Right now, the push towards convergence is accelerating…along with demand for IFRS expertise, reports executive search firm, A.E. Feldman. The bottom line: almost every country, including the United States, will most likely be using IFRSs to some extent by 2011. Right now, however, there remains a shortage of professionals with sufficient knowledge of IFRS to make the conversion and to maintain IFRS financial statements, both among domestic and international operations. As a result, A.E. Feldman reports that accounting jobs are opening up as the need for IFRS-trained accounting talent intensifies.

Convergence Accelerating

The globalization of business and finance has led more than 12,000 companies in almost a hundred countries to adopt IFRS, according to the American Institute of Certified Public Accountants (AICPA). In 2005, the European Union began requiring companies incorporated in its member states whose securities are listed on an EU-regulated stock exchange to prepare their consolidated financial statements in accordance with IFRS. Australia, New Zealand and Israel have essentially adopted IFRS as their national standards. Canada, which previously planned convergence with U.S. GAAP, now plans to require IFRS for publicly accountable entities in 2011. The Accounting Standards Board of Japan (ASBJ) and the International Accounting Standards Board (IASB) plan convergence by 2011.

Here in the U.S., the push for convergence is accelerating. According to a recent AccountingWeb report, a poll of AICPA members reveals the expectation is that it will take three to five years to fully implement the changes brought by the IFRS.

Narrowing the Gap

Many differences between IFRSs and U.S. GAAP have been narrowed as a result of the ongoing convergence efforts, according to Deloitte research. The firm has identified several areas in which substantial convergence has already occurred: share-based payment, business combinations and segments.

The rules differ broadly, however, on key topics such as inventory accounting, insurance industry accounting, when companies can recognize revenue and the use of fair value accounting.

In a recent report, CFO.com cites a FASB webcast in which there was “a reference to the Securities and Exchange Commission’s acceleration of convergence between U.S. and international accounting standards over the past two years, which has shifted the focus from gradually aligning the two systems to actually eliminating U.S. GAAP in favor of IFRS.” The report also notes that FIN 48 (Accounting for Uncertainty in Tax Positions) remains a major sticking point in adopting international standards, although the FASB intends to propose some sort of resolution “in the next few months.”

“Once a critical mass of non-U.S. companies in a certain industry sector begins to report their financial results using IFRS, there will likely be pressure for U.S. issuers to do the same, to allow investors to better compare their financial results. But this issue will have an impact far beyond just financial reports. It will affect almost every aspect of a U.S. company’s operations, everything from its information technology systems, to its tax reporting requirements, to the way it tracks stock-based compensation,” according to the AICPA.

Switching to IFRS significantly reduces the cost of accounting and financial reporting for multi-national companies, which would otherwise have to translate and reconcile records prepared under various country-specific standards. According to A.E. Feldman, any company that has a parent or a subsidiary internationally and requires consolidation will abandon U.S. GAAP and report based on IFRS.

The increasing acceptance of IFRS, both in the U.S. and around the world, means that now is the time to become knowledgeable about these changes, according to the AICPA. The group warns that most CPAs will somehow be affected.

Demand for IFRS Expertise

The use of IFRS by U.S. publicly held companies will create the need for effective training and education, according to the AICPA. The group contends that currently most U.S. accountants in the United States are not trained in IFRS. Additionally, most specialists, such as actuaries and valuation experts, who are engaged by management to assist in measuring certain assets and liabilities, are also not taught IFRS. The AICPA concludes that all parties will need to undertake comprehensive IFRS training.

The AICPA has launched a web site, IFRS.com, to help its members and financial professionals learn about and stay informed on IFRS. “It is increasingly clear that as international standards gain wider acceptance and use in the United States, the accounting profession must keep pace,” said Barry C. Melancon, President and Chief Executive Officer of the AICPA.

The bottom line: CPAs need to begin to prepare for the day (in the not-so-distant future) when the SEC could designate a date for voluntary, or possibly mandatory, adoption of IFRS by all U.S. public companies.

A.E. Feldman’s accounting division is constantly researching industry trends and developments. To learn more about convergence or inquire about existing and future job opportunities in accounting the lines of communication are open. Contact A.E. Feldman’s President, Mitch Feldman, and the firm’s cutting edge accounting recruiting team here.

The scope of responsibilities and strategic importance of internal audit departments are expanding as well. Audit professionals are increasingly expected to move beyond compliance and financial reporting responsibilities to focus on business and operational risk as the credit crunch shows no sign of letting up according to the yearly annual Audit Committee Member Survey conducted by KPMG’s Audit Committee Institute (ACI). Oversight of information technology (IT) risk, in particular, has emerged as a high priority. Amid the change, internal audit has become a “valuable rung on the leadership ladder,” according to CFO.com.

