Annual Report BKR International 2017

Contents

MessagefromtheWorldwideChair 2

MessagefromtheAmericasRegionalChair 3

MessagefromtheAsia-PacificRegionalChair 4

MessagefromtheEMEARegionalChair 5

2016IABWorldSurveyResults 6

2017MeetingSchedule 7

MemberFirmCountries 8

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MESSAGEFROMTHEWORLDWIDECHAIR

HappyNewYear!

On behalf of yourWorldwide Board, I extendmy very best wishes for a happy, safe, andprosperousnewyear!2016wasanexcitingyear forBKR. Wewere ranked thenumber sixassociationinthe InternationalAccountingBulletin,withtotalrevenuesof$1.35billion,andweacceptedthreenewfirms intomembership. Wewillcontinuetosearchforhigh-qualitymembers in the cities throughout the world where we are not currently represented andneed your help to identify entrepreneurial firms like yours to join our organization. Whenyou’retravellingorattendingconferencesoutsideofyourcity,thinkBKR!Themoremembers

wehavesharingexperiences,strategies,andbestpractices,thebetteritwillbeforallofus!

Our2016AnnualWorldwideMeetingwasheldinSouthAmerica–inChile’scapitalcityofSantiago–where,forthesixthconsecutiveyear,wepresentedtheBKRScholarshipAwardtoadeservingaccountingstudent,OscarRiquelmePalma. Our scholarship awards were also presented to students at our regional meetings, and we are proud tocontinue BKR’s goal of promoting the accounting profession as an exciting and rewarding career to the nextgeneration. We are also committed to helping develop and fund leadership trainingwithin ourmember firms toinsureasmoothtransitionofpartnerrolesandsuccession.

AsBKR’snewchair(mytwo-yeartermbeganonNovember15), Iamcommittedtocontinuingthegreatstrideswehavemade in the developingworld, particularly in China and India, andwewill now focus on areas in the EMEARegion,particularlyAfrica,inthecomingyear.Iwanttothankourmembers,especiallyourAsia-PacificChair,SunnyMa,forherhardworkinChina,aswellasallofourIndianmemberswhosponsoredworkshops,heldreceptions,andattended national conferences, all of which were instrumental in helping to expand BKR’s name recognition andpromoteourfirms’globalexpertise.(Pleasereadeachofourregionalchair’sreports,beginningonpage3).

BKR’smany committees, practice groups, and alliance partners allow us to successfully compete for cross-borderworkandserveourclientsvirtuallyanywhere intheworld. BKR International isknownforourstrongcamaraderieand willingness to share information with our fellowmembers across the globe, and it is theWorldwide Board’sprioritytofosterandstrengthenthisculture,whichhasmademembershipinBKRsodesirable.

Ihopeyouareplanningtoattendyourregionalmeetingthisyearandcannotstressenoughhowimportantit isforyourfirmtoberepresentedatthisorourWorldwideMeeting.Thisyear,ourAsia-PacificandEMEARegionswillholda jointmeeting onMay 6 - 8 in Singapore. Thiswill be followed by the Americas RegionalMeeting in Louisville,Kentucky,homeofAmerica’smostfamoushorserace,theKentuckyDerby,fromJune3-6.AllofBKR’sconferenceshaveanoutstanding line-upofspeakers,presentations,socialactivities,andnetworkingopportunitiesthatyouwillnotwanttomiss!And,thisyear’shighlightissuretobeourAnnualWorldwideMeetinginoneofthegreatestcitiesintheworld–London–fromOctober21-24!Eachmembergetsafreeregistrationtotheirregionalmeeting,aswellastheworldwidemeeting,andIlookforwardtoseeingyouatoneorboth.

Aswelookforwardtoanewyearofopportunities, IwelcomeyoursuggestionstohelpmakeBKRbetterandmoreresponsivetoyourneeds.YourWorldwideandRegionalBoardsareheretoserveyou.Weneedyourinput,aswellasyour participation, to continue tomakeBKR THEworld’s leading association for forward-thinking accountants andbusinessadvisors.

WarmestRegards,

JacquelineWolfovski,WorldChairBKRInternational

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MESSAGEFROMTHEAMERICASREGIONALCHAIRHappyNewYearfromBKR’sAmericasRegion,whichconsistsof62firms–50inNorthAmerica,threeinCentralAmerica,andnineinSouthAmerica.Wehavenineboardmembers,includingone member from Canada and one from the Dominican Republic, and a formal boardsuccession plan to assure that our region’s future leaders areworking together early on tosupportBKR’sgoals.

Last year wewelcomed one newmember firm in Chambersburg, Pennsylvania, but, due tomerger,weunfortunately lost two, one inAtlanta,Georgia, andone in Jacksonville, Florida.ConsolidationremainswidespreadintheUnitedStates,andsuccessionplanningcontinuestobeatoppriorityforpublicaccountingfirmsinourregion.

