ACCA Integrated Report 2018

200,000
members,
millions of
connections
Integrated Report 2018
Contents
1 2 3 4 5
About ACCA
and this report
Our 2017-18
highlights
President’s message
Page 11
Value creation model
Page 16
Chief executive’s
strategic report
Page 3 Page 8 Page 19
6 7 8 9
Our global context
Page 24
Stakeholder
engagement and
Our Strategy to 2020
Page 34
Our strategic
performance
materiality in 2017-18
Page 28 Page 38
10 11 12
Our risks and their
management
Our governance
and leadership
Acknowledgements
and thanks
Page 65 Page 70 Page 80
1
About ACCA
ACCA Integrated Report 2018 3

About ACCA (the Association of Chartered Certified
Accountants) is a global professional accountancy
body, incorporated by Royal Charter in the UK.
ACCA With 208,549 members and 503,262 students in

179 countries at 31 March 2018, our community
of current and future professional accountants is
one of the largest and most diverse in the world.
Founded in 1904, ACCA’s development has been enabled Our mission is to be a global leader
by our distinctive core values: in the profession by:
Opportunity: we provide opportunity, free from • p

roviding opportunity and open access to people
artificial barriers, to people around the world – whether of ability wherever they are in the world
our students, members or employees – and we support • s upporting and promoting the highest ethical,
them in their careers. governance and professional standards
and
Diversity: we respect and value difference, embracing
• advancing the public interest.
diversity in our people and our output.
We do this by qualifying and regulating members to the

Innovation: we create new and unexpected possibilities,
same high standard globally, with the ACCA Qualification
providing innovative solutions for the future.
officially benchmarked to Master’s level and recognised on a
variety of national educational frameworks around the world.
Accountability: we accept individual and corporate
responsibility for our actions, working together to
In a number of markets – including the UK, Ireland and the
deliver quality services and to promote the best
European Union – ACCA has the legal authority directly to
interest of our stakeholders.
license and regulate its members to work in a number of
regulated areas, including public practice.
Integrity: we act ethically and work in the public interest,
treating people fairly and honestly and we encourage
the same from others.

ACCA in numbers
208,549
ACCA is one of the world’s foremost professional bodies. members
A leader in the international accountancy profession,
503,262
we’re proudly global. What makes us special is the unique
combination of our:
• reach – our global network, outlook and ambition with

208,000 members and 503,000 students across 179 countries students
• relevance – our ACCA Qualification, designed to be relevant
7,384
across sectors and geographies and equipping members with
the skills they need to thrive now and in the future
• resources – our scale and ability to generate, leverage and
approved employers
deliver value on behalf of our members, through 104 offices
and centres across 52 countries and 1,338 employees.
323
approved learning providers
104
offices and centres
52
countries

About
this report
This is our seventh annual integrated report and the
fourth prepared in accordance with the international
<IR> framework (published by the IIRC in 2013).
It’s designed to give readers – and especially anyone
whose success is dependent on ACCA, such as our
members, students, learning providers and employers –
an insight into the strategic thinking that drives ACCA
forward, encompassing our strategy, governance,
performance and prospects in the context of our
global environment.
This year, we have referenced those aspects of our

strategy that make an explicit contribution to the UN
Sustainable Development Goals to 2030, recognising our
responsibility towards, and contribution to, these goals.

Assurance
Oversight and
responsibility
The Audit Committee of Council scrutinises this report
in detail, which Council then approves. In this way, Council
is ultimately responsible for ensuring the report’s integrity.
The Audit Committee has confirmed that it has applied its External assurance
collective mind to the preparation and presentation of this
report and that, in its considered opinion, it is presented In addition to assuring our detailed consolidated financial
in accordance with the international <IR> framework. statements, our external auditor also provides assurance
of our performance, covering all our strategic outcomes
and capability measures.
Want more detail?

To try and keep this report concise, we focus
on ACCA’s high-level performance and operations.
We also produce:
• detailed consolidated financial statements

(in accordance with IFRS)
• a corporate governance statement (with reference
to the current version of the UK Corporate
Governance Code).
If you’d like to know anything you can’t find in this report,

or you’d like to give us feedback, you can contact us at:
externalreporting@accaglobal.com

2
Our 2017-18
highlights

Our 2017-18
highlights
80.7% overall member and student 91% employer satisfaction, up 5.3% year More groundbreaking ACCA Qualification
80.7% satisfaction, up 3.8% year on year 91% on year to highest level ever recorded changes, including the launch of our innovative
to highest level ever recorded Ethics and Professional Skills Module
Training over 1,000 lecturers globally to A record 14,000 members voting in Members approving important changes
deliver our new ACCA exams in our our Council elections that allow us to modernise and future-proof
+1,000 largest ever outreach to ACCA tutors 14,000 our governance
Strengthening our strategic alliance with 41

Receiving UK approval for members to 41 new Professional Insights reports
CA ANZ through joint research and plans
provide probate services
for the World Congress of Accountants
2018 in Sydney
Achieving 8 of 10 KPIs – our best performance yet

on our journey towards our Strategy to 2020

Awards
Five major industry awards:
Best Association – Association Excellence Awards 2017

est use of digital from the education sector –
B
Digital Impact Awards 2017
Accountancy Body of the Year – PQ magazine Awards 2018

Best education initiative in the Innovation
Challenges
in Accountancy category (for Ethics and Professional
Best training initiative (for ACCA-X) – Association Skills Module) – PQ magazine Awards 2018
Excellence Awards 2017
Our challenges in 2018-19

• M
aking sure our ACCA Qualification changes are
adopted and championed by the marketplace
• E
nsuring we understand and address – where possible –
declining member retention

President’s
message
3
I became ACCA president at the end of
November 2017. Less than a week later,
I was off to Addis Ababa, Ethiopia,
for my first presidential engagement:
the ACCA Africa members convention.

President’s
message
If 2017-18 has been a year of celebrating connectivity, Connections between countries boost trade, investment, I remember the enthusiasm of those 700 members,
I can’t think of any better way to have started. More than jobs and economic growth. Connections between people attending the first ever Africa members convention and
700 ACCA members from 31 countries across Africa facilitate cultural and academic cross-fertilisation, increasing being the first to sign the 200,000 Members’ Wall.
convened in Addis Ababa’s prestigious United Nations individuals’ mobility and global prospects. And connections
Conference Centre to discuss topical issues facing the between businesses create mutual opportunities. I remember the following visit to Warsaw, where I met
profession – from innovation to leadership from the global a new member who told me that her younger sister had
economy to regional growth – and, even more importantly, been inspired by her to study ACCA and who had become
to connect with, and learn from, each other. It is ACCA’s job to be a super-connector: a member herself last year.
to facilitate these opportunities for our

It was my honour at this event to unveil our 200,000 I remember meeting two more pairs of ACCA-qualified
members and stakeholders, working as
Members’ Wall – an impressive canvas spanning 21 metres sisters in Kazakhstan and in Indonesia: we truly can speak
the conduit that can connect you all.
to accommodate 200,000 ACCA members’ names: the about being a global ‘family’!
physical manifestation of our global family.
I remember speaking to an affiliate in Guangzhou, China who
It is breathtaking to see our connections made physical. And when I think back on my presidential year, it is the said that the support of the ACCA network – members, other
ACCA’s strength lies in our connections, and there are so sheer breadth and depth of the connections I have seen, students and the regular visits from senior staff and Council –
many opportunities for our global network of members, and made, that I remember most. had been the inspiration he needed to finish his studies and
students, employers, learning providers and other take up a graduate job.
stakeholders to work, and exchange knowledge with,
each other.

‘If you want to go fast,
go alone. If you want
to go far, go together’
I remember visits to major employers, associations, It has been a pleasure to spend a year giving back to the It says: ‘If you want to go fast, go alone. If you want to go far,
governments and other institutions to promote awareness organisation that opened so many doors for me throughout go together.’
of the ACCA Qualification and ensure that there are my career. And I am so proud to have held this role during
high-quality employment opportunities for our members such a strong performance year; a year when our overall I have no doubt that ACCA and our members will continue
and students – and finding that many of them already saw member and student satisfaction is at a record level. to go far as we work together to develop the accountancy
ACCA as the most forward-looking qualification for the I can certainly attest to the high levels of enthusiasm and profession the world needs.
workforce of the future. dedication of the many thousands of ACCA members I have
met around the world. And I can’t wait to see what we can all
I have hundreds of examples of seeing, first-hand, achieve as we work together to move forward into the future.
ACCA connecting those with ability with the path towards
becoming a professional accountant. And, of course, There is an old African proverb that I have used often this
ACCA did exactly that for me. year in summarising the journey that ACCA, together with Leo Lee FCCA
all our members and partners, is on. President

Case study
Connecting the global public sector –
ACCA International Public Sector Conference
Our eighth annual ACCA International Public Sector Our roster of speakers reflected ACCA’s truly international
Conference in Singapore was our biggest and most perspective, with presenters from as far afield as Australia,
successful yet. Focusing on the digital public sector, the Estonia, Nigeria, Ireland, Uganda and Zambia. They
conference brought together nearly 400 public sector included senior ACCA member Karen Sanderson FCCA,
experts from 30 countries. We welcomed VIP delegates Executive Director, Industry and Government Services,
from across ASEAN and beyond, including the secretary NSW Treasury and member of the IPSASB Consultative
general of the Vietnam Association of Certified Public Advisory Group, a leading figure in the international public
Accountants, Dr Khanh Lam Tran. sector, who provided an update on the IPSASB’s current work
and priorities.
We also had a fantastically supportive conference partner
in the Singapore Accountancy Commission (SAC) with Given the shared challenges the sector is facing globally,
Chaly Mah, SAC’s chairman and his team closely working being able to draw on so many informed inputs from around
with ACCA to scope out the programme and engage with the world – especially from our own members – made this
the wider Singapore public sector. Chaly also delivered year’s public sector flagship event even richer. Chaly Mah
an inspiring keynote address focusing on Singapore’s Singapore
ambitions to develop itself as a global centre for
technology, innovation and enterprise and how digital Our eighth annual ACCA International
innovation is making this possible. Public Sector Conference was our
biggest yet, bringing together nearly
400 experts from 30 countries.
Karen Sanderson
FCCA
Australia
Dr Khanh Lam Tran

Vietnam
4
Value creation
model

How we create value How this generates our difference of
Societal impact
through our strategy reach, relevance and resources
Key resources Key value-adding activities Key outputs Key outcomes
Lead
People Use our pre-eminent Support and opportunities for
• employees brand to influence the A global network of partnerships members around the world
• member volunteers market that bring value to our global
membership The accountancy profession
world needs (ACCA’s vision)
Meeting the global demand from

Partners employers for a broad range of
• learning partners Attract
skills and a strong ethical compass
• universities Inspire people everywhere
• employers in the world to choose High-performing people across our
• accountancy and other ACCA operations and governance
professional bodies
Unrivalled global mobility for our
Sustain members
Demonstrate the value of Efficient and effective
Intellectual property a lasting relationship with organisations that are
and brand ACCA Ethical professional accountants responsibly run
with the skills required globally
A distinctive contribution to the

IT infrastructure Develop
development of accountancy and
and digital capability Grow our network to
business thought and practice
support our stakeholders
globally
to achieve their goals
Widespread market and statutory
recognition
Financial capital
Supported by our investment in

customer centred solutions, Public value
high-performing people, (supports UN SDGs
operational excellence and Best-in-class products and services Customer satisfaction 4, 8, 9, 11, 12 and 13)
Fees and subscriptions digitally-enabled flexible delivery