Moreover, the American Institute of Certified Public Accountants (AICPA) contends that the volume and complexity of financial and non-financial information will continue to expand along with the need for accountants and auditors to interpret and analyze data and participate in the decision-making process. That said, hiring qualified professionals remains the most critical concern for U.S. firms.

As a result, accounting jobs are opening up, according to executive search firm, A.E. Feldman. Firms are adding staff to address the increased emphasis on risk management as well as mounting resource demands. Current opportunities include international tax jobs, tax manager jobs, business valuation jobs and transaction services jobs. Need also exists for candidates with expertise in hedge fund accounting.

Risk has surpassed accounting as the top priority of audit committees, according to a survey conducted by the Audit Committee Institute (ACI) and the National Association of Corporate Directors. The survey, which polled 281 audit committee members, reveals that only 28% of respondents said they were “very satisfied” that audit committees understand management processes well enough to identify and assess significant business risks facing the company. In addition, only 21% said they are “very satisfied” with the risk reports they receive from management. And, while nine out of ten respondents say their audit committee is more effective now than before the passage of Sarbanes-Oxley many acknowledge risk management is one particular area in which there is room for improvement.

“The current business and regulatory environment is sharpening the audit committee’s focus on risk management,” said Henry R. Keizer, Vice Chair - Audit, KPMG LLP, and Global Head of Audit, KPMG International. “The near ‘perfect storm’ of the credit crunch, economic slowdown and market volatility has placed risk management high on the audit committee agenda, where it is likely to stay for some time.”

Risk Management Top Concern

Nearly all of the audit committee members polled in the joint study conducted by KPMG’s Audit Committee Institute (ACI) and the National Association of Corporate Directors ranked risk management as their top priority. Accounting judgments and estimates dropped to second on the list.

Coming in third was information technology (IT) risk and governance - the area in which respondents felt least confident. One quarter of respondents said they were not clear about the areas of IT risk the audit committee is responsible to oversee and 26% said they were not satisfied with management’s reports on IT risks.

“Audit committees are more confident in their ‘traditional’ areas of financial reporting oversight,” said Edward F. Smith, Executive Director of ACI. “But there’s much less comfort in the area of risk management. They clearly want a better understanding of the company’s risks and its risk management processes.”

The survey highlights two key challenges for audit committees:

1. Defining the audit committee’s risk oversight responsibilities (50% of respondents expressed concern they have too much responsibility for risk oversight)
2. Coordinating risk oversight activities with other board committees to better monitor potential risks (74% said communication and coordination of risk oversight activities among the audit committee, board, and other committees could be improved)

IA in the Spotlight

In the wake of the corporate scandals that erupted over the past decade, internal audit has found itself in the corporate spotlight, reports CFO.com. That’s thanks in part to Sarbanes-Oxley and its heightened financial-reporting mandates. The report states that today internal audit executives are immersed in all aspects of a business, and have frequent exposure to the board. That said, the report also contends that Chief Auditors are now considered senior finance executives and professionals who move into the lead audit role may be in a position to gain the experience and exposure to help shape the remainder of their careers.

An increasing number of companies are expecting their IA teams to deliver more in terms of value creation from their risk and control based activity, not just value preservation, according to KPMG International. Mike Nolan, Partner in the KPMG International’s Advisory practice and Global Head of Internal Audit Services, says, “Audit committees increasingly look to IA to help them expand their oversight of organizational risks, governance, financial reporting and control frameworks.” Nolan adds now is the time to be ramping up IA efforts with more sophisticated capability in this area. “Having the capability to deal with today’s business risks requires a significant level of investment in skilled resources, methods, training, career paths and technical infrastructure,” he says.

Now, as firms step up to meet these challenges, A.E. Feldman, says auditor jobs exist for candidates who can evaluate and participate in the improvement of clients’ risk management, controls and governance processes through the use of strategic and technical expertise.

A.E. Feldman’s accounting division is constantly researching industry trends and developments. To learn more about these issues or inquire about existing and future job opportunities in international tax, the lines of communication are open. Contact A.E. Feldman’s President, Mitch Feldman, and the firm’s cutting edge accounting recruiting team here.

Meanwhile, U.S. foreclosure activity in June dropped 3% from the previous month, but it was still up 53% from a year ago, according to the RealtyTrac U.S. Foreclosure Market Report. While the small decrease last month may lead to speculation that the upward trend in foreclosure activity may be nearing an end, RealtyTrac CEO James J. Saccacio, points out, the year-over-year change is a more indicative number of the overall trend. “The year-over-year increase of more than 50% indicates we have not yet reached the top of this foreclosure cycle,” he said.

