By Kalen Smith, Big4.com Blogger

Brokers have been encouraging their investors to purchase shares of Accenture stock. Financial professionals point to the fact that Accenture has strong fundamental ratios supporting it.

Seeking Alpha analysts are among those issuing a “buy” recommendation for Accenture. They referenced the firm’s five year average PE ratios. Accenture is currently trading near those ratios, suggesting that the firm is trading at a fair market price.

Profitability has remained consistent and are growing steadily. Accenture stated that it may even increase its second quarter earnings estimates. Over the course of the first quarter, Accenture outperformed its competitors who posted double digit gains in revenue.

Another advantage of Accenture is that it is highly isolated from Europe’s financial infrastructure. Less than 2% of Accenture’s business is derived from European markets. Given the uncertainty surrounding the debt crisis in the Eurozone, Accenture is going to be able to reduce its risk exposure.

Accenture’s free cash flow is expected to grow over the next two years. However, the return on equity is projected to drop around the same time, leaving the exact direction of Accenture’s valuation uncertain. Investors are willing to accept the ambiguity since Accenture’s fundamentals are so strong.

Rob Starr, Big4.com Staff Reporter

According to PwC’s Experience Radar 2012: Customer Insights for the US Airline Industry, both leisure and business travelers, are well-connected to powerful social networks and digital purchasing agents, and are seeking information transparency with personalized experiences that can dynamically shift with their needs.

To provide a “customer experience” roadmap for airlines, PwC identifies six ‘Experience Enhancers’ for airlines – practical actions designed to build and grow airlines’ businesses by delivering exceptional customer service.  Examples of ‘Experience Enhancers’ include:

• Don’t nickel-and-dime: PwC found that 65 percent of leisure travelers value all inclusive over a la carte options.  Ancillary fees may bring in revenue but can also drive out customers.  Airlines should simplify by offering all-inclusive fares and generate revenue with valuable add-ons, which can help enhance the travel experience.
• Offer perks and rewards that make a difference: Business travelers seek convenience from status.  Airlines should structure experiential benefits (e.g. rewards programs, credit cards, etc.) to tempt business travelers with the basics to make travel hassle-free— such as priority boarding, priority standby, upgrade priority, rebooking priority and extra leg room.  Eighteen percent of premium business travelers are willing to pay for priority boarding and seating.
• Create brand ambassadors: Two out of 10 never forget a bad leisure travel experience and continuously tell others about it. Get passengers talking about their good experiences by amplifying their positive travel encounters via brand advocates. Additionally, monitor social media to engage and respond to customer issues before travelers vote with their wallets and leave.

Jonathan Kletzel, U.S. transportation and logistics advisory leader at PwC comments:

“As cost management becomes less of a differentiator for airlines, carriers are seeking to create a competitive advantage by strengthening ties to consumers through an improved customer experience,” he says. “Airlines that have a crystal-clear understanding of what flyers want, need and value most can be better positioned in the market, and can achieve a higher price premium.”

Rob Starr, Big4.com Staff Reporter

Allan Zhang, a specialist in China climate change policy and sustainable business has appointed to PwC’s UK Sustainability and Climate Change team. He has previously worked with PwC’s Economics team in the UK, and the firm’s China Business Desk supporting inward and overseas investment linked to China. Prior to joining PwC, he worked in China’s Ministry of Foreign Trade and Economic Cooperation (presently MOFCOM) for 13 years, and was Director for Asia-Pacific Economic Cooperation and Asia-Europe Meeting affairs.

Malcolm Preston, global lead sustainability and climate change, PwC commented:

“Allan’s secondment comes at a critical point in climate change and sustainability agenda for China, and businesses operating there. The 12th Five Year Plan was a clear indication that the pace is picking up on environmental and sustainability issues. With the scale of their economic growth and impact, it will move the issues to the heart of national and global competitiveness for businesses operating in China.”

Zhang was previously the leader of the PwC sustainability and climate change team based in Beijing, China and joins the UK team on a two year secondment. He will be supporting the firm’s public and private sector clients in understanding and addressing sustainability and climate change issues in China.

Director of Finance/Revenue Reporting
Flexible location (Work from Home Office)

Accounting Management Solutions (AMS) has been retained to find a Director of Finance for our client.

The Client strives to end the injustice of educational inequality by providing excellent teachers to the students who need them most and by advancing policies and practices to ensure effective teaching in every classroom. A national nonprofit organization founded by teachers, the client is driven by the knowledge that effective teachers have a greater impact on student achievement than any other school factor. In response, the Client develops customized programs and policy interventions that enable education leaders to find, develop and keep great teachers. Since its inception in 1997, the Client has recruited or trained approximately 43,000 teachers and worked with more than 200 districts in 31 states – benefiting an estimated 7 million students.

The Client is active in more than 25 cities, including 10 of the nation’s 15 largest.

We are currently seeking a Director of Finance (Partner, Revenue Reporting) to join the Client’s Finance Department. This position reports to the Chief Financial Officer and will work from a home office anywhere in the United States (flexible location).This position is available immediately.

