Driving innovation in management accounting | December 2019 MAPPING THE FUTURE Preparing for Industry 4.0 • Using ‘white-hat’ hackers to secure your data 8 • The pros and cons of blockchain adoption 16 ’Tis the season to give. Throughout the year, CIMA members have had an impact on organisations, communities and economies. They’ve also made a difference to individuals through the CIMA Benevolent Fund. As we reflect on 2019, let’s continue to help each other while driving the future of the profession. Donate to the CIMA Benevolent Fund today: cimaglobal.com/benevolentfund #OneDayChangesLives © 2019 Association of International Certified Professional Accountants. All rights reserved. Association of International Certified Professional Accountants is a trademark of the Association of International Certified Professional Accountants and is registered in the United States, the European Union and other countries. The Globe Design is a trademark owned by the Association of International Certified Professional Accountants. '-1% Benevolent Fund is registered charity No.261114. 1910-50210 CONTENTS 8 12 28 5 THE GREAT EQUALISER 8 WHAT TO KNOW CIMA President Amal BEFORE HIRING A Ratnayake, FCMA, CGMA, says ‘WHITE-HAT’ HACKER the organisation will continue White-hat hackers can help to work to prevent barriers to nance departments protect entering the profession. their companies from data breaches, but management 6 PREPARING FOR THE accountants must tread FUTURE carefully to avoid problems. Andrew Harding, FCMA, CGMA, chief executive– 12 5G's BIG ROLE IN 22 RESILIENCE: 34 THE FORGOTTEN Management Accounting at DRIVING EXPANSION OF INSTITUTE STUDENTS HISTORY OF the Association of AUTONOMOUS VEHICLES AS POWs IN GERMANY ACCOUNTING WORDS International Certied A look at the connectivity The stories of CIMA’s students Common accounting terms Professional Accountants, between G and self-driving who took Institute exams in used today have a rich, useful, describes the work to vehicles. Germany’s prisoner-of-war and sometimes surprising future-proof management camps during the Second heritage. accounting. 16 THE PROS AND World War. CONS OF BLOCKCHAIN ADOPTION 28 CHANGING TRACK ON 34 16 Blockchain may be a SKILLS technology of the “future”, but Traditional project nance it’s already in use today. This roles in the rail and other article explores its strengths infrastructure-based and things to watch out for. industries are broadening and encompassing new skills. 22 ON THE COVER: IMAGE BY SMIRKDINGO/ISTOCK; ONIMAGE THIS PAGE, BY FLAVIO COUNTERCLOCKWISE COELHO/GETTY FROM IMAGES; TOP RIGHT: PHOTO PHOTO BY COURTESY SEONGJOON CHO/BLOOMBERG OF THE NATIONAL VIA ARCHIVES GETTY OF THE IMAGES; UK; PHOTO IMAGE©IMPERIAL BY NICK DIGGORY/IKON WAR MUSEUM(HU 21013); IMAGES; IMAGE BY SCIENCE SOURCE/GETTY IMAGES; PHOTO BY WILLIAM87/ISTOCK FMMAGAZINE.COM December 2019 I FM MAGAZINE I 3 36 6 ELEMENTS 42 WHAT IF YOU 60 INSTITUTE NEWS OF PROFESSIONAL DON’T WANT TO BE A 50 Get updates on issues aecting JUDGEMENT MANAGER? the profession and your High-quality professional Not everyone wants to be the membership. judgement can pave the way to boss. Read advice on how to becoming a nance leader. remain successful while 62 FARMING GETS Here’s what it is and how to turning down a management 50 WHAT I LEARNED VERTICAL pursue it. position. BEING THE CFO OF A Under ecient LED lighting, TECH STARTUP leafy greens are an 40 RELATIONSHIP- 44 EXCEL MOVES Heading the nance function of environmentally friendly food BUILDING ADVICE FROM TO MAKE AN ‘X’ OF a startup means facing source grown indoors in A CAREER DIPLOMAT VLOOKUP particular challenges. Here are containers stacked several The UK’s HLOOKUP and MATCH are some lessons a rst-time stories high. ambassador to primed for less usage as nance chief learned on the job. Poland has used Microsoft aims to make life his management easier for Excel spreadsheet 55 SPONSORED 62 accounting skills modellers with two new REPORT: YOUR to formulate functions: XLOOKUP and QUARTER-BY-QUARTER strategy, XMATCH. MAP TO SHARPER negotiate, and SKILLS manage Thought leaders and senior relationships. nance professionals weigh 40 in on how to approach improving key skills. CIMA HONORARY OFFICERS United Kingdom Amal Ratnayake, FCMA, CGMA Nick Jackson, FCMA, CGMA The Helicon, One South Place. London EC2M 2RB Tel.: +44 (0)20 8849 2251 President, CIMA Deputy President, CIMA Chair, Association board United States Paul Ash, FCMA, CGMA 220 Leigh Farm Road, Durham, NC 27707-8110 Steven Swientozielskyj, FCMA, CGMA Vice-President, CIMA Tel.: +1 919-402-4500 Immediate Past President, CIMA www.aicpa-cima.com www.fm-magazine.com Publisher: Kim Nilsen Associate Publisher: Karin DeMarco CONTACT US ([email protected]) Associate Director, Business Development: Shreyas Managing Editor: Rocky S. 