Case study
Connecting to build the profession in Afghanistan –
supporting CPA Afghanistan’s development
It’s been a truly historic year for the accountancy
profession in Afghanistan. With ACCA’s support,
Our partnership is helping fast-track
the new national professional body, CPA Afghanistan,
was established and held the country’s first national
the development of a sustainable
accountancy conference in December 2017. For a nation accountancy profession in Afghanistan.
seeking to rebuild after years of paralysing conflict,
it’s a remarkable achievement.
Brian McEnery, ACCA’s immediate past president Muhammad Zarif Ludin, programme manager and in-
made the first ever visit to the country by an ACCA Council charge, CPA Afghanistan is leading his dynamic team to
member to take part in this landmark conference. Brian develop the body’s structure and influence across all sectors
also hosted the country’s first ACCA new member and high of government and industry, supported by ACCA every step
achiever event, where 24 newly-qualified ACCA members of the way, including knowledge and information-sharing
received their certificates. Some of these new members to build capacity in the CPA Afghanistan team. Now that Brian McEnery FCCA
completed all their ACCA exams under Taliban occupation the profession is becoming established, CPA Afghanistan Ireland
without access to tuition or books, relying instead on is working with Kabul University on re-launching its
YouTube clips for guidance. accountancy programme after a 40 year absence – and this
will be modelled on ACCA’s Fundamental level papers.
ACCA has been working closely towards these inspiring
achievements with CPA Afghanistan since 2015. Today, Lucia Real-Martin, ACCA’s director – emerging markets
we have 1,000 ACCA students whose studies are being is the proud ACCA co-sponsor of this initiative and says: Lucia Real-Martin
supported by CPA Afghanistan with funding from The World ‘This partnership is helping fast-track the development of Australia
Bank. This year, we signed a new agreement which focuses a sustainable profession for the country and all the benefits
on strengthening CPA Afghanistan’s role as the national of financial stability that flow from it. Through this initiative,
professional accountancy organisation. we’re truly living up to our promise of developing the
accountancy profession the world needs – and achieving
this through the power of connections and collaboration.’
Muhammad Zarif Ludin

Afghanistan
Chief executive’s
strategic report
5
We improved our strategic performance
again this year, delivering our best set
of results to date under this strategy.
For the second year in succession, we met

four of the six strategic targets set by Council
and, for the first time, we met all four of our
capabilities targets (2016-17: three of four met).
Equally importantly, we’ve seen improved
performance, year-on-year, across all our
measures.

Chief Executive’s
strategic report
Performance highlights measures improved this year, with 41,000 more exams Although we didn’t achieve our student growth target,
entered than expected and the percentage of students we increased our overall student and affiliate file by 3.4%,
The most satisfying aspect of our performance is the passing exams during the year also improving. During the compared to 1.2% last year. At the same time, recruitment
continued increase in member, student and affiliate year, we moved to computer-based exams (CBE) entirely for grew by 2.4% on prior year, demonstrating the strong value
satisfaction levels. We achieved our highest overall our Fundamentals exams across nine countries – including of the ACCA brand in the marketplace.
satisfaction score (80.7%) under both this and our previous three of our largest markets. Following this successful
strategy – our strongest result since we began measuring implementation and with pass rates holding up well, we’ll be Student retention, at 84.7%, was 0.8% ahead of expectation.
satisfaction in this way – with significant improvement across extending CBE to a further 65 markets in the coming year. Having invested in specific initiatives around sustainable
members, students and affiliates. We’ve listened closely to recruitment policy and learning support in the past year, it
what our members and future members are telling us they Similar confidence is reflected across all our stakeholders and is pleasing to see these having a demonstrable effect on
need from ACCA in their markets and acted on that feedback is most clearly demonstrated by an exceptional set of brand progression to membership.
with speed and focus. For members, our celebrations around power scores. 2017-18 was the first year we achieved all ten
reaching 200,000 members in particular have enhanced elements that make up our Lead measure. Seven of these
engagement with, and pride in, ACCA. ten element scores have improved year-on-year by at least
1.9 percentage points, with the other elements remaining at
For students, we’re seeing more rapid progression to very high levels. Aligned to this, we saw our highest overall
membership, helped by investment in better and wider employer satisfaction score to date of 91%, a rise of 5.3
qualification support and guidance. All our progression percentage points year-on-year.

We achieved our highest overall
satisfaction score (80.7%) under both Our future focus In addition to our strong performance
foundations, we believe we have better tools
this and our previous strategy –
With the significant changes we’re than ever to help us plan for ACCA’s future.
our strongest result since we began bringing to the market through our We’ve now mapped out the entirety of our
measuring satisfaction in this way – ACCA Qualification innovations, we’ll strategic change to 2021-22, so we have a
with significant improvement across need to continue to work hard with all clear view of the complete transformation
our stakeholders – especially our learning we need to deliver in the medium term.
members, students and affiliates
partners and employers – to ensure they are Our immediate future will include developing
adopted successfully. The whole organisation our next strategy to 2025 and work on this
will therefore be focusing on this single will begin in earnest in the coming year. We’ll
shared strategic priority during 2018-19. also begin the reforms to our Governance
structures which will give us even greater
Strategic challenges programme of ‘train the trainer’ sessions
We’ve also reorganised our global markets agility – a key imperative for the global
and our response led by some of the most respected ACCA
portfolio for 2018-19, moving from five to six environment of today and tomorrow.
lecturers in the world. We’ve also begun
key portfolios. This includes new expanded
We’re continuing to roll out our ACCA working with our most significant learning
regions of Greater China, ASEAN and Our strong foundations have been built as
Qualification innovations and working partners in a more strategic and collaborative
ANZ, and Africa, better reflecting regional a result of powerful connections. ACCA’s
more closely than ever with learning way so they have a greater input into our
economic links and synergies. continued progress relies on the success of
providers to bring them on this journey plans. As a result, we’re excited about the
our members, students, learning providers,
with us. The changes we’re making are next ACCA Qualification milestone – the
And to reinforce our leadership position and employers and many other key stakeholders.
necessarily revolutionary – because this is first sitting of our new Strategic Professional
our commitment to shaping the profession We thank every part of this incredible global
what employers and the market have told exams in September 2018.
and delivering value to society, we’ve network for making 2017-18 such a landmark
us is demanded – and we therefore don’t broadened our strategic vision to be #1 in year for ACCA.
underestimate the effort and commitment Although we had another record intake of
developing the profession the world needs
required by learning providers to implement new members, we continued to see falling
for the remainder of our current strategy.
them. This year, we worked in partnership member retention. We ended the year 0.5%
with our learning network around the world behind our target, with overall retention of
to provide them with the specific skills 97.4%. Satisfaction levels tell us that we are
needed to teach our new generation exams. increasingly in tune with members’ needs
Helen Brand OBE
At the core of this has been our largest ever but we will look specifically at our member
Chief executive
outreach to tutors through an expanded retention drivers in the coming year.

Case study
Providing member input
direct to the UK government
ACCA took up the Secretariat role of the UK government’s Rhonda Best FCCA, director, Alexander Bain is an
All Party Parliamentary Group (APPG) for International ACCA Council member who sits on the Professional
Trade and Investment this year. As part of our organising Services Advisory Group. This Group was set up to identify
role, we’ve established nine sector-specific Sector Advisory both the obstacles faced by professional services firms
Groups, comprising 10-15 senior business representatives, when expanding operations overseas as well as the way
to identify barriers to trade in their industries. These that professional services such as accountancy advise UK
representatives include ACCA members with related sector businesses currently trading internationally. In March 2018,
expertise who are providing direct input into government the group presented their paper at a meeting with the
strategy – demonstrating the insight ACCA members Secretary of State for International Trade.
across the UK have into the varied motivators or barriers
to international trade.
Through their involvement in APPG
Alex Falcon Huerta FCCA, CEO and founder, Soaring sector groups, ACCA members in the
Alex Falcon Huerta FCCA
Falcon sits on the Smart Technologies and Digital Services UK are providing direct input into UK
Advisory Group, offering insight from her extensive government thinking on trade.
experience in practice. The output from this Group has
been a ‘Challenge Paper’ presented to the Secretary of
State for International Trade, Liam Fox MP, that called Dermot King FCCA, managing director - Butlins and
on government to reduce bureaucracy around director - Bourne Leisure sits on the Hospitality, Tourism
international data transfer and protections, introduce and Leisure Advisory Group, led by the British Hospitality
Rhonda Best
business registration packages to encourage innovative Association. The Group has produced a full report which
FCCA
tech companies to set up in the UK and align EU regulation was sent directly to the Secretary of State’s office.
UK
to safeguard continued private investment.
They – and all the ACCA members involved – are making
a significant contribution to national trade and investment
policy at a critical time for the UK.
Dermot King FCCA

UK
6
Our global
context

External factors with greatest impact to 2025
Development of intelligent automated Threat: Disappearance of lower-level roles and skills

accounting systems (including fintech Opportunity: Further movement of accounting professionals
and blockchain) up the value chain
Rate of change and economic volatility Threat: Challenges in forecasting and greater uncertainty
for entities and individuals
Opportunity: Greater demand for analysis and interpretation
skills to mitigate the threat
Broadening measurement and Threat: The profession is too slow to adapt to the change
expectations of business value and or resists it entirely, with other professions taking this space
demands of external stakeholders Opportunity: A wider and more valued role for
professional accountants
Greater harmonisation of accounting Threat: More and wider choice of employees for organisations
Our ability to anticipate the future is
and business standards leading to increased competition
critical to our success – and the success Opportunity Greater mobility and one clear language
of our members, future members and for the profession
partners. Our wide-ranging research
on the future economic, professional Cloud computing Threat: Increased cyber and data security risk and inability
and social landscape draws on the of the profession to adapt quickly enough to this
Opportunity: Unlimited virtual storage gives more entities
expertise across our global network.
and individuals greater competitive advantage
Through this, we’ve identified the main
factors expected to have the greatest
Different aspirations and expectations Threat: Lack of appeal of traditional professions
impact on the accountancy profession of next generations Opportunity: Chance to reshape the role of professional
over two timelines – to 2025 and accountants for a new age
beyond 2025.
From Professional accountants – the future global research (2016)

Addressing these medium-term factors has fed directly into our ACCA Qualification Thinking about the longer term, we’re starting to develop our Strategy to
innovations such as the extension of computer-based exams, our Ethics and Professional 2025. In 2018-19 we’ll be engaging again with ACCA’s global network as
Skills Module (launched in October 2017) and our Strategic Business Leader integrated we analyse the trends that are most likely to shape our future.
case study exam (to be launched in September 2018). They are also informing our
CPD offerings for members. The immediate economic outlook and our response
In 2017 there was strong growth in all the world’s major economies
External factors with the greatest impact after 2025 and the outlook for 2018-19 remains promising.
According to the latest World Economic Forum annual economic report,

Changes in direction for Threat: growth in China is set to slow slightly over the next year (but will still be
global governance and roles, The profession and its members fail to comparatively strong) and the future looks bright for other emerging markets.
and the influence of emerging keep up with the changes, especially India, with its government reforms and buoyant private consumption, seems
global powers and regional in relation to cross-border regulation likely to retain its spot as one of the fastest-growing economies in the world.
and global institutions and trade Growth in the rest of Asia should also hold up well, with exports likely to be
the main engine of growth. The outlook for developed markets is also broadly
Opportunity: If the profession works positive. Our global network and our continued investment in talent and
together, it can be instrumental in infrastructure in markets will enable us to help sustain initiatives and create
building a more connected and stable sustainability through financial capability and connections, especially
global financial system in relation to international trade developments such as China’s Belt and
Road Initiative.
Changing societal Threat: If the profession fails to adapt, We keep a watching brief on political developments that might affect ACCA.
expectations and evolving it risks becoming obsolete Our widespread market portfolio means risks around Brexit are somewhat
scope and nature of the mitigated, with the most significant threat being the potential of decreased
professional accountant’s role Opportunity: Chance to reinvent the regulatory recognition for UK professional bodies. We have, however, included
profession for a new age risks around Brexit in our corporate risk register. As political tensions between
Russia and the West intensify, we see no immediate threat to our ability
to operate in the country but are alert to unfolding developments.
From Professional accountants – the future global research (2016) Our connected global network remains critical in anticipating what
developments most affect our members and our partners and adapting
to realise opportunities and manage challenges.

