Tag Archives: ACCA

Accountancy & Accounts, Business, Sustainability

ACCA gives cautious welcome to EU sustainability changes

  • Global accountancy body says Omnibus Directive needs careful consideration

 

The European Union (EU) has proposed changes to some of the requirements in the European Green Deal, as set out in the Omnibus Directive  published recently.

 

The proposals are intended to reduce the number of companies required to publish details about their sustainability; to reduce the number of matters that companies will need to disclose; and to delay implementation by a year when many of these companies will be required to make the disclosures.

 

It will also reduce the number of companies required to audit the sustainability of their supply chain, and to limit the information required from SMEs.

 

Leading global professional accountancy body ACCA welcomes the intent behind the Omnibus Directive, which is intended to save cost, reduce the burden on smaller businesses, and make European companies more competitive.

 

ACCA has long supported the implementation of robust sustainability reporting frameworks and standards, and championed voluntary disclosures by companies around the world. ACCA is supporting accountants and businesses both within and outside of the EU with their understanding and compliance with the Corporate Sustainability Reporting Directive (CSRD).

 

Setting out an initial reaction to the Omnibus Directive, Mike Suffield, Director of ACCA’s Policy and Insights, said: “While we welcome the intent of the Directive, businesses need consistency, clarity, and certainty; the Omnibus Directive needs careful consideration to ensure that it delivers on these requirements, while acknowledging the need to drive climate action.”

 

The global accountancy body added that there is a need to maximise interoperability of sustainability reporting requirements in Europe with the IFRS Sustainability Disclosure Standards. It added it is vital that risks of the Omnibus Directive creating further divergence between the two reporting frameworks is minimised, to avoid greater friction to global markets.

 

Suffield further commented that: “ACCA will be analysing the Omnibus Directive in greater detail to fully understand the impact on our global membership and our partners. We stand ready to assist the EU in their development and implementation of proposals, and to ensure globally consistent and clear sustainability reporting requirements for business.”

 

Visit ACCA’s website for more information.

Accountancy & Accounts, Business, Business Finance, FInance

Governments should grasp gender-responsive budgeting as an opportunity to address systemic gender disparities

 

  • Accountants are uniquely placed to play a central role in contributing to an inclusive society
  • New research from leading global accountancy body ACCA highlights progress on gender-responsive budgeting

 

Gender-responsive budgeting (GRB) should be seen by policymakers and governments as a key tool for driving inclusive growth and systemic change.

 

In new research, Gender-responsive budgeting: unlocking the potential, global accountancy body ACCA draws on the experience of professional accountants and leaders across Eastern Europe, Eurasia and the Middle East.

 

Co-author of the report, Joe Fitzsimons, senior manager, Policy and insights, ACCA, said: “This report offers critical insights into the strategies and tools that facilitate the effective adoption of GRB across government agencies and state-owned organisations.

 

“Accountants have a vital role in the application of GRB using their skills and knowledge of data analysis, budgetary techniques and policy advocacy. They can also monitor and evaluate the effectiveness of GRB implementation. Governments are increasingly turning to GRB as they pursue more equitable and just societies.”

 

The report recommends policy makers adopt the following to move towards implementing GRB:

 

  • Build institutional capacity and awareness
  • Strengthen data collection and analysis
  • Learn from best practice and benchmark against peers
  • Establish inter-ministerial collaboration and partnerships
  • Champion gender-balanced leadership and decision-making.

 

Speaking ahead of International Women’s Day (IWD) on 8th March, Jessica Bingham, Global Sustainability Lead – Strategy, ACCA, co-author of the report said: “Incorporating gender considerations into budgetary processes enables governments to ensure that resources are allocated in a way that meets the diverse needs of all.

 

“This in turn promotes fairness but also lays the foundations required for sustainable economic growth and social inclusion. Policymakers have an opportunity to embrace GRB and ensure it is a fundamental component of their strategies creating a more equitable future for all.”

 

Read the report here and visit ACCA’s website for more information.

Accountancy & Accounts, AI, Business, Tech, Technology

Accountants’ professional judgement critical to success in the age of AI

 

  • The importance of professional judgement and critical thinking underlined as organisations work to adopt artificial intelligence
  • Research from leading global accountancy body ACCA highlights that successful AI adoption will need better understanding from human end-users

 

Accounting professionals have an important role to play in supporting their organisations to achieve AI adoption and implementation, according to new research from leading global accountancy body, ACCA (the Association of Chartered Certified Accountants).

