CharteredONE The official magazine of the Liverpool Society of Chartered Accountants
The Sesquicentenary Continues From Liverpool to Manchester.
Our Female Presidents Isle of Man Focus
Score a goal this Christmas Tranmere Rovers in the Community Christmas Hamper initiative
ISSUE 27 WINTER 2020
Practice Engine Selecting the appropriate software to meet the specific demands of your firm is vital – especially when it comes Practice to practice Engine management. It’s important to find a solution that’s tailored to your business because one size does not fit all.
Engine Read our articlePractice on page 24 where we explore how to do just that. Practice Engine
LSCA Business
The President's Words These remain the strangest and most uncertain of times. As a Society we remain committed to our core principles of supporting our members. The way we do this continues to evolve and what remains clear is that the demand for the delivery of continuing professional education continues to be focused on online delivery."
T
hese remain the strangest and most uncertain of times.
My thoughts and best wishes go to the safety and health of all our members, their families and their colleagues and staff. In these uncertain times, one thing that does remain clear is that our Chancellor of the Exchequer intends to keep us, as Chartered Accountants, on our toes! The rapid assimilation of the information on new job retention, grant and furlough schemes now seems to have become part of our working routines. The support thrown into our economy as we all know is unprecedented in the majority of our lives and the aftermath of the economic consequences still remain difficult to predict. The one
thing that is clear is that the cost in terms of national debt will be most closely matched to that of the World War 2. The logical consequence of this would seem to be a changing tax landscape as a future government looks to recover this expenditure. As a Society we remain committed to our core principles of supporting our members. The way we do this continues to evolve and what remains clear is that the demand for the delivery of continuing professional education continues to be focused on online delivery. As a Society we have embraced this and continue to plan for future events. You may have seen we held our AGM online, and our Committee meetings have been held rather successfully in a similar fashion.
Whilst regrettably some of the sesquicentennial events have been postponed we still hope to be able to stage those events at some point in the future when it is prudent to do so. As you might also expect, opportunities to meet other District Society presidents have been limited to a small number of Zoom calls. Hopefully we will be able to meet in person some time in 2021. In the meantime, please stay safe. Best wishes,
ROB YOUNG President
CharteredONE
www.charteredone.co.uk
ISSUE 27 Winter2020
3
LSCA Business
Contents 30
38 03 THE PRESIDENT'S WORDS
16 THE SESQUICENTENARY CONTINUES
05 REFLECTIONS FROM OUR EDITOR
18 DSG AND THE BIG HELP PROJECT
06 IAN ATKINSON JOINS F-WORD
20 RSM
08 JOHN NOLAN FUNDRAISING EFFORTS
22 FORECAST 5
09 BLACK HISTORY MONTH PROFESSIONAL ONLINE SUMMIT
24 IRIS / PRACTICE ENGINE
10 MCEWAN WALLACE PROMOTION
26 ANDREW LOVELADY - COMMUNITIES TOGETHER
10 ICEAEW NORTH WEST REGION TAKE ON BREXIT
27 IT'S A WRAP - FD EXECUTIVE CLUB, CHRISTMAS GATHERING
12 DAVID CRADDOCK
28 LSCA - 100 YEARS OF WOMEN IN THE PROFESSION
14 QUILTER CHEVIOT
30 MEMORIES FROM THE ACCOUNTANCY PROFESSION 37 OPUS - WHEN TO SPEAK WITH AN INSOLVENCY PRACTITIONER 38 CROWE MORGAN - ISLE OF MAN SEEKING NEW ACCOUNTANCY TALENT TO DRIVE ECONOMIC GROWTH 40 MILESTONE YEAR FOR CROWE MORGAN 42 T RANMERE ROVERS IN THE COMMUNITY 44 WESLEYAN BANK
LIVERPOOL SOCIETY OF CHARTERED ACCOUNTANTS
PRESIDENT Rob Young president.liverpool@icaew.com CHARTERED ONE EDITOR Martyn Best martyn.best@charteredone.co.uk For all content and advertising enquiries please contact Martyn Best.
The Liverpool Society of Chartered Accountants was founded in 1870 and is the oldest district society in the Institute of Chartered Accountants in England & Wales, and was one of the four founding societies of the ICAEW. The Society has an illustrious history and has provided in Harmood Banner, Arthur Green and Ian Morris, three National ICAEW Presidents. Awarded the Freedom of the City of Liverpool in 2011, the Society continues to play an active role in local and ICAEW issues. There are over 1.7m chartered accountants around the world – talented, ethical and committed professionals who use their
4
expertise to ensure we have a successful and sustainable future. Over 150,000 of these are ICAEW Chartered Accountants. We train, develop and support each one of them so that they have the knowledge and values to help build local and global economies that are sustainable, accountable and fair. The ICAEW have been at the heart of the accountancy profession since we were founded in 1880 to ensure trust in business. We share our knowledge and insight with governments, regulators and business leaders worldwide as we believe accountancy is a force for positive economic change across the world.
LSCA Business
Reflections from our Editor education or in the third sector trying to help others. Let us hope that we are now at a turning point, and the joys we previously had will soon return.
8
18 46 REWARD FINANCE GROUP 48 SCHRODERS - FINANCIAL WELLBEING 50 END OF YEAR TECHNICAL UPDATE 52 ICAEW TECHNICAL UPDATES AND INFORMATION 54 ACCESS CREDIT MANAGEMENT 55 LEGAL RSS
Chartered One is designed and published on behalf of the Liverpool Society of Chartered Accountants by Legal RSS. Advertising/Features martyn.best@charteredone.co.uk 07798 700500 COVER PHOTO The Sir David Attenborough sails out of Cammell Laird past our favourite Liver Building on the way to her first sea trials. Picture by Martyn Best
One of those joys for many of our members was of course the Annual Dinner, and of course a highlight of any President’s years was that muchloved occasion. As a small homage to that this issue has been scheduled to be issued on the planned day of the Dinner. Many of you will know the tradition of the timing of this as being the first Friday after the fourth Thursday in November – and there will be a prize for anyone who can tell me the origins to share in our next issue.
H
ello everyone, and welcome to our new style Chartered ONE.
This has been created in a slightly different way than the past 26 and is as much a child of the digital revolution as an impact of the wretched virus. I hope you enjoy the format, and it does in fact enable us to communicate in many ways to our members with digital links and to share articles that may be of interest. I’d like to thank everyone who has contributed, and you do all know one of my familiar pleas is for articles, and I do urge you to contact me if you have something of interest to share. I’d also like to thank our supporters and advertisers who not only enable us to produce this magazine, but who also embrace the style we need for our members, which is one of engagement and information. So, we are all fully aware of the type of year we have had, of the tragedies and sadness we have collectively suffered, and of the great uncertainty given to us all – whether we are in business, in
Many will know that I love my sport, and this year has been fairly mesmerising in the impact that sector has also had. From the entirely unfair and unjust demotion of Tranmere Rovers to League Two, to the efforts of our cricketers to please us, to the entirely non-socially distanced Rugby we are now seeing, and did Wimbledon ever take place? Let us all hope this is one of the many elements that we will also soon see return. So, we head towards our normally festive time, and we can do what we can to help others in even greater need, and we can aim to find some increasing joy in the weeks ahead. There are a couple of heart-warming initiatives highlighted during the pages, and I hope you will feel able to support them. I wish you all good health and wellbeing, I wish you a merry Christmas, and I wish you well for a year that we can all look forward to. With very kind regards, MARTYN BEST Editor & Past President
www.charteredone.co.uk
ISSUE 27 Winter2020
5
LSCA Business
Our member Ian Atkinson joins F-Word. In this article, Ian gives his thoughts on another F-Word: Not another fraud warning Ian Atkinson has recently joined F-Word Training, the Nottinghambased finance specialist for scale-up businesses.
I
an joins as licensee for Merseyside, North Wales and Cheshire, bringing with him decades of experience on the UK and international stage, especially within the manufacturing and transport sectors. Ian is also a guest lecturer in finance at Liverpool Hope University. He joins F Word Training founder Serena Humphrey and her seven-strong team of partners and associates, including Martin Horton FCMA, who took on the North West region in February this year as the first F Word Training licensee.
Delete. Another email on fraud prevention sent to the trash can. Delete. You think those warnings are relevant to other less wellrun, less capable businesses. Delete. Not here. We know what we are doing. Delete. My team is good at their job." 6
All that might be true. But you are wise to remain vigilant and think of your weaknesses as a fraudster will. I would like to share two of my own experiences. A well-run UK company recently won a large order from an overseas multinational. The invoice with payment details was emailed to the customer for the first payment. En route the bank details were changed. The fraudster posing as a UK employee phoned the customer to confirm the details. Fortunately, the staff member taking the call knew the UK person the fraudster claimed to be. Suspicious they contacted the UK company. Disaster averted. Nearly. There was another twist. It was agreed the UK company would re-send their documents and call the customer straight after doing so. They found the bank details had been changed to those of the fraudster’s! On this occasion no cash was lost. If there had, an insurance company may have covered any losses. It is easy to
say it was the customers responsibility to confirm the correct bank details were being used. But this misses the point. Trying to resolve who stands a major financial hit is not a good way to develop any relationship. The consequences of this loss may have rendered the project or entity no longer viable resulting in the cancellation of the order. The second tale has the uncomfortable truth that more is lost to fraud by employees than to external parties. One morning a few years back, when I was working in a large group, the MD of a sister company took a phone call from the police. His long-serving, well-regarded purchasing manager had been arrested. It turned out that for years he had been taking back handers from a transport company. Our subsequent investigation revealed many of the commonly quoted warning signs, such as his lifestyle being beyond his salary and him having too much autonomy. While fraud attracts a lot of attention the huge amount lost because of
Spending some time thinking through your internal and external business risks is time well spent. A much better use of your energy than the time needed to clear up after a fraud. Especially as you will probably implement most of the changes you could identify today."
avoidable run of the mill mistakes is criminal. Occurring either through carelessness or genuine mishaps. The opportunity for these to occur is increased with people working remotely. Staff more easily supervised in the office now have greater flexibility. Even diligent staff have been known to let internal checks lapse on occasions, usually well-meaning at the time. Processes need to evolve with the business. The recent sudden change to remote working is an accelerated example. Exchanges that were previously between two desks are
now between two houses. This affects financial processes but other important business activities too. How has this affected the management of employee files, edits of control documents or changes in raw material specifications? How are your suppliers maintaining their standards that you rely upon? How do you know? How are suppliers’ price increases being checked? The list goes on. Spending some time thinking through your internal and external business risks is time well spent. A much better use of your energy than the time needed to clear up after a fraud. Especially as you will probably implement most of the changes you could identify today.
Since writing this article there has been a raft of bounce back loan scams which have been given a lot of coverage, and even for me, my personal bank account was targeted by fraudsters. I lost 1p before it was stopped." Do you need any more reasons to be vigilant? These examples illustrate how active and real these risks are and why you must maintain good financial disciplines - and don't be afraid to just Delete.
Ian Atkinson
www.charteredone.co.uk
ISSUE#27 Winter2020
7
LSCA Charity
A Marathon by any distance is still a Marathon This wretched Covid-19 has caused much distress, and it has been very inspiring how many of us have created joy out of adversity and have still been able to help those in need.
26 miles
5hrs 38min
race completion time John Nolan
ÂŁ500
raised for McMillan Cancer Support 8
Our Past President, John Nolan has been a long-standing supporter of McMillan Cancer Support and has helped raise many valuable funds over the years. During 2020 he had planned further fine efforts and the cancellation of many charity runs and marathons was not going to deter him.
So it was, that in early October he was accepted as a late entrant in the first ever virtual London Marathon – and undertook the 26 miles distance around Birkenhead Park. Due to the lateness of his acceptance, training was minimal, and so great credit must go to him for a fine 5hrs 38 minutes. The admirable cause was helped by over £500 and John then had his sights on the virtual New York Marathon.
LSCA Business
Black History Month Professional Online Summit O
ur Diversity and Inclusion Champion Barbara Boyle reports on the ICAEW’s first ever "Black History Month Professional Online Summit." Barbara Boyle attended the inaugural event Embracing a New Sense of Purpose: Examining the Intersection of Race and Leadership. The event brought together ICAEW members, academics, HR directors, senior professionals and expert speakers for ICAEW’s first ever “Black History Month Professional Online Summit.” Sharron Gunn, Executive Director, Members, Commercial and Shared Services, ICAEW, welcomed participants and speakers. Sonia Brown MBE acted as facilitator. The Rt. Hon Dawn Butler MP was the keynote speaker providing insight into her career journey, life in politics and what lessons she has learnt. There followed a panel discussion: The Future of Black Leadership. Three distinguished panelists gave a brief overview of their own career journey and also provided leadership advice together with insights to future black leaders. The panel discussed future D&I initiatives, the impact of AI & digitalisation to access untapped black talent; how organisations are investing in retraining and upskilling their staff and asking can intersectionality tackle workplace inclusion challenges. There was plenty of time for Q&A with the panelists at the end. A wide selection of questions was supplied via the online “chat” mechanism. Some challenging and thoughtprovoking discussions were shared.
PANELISTS COMPRISED: Lanre Sulola ACA, Inner Ambitions Stewart Cumberbatch, Deloitte Nels Abbey, Satirist, Writer & Media Executive Sharron concluded the summit. She noted this was the start of a long journey ahead.
