Global Update Kevin Arnold Executive Director

Introduction

Global Update To provide a brief update on issues and events since November 2009.

Scope Membership Development. Scale of our Network Member Involvement-Conferences and Committees. Decisions & Developments

Scope Membership Development.

Membership Terminations: 2010 Urbano Ventocilla (Peru) Shanghai Fuxing Mingfang (China) VSI-KO (Bulgaria) ROSCO Corporation (Russia) K.A.C. (Ukraine) Bodden Anglin (Cayman Islands)

Membership Gains & Losses: 2010 Gains Euroaudit (Azerbaijan) GTM Group (U.S.A.) Losses SCI Kakofegitis & Co. (Cyprus) Ord Nexia (Australia) Nexia Croatia

Potential Members Botswana Uganda Georgia Nicaragua New Zealand

Scope Scale of our Network.

Organisational & Financial Growth Fee Income: US$2.08bn - 0.5% 580 Offices -1.7% 2,280 Partners+1.7% 20,000+ Total Staff -3%

Financial Performance:

Regional Composition: 2010

Financial Statements: 31 October 2009 Net assets £650k (+30%) Current assets £856k (+7%) Liabilities and provisions £218k (-30%) Total revenue £1.609m(+29%) Expenditure £1.467m (+45%) Net surplus £148k vs. budgeted deficit of £112k

SO WHAT?

We now have over 580 offices world wide. We have over 20,000 staff. We are financially sound and well set up to develop. Nexia International remains a ‘Top 10’ international network.

Scope Member Involvement-Conferences.

Annual Conference: Prague Biggest conference attendance in Nexia’s history with:  220 Delegates  100 accompanying guests  67 countries represented

Annual Conference: Prague

ANZ Regional Conference – April 2010 ‘Sharing Success’ Outside facilitators. Record Attendance- full participation. Best Practice?

European Meeting - Amsterdam 100 Delegates 90% attendance despite the ash cloud closing main airports! European Tax Group Meetings in Milan, Malta & Gothenburg

Asia Pacific Regional Meeting, Mauritius Working Committees formed Asia Pacific Newsletter launched

International Tax Conference: New York  100 delegates  25 accompanying guests  30 countries represented

North and Central America Regional Meeting 65 Delegates Held at the American Institute of CPA’s in New York

South American Regional Conference Ecuador 16 Countries represented 34 Delegates

2010 Training Initiatives Young Leaders Programme: Europe + Asia Pacific Young Managers Programme: Europe Audit Training China Audit Training MEA

Asia Pacific Young Leaders Conference, Mauritius

Young Managers & Leaders Barcelona, September delegates 22 in Managers, 13 in Leaders Combined for first time and run concurrently with combined social events Made local press!

Nexia China Audit Conference Nexia Audit Approach -International Auditing Standards 30 participants from: Beijing Zhonglei Beijing Yongtuo Shanghai Hongda Dongya Nexia TS (Shanghai) Guangzhou Xinzhongnan

Middle East and Africa Regional Audit Methodology Training 50 delegates Held in Beirut, Lebanon Delegates from 13 countries

2010 Conference Programme: Regional Conferences Europe: 7-8 April (Budapest, Hungary) North & Central America: 4-6 May (Los Cabos, Mexico) Middle East & Africa 7-8 May (Tunis, Tunisia): TBC Asia Pacific: May (Bali, Indonesia) ANZ: 7-9 July (Christchurch, New Zealand) South America: July (la Paz, Bolivia)

Knowledge Sharing Programmes Asia Pacific Young Leaders Programme: May (Bali, Indonesia) International Tax Conference: 1-4 June (Istanbul, Turkey) European Young Managers and Leaders Programme :13-16 August (Barcelona, Spain

2010 Conference Schedule Annual Conference: Dubai, November

2012 Conference Schedule ALL conferences to be coordinated and published by May 2011.

Scope Decisions and Developments

Board activity: major issues 2010 Completed Strategic Plan Re-organisation of Nexia Structure Development of revised Membership Agreements

Board activity: major issues 2010 In progress Amalgamation of Europe and MEA regions Comprehensive international trademark registration Nexia Operating Procedures  Criteria for Membership  Member Non-Compliance  Nexia Contact Partners  Umbrella group reports.

Amalgamation of Europe + Middle East & Africa regions  Consistent with international structure of peer organisations, networks & associations  Enables Nexia to strengthen resources/capacity of Middle East & Africa firms through access to European resources on quality/training & education and marketing  Continue to maintain regional identity of Europe/Middle East/African groups within larger structure  No fee increase planned.  Board approval in principle.  Decision to be taken at November Council meeting

Main Responsibilities of Contact Partner Main point of contact for referrals. Acknowledge all communications from member firms promptly, but within at least 48 hours. Ensure all administrative requirements of the Association are met, especially: –Profiles. –Requests for information. Make arrangements when out of office. A vital link that underpins membership.

Secretariat Activity: 2010 Introduction of 2010 IFRS Guide & IFRS webcasts (Audit Committee) Launch of Corporate Brochure (Marketing Committee) Production of 2011 International Tax Handbook (Tax Committee) Development of Nexia Directory mobile phone application (Marketing Committee)

Developments- Asia Pacific Done

Developments- Europe Done

Developments- Middle East & Africa Done

Developments- North & Central America Done

Developments- South America Done

Comments or Questions?