Category Archives: Accountancy & Accounts

Accountancy & Accounts, Finance and Banking, News

Government audit profession has key role in providing oversight on sustainability reporting in the public sector

The Global Summit convenes Supreme Audit Institutions and key stakeholders from around the world to discuss how (SAIs) contribute to people and planet by engaging in the growing movement on sustainability reporting and oversight

‘SAI audits have contributed significantly to the follow up and review of UN Sustainable Development Goals since 2017. As discussions on sustainability reporting in the public sector gain momentum, it is important for SAIs to provide their perspectives on robustness of sustainability reporting by those charged with governance.’

So reported Ms. Archana Shirsat, Deputy Director General of the INTOSAI Development Initiative (IDI) at IDI’s Global Summit on Professionalisation of SAI (Supreme Audit Institution) Auditors in London, 14-15 November 2023.

A session on the role of SAIs in sustainability on 14 November heard how comprehensive and relevant sustainability reporting must be accompanied by effective oversight mechanisms. A joint report by IDI, ACCA and IFAC highlighting the need for public auditors to engage and define their role was formally launched at the session at IDI’s Global Summit.

 

The report, ‘Preparing for sustainability reporting and assurance: an introduction for the public sector globally’, explores why the public sector should undertake sustainability reporting and the importance of oversight of this information by government auditors.

 

Mike Suffield, director of policy and insights at ACCA, said: “We are witnessing a rapidly developing reporting landscape for public sector sustainability reporting. Supreme audit institutions need to be closely involved in the development of that landscape, so they can provide assurance to the public sector and society generally. Supreme audit institutions should not wait to be asked to join in with sustainability. They need to take the initiative to enable the building of trust in the reporting process.”

 

Comprehensive and relevant sustainability reporting must be accompanied by effective oversight mechanisms. The approach to oversight needs to be appropriate to the type of information being reported on and SAIs with their experience in financial, compliance and performance audit are uniquely well placed to undertake auditing of sustainability reporting.

 

SAIs also have a system-wide perspective of government performance that is often not replicated elsewhere in the public sector. This enables them to consider approach to sustainable development across different parts of the public sector.

 

The report identifies six reasons why the public sector should undertake sustainability reporting:

  • Advancing sustainable development;
  • Supporting an economy-wide perspective;
  • Providing information to capital markets and development partners;
  • Transparency and accountability;
  • Supporting internal decision-making;
  • Promoting public trust.

 

Both the conference and the report underline that governments and public sector entities need to focus on the areas of greatest impact. And this is where SAIs can really add value.

 

Bruce Vivian, principal, accountancy education, IFAC, said: “At IFAC we believe that if sustainability disclosures are to be trusted, they need to be subject to high-quality, independent, external assurance. For the public sector, SAIs have a pivotal role to play in independent oversight of sustainability reporting by government entities, including the provision of assurance to enhance the credibility of this reporting. The work of SAIs can help stakeholders have confidence in reported information for decision-making and accountability purposes, with the ultimate goal of advancing sustainability outcomes in the public sector.”

 

SAIs can ensure that there is alignment with the overall government plan to reduce emissions and achieve wider sustainability goals and the goals and work of the myriad individual public sector entities.

 

Pamela Monroe Ellis, auditor general of Jamaica, said: “The role of the SAI is a unique one. We look across a country’s government and assess whether the systems for promoting sustainability are efficient and effective. As sustainability reporting develops, the engagement of SAIs in the process of developing frameworks and standards is vital.”

 

Read the report.

Accountancy & Accounts, FInance, Finance and Banking, News

Over 90% Of Uk Accountants Call For HMRC Service Improvements

  • More than half of ACCA survey respondents reported HMRC service levels as having a negative impact on productivity and efficiency.
  • 93% of respondents believe improvements are needed to HMRC services across a minimum of three key areas.

 New survey data from ACCA, the leading professional accountancy body, has revealed that UK accountants are struggling to work with HMRC services at even the most basic level.

In a survey of UK ACCA members, over half (52%) of respondents said HMRC service levels were negatively impacting productivity and efficiency, either directly or for their clients.

93% of survey respondents also reported that HMRC needed to make drastic improvements across at least three key areas including:

  • Reduced call waiting times
  • Improvements to call handling systems (such as call queue information and call back options)
  • Improved communications (particularly greater use of email)

 

HMRC service levels have become increasingly difficult to manage for many ACCA members in recent months. One respondent based in Wales said: “There has been a distinct deterioration in response times from HMRC over the last 12 months.”