"Accountancy firms wanted to make a positive difference on diversity and had approached ICAEW for help. ICAEW is excited about the journey and is looking for people to make that change. ICAEW is planning to collect diversity data as part of the next collection of annual subscriptions which in turn will be published. " It was inspiring to listen to the panelists tell their stories and to learn what challenges or obstacles they had dealt with on their journeys. To listen to the full webinar, please see link to ICAEW website here
www.charteredone.co.uk
ISSUE 27 Winter2020
9
LSCA People
McEwan Wallace promotion Kelly Quinlan-Owen appointed as Senior Audit Manager, McEwan Wallace One of the largest accountancy firms in Wirral, McEwan Wallace, is delighted to announce the appointment of Kelly Quinlan-Owen as its new Senior Audit Manager. Kelly, who has worked at MW since 2010, is a specialist in audit and has extensive knowledge of the professional services sector. Commenting on the new appointment, MW Director, and the Society’s very own Treasure, Kris Billington said “Kelly has been with the firm for 10 years and has shown a real determination to go the extra mile for all her clients.
Kelly Quinlan-Owen
“Her focus on client care, her positive attitude and extensive skill set make her a perfect fit for this senior role. I look forward to watching her grow and navigate her new position and have no doubt she will continue to bring enthusiasm to her new role that will inspire our team – well done Kelly and well deserved.”
Kelly added;
“I’m proud to be a part of the management team. MW have always supported me and I look forward to nurturing our audit team in the same way.”
It hasn’t gone away. ICAEW North West Region take on BREXIT The topic of BREXIT has for some time been forgotten about in the midst of the Coronavirus pandemic, but it now looms large on the horizon. So, in partnership with the local Growth Platform, the ICAEW North West team brought together a panel of leading experts to tackle the key issues around BREXIT to support the local business community. Professor Michael Dougan gave the keynote address. Michael is a Professor of European Law and Jean Monnet Chair in EU Law, at the University of Liverpool. Professor Dougan is an academic specialist in EU constitutional law at the University of Liverpool – so before a couple of months ago, maybe not the first guy you'd want to chat to at a dinner party. He has a Masters 10
and a PhD from the University of Cambridge, and more than 20 years of professional experience working on the EU. He has previously acted as an advisor to the Cabinet Office and has given advice to the House of Commons Treasury Select Committee about what on earth is going to happen next. Basically, it's safe to say he knows his stuff!
Although BREXIT can be quite a dry subject our Professor was a certain hit with our guests asking for more.
Prof Dougan gave a candid account of the story so far, with a key summary of the stumbling blocks and potential issues that BREXIT will bring and the car crash that could potentially follow.
“I could listen to him for hours”
Our expert panel then took a vast range of questions from the audience on employment status, movement of people, work permits, VAT issues and managing currency and cash flow pre and post BREXIT.
Comments from attendees
“Professor Dougan’s talk was exceptional”
“brilliant” So onwards we go from
“project fear to project reality” was the concluding cry.
Professional Services | Financial
How Employee Share Schemes can respond to Covid-19 and Brexit David Craddock is a recognised authority in the UK and worldwide on employee share schemes and the author of The Tolley’s Guide to Employee Share Schemes. In this article, David identifies the unique response that employee share schemes can make to two of the most pressing and significant peacetime issues ever faced by a British Government.
C
ovid-19 and the Current National Predicament
Covid-19 has ushered in the spectre of an encroaching governmental influence and, as it would appear, interference in our daily lives which has the potential to undermine our long-cherished freedoms and capacity for wealth-creation, as witnessed by the governmentenforced lockdowns across a range of major European countries. Although some form of early lockdown was needed in the UK to teach personal responsibility, especially given the existence of the substantial urban metropolitan areas in the UK, the evidence is that the length of the first lockdowns across Europe had a devastating effect. For the national economies, the result has been rising unemployment and business instability. Additionally, the lockdowns have had a dramatic effect on the mental health of many vulnerable people with loneliness, domestic abuse, homelessness, and even suicide all reaching record proportions to an extent that raises, quite naturally, the fundamental question about whether there is a better and more responsible way to manage the pandemic. While the recent announcement from Pfizer on the progression of the vaccine is welcome and has the
potential both to re-open the economy and to save lives, the requirement for a responsible use of this development assumes paramount importance at a time when various political and celebrity luminaries are projecting the advent of immunity certificates, impregnated into digital passports, as proof of vaccination. The contention is that such evidence should be a prerequisite for travel and attendance at entertainment events, whether indoors or outdoors, and, potentially, entry into shopping centres. The concept of enforced or mandatory vaccination, especially in its early stages of rollout, raises the question of “unknown unknowns” (to borrow a phrase from Donald Rumsfeld) which has often proved to be the case for drugs that are thought to be safe at inception, but later demonstrated to have significant side-effects. Witness the thalidomide scandal as but one example amongst many. When you recognise the complexity of Covid-19, with its potential for lasting damage to the heart, the brain and the kidneys, as well as the lungs, could there be lurking somewhere in the composition of the vaccine, despite the assurances from the senior medical officers, something that is truly at this stage an “unknown unknown?" At its root, the freedom of individuals to manage their own body through what they choose to put into it or not to put into it, whether it be food or drugs, must be regarded as the most fundamental of all individual freedoms.
"Although some form of early lockdown was needed in the UK to teach personal responsibility, especially given the existence of the substantial urban metropolitan areas in the UK, the evidence is that the length of the first lockdowns across Europe had a devastating effect." www.charteredone.co.uk
ISSUE 27 Winter2020
11
Professional Services | Financial
The Response of Employee Share Schemes to Covid-19 The subject of employee share schemes is, of course, a business subject, and its triumphs in contributing to the economic success of businesses from all sectors is well-documented and supported by numerous empirical studies conducted through universities and institutes in the UK and the USA. However, businesses operate as microcommunities, composed of real people, which form part of a wider national community and a world population. It is self-evident that people operating in businesses at any level feel that their efforts and endeavours through their work activity can make more of a difference than their votes in a general election or, for that matter, in a local council election. So how they are encouraged to feel about control over their own work and their workplace environment, their microcommunities, really matters. The key point is that an employee share ownership programme has the capacity to operate as a self-regulatory check on employee behaviours, especially when employees are encouraged to be part of the decisionmaking process. This point is verified by the evidence, even for small marginal shareholdings, provided the programme is properly implemented and communicated by senior management. It is the self-regulation that encourages the personal responsibility to a level that is to the betterment of the business, and to the advantage of the wider community. Extrapolate then the mentality of personal responsibility in the workplace to the wider domain of human social activity and there emerges the economic and social recipe for that same mentality to be instrumental in shaping the responsible self-regulatory approach that is required for society as a whole to function more normally in the wake of this pandemic. Personal responsibility for the employee share scheme participants emanates from identification with the business, through the mutual share interest, recognising the need to be accountable for their actions, knowing 12
that accountability generates wealth, avoids waste and understands that discipline lies at the heart of any successful community or nation. Furthermore, it is the same personal, responsible attitudinal response to circumstances, situations, events and other people that allows problem-solving to flourish in a business, and “blue sky” creativethinking to generate the dynamic ideas for business development and the new products and services of the future. Indeed, it is the marriage of accountability with creativity, two facets of human activity that are sometimes perceived as incompatible, that emerges from positive personal responsibility, which, in turn, is fostered by the company’s employee share ownership programme, operating in combination with other sister company policies that encourage employee participation. It is the propensity of an employee share ownership programme to encourage both individual wealth and corporate wealth that demonstrates the unique fusion that the introduction of an employee share scheme brings to a business. Operating both as a personal subject and as a corporate subject, it encourages personal responsibility to oneself and, at the same time, personal
responsibility to others, i.e. the wider people environment in which the individual is living and working. As a subject, therefore, it assumes “the invisible hand” within the business, acting as a hidden ambassador for personal responsibility with the many benefits that it brings to enterprise, including the disciplines needed through social distancing and masking, sanitisation procedures and personal hygiene, to combat Covid-19.
The Challenge of Brexit Covid-19 has dominated the news agenda in 2020 and, during March and April was touted by some respected commentators, quite astonishingly and without any studious or sustainable justification, as presenting an existential threat to the human race. The impact, though, has been massive and has brought back into focus the status which must be afforded to the experts, in this case the scientists and medical experts. This is a very welcome development, given the trashing of the expertise from economists which arose as part of the populist movement that promoted Brexit in advance of the 2016 referendum and subsequently. This observation again raises the requirement to encourage personal responsibility from every citizen of
Professional Services | Financial
the UK, to listen to experts, whether scientists or economists, weigh the evidence, and exercise personal judgement both at the ballot box and in the management of their everyday lives. Brexit is the latest manifestation of The Irish Question that is predicated upon failing to recognise one of the key principles of political science, namely, that an island as a whole is a natural self-contained political entity. This is the conundrum that has challenged, and at times baffled, Prime Ministers from Gladstone to Lloyd George, through to Margaret Thatcher, with the work of John Major and Tony Blair ultimately producing The Good Friday Agreement. The impact of Brexit on employee share schemes has yet to be seen, as the transitional period has delayed its true effect on the British economy. However, employee share schemes can enable companies to draw upon the innate flexibility of the subject to maintain the motivation of its workforce and the equilibrium of the business.
The Impact of Brexit on Employee Share Ownership in the UK For profit-sharing schemes, if profits of UK companies are reduced, whether by Covid-19 or by Brexit, then the employee profit share pot available for distribution will be reduced. This will, of course, vary by sector, and maybe the trend towards the longer hours that employees were working in the period prior to the onset of Covid-19 will continue in certain sectors, and compensate, thereby ensuring that profits will not suffer. For saving-related share option schemes,
employees may continue to save at the same levels, provided they keep their jobs. The accumulated cash saving is always the fall-back position if the share price fails to perform. Is this the time to see a resurgence of Sharesave? Maybe. For the Partnership Shares Module within the Share Incentive Plan, employees may not want to take the risk of a fall in the share price. Companies should consider majoring on the profit-sharing Free Shares Module, or, possibly ensuring that the Matching Shares Module is in place, if they wish to uphold the strength of the Partnership Shares Module. Variable reward could come back on to the agenda with a renewed vigour, possibly through a new profitrelated pay initiative, as a purposeful approach by the British Government to avoid unemployment. Variable reward schemes work best, according to the evidence, when they contain a meaningful element of reward
through shares. There may be a move to personal performance conditions rather than reliance on corporate performance targets in circumstances where those targets cannot be met due to circumstances beyond the control of the employees but the commitment from the workforce at all levels is stronger than ever. The conclusions for the subject must be: (1) for companies: to introduce employee share schemes that continue to offer significant motivational and financial advantages and (2) for the British Government: employee share schemes contribute to the efficiency of the market economy by facilitating a strong incentive-orientated workforce and honing the skills necessary for personal responsibility. DAVID CRADDOCK David Craddock Consultancy Services
David Craddock will be very pleased to discuss your employee share scheme initiative with you. David’s contact details are as follows: T: 01782 519925 | M: 07831 572615 E-mail: d.craddock@dcconsultancyservices.com Visit: www.davidcraddock.com David Craddock Consultancy Services Specialist in Employee Share Ownership and Reward Management, Management Buyouts, Share Valuation and Investment Education
www.charteredone.co.uk
ISSUE 27 Winter2020
13
Professional Services | Financial
Sustainable investing muddle? Keep calm and try a doughnut Claudia Quiroz is lead fund manager of Quilter Cheviot’s Climate Assets Fund. For those of us who work in the sustainable investing space, it’s all too easy to forget just how jargonfilled and confusing it can be, even at the best of times. More and more people are interested in investing in companies that support a sustainable economy by delivering clean water, waste management services, rural connectivity to the electric grid, and other initiatives. As Investment Managers, it’s our role to help clients understand the various sustainable investing options in a manner which is clear and jargon-free.
later turned into the bestselling book, Doughnut Economics, the model is an approach to conceptualising the dual challenge of ensuring that nobody falls short of life’s essentials without over-shooting earth’s planetary boundaries. The inner ring represents the social foundations and the vital needs of societies including food, water, health, social equity and so on. The outer ring represents the environmental ceiling, earth’s planetary boundaries. Each country, state and municipality can
have its own doughnut, depending on how well they are fulfilling these dual goals. This framework provides policy makers with a challenge to target the sweet spot in between where humanity can thrive. And policy makers are taking note. Raworth is now advising the authorities in Amsterdam on how they should rebuild the city’s economy post Covid-19 and we have seen the doughnut idea becoming more and more prominent, particularly amongst our European neighbours.
Industry regulator are also recognising the importance of sustainability with new rules called the MIFID II suitability requirements coming into force in March 2021. Under these regulations all advisers will have to demonstrate that they have considered their clients’ attitudes to ESG (environment, social and governance) and sustainable investing as part of the advice process. So how can investment managers and advisers frame and explain such a dynamic process to clients in a way that they can grasp quickly without tearing their hair out? Well, here it would be wise to turn to the world of Development Economics and borrow an excellent idea from the British economist Kate Raworth – the doughnut model. Originally presented in her 2012 paper entitled A safe and just space for humanity, and
14
Source: Kate Raworth 2012
Professional Services | Financial
But not only is this a revolutionary way of understanding the problem of providing for the global population without harming the natural environment, it could provide an excellent way of conceptualising what sustainable investing is all about, and in particular what fund managers are trying to achieve when they build their sustainable portfolios. As a conceptual tool, the model is great at explaining, in an accessible way, what the purpose of sustainable investing is and why it is so important. By presenting the global challenge of sustainable development in this way, the doughnut shows why an investment focus on companies offering solutions to the global challenges of delivering ‘more with less’ for a growing population with finite resources is absolutely necessary. At a practical level, too, rather than each country having its own doughnut, each company, and indeed each fund, can be classified with its own doughnut based on the impact it has on the society and the natural environment.
