New Guidance for Accountants in Business
Kathy Williams. Strategic Finance. Montvale: Jul 2008. Vol. 90, Iss. 1; pg. 21, 2 pgs
Abstract (Summary)
The Professional Accountants in Business (PAIB) Committee of the International Federation of Accountants (IFAC) has issued three new publications designed to help management accounting and finance professionals in their quest to drive business performance and deliver added value to their companies. They are The Crucial Roles of Professional Accountants in Business in Mid-Sized Enterprises, Preface to IFAC's International Good Practice Guidance, and Project Appraisal Using Discounted Cash Flow. The Crucial Roles booklet features interviews with 10 senior-level professional accountants in business about their experiences in mid-sized enterprises around the world. The Project Appraisal booklet is part of the International Good Practice Guidance on financial and management accounting topics.
The Professional Accountants in Business (PAIB) Committee of the International Federation of Accountants (IFAC) has issued three new publications designed to help management accounting and finance professionals in their quest to drive business performance and deliver added value to their companies. They are The Crucial Roles of Professional Accountants in Business in Mid- Sized Enterprises, Preface to IFAC's International Good Practice Guidance, and Project Appraisal Using Discounted Cash Flow. You can download them from the IFAC online bookstore at www.ifac.org/store. Click on Professional Accountants in Business on the left-hand side of the page.
The Crucial Roles booklet features interviews with 10 senior-level professional accountants in business (one of whom is IMA Chair Emeritus John B. Pollara, CMA) about their experiences in mid-sized enterprises around the world. Each interview covers topics such as how the challenges of typical mid-sized enterprises affect their work as CFO, controller, advisor, or other job responsibility and how they apply their skills and expertise to identify and address these challenges. The articles also highlight practices that other management accounting and finance professionals would find helpful, and each interview ends with key lessons the interviewees want to convey.
Two key points to take away about these and other professional accountants in business, IFAC says, is that, first, they are "enablers" of their company's performance. "They provide crucial contributions to streamlining business plans, installing and improving management information systems, implementing process improvements, mitigating risks, strengthening relations with banks and investors, and attracting capital and other activities that enable the current and future success of their companies." Second, they operate as "generalists" in their companies. They specialize in finance and management accounting activities, but they also serve as an integral part of the management team and fulfill a wide range of responsibilities beyond finance.
The Preface to International Good Practice presents the scope, purpose, and due process of the PAIB Committee's new International Good Practice Guidance project that covers management accounting, financial management, and broader topics in which financial professionals are likely to engage at their companies. IFAC says its "prime purpose in issuing guidance in these areas is to foster a common and consistent approach to those aspects of the work of professional accountants in business that aren't already covered by international standards."
The Project Appraisal booklet is part of the International Good Practice Guidance on financial and management accounting topics. It explains discounted cash flow and encourages professional accountants in business to promote the use of DCF analysis and net present value (NPV) to evaluate investments. It also gives a general overview of why the topic is important, offers key principles that are widely accepted features of good practice, and contains application guidance.
The Professional Accountants in Business (PAIB) Committee of the International Federation of Accountants (IFAC) has issued three new publications designed to help management accounting and finance professionals in their quest to drive business performance and deliver added value to their companies. They are The Crucial Roles of Professional Accountants in Business in Mid-Sized Enterprises, Preface to IFAC's International Good Practice Guidance, and Project Appraisal Using Discounted Cash Flow. The Crucial Roles booklet features interviews with 10 senior-level professional accountants in business about their experiences in mid-sized enterprises around the world. The Project Appraisal booklet is part of the International Good Practice Guidance on financial and management accounting topics.
The Professional Accountants in Business (PAIB) Committee of the International Federation of Accountants (IFAC) has issued three new publications designed to help management accounting and finance professionals in their quest to drive business performance and deliver added value to their companies. They are The Crucial Roles of Professional Accountants in Business in Mid- Sized Enterprises, Preface to IFAC's International Good Practice Guidance, and Project Appraisal Using Discounted Cash Flow. You can download them from the IFAC online bookstore at www.ifac.org/store. Click on Professional Accountants in Business on the left-hand side of the page.
The Crucial Roles booklet features interviews with 10 senior-level professional accountants in business (one of whom is IMA Chair Emeritus John B. Pollara, CMA) about their experiences in mid-sized enterprises around the world. Each interview covers topics such as how the challenges of typical mid-sized enterprises affect their work as CFO, controller, advisor, or other job responsibility and how they apply their skills and expertise to identify and address these challenges. The articles also highlight practices that other management accounting and finance professionals would find helpful, and each interview ends with key lessons the interviewees want to convey.
Two key points to take away about these and other professional accountants in business, IFAC says, is that, first, they are "enablers" of their company's performance. "They provide crucial contributions to streamlining business plans, installing and improving management information systems, implementing process improvements, mitigating risks, strengthening relations with banks and investors, and attracting capital and other activities that enable the current and future success of their companies." Second, they operate as "generalists" in their companies. They specialize in finance and management accounting activities, but they also serve as an integral part of the management team and fulfill a wide range of responsibilities beyond finance.
The Preface to International Good Practice presents the scope, purpose, and due process of the PAIB Committee's new International Good Practice Guidance project that covers management accounting, financial management, and broader topics in which financial professionals are likely to engage at their companies. IFAC says its "prime purpose in issuing guidance in these areas is to foster a common and consistent approach to those aspects of the work of professional accountants in business that aren't already covered by international standards."
The Project Appraisal booklet is part of the International Good Practice Guidance on financial and management accounting topics. It explains discounted cash flow and encourages professional accountants in business to promote the use of DCF analysis and net present value (NPV) to evaluate investments. It also gives a general overview of why the topic is important, offers key principles that are widely accepted features of good practice, and contains application guidance.
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