Tag: ACCA

Islamabad, September 07, 2022 (PPI-OT):Current corporate reporting by a majority of companies producing the highest levels of greenhouse gas emissions would not comply with proposed new requirements from the International Sustainability Standards Board (ISSB). This is the key finding of research carried out by ACCA (the Association of Chartered Certified Accountants) and the Adam Smith Business School at Glasgow University, aiming to find out how prepared companies are for new climate-related reporting rules being developed by the International Sustainability Standards Board, formed last November.

The research analysed the most recent reports published by companies in the construction material and chemical industries which had the highest greenhouse gas emissions over the last three years, comparing current disclosures against the disclosure requirements of the proposed climate-related disclosure standard (IFRS S2, Climate-related Disclosures).

This analysis found that most companies fall short of the type and level of disclosure that the ISSB is proposing. Further, the research found that disclosures were often scattered and duplicated across different company sources, often with no cross-reference, and with little connection to financial information published in the financial statements.

Those companies (77% of the sample) that have adopted the Task Force on Climate-related Financial Disclosures (TCFD) Recommendations are significantly better prepared to comply with the proposed new disclosure requirements. However, even these companies will need to significantly increase their climate-related reporting to meet the new requirements of the proposed standard, which the ISSB aims to finalise by the end of this year.

ACCA and the Adam Smith Business School are urging the ISSB to ensure the disclosure requirements are clear and easily understandable, and that thorough guidance is provided.

Commenting on the research, ACCA’s head of Pakistan, Assad Hameed Khan says: ‘The colossal impact of recent floods in Pakistan is a reminder on the national climate action urgency. Thus, it is imperative for companies to adopt ESG focused (sustainable) practices and initiate substantive action related to climate change and strengthen reporting through robust climate-related disclosures. These measures can be a competitive advantage for companies, as well as, enhancing transparency and trust for investors, customers, employees and regulators.’

Mike Suffield, director of policy and insights, ACCA, says: ‘Standard-setters and regulators should focus support and guidance on those companies that have not adopted the TCFD Recommendations, including smaller businesses. It may be appropriate to allow a period of voluntary adoption before making the ISSB standards mandatory.’

He also called on regulators to help users of this climate-related information by resolving the problem of the scattered location of disclosures, the lack of cross-referencing and duplication. He added: ‘The ISSB also has an important role to play by providing greater clarity around location and cross-referencing in the standards, and by collaborating with the regulators to achieve a consistent approach. ‘This research is not about pointing fingers at businesses. It is about understanding where they are at in their climate disclosures and working out how to help them improve, this is vital work for all of us.’

For more information, contact:
Association of Chartered Certified Accountants Pakistan (ACCA)
Office No. 5, 2nd Floor, SNC Centre,
Fazal-ul-Haq Road, Blue Area, Islamabad, Pakistan
Tel: +92-51-111-222275
Fax: +92-51-2876605
Email: info@pk.accaglobal.com
Website: www.pakistan.accaglobal.com

Islamabad, August 12, 2022 (PPI-OT):ACCA says that the draft standards from the International Sustainability Standards Board (ISSB) are urgently needed to provide a consistent global base line for companies reporting on sustainability-related financial information.

While welcoming the two exposure drafts (EDs) ACCA notes that it is imperative that reporting drives the necessary systematic change in sustainability reporting and that operational changes take place in companies and that investors use the information provided to allocate capital more efficiently and responsibly.

Commenting on the ISSB’s exposure draft (ED) IFRS S1, General Requirements for Disclosure of Sustainability-related Financial Information ACCA is calling for a clear definition of the meaning of sustainability-related financial information. The global accountancy body is also calling for standard setters to give greater guidance on how entities will determine materiality when reporting on sustainability issues.

While agreeing with the requirements, ACCA also warns that proposed disclosures about risks and opportunities emerging from companies’ supply chains, including Scope 3 emissions, will present new disclosure challenges for many companies as will working out how to provide forward looking information.

