IE Accounting and Business

68 Pages·2016·22.95 MB·English

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Accounting and Business
The magazine for fi nance professionals IE.A IE 04/2016
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Face ace
Paddy Doyle’s startup company Clinch
is shaking up the world of recruitment
Finance on board
Why accountants are well placed to take
up non-executive directorships
Relocation, relocation, relocation The offshore taxman
The US partiality for tax inversions Common Reporting Standard targets tax evaders
Think Ahead Home alone How personal insolvency rules have changed Peace process EU funding for infrastructure projects Think Ahead
Tax crackdown Preparing to turn BEPS actions into reality CPD technical SME fi nancial reporting
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Welcome
Welcome
Reshaping the future
As this edition of Accounting complex issues such as offshore tax evasion and change the
and Business went to international tax landscape. Our features on pages 30 and 38
press, Ireland’s two biggest have details on this.
political parties remained The same collaborative approach is evident within ACCA.
locked in discussions with Council brings together 36 members from all over the world,
smaller parties and independents in a bid to form a new elected by the ACCA membership, who contribute their
government. In the election aftermath, it is by no means knowledge and skills, and work with the executive team to devise
clear how, or if, a new coalition can be formed to carry on ACCA’s strategy and oversee its delivery. On page 21 ACCA
reshaping the economy over the next term of offi ce. president Alexandra Chin explains the importance of Council to
The risk now is that the political manoeuvrings will heighten the governance of ACCA and invites members to put themselves
the sense of instability, which could jeopardise Ireland’s fragile forward for election.
recovery. Ian Guider explores the topic on page 22. And on page 64, ACCA chief executive Helen Brand
While a break with the past can sometimes be risky, it may looks at how ACCA has been using feedback from the last
also turn out to be the best option, in business as well as politics, member satisfaction survey to develop and enhance the range
and especially in the world of new technology. Paddy Doyle of products and services it offers to members. The latest
FCCA explains how his startup company Clinch is using social developments responding to member wishes include: a new
media techniques to create a different approach to traditional ACCA Careers website; a refresh of CPD training; more research
recruitment challenges. Find out more in the feature starting into the role of the fi nance professional; and greater lobbying of
on page 12. government, regulators and tax authorities.
In this edition we also highlight what can be done when
governments from different countries work together to tackle Pat Sweet, Ireland editor, [email protected]
Also from ACCA Accounting Channels and media
and Business
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Member benefits offer business-relevant, fi rst-choice
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memberbenefi ts career in accountancy, fi nance and
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ireland www.accaglobal.com On a raft of topical issues
04/2016 Accounting and Business
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Contents
News
AB IE Edition
6 News in pictures
April 2016 A different view of recent
headlines
Volume 7 Issue 4
8 News roundup
Ireland editor Pat Sweet
A digest of all the latest
Editor-in-chief Jo Malvern news and developments
[email protected] [phone]
International editor Lesley Bolton Focus
[email protected] [phone]
12 Interview: Paddy
Asia editor Colette Steckel Doyle FCCA The CEO
[email protected] [phone] of Clinch on making
Digital editor Jamie Ambler recruitment simpler
Video production manager Jon Gilmore
16 Process to peace
Sub-editors Annabella Gabb, Peter Kernan, Jenny Mill, European funding is
Donatella Montrone, Vivienne Riddoch
supporting initiatives in
Digital sub-editors Rhian Stephens, Eleni Perry Northern Ireland
Design manager Jackie Dollar
Comment
[email protected] [phone]
20 Jane Fuller Accounting
Designers Bob Cree, Suhanna Khan, Robert Mills
for goodwill remains mired
Production manager Anthony Kay in controversy
[email protected]
Advertising Richard McEvoy 21 Alexandra Chin
[email protected] [phone] Join Council and help
Head of ACCA Media Chris Quick shape the organisation,
[email protected] [phone] says ACCA’s president
Printing Wyndeham Group Pictures Getty
22 Ian Guider Delays
ACCA
in choosing a new
President Alexandra Chin FCCA
Deputy president Brian McEnery FCCA government will have
Vice president Leo Lee FCCA economic repercussions
Chief executive Helen Brand OBE
ACCA Connect Practice
Tel [phone]
Fax [phone] The view from
[email protected] Fiona MacNamara of
[email protected]
PKF O’Connor, Leddy &
ACCA Ireland Holmes, plus snapshot of
Chairman Fergus Condon FCCA external audit
Head – ACCA Ireland Liz Hughes
Tel [phone]
Fax [phone] Home remedy
[email protected]
Homeowners may have
another option when
dealing with insolvency
Accounting and Business is published by ACCA 10 times per year. All Corporate
views expressed within the title are those of the contributors. 28 The view from Martin
The Council of ACCA and the publishers do not guarantee the accuracy Carr FCCA of National
of statements by contributors or advertisers, or accept responsibility for
any statement that they may express in this publication. The publication Seaways Freight, plus
of an advertisement does not imply endorsement by ACCA of a product snapshot of aerospace
or service.
