Accountant Middle East | January 2013

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SETTING STANDARDS IN FINANCIAL AUDITING & ACCOUNTANCY

JANUARY 2013

EXCLUSIVE! PINNACLE OF SUCCESS

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My father once said, ‘I have never seen a poor accountant’ – that advice still holds true today, says CFO of du Mark Shuttleworth

INTEGRATED REPORTING FRAMEWORK Challenges emerge a year since the International Integrated Reporting Council launched its pilot programme

Relive all the spectacular moments from the Accountancy & Finance recognition ceremony in Dubai. Our extensive coverage ranges from interviews with individual winners, to corporate success stories, including; PwC runs away with ‘Firm of the Year’ and ‘Deal of The Year’ gongs Phoenix students dominate nominations list for ‘Young Accountant of the Year’ HE Sheikh Nahayan on the origins of modern-­day accounting Colourful photographs of overall winners

CHARTERED ACCOUNTANT OF THE YEAR Chris Taylor, the COO of Abu Dhabi Finance, is Middle East’s undisputed top CA, and rightfully so

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EDITOR'S AUDIT

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Hats off to industry’s top guns ϐ ǡ Ǥ

,+0;690(3 ,KP[VY Joyce Njeri joyce@cpidubai.com +971 440 9140

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SETTING STANDARDS IN FINANCIAL AUDITING & ACCOUNTANCY

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;^P[[LY! @AccountancyME EXCLUSIVE! PINNACLE OF SUCCESS My father once said, ‘I have never seen a poor accountant’ – that advice still holds true today, says CFO of du Mark Shuttleworth

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© Copyright 2013 CPI All rights reserved While the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.

INTEGRATED REPORTING FRAMEWORK Challenges emerge a year since the International Integrated Reporting Council launched its pilot programme

Relive all the spectacular moments from the Accountancy & Finance recognition ceremony in Dubai. Our extensive coverage ranges from interviews with individual winners, to corporate success stories, including; PwC runs away with ‘Firm of the Year’ and ‘Deal of The Year’ gongs Phoenix students dominate nominations list for ‘Young Accountant of the Year’

3PURLK0U NYV\W! Accountant Middle East

HE Sheikh Nahayan on the origins of modern-­day accounting Colourful photographs of overall winners

CHARTERED ACCOUNTANT OF THE YEAR Chris Taylor, the COO of Abu Dhabi Finance, is Middle East’s undisputed top CA, and rightfully so

-HJLIVVR! www.facebook.com/AccountancyME

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CONTENTS JANUARY 2013

Main Features

42 42

PERSONALITY & PRACTICE:

48

ACCOUNTANCY 101:

64

DIFFERENT DIMENSIONS:

Pinnacle of success – From climbing corporate ladders to summiting world’s t allest mountains, du’s CFO Mark Shuttleworth is a high achiever whose mantra is peak performance. Fallout f rom t he A rab Spring Ǧ ϐ accountancy professionals t alk about t he recent uprisings in the Arab world in an effort to understand the current state of t he industry and t he likely f uture consequences for accountancy in the region

Eye on t he prize -­‐ Morgan International’s CEO Khalil Fawaz’s journey is testimony of how accounting and auditing can be a springboard for a rewarding career.

4

January 2013

55

Current Affairs 6 NEWS & VIEWS:

Deloitte promotes 40 professionals Ȃ ϐ announces admission of 40 new partners, principals and directors in the Middle East in 2012, as part of its growth strategy across the region.

12

INTERNATIONAL PERSPECTIVES:

ICAS faults audit r ules – Research by the Institute of Chartered Accountants of Scotland has found 'no conclusive' ϐ Ǥ

Profession Watch

10

BUSINESS PICTORIAL:

A visual story of this month’s dealings and ϐ Ǥ

58

POINT BLANK:

Battle against sleaze -­‐ Bribery and corruption in the Middle East is no longer ‘simply a cost of doing business’.

70

TAX WATCH:

UAE’s double t ax t reaties -­‐ Emirates enacts decrees for purposes of eliminating foreign levies on income from outbound activities.

72

TECH TALK:

74

INDUSTRY APPOINTMENTS:

14

ICAEW EXCELLENCE AWARDS:

Extensive coverage of t he spectacular moments f rom the Accountancy & Finance recognition ceremony in Dubai ranges f rom interviews w ith individual w inners, to corporate success stories, including: P wC r uns away w ith ‘Firm of t he Year’ and ‘Deal of T he Year’ gongs Chris Taylor, t he COO of Abu Dhabi Finance clinches coveted honour of ‘Chartered Accountant of t he Year’ Phoenix students dominate nominations list for ‘ Young Accountant of t he Year’ HE Sheikh Nahayan on t he origins of modern-­‐day accounting Colourful photographs of g uests and overall w inners The Editor of Accountant Middle East, Joyce Njeri, joins PwC Senior Partners Nitin Khanna (left) and Jacques Fakhoury, after the audit company clinched ‘Firm of the Year’ honour at the ICAEW Accountancy and Finance Excellence Awards ceremony in Dubai.

An all new paradigm -­‐ Rapid growth of ϐ of SMEs in the UAE. Revolving door -­‐ Find out the latest movement of professionals between roles, companies as well as new industry hires.

Special Reports 08 DELOITTE SURVEY:

Staying put -­‐ Deloitte’s new research reveals 80% of employees plan to continue working at their organisations over the next year.

36

INTEGRATED REPORTING:

Ironing out t he creases -­‐ Challenges are beginning to emerge, a year since the International Integrated Reporting Council launched its pilot programme to help create the world’s ϐ Ǥ

55

MOVERS & SHAKERS:

Passion for banking -­‐ Surya Subramanian, Chief ϐ ǡ ϐ Ǥ

5

NEWS & VIEWS

FLOWERS PAINTS ROSY PICTURE OF ECONOMY

STANCHART TO LAUNCH CASH MANAGEMENT TOOLS FINANCIAL INSTITUTIONS are on t he path to recovery f rom t he global economic crisis, according to J. Christopher F lowers, an ϐ Ǥ Speaking at t he London Business School (LBS) thought leadership forum in Dubai, F lowers shared his t houghts and insights on t he global ϐ an evening hosted by t he Coller Institute of Private Equity and t he LBS. “One t hing I t hink, which is not necessarily a common opinion, is t hat eventually, returns on ϐ ϐ will get back to normal,” said F lowers ( pictured). Dz ϐ industry who t hink we are facing permanently low returns on capital. I don’t see it t hat way, t he reason being t hat t hese industries are absolutely essential to t he f unctioning of t he economy. It ϐ industries so t hey can provide t he f unding t he economy needs, and t hat w ill require higher ROEs,” he added. Flowers also discussed t he crucial lessons t hat banks, insurance companies, key stakeholders and regulators have learned ϐ Ǥ particularly on Europe and t he concerns posed by uncertainty of t he Euro. “We have seen t he volatility of t he markets, but to have a situation where t here are immense doubts whether a currency w ill persist or not... is a very unusual issue. If a country abandons t he Euro, most banks in t hat particular country and some in others w ill go broke." 6

January 2013

THE STANDARD Chartered bank has presented and discussed with clients its plans to revamp its cash and liquidity management platform during the first quarter of 2013. During a conference dubbed ‘Managing Liquidity in a Dynamic economic Environment’ senior finance and treasury executives from the bank discussed the various topics including optimisation of cashflow and working capital management. “Stressed market conditions have led organisations to increasingly focus on Cash and Liquidity Management to support business growth STATS FACT:

11

STANDARD CHARTERED BRANCH OFFICES IN THE UAE

and manage their costs and investments,” said Haytham El Maayergi, Head of Transaction Banking, Standard Chartered UAE. “Standard Chartered is continuously investing in its capabilities and will launch during the first quarter of 2013 leading solutions that improve efficiency, manage risk and strengthen cash management processes for clients globally and in the region. With deep local expertise and a strong footprint across the world’s most dynamic markets of Asia, Africa and the Middle East, Standard Chartered will continue to be well placed to offer a full range of working capital solutions,” El Maayergi added. Standard Chartered has been operating in the UAE since 1958 and has the largest distribution network among international banks with 11 branches four Electronic Banking Units and more than 130 ATMs and CDMs.

NEWS & VIEWS

ACCA ONLINE DELOITTE PROMOTES 40 PROGRAMMES PROFESSIONALS LAUNCHED INTERACTIVE, THE e-­‐learning arm of the London School of Business and Finance (LSBF) has launched the t hird generation of its online ACCA programmes. According to t he trainers, the courses -­‐ delivered v ia an e-­‐learning Ȃ Dz ϐ latest t rends and meet t he feedback provided by over 12,000 students worldwide.” ϐ ǡ ǡ interaction and value for money, both t he ACCA Tuition and the ACCA Revision packages have been improved w ith an increased number of ǡ ǡ guidance and online coaching. Rob Sowerby, Director of Professional Courses at LSBF, commented: “The new product is designed to greatly improve t he level of interaction between student and t utor and we Ǥdz

DELOITTE HAS announced the admission of 40 new partners, principals and directors in the Middle East in 2012, as part of its growth strategy across the region. Sixty per cent of the newly promoted leaders are Arab professionals, the majority of whom have had international experience, while the other leaders are a diverse group of international professionals who have either long tenure in the region or have recently moved in to grow their careers and provide international

expertise to clients. Women professionals form 15% of the newly promoted team, including three Arab women leaders. This is in line with Deloitte’s strategy to advance women to leadership positions in the Middle East. “These appointments reflect the firm’s ongoing commitment to delivering innovative, world-leading thinking to all our clients, and reaffirm our confidence in the Middle East as a priority market,” said Omar Fahoum, chairman and chief executive of Deloitte Middle East.

STATS FACT:

15%

PERCENTAGE OF WOMEN PROFESSIONALS IN THE NEWLY PROMOTED TEAM

MECA summit records growth ͹ͷ ϐ ϐ ϐ conference organised by the Middle East CFO Alliance (MECA) in Dubai recently. According to t he organisers, t he event which centred on t he t heme of ‘Driving Corporate Performance in Uncertain Times’, was a huge success, a nd featured speakers drawn f rom prominent companies including SAP, Bayt.com, Signature Group, Ideal Management Consultants a nd Resources Global Professionals. MECA is the largest CFO Networking group across Middle East with its members based in UAE, KSA, GCC, Pakistan, India and other Middle Eastern countries. The group regularly organises networking and information sharing events and conferences with the support

of its sponsoring partners. Regional CFO Conference set to be held on March 27-­‐28, 2013 in Dubai. According to the group’s President ϐ ȋ Ȍǡ ʹͷͲ CFOs from UAE, KSA, Pakistan, India

ϐ participation. MECA events are invitation-­‐only and organised mainly for Ǥ ϐ of MECA, you may send your request via the group’s LinkedIn forum. 7

DELOITTE SURVEY

STAYING PUT

Deloitte’s new survey reveals 80% of employees plan to continue working at their organisations over the next year

T

HOUGH HIGH unemployment persists and the global economic recovery remains halting and uneven, employers still face challenges filling technical and skilled jobs. According to the new global talent survey from Deloitte and Forbes Insights, Talent 2020: Surveying the talent paradox from the employee ǡ ϐ ȋͺͲΨȌ surveyed report that they plan to stay with their Ȅ ϐ ͶͷǦ ʹͲͳͳǡ ȋ͸ͷΨȌ on leaving t heir organisations. “Sourcing and retaining talented human capital has become a top priority globally. It will act as the differentiating factor in the prosperity of countries and companies, especially in emerging economies such as t he Middle East,” said Ghassan Turqieh, Human Capital consulting partner at Deloitte Middle East. ;OL [HSLU[ WHYHKV_ ǡ ͳʹ Ͷ͸Ψ of surveyed employees have moved to new jobs ȋͻΨȌǡ ȋʹʹΨȌǡ ȋͳͷΨȌ Ȅ factors that might make them less inclined to ͳʹ Ǥ Ǧ ȋ͵ͳΨȌ ϐ Ǥ

46%

SURVEYED EMPLOYEES WHO HAVE MOVED TO NEW JOBS IN THE LAST 12 MONTHS 8

January 2013

ϐ ʹͲͳʹ Deloitte Review with “The talent paradox: Critical skills, recession, and theillusion of plenitude.” In this latest Talent 2020 report, Deloitte turns its focus to the employee perspective on the talent paradox. As more employees appear to be sitting tight in their current positions, companies may be tempted to neglect t heir t alent and retention strategies out of a false sense of security that their employees are here to stay. However, the report warns that companies’ most critical employees are also those

with the most opportunities for movement. “As employee expectations of business continue to grow, employers should keep a watchful eye on the latest employee attitudes and emerging t alent trends,” said Rana Ghandour Salhab, talent and communications partner at Deloitte Middle East. Dz ϐ ǡ talent management initiatives to focus on retaining two workforce segments: employees w ith critical skills who are at a high risk of departure, and the capable leaders who can advance their companies despite continuing global economic turbulence,” she added. Based on the survey results and Deloitte’s analysis ǡ ϐ emerging t rends: Engage employees w ith meaningful work or watch them walk out the door. Employees value meaningful work over other retention initiatives. ȋͶʹΨȌ new employment believe their job does not make good use of their skills and abilities. Focus on turnover “red zones.” Employee segments at high risk of departure, or “turnover red zones,” either have less than t wo years on the ȋ ͵ͳ ȌǤ W hen it comes to retention, leadership Ǥ ͳͲ ȋ͸ʹΨȌ who plan to stay w ith their current employers report high levels of t rust in corporate leadership. This edition of the Talent 2020 report reveals ϐ past year, particularly when it comes to turnover intentions. In order to help corporate leaders retain top talent, Deloitte recommends increasing a company’s focus on utilising and developing employee skills, emphasising and rewarding authentic leadership, and fostering an environment with effective, transparent communication.

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BUSINESS PICTORIAL

CRÈME DE LA CRÈME: Winners of the Institute of Chartered Accountants in England and Wales (ICAEW) Middle East Accountancy and Finance Awards are all smiles as they show off their coveted trophies during the prestigious ceremony at the Jumeirah Beach Hotel, Dubai.

SAVOURING THE MOMENT: ICAEW’s Regional Director Peter Beynon with his wife Heather, relishes in the delight of hosting a successful awards ceremony.

10 January 2013

BUSINESS PICTORIAL

MASTER OF CEREMONIES: Dubai Eye’s radio presenter Richard Dean kept the party going at the ICAEW glittering event.

11

INTERNATIONAL PERSPECTIVES

FRC ISSUES REVISED PENSION STANDARD THE UK Financial Reporting Council (FRC) has issued a revised version of actuarial standard TM1 (AS TM1). The AS TM1 sets out the assumptions to be used in annual statutory money purchase pension illustrations (SMPIs). The FRC said the most important change is t he removal of the 7% cap per annum on t he rate at which pension scheme investments are assumed to build up. The regulator w ill monitor t he assumptions used in SMPIs to assess the impact of t his removal. "Providers of SMPIs must t hink very carefully about t he assumptions they use in producing these illustrations," FRC's Actuarial Council chairman Olivia Dickson said.

ICAEW in favour of global IFRS adoption THE ICAEW has urged the International Accounting Standards Board (IASB) to 'end the era of convergence', suggesting instead that all listed companies globally should be able to apply International Financial Reporting Standards (IFRS). According to the Faculty, the last ten years of progress towards the development of global accounting standards has focused on convergence between IASB and the US Financial Accounting Standards Board (FASB). ICAEW argues that despite the lack of agreement between the t wo bodies in some key areas, the effort should now be called off. Dr Nigel Sleigh-­‐Johnson (pictured), head of the Faculty, elaborated: "All listed companies in major countries currently not part of the 'IFRS family' should be given the option of reporting under IFRS, including the US. Governments should let the market speak. Companies should be permitted to assess for themselves whether the ϐ ̶Ǥ 12 January 2013

EC TO PROPOSE MANDATORY NONFINANCIAL REPORTING THE EUROPEAN Commission (EC) will propose a change in European Union (EU) law to make further non-financial disclosures for certain company's mandatory, The Accountant has learnt. The EC plans to introduce amendments to the accounting directives 78/660/EEC and 83/349/EEC aimed at strengthening non-financial reporting requirements for large companies across the EU. At the moment, EC's draft legislation is subject to inter-service consultation, a process which would allow Directorates-General (as are known the various EC's departments and services) to give their input on the proposal. The draft bill, which is not expected to be officially published until January 2013, would make it compulsory to include environmental, social and employee aspects; respect of human rights and anti-corruption and bribery matters in companies' annual reports. The draft regulation applies to companies with more than 500 employees. STATS FACT:

500

NUMBER OF EMPLOYEES FOR COMPANIES TO BE AFFECTED BY NEW REGULATION

ICAS FAULTS AUDIT RULES RESEARCH BY the Institute of Chartered Accountants of Scotland (ICAS) has found 'no conclusive' evidence that mandatory audit firm rotation improves audit quality. The report also found, that the potentially positive influence on auditor independence that rotation may have can't guarantee a higher audit quality and that it could actually damage audit quality. The research comes as the European Parliament debates the audit reform proposals put forward by the European Commission, which includes mandatory audit firm rotation.

ICAS director of research Michelle Crickett said the ICAS research is a "timely addition to the debate over audit market reform." "Regulators need to be very clear about the long-term objectives of rotation," Crickett warned. - The Accountant, UK

INTERNATIONAL PERSPECTIVES

ICAEW APPLIES ACCOUNTANTS’ POSITIVE TO REGULATE ABOUT 2013: IRIS PROBATE SERVICES AND ABS THE INSTITUTE of Chartered Accountants in England and Wales (ICAEW) has submitted an application to the Legal Services Board to allow it to become probate services and Alternative Business Structures (ABS) regulator, following a public consultation. A successful application would therefore allow ϐ the reserved legal service of probate and to license ϐ Ǥ

IASB mulls new set of priorities THE INTERNATIONAL Accounting Standards Board (IASB) has set out its future priorities on the back of a public consultation it conducted. The consultation included public discussions, meetings with investors and online discussions and involved thousands of interested parties. ϐ ǣ Ȉ for a period of relative calm after a decade of Ǣ Ȉ unanimous support for the IASB to prioritise work ǡ Ȉ asked to make targeted improvements to respond Ǣ Ȉ should pay more attention to the implementation of standards; among others. IASB chairman Hans Hoogervorst (pictured) said "today we set out a new set of priorities, and new methods to deepen co-­‐operation with the global standard-­‐setting community."

MOST UK accountants in practice forecast a positive financial situation for their firms in the next year and expect a busy, but profitable 2013, a survey by IRIS Software Group found. The number of respondents seeing a 'positive' or 'extremely positive' outlook has increased by 10% to 67% in relation to the previous two years. For their clients, UK's accountants are not as optimistic as for their own business, with 52% of respondents expecting the clients business in 2013 to be 'mediocre'. According to the respondents, in 2013 they will be focussed on growing their client base, meeting the Real Time Information (RTI) deadline and improving their practice efficiency. IRIS surveyed 222 accountants in practice in October 2012. STATS FACT:

67%

RESPONDENTS WHO PREDICT A POSITIVE OUTLOOK FOR 2013

AUDITORS NEED CONSISTENCY IN PERFORMANCE: IFIAR MORE NEEDS to be done to improve the consistency of performance by auditors, an inaugural audit inspection findings survey has found. The International Forum of Independent Audit Regulators (IFIAR) survey identifies the level of inspection activity among IFIAR members and focuses primarily on inspections of audit firms that are members of the six largest international audit firm networks. It also responds to a request from the Financial Stability Board to provide details of findings from the inspections of audits of major financial institutions. According to the report, members are currently noting numerous

common areas or inspection themes across different jurisdictions. For example, the results indicate the largest number of inspection findings in audits of public companies occurred in the following areas: fair value measurements; internal control testing; and engagement quality control reviews. - The Accountant, UK 13

ACCOUNTANCY & FINANCE AWARDS

A HISTORY ETCHED ON CLAY HE Sheikh Nahayan goes back in time as he narrates the origins of modern-day accounting WORDS OF WISDOM: “The accounting profession owns a history much longer than the UAE’s,� says HE Sheikh Nahayan bin Mubarak Al Nahayan, Minister of Higher Education and 4DJFOUJmD 3FTFBSDI

T

ODAY’S TECHNO-­SAVVY number crunchers utilise the best tools and software that the modern world has to offer. But did you know that the forefathers of accounting relied on clay tokens for double-­entry bookkeeping? In  his  history-­â€?rich  speech  tinged  with  humour  and  wit,  HE  Sheikh  Nahayan  bin  Mubarak  Al  Nahayan,  the  Minister  Â‘ˆ ‹‰Š‡” †—…ƒ–‹‘Â? ƒÂ?† …‹‡Â?–‹Ď?‹… Research,  enlightened  dignitaries  -­â€?  who  comprised  t he  cream  of  t he  accountancy  ÂƒÂ?† Ď?‹Â?ƒÂ?…‡ ’”‘ˆ‡••‹‘Â? Č‚ ƒ„‘—– –Š‡ colloquial  origins  of  the  modern-­â€?day  act  of  debit  and  credit. “ T he  account ing  profession  ow ns  a  history  much  longer  than  the  UAE’s,â€?  he  said,  during  the  annual  Accountancy Â

14 January 2013

a n d  F i n a n c e  E x c e l l e n c e  a w a r d s  ceremony,  organised  by  the  Institute  of  Chartered  Accountants  in  England  and  Wales  ( ICAEW). “You  must  be  proud  that  your  predecessors  gave  writing  to  the  world  where  archaeologists  and  historians  Â†Â‡Â–‡”Â?‹Â?‡† ˆ”‘Â? Ď?‹”‡† …Žƒ› –‘Â?‡Â?• shaped  as  spheres,  cones  and  ovoids.â€?  +LIP[ HUK JYLKP[ LU[YPLZ The  tokens  furnished  a  basic  method  of  keeping  track  of  produce  and  exchanges  and  centuries  later,  the  advent  of  large-­â€? scale  trading  enabled  a  vast  increase  in  the  number  of  tokens  representing  items  such  as  bread,  honey,  metal  and  textiles. “People  began  to  store  t heir  tokens  in  clay  envelopes,â€?  Sheikh  A l  Nahayan  narrated,  adding  t hat  â€œtokens  added  were  in  effect Â