Check out the full job description here

Woods Hole Oceanographic Institution (WHOI), a world-class, independent, nonprofit organization dedicated to research, engineering and higher education at the frontiers of ocean science, seeks a new Vice President for Finance and Chief Financial Officer to lead the areas of finance and accounting, cash management, procurement, investments, contracts administration, and ERM. WHOI, the world’s largest oceanographic institution has revenues of approximately $216 million and over 900 total staff.

Check out full job description here

We cover a report that most Asian Oil & Gas deals in 2011 are outbound, an analysis that nearly half of the world’s growth over the next three years from rapid growth markets. Also E&Y adds four advisors to Fraud Investigation & Dispute Services practice; the firm finds that cleantech investment remain steady at $4.9 billion, that Australian financial institutions are under FATCA pressure and E&Y’s findings that U.S. IPO Confidence Returns for 2012.

Each week Big 4 covers key news, events, happenings, opinions and blogs relating to all the Big Four accounting and consulting firms. You can view this video our website and on Big4′s channel on Youtube.

Please contact us at big4@big4.com or (866) 690-5050 for advertising on this video or specially featuring your news. Also, place your job opportunities on the Big Four Job Board.

So, let’s start with this week’s round-up of the top news!

Ernst & Young: Most Asian Oil & Gas deals in 2011 are outbound

Asian countries and Australia showed momentum for outbound investments in their attempt to provide security of energy supplies in lieu of increasing domestic energy demand in 2011. Oilfield services sector transactions continued their momentum in this highly fragmented subsector, although the magnitude of deals was relatively smaller. Selective sovereign wealth funds and private equity remained focused on further building up their service portfolios.

However, 1,322 oil and gas transactions were announced in 2011 globally, an increase of more than 5% compared to 1,258 in 2010, proving that this remains one of the most resilient global sectors for mergers and acquisitions.

Ernst & Young: Nearly half of the world’s growth over the next three years from rapid growth markets

The most recent Rapid-Growth Markets Forecast (RGMF), shows those markets will continue to contribute nearly half of the world’s growth over the next three years. There are several noteworthy benchmarks here including the fact that rising trade links will continue to support foreign direct investment (FDI) from Asia and Latin America to Africa and other RGMs, an emerging Asia with rising middle class will lead the growth for all RGMs and demand in metal from China and other Asia-Pacific economies will push prices high

Ernst & Young: Four advisors to Fraud Investigation & Dispute Services practice added
Ernst and Young’s Fraud Investigation & Dispute Services (FIDS) practice was recently expanded to meet growing demand for, and bolster its depth in, eDiscovery and fact-finding services.
Last year, Ernst & Young began expanding its focus on the eDiscovery marketplace in the US with the acquisition of Cataphora Legal, a division of Cataphora, Inc., a leader in the management and interpretation of digital communications. As a result, Cataphora Legal’s senior leadership team, including Jonathan Nystrom, Executive Vice President in Washington, DC, and Richard Oehrle, Ph.D, Chief Linguist in San Jose, CA, joined Ernst & Young LLP’s FIDS practice as an Executive Director and Senior Manager, respectively. Seventeen additional members of the Cataphora Legal team also joined Ernst & Young LLP.

Ernst & Young: Cleantech investment steady at $4.9 billion
According to an Ernst & Young LLP analysis based on data from Dow Jones VentureSource, The Energy/Electricity Generation segment led Cleantech investment in 2011 with $1.5 billion raised through a total of 71 rounds, representing a 5% decrease in dollars invested from 2010. The Solar sub-segment received the lion’s share of capital in Q4 2011 with $284.5 million, accounting for 91% of the sector’s total investment of $312.9 million. The top Solar deal for this quarter was completed by Stion Corp., a San Jose-based a manufacturer of high-efficiency, thin-film solar panels, which raised $130.0 million.

Ernst & Young: Australian financial institutions under FATCA pressure
The draft Foreign Account Tax Compliance Act (FATCA) regulations by the US Treasury and IRS will add to the burden of a raft of other regulatory changes for Australian financial institutions.
According to Ernst & Young’s Oceania Banking and Capital Markets leader, Paul Siviour, financial institutions are left with little choice even though complying with the proposed regulations will require significant levels of investment in the face of stronger economic headwinds. Siviour said that to minimise the impact of the changes, Australian financial institutions should begin preparing now to ensure they are able meet the July 2013 compliance date.

Ernst & Young: U.S. IPO Confidence Returns for 2012
The end of 3Q boasted a U.S. IPO pipeline full and primed for companies to go public in 4Q. Now, due to recent gains in the stock market, both companies and investors are feeling more confident about IPOs according to Ernst & Young’s U.S. IPO Pipeline Analysis.
In 2011, BCM IPOs were almost nonexistent, except for the offerings of Imperial Holdings and private equity backed BankUnited. However, there was a large list of new registrants who are still on file as of 4Q. These registrants are mainly consumer finance and mortgage finance companies, such as Enova International, Nationstar Mortgage, Home Loan Servicing Solutions, and Ally Financial.

While IFRS has clearly gained ground and solid support and timelines in many countries all over the world, the US Securities and Exchange Commission has yet to fully set out a schedule to make the switch. US GAAP (Generally Accepted Accounting Principles) is so deeply ingrained that such a move will call for enormous effort and potential accounting confusions.

