INTERNATIONAL Federation of Accountants (IFAC) president, Warren Allen used his keynote address to the Institute of Public Accountants (IPA) National Congress, on the Gold Coast last week, to urge accounting professionals to play a leading role in dragging the global economy out of a five-year crisis.

It all adds up: accountants can help pull the global economy out of crisis.

He also highlighted the role accountants must play - especially in what he called the 'engine rooms' of economies around the world, small-to-medium enterprises (SMEs) - in vital non-financial reporting.

"Non-financial reporting is important for decision making, transparency and discharging accountability," Mr Allen said.

He stressed "the criticality of enhanced organisational reporting", and how this applied to SMEs as much as it did for large businesses.

"SMEs are the engine room of every economy around the world."

Mr Allen's keynote address was titled The global accounting profession: working to strengthen the global economy and he spoke of the important role of the accounting profession working together to bring the global economy out of crisis.

Mr Allen stressed that the accounting profession needed to be seen as a leader in enhancing economic stability.

"Countries will not achieve economic stability without a strong, active and disciplined accounting profession," Mr Allen said. This placed powerful pressures on the areas of recruitment and continual training in accountancy.

Warren Allen.

Mr Allen said that continual encouragement to recruit the 'best and brightest' was crucial for the continuance of the accounting profession's role in strengthening the global economy. He said this was becoming a worldwide problem as talent was often lost to other sectors.

"If the trend continues, the accounting profession may be unable to properly meet the demands of our global communities," he said.

Mr Allen commended the IPA for its continued support to IFAC and its work globally.

The IPA met for its major conference on the Gold Coast last week. Formed in 1923, the IPA is one of Australia's three legally recognised professional accounting bodies with more than 24,000 members and students in over 51 countries. The IPA is a member of the International Federation of Accountants, the Accounting Professional and Ethical Standards Board and the Confederation of Asian and Pacific Accountants.

IFAC is the global organisation for the accountancy profession. Its stated role, according to Mr Allen, is to serve the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC has 173 member organisations and associates in 129 countries and jurisdictions, representing about 2.5 million accountants in public practice, education, government service, industry and commerce.

http://www.publicaccountnats.org.au/

http://www.ifac.org/

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SECURED parties must register any ‘transitional security interests' on the Personal Properties Securities Register (PPSR) before the end of January 31, 2014 Canberra time. Otherwise the priority of any security interest may not be preserved under the Personal Properties Securities Act 2009 (PPS Act), which came into effect on January 30 last year. Examples of transitional securities interests (TSIs) that fall into this realm are those that have been created under leasing and hiring arrangements; retention of title supplies; and certain commercial consignment arrangements.

The PPSR regards a TSI as an interest in personal property that, in effect, secures payment or performance of an obligation which existed prior to January 30, 2012. TSIs also include security interests that did not exist prior to that date, but were created under a security agreement that existed prior to January 30, 2012.

An example could be goods supplied in March 2012 under a retention of title (RoT) agreement that was created in December 2011, which may give rise to a TSI.

TSIs can also include ‘PPS leases', which are generally leases for a term of more than one year, or for certain serial numbered goods, such as a car, for a term of more than 90 days.  The PPSR uses the term 'temporary perfection' to describe the process which currently preserves the priority status of a TSI.

If the deadline is not met, temporary perfection for the TSI will not apply from February 1, 2014, which may cause future complications of arrangements. Registration of a TSI is free.

Although there will still be the facility to register TSI on the PPSR after January 31, 2014, choosing to hold off registering until after that date will result in loss of the benefit of the transitional provisions.

What this means is that the 'perfected' status of the security interest will only begin from the time of registration on the PPSR, instead of the earlier date allowable under the transitional provisions if registered before the end of January 31, 2014.

If a security interest loses its 'perfected' status its priority ranking will not be preserved. This means another person with a security interest in the same collateral with a higher priority ranking, such as secured party who registered during the transitional period, may be paid out ahead of you in the event that the grantor (the person who hires or buys the goods, or borrows money) defaults.

There is also the risk that if the grantor enters bankruptcy or insolvency and a security interest has not been perfected at relevant times, the security holder will lose their security interest altogether.

From January 30, 2012, the PPS Act established a new system for the creation, priority and enforcement of security interests in personal property, which is generally all property other than land, fixtures and certain statutory interests. The PPS Act generally applies to security interests in goods located in Australia, or to the grantor of the security interest being an Australian entity.

The centrepiece of the PPS Act is the national Personal Property Securities Register (PPSR) on which security interests in personal property may be registered.

http://www.ppsr.gov.au/

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A PRE-FEDERAL Election call for no more ‘sugar fix' interest rate cuts by the Reserve Bank - because the benefits were plainly not flowing on to where the economy needed it most, small business -  unfortunately appears to be playing out the way wealth advisory group Chan & Naylor predicted.