ACCOUNTANCY & FINANCE AWARDS

what  we  would  call  debit  entries,  while  tokens  removed  were  credit  entries.â€?  â€œEventually  t he  owners  of  clay  envelopes  realised  t hat  t hey  could  account  for  t heir  Â–‘Â?‡Â?• „› Ď?Žƒ––‡Â?‹Â?‰ –Š‡‹” ‡Â?˜‡Ž‘’‡• ƒÂ?† pressing  the  tokens  into  wetted  clay.  ÂŠÂ‡Â› –Š—• …”‡ƒ–‡† –Š‡ ™‘”Ž†ǯ• Ď?‹”•– –ƒ„Ž‡– and  moved  from  3-­â€?D  to  2-­â€?D  accounting,â€?  the  Minister  said,  to  the  amusement  of  the  dignitaries.  :LUZL VM YLZWVUZPIPSP[` While  emphasising  on  the  important  role  that  accountants  play  in  today’s  business  world,  Sheikh  Nahayan  sent  t he  crowd  rolling  with  laughter  by  quoting  a  famous  statement  by  the  â€˜King  of  Rock  and  Roll’  Elvis  Presley.  â€œHe  [Elvis  Presley]  once  said  that  â€˜I  have  no  use  for  bodyguards,  but  I  have  Â˜Â‡Â”› •’‡…‹Ď?‹… —•‡ ˆ‘” –™‘ Š‹‰ŠŽ› –”ƒ‹Â?‡† …‡”–‹Ď?‹‡† ’—„Ž‹… ƒ……‘—Â?–ƒÂ?–•ǯǤdz “Yes,  you  are  an  essential  part  of  our  society,  and,  with  your  moral  sense  of  social  responsibility  guiding  your  character,  you  are  invaluable,â€?  Sheikh   Nahayan  said. The  Minister  showered  plaudits  on  ICAEW  for  the  meticulous  planning  of  the  awards  event,  saying  with  over  138,000  members  worldwide,  the  Institute  operates  with  great  authority  and  understanding  in  the  accountancy  f ield,  a nd  â€œserving  p eople  in  a  field  that  has  recently  been  too  often  represented  in  trust-­â€?destroying  headlines,  ICAEW  knows  that  there  is  no  s ubstitute  f or  e xcellence.â€? Â

“Your challenge to be accountable to society mirrors that of our own UAE. Building a sustainable economy is our top policy priority.â€? our  environment  and  preserve  our  cultural  heritage.  That  cultural  heritage  ÂŠÂƒÂ• †‡Ď?‹Â?‡† ‘—” Â?‘”ƒŽ ’”‹Â?…‹’Ž‡•Ǥ ‡ ‹Â? the  UAE  must  honour  them  by  working  for  environmental  protection,  social  cohesion,  cultural  identity  and  quality  of  life.  We  must  earn  the  trust  and  respect  of  society  and  behave  in  a  fair  and  honest  manner.â€?  (JJV\U[HISL [V ZVJPL[` Drawing  parallels  to  the  industry,  Sheikh  Nahayan  said;  â€œLike  you,  we  are  accountable  to  society,  committed  to  its  traditions  and  values  and  dedicated  to  our  vision  and  goals  for  its  future.â€?  The  ceremony  was  attended  by  leading  professionals  from  across  the  region  and  graced  by  Olympic  sporting  legend  and  London  Olympics  organiser  Lord  Sebastian  Coe,  who  was  the  keynote  speaker.  The  awards  were  spread  over  ten  categories  and  celebrated  the  very  best  of  ÂƒÂ……‘—Â?–ƒÂ?…› ƒÂ?† Ď?‹Â?ƒÂ?…‡ ˆ”‘Â? –Š”‘—‰Š‘—– the  Middle  East,  where  winners  were  selected  by  a  judging  team  of  13  recognised Â

KEYNOTE SPEAKER: Olympic sporting legend and London Olympics organiser Lord Sebastian Coe addresses dignitaries during the BXBSET FWFOU

“The  global  economy  depends  on  your  accuracy,  your  clarity,  your  candor,â€?  he  said,  adding,  â€œYour  challenge  to  be  accountable  to  society  mirrors  that  of  our  own  UAE.  Building  a  sustainable  economy  is  our  top  policy  priority.  Our  second  priority  is  a  balanced  and  Â†Â‹Â˜Â‡Â”•‹Ď?‹‡† †‡˜‡Ž‘’Â?‡Â?– –Šƒ– ™‹ŽŽ ‡Â?•—”‡ stability.  Those  priorities  speak  to  social  responsibility.  They  also  raise  other  issues  because,  while  we  increase  prosperity  and  eliminate  poverty,  we  know  that  our  actions  must  at  the  same  time  conserve  15

ACCOUNTANCY & FINANCE AWARDS

HELLO CELLO: Escala, an electronic string quartet from London, captivated the crowd with their NVTJDBM QSPXFTT

and  respected  industry  experts  from  ÂƒÂ……‘—Â?–‹Â?‰ǥ Ď?‹Â?ƒÂ?…‡ ƒÂ?† „—•‹Â?॥Ǥ Peter  B eynon,  ICAEW  R egional  D irector  Middle  E ast,  s aid:  â€œ It  h as  b een  e xcellent  to  have  the  chance  to  recognise  and  reward  the  very  best  of  our  profession  from  across  t he  M iddle  E ast.  The  vital  work  that  finance  professionals  do  t hroughout  t he  r egion  can  s ometimes  b e  overlooked  but  w ith  talented  p eople  l ike  t hese,  we  c an  a ll  do  business  with  increasing  confidence.  The  winners  should  be  extremely  proud  of  t heir  achievements.â€?  :\WLYPVY L_JLSSLUJL PU PUK\Z[Y` Among  the  winners  were  Mohammed  Alabbar  f rom  Emaar,  who  w as  awarded  Business  Leader  of  the  Year,  CFO  of  the  Year  Prasanth  Manghat  from  NMC  Health  a nd  Muhra  a l  Mulla  f rom  Deloitte,  who  was  crowned  Young  Accountant  of  the  Year.  PwC  won  Firm  of  the  Year,  while  Tamkeen  was  recognised  for  Excellence  i n  Training  a nd  Development  of  Finance  P rofessionals.  S u r y a  S u b r a m a n i a n ,  G r oup  C h i e f  Â‹Â?ƒÂ?…‹ƒŽ ˆĎ?‹…‡” ˆ”‘Â? Žƒ–‹Â?—Â? •’‘Â?•‘”

Elvis Presley once said: ‘I have no use for bodyguards, but I have very specific use for two highly trained certified public accountants’.

16 January 2013

Â? ‹ ” ƒ– ‡ • ÇĄ • ƒ ‹†ǣ Dz Š‡ Ď? ‹ Â? ƒ Â?…‡ profession  in  t he  Middle  East  is  g rowing  and  becoming  stronger  every  year.  We  congratulate  all  the  winners  for  their  dedication  and  on  achieving  personal  excellence  whilst  also  helping  ensure  prosperity  for  t he  region.â€?  Â’‡Â? –‘ Ď?‹Â?ƒÂ?…‡ ’”‘ˆ‡••‹‘Â?ƒŽ• ƒ…”‘•• the  regional  business  community,  the  awards  recognise  those  individuals  and  organisations  who  have  demonstrated  Â•Â—’‡”‹‘” ‡š…‡ŽŽ‡Â?…‡ ‹Â? –Š‡‹” Ď?‹‡Ž† Č‚ ™Š‘ are  t he  very  best  in  what  t hey  do.  0*(,> RL` TPSLZ[VULZ Based  in  the  Dubai  Financial  Centre  (DIFC),  the  ICAEW  Middle  East  regional  Â‘ˆĎ?‹…‡ ™ƒ• ‘’‡Â?‡† ‹Â? ʹͲͲ͝ ƒÂ?† ’”‘˜‹†‡• support  to  over  1,400  members  and  students,  and  works  closely  with  governments,  regulators  and  key  stakeholders.  The  a ssociation’s  r ecent  k ey  m ilestones  include  the  launch  of  the  ICAEW  Emiratisation  scholarship  scheme  to  attract  local  Emiratis  into  the  profession  and  responding  to  various  consultation  papers  on  proposed  changes  to  financial  structures  and  regulations  i n  t he  UAE.  ICAEW  also  assists  the  Dubai  Financial  Services  Authority  (DFSA)  with  audit  quality  monitoring,  and  produces  a  series  of  thought  leadership  and  technical  events  for  both  members  and  non  members,  w ithin  t he  G CC. Â

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ACCOUNTANCY & FINANCE AWARDS

‘IT’S THE ULTIMATE CROWN’

For Chris Taylor, being declared the Middle East’s undisputed Chartered Accountant of the Year is a dream that has been several years in the making. After clinching the coveted honour at the ICAEW Accountancy and Finance Excellence Awards ceremony, the COO of Abu Dhabi Finance sat with Joyce Njeri for this revealing yet invigorating interview… Firstly, congratulations on your win at the ICAEW Middle East Accountancy and Finance Awards. How did you feel when you were called out to accept the award when you were up against other top class chartered accountants?

A.

To be honest my immediate reaction was surprise. Having seen the quality of the attendees and nominees at the event I was pretty sure that I was not going to w in t his t ime round. My surprise t urned pretty quickly to concern as I knew Richard Dean, from Dubai Eye, was going to ask me some tough questions on accepting the award.

18 January 2013

The competition for the coveted title was tough. What does winning the Chartered Accountant of t he Year Award mean to you? Winning t he award means t hree t hings to me: 1. It is recognition for a ll of t he hard work t he staff at Abu Dhabi Finance have put into improving our business performance during 2012; 2. It made me very proud to be recognised by the ICAEW. I have been a member of the ICAEW since 1995 and have been extremely happy to ϐ Chartered Accountants in the Middle East in the last couple of years.

Did you know you were shortlisted for the award, or was it a surprise?

3. ϐ ǡ ǯ subscription for t his year, on t ime.

I k new I was shortlisted and I was a lready excited as I hoped to meet my all-­‐time sports hero, Lord Sebastian Coe, at t he event.

Going back in t ime now, share w ith us why you ϐ you were hoping to achieve.

ACCOUNTANCY & FINANCE AWARDS

It is the fundamental role of the COO to provide support to the Board and CEO, to ensure that the strategic vision and mission of Abu Dhabi Finance is successfully implemented and accomplished.

19

ACCOUNTANCY & FINANCE AWARDS

I am not sure winning the award will encourage me to do anything differently in 2013, however I hope that it inspires all ADF staff to increase their efforts as it shows that even a relatively small company can achieve great things. We  entered  for  the  award  because  we  are  so  proud  of  everything  we  have  achieved  at  ADF  during  2012,  including  â€“  improved  business  per for ma nce,  excel lent  c u s t omer  ser v ice,  r i g o r o u s  r i s k  m a n a g e m e n t ,  a n d  s m o o t h  internal  processes  â€“  that  we  wanted  to  share  our  achievement s  w it h  t he  w ider  business  communit y.   The  ICAEW  awards  seemed  an  excellent  opportunity  to  do  t hat.  The  following  day  when  you  went  back  to  Abu  Dhabi,  how  did  you  share  the  news  with  y our  c olleagues?  A nd  h ow  d id  y ou  a s  a  team  c elebrate?  Â– ™‡ Š‘Ž† ƒ ™‡‡Â?Ž› ǎŠ—††Ž‡ǯǥ Ž‹Â?Â?‹Â?‰ ‘—” ‘ˆĎ?‹…‡• ˜‹ƒ ˜‹†‡‘ …‘Â?ˆ‡”‡Â?…‡ǥ ™Š‡”‡ ™‡ …‡Ž‡„”ƒ–‡

our  successes  and  share  our  areas  of  focus  and  Â‘—” …ŠƒŽŽ‡Â?‰‡• ˆ‘” –Š‡ ™‡‡Â? ƒŠ‡ƒ†Ǥ Ď?‹Â?† ‹– ƒ very  effective  tool  to  ensure  members  of  staff  are  recognised  for  their  efforts  and  we  stay  on  track  in  terms  of  the  company  and  individual  objectives.  I  am  pretty  sure  that  the  ADF  Head  of  Finance  had  posted  t he  news  on  various  social  networking  sites  before  the  end  of  the  evening  though.  We  celebrated  w ith  a  team  lunch. Now  that  you  have  been  declared  the  Chartered  Accountant  of  t he  Year,  what  would  you  do  differently  in  2013?  How  would  you  describe  your  mission  in  t he  profession?  I  am  not  sure  winning  the  award  will  encourage  me  to  do  anything  differently  in  2013,  however  I  hope  t hat  it  inspires  a ll  A DF  staff  to  increase  t heir  efforts  as  it  shows  that  even  a  relatively  small  company  can  achieve  great  things.  The  values  which  t he  ICAEW  enshrines  â€“  particularly  around  transparency  and  integrity  â€“  are  values  which  are  at  the  core  of  the  ADF  customer  service  offering  and  I  therefore  hope  the  awareness  encourages  us  to  continue  to  act  as  a  catalyst  in  the  banking  ÂƒÂ?† Ď?‹Â?ƒÂ?…‹ƒŽ •‡”˜‹…‡• •‡…–‘” ‹Â? –Š‡ Ǥ „‡Ž‹‡˜‡ my  mission  is  the  same  as  any  other  member  of  the  ICAEW  â€“  to  always  act  with  integrity  and  transparency  and  to  use  your  skills  to  improve  t he  business  performance  of  whichever  organisation  you  work  w ith. Who  has  been  your  mentor  throughout  your  c areer?  I  have  had  different  mentors  in  my  professional  career.   I  started  my  career  with  Deloitte  in  Â–Š‡ ™Š‡”‡ ™ƒ• Ž—…Â?› ‡Â?‘—‰Š –‘ Šƒ˜‡ –Š”‡‡ mentors  during  my  t ime  t here  â€“  Steve  Wilkinson,  Les  Platt  and  Sharon  Thorne.  All  three  were  completely  different  characters.   I  learnt  so  much  in  my  six  years  there  which  have  helped  me  in  my  career  to  date.  The  breadth  of  opportunity  Â‘ˆˆ‡”‡† –‘ Â?‡ ƒ– –Š‡ Ď?‹”Â?ÇĄ ƒŽ‘Â?‰ ™‹–Š –Š‡ ‡š…‡ŽŽ‡Â?– training  and  practical  experience  really  put  me  in  a  great  position  to  have  a  successful  career  in  Financial  Services.  Â• –Š‡ Š‹‡ˆ ’‡”ƒ–‹Â?‰ ˆĎ?‹…‡” ‘ˆ „— Šƒ„‹ Finance  what  does  your  work  entail?  My  role  is  very  broad  â€“  which  is  one  of  t he  t hings  I  love  about  it.  I  have  responsibility  for  Finance,  Risk  Management,  Client  Care  and  Quality  Assurance,  Human  Resources,  Operations,  IT  and  Change  Management.  Therefore  each  day Â

20 January 2013

ACCOUNTANCY & FINANCE AWARDS

can  include  staff  development  issues,  client  service  improvements,  Information  Security  Â—Â’Â†ÂƒÂ–Â‡Â•ÇĄ Ď?‹Â?ƒÂ?…‹ƒŽ ’‡”ˆ‘”Â?ƒÂ?…‡ Â”Â‡Â˜Â‹Â‡Â™Â•ÇĄ ’”‘†—…– enhancements  among  others.  Overall  though,  I  see  my  role  as  one  of  strategic  leadership,  as  I  see  it,  the  fundamental  role  of  the  COO  is  to  provide  support  to  the  Board  and  CEO  to  ensure  that  the  strategic  v ision  and  mission  of  A DF  is  successfully  implemented  and  accomplished. What  are  the  best  and  worst  things  about  your  job?  The  best  things  about  my  job  are  the  people  I  work  with  and  the  breadth  of  the  role.  From  working  with  the  ADF  Board  of  Directors  on  strategy  and  governance,  through  to  mentoring  our  talented  Emirati  staff,  to  ensure  they  are  developing  along  the  lines  of  their  career  development  plans,  no  day  i s  ever  t he  same.  T he  most  challenging  part  of  the  role  is  the  same  ÂƒÂ• Â?‘•– ‡š‡…—–‹˜‡• Č‚ Ď?‹Â?†‹Â?‰ –Š‡ ”‹‰Š– ™‘”Â?Č€ life  balance  and  ensuring  enough  time  in  the  working  day  is  spent  on  strategic  issues  and  ÂˆÂ‘”™ƒ”† ’ŽƒÂ?Â?‹Â?‰ ĥ ‘’’‘•‡† –‘ Ď?‹”‡ Ď?‹‰Š–‹Â?‰Ǥ Please  share  with  us  your  key  career  moments  in  the  journey  to  becoming  a  Chartered  Accountant.   Well  I  took  an  interesting  path  to  becoming  a  Chartered  Accountant.  I  really  wanted  to  emulate  Sebastian  Coe  and  become  an  Olympic  800  metre  champion  but  a  combination  of  injuries  and  lack  of  talent  made  me  realise  I  had  to  choose  a  Â?‘”‡ ǎ•‡Â?•‹„Ž‡ǯ ‘……—’ƒ–‹‘Â?Ǥ ƒ…–—ƒŽŽ› •–—†‹‡† Geography  as  my  undergraduate  degree,  where  I  specialised  in  the  geographical  distribution  of  crime.  Perhaps  more  relevant  than  I  thought,  Â‰Â‹Â˜Â‡Â? •‘Â?‡ ‘ˆ –Š‡ Š‹‰Š ’”‘Ď?‹Ž‡ ƒ……‘—Â?–‹Â?‰ ˆ”ƒ—†• we  have  witnessed  in  the  corporate  world  in  the  last  few  years.  During  the  career  fairs  at  Â‹Â˜Â‡Â”’‘‘Ž Â?‹˜‡”•‹–› ™ƒ• ”‡ƒŽŽ› ‹Â?’”‡••‡† „› –Š‡ ’”‡•‡Â?–ƒ–‹‘Â?• Â?ƒ†‡ „› –Š‡ ÇŽ ‹‰ ͜ǯ ……‘—Â?–‹Â?‰ Firms  and  in  particular  Deloitte.  The  quality  of  the  accounting  t rainees  and  managers  presenting  at  t he  event  (including  Sharon,  who  later  became  one  of  my  mentors)  persuaded  me  t hat  t hree  years  of  training  to  become  a  Chartered  Accountant  seemed  a  good  investment.  I  had  always  been  pretty  comfortable  with  numbers  and  economics  and  thought  I  would  Â„‡ ƒ Â?ƒ–—”ƒŽ Ď?‹–Ǥ ‹Â?† ›‘—ǥ –Š‡ Ď?‹”•– –™‘ ™‡‡Â?• of  intense  book-­â€?keeping  training  which  I  went  through  did  make  me  have  one  or  two  moments Â

where  I  reconsidered  my  decision.  Nonetheless  I  am  pleased  to  say  I  achieved  1st  time  passes  Â‹Â? ƒŽŽ ‘ˆ Â?› ‡šƒÂ?• ƒÂ?† ‹Â? ͳ͝͝ͺ “—ƒŽ‹Ď?‹‡† ĥ ƒ Chartered  Accountant.   In  total  I  spent  six  g reat  years  at  Deloitte  â€“  working  in  the  Assurance,  Management  Consulting,  and  Corporate  Finance  departments.   I  was  even  ÂŽÂ—Â…Â?› ‡Â?‘—‰Š –‘ „‡ •‡…‘Â?†‡† –‘ –Š‡ Š‡ƒ† ‘ˆĎ?‹…‡ in  New  York  for  t hree  months  where  I  worked  on  developing  t he  Deloitte  audit  methodologies,  w ith  a  focus  on  value-­â€?added  auditing. On  the  same  issue,  the  role  of  accountants  ÂŠÂƒÂ• „”‘ƒ†‡Â?‡†Ǥ ‘™ ‹–̾• Â?‘– ‘Â?Ž› …‘Â?Ď?‹Â?‡† –‘ technical,  but  also  advisory  and  corporate  strategy.  Can  you  share  with  us  about  these  changing  roles  in  today’s  globalised  world?  I  agree  that  the  role  of  the  accountant  has  Â…ŠƒÂ?‰‡† ˆ”‘Â? ǎ„‘‘Â?ÇŚÂ?‡‡’‡”ǯ –‘ ǎ•–”ƒ–‡‰‹… ÂƒÂ†Â˜Â‹Â•Â‘Â”ÇŻÇĄ although  I  t hink  t hat  most  professions  have  found  expectations  increasing  in  recent  years.  It  is  a  great  honour  and  challenge  and  I  think  it  makes  the  profession  and  a  career  in  Finance  a  very  promising  proposition.  I  think  the  ICAEW  is  doing  a  great  job  of  providing  support  to  chartered  accountants  across  the  globe  in  balancing  this  new  role.  It  is  i mportant  t hough  f or  accountants  t o  b e  very  clear  i n  w hat  t heir  r ole  i s  w ithin  a n  organisation  and  ensure  an  appropriate  balance  is  in  place  21

ACCOUNTANCY & FINANCE AWARDS

The best things about my job are the people I work with and the breadth of the role, from working with the ADF Board of Directors on strategy and governance through to mentoring our talented Emirati staff. so t hat t hey c an a chieve a ll of t he g oals l aid out for t hem. In other words there is no point being a great strategic advisor t o t he c ompany i f t he basics i n terms of management information, accounting ϐ ϐ are not in place. Therefore my message would be... ensure you get the basics right and then look to adding value through the strategic advisor r ole. I also have to mention that the operational challenges f aced b y t he a ccountancy p rofession have increased in recent years. Complicated products, increasing layers of regulation and reporting requirements, probably down-­‐ sizing i n t erms o f f inance f unctions r esources, increasingly international operations, increased l evels o f d isclosure a nd h eightened levels of analysis of financial information by regulators, investors, regulators, and media

CORPORATE TITBIT: Common values and goals are what drives a team's performance and helps to ensure they work together to support the company in achieving its aims.