The Big Four Accounting Firms are solidly behind making the change, think of the billions of dollars that will pour into the Audit service line as US companies face a mandate to change within a specified time period. The SEC is still pushing for a compromise and will need a few more months to make its position clear.

International authorities are pushing the SEC towards IFRS, and US public companies are anxiously awaiting clear direction from the SEC. The SEC’s current position that IFRS would be incorporated into U.S. rules and the SEC would retain rights to evaluate future global rules, still needs full clarification.

The WSJ quoted Joel Osnoss, Deloitte Touche Tohmatsu Ltd.’s global leader for IFRS, who said Mr. Kroeker’s remarks “clearly confirm” that he and his staff are heading toward a recommendation that the SEC use IFRS for American companies.

And Hans Hoogervorst, IASB chairman was equally complimentary, saying, “It was a very solid and confidence-boosting statement. I think they are on the right track.”

And the global accounting industry continues to waits with bated breath for clarity….

By Kalen Smith, Big4.com Blogger

Deloitte has decided to increase its investments in its risk technologies practice. One of their most recent strategies in this move has been the appointment of Dilip Krishna, the firm’s new director of governance, regulatory & risk strategies.

Krishna has worked in the financial industry for over 20 years. His most recent position has been as a partner with North East Financial Services.

Kevin McGovern, the managing director of the auditor’s governance, regulatory & risk strategies division, stated that Krishna’s experience makes him an ideal candidate for this position. According to McGovern, “”Dilip is one of the rare seasoned professionals who have a deep understanding of financial services industry risk information architecture and data management end-to-end, and, simultaneously, a thorough appreciation and command of the business and risk management process.”

Krishna has achieved a number of milestones in his career which make him a strong candidate for this new position. Among his most impressive accomplishments include testifying before the U.S. Committee on Financial Services regarding the need for transparency with the TARP projects and his role in developing new technologies to help the government improve oversight for its regulators.

By Kalen Smith, Big4.com Blogger

The Economic Times recently interviewed Michael Andrew, the chairman of KPMG over the outcome of the banking crisis and the path needed to move forward. Andrew said that the financial environment in Europe is having a significant impact on investor expectations around the world.

Andrew stated that the European financial crisis is going to impose a serious burden on investors and is going to be very difficult to overcome. However, he expects the banking system to recover over time.

One of the things the banking system has going for it right now is that many investors are willing to commit themselves to long-term investments. Even though central banks have significantly lowered the interest rates many debt instruments offer, investors are willing to commit to them for stability. The spread between the rate paid out and the rate the bankers receive is widening, which will increase the bank’s profit margins.

Banks are becoming increasingly confused over what direction they should be headed. One of the most profound challenges they face is assessing which markets they should be focusing their efforts on. Developing nations are growing much faster than developed nations. Combined with the European debt crisis, the banks are facing greater uncertainty.

However, Andrew argues that the more cautious attitudes banks are taking is going to improve their profitability in time.

Rob Starr, Big4.com Staff Reporter

According to a report issued recently by Professional Services Firm PwC, nearly half of the industry leaders taking part in the PwC 15th Annual Global Survey believe that the limited availability of key skills is a serious threat to their growth prospects.

While 1 258 CEOs from 60 countries took part in the survey, the report provides a summary of findings on issues specifically affecting the financial services sector. It is based on interviews with 368 CEOS in the financial services industry (121 from insurance, 125 from asset management and 122 from banking and capital markets) in 52 countries.

For the first time in the PwC study, CEOs were asked how concerned they are about bribery and corruption. A significant percentage of South African CEOs (66%) expressed concern, compared to 34% of global CEOs.

Tom Winterboer, Financial Services Leader, PwC Southern Africa and Africa comments saying,

“CEOs in the financial services sector are facing the most challenging business conditions of their careers as profitable markets come under pressure and businesses grapple with huge and potentially disruptive changes in regulation, technology and customer demand.”

CEOs in the insurance sector are also optimistic about their prospects for the future, with 90% being confident about improving their company’s revenues over the next 12 months and 95% about doing so within the next three years. However, they view economic uncertainty as the greatest threat to growth in the short term. Around 60% believe that the financial crisis has had a significant effect on their finances and say it has triggered changes to their strategy, risk management or operational planning. Nearly half of CEOs believe that the economy will continue to get worse over the next 12 months, while only 12% expect it to improve – one of the most pessimistic outlooks in the report.

According to a new PwC Global Healthcare report entitled Bridging the Gap: Meeting the challenges of healthcare development in South East Asia, demand for better healthcare is growing in South East Asia’s emerging economies, putting pressure on governments to increase health spending on par with the developed world.

PwC Global Healthcare works with leading healthcare providers, payers and health sciences organisations across the globe to provide business insights and real-time health solutions. We help public and private executives meet the challenges of their healthcare agendas including regulatory reform, revolution in care and the impact of new science.

Globally PPPs in health are evolving from infrastructure and facilities management services to a broader range of services.

Australia is following the pattern with the proposed Sydney Northern Beaches hospital and the Fiona Stanley hospital in Western Australia where the private contractor will provide the range of facilities management, support services and non-clinical services.

