Your Specialist Accounting Advisory Services Team

Transcription

1 Your Specialist Accounting Advisory Services Team The PwC Capital Markets & Accounting Advisory Services Group assists clients with complex accounting and financial reporting matters. August 2013

2

3 Accounting Advisory Services The PwC Capital Markets and ( CMAAS ) group are a dedicated team of Middle East based specialists, providing advice on complex accounting issues to regional clients. We understand the challenges, dynamics and aspirations of our Middle East clients. What we do We help our clients address a wide range of accounting matters, from interpretation of developments in financial reporting and application of new standards, to advising on accounting implications of complex transactions. We provide tailored solutions to meet your needs, whether it be through development and documentation of accounting policies, design and provision of customised training, or supporting you in developing accounting solutions to improve the efficiency of managing your business and communicating with your auditor. Our approach is a practical, flexible, value-added approach to help you develop effective solutions in areas of accounting complexity. How we can help you We have considerable expertise in supporting clients as they navigate some of the most difficult and challenging periods of change in their business lifecycle, whether it be adoption of new accounting standards, a change in basis of accounting or a significant acquisition. We work alongside your team to find the right solution to match your needs, thus ensuring our services meet your expectations whilst also transferring the required knowledge and skills to your team. How we add value We are on top of industry best practices and the latest developments in accounting standards, as well as having practical experience of a range of transaction and structure types. Being based across the region, we understand the unique challenges faced by companies, but also add a global dimension through the international PwC network as well as the international experience of our team. As a result of this, we will usually have seen your transaction structure or accounting issue before, and so can bring our experience to bear effectively and efficiently to help you reach the right solutions. Where we support you in a non-audit capacity, we also bring an independent perspective to help you achieve a smooth audit review process. Accounting Advisory August

4 Our Services We have significant experience of advising on a range of complex transactions across the Middle East region, bringing our cumulative knowledge to help you find the optimal solution. We offer a comprehensive range of services to clients of all sizes and across many industries. We categorize our offerings under the broad headings of transaction accounting, deal structuring, continuing financial reporting obligations and other specialist services. Transaction Accounting Transaction structures are becoming increasingly more complex which means structuring and accounting for a deal is increasingly more challenging. Our team specialises in advising on all aspects of transaction accounting, whether that be an acquisition, a carve-out, spin-off or reverse acquisition. Our experience means we have supported many complex transaction types. Accordingly, our tailored advice allows you to quickly identify the key issues, thus saving you time and money two factors that are crucially important to you in any deal. Common areas on which we advise include: Cross-border accounting conversions and policy alignment; Acquisition accounting including business combinations and purchase price allocation exercises; Compilation of complex financial histories; Carve-out accounting; Transaction accounting structuring; and Post deal finance and accounting integration. Deal Structuring We can provide advice on the mechanics of complex corporate transactions, such as capital raising, corporate re-organisation, distributable reserves planning, infrastructure transactions, refinancing, distressed restructuring and debt for equity swaps. We work closely with you and your other advisors to ensure our work complements the overall objectives of the transaction. In addition, we provide commercial advice on complex accounting issues such as pension structuring and joint ventures. Our services include: Advising on accounting for the proposed transaction structure, and through our knowledge of successful corporate structures helping you achieve the optimal organisational structure; Identifying opportunities to improve accounting results (i.e. accounting for distributable reserves on a capital raising); Accounting for the holding company and funding structures; and Accounting for debt and equity instrument structures associated with the transaction. 2 Accounting Advisory August 2013

5 Our Services We support a number of regional finance teams with their ongoing financial reporting obligations, providing the benefit of our cumulative experience to help improve their efficiency and effectiveness. Continuing Financial Reporting Obligations Financial reporting standards continue to evolve and are becoming significantly more complex to apply. Similarly, in the light of recent events in the global economy, levels of regulatory scrutiny are continually increasing. As a consequence, the demands of financial reporting and the pressures placed on the finance function are also becoming greater. Dealing with these challenges is becoming more and more of a daily requirement for CFOs than ever before. Our team has considerable experience of working with CFOs and finance teams to help address these challenges, enabling the finance function to stay on top of the key changes in financial reporting obligations. Some of the areas in which we provide support and where we find finance teams and CFOs gain the most benefit from our advice include: Close process and review of financial reporting processes; Advice on the application of new financial reporting standards and preparing for their impact; Training finance teams on the application of new standards; Review of management information systems ( MIS ) and Board reporting packs; Policy alignment review across group entities; Policy manual development or enhancement; and Policy development to support audit sign-of We often find bottlenecks in the close process are inhibitors to efficient and timely financial reporting which can have impacts across the business as well as the finance function. By helping our clients identify and alleviate these bottlenecks, we provide value not only to the finance team but the wider business, Board and senior management through improvement of reporting capabilities. Similarly, our independent review and analysis of company MIS and Board reporting packs enhances key performance indicator ( KPI ) reporting and quality of information provided to the Board. These improvements enhance the Board s decision making capability thus bringing wider benefits to the business. Accounting Advisory August

