#3NEWS AND VIEWSFROM PRAXITY PARTICIPANTSACROSS THE WORLD

HUB

2016Ready for the future?How technology is changing accountingFaster, better, richerPraxity launches feature-packed web zone

Cybercrime How to protect your firm

2 HUB 2016 ISSUE #3 HUB 3

Message from the Chair

Was Brexit a revolt?For me, like most people, the Brexit result came as a huge shock. Especially given that the pundits predicted overwhelmingly that the UK population would vote to remain in the EU. It has naturally led to great uncertainty for clients in every sector we serve and destabilised the markets.

I think the ‘elephant in the room’ is that people were voting for change rather than Brexit. People who were feeling deprived of opportunity were challenging the status quo. I’m sure voters believed that they were regaining some control of their country and decisions. However, what the Brexit result illustrates more than anything is the lack of confidence people have in our global financial and political systems. It’s making the establishments sit up and take notice, right across Europe. It reveals the existence of a seething mood of discontent in society in general, not only in the UK, but also internationally. It also shows to what extent the political class was out of touch with the feelings of ordinary people.

Now, the hard work starts. These are unchartered waters. Right now it is impossible to assess the full impact and we are a long way off knowing what the future landscape will look like. But what Praxity participant firms can do is help both the private and the public sector to assess the risks and evolve from the existing to the new with as few bumps as possible. Right now, any information is valuable. So, please do share the insightful feature written by UK Head of Tax at Mazars, Tim Davies, covering the ‘tax implications of Brexit’ (pages 20/21). This is an updated version of the original article circulated days after the referendum.

WELCOMECONTENTS

Contents

3 Message from the Chair

4 - 5 Faster, better, richer: the new web zone

6 - 7 News from Participants

8 - 9 Meet Plante Moran’s accounting cyber-warrior

10 -11 Expansion

12 - 13 Technology is bringing the future closer, but how will the industry react?

Big Data: the next disruptive trendContrary to popular belief, finance professionals are not averse to change. In fact, we tend to welcome it.

Big data is going to be one of those shifts. It’s being peddled as the next industrial revolution and without doubt it will change how we work. Interestingly, the audit profession appears to be more advanced than our regulators. Before, auditors would take a sample of data, and based on the results of the sample, come to a conclusion on the entire population of data. Now, thanks to technology, we can examine the whole picture in a very short space of time before drawing conclusions. This will no doubt have a significant impact on how we work.

Much of our Global Conference in Gleneagles will dig deeper into the Big Data agenda. Embracing it will enable us to create new service delivery models. We can use it to address inefficient processes within our own business practices, as well as giving our clients greater efficiency and more timely and reliable financial information. Read more about the Big Data topic in the centre pages.

Champions of changeThe fact that our industry is evolving is a welcome message to future generations of recruits. Those about to embark on their career journey are joining firms where there are no barriers to progression, evidenced in this edition of HUB which once again showcases numerous examples of expansion and changes in senior leadership.

It is an exciting time for personal growth. Globally, the rise of women in leadership roles has never been stronger. US firm Plante Moran has, for the sixth consecutive year, been named Best Accounting Firm for Women (see page 16). With political figures like Theresa May,

Nicola Sturgeon, Angela Merkel and Hillary Clinton, all of this is providing inspiration to our firm’s future leaders, and promoting the message of equality. All this is good for recruitment.

It’s also positive to see Praxity Participant firms continuing to make very strategic choices, and acquiring other businesses and firms that add client value. Acquiring Corality Financial Group, for example, will enable Mazars to increase its footprint in infrastructure finance and to partner with clients in any jurisdiction from Asia-Pacific to EMEA to the Americas (see pages 10 and 11). In addition, Moss Adams, ShineWing, DHG, and MNP have all announced expansion plans.

Whether its adding 40 or 4,000 new people to a firm, all of these acquisitions help to strengthen the Praxity Alliance, adding an array of new services and augmenting the expertise that Participants can draw upon. As technology continues to automate traditional core accountancy services, having access to more specialist services will help ensure our profession remains sustainable in the future.

I look forward to meeting with many of you at Gleneagles and discussing and hearing your thoughts.Until then, best regards

Hilton Saven

Share morestories in 2017...To all of the following people who sent and reviewed articles, sourced quotes, captions and images for this edition of HUB, thank you. We couldn’t have done it without your kind assistance:

Steve Amigone, Professor Jamie Anderson, Justin Bow, Francesca Breeze, Jane Carmichael, Anton Colella, Ryan Coley, Steve Crewe, Tim Davies, Hannah Dawson, Gillian Docherty, Stuart Eaglestone, Jeremy Elwood, Andrew Fitzmaurice, Graeme Gordon, Alice Grey Harrison, Jennie Guice, Lorraine Hackett, Ros Hatton, Mark Hu, Faye Hughes, Helen Jennings, James Kallman, Julia Khramtsova, Ian Lavis, Gilly Lord, Teresa McAlpine, Jennifer McKay, Randy Mowat, Charles Olney, Nora Olteanu, Deborah Poulter, Jennie Rajdl, Lisa Cawley Ruiz, Hilton Saven, Lauren Schia, Daniel Susskind, Jason Tuffs, Sarah Wedemeyer, Jessica Wheaton.

Editorial deadline for the next magazine is 6th January 2017. Email hubmagazine@praxity.com. If your story can’t wait, send details anyway, as we publish news, case studies and examples of collaborations, in other resources, including our monthly circular In The Loop.

For more information, contact:Græme GordonExecutive DirectorT: +44 (0)1372 738 190E: ggordon@praxity.com @GRG_Praxity

Executive officePraxity – Global Alliance Ltd.Suite 2, Beechwood57 Church StreetEpsomSurrey KT17 4PXUnited Kingdom

T: +44 (0) 1372 738 190F: +44 (0) 1372 738 199E: executiveoffice@praxity.com @PraxityAlliance

Registered in England and Wales Company Number 7873027

www.praxity.com

Registered officePraxity AISBLBellevue 5/bB – 9050 GentBelgium

Registration in England and Wales FCO27606Registered in Belgium 6/CH/15.437/S

Praxity is a global alliance of independent firms. Praxity is organised as an international non-profit entity under Belgium law (a so-called IVZW or AISBL), with its registered office in Gent (Belgium), Bellevue 5/ b 1001. Praxity does not practice the profession of public accountancy or provide audit, tax, consulting or other professional services of any type to third parties. The alliance does not constitute a joint venture, partnership or network between participating firms. The firms that participate in the alliance are independent separate legal entities, and Praxity does not guarantee the services or the quality of services provided by participating firms. Praxity does not deliver services in its own name or at all. Services are delivered by the member firms. Praxity and its member firms are not agents of, and do not obligate, one another and are not liable for one another’s acts or omissions.

Copyright © 2016 Praxity - Global Alliance Ltd.All rights reserved.

14 - 15 Highlights of the Global Conference 2016

16 - 17 Awards

18 Five minutes with... Jason Tuffs

19 News from Participants

20 - 21 Brexit: the tax implications

22 - 23 Gallery

4 HUB 2016 ISSUE #3 HUB 5

Your destination: engaging front-end external resources helping

you ad

dress global trends and meet client needs.

360° view in 3 clicksPraxity has launched a new, easy to navigate online Resource Hub, providing fast access to a vast library of insightful media content.

The new web zone provides a stripped-back customer journey with fewer tabs and an option to click through to ‘members only’ conference pages. It features a single navigation bar, logical sections, and clear link text and anchors, enabling visitors to reach their destination in just 3 clicks.

Simply go to www.praxity.com and click on the Resource Hub Icon.

Talking Head videosClear explanations of how Praxity makes a difference to global clients, featuring some of the Alliance’s strongest advocates.

Praxity’s HUB magazine Current and back-copies now available for participants, clients, prospects and third parties to read and download.

‘Be our guest’ showcaseIncreasing the visibility of firms and specific activities that may appeal to international clients, launching with a podcast from US Participant firm DHG.

Global secondment notice boardHosted within the secure ‘members only’ extranet. Advertising upcoming secondments and enabling individuals to promote availability and skills to firms globally. Linking to MySite profiles (see HUB #2 2016 for details).

Active newsUpdated weekly, with comments on topical industry trends, stories from firms etc. Scroll down or filter by topic/category.