Martin Locke, PwC Partner, Infrastructure Advisory comments:

“Australia has been at the forefront of Healthcare PPPs and has been exploring alternative models involving the private sector. One key difference with Asia is the greater level of maturity of the local healthcare industry. There is an opportunity for government to explore with the private sector how funding arrangements can be structured efficiently”.

Currently Australian healthcare commissions for the provision of services not directly for outcomes. As PPPs become increasingly sophisticated and the expectation is that  clinical service contracts will move from a specification about levels of activity, to providers being paid on a capitation fee and based on health outcomes. Essentially, healthcare will move from a contractual system to a partnership arrangement focused on the delivery of outcomes.

This is a great opportunity for an experienced Senior Accountant who would like to pursue their career in a high-growth business environment that offers many opportunities for personal development and the chance to take on ad hoc assignments. This role will coordinate the monthly consolidation of financial results for Match.com and all its affiliated entities, coordinate and review A/R activities for national advertising sales, provide support for various statutory audits, and work on a variety of special projects.

See the complete job listing here

Job Summary

Uses professional accounting concepts and internal company policies to solve complex accounting issues including the maintenance of internal controls. Participates in and implements monthly financial close, supervises the assignments of the staff accountants to include general ledger, accounts payable and accounts receivable. Prepares monthly management financial reporting package and executive summary schedules. Coordinates and facilitates the process of documenting accounting policies and procedures.

Click here to see the full job description

Suffolk

http://capitalone.jobs2web.com/job/Central-Islip-Senior-Licensed-Financial-Consultant-Suffolk-County-Centereach-Job-NY-11722/1493167/?feedId=943&utm_source=Big4Alumni&utm_campaign=CapitalOne_Tier1

A new study by Deloitte suggests that divestments will rise by 92 percent in 2012.

The Big4 firm is expecting £250 billion ($396 billion) worth of divestments in 2012 as companies look to sell off assets to improve balance sheets. Last year, spin-offs were worth only $206 billion.

Study co-writer Ryan Mendy said that divestments will become more common as shareholders seek greater value. “Unless heavily incentivised, both institutional and private investors are more and more unwilling to aid traditional-style corporate restructurings on yet to be proven strategies,” he said. This translates into “investor appetite for spin-offs” as divestments translate into immediate, short-term value on balance sheets.

Spin-offs will be spearheaded by basic materials firms dealing with metals, mining, minerals, and resources; this sector will represent almost 25 per cent of total divestments, according to Deloitte. Consumer goods and services companies will represent 22 per cent of divestments due to pressure on the European economy.

“The current macro European squeeze on the retail and service sectors is pressuring companies to break-up some divisions, as management works to deliver shareholders’ long-term goals,” according to the report.

Rob Starr, Big4.com Staff Reporter

B.C. will return to GST and PST on April 1, 2013. The British Columbia and federal governments announced transitional measures for the province’s return to provincial sales tax (PST) and goods and services tax (GST) from harmonized sales tax (HST).

B.C.’s announcement includes transitional measures relating to new home sales, including the transitional rules that will apply when the construction and sale of a new home straddles April 1, 2013. These rules include an expanded new housing rebate for new home sales and a provincial grant effective April 1, 2012 for sales of certain recreational properties.

The announcement is especially significant considering the background to the story.

British Columbians voted in a tax referendum in 2011 to return to the goods and services tax (GST) and the provincial sales tax (PST), thus rejecting the harmonized sales tax (HST).

B.C. Finance announced in August 2011 that the PST will be reinstated at 7%. During the transition period, the provincial portion of the HST will remain in place at 7% along with the federal portion at 5%. For details, see KPMG’s TaxNewsFlash-Canada 2011-25, “B.C. Voters Reject HST — Transition Back to PST Begins”.

KPMG’s sourcing operation in Sweden may face a legal challenge, as one of its Scandinavian clients looks to sue the firm for $2.7 million for failing to deliver an up-to-date investigation of its IT infrastructure.

According to Swedish news site Jnytt.se, manufacturing company Husqvarna, which is known in America mostly for producing lawnmowers and forestry-related equipment, hired the Big4 firm to conduct an external study of the company’s computer systems to see if they were up-to-date and operating efficiently. The project was supposed to save 200 million Swedish kronor (about $29.9 million) in operational costs.

While KPMG Sourcing agreed to look at the company’s systems, the Swedish firm was dissatisfied with the service it got. According to the Swedish company, the Big4 firm made “major errors” in analyzing Husqvarna’s computers, and now the company wants the company to repay its initial fee of 18 million kronor ($2.7 million).

KPMG has not yet commented on the case.

Rob Starr, Big4.com Staff Reporter

According to a new report by Ernst & Young, new business models are required to unlock growth. Top 10 risks in telecommunications 2012 report, the latest in a series of annual reports based on the insights of Ernst & Young’s sector practitioners, shows that, for the first time, failure to control costs is no longer in the top ten.
As operators widen their range of services, partnerships are no longer just a ‘nice to have’ – strong industry ecosystems are required to support new propositions. At the same time, new business metrics are needed – to more effectively communicate financial and operational performance to the investor community.
Risks around infrastructure investment are more important than in previous years, given that Long Term Evolution (LTE) rollouts are underway and aggressive national broadband targets are also in place.