Sharon Machado, head of Sustainable Business, ACCA says: ‘The ED does not define what is ‘sustainability-related’. As a result, the breadth and scope of the risks and opportunities that need to be considered and disclosed is left to the judgement of the preparing companies, to the detriment of consistent application, comparability, as well as cost and effort in reporting.

“We would urge the ISSB to provide a clearer indication, both in the standard and through illustrative examples, as to what sustainability might cover. ACCA suggests the ISSB could look to the six integrated reporting capitals to serve as useful framing for a broad and holistic understanding of ‘sustainability.”

ACCA is also calling on the ISSB to resist making disclosure requirement too voluminous. For reporting to serve the needs of users and bring about more effective and sustainable allocation of capital, it is imperative that information is presented in a clear and concise way. Disclosure overload will make it more difficult for investors and other stakeholders to find the information that they need.

Commenting on IFRS S2 Climate-related Disclosures, ACCA questions whether the SASB-derived industry-specific disclosure requirements fully reflect relevant disclosure topics and metrics in an emerging economy context. ACCA argues that until field-testing is done to more fully assess the international applicability of the industry-specific requirements, they should not form a mandatory part of the standard, but rather take the place of application guidance.

ACCA also highlighted a global skills shortage with the demand for sustainability reporting talent far exceeding supply. This lack of human resource could further increase compliance costs. ACCA calls for the ISSB to work with regulators, professional bodies, IFAC and the World Bank to upskill existing talent and build capacity in the reporting professions worldwide.

ACCA’s response drew on the assistance of ACCA’s Global Forum for Corporate Reporting and Global Forum for Sustainability. It has also been informed by global member outreach events and roundtables held in the ASEAN region between May and July 2022. As part of its work to directly inform the ISSB’s standard-setting efforts, ACCA is undertaking a joint research project with the University of Glasgow on climate-related disclosures in the chemicals and constructions materials industries. Preliminary findings have been presented to ISSB staff, and the final report will be published in September.

Commenting on the implementation of the standards, ACCA is urging the ISSB to develop an implementation road map in conjunction with its jurisdictional working group to guide national regulators and ensure consistent implementation across the globe.

Sharon Machado concluded: ‘A phased approach to implementation that reflects the size of entities and the resources required to dedicate to implementation may be appropriate. Smaller non-listed entities will require the longest lead time before the requirements become mandatory for them.

‘We would expect that companies would want to have a dry run before being required to fully comply with the standards. The implementation roadmap should reflect this, with period of voluntary adoption before the standards are adopted on a mandatory basis.’

For more information, contact:
Association of Chartered Certified Accountants Pakistan (ACCA)
Office No. 5, 2nd Floor, SNC Centre,
Fazal-ul-Haq Road, Blue Area, Islamabad, Pakistan
Tel: +92-51-111-222275
Fax: +92-51-2876605
Email: info@pk.accaglobal.com
Website: www.pakistan.accaglobal.com

Islamabad, July 26, 2022 (PPI-OT):ACCA (The Association of Chartered Certified Accountants) organized the 3rd Edition of its Virtual Careers Fair. It has featured around 200+ top organizations, 600+ jobs along with 4 Power Packed Exclusive Sessions by Industry Experts to enhance the employability Skills of participants.

The participating employers came from a variety of industries such as Shared Services / BPO and Consultancy, Accounting and Public Practice including Big 6 and SMPs, Manufacturing including Textile, Cement and Automotive, BFSI, FMCG/Retail, Property and Construction, Telecom and Health / Pharma – reflecting a growing demand of the accountancy and finance professionals.

ACCA continues to create inclusive opportunities for Pakistan’s youth (our members and future members) and supports their employability by unlocking the power of digital and employing innovative solutions. The event was attended by thousands of participants who were able to interact with leading employers and recruiters, learn from experts, seek new opportunities and build valuable connections with other participants and speakers.

The event received very positive feedback from all participating employers and attendees who appreciated the overall experience of the event. The presence of major employers and the quality of jobs advertised at the fair through ACCA Careers (online jobs portal) reinforced the value of the accountancy profession. Employers also shared their satisfaction regarding the strong pool of highly motivated and qualified individuals that would help them build stronger, future-ready organisations.