 

Lloyd Powell, head of ACCA Cymru/Wales, spoke of the survey results: “Many of our members have raised with us, over a number of years, their struggles and difficulties in working effectively with HMRC services. There is often despair when accountants and financial professionals have exhausted all other routes and have to contact HMRC, as they know they are likely to end up wasting many hours sorting basic tax issues, costing time and money for themselves, their clients and also HMRC.

“The key changes ACCA is calling for in HMRC services are improvements to communications. More effective working with qualified accountants, more use of email, and an improvement in response times to all communications would greatly ease the difficulties our members have expressed.”

 

ACCA accountants raised many issues and concerns within the survey, such as struggling for weeks or even months to get simple actions dealt with such as VAT registration numbers and authorising a tax agent.

The difficulties experienced by respondents in working with HMRC for tax enquiries were summed up aptly by one respondent from Wales who said HMRC “are a constant cause of serious frustration for both ourselves and our clients on a daily basis.”

Visit ACCA’s website for more information.

Accountancy & Accounts, Newport, News

ACCA and University of South Wales celebrate 50 years of training finance professionals

Last week the world’s leading accountancy body and one of Wales’ most respected universities celebrated a remarkable half-century educational partnership.

ACCA (the Association of Chartered Certified Accountants) and the University of South Wales (USW) came together for a special event at the Newport City Campus on 26 October to mark 50 years of training finance professionals in south Wales.

Since introducing the ACCA course in 1973, the University of South Wales has become an ACCA Platinum Approved Learning Partner, the highest level of accreditation that a tuition provider can obtain, in recognition of its excellent pass rates and support for students. In recent years, four students from the ACCA programme at USW have received prizes from ACCA for achieving the highest mark worldwide in their ACCA examinations.

Led by lecturers with real world practical experience and technical expertise, USW’s tuition includes all the syllabus content, question practice, and revision sessions needed to prepare students for the ACCA exams, as well as introducing students to the Ethics & Professional Skills module and the Practical Experience Requirements to become an ACCA member.

ACCA course alumni from across the 50 years of the partnership joined senior figures from the university and ACCA, current students – Welsh and international, ACCA members, local employers and partners at the event, sharing their experiences of how the ACCA Qualification has given them the skills to succeed in any sector, and in any industry because it’s recognised and respected all over the world.

ACCA and USW celebrating the 50th anniversary of their partnership, at the USW Newport Campus – Helen Brand OBE meets ACCA Students
Picture by Richard Williams

Paul Matthews, ACCA course alumni and now chief executive of Monmouthshire County Council, said: “It’s a privilege to be a small part of such a special evening. This university and the ACCA programme changed my life and the lives of many others for the better. It’s a tough accreditation to achieve but the rewards of having such a globally recognised qualification make all the efforts worthwhile. Well done on the first fifty years, on to the next!”

Helen Brand OBE, chief executive of ACCA, said: “It’s such a pleasure to be here as we celebrate 50 years of USW offering the ACCA Qualification. In that half-century we have seen so many cohorts of gifted accountants emerge from USW, and they have gone on to contribute so much, in so many ways, to the worlds of finance and business in Wales, across the UK, and across the world.”

Dr Ben Calvert, vice chancellor of the University of South Wales, said: “This course epitomises what USW stands for – working with the profession and industry locally and globally to bring industry needs into the classroom and train professionals who will be at the heart of organisations throughout their careers. It is a course that has achieved sustained successes and has contributed to the subject area winning ‘Public Sector College of the Year’ four times since 2010 at the PQ Magazine Awards in London.”

—

Header image caption: Paul Matthews, Helen Brand OBE, Dr. Ben Calvert

Picture by Richard Williams

 

Accountancy & Accounts, Finance and Banking, News, Sustainability

Public sector needs to prepare for sustainability reporting and assurance challenge

Public sector finance and audit professionals urged to take the lead on the sustainability reporting and assurance agenda

Across the globe momentum is building for sustainability reporting and assurance in the public sector. The IPSASB decided to move forward with the development of public sector specific sustainability reporting standards beginning with a Climate-Related Disclosures standard. Finance and audit professionals working in government, public sector bodies and supreme audit institutions – Auditors-General’s offices, Courts of Accounts and similar (SAIs) –  can demonstrate leadership on this agenda, driving action to progress transparent reporting and assurance of expenditure and actions to address sustainability challenges.