have all served to increase pressure on getting the numbers right in a quicker time than e ver b efore. Organisations are becoming more and more complicated and diverse in their operations and ϐ of t he c urve. For me one of t he biggest challenges is meeting the basic accounting and reporting requirements whilst at the same time ensuring the Finance team is able to provide value added proactive business advice. What advice would you give to your peers in terms of minimising reporting mistakes? Reporting mistakes can cause a lot of damage to an organisation – it can lead to the wrong decisions being made and also reputations Ǥ ǯ Ǣ ϐ ϐ purpose. Many functions still rely on manual workarounds to cope with their everyday reporting requirements. At ADF, for example, I am very proud to say we have implemented a fully automated IFRS compliant Oracle solution Ǥ ϐ reporting system interfaces with our Lending system to produce IFRS compliant reporting with no need for manual intervention. We close our books on Day 2 after month end and were recognised by Banker Middle East Industry implementation i n 2011. Ensure you understand the bigger picture – if ǯ products, your market and the economic picture ϐ ϐ ϐ Ǥ Budget – be rigorous in your budget process. This w ill act as your sense check when comparing actual results to budget. If your budget process is weak t hen your benchmark is poor, making it t hat much harder to spot any errors. Quality staff and systems – invest heavily in hiring and developing the best team you can afford. Review time – set aside enough quality review ϐ ϐ Ǥ

22 January 2013

ACCOUNTANCY & FINANCE AWARDS

As  a  top  Chartered  Accountant  how  much  Â†Â‡Â?ƒÂ?† †‘ ›‘— ˆ‘”‡•‡‡ ˆ‘” “—ƒŽ‹Ď?‹‡† ƒ……‘—Â?–ƒÂ?–• ‹Â? –Š‡ ‹††Ž‡ ƒ•– ”‡‰‹‘Â? ‹Â? Ď?‹˜‡ years  time?  For  instance,  what  particular  skills  will  be  most  in  demand?  And  how  will  Â„—•‹Â?‡••‡• ‹Â? –Š‡ ”‡‰‹‘Â? …ŠƒÂ?‰‡ ‹Â? Ď?‹˜‡ ›‡ƒ”• as  a  result  of  t he  g lobal  economic  downturn?   I  hope  that  demand  increases  for  Chartered  Accountants  in  the  Middle  East  over  the  next  Ď?‹˜‡ ›‡ƒ”•Ǥ Š‡ ‡…‘Â?‘Â?‹… ’‡”ˆ‘”Â?ƒÂ?…‡ ‘ˆ –Š‡ region  is  improving  along  with  an  increase  in  regulatory  reform,  t ransparency  and  governance  Â”‡“—‹”‡Â?‡Â?–• ™Š‹…Š •Š‘—Ž† Â?‡ƒÂ? ™‡ŽŽ “—ƒŽ‹Ď?‹‡† accountants  are  in  demand.  Companies  and  government  will  be  looking  to  Â™Â‡ÂŽÂŽ “—ƒŽ‹Ď?‹‡† …ƒÂ?†‹†ƒ–‡• ™‹–Š ‹Â?–‡”Â?ƒ–‹‘Â?ƒŽ experience  who  can  add  value  to  their  organisations.  Businesses  in  the  region  have  already  changed  as  a  result  of  the  downturn.  Firstly  they  are  shifting  their  focus  from  West  to  East  as  it  becomes  clear  t hat  t he  A sian  economies  are  likely  to  outperform  Europe  in  the  future.  Secondly  t here  is  a  g reater  level  of  understanding  at  a  Board  level  of  the  importance  of  effective  Ď?‹Â?ƒÂ?…‹ƒŽ ”‹•Â? Â?ƒÂ?ƒ‰‡Â?‡Â?– ƒÂ?† ƒ••‘…‹ƒ–‡† governance  standards.  Accountants  who  have  experience  of  international  markets,  who  have  managed  t hrough  a  downturn  should  be  well  placed  in  t he  job  market. What  is  most  important  to  you  as  an  accountant  when  it  comes  to  building  a  successful  accounting  team  in  your  organisation?  For  me  it  does  not  matter  what  kind  of  team  you  are  trying  to  build  â€“  HR,  accounting,  business  development  and  the  like.  The  most  important  thing  is  that  the  team  shares  a  common  set  of  values  and  is  clear  about  the  objectives  of  the  organisation  and  t heir  own  team. Â

company  scorecard  into  individual  goals.  I  am  pleased  to  say  that  since  introducing  these  concepts  we  have  outperformed  against  budget  and  2012  has  been  a  record  year  for  us  in  terms  of  business  performance. What  are  some  of  your  favourite  gadgets,  apps,  tools,  and  products  -­â€?  especially  related  to  social  media?  I  like  the  Balanced  Scorecard  app  in  the  iPad  and  also  use  an  efficiency  tool  called  ǎ ‡•…—‡ ‹Â?‡ ‘„‘–ǯ ™Š‹…Š Š‡Ž’• Â?‡ Â?‘Â?‹–‘” where  I  spend  my  time.   I  think  LinkedIn  is  a  great  networking  resource  and  our  HR  team  uses  it  heavily  for  recruiting.   I  try  and  keep  up  with  trends  using  Twitter  and  stay  in  touch  with  old  f riends  on  Facebook.  How  do  you  spend  your  free  time?  What  are  your  sporting  interests,  if  any?  I  love  competitive  sports  â€“  I  used  to  compete  at  a  pretty  high  level  in  Middle  Distance  running  and  Â•Â‹Â?…‡ Â?‘˜‹Â?‰ –‘ –Š‡ ÇĄ Šƒ˜‡ –ƒÂ?‡Â? —’ ”‹ƒ–ŠŽ‘Â?Ǥ I  competed  in  t he  Abu  Dhabi  Triathlon  for  t he  last  couple  of  years.   I  enjoy  the  social  element  of  the  training  and  the  competitive  nature  of  the  sport.   I  also  enjoy  watersports,  tennis,  travelling  with  my  w ife  Tunde  and  swimming  w ith  my  daughters,  Catrin  and  Maddie.   We  had  an  amazing  adventure  in  Sri  Lanka  earlier  in  2012  and  I  would  really  recommend  a  trip  there  to  anyone  â€“  it  is  an  amazing  and  f riendly  country. Â

FAMILY SUPPORT: Chris Taylor with his wife Tunde, during one of the family holidays abroad.

Common  values  and  common  goals  are  what  Â†Â”‹˜‡• ƒ –‡ƒÂ?ǯ• ’‡”ˆ‘”Â?ƒÂ?…‡ ƒÂ?† Š‡Ž’• –‘ ‡Â?•—”‡ they  work  together  to  support  the  company  in  achieving  its  aims.  At  ADF  we  have  four  very  clearly  stated  values  â€“  One  Team,  One  Goal;  Continuous  Improvement;  Valuing  our  Community;  and  Passion  for  Our  Clients.  We  have  a  values  recognition  programme,  and  I  t alk  about  the  values  at  every  gathering  of  our  company.  Â‡ —•‡ ƒ ÇŽ ‹–‡ǯ ˜‡”•‹‘Â? ‘ˆ –Š‡ ƒŽƒÂ?…‡† …‘”‡…ƒ”† methodology  to  ensure  everyone  is  clear  about  ǯ• ‘˜‡”ƒŽŽ Â‘Â„ÂŒÂ‡Â…Â–Â‹Â˜Â‡Â•ÇĄ ƒÂ?† ™‡ …ƒ•…ƒ†‡ –Š‹• 23

ACCOUNTANCY & FINANCE AWARDS

BIG DEAL PwC shines as the tax, assurance and advisory services company runs away with ‘Firm of the Year’ and for the second year in a row, ‘Deal of The Year’ gongs

P

RICEWATERHOUSECOOPERS (PwC) has had a consistent p r e s e n c e i n t h e M i dd l e E a s t f o r o v e r 4 0 ye a r s , a p e r i o d coincidentally aligned with the life of the UAE. This history of success is explicable. At the ICAEW awards ceremony, PwC emerged as double winner, having been crowned ‘Firm of the Year’ and, for the second year running, received the ‘Corporate Finance Deal of the Year’ g ong. In an interview with Accountant Middle East, top Partners at the firm said that winning both of these awards mean a lot, even for the global f irm t hat r egularly w ins a d iverse a rray of a wards. “The M iddle E ast r egion h as a g lobal s trategic importance for such a firm, whose presence stretches from Libya in the west, to Iraq in

24 January 2013

the e ast, L ebanon i n t he n orth a nd K ingdom o f Saudi A rabia i n t he s outh,” s aid I an S chneider, a s enior P artner a t P wC. “This has been cemented by the strategic alliance of the Middle East firm with the UK firm which has facilitated more investment and g rowth,” h e a dded. .L[[PUN P[ YPNO[ According to Schneider, the award of ‘Firm of the Year’ i s “ recognition f or w hat P wC i s d oing regionally t o g et i t r ight.” “PwC has grown its operations across the region, both from a people perspective and financial results. In addition, it has been about ‘doing the right thing’. Good examples of this include; that members of staff in Libya were paid throughout the period of turmoil in the country, which resulted in many other businesses closing and withdrawing,” said Schneider, a dding t hat “ Maintaining a p resence

ACCOUNTANCY & FINANCE AWARDS

“PwC has grown its operations across the region, both from a people perspective and financial results.”

[in Libya] allowed PwC to hit the ground running a s s oon a s b usiness r estarted.” “Another was the way in which staff from Egypt were utilised on assignments throughout the wider region, at the time of the turmoil there. In many areas of the multi faceted professional services firm, the ability to b ring i n s pecialists a nd s pecific e xpertise, from wherever in the PwC organisation it happens to reside, allows the business to continue to grow and develop, and to meet the n eeds o f t he l ocal b usiness c ommunity,” the o fficial s aid. )\ZPULZZ YLZ[Y\J[\YPUN WYHJ[PJL A g ood e xample o f t his w as t he d ecision taken in 2010 to establish a Business Restructuring practice in the region. Ian Schneider, an experienced restructuring p ractitioner w ith multi -­‐ national e xperience r elocated t o D ubai in January 2011. He embarked upon the t ask o f n ot o nly b uilding a t eam, b ut also s trategically u sing t he k nowledge o f other international members of the team, to build up the experience and expertise of local practitioners to ensure a future with local c apability. That team now comprises 17 professionals from very diverse backgrounds and includes people f rom t he U K, A ustralia, Q atar, t he UAE, Jordan, E gypt a nd L ebanon.

TRIUMPH: Ian Schneider, a senior Partner at PwC poses with the award after the mSN XPO UIF A$PSQPSBUF Finance Deal of the Year’ gong at the ICAEW awards event.

“[The team] has been delighted, in only its second year, to be, in conjunction with the management team of Dubai DryDocks, the recipient of the award for ‘Corporate Finance Deal of the Year.’ As noted, PwC has now won the a ward e very t ime i t h as b een a warded a nd so the pressure is already on for next year,” Schneider s aid. A key feature of the DryDocks deal was the close working relationship between the 25

ACCOUNTANCY & FINANCE AWARDS

PwC, which has the largest and oldest restructuring practice globally, has been at the forefront of the implementation of new legal developments in reform.

Group, its legal advisors (Clifford Chance LLP) and the management team. Schneider says there was also a very good, and strong, working relationship with the lender group, led b y I an M cMillan o f H SBC. “As experienced restructuring professionals, PwC and Clifford Chance were able to bridge the gap, that always exists, between the lenders a nd t he b orrower,” S chneider s aid. 5L^ HUK \U[LZ[LK KLJYLL As far back as February 2011, the group sought to consider the contingency plan of using the new and untested Dubai Decree 57, a procedure to implement a consensual restructuring solution. The DDW debt arrangements, in common with many done in the period 2004 to 2008 required 100%, by both number a nd v alue, o f t he l enders t o a gree to a ny c hanges t o t he d ebt a rrangements. “This sort of arrangement, unfortunately, gives the ability for a holder of debt to try and extract hostage value to boost their own financial return, even if this is contrary to the interests of everyone else. In the more developed restructuring markets, processes have been developed to prevent this as is the case in the USA (under Chapter 11) and the UK (under Schemes of Arrangement or the Company Voluntary Arrangement provisions) and o ther E nglish l aw j urisdictions.” PwC, which has the largest and oldest restructuring practice globally, has been at the forefront of the implementation of new legal d evelopments i n r eform. T he f irm d id t he first c ases u nder t he n ew E uropean I nsolvency regulations and has implemented some of the more difficult Schemes of Arrangement (for instance, Re Bluebrook). As such, DryDocks turned to PwC to help with the aspect of contingency p lanning t o u se D ecree 57 i f a ll o f 26 January 2013

the lenders wouldn’t agree, which was a very high p ractical r eality. 7SHU ^P[O Z\MMPJPLU[ MSL_PIPSP[` After having completed this phase of work the PwC team were asked to help DryDocks, as their full blown financial advisor, in their discussions with their lenders. According to Schneider, t he P wC t eam w ere a ble t o d raw o n their e xperience o f o ther s ituations t o d evelop a structure, and then a proposal, that worked for a ll. “This solution gained wide lender support at the meetings that DDW organised with its lenders. However, it was still clear that some of the funds would not agree to the deal a nd w ould l ook t o s ecure a s uper r eturn. Accordingly the DryDocks management and leadership team took the brave step of being prepared t o u se D ecree 57,” h e s ays. T he f iling was made on April 1, 2012 and the process got u nderway. “Everything went to plan with one exception, caused by commercial matters within the business, b ut t he p lan h ad b een d esigned w ith sufficient f lexibility t o m anage s uch m atters.” *SHZZPJ YLZ[Y\J[\YPUN YVSL At t he b eginning o f J uly, t he r elevant m eetings of the impacted creditors (which were just the providers of debt finance – there was no impact on customers, suppliers or employees) and shareholders were convened and passed the resolutions to approve the agreed restructuring. The votes were comprehensively in favour with everyone who voted supporting the plan and only two creditors not voting – effectively 97% of the creditors s aid “ yes p lease”. The Tribunal approved the restructuring at the end of August and the various conditions precedent were discharged by October 31, 2012 and the deal came into place. PwC’s role ended that day and matters are now in the hands o f m anagement t o d eliver t heir b usiness plan a nd c omply w ith t heir l oan a greements. “It was a classic restructuring role for a world leader l ike P wC -­‐ s upporting t he c lient t o achieve their objectives by using their experience, but delivering a great 'PwC Experience' for the client,” S chneider proudly s ays.

ACCOUNTANCY & FINANCE AWARDS

ACCOUNTANCY & FINANCE excellence awards: the winners BUSINESS LEADER OF THE YEAR Award sponsor: BDO Corporate Finance Winner: HE Mohamed A labbar Shortlisted: Rizwan Sajan, HE Mohamed Alabbar, Colm McLoughlin Judges’ Comments: This award goes to a man who possesses a visionary global perspective, successful track record and a proven ability to develop and nurture business across a range of industries. He was the founder of the Dubai Department of Economic Development and served as its Director General to develop and promote the economy of Dubai before he became the Chairman of Emaar Properties, one of the world’s largest real estate companies. (Pictured: Ahmed Matroushi receives the award on behalf of HE Mohamed Alabbar).

YOUNG ACCOUNTANT OF THE YEAR Award sponsor: Taqa Global Winner: Muhra a l Mulla Shortlisted: Muhra A l Mulla, Nanditha R amanathan, Anam Sami, Nauman Mian Judges’ Comments: T his award goes to a person who has demonstrated nothing but determination to succeed in her career. She exhibits g reat ambition w ith a positive attitude and is an excellent team player. She is a leading example of t he upcoming breed of young, enterprising, highly motivated and career minded Emirati youth. Not only was she a top scorer in her university years but a lso is a top achiever in her ACA exams. T he dedication and commitment she portrayed shows that she is heading in t he r ight direction to early achievement of many key milestones in a fast-­‐track f uture c areer.

28 January 2013

ACCOUNTANCY & FINANCE AWARDS

CORPOR ATE FINANCE DEAL OF THE YEAR Award sponsor: Chalhoub Group Winner: PwC -­‐ for leading the complex restructuring of Drydocks Shortlisted: PwC & Damas, PwC & Drydocks, Deloitte Corp Finance Judges’ Comments: T his award goes to t he advisors of a ʹͲͳʹǤ ϐ major regional Middle East restructuring concluded t hrough a judicial process w ith t he support of majority creditors and public t ransparency. T his milestone deal could usher in a new era for restructuring in t he Middle East. T his restructuring was an innovative and collaborative effort and could not have been achieved w ithout t he commercial, pragmatic and innovative input f rom a ll teams working together.

EXCELLENCE IN FINANCIAL REPORTING Award sponsor: Middle East a nd North A frica practice of Ernst a nd Young Winner: Mubadala Shortlisted: Emirates, A ramex, Mubadala Judges’ Comments: T his award goes to a n organisation that operates in 11 diverse sectors, has approximately 170 consolidated entities, 40 jointly controlled entities a nd 20 associates. It has been rated 10/10 on t he L inaburg-­‐Maduell Transparency Index a nd was awarded t he Best R anked Middle East organisation on PIIE S WF scoreboard.

CFO OF THE YEAR CFO OF THE YEAR Award sponsor: K PMG Winner: Prasanth Manghat Shortlisted: James R igney f rom Etihad, Yuvraj Narayan f rom DP World, Prasanth Manghat f rom NMC Healthcare Judges’ Comments: T his award goes to an individual who continuously shows g reat leadership skills and has been instrumental in t he successful listing of t he company he works for in t he premium segment of F TSE 250 on t he London Stock E xchange in 2012.

29

ACCOUNTANCY & FINANCE AWARDS

EXCELLENCE IN TRAINING AND DEVELOPMENT OF FINANCE PROFESSIONALS Award sponsor: Nexia International Winner: Tamkeen Shortlisted: E&Y, IMA Dubai Chapter, Tamkeen Judges’ Comments: T his award goes to t he developer of “Mohasabadz ϐ ǯ Ǧ ϐ accounting a nd auditing s ystems t hough renowned expert service providers. T he programme has been successful in propagating t he importance of proper accounting a nd auditing practices a s a prerequisite to improving enterprise performance, particularly w ithin SMEs. Out of t he 1,200 ǡ ͺ͵Ͷ ϐ Ǥ

EXCELLENCE IN FINANCIAL JOURNALISM Award sponsor: Deloitte Winner: T he Business Breakfast Show Shortlisted: James Doran f rom The National, Brandy a nd Malcolm f rom t he Business Breakfast, Dubai Eye Judges’ Comments: This award goes to a show that keeps you wanting to come back for more. A show that broadcasts Ǧ ϐ ǡ local and world business stories, gives overviews of currency and commodity markets in UAE and has over 100,000 listeners.

ICAEW CHARTERED ACCOUNTANT OF THE YEAR Award sponsor: Michael Page Finance Winner: Chris Taylor Shortlisted: Chris Taylor f rom Abu Dhabi Finance, Gabrielle Kane f rom t he Accounts Dept Judges’ Comments: This award goes to a man who was able to transform the company he works for from a loss making ϐ Ǥ ϐ was almost 150%, and the growth in the loan book was about 24%. Since his taking over the support function of the company, ϐ ϐ company to ensure effective liquidity management. 30 January 2013

ACCOUNTANCY & FINANCE AWARDS

BUSINESS FINANCE TEAM OF THE YEAR Award sponsor: P wC Winner: NMC Healthcare Shortlisted: Etihad, NMC Healthcare, DHL Judges’ Comments: ϐ was instrumental in t he successful listing of its company in t he premium segment of F TSE 250 on t he London Stock Exchange in 2012. It goes to a team t hat works for one of the largest private healthcare providers in t he UAE having 6 hospitals and 8 pharmacies under its management w ith a product mix t hat includes FMCG, Educational equipment, ǡ ϐ ǡ ǡ and Veterinary products.

FIRM OF THE YEAR Award sponsor: Abraaj Group Winner: P wC Shortlisted: Deloitte & Touche, P wC, E&Y Judges’ Comments: T his award goes to a n organisation t hat has been in t he region for over 30 years w ith a w ide regional ϐ ʹǡͷͲͲ fully understand t he multi-­‐jurisdictional environment in which its clients operate. In t he UAE, it has over 58 partners and 800 s taff in which t heir main objective is to innovate a nd ϐ Ǥ

OUTSTANDING INDIVIDUAL CONTRIBUTION TO THE ACCOUNTANCY PROFESSION Winner: Edward Quinlan – Chairman of ICAEW’s Advisory Board

31

CAREER DEVELOPMENT

Anam Sami (centre) is a relatively new recruit to the KPMG ranks. She has already achieved UXP HMPCBM mSTU QSJ[FT JO -BX BOE "VEJUJOH BT QBSU of her ACCA studies in the last two sittings and recently scored an almost VOQSFDFEFOUFE JO IFS -BX QBQFS

PHOENIX STUDENTS SHINE

Learners from the financial institution dominate nominations list for ‘Young Accountant of the Year’ at ICAEW Middle East Excellence Awards 32 January 2013

CAREER DEVELOPMENT

I DAVID THOMASSON MANAGING DIRECTOR, PHOENIX FINANCIAL TRAINING

RECALL seeing an advertisement in the press during one of my visits to Dubai in 2006.

