Adam Leahy explains four ways in which young Chartered Accountants can future-proof their careers. Firms have been able to outsource and even automate an increasing number of accounting-related activities over the past decade. When I completed my training contract in 2010, the workload for the newly qualified accountant consisted mainly of these activities. Today, if a candidate wants to enter and prosper in the larger industry firms, they must bring more to the table. So, what does it take for a young Chartered Accountant to stand out today? 1. Technical knowledge Technical knowledge has been, and will always be, the cornerstone for an accountant. Understanding the standards, how to apply them, and how changes will affect how a company reports will always be needed. 2. Problem-solving, critical, and strategic thinking When an accountant can use reason and logic to solve complex problems that positively impact the future of the organisation, they show the ability to think long-term and outside the vacuum of their immediate role. The common requirement of the future-proofed accountant is sustainable value creation for the business. The larger firms are moving at such a fast pace that if an accountant performs no more today than the same tasks they performed 12 months ago, that accountant is going backwards. A future-proofed accountant needs to move forward consistently. To do that, they need to create value. 3. Systems thinking As we rely on increasingly advanced tools for processing and reporting information, it is not sufficient for an accountant to simply understand which buttons to press. Instead, accountants must understand how these systems work. What are the benefits now, and what are the current limitations? How can these systems be used or enhanced to drive greater efficiency, higher standards of compliance or more useful business insights? 4. Influencing and communication skills It’s refreshing to see more leadership teams ditch the notion of “that’s the way we’ve always done it” to justify their course of action. Instead, successful leadership teams seek ideas from all levels. Suppose a good idea is brought forward by a junior accountant who hasn’t been there long enough to get swept up in ‘group-think’. In that case, the ability of that accountant to confidently voice the idea and influence upwards could be the reason the idea is adopted. And happily, the junior accountant may also be rewarded or promoted in time. Adam Leahy is  Co-Founder of The Finance Tech Forum and Senior Finance Manager  at Microsoft Ireland. You can read this article and others in Career Guide 2021/2022. 

Author and executive advisor Niamh O’Keeffe shares her top seven tips to help you make a solid first impression in a new role or company. The ‘first 100 days’ is a very helpful device for defining the beginning phase of your new role. It carves out three to four months as a period of transition, which is useful for giving yourself a chance to land in, listen and learn. It is also the time to set out your strategy and make a positive first impression with your new team, boss, and key stakeholders. Whether you are new to the role or new to the company, your first 100 days is a new leadership beginning and an opportunity to establish yourself and set the tone for how you plan to lead during the rest of your role tenure. So don’t just arrive and get busy with the day-to-day detail. Instead, think more strategically about what you want to achieve and, with that in mind, set out your key priorities for the first 100 days and stick to them. 1. Think big and start with the end in mind Set an ambitious role vision for what you want to achieve within three to five years. How will this role matter to your career? What will success look like? What kind of leadership legacy do you want to leave behind? Think about what truly matters to you as a business leader and what you could do in this role to make a difference to your team, organisation, industry, and the world. Your vision is about long-term thinking; it provides context and helps you prioritise what you need to achieve in the next 12 months and, subsequently, the actions to focus on in your first 100 days. 2. Stay focused on your strategic priorities A new role in a new company can feel overwhelming, but don’t just get busy doing the doing. Jumping on the day-to-day treadmill of firefighting is too short-term in approach. With your long-term leadership vision in mind, set out your key strategic priorities for the first 12 months and then align a plan of key desired outcomes to be achieved by the end of your first 100 days. Setting out your key priorities early on and regularly monitoring progress makes you less likely to get derailed by less important day-to-day activities and less important tasks. 3. Don’t invite the in-laws to stay! Your first 100 days of transition to a new role or new company is not business as usual. No matter how experienced you are, stepping up into a new role is still a heightened stress event. You need to be fit-for-purpose, and you will need to manage your energy levels accordingly for the challenges and intensity of the new learning curve. Adrenalin will compensate for any lack of reserves but don’t exacerbate the pressure on you by having the house redecorated or the in-laws over for a visit. Instead, keep a cool, clear head and maintain a calm personal life to support your work efforts. 4. Don’t be a hero, it’s not all about you! On arrival, remember that you are a new leader, or member, of a team. You are not an individual operator, nor superman, nor a lone expert genius. Building or contributing to a high-performing team will be critical to your overall success. Take time in your first 100 days to bond with your colleagues and figure out how to work well together. Be straightforward, friendly, optimistic. Ask for help when you need it. And if you are new to this company, don’t annoy people by constantly talking about how great your last company was! 5. Pay attention to culture, power, and politics In any new culture, always try to figure out who and what matters. Consider how decision-making works. Don’t make assumptions or be naïve enough to simply take things at face value. Get advice from seasoned colleagues at the company to better understand how the company’s culture works, both above and below the surface. For example, what people say versus what they really mean. Learn to read and decode the organisation’s clues to understand the politics of the new organisation so that you can participate more productively. 6. Be your own best PR agent Don’t expect your work to speak for you. You need to bring people with you on the journey of your first 100 days and communicate your successes to stakeholders along the way. When the first 100 days is complete, share a record of your main achievements. You could make a formal ‘End of First 100 Days’ presentation to your boss or other key stakeholders. Think of it like showcasing the return on investment on the cost of hiring you and brief people on what is yet to come. 7. Ask for feedback, not reassurance After a month or so, seek formal feedback on your performance. If your boss, peers, and key stakeholders say, “You’re doing great, just keep going”, it may feel encouraging – but please realise that this is not actually feedback. Push for a more constructive response. You will need to know if you are making any unwitting cultural gaffes. You need feedback sooner rather than later on anything that may prevent you from making the right impact or building more productive relationships. Final words As this is a new experience, you inevitably won’t get everything right. That’s okay too. Do your best, learn lessons, and move forward. I wish you every success on your leadership journey. Niamh O’Keeffe is the author of Your First 100 Days: How to Make Maximum Impact in your New Role. Niamh also advises corporate CEOs and senior leaders in London and New York. You can read this article and others in Career Guide 2021/2022. 

The onboarding process is more than just an office tour and an overview of the employee handbook, writes Dr Mary Collins. The first interactions beyond the interview and selection process can have a lasting impact on how a new hire perceives the organisation. A positive onboarding experience can really set one up for a successful career in their new office. What is onboarding? Onboarding is the process through which new employees are oriented to acquire the necessary knowledge, skills and behaviours in order to become effective members of the organisation and in a manner that aids overall retention. The goal of onboarding programmes is to help employees quickly become acclimatised to their new workplace and bring them ‘on board’ with regard to company culture, understanding of job function and overall comfort level. It is more than providing basic information for new hires to do their jobs – it is about engaging new hires with the culture of the organisation and supporting them in finding their purpose in their new roles.  Making connections In an increasingly hybrid world of work, we need to work harder to communicate clearly and make strong connections. Wherever possible, arrange to meet people face-to-face or, if this is not possible, vary the communication channels. A regular phone call can often work as an easy way for people to share and connect rather than just relying on zoom or other visual platforms. For new employees, onboarding is the ideal time to reach out to key stakeholders in a new organisation, arrange short coffee catch-ups with relevant people to build your understanding of the culture, strategic priorities and importantly to start building a strong network for your future career.  Relational vs transactional onboarding A recent trend is ‘relational’ onboarding, which complements the more traditional ‘transactional’ onboarding. Transactional onboarding is more focused on policies and procedures and getting people skilled-up in relevant regulatory requirements, for example. Relational onboarding is more about connecting people in the organisation, building their network internally and externally.  Part of this ‘relational’ focus is gathering feedback from new employees for continuous improvement of the onboarding experience. There tends to be a one-flow system of communication in most organisations. An employee onboarding process should be an iterative learning process that improves over time with experience and feedback. Soliciting feedback at important transition points means you can gauge if you are meeting or exceeding expectations and helps build a meaningful, engaging onboarding process.  Common Pitfalls to Avoid in Onboarding While a good onboarding process can create an engaged and connected workforce, there are some pitfalls organisations should be aware of: Treating it as a one-day event. Onboarding starts when you are contacted to communicate success at interview and continues for at least three months after the new employee joins the organisation. Assuming that onboarding is ‘training’. Effective onboarding is about successfully assimilating the new employee into the culture of the organisation and connecting them with others who can help them adjust to their new role. Believing that new hires cannot add value from the first day. If the pre-onboarding period is managed well, new hires can contribute value from their very first day. This is important, especially for professionals who are used to being high performers in their previous roles. Clear communication around performance expectations from the outset will ensure that the new hires know this. First 100 days The first three months are critical when you start a new role. By the end of this period, employees should have a good sense of the expectations of the role, the company culture and how they are ‘fitting in’ and performing. It may be a time when questions emerge related to the role and performance objectives. It may also be a time when new hires have suggestions to improve the overall performance of the business based on what has been observed.  Training and development needs may emerge around this time, as it is usually the half-way point in a six-month probation period. It is worth having a conversation about what support is required and how it will be provided.  First 100 days checklist Important questions will be asked during the first 100 days of employment. How are you finding your new job? What are you enjoying most about working here? How does the role compare with what you were expecting? Has the learning and development/training you have received to date been helpful? What, if anything, would you add or change? How are you finding the experience of working with your colleagues? Do you have any suggestions for improving the onboarding process? Is anything not working for you? Is anything about your role, the team or company still unclear? How can management help your transition at this point? How do you find the work-life balance? Dr Mary Collins is Senior Executive Development Specialist at the RCSI Institute of Leadership. You can read this article and others in Career Guide 2021/2022. 