Meanwhile, rules around online privacy and security remain contentious. In fact,the 2012 top business risks for the telecoms sector are:

• Failure to shift the business model from minutes to bytes
• Disengagement from the changing customer mindset
• Lack of confidence in return on investment
• Insufficient information to turn demand into value
• Lack of regulatory certainty on new market structures
• Failure to capitalize on new types of connectivity
• Poorly formulated M&A and partnership strategy
• Failure to define new business metrics
• Privacy, security and resilience
• Lack of organizational flexibility

Rob Starr, Big4.com Staff Reporter

According to data compiled on behalf of PwC by the Local Data Company (LDC), multiple retailers have for the first time shown a net decrease of -0.25%, a net reduction of 174 shops in 2011. Great Britain’s multiple retailers closed 14 stores a day on average across Great Britain in 2011.

Christine Cross, chief retail advisor to PwC, commented:

“Inevitably, the reduction in consumer confidence and growth in online spend has placed pressure on retail return on space. Like-for-like retail sales are no longer a sound measure – the real measures are earnings per share or profit for non-listed groups. Those companies who try and drive like-for-like will push new store openings to the point of exacerbating too much retail space, inflating stockholding and reducing returns,” she said.

“The new model must be to properly evaluate the role of the store to the customer in all its guises from innovation and inspiration to transact or just collect. There is no point in paying for space that is not earning its keep.”

The data also revealed that across multiple retailers in 500 town centres, bookshops, electricals, home furnishing, menswear, off-licences, bars/pubs and travel shops have been amongst the hardest hit in 2011. Charity shops, pound shops, shoe shops, bakers, credit unions and supermarkets/convenience stores bucked the trend showing growth during the year.

Mike Jervis, PwC insolvency partner and retail specialist also poke to the data saying that a common characteristic of retailers in distress is they have too many locations. Relatively long leases have been entered into in a growth phase of the economy which are no longer appropriate, he also notes.

“Where over expansion has already taken place, retailers need to face that reality and formulate a strategic plan in partnership with landlords, not in confrontation with them,” Jervis concludes.

Rob Starr, Big4.com Staff Reporter

PwC says the actual impact for companies sponsoring pension schemes range from benign to catastrophic, depending on significant details that remain undecided, and so UK companies still have a vital opportunity to influence the outcome. As well, the European Insurance and Occupational Pensions Authority (EIOPA) recently published its final advice to the European Commission on a new regulatory framework for occupational pensions.

Companies with defined contribution schemes are also affected by the proposals, with proposed requirements for reserves to be set up by sponsoring employers to cover contingences. If the extra costs of funding these reserves are passed onto pension scheme members, these very measures could result in the opposite of the intent to protect people’s pensions.

Another significant aspect of the proposals, which has been somewhat overshadowed, is the proposed change in the definition of cross border schemes, which will catch any employer that has cross-border employers or employees participating in their pension scheme. This matters because pension schemes that are categorised as being cross-border are required to be fully funded at all times.

Marc Hommel, pensions partner at PwC, adds some insights:

“If these reforms are implemented as drafted, it will be a case of survival of the fittest for UK companies with significant defined benefit pension schemes, but the financial position of all sponsoring employers will be weakened to some degree. We are still at an early stage in the process and UK businesses should not underestimate their abilities to influence the eventual outcome and the need to do so.”

Captial One recently annouced the purchase of ING Direct business in the United States from ING Groep for $6.3 billion in cash and approximately 54 million Capital One shares, representing a 9.7 percent ownership stake.

ING Direct CEO Arkadi Kuhlmann is taking over a new position as an external consultant and will serve as a senior advisor to Capital One’s CEO providing services in support of various initiatives, including the integration of ING Direct.

ING Direct Chief Operating Officer, Jim Kelly will lead ING Direct, reporting to Capital One’s President of Retail and Direct Banking, Jonathan Witter. Additionally, Rudy Wolfs, ING Direct’s Chief Information Officer and Chief Marketing Officer, will become a direct report to Capital One’s Chief Information Officer Robert M. Alexander. Wolfs will provide oversight for ING Direct banking and ShareBuilder technology, and will assume additional responsibility for leading Capital One’s digital and agent servicing IT teams

Kelly made the following comments:

“I’m excited about our future together,” he said. “The combination of ING Direct and Capital One heralds a brighter future for our customers, associates and the communities we serve. Both companies have a legacy of innovation that will sustain our mission to provide unparalleled value and convenience to the digital customer.”

Rob Starr, Big4.com Staff Reporter

According to KPMG‘s annual Consumer CFO Survey, over 80 percent of all respondents believe marketing to new middle class consumers in emerging high-growth markets will drive long-term success.