Case study
Drawing on fintech expertise
to keep members ahead
Advances in technology are challenging established Tamara Littleton, CEO, The Social Element and Polpeo,
businesses and business models, with organisations in a race shared her social media expertise for the report, highlighting
to remain relevant to their customers and communities. the opportunities it presents and pitfalls to avoid, including
the need to plan effectively for crises and simulate how
A new ACCA insight report, Race for relevance: technology to manage reactions. Sanjay and Tamara showcased their
opportunities for the finance function, was published knowledge in greater depth as part of our 2017 Accounting
in December 2017 and explores the opportunities and for the Future online conference.
challenges that current and emerging technology presents
for finance leaders in the face of extraordinary digital change. Rashika Fernando FCCA, director, enterprise project
It shares expert perspectives from leading executives across management at Scotiabank has led events in his market –
the globe – from within the profession and beyond – on the Canada – on insight from the research, bringing it alive for
technologies changing the face of the finance function and our members.
how business is run.
Sanjay Rughani ACCA
We’ll be continuing to showcase these technology topics
Tanzania
Sanjay Rughani ACCA, CEO, Standard Chartered Tanzania around the world throughout the coming year, including
and deputy chair of IFAC’s Professional Accountants at the World Congress of Accountants in Sydney during
in Business committee highlights how CFOs can use November 2018: www.accaglobal.com/insights
technology to inform and actively shape the business’s
strategic direction. saying ‘analytics helps you to look at
macro data, human behaviour and your own performance,
Tamara Littleton
you combine everything towards good decision making. Our Race for relevance report shares
UK
It enables you to think forward, think strategically, about expert perspectives on technologies
business goals and solutions’. transforming the finance function.
Rashika Fernando FCCA

Canada
7
Stakeholder
engagement
and materiality

ACCA actively manages a wide range of stakeholder relationships, recognising that our
success and sustainability depends on their input and involvement:
Our main stakeholders Why they’re important How we engage with them
Members Members are core to ACCA’s existence. We work to protect and We have a network of member panels across the world which
enhance the value of the ACCA designation and aim to help bring members together and allow them to feed into our
members maintain and develop their employability by supporting strategy and governance, both independently and via ACCA’s
them through their careers, on a global basis. International Assembly. Our main governance body is composed
entirely of elected ACCA members. We also engage and inform
members through regular communications, including our monthly
Accounting and Business magazine, email campaigns and quarterly
seminars delivered by Council members and connect members to
opportunities through our global ACCA Careers online jobs portal.
Students and affiliates* We support students and affiliates by promoting the value of In addition to what is delivered through our learning providers,
the qualification to employers and, in partnership with learning we have built up a wide range of student and affiliate qualification
providers, developing the support and information they need to support and services, including an ACCA Learning Community, free
achieve the qualification. webinar and digital support and support products such as ACCA-X.
We connect students and affiliates to opportunities through our
global ACCA Careers jobs portal. We also engage in-market with
students and affiliates to offer targeted, face-to-face support.
Our investment in closer working relationships and support

for learning providers also directly benefits students.
Learning providers Learning providers are an essential partner. They provide the We have dedicated employees around the world who manage our
examination training needed by students and it is important relationships with learning providers and ensure there is two-way
that ACCA works closely with them so that we have a shared dialogue. We also hold regular global and regional conferences
understanding of the current and future learning landscape. As for ACCA learning providers. In the past year – and to support the
we introduce significant innovations to the ACCA Qualification, further roll-out of our ACCA Qualification innovations – we have
we recognise that supporting learning providers to adopt them is introduced more targeted training for ACCA tutors, delivering
critical to our future success. Creating this readiness to embrace and training to over 1,000 tutors globally. We have a dedicated support
champion the changes remains a critical part of our focus in 2018-19. section for learning providers on our website.

Our main stakeholders Why they’re important How we engage with them
Employers Employers are key stakeholders because their current and future These relationships have dedicated relationship management within
skills needs determine the shape of the ACCA Qualification, how we ACCA at a national, regional or global level.
train members and how we ensure their skills remain relevant. They
are the primary users of the skills of ACCA accountants and provide
students with the workplace experience needed for qualification.
In this, they play a central role in determining demand for the ACCA
designation. Without their support and buy-in, members cannot
pursue the careers to which they aspire.
National and international Through inclusive partnerships, we are able to extend the range of These partnerships have dedicated relationship management within
body partners services and recognition available to our members. We also have ACCA at a national, regional or global level.
a supplier relationship with many of these organisations, where we
provide contracted services (such as practice monitoring).
Governments, donor agencies, We engage with regulators and standard setters around the world These relationships have dedicated relationship management within
standard setters and regulators to ensure we have the opportunity to influence the development ACCA at a national, regional or global level.
of standards and regulation, with ACCA members and senior
employees serving on influential forums and boards across the
international profession. We work with governments to ensure they
understand and value the contribution ACCA makes to national
economies and support donor projects that encourage capacity
building.
Suppliers We rely on a number of key suppliers and providers to deliver All key suppliers have dedicated relationship management at a
services and support, particularly IT services and our international team, directorate, market office or global level, depending on the
examining network. scope and nature of the supplier arrangement.
*affiliates are students who have completed all ACCA’s examinations but have yet to apply for membership,
most commonly because they are still working towards the practical experience requirement.

Materiality matrix
EXTERNAL
1
INTERNAL
RANKING
RANKING
19 20 2

Matter/Topic 18
1 Relevance and integrity of the ACCA qualification 1 1 18 3
16
2 Brand recognition 2 2
14
3 Member professional and career development 3 8
12 4
17
4 ACCA’s global presence 4 12
10
5 Public influence & thought leadership 5 10
8
6 Statutory recognition and licence to operate 6 5
6
7 Strength of relationships with strategic partners 7 11 16
5
8 A customer-centric organisation 8 7 4
9 Stakeholder engagement & responsiveness 9 15 2
10 Student and member growth and retention 10 6 0

6
11 Value for money 11 18 15
12 Effective and efficient internal governance and compliance 12 17

13 Learning provision: reach, resilience and quality 13 2
14 Public value contribution 14 4
14 7
15 Robust and flexible IT systems 15 16
16 ACCA’s financial health 16 9
17 Diversity through accessibility 17 13
13 8
18 Employee engagement 18 13
19 Direct economic contribution 19 19
12 9
11 10 Internal
External

In addition to seeking regular feedback from stakeholders Material issue
on ACCA and the services we provide, we also ask them
for input on this report. Since adopting integrated reporting
in 2011, we’ve consulted annually with stakeholders across 1 Relevance and integrity of the ACCA Qualification
a range of markets on the content and presentation of our
integrated report. This has been an iterative process that 2 Brand recognition
has enabled us to build a picture of how our reporting can

best meet readers’ needs while meeting the requirements
3 Statutory recognition and licence to operate
of the International <IR> Framework.

4 Member professional and career development
This year, we’ve taken the opportunity to bring our

5 Learning provision: reach, resilience and quality
future strategy development work and our materiality
assessment closer together. We asked International 6 A customer-centric organisation
Assembly (IA) members – as the appointed representatives
of all our member networks around the world – to provide 7 Student and member growth and retention
an external view on materiality and future strategy.
We invited IA members to rank our 19 potential material 8 Public value contribution
issues – arrived at through detailed analysis of the profession
and key global competitors – and input on the drivers that 9 Public influence and thought leadership
might shape ACCA’s future strategy.
10 Strength of relationships with strategic partners
ACCA’s employees on our Leadership Group also

undertook the same exercise to provide the internal
11 ACCA’s global presence
view of material issues.

12 Stakeholder engagement and responsiveness
13 ACCA’s financial health
14 Effective and efficient internal governance and compliance
15 Robust and flexible IT systems
16 Value for money
17 Diversity through accessibility
18 Employee engagement
19 Direct economic contribution

Case study
Connecting to support the
accountancy profession in Rwanda
ACCA has been working in partnership with the Institute Bosko Karake Mkombozi, iCPAR’s president and the
of Certified Public Accountants of Rwanda (iCPAR) since body’s leadership team are implementing impressive
2016, under a joint capacity building project with the UK’s developments through this work, including strengthening
Department for International Development (DfID) and the the capabilities of the institute itself and enhancing core
International Federation of Accountants (IFAC). This year, offerings in CPD and technician level skills. This work
we’ve continued to work closely with iCPAR to embed acknowledges that the government’s Rwanda Vision 2020
and advance their strategy to 2021. is dependent on the establishment and development of
ethical organisations that adopt good governance practices
It’s a textbook example of national and international and provide financial information based on international
accountancy organisations combining expertise, with standards. A certified accounting technician qualification for
the support of government, to create lasting economic Rwanda is under development and policy and content for
benefit. Rwanda defined its long-term development goals member development offerings are also being scoped out.
in its Vision 2020 programme, which aims to transform the
Bosko Karake Mkombozi
agriculture-based economy into a knowledge-based, Alta Prinsloo, IFAC’s executive director, quality &
Rwanda
service-oriented one by 2020. development is responsible for global accountancy
profession development initiatives at IFAC, including
accountancy capacity building, and has been instrumental
in bringing this and many other international projects ACCA
ACCA is privileged to be working
supports to life. ACCA is a proud IFAC member – and we’re
with iCPAR on its journey towards
most proud of the capacity-building work our membership
supporting the Rwandan government’s Alta Prinsloo
enables us to undertake.
vision for the future. USA
Jamil Ampomah, ACCA’s director – Africa says: ‘ACCA

is privileged to be supporting iCPAR on this journey. Our
work together is multi-faceted and will deliver for Rwanda
on numerous levels, helping drive regional and international
competitiveness and ultimately enhancing investor
confidence and supporting economic growth’.
Jamil Ampomah
Ghana
8
Our Strategy
to 2020

Although our Strategy to 2020 Members are core to the very existence of
remains valid, we have taken the ACCA and are at the heart of everything we do.
Through our 2020 Strategy we aim to secure a
opportunity to broaden our vision vibrant future for ACCA and our membership.
definition for the coming and
successive years.
Vision
Our revised vision is to be #1 in developing the
#1 in developing professional accountants the world needs
accountancy profession the world needs and our
measure of success remains the number of ACCA
members globally. The change in our vision statement
recognises the greater emphasis we will be putting on
aspects of our strategy that support the accountancy Our Difference
profession as a whole, allowing us to both widen our reach, relevance and resources
opportunities and emphasise our focus on delivering

value to the wider profession, alongside supporting
our members.
Attract Develop Sustain
on behalf of our members

