Updated: December 11, 2024
The content areas and six capitals of the integrated report offer a useful structure for holistic internal reporting and driving integrated thinking. See the Integrated Reporting Committee (IRC) of South Africa’s latest Information Paper Aligning Internal and External Integrated Reporting.
Read more: Aligning internal and external integrated reporting | Integrated Reporting SA
The rapid modernization of the CFO and finance function provides significant opportunities to accelerate the value contribution of professional accountants to business success.
In 2019, IFAC set out a vision for future-fit CFOs and finance functions in the context of significant societal and business transformations driven by digital and sustainable development. Since then, the COVID-19 pandemic has greatly accelerated digital and workplace transformation and elevated sustainability and climate action into the spotlight. Concurrently, CFOs and finance functions have had a central role in helping organizations navigate through the crisis and its operational and financial implications.
The recent period of crisis management is turning into recovery involving fundamental shifts in how work gets done and how value is created for key stakeholders (customers, employees, investors, society), the planet as well as the organization itself.
Read more: CFOs and Finance Functions – from Business Partnering to Value Partnering
In today's rapidly changing business landscape, the role of the Chief Financial Officer (CFO) has evolved beyond traditional financial management. Organizations are now expected to report on non-financial and value-centric aspects of their operations, which has led to the emergence of the Chief Value Officer (CVO).
In exploring the role of the CVO and how the role of the CFO is changing, the Association of Chartered Certified Accountants (ACCA) and BDO Global developed a report: Chief Value Officer – The Important Evolution of the CFO. We consulted nearly 100 finance leaders from across the globe, representing a variety of organizations from large corporates to start-up businesses. The report focuses on two key questions:
Read more: The evolution of CFO to CVO
The role of chief financial officer has evolved considerably over the past few years. Here is what to expect from the position today.
For many CPAs, becoming the chief financial officer of an organization remains their ultimate career goal. But today the position looks very different from the way it did even 10 years ago. Now, more than ever, the decisions made by the CFO are likely to affect the performance of the entire organization.
Read more: Have your sights set on the CFO’s office? What you need to know
Integrated thinking can bring resilience in the face of challenges like the unprecedented risks posed by the COVID-19 pandemic, social inequalities, and climate change. Rather than delegating these risks to sustainability teams, integrating thinking incorporates them into a business' core strategy.
Stathis Gould, IFAC Director of Advocacy and Yen-pei Chen, ACCA Integrated Reporting Lead, discuss integrated thinking and the role of the finance function.
This was an external research session as part of the Value Reporting Foundation Symposium 2021.
Watch on YouTube: Integrated Thinking and the Role of the Finance Function
The Value Reporting Foundation’s Integrated Thinking Principles (‘Principles’) provide a structured approach to structured approach for considering how to create the right environment within an organization, as well as for reviewing what can, at times, go wrong. They are designed to be embedded into an organization’s business model and applied across key activities overseen by the Board and managed by the senior management team. The Principles, which are are interconnected, are implemented on three levels: the first comprises questions to the Board and CEO on how widely each Principle has been adopted across the organization; the second offers the opportunity to test how deeply the Principles have been embedded into the organization; and the third consists of management tools, practices and processes to bring integrated thinking to life.
Read more: Integrated thinking - Integrated Reporting
This article is part of our Mastering Data series. This series examines the digitization underway in Canada's economy, why it's important, the data governance issues it creates, and how to address them. It also looks at the role you can play as a CPA in guiding your organization through the transition.
Read this article to learn:
Read more: What is your data worth? Insights for CPAs
A vast majority (98%) of global business executives say that it is now critical for organizations to have corporate purpose, according to a new report: Purpose Drives Profit: How Global Executives Understand Value Creation Today.
Read more: Purpose Drives Profit: How global executives understand value creation today