“The Federal Reserve views the current high rate of mortgage foreclosures as an urgent problem,” Fed Governor, Randall Kroszner, said recently at a NeighborWorks forum in Cincinnati, reports the AFP. Kroszner has urged banks to adopt “workout arrangements” to help troubled homeowners stay in their homes.

Now as consumers struggle under the burden of rising household debt, growing mortgage problems and rising energy prices, loan workouts are also on the rise. Holders of securitized subprime mortgages are being urged to restructure or workout loans that are delinquent or likely to default.

After hitting a record high in April, loan workouts continue unabated in May. Statistics recently released by Hope Now, a group backed by the Bush administration to help stem the mortgage crisis, show mortgage servicers helped approximately 170,000 homeowners avoid foreclosure in May 2008. Since last July, HOPE NOW estimates that more than 1.7 million homeowners have avoided foreclosure because of industry efforts. According to HOPE NOW Executive Director Faith Schwartz, “As promised, the industry has accelerated the pace at which it is helping homeowners.”

Approximately 100,000 of the prime and subprime loan workouts provided by mortgage servicers in May were repayment plans, and roughly 70,000 were loan modifications.

Mitch Feldman, President of executive search firm, A.E. Feldman, says the trend is creating opportunities for candidates with expertise in underwriting, restructuring, valuation and loan workouts. Law firms around the country are also gearing up for the increase in bankruptcy filings. Many have already begun expanding their ranks, hiring bankruptcy attorneys and restructuring specialists. A.E. Feldman says attorney jobs are opening up for candidates with excellent academic credentials and a proven track record.

To learn more about these issues or inquire about existing and future job opportunities in restructuring, valuation and loan workouts as well as bankruptcy law, the lines of communication are open. Contact A.E. Feldman’s President, Mitch Feldman, and the firm’s expert recruiting team here.

Despite the growing significance of innovation, R&D, patents, copyrights, trade secrets and IP, a recent PwC study concludes that technology execs believe they are not yet as competent as they should be in the management of IP. Now, as more businesses leverage IP to generate revenue and remain competitive, executive search firm, A.E. Feldman, reports that corporations are expanding IP asset management teams and introducing significantly higher levels of sophistication to their IP asset management. As a result, demand for IP licensing talent is surging. The need for legal assistance is also creating opportunities for attorneys, who are increasingly responding to IP issues. A.E. Feldman says legal jobs are also opening up as top tier law firms with booming intellectual property practices are seek patent attorneys.

Leveraging IP

IP is a core strategic asset, according to PwC. Right now, the focus is shifting from litigation to managing and enhancing its value. PwC quotes Horatio Gutierrez, VP and Deputy General Counsel at Microsoft, IP and Licensing Group, as saying, “We are moving toward a global economy where the true strategic asset is IP. We invest over $7 billion a year in R&D, and then we turn that knowledge, that IP, into licensing revenue.”

Traditionally, intellectual property (IP) systems were established to create a barrier from competitors. Today, however, more corporations are using their IP assets as instruments for developing business relationships and accessing new technologies, reports WIPO. In short, IP assets can be leveraged to access markets, generate dependable income and provide a significant boost to a company’s bottom line.

Two key strategic ways to maximize IP assets include licensing and franchising. Licensing is when an owner of an intangible asset, transfers the right to use that asset to another, for a price, while retaining ownership of that asset, according to WIPO. It provides a legal way to protect knowledge and creativity (i.e. patents, trademarks and copyrights) while simultaneously taking advantage of a valuable tradable intangible asset.

In contrast, a franchise is a specialized license where for a fee a franchisee is allowed by the franchisor to use a particular business model and is licensed a bundle of IP and supported by training and technical support.

Firms Seek to Extract More Value from IP Portfolios

PwC’s report finds that technology executives recognize they must maximize the value of their IP portfolios, but technology execs still do not believe their companies are extracting its full value. The report quotes Forrester analyst, Navi Radjou, as saying that U.S. companies waste an estimated $1 trillion each year by failing to extract the full value of their IP through partnerships.

According to PwC, 83% of technology execs say IP management is either very important (52%) or very important (31%) to the success of the company. Looking ahead, as important as IP management is today, PwC finds that 85% of IT execs expect IP management to become even more important over the next three years.

Law Firms Expanding IP Practices

The need for IP legal assistance has exploded in the past decade as more companies rely on ideas, technologies and processes. That has led to a boom in the number of IP attorneys - a field some consider recession-proof.