To share resources for publishing on the website, please email website@praxity.com. User login and password to access the private area of the extranet remain the same. To set up a new user profile, please email website@praxity.com

Imagery

Social media

Guest spots SEO

Members only

Interactive webinars/podcasts

Fresh news

HUB magazine

Industry whitepapersFiltered content

Expert commentaries

Videos

FEATURE

6 HUB 2016 ISSUE #3 HUB 7

NEWS FROM PARTICIPANTS

Today, this multi-award winning initiative, co-organised by the Singapore Committee for UN Women and MasterCard, is one of the most high profile CSR programs in the Asia Pacific region and supports young entrepreneurs making a difference for women and girls. Once again, Mazars gave the campaign its full backing, this year teaming up with MasterCard to put forward a US$10,000 grant for projects promoting financial inclusion, in addition to MasterCard's US$25,000 grant. In 2015, Mazars gave 131 hours of pro-bono financial due diligence to the social enterprises that competed. The final submission deadline was 1 July 2016. Twenty shortlisted ideas will be selected to progress to the crowdfunding phase in October, where they may secure additional funds. Eligible projects include programs, products, and services that promote safety and security for women and girls in Asia Pacific. Ten finalists will receive an all-expenses paid trip to Singapore to attend the Project Inspire Grand Final Week in November.

For more information, please visit www.projinspire.com/2016-about-us

Rouse Partners is celebrating their Partner, Bindi Palmer, winning at the prestigious British Indian Awards for Services to Accounting 2016.The British Indian Awards, presented by BDO, recognise and reward individuals who have made contributions across various aspects of society, including business, accounting, law, media and education. Now in their fourth year, public voting and a panel of judges decide the awards. Bindi faced competition in her category from six other finalists, three of whom were from ‘Big 4’ accounting firms. Recognising her contribution to the accounting sector, the judges commented that Bindi’s passion for international business, combined with client support offered through periods of significant regulatory change, gave her the edge in this category. In particular, they noted the need for such international skills and acumen in today’s business environment. Bindi says: “Being recognised in the British Indian Awards is a great honour. We live in an internationally connected world and clients often need access to advice and support. I would like to thank my team and fellow Partners for supporting me, as this accolade is testament to the hard work and determination of the entire team at Rouse Partners.”

Kyiv Audit Group’s 20 successful years & countingOne of only a handful of audit firms in Ukraine, Kyiv Audit Group celebrated a big milestone in May — its 20th anniversary. Since its inception in 1996, the firm has built a robust reputation for providing honest and efficient counsel to numerous domestic and international entities.To mark the occasion, Managing Partner Irina Igumnova issued a heartfelt message to clients and Praxity Participants, thanking them for their loyalty. “Many of our clients have been with us since our inception, so it was important that we honoured their trust and celebrated this anniversary together.” Kyiv Audit Group is a gold ‘АССА Accredited Employer’ for trainee development and also holds a quality control compliance certificate issued by the Auditor’s Chamber of Ukraine. For several consecutive years the firm has been awarded the titles of Industry Leader and Entity of the Year.

For more information, please visit www.kagaudit.com

Get Executive Series on catch-upThis May and June, Plante Moran hosted its first ever Executive Series. It proved to be a popular forum for leaders to engage in hot topics of conversation.“One dilemma that many leaders face is how to maintain growth in today’s business climate while preparing for future uncertainty. History does repeat itself, and we all want to avoid the pain endured in the recession of 2008,” explained Managing Partner Gordon Krater.The Executive Series was launched to help executives plan for today and down the road. Each webcast lasted 20–30 minutes, covering the following topics:• Effective strategies for customer growth• Cutting through the data analytics hype• Selling your business: timing is everything• How to deploy a flexible approach to real estate• Strategy & contingency planning: is your company prepared to take

advantage of the next economic downturn?Moderated by Gordon, each session featured two Plante Moran experts sharing their insights and recommendations based on decades of experience serving commercial organizations. Nearly 300 viewers tuned into the live webinars. Although the first series has now drawn to an end, it is possible to catch the recording on-demand for the next few months.

To register, visit www.on24.com/events

DHG announces leadership changesOn the heels of the announcement of a strategic leadership succession plan, Dixon Hughes Goodman (DHG) recently unveiled changes in the company’s upper management structure.

Kent Satterfield is now the chairman of DHG’s Executive Committee, while Mike Crawford is Chief Operating Officer and Tricia Wilson is Regional

Mazars helps empower women

PM+M has launched a new networking concept. On 5th July, a debut bike ride around the Ribble Valley brought together six professionals from the accounting, legal, wealth management, banking and telecoms industry, with guests debating everything from economics to cycling fashion during the 27-mile tour. Organised by keen cyclists Neil Welsh and Tony Brierley, from PM+M Wealth Management, the responsible riders buddied up and rotated partners regularly ensuring everyone had the opportunity to talk to each other.Naturally, Brexit was a hot topic of conversation, although the riders veered off onto other subjects, including mergers and acquisitions, employment law, the bike retail industry, currency volatility, investments and portfolio building and advances in telecommunications technology.“The ride was a resounding success, with each rider making and building upon their professional connections,” says Tony Brierley. “We are looking to repeat the exercise on a monthly basis and extend invitations to other local organisations.”

For the full story, please visit www.pmm.co.uk

Tour de PM+M Partner wins at

For more information, visit www.rousepartners.co.uk

Launched in 2011, to mark the 100th anniversary of International Women’s Day, Project Inspire presents 18-35 year olds with a five-minute platform to pitch their idea, for the chance to win a US$25,000 grant.

Managing Partner of the Carolinas Region. Previous chairman, Ken Hughes, retired in May.Commenting on the honor of being appointed the firm’s new Chairman, Kent, who has been at DHG for 33 years, said: “My predecessors have shaped our mission and values and helped guide us to where we are today. I congratulate Mike and Tricia on their new roles, and I look forward to working alongside them, our leadership team, and our partners as we continue to build valuable careers

with our people and help our clients achieve their goals.”Matt Snow, DHG’s CEO, said: “DHG has successfully built a pipeline of leaders to anticipate future needs within the firm and continuously work to develop the next generation of leaders. Each of these partners has demonstrated success in all aspects of leadership and I am excited for them to take on these well-deserved roles.”

Change is good at Albert Goodman Spring 2016 has been busy for South West of England firm Albert Goodman. Following the appointment of Richard Bugler as its new Managing Partner, Albert Goodman also announced its expansion of the senior team, recruiting a new Operations Director, Technical and Training Director, and Head of Human Resources, plus two office expansions.On 1 May 2016, Richard Bugler stepped into the role of Albert Goodman’s new Managing Partner, taking over from David Griffin who has managed the firm for 28 years. Richard, who joined Albert Goodman in 1994, was made Partner just before the new millennium. Richard has a strong background in family businesses across a myriad of sectors, including construction, property, engineering, manufacturing, wholesale and distribution. His specialisms include advising clients regarding growth, maturity, and sale or succession planning. David is remaining at the firm in a consultative role and is continuing to work on his existing client base and on special projects. Richard comments: “I am delighted to be made Managing Partner at Albert Goodman and would like to thank David for his commitment and dedication. His management of Albert Goodman over the last 28 years has placed the firm in a very solid and respected position. We’re well-established, well-known and well-structured, and we are proud to have a great team of highly knowledgeable staff, all of which contributes to our consistently high-quality service delivery. I look forward to further developing the range of services the firm offers and increasing our growth across the region.”Filling the new senior team roles are: Christine Scott MBA, Operations Director; Technical and Training Director, Sophie Parkhouse, who returns to the firm having qualified as an accountant with Albert Goodman in 2005, and Head of HR, Simon Irvin (CIPD fellow).In addition, Albert Goodman has opened a larger office in Weston-super-Mare and leased a bigger site in Bridgwater to accommodate the growing team following last year’s merger with TP Lewis & Partners.

For more information, please visit www.albertgoodman.co.uk

For the full story, please visit www.dhgllp.com

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8 HUB 2016 ISSUE #3 HUB 9

FEATURE

Cybercrimes are on the rise, with companies and governments at increasing risk of an attack on their technology infrastructure. It appears that no one is immune. A recent global survey indicates that the number of attacks reported by mid-sized companies leapt 64% in 2014. Given our reliance on data, servers, computers and the internet, accounting professionals need to be at the forefront of cybersecurity.