Theothersignificantchallenge facing theprofession is theshortageofqualifiedandproperly trainedstaff,andwecontinuetodevelopBKRprogramsandtrainingtoaddressthiscriticalissue.Our2016regionalconferencewasheldfrom May 21 - 24 in Toronto, where our speakers shared practical and innovative strategies on developing andinspiringmotivatedteams,aswellastechniquesforidentifying,qualifying,andkeepingthebestclients.Theexpertsbelieve,asdowe,thathavingtherightclientsgoeshand-in-handwithkeepingtherighttalent.

Inadditiontoour2016/17BKRLeadershipInstitute,theattendeesofwhichwillgraduateinMay,wealsoorganizedtwo successful training programs this year for upper level tax staff. These programs provide the same greatopportunitiesforthemtonetworkandlearnfromtheirBKRpeersaroundthecountry,justaswepartnersdo.Addedtothat,wehavetheassuranceofknowingthatourstaffwon’tberecruitedawaybylocalfirmsinourmarketareas.Wewill soonbepolling themembers toascertainwhich levels and typesof trainingare toppriorities for them in2017,andanticipatethatthiswillresultinourimplementingauditprogramsatthestafflevelaswell.

Keepingupwithtechnology isalsoahugechallenge forall firms,especiallycyber-security,aswespendmoretimeandresourcesthaneverbeforetomaintainandprotectourclients’data.BKRiscommittedtohelpingourfirmsstayonthecutting-edgeofadvancesthroughourpracticegroupsandpartnershipswithleadingexpertsinthetechnologyindustry.In2017,wewillbeexploringthebravenewworldofartificial intelligenceatourmeetings,andhowtheseemergingtechnologiescanbestbeutilizedbyourfirmsandtheirclients.We continue to survey ourmembers on a wide variety of practicemanagement statistics each year through ourMemberFirmAnalysis–oneoftheindustry’smostcomprehensivesurveysofaccountingfirmsandavailableonlytoBKR members. The Analysis covers a wide variety of management, profitability, and innovative information andbenchmarkingstatisticsthatBKRmemberscanuseto implementandimprovestrategies intheirownfirm. Resultsareanalyzedanddiscussedatourregionalmeeting.Our22practicegroupscontinuetogrow,andregularly includeoutsideconsultantsandprovideCPEcredit. Severalgroupshaveparticipation fromBKRmembersoutsideof our region. Eachpractice group is givenabudget for in-person meetings with guest speakers, quarterly conference calls, webinars, and/or to purchase brochures andmarketingmaterials. Wecontinue toengage IngenuityMarketingGroup tohelpus increasename recognition forBKR, and we’ve been published and quoted more than a dozen times throughout the year in the leading CPApublications.OutsideengagementonBKR’sTwitterpageincreased8%lastyear.

Our region’s annualmeetingwill beheld from June3 - 6, 2017, in Louisville, Kentucky, right after theUSA’smostfamous horserace, “The Kentucky Derby.” Venues are strategically chosen to be sure that we vary the locationsthroughouttheAmericasRegion. In2018,wewillbeheadingtotheDominicanRepublic. Inall locations,thehostfirm is encouraged to get its entire firm involved inmany of the sessions and events to learn about BKR and thebenefits of having peers around the world. The host firm also gets a unique opportunity to increase its namerecognitioninthelocalcommunitybyhostingaclientreceptionduringthemeeting,andalsoinworkingwithalocalcollegetoselectadeservingaccountingstudenttoreceiveBKR’sAnnualScholarshipAward.

FromallofusontheAmericasRegionalBoard,bestwishesforahappyandsuccessfulnewyear,andasmoothbusyseasonahead.And,aworldofthankstomyfellowboardmembers,thechairsofourpracticegroups,andmostofalltoyou,ourvaluedmembers.Withoutyourcommitmentandsupport,wewouldnotbethesuccessfulorganizationwearetoday.

DavidGoldner,ChairBKRAmericasRegionalBoard

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MESSAGEFROMTHEASIA-PACIFICREGIONALCHAIR

2016wasanother successful year for theAsia-PacificRegion. We recruitedanewmemberfirm, Power Tynan, in Toowoomba, Queensland, Australia, held a successful regionalconference inPerth,expandedbenefits toourmembers,andappointedour future regionalexecutivedirector.

OurmemberfirmsinIndiaandChinacontinuetolookforadditionalmembers,andweplantoincreaseourmembershipinIndiabyanotherthreefirms,andtwoinChina.

TheAsia-PacificRegionnowhas33memberfirmswith53officesin15countries.

