Accountants sound alarms about geopolitics, internal risks
good morning.
Accountants are increasingly concerned about the ability of companies to maintain margins and lead amidst constant change and disruption.
For the first time in the 10-year history of the survey, geopolitics emerged as a global risk priority for accountants, according to the second quarter. Survey on the global economic situation It was released this morning by the chartered Association of Certified Accountants (ACCA) and the Institute of Management Accountants (IMA). This study reflects a new stage of anxiety among accounting professionals. This reflects not only external shocks such as trade and policy, but also internal resilience and adaptability.
Compared to Q1, second quarter sector and geography accountants expressed growing concern over governance gaps, cost vulnerability, workforce tensions, and internal vulnerability of cultural and digital preparation.
The survey highlights concerns about these shifts by 420 respondents from June 3rd to 25th (accounting and finance experts including all ACCA or IMA members and CFOs).
Among the major regions, trust in North America rose several times in the quarter compared to the second quarter, reflecting improved sentiment among US-based accountants. But that has been depressed by historical standards. In contrast, confidence fell sharply in the Asia-Pacific region, eliminating the profits they earned in the first quarter. Among the major changes in US trade policy, the worsening background of global trade could be an important factor in examining sentiment.
Specifically, looking at CFOs, trust among financial managers fell in the second quarter, well below that historic average.
The proportion of North American respondents reporting increased operating costs has been slightly relaxed, according to Alain Mulder, senior director of IMA’s European Operations and Global Special Projects. However, it remains historically high after a significant increase in the first quarter.
“This increases the risk that businesses will try to raise prices over the next few months,” Mulder said in the report.
Cheryl Estrada
sheryl.estrada@fortune.com
Leaderboard
Robert McMahon He was named CFO of West Pharmaceutical Services, Inc. (NYSE: WST), effect on August 4th. McMahon will replace Bernard Birkett, CFO, who announced his intention to quit earlier this year. McMahon has been the CFO of Agilent Technologies Inc. since 2018, and prior to that, Hologic, Inc. He was the CFO of the company and spent 20 years with Johnson & Johnson in the economic role of increasing responsibility.
A big deal
The survey, conducted among 924 participants from July 1-16, included voluntary investors, those who fully delegate investment management to professionals, and those who utilized both approaches.
Despite growing optimism, inflation remains a concern for the top investors, but it has dropped 2% points to 39%. This is followed by tariffs (down 2 points to 33%) and market volatility (not changing at 24%). Amidst the changing geopolitical geopolitical landscape, a majority of investors (58%) are currently interested in non-US markets, up 4% points from the last quarter.
“Heandwinds may be on the horizon, but investors are looking for new investment opportunities while still building their positions in sectors like Tech and Financials,” according to Chris Larkin, head of trading and investments on E*Trade from Morgan Stanley.
Go deep
“Because it’s too difficult for In-N-Out billionaires to raise children and do business.” a luck Report by Eleanor Pringle.
From the report: “Linci Snyder is a Californian born and raised, and there is no secret of his love for the state where his grandparents founded the Cult Burger Empire.
Reaffirming In-N-Out’s California roots, Snyder cited the pressures of state families and businesses. At age 27, she took over the West Coast chain, following in the footsteps of her grandfather, father and uncle, leading the business before inheriting. Snyder is currently at the helm of the business with a net worth of $7.3 billion. ”
I’ve heard it
“I’m 73, and after a career that has already lasted 51 years, I’m still working. I don’t have to leave, and it’s a shame about that.
– Bob Brody, a consultant, essayist and longtime health journalist, luck Opinion piece He believes that working at his age is physically, mentally and socially good for his health. Brody is the author of the memoirs Catch a stranger: The man in the family (reluctantly) turns to age.