and defence
Copyright ACCA 2016 Accounting and Business. No part of this
publication may be reproduced, stored or distributed without the
express written permission of ACCA. 30 Shared strategy The
Accounting and Business is published by Certified Accountant OECD’s new framework
(Publications) Ltd, a subsidiary of the Association of Chartered Certified
Accountants. aims to reduce tax evasion
The Adelphi, 1-11 John Adam Street, Audit period
London, WC2N 6AU, UK July 2014 to 32 Getting tough The US
[phone] June 2015
www.accaglobal.com 165,609 is cracking down on tax
inversion
Accounting and Business 04/2016
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5
Contents
CPD

Get verifiable CPD
units by reading
technical articles
Insight
35 Graphics A look at
PwC’s latest analysis of
tax systems
36 Under pressure
Accountants in the
public sector face more
challenges than ever
38 Rise to the challenge
Implementing BEPS
actions globally will be no
mean feat
40 Strong performance
Top global networks are
doing surprisingly well,
finds an IAB study
43 Cream of the crop A
new ACCA programme
will examine talent
challenges
44 Careers Dr Rob
Yeung on resilience, plus
hotdesking etiquette
46 Cost detective
How to become a
strategic cost manager 56 Tax diary Forthcoming
dates and deadlines
48 Find your gurus
A look at the theories 57 NI tax update
behind insightful Tax developments of
leadership relevance to practitioners
in the North
Technical
49 Mixed bag SME ACCA
financial reporting varies 59 Networking news
across the globe Recent events gave
members a chance to 64 Here for you Chief
52 Technically speaking make new contacts executive Helen Brand on
Group audit exemption, how ACCA is responding
loan loss provisioning, 60 Events Diary dates and to members’ feedback
revised charity SORP and CPD opportunities
credit union audits 66 Update Lord-Lieutenant
62 Get on board Finance of Greater London opens
54 Tax update A professionals are well new global headquarters;
roundup from the Irish placed to become non- new issue of Accountancy
Tax Institute executive directors Futures out now
04/2016 Accounting and Business
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6
News | Pictures
► The winner is…
Shan Christopher
Ogilvie and (right)
Dubliner Benjamin
Cleary at the 88th
Academy Awards after
winning Best Live Action
Short Film for Stutterer
◄ Bus plus
Wrightbus has confirmed
an order worth £62m
to make another 195
Routemasters for
London, securing 300
jobs at the Northern
Irish manufacturer
► Steady rolling
Siobhan Talbot, group
MD at Glanbia, has
announced the sixth
consecutive year of
double-digit growth
at the company, with a
10.6% increase in adjusted
earnings per share
▲ On the fly
Ryanair has announced
the launch of a
corporate jet charter
service in a bid to lure
businesses, offering
a Boeing 737-700 for
corporate/group hire
Accounting and Business 04/2016
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Pictures | News
► Thinking cap
In a sponsorship deal
with KPMG Ireland, Irish
golf star Paul Dunne will
wear a cap displaying
the firm’s logo when
competing in Ireland
and around the world
▼ Treasure hunt ▼ Cheesey grins
Millions have been Two Irish companies,
raised for an expedition Little Milk and Cashel
to salvage $2bn of gold Farmhouse Cheese,
coins from Belfast-built have taken the top
‘Millionaires’ ship’ RMS Coup de Coeur prize at
Republic, which sank France’s premier cheese
off Nantucket in 1909 event Salon du Fromage
04/2016 Accounting and Business
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8 News | Roundup
News roundup
This issue’s stories and infographics from Ireland and Northern Ireland, as well as a look
at the latest developments affecting fi nance professionals around the world
KPMG 4 take retirement Accountant’s TD win FB cuts Irish billing recommends that important
Four KPMG partners in Belfast Accountant Peter Burke was Facebook has agreed to meetings involving ministers
have left the fi rm. They had one of the last candidates change its accounting are recorded and minuted,
been on administrative leave to be declared a TD in practices and allocate that ministers take professional
while an investigation by Ireland’s general election. The revenues and tax liabilities advice in key decisions on
HMRC took place. The four 33-year-old Burke was Fine more closely to the territories the economy, and that robust
are: Jon D’Arcy, chairman of Gael’s candidate in Longford- in which profi ts are earned. systems are set up to ensure
KPMG’s Belfast offi ce; senior Westmeath, where it took fi ve Large customers in the UK nominees to external bodies
tax partner Eamonn Donaghy; days to complete the count. previously billed by Facebook have no confl icts of interest.
