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A survey commissioned by ACCA shows CFOs are taking a more active managerial role and getting more boardroom support

The findings of a survey "Crisis and Finance – The CFO's New Environment in Mainland China and Hong Kong" commissioned by ACCA show that the role of CFO has gained more importance today compared to a year ago.  Majority of the 256 finance executives surveyed in Mainland China and Hong Kong say that the CFOs are taking more active management role in risk identification and management, capital expenditure decisions, and overhead cost reduction initiatives.  The hands-on approach extends to routine transactions in credit control and cash collection matters and in tax planning.

The survey reveals differences between respondents in Mainland China and Hong Kong in their forward planning.  Majority of executives in Mainland China (53%) believe that the local economy will escape the worst of the economic crisis in contrast with 22% in Hong Kong.

The survey also shows that, in both Mainland China and Hong Kong, the finance function's approach to the crisis is to focus primarily on optimisation of cash, treasury and financial management on cost cutting.  However, more executives surveyed in the mainland (54%) say their company is focused on cash flow rather than strictly on accounting profits; just 29% in Hong Kong say the same.  Another survey finding suggests that Mainland China and Hong Kong companies in survey are moving strongly on important internal processes, like increasing the amount of internal communications, making changes to the budgeting and forecasting process.

May Law, China Director, ACCA says: "There has never been a more crucial time for accounting professionals to continue to show their true value.  In ACCA, Accountants for Business has been adopted as the global theme for 2009/10.  This theme emphasises the important roles accounting professionals play in both the private and public sectors, promoting their role as advocates of sound business practices, champions of sustainable business development and identifiers of value drivers which lead to high-performing organisations."

Dr Steve Priddy, Director of Technical Policy and Research, ACCA says: "Corporate governance, regulation, asset pricing, risk management, remuneration design are all subject to root and branch examination. What organisations need now is the firm leadership and financial discipline for the immediate short term, and the confidence of knowing they possess a business model which is sustainable. As global economic conditions continue to be uncertain, CFOs have every opportunity to emerge as leaders and to rise to the challenges ahead."

The full research report "Crisis and Finance – The CFO's New Environment in Mainland China and Hong Kong" is now published on:
 http://www.accaglobal.com/mhc/2009/events_held/hongkong/reports

A microsite on the global theme Accountants for Business will include the latest research, events and opinions on this issue:
http://www.accaglobal.com/accountants_business