Date posted: 1/03/2020 3 min read

View from the Chair: Update from Manda Trautwein FCA

“The outlook for 2021 is bright as we bounce back from the challenges of last year and build for a new future.”

In brief

  • After a challenging 2020, Chartered Accountants ANZ encourages you to reset and build for a new future in 2021
  • The economic impact of COVID-19 will be felt long-term, as will the implications of climate change

Welcome to our first newsletter for the year. After an undeniably tough 2020, we now welcome the opportunity to reset and begin building for a new future. 

Luckily, the foundations are already there for a positive start. The US elections and Brexit are now behind us, the first round of COVID-19 vaccines is imminent in Australia and the RBA’s cash rate target is expected to sit at 0.1 per cent until 2024. Job advertisements have also bounced back strongly, exceeding all expectations, and the general sentiment is that things will only continue to improve. 

This time last year, I reflected on the bushfires and how the pandemic was just starting to take hold in Australia. Although both have been devastating events, I predicted that – from a valuation standpoint – the impact they’d have on business would likely be short term. Unfortunately, the economic impacts of COVID-19 are still lingering and will be felt for some time yet. 

An issue that will undoubtedly have a long-term impact on business though, is climate change. This quarter’s newsletter includes two articles to get you thinking about the implications of climate change on business valuation. The first one looks at a perspectives paper issued by the IVSC which analyses the relationship between valuation and Environmental, Social and Governance (ESG) factors. The other is an article from KPMG discussing the importance of going beyond the financial aspects of a valuation – instead applying an ESG lens to it. It includes practical advice on factoring ESG into your cash-flow and discount-rate calculations.

I want to remind you that time is ticking to enrol for the next intake of the CA ANZ Business Valuation Specialisation. The program starts in April, so I encourage anyone thinking about specialising to register at charteredaccountantsanz.com/BusVal-ROI.

I believe the outlook for 2021 is bright as we bounce back from the challenges of last year and build for a new future. There’s certainly plenty to look forward to from CA, including a series of webinars we can’t wait to share with you. If there’s a particular topic you’d like to hear about, please get in touch. 

As always, feedback and ideas for content in our future newsletters is always welcome. Please email your suggestions to MyCommunityGroups@charteredaccountantsanz.com.

 

Manda Trautwein FCA, Chair,

Chartered Accountants Australia and New Zealand Business Valuation Committee