Inspire people everywhere Grow our network to support our Demonstrate the value of a
in the world to choose ACCA stakeholders to achieve their goals lasting relationship with ACCA
Outcomes
Lead
Use our pre-eminent brand and reputation to influence the market
Customer centred solutions High performing people Excellence across all

driven by market insights motivated to deliver our Strategy aspects of our operations
Capabilities
to deliver
Digitally enabled and flexible delivery that is responsive to evolving customer needs

Our vision of being #1 in developing the accountancy Our outcomes on behalf of our members: This links explicitly to UN SDG 9, 11 (Sustainable cities
profession the world needs recognises ACCA’s critical and communities), 12 (Responsible consumption and
role to shape and lead the profession. Through our global We will attract a diverse range of talent to the profession production) and 13 (Climate change).
network of members, future members and partners we through offering an accessible and flexible qualification
will deliver value to the public by: which provides a broad range of skills and the ethical Our capabilities to deliver:
compass demanded by employers in every sector
• acting in the public interest around the world. Customer-centred solutions driven by market insights.
• promoting ethical business We will lead the development of the profession by
This links explicitly to UN SDG 4: Quality education: anticipating and understanding market needs to develop
• supporting economic growth.
ensure inclusive and equitable quality education and a relevant, rigorous and high-quality qualification that
promote lifelong learning opportunities for all. our customers need and value.
This links explicitly to UN Sustainable Development
Goals 4 (Quality education) 9 (Industry, innovation, We will develop complete finance professionals who are High-performing people motivated to deliver our strategy.
infrastructure), 10 (Reduced inequality), 11 (Sustainable cities supported, trained, examined and regulated to the same Our people, diversity and values are at the heart of what
and communities), 12 (Responsible consumption high standard globally. makes ACCA unique and successful. We will be outcome
and production) and 13 (Climate change). and performance focused, energising and empowering our
This links explicitly to UN SDG 4: Quality education: ensure people to deliver their best for ACCA.
Our difference inclusive and equitable quality education and promote
lifelong learning opportunities for all. Excellence across all aspects of our operations. We will
ACCA’s reach, relevance and resources combined are what be operationally excellent, delivering maximum value and
make us so different and are at the heart of our success; this A vibrant future for ACCA and our members will be focusing the organisation towards continuous improvement.
is our great source of competition: sustained through growing our presence in existing and
emerging markets. Digitally enabled and flexible delivery that is responsive
• R
each – our global network, outlook and ambition, to evolving customer needs. We will be proactive and
which is at our core This links explicitly to UN SDG 9: Industry, innovation, responsive, delivering efficiently through our digital
• R
elevance – our comprehensive, flexible and accessible infrastructure: build resilient infrastructure, promote inclusive capabilities and global, regional and local relationships.
qualification which enhances employability and sustainable industrialisation and foster innovation.
• R
esources – our scale and ability to generate, leverage
and deliver value on behalf of our members. We will lead the profession in demonstrating to policy Beyond 2020
makers, employers and the public the value professional
accountants bring to society by creating successful
We have started working on our Strategy to 2025
businesses and sustainable economies.
development and progressing this will be an important
part of our programme of work in 2018-19.

Case study
Connecting learning providers
across the Indian subcontinent
By collaborating closely across our ACCA markets network, We helped enable shared access to a CBE practice platform
we’re able to identify ways our partners can work together for between SKANS and ANSA and set up a WhatsApp group
mutual benefit. And as we’ve worked ever more closely with for the two colleges to talk and collaborate. Following
some of our most forward-looking strategic learning partners a demo, SKANS developed a bespoke online ‘campus
in the past year, we’ve been able to tap into their innovation platform’ for ANSA to meet their requirements, working
and expertise to support our wider network. closely with ANSA to set this up. The new platform enables
ANSA to upload their own questions, create their own
Helping two of our strategic partners in India and Pakistan tests and evaluate their students.
connect is a great example of the sort of work we’re doing.
Sajid Hussain, CEO, SKANS Education (Pvt) Limited
Dr R S Murali, director and senior tutor at ANSA says: ‘In the context of emerging Pakistan, we are in
in Chennai, India and his team were looking to access partnership with ACCA and are producing strategic thinkers
CBE practice for their ACCA students and we knew SKANS, that can steer the country in the right direction. We are also
Dr Murali
a highly innovative and entrepreneurial strategic learning moving these efforts beyond the borders as we believe in
India
partner headquartered in Lahore, Pakistan, could provide providing effective support to new ALPs across the globe
valuable support. for them to successfully implement the qualification’.
Sayee Rakshith is just one of ANSA’s students who

is benefitting from this inspired piece of collaboration
between two truly committed ACCA learning providers.
Sajid Hussain
Pakistan
Connecting two of our learning

partners in India and Pakistan is
a great example of the sort of
collaborative work we’re enabling.
Sayee Rakshith
India
9
Our strategic
performance
in 2017-18

Vision
#1 in developing professional accountants
the world needs (widened from 2018-19
to become developing the accountancy
profession the world needs)
What this means in practice: Strategic measure: Why we use this measure:
by delivering our strategic outcomes number of members. the expertise and ethics of our members
(Attract, Develop, Sustain and Lead), are the main way we create value. The
ACCA and our Qualification will be seen as number who invest in our Qualification
leading the profession in innovation and shows the value and utility of our brand
quality. This means ACCA will be the most in the global marketplace.
sought-after global designation in
the profession and the clear choice
for individuals and employers seeking
an internationally-recognised
accountancy qualification.

Five year performance:
2013-14 2014-15 2015-16 2016-17 2017-18 2017-18 2018-19

Actuals Target
# of members 169,602 178,169 188,837 198,614 208,549 207,600 218,000
Year on year growth 4.7% 5.1% 5.9% 5.5% 5.0% Target met 5.0%
Commentary
We had another strong year of member growth, This strong intake is contrasted with a pattern of falling
reaching 208,549 members globally and exceeding our member retention. While retention remains relatively high
growth expectations. We welcomed record numbers at 97.4% globally, we’ve seen it decline over the past few
of new members during the year, with 15,249 members years. Part of this trend is the natural result of a maturing
joining our ranks from 120 countries, over 1,000 more membership, but there are challenges we need to address in
than we expected. explaining and promoting our revised reduced subscription
policy and in markets where members routinely hold more
than one professional accountancy qualification. Our global
and country-specific member retention activity will continue
in 2018-19 and we’ll also be undertaking detailed work to
better understand retention drivers by market. Nevertheless,
our member satisfaction and brand perception scores
indicate that the value of ACCA provides is well understood
and appreciated by members and so we believe we have
strong fundamentals to build on.

Our difference
reach, relevance and resources
What this means in practice: Strategic measure applied: Why we use this measure:
that we invest in ACCA’s unique net operating surplus/deficit. this measure is used to demonstrate the
combination of reach, relevance and extent to which we have exercised good
resources, as our differentiator in the financial discipline and also how we have
profession and our greatest source of invested against our strategy during the
competitive advantage, now and year. This KPI measure is consistent with the
into the future. operating surplus reported in our statutory
accounts, net of finance costs.

Financial performance in 2017-18
On a like-for-like basis, our financial performance was well ahead of expectations Revenue (£ million)
for the year, delivering a net operating deficit of £8.6m. One-off gains on the 210.0
disposal of investments, which were subsequently reinvested, amounted to 200.0

£33.4m and resulted in a net surplus for the year after tax of £16.7m.
190.0
The financial year 2017-18 saw us breaking through the £200m barrier for the first 180.0
time. Total revenue was £201.1m, which represented a 10.4% increase on the prior 170.0
year. This was achieved by a combination of strong growth in our student and
160.0
member population; increased student activity in the number of exams sat as
a result of the four exam sessions now fully embedded; and increases in the 150.0
number of exemptions awarded, representing an improvement in the quality 140.0

of student acquisition.
130.0
120.0
£182.2
£201.2
£163.9
£159.0
£176.1
110.0
100.0
2014 2015 2016 2017 2018
Despite an increasingly competitive marketplace which has seen new market entrants
and new product offerings, our continued focus on strategic pricing initiatives and
commercial relationships in key markets has ensured that our offering remains
competitive and affordable.
Our Strategy to 2020 has identified the scale of the opportunity for future growth and
we expect our revenue to continue to deliver sustainable growth, although at a lower
rate than previously anticipated.
Obtaining value for money from investment of our members’ funds remains a key
objective, whether to support our growing global footprint, or in the continued
development of our exam offering. We adopt close monitoring to ensure that costs
remain tightly controlled and maximum value achieved; this is demonstrated in our
ability to deliver a like-for-like operating deficit which was ahead of expectations.

Operating Expenditure (£ million) The rate of increase of 11.7% in operating expenditure exceeded the growth in
revenue during 2017-18, although it should be noted that it was broadly in line with
200.0
the original budget (0.5% favourable). Much of the increase resulted from ongoing
190.0
investment in activity to ensure that we continue to attract and develop a customer
180.0 base which delivers sustainable growth. This includes enhancing ACCA’s presence
170.0
in various markets through office relocations, moving to SaaS solutions for IT and
investment in strategic initiatives to move to the computer-based exam model,
160.0
ensuring that we continue to lead the profession in terms of content and method
150.0 of delivery. We also continue to invest in member-focused activity, which is borne
140.0
out by the increased customer satisfaction metrics delivered during the year.
Focused investment in strategic initiatives, including the ongoing improvement
130.0
to our core infrastructure, will ensure that we are well positioned to maximise
120.0 opportunities in future years.
£188.6
£168.9
£161.5
£133.1
£147.8
110.0
Going forward, our Budget for 2018-19, which was approved by Council in March,
100.0
contains specific efficiency targets that will ensure that we maintain our cost focus
2014 2015 2016 2017 2018
and obtain value for money from our resource utilisation.
Our expenditure on strategic investment, including the exam portfolio and IT

infrastructure, amounted to £21.2m. This was against an original budget of £19.5m.
During the year, it became clear that additional funding would be required to ensure
our key markets and supply chain were aware of, and supported, the changes to
the syllabus and exam delivery. A programme was established to undertake the
necessary marketing, tuition support, business readiness and partner incentivisation
across our key markets. The main aim was to improve the exam uptake and to
ensure that the change to deliver F5 - F9 papers by computer-based-exam (CBE)
was accepted.
This affirms that we are well positioned to successfully manage our growth ambitions.
We have several key multi-year projects in progress that seek to transform the way
we do our business in a digital environment, improving the customer experience and
ensuring our fundamental building blocks are robust and have the agility to support
our business model.
Our programme of strategic investment expenditure is planned to continue

as we implement our strategy.

The main variances from target for the key components of net operating
deficit are summarised below.
Net operating deficit (£ million)

(0.0)
(2.0)
(4.0)
(6.0)
1.1
(8.0)
£m
(1.5) (8.6)
(10.0)
(12.0)
(14.0)
2.9
(16.0)
7.2
(18.0)
(18.3)
(20.0)
Target Fees & Operating Operating Strategic Actual

Subs income Expenditure Investment
Fund
Our revenue growth was much higher than target and our ongoing strong cost
control enabled operating expenditure, including budgeted contingency, to be
released into net operating deficit.