Arthur O’Brien, an audit and It is the fi rst time he has been Ireland will now be invoiced
advisory partner; and Paul elected to be a TD, although by Facebook UK. ‘What this All-Ireland NAMA inquiry
Holloway, head of corporate he has been a councillor means in practice is that UK Northern Ireland’s SDLP
fi nance for KPMG Ireland. since 2009 and was twice an sales made directly by our UK has called for an all-Ireland
They were all involved in a unsuccessful Dáil candidate. team will be booked in the UK, inquiry into NAMA’s sale of
property investment project Prior to the election, he not Ireland,’ said the company. the Project Eagle portfolio.
called JEAP. worked at the Stephens Cooke ‘In light of changes to tax law Claire Hanna, SDLP fi nance
A KPMG spokesman said: practice in Mullingar. in the UK, we felt this change spokeswoman and deputy
‘The fi rm has cooperated fully would provide transparency chair of the assembly’s fi nance
with the HMRC investigation, Ireland’s Brexit hit to Facebook’s operations in committee, said: ‘[After]
which relates solely to the A vote by the UK to leave the the UK.’ eight months of unanswered
personal affairs of the four EU in the June referendum questions and limited inquiries
individuals and is not related would lead to the re- Google tax avoidance later we are no further to
to the fi rm’s business or the establishment of border Google processed getting to the bottom of what
business of its clients.’ controls in Ireland, a report by transactions valued at €28.7bn appears to be a dodgy deal.
A new management team the UK’s Cabinet Offi ce has through Ireland as part of an There is now a clear need for
has now been appointed. John concluded. ‘Outside the EU’s international tax avoidance a fully independent inquiry
Hansen becomes partner in customs union, it would be scheme, according to the that compels answers from
charge of the fi rm’s 11 partners necessary to impose customs Irish Times. The paper claims governments north and south
and more than 200 staff in checks on the movement of that company reports fi led of the border and all those
Belfast. John Poole is now goods across the border,’ it in the Netherlands show involved in this deal that led
leader of the Northern Ireland said. ‘Questions would also payments made between to such a shocking loss for
audit practice, while Johnny need to be answered about Google companies in the the taxpayer.’
Hanna has been appointed the common travel area, Netherlands, Ireland and
as leader of the tax practice. which covers the movement Bermuda, including for Cerberus €4.6bn write-off
A new advisory board has of people.’ royalties, which had the effect US fund Cerberus has written
been established for the fi rm’s Fine Gael leader Enda of reducing tax liabilities. A off more than a third of the
activities in the north, which Kenny has also warned that Google spokeswoman said: value of the Irish property
will be chaired by Shaun Kelly, Brexit could put the Northern ‘Google complies with the tax debts it acquired in 2014 and
the global COO of KPMG Ireland peace process at risk. laws in every country where 2015. It bought debts with a
International. And a report from hedge we operate.’ nominal value of €12.5bn, but
KPMG Ireland’s managing fund Tosca warns that Ireland informed the Northern Ireland
partner Shaun Murphy will also could be forced to leave the NAMA interim report Assembly’s fi nance committee
be a member of the advisory EU if the UK goes. The report The Northern Ireland it had written off €4.6bn.
board. He said: ‘Our fi rm is says Ireland might fi nd it better Assembly’s fi nance committee Loans associated with Mick
built on a foundation of trust to leave than suffer a slump in has published an interim Wallace TD – a vocal critic
and integrity and we are fully trade with the UK should the report on the controversy of the Project Eagle process
committed to ensuring that EU impose trade restrictions around the sale of the – have been subject to legal
all of our people do the right on the UK following its Project Eagle portfolio of action by Cerberus, leading to
thing, every time, and that departure. Tosca, which has property loans by NAMA. The one of Wallace’s companies
we continue to provide the nearly £3bn of assets under committee is to continue its being wound up. Similar
highest quality services to our management, is a supporter work after the May Assembly action against other debtors is
clients in Northern Ireland.’ of Brexit. elections. The report expected in the near future.
