Tag Archives: survey

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.”

Connectivity, Transport, Travel

Final call to shape the future of transport in South East Wales – consultation closes May 19

Cardiff Capital Region (CCR) is issuing a final call for residents, businesses and stakeholders to help shape the future of transport in South East Wales, as the public consultation on its draft Regional Transport Plan (RTP) enters its final weeks. The consultation will close on May 19, 2025.

Since launching in March, the consultation has invited people across the Region – from Monmouthshire to Bridgend, the Valleys to the coast – to share their views on the draft Plan, which sets out a long-term vision for a more efficient, sustainable and inclusive transport network.

The draft RTP sets out Cardiff Capital Region’s goal to build a Competitive, Connected, and Resilient Region, underpinned by an affordable, low-carbon transport system that improves quality of life, reduces emissions and supports economic opportunity.

The Plan includes objectives for better access to jobs and services, cleaner air, improved safety, stronger links between communities, and better transport connections between South East Wales, the rest of the UK and beyond.

Residents, community groups, businesses and organisations are encouraged to review the draft Plan and have their say by visiting: https://regionaltransportplanccr.wales/.  Responses from the public will help shape the future of transport in the Region.

Cllr Andrew Morgan OBE, Chair of CCR’s Regional Transport Sub-Committee, and Leader of Rhondda Cynon Taf County Borough Council, said:

“We’ve made strong progress through Metro investment and low-emission initiatives, but now we need people across South East Wales to tell us what matters most to them – and time is running out. This is your chance to influence what comes next.”

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

Business, Business Advice, Economy & Jobs News, Wales

Recruitment, trade and taxation sticking points for businesses in Q3

Businesses in Wales have revealed the opportunities and challenges they faced in Q3 of 2024 in Chambers Wales South East, South West and Mid’s latest Quarterly Economic Survey.

Businesses in Wales who trade goods and services domestically performed well. Over two thirds (68%) of businesses taking part in the survey traded in the UK only. 38% of these businesses stated that there had been an increase in UK sales and 33% reported an increase in orders and advanced bookings, with both of these figures up from Q2.

It was a mixed picture, however, for Welsh businesses who trade internationally. Almost a quarter (23%) of businesses in Wales shared that their export sales had increased in the last three months, up from 15% in the previous quarter, but only 7% saw export orders and advanced bookings increase in Q3.

David Peña, the Chamber’s International Trade Manager, said: “Many of the survey respondents cited new markets as an opportunity for their business so we need to ensure that those who wish to export can access the guidance, support and contacts they need to fully achieve their trade ambitions.

“Welsh businesses have so much to offer on the international stage. Different markets bring different challenges, and penetrating these markets requires innovation and information. We heard several inspirational success stories from exporters across Wales at our recent exporting excellence event held in collaboration with our partners Atradius and Welsh Government, showing how the right support and ideas can make exporting a reality.”

The Quarterly Economic Survey for Q3 also revealed that recruitment continues to be a sticking point for many businesses in Wales.

54% of the businesses surveyed attempted to recruit staff in the last quarter, primarily for full-time positions. 79% experienced difficulties recruiting, particularly for professional and managerial positions, citing a lack of appropriate, experienced candidates and skills requirements not being met.

While recruitment and retention remain an issue, an improved economic picture has led to a shift in which external factors are more of a concern to businesses in Wales than they were three months ago. 55% of businesses in Wales stated that taxation was more of a concern this quarter, more so than interest rates, business rates and inflation.

Paul Clark, President at Chambers Wales South East, South West and Mid, said: “With an ongoing skills shortage in the private sector and concerns regarding taxation, businesses in Wales will be watching the Autumn Budget later this month with great interest. Throughout the election campaign and their time in office to date, the government has repeatedly stressed its commitment to boosting economic stability and growth, and the Budget will be chance to set these measures to develop the economy and remove barriers to a higher growth future.”

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

Over 50% of SMEs say resisting bribery and corruption results in lost business opportunities

  • New research shows 59% of SMEs believe that standing up to bribery and corruption will result in lost business opportunities.
  • However, 67% of UK respondents agree a strong anti-bribery policy boosts customer confidence.
  • 68% of UK respondents say stringent anti-corruption guidelines increase the likelihood of large contracts with big businesses and public sector bodies.