 

According to the latest in the series of ACCA’s AI Monitor reports, Risk and responsibility, AI tools augment human capabilities while raising new questions about control, reliability and professional responsibility.

 

When it comes to classifying AI risks, a couple of immediate threats for many organisations relate to the significant amounts of investment being committed and either unrealistic expectations or poor judgement concerning the potential impact of integration.

 

While AI continues to promise huge potential, real value remains far more elusive and difficult to quantify.

 

ACCA believes success will come through combining traditional financial acumen with new forms of technological oversight to maintain the profession’s fundamental role as arbiters of trust and integrity. These capabilities don’t replace professional judgement, but underscore its importance.

 

Professional judgement and critical thinking will be fundamental to dealing with AI-generated insights. Demonstrating the application of professional expertise and documenting how decisions are made when using AI is important to support transparency and accountability.

 

Alistair Brisbourne, head of technology research, ACCA, said: “Safely introducing AI into how our organisations work and make decisions isn’t just about technology – it’s about redefining how we exercise things like professional judgement. As regulatory frameworks evolve and AI capabilities expand, success will depend on striking the right balance: leveraging AI’s analytical power while strengthening professional expertise.

 

“Traditional concepts of materiality and professional scepticism are being reframed in the context of AI systems that can analyse entire datasets rather than samples during an audit, for example. This shift challenges accountants to think differently about risk assessment and the nature of professional evidence.”

 

While professionals don’t need to be technical experts, they need sufficient understanding to exercise appropriate judgement. Being an AI specialist in every application is impossible. Instead, the profession needs to develop consistent frameworks that ensure uniformity in language and practice across different projects and applications.

 

The report points out that accountants are uniquely positioned to harness AI’s potential while maintaining robust safeguards. But their role in AI risk management extends beyond traditional financial controls. Moving forward, their contribution must reflect a three-layered approach: data, architecture, and business impact.

 

Brisbourne added: “Organisations need to build principles of transparency, accountability and clear procedures for monitoring and improvement into their AI adoption and implementation plans. If they do that, they’ll find themselves well-positioned to leverage new capabilities and meet changing regulatory and stakeholder expectations.”

 

Read the shorthand report.

 

Visit ACCA’s website for more information.

Accountancy & Accounts, Finance and Banking

ACCA urges businesses to weigh up sustainability implications for AI investment

 

  • Accountants need to ensure long term sustainability objectives are not sacrificed for short term AI gains.
  • Leading global accountancy body ACCA says to embrace AI effectively requires education and a cultural mind shift.

 

Accountants have a key role in driving organisations towards using AI (artificial intelligence) to hit sustainability goals, especially in the area of data quality and data governance.

 

At the same time, they must make organisations aware of the environmental impact of AI investment in terms of greater emissions and water usage.

 

Leading global accountancy body ACCA has released the latest in its AI Monitor series, Unravelling AI’s role in sustainability, which says that to embrace AI effectively requires education and a cultural mind shift.

 

Embracing this sophisticated, emerging set of technologies could help in the fight to meet present needs without compromising future generations’ ability to meet their needs. AI solutions are increasingly seen as critical in helping organisations measure and report their environmental impact.

 

Alistair Brisbourne, head of technology research at ACCA, warns AI is a double-edged sword. He said: “It is clear AI holds tremendous potential, but without due consideration AI technologies can also threaten progress towards achieving sustainability goals.”

 

This is where accountants can add vital strategic value. As ACCA’s research Chief Value Officer – the important evolution of the CFO pointed out, as organisations increasingly integrate analysis and AI into their processes, it is the human analysis and validation of the outputs that create the insights which stimulate value generation.

 

Brisbourne said: “Organisations need to focus on getting people to think about AI as something that is learning from them, encouraging people to input and maintain data that will provide more value. At the heart of these challenges lies the fundamental issue of data quality and standardisation. Accountants need to lead in the establishment of good data practices to ensure benefits are realised.”