Plante Moran recently appointed Phillip Long to be a leader within its cybersecurity practice. With more than 30 years’ experience in information systems security and information technology auditing, Phillip’s expertise includes IT strategic planning, enterprise risk assessment, IT change management and disaster recovery management. He’s served clients in a wide variety of industries including healthcare, e-commerce, computer software, manufacturing and distribution, banking, government and retail. HUB tracked down Phillip to better understand the emerging risks and how Praxity Participant firms can assist clients to uncover the blind spots and mitigate a breach in security. What do cyber criminals target and who are these people? Cyber criminals are indiscriminate, and the world is their oyster. They often seek out people with the following profiles:• Careless and don’t practice safe

computing• Don’t use effective password

controls• Not vigilant and don’t heed

security warnings• Love web-surfing and clicking

through links• Fall easily for spam mail and get-

rich-quick-schemes• Use unsecured and free wireless

access points• Don’t back up their data and

systems.Some cyber criminals conduct focused attacks such as phishing attacks on high-wealth individuals, senior executives of companies, consumers of popular products and services, etc.Which sectors tend to be the most vulnerable?Healthcare, financial institutions and retail industry sectors are the most susceptible to cyber crimes and cyber attacks, as their data has the most value. Identity theft of protected health information (PHI), personal identifiable information (PII), bank account information and payment card information (PCI) are often exploited to steal monies and conduct medical insurance fraud, insurance fraud, credit card fraud, and wire fraud.Are they really interested in small or medium enterprises?Cyber criminals do not discriminate enterprises based on size of the enterprise. All enterprises are vulnerable to cyber attacks. Cyber criminals are constantly conducting surveillance, probes, and attacks against companies to find vulnerabilities in their networks and IT infrastructure and exploit

these vulnerabilities to gain access to information, embed malware, or launch various types of intrusion and phishing attacks. How does malicious coding get embedded into the company hardware?Malicious code may be introduced into a company’s hardware in a variety of ways. One is through gaining privileged system access such as system administrator rights, which allows the perpetrator to make virtually all types of changes to the hardware including its operating system, system processes, program code, system storage, and much more. Another common method is to exploit vulnerabilities in software that resides on the hardware. Malicious code may be introduced directly into software computing or system processes.Has the cloud and growth in connected devices made the cybersecurity situation more complex?The increased growth in cloud services and the inter-connectedness of devices and systems that exchange information certainly made cybersecurity management more challenging. It’s more complex because of the sheer volume of information and data traffic that flow between various end-points,

Meet Plante Moran’s accounting cyber-warrior

FEATURE

Uncoupling of human rights practitioners & policymakersIn 2012, Praxity Participant firm Moores Rowland Indonesia (MRI) won the inaugural International Accounting Bulletin’s ‘Audit Innovation of the Year’ award for its Human Rights Audit practice. Four years on, the firm’s President Director James Kallman, one of FIHRRST’s founders, argues that while the relationship between practitioners and policymakers has been fundamental to the human rights movement, accredited firms should distance themselves from the politics on how and in which context standards should be applied.

For more information, please connect with Phillip Long at phillip.long@plantemoran.com

The indicators developed by MRI measured compliance with the United Nations Guiding Principles on Business and Human Rights (UNGP). These were applied in an audit or assurance type methodology to ascertain how well companies consider human rights aspects in their business dealings with suppliers, workers, customers and society in general. However, human rights cover so much more than that. Bahtiar Manurung, head of MRI’s human rights audit practice, points out the need to separate the commercial activities of assurance and certification undertaken by MRI and sister company AJA Sertifikasi Indonesia from the more academic areas of research, promotion of ideals, and development of certification standards.To oversee the research and associated functions, in 2014 the Association For International Human

Rights Reporting Standards (FIHRRST AISBL) was established under Belgian law. The choice of Brussels was deliberate, for it is the centre of European Union governance, and human rights in their many forms have a highly political flavour. So too was the choice of FIHRRST’s founding members, who comprise longstanding human rights visionaries and advocates. Although established in Brussels, the initial bulk of work has centred on Indonesia under the licensed subsidiary organisation — the Foundation for International Human Rights Reporting Standards. This has included working with national and local governmental and societal organisations.Last December saw a significant

accomplishment for the foundation, which assisted the Ministry of Marine Affairs and Fisheries to swiftly respond to the 2015 Benjina modern slavery case. A ministerial regulation was signed on 10 December 2015 requiring fisheries to implement a certification system that ensures human rights are respected in their operations. Numerous organisations were involved, including FIHRRST. Another milestone accomplished by FIHRRST, has resulted in Bandung becoming the first accountable human rights city in Indonesia. The charter, developed in collaboration with Padjajaran University, is a new approach and meets all the aspirations of the city’s stakeholders. The Bandung declaration, signed by the Mayor in December 2015, opens up a new chapter in transparency and accountability. The city will be regularly

monitored against Government’s Human Rights International Standard for Certification (GHRISC) standard principles developed by FIHRRST to assess the provisions of the Charter, ensuring it’s more than just a piece of paper. Audits of 149 kelurahan (sub-districts) and 30 districts of Bandung will take place over the next two years.The Bandung concept has attracted interest from Europe and the United States. FIHRRST is currently weighing up the feasibility of establishing an online presence to guide other global cities through the procedures, whereby only the final certification would need the presence of FIHRRST’s accredited assessors.Given the extensive reach, recognising one’s limitations will be fundamental to advancing the human rights cause.

For Praxity Participant firms MRI and AJA, and similarly accredited assurance firms, this means maintaining impartiality, which will now require us to uncouple ourselves from political policymaking. In human rights, there are practitioners and policymakers. We have reached a point where each needs to be clear on the role they are playing.

and the number of users and information access points has also grown significantly. Furthermore, the constantly changing technology and discovery of new and emerging threats require that connected devices be kept current and updated with security patches to avoid compromising the confidentiality, integrity, and availability of the data exchanged between business partners through the internet and cloud services.What role can accountants play in helping clients to protect themselves? To help clients protect themselves in this cyber economy, accountants should play a more proactive role in advising their clients on cyber risks and threats. This means educating them on measures that they can take to enhance their cyber security posture, encouraging them to conduct frequent cyber security assessments and on-going monitoring for suspicious activities and intrusions, and providing value-add cyber security services through their consulting practices or use of third-party specialists and services offered by member firms of Praxity.What simple steps can an organisation take to protect itself?• Adopt two-factor authentication;

if not, use complex passwords or

James Kallman (left) with Mayor Ridwan Kamil (centre) at the signing of the Bandung Charter

passphrases and change them regularly

• Limit the number of privileged user and system administrator accounts, and restrict their use to only limited number of authorized personnel

• Change all default vendor-supplied and embedded hardware and software passwords

• Enforce data encryption and device encryption

• Provide cybersecurity education and training

• Promote cybersecurity awareness and regularly communicate threats and appropriate safeguards

• Create redundancy and back up vital systems and data. Implement the use of real-time backup snapshots/data replication to provide for failover

• Have an operational business continuity plan or emergency operations plan

• Implement event logging, auditing, and monitoring

• Have an incident response and breach escalation plan, ready and in place.

DHG Healthcare moves into vibrant Cleveland marketplace

DHG Healthcare has opened a new office in the Key Tower, the most notable fixture of the Cleveland skyline and right opposite the Global

Center for Health Innovation.

“In alignment with DHG Healthcare’s Center for Industry Transformation (CIT), we have purposefully designed our offices to be at the apex of a dynamic Cleveland healthcare community,” emphasizes Brad Benton, Managing

Partner, DHG Healthcare. “With its world-class health systems and unique infrastructure of medical institutions and universities, the Cleveland area is a vibrant healthcare market where DHG Healthcare has committed to advance

the dialogue around innovation, education and research connecting healthcare visionaries and leadership.”

Ranked as a top ten privately-held healthcare consulting firm by Modern Healthcare, DHG Healthcare’s new presence in the Key Tower builds on the

practice’s investment in the Global Center. It further enables DHG Healthcare’s metro area delivery of creative solutions that help address the most pressing

problems faced by healthcare industry leaders and their teams.“DHG Healthcare represents what the Global Center is all about in attracting

the healthcare industry to Cleveland,” said Fred M. DeGrandis, Managing Director and Chief Administrative Officer of the Global Center.