Ken Raiss of Chan & Naylor.

According to Ken Raiss, a director at Chan & Naylor, historically low interest rates may be a contributing factor towards increasing property sales - witness the flurry of activity in the Sydney market over recent months, triggered largely by investors tapping into the rate cut - however, he said, it was only a portion of Australians with home loans who would actually benefit in the short term.

Mr Raiss said the reality showed no commensurate reduction in business or credit card rates or even household rates thanks to banks holding on to most of the reductions in recent times.

"While approximately 35 percent of home owners have a mortgage and therefore may have an excuse to briefly celebrate, the flow on benefits of an interest rate cut are futile for business lending, job creation or for older Australians in particular who rely on income derived from savings," Mr Raiss said.

He said in view of July's significant 10,200 net employment reduction and the NAB's gloomy 2.2 percent economic growth and 6.7 percent unemployment 2014-15 forecast, the recent interest rate cut belies an economy that is not expected to grow in the short term, "in other words the economy is getting more unwell".

"Now that Australia's economic well-being has been laid bare, any further saccharine fuelled rate changes will do more harm than good, as it hides the real world of a sick economy" said Mr Raiss.

He believes that in the present economic environment, holding off on interest rate cuts, but combined with a good dose of sensible economic reform, may produce the 'tough medicine' required to restore the country to pre-2007 fitness.

"If you do not have a job or have reduced overtime, lower interest rates are not top of mind," he said.

"Whilst some tough tax related questions now need to be asked, we also need to focus on restoring the health to the vital organs of a functioning economy, namely employment, growth and sustainability."

According to Mr Raiss, who believes Australia has in recent years been too rigid and slow to adapt with changing circumstances, a carefully considered band of interest rate increases combined with the introduction of Federal and State Government policies that stimulate business activity could help set the framework for improved consumer confidence, sustainable employment and investment conditions.

He said a healthy and growing economy means more business profits, more tax collection, more jobs and increased living standards which would more than offset increased interest rates that are managed within the Reserve Bank Charter. This has also lately been the approach of new Federal Treasurer, Joe Hockey.

"All this leads to governments being able to fund polices, not look at reducing the pressure on the budget," Mr Raiss said.

"This country has a natural competitive advantage in its education and health systems, our natural resources and a disproportionately large middle class with disposable income.

"A future rate rise may make borrowing more expensive, but enlightened homeowners that have jobs will be happy to pay this slight impost, as will those who depend on their income and living standards from higher interest rates."

http://www.chan-naylor.com.au/

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AUSTRALIA'S first Federal Government supported matched funding program for the arts and creative industries, Plus1, was launched this week by Creative Partnerships Australia.

Creative Partnerships Australia now has new Federal Govt-matched funding options. Image: Stompin, Tasmania.

Through the Plus1 program, Creative Partnerships will match dollar for dollar up to $50,000 in funds raised from the private sector by artists and not for profit (NFP) arts organisations for projects that enhance or improve their capacity to raise money from the private sector.

Creative Partnerships is a national organisation that works with the arts, business and philanthropic sectors, as well as government, to support sustainable creative industries in Australia.

Creative Partnerships was established in 2013 to encourage and facilitate private sector support for the arts. Creative Partnerships is supported by the Australian Government through the Cultural Development Program of the Office for the Arts.

"The Plus1 program provides a unique opportunity for those looking to enhance their business development capabilities and diversify their funding streams," said Creative Partnerships Australia CEO Fiona Menzies.

"We're very excited about investing $2 million into supporting projects with outcomes that enable individuals and organisations in the creative industries to create a more sustainable financial future."

Types of projects eligible for the Plus1 program include the appointment of a development coordinator, purchase of a customer relationship management system or training in new business development skills such as presentation skills or proposal writing.

Any Australian artist or NFP organisation from the arts and creative industries with an eligible project can apply for matched funding through the Plus1 program.

"Once a project has been approved by Creative Partnerships for the Plus1 program, applicants raise funds for the project from the private sector," Ms Menzies said.

"These funds can come from crowdfunding or philanthropy, a benefit night or a business investor. Once the target amount is raised and verified Creative Partnerships will match those project funds raised, dollar for dollar, up to $50,000."

The Plus1 matched funding program also provides some unique benefits and opportunities to those private sector supporters of the arts and creative industries interested in supporting approved projects.

"Plus1 creates a unique opportunity for donors to invest in the long term sustainability of the Australian artists and organisations whose work they may already be supporting," Ms Menzies said.

"The fact that it's a matched funding program also means that donors and supporters can double the dollar value of their donation simply by investing in a Plus1 project."

Matched funds from Creative Partnerships will be distributed to successful applicants on a first come, first served basis. The Plus1 program has been opened for project eligibility applications from Monday, September 23.

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www.creativepartnershipsaustralia.org.au

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