FollowingthesuccessfulvisittotheUniversityofTechnologyofYogyakarta(UTY),Indonesia,in2014and2015,GrantAllsopp(Sydney),HowardRosen(formerWorldwideChairman)(Phoenix),andAsia-PacificRegionExecutiveDirectorStephenRoger(Sydney),wereinvitedbacktospeakinMayof2016.ThesemeetingswereallarrangedbyDoliSiregar,managingpartneratDoli,Bambang, Sulistyanto,Dadang&Ali,ourmember firm in Jakarta, andwereattendedbymorethan140studentsandteachers.GrantpresentedanupdateonIFRSandtheIAS,andHowardandStephengavea presentation on “Enhancing Your Future Accounting Career through International Networking.” Our Asia-Pacificwebsite–www.bkrasiapac.com–hassomephotosofourvisit.

OurregionalconferencewasheldinPerth,WesternAustralia,fromMay6-9.Morethan150regionalmembersandguests attended, in addition tomembers of theWorldwide Board. Themeetingwas held in conjunctionwith theWalkerWaylandAustralasiaNetwork,composedoffirmsinAustraliaandNewZealand. Iwould liketothankallofthespeakersfortheirinformativepresentations,andspecialthanksgoouttoourPerthandBunburymemberfirmsthatassistedincoordinatingtheconferenceandsocialevents.

In July,wewere informedbyRamchand Jagtiani (Singapore), chair of theAsia-Pacific TaxCommittee and anAsia-PacificRegionalBoardmember, thathewasresigning fromhis firm. Fortunately,ScottArnold (Sydney)andShaneBrowning (Wellington) agreed to co-chair the committee, and Carine Tan (Kuala Lumpur) will replace him on theboard.IwouldliketothankRamchandforallhiseffortsandalsotowelcomeCarine.

Withthesupportofallmembersintheregion,thecommitteecontributesarticlestothewebsiteandthequarterlyE-Update,andprovidesrelevantinformationformembersonvarioustaxmatters.Weplantoincreasethisactivityandthecommittee’svisibility to themembers in2017. JasonCroston (Brisbane), chairmanof theAsia-PacificRegionalStandardsCommittee,continuestokeepmembersup-to-dateonaccountingandauditissues.

TheAsia-PacificRegionalBoardrecentlydevelopeda two-yearmarketingplan,whichwill includearelaunchof theAsia-Pacific website, and we encourage you to submit articles about your firm, marketing initiatives beingundertaken,ordetailsofnewlegislationandmajortaxchanges.

Our2017jointAsia-PacificandEMEARegionalConferencewillbeheldattheMandarinOrchardHotelinSingaporeonMay 6 - 8. Theprogramwill include interesting and informative technical and general presentations,with a socialagendatoincludemanyfamoussightsinSingapore.OurgaladinneronSaturdaynightwillbeheldattheculturallysignificantCliffordPier.Welookforwardtowelcomingmembersfromaroundtheworld,andencourageyoutotaketheopportunitywhileyouaretheretovisitothercitiesandsurroundingcountriesinourregion.

In2012,StephenRogeradvisedtheWorldwideBoardofhisdecisiontostepdownasourregion’sexecutivedirectorwithin fiveyears’ timeandhashelpedus inoursearch to findhis replacement. WearepleasedtoannouncethatGrantAllsopp,apartnerinStephen’sfirmandsomeonewell-knowntothemembersinourregion,agreedtoassumetheroleofexecutivedirector.StephenandGranthavebeenworkingtogethertoundertakeasmoothtransitionasofJanuary1.

OnbehalfoftheAsia-PacificRegionalBoardandallmembersinourregion,IwouldliketothankStephenRogerforhistirelesseffortsasourexecutivedirector.Stephen’sinvolvementwithBKRdatesbacktoitsfounding,andhehasbeenadrivingforceinbuildingtheassociationnotonlyintheAsia-PacificRegion,butalsoglobally.Stephenleavesbehindalegacyforwhichheshouldbejustlyproudandwhichwewillnurtureinthefuture.

Iwouldliketotakethisopportunitytothankallmembersofmyboard,ourcommittees,andtheExecutiveOfficefortheirsupportandassistanceduringtheyear.Iwishallmembersandtheirfamiliesasafeandhappyholidayseason,andasuccessful2017.

SunnyMa,Chair BKRAsia-PacificRegionalBoard

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MESSAGEFROMTHEEMEAREGIONALCHAIR

In2016,webuiltuponourexperiencefromlastyear,withmorewebinarsandthesecondpartofourFutureLeadersprogram.AttheendofJune,IbecamechairoftheEMEARegion.MythankstoNileshShah(London),mypredecessor,forallhiseffortswhilstchair.

