Crystal ball gazing

As 2008 comes to an end, I wanted to take this opportunity to look ahead to 2009, and share my thoughts with you about what the year may hold.

December is often a time of reflection and of looking forward. Commentators have already begun to offer their views about what 2009 will hold. The Economist began its crystal ball gazing in mid-November when it published its World in 2009 report.

It included an excellent article about how 2009 will be the year of the chief financial officer, saying: 'As financial skills are valued more highly, CFOs will make it to the corner office in greater numbers than before.'

Here are my predictions:

• In all sectors, 2009 will be about business survival, cash generation and innovative and entrepreneurial thinking, as will matching workload to staff numbers. Accountants need to continue to be trusted advisers to businesses of all shapes and sizes - speaking with confidence as we move through 2009.

• During 2008, the spotlight fell on bankers and credit agencies for their role in the credit crisis. This could change in 2009. Accountants may need to answer difficult and complex questions. Accountants should have a role in contributing to prudential risk management in financial institutions as well as to reliable and relevant reporting.

• The drive towards international standards will accelerate in 2009, for businesses large and small. International Financial Reporting Standards for Small and Medium Sized Enterprises (SMEs) are expected from the International Accounting Standards Board (IASB). There will be a greater emphasis on narrative disclosure and how this can be streamlined. The auditing profession could take a buffeting as billions more are written off bank balance sheets for calendar year 2008.

• In 2009, the profession will need to demonstrate leadership on international accounting standards and particularly the multi-disciplinary initiative to develop an international accounting standard for greenhouse gas emissions.

I am keen to hear your views about what 2009 will hold for you, so please do share your thoughts. And, as this is my last blog for 2009, I wish you Seasons Greetings and a happy and healthy 2009.

Comments

[Kola Agunbiade]

I quite agree with the comments especially as regards the renewed spotlight that would be on the accounting profession. While the world would seek more comfort in the hands of the auditors, the auditors would be expecting their responsibilites to reduce through the application of standards. The onus would now be on the regulatory agencies, professional bodies like ACCA to provide leadership in this aspect. This is one opportunity to further lead the world, which we cannot afford to miss.