The  advert  said  that  a  major  distributor  based  in  Jebel  Ali  was  looking  for  an  accountant-­â€? cum-­â€?receptionist.  I  felt  this  summed  up,  at  the  time,  the  way  accountants  were  often  perceived  in  the  UAE  (and  to  an  extent  within  the  region)  and  just  how  far  there  was  to  go  to  educate  the  business  Â…‘Â?Â?—Â?‹–› Š‡”‡ ‹Â? –‡”Â?• ‘ˆ –Š‡ „‡Â?‡Ď?‹–• –Šƒ– “—ƒŽ‹Ď?‹‡† Ď?‹Â?ƒÂ?…‡ ’”‘ˆ‡••‹‘Â?ƒŽ• …ƒÂ? „”‹Â?‰ –‘ „‘–Š companies  and  indeed  government  organisations.  It  is  seven  years  since  I  saw  that  advertisement  â€“  have  things  moved  on  from  then  or  is  the  UAE  still  in  dire  need  of  a  new  understanding  when  it  comes  to  professional  accountancy?  <2 Z[HUKHYKZ VM [YHPUPUN We  established  Phoenix  Financial  Training  here  in  Dubai  in  August  2006  â€“  the  stated  aim  was  to  bring  UK  standards  of  training  and  customer  service  to  the  UAE  and  eventually  the  wider  region.  We  deliver  Â‡ÂšÂƒÂ?‹Â?ƒ–‹‘Â? „ƒ•‡† –”ƒ‹Â?‹Â?‰ ˆ‘” “—ƒŽ‹Ď?‹…ƒ–‹‘Â?• such  as  ICAEW  (English  Chartered),  CIMA  (the  Â“—ƒŽ‹Ď?‹…ƒ–‹‘Â? ƒ‹Â?‡† ’”‹Â?ƒ”‹Ž› ƒ– ƒÂ?ƒ‰‡Â?‡Â?– Accountants  working  in  business  rather  than  practice)  and  ACCA  (the  UK  based,  globally  portable  Â“—ƒŽ‹Ď?‹…ƒ–‹‘Â? ™Š‹…Š ‘ˆˆ‡”• ƒ Š‹‰Š †‡‰”‡‡ ‘ˆ Ď?Ž‡š‹„‹Ž‹–› to  candidates  wanting  to  have  options  on  how  to  Â’—”•—‡ –Š‡‹” …ƒ”‡‡”• ‹Â? ƒŽŽ Ď?Â‹Â‡ÂŽÂ†Â•ČŒ ƒÂ?† Šƒ˜‡ †‡Ž‹˜‡”‡† ‘˜‡” –Šƒ– –‹Â?‡ Â?ƒÂ?› Š—Â?†”‡†• ‘ˆ Â?‡™Ž› “—ƒŽ‹Ď?‹‡† accountants  into  the  UAE  job  market  and  beyond.  It  is  important  to  remember  that  as  a  training  provider  we  only  do  part  of  the  job.  Our  focus  is  on  Â†Â‡ÂŽÂ‹Â˜Â‡Â”‹Â?‰ Ď?‹”•– …Žƒ•• –—‹–‹‘Â? –‘ •—’’‘”– –Š‡•‡ Č‹ÂŽÂƒÂ”Â‰Â‡ÂŽÂ›ČŒ young  people  to  pass  their  examinations  -­â€?  however  to  become  a  recognised  member  of  these  Institutes  it  is  necessary  to  not  only  pass  exams,  but  acquire  around  three  years  of  relevant  practical  experience  and  it  is  thoroughness  of  this  combination  that Â

At the ICAEW Middle East Awards we were proud to see four of our previous and current students making up the nominations list for ‘Young Accountant of the Year’. In themselves, they define a microcosm of the growing band of young finance professionals in the region.

potentially  adds  so  much  for  businesses.  ;LJOUPJHS WYHJ[PJL VM HJJV\U[HUJ` Š› ƒ”‡ “—ƒŽ‹Ď?‹‡† ƒ……‘—Â?–ƒÂ?–• •‘ ˜ƒŽ—ƒ„Ž‡ –‘ „—•‹Â?‡••‡•Ǎ ‰ƒ‹Â? ‰‘‹Â?‰ „ƒ…Â? –‘ –Š‡ …Žƒ••‹Ď?‹‡† ’ƒ‰‡• it  was  (and  unfortunately  still  is)  common  practice  to  see  companies  looking  for  a  candidate  who  possessed  â€˜a  degree  in  accountancy  or  an  MBA  and  also  fourteen  years  in  the  role  of  Chief  Accountant  or  Financial  Controller  in  a  clothing  wholesaler  based  in  the  UAE’,  I  want  to  pull  this  apart  a  little  to  reveal  the  problems  we  sometimes  face... 1.  The  degree  â€“  The  universities  here,  and  indeed  around  the  world,  do  a  fabulous  job  in  educating  young  Â’‡‘’Ž‡ ƒÂ?† –Š‹• ‹Â?…Ž—†‡• •’‡…‹Ď?‹… ˆ—”–Š‡” ‡†—…ƒ–‹‘Â? ‹Â? –Š‡ Ď?‹Â?ƒÂ?…‹ƒŽ Ď?‹‡Ž†Ǥ Â‘Â™Â‡Â˜Â‡Â”ÇĄ ‹– •Š‘—Ž† Â?‡˜‡” „‡ presumed  that  a  college  degree  teaches  young  people  to  be  accountants  -­â€?  the  focus  is  entirely  different,  being  based  far  more  on  concepts  and  theories,  rather  than  the  technical  practice  of  accountancy.  This  is  sometimes  doubted  in  some  parts  of  the  world  but  it  should  be  remembered  that  in  the  very  highly  competitive  UK  market  the  â€˜Big  4’  happily  recruit  graduates  from  all  disciplines  â€“  their  view  is  that  they,  along  with  the  training  provider,  will  teach  the  young  people  to  be  accountants.  What  they  want  are  the  best  people  and  the  name  of  the  degree  (be  it  accountancy  or  geology)  largely  does  not  really  count,  indeed  I  have  often  heard  them  comment  that  they  may  positively  discriminate  against  Accountancy  graduates  on  the  basis  that  they  want  to  train  the  students  from  scratch  with  no  preconceptions.  2.  The  MBA Č‚ Š‹Ž•– –Š‡ ‹• ƒ „”‹ŽŽ‹ƒÂ?– “—ƒŽ‹Ď?‹…ƒ–‹‘Â? and  provides  true  insight  into  the  workings  of  a  business  and  its  environment,  it  is  still  a  very  general  Â“—ƒŽ‹Ď?‹…ƒ–‹‘Â? ƒÂ?† ‹• Â?‘•– …‡”–ƒ‹Â?Ž› Â?‘– ƒ •—„•–‹–—–‡ ˆ‘” three  years  of  technical  accountancy  training.  I  see  the  depth  and  breadth  of  material  our  students  have  to  cover  in  all  aspects  of  Financial  Reporting,  Management  Accounting,  Budgeting  and  Control  along  with  related  disciplines  in  the  areas  of  Treasury,  Taxation  and  Auditing  and  know  that  a  Â‰Â‡Â?‡”ƒŽ‹•– “—ƒŽ‹Ď?‹…ƒ–‹‘Â?ÇĄ ‹””‡•’‡…–‹˜‡ ‘ˆ –Š‡ Ž‡˜‡Ž it  is  pitched  at,  is  no  substitute  for  the  integrity  of  Â–Š‹• –”ƒ‹Â?‹Â?‰Ǥ “—ƒŽ‹Ď?‹‡† •–ƒˆˆ Šƒ˜‡ –Š‡‹” ’Žƒ…‡ ‹Â? businesses  but  not  as  accountants.  3.  The  fourteen  years  â€˜in  the  same  job’  â€“  This  is  simply  a  replacement  for  the  professional  Â“—ƒŽ‹Ď?‹…ƒ–‹‘Â? –Š‡› •Š‘—Ž† Šƒ˜‡Ǥ ˆ –Š‡› Šƒ˜‡ „‡‡Â? doing  this  same  job,  in  the  same  industry,  in  the  same  location  for  14  years  why  would  they  want  33

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to  come  and  do  the  same  thing  â€“  if  they  do  then,  is  this  the  type  of  person  you  want?  A  thorough  technical  training  focuses  on  building  skills  that  are  transferable  across  industries  and  processes. ‘ ™Šƒ– ‹• –Š‡ ƒÂ?•™‡”Ǎ Š‡ Š—‰‡ „‡Â?‡Ď?‹– ‘ˆ ’”‘ˆ‡••‹‘Â?ƒŽ “—ƒŽ‹Ď?‹…ƒ–‹‘Â? –”ƒ‹Â?‹Â?‰ ‹Â? ƒ……‘—Â?–ƒÂ?…› ƒÂ?† Ď?‹Â?ƒÂ?…‡ ‹• not  only  based  in  the  skills  and  knowledge  acquired,  Â„—– –Š‡ †‡˜‡Ž‘’‡† …‘Â?Ď?‹†‡Â?…‡ –‘ „‡ ƒ„Ž‡ –‘ †‡’Ž‘› these  attributes  into  a  variety  of  situations.  ÂŠÂ‡ ’”‘ˆ‡••‹‘Â?ƒŽŽ› “—ƒŽ‹Ď?‹‡† ’‡”•‘Â? …ƒÂ? Â?‘˜‡ comfortably  between  roles  and  industries  â€“  their  underlying  understanding  of  the  way  business  ÂƒÂ?† Ď?‹Â?ƒÂ?…‡ ™‘”Â?• ƒÂ?† –Š‡ •›•–‡Â?• ƒÂ?† ’”‘…‡••‡• necessary  to  manage  and  report  on  this  will  allow  them  to  easily  adapt  to  all  situations  and  requirements.  @V\UN HTIP[PV\Z HJOPL]LYZ At  Phoenix  we  have  been  at  the  forefront  of  developing  such  people  now  for  six  years  and  we  ÂƒÂ”‡ …‘Â?Ď?‹†‡Â?– –Šƒ– –Š‡ „—•‹Â?‡••‡• ƒÂ?† ‡Â?–‹–‹‡• –Š‡› Œ‘‹Â? ˆ‡‡Ž –Š‡ „‡Â?‡Ď?‹– ‡˜‡”› †ƒ› ‘ˆ ‡Â?’Ž‘›‹Â?‰ –Š‡•‡ talented  young  professionals  in  their  business. At  the  recent  ICAEW  Middle  East  Awards  we  were  proud  to  see  four  of  our  previous  and  current  students  making  up  the  nominations  list  for  â€˜Young  Â……‘—Â?–ƒÂ?– ‘ˆ –Š‡ ‡ƒ”ǯǤ Â? –Š‡Â?•‡Ž˜‡• –Š‡› †‡Ď?‹Â?‡ ƒ Â?‹…”‘…‘•Â? ‘ˆ –Š‡ ‰”‘™‹Â?‰ „ƒÂ?† ‘ˆ ›‘—Â?‰ Ď?‹Â?ƒÂ?…‡ professionals  in  the  region.  Nauman  Mian  â€“  a  dedicated  young  man  who  has  completed  his  ACCA  and  decided  to  â€˜top  up’  this  Â“—ƒŽ‹Ď?‹…ƒ–‹‘Â? „› •–—†›‹Â?‰ ÂˆÂ‘Â”ÇĄ ƒÂ?† ”‡…‡Â?–Ž› ƒ…Š‹‡˜‹Â?‰ǥ Š‹• “—ƒŽ‹Ď?‹…ƒ–‹‘Â? ‹Â? ƒ††‹–‹‘Â?Ǥ ƒ—Â?ƒÂ? Šƒ• shown  huge  determination  over  recent  years  to  balance  work,  family  and  study  pressures  at  the  Â•ÂƒÂ?‡ –‹Â?‡ ĥ †‡˜‡Ž‘’‹Â?‰ Š‹• ’”‘ˆ‡••‹‘Â?ƒŽ •Â?‹ŽŽ•Ǥ ‡ ‹• currently  CFO  of  Bayt.com  here  in  the  UAE.   Muhra  Al  Mulla  â€“  a  young  Emirati  lady  who  is  now  combining  recent  motherhood  with  her  studies  Â–‘™ƒ”† –Š‡ “—ƒŽ‹Ď?‹…ƒ–‹‘Â? ™Š‹Ž‡ ’—”•—‹Â?‰ Š‡”

The huge benefit of professional qualification training in accountancy and finance is not only based in the skills and knowledge acquired, but the developed confidence to be able to deploy these attributes into a variety of situations.

34 January 2013

Nauman Asif Mian has DPNQMFUFE IJT "$$" BOE EFDJEFE UP AUPQ VQ UIJT RVBMJmDBUJPO by studying for, and recently achieving, his *$"&8 DFSUJmDBUJPO )F is currently the CFO of Bayt.com.

career  at  Deloitte.  Muhra  is  one  of  a  select  handful  of  students  working  under  the  auspices  of  the  ICAEW  Emiratisation  study  scheme  and  is  exhibiting  phenomenal  skills  in  balancing  all  aspects  of  her  life  including  her  duties  as  wife,  mother  and  employee  Â™ÂŠÂ‹ÂŽÂ•Â– ’”‘‰”‡••‹Â?‰ ”ƒ’‹†Ž› –Š”‘—‰Š –Š‡ “—ƒŽ‹Ď?‹…ƒ–‹‘Â?Ǥ  Nanditha  Ramanathan  â€“  an  extremely  competent,  intelligent  and  mature  young  lady,  ÂƒÂ?†‹–ƒ Šƒ• Ž‹˜‡† Š‡”‡ ‹Â? –Š‡ ™‹–Š Š‡” ’ƒ”‡Â?–• since  the  age  of  one.  She  has  completed  her  ACCA  Â“—ƒŽ‹Ď?‹…ƒ–‹‘Â? ƒÂ?† ‹• …—””‡Â?–Ž› ™‘”Â?‹Â?‰ ™‹–Š in  their  Management  Consultancy  department.  ÂƒÂ?†‹–ƒ ‹• ƒ …‘Â?Ď?‹†‡Â?– ƒÂ?† –ƒŽ‡Â?–‡† ’—„Ž‹… •’‡ƒÂ?‡” who  will,  I  am  sure,  go  on  to  achieve  great  things  Â‹Â? Š‡” Ď?‹Â?ƒÂ?…‡ …ƒ”‡‡” Č‚ •Š‡ Š‘’‡• –‘ Â?‘˜‡ ‘Â? –‘ Š‡” MBA  studies  in  the  near  future.   Anam  Sami  â€“  Anam  is  an  intellectually  gifted  young  ÂŽÂƒÂ†Â› ™Š‘ ‹• ƒ ”‡Žƒ–‹˜‡Ž› Â?‡™ ”‡…”—‹– –‘ –Š‡ ”ƒÂ?Â?• here  in  Dubai.  She  has  already  achieved  two  global  Ď?‹”•– ’”‹œ‡• ‹Â? Ī ƒÂ?† —†‹–‹Â?‰ ĥ ’ƒ”– ‘ˆ Š‡” studies  in  the  last  two  sittings  and  recently  scored  an  ÂƒÂŽÂ?‘•– —Â?’”‡…‡†‡Â?–‡† ͳͲͲΨ Â‹Â? Š‡” Ī ’ƒ’‡”Ǥ ‘–Š her  employer  and  Phoenix  are  incredibly  proud  of  the  global  footprint  she  is  establishing  for  the  region  with  Â–Š‡•‡ ”‡•—Ž–• ƒÂ?† •Š‡ •–‹ŽŽ Šƒ• Ď?‹˜‡ ’ƒ’‡”• –‘ ‰‘Ǥ For  us  at  Phoenix,  perhaps  the  most  rewarding  thing  is  to  see  the  cultural,  gender  and  ethnic  diversity  of  Â–Š‹• Â?‘Â?‹Â?ƒ–‹‘Â? Ž‹•– ƒÂ?† –Š‡ ™ƒ› –Š‹• ”‡Ď?Ž‡…–• –Š‡ tremendous  strength  that  this  brings  to  Dubai.  This  diversity  is  one  of  the  many  reasons  that,  for  so  Â?ƒÂ?› ‘ˆ —•ǥ Ď?‹Â?† —„ƒ‹ –‘ „‡ •—…Š ƒ ™‘Â?†‡”ˆ—Ž ’Žƒ…‡

CAREER DEVELOPMENT

–‘ ÂŽÂ‹Â˜Â‡ÇĄ †‘ „—•‹Â?॥ ƒÂ?† „”‹Â?‰ —’ …Š‹Ž†”‡Â?Ǥ Â‘Â™Â‡Â˜Â‡Â”ÇĄ the  nomination  of  Muhra  (who  then  went  on  to  win  the  â€˜Young  Accountant  of  the  Year  Award’  for  2012)  is  a  sign  of  how  things  are  developing  in  the  UAE. There  has  been  a  positive  drive  on  the  part  of  all  of  Â—• ‹Â?˜‘Ž˜‡† ‹Â? ’”‘ˆ‡••‹‘Â?ƒŽ Ď?‹Â?ƒÂ?…‹ƒŽ ‡†—…ƒ–‹‘Â? ‹Â? the  region  to  encourage  particularly  local  nationals,  to  see  Accountancy  as  a  valuable  and  meaningful  career  option.  ,TPYH[PZ [HRPUN \W HJJV\U[PUN For  many  years  now,  given  the  opportunity,  I  have  stressed  to  young  Emiratis  that  the  UAE  is  a  country  rich  in  resources  and  capital  and  it  is  incumbent  on  them  to  spend  time  developing  the  skills  to  enable  Â–Š‡Â? –‘ Ž‘‘Â? ƒˆ–‡” –Š‡‹” ‘™Â? Ď?‹Â?ƒÂ?…‡•ǥ ™‹–Š‘—– placing  a  long  lasting  over-­â€?reliance  on  expatriates  like  myself. This  has  been  a  long  road  and  there  have  been  times  when  it  seems  like  little  progress  has  been  made  but  now  to  me  all  of  a  sudden  we  are  seeing  more  young  Emiratis  in  the  classroom  across  all  of  our  Â“—ƒŽ‹Ď?‹…ƒ–‹‘Â?•Ǥ —Š”ƒ ‹• Œ—•– ‘Â?‡ǥ ƒŽ„‡‹– ‡š…‡ŽŽ‡Â?– example  of  this.  The  young  Emiratis  we  are  seeing  are  extremely  able  and  talented  and  as  in  her  case,  often  incredibly  determined.  Despite  the  strong  bias  amongst  many  areas  of  the  local  community  Â‹Â? •‡‡‹Â?‰ Ď?‹‡Ž†• •—…Š ĥ —Â?ƒÂ? ‡•‘—”…‡• ƒÂ?† Marketing  as  comparatively  attractive,  there  is  now  Âƒ ‰”‘™‹Â?‰ ”‡ƒŽ‹•ƒ–‹‘Â?ÇĄ –Š‹Â?Â?ÇĄ –Šƒ– Ď?‹Â?ƒÂ?…‡ ‹• ƒ– –Š‡ centre  of  everything  in  business  and  commerce  and  Â„‡‹Â?‰ ƒ “—ƒŽ‹Ď?‹‡† ’”‘ˆ‡••‹‘Â?ƒŽ ƒ……‘—Â?–ƒÂ?– ‘’‡Â?• one’s  career  up  to  many  and  varied  opportunities  including  the  highest  levels.

There has been a positive drive on the part of all of us involved in professional financial education in the region to encourage particularly local nationals, to see Accountancy as a valuable and meaningful career option. 7YVMLZZPVUHSZ HZ ILHU JV\U[LYZ Things  have  changed  in  the  region  and  in  particular  in  the  UAE.  To  a  certain  extent  it  was  understandable  up  to  2008  to  see  accountants  as  bean  counters  simply  adding  up  how  much  money  businesses  had  made  in  the  previous  year.  After  all,  in  those  days  making  money  for  the  hugely  entrepreneurial  local  and  international  businesses  in  the  region  was  relatively  simple.  Financial  planning  and  strategy,  budgetary  control  and  planning  didn’t  seem  to  be  required  but  the  Ď?‹Â?ƒÂ?…‹ƒŽ …”‹•‹• …ŠƒÂ?‰‡† ƒŽŽ ‘ˆ –Šƒ–Ǥ The  businesses  that  survived  and  grew,  and  indeed  are  now  thriving  again,  recognised  the  need  for  a  ÂŠÂ—‰‡ •–‡’ …ŠƒÂ?‰‡ ‹Â? –Š‡ Ď?‹Â?ƒÂ?…‹ƒŽ ‹Â?–‡‰”‹–› ‘ˆ –Š‡‹” „—•‹Â?‡••‡• ƒÂ?† ‹– ‹• –Š‡•‡ ›‘—Â?‰ Ď?‹Â?ƒÂ?…‡ ’”‘ˆ‡••‹‘Â?ƒŽ• that  are  now  at  the  forefront  of  helping  businesses  to  Â’—– –Š‡ Â?—…Š Â?‡‡†‡† Ď?‹Â?ƒÂ?…‹ƒŽ Â•Â–Â”ÂƒÂ–Â‡Â‰Â‹Â‡Â•ÇĄ …‘Â?–”‘Ž• and  reporting  mechanisms  into  place.  ,UZ\YPUN Ă„UHUJPHS PU[LNYP[` Š‡ Šƒ• –Š‡ Ď?‹Â?ƒÂ?…‹ƒŽ ”‡•‘—”…‡• ƒÂ?† –ƒŽ‡Â?– –‘ play  on  the  world  stage  but  if  it  wants  to  do  this,  I  ÂƒÂ? Ď?‹”Â?Ž› ‘ˆ –Š‡ ‘’‹Â?‹‘Â? –Šƒ– ™‡ ™‹ŽŽ Â?‡‡† –‘ Šƒ˜‡ –Š‡ Â?‡…‡••ƒ”› Ď?‹Â?ƒÂ?…‹ƒŽ •Â?‹ŽŽ• ‡Â?„‡††‡† ‹Â?–‘ ‘—” „—•‹Â?‡••‡• ƒÂ?† ‹Â?†‡‡† ‘˜‡”Â?Â?‡Â?– †‡’ƒ”–Â?‡Â?–• –‘ ‡Â?•—”‡ –Š‡ Ď?‹Â?ƒÂ?…‹ƒŽ ‹Â?–‡‰”‹–› ‘ˆ ‘—” ‡š’ƒÂ?•‹‘Â?Ǥ Š‘‡Â?‹š Â?‘™ …‘Â?†—…–• Ď?‹Â?ƒÂ?…‹ƒŽ “—ƒŽ‹Ď?‹…ƒ–‹‘Â? „ƒ•‡† –”ƒ‹Â?‹Â?‰ ˆ‘” ‘˜‡”Â?Â?‡Â?– ‡’ƒ”–Â?‡Â?–• ƒÂ?† Sovereign  Wealth  funds  in  both  Dubai  and  Abu  Dhabi,  in  addition  we  produced  well  over  one  ÂŠÂ—Â?†”‡† Â?‡™Ž› “—ƒŽ‹Ď?‹‡† ƒ……‘—Â?–ƒÂ?–• ‹Â? ʹͲͳʹ ƒŽ‘Â?‡ –  they  are  much  needed. Â

Nanditha Ramanathan IBT DPNQMFUFE IFS "$$" RVBMJmDBUJPO and is currently working with KPMG in their Management Consultancy EFQBSUNFOU

The  receptionist-­â€?cum-­â€?accountant  job  adverts  are  still  t here  but  let’s  hope  it  is  not  for  much  longer.  For  Phoenix  in  2013,  it  is  going  to  be  more  of  t he  same  â€“  we  w ill  continue  to  t ry  to  spread  t he  word  and  t urn  out  g reat  young  professionals  â€“  we  have  had  the  award  winner  in  2011  (Mitali  Botadra)  and  now  in  2012  so  we  will  be  hoping  for  a  hat-­â€? trick  in  2013.   35

INTEGRATED REPORTING

Challenges are beginning to emerge, a year since the International Integrated Reporting Council launched its pilot programme to help create the world’s first integrated reporting framework. Nicola Maher reports on the developments so far...

