KPMG experts give their thoughts on topical issues
KPMG experts give their thoughts on topical issues
Assel Khairova: there is still a deficit of qualified auditors in Kazakhstan
Assel Khairova, Managing Partner of KPMG in Kazakhstan and Central Asia, shares her views of the prospects and challenges of the audit industry in Kazakhstan in her interview to KazTAG.
Explicit transfer of processes to Blockchain is inefficient
Kazakhstan became the second country in the world (after Japan) to recognise at governmental level the need for development of the cryptocurrency system. At the Blockchain & Bitcoin Conference Almaty 2017 held on 28 September 2017, experts gathered to discuss opportunities for using fintech achievements in business and government, cover such topics as crowdfunding (ICO) and regulation of innovative financial technologies.
Zarina Kazhmaganbetova, Senior Consultant, KPMG Management Consulting in Kazakhstan and Central Asia, one of the speakers at the conference told in her interview to Capital.kz, business weekly, which industries above all could transfer their processes onto blockchain and how businesses may benefit from it.
A life hack from Aiman Zhekeyeva, Senior Lawyer of KPMG Tax and Legal Department: practical advices – how to sell an ownership interest in business.
The issues related to the sale of the participation interest in the limited liability partnerships often become the subject of the lawsuits to the court and subsequently lead to long litigation proceedings. Therefore, to minimize the judicial risks, it is important to carefully consider all details of future transaction. The editorial staff "&" asked KPMG expert to shad a light on legislation and give some useful recommendations. Read more on page 16 in the newspaper "Business & Power"
We are fully aware of the responsibility for quality of the auditors’ reports
The National Bank has set seriously to “correct mistakes” in the banking sector. In addition to the questions that the regulator has to the banking sector players, the regulator has raised questions to auditors. Certain criticism has been voiced on Kapital.kz portal on the part of the Deputy Chairman of the National Bank Oleg Smolyakov. According to Mr. Smolyakov “audit firms confirm financial statements of the financial organisations. This is one of the key instruments, which ensures that operations of the financial organisations are transparent and the National Bank performs its regulatory and oversight functions. In addition, based on review of the financial statements of organisations the National Bank gets objective information about operations of financial organisations required for sound decision-making. And the accuracy and objectivity of the information we receive will depend on how scrupulously the auditors perform their duties.” The issues mostly relate to approaches used to disclose a number of transactions at the level of the audited financial statements of the financial organisations. For instance, an issue relating to assessment of loans granted by the financial organisations.
To clarify the situation Kapital.kz has approached Assel Khairova, Managing Partner of KPMG in Kazakhstan and Central Asia. Read interview with Assel Khairova here
Life and hands-on experience are the best teachers
To be a leader means to be able to see reality, face the truth and be able to manage all situations and circumstances. That is a view that Assel Khairova, Managing Partner of KPMG in Kazakhstan and Central Asia, takes. In her interview to “Business i Vlast” business newspaper, she tells about what her path to leadership has started with, why principles are important in business, who opens the gates of changes in our lives and about many other things. You can read the interview here
Careful plans of oil companies
KPMG has a long history of cooperation with the leading oil and gas companies in Kazakhstan by helping them to operate efficiently, cut through the complex stages in their development and breakthrough to success, notwithstanding all challenges and problems. The editorial board of “&” decided to have a talk with Mukhit Kossayev, Audit Partner, Head of Oil and Gas Practice, KPMG in Kazakhstan and Central Asia, about what this year may turn out to be for the oil and gas sector. To read interview, please click here.
From the Miracle on the Han River to the Miracle on the Ishim River
Currently there are 190 sovereign states around the world and each state has followed its unique development path. Some states have achieved greater successes, while achievements of other states are smaller. A gap in per capita GDP between OECD member countries and CIS member states is about USD 30 thousand. Despite Kazakhstan’s leading position among CIS member states in terms of this index, our country sets an ambitious goal for itself - to reduce a gap and increase per capita GDP up to the level of the OECD member countries.
Still more unequivocal is that the further growth of Kazakhstan economy will require even more intensive increase of such indicator as a labor productivity. Experience of foreign countries shows that it can be achieved only through the accelerated and friendly development of the industry and applied science. Thus, over 50 years South Korea has turned into one of the most developed and high-capacity countries worldwide. Though South Korea has no its own natural resources, it ranks 13th worldwide in Gross Domestic Product and 6th in terms of export. How the Korean experience in the increase in labour productivity can help Kazakhstan, please, read in the article “From the Miracle on the Han River to the Miracle on the Ishim River” by Saken Zhumashev, Partner, Head of Management Consulting, KPMG in Kazakhstan and Central Asia, in Expert Kazakhstan magazine. To read article please click here.
New era in business
Intensity and rate of development of technological innovations in the economy appear to be the turning points for the business sector. This is an opinion of the majority of the CEOs who have participated in Global CEO Outlook – annual global survey by KPMG. To find out more about the overall results visit and.kz.