For the full story, please visit www.dhgllp.com

Albert Primo

10 HUB 2016 ISSUE #3 HUB 11

EXPANSION EXPANSION

Mazars expands in infrastructure financeMazars has acquired Corality Financial Group, a financial modelling, model audit and training business.

The acquisition aims to expand the firm's offering of infrastructure finance services and global reach and was completed in August 2016.Corality was founded in Australia and has offices in London and New York. It supports 1,000 modelling projects and has 4,500 course participants across 57 countries. The firm's global turnover is €8.26m (£6.87m).The deal enables Mazars to offer project financial advisory and transaction services, project valuation, financial modelling and training services. It extends the firm’s expertise across energy, economic and social infrastructure, PPP and natural resources.International board member and Mazars UK senior partner Phil Verity, comments: “This acquisition is a significant strategic move for Mazars that will enable us to increase our footprint in infrastructure finance and to partner with clients in any jurisdiction from Asia-Pacific to EMEA to the Americas.”

For the full story, please visit www.mazars.com

ShineWing expands into EgyptShineWing has expanded its global presence through the addition of a new member firm, ShineWing Ayman Fathy Kamel. The signing took place on 30 May 2016 in Cairo, Egypt.

Ayman Fathy Kamel, headquartered in Talaat Harb Square, central Cairo, has been established for 61 years. The firm specialises in audit and assurance, accounting, tax, business advisory and consulting services. It has substantial experience in serving global groups, listed companies, private enterprises and individuals, in addition to governments and organisations, including the EU and UN. Its client base spans a variety of industries, including manufacturing, construction, healthcare, hotels and resorts, agriculture, non-profit, retail, funds and professional services.Zhang Ke, Chairman of ShineWing International, and Dr. Ayman Kamel, Managing Partner of ShineWing Ayman Fathy Kamel, both expressed excitement at the prospect of breaking new ground. During the formal signing, Zhang Ke said: "The One Belt One Road initiative offers great opportunities for partnerships between Chinese and Egyptian companies, and ShineWing is well-placed to support the diverse financial needs of these businesses. Egypt will also provide a strategic springboard for ShineWing's expansion into Africa and the Middle East.” Currently, ShineWing has nine offices in Hong Kong, Japan, Singapore, Australia, Pakistan, Egypt, and 23 offices in Mainland China.

For the full story, please visit www.shinewing.com

Moss Adams doubles Dallas head countMoss Adams has joined forces with longstanding Texas–based firm CF Accountants & Consultants. Effective 30 June 2016, the combination further strengthens the resources of Moss Adams in Dallas, increasing its head count from more than 30 to nearly 90.

Dallas is one of the fastest-growing markets in the United States. Moss Adams entered the Texas market in January 2015, combining with a local telecom consulting practice. The integration of CF resources will increase Moss Adams’ capabilities to serve the financial services industry, especially broker-dealers and hedge funds, as well as real estate clients and high net worth individuals. The addition of seven CF partners and 50 professionals grows Moss Adams’ Dallas presence to nearly 90 professionals. The entire team has moved into CF’s current office space. “This combination with CF positions us well to meet the growing needs of our local client base and creates an excellent platform for our continued expansion in the Dallas market,” said Clay Sturgis, partner in charge of the Dallas and Austin offices at Moss Adams. Established in 1956, CF Accountants & Consultants provided audit, tax, accounting, business valuation and business advisory services to clients in a variety of industries, including real estate, construction and financial services. The West Coast firm is equally focused on expanding its footprint in California and in June combined with Morse Wittwer Sampson LLP, establishing a location in Fresno. This merger of resources strengthens the presence of Moss Adams in one of the most significant food and agriculture regions in the country.

Please visit www.mossadams.com for the full stories.

MNP’s enduring decade of growth continues Building on its strategic goals to continue its expansion programme, MNP is merging with four more respected Canadian firms: Bruce Martin & Associates LLP, Winnipeg-based Holukoff Chiarella Chartered Professional Accountants, FJL CPAs and the Timmins office of Ross Pope LLP.Two of the largest Timmins-based firms — FJL CPAs and Ross Pope LLP — became part of MNP’s family on 1st June 2016, making MNP officially the biggest firm now in the Ontario region. FJL, established in 1985, recognized that joining MNP would offer them more resources while enhancing the specialty services they can provide to their clients. Likewise, Ross Pope, founded in 1925, was looking to expand its specialty services capabilities in the Timmins location drawing upon MNP’s extensive disciplines. Formed in 1990, Bruce Martin & Associates is a well-established firm of chartered professional accountants comprising two partners and 15 professional and support staff. Based in Kamloops, with offices in Clearwater and Fort St. John, this merger, effective 1st September 2016, strengthens and deepens MNP’s private enterprise, professionals, agriculture, forestry, oil and gas, trades, retail and services client offering in British Columbia.Serving the Winnipeg and North Ontario marketplace since 1980, 65% of Holukoff Chiarella’s client base comprises First Nations, making it a perfect fit for MNP which represents over 800 clients in Canada’s First Nations, Metis and Inuit's communities. The union becomes official 1st October 2016.For more than nine years straight MNP has reported the highest year-over-year growth rates of any top accounting firm in Canada. The firm attributes its market success to strategic mergers and acquisitions, organic growth, value-added services, and corporate culture.

Investing in innovation & leadership

Kaufman Rossin continues to invest in talented professionals, recently appointing its first Chief Innovation Officer, as well as announcing three

Principal promotions to principal.In line with the more technology-driven focus being adopted by Kaufman Rossin, Albert Primo, CPA (pictured), was named in the new role of Chief Innovation Officer in July. He will help to drive high-impact changes that

increase efficiency and improve the client experience.This marks the first time that the firm has a team dedicated exclusively to innovative initiatives. “We see this as a great opportunity to bring to life

ideas that can be real game-changers for our firm, our employees and our clients,” said Kaufman Rossin’s Managing Principal, Blain Heckaman.In addition to Primo’s appointment, Gregory Muzii was promoted to

Entrepreneurial Services Principal, Gregory Katsikas was promoted to Assurance and Advisory Services Principal, and, at 33 years old, Jason Chorlins is now the youngest Principal at Kaufman Rossin, where he is a

leader in the risk advisory services practice.

To learn more, please visit

www.kaufmanrossin.com

12 HUB 2016 ISSUE #3 HUB 13

Key speakers at the Praxity Global Conference in Gleneagles examine how roles are set to change as new technology is adopted.

Navigating the advance of new technologies such as artificial intelligence, machine learning drones and natural language generation poses real challenges to accountancy firms worldwide.

Predictions regarding precisely how firms will address the challenges of this new era vary from expert to expert and company to company. However, there is one thing that everyone seems to agree on – the future is going to be very different.

Two speakers at the Gleneagles Conference who have their own ideas of how the future will look are Gilly Lord, PwC’s UK Head of Audit Strategy and Transformation, and Daniel Susskind, co-author of the book ‘The Future of the Profession’ and lecturer at Balliol College at the University of Oxford.

FearsBoth of their talks are set to discuss how roles within accountancy and auditing will change, with technology allegedly poised to take on certain tasks that were previously performed by humans. But Gilly Lord, who admits she is "more optimistic than some", believes there will always be a place for human employees within this increasingly technical world. "I think we as humans, if we respond in the right way to those changes, will still have an important role," she said. "I do think that in ten, 20, or 40 years’ time, we'll still have human accountants and human auditors but maybe working in a really different world, using very different tools."And yet despite her assurances, there is undoubtedly a sense of unease among many accountants and auditors, which Gilly attributes to a fear of the unknown."I think a lot of people in my profession and in the accountancy profession don't know specifically how they're going to be affected. And so this fear exists about the uncertainty surrounding it. "I personally think that once you get more closely into the detail you can see a way through it, but I genuinely think there will be a place for humans."A fear of the unknown is something that Daniel Susskind has also noticed, but his solution to the issue mainly stems from being able to engage and understand how the industry has changed. While accepting that technology is going to rightly upset the status quo for many traditionalists within the

industry, there is a real feeling that an understanding of how technology will change certain roles is going to be key to easing those concerns. He said: "I think that in the medium-run it ought to be the focus of the professions to try and understand how certain activities and tasks in their job are changing with technology and also try to understand the skills and capabilities that are required to do those jobs."