The problem faced by fund managers becomes clear. They want to select companies that hit the sweet spot, or the “just and safe space” as Raworth calls is. Managers achieve this by ‘negative screening’ companies, avoiding those companies generating revenue from controversial sectors of the economy and pushing on the environmental ceiling, and ‘positive screening’ companies, selecting those that are contributing to meeting society’s needs. From a portfolio perspective, the positive investment themes seen on the inner ring of the doughnut of energy, food, health, resource management and water should be at the heart of the stock selection process. To warrant inclusion in a sustainable fund, companies must offer solutions to these challenges by delivering ‘more with less’, without breaching the environmental ceiling, the outer ring of the doughnut.
stock selection challenge and can be a tool for explaining what sustainable investment managers are trying to achieve and how they go about making an investment decision. If you have any questions on our own ESG or sustainable approach to investing, please don’t hesitate to contact us. For more information, contact Nigel Hibbert on 0151 243 2160 or go to QuilterCheviot.com to discover more.
Hopefully this doughnut model provides a neat way of framing the
Nigel Hibbert
SHE’S GOT YOUR SMILE. GIVE HER YOUR GOOD FORTUNE TOO. For more than 240 years Quilter Cheviot has provided bespoke investment management to generations of clients. Our team in Liverpool provide the same award-winning service to our clients in the North West. Find out more about investing with us by contacting Nigel Hibbert, Head of Liverpool office, on 0151 243 2160 or visit www.quiltercheviot.com.
PERFORMING FOR GENERATIONS
Investors should remember that the value of investments, and the income from them, can go down as well as up and that past performance is no guarantee of future returns. You may not recover what you invest. Quilter Cheviot Limited is registered in England with number 01923571, registered office at Senator House, 85 Queen Victoria Street, London, EC4V 4AB. Quilter Cheviot is a member of the London Stock Exchange and authorised and regulated by the UK Financial Conduct Authority.
www.charteredone.co.uk
ISSUE 27 Winter2020
15
LSCA History
The Sequicentenary continues.... Our very own Society’s 150th celebrations began last year, and we hope they made some mark, although of course there was great disappointment with many gloriously planned events being curtailed, and hopefully just delayed by Covid-19. Our neighbours to the east have their 150th anniversary looming next month, and Jon Scopes, the current Deputy President of the Manchester Society of Chartered Accountants, and dare I utter in these times, the President Elect, is undertaking his research. Being a fine aficionado of The Accountant, he has unearthed this extract from the October 1894 edition.
16
Jon Scopes, Deputy President. Manchester Society of Chartered Accountants.
LSCA History
For those of you more familiar with Times New Roman or Calibri, here is a 21st century interpretation. The President said his official duties were now at an end, but before quitting the chair he felt that they ought to pass a vote of thanks for the handsome reception given them by their brethren in Liverpool. (Cheers) Mr HarmoodBanner deserved their utmost thanks for the time he had given and the courtesy he had displayed. (Cheers.) Then thanks were also due to Mr Jackson, the Hon. Secretary, and to Mr James S Holt, one of the most genial and hardworking of men he had ever had the pleasure of knowing. (Applause) Their friend Mr Mounsey also had been constantly at their disposal, and had done very much to assist them in the duties they had had to discharge. He would therefore propose "That this Autumnal Meeting of the Members of the Institute of Chartered Accountants in England and Wales desires to place upon record its hearty thanks to the Liverpool Society of Chartered Accountants, to its President, Mr J S Harmood-Banner, to its Hon. Secretary, Mr Jackson, to Mr James S Holt and Mr W K Mounsey, Junr., the Hon. Secretaries of the Reception and Entertainment Committees, and to Mr Finney, the Chairmen of the Dinner Committee, for the cordial invitation given to it, and the admirable arrangements made for its convenience, comfort and entertainment." (Loud cheers.) The Vice President seconded the resolution, and said he had had the privilege of attending all the Autumnal Meetings held since the granting of the Charter in 1880. He felt sure that the meeting they were now holding had been as successful, if not more so, than any of
"The President said his official duties were now at an end, but before quitting the chair he felt that they ought to pass a vote of thanks for the handsome reception given them by their brethren in Liverpool." the gatherings they had hitherto held. As they grew in numbers the Autumnal Meetings must naturally increase in size, and the greater the responsibility and work thrown upon the local committees. The Liverpool Society had done its work in such a way that it would be difficult for another town to come up to it, and certainly impossible to excel it. (Applause.) The motion was put and carried by acclamation. Mr Harmood-Banner, in replying, said he was almost overwhelmed by the manner in which the vote of thanks had been received. They had endeavoured to do their best, and he hoped they would forgive any shortcomings. They in Liverpool would remain wiser men for the visit, and he hoped that those who went away would also appreciate the papers that had been read. He hoped also that the public would value what had been said and done. (Applause.) Mr T W Reed, F.C.A. (Liverpool), moved "That the best thanks of this meeting be given to Mr C Fitch Kemp for his able and courteous conduct in the chair." (Cheers.) The resolution was seconded by Mr R S Blease, F.C.A. (Liverpool), and cordially received.
www.charteredone.co.uk
ISSUE 27 Winter2020
17
Helping people through difficult times
(From L-R) Faye Wheeler, Anne O'Byrne 'Councillor for Warbeck,' Mike Black, 'Big Help Project', Shaun, Rachael O'Byrne, Alan.
For just
£3.50 per week Choose
10
Grocery Items amounting to an approximate value of
£10-£15 in groceries
18
During the pandemic, we’ve been inspired by the members of the team who have gone above and beyond to those most in need in their communities. From taking part in raising money through physical challenges, to helping those who are shielding, it’s been great to see just how much passion our DSG colleagues have to help others through this difficult time. Faye Wheeler is an excellent example of this. Faye has been on the tax team at DSG since April 2018 as she works toward her ACA CTA qualification. She has been using her time outside of work to volunteer with the Big Help Project, a local charity with a goal to “feed the hungry, overcome poverty, to free people from the burden of unmanageable personal debt, to help people into affordable housing, and to assist people on to a better future”. Faye has spent the last 3 months assisting with the Big Help Project’s Community Food
Partnerships (CFPs), which are volunteer-and staff-run community stores that offer their members food and other essential household items. For £3.50 each week, members can choose up to ten grocery items which amounts to an approximate value of around £10-15. CFP’s will always give a FREE emergency food parcel on someone/ a family’s first visit, but then they are helped, supported and signposted to gain advice in a number of sectors that can help them. One being the Foodclub side, teaching them to keep just £3.50 a week to feed their family. This then leads to budgeting and debt advice, wellbeing, housing, welfare, etc, create a Community Hub based around the weekly family shop. One key aspect of the CFPs, that in normal circumstances would be food clubs, members can stay for a cup of tea and a chat, and this sense of community is central to everything the Big Help Project does. However, with social distancing measures in place, this has not been possible, and the CFPs have been operating more like shops.
LSCA Charity
Prior to Covid-19 all volunteers came from firstly being a member of Foodclubs. This then leads to employment opportunities, which there have been several internally and externally. It gives people confidence and a feeling of wellbeing, thus the ability to change their life, if they wish to. No longer alienated or isolated, or feeling that there is no hope of change. It gives them options and opportunities they not may not have had before. Volunteers like Faye have been instrumental in maintaining the community atmosphere and have taken to bringing supplies to those who are shielding and may not otherwise get face-to-face contact with other people. Whether it’s a chat through the window or a just dropping off food for the week, these volunteers are vital to keeping these organisations running. Speaking on her experience of volunteering with the Big Help Project, Faye said:
were shielding under these difficult circumstances. Without professional and hardworking people like Faye, this would not be possible to as large an extent. “Unfortunately, this year has seen a sharp rise in the number of people relying on organisations such as our food clubs due to the COVID-19 pandemic. Our target for the year is to help 10,000 people and by June we had already surpassed that. Therefore, we would encourage anyone with a few spare hours a week to consider donating your time to a place like ours and make an enormous difference to our community.” I’m sure you will all join me in thanking Faye for being a dedicated member of the DSG team, but most importantly for the work she is doing in her spare time when people need it most. For more information on the Big Help Project, and to find out how to get involved, visit: www.bighelpproject.com
Being part of such an important charity has been extremely rewarding. There is a real community atmosphere and I’ve met so many incredible people, both members of the CFPs and other volunteers and staff. “I started volunteering with the Big Help Project around October 2019 and soon realised how much these places rely on the generosity of volunteers, particularly in what has been such a difficult time. Many people believe that you need a lot of spare time to make a difference, but all it takes is a few hours each week, and you can help so many people. I would encourage anyone with a few hours to spare to find your local foodbank – I’m sure they would love your help!” Faye was introduced to the Big Help Project by Mike Black, the founder of the New Destination Network CIC, which assists disadvantaged, disassociated, under-funded and alienated individuals, groups and organisations in Liverpool. Having been working with Faye for some time, Mike said: “Volunteers like Faye are what keep our organisation running. We rely on them for the day-to-day operations of our services and for fostering the community atmosphere that is central to everything we do. This pandemic has totally changed our ways of working, and we have had to quickly adapt by bringing the community out to those who
(From L-R) Harry Doyle 'Councillor for Knotty Ash', Faye Wheeler and Mike Black, 'Big Help Project',
www.charteredone.co.uk
ISSUE 27 Winter2020
19
LSCA Business
Top tips for managing in a crisis Lindsey Cooper, Head of Restructuring Advisory at RSM in the North West, sets out a useful summary of current issues that will be of interest to business owners, company directors and their advisors. 1)The return of Crown Preference From 1 December 2020, VAT, PAYE and employee NICs will rank as a second-tier preferential debt (behind employees). Employer NICs and Corporation tax are not preferential. This will mean that lender floating charge security is diluted by Crown arrears in any insolvencies after that date and therefore directors who have given personal guarantees to lenders will be more exposed as lenders seek to recover any shortfall by calling on these personal guarantees. As a result of this change, where lenders rely on floating charge security (e.g. stock, debtors) then they are likely to increase their provisions to take account of HMRC arrears which will reduce facilities available to their customers and lead to a general reduction in liquidity. In future, lenders are also likely to require much greater visibility around the level of a customer’s HMRC debt. If a customer has substantial HMRC arrears, then a lender will gain some comfort if there is a formal Time to Pay (TTP) arrangement in existence. Lenders may require enhanced security to support facilities in the form of personal guarantees or cross company guarantees. In some cases, facilities may not be renewed and companies may need to consider alternative methods of finance e.g. invoice discounting. 2 )VAT deferred during the first lockdown Businesses have the option to repay
20
the VAT deferred during lockdown through an instalment plan such that the VAT liability is settled over 11 instalments (by March 2022), although HMRC state that businesses that are able to pay should pay by 31 March 2021. HMRC refer to the scheme as being “opt in� but are suggesting that anyone who deferred their VAT would be eligible to use it, so there do not appear to be any other eligibility criteria. The opt in will open early 2021. For clarity this relates to the VAT quarter that was deferred (March/ June depending on stagger). Anything else outside of that not paid would be on a TTP and the subject of separate discussion with HMRC on payment terms. Regarding TTP, we are seeing forbearance from HMRC and have seen arrangements of up to two years in our client base. However, as ever there is no consistent approach and it does depend on the specifics of the case and to an extent on which case officer you speak to at HMRC. 3) VAT Domestic Reverse Charge for construction industry The Domestic Reverse Charge for the construction industry is to be introduced with effect from 1 March 2021 (having now been delayed twice). This is a measure designed to reduce supply chain VAT fraud in the construction industry and it changes
how VAT is handled for construction services in the UK. The customer receiving the services will have to pay the VAT due to HMRC under a reverse charge mechanism, instead of paying the supplier. This means the supplier will not have the cash flow advantage of receiving the VAT inclusive payment and paying over VAT at a later stage on its own VAT return. This brings considerations for both suppliers and customers in supply chains in the construction industry. Key considerations for businesses may include the cash flow impact throughout the supply chain and invoicing / system changes. If you think this will impact your cash flow adversely you should start discussions with your lenders so that a solution is in place before this change. 4) Job Retention Scheme penalties Whilst stressing that HMRC is not looking to penalise those who have made innocent errors, HMRC have published a fact sheet on the penalty regime which can be up to 100 per cent of the amount of the grant where the employer was not entitled to receive the grant and/or failed to notify an overclaimed grant. The naming and shaming provisions will apply to defaulters and directors of companies who knew about these overclaims and they can be made personally liable where the company becomes insolvent and the tax cannot be recovered from the company. Directors need to be aware of this and be taking steps now to audit
LSCA Business
their claims and disclose any errors. There are strict time frames around this disclosure. 5) Rent arrears The rent moratorium has been pushed out to the end of December and landlords can’t evict tenants for non-payment of rent. Good news for tenants but will cause serious cash flow issues for landlords. 6) Statutory demands and winding up petitions Statutory demands and winding-up petitions will continue to be restricted until 31 December 2020 to protect companies from aggressive creditor enforcement action as a result of coronavirus related debts. 7) Wrongful trading The suspension of wrongful trading which was in place until 30 September 2020 has NOT been extended so businesses need to aware of this and ensure they are taking appropriate advice. 8) The rise of the CVA CVAs work extremely well for businesses which have leasehold premises so we are seeing a plethora in the casual dining and retail sectors, usually moving to some form of turnover based rent where units are retained. CVAs can also work well for other types of business if there is an underlying viable business.
