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EmergingIssuesFacingToday’sAccountantinFinancialServicesPresentedByGloriaZvaravanhu7 December2017
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“People are not going to like this, but I’d sayrelevancy. Many CPAs are nothing more than high-pricedbookkeepers and unless they move away from the ideathat they’re historians with bad memories , who can onlyreport on the past , on lagging indicators , their future isperilous …… ”
Ron Baker …founder, VeraSage Institute on the biggestissue facing the Profession
QuotableQuote
Agenda
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TransformationoftheAccountant’sRole
Growthopportunitiesfor theAccountant
RespondingtotheIssues
EmergingIssuesforAccountants
EmergingIssuesforAccountants
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Aplethoraofemergingchallengescontinuetoaffectcompaniesaswellastheaccountingprofessionals.Thekeychallenges infinancial
servicesinclude:
ChangesinFinancialReportingStandards
DigitalisationandAutomation
ExponentialgrowthinE-commerce
RapidRegulatoryreforms
GreaterfocusonERM
IncreasedEconomicuncertainty&Globalization
RegulatoryChallenges
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Regulatorsdemandingmoreassuranceandassuchregulatoryreportinghasincreasedwithmoreandmoreinformationbeing
required
§ Thishasresultedinanincreaseinbothdirectandindirectcompliancecosts
§ Anti-MoneyLaundering,CustomerDueDiligenceandCombatingFinancialTerrorismDDLegislations
§ Toughersolvencyandcapitalmanagementlawse.g Solvency2forinsurers,BASELforbanks
§ Theincreasedregulationhasheightenedtheriskofregulatoryscrutinyaswellaspenaltiesandsanctions
FinancialReportingStandards
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FinancialReportingStandardssignificantlychangingtokeepupwithregulatoryreforms.ExamplesofSuchchangesinclude:
§ IFRS9FinancialInstruments
§ IFRS15Revenuesfromcontractswithcustomers
§ IFRS16Leases
§ IFRS17Insurancecontracts
§ Exponentialgrowthine-commerceandmobiletransactionsgivingrisetobig-data
§ AccountantsredefiningthemselvesasstrategicleadersratherthannumberspeopleasITsystemsarenowbeingdevelopedtotakeoverthatrole.
§ Increasedimportanceofproficiencyinuseofonlinesoftwaree.g.cloudaccounting,socialmediaetc
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DigitalisationandAutomationDigitalisationforcingtheaccountingroletochangefromnumbercrunchingtobusinessanalysis
GreaterFocusonERM
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§ greaterscrutinyoftheeffectivenessofERM,
§ muchhigherexpectationsontheadequacyoflonger-termfinancialplansfromtheboard.
§ Newrisksemergingincludecyber,supplychainmanagement,politicalandeconomicuncertaintyrisks
Therehasbeengreaterfocusonriskmanagementduetothenatureofnewandcomplexemergingrisks.
Globalisation
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§ Onapositivenote,globalisationencouragesfreeflowofmoneybetweencapitalmarketsaswellasfreeflowoflabour
§ Howevertheseorganisationsaresubjecttovariousregulatoryregimesandlawsforthecountriesinwhichtheyoperate
Agreaternumberofcompaniesarenowconductingoperationsinternationally
TheTransformationoftheAccountant’sRole
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InThePast InTheFuture§ Focuswason
reportingonhistoricalinformation
§ Otherrolesincludecostmanagement
§ Numerical&mathematicalskillschiefrequirement
§ Focusisonabilitytodeliverbusinessinsightsabletodrivelong-termvalue
§ BusinessAcumenandstrategicthinkingkeyskills
§ Entrepreneurshipspirit
§ DataanalysisandITexpertise
Thenewchallengesprovideanopportunityforaccountantstoredefinethemselves
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RespondingtoChallengesClearlythereisagapbetweenthefutureaccountantandthestatusquo.
§ Thereisneedforeducationtobridgetheidentifiedgaps
§ UniversityandProfessionalAccountingbodiesneedtoincorporatewithintheircurriculumscourseson:§ Digitaltechnologies§ EvolvingregulationsandIntegratedreporting§ globalisation§ Carbonemissionaccountingetc
GrowthopportunitiesforAccountants
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§ GlobalAccountantsfamiliarwithinternationallawsandregulations
§ ForensicAccountantswhohelpshareholdersscrutinisecompanyactivities
§ StrategyvalidationandExecution
§ Riskmanagementrolesincludingmanagementandreportingonrisksfacedasaportfolio
§ TechnologicallySavvyAccountant
FinalWord
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Thechangingdemandsplacedontheaccountingrolewillsimplynecessitatedifferenttypesofexperiencesandskills.However,whatwillbeuniversalisthatabrighterspotlightwillbeshoneontalent,capabilityandbehavioursinthetopfinancerole.
APPR
ECIATION Thankyoufortheopportunityto
present!
CONTACTSGloriaZvaravanhu
THANKYOU