trends to noteEconomic and political outlook in and around the world

Bitcoin SEEkS REcognition FRom U.S. gAAPn ACCORding tO A July 2017

REpORt in Thomson Reuters Tax & Accounting News, the US Financial Accounting Standards Board (FASB) is conducting early stage research about developing an accounting standard for digital currencies and the underpinning technology. With the use of digital currency increasing, inconsistent accounting practices are becoming a challenge.The report said that FASB as the standard-setter for US GAAP plans to discuss whether to add a project to its agenda at a public meeting, a FASB spokesperson said, but that the

timing had not been set yet.The report said that the accounting board’s examination of digital currency follows a request from the Digital Chamber of Commerce, a trade group representing the blockchain industry, to clear up accounting questions related to the growing digital currency market. In a 8 June 2017 letter, the group called on the FASB to create guidance to address recognition and measurement of digital currency. Perianne Boring, founder and CEO of the group said this was a “mission-critical” issue.

n OECd COuntRiEs COuld Add around USD2 trillion to their total gross domestic product (GDP) in the long run if the employment rate for workers aged over 55 was equal to best-performing EU country Sweden, according to PwC economists.The PwC Golden Age Index is a weighted average of indicators – including employment, earnings and training – that reflect the labour market impact of workers aged over 55 in 34 OECD countries. Between 2015 and 2035, the number of people aged 55 and above

Golden Contributions

in high-income (OECD) countries is estimated to grow by almost 50% to around 538 million.” Rapid population ageing puts significant financial pressure on healthcare and pension systems. To offset these higher costs, older workers should be encouraged and enabled to remain working longer to increase GDP, consumer spending power and tax revenues.The potential long-term GDP boost from older workers varies significantly across countries, from around 1% in Korea and 2% in Japan to around 16% in Greece. Given its size, the US has the largest potential absolute gain of around USD0.5 trillion (around 3% of GDP).

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numbers

to note

+PurPose beyond Profitn puRpOsE, nOt pROfit, is BusinEss lEAdERs’ kEy tO

suCCEss amid turbulent global economy, according to the EY report, How can purpose reveal a path through

disruption? Mapping the journey from

rhetoric to reality.

Based on a survey of 1,470 global leaders representing companies across various industries in developed and emerging markets around the world, the respondents include 500 businesses with annual revenues of USD2.5b or more.

73% of respondents said that embracing and integrating corporate purpose in their organisation is key to succeeding in the uncertain global economy. 66% said they are profoundly rethinking their organisations’ purpose as a result of disruption. Only 15% said that their company’s main purpose is to maximise shareholder value.

The report identified four steps that can help every organisation reach their purpose goals:

Clearly articulate a purpose that responds to the needs of their stakeholders and is grounded in what an organisation does

Embed purpose into their strategy and operations, and align their decision-making with that purpose

Constantly evaluate where they are in their journey and what needs to change

Accelerate the journey by placing purpose at the centre of their culture and ensuring it is owned by their people.

AI BoostBusinesses that

successfully apply artificial intelligence (AI) could increase

profitability by an average of 38 per cent by 2035,

according to a new Accenture research. The introduction of AI could

lead to an economic boost of USD14 trillion

in additional gross value added (GVA) across 16 industries in 12

economies.

the amount that McKinsey Global Institute (MGI) estimates that the

world must invest a year on infrastructure over the next

two decades, primarily for roads and power systems to keep up with population trends. In total, USD69

trillion of investment will be needed between now

and 2035.

usd3.7 trillion

the percentage of the world’s top 2,500 companies that have appointed an executive — commonly known as a Chief Digital Officer (CDO) — to oversee the digital transformation of their business, according to Strategy&’s 2016 Chief Digital Officer Study of the top 2,500 public companies around the world by market capitalisation.

19%

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