Oversight over the representative offices
Now and then business executives have to deal with theft of their company's property by their own employees. Some turn a blind eye until the certain moment comes, while other crush such situations in the bud as they count every tenge. When does a turning point come that we start understanding that we have had enough and have to put an end to such situation? Read the article by Ruslan Zheleznyak, Head of Forensic, KPMG in Kazakhstan and Central Asia and Olga Kudinova, Senior Manager, Forensic, KPMG in Russia. http://and.kz/userfiles/books/xrss_b&v_19_2016.pdfd20160916004106.pdf
Does Kazakhstan need principles of sustainable development?
Today, mankind faces increasingly more difficult problems resulting from the population growth, urbanization, environmental deterioration and global climate change. Over the medium and long term, the number of such problems is expected to grow even more. Please read the article by Saken Zhumashev, Partner, Management Consulting, KPMG in Kazakhstan and Central Asia, on whether Kazakhstan needs the principles of sustainable development.
New EU Audit Reform
Remarkable developments took place in the market of audit and consulting services quite recently. On 17 June 2016, the EU Audit Reform came into full effect in all 28 EU Member States, significantly impacting professional services all over the world. Read more in the article by Mukhit Kossayev, Partner, Head of Oil and Gas Practice, KPMG in Kazakhstan and Central Asia.
How to protect business from fraud?
The current crisis stands out from the previous ones in that, in fact, we have to manage on our own, with no support from outside and no import. Many companies, including those from the agricultural sector, have found themselves under pressure. However, if in “prosperous” years the business owners hold rather big budgets, part of which used to be embezzled, then now, during the crisis, the budgets have reduced while the embezzlements have not – the embezzlers got accustomed to certain income level and cannot tame their appetite despite of the difficulties, which the companies are facing. Read the article by Ruslan Zheleznyak, Head of Forensic, KPMG in Kazakhstan and Central Asia, to know how to protect business from fraud.
Role of IT and regulators in innovations
According to KPMG survey, more than 2/3 of IT directors in the world expect or have already faced an impact of the digital technology speedy progress, while only 1/5 of the companies have a digital strategy in place. We as well as our foreign colleagues are still receiving the clients’ requests to develop IT-strategy that are conceived in general, “traditional” terms. While during the engagement discussion and implementation, we realise that it is digital products and services that the client has in mind. It requires transformation of business-processes, workflow, proposals for external clients, i.e. typical business strategy issues. Read more about the role of IT and regulators in present-day innovations in the article by Konstantin Aushev, Manager, and Oksana Borisova, Director, Management Consulting, KPMG in Kazakhstan and Central Asia.
BEPS – Tax Base Erosion and Profit Shifting” in National Business
In the late noughties, the OECD came up with a suggestion about development of a formal document that would enact the measures and efforts that its Member-States undertook to prevent then called “unfair” tax competition. Eventually, having gained a support of the G20 countries, those initiatives turned into a joint project of the OECD and the G20. Read more in the article by Rustem Sadykov, Partner, Head of Tax and Legal, KPMG in Kazakhstan and Central Asia.
Doing deals in insecure times
Regardless of the phase of economic development (boom or recession) of one or another country, in theory, mergers and acquisitions go on anyway, even in the times of crisis. Kazakhstan does not seem to be an exception to this rule. Right now, the local market is transforming at a very quick pace from a “seller” market, which existed over the past few years in the times of $100 pb, which now sounds incredible, into a “buyer” market. Is it the case? Read the article of Eduard Yegay, Director, and Iris Marijic, Associate Director, Deal Advisory, KPMG in Kazakhstan and Central Asia.
Doing business consciously
It is the practice of conducting business with consideration for corporate values, talent management that is crucial for KPMG business to be commercially viable, according to Assel Khairova, Managing Partner, KPMG in Kazakhstan and Central Asia. In her interview with Business and Vlast, Assel has shared how to grow twenty years of business development into two decades of success.
The concept of architecture has long ceased to be correlated exclusively with construction. For the first time the word-combination “corporate architecture” appeared in the context of information technologies in the late 80s in the United States, and has been actively developing since. Currently there is a large number of directions and schools that offer their own approaches to building a corporate architecture and there are tools to facilitate the process. Read more in the article by Vyacheslav Zakharov, Head of IT Advisory, KPMG office in Astana. http://and.kz/userfiles/books/xrss_b&v_18_2016.pdfd20160909020837.pdf
What companies are not allowed to outsource maintenance of accounting?
Currently to optimise their operations many companies choose to outsource a number of operating processes, including those related to maintenance of accounting. In general, the Law of the RK dated 28 February 2007 No.234-III “On Accounting and Financial Reporting” provides for an opportunity to transfer, on the contractual basis, the maintenance of accounting and preparation of financial reporting to the accounting firm or audit organisation, or professional accountant. However, such transfer is not always possible due to express statement in the Law or existing interpretation of the Law. You may read on certain issues of outsourcing of maintenance of accounting in the Article by Aiman Zhekeyeva, Senior Consultant, Tax and Legal, KPMG in Kazakhstan and Central Asia, on KursivKZ portal at: