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HIRING CFO's and CA's

HIGHER NEW JOB STANDARDS EXIST FOR HIRING CFO's TODAY: "Valuation Accounting"

The standards and competencies for professional accountants are rising and have reached a new 'high'. With new CICA requirements on "Valuation Accounting", Financial Instrument Risk Management (FIRM), Financial Capital Management (FCM), Financial Capital Risk Management (FCRM) as well as the new IFRS's deadlines, we now need 'more better' CFO's today and into the future. Are you ready?

Recently there has been an increased shift to higher and more focused financial disclosure on publically disclosed financial statement reporting and detailed notes to financial statements. It includes a deeper shift towards "valuation accounting". It is at the time we are shifting to IFRS as the new standard for GAAP [see attachment update from IFRS Canada, The Finance Group].

Companies that are looking to hire CFO's, CA's and accounting professionals today need to be aware of accounting competencies in financial disclosure and "valuation accounting", financial risk management for financial instruments and risk management for Corporate financial capital and "cost of capital".

Financial reporting has now changed for 2008. The corner is turned on a new level of "valuation accounting". With the introduction of CICA HANDBOOK (HB) financial statement disclosure and requirements on Financial Capital Management, Financial Instrument Valuation (FIV) disclosure and related Financial Risk (Sections 1535, 3855, 3862 and 3863), many companies are now facing and encountering the new disclosure requirements on the interim quarterly financial statement filings on SEDAR. It requires time and attention for complete analysis and preparation. It also requires new qualifications for the job. 

Risk analysis is required as well as valuation principles and sensitivity analysis. This also requires clear and focused risk management principles.

CICA HB 3862 states, "an entity shall disclose the fair value of that class of assets and liabilities in a way that permits it to be compared with its carrying amount." There is an exception relating to disclosing the comparison, however a 'valuation accountant' will need to have done a not unreasonable valuation in order to do the comparison.

The CICA HB 3862 also states, in relation to FIRM,  "for each type of risk arising from financial instruments, an entity shall disclose (a) summary quantitative data about its exposure to that risk at the balance sheet date."

There are similar requirements for detail on Financial Capital Management (FCM) and a number of related issues such as the nature and extent as well as risk management processes (FCRM). Companies need to determine how they identify, monitor and control risk.

The standards and competencies for professional accountants are at a new high. With "Valuation Accounting", financial instrument and Corporate financial capital risk management as well as new IFRS's deadlines...Are you now ready?

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