Brinks Hofer Gilson & Lione, one of the largest intellectual property law firms in the U.S., recently announced the opening of a new office in North Carolina. The firm added two patent attorneys.

“The addition of these two outstanding attorneys and the new office fits our current practice strategy and addresses an increasing demand from our clients,” said Brinks President, Gary M. Ropski.

Meanwhile, Sheppard Mullin Richter & Hampton LLP announced the addition of two attorneys to its intellectual property practice in Costa Mesa.

Rutan & Tucker LLP also issued a statement to highlight the expansion of its Intellectual Property practice.

A.E. Feldman’s legal and technology divisions are constantly researching industry trends and developments. To learn more about these issues or inquire about existing and future job opportunities, the lines of communication are open. Contact A.E. Feldman’s President, Mitch Feldman, and the firm’s expert legal, financial or IT recruiting teams here.

Meanwhile, demand for experienced accountants is surging. Among the reasons for the growing need for accountants is an increase in corporate governance regulations and heightened focus on risk. The American Institute of Certified Public Accountants (AICPA) contends that the volume and complexity of financial and non-financial information will continue to expand along with the need for accountants and auditors to interpret and analyze data and participate in the decision-making process.

Hiring qualified professionals remains the most critical concern for U.S. firms, according to the AICPA. Executive search firm, A.E. Feldman, says accounting jobs are opening up as firms address mounting resource demands. Current opportunities include, tax manager jobs, audit jobs, international tax jobs, and business valuation jobs. Demand is also growing for candidates with experienced in hedge fund accounting.

Certifications Count

The IMA survey shows that corporate accountants with a certification (CPA or CMA) earned an average of 25% more than those without one.

“The results of this year’s survey are a testament to the tremendous value certification adds to accountants’ jobs, salaries and ultimately the organizations for which finance professionals work,” said Dennis Whitney, vice president of the Institute of Certified Management Accountants.

Jeffrey C. Thomson, IMA president and CEO also notes, “With today’s unstable economic conditions, including soaring gas prices, rising unemployment, and a housing market decline, it’s more important now than ever that finance and accounting professionals seek ways to enhance their value.”

A.E. Feldman’s accounting division is constantly researching industry trends and developments. To learn more about these issues or inquire about existing and future job opportunities in international tax, the lines of communication are open. Contact A.E. Feldman’s President, Mitch Feldman, and the firm’s cutting edge accounting recruiting team here.

In the latest developments, Blackstone has announced plans to sink more than $1.5 billion into wind energy. Meanwhile, GE Energy Financial Services is investing $100 million in three wind farms. One industry veteran now recruiting for executive search firm, A.E. Feldman, says, “Very few people understand green technologies yet but the wealth of individuals and institutional investors getting involved is enormously high. There is a big rush of people and money into this area. It’s still very early, but interest in alternative energy is absolutely growing and attention to the sector will only increase.” As a result, the firm says investment professionals who understand the burgeoning industry and can funnel money into these businesses are hot commodities.

Investing in Wind

Private equity firm, Blackstone plans to invest more than $1.57 billion in a project to build wind farms in the North Sea to generate electricity, reports Reuters, citing people familiar with the matter.

According to the report, Blackstone plans to take a stake in the “Meerwind” project to build roughly 80 wind farms with a capacity of 400 megawatts off the German island of Helgoland. The owners of the project, however, privately-held German investment company Windland Energieerzeugungs GmbH, and Blackstone declined to comment.

Meanwhile, GE Energy Financial Services recently announced it will invest a total of $100 million in three wind farms under construction in northern and western New York. The unit of GE revealed a goal of investing $6 billion in renewable energy by 2010. Now, with this latest investment, GE Energy Financial Services surpasses the $4 billion mark.

“We have reached the $4 billion milestone just five months after hitting $3 billion, confirming that renewable energy is our fastest-growing business,” said Alex Urquhart, President and CEO of GE Energy Financial Services.

Including the three new farms, GE Energy Financial Services has invested or committed to invest equity worldwide in 76 wind farms, with a total capacity of more than 4,000 megawatts.

When the three wind farms begin commercial operation, the GE unit projects they will increase the wind producing capacity of New York State by 47%. Using 1.5-megawatt GE wind turbines, they will generate a combined 330 megawatts of energy—enough to power more than 110,000 average New York homes. GE Energy Financial Services says the farms will avoid 385,000 tons of greenhouse gases per year – the equivalent of taking 64,000 cars off the road.