I

NTEGRATED REPORTING (IR) has come a relatively long way in a short time. It has been just over two years since the International Integrated Reporting Council (IIRC) was formed through collaboration between the Global Reporting Initiative and the Prince’s Accounting for Sustainability Project.

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ϐ Ǧϐ ǯ ǡ ǡ ǡ Ǧ Ǥ

36 January 2013

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ǡ Ǥ ǦʹͲͳ͵ǡ ϐ ʹͲͳ͵Ǥ Ǥ

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ǡ The Accountant ǣ Ǧϐ ǡ ǡ ǡ Ǥ *OHSSLUNLZ LTLYNL ǯ Ó

INTEGRATED REPORTING

Ȍ Ǥ Ǯ Ǧ ǯ ϐ ǡ ǡ ǡ Ǥ Dz ǡdz Ǥ Dz ǡ ǡ Ǥ ǯ ǡ ϐ ǡ Ǯ ǯǤ ǡ Ǥdz REACTION: IIRC Chairman Paul Druckman says it is the integrated thinking and silo effect that will be “the biggest issues for companies producing an integrated report to overcome.”

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There is a fine line the IIRC needs to walk because by making the framework too flexible and less comparative, there is a risk people would use different metrics to suit their own needs.

37

INTEGRATED REPORTING

One of the criticisms that have been around corporate reporting is, it has become very compliance-­focused, rather than getting companies to tell their value story the way that they see it. ϐ Ǥ ǡ ǡ Ǥ Dz ͳͲͲ ϐ ǡ ǯ ͳͲͲ Ǥ Ǧ Ǥ ǯ ǡdz ϐ Ǥ 5VU ÄUHUJPHS KH[H ȋ Ȍ ϐ Ǧϐ ǡ ϐ Ǥ Dz Ǥ ϐ ǡ Ǥ Ǧ ǡdz Ǥ Dz dz ǡ Dz ǯ ǡ ϐ dzǤ 9LN\SH[VY` YLX\PYLTLU[Z

ϐ Ǥ Dz ϐ ǡ ϐ ǡdz Ǥ 38 January 2013

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INTEGRATED REPORTING

Ǥ ǡ ǡ ǡdz Ǥ Dz ǡ

Ǥ ǯ Ǥdz Da Costa Borgerth adds that at BNDES there are Dz ϐ dzǤ Dz ǯ ϐ ǯ ϐ Ǥ ǡ ǯ Ǥ ǡ Ǧ ǡ ǡ ǡdz Ǥ -P]L RL` WYVQLJ[Z ǡ

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INTEGRATED REPORTING

ǯ Ǥ ǯ One of the criticisms that have been around ǯ ǡ ǯ corporate reporting is, it has become very Ǥdz

Dz THE PILOT PROGRAMME: Ǥ ǯ Participating countries Ǣ ǯ Ǥdz

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compliance-­focused, rather than getting Dz ǯ companies to tell their value story the way ǡ ǯ Ǥ that they see it. Ǥ

5VU ÄUHUJPHS KH[H ǡ ǡ ȋ Ȍ ǡ ǡ ǡ Ǧ ϐ Ǥ Ǧϐ ǡ

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The financial does tend to be driven by ϐ detailed requirements, whereas the narrative Ǥ

has quite a lot more flexibility in terms of the Dz ϐ ǡ extent to which companies do report and the ϐ volume that they give. ǡdz Ǥ 38 January 2013 40

ϐ

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INTEGRATED REPORTING

Ǥ

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corporate accounting i n t he US at Ǥ ǯ utilities c ompany E nBW:

Ǥ Ǥ ǯ Ǥdz Microsoft: ȏ Ȑ ǡ ǣ ǡ ǡ What h ave b een t he m ajor Da Costa Borgerth adds that at BNDES there are d id ǡ Ǥ Why M icrosoft join t he pilot challenges of producing a n Dz programme? Ǥdz integrated r eport? ϐ Dz ǯ ǡdz Ǥ Dz ǯ Dz dzǤ ǡ ͳͲǦͳʹ How a re you t ackling t he Dz ǡ ǡ materiality i ssue? ǯ Dz ǯ ϐ Ǧ Ǥ

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ǡ ǡ ϐ Dz ǯ Ǥdz Ǣ ǯ Ǥ Ǥ Ǥ ǡ ͳͻͺ͸ ͵Ͳ How do you determine w hat’s ǯ Ǥ ǯ ͳʹͲ material t o r eport a nd w hat i s not? ǡ Ǥ ǯ ǡ Dz Dz Ǥ ϐ Ǥ Ǥ ǡ ǯ ǡ ǡ ǯ Ǥdz dzǤ Ǥ Ǥ What advice would you offer ϐ Ǥ businesses w anting t o produce a n ǡ ǡ integrated r eport? ǡ Ǥ ǡ Dz Ǥ Ǥdz ǯ ǡ Do you t hink i ntegrated r eporting Ǥdz Ǥ Ǥ will s pread w ithout r egulatory impetus? What a re t he m ajor c hallenges ǡ Dz ǡ Dz encountered s o f ar? Ǥ ǯ Ǥ ǯ ǯ Dz ǡ Ǥ ǯ see w hether t he m arket f orces a Ǥ ǡ ϐ ǯ ǡ ǯ ǡ Ǥ Ǥ ǡ ǡ ǯ Ǥ ǡ Dz ǯ Ǥ probably ǯ ǡ ǯ b e t he b est w ay t o s tart Ǥdz The Accountant, UK Ǥdz Ǥ ǯ 41 39

PERSONALITY & PRACTICE

PINNACLE

OF SUCCESS

From climbing corporate ladders to summiting world’s tallest mountains, Mark Shuttleworth, the CFO of telecommunications company du, is a high achiever whose mantra is peak performance

42 January 2013

PERSONALITY & PRACTICE

SHANE PHILLIPS MANAGING DIRECTOR, SHANE PHILLIPS CONSULTANTS

C

LIMBING THE world’s Seven Summits is a serious undertaking even for any seasoned mountaineer.

For Mark Shuttleworth, the Chief ϐ ȋ Ȍǡ ǯ Ǥ Ǧ Ǧ Ǥ ͳͻ ǡ Ǥ Dz ǯ Ǥ Ǧ ǡdz Ǥ ( TVTLU[ [OH[ JOHUNLK T` SPML ǡ Ǥ Dz Ǥ ǡ ǡ Ǥ ǯ Ǥdz

PROUD ACCOUNTANT: “I remember deciding to become a Chartered Accountant when I was 18 years old and my father said, ‘I have never seen a poor accountant’ – that advice still holds true today.”

Accountant Middle East, ǡ ϐ ǡ ϐ Ǥ 43

PERSONALITY & PRACTICE

“Seeing all seven continents and their respective mountain ranges is an experience in itself. Seeing Everest, however, was breathtaking. It’s a moment I will never forget and climbing it has changed my life forever.” ǡ Ǥ ̈́͵ ʹͲͳͳ Ǥ ʹͲͳʹ ǯ Ǧ Ǧ Ǧ ǡ Ǥ ǡ Ǥ ǡ ǯ Ǧ Ǥ ;YHNLK` VU 4V\U[ ,]LYLZ[ ǯ ϐ Ǥ ǡ Dzǥ Ǥdz Dz Ǥ ǡ ͳͲͲΨ Ȃ ϐ ǡdz Ǥ

6M

DU’S MOBILESERVICES SUBSCRIBER BASE 44 January 2013

Dz Ǥ ǡ ǡ Ǥ ʹͶ Ǥdz

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PERSONALITY & PRACTICE

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LESSON LEARNT: “Today I value my time so much more than before. It is truly the most valuable thing we have,” says Mark.

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Ǥ Ǥ Dz Ǥ Ǥ Ǥ Ǥ ϐ ǡdz Ǥ Ǥ Ǥ

Mark believes that a CFO can’t do his job properly if he is tied too deeply into operations and administration, rather, his job [CFO’s] should revolve around strategy and value creation for the organisation.

45

PERSONALITY & PRACTICE

ϐ ǡ Ǣ Dz ϐ ϐ Ǥ ǡ ǡ ǡ Ǥ ȋ Ȍ Ǥ Ǥdz

Dz Ǥ Ǥ ǡ ǡ ǡ ǡ ǡ ǯ Ǥdz

-YVT *VU[YVSSLY [V *-6 ǯ Ǥ Ǯ ǯ ǡ Ǥ

Dz ȋ Ȍ ϐ Ǥ ǡ Ǥdz

Ǥ ǡ ǡ ǡ Ǣ Ǥ ǡ Ǥ ϐ Ǥ Dz ϐ Ǥ ǡ ǡ ϐ Ǯ ǯ ǡ ϐ ǡ Ǣ ǡ Ƭ ǡ ǡdz Ǥ :OHYPUN Z[YH[LN` HUK ]PZPVU Ǣ DzAssessing the CFOdz Ǧ of Accountant Middle East Ǧ ̵ ǡ Ǧ Ǥ 46 January 2013

Dz ǯ Ǥ Ǥdz 7YVWLY JVTT\UPJH[PVU PZ RL` Ǥ

EXPERT ADVICE: “The CFO of a public company must have a strong voice that can speak to the investor community. Both the CEO and the CFO should articulate the strategy of the business.”

PERSONALITY & PRACTICE

ǯ ǯ ǡ ǡ ǡ ϐ ǥ Ǥ Dz Ǥ ǫ ǫ ϐ ǡ ǡ ǡ ǡ ǡ ǡ ǡ Ǥ ǡdz Ǥ ǯ ǡ Ǥ ǡ Dzϐ ǡ Ǥ ǡ ǡ Ǥ ϐ

“In this region great strides have been made in the finance profession. Sadly, in many companies, you will still see the position of CFO filled by a ‘Controller’ rather than a true CFO.” Ǥ Ǥdz Dz Ǧ ϐ Ǧ Ǥ Ǧ Ǥ Ǥ Ǥdz >VYRPUN ^P[O PU]LZ[VYZ ǡ ǡ Ǧ Ǥ Dz Ǥ ǯ ǯ Ǥ Ǥ Ǩ Ǥdz Dz Ǥ ǡ Ǥ Ǥ ǡ Ǥ Ǥ ǯ ǡdz Ǥ 47

ACCOUNTANCY 101

FALLOUT FROM THE

ARAB SPRING

Uprisings and civil strife in the Arab world have caused massive upheaval in many countries in the Middle East and North Africa. Paul Golden talks to some of the region’s influential accountancy professionals to understand the current state of the industry and the likely future consequences for accountancy in the region.

T

HE EVENTUAL economic impact of the infamous ‘Arab Spring’ remains impossible to forecast with any certainty, but there is widespread acceptance that accountants will play a vital role in creating the conditions for future growth. Thus far, the protests that started in Tunisia in late 2010 have had a negative impact on the economies of the countries affected. Research by political risk consultancy Geopolicity suggests that those countries where political protests have been most v iolent -­‐ Libya, Syria, Egypt, Tunisia, Bahrain and Yemen -­‐ saw their combined GDP fall by more t han $20 billion in 2011 a lone. +LH\]PSSL 7HY[ULYZOPW The consultancy also states that the support promised by the G8 at the May 2011 Deauville summit, known as the Deauville Partnership, has largely failed to materialise. This view is corroborated by data published in June by Thomson Reuters showing t hat of t he $60

48 January 2012

billion in aid pledged to Arab countries last year, only a quarter had been disbursed. Jaafar Hassan, Jordan’s minister of planning and international cooperation went even further in a recent ǡ ϐ assistance had yet been extended within the context of t he Deauville Partnership. The International Monetary Fund (IMF) has calculated that the weaker Arab economies will need a bout $ 300 billi on i n e xternal f inance over the next two years, with governments’ borrowing needs making it harder and more expensive for private sector companies to ϐ Ǥ 0UJYLHZL PU LJVUVTPJ NYV^[O However, there are some positive signs. The World Bank has estimated the infrastructure sector across the Middle East and North Africa (MENA) has the potential to create around two million direct jobs and 2.5 million additional infrastructure-­‐related jobs over the next decade, while the IMF forecasts an increase in economic growth across the region from 3.5% last year t o 4.2% i n 2012.

ACCOUNTANCY 101

implemented and what impact this will have on businesses. International investors are still largely w aiting on t he s idelines.” ;HSRPUN WVSP[PJZ Political change is still ongoing in many of the countries affected by the Arab Spring, so evaluating ϐ such change is impossible in the short term, according to the Chartered Institute of Management Accountants ϐ ǡ Ǥ With any severe political change such as has ǡ ϐ are expected initially due to political unrest, which leads to reduced foreign investments, liquidity ϐ economic demands, observes Karim Abd-­‐Elhay, president of the Dubai chapter of the Institute of Management Accountants (IMA). He acknowledges these countries are going through a period of transition, but adds that over the long term political change is expected to have a positive economic impact due to the corrective actions taken by governments to reduce corruption, encourage investment and optimise the utilisation of resources.

The United Arab Emirates has benefitted [from the Arab Spring] in that it has been seen as a haven among the tumult that has engulfed other Arab countries -­ ICAEW Middle East Regional Director, Peter Beynon Unsurprisingly, few observers are prepared to draw a direct line between political change and economic improvement. Institute of Chartered Accountants in England and Wales (ICAEW) Middle East regional director Peter Beynon says in some parts of Libya entrepreneurs are emerging in various sectors (such as vehicle importing) and that in general entrepreneurs ϐ Ǥ Dz ϐ in that it has been seen as a haven among the tumult that has engulfed other Arab countries. But if you look at Egypt, for example, the jury is still out on whether Sharia law will be

"The faster a country can stabilise politically, ϐ ǡ̶ Ǧ Ǥ ̶ can refer here to Tunisia and Egypt, both of which have promising growth opportunities. Neither can ̵ ϐ economic status -­‐ for example, Libya has natural resources which will boost government spending in infrastructure projects and generate good economic returns." 3HUK YPJO PU VWWVY[\UP[` Beynon explains that while ICAEW members in the Arab world are not isolated in their experiences in relation to the wider business environment, the precise effects have varied from country to country. 49

ACCOUNTANCY 101

Political change is still ongoing in many of the countries affected by the Arab Spring, so evaluating any economic benefit which has arisen as a result of such change is impossible in the short term -­ Chartered Institute of Management Accountants, Director of Islamic Finance, John Willsdon "Some people relocated and then returned to Egypt, whereas Libya is seen as a blank piece of paper and a Ǥ ϐ of members across the region as markets slow down in Europe and elsewhere." He believes there is an opportunity to increase the ϐ Ǥ ̶ ϐ and as generational change takes place in family businesses the next generation sees accountants as more co-­‐pilots than just the person producing numbers in the background." This development goes hand-­‐in-­‐hand with improvements in corporate governance, continues Benyon. "The impetus to crack down on corruption is being driven internationally and we are working with regulatory bodies to promote good business practice," he says. 4LL[ M\[\YL KLTHUK Government bodies have grown considerably across ϐ ǡ but scope for further public sector growth is limited. Beynon says: "It is hoped that the local population will be able to meet future demand from the private ǡ ϐ ϐ Europe. Many companies in the Gulf Co-­‐operation Council (GCC) countries -­‐ Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE -­‐ have programmes to develop local talent and we are working with larger employers and educational establishments." ϐ increased even without the rise of political movements such as the Muslim Brotherhood, but says developments in countries such as Egypt will add impetus to the sector. "ICAEW and other professional bodies will need to lead standards and levels of disclosure around

ϐ ϐ Ǥ̶ 50 January 2012

0U[LYLZ[ MYVT ,N`W[ CIMA experienced the greatest-­‐ever increase in student numbers joining the Diploma in Islamic Finance from countries such as Bahrain during 2011, many of whom enrolled as part of a government-­‐ sponsored programme. Willsdon admits this may not be directly related to the Arab Spring, but says its timing would suggest that governments are keen to show their citizens that they are prepared to support them in obtaining ϐ Ǥ "Interestingly, we have also seen an upsurge in interest from Egypt," he says, "which could be directly related to the election of the pro-­‐Arab Muslim Brotherhood presidential c andidate. It is often said that surges in the number of mature ϐ adversity such as the present global economic downturn. We could expect more s tudents in t he MENA region to seek internationally recognised ϐ the region." He agrees with Beynon's view that accountants are ϐ post-­‐Arab Spring. "We tend to t hink in terms of A rabian Gulf s tates as looking like Dubai, but the reality is that much of the Gulf is undeveloped and a lot of the manpower currently used to drive development is expatriate. Countries in the region are in agreement that the indigenous population needs to be up-­‐skilled and while many citizens will look for trades, a section will seek to attain ϐ Ǥ̶ :[YVUN L[OPJHS JVYL ϐ ϐ emulate other more developed regions, corruption will slowly decline.

ACCOUNTANCY 101

With any severe political change such as has occurred in the Arab Spring, economic difficulties are expected initially due to political unrest, which leads to reduced foreign investments, liquidity difficulties and increased pressure of public economic demands -­ Karim Abd-­Elhay, President of the Dubai Chapter of the Institute of Management Accountants (IMA)

"The accounting profession has as its backbone a strong ethical core. As the profession's strength increases in these regions -­‐ possibly with the development of regional accounting bodies -­‐ corruption will come more under the microscope of the professional accountant. The various accounting bodies' ethical core will ensure that corruption will be rooted out over time." He is also convinced there will be enough accountants to meet future demand and that this demand will be driven by an emerging private sector rather than the public sector, which will inevitably have to be reduced in size as state spending comes under increased scrutiny. Says Willsdon: "A major concern of many Gulf countries is getting their own citizens to up-­‐skill. Oil revenues have meant that many did not need to work or only wanted to be employed at the highest ǡ ϐ Ǥ ǡ the largest organisations are being run by a silent, expat majority.” “Many of the Gulf states now know they haven't got many years of oil left and therefore see the need to invest in both physical infrastructure and also education as a way of empowering their Ǥ ϐ great demand, but this can only increase as the oil revenues slowly run out." ϐ ʹͲ ͵Ͳ ǡ ϐ has become acute. The indigenous population are ϐ religious background and the fact that they are Arabic speaking, Willsdon continues. ̶ ϐ ʹͲ 30% for the past decade and more and there is no evidence that this is likely to decrease," he says.

"The shift of many MENA countries to a stronger Arab identity -­‐ along with the developments which have already taken place in the industry in terms ϐ services -­‐ means that we can only expect Islamic ϐ Ǥdz “There are also many governments in the MENA region who envy the success enjoyed by countries ϐ and identity. Countries such as Bahrain, the UAE and Qatar to name a few are keen to develop themselves ϐ Ǥ̶ 7YVWLY JVYWVYH[L NV]LYUHUJL The Dubai chapter of the IMA has experienced increased ϐ ǡ Ǧ Ǥ "Organisations now look for accountants who ϐ analysis and planning and this comes in line with the change that the people in the Arab Spring countries are looking for," he says. He is in accord with the view that the accounting profession has a role to play in reducing corruption in business. "Accounting professionals play a vital role in implementing and applying proper corporate governance, which targets the reduction of corruption. There is increasing attention paid to the importance of applying business ethics that provide ϐ Ǥ While there is still a lot of work to be done in the wake of the Arab Spring the accounting profession is in the perfect position to help the countries affected to rebuild their economies by helping to weed out corruption and take hold of the opportunities in the ϐ Ǥ -­‐ The Accountant, UK 51

BUSINESS INSIGHTS

MENA IPOs RAISE $2B

Saudi Arabia and the UAE come tops as regional hubs of public listing activity for investors

R

EGIONAL CAPITAL markets raised approximately $2 billion in 2012 up from $843.9 million in 2011; an increase of 134%, according to the latest Ernst & Young’s Middle East and North Africa (Mena) fourth quarter and year-­end 2012 ‘IPO Update’ report

$1.4B

AMOUNT RAISED BY SAUDI ARABIA THROUGH IPO IN 2012 52 January 2013

The  year  closed  w ith  regional  companies  raising  a  total  of  $339.8  million  t hrough  three  initial  public  offerings  (IPOs)  in  the  fourth  quarter  of  2012.  ÂŠÂ‹Â• ‹• •‹‰Â?‹Ď?‹…ƒÂ?–Ž› Š‹‰Š‡” –ŠƒÂ? –Š‡ Í„ʹʹ͸Ǥͳ Â?‹ŽŽ‹‘Â? raised  in  t he  fourth  quarter  of  2011  and  the  $252.3  million  raised  in  the  third  quarter  of  2012. Phil  Gandier,  Mena’  Head  of  Transaction  Advisory  Services,  Ernst  &  Young  says:  â€œIt’s  been  an Â

eventful  year  [2012]  for  the  region,  with  mixed  implications  for  the  capital  markets.  Drawing  comparisons  over  the  last  two  years  we  have  noticed  a  steady  climb  in  the  amount  of  funds  being  raised  by  IPOs  possibly  hinting  that  markets  are  inching  towards  better  results.  The  outlook  for  2013  will  be  to  a  great  extent  Â‹Â?Ď?Ž—‡Â?…‡† „› ‹Â?˜‡•–‘” •‡Â?–‹Â?‡Â?–•ǥ ƒ‰ƒ‹Â?•– –Š‡ backdrop  of  regional  developments.  We  are  Â…‘Â?Ď?‹†‡Â?– –Šƒ– ƒ—†‹ ”ƒ„‹ƒ ƒÂ?† –Š‡ ™‹ŽŽ continue  to  be  the  regional  hubs  of  IPO  activity  for  investors  in  2013.â€?  ;OYLL 076Z PU 8 Dallah  Healthcare  Holding  Company  led  regional  IPO  deal  sizes  with  its  $143  million  listing  on  the  Saudi  Stock  Exchange  (Tadawul)  in  November  followed Â

BUSINESS INSIGHTS

The outlook for 2013 will be to a great extent influenced by investor sentiments, against the backdrop of regional developments.

