Tag Archives: Accountants

Accountancy & Accounts, Business

Latest guidance to help businesses boost confidence in AI from ACCA and EY

  • New paper sets out key considerations for business leaders and policy makers to help bolster confidence in AI systems
  • Guidance aims to support effective AI assessments, through better governance, compliance and performance
  • Paper seeks to help businesses deploy safe, reliable and effective AI systems, as AI adoption grows

Businesses that undertake effective assessments of their artificial intelligence (AI) systems can better harness the technology’s potential to boost innovation, productivity, and growth, according to a policy paper published by global accountancy body ACCA, (the Association of Chartered Certified Accountants) and global professional services organisation, EY.

 

The report – AI Assessments: Enhancing Confidence in AI – explores the emerging field of AI assessments, which encompasses a broad spectrum of AI evaluations, spanning technical, governance and compliance assessments, through to more traditional assurance and audits.

 

It outlines the role these assessments can play in evaluating whether AI systems are well governed, compliant with applicable laws and regulations, and perform in line with business leaders’ and other users’ stated expectations. It makes the case that effective AI assessments allow businesses to deploy AI systems that are more likely to be effective, reliable and trusted.

 

The paper also addresses the current challenges that come with these emerging types of AI assessments and identifies the key elements needed to make them robust and meaningful for their different users.

 

AI assessments, whether voluntary or mandated, are increasingly being considered and used by businesses, investors, insurers and policymakers as adoption and deployment of AI accelerates around the world, and amid a growing need to build and enhance trust in the technology.

The publication of this paper comes at a time when the policy landscape relating to AI assessment continues to evolve. Among the latest developments is the Trump administration’s publication of an AI Action Plan, which states that ‘rigorous evaluations can be a critical tool in defining and measuring AI reliability and performance in regulated industries’.

 

The paper details how effective AI assessments can foster increased confidence in AI. The paper identifies three emerging types of AI assessments:

  • Governance assessments – to evaluate the internal governance structures surrounding AI systems;
  • Conformity assessments – to determine compliance with any applicable laws, regulations and standards; and
  • Performance assessments – to measure AI systems against predefined quality and performance metrics.

 

The report outlines a number of current challenges that hinder the robustness and effectiveness of some AI assessment frameworks and explains how these can be managed through the adoption of well-specified objectives; clearly defined methodologies and criteria; and competent, objective and professionally accountable providers.

 

The report also sets out a number of concrete suggestions to help business leaders and policymakers ensure AI assessments are as effective as possible, including:

  • Business leaders should consider the role AI assessments – including voluntary ones – can play in enhancing corporate governance, risk management and building confidence in AI systems among customers and employees.
  • Policymakers are encouraged to very clearly define the purpose, components, methodology and criteria of AI assessments; and support AI assessment standards that are – to the extent practicable – compatible with those in other countries and in other ways minimally burdensome on businesses.
  • Policymakers should also support capacity-building in the market to provide high-quality, consistent, and cost-effective assessments.

 

Helen Brand, chief executive, ACCA, said: “As AI scales across the economy the ability to trust what it says is not just important, it is vital for the public interest. This is an area where we need to bridge skills gaps and build trust in the AI eco-system as part of driving sustainable business. We look forward to collaborating with policymakers and others in this fascinating and important area.”

 

Marie-Laure Delarue, EY global vice-chair, assurance, says: “AI has been advancing faster than many of us could have imagined, and it now faces an inflection point, presenting incredible opportunities as well as complexities and risks. It is hard to overstate the importance of ensuring safe and effective adoption of AI. Rigorous assessments are an important tool to help build confidence in the technology, and confidence is the key to unlocking AI’s full potential as a driver of growth and prosperity.

 

“As businesses navigate the complexities of AI deployment, they are asking fundamental questions about the meaning and impact of their AI initiatives. This reflects a growing demand for trust services that align with EY’s existing capabilities in assessments, readiness evaluations, and compliance.”

 

Read the report

Accountancy & Accounts, FInance, Finance and Banking

ACCA’s latest research reveals urgent need for consistency in accounting

With no IFRS Accounting Standard dedicated to accounting for carbon-related instruments, a new global study by ACCA (the Association of Chartered Certified Accountants)and the Adam Smith Business School at the University of Glasgow reveals the growing complexity and diversity in how companies account for these instruments,  and the consequences for various stakeholders in the corporate reporting ecosystem. The study, Reality of accounting for carbon-related instruments, analyses the annual reports of 300 companies in high-emitting sectors across the globe.