Anne Phillipson explains how you can work your notice period like the pro that you are. How you exit your company when you have decided to move on to pastures new says an awful lot about who you are. The final weeks (and, in some cases, months) you have in an organisation is the lasting legacy you will leave behind, and so it’s important to make a graceful exit. Your notice period The period between handing in your notice and your final day is a chance to ensure that you have done everything you can to tie up loose ends and complete any outstanding projects, so your colleagues left behind don’t have to wonder where things stand, and clients aren’t wondering why you haven’t returned their calls. Your notice period is also the final opportunity to create the lasting impression your employer has of you, which they will use as the basis for any future references. It could also decide whether the door remains open for your return should you decide that the new opportunity isn’t the right move after all.  So, if you want to do everything you can to work your notice period and leave on the best possible terms, here are a few pointers on how to do that well. Don’t take your foot off the gas. Continue to be as productive as you always have. Work hard and be diligent for the entire notice period. Let people know you are leaving (agree timing with your line manager) and don’t bad mouth the company, colleagues, or boss. Focus on the positive reasons for leaving rather than anything you were dissatisfied with in your current role. (You can save that for your exit interview!) Agree with your line manager how to handle any outstanding leave – will you take your time off as part of your notice period, or will you get paid for your days as part of your final paycheque? Agreeing this early will help you plan your final weeks. Don’t feel responsible for other people’s reactions to your leaving. Your colleagues may be upset, disappointed, or even try to discourage you. That’s more about them than you. Take the fact that they really don’t want to lose you as a valued member of the team as a sign of affection, but don’t allow them to cast doubt on your decision. Make a list of the projects you have been working on, with notes on its current status, who to call with questions, and any other insights you have which may not appear in a typical file. Make it easy for others to carry on when you are no longer on the team.  Agree with your line manager who will pick up your work, and then schedule time with those colleagues to have a proper hand-over. Don’t leave those meetings until the last week. Ideally, your replacement(s) will have some time to get stuck in while you are still around to answer questions. Sometimes they don’t know what they don’t know until they actually get started, so allow time for that process. If your replacement is in place before you leave, do your best to train them well.  Express gratitude to all the people who have helped you in the organisation. Say thanks by taking them out for a coffee or lunch to let them know how much you appreciate everything they did for you. Even a thoughtful note can mean a lot. Every organisation has those kind people who look out for others, so don’t miss this opportunity to let them know their efforts were appreciated. My following these suggestions, you should be in a strong position to leave with your head held high and knowing that you have done everything within your power to leave on the best possible terms.  The exit interview Most organisations will also request an exit interview with Human Resources as one of the final meetings before you go. This is an opportunity to express your reasons for leaving. The information gathered in exit interviews provides valuable information for the organisation. Trends from exit interviews may inform retention strategies, so use this as an opportunity to be honest but respectful in explaining why you decided to look outside the organisation for your next opportunity. Quite often, when people leave, it’s more than just pay and benefits that tempted them away. Whatever the reasons are, it’s HR’s responsibility to report back on the trends they are seeing across a range of exit interviews so that senior management can act on the information.  Keep in touch Finally, you may wish to send a goodbye note to the team or even the entire company on your last day. This is an opportunity to update colleagues on your new contact details. The relationships we build at work are an important part of who we are – we often spend more time with colleagues than we do with our friends and families – so it’s not surprising that many of those relationships transcend the work connection and colleagues become lasting friends. Anne Phillipson is Director of People & Change Consulting at Grant Thornton. You can read this article and others in Career Guide 2021/2022. 

Gina London shares her tips for negotiating a comprehensive and competitive benefits package. You did it. After how many rounds of interviews and follow-up meetings, you have finally been offered the job. Congratulations! Now all your research, role-play sessions and diligent preparation work is over, it’s time to settle into the role. Wait a minute. What about your salary and benefits package? Have you negotiated that? No? Then there is still much work to be done. If you’re one of those people who thinks you should just take whatever is offered, I have good news for you. In today’s hybrid, employee-centric marketplace, employers expect candidates to discuss their salaries and benefits. 1. Introduce negotiations when you’re offered the job If you feel uncomfortable reading this first tip, you’re not alone. While the research I refer to above states that 70% of employers expect to engage in negotiations with their would-be employees, the same research revealed that just over half (55%) of candidates brave the waters to negotiate their packages. But as someone who coaches and trains business professionals all over the world, let me give you some inspiration as to why you should join the few who decide to take that plunge. When you negotiate your salary, you are demonstrating to your manager that you are confident and comfortable discussing your value and worth. This kind of communication is likely what helped you land the job in the first place, so keep building on this foundation of strength. Your courage to initiate what many consider a difficult conversation is what will set you apart, establish you as a leader and position you for promotion. Consider, too, the other side of the coin. What happens if you simply accept, without any discussion, whatever salary or benefits package is set before you? You may be considered a follower rather than a leader. Even worse, depending on what you receive, you may be accepting a salary far below the market or your needs. Imagine, for instance, that you accept a wage 10% beneath your desired salary. If you’re later provided an average cost of living increase of 4% annually, it will take you more than two years to attain your original desired starting point. For those reasons and more, the positives of negotiating outweigh the negatives. So, let’s explore how to be as successful as possible during this process, even if you don’t move the monetary dial as high as you envision. 2. Understand your value The COVID-19 pandemic has clearly impacted the workforce. The International Labor Organisation (ILO) shows that unemployment remains at record-setting levels. This means you are valuable as an employer investment. You have more leverage than you may realise. Don’t forget to factor in your years of experience, level of education, leadership, and other related skills as part of that leverage. While the pandemic is still affecting the world’s economy, it doesn’t mean you need to steer clear of discussing your value in the ecosystem of your new company. The events that shaped our lives during the pandemic, and now beyond, have promoted both employers and employees to examine their career opportunities, culture, values, and lives. What is important to you? You likely want to be in a company that makes a difference. Employers, too, are looking for people who can positively influence their teams. That is a value in itself. Seek to define that. 3. Do your research While you’re putting a value on your own worth, conduct some research on the value of your potential new employer. Can you determine how badly they were affected during lockdown? Many companies lost revenue. If so, how are they doing today? Other companies continued to chart financial growth during the pandemic. They hired new team members, granted promotions, paid increases, and even provided year-end bonuses. Try to inform your research with as many sources as possible. Also, consider asking some of these questions as part of your interview. This will set you up nicely for your package negotiation. 4. Prepare and practice your negotiation conversation I work with my clients to understand that even their most seemingly informal, off-hand conversations become a part of their brand. Therefore, please understand that if you ultimately accept your new offer, your negotiation conversation will become a part of your employer’s perception of you. Your conversations are not neutral. They are positive or negative. Knowing this, seek to make this conversation a positive one. Start off with gratitude. Once you’ve been offered the job, thank your manager, HR professional and whoever else was part of the process. If you are asked what your anticipated salary would be, don’t limit yourself to a single number. State a range with a spread of about €10,000. Make sure your bottom range number is something you can realistically live with. Don’t low-ball yourself here. 5. Summarise your qualifications Remember how I suggested you understand your value? Well, here is where you need to not only understand this, but also be able to articulate it. Write out your points of distinction and rehearse these lines out loud. The more you can be clear and confident here, the stronger your case will be. 6. Make suggestions beyond money As companies move into the unchartered waters of hybrid working and other new workforce of the future models, here is your opportunity to suggest a range of benefits and ideas beyond the salary range you have already proposed. Consider discussing a possible signing bonus to compensate for accepting a lower salary than what you suggested. Can you nail down a work from home schedule? Annual leave days? Are there any other perks that your employer can come up with? Ask them for their own creative ideas. This is not a competition you have to win in one go. Rather, I encourage you to approach this conversation as a means of establishing yourself as an engaged and active employee who is a confident and courageous leader – not only for your teams, but also for yourself. If you keep your composure, you will plant positive conversation and leadership seeds that will grow over time – regardless of whether you land the salary and benefits package of your wildest dreams. Gina London is CEO of Language of Leadership, LLC. She guides global companies and executives to better connect and engage with their employees, their boards and themselves. Her Fortune 500 clients include Salesforce, Oracle, Google and more. Gina is an Emmy award-winning former CNN anchor and correspondent. You can read this article and others in Career Guide 2021/2022. 

After nearly two years, it can still be difficult to conduct meetings online, especially when they are as important as a job interview. There are a few key actions you can take to mitigate any disasters, writes Tina Kinirons. 1. Dress as for a face-to-face interview  The usual recommendation for interviews is to dress in formal or business attire. This still applies for online interviews. Yes, the interviewers can only see your head and upper body – but it’s still important that you dress for the job you aspire to. Make sure you are comfortable and confident in what you are wearing. 2. Keep your background uncluttered  Try to keep the background that is visible on the screen to your interviewers as neutral and uncluttered as possible ensuring there are no distractions for your interviewers. It’s worth checking what’s visible on your screen when you are sitting in the place you plan to do your interview. You should avoid a virtual background, as they can look a bit fake and can usually be detected by the human eye. Find a quiet place that has a neutral background instead. 3. Make sure you are well lit  Cameras need good lighting to show you properly on screen. That might mean turning on your lights, opening or closing blinds, or bringing an extra light into the room. You should be prepared for a sunny or dark day. Test your lighting beforehand to make sure you are clearly visible on-screen. 4. Make sure you can be heard Many of the microphones integrated into devices don’t have good enough sound quality for an interview. Test it out to check that you can be heard clearly. A set of headphones can make a big difference to how well the interviewers can hear you, so buy or borrow a set. 5. Be aware of your camera The equivalent to looking an interviewer in the eye is to look at the camera instead of the person on the screen. It’s important to keep looking at the camera and at the interviewers, as you can pick up on body language cues from them in the same way you would in a face-to-face interview. Adjust your camera by putting your laptop on a few books or adjust your seat to get the camera in line with your eyes and include your shoulders and a bit of your upper body in the frame. 6. Ensure there are no distractions Think about where you will conduct your interview and how you can make sure there are no distractions and no noise. Consider putting a sign on the door (of the room and house) stating you need quiet, and find a spot that doesn’t see any foot traffic while you’re at your interview. 7. Have a good internet connection Test Zoom, Teams, WebEx or whatever platform you will use for the interview in the morning before the scheduled time. Is your internet connection usually stable from where you will conduct the interview? If it’s not very reliable or fast enough, move. The interviewers need to be able to hear and see you clearly. 8. Practise talking online if inexperienced Try out the online environment you will use for your interview. Get comfortable talking online if you are not already using an online platform for meetings. You need to be focused on the interview questions and your answers, not worrying about the technology and your use of it.   9. Fail to prepare, prepare to fail Planning and practicing apply to all interviews, whether online or not. Plan out your interview examples and decide what best demonstrates which competency. Remind yourself of the details of your examples from your previous work and practice describing them out loud. Don’t let the first time you hear yourself speak your answers out loud be at your interview. 10. Be early  Same advice as for face-to-face interviews – get there early to avoid any last-minute panics. Logging in before the scheduled time will ensure you can connect to the meeting, there is no issue with your internet connection, and that you have the lighting right. Tina Kinirons is a business psychologist and interview coach.  You can read this article and others in Career Guide 2021/2022. 