Traditionalism holding workers backHaving an open mind is, Susskind argues, one of the key ways in which workers can ensure they are not at risk of being left behind by the ongoing new technological changes, adding that there is now little room for dogmatic traditionalism.He explains: "The sort of people that designed some of the latest audit systems are largely unlike many traditional accountants and that's quite significant. "There is a longer-run question about whether or not there'll be enough tasks for human professionals to do and we are more pessimistic than others on that but the long-run is a very long way away and now the most important challenge for us is to try and understand how technology is changing these underlying tasks."

Skills of future workersEnsuring that both new and current employees have an understanding of the role played by technology is all very well, but the current hot point of discussion for many leading figures in the tech industry, particularly in the West, is the apparent gap in relevant skills.

Gilly claims that PwC have, to a certain extent, already recognised the issue, adjusting their recruitment policies in line with the most pressing predictions surrounding the industry. She adds: "The need to have people who can code and are familiar with algorithms that will drive machine learning and are technologically capable is going to be really important.""Even right now we are upping the number of people we recruit with exactly those skillsets so that isn't something we're waiting for the future to bring. We're also doing things like talking to the ICAEW that design our professional qualification, which in the past has been a qualification about traditional accountancy."We're now saying to the ICAEW that they need to incorporate lots of these technology skills into the qualification itself. So as you become qualified as an accountant of the future, you'll actually have to take exams in this stuff because it's going to be so relevant." However, convincing people that they need to modernise their skillsets is not always an easy task. Indeed when taking the message of his book 'The Future of the Profession' to those about to embark on their journey into accounting, Daniel found that younger professionals can often be more conservative about what skills they embrace. Daniel agrees with Gilly's assertion that an understanding of algorithms and big data will be important in order to ensure professionals are not left behind, but he believes many are being held back by undergoing largely outdated levels of training."When we talk to audiences of young professionals, there's a lot of conservatism and that's for a justified reason, which is that they've spent a

lot of money and a lot of time training to be a particular type of professional, namely a 20th century professional. "Young professionals are angry because they've trained to be in the 20th century and not the 21st century.

How soon is the future?Such conservatism may come back to haunt many of these young professionals, but both Gilly and Daniel admit that it is hard to put a timescale on the technological changes occurring within the industry. As Gilly explains, PwC is already taking measures to try and ensure it is one step ahead of the game, with several new technological trends now on the horizon. She explains: "Natural language generation is something we're working on at the moment and that's very real technology that I think could be with us very soon. The other thing we're working on is the use of artificial intelligence that can learn what patterns in data might point to frauds or errors. "You can teach this machine to spot errors by giving it larger populations of data than maybe you might have dealt with in the past, before telling it to go and learn that data and then giving it access to a new set of data to see if they can spot any patterns, trends or anomalies. Essentially what you're doing is teaching a machine to do an audit and again I think that is not too far away."The speed of adoption of new technology may be open to question but Daniel predicts that the changes in accounting and auditing are going to be dramatic, adding: “What we're going to see over the next ten years is some really quite remarkable technological change and progress”.

Technology is bringing the future closer, but how will the industry react?

FEATURE FEATURE

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Hosted in Gleneagles, Scotland, this year’s Praxity Global Conference, 25th to 28th September, promises to cover all the hot topics that are trending across our global profession.

With an exciting golf tournament and a rare opportunity to play three Gleneagles championship courses, a traditional Cèilidh folk dancing evening and gala dinner, plus a host of highly-regarded external guest speakers, plan your time efficiently with this quick conference highlights guide:

CONFERENCES CONFERENCES

Presentation and videos from Gleneagles will be uploaded to the new Praxity resource hub shortly after the event.

Don’t forget to use your AppFor the full agenda, and to connect with people during the conference, use the Praxity App. You can even pre-book a meeting with people before arriving at the venue. Only available for Apple products, upload from www.praxity.com/mobile using your existing extranet login details and password.

27th SeptemberGleneagles Suite: Anton Colella, CEO of the Institute of Chartered Accountants of Scotland, will provide his truly unique view on the future of the profession.Gleneagles Suite: Andrew Fitzmaurice, CEO of Templar Executives, tackles cybercrime detection, prevention and the needs of clients.Gleneagles Suite: economics lecturer Daniel Susskind will reflect on how technology will transform the work of human expertsRegional meetings will run concurrently in various meeting rooms (check programme).Farewell dinner at Stirling Castle.

To ensure we stay on schedule, please arrive promptly at each meeting room.

26th SeptemberGleneagles Suite: Chairman’s State of the Nation opening presentation – Hilton Saven’s first major public address to Praxity participants since becoming Chair of the Alliance.Gleneagles Suite: Gilly Lord, PwC’s UK Head of Audit Strategy and Transformation, will share valuable insight on what technology is doing to transform audit.Gleneagles Suite: Jamie Anderson, Professor of Strategic Management – Antwerp Management School and the Lorange Institute of Business, Zurich – will cover creative leadership in a digital world.Glendevon Lawn: gun dog display and another opportunity to get to know your international colleagues better.Gleneagles Suite: Gillian Docherty, CEO of The Data Lab, discusses data driven innovation.Gala Dinner.

Highlights at the Global Conference

Global conference guest speaker Gilly Lord, Head of Audit Strategy and Transformation, PwC UK, authored this insightful article in July. Published in Accountancy Age, Gilly expressed her views on what the future might look like following Brexit and how it might impact audits.

Still time to book a place at: UK Autumn ConferenceOn 18 to 19 October, Forest of Arden Marriott Hotel & Country Club, Coventry North American International Tax Conference, 16 to 17 November, InterContinental New Orleans Hotel, New Orleans (see back page). Join hundreds of fellow professionals to learn about trending intermediate and advanced international tax issues. To download the conference agenda and schedule, and to register, please visit www.praxity-conferences.com

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Your personal conference programme The daily conference schedule, including any updates A companion programme of events A hotel floor plan Guest speaker biographies Venue facilities, location and essential information for during your stay Delegate listing, so you can see who’s attending. Access to other delegate’s My Site biographies and contact details One touch email facility for all registered delegates to arrange meetingsAsk a question option – email your question to a speaker and they will respond after the conference.

The App menu features:

“In the long-term, it’s possible that the UK regulatory framework could change, but I think it’s more likely that the UK will continue to apply much of the EU regime in order to maintain market access. Those companies with a multi-national presence will still face the challenge of differing implementation in different EU member states. The newly-created CEAOB (Committee of European Audit Oversight Bodies) – an EU-wide committee of audit oversight regulators – will play a role in maximising consistency; unfortunately the FRC is likely to have less influence on this body than they may have hoped.“The referendum result was a surprise to many. Despite the majority of business leaders being in favour of remaining, more than 50% of the public voted to leave the EU. This indicates that a significant divide remains between big business and the general public. This result should be a catalyst for business to renew its efforts to engage with the public and restore trust. We need to be even more transparent and communicate more clearly with a wider range of stakeholders, demonstrating our important contribution to society.”

Foreign exchange rate volatility and potential impact on financial statements

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Potential impact on asset valuations, and on valuation of pension deficits (real estate could be a sector particularly affected)

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Whether changes are needed to principal risk disclosures

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Whether going concern assessments and viability statement reviews need to be updated.

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Gilly continues: “So, in many ways, it’s business as usual in the world of audit. However, although I’m not anticipating any immediate regulatory changes, there are a few key considerations for auditors as they plan upcoming interim reviews and year-end audits in light of the Brexit vote. Among other things, auditors will now need to consider:

EU audit reforms; looking to the future after Brexit

“Despite the vote for Brexit, I’m not expecting the UK’s implementation of the EU audit reform legislation to change over the short or medium term. Implementation of UK legislation is in place, and the FRC’s Ethical Standard came into force on the 17 June. The FRC has already confirmed that the UK regulatory framework is unchanged. In my view, we must continue to focus on improving audit quality and increasing public confidence in audit.”

Gilly Lord

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AWARDS AWARDS

Triple roll call for Florida firmKaufman Rossin, one of the largest independent CPA and advisory firms in Florida, continues to rank highly for its leadership, technical prowess and litigation support, adding three more accolades to its trophy cabinet.Having been recognized as one of the Top 10 Best Accounting Firms in Miami by Advisory HQ in May, CEO and Founding Principal Jim Kaufman and Managing Principal Blain Heckaman went on to secure a listing in the South Florida Business Journal as ‘top 100 law and accounting power leaders’. In addition, the respected business journal recently ranked Kaufman Rossin among the top accounting firms for litigation support in terms of size.Kaufman Rossin has the largest litigation support team of all the firms ranked, comprising more than 50 litigation support professionals, including 20 CPAs and 13 partners. Leader of the forensic, advisory, and valuation services practice, Michael Elkin comments: “Our teams of testifying experts, litigation support CPAs and staff work closely to provide top-tier litigation consulting services to attorneys and their clients in Florida and across the country.”