9) The Corporate Restructuring Plan This is a new tool introduced by the Corporate Insolvency and Governance Act 2020 (CIGA) and to date we are aware of only Virgin Atlantic doing this. It is a debtor in possession process and importantly it is not an insolvency process. It is an arrangement with creditors which is approved by the Court. The directors assisted by their advisors put a plan to creditors. Where creditors vote against the plan, they can be bound into the process by the Court (this is known as ‘cross class cramdown’) if it can be shown that that particular creditor class is no worse off as a result of the plan than in the alternative (i.e. an insolvency scenario). If this process can be made to be cost effective for SME businesses, which remains to be seen, it could be a very useful tool. Once the Court has approved the plan then it is implemented. As it is a Companies Act process not an insolvency process, it does not have the restriction that, for example, a CVA can bring in terms of tendering for contracts, particularly public sector ones, and the directors remain in control throughout. It can therefore be more attractive to a Board. It is not a particularly quick process (as two Court hearings are required) so there is a need for a Board to engage with advisors several months in advance. This is a process to be considered where the time is available and also
where there is unlikely to be any disputed creditor balances. Whilst we think this process can be used for companies very much smaller than Virgin (and indeed this is the where the government has aimed the legislation), it would not be appropriate for very small businesses. 10) Prepacks And finally, the government has announced that they intend to bring in regulation around prepacks to connected parties before June 2021. In summary, an administrator will be unable to dispose of company property to a person connected with the company within the first eight weeks of the administration without either the approval of creditors or an independent written opinion. The connected party purchaser will be required to obtain the written opinion. Where a report states that the case is not made for the disposal, an administrator can still proceed with the disposal but will be required to provide a statement setting out the reasons for doing so.
www.charteredone.co.uk
ISSUE 27 Winter2020
21
LSCA Business
Quick, Responisve Forecasting and the Going Concern Assessment In a business world of uncertainty, one thing is for sure: if management signs off on financial statements describing their company as a going concern, heads will roll if it folds in six months.
F
resh outbreaks of Covid. No-one realising there would need to be many more tests plus tracing staff if people followed Boris’s advice to get on yer bike and go back to work—and with schools and universities re-opening. V, U and W shaped economic recoveries. Swathes of employees working from home. Public transport shunned by the public. Blue chip companies in travel and hospitality suddenly finding the chips are down. Yet with 20:20 hindsight it all looks inevitable.
22
You can’t connect the dots looking forward; you can only connect them looking backwards. So you have to trust that the dots will somehow connect your future.” - Steve Jobs. It's all in the Standards Unfortunately, for those tasked with reporting their organisation’s results, hoping that the dots will connect isn’t enough. Whether you are reporting under UK GAAP, or a larger company choosing, or a listed entity preparing consolidated statements and required to report under IFRS, the rules are clear.
LSCA Business
FRS102, for those preparing their statements on a Going Concern basis, states 3.8 When preparing financial statements, the management of an entity using this FRS shall make an assessment of the entity’s ability to continue as a going concern. An entity is a going concern unless management either intends to liquidate the entity or to cease trading or has no realistic alternative but to do so. In assessing whether the going concern assumption is appropriate, management takes into account all available information about the future, which is at least, but is not limited to, twelve months from the date when the financial statements are authorised for issue. 3.9 When management is aware, in making its assessment, of material uncertainties related to events or conditions that cast significant doubt upon the entity’s ability to continue as a going concern, the entity shall disclose those uncertainties.
Material Uncertainties
Should material uncertainties emerge the day before issue, these must be disclosed, even if the printers are locked down under Tier 3. The Financial Reporting Council in its Company Guidance Update, states when assessing whether material uncertainties exist, boards should consider both the uncertainty and the likely success of any realistically possible responses to mitigate the uncertainty.
The Going Concern Assessment
There are no set procedures for preparing a Going Concern Assessment but understandably the availability of cash is central to survival. The ICAEW outlines key issues to consider, first of which is Forecasting:
For the IFRSers, the wording under IAS1.25 and IAS1.26 is for all intents and purposes the same (although para 1.26 does go on to provide a somewhat laizzez faire let out to management stating When an entity has a history of history of profitable operations and ready access to financial resources, the entity may reach a conclusion that the going concern basis of accounting is appropriate without detailed analysis…. One wonders whether in this fast moving crisis the international standard setters won’t regret that apparent cop out?)
The forecast should • reflect the current economic environment and recent post balance sheet activity. • be reviewed and updated regularly until the financial statements are authorised for issue; • include reasonable and supportable judgements; • run more “what if” scenarios than normal, taking account of wider economic and sector specific considerations; • possibly run reverse stress testing – which events, or combinations of events - would it take for the entity to fail and what can be done to mitigate this risk.
How events that take place after the balance sheet date should be treated is governed by IAS10 Paragraphs 14 &15 and expressed more clearly in FRS102 32.7a & b; both stating, - in other words - if there is no alternative but to close down or if the situation has deteriorated to such an extent that the going concern basis is no longer appropriate reporting – don’t report as a going concern and disclose and explain why!
The ICAEW goes on to identify additional areas to consider, many of which will form part of the forecast; including how the business is likely to perform under Covid related situations, how working capital might be impacted including sources of finance and not forgetting those provided by UK Government and including equity and debt sources and their likely continuing availably and, importantly, whether debt covenants may be at risk.
So much for the legalese. The question is – in the Covid era when issues are changing with such speed, how to make a Going Concern Assessment where events and conditions are absolutely replete with material uncertainties?
It is also vitally important to document the detailed assumptions and judgements underlying the forecasts; these will be useful for disclosures, for auditors and in future for regulators.
To cope with this requires a comprehensive, fast, bespoke forecasting package with a proven track record like Forecast 5 rather than an excel model with all its time consuming formulae and balancing problems. Forecast 5 can quickly run multiple multi-layer “What if” stress test scenarios, forecast cashflow and balance sheet analyses from which working capital and fixed capital sufficiency – or shortfalls – can be determined, provide the base for all the debt covenant calculations and maintain within each run of the forecast the supporting Assumptions and Judgements for each forecast.
To organise a demonstration of Forecast 5, please contact the UK Distributor, Johnny Kipps of KBR Ltd At Johnny@Forecast5.co.uk, or phone 07770 608 900 www.Forecast5.co.uk
www.charteredone.co.uk
ISSUE 27 Winter2020
23
LSCA Business
When used skilfully, practice management software can become the practice’s backbone. It can help an accountancy practice to increase efficiency and profits, enabling you to report across all your data, from workflow to tax, company secretarial, to accounts production. Crucially, it empowers accountants with the ability to keep track of a multitude of different filing deadlines for clients and upcoming deliverables – be that monthly payroll, MTD for VAT, personal and corporate tax returns, or Companies House submissions.
Applying accountancy practice management software to the real world. Let’s look at an example to see how it helps – submitting a client’s corporation tax return (CT600). In general, a practice would take the following steps, from informationgathering to submission: 1. R eview the client file, including the prior-year tax return and accounts, noting any ongoing issues or carried forward amounts 2. S end an information request to the client relating to the current year’s tax return 3. R eview the information received and ask any follow-up questions 4. P repare the corporation tax computation and return and send to the client for review 5. S ubmit the computation, return, and supporting materials to HMRC before the relevant filing deadline
24
How would this work without the software? Typically, the above steps take place over many months, and multiple members of a team might be involved at various stages of the process. Without practice management software, it can become difficult keeping track of which team members are involved with that client, and what the status of the return preparation is. But with it, a firm can keep digital track of the status of a particular task, as well as who’s assigned to that client.
Selecting the right option for your firm. So, how do you find the right software? How do you know what you need from it and work out what will suit the individual requirements of your practice?
What’s the first step? Firstly, take a step back. Take your time. Don’t just hastily buy, based on price. Consider your entire firm and assess all of your challenges, rather than focusing on a single issue. Think about the firm’s needs over the coming five years and choose a durable option that avoids having to switch again in that time. Find a solution that integrates with all your systems to create a single source of truth.
Is it important it links with accounts production software? Ideally, practice management software should integrate seamlessly into your business. That means that all the software you have can link up. So, when you make changes in your accounts production program, it automatically alters in the practice management software too.
LSCA Business
How can IRIS help? IRIS offers two solutions that will fulfil the requirements outlined above - IRIS Practice Management and IRIS Practice Engine. Let’s take a look at some of the key features.
IRIS Practice Management delivers: • Acentralised hub for storing, sharing, and tracking all your client data and communication • Time savings: customers say it saves 2.5 hours per person per month • A real-time, single, unified view of your clients and your practice • The ability to plan, allocate, track, and monitor progress and workflow • Instant views into performance and immediate access to up-to-date client data • Powerful data mining and analytical tools
IRIS Practice Engine IRIS Practice Engine is a comprehensive cloud-based practice management tool. Key features include: • Proven and flexible time and billing features that can meet any of your firm’s requirements, including billing automation and mobile time entry. • Integrated Workflow: Efficiently move work throughout the firm in one efficient and accountable system that can make job management and tracking simple. • Streamlined Scheduling: Streamline your people and processes further with an intelligent scheduling module (US version only). • Powerful Reporting: extensive and dynamic reports and portfolios are built into the system and can be easily integrated with Microsoft Power BI and our Data Warehouse to go to the next level.
Want to learn more? Call us on 0344 844 9644 or email hello@iris.co.uk
Practice Engine www.charteredone.co.uk
Practice Engine ISSUE 27 Winter2020
25
LSCA Business
Communities Together Andrew Lovelady
Andrew Lovelady, our Past (Double) President, is very much involved with his local Methodist Church, and with their Bread church - an amazing initiative. Here he describes something that we can all become involved with. At our bread church we are trying to find ways to keep in contact with our community here in Liverpool and further afield while the church building is closed and we are missing our friends. We have a new volunteer in the community, Chris, from Crosby, and he is with us thanks to the "One Programme" run by the Methodist Church Chris is exploring ways to bring the community and friends of community members together and has come up with a project to take us through the winter "lockdown" months!. It's called "Grain Gather Grow" and won't cost you anything other than a bit of time to water your winter wheat and take pleasure in watching it grow and yield its crop in late spring. I would love it if you would consider taking part and doing something to make this Covid winter have at least one bright spot!! So just contact us for more details, register online, and dust off the windowsill to watch your wheat grow!!
26
LSCA Business
It's a wrap -
FD Executive Club Christmas Gathering Many of our members will have attended the FD Executive Club in the good old days of actual meetings. Simon Massey and his team don’t want us to forget them, and have this message for us: As we near the end of one of the most remarkable years in recent history Finance Director of the Year Awards partners Accountable Recruitment, HSBC and Grant Thornton will bring our FD Executive Club together on Thursday 3 December at 5pm, one final time for 2020, to end the year on a positive note! 2019 overall winner, John Grinnell, Finance Director and Deputy CEO of Alder Hey Children's NHS Foundation Trust, will share how the last year has been and their triumphs against adversity. Following Johns Q&A we will move into breakout rooms to network, then bring everyone back together for 2020's most competitive and fun quiz by Puzzleduck!!
Please contact Louise Garforth at louise@accountablerecruitment.com about registration and for more information.
www.charteredone.co.uk
ISSUE 27 Winter2020
27
LSCA Business
Liverpool Society of Chartered Accountants – 100 Years of Women in the Profession Barbara Boyle, our Diversity Champion has been researching the history of women in our Society, and has created an outstanding rendition of the story of our six female Presidents.
M
ay 2020 marked a pivotal moment in ICAEW’s historical advancement of access to the profession – 100 years since the admittance of the first female member, Mary Harris Smith. Mary joined ICAEW following the passing of the Sex Disqualification (Removal) Act in December 1919. This Act was a significant step forward for women entering a range of professions as it stipulated that: “A person shall not be disqualified by sex or marriage from the exercise of any public function, or from being appointed to or holding any civil or judicial post or from entering or assuming or carrying on any civil profession or vocation”
ICAEW has produced a short booklet setting out the history of leading female figures within the profession. Please see on line version e-booklet In addition, ICAEW has collated a number of female members’ stories of their career. See link to institute website Stories As 2020 is both the 100 year anniversary of the first female member to be admitted to ICAEW and is the sesquicentennial of the formation of Liverpool Society of Chartered Accountants, we wanted to capture the stories of female Presidents of Liverpool Society of Chartered Accountants. Liverpool has had six female presidents compared with three at national level.
We liaised with five of them to obtain their stories and insights of being female in what was once a male dominated profession. On this occasion we did not contact Barbara Appleton who was the first female president in 1995. However, Colin Appleton had contributed to Chartered One for the celebratory sesquicentennial edition, see link here https://www.charteredone.co.uk/archive/special-issue/ mobile/index.html, reference page 28. The table below provides an overview of key information. As can be seen by the relevant dates, it reflects the social history of female progression through the profession from the 1970s. In addition, it shows the consolidation from “Top 10” to “Top 4” national accountancy practices.