Accounting and Business 04/2016
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Roundup | News 9
Take one
Overseeing 170 staff at one of Dubai’s most iconic resorts, Conor Lawler ACCA is living his
dream of working in hospitality, as senior vice president, fi nance, at Atlantis The Palm in Dubai
Conor Lawler got a taste for the hospitality
sector as a young boy, helping out in his
parents’ pub in County Carlow, Ireland.
After running a restaurant business in his home
country, Lawler took his career international, working in
Belgrade and Baku before landing his role in Dubai.
Home for now is Atlantis The Palm in Dubai, alongside
3,300 staff, not to mention the dolphins and sea lions.
Find out more about Conor Lawler’s
fi ve-star role in the hospitality sector
at bit.ly/ACCABigInterview
Ulster Bank loan sell-off technology that underpins the year stood at US$310bn, of company is now focused on
Ulster Bank is considering Bitcoin digital currency. which US$58bn came in 2014. its radio businesses. UTV
selling off distressed loans to Ireland receives about the chief executive and former
SMEs and farmers. The total Mistry heads rich list same amount of US investment fi nancial controller John
value of the portfolio could Six Irish entrepreneurs are as Latin America, Central McCann will retire at the
be €6bn. A bank spokesman on the global super-rich America and China combined. AGM in May. Non-executive
said: ‘Ulster Bank is in contact list. Construction business chairman Richard Huntingford
with a number of business owner Pallonji Mistry is the Rise in tax receipts becomes executive chairman
customers, who are outside wealthiest Irish citizen, with a Tax receipts in the fi rst two and will lead the company’s
current arrangements or in US$12.5bn fortune. Lone Star months of this year rose by growth strategy.
arrears and under special Funds owner John Grayken nearly €500m, the Revenue has
management in our problem is second, with US$6.3bn. reported. Some €7.2bn was Honohan tax reform call
debt management unit, to Ireland’s most famous rich raised in January and February The new Irish government
discuss the potential inclusion entrepreneur Denis O’Brien 2016, which is 7.1% more than should review income tax
of their debt in a future Ulster is third in Ireland and 219th in the same period in 2015. policy to assist the country
Bank loan disposal process in the world, with US$5.7bn – Increased tax revenues and in attracting top talent, PwC
together with their options down US$1bn in the last year. stronger expenditure control partner and Irish Tax Institute
for repaying or refi nancing The other three Irish citizens led to a €515m improvement president Mary Honohan told
their debt in advance of any on the list are: John Dorrance, in the exchequer balance the ITI’s annual dinner. ‘We
such process.’ of the Campbell’s Soup family, compared with a year earlier. need more top-class talent
with US$2.7bn; investor to take us to the next level
Data scientists wanted Dermot Desmond, with UTV Media rebrands as an economy,’ she told
PwC is to employ 1,000 more US$1.9bn; and Glen Dimplex UTV Media – one of just four attendees. ‘Recently, a quarter
data scientists globally over founder Martin Naughton, with Northern Ireland companies of Irish HR directors said that
the next two years on top of US$1.6bn. Bill Gates tops the listed on the London Stock attracting leadership skills to
the 500 it already employs in list with US$75bn. Exchange – has changed its Ireland is a challenge, with
its international deals business. name to the Wireless Group. high income taxes being the
PwC said the move is in US invests US$310bn The name change follows the key inhibitor.’ An attractive
response to client demand for Ireland attracted 20% of sale of its television subsidiary personal tax policy, she said,
more data when making M&A US investment fl owing into UTV to ITV. The company ‘is important for foreign direct
and divestment decisions. the EU in 2014, according sold its TV interests following investment. It is mission-critical
PwC recently recruited another to the American Chamber massive losses related to for the economic ecosystem
15 data scientists in Belfast of Commerce. Total US the startup of a Republic of entrepreneurs and the
to work on the blockchain investment at the end of that of Ireland channel and the indigenous sector.’ »
04/2016 Accounting and Business
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10 News | Roundup
Company represents
Ireland best for business ‘the worst scandal since
devolution’, according to the
The 10 least complex countries assembly’s Public Accounts
for businesses Committee. The committee
1. Ireland was told the publicly funded
2. British Virgin Islands company had accumulated a
3. Latvia defi cit of £1.45m, with some
4. Trinidad and Tobago spending being subject to
5. New Zealand a confl ict of interest by the
6. Labuan former chief executive, Janice
7. Hong Kong McAleese. The Department
8. Barbados of Enterprise, Trade and
9. Australia Investment is seeking to
10. Azerbaijan disqualify her from becoming
a director in the future.