“Without guidance from standard setters, companies are developing their own accounting policies and providing information based on their own discretion. While the application of judgement when applying accounting policies is welcome, the use of substantially different accounting policies and different terms to describe these instruments, undermines transparency and comparability,” said Dr Ioannis Tsalavoutas, professor of accounting at the University of Glasgow.

ACCA supplements the research report with two articles giving both decision-makers and finance teams practical insights about the drivers for and implications of engaging with these instruments, plus a practical workflow that is based on existing IFRS Accounting Standards. The articles also reveal the real-world implications for employees, customers and investors navigating ESG claims, tax uncertainties and reputational pressures.

“Good quality information about carbon-related instruments would benefit a broad spectrum of stakeholders in the corporate reporting ecosystem,” said Aaron Saw, head of corporate reporting insights – financial at ACCA. “Our research provides a glimpse into the complex landscape and offers a starting point for purpose-driven accounting and reporting of carbon-related instruments.”

The world needs a future-ready standard for a growing challenge

The lack of a global accounting standard for carbon-related instruments is already creating challenges for investors and companies alike. This study urges the creation of a global accounting standard for carbon-related instruments to enable consistent accounting treatments and disclosure of relevant information. The standard should help companies determine:

  • the appropriate scope when accounting for each carbon-related instrument that faithfully represents its nature, function and intended use
  • when and how to recognise the instrument
  • the appropriate measurement approaches, and
  • relevant disclosures to enable users to evaluate the financial effects of such an instrument on the company, including its nature, function and intended use.

 

Introducing an overarching term, such as “carbon-related instruments”, would help to harmonise description across markets.

ACCA urges finance professionals, regulators, and standard-setters to explore the research report and articles and contribute to shaping the future of accounting for and reporting of carbon-related instruments. By aligning practice with purpose, we can build clarity, consistency and trust in the carbon markets.

Download the report and articles here.

Accountancy & Accounts

Confidence among UK accountants remains fragile despite Q2 rise

The latest ACCA and IMA Global Economic Conditions Survey (GECS) showed confidence amongst British SMEs has increased for the second consecutive quarter, although the improvement in Q2 was modest compared to the previous quarter. Confidence remains notably below its long-term average.

 

After significant challenges in Q4 2024 and Q1 2025, there are some possible signs of optimism. While the capital expenditure index remains significantly below its average, it improved its result this quarter and is markedly improved from its position in Q2 last year.

 

The New Orders index improved for the third consecutive quarter, which combined with improvements in the employment and staff investment indices suggests the post-Budget shock has somewhat abated and firms are starting to plan for growth.

 

These results show considerable noise in the marketplace and businesses will be looking for certainty in order to plan for growth. The index tracking access to finance has shown much volatility in the recent past, with a sharp fall this quarter. Businesses are also reporting a second quarter increase in problems securing prompt payment.

The publication of the UK government’s Spending Review, Industrial and Trade Strategies came after this data was collected, so the government will likely hope that this will provide some further improvement later in the year. However, with inflation again increasing, it’s clear that businesses remain in a cautious mood.

 

Glenn Collins, head of technical and strategic engagement, ACCA UK, added: “The UK economic and global outlooks remain challenging for business. The publication of the industrial strategy, trade strategy and upcoming small business strategy are important steps, but business needs to see steps from the Government that it is focused on providing certainty. The upcoming Budget will need to deliver clear and long-term actions that will support the rebuild of business confidence and a focus on growth.”

 

Globally, for the first time, geopolitics topped accountants’ risk priorities in Q2. Economic fears tied with regulatory and compliance risks as the second highest risk priority, while talent scarcity and cybersecurity remained critical but were slightly less prominent this quarter.

 

Climate change, fraud, and supply chain risks remained lower down the agenda for global respondents, suggesting a renewed focus on macro-external volatility, with boards and executives reacting to intensifying global conflicts, regulatory unpredictability and economic pressure.

 

Jonathan Ashworth, chief economist, ACCA, said: “After rising strongly in Q1 2025, confidence among UK small and medium-sized enterprises (SMEs) only registered a modest improvement in the Q2 2025, and remains depressed by historical standards.

 

“There were quite large gains in the Capital Expenditure and Employment indices, but both remain at low levels historically, consistent with ongoing caution among firms. There was a very minor gain in the New Orders Index, and it is not very far below its historical average.