SUMMARY TABLE OF RESPONSES Name
Training contract - year started
Barbara Appleton
Training contract - name of firm
Training contract female and male ratio
Harmood Banner
Presidential year 1995
Anne Morris
1973
Harmood Banner, merged with Deloitte & Co. (Liverpool) Now PWC
2 : 15
1997
Marion Hodgkiss
1974
Coopers & Lybrand (Liverpool) Now PWC
2:4
2002
Eileen Quinn
1981
Arthur Young (Manchester) Now EY
50 : 50
2007
Carol McLachlan
1986
Arthur Young (London with transfer to Liverpool) Now EY
50 : 50
2018
Jan McArd (nee McDermott)
2003
McEwan Wallace (Birkenhead)
50:50
2010
28
(one trainee every few years)
LSCA Business
We shall highlight each person’s story and perspectives over the next few issues of Chartered ONE, and we start today with Ann Morris who was our President in 1997. Thank you to those who participated and gave their time and advice to the benefit of current and future generations. A number of common themes emerged from the individual responses that are equally applicable today: • Achieving the ACA qualification requires hard work and this should not be under estimated. • The hard work is worth it as the ACA qualification is a good business qualification to have as a foundation, no matter what you go on to do in the remainder of your career. • There were no regrets about embarking on a career in accountancy. Indeed all respondents seemed to thoroughly enjoy their careers. • Different career paths were taken once qualification achieved and
Presidential Year – Professional Role at that Time
respondents explored other avenues such as tutoring or coaching. • Respondents’ careers did not appear to be held back by being female. This was despite some of the earlier training contracts being at a time (1973 & 1974) when there were a low proportion of female trainees. • Two out of five respondents expressed a lack of confidence or assertiveness when younger, possibly due to being female. However this was not detrimental to their career progression in the profession. This is an interesting observation raising the following questions: - Would the female individuals have been even more successful if they had learned to be more confident / assertive at an earlier age? - Were the young male peers feeling equally less confident and that explains why female career progression not affected overall for those in this review? • Three out of five respondents raised families whilst pursuing their careers.
• Long lasting bonds of friendship were formed from being on LCASA and the local district society. The overwhelming advice to those currently contemplating a career in accountancy is to “just do it!”. It is all about self belief: only the individual is the main barrier to career progression. A suggestion for potential new entrants was to consider entry via the apprentice route – shorter and no debt at the end of it. All the respondents appear to have had quite different and unique experiences during their presidential year. All appear to have been eventful and enjoyable. Well done to those who embraced the leadership responsibility! At a national level, the current proportion of female entrants to the profession is around 50% but it can sometimes be as low as 45%. However, female membership does drop away at qualification level. In addition it takes time for the increased percentages to work through the total membership over time. Overall female membership represents approximately 29% of the total membership.
Common Themes
Positive Take Aways
Other Advice
Partner – Macfarlane & Co, Liverpool
Formed long term friendships from being on LCASA committee
• Excellent training for other subsequent career options
• Wished to have been more assertive in earlier stages of career. A possible legacy of being at a school for “young ladies”
Director & part owner of training company
Understand the hard work involved in qualification
• Opportunities to meet other professionals across ICAEW when on committee
• Consider Apprentice route as this would be debt free • It is you who are the main barrier to success
Self employed accountant and business consultant
A peer group in a student house tried to dissuade choice of career due to hard work involved.
• Many good female role models in earlier stage career
• Just do it! Hard work worthwhile in the end • Query what has happened to all the women who went through training
Business Consultant and Researcher
Hard work
Good business qualification
• More nuanced development required for females rather than “one size fits all” at that time.
MD of Jan McDermott & Co
Transition from AAT to ACA training was huge jump in additional work and complexity.
ICAEW badge positively recognised as quality mark by many small business owners who form client base.
• Qualification was AAT route after A-levels and then onto ACA qualification. • Becoming ICAEW president as a female is fairly niche demographic.
Sole Practitioner B Appleton & Co
www.charteredone.co.uk
ISSUE 27 Winter2020
29
LSCA Business
My memories from the accountancy profession 15. There were, I recall, over 400 staff – which made it the largest accountancy practise outside London.
ANNE MORRIS Training contract commenced: September 1973 Name of Firm: Deloitte + Co, Liverpool Date admitted to ICAEW: May 1979 Professional role when President of LSCA undertaken: Partner, Macfarlane + Co, Liverpool Presidential year: 1997 I fell into accountancy really, I can’t say that I ever particularly strove to be an accountant. I grew up in Prescot, and went to an independent school – Huyton College, where I was very happy. I was reasonably academic, and we were all encouraged to take on leadership roles. I always intended to become a Maths teacher. However, I needed to have a “fallback” for a form at school, so as my father was an accountant (Finance Director in industry) I decided to opt for accountancy. There was also a TV drama at that time, which featured a rather handsome local squire with a female accountant who went out riding with him. It looked to be a great life. (Hadleigh, starring Gerald Harper – it may have been a female lawyer.) I never really expected to actually become an Accountant! Unfortunately my mother had to have spinal surgery just around the time of my A Levels, and I chose to remain in Liverpool whilst she recovered, rather than go away to University. That meant having to find a place through clearing, and the only place that I was offered at Liverpool University was for Maths and Computational Sciences, in the Faculty of Social Studies. It may not be totally accurate, but I recall my father thinking that I was going to be with “a crowd of long haired hippies” which he clearly did not want for his daughter. So instead I applied to accountancy firms, was accepted by Harmood Banner, and completed the Foundation Course at Liverpool Polytechnic. By the time I started work, the merger with Deloitte + Co had taken place, and I found myself to be 1 of 2 girls in an intake of
30
At that time, there were not many other female professional staff in Liverpool office, and I was the only one in our audit group. I remember being regarded as a novelty at some clients – but in a nice way, it never bothered me. At one client company, I was shown round by one of the “middle management” – identifiable as such by the grey uniform jacket that he wore, and the particular works restaurant where he had his breaks! He took great delight in introducing me to all and sundry as “Anne, she’s with the Auditors, and she is an Auditor, not a Comp Operator!” (If anyone still remembers those amazing Comptometer machines and the ladies who worked them, who we took out to check the adds on ledgers and computer print outs, and extract audit samples using statistical sampling. 40 years ago, it really was a different world!) Another audit memory that I have, is being sent on a stocktake at a large bakery. Being a very diligent student accountant, and having had the in house training sessions on stock take attendance, I insisted that I had to climb the flour silo and look into/dip it from the top. Well, they could easily have fixed the gauge – couldn’t they? The warehouseman asked if I was sure, as “Blimey, we’ve never had an Auditor do that before – especially not a young girl like you. Are you sure you’ll be ok love?” Well, who could object to that kindness?
"I started work, the merger with Deloitte + Co had taken place, and I found myself to be 1 of 2 girls in an intake of 15. There were, I recall, over 400 staff – which made it the largest accountancy practise outside London." In Summer 1974 I was part of the LCASA golf team at the Nottingham Fiesta – where a great time was had by all. As a result of friendships made, I joined the LCASA Committee, becoming Treasurer in due course and then the Students’ rep on the “Senior Society”. I still have 3 or 4 good friends
LSCA Business
After qualifying the natural thing was to move onto the LSCA Committee, and over the years I was Dinner Secretary (many times!), Courses Chairman, and Treasurer before moving through the ranks up to President in 1997/98.
What advice would you give to new entrants or people thinking of entering the profession? Although I remained in the profession, in General Practice, Accountancy is such an excellent training arena for any future career in finance/business, that I would encourage people to consider it as a means to an end, and not necessarily the end in itself.
In meetings we would receive reports from Moorgate Place of members achieving 30, 40, 50 years membership. I wonder if anyone knew that I had achieved my 40 years last year – again, a quite frightening thought. For some reason, we also seemed to be aware that there were no recorded deaths of female members of ICAEW!
Through the training process, an insight is gained into so many different types of business and organisation. Once qualified, many opportunities exist for individuals who have learned and demonstrated an appreciation for adopting and following good practice, within an arena where ethics are sacrosanct.
from those days – horrifying to think that it is almost 45 years ago.
What advice would you give to your younger self? It seems to surprise people when I say that I am not very good at being forceful when I think that I am right, and others are not. I have never been comfortable with confrontation, as I don’t want to appear to be rude. After all, I did go to a school for “Young Ladies”. But today’s world is very different, and I think that when I was younger I should have stuck to my guns more than I did.
I have never regretted falling into my career in Accountancy. For a while I even had roles as a Training Manager with DH+S, and subsequently as a lecturer with Andersons Tutors, so I was even able to fulfil my original plan of teaching.
I have to say though, that I was promoted to Junior Manger, Assistant Manager and Manager whilst at Deloitte – the one that used to be Deloitte Haskins + Sells, now PWC. I certainly never experienced any barriers or salary differentials, or – as far as I am aware – benefitted from positive discrimination. Who knows, I might even have been Liverpool’s first female partner – if we had not set up Macfarlane + Co as a de-merger from DH+S. But that’s another story.
www.charteredone.co.uk
ISSUE 27 Winter2020
31
LSCA Business
MARION HODGKISS Training contract commenced: September 1974 Name of Firm: Coopers and Lybrand (as was) Liverpool Date admitted to ICAEW: October 1978 Professional role when President of LSCA undertaken: Director and part owner of training company – student, in-house commercial and CPD Presidential year: 2002
Why did I enter accountancy? I had thought about becoming an actuary but was told not to bother – because I was a woman. The chap who lived 2 doors away was an accountant with Deloitte and my father arranged for me to speak to him, and that is what started the thought of accountancy. To be honest I had no idea what it entailed but it was a job. I chose to take a contract with Coopers & Lybrand on Dale Street. There was an intake of 6 that year – of which two were female. This caused some ructions in the office as the senior partner’s secretary did not like having women in the office she couldn’t boss around, and one or two of the more senior staff were aghast at females in the office as trainees. The senior partner was Michael Potts, who I still see every now and again – oddly enough I don’t think he has aged since I started there.
"The training was interesting as C&L were a big firm so we had lots of large clients – some much more interesting than others."
The training was invaluable but once I qualified I was a bit restless and not that keen to continue in audit. I was asked to assist on an internal training course and thoroughly enjoyed the experience. With that in mind I left C&L and joined ATC Ltd to do student training. I intended to do that for 2 years and then move back into the profession. However, I got hooked and ended up lecturing full time not only to students but then to businesses and members for CPD. Tax is an area that is changing all the time so its never a dull moment. I was asked to become involved in the LSCA by John Anderson – a legend in the society – and so chaired the Education and Training Committee (as It was then called) as a starter.
"The people are so nice that you get sucked in, and I was honoured to be asked to become President when the call came." There are lots of opportunities to meet with other professionals from ICAEW and other professional bodies plus notable members of the business community. The other DS Presidents from around the country meet up regularly and we have formed a smashing group – about 20 – 24 of us (with other halves) meet up twice a year for long weekends away – any excuse for travel, food and drink The regional reorganisation started in the year before my presidency and so I was quite involved in the national ICAEW. I got a bit agitated – and so when one of the Liverpool Council sates became available, I stood, and ended up on Council for about 12 years or so. That was an experience – seeing the inner workings of the Institute – even though it was quite time consuming there were many interesting events and visits. Not many people can say they were at a dinner where Prince Charles spoke (very well) while they were trying to use their mobile to keep up with Liverpool winning the European Cup at the same time. The alley outside Moorgate Place was full of nervous supporters listening to extra time.
Our first course on accounting and auditing was residential – and that was an eye opener. I have to say though that I learned by double entry bookkeeping from a lady who worked for Unilever in Port Sunlight who sat me down in front of the various ledgers and showed me how it all worked. It clicked at that point and I was away.
I organised one of the annual dinners at the Anglican Cathedral – what a job – the work to make the venue suitable for large events wasn’t finished, the building was cold, it blew a gale all night, and the acoustics were awful. The caterers had to move all the kitchen equipment into the venue – and then out again while the speeches were going on.
The firm had a great social life – from the big events such as the summer parties to Friday nights in the Grapes on Matthew Street. It was not uncommon for the office to get a call on Monday morning to say someone had left their bag or coat there on Friday.
The other one I organised was at St George’s Hall. The main speaker was involved in sport and was at that time involved in a ‘story’ rebounding through all the papers and on TV. I was surprised to receive a telephone call from a journalist to find out when the speaker would arrive as they
32
LSCA Business
had arranged an interview with them. Fortunately I checked, and it was a scam to gain access when he had been avoiding the press. The security people were very helpful at chucking the journalist out and making sure they could not get access to the event in the evening.
EILEEN QUINN Training contract commenced: September 1981
Advice to younger self? Go for it – in these times being female should not prevent you doing what you want – it is you who are the main barrier.
Name of Firm: Arthur Young McCleland Moores as they were then, later Arthur Young, then merged with Ernst Whinney to form Ernst Young.
If you want to become involved – join the committee of the local society – it’s a great way to meet other members and become involved in the decision making.
Role during Presidency: Self employed accountant and business consultant.
Advice to new entrants? Make sure you understand what you will be doing and the amount of (hard) work that will be needed. It will be much harder than University. If you are sure about what you want to do consider the apprenticeship route – shorter and no debt at the end of it. Big downside is you don’t get the full ‘student experience’ of being away from home, the social life etc Encouraging more females? No ideas really – from experience people are either interested or not. I don’t think anyone sits down with the aim of becoming president of a local society. Connection to Liverpool – family home.