Artificial intelligence is commonly used by organisations to find their interview shortlist. Miriam Magner Flynn explains how you can optimise your CV so it gets noticed by both the software and hiring manager. When applying online for a role, your CV will probably be passed through an applicant tracker system (ATS) powered by artificial intelligence (AI), which will screen suitability and help determine whether you make the interview shortlist. Even if you ‘cleverly’ manipulate your CV to ‘beat the tracker’ and make it to the shortlist, at the end of the day, you will be faced by a human. They will dig deeper into your competencies, achievements, and experience. Therefore, it’s important to optimise your CV to make the shortlist rather than attempt to ‘beat the tracker’, irritating the recruiter and setting you up for disappointment. The three key considerations when optimising your CV are format, word match and impact. Let’s look at each. Format When it comes to formatting, keep it simple. Tables and graphics confuse some trackers and cause sections of your CV to be overlooked. Have a crisp, professional layout that is easy to read, maximises space and is not cluttered. The optimum length of a CV (a common question asked of our coaches) is one or two pages. Many ATS use signal-to-noise ratio, which means that pertinent information (signal) is weighted against irrelevant information (noise). So, less text can increase your resume’s relevance.  Word match It sounds obvious, but take the time to match the exact language of the job description when you are listing your skills, education and experience in your CV. Be sure to include a combination of your technical, industry and people skills, as well. For example: Technical skills include competencies such as project management, data analysis and report writing. If essential to the role, include your proficiencies with specific systems and tools. Industry skills are specific to the function performed within the given industry. For example, in financial services, your function might include taxation. You should list your area of expertise, such as corporation tax, payroll, VAT etc. If yours is a specialised role, like derivatives, list the assets you deal with such as bonds, commodities, currencies, stocks, etc. People skills cover interpersonal and relationship skills. Be specific. Don’t rely on the generic ‘communication’ skills. Instead, break it down. Consider your true strengths. Match your strengths to those listed as important in the job specification. This also covers relationship building, stakeholder engagement and managing/leading people. If you manage people, do you cover the full gamut of recruiting, hiring, onboarding, developing, mentoring, coaching, reviewing performance, disciplining, downsizing?  Most ATS use frequency as a factor – the more often a skill or keyword appears, the more important it is deemed – and that is reflected in the match rate. However, don’t overdo it. Think of the human that will read it later. It can be helpful to create a ‘master’ CV which outlines your proudest achievements and includes all your key skills. When applying for a role, simply ‘tweak’ your master CV to match the language of the job specification. Finally, ATS will check for occurrences of the job title of which you are applying. If you haven’t held that job title previously (chances are you haven’t – this may well be why you’re applying!), don’t pretend you have. Similarly, don’t include skills on your CV that you are not sufficiently competent in purely to ‘beat the tracker’. Address any gaps in your cover letter or executive summary. These will be passed through the ATS, as well. This is where you can refer to the exact job title, repeat the key skills that make you a great fit for the role, mention skills you may lack, and explain how you intend to address the shortfall. In this way, the job title and your less competent skills are counted in the word match. You will not only be seen as honest, but you will have presented your willingness to develop. Impact AI, as the ‘I’ suggests, is a lot more intelligent than a simple word count. It tracks impact or ‘measured’ results. Listing your skills highlights what you can do. Listing your achievements, including the scale of your responsibility and quantifying your results, highlights the impact you’ve made. For example, if you lead a team, how many people? If you recommended a process improvement, what was the effect? If you influenced a change in strategy, what was the consequence? If there is a tangible result, be proud, own it and include it. To optimise your CV, focus on quantifying (using numbers) and qualifying (using keywords like ‘increased’, ‘reduced’, and ‘saved’) your achievements rather than listing your duties and responsibilities. Top tips Create a ‘master’ CV that outlines your proudest achievements and includes all of your key skills. When applying for a role, simply tweak your master CV to match the language of the job specification. Consider professional help from an expert who can help you shine. At Career Decisions, for example, all career transition coaching programmes include access to the PowerMyCareer career portal. This portal includes tools to analyse your CV, score alignment for specific job postings, and help you optimise your keywords for search engine visibility. Miriam Magner Flynn is Managing Director of Career Decisions, an award-winning coaching firm that specialises in career transition coaching, also known as outplacement. Miriam is a leadership, career and change strategy expert who has led some of Ireland’s largest career transition and executive coaching programmes. You can read this article and others in Career Guide 2021/2022. 

Tana Storani explains how to build a pandemic-proof personal brand that will boost your career as the hybrid working model emerges. A brand is a figurative representation of a product or service. You are also a brand. Your personality, network, communication style, education, know-how, and experience is packaged in a title, such as Chartered Accountant, and sold to the market. Your personal brand is essentially a combination of your image and reputation. Branding is the management of a company’s image and reputation, aiming to make it more desirable and positive in the minds of its customers and the general public. The goal is to differentiate the brand. Similarly, personal branding is the act of developing the strategy and actions to guide and manage your brand to either advance your career or be chosen by potential clients. It is acting and positioning yourself in such a way that your audience clearly understands who you are and what you offer. To thrive in this new hybrid environment, where virtual is the ‘new frontier’, it is important to adapt to the new business models and ways of working. To do so successfully, you must strategically develop a hybrid personal branding strategy and project your image and reputation to your target audience to set yourself apart. In other words, you cannot simply go back to the old way of doing things — the post-pandemic world will be a combination of online and offline, whether you like it or not. I have helped individuals and companies unlock their full potential through personal branding and professional innovation since 2012. I do this through the ten golden rules of personal branding in a hybrid world, which are: 1. Create a strategy: Develop an online and offline personal brand strategy and stick to it. Use the Personal Branding Canvas to develop your personal brand strategy. 2. Complete your LinkedIn profile and create a personal website: A personal website and completed LinkedIn is the crux of your personal brand. Your target audience will research you on LinkedIn before deciding to work with, hire, or recommend you, so it’s crucial that you do more than the bare minimum. Don’t simply complete the core steps in creating your LinkedIn profile or build a basic, bland website. Be compelling. 3. Gather virtual recommendations: Saying you achieved phenomenal results in a unique way is one thing, but having the beneficiary publicly sing your praises is quite another. Word of mouth is always good, and having virtual recommendations on LinkedIn, websites, and internal groups is essential. 4. Determine your efficient time: This is the percentage of your time that could be used more productively for tasks other than meeting clients in person. Instead of travelling to visit clients, what if you used part of that time to network or seek new prospects? To determine your percentage of efficient time, identify the number of hours you wished you had available each week to be more productive through tasks other than face-to-face meetings. 5. Implement criteria to determine what meetings can go virtual: Look at your agenda for next week and decide what client meetings should go virtual to free up more efficient time for the goal you created. Create defined guidelines. For example, all first meetings with new potential clients are face-to-face, but if the decision-maker attends via video link, you should too. 6. Use CRM software: Humanising your service ensures that all strategies, whether digital or offline, are accurate and achieve the best possible result. Using a CRM system will help you optimise your daily schedule and prioritise tasks, ensuring customers are not ignored and key prospects are contacted on time. 7. Make contact easier using technology: In the hybrid world, virtual selling essentially becomes selling. With that in mind, it is important to ensure you have a clear call to action or an easy contact route for your network. For example, use the WhatsApp tab on your website to enable contacts to reach you without thinking twice. 8. Ask your target audience about their preferences: If you are an entrepreneur or a member in business, your network likely wants solutions that deliver measurable and valued outcomes online or offline. So first, understand their expectations, preferences, and current situation. Then, use technology to offer a broad range of virtual options to cater to their needs. That way, you will become known as a solutions-focused Chartered Accountant who is a pleasure to deal with. 9. Network: Participate and speak in online and offline events. By networking and building relationships regularly, you’re constantly engaging with new people that have the potential to shape your brand by offering new opportunities for personal and professional growth. You can either create your own event to participate in or join an industry event on Eventbrite. Also, develop partnerships that will allow you to host or manage online events where your name will be highly promoted. Whether you’re comfortable with it or not, public speaking is a tried and true way to extend your personal brand. 10. Social media is a MUST: According to Statista, over 3.6 billion people use social media worldwide. Social media creates excellent opportunities for personal branding efforts, both for personal and corporate purposes. Well-planned brand management on social media creates value for your brand – from creating posts to interacting with followers, it all contributes to a solid social media presence which, in turn, contributes to a solid personal brand. These ten rules will help you achieve recognition in your career and even greater results in your business, especially in this new hybrid world. Good luck as you prepare for 2022! Tana Storani is the Founder of Storani Careers and a former recruiter for LinkedIn and HP. Tana specialises in personal branding, career strategy, and leveraging LinkedIn for professional growth. You can read this article and others in Career Guide 2021/2022. 