KPMG’s 2012 Consumer CFO Survey: Turning Global Risk into Opportunity surveyed 350 financial executives (34 from Canada) in the retail, consumer goods manufacturing and luxury goods sectors. Key survey findings include:

• Canada and the US expected to offer greatest growth potential in 2012
• Supply chain efficiencies a priority for Canadian consumer companies
• Leveraging the power of digital for consumer engagement a top trend
• Sustainable practices evolve as a core business issue around the world

Supply chain management is the focus for Canadian companies this year with over 50 percent of Canadian respondents saying they will work to increase efficiencies to meet the product needs of emerging markets. At home, Canadian consumer companies will place a higher priority (59 percent) on expanding sales activities for existing product lines to meet the needs of consumers.

Nearly 90 percent of Canadian respondents believe a solid digital strategy is critical to delivering an integrated consumer engagement program. This year, over a third of all respondents will use mobile commerce to maximize sales followed closely by customer relationship management (CRM) systems. The same CFOs expect their revenues to be lower this year, but remain confident the investments will position them for long-term success at home and abroad.

Turning Global Risk into Opportunity is based in part on results from a survey of 350 businesses worldwide, carried out in November 2011. The survey focused on senior finance professionals in retail, consumer goods manufacturing and luxury goods companies. More than 40% of respondents were chief financial officers. Almost all companies in the survey have global revenues in excess of US$500m annually and almost two-thirds of the total respondents have revenues in excess of US$1bn. Respondents were spread evenly around key regions of the world, including North America, Latin America, Asia-Pacific, Europe, and the Middle East and Africa

Rob Starr, Big4.com Staff Reporter

A new KPMG study, Expect the Unexpected: Building Business Value in a Changing World, explores issues such as climate change, energy and fuel volatility, water availability and cost and resource availability, as well as population growth spawning new urban centers. The analysis examines how these global forces may impact business and industry, calculates the environmental costs to business, and calls for business and policymakers to work more closely to mitigate future business risk and act on opportunities.

The KPMG research finds that the external environmental costs, which today are often not shown on financial statements**, of 11 key industry sectors jumped 50 percent from US$566 to US$846 billion in 8 years (2002 to 2010), averaging a doubling of these costs every 14 years.The report calculated that if companies had to pay for the full environmental costs of their production, they would lose 41 cents for every US$1 in earnings on average, the study found.

The report was released on the opening day of KPMG’s global “Business Perspective on Sustainable Growth: Preparing for Rio+20” summit occurring this week in New York. The event has attracted more than 400 top CEOs and senior business leaders from many of the world’s major corporations, along with key policymakers. KPMG International is hosting the event, in cooperation with the UN Global Compact (UNGC), the World Business Council for Sustainable Development (WBCSD) and the United Nations Environment Programme (UNEP).

Rob Starr, Big4.com Staff Reporter

Ceci Connolly, a veteran journalist, author and speaker on healthcare and policy, has bee named as managing director of the PwC Health Research Institute, the in-house organization within PwC Health Industries that provides original research, insight and analysis on the issues, policies and trends important to health organizations and policymakers.

The co-author of “LANDMARK: The Inside Story of America’s New Health Care Law and What It Means for Us All,” Connolly also is a contributing author to the forthcoming book, “Antidote: Strategies for Containing America’s Runaway Health Care Costs.” She also was a major contributor to the book “Deadlock: The Inside Story of America’s Closest Election.”

A nationally known advisor, author, speaker and television commentator on the health industries, Connolly worked for the Washington Post for 13 years, and led the paper’s healthcare policy reporting for a decade including the debate over passage of the Affordable Care Act.   She assumed this position after covering five presidential campaigns and subjects including national politics, healthcare, Latin America and natural disasters, such as Hurricane Katrina.

Kelly Barnes, U.S. health industries practice leader, PwC commented on PwC’s good fortune.

“The health industries are in a period of transformation driven by such factors as demographics, economics, technology and regulatory reform, and the PwC Health Research Institute has been at the forefront of helping the industry navigate this change,” she said. “Few people have had as good a vantage point on the change roiling the health industries as Ceci Connolly, first as a journalist and then as an advisor to the industry. She brings unparalleled experience, expertise and insight to her new role as managing director of the PwC Health Research Institute, and she will apply these qualities to translating complex subjects into compelling thought leadership.”

First, we note a new member firm in Mongolia opens, then a report that Chief Financial Officers Still Worry Over Global Economy, an analysis which shows personal insolvency figures are predicted to top 120,000. Deloitte then analyzes data in Big Data Goes to Work in 3rd Annual Tech Trends Report, a report on What’s Driving Corporate Governance and findings that Spending Cuts are on for the Premier League.

Each week Big4.com covers key news, events, happenings, opinions and blogs relating to all the Big Four accounting and consulting firms. You can view this video our website and on Big4.com’s channel on Youtube. So, let’s start with this week’s round-up of the top news!

Deloitte: a new member firm in Mongolia opens

Mongolia is a fast-growing market in the Asia Pacific region and with  significant
natural resources and a growing number of domestic enterprises they require top
quality professional services. Deloitte Touche Tohmatsu Limited announced recently it has established a new member firm in Mongolia after reaching an agreement with leading local Mongolian professional services firm, Onch Audit.