 

A new report from the Association of Chartered Certified Accountants (ACCA), Bribery and corruption: The hidden social evil on your doorstep, delves into the true extent of how bribery and corruption impact small and medium sized enterprises (SMEs) across the world, highlighting the pressing need for enhanced transparency and robust regulatory frameworks.

 

The research shows a high prevalence and deep concern about the damaging impact of bribery and corruption on SMEs, with more than half (59%) of SMEs and their advisers believing that standing up to bribery and corruption will cost them business trade or opportunities. The UK appeared more relaxed, with 46% thinking taking a stand would cost them.

 

Yet the survey also reveals a strong understanding of the benefits of standing up to bribery and corruption. 77% of global respondents, and 67% of UK respondents, agree that having a strong anti-bribery policy boosts customer confidence in their business. Furthermore, 68% globally and 68% in the UK say it increases their chances of getting lucrative contracts with big businesses and public sector bodies.

 

Jason Piper, ACCA’s head of tax and business law, said: “Corruption is a poison; it distorts markets, stunts economic growth, and deters investment.

 

“Many very small businesses don’t have the bargaining power to refuse when small bribes are demanded of them. Entrepreneurs have to choose between paying the bribe or losing the business – and often that is no choice at all for someone trying to support a family.

 

“Our report aims to arm businesses and regulators with the necessary insights and tools to root out corruption and foster an environment of transparency and trust. This could include the use of the latest digital tools. Just as technology is being used by criminals, so regulators and enforcement agencies should embrace it in the battle to detect, prevent and respond to them.”

 

Drawing from a broad spectrum of global data, expert opinions, and real-world case studies, the report explores the multifaceted impacts of corrupt practices on SMEs and economic development. It highlights the severe consequences that businesses can face, including legal penalties and damage to their reputations.

 

The report also considers the effectiveness of current anti-corruption laws and policies across different countries, suggesting that while some progress has been made, much remains to be done to align international efforts.

 

Piper added: “As global markets become increasingly interconnected, the imperative for accountability and ethical business practices becomes more pronounced.”

 

Lloyd Powell, head of ACCA Cymru/Wales, added: “The threat of bribery and corruption is something that businesses across Wales face on a daily basis. The fact our members are reporting improved prosperity through having anti-corruption policies in place is a good start, but there is more we can do to help them moving forward. How best to address modern-day corruption can be confusing, but we hope our latest report will provide some clear advice on how members can identify and prevent such activity.”

 

ACCA hopes this report will serve as a catalyst for change, encouraging entities across all sectors to evaluate their practices and align with the best standards of business conduct. The report is recommended for business leaders, policymakers, and regulatory bodies worldwide committed to uprooting corruption and fostering a fairer business environment.

 

The full report can be accessed here.

 

Visit ACCA’s website for more information.

Research

Economic confidence among finance professionals hits highest level since first half of 2023 

  • Although accountants have become more positive about the economy for the first time since Q1 2023, concerns about costs persist   
  • Global concerns about operating costs rose, as did uncertainty around geopolitical tensions and talent acquisition challenges
  • UK SMEs have experienced a similar buoying of confidence, but still face a tough economic landscape to navigate

 

Accountants and finance professionals are more confident in the global economy than they have been since early 2023.

 

The latest ACCA (the Association of Chartered Certified Accountants) and IMA® (Institute of Management Accountants) Global Economic Conditions Survey (GECS) saw a moderate increase in confidence to put the index just above its historical average. Add in small increases to the New Orders and Employment indices – both of which are slightly above their averages – and a positive picture emerges of a gradually improving economic outlook. That said, there was a small decline in the Capital Expenditure Index, which remains below average.

 

Encouragingly, there were gains in confidence in most regions. The rise in Asia Pacific was the third largest on record and may reflect growing confidence in the resilience of the US economy, signs of improvement in the Chinese data and wider global economy, and perhaps rising optimism that Japan may finally be exiting from its decades long battle against deflation. The moderate rise in confidence in Western Europe also suggests that growth may be gradually improving from the weakness of recent quarters.

 

On a less positive note, global concerns about increased operating costs rose, although they remain below their Q3 2022 peak. Interestingly, concerns about costs eased again in the advanced economies of North America and Western Europe while remaining elevated by historical standards. By contrast, cost concerns rose noticeably in Africa, Asia Pacific, and South Asia.