Other financial information
There are a range of transactions that and previously recognised net unrealised
arise after net operating deficit is gains of £27.1m were recycled through
accounted for, including investment other comprehensive income under IAS1
income and other comprehensive and subsequently reclassified. Other
income. comprehensive income also included
unrealised gains on investments and
Our total comprehensive result for the currency reserve movements.
year to March 2018 amounted to a
deficit of £2.5m. Realised gains on the
disposal of investments of £33.8m were
recognised in the profit and loss account
During the year, ACCA revised its investment In the ordinary course of business ACCA
strategy to seek further diversification of the undertook a review of its various income
Total comprehensive result (£ million) portfolio with reduced volatility. As a result streams and ascertained during the year
30.0
over £80m of investments were realised in that there was additional income chargeable
33.8
the first quarter of the year and reinvested to corporation tax. This was disclosed and
25.0 in new funds. This crystallised gains of agreed with the UK tax authorities and the
(1.4) 4.6 (23.8) £33.8m due to the strong performance in liability settled in the year.
20.0
previous years. The value of our investment
portfolio at March 2018 was £106.2m, an The balance sheet remains very strong and
15.0 (7.7)
increase of £7.7m, and demonstrates another provides ACCA with a platform to continue
£m
10.0 year of good performance, following the to deliver sustainable growth.

reinvestment.
5.0
(2.5) We operate defined benefit pension

-
schemes in the UK and Ireland, both of which
(5.0) are closed to future accrual. These schemes
0.6
are valued each year-end and actuarial
(10.0) (8.6) gains or losses are taken to comprehensive
income. This year, the actuarial gains
(15.0)
amounted to £4.6m, which was driven by
Net Investment Realised Pension Tax Actuarial Other comp Total OCI a change in the financial assumptions e.g.
operating income Gains costs losses income
deficit small increase in the discount rate and a fall
in the inflation rate.

Funds and reserves (£ million)
80.0
70.0
60.0
50.0
40.0
30.0
£68.3
£60.9
£63.4
£59.6
£74.0
20.0
2014 2015 2016 2017 2018
Council has a long-term target to build Total assets have grown from £202.2m
the Accumulated Fund to 60 days of to £208.0m. At March 2018, our investment
operating expenditure. At March 2018, the portfolio including short-term cash funds was
Accumulated Fund represented 77 days of £131.2m and our cash balances were £17.2m.
operating expenditure.
More detailed financial information is
Council also monitors balance sheet available in our consolidated financial
liquidity, measured as the number of days statements.
of operating expenditure held in liquid
assets (investments and net current assets).
At March 2018, the liquidity measure was
205 days compared to a long-term target
of 120 days.

Attract
inspire people everywhere
in the world to choose ACCA
developing the ACCA Qualification so number of students. it shows our success in extending the
that it continues to provide the skills and appeal of our qualification to the next
professionalism demanded by employers generation and the strength of our
globally in every sector and promoting membership pipeline.
ACCA through a vibrant and forward-
looking brand.

2013-14 2014-15 2015-16 2016-17 2017-18 2017-18 2018-19

Actuals Target
Total students and
435,824 455,778 480,813 486,514 503,262 505,100 521,200
affiliates
Year on year growth Target not
2.3% 4.6% 5.5% 1.2% 3.4% 3.6%
rate achieved
Commentary
Although we did not hit the ambitious global student target We achieved our objective of improving student retention
we set, we saw a significantly improved overall growth rate, this year, moving this up by 1.7% on last year to 84.7%. This
driven by strong demand for ACCA across our global market was driven by both developing and promoting more and
portfolio and stronger retention than in previous years. wider student support and our focus on recruiting students
who are informed, motivated and supported to progress.
On the recruitment front, we welcomed 106,021 new students
from 160 countries – a 2.4% increase on the prior year – with
China, the UK and Nigeria performing especially well.
Through continued investment in our markets network and

more defined operating models for our key markets, we
expect to slightly improve our rate of growth in 2018-19.

Develop
grow our network to support our
stakeholders to achieve their goals
we develop members and students by 100% of our three student progression it gives a rounded picture of the main
investing in support that enables them to targets of: 775,800 exams entered during factors that affect progress to membership.
achieve their professional goals. the year; 67.1% of ACCA affiliates achieving
membership in four years; 36.2% of
students passing exams in the past year.

Student progression factors 2013-14 2014-15 2015-16 2016-17 2017-18 Achieved 2017-18 2018-19
Actuals Target Target
# exams entered during Target

816,898 762,347 837,192 774,911 817,058 775,800 786,000
the year achieved
% of affiliates achieving Target not

68.8% 68.5% 68.8% 66.1% 66.9% 70.0% 66.9%
membership in four years achieved
% of students passing Target

38.4% 36.4% 34.7% 36.2% 36.9% 36.2% 38.0%
exams in the past year achieved
Target not
Overall achievement
achieved
Commentary
During the year, we saw improvement in performance across We also saw improved progression, with a 0.7% increase Although we were able to increase the percentage of
all the three elements that make up our Develop target. in the percentage of students passing exams in the past affiliates achieving membership in four years by 0.8%
year. We worked hard to widen the range of exam support year-on-year, we narrowly failed to achieve our overall
Having included the number of exams entered as an available and the way we promote it, so it’s pleasing to element target. Because achievement of this outcome
element measure last year – because of its link to our see this reflected in better student progress. measure relies on us meeting all three elements, we
financial sustainability and recognising the extent of the therefore failed the measure overall. However, we believe
exam change we have been introducing – we were pleased we have good progress to build on for next year.
to outperform the target we set, with over 41,000 more
exams entered than we originally anticipated.

Sustain
demonstrate the value of a lasting
relationship with ACCA
we deliver and communicate the tangible member and student satisfaction. it shows the overall happiness of members
value of a relationship with us to our and students with our brand and services.
members and students so that they remain
committed to, and advocate for, ACCA.

Five-year performance:
2013-14 2014-15 2015-16 2016-17 2017-18 2017-18 2018-19 Students
Actuals Target
Our student satisfaction stands at 82.5%, up 4.4 percentage
Member and student points on last year.
71% 70% 72% 76.9% 80.7% 78% 80%
satisfaction†
This has been driven by significant improvements in value
† survey measures for students, members and affiliates are judged achieved if within +/- 1.5% of the target to for money/affordability metrics across the year – the number
allow for accepted survey variations. Based on 35,194 members, affiliates and students responding globally.
one driver of satisfaction for students – and perceptions
around ACCA’s commitment to helping students succeed.
The investment we’ve made in ACCA resources to support
Breakdown of 2017-18 Members: Students: Affiliates: students through their exams and our indirect support
actual figure 79.5% 82.5% 75.7% through better and deeper engagement with learning
providers have been significant factors in
driving improvement.
Commentary Members Affiliates
We’re delighted to see satisfaction rising again this year, Member satisfaction rose to 79.5%, an increase of 3.1 Affiliate satisfaction has increased to 75.7%, which is an
reflecting increases across our member, affiliate and student percentage points on last year – its highest level since 2012. increase of 5.1 percentage points on last year. Of these,
categories. Our final combined satisfaction score was 48% report that they are very satisfied (the highest level of
80.7%, an increase of 3.8 percentage points on last year’s Our focus on delivering member value in 2018-19 has been endorsement), up 7 percentage points on last year.
result, meaning that overall satisfaction is at its highest a driving factor behind these improved scores.
level since 2010. Employability and career progression is the top driver of
In addition to further developing member services and satisfaction for affiliates and all measures relating to this have
support, we believe sustained engagement – particularly increased in the past 12 months. Strong progress has also
around our global 200,000 members celebrations and our been seen in satisfaction with ACCA’s support and assistance
ACCA Qualification – the future innovations – has increased in gaining relevant work experience.
pride and confidence amongst members. We’re aiming to
maintain this high level of satisfaction in the coming year, Although we’ve seen the largest increase in overall
with our customer journeys work enabling us to further satisfaction amongst affiliates, the fact that this remains at
improve members’ ACCA experience. a lower level than that of members and students means we
need to continue to focus on supporting this group through
the specific challenges they face.

Lead
use our pre-eminent brand and
reputation to influence the market
we aim to lead the profession in brand power, assessed through it gives us a rounded picture of
demonstrating the value professional 10 elements covering brand awareness, brand resilience and impact across
accountants bring to society, which brand stature, brand reputation our main stakeholder groups.
also relies on a strong, visible and and global market share.
credible brand.

Performance:
2014-15 2015-16 2016-17 2017-18 2017-18 2018-19

Measures Actuals Target
Members who’ve recommended ACCA† 60.6% 57.5% 60.2% 63.5% 63.0% 66.0%
Students who’ve recommended ACCA† 70.0% 71.1% 74.2% 78.1% 75.0% 80.0%
Affiliates who’ve recommended ACCA† 64.0% 65.4% 67.7% 71.5% 69.0% 70.0%
Approved learning providers
90.3% 91.2% 89.1% 88.0% 90.0% 90.0%
recommending ACCA as first choice†
Key employers preferring to recruit and
44.0% 35.0% 39.2% 43.0% 40.0% 41.0%
train ACCAs†
Members, students and affiliates
agreeing ACCA is an innovative and 72.3% 71.5% 75.5% 77.4% 77.0% 80.0%
forward-thinking organisation†
Members, students and affiliates
agreeing ACCA shapes the agenda of 70.0% 68.5% 71.5% 74.8% 73.0% 75.0%
the accountancy profession†
Members agreeing ACCA promotes
67.5% 67.2% 70.9% 73.4% 73.0% 75.0%
public value†
Employers believing ACCA provides
84.0% 88.0% 92.0% 91.0% 90.0% 88.0%
relevant skills for their business†
Share of total members of ACCA, ICAEW, 18.3% 18.7% 19.3% 19.7% 19.6% 19.9%
AICPA, CIMA and CPA Australia** (restated result) (restated result) (restated result) (restated result) (restated result)
Overall 80.0% of 80.0% of 80.0% 100.0% 80.0% 80.0%

Brand Power elements elements achieved achieved target achieved
† Survey measures for students, members and affiliates are judged achieved if within +/- 1.5% of the target to allow for accepted survey
variations. Survey measures for employers and learning providers are judged achieved if within +/-2.5% of the target. Member results based
on 11,343 responses from all surveyed globally; student and affiliate results based on 23,851 responses from all surveyed globally; employer
results based on 659 surveyed globally; learning provider results based on 208 providers surveyed globally.
** AICPA did not disclose voting members separately in 2017, only total members (including non-voting members). With the agreement of
Council, we have therefore restated market share based on total AICPA members for this year and prior years.