6 Other Specialist Services Our team comprises individuals with direct experience of working in Europe, the Americas and Asia, bringing a wealth of specialist knowledge to the unique challenges of financial reporting across the region. In addition to the areas described above, we have specialists in our team who provide support in the following complex areas: Accounting conversions; Credit risk and loan loss provisioning; Treasury accounting including hedge accounting implementation; and Remediation of accounting failures. Accounting Conversions As companies seek to develop their reporting frameworks and transition to alternative standards, adopting an accounting framework (i.e. IFRS, IPSAS, US GAAP, etc) or building dual reporting capabilities, a proven conversion methodology and approach will be essential in: Identifying key accounting differences; Development of accounting policy and application solutions; Development of new reporting processes; and Embedding into the business as usual processes. Our team have direct experience of execution and delivery of such exercises, within the region and globally. We can bring this experience to you, as well as our tried and tested conversion methodology, which has underpinned successful conversions for entities across the Middle East, Europe and Asia. Credit Risk and Loan Loss Provisioning We are witnessing accounting standards boards around the world aspiring to develop a forward-looking risk based methodology for provisioning. Our team comprises individuals with direct experience of credit portfolio management in banks, who can advise on the mechanisms for development of aligned rating methodologies for financial reporting, capital management and portfolio management. Coupled with the above, organisations required to comply with Basel regulatory capital regulations now need to consider the interactions between their accounting and capital frameworks. We have been advising entities on such interactions and how to optimise capital and provision metrics. We will support you in the design, development and implementation of methodologies to achieve your goals. 4 Accounting Advisory August 2013

7 Other Specialist Services Our team look beyond accounting theory and regulation, to see where we can add real strategic value to your business processes and management. Treasury Accounting including Hedge Accounting Implementation Effective implementation of hedge accounting often raises fundamental questions around an entity s ability to test the effectiveness of hedge accounting policies, implement and subsequently monitor the hedging arrangement. This is a highly technical area, where the requirements are complex and continuously evolving. We support with all aspects of implementation, including: Helping you to optimally reflect your hedging strategy in your profit and loss and investigating other strategies; Providing the latest advice on dealing with standards related to financial reporting on derivatives and corporate treasury; and Guiding you through the practical application of the accounting requirements related to cash flow hedges, fair value hedges and net investment hedges. A flawed hedge accounting strategy can expose an entity to significant financial risks and potential loss we help prevent these situations from arising. Remediation of Accounting Failures In instances where there have been failures of the corporate and financial reporting regime, we support clients in carrying out an independent review and assessment of the level of compliance with statutory reporting requirements and adherence to internal policies and control procedures. Typically, we would provide a number of key deliverables: Diagnostic assessment of compliance with reporting requirements; Quantification of financial impacts of non-compliance; Development of framework to attain reporting compliance; and Guidance on specialist investigations i.e. associated fraud investigations. Such assistance aides key stakeholders in assessing the background to, and implications of, accounting failures such that appropriate actions can be taken. Accounting Advisory August

8 Your contacts Steve Drake Partner, Head of Capital Markets & Gavin Steel Partner, Accounting Advisory Services Leader Cristina de Torres Director, Capital Markets & Humera Afzal Director, Capital Markets and Donald MacDonald Director, Capital Markets & Financial Services Specialist Blaise Jenner Director, Capital Markets & Accounting Structuring Specialist Wael Abou Zaki Director, Capital Markets & Government Accounting Specialist David Dowall Senior Manager, Capital Markets & Accounting Advisory Services Leader, Qatar david.dowall@qa.pwc.com Zulfiqar Unar Senior Manager, Capital Markets & Financial Instruments & Hedging Specialist zulfiqar.unar@ae.pwc.com Hashim Ali Senior Manager, Capital Markets and Accounting Advisory Services hashim.x.ali@sa.pwc.com 2013 PwC. All right reserved. PwC refers to the PwC network and/or one or more of its member firms,each of which is a separate legal entity. Please see for further details. Designed by CDC 470 (8/2013)