At the World Investment Forum in Abu Dhabi on 16th October three global bodies , ACCA, IFAC and IDI launched a summary of their forthcoming introduction to sustainability and assurance in the public sector.

Based on their ongoing work and recent global roundtables with public sector reporting and auditing experts, the report makes the case for a focus on the principle of sustainable development: ‘meeting the needs of the present without compromising the ability of future generations to meet their own needs’. It outlines what sustainability reporting and assurance mean for the public sector, why they are important, and key principles for governments, SAIs and other public sector bodies to consider in this journey.

Speaking at the ACCA/UN symposium on developing public sector sustainability reporting, Maggie McGhee, executive director for strategy and governance at ACCA (pictured above)  said: “A sustainable future for all is a primary concern across government activity. At the same time governments play a critical role in establishing good governance: the institutional, policy and regulatory frameworks in which society operates. So governments and other public sector bodies need to be able to measure and report on how their policies and expenditure are addressing sustainability challenges.”

 

Laura Leka, principal and public sector lead at IFAC said: “Policymakers and other stakeholders, including the public, need information to understand the sector’s impact on sustainable development. It’s important that sustainability reporting provides disclosures that are high-quality, decision-useful, and prepared in accordance with internationally recognised reporting and disclosure standards.”

 

As sustainability reporting develops, independent external assurance will become increasingly necessary to build trust in the information being disclosed. Roundtable participants saw SAIs taking the lead, building on their experience auditing progress towards sustainable development.

 

Archana Shirsat, deputy director general at IDI, said: “SAIs have a central role to play in providing independent and objective oversight on sustainability information generated by the public sector. Determining appropriate forms of assurance or confidence, engaging with stakeholders and developing auditor competencies to audit sustainability information is important to build public trust.”

 

Read the Executive Summary here.

Accountancy & Accounts, Finance and Banking, News, Wales

ACCA comments as government acts to back small businesses and tackle late payments

ACCA Cymru/Wales has today welcomed government proposals to back small businesses and tackle late payments.

Lloyd Powell, head of ACCA Cymru/Wales, said:

“As we have made clear in our response to government consultations, we welcome any move to help tackle the late payment crisis for businesses in Wales.

“Being paid on time is crucial for small businesses to thrive. Recent ACCA research highlighted the challenges SMEs across the UK face accessing finance, including the critical impact late payment has on cashflow. So we welcome the government’s announcement of further action to tackle poor payment practices.

“In our response to the government’s consultation earlier this year we underlined the key role the Small Business Commissioner plays as an external champion shining a light on unfair treatment of SMEs. We called for the Office of the Small Business Commissioner to be strengthened, so we warmly welcome plans for additional powers.

“Strengthening the regulatory regime, including payment performance obligations, is a key piece of the late payment puzzle, enabling better transparency on the performance of suppliers. However additional action, such as continued education, will be required until new legislation can be put in place. Accountants in Wales – as key advisors to small business – as well as professional bodies like ACCA, have an important role to play in sharing our experience and expertise but a collective effort is now required to change the UK’s late payment culture.”

 

Accountancy & Accounts, Mergers & Acquisitions, News

ACCA and IMAA sign co-operation deal to elevate corporate finance expertise

Strategic co-operation agreement to further mergers and acquisitions expertise 

Two leading global organisations, the Association of Chartered Certified Accountants (ACCA) and the Institute for Mergers, Acquisitions, and Alliances (IMAA), have forged a strategic co-operation agreement. 

ACCA, the global body for professional accountants, and IMAA, the leading institute in mergers and acquisitions training and education, aim to deepen the expertise of their members in crucial areas of corporate finance, particularly in mergers and acquisitions. The goal is to equip professionals with the knowledge and skills needed to excel in these increasingly important areas.

Helen Brand, chief executive of ACCA, said: “ACCA is delighted to collaborate with IMAA. Both organisations have a global footprint and share a commitment to excellence in their respective fields. Our members are equipped with world-class accountancy qualifications and frequently find themselves involved in businesses where M&A activities and joint ventures are increasingly significant. This co-operation agreement will enhance the educational opportunities that ACCA members can tap into.”

The first milestone in this partnership will offer ACCA members preferential access to IMAA’s certification programs and courses. This will enable ACCA members to gain specialised skills in M&A, adding value to their existing accounting and financial management expertise.