TheEMEARegionalMeetingtookplaceinViennainJunewithsomememorablemusicaleventsinboththeprofessionalandsocialprograms.AttheendofNovember,theannualEMEARegionTaxMeetingtookplaceinAmsterdam,thisyearattracting35delegates.Followingonfromthis,theregionhelditsfirstalumnieventforourFutureLeadersprogram,withanothermeetingheldinAmsterdam. This attracted 17 members who had already attended last year’s initial Future

Leadersevent.Afteranopportunitytorenewacquaintancesatadinner,thedaystartedwitheachdelegatereviewingtheirdevelopmentoverthepastyear,beforeanotherintensiveprogrambytheUpwardSpiralPartnership.Thiswasfinishedwiththechancetoquizfourregionalboardmembersontheirexperiencewithpartnership.

Subregionaleventshavecontinued. IntheMiddleEasternregion,delegatesagainmet inDubaiwithmemberfirmsfromJordan,Lebanon,Iraq,SaudiArabia,andtheUAEattending.ThiswasfollowedbythesubregionalmeetingforSouthernAfrica,which took place in Johannesburg,with 19 delegates fromourmembers in SouthAfrica,Nigeria,Cameroon,andMauritius.Also,thenewlyrenamedBritain,Ireland,andChannelIslands(BIC)GroupheldameetinginLondoninMarch.

This year has seen an increase in the use of webinars both in the Future Leaders program and as part of ourMarketing offering. Last year’s alumni from Future Leaders held two webinars, “Passport to Partnership” and“Postcards from Partnership,” which allowed attendees to develop their skills through the year. Our marketingconsultants, Julia FawcettMarketing Limited, ran two webinars, the first on LinkedIn and the second on keepingmembers’websitesup-to-date.

EMEAwebsiteusagehasbeenregularlyreviewed.Asaresultofthefeedbackfromthisprocess,thereisnowamajorupgrade to thewebsiteunderway. Thiswillmake itmoremobile friendly andwill enhance themembers’ area, soinformationisdisplayedmoreeffectively.Socialmediausagehasincreased,andthenewscontenthasdoubledovertheyear.BothourEMEAE-UpdateandTaxNewslettercontinuetobeproducedonaquarterlybasis,and“hung”onthewebsite.OurmarketingconsultantshaveundertakenanauditofmemberwebsitesandtheirpromotionofBKR,aswellastheirnewsandsocialmediapostings.Theyhavealsoofferedallmembersanindividual“healthcheck”oftheirwebsites.Somesevenmemberfirmshavetakenadvantageofthiscomplementaryservice.

Lookingaheadto2017,weareplanningtocontinueourefforttostrengthenBKR’spresenceintheregions, lookingfor newmembers mainly in East Europe and East Africa, as well as to offer marketing expertise to members bycontinuing our webinars and offering further “health checks” for any interested members. The Future Leadersprogramwillcontinuewithanewgroupofpotential leadersandcontinuedassistancetoourexistingalumni.IfanymembershavesuggestionsonimprovingtheserviceBKREMEARegionprovides,wewouldwelcomethem.

The2017EMEARegionalMeetingisajointeffortwiththeAsia-PacificRegionandwilltakeplaceinSingaporeinMay.Itpromisestobeanexcitingvenue,andtheagenda,bothsociallyandprofessionally,looksstimulating.

Iwouldliketotakethischancetowishyouandyourfamiliestheverybestfor2017.

ArcangeloAgogliati,ChairBKREMEARegionalBoard

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2016IABWORLDSURVEYRESULTS

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2017MEETINGSCHEDULEMay5-8 JOINT ASIA-PACIFIC/EMEAREGIONALMEETING MandarinOrchardHotel Singapore,Singapore

June3-6 AMERICASREGIONALMEETING TheBrownHotel Louisville,Kentucky,USA

October21-24 ANNUAL WORLDWIDE MEETING InterContinentalLondonParkLane London,UnitedKingdom

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MEMBERFIRMCOUNTRIES

Albania

Angola

Argentina

Australia

Austria

Azerbaijan

Belgium

Brazil

Bulgaria

Cameroon

Canada

ChannelIslands

Chile

China

Colombia

Cyprus

Denmark

DominicanRepublic

Ecuador

Egypt

France

FYRMacedonia

Germany

Greece

Guatemala

Honduras

Hungary

India

Indonesia

Iraq

Ireland

Israel

Italy

Japan

Jordan

Korea

Kuwait

Lebanon

Liechtenstein

Luxembourg

Malaysia

Malta

Mauritius

Mexico

Montenegro

Morocco

Nepal

Netherlands

NewZealand

Nigeria

Norway

Pakistan

Palestine

Panama

Peru

Philippines

Portugal

PuertoRico

Romania

Russia

SaudiArabia

Serbia

Singapore

SouthAfrica

Spain

Sweden

Switzerland

Taiwan

Togo

Turkey

Ukraine

UnitedArabEmirates

UnitedKingdom

UnitedStatesofAmerica

Uruguay

Uzbekistan

Venezuela

Vietnam