Key factors driving this performance Our ability to lead is driven by these areas of focus: • E
nsuring our reputation and influence are driven
by our enduring commitment to public value and
The continued improvement we’ve seen in sentiment • D
elivering and enhancing the professionalism
from members, students and affiliates has again boosted brand recognition of ACCA
performance in elements based on their opinions and In addition to continuing to produce this integrated
perceptions. All elements based on their opinions of ACCA This year, we introduced further important innovations report, we also voluntarily reported our UK gender pay
and our brand increased (from between 1.9% to 3.9%). to how we educate and train ACCA members with a gap this year (see page 59). We’ve also ensured that we
new Ethics and Professional Skills module (introduced comply with the forthcoming General Data Protection
Given our focus on explaining how our ACCA Qualification from October 2017) which focuses on developing the Regulations across our operations.
innovations are meeting the needs of the current and future complete range of professional skills employers need,
market, the increase in members, students and affiliates now and in the future. The module was named as best You can also read more about how we fulfil these
believing ACCA shapes the agenda of the accountancy education initiative in the 2018 PQ magazine Innovation in obligations in our independent Regulatory Board’s report
profession (up 3.3% on last year) is very pleasing. This also Accountancy awards. on regulation and our UN Global Compact report.
translated into improved recommendation scores, with the
percentage of members who’ve recommended ACCA in the Plans to examine our new breed of Strategic Professional • P
romoting the value of an accountancy profession
past year up by 3.3% (3.9% up for students and 3.8% up for exams from September 2018 are on track. This includes that is global but also responsive to national and
affiliates). the launch of Strategic Business Leader, our innovative regional needs
case study exam, based on a realistic business scenario.
We maintained a high level of endorsement from employers, This integrated approach gives students the skills and In October 2017, we held our first ever global summit
with 91% saying ACCA provides relevant skills for their technical expertise required by modern business where on regulation, helping share strategies and best practice
business (down 1% from last year but remaining at a very decisions need to be made, measured and effectively across growing economies. This brought together
high level). Approved learning providers also remain highly communicated to all stakeholders. The new exams also regulatory leaders across the world including senior
engaged with 88% recommending ACCA as their first choice include Strategic Business Reporting, an enhanced exam representatives from the National Accountancy Council
qualification (down 1.1% from last year), which is especially exposing students to the wider context of finance and of Cambodia, the supreme audit institutions of Nepal
pleasing in view of the significance and scope of the ACCA business reporting, giving them the vital skills needed and Myanmar, and the Indonesian Ministry of Finance.
Qualification changes we are supporting them through. to explain and communicate to stakeholders the
implications of transactions and reporting. We’ve We also held our first ever regional ACCA Africa members’
Although establishing a preference for specific professional been working closely and collaboratively with our major convention in Ethiopia in December 2017. More than 700
qualifications amongst key employers remains competitive in learning providers around the world to build capacity members from over 30 countries across the continent
a crowded global market, it’s encouraging that we’ve seen a and expertise amongst tutors. gathered for three days to discuss professional issues.
further 3.8% increase over the past year to 43%. This means
we have improved this element measure by 8% over the past We’ve continued to build powerful relationships with
two years. employers, including signing a new Memorandum of
Understanding (MoU) agreement with global accounting
network DFK International.

• S
trengthening relationships with governments, • D
elivering a superior programme of professional
regulators and multilateral agencies and being insights, tailored to local needs and with public
a leader in capacity building value at their core
Important new projects during the year include: During the year, we produced 41 separate Professional
Insights (PI) reports across our five key themes: global
• A partnership agreement with CPA Afghanistan
economics; Professional accountants – the future; risk;
(Certified Professional Accountants Afghanistan)
technology; and supporting the global profession. These
to continue joint work in building the profession in
included a range of reports exploring China’s Belt and
Afghanistan. This builds on the strong connection
Road Initiative from a number of country and regional
between the two organisations, which was created
perspectives, reports setting the tenets of good corporate
in 2015 under a Memorandum of Understanding
reporting and the tenets of audit quality, and a major
(MoU) and will focus on a number of capacity building
new report, Purpose and the profession, which explores
projects, including supporting CPA Afghanistan to
social mobility issues and has been nominated for a 2018
grow the pipeline of professional accountants, advising
MemCom member communications award. Our online
and supporting research and thought leadership
PI presentation – including our PI hub and PI app – was
developments to advance the accounting and finance
awarded ‘Best use of digital from the education sector’
profession in Afghanistan, and mentoring CPA
at the Digital Impact Awards 2017.
Afghanistan for IFAC membership.
• A new agreement with the Ministry of Industry and

Commerce in Laos to further develop and sustain
the accountancy profession in the country. This
multi-donor funded World Bank project aims to
build on the existing relationship between ACCA,
Laos Ministry of Finance (MoF) and the Laos Chamber
of Professional Accountants and Auditors (LCPAA)
to strengthen the accounting profession in Laos.

Our capabilities
People: high performing people
motivated to deliver our strategy
Strategic measure applied: Why we use this measure:

Best Companies employee engagement index it is a wide-ranging index which assesses
how engaged and fulfilled our employees are and
enables us to identify those drivers which are likely to affect
their contentment and motivation. This is also a widely used
framework for assessing employee engagement which
means we can benchmark our performance against
leading employers.

2013-14 2014-15 2015-16 2016-17 2017-18 2017-18 2018-19

Actuals Target
646.2 643.8 649.5 654.3 666.1% 659.5 659.5

Best Companies employee
(One to Watch (One to Watch (One to Watch (One to Watch (One Star (One Star (One Star
engagement score
status) status) status) status) status) status) status)
Based on 84.4% global response rate
We’ve seen another increase in engagement across the In 2018-19, we’ll be continuing to focus on Leadership
organisation this year, meaning we achieved our target – setting the tone from the top, inspiring, focusing and
of One Star status on the Best Companies index, with connecting employees to achieve our priority for the year
our largest increase (11.8 points) to date. Six of the eight and our Strategy to 2020. The second focus is on people
work factors the survey measures improved, with Personal management, with exciting developments in people
Growth showing no change and My Team dropping by one manager development and recognition coming in the new
percentage point. We aim to maintain and build on this level financial year. We believe this focus will also support stronger
of engagement in the coming year. employee wellbeing, collaboration and personal growth.

Employee diversity
UK gender pay gap
The Equality Act 2010 (Gender Pay Gap Information)

Regulations 2017 require relevant UK employers with 250
or more employees to publish information on their gender Employees
pay gap. Although ACCA does not fall into the category
61% Female
of UK employers required to publish their gender pay gap,
we welcomed the opportunity to voluntarily report and we 39% Male
published these figures for the first time this year as a visible
sign of our commitment to equality and diversity.
At the snapshot date of 5 April 2017, ACCA’s mean gender Modern Slavery Act commitment
pay gap was 8.8% (compared to the UK national mean of
17.4%) and ACCA’s median pay gap was 9.3% (compared We are committed to acting ethically and with integrity
to a UK national median of 18.4%). Whilst our gender pay in all our business dealings and relationships. We act on
gap is favourable compared to the UK’s national statistic, this commitment by implementing and enforcing effective
we recognise that the reasons behind any gender pay Leadership systems and controls to ensure that modern slavery is
gap need to be understood and that it may be possible to not taking place in our organisation or in any of our
reduce our gender pay gap by undertaking specific actions. 55% Female
supply chains.
45% Male
We expect the same high standards from our suppliers,
ACCA also operates an annual merit award, which would be contractors and other business partners and as part of our
considered a ‘bonus’ under the regulations. In the snapshot Executive Team and contracting process we include prohibitions against the use
reference year, female employees received higher bonuses, their direct reports of forced, compulsory or trafficked labour or anyone held in
on average, than male employees, as indicated by ACCA’s (33 most senior employees) slavery or servitude. We expect that our suppliers will hold
mean gender bonus gap of -6.5% and ACCA’s median their own suppliers to the same high standards.
gender bonus gap of -12.0%. The proportion of males (70%)
and females (72%) in receipt of a merit award were broadly Our Executive team has overall accountability for ensuring
similar and we are confident that our merit award programme that our organisation complies with this policy and for
provides equal opportunity to both genders. Our full gender monitoring its use and effectiveness, as well as the
pay report can be accessed at: http://www.accaglobal.com/ auditing of internal control systems and procedures.
content/dam/ACCA_National/uk/aboutus/uk-gender-pay-
gap-report.pdf

Customer-centred solutions
Strategic measure applied: a basket of customer

service measures (calls answered within 20 seconds, call
abandonment rate, emails answered within two days, web
chats picked up within 30 seconds, web chat abandonment,
online applications processed within three days, year-on-year
improvement applications completed, member customer
experience, student customer experience), which provides a
rounded picture of overall customer service.
2013-14 2014-15 2015-16 2016-17 2017-18 2017-18 2018-19

Actuals Target
Customer service
N/A 97% 87% 88% 96% 80% 80%
SLA
Achieved
Our performance reflects our continued investment in strong customer service

as a key underlying component of satisfaction.

Operational excellence
across all aspects of our operations
Strategic measure applied:

operating costs per student and member against benchmark,
which shows the cost effectiveness of our service compared
to key competitors and is taken as a proxy for the efficiency
of our operations as a whole.
2013-14 2014-15 2015-16 2016-17 2017-18 2017-18 2018-19

Actuals Target
Cost per
student and £246 £254 £260 £247 £265 £267 £263
member
Achieved

Flexible delivery:
digitally-enabled and flexible delivery that
is responsive to evolving customer needs
Strategic measure applied:

66% of digital experience SLA (a basket of measures
comprising website availability, website response time
and digital customer satisfaction), which provides time
and quality metrics on our main digital services.

2013-14 2014-15 2015-16 2016-17 2017-18 2017-18 2018-19
Actuals Target
Digital
experience N/A N/A 100% 91% 100% 80% 80%
SLAs
Achieved
During the year, we’ve continued to strengthen our digital

offerings, investing in new capabilities and making small
but significant improvements to digital services (such as
enabling members and students to automatically print
letters of good standing). We are also allocating a significant
portion of our strategic investment fund to create a set
of customer journeys that will inform the development
of blended customer innovations across our website,
online services and apps.

Our focus for 2018-19 and beyond
Next year, we’ll focus on one key priority as an organisation

– maximising the global impact of the ACCA Qualification –
working with our partners, members and future members to
deliver our promise and ensure shared success.
This will see the entire organisation working together

to make sure everyone we rely on to deliver the ACCA
Qualification alongside us can adopt and champion our
innovations. In focusing on this, we’re recognising that the
successful delivery of the ACCA Qualification is central to
everything we do and everything we stand for.
This will include:
• introducing our Strategic Professional examinations –

including the new integrated case study exam,
Strategic Business Leader, in September 2018
• w
ithdrawing paper exams across 65 markets and
continuing to roll out computer-based exams for
papers F5 – F9
• a
ligning our competency framework and CPD
offering to the qualification changes and our
seven professional quotients
• d
elivering a wide range of support and guidance to
learning providers and students to ensure they are
engaged and supported through the changes
• c reating even greater visibility of the ACCA brand,
including our sponsorship of the World Congress
of Accountants 2018 in Sydney.
We’ll also be working on our Strategy to 2025, engaging our

whole global network to gather and analyse trends that are
likely to shape our future.