Onch Audit LLC was founded in January 2004 and has since become a leading firm in
the region. The Deloitte Onch LLC office currently employs a staff of 50 with
plans to recruit an additional 15 over the coming months

Deloitte: Chief Financial Officers’ (CFOs) Still Worry Over Global Economy

According to the latest Deloitte CFO Survey, there will only be a slight decrease in CFO appetite for M&A activity during the next twelve months. However, that figure had halved since the same quarter a year ago (down to a net 45% from 90%). Overall, concerns about the global economy remain at the forefront of many Chief Financial Officers’ (CFOs) minds.

It wasn’t surprising that optimism hadn’t shifted far from last quarter’s lowest-ever
levels and, following the World Bank’s recent downgrade of its global growth
forecasts, that position was unlikely to improve in the near future.

Deloitte: personal insolvency figures predicted to top 120,000

Deloitte’s latest Consumer Tracker, a monitor of consumer confidence and spending habits, found that seven per cent of households have seen someone lose their job in the last quarter.  Consumers were found to be bearish across a range of
indicators with 53% of respondents pessimistic about disposable income, while
28% felt negative about their personal debt and 23% about job security.
Traditionally people tend to hold off addressing financial issues during the
festive season, preferring to hold off until the New Year.

Deloitte: Big Data Goes to Work in 3rd Annual Tech Trends Report

Deloitte’s 3rd annual Tech Trends report Elevate IT for Digital Business, identifies the top 10 technology trends that will have the most potential to impact businesses over the next 18-24 months.

Deloitte’s annual “Tech Trends” report identifies the 10 trends most likely to have an
impact for CIOs in the coming year and beyond. Now in its third consecutive
year, the predictions are based on insights from Deloitte’s technology subject
matter specialists, input from some of its largest clients and discussions with
industry analysts and alliance vendors. A digital copy of this year’s complete
report is available online.

Deloitte: A Look At What’s Driving Corporate Governance

A new Deloitte report based on a survey of 208 corporate secretaries, analyzes 19 board practice areas among public and non-public companies and explores topics such as governance reform and regulation, risk oversight, corporate responsibility, board meeting practices and committee structures.

The “2011 Board Practices Report” from the Deloitte Center for Corporate Governance and the Society of Corporate Secretaries and Governance Professionals finds that expanding technology use, expectations to be more active in developing
corporate strategy, and an emphasis on shareholder engagement are driving the
corporate governance agenda.

Deloitte: Spending cut for Premier League

According to analysis by business advisory firm Deloitte, there was a drastic spending cut of 70% on the record level of £225m spent in January 2011 by Premier League clubs.

Some of the key findings from the analysis by Deloitte include the fact that Premier League clubs have committed to around £60m in respect of player transfer fees in
January 2012 compared to  £225m in 2011 and  £30m in 2010.   Spending with
overseas clubs accounted for £30m (50%) of Premier League clubs’ gross transfer
spending, followed by spending with Premier League clubs (£15m, 25%) and with
Football League clubs (£15m, 25%).

Rob Starr, Big4.com Staff Reporter

The draft Foreign Account Tax Compliance Act (FATCA) regulations by the US Treasury and IRS will add to the burden of a raft of other regulatory changes for Australian financial institutions.

According to Ernst & Young’s Oceania Banking and Capital Markets leader, Paul Siviour, financial institutions are left with little choice even though complying with the proposed regulations will require significant levels of investment in the face of stronger economic headwinds.

“FATCA regulations have the potential to affect the whole value chain of financial institutions, requiring changes to a wide range of processes and systems to comply with the increased compliance and reporting burden,” Siviour says.

“Coupled with other recent reforms such as Basel III, Stronger Super and FOFA, the FATCA regulations add mounting pressure on Australian banks and financial institutions to comply with an increasingly crowded regulatory landscape.”

Siviour said that to minimise the impact of the changes, Australian financial institutions should begin preparing now to ensure they are able meet the July 2013 compliance date.

“Although the regulations are not due to be finalised until mid-year, the July 2013 deadline means there is a decreasing window for organisations to take the necessary steps to ensure FATCA compliance,” Siviour said.

 Rob Starr, Big4.com Staff Reporter

KPMG’s 13th annual Global Automotive Executive Survey finds that while  the industry continues to weigh the benefits and challenges of various electrified fuel technologies, the ownership of the e-components space (battery management and chemistry, power electronics, e-motors, battery cells and packs, etc.) will draw intense competition among original equipment manufacturers (OEMs) and suppliers. Fifty-four percent of respondents said that electric component suppliers will gain a bigger role by 2025 and 40 percent of respondents predict that OEMs will lead in that area in addition to traditional power train technologies.

The result is that internal combustion engines are not going away anytime soon, especially as fuel efficiency and performance standards continue to improve.

For the KPMG Global Automotive Executive Survey 2012, KPMG interviewed 200 C-class global automotive executives, including 25 from North America, representing vehicle manufacturers and suppliers, from October through November 2011. KPMG has released an annual survey of automotive executives expressing their views on the state of the industry since 1999

Peter Hatges, Partner, KPMG and Lead of KPMG’s Automotive practice commented on the findings:

“The need for new electric propulsion technology is still top of mind for auto executives around the world given the demand that will be felt in the emerging markets,” he said.  “Automotive companies will continue to invest heavily in electric propulsion and will play a leadership role in the development of these emerging technologies going forward. The race is on, but there is no clear winner at this point.”