Christopher Kummer, founder and CEO of IMAA, commented: “We are excited about this strategic collaboration with ACCA, a leading organisation in the global accountancy landscape. Our focus has always been on promoting excellence in M&A education and research. Through this partnership, we look forward to contributing to ACCA’s educational portfolio, while also benefiting from the financial management acumen that ACCA members bring. This is a win-win situation, enhancing the scope and impact of both organisations.”

ACCA members will have the opportunity to access exclusive discounts for all M&A certification programs and the IMAA exclusive valuation training with Prof. Aswath Damodaran, the leading figure in valuation. Furthermore, the alliance will produce thought leadership content to provide fresh perspectives on the evolving landscape of corporate finance and M&A.

For more information, visit ACCA’s website and IMAA’s website.

Accountancy & Accounts, Finance and Banking, News

ACCA comments on UK and New Zealand audit authorities’ mutual recognition agreement

This morning the UK’s Financial Reporting Council (FRC) and the NZ Financial Markets Authority (FMA) signed a Memorandum of Understanding on Reciprocal Arrangements to recognise audit qualifications in both the UK and New Zealand.

Mike Suffield, Director, Policy & Insights, ACCA, said: “ACCA welcomes the UK and New Zealand audit authorities agreeing mutual recognition of audit qualifications.

“It is good to see the work the two bodies have done to assess professional competence.

“Over time this memorandum of understanding (MoU) should increase the supply of high quality auditors for both economies. This is important at a time when audit talent globally is increasingly in short supply. This will in turn support the continued efforts from the respective regulators of the two countries to drive high quality audit in the public interest.

“This builds on the professional ties between the two countries, and helps embed the value of the strategic alliance between ACCA and Chartered Accountants ANZ which works to increase the flow of qualified accountants, including auditors, between the two countries.”

Accountancy & Accounts, Finance and Banking, News

ACCA Reacts to Bank Of England’s Decision to Hold Interest Rates

The Bank of England had today announced that instead of increasing interest rates, it will hold them at the current level.

The announcement has been generally well received by finance professionals, but many have expressed concern that investments remain stifled.

Lloyd Powell head of ACCA Cymru/ Wales, said:

Our Welsh members and the businesses they support will welcome today’s decision to hold interest rates at their current level.  In Wales our members tell us that despite the recent reduction in the rate of inflation, they are still seeing negative impacts on businesses and a hold on investment, which puts the brakes on potential growth in the country. The UK Government needs to work with the Bank of England and the Senedd to do more to encourage businesses to invest and grow.

 

Jonathan Ashworth, Chief Economist ACCA, added:

Yesterday’s better than expected inflation data made today’s decision a close call, but it is still a bit of a surprise that the Monetary Policy Committee sat on their hands. The committee was split, with five members voting to keep rates on hold, and four opting for a quarter point hike. Signs of loosening in the labour market and deteriorating growth, as well as some positive developments on the inflation front, persuaded the majority to remain on hold. In my opinion, the risk remains that some further monetary tightening may still be needed in the future.

Accountancy & Accounts, Finance and Banking, News

Optimistic accountants embrace AI as profession shows desire to learn and adapt

ACCA’s Digital Horizons report reflects on how accountants see the role technology will play in their future 

Financial professionals share a sense of optimism about digital transformation including AI (artificial intelligence).  

A survey among members of ACCA (the Association of Chartered Certified Accountants) sees a range of key organisational benefits in adopting digital technologies including flexibility/adaptability, quality of products and services, sustainability performance, transparency and regulatory compliance (72%). 

However, the Digital Horizons survey – which garnered 1,074 responses from ACCA members across the globe – noted that financial professionals still see the main benefit of technology as offering efficiency/process improvements: 52% ranked efficiency, internal process optimisation or cost savings in their top three objectives when adopting a new technology.  

Only 18% included competition-related reasons, such as responding to customer demands, enhancing market insights, introducing 24/7 capabilities, or maintaining competitive advantage. 

Cost remains the top challenge when adopting technology, but organisational culture also remains a critical factor in successful adoption.  

The survey did see a more mixed response to how technology supports personal objectives. Productivity (cited by 85% of respondents), collaboration (76%) and career development (65%) were all strong, but fears over job security were apparent, only 30% saying technology was supportive in that respect. The impact on career development was notably positive, with many roundtable discussions revolving around access to learning and more flexible opportunities. 

Leadership emerged as a key theme in both the survey and the roundtables. Alistair Brisbourne, head of technology research ACCA, said: “Leadership is generally considered to be a cornerstone of successful innovation and yet it can seem quite vague as a concept when applied to digital transformation. At its core, embracing digital leadership means fostering a culture of innovation, encouraging continuous learning, and being open to change. 