 

AI could be used to accelerate progress on achieving UN Sustainable Development Goals (SDGs). Innovative solutions are needed with only 17% of SDG targets on track for 2030 and another 35% showing signs of stagnation or regression.

 

In particular, technology could play a supporting role in sustainability reporting with AI overcoming one key challenge – converting financial data into meaningful environmental metrics. However, the challenge of data quality is not solved purely using AI.

 

Brisbourne added: “In terms of sustainability reporting, accountants have a critical role in making sense of transaction data to underpin and improve reporting.

 

“They need to ensure high-quality data input that AI systems can effectively interpret and learn over time, dealing with exceptions and verifying data. From an assurance angle, they can also support improved validation of estimates and monitoring of models running such exercises.”

 

The report also examines how AI brings its own sustainability challenges.

 

A single ChatGPT request has been estimated by the Electric Power Research Institute to require approximately ten times the amount of energy as a Google query. Goldman Sachs estimates that currently relatively stable data centre power usage is set to surge 160% by 2030 fuelled by AI. As a result, modern data centres are also increasing water usage – extensive cooling systems are required as more powerful chips generate more heat.

 

Brisbourne notes that organisations should focus on assessing the environmental impact of AI; ensure ethical deployment; and work on initiatives most relevant to stakeholders and business objectives.

 

Visit ACCA’s website for more information.

Accountancy & Accounts, Finance and Banking

Leading professional bodies partner to empower accountants in non-executive roles

Alliance plans to boost the ACCA NEDonBoard-certified community in the UK, equipping them to strengthen board best practices

 

A leading accountancy body and the professional body for board members are joining forces to support professional accountants pursuing careers as non-executive directors (NEDs).

 

ACCA (the Association of Chartered Certified Accountants) has chosen NEDonBoard, Institute of Board Members, as its preferred partner to empower ACCA members in non-executive roles, to equip them with skills to strengthen board practices and enhance the organisations they join. This partnership brings together two leading professional bodies, working jointly to build a strong community of board-ready ACCA members.

 

ACCA and NEDonBoard are united by shared values of forward-thinking, modern governance practices, and a commitment to advancing professional standards, serving as a force for good through diverse and impactful leadership.

 

Mel Venes, sector and communities lead, ACCA UK, said: “The role of a NED is important and professionals occupying these roles are chosen due to wealth of business experience and strong reputation. We’re delighted to announce this partnership with NEDonBoard through which we hope to encourage more ACCA members to contribute their talent and experience as NEDs.

 

“An exciting aspect of this partnership is the opportunity to strengthen ACCA’s community of NEDs. Our partnership will support us to build creative, meaningful and practical support for our members in this work.”

 

The partnership aims to support ongoing professional development and growth while cultivating a dynamic and collaborative network.

 

Elise Perraud, chief operating officer, NEDonBoard, said: “We are thrilled to join forces with ACCA, a partner whose values align closely with our own, to support professionally qualified accountants on their journey to board roles. This partnership reflects our shared commitment to empower these professionals with a clear pathway to board roles, and the resources, recognition, and continuous development they need to make meaningful contributions and be impactful.”

 

The partnership formally launches on 3rd December. As a first step in the partnership ACCA and NEDonBoard, Institute of Board Members are planning a series of webinars to present the non-executive career opportunity and insights into how to secure a first role when you are an ACCA member.

 

Read more details.

Accountancy & Accounts, FInance, Finance and Banking

Half of businesses fail to explain sustainability in daily operations

  • Businesses and other organisations need to improve reporting of the interconnections between business activities with sustainability
  • New research from leading global accountancy body ACCA reveals a disjointed picture of sustainability matters and business activity.

All professionals, and especially accountants, need to gather and use insights to better understand the relationship between sustainability-related matters and business activities if businesses are to survive, according to Making information connections for sustainable value creation, the latest release in ACCA’s sustainability reporting research series.

Those that fail to do so are at risk of not being alert to challenges impacting their resilience and future survival, and could also miss good opportunities, says ACCA.

Unfortunately, connectivity for sustainability-related matters is not common practice among organisations in their corporate reporting activities, including the publication of annual reports. Frequently the connections are not communicated – risking poor quality decision-making by all stakeholders.

A survey of over 1,000 finance professionals from around the world revealed that only half (49%) of their organisations explain how sustainability is reflected in their operations and only 38% explain how they manage sustainability risks.