Rob Starr, Big4.com Staff Reporter

Recommendations were released recently from KPMG’s “Business Perspective on Sustainable Growth: Preparing for Rio+20” global summit. Summit attendees agreed to the recommendations as part of the meeting’s goal of providing business input to Rio+20, the upcoming global policy summit in June.

Yvo de Boer, KPMG’s Special Global Advisor on Climate Change and Sustainability noted that the meeting’s findings included near-unanimous recommendations for Rio+20. Among them, policy leaders should:

• Provide long-term, stable and transparent policy frameworks and incentives to scale-up investment in sustainable development.
• Provide strong price signals on resource scarcity and environmental impacts in order to drive investment in sustainable growth.
• Deliver new platforms for public-private collaboration at the international and national levels.

“Today’s leaders are struggling with complexity. Until now, we found global trends on energy, water security and food scarcity complex enough,” de Boer said. “ The convergence of other forces such as population growth, deforestation and a surging middle class is impacting business and the world around us. Leaders are overwhelmed by the sheer scale of these problems and struggling to act. There are ways to solve these problems, and that includes harnessing the capacity of business.”

The Summit included recommendations for business to:

• Reduce its focus on short-term performance in favor of longer term sustainable growth.
• Adopt stretching sustainability targets – for example to reduce water, energy and material use – in order to drive innovation.

Central to the three days of discussion was a KPMG report, Expect the Unexpected: Building Business Value in a Changing World, which identifies the 10 megatrends that may impact business and industry.

The KPMG research identified that the external environmental costs of 11 key industry sectors had jumped 50 percent from US$566 billion to US$846 billion in eight years (2002 to 2010), averaging a doubling of these costs every 14 years. Such external costs often are not reflected on financial statements because they may be items borne either by individuals or society at large, and are often both non-monetary and problematic to quantify for comparison with monetary values, such as the effects of pollution.  The report calculated that if companies had to pay for the full environmental costs of their production, they would lose 41 cents for every $1 in earnings on average.

Rob Starr, Big4.com Staff Reporter

The end of 3Q boasted a U.S. IPO pipeline full and primed for companies to go public in 4Q. Now, due to recent gains in the stock market, both companies and investors are feeling more confident about IPOs according to Ernst & Young’s U.S. IPO Pipeline Analysis.

Jackie Kelley, Americas IPO Leader for Ernst & Young LLP highlights some important points:

“Good companies are always able to raise capital,” he says. “Even though the past couple of years have been very volatile for IPOs, these companies that have been waiting in the pipeline have had time to evaluate their options, better prepare, and get ready to tell their story. Companies that have managerial diligence and endurance and organizational discipline before going public always attract great investors-and that’s what we’ll see in 2012”

In 2011, BCM IPOs were almost nonexistent, except for the offerings of Imperial Holdings and private equity backed BankUnited. However, there was a large list of new registrants who are still on file as of 4Q. These registrants are mainly consumer finance and mortgage finance companies, such as Enova International, Nationstar Mortgage, Home Loan Servicing Solutions, and Ally Financial. There were 18 BCM registrants in the pipeline at the end of 2011 and registered to raise total proceeds of $3.5 billion in 2012. In 4Q, no BCM companies went public.

The Oil & Gas sector continued to improve in 4Q with the Southwest dominating this area. There were 10 IPOs issued with total proceeds of $2.4 billion in 4Q, compared to 5 issues and $1.5 billion proceeds in 3Q. In 4Q, five companies entered the pipeline seeking to raise $1.2 billion in proceeds. Among the new registrants was Midstates Petroleum Co, an oil and gas exploration company founded in 2006 looking to raise $400 million. Technology IPO volume increased only slightly from 2010 to 2011, but the overall value increased 72% and raised more than $8 billion in proceeds.

At a time when most of the world is struggling to keep people employed, a small but growing number of leaders in the private and public sector are providing employees with new rules and tools for getting ahead. The reason: Savvy leaders are beginning to see that these new rules and tools — the “postdigital” technologies and best practices that are equipping employees to outperform their peers — allow businesses to see employees not as costs to be managed, but as assets that help grow the top and bottom line.

But while these leaders leap ahead with groundbreaking experiments in human resources, marketing/sales and product innovation, a great number of market incumbents are lagging, leaving them vulnerable to massive disruption.

As we discuss in the Forbes article, “There’s a gap in preparation for the disruption wrought by the empowerment of people. We call this the postdigital divide to emphasize the point that in the new world, technology may be required but it is not enough. Like the first big breach — the digital divide — there will be winners and there will losers. But this time around the divide will not simply separate the tech haves from the tech have-nots. It will likely favor those who know what’s required in the new age of performance and it will sideline those who do not.”

In “The empowered employee is coming; Is the world ready?” we take the reader on the journey that leaders have made to prepare themselves for the disruption wrought by social analytics, mobility, social technology and the cloud. At the center of the story is the 21st century employee, who employers are beginning to understand must be engaged, nurtured and supported like their best customers.

Which side of the postdigital divide will you land on? The choice — and the challenge — is yours.