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The Role of IFRS in Simplifying Cross-Border Financial Reporting In todays interconnected world, businesses are no longer confined by borders. This is where International Financial Reporting Standards (IFRS) come into play. But what does it really mean to be IFRS-compliant? What is IFRS Compliance? Why is it important?
Taking an assured dry loss or preferring an investment with relative positive returns and limited volatility is a real strategic choice to consider. It is not simple or neutral and difficult to sell to an Audit Committee or CFO. Some have already invested in long-term. Isn't it time to completely revisit your investment policy?
Global ESG Regulatory Requirements One of the major ESG compliance developments to watch is the US Securities and Exchange Commission (SEC) proposed regulation on Climate-Related Disclosures and ESG Investing. IFRS S1 requires companies to communicate the sustainability risks and opportunities they face over the short, medium, and long term.
AI driven automation is expected to extend to more complex tasks such as, audits, risk management, and financial planning and analysis. As AI permeates finance, questions about its compliance with audits and financial governance will arise. For instance, could financial statements generated by ChatGPT withstand audit scrutiny?
Before joining Komatsu, he was a Senior Manager at KPMG in South Africa and he was responsible for several large audit clients. That has been a recurring theme in many of my discussions with CFOs, many accountants move from the auditing side to the commercial world, mostly shortly after they’ve completed their articles.
These include the Companies Act, the Tax Administration Act, the Financial Sector Regulation Act, and the International Financial Reporting Standards (IFRS), among others. These statements must be audited or independently reviewed, depending on the company’s public interest score.
Our financial statements reflect a glaring underrepresentation of intangible assets, which signals two worrying possibilities: either we aren’t investing enough in IP, or we’re investing in it but not accounting for it properly. In turn, this discourages investment in innovation, creating a self-fulfilling prophecy of stagnation.
While these reports represented an important element for communicating a company's corporate-citizenship vision and were also positive public relations initiatives, for the most part they did not contain a lot of hard, auditable data. In the area of climate change, this is often referred to as "carbon accounting".
These new requirements have made nonfinancial disclosures a part of business and the long-term investment thesis. Demonstrating stakeholder accountability can be achieved by producing an audited ESG report outlining risks, opportunities, and performance against goals. Clearly, CFOs and the finance function have a big role to play here.
Pension Funds Act: Regulates the management of pension funds in South Africa, ensuring that funds are properly administered and that contributions are invested prudently. Complex Reporting Standards: Adhering to both International Financial Reporting Standards (IFRS) and local regulations can complicate financial reporting.
He adds that the accelerating implementation is fuelled not only by stakeholder expectations to make a positive impact on the environment but also through financing mechanisms to drive change such as sustainable investing and financing. This will improve consistency and comparability amongst organisations.
As they assist in compliance audits and the monitoring of internal controls to ensure that everyone within the company does their job correctly, they are also expected to thrive and flourish amid the challenges along the way for the benefit of the organisation. “A
CFOs should invest in systems that can grow with the business and adapt to new reporting requirements. Regular Updates and System Audits Technology changes fast and staying up-to-date is crucial for maintaining system security and efficiency. Regularly audit and update your IT systems to ensure they remain effective and secure.
AI driven automation is expected to extend to more complex tasks such as, audits, risk management, and financial planning and analysis. As AI permeates finance, questions about its compliance with audits and financial governance will arise. For instance, could financial statements generated by ChatGPT withstand audit scrutiny?
Are you wondering how best to make the business case to your company for investing in a cloud-based planning or reporting solution? Not being compliant with US GAAP or IFRS. Lack of controls and audit trails. Time-consuming and costly audit process. Improve audit trails, reduce audit costs. Lack of security.
GAAP or International Financial Reporting Standards (IFRS). Under the equity method of consolidation in the financial consolidation process, the parent company reports the investment in the subsidiary on the balance sheet as an asset that is equal to the purchase price. Reporting results to internal and external stakeholders.
According to KPMG, 65% of international dealmakers believe ESG is a key consideration when making investments and in merger and acquisition decisions, 1 and EY reports that 99% of investors use ESG disclosures as a part of their investment decision-making.
CFOs will be expected to provide a robust ESG audit trail to boost investor confidence in the near future, including underlying assumptions, models, and a paper trail of the internal controls underpinning the information provided. Invest in ESG training, including obtaining a specialised ESG License.
The net effect is that investors feel more confused now, when investing in companies, than ever before, even though the push towards more disclosures has ostensibly been for their benefit. As we look at the explosion of disclosures around the world, there are many obvious culprits.
South Africa’s lag in investing in intangible assets compared to advanced economies. Challenges with Intangible Asset Investments: Limited investment in intellectual property, data, and patents in South Africa. The importance of a thriving tech sector, with data-driven businesses and investments in disruptive technologies.
Compliance: Adherence to accounting standards and regulations, such as Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS). Audit Trail: A record of changes made to financial data and reports, ensuring transparency and accountability.
Today’s podcast is sponsored by Draftworx, which provides automated drafting and working paper financial software to more than 8000 accounting and auditing firms and corporations. I went down the investment road, accounting was my major, so I definitely wanted accounting until final year.
Today’s podcast is sponsored by Draftworx, which provides automated drafting and working paper financial software to more than 8000 accounting and auditing firms and corporations. The stakes are very high because you can lose your funding and investments and that means losses of jobs, losses of expansion of new branches or factories.
Key features — The top features each platform is known for or has invested in. Since Workday acquired Adaptive Planning, they’ve invested a lot in making the two systems work well together. Automated reporting also enforces compliance with GAAP and IFRS standards. Some clients have reported implementations of over a year.
It’s clear that African CFOs are highly focused on education and development, perhaps because there’s so much investment and growth happening in Africa. As CFO of the Public Service Pension Fund, he plays a crucial role in managing pensions for thousands of public servants and making key investment decisions.
Here's a brief overview of the key challenges telcos need to manage: Building Out Infrastructure: Cost and Complexity: Constructing and maintaining telecom infrastructure, including fiber optics, towers, and 5G/6G networks, requires significant capital investment and expertise. to other providers, as well as leasing infrastructure from them.
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