In her message to the attendees, Helen Brand, Chief Executive, ACCA, said: “We are delighted you can join us for what promises to be a very engaging event and one which demonstrates ACCA’s strength as a super-connector within the Accounting and industry across the world. I’d encourage you to explore all the available resources we have created for you, and I’d particularly recommend that you take time to look at the employability support materials designed specifically as you look to build on or indeed begin your career in Accountancy and Finance.”

Assad Hameed Khan, Head of ACCA Pakistan, share his thoughts in his welcome message for all attendees: “We are excited to see that Pakistan VCF continues to grow year on year and delivering a larger impact continuously. We understand that there is economic uncertainty all over the world and initiatives such as VCF enable us to super-connect our stakeholders, future members and members supporting talent acquisition and career needs”.

For more information, contact:
Association of Chartered Certified Accountants Pakistan (ACCA)
Office No. 5, 2nd Floor, SNC Centre,
Fazal-ul-Haq Road, Blue Area, Islamabad, Pakistan
Tel: +92-51-111-222275
Fax: +92-51-2876605
Email: info@pk.accaglobal.com
Website: www.pakistan.accaglobal.com

Karachi, July 22, 2022 (PPI-OT):ENSOGOV and British Deputy High Commission Karachi arranged an exclusive gathering of corporate leaders to discuss the adoption of the ESG frameworks and sustainability practices in Pakistan. The event was held on 20th July 2022 at Acton House British Deputy High Commission Karachi. Corporate leadership from the financial sector, banking, textile, FMCG, manufacturing, technology and development sector gathered at the event organised by ENSOGOV, British Deputy High Commission, Karachi, in partnership with ACCA, Nutshell Group, SEED Ventures and Matriarch Ventures under the title “Simplifying the ESG journey for businesses”.

The leaders, in general, discussed that the operating context for organisations implementing environmental, social and governance (ESG) strategies is changing exceptionally fast. There are pressures from investors, customers, employees and regulators to take substantive action and strengthen reporting and disclosures. Dr. Shamshad Akhtar, Chairperson of Pakistan Stock Exchange, PICG and Former Federal Minister, stressed creating a national-level ESG framework for Pakistan to bring harmony and comparability.

Sadia Sajjad, Country Manager UK, Ireland, Denmark and Malta, IFC, Jonathan Freeman, CEO, Sustainability Director, CareTech plc; Managing Director, Earlsbrook Consulting Limited, Muhammad Azfar Ahsan, Founder, Nutshell Group and Corporate Pakistan Group, Former Minister of State and Chairman, Board of Investment and Maheen Rahman, CEO InfraZamin Pakistan stressed on the urgency climate action and adoption of ESG framework.

Muhammad Ali Tabba, CEO of Lucky Cement Limited and Yunus Textile Mills Limited, part of YBG business conglomerate, Shazad Dada, CEO and President of UBL, Farrukh H. Khan, MD and CEO, Pakistan Stock Exchange, Naz Khan, Chief Strategy Officer, K-Electric, Shaista Ayesha, CEO, SEED Ventures, Assad Hameed, Head of ACCA Pakistan discussed the success and progress of sustainability and ESG frameworks’ adoption in Pakistan.

Corporate leaders and participants appreciated the efforts of ENSOGOV (in simplifying the ESG journey for businesses in Pakistan. ENSOGOV is an ESG tech and data-led startup delivering a bitesise sprint model to accelerate ESG transitions for companies in Pakistan and abroad. The main aim of the discussion is to gather companies under one roof and let them discover new sources of competitive advantage by focusing on benefits and embedding sustainability in the business and across the value chain.

Mike Nithavrianakis, British Deputy High Commissioner, Karachi, shared his views at the launch event of ENSOGOV “The environmental, social, and governance challenges the world faces today are complex, alarming and urgent. Businesses must make bold commitments, build robust plans and take tangible actions. Boards have the primary role of simplifying ESG adoption and benchmark the progress against global standards.”

“A strong sustainability strategy transforms a company’s relationships with its workforce, suppliers and customers, and resources utilisation models and creates long-term value for all its stakeholders”. Faraz Khan, Founder and CEO of ENSOGOV.

