REPORT OF THE CHAIRMAN 2013 Annual Worldwide Meeting The Shelbourne Hotel Dublin, Ireland October 19-22, 2013

WELCOME!

MY TEAM

WORLDWIDE BOARD EFFECTIVE JULY 1, VOTING MEMBERS 2 NON VOTING MEMBERS ASSISTED BY WW EXECUTIVE DIRECTOR REGIONAL EXECUTIVE DIRECTORS IN ATTENDANCE

Angelo Colombo, Chairman Milan, Italy Howard Rosen, Vice Chairman/Treasurer St. Louis, Missouri, USA Nilar Chan Hong Kong, China Lourens Oosthuizen Cape Town, South Africa Tim Partridge Bunbury, Australia Manuel Rangel, Jr. Mexico City, Mexico Jason Tonjes Omaha, Nebraska, USA Peter Walter Düsseldorf, Germany Danielle Winkle Chicago, Illinois, USA Shimon Yarel Tel Aviv, Israel Ray Nisivoccia (Non-Voting Member) Mt. Arlington, New Jersey, USA Bob Rothenberg (Non-Voting Member) London, United Kingdom

BOARD MEMBERS TASKS Peter WalterTax Tim PartridgeStandards Shimon YarelMarketing Danielle WinkleRecruitment Manuel Rangel Governance Bob RothenbergAccounting landscape

SPECIAL THANKS TO: Peter ChongKuala Lumpur Don TimminsOttawa Stephen RogerSydney

WORLDWIDE EXECUTIVE DIRECTOR Maureen Schwartz New York, USA Team of 4 assistants

INTERNATIONAL COMMITTEE CHAIRS TAX Lien LeHouston, Texas, USA STANDARDS Jason Croston Brisbane, Australia

STATISTICS

2012 IAB WORLD SURVEY

MEMBERSHIP INDEPENDENCY EXCLUSIVITY FULL MEMBERSHIP

CURRENT MEMBERSHIP 152 FIRMS IN 80 COUNTRIES

MEMBERSHIP Member in good standing/proactive Professionally qualified (standards) “Trustworthy” Culture for International business

RECRUITMENT

Guidelines about recruitment New standards about applicant firms Special requirements for candidate firms in major cities (financial centers) of the world Intensified recruitment in China and India, with priority to China

NEW MEMBERS SINCE LAST MEETING Americas 0 Asia/Pacific 3 Europe, Middle East & Africa 3 TOTAL 6

NEW MEMBERS Abou Nasr and Associates (Erbil, Iraq) ACE - AUDITANGOL CONSULTING ENTERPRISE, LDA. (Luanda, Angola) Advantage Advisors (Melbourne, Australia) GESEM Consultores (Alicante, Spain) Jinghua CPAs Company Limited (Beijing, China) Shanghai JaHwa CPAs (Shanghai, China)

CURRENT MEMBERSHIP Americas65 Asia/Pacific24 Europe, Middle East & Africa63 TOTAL 152

MEMBER SERVICES

Increase Business Opportunities Among Members (Ongoing) ‒ Technical and sub-regional conferences held throughout the year ‒ Breakout groups during Worldwide and Regional Meetings ‒ Continual improvements to website to identify expertise and facilitate communication ‒ International tax database and country matrix ‒ Improved methodology to track referrals ‒ “Doing Business” brochure series for 45 countries – be sure YOURS is updated!

MEMBER SERVICES Directory Application

MEMBER SERVICES Member Marketing and Promotion - Funding for Client Business Panels and Receptions at regional and worldwide meetings (as in New York/Chicago) - Funding to regions to increase branding and name recognition - Firm Profiles in each BKR Worldwide Bulletin - Greater visibility at industry conferences - BKR Scholarship Award Program

Tracy Warner from the University of Illinois at Chicago accepts BKR’s Scholarship Award from Angelo Colombo, Danielle Winkle (Chicago), and BKR Executive Director Maureen Schwartz (New York).

NEW SYSTEM FOR REFERRAL COLLECTION The Executive Office is now collecting referrals on a quarterly basis. Results reported are as follows (amounts in dollars):

NEW WORLDWIDE EXECUTIVE OFFICE View of New Freedom TowerBKR Reception

FINANCES WW and all regions closed their accounts for FYE 2013 with positive results. Board is reviewing the possibility of reducing dues for firms in developing countries (effective FY 2015).

FUTURE WORLDWIDE MEETINGS 2014 San Francisco, California: October Paris, France: October TBD

A WORLD OF THANKS TO: The Worldwide Board Regional and Committee Chairs The Executive Office and Regional Staff

REMINDER