Pickens: Alternative Energy Critical for the Future

Texas oilman, T. Boone Pickens, has emerged as a staunch supporter of wind energy. Pickens recently launched a self-financed, $58 million campaign called the Pickens Plan to end the nation’s dependence on foreign oil and promote renewable energy, namely wind.

He has already announced he’s sinking $2 billion into a wind farm in Texas. Mesa Power LLP, a company created by Pickens, placed an order with General Electric to purchase 667 wind turbines capable of generating 1,000 megawatts of electricity, enough to power more than 300,000 average U.S. homes. In a statement, GE says the agreement represents the first phase of the four-phase Pampa Wind Project that will become the world’s largest wind energy project, with more than 4,000 megawatts of electricity, enough for 1.3 million homes. When all phases of the project are completed as projected in 2014, the wind farm will be five times as big as the nation’s current largest wind power project, covering some 400,000 acres in the Texas Panhandle.

“Building wind facilities in the corridor that stretches from the Texas panhandle to North Dakota could produce 20% of the electricity for the United States at a cost of $1 trillion. It would take another $200 billion to build the capacity to transmit that energy to cities and towns. That’s a lot of money, but it’s a one-time cost. And compared to the $700 billion we spend on foreign oil every year, it’s a bargain,” states Pickens on his web site.

Pickens believes that developing alternative energy projects is critical for the nation’s future. “You find an oilfield, it peaks and starts declining, and you’ve got to find another one to replace it. With wind, there’s no decline curve,” he says.

The Power of Wind

A recent Forbes report states that 3 million wind turbines would be needed to replace a “cubic mile of oil”- a metric roughly equivalent to the amount of oil consumed worldwide each year, citing the nonprofit research institute, SRI International.

Still, the Department of Energy contends that wind power is capable of becoming a major contributor to America’s electricity supply over the next three decades. The DOE says that achieving a 20% wind contribution to U.S. electricity supply would:

• Reduce carbon dioxide emissions from electricity generation by 25% in 2030
• Reduce natural gas use by 11%
• Reduce water consumption associated with electricity generation by 4 trillion gallons by 2030
• Increase annual revenues to local communities to more than $1.5 billion by 2030
• Support roughly 500,000 jobs in the U.S.

Under the DOE’s 20% wind scenario, installations of new wind power capacity would increase to more than 16,000 megawatts per year by 2018, and continue at that rate through 2030.

Policy Support Critical

The American Wind Energy Association (AWEA) released a statement which contends that large scale energy projects (such as Pickens’ wind vision) are possible, but policy support is essential to achieving the DEO’s projections. The AWEA contends that ramping up wind power quickly on a large scale is feasible if the government enacts the correct policies, starting with renewal of the production tax credit.

Large scale renewable energy projects rely upon the Federal Production Tax Credit (PTC), which provides incentives for development of renewable energy. The problem lies in the fact that large scale renewable energy projects require commitments years in advance, while Congress has only extended the Production Tax Credit one or two years at a time. Advocates for large scale energy projects are pushing for Congress to enact a long-term extension of the Production Tax Credits.

“Wind power has become a key option for our country,” said AWEA Executive Director Randall Swisher. Swisher goes on to say that, “In order to make this happen, however, the U.S. government will need to play its part and enact short- and long-term policies to transform many of our current practices. Of critical and immediate importance, is an extension of the federal production tax credit, so that the industry can move ahead with planned investments and keep people at work. Of equal importance will be longer-term policies to plan for more transmission to bring large amounts of wind power from windy areas to population centers.”

The Economics of Wind

“Wind farms provide not only clean energy but more jobs,” said Kevin Walsh, Managing Director and leader of renewable energy at GE Energy Financial Services. “Local people have already been hired to construct the wind farms, build and plow the roads, and eventually maintain the projects. As we showed in a study we released last month, wind farms will create tax revenues for local and federal governments. In a world with rising fuels costs, this new form of energy—and the millions of dollars in economic benefits it provides—is truly America’s new cash crop.”

The AWEA quotes Chuck Grassley (R-IA) as saying, “Wind energy has not only helped power many parts of Iowa, but it has provided millions of dollars in economic activity to struggling communities. Wind is an affordable and inexhaustible source of domestically produced energy. We must do everything possible to capture and grow this renewable source of energy all the way up the supply chain.”

“The U.S. wind power industry is a bright spot in our economy,” said AWEA Executive Director Randall Swisher. “Every megawatt of installed wind power creates employment in manufacturing, construction and operations as well as jobs in advertising, office support, environmental assessment and other related professions. America’s vast wind resources have barely been tapped, and we have only just begun to see wind’s potential to generate broad economic growth.”