Phil Gandier, Head of Transaction Advisory Services, Ernst & Young MENA

„› ÂŽ œœ •ŽƒÂ?‹… ƒÂ?Â? ƒ– Í„ͳͲ͸ Â?‹ŽŽ‹‘Â? ‘Â? –Š‡ —•…ƒ– Securities  Market  in  September.  The  third  IPO  in  Q4  was  Amira  Nature  foods  listing  on  the  New  York  Stock  Exchange  (NYSE)  at  $90m  in  October. Saudi  Arabia  led  the  country  standings  in  2012,  raising  $1.4  billion  through  seven  IPOs  in  all  of  ʹͲͳʹǥ ˆ‘ŽŽ‘™‡† „› –Š‡ ™‹–Š Í„ʹ͚͚ Â?‹ŽŽ‹‘Â? ƒÂ?† Â?ƒÂ? ™‹–Š Í„ʹ͸͜Ǥ͜ Â?‹ŽŽ‹‘Â?Ǥ ‘”‘……‘ ƒÂ?† —Â?‹•‹ƒ were  the  only  other  Mena  countries  with  IPO  activity  in  2012. Phil  Gandier  says:  â€œWhen  we  look  back  at  the  sector  split  of  the  IPOs  that  have  taken  place  in  2012  we  can  see  a  broad  spread  of  coverage  Â™ÂŠÂ‡Â”‡ Ď?‹˜‡ ™‡”‡ ‹Â? –Š‡ ƒ–‡”‹ƒŽ• •‡…–‘”ǥ ˆ‘ŽŽ‘™‡† by  three  each  in  the  Financial  and  Consumer  Products  sectors,  two  in  the  Healthcare  sector  and  one  IPO  in  t he  Packaged  Foods  Sector.â€? .SVIHS 076 HJ[P]P[`

Â? Íś ʹͲͳʹǥ –Š‡ Â?ƒ”Â?‡–• ”ƒ‹•‡† Í„͚Ǥ; „‹ŽŽ‹‘Â? Č‹Í´Íť IPOs),  narrowing  the  lead  on  the  Asian  markets,  which  raised  $8.8  billion  (59  IPOs).  European  exchanges  also  saw  something  of  a  return  to  form,  Â™Â‹Â–Š †‡ƒŽ ˜ƒŽ—‡ ”‡ƒ…Š‹Â?‰ Í„͚ǤͲ „‹ŽŽ‹‘Â? Č‹ʹͲ Â•ČŒǤ Globally,  year-­â€?on-­â€?year,  the  picture  for  Q4  remained  somewhat  depressed.  The  number  of  Â†Â‡ÂƒÂŽÂ• ˆ‡ŽŽ ͜͸Ψ ÂˆÂ”Â‘Â? ʹ͡͡ †‡ƒŽ• ‹Â? Íś ʹͲͳͳ –‘ ͳ;͸ deals  in  Q4  2012,  whereas  by  capital  raised,  it  Â‘Â?Ž› ˆ‡ŽŽ ͸Ψ ÂˆÂ”Â‘Â? Í„ʹ͝Ǥͳ „‹ŽŽ‹‘Â? ‹Â? –Š‡ •ƒÂ?‡ ’‡”‹‘† Žƒ•– ›‡ƒ” –‘ Í„ʹ͚Ǥ; „‹ŽŽ‹‘Â? –Š‹• “—ƒ”–‡”Ǥ Maria  Pinelli,  Ernst  &  Young’s  Global  Vice  Chair  Strategic  Growth  Markets  says:  â€œThe  weakening Â

economy,  unstable  equity  market  conditions  and  poor  performances  on  some  IPO  transactions  Â—Â?†‘—„–‡†Ž› ‹Â?’ƒ…–‡† ‹Â?Â˜Â‡Â•Â–Â‘Â”Â•ÇŻ …‘Â?Ď?‹†‡Â?…‡Ǥ • expected,  there  has  been  lower  IPO  activity  in  Asia  as  the  number  of  state  owned  enterprises  (SOEs)  coming  to  market  has  diminished.  The  ÂˆÂ‘—”–Š “—ƒ”–‡” Ď?‹‰—”‡• •Š‘™ –Šƒ– –Š‡ market  is  back  by  deal  number  and  rewarding  companies  that  perform  strongly.  Europe  has  Â•Â‹Â‰Â?‹Ď?‹…ƒÂ?–Ž› ‹Â?…”‡ƒ•‡† ƒ…–‹˜‹–› ‹Â? –Š‡ ˆ‘—”–Š quarter,  compared  to  t he  rest  of  t he  year.â€? <: Z[VJR L_JOHUNLZ HOLHK VM (ZPH The  NYSE  and  NASDAQ  exchanges  raised  $44.9  Â„‹ŽŽ‹‘Â? ‹Â? ͳʹͺ Â†Â‡ÂƒÂŽÂ•ÇĄ ƒÂ?† ”ƒ‹•‡† ͳ͝Ψ Â‘Âˆ global  proceeds  in  2012;  leading  the  Shenzhen,  Hong  Kong  and  Shanghai  stock  exchanges  ($11.1  billion  via  129  deals,  $9.8  billion  via  44  deals,  $5.3  billion  v ia  25  deals  respectively)  for  a  second  consecutive  year. Š‡ •‹ƒÂ? ‡š…ŠƒÂ?‰‡• ‘Â?Ž› …‘Â?’Ž‡–‡† ;͚; †‡ƒŽ• ™Š‹…Š ”ƒ‹•‡† Í„͚͜„ǥ †‘™Â? ͜͸Ψ Â„Â› …ƒ’‹–ƒŽ ”ƒ‹•‡† …‘Â?’ƒ”‡† –‘ ʹͲͳͳ Č‹͸ͳͲ •ǥ ”ƒ‹•‹Â?‰ Í„ͺͺ „‹ŽŽ‹‘Â?ČŒǤ Other  active  stock  exchanges  included,  Bursa  ÂƒÂŽÂƒÂ›Â•Â‹ÂƒÇĄ ”ƒ‹•‹Â?‰ Í„͚Ǥ͸ „‹ŽŽ‹‘Â? ™‹–Š –Š”‡‡ ‘ˆ –Š‡ year’s  top  20  deals,  the  HKEx  ($9.8  billion  in  44  deals),  and  the  Shanghai  and  Shenzhen  Stock  ÂšÂ…ŠƒÂ?‰‡• Č‹ ƒÂ?† Š‹ Â‡ÂšÂ–ČŒÇĄ ”ƒ‹•‡† Í„ͳ͸Ǥ͜ billion  in  154  deals  in  total. “Looking  ahead  to  2013,  we  expect  a  better  Â‘—–Ž‘‘Â?ÇĄ ™‹–Š ƒ •–”‡Â?‰–Š‡Â?‹Â?‰ ‡…‘Â?‘Â?› leading  the  recovery,  followed  in  the  latter  half  of  the  year  by  Europe  and  Asia.  Reduced  stock  market  volatility,  assertive  action  from  central  banks  and  brighter  economic  prospects  suggest  2013  could  be  the  right  time  for  companies  currently  in  t he  pipeline  to  list,â€?  says  Pinelli.  Dz Š‡ ÇĄ ‘”‘Â?–‘ǥ ‘Â?†‘Â?ÇĄ ”ƒÂ?Â?ÂˆÂ—Â”Â–ÇĄ ƒÂ?† ‘•…‘™ •–‘…Â? ‡š…ŠƒÂ?‰‡• Ž‹ˆ–‡† •‹‰Â?‹Ď?‹…ƒÂ?–Ž› ‹Â? –Š‡ ˆ‘—”–Š quarter,  thus  suggesting  that  signs  of  stability  in  equity  markets  and  supportive  central  bank  policy  are  starting  to  take  effect.  We  believe  the  market  is  likely  to  see  smaller  offerings  initially  Â™ÂŠÂ‹ÂŽÂ‡ Â?ƒ”Â?‡– ƒÂ?† ‹Â?˜‡•–‘” …‘Â?Ď?‹†‡Â?…‡ „—‹Ž†•ǥdz the  executive  adds.  53

MOVERS & SHAKERS

PASSION FOR

BANKING Surya Subramanian, Chief Financial Officer of Emirates NBD Bank, tells Joyce Njeri what it takes to lead the finance division of one of the top lending institutions in the region

When Emirates NBD Bank announced its third quar ter r e s u l t s yo u a t t r i b u t e d t h e b a n k ’s s t r o n g o p e r a t i n g performance to the sustained cost optimisation initiative, declining operational costs and the bank’s strategy to maintain conser vatism in de-­risking its balance sheet. CFOs are generally known to focus more on reducing operational costs. Do you think some of these measures eschew other growth initiatives, in favour of cost cutting and profit optimisation?

A.

There are two aspects to cost control f rom a C FO’s p erspective. The f irst i s t o e nsure t hat w e g et value for every dirham spent. You can also extend this to state that CFO’s will p ush f or r elative v alue w hen t he s ituation demands, such as when we have to choose between competing projects with a limited investment s pend. The second aspect is trickier and often requires deep industry knowledge where we have to balance between what I call the 3 Cs – Cost, Control / Compliance and Customer Service. This, well done, leads to sustainable profit m aximisation. Taking about performance, CFOs are ultimately evaluated by the company’s overall results. If performance falls short, the C FO i s u sually t he s capegoat. A s t he C FO of one of t he biggest b anks i n t he r egion, how do you deal w ith p erformance pressure? 54 January 2013

MOVERS & SHAKERS

It helps that I have experienced and learnt from a n e arlier A sian f inancial c risis. Our bank also has a clear strategy to put the effects of the crisis behind us and for the management team, it is a matter of steering the course collectively. The performance pressure then turns into a positive challenge of how to help the organisation achieve its goals. Also, as an added positive in the context of this question, while our performance has not ǡ ϐ dividend paying institution. You were appointed to the position of CFO in 2010. This is also the period when the banking industry was still in a challenging phase following the global financial crisis that began in 2008. There’s no doubt that these events shaped and redefined the responsibilities of the CFO a great deal. How, i n your opinion h as t he r ole of t he C FO changed p ost t he f inancial c risis?

ARABIC ACCOUNTING SYSTEM

TRUSTED PERFORMANCE ABILITY AT WORK DATA SECURITY AND STABILITY DATA TRANSPARENCY www.bazarsoft.com

It helps that I have experienced and learnt from an earlier Asian financial crisis. Our bank also has a clear strategy to put the effects of the crisis behind us and for the management team... it is a matter of steering the course collectively. The role of the CFO, both before and after the financial crisis, remains unchanged. It has however brought to focus the lesson that ‘control’ i s a k ey e lement of t he job description, a fact some CFOs ignored to their personal peril a nd t hat of t heir organisation. In a ddition, n ow we h ave t o d eal w ith i ncreased scepticism from the auditors and regulators

MOVERS IFRS SPECIAL & SHAKERS

ϐ ǡ that there is a lot of focus on judgement related to evaluation of credit and valuation of collateral and add to that... the valuation of investments. That does compound problems of documentation and debate for our industry t hat essentially deals with credit and maturity t ransformation.

SURYA SUBRAMANIAN: $IJFG 'JOBODJBM 0GmDFS PG &NJSBUFT /#% #BOL

ǡ ϐ Ǥ means that a lot more thought and back-­‐up preparation has to go into a ll areas of judgment. Today, CFOs are generally expected to ϐ ϐ accounting f unction, while providing strategic business g uidance and advice to t he CEO. How has t he relationship between t he CFO and the ϐ ǫ The relationship between the CFO and the CEO has never been stronger. You would have noted that in most instances of management change initiated by the Board or Shareholders, the CFO follows t he CEO on t he exit path. Before t he global ϐ ǡ stories of individual glory t hat sometimes tend to Ȃ ǡ ϐ within a division, signature acquisitions to name a few. The CFO’s role to provide unbiased input to what these mean at an organisational level is key to avoiding portfolio level pitfalls that are blind spots at a divisional level. It is important therefore that there is immense trust between the CEO and CFO to help deliver on t he agenda. Four years on, [after the markets’ collapse] provided us crucial insights related to operational

The relationship between the CFO and the CEO has never been stronger. You would have noted that in most instances of management change initiated by the Board or Shareholders, the CFO follows the CEO on the exit path.

56 January 2013

Frequent dialogue and reviews w ith t he auditors helps in addressing key pressure points and it is equally important to share the thought process ϐ into t he overall strategy. By t he t ime t his article gets into print, we w ill be ready to release f ull year results at a date earlier than ever before and this would not have been possible w ithout quality information sharing and coordination between us and our auditors. As organisations today work towards managing r isks and cutting down unnecessary expenditure, what do you regard as the critical operational areas or departments to be watched in the everyday running of the business? I have to start with my own function, Finance, ϐ Ǥ Ensuring t hat we have t he r ight t alent to support the future growth of the organisation is key on my agenda. As a commercial bank that derives almost two-­‐ thirds of its revenue from net interest income, a critical area of focus is working together with the rest of the management team to ensure best-­‐ in-­‐class asset / liability management. We believe this is what differentiates Emirates NBD from many other banks in t he region. What path did you take to become the CFO of Emirates NBD Bank? I started my banking career with Standard ͳͻͺͶ ϐ Ǧ ϐ in India, including a very rewarding stint as a branch manager of a f ull-­‐service unit in Goa. T his foundation gave me a strong understanding of t he industry, its products, services and its c ustomers. My career in Finance started w ith a personal choice to migrate to Singapore in 1991 where I continued with the same bank in various regional and local roles covering MIS, Asset Liability Management and Business Performance Reporting.

MOVERS & SHAKERS

ϐ ͳͻͻͷ ϐ function for its growing presence in Asia and this brought me in direct touch with senior management within the bank, auditors and regulators. The experiences were immense and cut across new areas like Regulatory Reporting, Compliance, Tax and Corporate Secretarial functions. In 1999 Standard Chartered Bank recalled me to support their (then) Global Corporate and Institutional Banking franchise headquartered in Singapore and I was a key member of the ϐ in motion to build one of the most successful ϐ ϐ crisis. Later I held other roles as CFO, Singapore and South-­‐East Asia and COO for the global ϐ and processes and shared service centres. I left banking in early 2007 to focus on family and spend quality t ime w ith my young daughter, and therefore I missed the direct onslaught of ϐ Ǥ between various community activities and a foray

into corporate governance as an audit committee member at t he Infocomm Development Authority in Singapore. Later, I took on a more formal role with the Ministry of Finance and w ith t he Accounting and Corporate Regulatory Authority in Singapore to assist with the development of accounting ϐ reporting statements. This has to be counted as a unique and rewarding experience that also lead to being a member of the Advisory Council to t he International Accounting Standards Board (IASB). Eventually some search consultant dug me out of a four year retirement to bring me back to my passion in banking for a role as the CFO of Emirates NBD where I have now completed two very challenging yet satisfying years. Outside the workplace, my interest lies in reading Ǧϐ ǡ across the world. I am glad that my family also loves to travel and that allows us to learn about new people and cultures each holiday we take.

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BATTLE AGAINST

SLEAZE Bribery and corruption in the Middle East is no longer ‘simply a cost of doing business’

58 January 2013

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T CHARLES ROBSON DIRECTOR, RISK CONSULTING, FORENSIC - KPMG

HE SUBJECT of bribery and corruption in the region is still not a comfortable one. Bribery has been with us since time immemorial, it is not new. Yet since only relatively recently, has it started to be taken seriously. Why and what to do?

have or, are, currently amending their bribery laws including the Czech Republic, Ireland, Luxembourg, Romania and Sweden. Outside the EU, Australia, Brazil Mexico, India and Russia have also either recently amended, or are considering amending their statutes. Zambia i s t he only A frican c ountry c ited.

>O` ¶ 7YLZZ\YL [V SLNPZSH[L HNHPUZ[ IYPILY` To u nderstand w hy, we need t o go a s f ar b ack a s 1977, when the Foreign Corrupt Practices Act (FCPA), came into force in the United States. The legislation, w hich c riminalised t he bribery of foreign public officials, followed a string of corporate s candals i n t he United States.

Until relatively recently, governments in the Middle East have watched these developments from t he s idelines. However, t here a re s igns t hat here too, governments are starting to take the subject of c orruption s eriously. I n June 2012, it was a nnounced t hat i n t he UAE, t he State Audit Institution has been instructed to prepare an anti-­‐corruption draft law. Meanwhile, back in November, 2011, Qatar a nnounced t he s et up a n anti-­‐corruption watchdog, the Administrative Control and Transparency Authority (ACTA), which has been tasked with tracking state ministries and agencies and probing claims of abuse of p ower or public f unds.

Since the FCPA came into force, American business leaders have complained that US companies were placed at an unfair disadvantage because they were not able to operate on a level playing field. This led to pressure for US politicians to encourage other countries to take a similar stance. It also culminated in the signing of the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions i n 1997. Simply put, t he c onvention i s a imed at r educing corruption by encouraging sanctions against bribery in international business transactions carried out by c ompanies. Its goal i s t o c reate a truly level playing f ield i n t oday's i nternational business environment. The 39 countries that signed the convention (none of whom were originally in the Middle East) agreed to put in place legislation that criminalises the act of bribing a foreign public official. T his h as led t o a f lurry of legislation. We have recently seen the passing of the UK Bribery Act. At least five countries in the EU

Governments in the Middle East have started to take the subject of corruption seriously, with the UAE instructing the State Audit Institution to prepare an anti-­corruption draft law and Qatar announcing it has set up an anti-­corruption watchdog.

*OHUNL VM LTWOHZPZ Why t hen, i f c orruption h as b een w ith u s s ince well before the Pharaohs, are we suddenly seeing a n i nterest i n t he t opic? It h as long b een understood that bribery has a detrimental effect on economic development. Bribes, even small payments, are socially damaging as they promote a cultural acceptance of a vice that tends to lead to the spread of corruption and the undermining of legitimate governance and the r ule of l aw. Egregious business practices not only stifle a country’s internal national economic development but also significantly curtail sustainable and beneficial foreign direct investment opportunities. Countries that lack transparency and clarity of regulations pertaining to business are generally less attractive t o f oreign i nvestors. The realisation that corruption is harmful is however not the only driving force for change, embarrassing investigations, multi-­‐million dollar fines, blacklisting of companies and even jail time for executives are surely having an effect t oo. We h ave s een more a nd more bribery a llegations reported in the media, many of them involving Middle East companies. The sectors that crop up most often include, defense, healthcare and oil and gas but there are also a number of 59

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reported cases in the construction sector and indeed d iversified i ndustrials.

evidence of anti-­‐bribery messages in internal and external communications.

>OH[ [V KV HKLX\H[L WYVJLK\YLZ Ignorance is not a defense. Regulators are starting to hold companies criminally liable if they don’t have adequate anti-­‐bribery procedures in place. It is important to realise that this duty of care extends to agents and distributors acting on a n organisation’s b ehalf.

3. Identification of Areas of High B ribery Risk

What procedures should an organisation have in place? Until relatively recently, the level of guidance in this area was poor, no longer. Transparency International recently issued detailed guidance on the topic, whereas the UK Ministry of Justice (MoJ) has suggested a risk-­‐ based approach to managing bribery based on six key principles. These six principles follow a common sense approach and are explained below:

I. T ype of B usiness / B usiness Model

Organisations a re e xpected t o p erform bribery risk assessments to identify which areas of the business carry a high bribery risk. When carrying this out, an organisation should consider, a mongst other t hings:

Certain industries have a strong history of corruption. A quick Google search using the sector name and the word corruption, may reveal multiple cases or allegations. High risk sectors have included for example, defense, healthcare (medical devices and pharmaceuticals), extraction industries, construction a nd c ustoms c learance.

1. P roportionate P rocedures An organisation should put in place adequate and proportionate anti-­‐bribery procedures. In practice, this means, procedures that take into account the size, industry sector, geography, nature and complexity of the organisation. Regulators e xpect s imple, practical procedures that are proportionate to the level of risk. As a minimum, organisations should: D evelop a c orporate a nti-­‐bribery a nd corruption p olicy; P repare a ncillary p olicies a nd procedures to c over a reas of h igh r isk, s uch a s, g ifts a nd entertainment a nd c haritable donations; a nd E stablish bribery i ncident m anagement procedures t o ensure t hat s uspected c ases of bribery a nd c orruption a re duly e scalated, adequately h andled a nd i ndependently a nd competently i nvestigated. 2. D emonstrable Top-­‐Level C ommitment Regulators expect to see clear evidence of commitment by the Board and Senior Management to ϐ (‘Tone at the Top’). This means promoting a culture within the organisation in which bribery is never acceptable. Regulators look for a clear statement by the company against bribery, involvement of senior management in anti-­‐bribery procedures (steering committees, decision making and monitoring) and 60 January 2013

Tendering is also a high risk area. If tendering (either for sales or for purchases)

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is characterised by a long winded, onerous procedures a nd t he v alue o f t he t ender i s h igh, then t he l evel o f r isk i s i ntuitively g reater.

A w ritten c ontract i s absent or i nformal; T he place of business c annot b e e asily corroborated;

II. G eography C ertain jurisdictions a re more v ulnerable to bribery. C ompanies c ommonly c onsult corruption i ndices s uch a s t hose published by Transparency I nternational t o f ocus anti-­‐bribery procedures on h igher r isk jurisdictions; a nd Transactions i nvolving t ax h avens or opaque jurisdictions.

T he n ature a nd s ize of t he i ntermediary i s inconsistent w ith t he s ervices r endered; T here h ave b een i nadequate b ackground checks or i nvoices l ack s upporting documentation; or I ntermediary i nteraction i s s poradic or f or a single purpose. IV. T reasury and Accounts Payable

III. Use of a gents or intermediaries The level of risk increases where a business uses i ntermediaries. You should b e p articularly vigilant i n c ases w here: I ntermediaries a re r ecommended or required by t he end c ustomer;

Corruption risk management efforts should target c ash p ayments, e xpense r eimbursements, irregular payment procedures, out-­‐of-­‐country payments, payments to tax havens or opaque jurisdictions or one-­‐off p ayments. Staff should be trained to be vigilant for suspicious v endors. T hey s hould b e s ceptical when invoices have vague descriptions, the vendor was set up or dormant prior to doing business with you, or the vendor was founded immediately prior to finalising the business a greement. V. High Risk T ransactions Certain a reas of e xpenditure should b e s ubject to careful controls. They may include, for example: Gifts a nd entertainment; C haritable a nd p olitical c ontributions; Travel e xpenses a nd p ayments t o t ravel agents; C onferences a nd s eminars; Customer education / t raining; a nd R eimbursements of (third p arty) e xpenses. 4. Due Diligence Speaking to Senior Management, I have often heard people say that corruption is merely ‘a cost of doing business’ but they do not condone it and their organisation will not engage in corruption but they cannot vouch 61

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Bribes, even small payments, are socially damaging as they promote a cultural acceptance of a vice that tends to lead to the spread of corruption and the undermining of legitimate governance and the rule of law. for their business partners (be they, agents or intermediaries, suppliers or contractors). The regulators will not accept ignorance as a defense. On the contrary, organisations are surprised at the extent to which they are being held accountable f or t he actions of t heir business partners. T his h as profound i mplications. The key consequence is that due diligence reviews using a proportionate risk-­‐ based approach, should be undertaken periodically. In particular, there should be a focus on ‘associated persons’, for example, those business partners who perform, or will perform, services on behalf of the organisation, including agents, distributors and h igh r isk v endors. When determining corruption risk, the business must:

D etermine t he identity of its business partners (suppliers, c ontractors, a gents, distributors a nd J V p artners); D etermine t he adequacy of t he level of due diligence c arried out on business p artners; E nsure t hat t he organisation’s business partners a re aware of t he i mportance of compliance w ith a nti-­‐bribery legislation; a nd I ncorporate c ontractual c lauses i n c ontracts with business p artners r equiring adherence t o anti-­‐bribery practices. Increasingly, companies are employing the use of specialist forensic organisations for this purpose. Simply asking suppliers to provide uncorroborated supporting documentation is not good enough in practice. You should independently corroborate, who the actual owners of the business partners are, how long and the extent to which they have been ϐ ǡ ǡ reputation for conducting business with integrity. 5. C ommunications and T raining Periodic risk-­‐based management and staff training ensures that anti-­‐bribery policies and procedures are properly communicated and embedded throughout the organisation. This can be promoted by internal and external communications and training focused on high risk a reas or f unctions of t he business. In common with other t ypes of misconduct, it is very important that the organisation develops adequate whistleblower channels, through which, suspected cases of bribery may be anonymously reported. 6. Monitoring & Review Last but not least, regulators should see evidence of monitoring and regular review of the a nti-­‐bribery procedures i n place. Although the subject of bribery may not be a comfortable one, t he Boards of our top companies are slowly coming to the realisation that they can no longer afford to ignore, tolerate, or simply outsource, t he problem of bribery and corruption. The message f rom the regulators is clear, companies and their management w ill be increasingly held to account and bribery should no longer be regarded as ‘simply a cost of doing business’.

62 January 2013

SUBSCRIBE NOW TO THE REGION'S FIRST MIDDLE EASTERN FOCUSED ACCOUNTANCY MAGAZINE. Complimentary subscription for any accountants currently working or studying in the UAE. Every month we will bring you the latest news, expert opinion, interviews with regional influencers and policy makers, as well as CPD advice, job opportunities and moves. Accountant ME will also feature regular articles and reports on auditing, legislation, management advisory services, ethics, professional development and practice management.

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accountancyme.com/subscribe Contact us today for more information about this brand new title. SALES Christopher Stevenson Tel 04 440 9138 Email chris@cpidubai.com

EDITORIAL Joyce Njeri Tel 04 440 9140 Email joyce@cpidubai.com

DIFFERENT DIMENSIONS

‘GET GOING. MOVE FORWARD’ Khalil Fawaz’s journey from CFO to CEO of Morgan International is awe inspiring and worthy of admiration

D

ETERMINATION AND the right educational background can account for a lot in today's a c c o u n t i n g, a u d i t i n g a n d finance world. The profession is evolving at a rapid pace and Khalil Fawaz is testament to this. Accounting has gone beyond number crunching and now involves exciting work that supports corporate strategy a nd g rowth. This not only means greater job prospects ϐ ǡ accountants to evolve with the times. And ϐ to be t he way forward. This is why K halil’s journey ǡ ϐ

64 January 2013

the new CEO of Morgan International is inspiring and indicative of the t imes. ( MVYJL [OH[ JYLH[LZ [OL LKNL ǡ ϐ evolution of his career. “Enrolling i n t he C PA p rogramme a nd s tarting my career in auditing provided me with a solid accounting and finance background that formed the basis of my career. But along ǡ Ǧ ǡ ǡdz ǡ Dz my eyes set on the top job and each career move provided me with a solid foundation

DIFFERENT DIMENSIONS

The power of professional education drives progress and development. It is not a luxury but rather a necessity if the Middle East and North Africa (MENA) region wishes to play a leading role in the global economy. ‘‰‹•–‹…•ǥ ƒ…‹Ž‹–› ƒÂ?ƒ‰‡Â?‡Â?–ǥ ƒ”Â?‡–‹Â?‰ ƒÂ?† Human  Resources.  Â‹Â”•– ‡•–ƒ„Ž‹•Š‡† ‹Â? ‡‹”—– ‹Â? ͳ͝͝͡ǥ –Š‡ Ď?‹”Â? ‹• Â?‘™ present  across  34  locations  and  helps  thousands  of  candidates  each  year  to  succeed.  Morgan Â

Â?–‡”Â?ƒ–‹‘Â?ƒŽ ‘ˆˆ‡”• ™‘”Â?•Š‘’•ǥ ‹Â?njŠ‘—•‡ –”ƒ‹Â?‹Â?‰ ƒÂ?† ˆ—ŽŽ ’”‘‰”ƒÂ?Â?‡• ˆ‘” †‡•‹‰Â?ƒ–‹‘Â?•ǣ ÇĄ ÇĄ ÇĄ ÇĄ ÇĄ ÇĄ Č€ ÇĄ ÇĄ ‹’ ÇĄ ÇĄ ƒÂ?† ”‘ˆ‡••‹‘Â?ƒŽ ‹’Ž‘Â?ƒ ‹Â? ƒ”Â?‡–‹Â?‰Ǥ

Â? ÂˆÂƒÂ…Â–ÇĄ ŠƒŽ‹Ž ‹• ƒ ‘”‰ƒÂ? Ž—Â?Â?‹ ƒÂ?† •–—†‹‡† ˆ‘” his  CPA  using  t he  Becker  CPA  Review  at  Morgan.

"Teaching at Morgan International has been an extremely rewarding experience, it allowed me to share my knowledge with other aspiring professionals across the region, and provided the opportunity to keep abreast with the latest trends in the accounting BOE mOBODF mFME Ă˝

ƒÂ?† ”‡“—‹”‡† •Â?‹ŽŽ• –‘ —Â?†‡”•–ƒÂ?† ƒÂ?† †”‹˜‡ –Š‡ „—•‹Â?॥ ˆ‘”™ƒ”†Ǥdz ŠƒŽ‹Ž Šƒ• ƒ ƒ…Š‡Ž‘” ‘ˆ —•‹Â?॥ †Â?‹Â?‹•–”ƒ–‹‘Â?ÇĄ ‹• ƒ ‡”–‹Ď?‹‡† —„Ž‹… ……‘—Â?–ƒÂ?– Č‹ ČŒ ƒÂ?† Šƒ• ƒÂ? MBA.  This  helped  the  33-­â€?year  old  executive  to  begin  his  journey  in  accountancy  and  ensured  he  stayed  abreast  w ith  new  developments  and  t rends  over  the  years.  He  says  the  positive  impact  and  priceless  value  his  education  gave  him  is  what  garnered  his  interest  in  Morgan  International.  Â’”‘ˆ‡••‹‘Â?ƒŽ –”ƒ‹Â?‹Â?‰ Â’Â”Â‘Â˜Â‹Â†Â‡Â”ÇĄ ‘”‰ƒÂ? International  represents  leading  international  institutions  offering  a  w ide  range  of  programmes  ÂˆÂ‘” †‡•‹‰Â?ƒ–‹‘Â?• ‹Â? ……‘—Â?–‹Â?‰ǥ —†‹–‹Â?‰ǥ ‹Â?ƒÂ?…‡ǥ

2UV^SLKNL PZ WV^LY The  power  of  professional  education  drives  progress  and  development.  It  is  not  a  luxury  but  Â”ƒ–Š‡” ƒ Â?‡…‡••‹–›ǥ ‹ˆ –Š‡ ‹††Ž‡ ƒ•– ƒÂ?† ‘”–Š ˆ”‹…ƒ Č‹ ‡Â?ÂƒČŒ ”‡‰‹‘Â? ™‹•Š‡• –‘ ’Žƒ› ƒ Ž‡ƒ†‹Â?‰ ”‘Ž‡ in  the  global  economy.  And  this  is  why  Khalil  has  always  been  keen  to  Â•ÂŠÂƒÂ”‡ Š‹• Â?Â?‘™Ž‡†‰‡ ™‹–Š ‘–Š‡”•ǥ Ž‘Â?‰ „‡ˆ‘”‡ Š‡ „‡…ƒÂ?‡ ‘”‰ƒÂ? Â?–‡”Â?ƒ–‹‘Â?ÂƒÂŽĚľÂ• Ǥ Â? –Š‡ Â’ÂƒÂ•Â–ÇĄ Š‡ organised  and  presented  specialised  t raining  and  Â…‘—”•‡• ‘Â? ÇĄ ƒÂ?† ‘–Š‡” ’‡”–‹Â?‡Â?– –‘’‹…• ™‹–Š‹Â? –Š‡ Ď?‹‡Ž†ǥ ƒ––”ƒ…–‹Â?‰ –Š‡ ‹Â?–‡”‡•– ‘ˆ Â?ƒŒ‘” ”‡‰‹‘Â?ƒŽ ƒÂ?† ‹Â?–‡”Â?ƒ–‹‘Â?ƒŽ Ď?‹”Â?• ƒ…”‘•• ˜ƒ”›‹Â?‰ industries.  He  was  nominated  the  best  instructor  ÂƒÂ– ‘”‰ƒÂ? Â?–‡”Â?ƒ–‹‘Â?ƒŽ ˆ‘” –‡ƒ…Š‹Â?‰ Ǣ Ž‡˜‡Ž• Íł ƒÂ?† ʹǢ Ǣ ‹’Ž‘Â?ƒ ‹Â? ƒÂ?† Ǥ “Teaching  at  Morgan  has  been  an  extremely  Â”‡™ƒ”†‹Â?‰ ‡š’‡”‹‡Â?…‡ǥ ‹– ƒŽŽ‘™‡† Â?‡ –‘ •Šƒ”‡ Â?› knowledge  with  aspiring  professionals  across  the  Â”‡‰‹‘Â?ÇĄ ‰‹˜‡Â? Â?‡ –Š‡ ‘’’‘”–—Â?‹–› –‘ ‡š’ƒÂ?† Â?› network  base  and  kept  me  abreast  of  the  latest  Â–”‡Â?†• ‹Â? –Š‡ ƒ……‘—Â?–‹Â?‰ ƒÂ?† Ď?‹Â?ƒÂ?…‡ Ď?‹‡Ž†ǥ̜ Š‡ •ƒ›•Ǥ ;OL YVSL VM WYVMLZZPVUHS L_WVZ\YL Khalil  acknowledges  that  his  passion  for  education  and  ability  to  make  an  impact  would  be  incomplete  w ithout  real-­â€?life  work  experience  and  exposure  to  the  challenges  in  the  marketplace.  His  12  year  career  has  been  eventful  and  has  Â•Â‡Â‡Â? Š‹Â? ‰ƒ‹Â? ‹Â?˜ƒŽ—ƒ„Ž‡ ÂƒÂ—Â†Â‹Â–ÇĄ ƒ†˜‹•‘”› ƒÂ?† 65

DIFFERENT DIMENSIONS

Khalil  was  responsible  for  over  100  employees  at  Â–Š‡ ’”‘…—”‡Â?‡Â?–ǥ Ž‘‰‹•–‹…•ǥ Â–Â”Â‡ÂƒÂ•Â—Â”Â›ÇĄ …‘”’‘”ƒ–‡ Ď?‹Â?ƒÂ?…‡ǥ ‹Â?˜‡•–‘” ”‡Žƒ–‹‘Â?•ǥ Ď?‹Â?ƒÂ?…‹ƒŽ ’ŽƒÂ?Â?‹Â?‰ǥ „—†‰‡–‹Â?‰ ƒÂ?† ”‡’‘”–‹Â?‰ǥ ƒ……‘—Â?–‹Â?‰ ƒÂ?† –ƒšƒ–‹‘Â? and  management  accounting  departments.  His  active  role  as  CFO  meant  he  was  highly  involved  in  strategic  decision-­â€?making  and  this  prepped  him  to  seamlessly  t ransition  to  CEO.  7PVULLY ^P[O H ]PZPVU Â?‡ ‘ˆ Š‹• …ƒ”‡‡” Š‹‰ŠŽ‹‰Š–• …ƒÂ?‡ ‹Â? ʹͲͳʹǥ ™Š‹Ž‡ Š‡ ™ƒ• •–‹ŽŽ ƒ Ǥ ŠƒŽ‹Ž Ž‡† –Š‡ •—’‡”˜‹•‹‘Â?ÇĄ structuring  and  execution  of  the  R ights  Issuance  of  ÂƒÂ‹Â? ƒ—†‹ ”ƒ„‹ƒ ƒÂ?‘—Â?–‹Â?‰ –‘ Í„ͳǤ͸ „‹ŽŽ‹‘Â?Ǥ Š‹• transaction  represented  the  largest  investment  banking  transaction  in  the  GCC  region.  He  was  also  behind  an  international  debt  arrangement  ÂƒÂ?‘—Â?–‹Â?‰ –‘ Í„;ʹ͡ Â?‹ŽŽ‹‘Â?Ǥ

UPWARD MOBILITY: Along with technical knowledge, the transition from auditing to CFO to CEO requires selfdiscipline, perseverance BOE TUSPOH MFBEFSTIJQ TLJMMT

investment  experience  at  reputable  regional  and  Â‹Â?–‡”Â?ƒ–‹‘Â?ƒŽ Ď?‹”Â?•Ǥ He  says  that  each  milestone  in  his  career  enriched  his  understanding  of  t he  industry  and  helped  him  identify  knowledge  gaps  and  the  skills  needed  to  address  new  developments.  â€œLast  year  particularly  provided  me  with  unparalleled  exposure  that  helped  me  accomplish  Âƒ Ž‘– ĥ –Š‡ Š‹‡ˆ ‹Â?ƒÂ?…‹ƒŽ ˆĎ?‹…‡” ˆ‘” ƒ‹Â?ÇĄ ƒ—†‹ ”ƒ„‹ƒ Č‹Âƒ Ž‹•–‡† –‡Ž‡…‘Â? …‘Â?’ƒÂ?Â›ČŒ ƒÂ?† the  Chairman-­â€?General  Manager  of  Centre  for  Â‘”’‘”ƒ–‡ ‡”˜‹…‡• Č‹Âƒ •—„•‹†‹ƒ”› ‘ˆ ‘”‰ƒÂ?

Â?–‡”Â?ƒ–‹‘Â?ÂƒÂŽČŒÇĄÇł Š‡ •ƒ›• ’”‘—†Ž›Ǥ ‡ˆ‘”‡ „‡…‘Â?‹Â?‰ ‘”‰ƒÂ? Â?–‡”Â?ƒ–‹‘Â?ÂƒÂŽĚľÂ• ÇĄ

“Historically, CFOs were more financially driven, where as nowadays they have become more involved in strategic decision making and operational activities in the companies.�

66 January 2013

Khalil  was  a  pioneer  with  vision  long  before  he  joined  ÂƒÂ‹Â? ĥ …ƒÂ? „‡ •‡‡Â? ‹Â? Š‹• ‡•–ƒ„Ž‹•Š‹Â?‰ ƒ •—„•‹†‹ƒ”› ‘ˆ ‘”‰ƒÂ? Â?–‡”Â?ƒ–‹‘Â?ÂƒÂŽÇĄ ‡Â?–”‡ ˆ‘” ‘”’‘”ƒ–‡ ‡”˜‹…‡• Č‹ ČŒÇĄ ™Š‹Ž‡ ƒ…–‹Â?‰ ĥ –Š‡ ‡ƒ† ‘ˆ ‘”’‘”ƒ–‡ ‹Â?ƒÂ?…‡ ƒ– ‹††Ž‡ ƒ•– ƒ’‹–ƒŽ ”‘—’ Č‹ ČŒÇĄ ƒ •—„•‹†‹ƒ”› ‘ˆ –Š‡ ‹”•– ƒ–‹‘Â?ƒŽ ƒÂ?Â? Ǥ Ǥ Ǥ His  journey  is  a  testimony  of  how  accounting  and  auditing  can  be  a  springboard  for  a  rewarding Â

DIFFERENT DIMENSIONS

career. He began his career at one of the ‘Big 4’ ϐ as an Experienced Manager in the Assurance and Business Advisory division. ǡ audit projects in nine countries from his base ϐ ǡ ϐ diligence mandates. Ǯ Ͷǯ ϐ ǡ ȋ Ȍ as audit methodology champion. Recognised for ǡ Ǧ ǡ ̈́ʹͲͲ ϐ ǡ Riyadh and Bahrain. He became Vice President of Investment Banking in only six months. ;OL [YHUZP[PVU MYVT *-6 [V *,6 He says all this experience laid t he foundations to successfully take on the responsibilities of a CFO and rise to the expectations of a CEO. Dz ϐ ǡ while nowadays they have become more involved

in strategic decision making and operational ǡ ǯ Ǥ ϐ ǡ ϐ concepts and this is something that will allow a person to persevere and make strategic decisions ǡdz Ǥ ϐ accounting industry… and plans to use his new position to promote the profession. This vision ϐ ǡ ǡ ϐ Ǯ gap’ and helping the Mena region move towards reporting standards best suited to this era of globalised business. ;HRPUN HJJV\U[ VM H IL[[LY M\[\YL ǡ Dz Ȁ ǡ Ǣ ǡ nationalisation. Therefore local talents need to enhance their skills through professional ϐ have an important role to play in this rapidly ǡdz Ǥ Dz ǡ ǡ Ǧ ǡ ǡ this happen. The institution provides students with a greater learning experience and empowers Ǥdz ̵ ǡ ϐ ǡ ǡ ǡ ǡ ϐ Ǥ Khalil says he is excited to lead Morgan into a new phase by enhancing the educational ǡ ǡ ϐ as well as employers who wish to train their ǡ competitive advantage.

TOP AMBITIONS: I had my eyes set on the top job and each career move provided me with a solid foundation and required skills to understand and drive the business forward

Dz ǡ a l eader i n t he p rofessional e ducation f ield. A s ǡ ǡ ǡ ǡ penetrating new markets… just to name a ǡdz Ǥ 67

STUDENT ACCOUNTANT

Anam Sami receives her recognition award from Stuart Dunlop, the Head of ACCA Middle East

KPMG STAR

ACES ACCA EXAM Anam Sami, an Associate 3 in KPMG Lower Gulf FS Department, recently scored the highest marks globally in her ACCA Corporate Law, Audit and Assurance paper. She talks to Accountant Middle East about her achievement and future ambitions. 68 January 2013

STUDENT ACCOUNTANT

T

ell us about yourself, ACCA studies and your recent achievements

me  manage  my  work  amidst  study  leaves  and  preparations  f or  e xams.

I  was  born  and  brought  up  in  Dubai  and  went  to  the  UK  to  pursue  my  Bachelors  in  Economics.  Upon  graduating,  I  returned  back  to  the  Â…‘—Â?–”› ƒÂ?† Œ‘‹Â?‡† ĥ Â?› Ď?‹”•– ™‘”Â?’Žƒ…‡Ǥ

Worth  mentioning  here  is  the  support  of  the  Human  Resource  department,  which  has  also  Â’Žƒ›‡† ƒ •‹‰Â?‹Ď?‹…ƒÂ?– ”‘Ž‡ ‹Â? Â?› •—……‡••Ǥ ‹–Š‘—– their  guidance  it  would  have  been  nearly  impossible  to  cope  between  work  and  studies.  They  helped  me  in  the  smooth  processing  of  my  study  leave  applications,  registration  of  classes  and  much  more.

I  am  c urrently  pursuing  A ssociation  of  Chartered  Â‡Â”–‹Ď?‹‡† ……‘—Â?–ƒÂ?–• Č‹ ČŒ “—ƒŽ‹Ď?‹…ƒ–‹‘Â?Ǥ I  have  cleared  nine  out  of  the  necessary  14  papers.  I  have  managed  to  score  the  highest  marks  globally  in  two  ACCA  examinations.  These  include  Corporate  Law  and  the  Audit  and  Assurance  paper.  The  facets  of  accounting  profession  are  broad,  including  auditing,  tax,  legislation,  management,  Â„ƒÂ?Â?‹Â?‰ ƒÂ?‘Â?‰ ‘–Š‡”•Ǥ • –Š‡”‡ ‘Â?‡ •’‡…‹Ď?‹… ƒ”‡ƒ which  is  of  most  interest  to  you?  Financial  Service  is  one  of  my  areas  of  interest  and  I  would  like  to  continue  my  association  with  KPMG.  KPMG  has  a  huge  client  base  and  provides  excellent  training  and  support  to  its  employees.  In  future,  I  aspire  to  specialise  in  ÂƒÂ—†‹–‹Â?‰ ‹Â?˜‡•–Â?‡Â?– „ƒÂ?Â?• ‘” ’”‹˜ƒ–‡ ‡“—‹–› Ď?‹”Â?•Ǥ „‘˜‡ ƒŽŽ Â?› ƒ‹Â? ‹• –‘ …‘Â?’Ž‡–‡ ƒŽŽ ‘ˆ Â?› ACCA  papers  successfully.