Neil Curran explains how you can balance connectivity with flexibility as employers plan and refine their post-pandemic working models. The afternoon chit-chat over the coffee machine, office gossip over the water fountain, and the race for the last parking space in the morning… it’s exciting for many to be returning to the office. However, our return to the office will never be the same as hybrid working emerges as the new normal and we seek to balance flexibility with connectivity. Here are some tips to help you leverage the new working model to maximise your workplace engagement while achieving your career goals. Check in with your career plan With businesses adjusting to the changes brought about by the COVID-19 pandemic, you may not have focused much on your career since March 2020. Or perhaps your manager wasn’t ‘in the zone’ for career conversations, especially if your business was going through change. Re-evaluate whether your goals align with your career aspirations, which may have changed since the onset of the pandemic, and consider whether the steps to success need to change. Now may be a good time to engage with a mentor or coach. Be an early adaptor This is a tip that people can and will struggle with, but early adaptors are likely to be the ones that set the scene for the hybrid workplace. So, create the new normal for yourself and reset expectations for your team and manager. We are in new territory, and the workplace is crying out for early adaptors to test what works. This means setting expectations with others as to what your hybrid work style looks like. Communication is critical. Let your manager, peers and stakeholders know when you will be available in person and the hours you are working where relevant. Don’t create a stigma between in-person working and the days you work at home. The pandemic has shown us that people are as productive, if not more productive, when working from home. So, create a perception that homeworking days are regular workdays. Perception is reality in the workplace. Relearn how to socialise It’s important to adjust your communication style to reflect the different demands of the hybrid working environment. Conscious communication, where we communicate with intention, will be a critical skill. Let’s break it down into its key components. Active listening We are all able to listen, but it doesn’t mean we listen all the time. Consider the conditions for effective listening when communicating – not just when you listen, but when you need others to listen too. Consider the appropriate communication method, the time of day, environment, and language to get your message across. If you wait until you are back in the office to communicate important things, you risk selling yourself short. Be aware of your language With the obstacles hybrid working brings, it’s essential to be mindful of how our intention doesn’t always align with interpretation by others. Most of us aren’t aware of our communication style, but we all have cultural and personality traits that influence the words we use. For example, auxiliary language (should, would, could, etc.), lack of assertion with saying no or yes, and making assumptions about those we are communicating with can distort intention and interpretation, thus undermining credibility. Out of sight doesn’t mean out of mind The need for strong relationships will continue in the hybrid model, and we need to balance how we adapt to it. This applies to both formal and informal interactions. In a hybrid workplace, there is a risk that we will keep office communication to a minimum on our homeworking days. This shouldn’t be the case. In fact, with expectations that Monday and Friday will become popular days for homeworking, these are prime days for informal and formal communication. Informal communication, such as asking colleagues about their weekend plans, serve relationship maintenance. (Pro tip: when asking a colleague what their weekend plans are, be specific when asking them on Monday how their weekend was. For example, ask, “How was the hike in Glendalough?”) With formal communication, don’t restrict scheduling important meetings to office working days only. Get the balance right. Similarly, when it comes to one-to-one meetings with your manager or other key stakeholders, don’t cancel meetings if you are homeworking – even if the agenda is light. Checking in with others keeps relationships in check while also presenting an opportunity to catch up on non-essential items. Audit your advocates and support framework As a result of the pandemic, many of us have had infrequent connections with people. Our social capital may have dwindled as a result. Advocates are people who speak highly of you and can be found in your organisation, your sector, and your network. As we move through our careers, we collect advocates who speak positively about us when we are not in the room. It is therefore essential that we audit our advocates to see where improvement is needed. Be the change you want to see It will take some time before the pendulum settles in the hybrid working environment, but that doesn’t mean we shouldn’t be thinking about how our career plan will shape up in the future. Yes, we have extra plates to spin – on top of work/life balance, we have homeworking versus office-based considerations. However, now is the time to shape that engagement while keeping our finger on our career development pulse. Neil Curran is a corporate trainer and professional improviser specialising in effective teams and authentic communication. You can read this article and others in Career Guide 2021/2022. 

Ed Heffernan outlines the five main trends in the world of work, and explains why 2022 may be less disruptive than the recent past. It has never been a better time to be a qualified professional. Pent-up demand for talent shows no sign of weakening; employers are increasingly flexible in terms of the background they will consider; hybrid working models look set to stay; and as organisations are getting ambitious about tomorrow again, there is ample opportunity for internal promotion or development in large swathes of the market. The COVID-19 pandemic has catapulted the world of work ten or more years into the future, and it might be one of the few positives we can take from what has been a trying time for so many. As we look forward to 2022, we expect some trends to continue and others to emerge. 1. Hybrid working models will become embedded and will be a crucial trading variable in talent attraction and retention. While some organisations will exist in the extreme (100% work from home or 100% work in the office), most organisations are landing on a 3:2 working model with three days in the office and two days working remotely. New joiners will likely build up to this over time (as there are definite advantages to being in the office more while learning the role). Individuals who have earned the right will likely enjoy even more flexibility with tenure. Companies that vary significantly from this model will find themselves highly uncompetitive in terms of both talent attraction and retention in the future – fact. 2. Virtual interview processes are here to stay, but in-person interviews are not gone forever. In 2019, very few companies hired people without a face-to-face meeting. Today, very few companies hire people with a face-to-face meeting. In the coming year, virtual interviews will dominate the early stages of the recruitment process. In-person meetings will then return for the final stage of the process – for the comfort of both hiring managers and candidates alike. Entirely virtual hiring processes worked fine when people worked full-time from home, but hybrid working will result in a hybrid recruitment process. So don’t throw out the office attire just yet! 3. Salary inflation will become a reality. When demand exceeds supply, the price of goods inevitably goes in one direction. The same applies to services, and what is work but a service. We currently see some sporadic inflation in areas of high demand (such as newly qualified accountants’ base salaries shifting by up to €2,000 on the €55,000 base that held firm over the past five years). It is inevitable that, in 2022, we will see between 5-10% inflation in base salaries in high-demand professions. This is not necessarily good news from a macro perspective, as it will have knock-on consequences for the supply chain and may dampen demand into the second half of 2022. Higher base salaries, however, are inevitable. 4. The Great Resignation might have a very different meaning in Ireland. Unlike other countries, we have not witnessed The Great Resignation quite the same way. It could be said that, for many, The Great Resignation has meant a resignation to the fact that people will stick with their current employers rather than resign. People have working patterns now that could be hard to replicate in a new company. Those who have been looked after by their employers over the past 18 months have a heightened sense of loyalty. People often feel more secure staying in their current role in times of uncertainty, and job security has been identified time and time again as a critical factor for candidates over the past six months. This will not last forever, but it is likely here for the first half of 2022 at the very least. Sometimes, it’s better the devil you know… 5. Notice periods will be extended. Three years ago, a one-month notice period was the norm. Sure, there were exceptions where people had to give two or even three months’ notice, but they were outliers. These days, one month’s notice is the outlier. This is likely driven by several factors: difficulty in hiring, time to set people up remotely, longer induction lead times etc. A significant number of companies have changed their notice periods in reaction to a longer lead time to replace and on-board. Two months’ notice is the norm these days, and we expect this trend to become even more evident in 2022. It simply makes sense. Other things are likely, too. Temporary staff will become increasingly difficult to source and retain for the contract duration as there’s too much competition from permanent roles. Work from home allowances and set-up costs will become a material element of salary packages. Annual leave days will become an increasingly important consideration – the statutory 20 days will not cut it in 2022. Start times and finish times in the working day will become more fluid – we’ll see an increase in companies citing “core hours” and allowing flexibility, assuming a contractual number of hours are worked per week. Company and team days will become increasingly frequent as organisations strive to keep people connected, reinforce culture, and share information usually learned at the water cooler. I could go on, but I won’t. In 2022, we expect a little more consistency and less change in the world of work. Existing trends, as outlined, will continue and embed themselves in the system. Other trends will emerge, but they are less likely to be as significant or impactful as the change that has gone before. 2022 will be more about embedding the patterns that have evolved over the past two years and setting a firm foundation for what work will look like long into the future. Probably. Ed Heffernan is Managing Partner at Barden. You can read this article and others in Career Guide 2021/2022. 

Faced with the possibility of hefty fines, organisations are taking legislation such as GDPR (General Data Protection Regulation) seriously. But how clear are privacy and other transparency notices? Liam McKenna warns organisations about the perils of muddying the waters of transparency. As a fundamental principle of data protection and ethical business, transparency is a critical concept that must be constantly worked on and improved. From recent actions and regulations, we have seen that it is essential for organisations to implement the correct processes to deliver accurate and relevant information to individuals. Why is transparency important? From a data protection point of view, organisations must comply with GDPR. It is also essential for individuals to receive sufficient information to decide whether they want their personal data processed by those organisations. In addition, transparency has grown in importance in recent regulations, such as the gender pay gap and environmental and social governance, which require transparent reporting from organisations. One of the most important reasons for ensuring adequate transparency is trust. Consumers place more importance on their trust in organisations before deciding to purchase, set up an account, or share personal data. GDPR outlines the information we need to provide to individuals, including receiving their data from a third-party. The European Data Protection Board (EDPB) provides guidance on the correct methodology when presenting this information. The core concept is that we need to inform people: what we do; the data being used; why it’s being used; who the data is about; who the data will be shared with; how long the data will be kept; and how people can access their right to their data. This information must be provided using plain language, considering the target audience, and in a manner that is easy to access and navigate. Unfortunately, many privacy/transparency notices are very legal and use complex language that most people will not understand. They are also challenging to navigate, resulting in continuous scrolling before reaching the desired information.  How do we become transparent? Before creating privacy notices, you must be fully aware of all your processing activities. This means undertaking a Record of Processing Activity (RoPA) exercise. An accurate RoPA should contain most, if not all, of the information required in the privacy notice.  Once you have all the required information, you must choose the correct language for your privacy notice. It must be unambiguous but also targeted to your audience. If you anticipate that people under 18 will use your services, for example, younger people must understand the notice. Similarly, if you provide services for people to learn English as a second language, the language used in the privacy notice should be easy to understand. The EDPB has good guidance to ensure that your privacy notice meets GDPR requirements. It is available on the EDPB website. What happens if we are not transparent? Recent actions taken by regulators across Europe, especially the Irish Data Protection Commissioner (DPC), demonstrate the repercussions of getting this wrong. One example of this is WhatsApp, which received a fine of €255 million – part of which was for transparency violations. After an extensive investigation, the DPC found that WhatsApp had not met its obligations to provide the required information. Similarly, Facebook has been issued with a notice of intention to fine up to €36 million for similar infringements. Consumers are becoming more aware of their privacy rights and expect certain standards. For business-to-business organisations, having a bad privacy notice or other transparency information can result in consumers exiting the sales process. There is a risk that business may be lost before there is a chance to discuss it. Continuous compliance In 2018, there was a rush to push out privacy notices on websites and information booklets across the EU. Some organisations have not revisited these since; others have updated them but have not had them reviewed by a third-party. Transparency efforts must be continuous and form part of compliance monitoring processes and frameworks. Organisations should review their notices to meet the requirements and deliver value to their customer and stakeholders. Liam McKenna is a Partner in Consulting at Mazars.