Right now, A.E. Feldman is one step ahead of the latest developments in renewable energy and green technology. To learn more about these issues or inquire about existing and future job opportunities in this sector, the lines of communication are open. Contact Mitch Feldman, President of A.E. Feldman, and the firm’s cutting edge energy recruiting team here.

In a statement, the Fed states that under the MOU, the agencies would share information and cooperate across a number of important areas of common interest, including anti-money laundering (AML), bank brokerage activities under the Gramm-Leach-Bliley Act, clearance and settlement in the banking and securities industries, and the regulation of transfer agents. More specifically the memorandum covers bank holding companies and so-called Consolidated Supervised Entities that own securities firms.

According to the Fed, “It builds on and formalizes the long-standing cooperative arrangements between the SEC and the Board, as well as the more recent cooperation on matters including banking and investment banking capital and liquidity following the Board’s emergency opening of credit facilities to primary dealers.”

Fed Chairman Ben Bernanke expressed his approval of this agreement. “It formalizes and strengthens the ongoing cooperation between our two agencies to enhance the stability of the financial system,” he said.

The evolution of commercial and investment banking has necessitated the MOU, according to SEC Chairman Cox. “Today, the interconnectedness of mortgage and lending markets, credit derivatives, securitizations, and counterparty relationships requires the U.S. government to adopt a more coherent and coordinated approach.”

Paulson Pushes for More Oversight

Meanwhile, U.S. Treasury Secretary Henry Paulson recently issued a warning that Britain and the U.S. must overhaul their outdated banking regulatory systems to give better advance warning of future economic turbulence, according to the AP.

Paulson said the Fed needs sweeping new powers to give it easier access to information on financial institutions in order to intervene to avert future crises.

The AP cited excerpts of a Paulson speech which states, “As U.S. and global regulators respond to recent events, we must recognize that the stability and vitality of our markets require both robust oversight and market discipline.” The report also quotes Paulson as saying the Fed Reserve should be granted wider access to data on the activities of commercial and investment banks and hedge funds.

In an attempt to avoid a bankruptcy, the Fed fast-tracked the sale of Bear Stearns to JPMorgan Chase back in March. The Fed also stepped in to mitigate risk, agreeing to fund up to $30 billion of Bear Stearns’ less liquid assets - the troubled mortgage and other assets that got the nation’s fifth-largest investment bank into trouble.

Paulson already proposed an overhaul of the country’s financial regulation system back in April. The Treasury’s Blueprint for a Modernized Financial Regulatory Structure, which includes a broad expansion of the Fed’s powers, underscores the continued and growing emphasis on risk - primarily within investment banks that have been accused of indulging on hugely overvalued complex derivatives. According to Paulson, the proposed changes are designed to attack problems as they occur rather than prevent them.

Firms Focusing on Risk Management

Right now, the emphasis on risk management is growing. The industry has realized just how important it is to look at underlying risk. Mitch Feldman, President of executive search firm, A.E. Feldman, says the risk office must absolutely be more aware of where the risks are and where the value is. Today, risk managers must be able to determine how deep the problem is, who is being paid out first and what is the risk for the investor. Now, A.E. Feldman notes that risk management jobs are gaining significance as firms continue to shore up their risk teams and replace or add new Chief Risk Officers.

GE Money Home Lending recently appointed a new Chief Risk Officer, according to Money Marketing. The new CRO will be responsible for leading the company’s risk division in continuing to develop and implement rigorous processes to ensure best practice across its risk function. The report quotes GE Money Home Lending’s Chief Executive Officer, Colin Shave, as saying, “The role of Risk Leader is strategically important to the continued success of our business.”

In addition, Northern Rock has also appointed a Chief Risk Cfficer as part of its strategy to strengthen “the risk and control environment throughout the company,” according to FT Advisor.

To learn more about these issues or inquire about job trends in risk management the lines of communication are open. Contact the Mitch Feldman, President of A.E. Feldman, and the firm’s executive recruiting team here.

New concepts like XBRL and enhanced business reporting are making real changes in the way business is being done. These major financial reporting developments are critical issues facing financial, legal, risk, audit and compliance officers at publicly held companies. Right now, corporations must add the infrastructure and strive to meet the filing requirements of the SEC. As a result, executive search firm, A.E. Feldman, reports that accounting jobs are opening up. Opportunities currently exist for Audit Managers and senior-level professionals with expertise in the preparation and maintenance of financial, accounting and statistical reports.

