Planning and Investment Requires more Long-term Focus, ACCA.
European commission has launched new European Long Term Investment Funds (ELTIFs) framework which is highly acknowledge by ACCA. Such welcoming attitude of ACCA will help the investors to start projects for the long-term purpose.
There have been proposals in the recent Green paper on long term finance insisting on the provision of non-bank finance for the businesses. Global accountancy body laid considerations on the proposals to the Green paper on term finance and supported the idea of having long-term focus in planning and investment.
John Davies, head of technical at ACCA believes that strategies must be adopted by the companies that plan to be successful in the long-term. Rules must be made to analyze the progress and outcome during the long-term strategy. In the process to do so, investors, market players and wide societies must be supportive towards the companies. Therefore European Long Term Investment Funds (ELTIFs) will help to achieve long-term goals.
The business environment must not show a rush in gathering the results/profits. Long-term focus on the outcome must be clear and should not let the short-term roles to be neglected. Consumption in the short-term must not be forgone and in that case regulatory restrains must be imposed.
After the submission of Green paper on long-term finance, EU Executive is called by ACCA so that current and potential future of equity finance should be given all attention for the better of long-term focus. Equity is the only possible way to fund today’s technology based businesses who can’t achieve finance growth by debt.
John Davies explains that the SME sector must be funded by equity which is pivotal in gathering long-term focus. Private sector is now given the hope in terms of investment that will bring fruitful results.
John Davies ha stressed on the key issue that researched conducted in UK revealed that in order to be successful in applying for finance, trained staff plays a pivotal role. Her further added that, companies will get the edge in managing short-term objectives alongside the long term results. Individual enterprises and investors can enjoy their respective time zones as concluded by John Davies.