1. Repositioning Chartered Accountants for Emerging Business Paradigms Presentation to ICAN Western Zonal Districts’ Conference, Feb 18, 2014

2. The Ideal Accountants of Old Men in suite and ties, with very little if any personalities! Conservative, risk averse Transactional / cost efficiency focus, short on strategic focus Financial gatekeepers & guardian of organization's financial health Reporters of company performance, analysts of performance drivers Men of integrity and accuracy…….. ……..Should we really ask for more? 2

3. Changing Global Economic Landscape Global economic melt down, starting 2007 and slow recovery ─Mortgage crises, stock market crash ─Over-capacity, Unemployment ─uncertainties, political crises / transition Globalization Innovation / Disruptive new business models Demographic shifts – aging population Constant transition / turbulence - the new normal Social Media Emerging economies – New / future market leaders Internet penetration / information ubiquity Governance, Regulation, Oversight Social Responsibility Technology 3

4. Changing Global Economic Landscape – Emerging Paradigms Sustainable economies and corporate responsibility Considerations for broader range of stakeholders Balancing compliance and competitiveness Developing stronger risk management and controls functions Increased emphasis on transparency and accountability Long-term perspectives Ethical leadership in business Frugal innovation 4

5. Changing Global Economic Landscape – Imperatives for Business Assume and plan for volatility Build the radar Pursue technology leadership Prepare for true globalization Develop a curious, experimental and adaptable business model Dynamic / fluid Stakeholder focus Integrated governance, risk management People Management / Talent Optimization Financial & Operating Excellence Effective / Multi-channel Communication 5

6. Changing Global Economic Landscape – Imperatives for the Accountancy profession Strategic and commercial mindset Integrity and Ethical leadership Global orientation Independence & Objectivity Broader stakeholders focus Adaptability (Change, uncertainty, complexity) Learning Culture (Continuous Education) Technology Leadership 6

7. Accountants* Roles redefined – From Ledgers to Leadership Supporting BOD / Snr. Mgt.in making decisions Facilitating understanding of organization performance Asset and liability management Risk management Internal controls Partnering with Board of Directors (BOD) to develop strategies for sustainable value creation Internal / external business performance reporting Organizational leader and communicator Reporters of Value Creators of Value Enablers of Value Preservers of Value * Consultants, CFOs, Finance Controllers, Cost / Mgt Accountants etc. 7

8. Accountants Roles redefined Conformance Performance 8

9. Accountants Roles redefined – Balancing Acts Stewardship Reporting (Report Value created / destroyed) Business Partnership (Create Value) 9

10. Call for Action – IFAC Recommendations For Employers: Closer relationships with Professional Accountancy Organizations (PAOs) ─ Include relationships with other education providers Training / development beyond technical skills Job rotation and placements around various parts of organization Develop strategies that respond to complexity / evolution of accounting principles / practices Leverage accountants’ unique competencies to improve business performance & competitiveness 10

11. Call for Action – IFAC Recommendations For Professional Accountancy Organizations: Engage with employers / business communities to understand their needs Address gaps between expectations and accountants basic skill set Engage more effectively with professional accountants in business Foster commitment to lifelong learning 11

12. Call for Action – Further Suggestions to ICAN Consider accountants re-training in the areas of: Effective organizational leadership – beyond Accounting / Finance Understanding of the external and internal business environment Balancing stewardship (brakes) responsibility with business partnership (accelerator) Effective Finance and Accounting function leadership ─outsourcing & insourcing, other changes Bringing professional qualities to the role and the organization, anchored by ─Ethical Leadership, integrity, objectivity, diligence, confidentiality, professional competence 12

13. Conclusion Lots of changes and uncertainties – Social, Political, economic etc. Accountants role evolving, will continue to evolve Need for adaptive capabilities, built on uncompromising ethics Fantastic opportunities for the future!!! 13