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To subscribe, contact: ©2019 Association of International Certified Professional Accountants. All rights reserved. The contents of this publication are subject to worldwide copyright protection, and reproduction in whole or in part, whether mechanical or electronic, is [email protected] expressly forbidden without the prior written consent of the Association of International Certified Professional Accountants. For FROM LEFT: PHOTO BY JACEK TURCZYK/AP IMAGES; PHOTO PHOTO BY CRISPIN RODWELL/AP IMAGES; IMAGES; TURCZYK/AP JACEK BY PHOTO LEFT: FROM PHOTO BY XU CONGJUN/REUTERS XU BY PHOTO +44 01580 883844 permission to reprint FM magazine, email [email protected]. 4 I FM MAGAZINE I December 2019 THE VIEW FROM THE PRESIDENT AMAL RATNAYAKE, FCMA, CGMA e live in an unequal According to UNESCO statistics, Wworld. A world where sub-Saharan Africa has the the ability to jump highest rate of children excluded barriers to educational or from education across the world. nancial success can depend on Of those aged –, more than where you happen to be born. On are not in school. The average it takes two generations portion rises to for those for people born in low-income aged – and for those families to reach average income aged –. levels in Denmark, and three Education, though, is not the generations in Norway, Finland, only challenge in Africa. Despite and Sweden, according to the great progress — consumer Organisation for Economic spending has grown at a Co-operation and Development. compound rate of . since In the UK it’s ve generations. In and is estimated by the France, the move takes around Brookings Institution to reach six generations on average — the . trillion by — there are same for Chile and Germany, and several macroeconomic risks to it’s seven generations for people The great equaliser be faced. in China and India. In South The chief economist for Africa Africa, nine generations is the ‘CIMA and our Association at the World Bank, Albert Zeufack, average, but in Colombia it will Ph.D., speaking earlier this year at take generations — or more are part of the solution to the the World Economic Forum on than years — to reach that Africa, said growing world trade point. inequality conundrum.’ tensions, continuing volatility in Social inclusion and mobility commodity prices, and debt were are concerns close to my heart, high risks for African countries. and I recently spoke at an event on this in London. He also identied “the challenge of inclusion”, which The CIMA qualication I achieved has taken me to would be solved by jobs and opportunities — and three continents; it has also helped me navigate the sound scal policies. corporate world. But along the way I have faced In Sri Lanka, where I spent the early part of my life, barriers — and sometimes they have been there is a much-repeated saying: “CIMA changes unexpected. When I moved from Saudi Arabia to people’s lives.” And it does. You can see how our Canada and was looking for work, the question students from poorer backgrounds progress from one always on recruiters’ lips was, “Do you have Canadian income group to another as their careers ourish. experience?” Of course I did not, and during that Often, they support extended families; they may also dicult period I was kept buoyant by being part of be the only one from those families to have a the global CIMA family — the bonds that come built managerial role. into the ACMA or FCMA, and CGMA letters that follow As we prepare our members and students to thrive our members’ names. in the digital workplace, we are also dismantling the I believe education is a great equaliser: CIMA and barriers that prevent access to our profession — by our Association are part of the solution to the enabling non-university entry routes and removing inequality conundrum. I also rmly believe that the exemption fees for students who have already Association’s purpose — to drive trust, opportunity, studied accounting, for example. It means we can and prosperity — has a particular resonance here. create a profession that has the best people, At the CGMA Africa Conference in Cape Town in KEEP IN TOUCH irrespective of their socioeconomic background, who September, we heard about the challenges facing the Follow me have the skills and knowledge to lead organisations, continent’s education systems.