ACCA is recommending corporate disclosures build on the rules already laid down by the International Sustainability Standards Board (ISSB). This research has identified an opportunity for sustainable value creation by expanding the ISSB definition of connectivity and connected information in order to provide better information that will create more resilient business models.

Report author Sharon Machado, head of sustainable business at ACCA, said: “Successful organisations have always worked to make connections but if we’re to make the progress on sustainability that the world needs then we’re calling on businesses to supercharge those connections. Currently there is a real risk that progress will not be swift enough. Professional accountants are uniquely placed to connect sustainability-related information to financial information.”

The ISSB and some of ACCA’s network of business experts shared their valuable insights to help connect information for quality decision-making and sustainable value creation. Many of their recommendations call for professionals to leverage core ‘business as usual’ activities – but incorporate sustainability-related insights central to the organisation’s survival.

The research launches in the same month that ACCA was recognised with a special nomination in the international category of the UN Trade and Development (UNCTAD) International Standards of Accounting and Reporting (ISAR) Honours 2024. The award recognised ACCA’s 360-degree approach to building capacity for sustainable business through high quality, connected sustainability and financial information.

ACCA has shared the research and guidance it has produced on a range of sustainability issues at the COP29 climate summit in Azerbaijan.

The research includes real-life examples and suggested activities to help professional accountant to be the connectors that organisations need to create sustainable value. Read the research at the ACCA website.

Accountancy & Accounts, FInance, Finance and Banking

Corporate reporting complexity challenges grow as new priorities emerge

ACCA sets out guiding principles to help build trust, relevance and consistency.

With corporate reporting undergoing a significant transformation in a rapidly evolving business environment, ACCA (the Association of Chartered Certified Accountants) has published a new report, Principles of good corporate reporting. Designed to address the increasing complexities posed by new accounting and sustainability frameworks, rising stakeholder expectations, and technological advancements, it provides businesses, policymakers and other organisations with essential guidance.

 

“The corporate reporting landscape is becoming increasingly complex, with a multitude of frameworks, buzzwords, and regulations emerging to keep pace with dynamic business needs, technological advancements, and new priorities such as sustainability and the social impacts of business.” says Hsiao Mei Chow, author of the report and head of corporate reporting insights – sustainability at ACCA.

 

ACCA has set out eight principles in the report:

  1. Embed connectivity and coherence
    Encourage better linking of financial and non-financial information to create a cohesive organisational narrative that clarifies strategy, risks, and value creation.
  2. Apply a ‘building blocks’ approach, building on a global baseline
    Support consistency by adopting a global baseline for reporting standards, while balancing the need for regional adaptations.

 

  1. Be principles-based and apply proportionality

Adopt an inclusive, principles-based approach to reporting that scales with an organisation’s size and resources.

 

  1. Maximise comparability, with interoperability as a catalyst

Enable meaningful comparisons across sectors through collaboration and harmonised approaches to reporting.

 

  1. Understand and meet stakeholders’ information needs

Focus on delivering decision-useful insights tailored to the needs of varied stakeholders.

 

  1. Take a holistic approach to corporate reporting

Present a balanced view of financial and sustainability-related information, showing the full scope of organisational impact.

 

  1. Enable and support good governance practices

Establish and disclose ethical, sound governance structures to build credibility.

 

  1. Ease access and avoid disclosure overload
    Strive for clear, concise reporting that avoids overwhelming stakeholders.

 

Lloyd Powell, Head of Wales/Cymru, ACCA, said: “Getting corporate reporting right is important for larger Welsh businesses. It improves transparency and it helps with decision making, stakeholder engagement and decision making. At a time when companies are being asked to report on challenges such as sustainability action – as well as getting the finances right – we hope this report will help accountants produce meaningful information.”

ACCA’s Principles of Good Corporate Reporting serves as a comprehensive guide to navigating the complexities of modern reporting, empowering businesses and other organisations, as well as policymakers and regulators, to work together in fostering responsible, sustainable business practices. Read the full report here.