Date admitted to ICAEW: October 1985
Presidential year: 2007
I was based in Audit in the Manchester Office having previously completed a degree in French and Spanish at Manchester University. I look back in amazement at how I was recruited on the basis of a one hour interview with the Training Partner and convinced him that my maths was fine, having only an O Level in it! I was astounded recently to learn that when I was admitted only 7% of Institute members were women. I didn’t particularly feel in a minority at AY as our intake was almost 50:50 male and female. There were some strong female role models at AY who rose to Partner or reached high level positions in Industry and Commerce. Anne Whittaker, Heather Self and Ena Lund come to mind. Every audit assignment I went on had at least one woman in the team and I never felt I was in a minority within the firm. The clinching factor in deciding to enter the profession was probably living in a typical student house in Rusholme Manchester with 4 other girls, 3 of whom were doing accountancy. Carol O’Hare, then at Andersens, later became a Partner in PWC Manchester. She did her best to dissuade me but thankfully didn’t succeed. She knew how difficult the exams were but I was pretty determined. I had realised towards the end of my degree that I needed a further qualification and realised even then that Accountancy would open so many doors. A fellow graduate from the French Department, Linda Butler, joined AY in Liverpool at the same time. Looking back I do not for one minute regret my decision. It was hard work and I had to study every weekday evening. Once I qualified I would say to people that all I missed was 3 years of watching Coronation Street. A small sacrifice to make! After qualification I returned to my home town, Liverpool, and joined ATC, the training providers, now part of FTC Kaplan. There my boss was our very own
www.charteredone.co.uk
ISSUE 27 Winter2020
33
LSCA Business
Marion Hodgkiss, again a strong female role model. It was she who encouraged me to get involved in the local Society, and I later became President of the Student Society and Hon Secretary of the main Society. As a business ATC nationally had many female accountants working there so again I was not conscious of any great bias. In 1994, with 2 small daughters I decided that I needed more control over the direction of my career and balancing it against the needs of small children. I decided to become a self employed freelance accountant. I think by then I had exhausted my love of teaching and wanted to return to a hands on accountancy role. I was fortunate in that my husband, a lawyer in Liverpool, had a Practice which needed revamping in terms of IT and accounts so I worked there part time and as the girls grew older I branched out and took on a similar role in other businesses, mainly but not exclusively professional practices, building up a small portfolio of clients. The contacts I had by now made amongst fellow members of the Liverpool Society and Banks and other legal practices certainly helped here. I was still undertaking this self employed role when I became President in 2007. I had a break from Liverpool Society affairs after my stint as Hon Secretary while Peter Evans was President and 3 or 4 years later I was approached by Frank Murphy of Haines Watts to see if I would be interested in becoming Vice President. By this stage many of the Partners in Liverpool firms were former students of mine from ATC days and it was good to see them doing so well. To date, Frank remains the only student who bought me chocolates when he qualified! I suppose at this point I should admit that while during my ATC teaching days I always seemed to have lecture rooms with a good number of female students it was clear that not so many were rising to significant positions in the profession in Liverpool. Notable exceptions to this are Jill Jones now North West Regional Managing Partner at RSM and Jean Ellis at DSG.
"I did sometimes wonder where all the women had gone. Maybe like me, they had decided to undertake less high profile roles, or maybe it was simply that once people move on from Practice it is more difficult to keep track of them." My advice for new entrants to the profession is “Just do it’! It is hard work but it is worth it in the end. The qualification is world class and having ACA after your name allows you to enter such a range of different roles. I am not sure how easy it is to encourage more women into leadership roles in local societies and national. The world of work is highly pressured these days, particularly for women if they have a family to balance too. I am not sure that firms are quite as disposed to letting people have time off for ICAEW or LSCA business any more. I think 20 years ago all firms were much smaller and more localised, even if part of National or International networks. There was a more ‘local’ feel even among the Big 4 (or 5 or 6 as they were then). I do not think that feeling of a Liverpool community exists to the same extent any more, nor the same loyalty to the local Society. 34
CAROL McLACHLAN Year when articles/training contract commenced: 1986 Name of Firm: Arthur Young (now EY) Date admitted to ICAEW: 1989 Professional role when President of LSCA undertaken: Business Consultant and Researcher Presidential year: 2018
LSCA Business
Why did you choose to enter the accountancy profession? It took me three years between graduating in history and starting my training contract to come round to accountancy. I temped in admin in London and even did a spell with the Inland Revenue in Twickenham. I think I was resisting ‘settling down’ and still rebelling against my Dad and the ‘convention’ of his small local general practice. In the end, I realised I wanted a profession. I was having fun but didn’t have much progression to show on my CV. While working for one company in insolvency, I worked alongside the young Peat Marwick accountants and saw another side of the profession. Ultimately my Dad became my role model (I think he always was really). What advice would you give to your younger self? That three years of job hopping and experimenting was invaluable. For me, it was critical to making a fully informed decision and it meant I was ready to focus, commit and work hard to pass my exams first time. In the final year of my training contract I transferred from EY London to Liverpool, which again was a timely decision. Post qualification, I wished I could have been more confident. Although I got all my promotions promptly, I resisted some development opportunities (such as an Australian secondment), partly because I wanted to be sure of getting my promotions on time. This was short-term rather than strategic thinking and I do regret these missed experiences of my twenties. What advice would you give to new entrants or people thinking of entering the profession (male or female)? The ACA is a fantastic qualification, think of it as a business qualification rather than ‘accountancy’.
"In my line of work I coach and mentor colleagues who fell ‘trapped’ in the more traditional accountancy disciplines. They are amazed at the depth and breadth of their commercial and transferrable skills that I help them discover through coaching." Liverpool district society has had six female presidents compared with three for the national institute. Have you any suggestions for encouraging more females into such leadership roles? We recognise this in Liverpool and our unique panprofessional Women in Leadership development group is designed to support women of all ages in exploring, through networking and personal development, how to ‘lean in’ to leadership. Development and confidence is highly individual and deeply nuanced. Hearing other women’s stories, comentoring and stretching our comfort zones, can all be beneficial in nurturing and maturing our unique personal identity, whatever that might be. What was your connection to Liverpool? Born in Liverpool. Grew up in Wirral. Left the area for ten years but wanted to ultimately settle and bring up family back home in Liverpool. I have strong family ties to the city as my parents met while working in a small firm in Victoria Street, back in the 1950s and my father was in practice in Birkenhead. Some other thoughts about my career journey – more gender specific. Breast-feeding my first baby in 1996 in the stationary cupboard in the Liverpool EY office with my back against the door in case anyone barged in. I didn’t feel that my career path was encumbered by being female. Working in a big firm, I worked hard for my promotions and received them alongside (or ahead) of my male counterparts. But women do learn and develop differently than men and I would have benefitted from more gender-nuanced development activities. I don’t think this was well understood in the years I was coming up the ranks, as the training and development was ‘one size fits all’ and the majority of those on the career ladder where male. It has taken my daughter to point out the trials and tribulations I went through (blindly) in my early organisational career journey. After both babies I returned to work within three months because I thought this was a sign of strength, capability and achievement. I think I also thought it was necessary to be taken seriously. Thankfully, times have changed and it is now the norm to have a full year with your child before returning to work.
www.charteredone.co.uk
ISSUE 27 Winter2020
35
LSCA Business
JAN McARD (NEE McDERMOTT) Year when articles/training contract commenced: September 2003 Name of Firm: Trained with McEwan Wallace Date admitted to ICAEW: March 2000 Professional role when President of LSCA undertaken: MD of Jan McDermott & Co Presidential year: 2010 (been on the committee since around 2000 and have also been LCASA President) Common themes during presidential year: Made lifelong friends from across the country; made excellent business contacts who have provided support to my firm and has led to business for Jan McDermott & Co; massively improved confidence and public speaking during this time (mainly because I had to!) My story My introduction to the accountancy profession was purely by chance, rather than any great desire to be an accountant. Having completed A levels but not wanting to go to University, I applied for a number of jobs in a variety of industries and professions. An advert by a local accountancy training college caught my eye and I went along to complete their numeracy and literacy tests. Thankfully, I passed both with flying colours and despite being told by the trainer that I should apply to a firm that would let me train me as a Chartered Accountant, I accepted an offer from McEwan Wallace as a Trainee Accounting Technician in July 1990. It turns out I was rather good with numbers and so upon completion of my AAT I was given the chance to train to be a Chartered Accountant, which only came about because the 2 senior members of the team (both female) who it was offered to both declined. For a lot of my training contract I was the only ACA trainee but there was usually an equal number of male/female trainees (being a small firm, maybe one or two every couple of years) The step up from AAT to ACA was an enormous jump for me and I certainly wasn’t prepared for the huge amount of extra and more difficult work involved but my “never give up attitude” eventually paid off and I finally qualified in 1999. I had excellent role models at McEwan Wallace and even met my husband on my first day of employment! I don’t recall ever being treated any differently from any male staff
36
members, although it was probably mid 1990s before ladies could wear trousers. I was given plenty of opportunities to progress through the firm and grasped them all with both hands. I have fond memories of my time there as I forged my way through the profession. When I left McEwan Wallace in 2004 I was their (only) Senior Audit Manager with no-one above me apart from the (four male) Partners.
"For anyone looking to enter the profession I would wholeheartedly recommend it as it will provide many opportunities for a variety of careers. I still believe there is a huge amount of prestige in being able to wear the badge of the ICAEW and I believe that it is positively recognised by many small business owners who form my client base." However, I do still think that there may still be barriers to becoming the ICAEW President as a female, and I think that generally there is a fairly specific/niche demographic for someone willing/able/suitable to take on that role As I didn’t have a degree or come from an accounting background, I never would have believed that I would become a Chartered Accountant, be one of only 6 female LSCA Presidents, and have my own accountancy firm, all of which are my proudest life achievements.
Professional Services | Financial
When should a business speak to an insolvency practitioner? A question that is on any businesses owners’ mind when facing financial and operational challenges that threaten the continuity of the business. Many assume that an insolvency practitioner should be contacted at the point the company becomes insolvent, but this is not what we would recommend – it is far more beneficial for an IP to be contacted much earlier.
T
ypically, we have two scenarios when we are contacted. Either the business is having problems and the management are aware of the cause OR, the business is having problems and the management are at a loss of the clear route cause; which is more often the case. Common problems we regularly see are: 1) Battling overdraft facility 2) Arrears in HMRC payments 3) S upplier issues affecting delivery of own products/services 4) S taffing issues e.g. can’t find staff or can’t hold onto staff 5) Balance sheet and/or turnover reduction 6) Client erosion All too often, multiple indicators are showing themselves and with the overwhelming pressures, the management are in the thick of trying to resolve the problems, convinced they can fix them
without external help, often patching up issues rather than implementing longerterm fixes. Current Challenge An insolvency outlook report by Atradius(1) forecasts business failure rates will increase by 10% this year in Britain. External influences and economic change can often be the final blow for a business that has already been struggling. There are many businesses across the UK which have been ‘surviving’ rather than thriving and one small change such as an increase in interest rates can send them over the edge. In light of growing challenges, it is important that companies act with speed if the owners/Directors identify problems in the business; before the challenges become too big. Often, when we are engaged earlier, there are likely to be more options to rescue a
business rather than implement an insolvency process. We want to be working with Stephen Berry, businesses Partner at Opus as early as possible so that we can help them with solutions to recover their business rather than taking them down the insolvency route. This is where we can best support the management team. As well as recommending and implementing known and tried methods to help the business, we have a number of contacts who can help the struggling business if a new viable plan can be identified. For more information about our services, please call us on 0151 705 9115, email liverpool@opusllp.com or visit the website www.opusllp.com.
1. https://www.cityam.com/global-insolvency-rates-tipped-to-reach-10-per-cent-in-the-uk/
RESTRUCTURING & INSOLVENCY
Taking the Stress out of Distress At the point a business is in distress, the business owners and/or Directors need support from people they can trust, that are visible and readily contactable. For your clients, we know that means not only having people who understand the nature of their work, but also the local business market. Opus is a business advisory, restructuring, insolvency and exit management practice. The Partners are focused on commercially driven results and take a proactive approach towards tackling business challenges with an assurance of confidentiality.
