 | GAAP FOCUS April 2012 | This edition of GAAP FOCUS includes information on presentation differences between financial statements prepared based on the revised Schedule VI/Indian GAAP, IFRS and US GAAP, a summary of how volatile market conditions impact fair value measurement of various assets and liabilities, an analysis of how IFRS has been implemented by companies globally, the latest proposal of the PCAOB in connection with audit of related parties/transactions, ESMA’s consultation paper on considerations of materiality in financial reporting and some recent financial reporting developments under US GAAP/IFRS. |
 | Social media in financial services | In a digital age, where consumers update their ‘tweets’, ‘wall posts’, or ‘profile updates’ and give bankers a peek in their personal life, preferences, and choices, it’s only natural for bankers to adopt these practices and leverage from it. Now is the time to build ‘consumer connected strategies’ and address the diverse needs of customers.
The report alongside explores a number of clear trends in social media by conducting a primary research on potential use of social media by financial institutions. It also includes how financial institutions are resolving customer issues, feedback, and creating brand awareness through these gigantic platforms. |
 | Re-aligning the compass: Location strategy for Global In-house Centers | Global In-house Center’s (GIC) are expected to establish a niche for themselves in mission-critical applications and processes where a company cannot risk involving a third-party. Industries will gradually develop a mature hybrid model of operations under which both GIC model and third-party offshoring will co-exist in the same ecosystem and take best of both worlds.
This report is a sequel to the recent report on the “Hub and spoke operating model: A new business paradigm for the India IT-BPO industry” and is being released during a time when growing concerns around Intellectual Property (IP) and information security have made the GIC model to continue holding a broad appeal.
|
 | Doing business under the UK Bribery Act Survey 2012 | The UK Bribery Act came into force on 1 July, 2011 marking the biggest overhaul of UK Bribery laws over a century. The Act, which is wider in scope than the US Foreign Corrupt Practices Act, 1977 (FCPA), reforms the criminal law of bribery, making it easier to tackle the offence proactively in the public and private sectors.
Our survey is an attempt to understand how companies are tackling the various aspects of the law. Various issues like the risks associated with third parties, the element of facilitation payments, level of commitment required by the Board, Directors personal implications, adequate procedures and the extent of their implementation are just some of the points that have been covered in the subsequent pages. |
 | Accounting and Auditing Update - Revised Schedule VI February 2012 | This February 2012 edition of the Accounting and Auditing Update focuses on the revised Schedule VI to the Companies Act, 1956 issued by the Ministry of Corporate Affairs. Apart from discussing the specific implementation issues surrounding the changes brought out by the revised Schedule VI, the publication also provides a sector specific impact analysis for few industries.
|
 | Hub and Spoke operating model - A new business paradigm for the Indian IT-BPO Industry | While the Global Delivery Model pioneered by Indian IT companies led the explosive growth in the outsourcing industry in earlier decades, challenging times are compelling technology majors to innovate in terms of how they deliver their services. Today, what is rapidly emerging as the predominant service delivery model in the IT industry, and has been successfully leveraged in other industries, is the Hub & Spoke. This report provides a comprehensive understanding of the Hub and Spoke model starting with its evolution, key characteristics, benefits, challenges and factors critical to its success. This report also highlights how, given its existing dominance and proficiency in IT outsourcing, India can function as a global Hub for technology companies worldwide.
|
 | India Anti-Money Laundering Survey 2012 | Post India’s membership to the FATF, the focus on anti-money laundering (AML) initiatives has increased. While AML initiatives have become part of the senor management level agenda for most companies, their execution is found wanting. As legislation around AML evolves, organizations are realizing that AML is not just a compliance tool but a risk management tool. Our survey captures this sentiment highlighting the key areas in AML compliance – KYC norms, client screening, transaction filtering and monitoring, reporting mechanism, AML awareness creation and the cost of compliance. |
 | GAAP FocUS – January 2012 | This edition of GAAP FocUS attempts to keep you informed about the advancement on the IASB and FASB convergence goal and the SEC’s work plan on adoption of IFRS into the US Financial Reporting System.
Additionally, we have highlighted key accounting and financial reporting matters under US GAAP/IFRS and areas of regulatory focus (‘Hot Topics’) that preparers should consider as they gear up for this year-end financial reporting.
Finally, this newsletter discusses key themes around audit quality, role of audit committee and current initiatives of the PCAOB, which includes proposed changes in the audit report model, audit firm rotation and other audit independence related matters.
|
 | Non-linear models - Driving the next phase of growth for the Indian IT Industry | The IT-BPO industry has had its share of turbulent times; it has grappled with adverse protectionist policies, visa regulations, falling discretionary spends and slower scale of adoption in newer markets. Market conditions have become tougher due to heightened competition among vendors, emergence of other low-cost destinations and increasing maturity of clients now demanding more accountability. Domestic regulatory environment comprising of issues of taxation, transfer pricing and lax IP Protection laws are further adding to woes of the industry. But the most important challenge of all is perhaps the employee conundrum. At this critical juncture, firms need to look beyond the conventional linear growth models and turn to innovative non-linear forms of growth. KPMG has identified 7 emerging models increasingly being adopted by companies to accelerate their non-linear growth; they are discussed in the document alongside. |
 | Public Sector Enterprises | Indian central public sector enterprises are going through exciting changes in the environment. The government has taken several measures to bring CPSEs at power with the private competitors both in domestic and global markets. The report outlines CPSE transformation from national to global players: its benefits, business models, classification into various Ratna’s and also case examples discussing models of Indian PSE’s going global. It highlights the actions taken by the public sector enterprises in India towards sustainable growth: adoption of upcoming technologies in ICT, human resource development, infrastructure development and green initiatives. |