What’s  the  best  advice  you  can  give  to  youngsters  wanting  a  c areer  in  accounting?  My  suggestion  for  a ll  t he  aspirants  would  be  t hat  in  order  to  succeed  one  should  try  and  develop  good  time  management  skills  and  organisation  skills.  Above  all  one  must  follow  a  good  study  plan  and  stay  focused. How  do  you  spend  your  free  time?  What  are  your  interests,  if  any?  In  my  spare  time  I  love  to  read.  My  favourite  authors  are  John  Grisham  and  Sydney  Sheldon.  Apart  from  Â”‡ƒ†‹Â?‰ǥ Ž‹Â?‡ –‘ ™ƒ–…Š Â?Â‘Â˜Â‹Â‡Â•ÇĄ Č‹Â‡Â•Â’Â‡Â…Â‹ÂƒÂŽÂŽÂ› ‘Ž† …Žƒ••‹… ‘Â?Â‡Â•ČŒÇĄ „ƒÂ?‡ ƒÂ?† •’‡Â?† –‹Â?‡ ™‹–Š Â?› ˆ”‹‡Â?†•Ǥ

What  drives  you? My  motivation  for  success  in  the  academic  life  is  based  on  my  unrelenting  curiosity  and  my  overwhelming  need  to  know  rather  than  to  merely  believe.  I  don't  study  for  g rades,  but  rather  to  satisfy  my  desire  to  k now  and  understand. Who  is  your  mentor/s? My  family  has  been  very  supportive  indeed  and  their  role  in  t he  entire  journey  t ill  date  has  been  substantial.  Together  w ith  my  family,  I  would  like  to  extend  my  heartfelt  t hanks  to  my  teachers  and  mentors  who  made  it  possible  for  me  to  excel  in  my  studies.  I  would  also  sincerely  like  to  thank  my  performance  manager  and  colleagues  for  their  continued  support  and  g uidance.  My  performance  manager  has  been  constantly  guiding  me  in  striking  the  right  balance  between  work  and  studies.  My  colleagues  have  been  very  supportive,  providing  me  with  relevant  on-­â€?the-­â€?job  training  and  helping Â

()6<; (**( ACCA  supports  its  154,000  members  and  432,000  students  globally  t hroughout  their  careers,  providing  services  t hrough  Âƒ Â?‡–™‘”Â? ‘ˆ ͺ; ‘ˆĎ?‹…‡• ƒÂ?† ƒ…–‹˜‡ …‡Â?–”‡•Ǥ Its  global  infrastructure  means  t hat  exams  and  support  are  delivered  at  a  local  level,  Â†Â‹Â”‡…–Ž› „‡Â?‡Ď?‹–‹Â?‰ •–ƒÂ?‡Š‘Ž†‡”• ™Š‡”‡˜‡” they  are  based.

My motivation for success in the academic life is based on my unrelenting curiosity and my overwhelming need to know... rather than to merely believe.

69

TAX WATCH

UAE’S DOUBLE TAX TREATIES

Emirates enacts decrees for purposes of eliminating foreign levies on income from outbound activities

TAX TALK: The absence of taxation or enforcement in UAE raises questions on whether resident companies are entitled to access their tax treaty networks.

M

ANY MIDDLE Eastern countries are working on growing their networks of tax treaties to help domestic businesses expand internationally and to attract foreign investment to fuel their economic growth.

NILESH ASHAR PARTNER, KPMG - INTERNATIONAL AND M&A TAX ADVISORY

70 January 2013

Tax treaties entered across the region contain a variety of distinct features, some of which are unique to the region. Foreign companies who enter these markets should examine the specific clauses of any relevant treaties to determine where and how they should structure t heir i nvestments i n t he r egion.

;H_ YLZPKLUJ` JLY[PMPJH[LZ Treaty issues involving the UAE are particularly unique: the country does not impose corporate income tax at the national level. However, all Emirates within the UAE have enacted corporate taxes through their own decrees. For now, these decrees are only enforced for foreign oil companies with exploration rights and branches of foreign banks. In most cases, the UAE treaties are most important for eliminating foreign tax on income f rom o utbound a ctivities. Given the limited tax regimes and lack of formal tax authorities in UAE, determining

TAX WATCH

whether an entity is tax resident in these countries and thus entitled to treaty benefits can be difficult. In order to verify their entitlement to tax benefits in treaty countries, r esident c ompanies n eed t o o btain tax residence certificates from the UAE finance m inistry.

For businesses set up under one of UAE’s offshore investment holding company regimes, tax residency certificates are simply not available.

For businesses set up under one of UAE’s offshore investment holding company regimes, tax residency certificates are simply not a vailable.

taxation, treaty access should be denied to the UAE entities s ince no double t axation c an a rise.

(JJLZZPUN [YLH[` ILULMP[Z The absence of taxation or enforcement in UAE raises questions on whether resident companies are entitled to access their tax treaty networks. The challenge to the ability to a ccess t hese t ax t reaties i s b ased e ssentially on t hree b road a rguments:

However, there is a strong argument that the treaties’ main purpose is to encourage investment and so the lack of taxation in the UAE should not prevent treaty access. Nevertheless, the practice of the tax authorities in the relevant countries should be r egularly m onitored.

‘Liable to tax’ criterion in treaty residence articles

;YLH[` HI\ZL Access to the UAE tax treaties can also be denied o n t he b asis o f t ax t reaty a buses, due t o the i nclusion o f ‘ limitation o f b enefits’ a rticles in some treaties. For example, the UAE-­‐India treaty requires a UAE legal entity to have a ‘bona f ide b usiness a ctivity’.

L ack o f d ouble t axation E xistence o f t ax t reaty a buse º3PHISL [V [H_» JYP[LYPVU Many of the treaties of the UAE link the criteria for ‘residence’ with the entity being ‘liable to tax’ in the country. Tax authorities in s ome c ountries, s uch a s Turkey, w ill a ccept the residency of an entity that is subject to tax by law, even if no tax is actually paid (for instance, i f t hey a re l iable t o t ax a t a z ero r ate for t heir f irst 5 0 y ears o f e stablishment u nder the Dubai International Financial Centre (DIFC) r egime). Other countries may accept a tax residency certificate (although t ax a uthorities m ay a lso review the entity’s substance and beneficial ownership of its income). Whether entities are l iable t o t ax h as b een q uestioned p erhaps most often by the Indian tax authorities, which led the UAE and India to drop the criterion on re-­‐negotiating their treaty. In most of the UAE’s new treaty negotiations, ‘liable for tax’ clauses are being replaced by residence criterion based on ‘place of incorporation o r m anagement’. 5V KV\ISL [H_H[PVU Some tax authorities may argue that since tax treaties are intended to eliminate double

Similar provisions also exist in the UAE’s treaties w ith L uxembourg, B elgium, K orea a nd other countries. Even where a treaty has no such abuse provisions, the tax authorities of certain c ountries, s uch a s C hina, a re e valuating potential treaty abuse under their domestic legislation or a dministrative i nterpretations. The a bove i ssues a re a mong t he m ost c ommon problems encountered for foreign entities attempting to access the benefits of the UAE’s tax treaty networks. Unique clauses in individual treaties may present other potential b arriers t o a ccessing t reaty b enefits. The l ack o f o fficial t ranslations o f t reaties i nto English or other languages can create further interpretational d ifficulties. Given the UAE economy’s consistent growth fuelled by long term policy and vision of the country’s leadership towards diversification and progress, international and regional trade and investments are bound to increase going f orward. For c ompanies c onsidering t he optimal structure for their operations in or through the UAE, close review of the specific terms o f e ach r elevant t reaty i s c rucial. 71

TECHNOLOGY TALK

AN ALL NEW PARADIGM Rapid growth of technology is swiftly influencing operational processes of SMEs in the UAE

A

GRADUAL SHIFT in the thinking process of management teams at small and medium business has been taking shape in the recent past, thanks to the rapid growth of technology. One factor in particular that has guided this shift has primarily come due to the success of Apple as a mobile device, whether as a phone or a tablet. Most business owners possess one of them and in many cases both of them. What this has done is to make them understand that the Internet and the Cloud is something to which they can extend technology solutions for their businesses. Their private and personal data and documents are already now on Apple’s cloud and they have access to it irrespective of whether they are using a phone, iPad, or a computer at any time.

FIGURE 1: Accounting service operating model

,MÄJPLUJ` H[ SV^ JVZ[ ǯ ϐ been the lessons learnt from the recession. Business ϐ ϐ ϐ Ǥ is due to the fact that most entrepreneurs are now dealing with higher volumes of information than they did a couple of years ago.

A combination of these factors is starting to make organisations to rethink about the gains that could be realised as a result of embracing a ‘Business Process Outsourcing’ route. Suddenly it is not just about an outsource provider coming in to do the accounting grind, but entrepreneurs are seeking ways of how they can get more out of the entire outsourcing process, including increased process ϐ ǡ a safety net for legal and regulatory compliance, where applicable. It is safe to predict that the shift in how services are provided will happen faster at the level of small and medium-­‐sized business models. This is because larger enterprises face issues of security, compliance and most often sheer bureaucracy that they have to confront to accomplish the same ϐ Ǥ *(7,? PU]LZ[TLU[Z The change in thinking process poses a few challenges for providers of traditional accounting Ǥ ϐ themselves providing only one part of a multi-­‐ part solution. The entry barrier for a pure play technology player to come in and offer a composite solution is very low. Even though the available option may not be the ideal solution, what will happen is that the customer is lost by the current provider. In the customer’s opinion the available combined option is something that is at least a couple of points better than what he was getting before. So what are we talking about here? Most small businesses have not made great CAPEX investments in software applications yet. Even if they have, they have addressed the problem partially. There are quite a few companies offering services like invoicing, payroll, accounting, manufacturing ϐ Ǥ These providers are able to provide value because the infrastructure they use is common across multiple customers. This is called multi-­‐tenanting in technology language.

72 January 2013

TECHNOLOGY TALK

Â?‡‡†• –‘ ’‡”ˆ‘”Â?Ǥ Š‡ ‡ƒ•‹‡•– ™ƒ› –‘ †‡Ď?‹Â?‡ ƒ …‘”‡ task  is  to  formulate  a  simple  question.  For  instance  â€˜is  it  important  to  my  customer  that  I  do  this  or  can  I  outsource  it?’  If  the  answer  is  positive,  then  obviously  this  activity  needs  to  be  retained  and  not  outsourced.  This  way  your  attention  is  focussed  on  keeping  your  customer  happy.  Now  you  know  what  can  be  given  to  a  technology  or  a  service  provider.  ÂŠÂ‡ „‡Â?‡Ď?‹–• ‘ˆ ‹Â?ƒÂ?…‡ ĆŹ ……‘—Â?–‹Â?‰ ǯ• Šƒ˜‡ evolved  substantially  over  the  past  two  decades.  The  focus  initially  in  the  emerging  days  was  more  on  costs.  Today’s  BPO  providers  can  add  strategic  value  to  an  organization  by  providing  actionable  insights  or  intelligence.  This  is  a  result  of  the  tools  being  used  in  the  process  going  through  considerable  maturity  over  a  period  of  time.  So  by  taking  this  route  there  are  some  objectives  that  one  must  look  to  attain. Â

TECH SAVVY: Raju Ramesh, Finesse Co-Founder and CEO

It  translates  to  operating  expenditure  as  almost  all  of  these  providers  have  their  own  servers  and  data  centres  along  with  ongoing  management  and  support  services  all  of  which  is  part  of  a  monthly  fee.  ÂŠÂ‡ ‡ˆĎ?‹…‹‡Â?…› ‰ƒ‹Â? ‡Ž‡Â?‡Â?– Ž‘‘Â?• ™‡ŽŽ ™‹–Š‹Â? ”‡ƒ…Š for  these  companies.  5L^ Ă…L_PIPSP[` The  accounting  service  providers  have  not  seen  the  real  dimension  of  the  threat  yet.  That  threat  is  going  to  come  from  nimble  service  companies  that  are  starting  to  provide  these  applications  alongside  accounting  and  advisory  services  combined  with  all  of  the  above.  Suddenly  customers  can  opt  to  see  a  management  dashboard  on  their  mobile  phone  or  tablet,  get  Â?‘–‹Ď?‹…ƒ–‹‘Â?• –‘ Â?ƒÂ?ƒ‰‡ ƒÂ?› ‡˜‡Â?– ‘” –ƒÂ?‡ ƒ†˜ƒÂ?–ƒ‰‡ ‘ˆ Â?‡™ Ď?Ž‡š‹„‹Ž‹–› –Š‡› Â?‡˜‡” ‡Â?Œ‘›‡† ‹Â? –Š‡ ’ƒ•– unless  they  invested  in  technology  CAPEX.  So  what  is  the  starting  point  for  someone  who  would  like  to  Â‰Â‘ †‘™Â? –Š‹• ”‘—–‡Ǎ – ‹• ‹Â?’‘”–ƒÂ?– –‘ Ď?‹”•– †‡Ď?‹Â?‡ what  the  core  and  non-­â€?core  tasks  are  that  a  business Â

The benefits of Finance & Accounting BPO’s have evolved substantially over the past two decades.The focus initially was more on costs, but today’s BPO providers can add strategic value to an organisation by providing actionable insights or intelligence.

9LK\JPUN PU]LZ[TLU[Z YPZRZ Firstly,  this  should  result  in  increasing  the  strength  of  your  company.  This  can  come  from  your  ability  to  now  focus  better  on  the  customer  or  from  the  expertise  built  and  accumulated  by  the  provider.  Secondly,  you  must  be  able  to  reduce  projected  capital  costs  and  therefore  as  a  result,  reduce  investment  risks.  Thirdly,  it  should  increase  access  Â–‘ Â•Â–ÂƒÂ–Â‡ÇŚÂ‘ÂˆÇŚÂ–ÂŠÂ‡ÇŚÂƒÂ”Â– –‡…ŠÂ?‘Ž‘‰› –‘ Â?ƒÂ?‡ •‹‰Â?‹Ď?‹…ƒÂ?– ‡ˆĎ?‹…‹‡Â?…› ‹Â?’”‘˜‡Â?‡Â?–Ǥ ÂƒÂ•Â–ÂŽÂ›ÇĄ •‡”˜‹…‡ Ž‡˜‡Ž• –‘ ›‘—” customer  must  improve  and  they  must  be  able  to  perceive  this  improvement.  From  a  vendor  selection  perspective  they  need  to  bring  understanding  of  your  business,  metrics  for  performance  measurement  and  most  importantly,  the  ability  to  adapt  as  your  business  undergoes  changes. ‘Â?‡ ‘ˆ –Š‡ „‡Â?‡Ď?‹–• –‘ –Š‡ …—•–‘Â?‡” ƒŽ•‘ …‘Â?‡ with  providing  a  model  where  the  business  process  is  embedded  with  appropriate  metrics.  What  this  Â?‡ƒÂ?• ‹• –Šƒ– –Š‡› Â?‡‡† Š‡Ž’ –‘ †‡Ď?‹Â?‡ ‡š…‡’–‹‘Â?•Ǥ If  we  can  manage  to  separate  the  routine  from  an  exception  it  is  always  possible  to  provide  a  technology  solution  to  deal  with  the  routine.  The  goal  then  becomes  how  much  more  can  be  put  in  a  basket  called  â€˜routine’  and  how  much  less  can  be  put  in  the  basket  called  â€˜exception’.  Basically  this  boils  down  to  a  review  of  both  their  processes  ÂƒÂ?† ‹Â?ˆ‘”Â?ƒ–‹‘Â? ƒÂ?† †‡Ď?‹Â?‹Â?‰ ™Šƒ– •Š‘—Ž† happen  when,  in  what  order,  and  what  the  red  lines  are.   Once  this  is  in  place  the  ability  to  set  up  exception  rules  will  start  to  emerge  and  providing  information  on  the  go  for  decision  making  becomes  all  the  more  meaningful.  73

INDUSTRY APPOINTMENTS

APPOINTMENTS If you have made a new appointment, promotion or have any relevant hiring news, please email the details and a photo to accountancy@cpidubai.com

The  UAE  I nternal  Audit  A ssociation  (UAE-­â€?IAA),  the  l ocal  b ody  affiliated  t o  the  I nstitute  o f  Internal  A uditors  (IIA-­â€?Global),  has  a nnounced  t he  a ppointment  of  K evin K. Rafiq  a s  a  n ew  Chief  E xecutive  O fficer.  R afiq  will  b e  r esponsible  f or  p roviding  direction  a nd  s upervision  t o  t he  committees  o f  t he  A ssociation,  a nd  coordinating  w ith  t he  B oard  o f  Directors  t o  s trengthen  p artnerships  with  v arious  s takeholders.  Rafiq’s  p rofessional  e xperience  spans  t he  f ields  o f  i nternational  business,  m arketing,  c ustomer  service,  l eadership  t raining  a nd  development,  s trategic  m anagement  and  p artnership  d evelopment.  A  Magna  C um  L aude  g raduate,  R afiq  holds  a  b achelor  d egree  o f  S cience  in  B usiness  A dministration  f rom  Strayer  U niversity-­â€?USA,  a nd  a n  M BA  in  I nternational  M anagement  f rom  the  U niversity  o f  M aryland-­â€?USA.

Farook Khimani  â€“  has  been  promoted  a s  a  Partner  at  U HY  -­â€?  an  i nternational  network  of  independent  accounting  a nd  Â…‘Â?•—Ž–ƒÂ?…› Ď?‹”Â?• ÇŚ ‡ˆˆ‡…–‹˜‡ ƒÂ?—ƒ”› 1,  2013.  A  commerce  g raduate,  he  ÂŠÂƒÂ• „‡‡Â? ƒ••‘…‹ƒ–‡† ™‹–Š –Š‡ Ď?‹”Â? ˆ‘” nearly  20  years  i n  audit,  consultancy  and  corporate  services  business  of  t he  Ď?‹”Â?ÇĄ ƒÂ?† ‹• …—””‡Â?–Ž› ‹Â? …Šƒ”‰‡ ‘ˆ –Š‡ Šƒ”ŒƒŠ ‘ˆĎ?‹…‡ ‹Â? –Š‡ Â?ƒÂ?ƒ‰‹Â?‰ –Š‡ †ƒ› –‘ †ƒ› ”—Â?Â?‹Â?‰ ‘ˆ –Š‡ Ď?‹”Â? including  audit,  corporate  services,  administration  a nd  client  management  of  t he  Northern  Emirates.

74 January 2013

Anmar Khaznadar  joins  the  Grant  ÂŠÂ‘”Â?–‘Â? ‘ˆĎ?‹…‡ as  an  Assistant  Manager  for  the  Fraud  and  Forensics  department.  Prior  to  joining  Grant  Thornton,  Anmar  worked  for  Ernst  &  Young  as  a  Senior  Consultant  for  three  years,  having  spent  four  years  working  with  conventional  and  Islamic  banks  in  the  MENA  region.  He  has  worked  within  an  international  capacity  for  multinational  investment  banks  and  large  corporations  within  various  sectors. Â

V.S. Ravi  has  been  promoted  as  a  Partner  at  UHY  -­â€?  an  international  network  of  independent  accounting  and  Â…‘Â?•—Ž–ƒÂ?…› Ď?‹”Â?• ÇŚ ‡ˆˆ‡…–‹˜‡ ƒÂ?—ƒ”› ͳǥ ʹͲͳ;Ǥ ‡ ‹• ƒ “—ƒŽ‹Ď?‹‡† Šƒ”–‡”‡† Accountant  from  the  Institute  of  Chartered  Accountants  of  India.  He  passed  the  Chartered  Accountancy  course  in  the  year  May  1999.  He  is  the  Director  of  the  Ď?‹”Â?ÇĄ Â?ƒÂ?ƒ‰‹Â?‰ –Š‡ —†‹– ƒÂ?† ……‘—Â?–‹Â?‰ functions.  He  has  over  eight  years  post  Â“—ƒŽ‹Ď?‹…ƒ–‹‘Â? ‡š’‡”‹‡Â?…‡ ‹Â? —†‹– ƒÂ?† Accounts.  Ravi  has  been  associated  Â™Â‹Â–Š –Š‡ Ď?‹”Â? ˆ‘” Â?‡ƒ”Ž› Ď?‹˜‡ ›‡ƒ”• ƒÂ?† ‹• Ž‡ƒ†‹Â?‰ ƒ –‡ƒÂ? ‘ˆ ’”‘ˆ‡••‹‘Â?ƒŽŽ› “—ƒŽ‹Ď?‹‡† accountants  and  trainees. Â

Nilesh Ashar  has  joined  K PMG  Lower  Gulf  as  a  UAE  Partner  and  his  role  w ill  focus  on  leading  t he  Firm’s  international  and  Mergers  &  Acquisitions  t ax  advisory  services.  He  is  a  member  of  t he  Institute Â

of  Chartered  Accountants  in  India  and  was  previously  working  as  a  Director  ÂˆÂ‘” ƒÂ?‘–Š‡” „‹‰ ˆ‘—” Ď?‹”Â? ‹Â? –Š‡ Ǥ Nilesh  brings  over  17  years  experience  working  in  Tax  and  has  led  several  t ax  structuring  assignments  for  private  equity  and  sovereign  wealth  f und  clients  on  t heir  acquisitions  in  t he  UK  and  Europe.  Nilesh  has  a  degree  in  Chartered  Accountancy  f rom  t he  Institute  of  Chartered  Accountants  of  India  and  also  a  Bachelor  of  Commerce  from  Mumbai  University. Â

Mushtaq Ali Shaikh  h as  b een  promoted  a s  a  Partner  at  U HY  -­â€?  an  i nternational  network  of  independent  accounting  a nd  Â…‘Â?•—Ž–ƒÂ?…› ˆ‹”Â?• ÇŚ ‡ˆˆ‡…–‹˜‡ ƒÂ?—ƒ”› 1,  2013.  Mushtaq  h as  b een  p art  of  the  f irm  f rom  t he  l ast  24  years.  He  is  r esponsible  f or  t he  d ay-­â€?to-­â€?day  running  of  t he  Accounting  f unction  throughout  t he  organisation,  including  budgeting,  t rade  f inance  activity  a nd  a lso  oversees  c ash-­â€?flow  and  c urrency  r equirements.  Â

Sumeet Nayyar  has  been  promoted  as  a  Partner  at  UHY  -­â€?  an  international  network  of  independent  accounting  and  Â…‘Â?•—Ž–ƒÂ?…› Ď?‹”Â?• ÇŚ ‡ˆˆ‡…–‹˜‡ ƒÂ?—ƒ”› ͳǥ 2013.  Sumeet  has  been  associated  with  UHY  since  2007  and  is  currently  in  the  Consultancy  and  Advisory  division  of  the  Ď?‹”Â?Ǥ ‡ ‹• ƒŽ•‘ ƒ …‘Â?•—Ž–ƒÂ?– ™‘”Â?‹Â?‰ on  the  new  HR  audit  product  currently  Â—Â?†‡” †‡˜‡Ž‘’Â?‡Â?– ™‹–Š‹Â? –Š‡ Ď?‹”Â?Ǥ

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