Chartered One - Winter 2019 Advert - Opus 02-131119.indd 1
0151 705 9115 liverpool@opusllp.com www.opusllp.com twitter.com/opus_llp linkedin.com/company/opus-llp/
www.charteredone.co.uk
ISSUE 27 Winter2020
37
13/11/2019 11:23
LSCA Business
ISLE OF MAN SEEKING NEW ACCOUNTANCY TALENT TO DRIVE ECONOMIC GROWTH
W
hat images are conjured up when you think of the Isle of Man? The world famous TT Races? Cats with no tails? Manx Kippers? Its blended Celtic/Norse heritage? Multiple Tour de France stage winner, Mark Cavendish? Whatever you first think of, what can’t be denied is that the Island has a diverse and rich culture and history, which is multi-faceted. It’s not just castles and cats…an increasing number of people are looking to relocate to the Island to further their careers and to enjoy a much better work/life balance than they may be experiencing in their current location. The Isle of Man is a self-governing British Crown Dependency. Tynwald, the Isle of Man’s parliament, has been in existence since 979 A.D. and is therefore the oldest continuous parliament in the world, giving new meaning to strong and stable government! One of the key strengths of the Isle of Man over the past 30 years has been the growth in size and diversity of its economy. 38
Since the 1970’s the Isle of Man has been regarded as a highly respected finance jurisdiction. So it is no surprise that there is such a long history of Chartered Accountancy on the Island. The Isle of Man Society of Chartered Accountants has 600 members – this is within an overall Island population of around 85,000 - and the sector is well represented by the presence of the ‘Big 4’ firms and a large number of longestablished independent practices. Accountants remain in high demand in the Isle of Man and its Government is keen to attract more accountancy talent to its shores. But why move to the Isle of Man? Yes, it’s a relatively small island. But it’s the same size as Singapore and with a vastly smaller population its residents are able to enjoy a diverse and beautiful landscape literally on their doorsteps. The small size of the Island and the proximity of workplaces to homes means that the average commute takes only around 20 minutes. That’s if you drive. The Manx Government is also encouraging an active travel policy.
Many residents in Douglas, the Island’s capital, decide to walk into work. There are also many more people deciding to take the journey by bicycle, taking advantage of a growing network of dedicated cycle lanes and pathways and inspired perhaps by our impressive roster of world-class professional cyclists! The easy accessibility to rich landscapes also drives a work/life balance which would be the envy of many a metropolitan inhabitant. Since the start of the Covid pandemic, more organisations have implemented a flexible working policy. Yes, we do work hard in the Isle of Man, but within a few minutes of leaving the office you can be doing what you want to be doing. That could be yoga, running, cycling or a session at the gym. And you’d still be at home in time for ‘Eastenders’! The culture of flexible working that exists in the Island was one of the key reasons why it was ranked 12th in the world as a place for expats to live in a recent survey undertaken by HSBC. The Isle of Man is also regarded a safe haven. Not only for the wealth of
LSCA Business
international clients in keeping with its status as a major international finance centre - but also for the people who live there. At the time of writing (November 2020) the Island’s residents are not under any local Covid-19 restrictions due to some stringent but common-sense measures applied by the Isle of Man Government. The Isle of Man also has a very low rate of crime. In fact it has the lowest rate of crime in the British Isles along with the highest detection rates. Many accountancy firms offer relocation packages for those people offered employment terms. It is also important to note that although the Isle of Man’s borders remain closed at present, anyone who has signed an employment contract is able to make the move to the Island, though they will be under a strict 14 day self-isolation rule on their arrival, as would anyone else in the household. Some of you may be concerned that the relatively small size of the Isle of Man means that career progression opportunities in accountancy may be limited. Nothing could be further from the truth. As highlighted earlier, the Isle of Man remains a major centre for finance and affords a wide range of opportunities across accountancy practice through to industry. Many of the industry opportunities are in emerging tech sectors, or in regulated businesses within eGaming in which the Island is one of the leading jurisdictions in the world.
recruitment agencies based on their specific skills. The platform also encompasses an instant messaging function which allows users to start the conversation in real time. Users can also create shortlists tailored to their career goals.
You simply need to register at https:// talentportal.locate.im/ to start your Isle of Man journey. The Isle of Man Society of Chartered Accountants represents the interests of chartered accountants on the Island. They can be contacted at iomsca@icaew.com
The easy accessibility to rich landscapes also drives a work/life balance which would be the envy of many a metropolitan inhabitant. Since the start of the Covid pandemic, more organisations have implemented a flexible working policy. Yes, we do work hard in the Isle of Man, but within a few minutes of leaving the office you can be doing what you want to be doing. "
If any of this has got you interested in relocating to our wonderful island, the Isle of Man Government’s Department for Enterprise recently launched the Locate Isle of Man Talent Portal. It has been developed to help people looking to relocate to the Isle of Man find employment as easily as possible. It is free to use and aims to connect local businesses with skilled workers looking to relocate. Candidates will be automatically matched with employers and www.charteredone.co.uk
ISSUE 27 Winter2020
39
LSCA Business
MILESTONE YEAR FOR CROWE MORGAN
Crowe Morgan (CM) are celebrating their 20th anniversary in 2020 by enjoying continued growth that has enabled them to become one of the largest independent firms of Chartered Accountants and Trust and Corporate Service Providers in the Isle of Man. Their unwavering commitment to their values and client relationships has made them one of the Island’s most respected names within its business community. We have built trusting and lasting relationships with our clients, which helps us to develop tailor-made solutions to the matters they bring to us. Whether a client is located on the other side of the world, or literally around the corner from our offices, at the heart of our success has been a steadfast commitment to traditional values. These encompass the high levels of trust, service, expertise and integrity that form the basis of our client relationships. The services our clients request can be very diverse so a strong understanding and open communication is the cornerstone of everything we do. From a simple tax return, to planning complex trust and private wealth structures, to business accounts or audits – what the client needs is key. It’s not what we think the client wants, nor is it the creation of complex solutions to enhance our own profits. As their trusted advisor, we draw on our considerable experience to create solutions to client’s problems. Requests can range from someone who is wary of filing returns themselves because they do not want to get it wrong and risk a penalty, to those who see such matters as an unfortunate necessity which they would rather we deal with. We have also become involved in many diverse matters such as employing and instructing builders regarding renovation of development of properties, to sourcing the best medical experts, to buying and maintaining yachts and aircraft.
40
We are also well versed in helping families relocate to our beautiful Island, attracted by its unsurpassed opportunities for work/life balance. As an independent firm, we do not take a generic approach to client matters, which might not fully consider their individual interests or issues. The CM approach is the polar opposite of this. We make decisions personalised to the specific needs of the client. These often require us to “think outside the box”; but result in simple, efficient solutions for our client. The personal, bespoke service that our clients receive is delivered with a consistent team structure. We assign a Director, Manager and Trainee to each client so that they become well versed and knowledgeable about a client’s affairs. In turn, our clients feel reassured that they can contact someone from their team at any time. One who understands their business and can respond to their enquiry efficiently. Clients consistently tell us that they value the relationships they build with their respective team members. Given the current economic environment the world finds itself in, we also understand the importance of sensitivity in regards to financial pressures on our clients. Our approach ensures that matters are dealt with by the team member at the most appropriate chargeout rate, making our services costeffective and competitive.
Delivering great service requires a great team so we make sure our people receive ‘best in class’ training. We are proud to be recognised as a training firm for the Institute of Chartered Accountants in England and Wales (ICAEW) and a Platinum Approved Training firm for the Association of Chartered Certified Accountants (ACCA). We currently have 25 trainees actively studying towards one of the qualifications and are simultaneously giving them invaluable practical, professional and varied training in their day to day roles. This training exposes them to all aspects of our profession which we feel enables them to make optimal use of their talents once they qualify. In fact the CM approach to training has generated a reputation for us as an employer of choice, even extending off-Island with several of our people having relocated from the UK. Once qualified, our investment in our team’s development does not end. We continue with management and practical training to help junior management progress their careers. We are proud of the fact that many of our senior management team trained within our business. Many of our Directors and Managers hold positions on various local accounting and business associations, giving them the opportunity to engage directly with regulators and Government bodies.
LSCA Business
While none of us can predict the future, particularly with the ongoing uncertainty around Brexit and the Covid-19 pandemic, our outlook is very positive; we continue to grow and we look forward to another 20 years of success! Would you like to relocate to the Isle of Man to help us build on our 20 year legacy? Visit www.crowemorgan.com/ careers-training
MANAGER/ASSISTANT MANAGERS
Due continued growth, to join join its its busy busy trust trust and and Due to to continued growth, Crowe Crowe Morgan Morgan seek seek Managers a Managerand/or and/orAssistant AssistantManagers Manager to corporate service provider and general accountancy practice based in the heart of Douglas, Isle of Man, where you can enjoy our culture, sports, scenery and secure lifestyle. Reporting directly to senior management, this is an exciting opportunity to relocate to a primary international finance centre to work for the Isle of Man’s leading independent firm of trust and corporate service providers and chartered accountants, giving tailored service to family office clients. Candidates should be: • Newly qualified or with post qualification experience, practice trained, ACA or ACCA. • An excellent communicator with strong organisational skills who is able and wants to lead on family office management and help train junior members of staff. • Looking to broaden their experience by covering all aspects of general accountancy and the provision of trust and corporate services to high value clients.
• Ensuring timely completion of all aspects of client engagements including trust and corporate service administration, liaising with expert advisors. wealth planning, treasury management, preparation of financial statements, overseeing completion of financial, taxation and compliance returns. • Supervising and training junior members of the team and involvement in conducting appraisals, training sessions and attending management meetings. • Audit experience is an advantage but not a necessity.
Responsibilities
Salary commensurate with experience.
• Principal face to face contact for allocated clients to help them in all their financial and fiscal requirements.
To apply, please submit your CV to Amy Slee FCA, Director amyslee@crowemorgan.com
www.charteredone.co.uk
ISSUE 27 Winter2020
41
LSCA Business
Score a goal this Christmas
42
LSCA Business
Are you able to help support this wonderful Christmas Hamper initiative created by Tranmere Rovers in the Community.
www.charteredone.co.uk
ISSUE 27 Winter2020
43
Professional Services | Financial
TALKING TO AN ACCOUNTANT COULD NOW BE MORE IMPORTANT THAN EVER.
"THE MONTHS AHEAD WILL SEE CHOPPY WATERS FOR SOME, WHILE PRESENTING OTHERS WITH GREAT OPPORTUNITIES. AT REWARD WE ARE NOT FAZED BY EITHER SCENARIOS."
Steve Noble, Managing Director – North West at Reward Finance Group outlines how accountants and funders could help SMEs by simply talking to them. ‘Uncertainty’ – it is a word that keeps cropping up when I talk to SMEs, advisers, and introducers. It’s a word that has resulted in inertia, or perhaps that should be paralysis, with companies waiting for a tsunami of potential debt to appear over the horizon, as the financial support from the Government will eventually, and inevitably, come to an end. The extension/amendment of furlough, CBILS, bounce back loans, and the deferral of HMRC payments will push back the potential debt mountain into next year and beyond. If you then add Brexit into the mix, you can understand why so many SME owners feel ‘uncertain’ about the future.
46
Steve Noble
Most of the businesses both of us will see are owner-managed; responsible for tight knit and loyal workforces, which can feel like an extension of their own family. This can heap even greater pressure on them, with the ‘uncertainty’ creating a significant burden to bear and carry. It’s good to talk It all comes at a time when mental health and wellbeing is, quite rightly, at the top of the agenda, with mental health charities and the media promoting the ‘Britain Get Talking’ campaign. It can be incredibly lonely for business owners. They can be a proud bunch portraying an air of resilience and optimism, but the reality can be very different. That is why taking the first step of simply talking to someone, and having someone to listen to what they are experiencing, often requires greater bravery than many of us may realise. It is proven that men, in particular, all too often do not seek help and advice, with a
tendency to try and brush things off or ‘put their heads in the sand’ to avoid what is happening around them. However, now more than ever with these ‘uncertain’ times, which will be with us for some months ahead, the simple art of talking to their accountant/adviser/ funder about how they feel, and what they are experiencing, is likely to be a far more cathartic experience than they might appreciate. There’s always a solution to a problem Some believe there is no solution to their problems, and many suffer in silence resulting in mounting stress and sleepless nights. But once they share their concerns many are shocked about how simple the solutions can be with a weight taken off their shoulders. From our part, in its simplest form, we lend cash to provide solutions. Don’t think of it as a lending product, as business owners don’t. Instead they wake up and think about a sum of money they
Professional Services | Financial
need to address a ‘burning platform’ or to provide the gateway to an opportunity they have identified. Reward Finance Group is a versatile and flexible secured lender that likes to keep things simple. We can deliver at a real pace where it is needed but, more than that, we do it in a transparent, common sense way, with no red tape or ‘jumping through hoops’. You can discover so much by meeting someone We always meet our clients and the current climate does not alter that approach, although it is now done at a safe distance. We listen to their story, because it can be easier to tell us about it rather than having to write it down. It also gives us the opportunity to see the personality of the directors, weigh up their strengths and judge the passion they have for the business. Naturally we use technology, but we are also unashamedly traditional in wanting to
understand the situation to allow us to craft a solution which will work for both of us. That might sound like a glib statement but, for example, if we provide funds to cover an 18-month projected need and the client surpasses their own expectations and completes the work in 12 months, we won’t be pointing out the ‘small print’ and penalising them. That’s because we don’t work with ‘small print’. Instead we’ll be giving them a pat on the back and we will both celebrate a good job well done. We reap the rewards by being flexible. They then tell others about the way we operate which enhances our reputation further. This approach has helped us to enjoy consistent success with year-on-year growth, as we celebrate our 10th birthday this year.
It is interesting to observe that other funders are now coming into our core space of lending between £50k and £3m. As imitation is the sincerest form of flattery, we will take that as an indication the new ‘players’ see we are doing well, and our uncomplicated approach works. The new competition will only spur us on to listen, talk to, and help even more businesses. The months ahead will see choppy waters for some, while presenting others with great opportunities. At Reward we are not fazed by either scenarios. So, if you have a client who could benefit from talking to us, let’s have a conversation to see if we can help. It doesn’t come much easier than that.