XBRL involves computer “tags” similar to the bar codes used to identify groceries in the supermarket. The tags uniquely identify individual items in a company’s financial statement so they can be easily searched, downloaded, reorganized, and put to any number of other comparative and analytical uses, according to the SEC. “Interactive data represents the logical next step in the evolution of company disclosure just as HTML and Internet access were the logical next step a decade ago,” says Corey Booth, SEC Chief Information Officer.

XBRL is a language for the electronic communication of business and financial data which is transforming global business reporting with the promise of greater efficiency and improved accuracy. The technology is being developed by an international non-profit consortium of approximately 450 major companies, organizations and government agencies, according to XBRL.org. Right now, implementations of XBRL are growing rapidly around the world.

Here in the U.S., the mandate issued by the SEC outlined a graduated process for adoption of XBRL. The largest organizations, those with a market capitalization in excess of $5 billion, must file their XBRL formatted financial statements for fiscal periods ending December 15^th 2008. All other publicly traded companies will have to adopt XBRL by 2011. Those companies not immediately affected, however, are still being encouraged by the SEC to voluntarily adopt XBRL before it is mandated.

Despite the SEC Mandate, a Compliance Week survey shows that companies are not yet prepared for XBRL. The research reveals that a staggering 80% of the 236 publicly held companies polled lack internal expertise on the new technology. More than half, 59%, of respondents say they either have just begun reading up on the technology, or have done no research at all.

“XBRL is going to be a significant change for businesses, probably more than most realize,” says Matt Kelly, Editor of Compliance Week. “The SEC is going to mandate this technology very soon, and right now most companies aren’t showing much urgency to start preparing for it. Given that XBRL may pose some steep learning curves and technology changes that take years to digest, it’s an ominous sign that so many are so unaware.”

The majority of respondents, 79%, say their company has no XBRL expert on staff. Roughly 19% have an expert on the financial reporting team, and 2% had an expert in the IT department.

David Blaszkowsky, Director of the SEC’s Office of Interactive Disclosure, notes that the SEC has so far received over 400 interactive filings from companies participating in the voluntary XBRL filing program, reports WebCPA.

A.E. Feldman says demand for XBRL experts will grow as companies seek to meet the requirements of the SEC mandate. The proposal impacts the largest 500 companies for their 2008 year-end reports and all other public companies in the next two years. That means CIOs and CFOs who are not up to speed on XBRL will need to be soon.

A.E. Feldman’s accounting division is constantly researching industry trends and developments. To learn more about these issues or inquire about existing and future job opportunities in accounting, the lines of communication are open. Contact the firm’s accounting recruiting team here.

There is a lot of investment in the Gulf and with that comes increasing demand for talent. Mitch Feldman, President of executive search firm, A.E. Feldman, says financial jobs and legal jobs are opening up. Investment bankers, risk managers, private equity and real estate professionals are among those in short supply. The recruiting firm adds that candidates who are able to demonstrate strong modeling skills, transaction experience and excellent communication skills are in a prime position to benefit from the trend.

Banks Bolstering Mid East Teams

In the latest example of investment banks strengthening their on-the-ground teams in the Middle East, UBS recently unveiled several key measures aimed at significantly boosting the firm’s already rapid growth in the Middle East. UBS announced that it has been granted conditional authorization by the Capital Markets Authority (CMA) to set up operations in the Kingdom of Saudi Arabia. UBS says the move demonstrates UBS’s long-term commitment to the region.

Following the final approval of the CMA and other authorities, UBS Saudi Arabia plans to open by year end. John Fraser has been named Chairman of new the operation. He is also currently Chairman and CEO of UBS Global Asset Management and Group Executive Board member. UBS says its Saudi Arabia operation will focus on the bank’s global core securities businesses offering Wealth Management, Asset Management and Investment Banking services.

In its attempt to boost its Middle East footprint, UBS has also applied for license to operate a branch in the Qatar Financial Centre. The bank also plans to expand its Investment Banking Division (IBD) & Equity Research coverage in the region. In fact, UBS is already moving six bankers to Dubai, according to Dow Jones Financial News. The report says the shift will boost the bank’s current team of 200 staffers dedicated to the Middle East market.

Morgan Stanley and Lehman Brothers have also boosted their teams in the Middle East in the past several months.

Morgan Stanley recently announced the expansion of its asset management presence in the firm’s office in the Dubai International Financial Centre (DIFC). “Morgan Stanley opened its office in the DIFC two years ago and since then we have seen strong growth across all parts of our business,” said George Makhoul, Middle East and North Africa (MENA) President for Morgan Stanley.