The new industrial revolution, centred around ESG, is just beginning. Conor Holland outlines what organisations need to do to be part of this exciting new economic change. A new economy is emerging, driven by profound changes in technology and the increasing pressures associated with climate change and changing societal expectations. COVID-19 has accelerated changes in how we live and work, with enhanced digital integration and a greater focus on the resilience of company operations. Indeed, the context in which organisations now operate has been transformed by climate change, biodiversity loss, and an increased focus on companies’ role in addressing broader societal challenges such as diversity, equity and inclusion. Consequently, the role of business in helping solve these issues is more critical than ever. As a result, environmental, social, and governance (ESG) matters have become a top priority on board agendas. Companies increasingly recognise that they operate as part of an ecosystem with permeable boundaries and are interconnected with various stakeholders. Prepare for a low-carbon economy Businesses must consider the implications of transitioning to a low-carbon economy and how it will impact their business models, products, operations, and financial performance. This message was underscored during COP26, where it was clear that the institutional investment world is starting to exercise significant influence through investment policy and demand increased climate focus from investee companies – including private companies as much as public companies. Crucially, transitioning to a low-carbon and climate-resilient economy will involve significant financial opportunities as businesses leverage new renewable energy technologies to displace carbon-intensive processes and identify other crucial disruptive innovations across all industries. Ultimately for businesses, ‘going green’ is not just a matter of saving the planet; it is about pursuing economic growth and development that is strategic, resilient, and sustainable. ESG integration Organisations should interact with all stakeholders, including clients, employees and their communities, to understand the context in which they operate. This means creating a strategy that integrates shareholder and stakeholder value and aligning managerial incentives with the company’s core purpose. In addition, strategic priorities and internal investment decisions should support key drivers of sustainable, long-term value creation and focus on culture, talent development and branding. To ensure that businesses maximise value creation, management and directors must reformulate how they measure success. ESG factors must be integrated and internalised into governance, strategy, operations, and performance management and ultimately reported and assured to be fully effective. Therefore, organisations should consider how robust their ESG reporting framework is by ensuring that it effectively discloses quantitative and qualitative information while equally providing relevant and reliable information to their stakeholders. Reporting and assurance In response to the growing stakeholder demand for ESG information, many organisations are already preparing for future sustainability disclosures by identifying the metrics most material to their sector, strategy, and stakeholders and developing the associated infrastructure to facilitate reporting on those metrics. Moreover, as companies report and disclose more ESG information, they should expect a sharpened focus on the accuracy and reliability of their disclosures and metrics. Management must develop appropriate processes and controls, similar to financial reporting, and consider undertaking ESG reporting readiness assessments to comply with the new regulatory obligations. We are on the cusp of a radical transformation in how we live and work. Businesses are expected to measure, manage, and report a holistic view of enterprise value, measured by a broad capital base (financial, human, intellectual, social and natural). Those corporations that align their goals to the long-term objectives of society are most likely to create long-term sustainable value while driving positive outcomes for business, the economy, society, and the planet. This is the sustainability revolution. Conor Holland is a Director of ESG in KPMG.

Having a diverse workforce helps organisations flourish. This is why diversity, equity and inclusion (DE&I) must be at the heart of recruitment and hiring. Shay Dalton explains what can be done to help promote DE&I and overcome bias in this field. Diversity and inclusion are now at the forefront of organisations’ strategies for improvement and growth. Businesses everywhere strive to be more inclusive of prospective employees regarding gender, age, ethnicity, sexuality and more. To increase diversity and reduce bias, one must look at every stage of the hiring process, from screening CVs to making an offer. It must then carry on to when prospective employees become actual employees who feel included and not discriminated against in the workplace. Outlined below are a few things that can be done at all stages of employment to encourage greater diversity, equity, and inclusion (DE&I) in your organisation. Ensure your interview panel embraces diversity Be mindful of who you have on your interview panel. It’s probably not a bad idea for a prospective employee to meet as many team members of various ages, genders and races as possible to help them understand the business. Naturally, this may not always be possible depending on the current diversity of your team, but it can shine a positive light on the culture and ethos of your team. Don’t Google your candidates We’ve all been guilty of it, but if you can avoid Googling candidates before their pre-phone screening, it will do wonders for reducing unconscious bias. As well as not looking into a candidate’s online presence, a first-round interview should be conducted by phone. While video may be useful to create a good atmosphere in later stages, completing the first round by phone means the chances of unconscious bias by recruiters or talent acquisition are minimal. Use inclusive language Creating a supportive dialogue and using inclusive language can help your employees feel comfortable and generate a more diverse candidate pool. Incorporating this type of language in important messaging is proven to increase productivity and improve employee morale within the workplace, so it is worthwhile to establish solid principles for consistent use. You should regularly check all marketing collateral and, in particular, job adverts that will go out on behalf of the company to ensure inclusive language is being employed. Ensure top-level management are on board Strategy and communication supporting diversity and reducing bias must be implemented from the top down. Therefore, hiring managers, team leaders, and managing directors must understand the DE&I strategy and how best to utilise it when building and motivating their teams. Implement strategy into daily working life You can have a solid DE&I policy and a strategy committed to eliminating unconscious bias, but there is no point talking the talk if you don’t walk the walk. These ideas and the overall ethos must be embedded in the organisation’s daily working life and culture. Otherwise, they are meaningless. Running regular company events, culture nights and focusing on clubs and societies centred around relevant DE&I topics puts the ideas into practice. Furthermore, it is necessary to increase awareness of these areas. Shay Dalton is Managing Director at Lincoln Recuitment.

There has been a considerable change in the way consumers want to spend in recent years, both in shops and online. Organisations need to keep up with these spending trends; otherwise, they risk being left behind. Owen McFeely summarises what organisations need to do. The events of the last two years have changed how we live, work and shop. The evolving Irish consumer is responding to the current macroeconomic challenges by increasing: focus on savings, price sensitivity, purchasing online via multiple channels, customer service expectations, and environmental, social and governance (ESG) expectations. Consumer sentiment is fragile. Around half or more of Irish consumers expect no change in their spending over the coming six months compared to the previous six months. Understanding these new and emerging consumer nuances and the sometimes fragile nature of this consumer optimism is critical. The channel of choice For leaders looking to drive customers either into stores or online, analysis of our survey findings uncovered specific factors that are strongly linked with a tendency to shop via specific channels. Therefore, understanding the interplay between these different channels is vital to growing revenue. For example, making purchases possible via social media could help drive a greater propensity to shop online, as could offering efficient delivery or collection services. Data privacy is key to consumer trust Personal data protection is the key factor in building brand trust. While other factors such as exceptional customer service and sustainability are vital attributes for driving trust among Irish consumers, data protection is non-negotiable. Further, ESG factors are increasingly important to Irish consumers when it comes to building trust. However, other factors such as sharing discounts and offering a seamless customer experience (which affect consumers in a more obvious, direct way) are highly valued. Businesses can build a system of privileged insights, but only if the value they offer resonates with consumers, and these consumers trust them to make good use of their data. Consumers care more about sustainability than ever before There has been an increased focus on eco-friendly consumerism compared to six months ago. Consumers want to do the right thing for society and the environment. However, products can’t be one-dimensional when it comes to consumer expectations as they must satisfy more complex consumer needs. Irish hybrid workers show the most interest in sustainable shopping with better lifestyle choices, staff wellbeing, and supporting local communities used to form purchasing decisions. Key actions businesses can take now Data protection Customer awareness and expectations concerning data protection continue to grow. Therefore, we recommend the following steps to gain and maintain customer trust: Basic data protection hygiene: It may sound obvious, but some organisations still fail to meet the public-facing hygiene factors in relation to data protection. Ensure your website cookie banner and preference centre are compliant. Ensure you have an up-to-date privacy statement or notice and a clear mechanism to deal with data subject requests. Data trust: Poor data management practices can result in incidents that cause reputational damage and erode trust. Review how you manage data across the data lifecycle against good practice standards, making sure you only collect what is needed, securing the data while in your possession, and ultimately disposing of it when it has served its purpose. Third parties: Don’t forget that much of your data may reside with third parties. Implement robust governance across the third-party lifecycle, from procurement to exit management, to ensure your vendors do not put your reputation at risk. Environmental, social and governance strategy (ESG) With growing consumer and investor pressures and the need to comply with regulatory requirements creating new business challenges, this is an area that needs to be fully understood and planned for. ESG presents opportunities to develop a competitive advantage, although the risks need to be mitigated. Three critical areas of focus are: Strategy: Are the risks understood and quantified? Does your business have a clear ESG strategy? Is there senior leadership ownership and accountability? Is the plan understood and communicated across the business? Reporting: Are the reporting requirements understood? Is the required data available? Is there ownership for the necessary measurement and reporting? Operational: Are the necessary operational plans in place to support the ESG strategy? Are the necessary measurements in place to track progress? Digital strategy Building an integrated digital and operational strategy is essential to providing optimal customer service. Key areas of focus include: Customer insights: Is your planning informed by the latest customer insights, and does it also take account of macro trends that will drive change? Have you assessed current platforms against emerging trends? Process automation: Have all opportunities to apply process automation been assessed? This creates efficiency opportunities and also helps mitigate labour shortages. Road map: Is there alignment on the short-term, medium-term, or long-term plan? Consumer and investor trends are changing at a fast-paced rate. So if businesses want to stay ahead of the curve, it’s essential to keep up – otherwise, they risk being left behind. Owen McFeely is Director of Retail & Consumer Practice at PwC.

