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IE CPD Get verifiable CPD units by AB reading technical articles Accounting and Business The magazine for fi nance professionals IE.A IE 04/2016 B A c c o u n tin g a n d B u s in e s s 0 4 /2 0 1 6 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 IE_Cover.indd 1 17/03/2016 14:17 INT_cover02-Apr16.indd 1 17/03/2016 13:44 3 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 AB Direct Accounting and Business is more Sign up for our weekly news and The leading monthly magazine for than just a magazine. You can read technical bulletin at fi nance professionals, available in us, follow us and engage with us – www.accaglobal.com/ab six different versions: China, Ireland, and in more ways than one. International, Malaysia, Singapore Accountancy Futures and UK. AB hub View our twice-yearly research and See our new AB hub at insights journal at There are different ways to read AB. www.accaglobal.com/ab www.accaglobal.com/futuresjournal Find out more at www.accaglobal.com/ab AB app Student Accountant Download from iTunes App Store, Access the magazine for Google Play or via the AB hub ACCA Qualifi cation and Foundation-level students at About ACCA AB digital archive www.accaglobal.com/ The latest issue and an studentaccountant ACCA is the global body for archive of issues stretching back professional accountants. We aim to to 2009 Member benefits offer business-relevant, fi rst-choice To learn more about the qualifi cations to people of application, Twitter benefits of ACCA membership, ability and ambition around the Accounting and Business tweets visit www.accaglobal.com/ world who seek a rewarding at @ACCA_ABmagazine memberbenefi ts career in accountancy, fi nance and management. We support our 178,000 Videos and podcasts ACCA Careers members and 455,000 students Look for links in the magazine or Search thousands of vacancies and throughout their careers, providing go to www.accaglobal.com/ab sign up for customised job alerts at services through a network of 95 our jobs site www.accacareers.com/ offi ces and active centres. Webinars ireland www.accaglobal.com On a raft of topical issues 04/2016 Accounting and Business IE_welcome.indd 3 16/03/2016 11:23 44 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] +44 (0)20 7059 5818 International editor Lesley Bolton Focus [email protected] +44 (0)20 7059 5965 12 Interview: Paddy Asia editor Colette Steckel Doyle FCCA The CEO [email protected] +44 (0)20 7059 5896 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] +44 (0)20 7059 5620 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] +44 (0)20 7902 1221 Join Council and help Head of ACCA Media Chris Quick shape the organisation, [email protected] +44 (0)20 7059 5966 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 +44 (0)141 582 2000 Fax +44 (0)141 582 2222 24 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 +353 (0)1 447 5678 Fax +353 (0)1 496 3615 26 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 +44 (0) 20 7059 5000 June 2015 www.accaglobal.com 165,609 is cracking down on tax inversion Accounting and Business 04/2016 IE_contents.indd 4 16/03/2016 17:07 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 IE_contents.indd 5 16/03/2016 17:08 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 IE_Newsinpix.indd 6 17/03/2016 14:22 7 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 IE_Newsinpix.indd 7 17/03/2016 14:22 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 IE_B_newsroundup.indd 8 16/03/2016 11:23 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 IE_B_newsroundup.indd 9 16/03/2016 11:24 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 IE_B_newsroundup.indd 10 16/03/2016 11:24

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elected by the ACCA membership, who contribute their knowledge and skills, and work with the executive team to devise. ACCA's strategy and oversee its delivery. On page 21 ACCA president Alexandra Chin explains the importance of Council to the governance of ACCA and invites members to put
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Most books are stored in the elastic cloud where traffic is expensive. For this reason, we have a limit on daily download.