Lehman Brothers also announced it is bolstering its Middle East effort with two senior-level appointments in the region. Jeremy Isaacs, Lehman’s CEO for Europe, Middle East and Asia-Pacific says, “We are witnessing strong growth across all parts of our Middle East franchise. It is critical that we have increased depth of resource to deliver the capability of the whole Firm.”

Law Firms Expand in the Gulf

Top law firms are also ramping up their practices in emerging markets, particularly the Middle East. Most recently, Hogan & Hartson announced plans to open an office in Abu Dhabi. The Abu Dhabi Executive Council recently approved the firm’s application to open a law firm office in the emirate. The new office will be Hogan & Hartson’s first office in the Middle East. The firm plans to open its new Abu Dhabi office in less than a month on August 1, 2008.

Hogan & Hartson’s current activities in the Middle East and North Africa range from private equity, investments, hotel development, oil and gas, power and water, port and other infrastructure initiatives to strategic policy advice to governments. The firm says its Abu Dhabi office will enhance its existing global capabilities in several practice areas, including: Energy, M&A, International Trade, Infrastructure, Renewable and Alternative Energy, Project Finance, International Business Transactions, Private Equity, Intellectual Property, Aerospace, Aviation, and Transportation, and Investments.

“We have been representing clients active in the Middle East for more than 25 years,” said J. Warren Gorrell, Jr., Chairman of Hogan & Hartson. “We have been increasingly focused on this region and this move further demonstrates our commitment to the Middle East practice and the clients we serve in this part of the world.”

Denton Wilde Sapte also recently added to its network of offices in the Middle East after taking on the Kuwait arm of U.S. law firm Bryan Cave, according to LegalWeek. The firm has also bolstered its corporate practice with the addition of Reed Smith Partner, Richard Hierons. Hierons cited Dentons’ presence in the Middle East as a driving factor for his move. LegalWeek quotes Dentons’ Corporate Co-Chief, Jeremy Cohen, as saying, “Hierons has a strong UK practice and good relations with investment bankers and brokers, but he has an ambition to expand his Middle East practice.”

Executive search firm, A.E. Feldman, reports demand is on the rise for alternative investment professionals who have a comprehensive understanding of the risks and benefits of the various asset classes and investment strategies.

Pensions Committed to Alternatives

The Louisiana State Employees Retirement System recently committed $60 million to the Mesirow Financial Fund V - a domestic private equity fund. The Pension also injected $50 million each to the Erasmus Louisiana Growth Fund II - a specialized co-investment vehicle run by alternative investment house Aldus Equity). And the fund has committed $50 million to the Bridgewater Associates Pure Alpha Fund - a multi-strategy hedge fund – after allocating $100 million in 2007.

Japan’s public pension fund is currently considering alternative investments, according to Reuters. The report quotes Takahiro Kawase, President of the Government Pension Investment Fund, as saying, “We may consider alternative investments based on whether our risk-return improves by expanding investments to various products, and not because we need such investments when we raise our performance target.”

Moreover, a recent survey finds that public pensions love alternatives, according to FINAlternatives. The joint study conducted by the Bear Stearns Pension, Endowment and Foundation Services Group and the Government Finance Officers Association, polled roughly 150 public pension plans. More than half, 52%, of respondents say they invest or plan to investment in alternative asset classes, including real estate, private equity, venture capital and hedge funds.

“Our survey found that public pension plans are using very sophisticated and broad investment strategies to manage their assets,” said Francie Heller, Head of the Bear Stearns Pension, Endowment and Foundation Services Group. “The results reveal that investing in alternative assets classes has grown in popularity as an increasing number of public pension plans alter their investment policies and more states pass legislation allowing alternative investments.”

Of the plans surveyed, 35%, invest directly in hedge funds with multi-strategy, equity long/short and market neutral identified as the three most preferred types of hedge fund strategies. More than half, 53%, say they invest in fund of funds.

Hedge Fund Assets Growing

Institutional investors remain strongly committed to hedge funds, despite last year’s downturn in performance, according to a separate study by Greenwich Associates and Global Custodian. Looking ahead, Greenwich Associates says 23% of U.S. institutions plan to increase their allocations to hedge funds beyond current levels by 2010. A separate KPMG survey also contends that pension funds are expected to double their allocations to hedge funds to an average of 8% from 4% within three years – despite market volatility, according to Reuters.

Mitch Feldman, President of A.E. Feldman, says hedge funds need people to manage the trillion-dollar industry. He adds that emphasis on risk management jobs is building. Continued growth of assets under management at hedge funds is also opening doors for back- and middle-office staff. Opportunities exist in hedge fund accounting and administration as well as investment operations.