Networking isn’t just about increasing sales. Done properly, networking can enhance your skillset and put you in contact with a like-minded community who will support you. Jean Evans outlines six benefits networking can bring. Most guides to networking focus little on the intangible benefits of networking. Here are six unexpected Cs you’ll get when you put the effort in to network properly. Confidence Learning to network for business can boost confidence. While in your day-to-day you may manage a large team and feel confident in your work and ability to deliver through them, when you network, you only have yourself to fall back on. There is messaging, no jargon, no marketing speak, or company strategies. Over time and with practice, you will feel your confidence grow as you meet people, connect with them with sincerity and find your own voice. Clarity Many people start their networking journey with one thought in mind: more clients and sales. But they aren’t clear on who these clients could be. At a networking meeting, they want to talk to anyone who might need their services. As they network, however, their thoughts develop and evolve. They meet people who see their business differently, who spark creativity and widen their perspective. This all creates clarity of messaging, clarity of purpose, clarity around who their target customers are. Communication A part of joining networks is the elevator pitch you’ll have to give about your business. Sometimes, there is a speaker rotation for companies to do a more in-depth presentation that will last 10 or 20 minutes. For people who are not used to presenting, this can seem daunting, but this is a way to bolster your communication skills. By utilising your newfound confidence and clarity of purpose, you will be better equipped to communicate what you and your business are all about. Collaboration When you go to a networking event or meeting, there will likely be regulars in the room – but you often find guests there too. With new people, new ideas can be created. For example, a new idea might be espoused to create a new venture, a joint venture, or a new collaboration. Community and camaraderie Finding the right networks means that you’ll find your community. You’ll find a group of peers who support you, lift you up, who want to see you succeed. These people will be your sounding board, the board you can’t afford to lose once you have them. Every career has its ups and downs and curveballs, but it’s made easier when you have a community of people lifting you up. They want to see you succeed. They have your back. Whether it’s meeting for coffee, a testimonial, or a (virtual) hug, having a community is critical to your success. Jean Evans is a Networking Architect and Founder at NetworkMe.

With the uncertainties brought about by COVID-19, the finance team’s financial planning and analysis function was thrown into the spotlight and, in some cases, was found wanting. Deepak Chaudhari explores what FP&A teams can do to maximise their talents and capabilities in the future. When the COVID-19 pandemic triggered extreme uncertainty, financial planning and analysis (FP&A) within the finance function played a key role for organisations from strategic and operative perspectives. As the ‘fog light’ of the organisation, FP&A aims to provide accurate outlooks on top-line and bottom-line views, from sales to cash-in-hand and adapting to a turbulent environment. With further proof of its criticality, there is a renewed emphasis on FP&A functions. In addition, many teams are revisiting their current operations as they look toward further growth. Here are four results from a recent Global Financial Leadership by Tata Consultancy Services study to help leaders understand organisations’ critical issues. FP&A capabilities are falling short Current FP&A capabilities are falling short, with nearly half of finance teams struggling to perform essential forecasting and budgeting functions consistently and accurately. 50% of respondents regularly fail to deliver short-term forecasts or make significant errors. Current skills are also proving insufficient for the increasing demands on FP&A, including the ability to use advanced data analysis. What’s more, only 54% say their teams possess sufficient risk assessment capabilities. Finance leaders are relying heavily on their own intuition and that of others. These executives estimate that, on average, 43% of their financial planning and forecasting relies on intuition instead of data and analytics. Those with advanced FP&A capabilities are reaping the rewards A small group of finance executives are leading the way, however. Making up only 6% of the total respondents, they have more mature digital capabilities, operate in a more agile manner, and demonstrate greater use of artificial intelligence and machine learning. They are moving beyond intuition-led decisions, using data and analytics to drive fact-based decision-making. Those who advance their FP&A skillset will decide where the sector is going while bringing new success to the business. Organisations are increasing technology investments Most organisations plan to increase technology investment to shore up current FP&A gaps, including improved scalability to manage new business demands and gain visibility and insights. Findings from the study concerning technology investments indicate that: 69% of respondents plan to increase investments in cloud-based systems over the next 12 months, while 63% have already increased investments in cloud-based systems in the past year. 67% plan to increase investments in data and analytics over the next year, while 61% said they already did so within the last 12 months. From awareness to action Even before the pandemic, many FP&A teams struggled to provide agile forecasting and analysis to enable smarter decision-making in the finance function and throughout the business. COVID-19 further exposed those weaknesses, and now they must be fixed. New technologies, particularly in the data and analytics field, will help the FP&A function evolve. But they will also need to invest in the skill base, whether internally or via arrangements such as shared services. The finance function can enhance its position as a growth enabler and strategic partner to the rest of the organisation. Improving risk-assessment capabilities will ensure that the function is better placed to protect the business. Deepak Chaudhari is the Head of Tata Consultancy Services Ireland. You can view the full report here: https://on.tcs.com/gfls

Julia Rowan answers your management, leadership, and team development questions. My team works hard and to a high standard, but a couple of people on my team turn every team meeting into a moan about the company. I’m worried that this will affect new team members. The company is a pretty decent employer. What can I do? A. It seems that there are two issues here. First, dealing with the moaning (I will use your word here) and second, making sure that it does not affect new team members. Let’s deal with them separately. When team members moan, our natural tendency can be to jump in, explain, defend, etc. And sometimes that may be the right thing to do, but there is often a “yes but” no-win game being played. There are a couple of things you could do. You could just listen, thank the team member and move on without comment. Or you could listen and ask, “who do you need to talk to about this?” or “who needs to know this?” Or you could have a one-to-one with the moaning team member and try to get under the issue. Only do this if you can be genuinely curious. You could ask questions like “how does that affect how you show up?” and “how can I support you here?” Many people work hard and moan hard, in which case I would praise them for working hard despite their misgivings. If you have a good conversation, you could share your concern that their negativity affects new team members. Loud complainers can create a strong gravitational pull, and you are right to be concerned about their impact on new team members. Make sure to spend plenty of one-to-one time with the new team members, opening up a two-way dialogue, establishing a good feedback relationship, meeting with them regularly, talking about their development, etc. The manager-employee relationship is the most important relationship at work – make sure it’s a good one. I feel my team regressed in the last work from home period. Now we’re working from home again, what can I do to hold the team together? A. Leadership is so important when people are working remotely, as everything is moving online. Five-minute conversations in the canteen often turn into 30-minute Zoom conversations. And you only see your own team and key stakeholders, with none of that easy connection with ‘corridor friends’. Be proactive here. Bring the team together and take some time to review the learning from the last lockdown (what worked well, what worked less well) and invite them to create a set of guidelines (sometimes called a team charter or ground rules) to help them navigate this period. Make this a live document. Check whether it is working and ask, “what else can we do to make this easier for everyone?” You can’t fix this on your own; step back so that the team can lean in. Create a ‘social only’ meeting once a week and get it into people’s diaries. If your team is large, put people into small breakout rooms of two to four people for 15 minutes to give time for connection. If budget permits, send a small gift from time to time. One-to-one check-ins are critical too. Julia Rowan is Principal Consultant at Performance Matters, a leadership and team development consultancy. To send a question to Julia, email julia@performancematters.ie.

Michelle Byrne and Sinéad McHugh set out the climate-related areas of focus for preparers of financial statements. It is quickly becoming apparent that climate change is likely to drive some of the most profound and persistent changes to business in our lifetimes. Earlier this year, Ireland signed into law its Climate Action and Low Carbon Development (Amendment) Act 2021, which is a legally binding path to net-zero emissions no later than 2050 and to a 51% reduction in emissions by the end of the decade. We have seen increased discussions as to how climate-related matters will affect a company’s current and future business strategies, operations, and long-term value during the recent Climate Finance Week Ireland 2021 and more recently at the 26th UN Climate Change Conference of the Parties (COP26). Furthermore, from a corporate perspective, investors, regulators and other business stakeholders are increasingly demanding increased disclosures on climate change matters and are challenging companies that are not factoring the effects of climate change into their critical accounting judgements. The SEC, FRC and IAASA all recently issued statements emphasising the importance of considering the impact of climate change when preparing financial statements. They also emphasised the importance of consistency between a company’s targets and assumptions disclosed in the front half, and assumptions and estimates used in preparing the back half of the financial statements. To a greater or lesser extent, the risks and uncertainties arising from climate change are likely to have an impact on the financial statements of all companies. Some areas of focus for all companies in preparing their financial statements are set out below. Impact on the financial statements While asset impairment may potentially be the most obvious area impacted in the financial statements, companies should also consider other areas that may be impacted by climate-related factors (such as useful lives of assets, fair value of assets, and provisions). The paragraphs that follow provide a summary of some of the key areas impacted by climate-related factors. Carrying value of assets Cash flows play an important part in assessing the recoverability of an asset. During the impairment process, consideration must be given as to whether value-in-use (VIU) calculations need to be adjusted for climate-related risks. For example, companies may need to factor the following into their calculations: Changing customer preferences, technology and market trends may need to be reflected in the revenue and growth forecasts; Energy intensive industries will likely need to incorporate higher costs in future cash flows as a result of carbon taxes and general climate-related increases in energy costs; Increasing costs of compliance with new policies or legislation (for example, carbon budgets, stricter environmental controls, or increasing costs of insurance due to climate factors); and Increased capital expenditure to develop or acquire more energy-efficient production assets. The key climate-related assumptions applied in the VIU calculation, together with a description of management’s approach to determining the value assigned to each key assumption, should be disclosed. Increasingly this information is considered to be material for disclosure even if the climate-related impact on VIU assumptions is not significant. Useful economic life of assets To meet emission targets, companies may need to replace some of their asset base with equipment that is more energy efficient or powered from alternative sources. In addition, climate factors may indicate that an asset could become physically unavailable or commercially obsolete earlier than previously expected. As a result, certain assets may have reduced useful economic lives. In some cases, a company may develop a more energy efficient product to substitute a legacy product, resulting in a change in the estimated useful life of the client relationship intangible asset associated with the legacy product. Any change to the useful economic life is recorded in the financial statements prospectively. Disclosure of the change in estimate in the financial statements is required. Even if the amounts are not considered material, companies may wish to include disclosure of the revision to useful lives to demonstrate consideration of climate-related factors in the preparation of the financial statements. Fair valuation of assets Climate change risks or changes to laws and regulations due to climate change actions may impact the measurement of assets measured at fair value. These risks and actions could affect inputs into valuation models in a number of ways. For example, similar to VIU calculations, cash flows may be impacted by changing revenue, growth, and cost assumptions due to climate risks and actions. Alternatively, if cash flows are not adjusted, the discount rate may instead be adjusted for these risks through a relevant risk premium or discount factor. Any changes in assumptions that are critical to the valuation of the asset need to be clearly disclosed and the impact quantified. Changes in expected credit losses Given the short-term nature of trade receivables, the impact on receivables in companies operating in non-financial industries is likely to be less severe. Conversely, the long-term nature of some financial assets held by lending organisations may mean that assets held at the current balance sheet date could be exposed to severe adverse economic conditions. This could be due to exposure to customers in more significantly impacted industries such as oil and gas and mining, or due to climate-related events such as floods and hurricanes. Such events can impact the creditworthiness of borrowers due to business interruption, decline in asset values, and unemployment. Lenders could suffer increased credit losses through exposure to assets that become stranded or uninsurable, as these assets will no longer offer suitable collateral. These risks will need to be incorporated into the expected credit losses (ECL) model. Disclosure of the effect of climate-related matters on the measurement of expected credit losses or on concentrations of credit risk may also be necessary. Provisions, contingencies and onerous contracts The pace and severity of climate change, as well as accompanying government policy and regulatory measures, may impact the recognition, measurement, and disclosure of provisions, contingencies and onerous contracts. For example: New provisions or contingencies may need to be recognised or disclosed due to new obligations (for example, fines levied for failing to meet climate-related targets); The timing of when an asset may need to be decommissioned may change due to regulatory changes or shortened lives, accelerating the required cash outflows for asset retirement obligations; Cash flows and discount rates used in measuring provisions may need to take into account the risks and uncertainties of climate change and accompanying regulations; and Existing contracts may become onerous due to an increase in the costs of fulfilment (for example, due to an increase in the cost of energy or water). Carbon trading schemes There are currently different acceptable approaches to accounting for carbon trading schemes. This is an area that may evolve as such arrangements become more common and they apply to more companies. It will also be necessary to consider whether the acceptable approaches will be equally acceptable for any new schemes when implemented. Conclusion It is becoming increasingly apparent that investors and regulators are expecting more company-specific information on the impact of climate risks on the company’s financial statements. Given this increased focus, there is a high level of expectation that directors, preparers and auditors will have considered how and where climate-related actions may impact on the financial statements. Even if the conclusion reached is that climate-related risks do not have a material impact on a company, there is a growing expectation that the company will disclose how these risks were considered and why they were not considered material for the company. Michelle Byrne is a Director in the Financial Reporting Advisory Team in Audit & Assurance at Deloitte Ireland. Sinéad McHugh is a Partner in Audit & Assurance at Deloitte Ireland.

