Professional Accountants in
Business Committee
supporting PAO Development
Roger Tabor
PAODC / PAIB Committee / CICPA
Joint...
IFAC

IFAC’s Focus
• Professional accountants in business integrated into
IFAC’s vision
“The global accountancy profession...
IFAC

Professional Accountants in Business Objectives
• Increase awareness of important role professional
accountants play...
PAIBs matter to the way economies perform
• Economic and business failures aren’t just down to weak
reporting and regulati...
Causes of Business Failure – Many PAIB related

• Dysfunctional governance and management
• Ethics, culture, poor tone at ...
Key Features of PAIBs’ Contribution

• Creating value—developing strategies for sustainable
value creation;
• Enabling val...
Key Features of PAIBs’ Contribution

• Ensuring the
organization is doing the
right things in the right
way
• Influencing ...
Finance Leadership (CFO, FD, controller etc)

• PAIBs in finance leadership roles are a critical part of
ensuring well-gov...
The Practical Challenge
• PAIBs widely scattered
• Small groups and isolated individuals as well as large
departments
• Br...
IFAC

Recommendations for PAOs and Employers
• Understand and meet organizational needs
• Ensure the scope of qualificatio...
Focus of the Profession Needs to Adapt
• Current focus mainly on creating standards and rules for
governing how organizati...
Equipping the Profession
• Targeted governance and support
structures are needed to more
effectively engage with, and
repr...
Direct Contribution of the PAIB Committee

• Support the PAODC goal on developing capacity of the
profession to support fi...
Moving Forward: Strategic Imperatives

• Enhance outreach to non-MBs with PAIB equivalents, and
facilitate creation/expans...
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Professional Accountants in Business Committee supporting PAO Development

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Presentation by Roger Tabor, PAODC/PAIB Committee/CICPA Joint Session, Beijing, China, October 15, 2013

Published in: Business, Economy & Finance
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Professional Accountants in Business Committee supporting PAO Development

  1. 1. Professional Accountants in Business Committee supporting PAO Development Roger Tabor PAODC / PAIB Committee / CICPA Joint Session Beijing, China 15 October, 2013 Page 1 | Confidential and Proprietary Information
  2. 2. IFAC IFAC’s Focus • Professional accountants in business integrated into IFAC’s vision “The global accountancy profession will be recognized as a valued leader in the development of strong and sustainable organizations, financial markets, and economies.” Page 2 | Confidential and Proprietary Information
  3. 3. IFAC Professional Accountants in Business Objectives • Increase awareness of important role professional accountants play in creating, enabling, preserving and reporting value for organizations and their stakeholders • Supporting member organizations in enhancing the competence of their members through development and sharing of good practices and ideas. PAIB objectives directly support capacity building Page 3 | Confidential and Proprietary Information
  4. 4. PAIBs matter to the way economies perform • Economic and business failures aren’t just down to weak reporting and regulation • Financial reporting and audit address what’s happened: managerial accountancy influences what’s going to happen in future • Real performance is created inside organizations This applies in the public sector too Page 4 | Confidential and Proprietary Information
  5. 5. Causes of Business Failure – Many PAIB related • Dysfunctional governance and management • Ethics, culture, poor tone at the top • Strategic • Poor decisions • Poor execution • Inadequate responses to uncertainty through ineffective risk management and internal control • Flying blind with poor financial management and accounting • Operational inefficiency Page 5 | Confidential and Proprietary Information
  6. 6. Key Features of PAIBs’ Contribution • Creating value—developing strategies for sustainable value creation; • Enabling value—supporting the governing body and management in making decisions and facilitating the understanding of performance; • Preserving value—asset and liability management, managing risk in relation to setting and achieving the organization’s objectives, and implementing and monitoring effective internal control systems; and • Reporting value—ensuring relevant and useful internal and external business reporting Page 6 | Confidential and Proprietary Information
  7. 7. Key Features of PAIBs’ Contribution • Ensuring the organization is doing the right things in the right way • Influencing the future • Providing accountability • Dealing with uncertainty and ambiguity Page 7 | Confidential and Proprietary Information
  8. 8. Finance Leadership (CFO, FD, controller etc) • PAIBs in finance leadership roles are a critical part of ensuring well-governed and managed organizations • Finance leadership and professionalism apply to stewardship and business partnership • The reality is that the number of PAIBs in senior finance and accounting roles is declining in many jurisdictions Page 8 | Confidential and Proprietary Information
  9. 9. The Practical Challenge • PAIBs widely scattered • Small groups and isolated individuals as well as large departments • Broad range of expertise (with specialization in big organizations) • Many sources of information available from outside accountancy profession Page 9 | Confidential and Proprietary Information
  10. 10. IFAC Recommendations for PAOs and Employers • Understand and meet organizational needs • Ensure the scope of qualification and training incorporates broader professional and managerial capabilities and skills • Foster and encourage a commitment to lifelong learning • Be creative and innovative in how support members • Flexible education approaches that deal with – Cultural and geographical differences – Offering broad business experience – Flexible approaches to development and training Page 10 | Confidential and Proprietary Information
  11. 11. Focus of the Profession Needs to Adapt • Current focus mainly on creating standards and rules for governing how organizations are held accountable to providers of resources to the entity (investors, taxpayers etc) • A critical aspect of capacity building is to help PAOs to proactively engage with PAIBs, and their employers • PAIBs also need to derive value from their professional membership Page 11 | Confidential and Proprietary Information
  12. 12. Equipping the Profession • Targeted governance and support structures are needed to more effectively engage with, and represent PAIBs • Need for more support and encouragement for PAOs to create, improve, and foster PAIB networks and support • Ensuring that PAOs and employers support relevant knowledge acquisition Page 12 | Confidential and Proprietary Information
  13. 13. Direct Contribution of the PAIB Committee • Support the PAODC goal on developing capacity of the profession to support financial stability, sustainable growth, and social progress, by – Engaging and bringing together PAOs to share knowledge and experiences in serving PAIBs (e.g., Yacoob Suttar presentation to PAIB Committee http://www.ifac.org/news-events/2013-03/professionalaccountants-business-committee-institute-chartered-accountants-paki) – Representation and guidance in good governance, risk management & internal control, financial and performance management and business reporting (among other areas) – Outreach to non-accountants who do same work as PAIBs (e.g., controllers) Page 13 | Confidential and Proprietary Information
  14. 14. Moving Forward: Strategic Imperatives • Enhance outreach to non-MBs with PAIB equivalents, and facilitate creation/expansion of PAIB activities within MBs • Effectively engage with current IFAC members to develop their support and engagement of PAIBs • Greater recognition and prominence of professional accountants’ support for economies through ‘successful sustainable organizational performance Page 14 | Confidential and Proprietary Information

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