For the full stories about all these awards, please visit www.kaufmanrossin.com

Plante Moran sure is a great place to work!In the past few months Plante Moran has earned four more ‘Best’ awards, including ‘Best Accounting Firm for Women’, multiple Best Workplace listings, and the seventh best place to retire from.Fortune.com and Great Place to Work® named Plante Moran to their lists of ‘50 Best Workplaces for Recent College Graduates’ and ‘Best Workplaces in Consulting & Professional Services’. The inaugural graduate listing ranked the firm in the sixth spot and factored in the number of year-over-year jobs created and the percentage of recent college graduates that filled these roles. In the consulting and professional services listing, the firm achieved ninth place. In the Great Place to Work® survey, the Plante Moran workforce rated the firm between 96% and 98% in all categories and seventh in the ‘30 Best Workplaces to Retire From’. Once again, Plante Moran was also named the highest-ranking accountancy firm in Fortune Magazine’s ‘100 Best Companies to Work For’, coming in at 33. It’s the 18th successive year the firm has received this revered title. The judging panel zeroed in on the firm’s flexible working practices. In June, Plante Moran discovered that for the sixth consecutive year it had been named to the Accounting MOVE Project’s ‘Best Public Accounting Firms for Women’ list, a title only bestowed to 10 accounting firms every year. While Plante Moran has a long history of supporting women, in 2012 the firm launched a formal Women in Leadership initiative with a goal of fostering equal presence, impact and influence from men and women at all levels of the firm, including partnership. Gordon Krater, Plante Moran’s managing partner comments: “Our intent is to create an atmosphere that maximizes individual freedom. While this freedom requires greater individual responsibility, it maximizes the opportunity for our staff to flourish and provide best-in-class client service.”

For more details, please visit www.plantemoran.com or http://reviews.greatplacetowork.com/rankings/2016-fortune-100-best-companies-to-work-for-list

The Washington Post rates Aronson highlyAronson LLC has been awarded a 2016 Top Workplaces honor by The Washington Post, ranking third among the 60 companies in the mid-sized category. Over 3,000 companies in the Metro region were nominated and evaluated through an employee survey this year. A total of 150 companies were recognized as finalists at a celebration in June. In addition, Aronson was featured in a special section of The Washington Post and receive an online profile on topworkplace.com.Several months earlier, the firm received its sixth Best Places to Work distinction by the esteemed publication since 2007, featuring in The Washington Business Journal’s 2016 listing.

For the full stories on both awards, please visit www.aronsonllc.com

Industry body applauds US firms’ marketing accomplishments

Double whammy for H/W/S German Praxity Participant firm H/W/S Group has scooped two accolades for its tax prowess so far in 2016.Late February, the editors of the business magazine FOCUS MONEY conducted a survey of around 10,000 tax consulting firms throughout Germany. The survey gathered information on qualifications, specialization, success and specialist expertise, and H/W/S made the top 100 list. “To be considered one of the best tax consulting firms in Germany is another triumph for our firm,” said Managing Partner Ingo Haug.In addition, a survey conducted on behalf of business newspaper Handelsbatt, declared H/W/S a top tax consulting firm in the Stuttgart area. Performance checks were conducted by the Institute of Social Sciences Shad (SWI) between September and December 2015. The firm’s responsiveness to new customers was tested with an email request for a business meeting. Several days later, all 5,700 tax consultants were contacted again, and the rationale for the test email explained, with 1,500 progressing to an online survey. The survey featured two sections: participants were first questioned about general practices in their companies, then on specialist competencies. Ten firms per region were named as top tax consultants. H/W/S appeared on the Stuttgart listing.

For the full story, please visit www.hws-partner.com

BKD wins bronze training trophy

BKD has been named a Bronze LearningElite organization for 2016 by Chief Learning Officer (CLO) magazine.

A recipient of the accolade in 2014, Greg Cole, the firm’s director of growth and development said: “Being an

industry-leading learning organization is something we take seriously.”

BKD’s educational infrastructure centers on BKD University (BKDU), an online, on-demand platform housed on the firm’s intranet. It gives personnel access to a wide

range of technical and non-technical training content through its Leadership Academy, Sales Training Institute and Coaching Program. BKDU also hosts shorter, more digestible video clips on leadership, ethics, client service

and technology.

For the full story, please visit www.bkd.com

Three US Praxity Participant firms were crowned winners at the 2016 Association for Accounting Marketing (AAM) annual award gala. BKD collected the trophy for publications and newsletters, WeizerMazars the accolade for social media campaign, while repeat winner DHG secured the recruitment campaign title.The revered awards are expertly judged by professionals in marketing, advertising, communications and professional services. There were 88 entries in total, and 26 categories, covering everything from websites, branding, multimedia and maverick marketing. Winning entries were recognized for the accomplishment of a specific goal or objective, executing a project strategically, and achieving measurable results.

“We’re very excited to be recognized by AAM as a leader in accounting marketing,” said Greg Cole, Director of Growth and Development at BKD. “I want to thank our industry leaders, creative team and everyone else who worked on the Outcomes Compass Report to make it a unique and innovative project valued by clients.”BKD created the Outcomes Compass to prepare health care clients for Advanced Payment Models. It uses sophisticated data analytic techniques to extrapolate trends, pair the data with niche reimbursement knowledge and outline actionable insights. The Outcomes Compass highlights opportunities and helps organizations manage risk.It’s not the first AAM win for WeiserMazars, who several years

ago scooped the prize for their witty #WhenSharksFly: Take a Bite Out of Busy Season online integrated campaign. “Given the focus on social media in accounting right now, to win this category is a huge accomplishment,” said Stephanie Koutsares, Corporate Marketing Director, WeiserMazars. The firm has subsequently participated in a digital marketing roundtable discussion sharing its insights. Likewise, DHG is a regular on the AAM red carpet, having won last year’s Marketing Achievement Award for Branding. “To win the recruitment accolade this year is testament to DHG’s impressive culture which focuses on people, careers and flexibility. Our culture sells itself,” said Alice Grey Harrison, APR at DHG.

Jim Kaufman & Blain Heckaman

From left to right: Greg Cole, Julianna Maldonado, Stephanie Koutsares, Jennie Long, Alice Grey Harrison

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Jason Tuffs became MNP’s fourth CEO in its 50 year history, succeeding long-serving CEO Daryl Ritchie, who remains chairman of the firm’s board. A native of Alberta, Jason gained international experience working abroad for five years and returned to Canada in 2004 to begin his career at MNP, formerly known as Meyers Norris Penny.

Our vision at MNP is to be... the pre-eminent, full service mid-market accounting firm in Canada while retaining our culture and values. In half a century, MNP has grown from a prairie firm to a leading national accounting and business consulting firm, with more than 3,500 employees and fees of Can$600m per annum. Although we are the 5th largest firm in Canada today and the largest firm in the majority of the markets we are in, our goal has never been to be the biggest. It’s about being the best fit for our clients and staying true to who we are – building upon the foundation that has made us so successful. Everything comes back to that.

On my first day as CEO… we were closing our annual partner meeting hosted in Montreal, Quebec. Daryl ran the first day of the AGM, closing with a heartfelt goodbye to the partners. The morning of the next day I welcomed everyone with an enthusiastic hello. Our partners commented how great it was that the transition of CEO straddled both days. I was very pleased to spend my first day as CEO with all of my partners. I will never forget that day; it was a great way to commence my new role.

My professional career started in… Edmonton, Alberta. Growing up, I enjoyed business and always envisaged owning and running my own business. Part of the decision-making process when selecting my university major involved looking into the subjects studied by larger company CEO’s. Most either had their CA designation, a law degree or another degree followed by an MBA. I chose the CA path as I thought it would give me the opportunity I was seeking as an entrepreneur. When I joined MNP, I experienced a culture that encourages people to think and act as business owners. I knew then that I had found my business.

Five minutes with...

Jason Tuffs

Family members are among my personal role models... each (parents, uncles, aunts, wife, etc.) instilling the importance of hard work. I also respect people that, no matter how much success they achieved, never changed who they were as individuals. They stayed grounded. To me it speaks to the value of humility and being thankful for what we have been able to achieve, not to take anything for granted in this world.

I was attracted to MNP’s... vision, culture, entrepreneurial spirit and the opportunity to grow a business. As a firm we have always known who we are and where we are going. That really appealed to me. I also knew a few people with whom I had started my career who joined MNP. They shared stories and experiences that highlighted how great the firm was – and they were right!

The most valuable lesson I learned was… when I was young. During the winter, I would go around the neighbourhood shovelling driveways and during the summer mowing lawns. Rather than specifying a price for my services, my mom suggested saying: “whatever you think its worth”. It taught me the skills around negotiation and sales while also solidifying the importance of client care and commitment. After all, my work wouldn’t be worth a whole lot if I didn’t deliver great service. This experience really instilled my desire to be in business.

Building motivates me… and describes the majority of our past and present partners. MNP has always been extremely entrepreneurial. As a result the Firm attracts others who share these traits. Rather than getting bogged down with bureaucracy, we empower each other to make decisions. Some have questioned whether this characteristic can endure as the firm grows – I believe it’s critical that it does.

I am currently reading… Hockey Towns: Untold Stories from the Heart of Canada, co-authored by Ron MacLean and Kirstie McLellan Day. From our lakeside cabin in BC, I like nothing better than spending the summer out on the boat or sitting on the beach and reading a book. Both are best with a cold beer!

My work/lifestyle mantra is… find a balance, whatever that is. I believe that the balance evolves during each person’s life stages and career. MNP adopted the ‘profit optimization’ phrase from fellow Praxity firm Plante Moran, applying it to describe our firm’s core values. These are wrapped up as ‘run our business like a business’ (we are at work to make money), ‘balanced lifestyle’ and ‘have fun’. If we look back 10 years from now and we are making lots of money but not having any fun, that will be considered a failure. Likewise, if we’re having lots of fun, but not making any money, that’s a failure too.

Networking is… vital as our business is all about relationships. Our firm’s founding partners understood the importance, in particular to the mid-market clients we serve. This ethos underpins our ‘Coffee Cup’ branding message. Have a cup of coffee with our clients, build relationships and the rest will take care of itself.

Being part of the Praxity alliance enables MNP to… provide a seamless service to our clients, regardless of where they’re doing business. The biggest value we get is the ability to serve our clients with global operations across industries — whether audits, global tax planning, or cross-border consulting. By working with firms that are similar to ourselves, we can exchange ideas and methodologies. This is increasingly valuable given how small the world is today and the increasing speed with which our business changes.

I’m a great believer in… putting people first and having authentic relationships.

At the 2016 Africa CEO Forum in March, Mazars in collaboration with Morgan Philips unveiled a study identifying the key drivers of success for current African executives and how these will evolve as Millennials take the lead.To understand the success factors of today’s leaders in Africa, the study gathered qualitative input interviewing 50 CEOs across the continent. Through these discussions, the study sought to understand how CEOs interpret their own success against various variables including education, experience, management styles, behaviours, and business strategy.With Africa laying claim to the world’s youngest population, more than 750 African Millennials shared their leadership aspirations.By juxtaposing these two viewpoints – today’s leaders and tomorrow’s – the study highlighted what has forged leaders of today, as well as the potential gaps, in terms of

expectations, skills and ambition, between this generation and the next.The CEO interviews singled out three noteworthy characteristics, which ‘Gen Y’ largely concurred with:1. Resourcefulness is highly prized2. Success depends on teamwork3. Ego must be controlled, balancing

humility with the audaciousness to challenge ‘business as usual’.

For Africa’s Gen Y survey candidates, the main variant noted was the development path to executive leadership. Five key Gen Y desires were surmised in the report:• Highly ambitious, with nearly 70%

expecting to achieve a role in the C-suite during their working life

• They want to feel empowered• The promise of personal

development and career advancement outweigh money, brand recognition or corporate values when joining a company

• They are willing to commit and work hard but they want greater flexibility in where and when they work, using smarter digital tools to assist

• They are eager to capture opportunities and build a new Africa with 30% of respondents confident that they will start their own business.

Mazars is present in 26 countries in Africa, with 2,500 professionals operating out of 44 offices. 800+ financial specialists, CEOs and prominent industry figures attend the annual Africa CEO Forum.

To view the full report, please visit www.mazars.com/Home/News/Our-publications/Surveys-and-studies2/The-Making-of-Leaders-An-African-Outlook

An African leadership outlook

FEATURE

HUB 19

NEWS FROM PARTICIPANTS

New MNP Partner achieves indigenous milestone Coming from a northern Manitoba First Nation and growing up across Canada, Rob Campbell had many dreams, yet none involved working with an accounting firm. This June, Rob became the first Status-Indian in Canada to be appointed Partner to a leading national tax, accounting and business consulting firm.

At MNP for five years, Rob views his appointment as National Director of Aboriginal Services a collective milestone. "I feel valued and honored to be recognized for my contributions. Being appointed Partner is a reflection of the commitment MNP has with me and with the Aboriginal community as a whole," he comments. Regarded as a trusted leader, with 25 years experience in community, economic and business development, Rob credits his father, who progressed from a trapper into various leadership roles, as being his strongest influence. He adds: "As many Aboriginal people aspire to all kinds of positions in life, we are all making that little contribution that collectively moves our people forward. Evolving in these roles and become decision makers and leaders enhances our people and society in general."MNP represents more than 250 First Nations, Metis and Inuit's communities across the country and over 800 clients, and has a clear understanding of the broad range of conditions that often exist exclusively within this environment.

Aronson alumni give back to new graduate program

The Aronson Foundation is helping to fund scholarships for a new 4+1 Accounting Program offered at the University of Maryland. Supporting the last graduate program year, which is considerably more costly than the previous four, Kevin Gerrity, Aronson LLC’s Director of Recruiting expressed his pride in the initiative saying: “Many of our partners, managers, and associates are proud Terps (former members of athletics teams representing the university). We are thrilled to give back to the University of Maryland, which has provided Aronson top talent for more than 50 years.”

www.aronsonllc.com

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FEATURE

Within days of the UK voting to leave the EU, Tim Davies, UK Head of Tax at Mazars, published an insightful commentary outlining the tax implications of Brexit, highlighting that the ramifications extend far beyond UK shores. With the exit still some way off, Tim advised businesses not to make impulsive decisions on tax matters during this period of extensive renegotiations.

the tax implicationsIndirect taxesUnless the UK negotiates a trade agreement with the EU, costs of exports and imports of goods will increase. UK-based businesses importing from outside the EU and then selling on to customers in the EU will need to consider additional duty costs and/or administration. Outside of the EU, businesses may need to review their supply chains. While the UK government may have more freedom in formulating VAT policy in future, European VAT law is still likely to influence UK policy. However, the UK will no longer be bound by European directive constraints, e.g. what can be zero rated and VAT rate charges.

Direct taxesIn the past few years, UK direct taxes (corporation, income and capital gains taxes) have been reshaped and aligned to the four fundamental freedoms enshrined in the EU Treaty: freedom of establishment; free movement of capital; free movement of workers; and free movement of goods. Similarly, changes have been made to ensure that there was no double taxation on individuals moving residence. Little is likely to change with regard to observing these fundamental freedoms when reaching an EU trade agreement. On leaving the EU, the UK would no longer be bound by state aid rules that prevent the distortion of competition and govern how financial assistance and subsidies are granted to business. That said, it is highly unlikely that the EU will grant access to the single market without the UK playing by state aid rules.

State aid legislation will continue to apply in a number of areas if the UK joins the European Economic Area, e.g. EIS, EMI and R&D reliefs. The World Trade Organization rules also contain restrictions on state aid.