“When we analyse the findings, it is clear that leadership is a fundamental trait of the most innovative organisations, and this tends to coincide with greater individual confidence amongst employees. Digital leaders inspire the confidence to embrace new tools and methodologies, such as AI and advanced analytics, which can dramatically transform processes.” 

ACCA members show a high level of trust in artificial intelligence (AI). 70% agreed with the statement ‘AI can increase the amount of time I have to focus on business-critical tasks’ – only 9% disagreed, with 15% neutral. They were less sure of the idea of AI performing business critical tasks (50% agreeing, 21% and 22% disagreeing or neutral) but even so the numbers reflected a sense of optimism.  

Although just under one-fifth report the implementation of AI within their organisation, and another 8% are trialling initiatives, there are clearly great aspirations and a considerable opportunity to leverage these new capabilities. 

Digital Horizons underlines the idea that the finance profession is well-situated to benefit from these technologies but realising their potential could require a mindset shift – thinking beyond mere efficiency gains towards a deeper understanding of value – as well as an adaptation of skills and practices.

Brisbourne said: ‘To a significant extent, AI is still thought about in terms of a gradual evolution of existing processes. From this perspective, the potential of AI is primarily in making the industry more efficient rather than thinking about how it could be fundamental to driving value related to new and existing demands.’

Basic AI literacy is key. Finance professionals must understand the capabilities, limitations and potential applications of AI within their specific domains. Marrying technical skill sets with strategic understanding will be essential to harness the true potential of technologies such as AI.

Accountancy & Accounts, E-Learning, News, Scotland

Scottish-based bookkeeping home study experts and family firm Ideal Schools celebrates 40 years in business and looks to the future

At an event to mark the 40th anniversary of Ideal Schools, a family business which specialises in online and distance-learning bookkeeping and accounting tuition, founder Elias van den Akker has reflected on his experiences starting and developing the firm, as well as looking to the future, announcing changes in the management of the company going forward.

The 79-year-old Dutch entrepreneur, who established the multiple award-winning Scottish-based firm in 1983, announced that he was retiring from his active role in the company. He also indicated that the position of Managing Director would be taken by his long-term colleague and Director Brian McVean.,

 

Mr van den Akker, known as Al, also announced that his son, Scot would become Chairman of the training provider. The changes at the top of the company became effective from September 1.

The event, at voco Hotels Grand Central Hotel in Glasgow, was attended by directors, business associates and tutors and students past and present, and accolades were given to Al, whose firm earlier this year was named the Large Training Provider of the Year at the Institute of Certified Bookkeepers (ICB) Luca Awards.

He said: “It has been a long journey, but over the years we have had some triumphs in not only guiding students to exam success, but also to improving their skills and job prospects. We have also taken on the challenge of facilitating accreditation, which is now a requirement for bookkeepers under money-laundering regulations.”

 

Scot talked about Al’s lifetime of achievement, from Friesland in Holland to New Jersey and Grand Rapids, Michigan, in the US, including an honours degree in Economics and a return to his late wife’s home in Scotland to establish Ideal Schools and an MBA.

He said: “When Al started out, there was no internet, no Facebook, X or Instagram, no electric cars. Nowadays there is so much chatter that it is hard to make an impression, but I think the interpersonal relationships between staff and students have helped immeasurably.

“Ideal Schools has always been student-centred. From the early days we have taken our lead from Al, who takes a genuine interest in every individual and encourages communication. This allows us to get to know our students and to achieve not only exam passes but also to attain our shared goals.”

 

Brian McVean said: “Like Scot, I started out helping in the office on weekends and in the holidays and the 40 years have gone by very quickly. I have always had a good working relationship with Al, who gave me an insight into what a good business should be like.

“When I was getting qualifications in management and accountancy, I did distance learning courses and that is just what they were – distant and uncommunicative. In contrast, Ideal Schools has always tried to ensure that students are treated properly and given the support they deserve.

“We now have a very good management system for students and our social media helps keep them engaged with each other as well as teaching them to work as a team. I have been very privileged to work with our amazing teachers in this fantastic community.”

 

The Glasgow-based firm specialises in delivering home study bookkeeping, payroll and taxation courses.

It works closely with the ICB – the largest bookkeeping institute in the world – and the Association of Accounting Technicians, the UK’s leading qualification and membership body for accounting staff, with around 125,000 members in more than 90 countries.