Date posted: 01/02/2024 5 min read

In the news

Here’s Acuity’s round-up of news, research, statistics and advice. Read all about it!

Quick Take

  • According to William Buck’s Exit Smart Report 2023, 72% of the Australian and New Zealand SME owners surveyed expect to exit the business in the next 10 years. However, only 38% have an exit plan in place.
  • CA ANZ would like to congratulate the Associations Hall of Fame inductees, including Pamela Lee FCA, announced in the annual Association Awards on 23 November 2023.
  • The International Accounting Standards Board says we can expect two new International Financial Reporting Standards (IFRS) to be issued in the first half of 2024.

No exit for SMEs

According to William Buck’s Exit Smart Report 2023, 72% of the Australian and New Zealand SME owners surveyed expect to exit the business in the next 10 years. However, only 38% have an exit plan in place.

For 42% of SME owners, the reason for exiting the business will be retirement and 47% believe the most likely exit arrangement will be a trade sale, but 64% of owners haven’t had their business valued in recent years, and haven’t addressed ‘key person’ risk, which can lower the value of the business by 30%.

In addition, 59% haven’t considered if the business has the optimum tax structure for an exit.

You can help your SME clients by checking that:

1. They have an exit plan in place, including a succession plan if they intend to hand the business down to family.

2. An exit plan is in place at least a few years before their planned exit, and that they understand there may be a long handover process, too.

3. They get a business valuation, and use it to identify areas where they can increase value.

4. They also assess their risks – including key person risk, and act to mitigate these threats.

5. The tax structure of the business will help them get the most from the proceeds of a sale.


A lifetime of service

CA ANZ would like to congratulate the Associations Hall of Fame inductees, including Pamela Lee FCA, announced in the annual Association Awards on 23 November 2023. John Peacock AM, CEO, Associations Forum hands the Associations Hall of Fame award to Pamela Lee FCA, community investment relationship manager, Chartered Accountants Australia and New Zealand.Pictured: John Peacock AM, CEO, Associations Forum hands the Associations Hall of Fame award to Pamela Lee FCA, community investment relationship manager, Chartered Accountants Australia and New Zealand.


Love (and money) is in the air...

Love it or hate it, Valentine’s Day is big business.

In Australia, total spend in 2023 was estimated at A$485 million, with people shelling out an average of A$118 on Valentine’s gifts. This seems comparatively modest when compared with the US’s projected average spend of US$193.

Flowers are a traditional Valentine’s favourite and, according to the Society of American Florists, demand for red roses spikes by 30% around 14 February. Prices also typically increase by 28%.

Most Valentine’s Day roses are imported into Australia, which also adds to the financial and carbon costs, and even domestically grown flowers can be impacted by weather and supply-chain issues. If you’re willing to try something different that’s grown domestically and offers better value, here are some in-season options.

Valentine’s DayImage credit: EventPix; Karolina Grabowska

Australia

  • Lisianthus
  • Dahlias
  • Lilies
  • Chrysanthemums
  • Heart-shaped anthurium

New Zealand

  • Dahlias
  • Gerberas
  • Sunflowers
  • Hydrangeas
  • Non-red roses

Sources: Australia, Flower Industry Australia; New Zealand, The Green Room Flower Company


New IFRS standards in 2024

The International Accounting Standards Board says we can expect two new International Financial Reporting Standards (IFRS) to be issued in the first half of 2024.

The first, Primary Financial Statements, is intended to clarify and enhance the information companies provide about their financial performance. It will supersede IAS 1 Presentation of Financial Statements and should make it easier for investors to compare companies.

The second, Subsidiaries without Public Accountability: Disclosures, is designed to simplify financial statements prepared by subsidiaries of listed groups.

Both standards come into effect on or after 1 January 2027.

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