Case study
Sharing ACCA tutoring
expertise across the world
Helping ACCA’s global family of learning providers prepare February 2018 saw Steve in action in Myanmar where
for our new generation of exams has been a major focus Su Mon Phyo, ACCA from NLA took part in the sessions
over the past 12 months. along with other fellow ACCA providers. Sharing a range
of tips and techniques on successfully teaching towards
This year, we conducted our largest ever outreach to CBE exams with Su Mon Phyo and other learning providers
ACCA tutors by providing a busy international programme and university partners helped build huge confidence and
of ‘train the trainer’ sessions – all geared around developing excitement around the changes to the ACCA Qualification.
the expertise needed to teach our new session computer-
based exams (CBEs), strategic business reporting exam Afra Sajjad, ACCA’s building learning providers network –
and strategic business leader case study. lead says: ‘Being able to tap into best practice within our
learning provider network to share knowledge and expertise
Our truly global connections enabled us to identify leading around the world has been invaluable. The fact that Steve
experts to deliver these all-important workshops. Steve and so many of our other ‘tutor gurus’ are ACCA members
Steve Willis ACCA
Willis ACCA, head tutor for management accounting themselves is also fantastic!’
Czech Republic
papers at PwC Business Academy, an ACCA Platinum
Approved Learning Provider in the Czech Republic, visited
India, Nepal and Myanmar during the year to share his This year, we conducted our
expertise with fellow ACCA tutors. largest ever outreach to ACCA
tutors through our global ‘train
Ms Nischitha K from Joseph College of Commerce,
the trainer’ programme. Nischitha K
Bangalore, a university partner, benefitted from Steve’s
India
insight at the Bangalore session in July 2017 which focused
on teaching toward our new session CBEs. With over 100
very enthusiastic ACCA tutors from different parts of India,
the sessions were also a great way to connect ACCA
learning providers with each other and strengthen the
ACCA learning community.
Su Mon Phyo ACCA

Myanmar
10
Our risks and
their management

Our corporate risk register
records the top cross-cutting
risks and uncertainties we believe
ACCA faces. These risks, should
they crystallise, have been judged
to pose a significant threat to the
successful delivery of our strategy
and our longer-term sustainability. Ownership and oversight
We continually assess risks and opportunities relating to our Each corporate level risk is owned by a member of the
strategic outcomes and revise our risks accordingly. Risks Executive team with the entire Executive team reviewing
on the corporate risk register are either escalated from the all corporate level risks every month to reflect any market,
directorate level risk registers through respective directorate legislative and/or operational developments and adjusting
governance and risk meetings or included as a result of mitigation and threat levels accordingly. As a result, new
recommendations from the Executive team, Audit Committee corporate risks are added and existing risks de-prioritised
or ACCA’s risk manager. as appropriate.
These risks cover a range of issues, with 10 risks currently Audit Committee exercises independent oversight of both
recorded on our corporate level risk register (compared all ACCA’s corporate risks (undertaking detailed review
to 10 for the year ending 31 March 2017). of each risk on a rolling basis) and our Enterprise Risk
Management Framework.

Key changes to our
corporate risks in 2017-18
Removals:
Because we have developed stronger governance over
pricing strategies and been able to manage greater flexibility
successfully, the loss of students to alternate qualifications
as a result of pricing strategies has been de-escalated to our
Market directorate risk register.
Additions:
We added one risk in 2017-18, which recognises the potential
impact of the UK’s decision to leave the EU and the need to
keep both risks and opportunities under continual review so Risk appetite definitions:
we minimise any adverse impact on ACCA.
Hungry: eager to be innovative and choose options offering
potential higher rewards, despite greater inherent risk.
Risk appetite: Open: willing to consider all potential options with a
In line with our vision, we are committed to a bold and
bias towards options likely to prioritise the certainties of
innovative approach to market development so that we
successful delivery over potentially high-reward strategies.
can maintain our reputation for being at the forefront of
responding to market needs. Because the integrity of our
Averse: preference for safer options which have a lower
qualification is at the heart of our brand, our corporate-
level of residual risk but which may have more limited upside
level risks have a strong focus on minimising threats to the
potential.
standing and value of the ACCA brand.

Corporate risks
Relates to
Risk Date raised Risk appetite Mitigation
strategic outcome
Inability to accurately forecast income Income governance group in place; monthly monitoring of financial performance; global
2014 Sustain Open
and costs focus on plans to increase exam uptake and enhance student progression.
Cross-organisation review group reports to the Executive team monthly on recognition risks,
Restrictions on our ability to operate 2014 Attract Hungry which is provided to the Market Oversight Committee, with specific mitigations taken on a
market-by-market basis.
Increased competition attracting
On-going review of marketplace and alternative offerings through a programme of global
potential students to other career 2014 Attract Hungry
competitor monitoring, with oversight from the Market Oversight Committee.
development paths
Dedicated team of regional business support managers who actively manage ACCA’s
Failure to comply with legislation in
2014 Lead Open national and regional compliance risks, with guidance from ACCA’s global Corporate
countries where we operate
Assurance team. Global delivery of employee training on compliance issues.
Defined security strategy, encompassing a vulnerability management process and

Information security breaches 2014 Flexible delivery Open
information security awareness training.
Exam contingency group in place to monitor potential disruption to exams with plans
Operational failures in our end-to-end Operational
2014 Averse reviewed for each session. Robust exam results and processes and controls in place and
exam processes excellence
strategic supplier governance model in place.
Regulatory action resulting from control A comprehensive range of physical and digital controls of the entire end-to-end process.
Operational
failures in the end-to-end qualification 2014 Averse Ongoing monitoring of compliance with primary educational recognition (Ofqual) and
excellence
process continuous engagement with education regulatory environment.
ACCA’s network not ready, willing or Market adoption change programme and leadership in place, with a cross-organisational
able to support ACCA’s Qualification 2016 Sustain Open focus on maximising the impact and adoption of the ACCA Qualification changes
and business model changes for 2018-19.
Changing ACCA student mix Full suite of learning support provided through ACCA’s website, which is being continually
(geographies and demographics) 2017 Develop Hungry reviewed and expanded. Analytical tool developed and employed to identify student
leading to progression challenges progression challenges and plan interventions.
Brexit Oversight and Working Groups established. Links with UK Government strengthened,
Challenges and opportunities
NEW 2017 Sustain Open including providing support for the All-Party Parliamentary Group on International Trade
arising from Brexit
and Investment.

Case study
Connecting ACCA members
across Africa
We held our first regional convention for members in Africa Jide Ibironke FCCA, chairman of the ACCA Nigeria
in December 2017, bringing together 700 delegates from advisory committee led a strong member representation
31 countries across the continent. from Nigeria and chaired a lively plenary session on
leadership and future skills.
Held over two days in Addis Ababa, Ethiopia, the event
connected stakeholders across the public and private sectors Kholeka Mzondeki FCCA, an award-winning CFO from
– including government policy representatives, regulators South Africa and former ACCA Council member, used her
and finance professionals – to discuss the future of the expertise to steer a thought-provoking session on corporate
profession and business in Africa. governance.
The convention’s theme was the impact of socio-economic In addition to leading business figures from across the
trends on the future of finance and business in Africa – wide region, members also benefitted from expert academic
territory that was explored by a diverse group of speakers viewpoints. Dr Winnie Tarinyeba from Makerere
Jide Ibironke FCCA
from the region and across the globe. Some of Africa’s University School of Law in Uganda was one of a number
Nigeria
most illustrious finance and business leaders joined us for of distinguished speakers bringing the latest corporate
discussions covering innovation, ethics in the digital age, and governance thinking and research to the convention.
the future of business and the professions across key sectors
of the economy. Just as important as the wealth of learning and unparalleled
insights, the convention was a fantastic opportunity for our
A landmark African event on the ACCA calendar this year, we members across Africa’s diverse nations to connect, share
Kholeka Mzondeki
welcomed members from all spheres of finance and business experiences and come together as a regional ACCA family.
FCCA
to tap into a wealth of resources, know-how and inspiration.
South Africa
In addition to attending as delegates, many of our members
also took to the convention stage to share their expertise. This year, we held our first regional
convention for ACCA members in
Africa, bringing together 700 delegates
from 31 countries across the continent.
Dr Winnie Tarinyeba
Uganda
11
Our governance
and leadership

ACCA’s governance and leadership
Our leadership is formed of two complementary bodies –

our Council and our Executive Team:
Audit Committee
International Assembly Role: oversight of the integrity of published financial
and performance information
Member
Role: global sounding board
network panels Nominating Committee
53 ACCA members from 41 countries Role: appointments to Council committees and other
key governance forums
Remuneration Committee
Role: determining policy for Executive team reward
aligned to strategy delivery
Council
Role: setting strategic direction for ACCA Governance Design Committee

and oversight of strategy delivery Role: review of governance planning and delivery,
Regulatory Board ensuring it meets best practice and supports the delivery
36 ACCA members from 13 countries and sub-boards of ACCA’s strategy
(Appointments Board, Standards Market Oversight Committee

Board, Qualifications Board) Role: oversight of ACCA’s market development strategy
and implementation
Resource Oversight Committee

Role: oversight of resource utilisation across ACCA,
including annual budget and five year financial plan
Executive Team
Role: effective delivery of strategy Role: advice and challenge to Governance remit
and operational leadership ACCA’s operational leadership
Two non-executive advisers Operational remit

Chief Executive and four
executive directors
Taskforces
Advisory remit

Governance hierarchy and responsibilities
Council
Council – 36 members, directly elected by the global
membership – provides overall stewardship and oversight
of ACCA. Council’s core mission, which underpins all of its
activities, is to ensure that ACCA delivers the objectives
stated in its Royal Charter. To achieve this, Council has a Matters reserved to
Council and its committees
wide-ranging remit, geared to providing strategic direction
for ACCA.
Individual Council members act in the interests of the Matters reserved

to delegated Executive Team
membership as a whole, rather than on behalf of any
particular constituency or group. In keeping with our core
values, a distinctive feature of ACCA’s Council is its diversity.
This allows it to draw on an especially wide range of views
Provided information to
and experiences, giving a rounded global perspective.
Council’s composition also closely mirrors that of ACCA’s
overall membership. This year – for the first time in its history plan, financial and people
– Council has a majority female (58%) membership.
Council works closely with ACCA’s Executive team to devise

ACCA’s strategy, which is then approved by Council. Delivery
of the strategy is the responsibility of the Executive team,
with governance of the process and performance tracking
provided by Council.

Council demographics
After one year’s service, Council members

are allocated to at least one of the six
Council standing committees, based
on their particular skills and experience.
Full Council biographies – including
the Committees they serve on – can be
accessed at http://www.accaglobal.com/
uk/en/member/council-elections/todays-
council/meet-your-council.html
Council Members Council Members Council Members

age gender sector
31-40 58% Female Corporate sector

41-50 42% Male Education
51-60 Practice
61-65 Professional services
over 65 Public sector
Retired

Council objectives and
agenda in 2017-18
Council agreed broad objectives for the performance year, June 2017 March 2018
which were to:
• R
eview of ACCA performance to March 2017 and • E
lection of preferred nominee for Vice President
amendment to strategy targets in light of results 2018-19
• p
rovide oversight of the implementation of ACCA’s
• Strategic alliance with CA ANZ • P
resentation of annual report from the Chairman of the
strategy and continue to set the overall direction
• Brand strategy Regulatory Board
for ACCA
• Approval of annual accounts and AGM matters • W
orkshop – ‘Strategic priority for 2018-19: let’s maximise
• monitor ACCA’s performance against the agreed targets
the global impact of the ACCA Qualification
• o
versee the governance reform implementation
• Future strategic partnerships
following the 2017 AGM bye-law changes September 2017
• U
pdate and discussion on implementation
• plan for marking ACCA’s 30 years in China in June 2018 • Revision of ACCA’s vision statement
of governance reform
• e
nsure that ACCA maximises its influence in the • Strategy discussion: ethics and trust in a digital age
• Corporate planning and budgeting
global profession • Approach to apprenticeships
• in doing the above, achieve Council’s agreed workplan. • approval of 2018-19 budget
• Update on digital transformation
• approval of 2019 membership subscriptions
In line with the above, and in addition to standing formal • approval of achievement measures and
November 2017 (Annual Council)
reports from the chief executive and Council committees, indicative targets
Council considered the following topics during the year: • Election of Officers • Strategic pricing review
• Welcome new members of Council • D
evelopments relating to ACCA’s future
• Vote of thanks to retiring President regulatory landscape
• Adoption of standing orders • Council performance appraisals
• Changes to Council regulations
• Elections to Nominating Committee
• Timetable for election of vice president
• R
eview of 2016–17 work plan and agreement
of 2017–18 work plan and objectives

Future governance reforms This development will enable the voice of our members to
During 2016-17, Council conducted a detailed review of be strengthened in our governance arrangements. It includes
ACCA’s governance arrangements to ensure they remain the option of moving towards a larger Council with broader
fit for purpose. At the AGM in November 2017, Council representation of members from different geographies and
proposed a series of bye-law changes to enable future sectors combined with a smaller Council Board – drawn from
reforms, all of which were overwhelmingly backed by the wider Council – which could meet more frequently to
members. Specifically, these changes will: support agile decision making.
• e
nsure members’ interests continue to be well
represented across ACCA’s governance structures, with
ACCA members remaining central in setting the strategic
direction and having oversight of the organisation
• s trengthen the oversight function of Council in supporting
and holding the Executive team to account for the
delivery of the strategy
• f uture-proof our governance by providing the ability to
grow and flex our arrangements to match our growth
as an organisation
• p
rovide the agility to enable ACCA to better respond to
the opportunities and threats emerging from a dynamic
external environment
• e
nhance the level of member engagement by Council
members as required of a membership organisation
of ACCA’s size and scale.