It is also why, during these past months, we have not altered our approach one iota – no policy changes; no shifting of lending appetite; no withdrawal from sectors; we just keep doing the things that have made us successful from the start.
www.charteredone.co.uk
SO LET’S TALK… You can contact me by calling me on 07802 297 929 or email me on steve.noble@rewardcf.com
ISSUE 27 Winter2020
47
Professional Services | Financial
Financial wellbeing: Mastering your financial situation
The Covid-19 pandemic has shone a light on the different triggers that can affect our mental health such as the effects of isolation and anxiety. The importance of mental wellbeing cannot be overstated. It can erode quality of life, disturb sleep patterns, and generate physical illness. Anxiety about our finances – particularly debt – can be a significant contributor to mental ill health. It can even lead to a twenty-fold risk of committing suicide. WHAT DO WE MEAN BY FINANCIAL WELLBEING? One thing to make clear is financial wellbeing isn’t about having the most money. It’s about having enough money to enjoy the things in life that make you happy without having to worry. It’s also about feeling in control, having financial freedom, and prioritising what’s important to you. The aim is to achieve the financial peace of mind you need to enjoy life. MONEY AND MIND In September 2020 Schroders Personal Wealth released its inaugural Money and Mind report in association with the University of Warwick and Opinium. We interviewed 2,000 people from across the country in August 2020. We wanted to assess the nation’s financial wellbeing in an attempt to understand and improve people’s relationships with their finances. Our report found 48% of adults feel stressed or overwhelmed by their financial situation either regularly or occasionally. On a scale of 1 to 100, the nation’s overall score was 52. This breaks down into four key areas each of which were scored out of 25: • Getting the basics right, • Managing debt levels, • Protecting against the unexpected, and • Planning for the future. The good news is the majority of people across the UK are getting the basics right (20/25) and have their debt and household finances under control (24/25). But they score poorly on protection (3/25)
Lisa Govier, Client Director
48
Professional Services | Financial
and have not planned sufficiently for the future (5/25). This could be leaving them vulnerable to unexpected events and to disappointing retirements. Worryingly, a number of people who think they are in a financially sound position, are not. HOW IS LIVERPOOL AND THE NORTH WEST FARING? The Liverpool region scored just better than the national average in three of the main categories but just below average in preparing for the future. The wider North West of England had the highest overall score of 54 with gains from Getting the basics right and Planning for the future.
But the first step is almost always to admit you have financial worries rather than avoid looking them in the eye. As with many issues that cause anxiety, this might seem overwhelming but the journey of a thousand miles starts with a single step. Making even simple changes – like shopping around for better energy or mobile deals – can relieve pressure incrementally and start improving your overall wellbeing.
CONCLUSION Financial wellbeing is something we believe everyone can achieve. Whether you engage with your finances on your own or seek support from a professional, the underlying process should follow the same path. Your goal should be to identify the things that will bring you happiness and to put a plan together that aims to achieve them. Focus on what is personal and important to you, and what will bring you a feeling of ease and wellbeing. Having money can help but it isn’t everything.
Having a financial plan in place puts you in command of your finances. Creating a strategy designed around the future you want can bring immeasurable peace of mind."
HOW COULD YOUR CLIENTS BE IMPACTED? Small and medium Lisa Govier enterprises are the lifeblood Client Director, Liverpool and North Wales of the nation, comprising 99% of all businesses and employing 60% of the workforce. The pandemic has struck hard at these Eventually you might feel confident stalwarts of our local communities. Many enough to tackle the really major issues. face bankruptcy and many more may have And at this stage you might feel the need been damaged beyond repair. For them, for professional help from a financial the worrying statistic from the Money adviser. Especially if you don’t know where and Mind report is 27% of employees feel to start. their ability to do their jobs is impacted by financial worries. HOW FINANCIAL PLANNING CAN HELP Talking to a financial adviser about your At the end of 2019, approximately one situation and your aspirations could seventh of the working population was achieve many things. self employed. Not being able to count • I t can help you identify and focus on on a fixed salary every month can make what is really important in your life budgeting and financial planning more • I t can help you better understand your challenging. So those who have had to current day-to-day financial needs take unexpected time off work can be • I t can help you plan for a better under a great deal of financial pressure. financial future. And the effects can be long ranging with only 16% of self-employed people In practice, this could mean identifying currently paying into a pension. how much money should be set aside for emergencies and rainy days. It could HOW CAN WE IMPROVE FINANCIAL mean identifying the right strategies WELLBEING? should you be unable to work for extended The journey to good financial wellbeing periods. And it could mean optimising your can have many stages involving everlonger-term investments with the aim of increasing levels of understanding and providing the retirement you’ve always awareness, knowledge and engagement. dreamed of.
You can find out more about financial wellbeing on our website at www.spw.com/ campaign/financial-wellbeingindex. You can also download a copy of Money and Mind from this page. If you’re interested in learning more about some of the topics around financial wellbeing, you can find further articles at www.spw.com/wealth-lens. If you would like to find out more about our services visit our website at www.spw.com. If you’d like to book a call with an adviser you can contact me on 07736 359933, or email us at NorthWestPWS@spw.com
Important information These are the views of Schroders Personal Wealth at the time of publishing. In preparing this article we may have used third party sources which we believe to be true and accurate as at the date of writing. However, we can give no assurances or warranty regarding the accuracy, currency or applicability of any of the content in relation to specific situations and particular circumstances. Eligibility criteria and fees and charges apply at Schroders Personal Wealth.
www.charteredone.co.uk
ISSUE 27 Winter2020
49
LSCA Business
End of year technical update
50
CONTENT TITLE
TEAM BEHIND IT
Winter is coming
Faculties Online
Coronavirus: How to improve disclosures when preparing accounts in accordance with FRS 102
Financial Reporting Faculty
Working for inclusive start-ups
Corporate Finance Faculty
Five steps for diverse networks
Financial Services Faculty
Special Report - Commercial insight
Business and Management Faculty
Brexit eye – challenges at the border
Business and Management Faculty
Excel Tip of the Week Live #7
Tech Faculty
Tax during and after Covid
Tax Faculty
Anti-money laundering: The basics educational series.
Ethics & Business Law
Publication of anti-money laundering (AML) sector guidance
Ethics & Business Law
Quarterly Q3
Sustainability
Automation in finance functions: lessons from India and the UK
Tech Faculty
Remote auditing in practice
Audit and Assurance Faculty
LSCA Business
TEXT FOR SHARING
LINK
This article highlights resources from the Faculties to help with the urgent pressures being faced in the forthcoming reporting season: accounting and auditing. It also calls on members to feedback issues, so we know new resources or practical help needs that we are not yet covering.
https://bit.ly/2Fyk4s4
This guide considers the impact of COVID-19 on disclosures in the notes, the strategic report and additional considerations for small entities.
https://bit.ly/2SAkIZe
ICAEW is supporting East London Inclusive Enterprise Zone (ELIEZ), a new initiative to help entrepreneurs who are disabled and start-ups that work with disabled people. The Corporate Finance Faculty is working with UCL to devise and deliver seminars, coaching and one-to-one mentoring about attracting investment.
https://bit.ly/3jFF3bc
In this article Sonya Dreizler looks at ways you can build more diverse networks to benefit your business in financial services.
https://bit.ly/33EFsFn
This report explores the ever-changing role of the CFO who is expected to innovate, collaborate with all parts of the business and look at business through more than a financial lens
https://bit.ly/3izJOlf
An article from Business and Management (faculty magazine) which considers challenges that UK businesses may encounter when trading with Europe
https://bit.ly/33DRdvW
The latest in our series of free Excel webinars based on the popular blog series, in which David Lyford-Smith demonstrates a range of Excel tips and tricks for users of all levels
https://bit.ly/33zT2d8
Alongside the Tax Faculty’s continuing work on the development of the COVID support schemes, with guidance for members at https://www.icaew.com/coronavirus, it has also been considering the future of tax and providing evidence in response to the Treasury Select Committee’s inquiry into Tax after COVID.
https://bit.ly/3jFbRBg
ICAEW and IFAC have released the first instalment in a 6-month short series explaining how money laundering works, the risks accountants face, and what they can do to mitigate these risks.
https://bit.ly/33AEqKt
Following work by an ICAEW-led group, the CCAB AML guidance for the accountancy sector has now been updated for the revised money laundering regulations. The draft guidance has been published pending approval from HM Treasury.
https://bit.ly/3d72bwL
The Q3 edition of Quarterly includes a special report considering who should pay for the recovery, and how we make it fair and sustainable.
https://bit.ly/33EFM73
A joint report between ICAI and ICAEW on finance automation, based on case studies with leading member organisations.
https://bit.ly/33FFRHL
Restrictions in travel and local lockdowns have resulted in the rapid adoption of remote working, including remote auditing techniques. This Audit and Assurance Faculty webinar explores the practical issues of auditing remotely.
https://bit.ly/3jJgxpK
www.charteredone.co.uk
ISSUE 27 Winter2020
51
LSCA Business
ICAEW technical updates and information John Nolan, our Past President sits on the Technical Committee of the ICAEW, and is in a very privileged position to be able to share aspects of the activity that many committed create.
CONTENT TITLE
TEAM BEHIND IT
MONTH /YEAR
World Economic Forum – Can the tools of finance build back better?
Sustainability
July 2020
Response to FRC consultation on the use of technology to enhance audit quality
Tech Faculty and Audit and Assurance Faculty
July 2020
There has been a lot of activity around Technical Policy during the year as proposals for change emerge in multiple areas affecting members’ work.
Causes of formulas not calculating
Tech Faculty
July 2020
What now for general insurance products?
Financial Services Faculty
July 2020
Maintaining agility post-coronavirus
Business and Management Faculty
July 2020
Corporate Financier magazine leads the way
Corporate Finance Faculty
July 2020
Roadmap announced for Making Tax Digital
Tax Faculty
July 2020
UK modern slavery reporting: a missed opportunity?
Business Law
July 2020
Extension to the Trust Registration Service for 5MLD
Ethics Team
July 2020
IFRS and climate-related disclosures
Financial Reporting Faculty
July 2020
Build back better: green issues in the boardroom
Corporate Governance
July 2020
Introducing reverse stress testing
Audit and Assurance Faculty
July 2020
Using an electronic signature to sign an audit report
Audit and Assurance Faculty
July 2020
The themes include ensuring businesses are fit for the future, pursuing a number of major projects supporting our five goals for audit reform, accelerating climate action including taking forward proposals to reform the EU’s non-financial reporting directive, and tax reform to reduce inefficiencies, explore opportunities and make taxes work better. We need your ideas and perspectives to help us input to these various initiatives. If you are interested in contributing to any of the areas below please get in touch with john.boulton@icaew.com or drop John a note at jnolan@tmhcc.com
52
LSCA Business
TEXT FOR SHARING
LINK
In this article published by the World Economic Forum, Michael Izza outlines the accountancy profession’s role in the ‘great reset’
https://bit.ly/2CcAJzI
ICAEW provides input following extensive consultation with active members from the Faculties and wider stakeholders
https://bit.ly/3gKYzlg
A new video to accompany a very popular blog on the Excel Community outlining causes of formulas not calculating (blog has over 1 million views to date!)
https://bit.ly/33Ns5mG
Brought to you by ICAEW Financial Services, journalist Jonathan Minter asks whether coronavirus volatility has changed the landscape for general insurance products.
https://bit.ly/33IEI2i
Many businesses want to maintain their newly found agility as we emerge from the pandemic. How can they achieve this? In this video, Rashad Shamim, a business transformation expert at RGP, shares his insights on agile working with Rick Payne of ICAEW's Business and Management Faculty.
https://bit.ly/33L3OgY
The Corporate Finance Faculty has stepped up its coverage in Corporate Financier to help members in business, investment and advisory during the Covid-19 crisis.
https://bit.ly/31zQ6es
As part of the Legislation Day announcements on 21 July, the government set out its roadmap for the further roll out of Making Tax Digital (MTD) including VAT, income tax, and corporation tax.
https://bit.ly/3kulpzH
With the COVID-19 pandemic potentially risking an increase in modern slavery and human trafficking, ICAEW explain why this is the time to strengthen requirements to report.
https://bit.ly/33LJ1u0
This summary covers the extension to the Trust Registration Service for the Fifth Money Laundering Directive (5MLD)
https://bit.ly/33Fx5tE
This webinar explains how the existing requirements of IFRS apply to climate change and other emerging risks
https://bit.ly/33GIVnj
Chapter Zero Chair Julie Baddeley reflects on how climate change has moved up the board agenda, the rise of green capital, and the demand for effective climate-related reporting.
https://bit.ly/31zHnJe
This guide introduces reverse stress testing as a tool that all entities can use to enhance their going concern assessments and improve risk assessment during the COVID-19 crisis and beyond.
https://bit.ly/2DCeSm4
This guide outlines the legal and regulatory environment, including the types of electronic signature, and provides quality management and other practical considerations around signing an auditor’s report using an electronic signature
https://bit.ly/2PCqisx
www.charteredone.co.uk
ISSUE 27 Winter2020
53
0800 694 0484
www.accesscm.co.uk | enquiry@accesscm.co.uk
No collection - No fee Established Y2K
LSCA Business
www.charteredone.co.uk
ISSUE 27 Winter2020
55
CharteredONE The official magazine of the Liverpool Society of Chartered Accountants
Thank you for reading this issue. Please contribute to our next issue in January.
to all of our members.