 

Additionally, Q1 2024 responses from the Global Risks Survey section of the GECS report demonstrate how the ripple effects of economic uncertainty have been exacerbated by rising geopolitical and talent scarcity challenges. Respondents across all sectors and regions said that they are feeling the impact of talent retention risks, with numerous respondents describing the skills shortage as an epidemic. Cybersecurity is also viewed as a significant threat, especially with advancements in generative AI making ransomware and other cybercrimes increasingly easier and quicker to carry out.

 

Jonathan Ashworth, chief economist, ACCA, said: “The survey points to some improvement in global growth. Nevertheless, while encouraging, it is no time to celebrate just yet, with the global economy facing many risks and challenges and still set for below average growth in 2024. Moreover, the elevated level of concerns about costs suggests that the major central banks should proceed very cautiously with any monetary easing.”

 

Specifically discussing the economic backdrop for UK SMEs, Glenn Collins, head of technical and strategic engagement, ACCA UK, added: “Confidence among UK SMEs increased quite materially in Q1 2024 and is only moderately below its historical average. The New Orders Index declined but is close to its average. The Capital Expenditure Index increased sharply for the second consecutive quarter and is now just above average, but the Employment Index declined again and looks weak by historical standards.

 

“Overall, the broad trend of the key activity indicators (save employment) over recent quarters points to some improvement in the economic backdrop for UK SMEs. Nevertheless, some of the early indicators of corporate stress increased in Q1. Worryingly, problems securing prompt payment, problems accessing finance, and concerns about customers going out of business all rose and are above their historical averages. This does highlight that businesses need to review their finance plans.”

 

Susie Duong, senior director of research and thought leadership at IMA, said of the report: “The continued improvement in confidence in North America, and the rise in the other indicators, likely reflects growing optimism that the US economy is on course for a ‘soft landing’ or perhaps no landing at all in 2024. That would clearly be welcome news for businesses, although it means we are likely to see less monetary easing by the Federal Reserve this year than investors expected a few months ago.”

 

Read the full report here.

 

Visit ACCA’s website for more information.

News, Retail, Retail & E-commerce

Facing shocking levels of violence at work – yet not paid enough to live on: 57% of UK retail staff say their wages barely cover basic expenses, despite many working more hours than ever

  • Study finds that UK shop workers are faring much worse financially than European counterparts
  • One in ten use food banks and nearly a third rely on friends and family to help with living expenses
  • 43% are clocking up more hours than they ever have – rising to 60% for those in wholesale roles

Following the release of the British Retail Consortium’s Crime Survey 2024 Report, revealing a 50% rise in abuse and violence aimed at shop staff, new data shows that more than half of UK retail workers say their wages barely meet even basic living costs – despite many putting in longer hours than ever to keep up with inflated expenses.

Frontline staff across several industries, including retail and wholesale, were polled in the pan-European study by workforce management experts Quinyx.  Four in ten UK retail employees (43%) said they’re working more hours than they ever have in order to meet increased living costs and support their families. For those in wholesale jobs, this rises to 60%.

Pointing to a significant financial disparity between retail staff in the UK and those in other parts of Europe, UK employees were much more likely to say their wages barely cover living costs (57%) than their counterparts in The Netherlands (31%), the Nordics (33%) and Germany (39%). For wholesale workers, the gap is even greater – 57% of UK staff, compared to 18% in The Netherlands, 22% in the Nordics and 27% in Germany say they can barely afford basic living expenses.

Despite a third (33%) of retail staff receiving a pay rise last year, 10% said they’d had to use food banks, while 29% had to accept financial support from friends and family to cover basic costs.

Toma Pagojute, chief HR officer at Quinyx, says: “The British Retail Consortium’s findings are shocking, and while no amount of pay would make the current situation acceptable, the fact that many retail staff are barely scraping by financially seems like another insult.

“If there’s a positive to take from the BRC report, it’s that it is shedding greater light on retail crime and encouraging action to make frontline workers safer. We hope it also brings opportunities to review employees’ experiences as a whole, considering all factors that can affect their mental and physical health.

“Pay is part of that, particularly as we’re still facing higher interest rates and increased living costs. In addition to any legislation brought in regarding customer behaviour and staff protection, employers should always consider the wellbeing of their workforce and look for ways to help frontliners feel less stressed, overwhelmed and overworked. This might be through flexible scheduling or improved communications – and generally making staff feel like they matter and their contributions are valued.”