Executive team
ACCA’s Executive team, led by the chief
executive, is responsible for the delivery
of ACCA’s agreed strategy and leading
ACCA’s operations. The team consists
of the chief executive, four executive
directors and two non-executive advisers.
Senior management is supported by
a wider global leadership group of
directors and other senior employees
with significant operational and
strategic responsibilities.
Executive team
20% Female
80% Male
All executive team members are based in the UK. The executive team are Helen Brand, chief executive; Alan Hatfield, executive director
– strategy and development; Steve Heathcote, executive director – markets; Raymond
Jack, executive director – finance and operations; and Peter Large, executive director –
governance. You can find their full biographies at:
http://www.accaglobal.com/uk/en/about-us/who-we-are/meet-executive-team.html

Executive team reward plan This is a fair, transparent reward solution which has been The two independent non-executive advisers receive
created in line with ACCA’s reward principles by supporting remuneration on a fixed attendance fee basis.
the achievement of our strategy and assessing performance
Payment under the reward plan is determined by
over a meaningful period that reflects our focus on sustained Executive team salaries are benchmarked annually by
performance against six strategic KPIs agreed by Council.
performance, suitable for a long-term business. The basis independent experts from Aon plc. When reviewing
This reward is a non-consolidated payment of up to 25%
of the award is transparent through the use of relevant and the salaries of the members of the Executive team, the
of the base salary of each Executive team member, 20%
measurable performance targets that are clearly linked to Remuneration Committee takes into account the salary
of which relates entirely to ACCA’s performance, with
driving value. increases applying to the rest of the workforce and external
the remaining 5% allocated for personal performance.
benchmark data collected by Aon plc. External remuneration
This arrangement is structured to reward behaviour and
For the year ended 31 March 2018, the two focus targets benchmark data is obtained primarily against general
performance that is appropriate for ACCA and focus the
are number of members (Vision) and student progression industry and also with a focus on pay in other professional
organisation on those elements of ACCA’s Strategy to
targets (Develop). The remaining four hurdle targets are membership associations (including a sub-group of
2020 which Council believes require the greatest focus at a
net operating deficit/surplus (Our difference); number accountancy associations, with a particular focus on those
particular point in time.
of students and affiliates (Attract); member and student bodies that ACCA measures itself against in the market share
satisfaction (Sustain) and brand power (Lead). element of our brand power measure). Salaries are within
The Remuneration Committee determines the level of award
80% to 120% of the benchmarked range, depending on
achieved against ACCA targets for all executive directors
The Remuneration Committee has complete and sole experience, expertise and the organisation’s need to retain.
alongside the level of award against personal targets for the
discretion to moderate (up or down – including to 0%) the
chief executive. In turn, the chief executive determines how
level of award determined if it does not believe the level The base salaries of the chief executive and executive
much of the 5% personal performance award is allocated to
adequately reflects underlying corporate performance or directors at 31 March 2018 are shown below on
each of the executive directors. The chief executive is not
for any other reason. a banded basis:
present when her remuneration is discussed.
In assessing ACCA performance, the framework includes all Executive team remuneration Number of Number of
the six measures and targets agreed by Council, all of which employees employees
are externally audited. The Remuneration Committee agrees The total salary (including bonus and allowances) and (2017-18) (2016-17)
up to two ‘focus’ measures which determine the award size. benefits of the chief executive for the year ended 31 March £280,000 - £309,999 1 1
The remaining four KPIs act as modifying measures – for 2018 was £415,167 (£383,915 for year ended 31 March 2017).
£190,000 - £219,999 2 2
each of these measures not achieved, 15% of the award pool This includes a fixed non-pensionable allowance in lieu
of pension benefits, introduced in August 2013 when the £160,000 - £189,999 2 2
released by the achievement of the focus KPIs is deducted. In
this way, the Remuneration Committee seeks to ensure that chief executive agreed to vary her contract of employment
it is reinforcing the importance of strong performance across following the closure of the defined benefit pension scheme
ACCA’s balanced scorecard. and an additional allowance in lieu of pension contributions.

During 2017-18, reward distributed to the Executive team
(including the chief executive) was £196,288, based on
performance for the year ended 31 March 2017.
Changes to the Executive team in 2018-19
The coming year will see two important changes to the

Executive team. Peter Large, who has been a member
of the team in various roles for 20 years, will take early
retirement in September 2018. We are also creating a new
post of Executive director – People, recognising the central
importance of talent management to ACCA’s success.
Detailed Corporate Governance Statement
We also publish a detailed annual Corporate Governance

Statement on our integrated report website. This contains
further information on the extent to which our governance
arrangements meet the UK Corporate Governance Code, as
issued by the UK Financial Reporting Council in September
2016, and details of the work of our various Council
committees and boards.

Case study
Connecting experts to provide
Belt and Road initiative insights
China’s Belt and Road initiative (BRI) is the most extensive Patrick Tsang FCCA, CEO, Deloitte China brought his
international trade project for generations. team’s extensive expertise to the research, having provided
professional services advice on BRI to over 100 large
As the global body for professional accountants, ACCA has state-owned enterprises over the past three years.
23 offices along the Belt and Road route and is uniquely
placed to help explore what it means for the profession and The second report, Belt & Road Initiative: Reshaping the
our members. global value chain, in partnership with Shanghai Stock
Exchange, features case studies exploring how seven
An expansive ongoing research project – which is being Chinese companies are preparing for their involvement
conducted with a range of partners including Deloitte China, in the project.
Shanghai National Accounting Institute (SNAI) and the
Shanghai Stock Exchange (SSE) – is examining how BRI will Dr Shi Donghui, director of the Capital Market Institute
affect the business infrastructure of China and key economies at Shanghai Stock Exchange (SSE) described this joint
along the proposed trade route. research as a proactive attempt by SSE to serve the Belt and Professor Li
Road initiative in an integrated way. China
We launched two major reports, informed by our research,
at the SNAI Conference in Shanghai in July. Through this ongoing collaboration, ACCA is playing a major
part in helping our members – and business – navigate this
The report Accounting infrastructure: a booster to the
exciting trade opportunity: www.accaglobal.com/insights
Belt and Road Initiative – with SNAI and Deloitte China –
provides an overview of the accounting systems, tax risks and Patrick Tsang FCCA
personnel requirements in major countries along the Belt China
and Road route.
ACCA has 23 offices along the Belt
Professor Li Kouqing, SNAI’s president provided invaluable and Road route and is uniquely placed
insight to ACCA on national accounting-related issues to help explore what this trade and
affecting BRI. The subsequent co-operation between ACCA, infrastructure development means for
SNAI and Deloitte has led to rich and deep insights, boosted
the profession.
by the collective power of the members, students and
employers we all reach.
Dr Shi
China
12
Acknowledgements
and thanks

Thank you
We’d like to thank all the people who’ve given their
time and expertise to bring this year’s report to life:
Case study participants Photography Creative agency

Chaly Mah Steve Willis ACCA Alex Falcon Huerta Cameron Ramsay, Abuzar Hashmi,
FCCA Studio Commercial, Pakistan
Dr Khanh Lam Tran Nischitika K. Australia
Dermot King FCCA David Weston
Karen Sanderson FCCA Su Mon Phyo ACCA Natalie J Watts, UK Photography, India
Rhonda Best FCCA
Muhammad Zarif Kholeka Mzondeki Imagio Photography, Vladimir Weiss, Poland
Ludin FCCA Professor Li Kouqing Nigeria
Rhada Tech, India
Brian McEnery FCCA Dr Winnie Tarinyeba Patrick Tsang FCCA Anton van Straaten
Photography & Design, Victoria Milkovich,
Bosko Karake Jide Ibironke FCCA South Africa Myanmar
Dr Shi Donghui
Mkombozi
Sanjay Rughani ACCA Peter & Hassan Helly Thinj Hoang, Vietnam
Alta Prinsloo Kibirango, Uganda
Tamara Littleton Yang Photography,
Sajid Hussain Mohamed Mekhamer, Singapore
Rashika Fernando Turkey
Dr R S Murali FCCA Sara Lejon, UK
Jacques Nkinzingaboo,
Sayee Rakshith
Rwanda Vincent Dayrit, Canada
Pinsky Studio, USA
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200,000

ACCA Integrated Report 2018 3

ACCA With 208,549 members and 503,262 students in

Opportunity: we provide opportunity, free from • p

We do this by qualifying and regulating members to the

ACCA Integrated Report 2018 4

• reach – our global network, outlook and ambition with

ACCA Integrated Report 2018 5

This year, we have referenced those aspects of our

ACCA Integrated Report 2018 6

Want more detail?

• detailed consolidated financial statements

If you’d like to know anything you can’t find in this report,

ACCA Integrated Report 2018 7

ACCA Integrated Report 2018 8

Strengthening our strategic alliance with 41

Achieving 8 of 10 KPIs – our best performance yet

ACCA Integrated Report 2018 9

Best Association – Association Excellence Awards 2017

Accountancy Body of the Year – PQ magazine Awards 2018

Best education initiative in the Innovation

Our challenges in 2018-19

ACCA Integrated Report 2018 10

ACCA Integrated Report 2018 12

to facilitate these opportunities for our

ACCA Integrated Report 2018 13

ACCA Integrated Report 2018 14

Dr Khanh Lam Tran

ACCA Integrated Report 2018 16

Key resources Key value-adding activities Key outputs Key outcomes

Meeting the global demand from

A distinctive contribution to the

Supported by our investment in

ACCA Integrated Report 2018 17

Muhammad Zarif Ludin

For the second year in succession, we met

ACCA Integrated Report 2018 20

ACCA Integrated Report 2018 21

ACCA Integrated Report 2018 22

Dermot King FCCA

ACCA Integrated Report 2018 24

Development of intelligent automated Threat: Disappearance of lower-level roles and skills

ACCA Integrated Report 2018 25

According to the latest World Economic Forum annual economic report,

ACCA Integrated Report 2018 26

Rashika Fernando FCCA

ACCA Integrated Report 2018 28

Our investment in closer working relationships and support

ACCA Integrated Report 2018 29

ACCA Integrated Report 2018 30

9 Stakeholder engagement & responsiveness 9 15 2

10 Student and member growth and retention 10 6 0

12 Effective and efficient internal governance and compliance 12 17

ACCA Integrated Report 2018 31

has enabled us to build a picture of how our reporting can

of the International <IR> Framework.

This year, we’ve taken the opportunity to bring our

ACCA’s employees on our Leadership Group also

view of material issues.

13 ACCA’s financial health

• reach – our global network, outlook and ambition with

• detailed consolidated financial statements