Accountancy & Accounts, Climate

Accounting professionals driving urgent action on climate reporting standards, sustainability skills-building and SME support

Leading global accountancy body works to ensure Azerbaijan climate conference understands crucial importance of building skills in climate finance, business resilience, and sustainability reporting

 

ACCA is at COP29 Azerbaijan with key partners working to emphasise the importance of the adoption of sustainability reporting standards.

 

In a series of meetings and panel discussions, ACCA (the Association of Chartered Certified Accountants) is raising awareness of how adoption of sustainability disclosures is driving investment in sustainable businesses and the net zero transition, and the urgent need for this to speed up and become universal.

 

It is also highlighting the pressing need for more professional skills capacity in sustainability. The skillset of the accountancy profession is broadening to embrace sustainable business, finance and reporting, and ACCA is working to spread these skills as widely as possible.

 

At the same time ACCA is ensuring that delegates to the UN Climate Conference are aware of the vital role that small and medium sized businesses (SMEs) have in ensuring that business moves to Net Zero.

 

Vikas Aggarwal, Regional Head of Public Affairs for Europe, Eurasia, Middle East and the Americas, ACCA, said: “It’s crucial that SMEs – the backbone of supply chains and economies across the world – aren’t forgotten in the journey to Net Zero. But they face huge challenges, including accessing sustainable finance and a lack of the professional skills needed to adopt sustainable business models.”

 

ACCA has led the accountancy profession in taking action on climate change including sharing best practice; creating knowledge hubs; working with partners across the globe; building world-leading education and learning opportunities and providing guidance and toolkits on sustainability reporting. For instance in September it launched a new Professional Diploma in Sustainability.

 

At COP16 – the UN Biodiversity Conference which took place earlier in November – ACCA launched Empowering business: navigating nature-related reporting, calling on accountants to get to grips with the concepts, principles, challenges and opportunities of nature-related reporting.

 

As COP29 opened ACCA published Weathering the storm: building resilience against climate disruptions which outlined how unprepared businesses are for climate-related disasters and as the conference draws to a close ACCA is set to release Sustainability guide to preparation: telling a connected story.

 

Lloyd Powell, Head of ACCA Wales/Cymru, said: “As our recent reports show ACCA is determined to lead the way in driving the change towards sustainable businesses. In Wales ACCA’s members understand how SMEs are the backbone of the Welsh economy and are facing myriad challenges currently. That means the accountancy profession needs to work hard to make sure we are playing our part using our skills, experience and know-how to help government, the public sector and businesses of all sizes transition as quickly as possible to create a sustainable future for all.”

 

Vikas Aggarwal, said: “Financial professionals are in no doubt that huge investment is needed in clean energy and sustainable business. Part of ACCA’s role is to explain and amplify that message to business and government.

 

“That is why we were so pleased to be part of the discussion at COP29 Azerbaijan set up by the Global Capacity Building Coalition which ACCA is a supporter member. Over the week it has been highlighted how resilience will be key, as explored in our new report, Weathering the storm. A focus on skills development is crucial; we’ll continue to work urgently to play our part because the critical need is to take action.”ACC

Accountancy & Accounts, Events, FInance, Finance and Banking, Finance News

Finance professionals look to build a better future for all

Held in Cardiff, ACCA’s Future of Finance conference set out the accountancy profession’s opportunity to build a better world

 

Technology, sustainability and talent were the three powerful themes that dominated the Finance Futures conference in Cardiff on 6 November.

 

The conference, organised by ACCA (the Association of Chartered Certified Accountants) – and featured speakers from the University of South Wales, PureCyber, British Business Bank, Menzies, Welsh Government, PwC and Sage – was attended by accountants from all over the UK, representing all sectors of the economy, from SMEs to large corporates, as well as accountants in practice who support businesses of all sizes.

 

Lucia Real-Martin, executive director, relationships at ACCA, told the conference: “Be bold and curious. We have to seize this fantastic opportunity to discuss the challenges and opportunities facing the accountancy profession. It is important to recognise the enormous value accountants create for organisations and for national economies, but we also need to shift how the public views the role of accountants.

 

“Only by analysing clearly how the role of accountants is changing – such as our contribution to building a sustainable world – will we explain the immense contribution we make to economies and society.”

 

Delegates at the Parkgate Hotel discussed how technology is changing the nature of work. They looked at the challenges of cybersecurity threats and how to manage these, as well as the opportunities presented through advances in Artificial Intelligence, automation and big data.