A successful COVID-19 vaccine roll-out, a growing economy and shifting priorities – 2021 may not have been the year we expected, but it has definitely delivered change and opportunity. Four members review the challenges they overcame, the surprises they faced and their hopes for the future.  Thady Duggan Senior Manager of CFO & Enterprise Value in Accenture At the beginning of 2021, I was expecting the impact of the pandemic to diminish faster than it did. Given the success of working from home and the fact that we proved, by and large, that many of us can do our job from home, I did not think things would return exactly to the way they were, but I did expect to be in our offices and our client offices more often. The biggest challenge, however, was home schooling. My sister is a teacher and I used to tease her about her holidays – she deserves them! However, professionally, it was continuing to work remotely. We have great collaboration tools and have become smooth at remote workshop facilitation, but there is something to be said for the personal touch. Conversely, because I was working from home, I was able to work on some global projects that I might not otherwise have had the opportunity to do. Under normal circumstances, a portion of my work could be in the UK or, to a lesser degree, Europe, but this year I was able to work with our US team on one of the world’s largest M&A deals. In 2021, I have been pleasantly surprised at how quickly we have galvanised around sustainability and climate. Work was clearly being done over previous years but there seems to be momentum, certainly from individuals and businesses, around these topics that were not there previously. I am also probably a little surprised that the rate of change we saw in the second half of 2020 has not slackened.  After the last year, I take more joy from smaller things and focus on the benefits small actions can have. I have probably done less socially over the past 12 months, but I try to enjoy each activity more. I hope COVID-19 peters out into just being like flu season, and we get back to having face-to-face client engagements again. Stephen Prendiville Head of Sustainability at EY I really didn’t know what to expect of 2021. For a while it was hard to see beyond the next week, not to mind the coming year. But when EY globally stepped out at Davos early in the year and committed to being net-zero in line with science-based targets for 2025, I knew the year was going to be dominated by the pursuit of that commitment. Over the course of 2021, we also became carbon negative, offsetting and removing more carbon than we emit.  On a personal level, it was a year of change. My family and I moved closer to extended family in Donegal and I took on the role of Head of Sustainability. Taking on the role came with a dual purpose: pursuing and supporting our internal sustainability goals at EY, but also structuring our teams to respond to the ever-increasing and challenging focus on the broad concept of sustainability and decarbonisation.  A professional highlight for me this year was representing EY and Irish business at COP26. While the climate diplomacy of COP can be difficult to appreciate, in the wings I had the opportunity to meet people at the cutting edge of technology and business that really do speak to the vastness of our new economic prospects. Prior to COP26, I would have considered that Irish business had a lot of common ground with the Irish Government. What I now see is that both the Irish Government and Irish business have more in common with the climate activist compared to our peers. Ireland can be a great disruptor. When we speak, people listen. We need to use that power not only to help the planet, but also to position ourselves in the new forthcoming global economy. In 2022, we need more dialogue. We need to get deeper on climate action. With the carbon budgets now in place, and the Climate Action Plan 2021 setting a sense of tone of direction, I think 2022 will nurture a great national dialogue and step-change in action for Irish business in particular.  Chalene Gallagher Regulatory Data Senior Associate at the Federal Reserve Bank of New York With everything that happened in the United States last year that served to highlight the inequities faced by minority groups throughout US history, it felt even more important for me to do more in the diversity, equity and inclusion (DE&I) space. The murders of Ahmaud Arbery, George Floyd, Breonna Taylor and too many others felt personal to me. Although I did not grow up in the US, as a black woman, the situations that led to their deaths could just as easily happen to me, a member of my family, or a friend.    The effects of the pandemic also served to compound disparities, as the loss of life and livelihood was felt most by communities of colour and by women who were the predominant employees working in the most impacted industries and who now had to take on more care-giving roles. Although the US and global economies are in recovery mode, it is by no means equitable, creating a K shaped recovery that further serves to highlight the struggles faced by minority groups.    My perspective really changed during the year in that instead of focusing on the feelings of frustration felt in 2020, in 2021, I chose to focus on action. Although I had been balancing my day role as a Regulatory Data Specialist with supporting people and culture-related efforts within the Bank, I personally felt the need to do more. So, I worked with my manager at the start of the year when I became the Vice President of the Women’s Employee Resource Network to intentionally split my time between regulatory reporting analysis and DE&I. Raising awareness, having tough conversations and trying to meet people where they are on their DE&I journey to help move the needle has been a challenge and an emotional investment. But is has been worth it.   Although there is still a lot of work to be done, I feel like we’re moving in the right direction.  For 2022, I hope we can continue to keep these topics at the forefront of the conversations we have in public and behind closed doors so that we can keep the momentum going and make real, tangible and sustainable change.  Sinead Fitzmaurice CEO of TransferMate Global Payments The COVID era has applied pressure to companies’ capital and cash flows, but those who experienced a surge in demand needed immediate information on cash flow and supply chain aspects. As we entered 2021, I expected to see a rise in demand from CFOs for the modernisation of payments infrastructure via digital platforms, and that theme has indeed dominated 2021.   The challenge is always the same: it’s about striking the right balance between personal and professional lives. They are both joined at the hip, like it or not, and both can be stressful in their own way. Striking the right balance is dependent on the talent you surround yourself with, and I am honoured to work with such a talented team at TransferMate who help us achieve our corporate goals daily.  I am always surprised at the resilience of the human spirit and our adaptability in the face of adversity and change. This has been tested to the extreme over the past 20 months in our personal and professional lives. We have a philosophy at TransferMate: “it is our people who make us who we are”. I can honestly say that I am inspired every day by our teams. They consistently rise to any challenge and deliver with utmost professionalism time and time again, regardless of the circumstances. The events of the past 12 months (20 months, actually) have been dominated by COVID-19 and for most of us, our lives have been put ‘on hold’. Yes, we have carried on as best we can within tight constraints, but we still have never really felt completely free. If nothing else, I have come to appreciate the freedoms we had taken for granted – the freedom to interact with people the way I want to, the freedom to travel, etc. In 2022, I hope we emerge from the pandemic for the better; we never forget the sacrifices that people have made as we wrestled with defeating it. I hope we learn not to be complacent about the possibilities of new threats rising and be prepared to defend ourselves when they do. On a professional level, 2022 promises to be a breakout year for my organisation. My goal will be to execute the plan flawlessly and blow through every milestone along that journey to the end of the year for everyone at the company.

Despite persistent and difficult challenges, Dawn McLaughlin is bullish on the north-west’s prospects for 2022 and beyond. This time of year is often a natural time to reflect and contemplate what has happened over the past 12 months. 2021, for all its challenges and difficulties, has been a greater whirlwind than the preceding year in many ways. While still profoundly challenging, businesses have got to grips with issues like the pandemic and the Northern Ireland Protocol, adapting to the challenges before them and seeking new ways of working to meet their customer needs and obligations. I have witnessed the hardship and listened to stories of decimation and uncertainty. But I have also been heartened by how businesses reacted to the crisis, putting their people before themselves. As we look towards 2022 and consider all that it may bring, it is important to look at the challenges we have faced, what we have achieved, how we have progressed, and what still needs to be done. For the north-west, it has been a year of optimism and positivity as well as change and progression. February saw the heads of terms signed off on the £250 million Derry and Strabane City Deal, an investment package that will see 7,000 jobs created over the next decade and an extra £210 million in GVA (gross value added) generated in our regional economy annually. It is difficult to overstate the transformative potential this deal could have for our region – a part of the island that has historically been underfunded, underdeveloped, and under-prioritised. If we get this right, there is an opportunity to carve out the north-west as a leading location in Western Europe for technology, health and life sciences, diagnostics, artificial intelligence, and other emerging industries that will become increasingly important to the global economy over the next decade. It has been a joy to finally see future doctors and consultants training in the city, with the opening of Derry’s new School of Medicine in September. The further expansion of Ulster University’s Magee campus is something that City partners are committed to making a reality, and we will continue to work collaboratively towards this goal. We have welcomed new Executive ministers this year, new MLAs in Foyle, and new party leaders. Ahead of the next Assembly election in Spring 2022, we have been working hard to get our message out there and tell our local candidates precisely what they must support to see our region flourish and prosper. We hope that issues like our regional connectivity and infrastructure, the expansion of our local university, job creation, attracting new investment, and skills development will be front and centre for our elected representatives in May. Specific issues still linger as we look ahead to 2022. Continuing disagreement over the Northern Ireland Protocol does no one any favours, especially businesses. Companies crave certainty, and they thrive when things are stable. While the Protocol is by no means perfect and difficulties are still to be ironed out, these are not insurmountable. Both sides can come to a positive conclusion through committed dialogue, and Northern Ireland can begin to take serious advantage of access to both the UK and EU markets. With growing inflation, a squeezed labour market, and rising costs of materials, services, and utilities, businesses face persisting challenges as we go into the New Year. However, I have spoken regularly about my optimism for the north-west throughout the past 12 months. This optimism has not abated, and I still believe 2022 will be a year of opportunity and prosperity for our region. Dawn McLaughlin FCA is Founder of Dawn McLaughlin & Co. Chartered Accountants  and President of Londonderry Chamber of Commerce.