The companies are embracing sustainability and ESG to break harmful practices, accelerate business and societal transformation, and create value. This transformation focuses on long-term value creation for the company and its stakeholders and the broader environmental and human context in which it operates. By focusing on benefits – sustainable and circular product cycles, equitable employment, sustainable sourcing, investment in innovation and embedding sustainability, companies in the vanguard are discovering new sources of competitive advantage.

For more information, contact:
Association of Chartered Certified Accountants Pakistan (ACCA)
Office No. 5, 2nd Floor, SNC Centre,
Fazal-ul-Haq Road, Blue Area, Islamabad, Pakistan
Tel: +92-51-111-222275
Fax: +92-51-2876605
Email: info@pk.accaglobal.com
Website: www.pakistan.accaglobal.com

Islamabad, July 15, 2022 (PPI-OT):Weak growth looks the most likely outcome for the rest of 2022, according to the latest edition of the Global Economic Conditions Survey (GECS) from ACCA (the Association of Chartered Certified Accountants) and IMA® (Institute of Management Accountants).

The Q2 Global Economic Conditions Survey (GECS) – conducted in mid-June – pointed to a decisive deterioration in the global economic outlook due to the effects of war in Ukraine and the surge in inflation across much of the world.

But while risks have risen, indications are that a global recession will be avoided. However, while confidence among financial professionals has dropped sharply, the level remains above the low-point reached at the height of the COVID-19 pandemic.

The two “fear” indices – reflecting level of concern that customers and suppliers may go out of business – were little changed in the Q2 survey, both edging slightly higher. Both indices have fallen back from the extreme levels seen in 2020 but are still above pre-pandemic levels.

The largest fall in confidence occurred in the Middle East, a region more exposed to trade with Russia/Ukraine while North America and Western Europe recorded especially large falls due to big jumps in inflation in recent months.

Elsewhere the falls in confidence were still significant, but more modest (see Chart 1). Only in North America has confidence fallen back to levels seen during the COVID-19 pandemic in 2020.

While the outlook has darkened, the drop-in confidence is much greater than in orders. Indeed orders – a lead indicator of economic activity – are above their long-run average. The employment index is also well above its long-run average, despite dropping in Q2. Jobs markets are tight, and employment is rising in many economies, providing some offset to the effects of high inflation on real incomes.

In a list of top concerns since the Q1 survey, financial professionals have swapped concerns over COVID for worries about inflation and rising interest rates. But for the third GECS in a row, supply shortages and supply chain issues have remained the highest ranked risk. Hopes are that this issue would fade in importance as this year progressed are fading.

Jamie Lyon, head of skills, sectors and technology at ACCA, said: ‘Post-pandemic recovery has now given way to negligible economic growth, elevated inflation, and extreme uncertainty. The war in Ukraine has given inflation a further boost by pushing commodity prices higher. But inflation was already high and rising before the war started in February: a strong rebound in demand fuelled by a massive monetary and fiscal response to the COVID pandemic had run up against supply shortages, resulting in a surge in price pressures.’

Loreal Jiles, vice president of research and thought leadership at IMA added: ‘High inflation is resulting in falls in real disposable incomes putting downward pressure on private demand, especially household consumption. Prices of both food and energy are rising rapidly. The result is a cost-of-living crunch on low-income households in advanced economies and across virtually all low and middle-income countries, where these two categories account for a high share of spending.’

Jamie Lyon concluded: ‘Risks of a global recession have increased but our central case is that growth will be positive if rather weak. Employment growth may support total consumption. Nonetheless, with the exception of the COVID recession of 2020, we expect global GDP growth this year and next will be the weakest since the Global Financial Crisis of 2007-09.’

For more information, contact:
Association of Chartered Certified Accountants Pakistan (ACCA)
Office No. 5, 2nd Floor, SNC Centre,
Fazal-ul-Haq Road, Blue Area, Islamabad, Pakistan
Tel: +92-51-111-222275
Fax: +92-51-2876605
Email: info@pk.accaglobal.com
Website: www.pakistan.accaglobal.com