Logistics, News

Almost half of UK transport and distribution staff still can’t afford basic living expenses, despite many working more hours than ever in 2023

With planned industrial action already hitting headlines in the first weeks of 2024, a new study has found that around half of UK frontline or deskless staff working in transport and distribution are still struggling to cover their basic living costs – despite many working longer hours than ever in 2023, to keep up with rising expenses.

The pan-European poll by workforce management experts Quinyx looked at the working patterns of frontline staff across several industries, including transport, warehousing and distribution. It found that 40% of UK employees in these sectors clocked up more hours in 2023 than in previous years, saying they needed the extra income to support their families.

Despite more than a third (35%) of staff receiving a pay rise in 2023, they didn’t feel better off as a result. Nearly half (48%) said their wages barely cover living costs – more than workers in similar roles in the Nordic countries (31%), The Netherlands (37%) and Germany (39%).

One in eight (13%) frontline staff said they’d had to use food banks, while around a fifth (22%) had to accept financial support from friends and family to help with basic expenses.

Toma Pagojute, chief HR officer at Quinyx, says: “As recent news of planned industrial action demonstrates, workers within logistics-based sectors such as transportation and distribution really struggled last year, and want a brighter, less stressful 2024. While many employees received pay rises, it seems they didn’t always have much of an impact, and workers had to put in more hours than ever. When the resulting pay still doesn’t cover basic living costs, it can be demoralising to say the least.

“Many organisations are facing their own challenges, of course, but we would love to see more of them placing renewed focus on their workforce’s engagement and overall wellbeing in 2024 – not just by looking at pay but on the overall experience of their staff.

“While there are signs of an improved economic outlook for 2024, changes won’t be felt overnight and there is more that bosses can do to prevent employees from feeling stressed, overworked and overwhelmed – this might be by offering flexible work schedules, improving communications, utilising more tech solutions, and ensuring working conditions are the best they can be.”

News, Technology

Keysource Launches State of the Industry Report

Keysource, the global data centre and critical environment specialist, has launched its State of the Industry Report 2022 which gathers the views and insights from over 250 IT Directors in UK & Europe. This is the fifth year of the report and it showed once again that the datacentre and technology sectors continue to grow with no signs of slowing, with investment growth being driven by continued digitalisation, IT transformation and data growth. This is despite the current global economic and political uncertainties.

In addition to the impact of this ongoing demand, the IT decision makers surveyed stated that they are continuing to shoulder a range of competing challenges and, as a result, over 99% believe it will be a difficult year. Over half of the respondents see security as the biggest challenge – up slightly from previous years – with sustainability a close second at 40%. However, the survey highlights multiple concerns with more than a third also citing pressure to adopt new technology and services, budget, access to skills and speed of change as major challenges.

In addition, 78% of respondents believe that their existing investments are preventing IT transformation – a figure similar to last year showing little or no progress in this area. This suggests that organisations are failing to understand the money savings change could bring, as they are focused on the investment and/or don’t want to admit they may have got it wrong.

This year’s focus on sustainability delivered some interesting insights. Clearly the topic and its importance is well understood but there are challenges about how this is being translated into action both for the services being consumed and/or delivered. For example, over half of the respondents admitted to not having a sustainability strategy at all, with 92% experiencing problems that are slowing or stopping their sustainability progress.

In response to the question: Where, if anywhere, do you think you can make the biggest carbon savings? – the overwhelming response was a move to using sustainable suppliers rather than looking to their own operations, usage and capacity. This opens up possible allegations of green washing and paints a picture of an industry that is full of good intentions but lacks the tools and expertise to deliver them. This mindset was clear once again for questions around the rising costs of power with 92% stating they were concerned. For about half of respondents the answer is a move towards renewables and an increase in budget – less than 50% are looking at reviewing capacity requirements showing that there is a lack of focus on consumption.

Jon Healy, Operations Director at Keysource, said: “We are operating in a world with a rapidly expanding social and economic consumption which relies on processing, data and transfer to be both secure and sustainable, alongside a skills shortage and severe supply chain issues. Our respondents need broader shoulders than ever to be able to carry all this responsibility. As an industry we are used to change and challenges but these might be our greatest ones yet.”

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To download the report please click here: https://keysource.co.uk/data-centre-industry-report/