â‡Â† Accountant Â from Â the Â Institute Â of Â Chartered Â Accountants Â of Â India. Â He Â passed Â the Â Chartered Â Accountancy Â course Â in Â the Â year Â May Â 1999. Â He Â is Â the Â Director Â of Â the Â Ď?Â‹Â”Â?ÇĄÂ?ÂƒÂ?ÂƒÂ‰Â‹Â?Â‰Â–ÂŠÂ‡Â—Â†Â‹Â–ÂƒÂ?Â†Â…Â…Â‘Â—Â?Â–Â‹Â?Â‰ functions. Â He Â has Â over Â eight Â years Â post Â Â“Â—ÂƒÂŽÂ‹Ď?Â‹Â…ÂƒÂ–Â‹Â‘Â?Â‡ÂšÂ’Â‡Â”Â‹Â‡Â?Â…Â‡Â‹Â?Â—Â†Â‹Â–ÂƒÂ?Â† Accounts. Â Ravi Â has Â been Â associated Â Â™Â‹Â–ÂŠÂ–ÂŠÂ‡Ď?Â‹Â”Â?ÂˆÂ‘Â”Â?Â‡ÂƒÂ”ÂŽÂ›Ď?Â‹Â˜Â‡Â›Â‡ÂƒÂ”Â•ÂƒÂ?Â†Â‹Â• ÂŽÂ‡ÂƒÂ†Â‹Â?Â‰ÂƒÂ–Â‡ÂƒÂ?Â‘ÂˆÂ’Â”Â‘ÂˆÂ‡Â•Â•Â‹Â‘Â?ÂƒÂŽÂŽÂ›Â“Â—ÂƒÂŽÂ‹Ď?Â‹Â‡Â† accountants Â and Â trainees. Â
Nilesh Ashar Â has Â joined Â K PMG Â Lower Â Gulf Â as Â a Â UAE Â Partner Â and Â his Â role Â w ill Â focus Â on Â leading Â t he Â Firmâ€™s Â international Â and Â Mergers Â & Â Acquisitions Â t ax Â advisory Â services. Â He Â is Â a Â member Â of Â t he Â Institute Â
of Â Chartered Â Accountants Â in Â India Â and Â was Â previously Â working Â as Â a Â Director Â ÂˆÂ‘Â”ÂƒÂ?Â‘Â–ÂŠÂ‡Â”Â„Â‹Â‰ÂˆÂ‘Â—Â”Ď?Â‹Â”Â?Â‹Â?Â–ÂŠÂ‡Ç¤ Nilesh Â brings Â over Â 17 Â years Â experience Â working Â in Â Tax Â and Â has Â led Â several Â t ax Â structuring Â assignments Â for Â private Â equity Â and Â sovereign Â wealth Â f und Â clients Â on Â t heir Â acquisitions Â in Â t he Â UK Â and Â Europe. Â Nilesh Â has Â a Â degree Â in Â Chartered Â Accountancy Â f rom Â t he Â Institute Â of Â Chartered Â Accountants Â of Â India Â and Â also Â a Â Bachelor Â of Â Commerce Â from Â Mumbai Â University. Â
Mushtaq Ali Shaikh Â h as Â b een Â promoted Â a s Â a Â Partner Â at Â U HY Â -Ââ€? Â an Â i nternational Â network Â of Â independent Â accounting Â a nd Â Â…Â‘Â?Â•Â—ÂŽÂ–ÂƒÂ?Â…Â›ÂˆÂ‹Â”Â?Â•ÇŚÂ‡ÂˆÂˆÂ‡Â…Â–Â‹Â˜Â‡ ÂƒÂ?Â—ÂƒÂ”Â› 1, Â 2013. Â Mushtaq Â h as Â b een Â p art Â of Â the Â f irm Â f rom Â t he Â l ast Â 24 Â years. Â He Â is Â r esponsible Â f or Â t he Â d ay-Ââ€?to-Ââ€?day Â running Â of Â t he Â Accounting Â f unction Â throughout Â t he Â organisation, Â including Â budgeting, Â t rade Â f inance Â activity Â a nd Â a lso Â oversees Â c ash-Ââ€?flow Â and Â c urrency Â r equirements. Â Â
Sumeet Nayyar Â has Â been Â promoted Â as Â a Â Partner Â at Â UHY Â -Ââ€? Â an Â international Â network Â of Â independent Â accounting Â and Â Â…Â‘Â?Â•Â—ÂŽÂ–ÂƒÂ?Â…Â›Ď?Â‹Â”Â?Â•ÇŚ Â‡ÂˆÂˆÂ‡Â…Â–Â‹Â˜Â‡ ÂƒÂ?Â—ÂƒÂ”Â›ÍłÇĄ 2013. Â Sumeet Â has Â been Â associated Â with Â UHY Â since Â 2007 Â and Â is Â currently Â in Â the Â Consultancy Â and Â Advisory Â division Â of Â the Â Ď?Â‹Â”Â?Ç¤Â‡Â‹Â•ÂƒÂŽÂ•Â‘ÂƒÂ…Â‘Â?Â•Â—ÂŽÂ–ÂƒÂ?Â–Â™Â‘Â”Â?Â‹Â?Â‰ on Â the Â new Â HR Â audit Â product Â currently Â Â—Â?Â†Â‡Â”Â†Â‡Â˜Â‡ÂŽÂ‘Â’Â?Â‡Â?Â–Â™Â‹Â–ÂŠÂ‹Â?Â–ÂŠÂ‡Ď?Â‹Â”Â?Ç¤
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ountant Middle East | January 2013Accountant Middle East | January 2013