European DirectivesCurrently, the Parent/ Subsidiary Directive allows dividends to be paid by European subsidiaries to their EU parents free of withholding tax and the Interest & Royalties Directive eliminates withholding taxes on interest and royalties. Without a suitable treaty or EU Directive, payments of interest and royalties from the UK would be subject to withholding tax at 20%. However, the UK does have an extensive network of double tax agreements meaning that in many cases the withholding tax is nevertheless still eliminated – but it is always necessary to check the position and obtain the appropriate treaty clearance before payments are made. UK corporate recipients of dividends are typically exempt from corporation tax, so any withholding tax suffered would be an absolute cost. Conversely, the UK does not charge withholding tax on dividends paid by UK corporates to EU recipients.The EU Merger Directive would no longer apply. However, to facilitate international trade the UK will likely renegotiate a deal and maintain these beneficial arrangements.Anti-Tax Avoidance Directive - agreed on 12 July 2016, the UK has already implemented various anti-avoidance rules, e.g. general anti-abuse and CFC rules. Anti-hybrid rules are included in the Finance Bill 2016, for which Royal Assent needs to be obtained by mid-October to

be enacted. Capping corporate interest deductions at 30% of EBITDA is concerning large multinationals. However, the UK is unlikely to radically change its stance given that this was driven by the OECD-G20, of which it is a member. Further amendments to the draft proposals are possible given the OECD’s ongoing discussions on the group ratio rule. Hopefully, the grandfathering provision for loans in existence at 17 June 2016, as provided for in ATAD, will also be adopted.

Share schemesFor entrepreneurial businesses, Enterprise Management Incentives (EMI) offer the biggest share scheme opportunity post Brexit. Currently constrained by EU State Aid regulations, the UK government may now be free to enact domestic legislation that enhances and extends this popular share plan in the UK, possibly opening up the arrangement to larger companies with more than the EU-imposed 250 employee limit. The incoming EU-imposed Market Abuse Regulation (MAR) rules affecting quoted companies, may be short-lived. Companies offering equity incentives internationally need to consider how this will operate without the EU prospectus exemptions that currently apply cross-border in the EU. It could result in a more onerous securities law regime for global share plans.Nervous financial markets can lead to abnormal share price volatility and this too can impact share plans. Volatility is one of the variables considered when calculating the accounts reporting P&L charge under IFRS 2 for share option awards (so may also impact private companies looking to

quoted company peer comparators for this purpose). The greater concern perhaps lies in relation to LTIP performance metrics and share allocations under the Save As You Earn plan (SAYE) and Share Incentive Plan (SIP). With SIP, a lower share price may lead to more shares being allocated to employees in respect of Partnership Share purchases and corresponding Matching Share awards. A closer eye may need to be kept on corporate governance dilution limits as a result.There must currently be a fair number of share option awards just plunged underwater, yet for private companies looking to make first time grants under tax advantaged plans there is a great opportunity to use the glass half empty perspective to tactically negotiate low share valuations with HMRC. This will be good for EMI and CSOP grants, however particular care will be needed to ensure that any Employee Shareholder Status awards don’t fall below the £2,000 de minimis threshold.

Individuals & personal taxChanges have already been announced to try to increase the UK tax take from wealthy individuals who make the UK their home for the long term. Greater flexibility to offer incentives to invest without breaching current EU state aid restrictions could lead to additional inbound investment. Individuals who own properties in other EU states could find that they are no longer protected from the punitive tax and social charges that are imposed by some EU countries on non-EU/EEA nationals. Future negotiations between Britain and the EU may secure continued protection

through double tax treaties, although the overall rate of tax may increase.

Employee mobilityUK workers in Europe only pay social security contributions in one Member State. It is to be hoped that an agreement can be reached so that such arrangements continue, otherwise workers and businesses will incur additional costs and administrative burdens.The UK government recognises that the immigration position of EU nationals will remain unchanged until exit negotiations have concluded. The UK will probably look to extend the existing points-based system to EU nationals, subject to certain relaxations. For internationally mobile workers who are in the UK temporarily, there is no immediate action to take. For those who have been living in the UK for a longer period, given the uncertainties at this stage, they are advised to protect their immigration position by obtaining the relevant immigration documents (i.e. permanent residence card, registration certificate etc.) to which they are entitled. For the next two years and beyond employers should factor in reviewing global mobility costs and risk plans.

Visit www.mazars.co.uk/Home/News/Brexit-The-implications for our latest insights and commentary.

22 HUB 2016 ISSUE #3 HUB 23

GALLERY GALLERY

Going the extra milePM+M’s Helen Clayton (left), Faye Hughes (pictured on right), Katherine Sime and Dan Hill clocked up over 52 miles this April running the MLP Law Greater Manchester Marathon Half and Half Corporate Challenge. Together, the four runners collected over £1,150 in aid of two charities close to the firm’s heart - Tommy’s charity and New Start.

For more information, please visit www.pmm.co.uk

Generosity is the wordForrester Boyd supported the Northern Lincolnshire Business Awards 2016 hosted in May, with a Grease-themed gala dinner providing an entertaining backdrop to the event organised by the Hull and Humber Chamber of Commerce. Partner Kevin Hopper formed part of the illustrious judging panel, with Forrester Boyd also sponsoring the Business Excellence Award, won by Grimsby-based law firm Wilkin Chapman. Local winners and runners up in every category were generously offered a free half-day business consultation and Forrester Boyd also came runner up in the Grimsby Institute Training Excellence Award. www.forrester-boyd.co.uk

Albert Goodman shows its caring sideAlmost 400 people attended the 9th Care Focus Care Awards held on Friday 22 April in Taunton, England. The event, sponsored by Albert Goodman, celebrated the very best of care provision across the South West of England, applauding all 41 finalists in 12 award categories. Julie Hopkins, Head of Care at Albert Goodman, delivered the opening speech articulating the importance of celebrating people whose dedication and commitment raises standards within the care sector. www.albertgoodman.co.uk

Connecting with the communityCommunity is very close to everyone’s heart at Kaufman Rossin, which has been named among South Florida’s top corporate philanthropists for the past few years. Most recently, the firm collected more than US$19,000 for the Education Fund’s Teach-a-Thon campaign. At the firm’s annual Toast to Non-Profits, there is no agenda and no speeches – just a chance to connect with the community and say thank you. “We love getting together with people who are dedicated, determined and passionate about improving our community,” says marketing principal Janet Kyle Altman. www.kaufmanrossin.com

Fun & games at Springfords Anything to do with food is always popular with Springfords staff, joint hosts of Praxity’s Global Conference 2016. The firm’s soup rota, tuck shop, annual bake off competition and lunchtime egg and spoon ‘quirky quiz’ race helped to raise over £3,000 for 16 nominated charities throughout 2015. Keeping the competitive spirit alive, the 2016 charity committee is determined to match last year’s total with plenty more fun and games. www.springfords.com

Back in the awards saddlePlante Moran has received the Many Hands One Vision award from the Equest Center for Therapeutic Riding, a Rockford-based organization that offers equine-based therapy for physically, mentally, socially and emotionally challenged individuals. The firm’s Grand Rapids people supported the Equest Center during its 2014-2015 Plante Moran Cares initiative. During the year, 140 staff members volunteered their time, sponsored events and raised more than US$12,000 for the Center.

Aronson partners take the dunk for charityIt’s important to think of new and creative ways to make an impact on your community. This summer, the Aronson Foundation raised money for the Chesapeake Bay Foundation at their annual crab feast. For a small financial donation, team members were given the chance to dunk managing partner Jeff Capron and a number of other partners. The Aronson Foundation has donated more than US$1.25 million to charities in the past 12 years. www.aronsonllc.com

Celebrating women’s history month Throughout March, DHG implemented a month-long educational campaign to promote and recognize the advancement of women in the accounting profession and beyond. As sponsors of the Women’s History Month celebration. The DHG’s Women Forward program also launched a new website - www.womenforward.com - to communicate the firm’s strategic focus on the success of women. A whitepaper titled ‘Successful Women Leaders: Conversation about Career and Life’ was also released, with DHG’s Senior Manager Ashley Ensley sharing the views and advice of strong women leaders who have experienced great success as the result of mentorship, networking and support systems. Download at the DHG resource center, www.dhgllp.com

Sharing the supportIn addition to DHG’s 5th annual food drive where local hunger relief organizations benefited from 593,464 lbs of food and more than 1,150 volunteer service hours, the firm responded to the tragic Orlando shootings and West Virginia floods, which occurred in the midst of DHG’s annual Count the Cans campaign. By rallying together and extending the giving campaign by one week, DHG collected US$36,742 in dollar donations, which it split between the OneOrlando Fund and the American Red Cross West Virginia Region. www.dhgllp.com

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