 

“Meanwhile, it was encouraging to see that cost pressures for firms look to be becoming a little less severe. Our indicators of corporate stress appear to be broadly within the range of values they have recorded in the last few years.

 

“All in all, while some encouragement should be taken from the improvement in our key indicators this year, they still remain indicative of a very challenging backdrop for the UK economy, and developments with the global economy pose downside risks in the second half of the year.”

Accountancy, Accountancy & Accounts, Tech

AI is reshaping the work of accountants

AI will reshape the accountancy profession by changing how tasks are completed at all levels. Leading global accountancy body, ACCA (the Association of Chartered Certified Accountants) says that as AI becomes more commonplace, new responsibilities and tasks will emerge for finance teams as they focus on improving controls and specifying the desired information outcomes from machine use.

 

Accountants can thrive in an artificial intelligence-dominated workplace just as they have done in other tech revolutions

 

New roles are also expected to support activities ensuring AI systems remain accurate and compliant with professional standards and regulations.

 

ACCA’s latest AI Monitor report explores how the gradual integration of AI over coming years is likely to change how accountants work and deliver value from the automation of repetitive tasks to increased knowledge support for decision making. The report points out that while AI can help make processes more efficient, human intervention needs to be retained at critical junctures.

 

Ultimately, the integration of AI needs to reflect the fact that trust remains a fundamentally social concept built on human interaction, transparency, and oversight. And the future of accounting will involve navigating tensions between efficiency and human judgement, automation and control.

 

Alistair Brisbourne, head of technology research, ACCA, said: “Professionals who can embrace uncertainty, develop strong judgement skills, and continuously adapt their expertise will thrive even as specific tasks change or become automated.”

 

Brisbourne said: “It should be remembered that over the decades accountancy has prospered by its intelligent and enthusiastic adoption of the latest technology.”

 

The report sets out four key work trends that AI will drive for accountants:

  • A contraction in routine processing;
  • An expansion in strategic and advisory decision-making;
  • An evolution of mid-level roles to incorporate more judgement and client interaction; and
  • New responsibilities at the intersection of accounting, technology and strategy.

 

The future that is unfolding isn’t one where finance and accounting professionals are replaced – but one where their responsibilities will change. Success in this transition depends on making clear assessments of where AI will add value, establishing clear policies and governance in use, and the cultivation of skills that complement technical capabilities.

 

ACCA expects that coming years will see organisations develop more integrated workflows based on the principle that AI adoption is not just about distinguishing high versus low-value activities – but focusing on outcomes, quality and value.

 

Brisbourne said: “Only a minority of finance and accounting teams have implemented AI solutions – but these resources are widely available, and organisations are reviewing opportunities and workforce needs.

 

“AI adoption is expected to accelerate in coming years, especially as our data shows investment on AI initiatives is increasing, and widespread cloud adoption provides a crucial foundation for AI implementation.”

 

The profession is still in the invention and adoption stage of AI, as demonstrated by investment data and current adoption/usage statistics. And the profession is embracing the learning and employment challenge offered by AI as shown by the recently announced changes to the ACCA Qualification which embraces emerging advances in technology and sustainability.

 

The report adds that widescale use of a general-purpose technology, like AI, may take longer than anticipated.

 

Read How is AI reshaping finance and accounting work? https://stories.accaglobal.com/how-is-ai-reshaping-finance-and-accounting-work/index.html 

Accountancy & Accounts, Business, Business Finance, Research

Confidence among UK accountants rises despite tough trading conditions

Following a historic low of confidence in Q4 2024, Q1 2025 shows an uptick amongst UK accountants, although still well below normal confidence levels

Confidence among UK accountants rose marginally in Q1 2025, after falling to the lowest ever level in Q4 2024, according to the Q1 2025 Global Economic Conditions Survey (GECS). The survey from ACCA (the Association of Chartered Certified Accountants) and IMA® (Institute of Management Accountants) suggests that confidence amongst British SMEs has materially improved in Q1, but across the board there was a mixed set of results.

 

There was a second consecutive increase in the New Orders Index, though it remains below its historical average, but not significantly. While the Employment Index registered a decent improvement, the Capital Expenditure Index declined modestly – both are at very low levels historically.

 

Concerns about suppliers and customers going out of business declined this quarter, however there were significant concerns evident in some key measures. There was a meaningful rise in the proportion of respondents reporting increased operating costs – it is now at its highest since Q1 2023. Problems securing prompt payment and problems accessing finance indices both rose for the second consecutive quarter, which could negatively impact business cashflow and financial viability.

