Ethical conversion

Updated on: Monday, April 05, 2010

What is the changing role of finance? What are the contemporary global business challenges that finance has to contend with?
As a direct consequence of the economic downturn, many finance related functions have focused on survival. Organisations today are putting an emphasis on cash flow and cost cutting. They are also striving to ensure confidence in terms of reported and forecasted financial numbers.

Finance and accounting firms today are facing a fresh set of challenges. Firstly, they have to ensure that they are operating on sustainable business models that centre on value creation as opposed to cost cutting. They have to have an in-depth comprehension of value drivers, competitive position and risk. In line with this evolution, finance professionals need to be engaged across the organisation to help drive
shareholder value, strategy, decision-making and overall performance.

Conversion to International Financial Reporting Standards (IFRS) has to be made by 2011. Are we adequately equipped to deal with this deadline?

The adoption of IFRS compliant accounting standards in India will, among other things, allow Indian companies greater access to international capital markets. However, IFRS adoption is not without its challenges. For instance, companies that have already adopted IFRS have had to enhance their systems and processes to generate the requisite amount of information that is necessary for IFRS reporting. In addition, education and training are important for the company’s finance as well as general management staff.
But perhaps the biggest challenge today is that of educating finance professionals so that they can reconstruct the global economy while adding value to their organisations.

What is the current demand for finance professionals?
The demand for finance professionals is on the rise. The current business environment demands professionals who have ethical principles. Finance professionals who can move beyond traditional areas of transaction processing and support wealth creation are those that are going to be in demand.

The industry is looking for competencies beyond technical knowledge. In other words, business knowledge, a wide perspective, an ability to tell a story behind the numbers and strong ethical values are critically sought in today’s finance professionals.

Is there any particular area within finance in which educational institutions lack?

One of the areas that educational institutes need to critically focus on is that of ethics. There should be an ethical dimension to the syllabus if we are to rise out of the downturn and learn from our mistakes.

What is the role of BPOs and shared services in the new financial environment?
Business Process Outsourcing (BPO) is a growing phenomenon that continues to have a major impact on finance related functions worldwide. Global competition to drive shareholder value by improving margins have led companies worldwide to view BPOs as an opportunity for complete business transformation in place of mere cost reduction. In addition, an increasing number of firms are venturing into Knowledge Process Outsourcing (KPO).

Timesofindia

Ethical conversion

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