Archives For Accounting for the future

By David Nussbaum, chief executive WWF-UK

David Nussbaum spoke at ACCA’s Accounting for the future event on the evolution of the green economy. In his presentation he points out that the current economic model isn’t working for both the economy and the environment and how there is a growing traction in the business community towards a green economy model which not only gives prosperity but also preserves the environment.


The accountant in 2022

accapr —  6 December 2012 — Leave a comment

Drivers of changeBy Ng Boon Yew, chair of Accountancy Futures Academy, ACCA

As the Accountancy Futures Academy chair, I am often asked ‘So what does the future look like?’ As a practitioner myself, I think that the accountant that we know today will be different in ten years’ time – but how different?

For starters, the accountancy profession does not operate in isolation and its main challenges will certainly mirror those faced by the global economy. The areas that will impact the profession the most are: trust and reporting (strengthening public image by providing a more transparent, simplified but holistic picture of a firm’s health and prospects), regulatory expectations, standards and practices (a global approach), intelligent systems and big data (exploiting the repositories of big data), and finally, organisational remit (the increasing expectations that CFOs and the finance function should play a far greater role).

So how can a global accounting professional be better prepared to adapt and respond in a decade of uncertainty and rapid change?

As businesses adapt to a turbulent environment, accountants need to take on a far greater organisational remit, from strategy formulation through to defining new business models, the accounting professionals will need to embrace an enlarged strategic and commercial role. At the same time, accountants will need to focus on a holistic view of complexity, risk and performance and establish trust and ethical leadership. There is growing consensus on the need for reporting to provide a firm-wide view of organisational health, performance and prospects and must acknowledge the complexity of modern business and encompass financial and non-financial indicators of a firm’s status and potential.

Accountant’s global orientation, the ability to master the technical, language and cultural challenges of cross-border operations will be in the spotlight as the pace of global expansion of firms from developed and developing markets increases.

Lastly, the profession needs to reinvent the talent pool. The diverse range of demands on the profession is forcing a rethink of everything from recruitment through to training and development. Entrepreneurial spirit, curiosity, creativity and strategic thinking skills could be the key competences in the selection of tomorrow’s accountants.

There are significant uncertainties about how the driving forces will play out but the accountancy profession will need to be nimble enough to adjust and evolve and be able to maintain the balance between entrepreneurism and pursuing the highest standards of financial stewardship.

How certain is this? From my point of view, pretty spot on but only time will tell!

By Faye Chua, head of future research, ACCA

Labels such as ‘constant flux’, ‘change’ and ‘uncertainty’ have often been used to characterise the global economy over the past few years. And no matter what course of action is taken or the level of appetite for public sector intervention, it seems that volatility is here to stay having become the new normal.

Over the next decade, the global landscape will constantly be reshaped by a number of drivers. Those that will have the greatest influence are market volatility, continued globalisation and innovation, shifts in wealth and power, economic uncertainty and political transitions. These trends will be magnified by rapid advances in science and technology, demographic changes and the emergence of new business models.

So how flexible and agile does one need to be to weather these shifts and volatility? Businesses will need to do more than simply adapt. They will need to be constantly innovating and re-inventing themselves in order to survive and thrive.

You will remember, back in the old days of dial-up modem, when ICQ was one of the coolest internet instant messaging services available. It was then overtaken by MSN Messenger when broadband became conventional. A few years later and large strides in mobile technology raised the stakes and brought us Facebook and BlackBerry messenger 24/7. And today the majority of us are ‘tweeting’ and ‘pinning’ as well. The pace of technological advance has led to the demise of many businesses while a handful of survivors have prospered.

There is no doubt that technological developments are dominating strategy discussion for many businesses of all sizes. As businesses will need to pursue technological leadership, embrace IT advances and leverage technology effectively as well as develop the capabilities of their employees to work with, adapt to and getting the best out of a multi-location, multicultural and age-diverse workforce. Additionally, new mindsets and approaches to technology management are also crucial in maximising value in the next decade.

But there’s more. Technology isn’t the only answer.

Businesses will need to assume and plan for volatility. They will need to account for turbulence as a very real possibility and develop strategies for a range of different economic and market scenarios will become essential. At the same time, they will need to improve their scanning skills to prepare for a wide range of possibilities, tolerate uncertainty and ‘seeing around the corners’. At an operational level, development of a truly global model is becoming a real priority which will require business to prepare for true globalisation. Finally, for companies to be successful in a fast-changing and increasingly complex environment it is essential to develop a curious, experimental and adaptable mental attitude – a critical success factor.

All this is much more easier said than done. But one thing that I’ll bet on is that the rate of change will only increase quite literally at an exponential rate and definitely beyond historical levels, and this can be scary and inspirational at the same time with difficult to envisage effects across the global economy.

By James Leaton, project director, Carbon Tracker

James recently presented at ACCA’s Accounting for the future event on the evolution of valuation techniques.

In his presentations he talks about the work that his organisation does on using emissions data to place a value on activity and how organisations are now more and more interested in using this data for future indicators on potential risks and reward.

by Adrian Berendt, executive director, LCH Clearnet

As Chair of ACCA’s Global Forum on Governance, Risk and Performance, Adrian opened the recent Accounting for the future conference with a presentation focusing on risk management. In this address, Adrian describes how reporting was at the forefront of the recent debt crisis and that there is a significant role for accountants to play if we are to avoid a crisis like this in the future. He talks about the importance of risk management, to accountants, and how that many of the practices used today are flawed; how the culture in organisations impacts on the effectiveness of risk management; and finally how accountants need to know what to measure and report on in order to manage risk and create value.