The 10 most complex countries
for businesses Moore Stephens NI fined
1. Argentina Moore Stephens in Northern
2. Indonesia Ireland has been fi ned
3. Colombia £200,000, discounted for
4. United Arab Emirates settlement to £140,000, by the
5. China Financial Reporting Council
6. Mexico (FRC) over failures in its audit of
7. Bolivia the Presbyterian Mutual Society
8. Lebanon for year-ends 2007 and 2008.
9. Thailand Audit partner David McClean,
10. Brazil who left the fi rm in 2011, was
fi ned £29,000, discounted for
Ireland is the easiest country in the world to do business in, as ranked by TMF’s Global settlement to £20,000. Both
Benchmark Complexity Index, which assesses regimes against a range of criteria. A pro-business were reprimanded.
attitude, stable political environment and strong legal framework all helped push Ireland to the The FRC found the audit
top, and the country was praised for its new Companies Act, which consolidates all previous failed to adequately test
Companies Acts. New businesses in Ireland no longer have to hold an AGM and the minimum management’s assertions that
number of directors has been cut from two to one. Download the report at bit.ly/TMF-2015. inadequate liquidity levels at
the 2008 year-end would be
remedied, and had insuffi cient
George Redmond dies Dormant £7m tapped fi nancial losses in connection evidence for a going concern
Former Dublin city and county The Northern Ireland with unexpectedly high assumption to be appropriate.
manager George Redmond Community Finance Fund development costs for its new The society went into
has died, aged 92. The Mahon will provide £7.1m to local mid-sized commercial jet. administration in November
Tribunal concluded he had community groups from 2008 after a run on its funds.
received substantial sums in dormant bank accounts. ‘It GT NI expands Moore Stephens said: ‘We
corrupt payments, but the will help to improve access Grant Thornton is creating very much regret that the
fi nding was withdrawn after to fi nance for a range of 33 extra jobs in its Belfast FRC found that our audits
lengthy legal proceedings. He organisations across the practice. Richard Gillan, in these years fell below our
was separately found to have third sector, such as social managing partner at Grant usual high standards. We
demanded corrupt payments enterprises, church and smaller Thornton (NI), said: ‘2015 was a are pleased that the FRC
from a developer in a fi nding community-based groups,’ fantastic year for the fi rm with accepted that our partners
that was not overturned. said Northern Ireland’s fi nance revenues 45% ahead of 2014 and staff were not engaged in
In addition, Redmond was minister Mervyn Storey. levels. That upward trend has behaviour that was dishonest,
convicted of corruption, but continued into 2016, and the deliberate or reckless. Moore
the judgment was quashed Bombardier job losses outlook is very positive. We Stephens strongly agrees
and he was released from More than 1,000 employees expect to treble our revenues with the FRC fi nding that
prison early. ‘I stand by the of Canadian multinational within the next fi ve years.’ the primary responsibility
record that he was one of Bombardier are to lose their for rule compliance lay with
the most corrupt public jobs in Belfast. Some 580 staff NIEC ‘worst scandal’ the management, not the
offi cials in Irish history,’ wrote are expected to lose their An ‘appalling level of auditors.’ ■
Frank McDonald, a former jobs with Bombardier this mismanagement and
environment editor of the year, with the rest going in impropriety’ at the former Compiled by Paul Gosling,
Irish Times. 2017. Bombardier has suffered Northern Ireland Events journalist
Accounting and Business 04/2016
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