Maurice Barrett highlights some noteworthy aspects of ESMA’s common enforcement priorities statement for preparers, management and directors. The European Securities and Markets Authority (ESMA) is the Europe-wide body responsible for safeguarding the stability of the EU’s financial system. ESMA achieves this through the protection of investors and promoting stable and orderly financial markets. Co-ordination of accounting enforcement across the EU is part of ESMA’s activity. As part of this accounting enforcement role, ESMA publishes an annual Public Statement setting out the common enforcement priorities (CEPs) for the annual financial reports of listed companies. Together with EU national accounting enforcers – including the Irish Auditing and Accounting Supervisory Authority (IAASA) – ESMA pays particular attention to these CEPs when examining entities’ financial statements. In addition to these Europe-wide CEPs, national accounting enforcers may set additional national priorities. IAASA does this in its annual Observations paper, which is available at www.iaasa.ie. The 2021 ESMA CEPs statement, which is available at www.esma.europa.eu, sets out the enforcement priorities under three headings: Several aspects of the 2021 CEPs statement are noteworthy: The pervasive nature of the impact of COVID-19 across each of the three headings; The identification of climate change as an area of concern for accounting enforcers and the recognition that climate-related matters are something about which investors and other users of financial reports require information; and The focus attached by ESMA – and, therefore, EU national accounting enforcers – to areas other than IFRS financial statements. Of the seven areas included in ESMA’s CEPs statement, only three refer to IFRS financial statements. This is considered significant and is indicative of the direction of travel of corporate reporting and accounting enforcement at the European level. It reflects a trend to consider corporate reporting from a more holistic point of view and a much broader perspective than the more traditional approach of considering only the monetary amounts and disclosures in the IFRS financial statements. Impact of COVID-19 The CEPs statement notes that the impact of COVID-19 has been severe and the path to recovery may be prolonged. The statement repeats the messages included in last year’s CEPs statement regarding the need for a careful assessment of the longer-term impacts of COVID-19 on an entity’s activities, financial performance, financial position and cash flows (such as going concern assumptions, significant judgements, estimation uncertainty, presentation of financial statements, and impairment of assets). Bearing in mind the impact COVID-19 is having on trade and supply chains, the CEPs statement reminds entities to provide transparent disclosures of arrangements that take the form of supply chain financing. The CEPs statement calls for transparency on the criteria and assumptions used in the recognition of deferred tax assets arising from the carry forward of unused tax losses and unused tax credits due to the COVID-19 pandemic. IAS 20 Accounting for Government Grants and Disclosures of Government Assistance requires disclosure of information related to government assistance, including the accounting policy adopted and the methods of presentation adopted in the financial statements. The CEPs statement reminds entities to provide a description of the nature and extent of any significant public support measure received by category (for example, loans, tax relief, and compensation schemes). COVID-19 may impair entities’ ability to meet any pre-determined sustainability-related goals in the short- and medium-term. Accordingly, the CEPs statement recommends that entities provide disclosure as to how the pandemic is affecting their plans to meet such targets and whether any new or adjusted goals have been determined. The ESMA CEPs statement also urges caution if entities adjust APMs used or develop new APMs with the sole objective of depicting the impact that COVID-19 has on financial performance. ESMA contends that, in most instances, the COVID-19 impact should not be presented separately in APMs. Climate-related matters Entities and auditors must consider climate risks when preparing and auditing IFRS financial statements. The identification and assessment of climate-related risks may require a longer-term horizon than that considered for financial risks. Entities should consider climate-related matters by ensuring consistency in the information disclosed across the management report, the non-financial statements, and the financial statements. The CEPs statement reminds entities that, in addition to the information required by individual IFRSs, paragraph 112(c) of IAS 1 Presentation of Financial Statements requires that information on climate-related matters be provided in the notes if not presented elsewhere in the financial statements when such information is relevant. Paragraphs 122 to 124 of IAS 1 require disclosure of the significant judgements management has made in the process of applying an entity’s accounting policies. In this regard, entities need to consider disclosure of management judgements related to climate risks. Entities are also required to disclose information in accordance with paragraphs 125 to 133 of IAS 1 regarding major sources of estimation uncertainty. Entities are expected to disclose in the financial statements how forward-looking assumptions, estimates and judgements applied in preparing the financial statements are consistent with the information included in the management report and the non-financial statement. The CEPs statement notes that ESMA – and, by extension, EU national accounting enforcers – expects entities to consider climate change when assessing whether the expected useful lives of non-current assets and the estimated residual values in IAS 16 Property, Plant and Equipment and IAS 38 Intangible Assets should be revised. In addition, under IAS 36 Impairment of Assets, entities should: Assess whether indications exist that non-financial assets are impaired as a result of climate risk or Paris Agreement implementation measures; Use assumptions reflecting climate risks; and Adapt the sensitivity analysis disclosed to consider climate risks and commitments in the assumptions used. Entities should carefully consider the requirements in IAS 37 Provisions, Contingent Liabilities and Contingent Assets regarding, for example, contingent liabilities for potential litigation, regulatory requirements to remediate environmental damage, additional levies or penalties related to environmental requirements, contracts that may become onerous, or restructurings to achieve climate-related targets. Articles 19a and 29a of the Accounting Directive require the management report of certain entities to include a non-financial statement containing information regarding environmental, social and employee matters, respect for human rights, anti-corruption and bribery matters. Such a non-financial statement must include a description of the entity’s business model and the policies pursued in relation to those matters, the outcome of those policies, the principal risks, and non-financial key performance indicators. In addition, the CEPs statement suggests that entities might apply the European Commission’s non-binding guidelines on reporting climate-related information (available at www.ec.europa.eu). It is ESMA’s view that to provide useful information for investors and other stakeholders in assessing the entity’s performance and position in relation to climate-related matters, the disclosures should not be limited to providing backwards-looking information. Instead, this information should be contextualised in the entity’s broader strategic orientation and the related implementation plans, indicating the expected progress to meet pre-defined targets. Expected credit losses disclosures  The CEPs statement sets out ESMA’s expectations on aspects of expected credit losses (ECL) disclosures, including: Management overlays When material adjustments are used in ECL measurement, entities should provide transparency to fulfil the overarching objectives and principles of paragraph 35B of IFRS 7 Financial Instruments: Disclosures. Such adjustments either take the form of ECL model revisions or are applied outside the primary models (“post-model adjustments”). In complying with the requirements of paragraphs 35G, 35D and 35E of IFRS 7, ESMA expects entities to disclose entity-specific information on its impact on the ECL estimate, the rationale, and the methodology applied. Changes in credit risk (stage transfers) ESMA highlights paragraphs 35F and 35G of IFRS 7 and reminds entities to disclose the basis for the inputs and assumptions and the estimation techniques used to determine whether there is a significant increase in credit risk (SICR) of financial instruments since initial recognition, or whether a financial asset is credit-impaired. Forward-looking information When explaining how forward-looking information (FLI) has been incorporated into the determination of ECL as required by paragraph 35G(b) of IFRS 7, ESMA encourages entities to provide specific disclosures on the main judgements and estimations related to uncertainties that have been taken into account when defining the scenarios and their weight. ESMA recommends that entities disclose quantitative information on the macro-economic variables considered. Effect of climate-related risk on the ECL measurement ESMA expects entities to disclose whether material climate-related and environmental risks are taken into account in credit risk management, including information about the significant judgements and estimation uncertainties. Specifically, to meet the objectives of paragraph 35B of IFRS 7, entities should explain how these risks are incorporated in the calculation of ECL, and any credit risk concentrations related to environmental risks and how those risks affect the amounts recognised in the financial statements. Environmentally sustainable activities The ESMA CEPs statement reminds entities of the disclosure obligations set out in Article 8 of the Taxonomy Regulation (available at www.eur-lex.europa.eu). Article 8 requires non-financial undertakings to disclose: The proportion of their turnover derived from products or services associated with economic activities that qualify as environmentally sustainable; and The proportion of their capital expenditure and the proportion of their operating expenditure related to assets or processes associated with economic activities that qualify as environmentally sustainable. The European requirements in this area continue to evolve ESMA encourages entities to plan and prepare for the timely and correct application of the relevant requirements, as the information to be disclosed may require the collection of data that may not be readily available. Conclusion The topics set out in the ESMA CEPs statement, along with those set out in IAASA’s Observations paper, will be used by IAASA as its reviews financial statements in 2022. ESMA and IAASA emphasise the importance of preparers, management, and directors taking these CEPs into account when preparing and approving their 2021 annual reports and financial statements and discussing them with their auditors at the planning, execution, and completion phases. The messages in the ESMA CEPs statement are directed at entities preparing IFRS financial statements and falling under the remit of national accounting enforcement. However, the topics raised could usefully be adopted by a broader population of entities. Maurice Barrett FCA is Senior Financial Reporting Manager at the Irish Auditing & Accounting Supervisory Authority.