IFAC has Highlighted Guiding Principles for CFOs

The International Federation of Accountants (IFAC) recently released a report that highlights the principles that professional accountant should follow to be prepared for leadership role in the finance. The report has highlighted the following five guiding principles:

i. Bring professional qualities to the organization and to the role

ii. Be a navigator and integrator for the organization

iii. Balance responsibilities of stewardship with the business partnership

iv. Be an effective leader of the accounting and finance function

v. Be a key member of senior management and organizational leader

The chairman of IFAC Professional Accountants in Business (PAIB) Committee, Roger Tabor, said that "In these tough economic times, the objectivity and values of the professional accountant can be of enormous value to finance leadership positions in organizations in every economic sector. But professional accountants in finance leadership roles aren't universal and, in some parts of the world, their numbers are declining. So it is more important than ever for the profession to develop outstanding professionals who are well-equipped to work in business and government, and to take on finance leadership roles."

The report is intended to raise awareness of the implications of training, education, and development of professional accountants. It is expected that the report will create collaboration among employers, accountancy organizations and other stakeholders prepare professional accountants for leadership in finance.

IFAC believes that professional accountancy organizations can prepare accountants for leadership by:

- Supporting and promoting qualifications designed particularly for professional accountants

- Providing training opportunities and development courses to the professional accountants

- Establishing governance structure that helps to identify and provide suitable support

The accountancy organizations should work closely with the employers. This will help in understanding the needs and requirements of the employers and help these organizations to prepared business ready accountants. The training and education of accountants should not be limited to the accountancy studies. They should also incorporate the managerial skills and capabilities.