 

Technology is transforming accountants’ work, freeing them from routine tasks to add more value to their businesses and clients with greater insight using their intuition, insight and experience. That requires ethically trained professionals, with strong technical accounting skills as well as new skills in sustainability and digital – and strong, collaboration, communication skills as well as emotional intelligence.

 

ACCA’s commitment to equipping accountants with the skills required to face the latest challenges can be seen in the recent launch of the pioneering Professional Diploma in Sustainability. Designed for finance professionals at all levels, the diploma provides a comprehensive understanding of sustainability and accreditation to prove it.

 

In order to attract and retain the best talent in a fast-changing world, delegates were reminded of the crucial importance of training and upskilling – to adapt and to support their organisations, businesses and the economy. Employers were reminded that providing a supportive working environment and seeing businesses clearly demonstrating (‘living’) their organisational values were now a key factor in attracting and retaining the best staff.

 

Lloyd Powell, head of ACCA Cymru/Wales, said: “We were delighted to welcome ACCA members and partners from across the UK to Cardiff. Everything we heard and discussed today underlines how accountancy professionals are vital to ensuring sustainable organisations and that businesses prosper in changing and challenging times.

 

“ACCA’s partnerships in Wales, across the UK and globally with governments, universities and employers illustrates how as a profession we’re working hard to have a positive impact on the economy, society and the planet.”

Accountancy & Accounts, Business, Business Finance, Finance and Banking

ACCA sets out how accountancy profession can meet the nature reporting challenge

Report sets out accountant’s vital role in protecting and restoring the natural world

 

​​​Accountants must understand the concepts, principles, challenges and opportunities of nature-related reporting to engage with boards and management on this increasingly vital issue.

 

The global accountancy body ACCA has issued a ​paper Empowering business: navigating nature-related reporting, designed to assist accountants supporting organisations to undertake nature-related reporting and drive meaningful action to tackle the sustainability-related challenges.

 

​​Jessica Bingham, regional policy ​​​l​​​​​​​ead for ACCA​ and the report author, said: “Nature is the foundation for all life on Earth​,​ and our research suggests that an overwhelming number of organisations do not effectively assess and communicate their impacts and dependencies on nature.”

 

Organisations are increasingly disclosing their impacts and dependencies on nature, especially with the advent of the Corporate Sustainability Reporting Directive in Europe. The International Sustainability Standards Board (ISSB) has​ recently announced​ that it plans to carry out ​​research into biodiversity, ecosystems and ecosystem services as part of its work plan over the next two years​, with a view to developing global reporting standards​. ​         ​

 

These changes will require accountants to increase their knowledge in this area. ​A ​​c​ore​ element of ​​reporting ​these ​​matters is​ ​setting out​​ an organisation’s material nature-related impacts, dependencies, risks and opportunities and underpins interconnections between the natural, social and human capitals.

 

The ​key messages in​​​ the report will be discussed by Jessica Bingham at COP16 on biodiversity in Colombia 21 October​ ​-​ ​1 November​, including​​​ a panel discussion with standard setter the Global Reporting Initiative, credit agency S&P and biopharmaceutical company AstraZeneca.   ​​

​

​ACCA’s ​​​​research​, ​​in​ collaboration with​ Glasgow University​,​ found that 95% of the 183 early adopters of ​disclosures recommended by ​The Taskforce on Nature-related Financial Disclosures (TNFD) have policies or commitments to halt and ​reverse​ biodiversity loss.

 

However​,​ only 35% have policies and commitments informed by 2030 and 2050 global diversity frameworks (GBFs). Organisations that are already working with accountants on Task Force on Climate-related Financial Disclosures (TCFD) are giving themselves a head start in developing nature-related reporting​,​​ making themselves more ​resilient​ and managing their impact on nature​.

 

The rise of nature-related reporting is ​an opportunity for individual accountants and the profession across strategic planning, value creation, risk management, regulatory compliance, partnership development and decision making processes.

 

Lloyd Powell, head of ACCA Wales/Cymru, said: “Nature-related reporting is increasingly recognised as an essential component of organisational reporting. The role of accountants in this domain is pivotal in driving sustainable business practices and ensuring long-term financial health and environmental stewardship.”