 

Jonathan Ashworth, chief economist, ACCA, said: “Global growth has generally proved quite resilient over recent quarters. Nonetheless, the longer that confidence remains depressed, the greater the risk that a self-reinforcing negative cycle could potentially develop, with firms pulling back on orders, capital expenditure and hiring. Unfortunately, with global trade tensions stepping

 

 

up markedly since the survey was completed, the downside risks to the global economy have increased significantly.”

 

Glenn Collins, head of technical and strategic engagement, ACCA UK, added: “With business confidence so low and all the talk of government strategies, now is the time for action. The lack of final published strategies has a negative impact on businesses, who look to those plans to prioritise investment and grow. While the global market flux provides a challenging environment, it also provides opportunities for business to expand into new markets and a lack of positive forward momentum is holding us back.”

 

Alain Mulder, senior director, Europe Operations & Global Special Projects at IMA, said: “New US policies on trade and government spending, and the uncertainty surrounding them, appear to have had a large negative impact on confidence, while declines in the global markets and signs of slowing in the US economy were likely factors too.”

 

Read the report here

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, Appointments

New year, new partner as Kilsby Williams announces significant appointment

Tax and accountancy specialist Kilsby Williams has begun the new year with a senior appointment.

Anne Smith, former tax partner at Watts Gregory LLP, has joined the Newport-based independent firm as a partner.

Anne began her career with KPMG, qualifying as a chartered accountant and later as a chartered tax adviser.

A committee member of the local south Wales branch of the Chartered Institute of Taxation, Anne has become well known in the market for her expertise and experience in tax planning specialisms such as corporate sale, purchase and reorganisation transactions, fiscal share valuations, international business restructuring, expatriate tax planning and executive remuneration.

In the last two decades, Anne has been particularly involved with succession and estate planning and other advisory work for SME businesses, their owner managers and other individuals.

Anne Smith, partner at Kilsby Williams, said: “It’s an honour to join one of the largest specialist tax teams in south Wales as I become part of the leadership team at Kilsby Williams. Throughout my career, I have applied my specialist and varied knowledge of tax planning to provide holistic advice to businesses and individuals. I look forward to sharing this with the firm’s growing number of clients.”

Simon Tee, managing partner at Kilsby Williams, said: “Our services are partner-led and based on a high level of technical skills and expertise in the fields of taxation and accountancy, so we are thrilled to welcome Anne to the firm. A partner of her calibre and experience will enhance our team and existing client services as we begin the new year and look ahead to the tax changes of the next financial year.”

Established in 1991, Kilsby Williams works with clients locally in south Wales, extending across the UK and globally. Their clients range from sole traders to international quoted groups.

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.

Appointments

Promotions and appointments as firm celebrates successful year

Tax and accountancy specialist Kilsby Williams has promoted two members of staff and appointed nine new employees to its business services and tax teams as the firm rounds off a successful 2024.

Abi Cornford and Phoebe Hughes, who specialise in audit services for private businesses, SMEs and UK subsidiaries of overseas groups, have been promoted to become managers.

Joining Abi and Phoebe in the business services team, which encompasses audit, accountancy and payroll services, are manager Ben Hinton, senior Tomos Hill, assistant Oliver Sims and trainees Tiffany Harris, Amelia Johnston, Hollie Tapper and Dylan Thomas.

The tax team has also been strengthened with James Davies, a chartered tax advisor whose expertise lies in compliance and advisory work for corporate and personal tax, joining the firm as a manager and Lewis Sincock joining as a trainee.

The latest series of promotions and appointments follow a successful year for Kilsby Williams which has seen the firm secure work with major clients and achieve a 20% growth in fee income.

Jonathan Harrhy, partner at Kilsby Williams, said: “As we come to the end of another fantastic year for the firm, we are delighted to share the news of Abi and Phoebe’s promotions and the latest additions to our team.

“This series of appointments cements our position as one of the largest independent firms in the region and an attractive place to work for emerging and experienced accountancy and tax talent.

“This round of recruitment will help us prepare for further growth in 2025. By strengthening our capable team, we are investing in our future to enable us to meet demand as more and more businesses want to benefit from our services.”

Established in 1991, Kilsby Williams works with clients locally in south Wales, extending across the UK and globally. Their clients range from sole traders to international quoted groups.