As we start the New Year, the profession is probably facing greater economic uncertainty than it has done for some time.
Issues that were largely confined to the capital markets during 2008 will begin to impact on the real economy as small and medium-sized businesses struggle to deal with the constraints of a banking sector that is understandably more risk averse and less willing to lend.
Leadership is tested in adversity. There cannot be many of our members who are not, in some way, affected by the economic downturn. The challenge for all of us is how we respond.
The institute is tackling the downturn on two fronts. We are engaged with policymakers on a range of issues that the current economic conditions have brought to the fore – going concern, fair value accounting and the relative impact of fiscal stimulus measures contained in the pre-Budget report. Here our focus is on ensuring that the views of the profession play into these important debates and help shape the regulatory response that we will see in 2009.
We are also focused on supporting members both directly and indirectly affected by the credit crunch. We are disseminating information and guidance on how to deal with the current economic situation and supporting those unfortunate enough to be facing the threat of redundancy. And we are providing advice and support to all those working hard to get UK ltd and UK plc back on their feet.
We will come through these difficult times together and I believe we will be stronger for the experience. In the meantime, your institute is here to support you. Do take the opportunity to visit our website to find out more about what we are doing.
I would like to wish my fellow chartered accountants all the best for the New Year.