A survey
comprising of 40 CFO s of India and 50 % financial controllers of large
organizations were asked if they were prepared to handle the storm of corporate
reporting.
Why The Expectations From The
Corporate Reporting Have Increased?
The units of
Indian companies doing the business have increased by 28 percent and the number
of products and services Financial Control sold by the Indian companies has increased by 20
percent. The challenge of effective reporting is being faced by these companies.
In fact, further bigger challenge is to make an effective operating model for
financial reporting.
43 %
companies feel that the standards of the reporting are not satisfactory and 40%
companies feel that the changes in the reporting systems are required.
Due to the
standards of reporting not being appropriate, it is necessary to make the
necessary changes in the reporting system. A storm has been created in the
reporting system of the corporates. This has happened because of the regulatory
developments and the notifications that include the amendments in the companies
act and introduction of the Indian accounting standards.
Corporate
reporting has been given a lot of importance by the Indian stakeholders.33 percent Formation of A New Company of the audit committees have enormously increased their attention to the
overall reporting. The reporting system of the financial regulators has become
better by 28 percent, the investors’ reporting system has improved by 33% and
the reporting system of analysts has improved by 28%.
The major
drivers for improving the reporting system in India include greater
transparency-38%, improving control and compliance-35%, meeting new reporting
regulations-35% and meeting the demands of thee investor community-35%.
The three
major areas to be kept in mind for appropriate reporting include understanding
the insights Control Risk Assessment by building relationships with the audit committees, proper
governance and utilizing analytical and technical capabilities for meeting the
increased demands. This broadens the skill set of the entire team.
Analysis Of The Improvements In The Financial Reporting
1. The major technological barriers are
the quality of data received, the lack of integration and the dates of the
architecture of the IT.
a. The
topmost challenge being identified by the Indian respondents is that the data
received is not consistent for organizing the proper reporting.
b. The priority for the reporting should
be building board relationships .However, the priority of the Indian
respondents is on certain other factors and these factors include acquiring big
data and analytics, upgrading the persisting infrastructure of the IT and
integrating the reporting system as per the strategy of the business.
c. The investment in the reporting
technologies does increase. This reflects that there are issues pertaining not
only to the quality of the data received but also the consistency of the data
received.
d. The reporting systems in India concentrate only on the
centralization with certain local activities. In the future 63 percent people
would expect control in the reporting system being reported from the head
office. This reporting should reflect significant responsibilities and should
do a comparative study of the global as well as the local market.
2. Analytics is highly used in reporting
to the CEO as well as the management team. The skills most needed Limited Company Registration for improving
the reporting system include risk management, regulatory knowledge and
technical accounting.
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