Abstract This paper covers the complexity of being a modern chief financial officer in a large company. The paper takes a look at what governs the CFO in business today and examines whether or not the writer would want to be a CFO.
From the Paper "After looking through the article "The CFO's Great Balancing act" I would have to express the opinion that it would a lot more difficult to be a CFO in today's market. Many factors play a role in a company's financial position. Today the amount of pressure placed on generating a profit has really escalated. It appears at no time would a CFO be able to predict exactly what's expected of them since the market keeps generating new desires. In this paper, we will cover some of the difficulties placed on the modern CFO and analyze some possible hurdles they might have to overcome to meet the CEO's demands and look at what laws or Acts that have been put in place to help govern their responsibilities."
Abstract The paper explains the educational requirements and experience that are valued by those selecting chief financial officers (CFOs). The paper discusses the greater need for leadership and soft skills that include communication skills and personal integrity. The paper notes the importance of building relationships with the CEO or the CEO's bosses on the board of directors. The paper concludes that while there is no one clear path to becoming a CFO, executive recruiters, CFOs and other executives all seem to agree that these skills, traits and experiences form the core of today's CFO. The paper provides an annotated bibliography.
From the Paper "The role of the Chief Financial Officer (CFO) has been increasing in prominence over the past decade. Accounting scandals such as those at Enron and WorldCom, or the recent failures in the banking industry, have illustrated that failure to manage the accounting, risk controls and compliance of a company can lead to the downfall of CEOs or even of the firm itself. The passage of the Sarbanes-Oxley Act has also contributed to the rise of the CFO, by placing more emphasis on the control and reporting function. With this rise in importance, the role of the CFO has been expanded, sometimes to the point where the CFO begins to supplant the Chief Operating Officer. The increase in responsibility is reflected in the need for additional skills, education, personality traits and experience. "CFOs are more involved in discussions that don't involve their typical bean-counter role -- discussions like build versus buy, offshore operations, and political impacts ." The result is a new breed of CFO, one that takes on direct responsibility."
Abstract This paper takes a look at the growing trend to promote the company CFO to the position of CEO. Over the past 18 months an increasing number of company boards have decided that this transition would best serve their shareholders. Traditionally, however, there were few CFOs who were aiming for the top job and even fewer shareholders who would consider appointing them.
From the Paper "There are many reasons for which companies could appoint former CFOs as chief executive officers. Their financial expertise and market approach, their prudent manner to take on new challenges and the well supported arguments of their investment decisions are definite advantages. There are two qualities required from someone reaching the position of CFO: a comprehensive knowledge of finance and internal controls and an understanding of the operational and commercial aspects of business. These attributes are also demanded for CEOs.
The strong financial background is an important quality. Nick McCall, chair of the London chapter of The Financial Executives Networking Group (Feng), cited in one article published in Corporate Finance, April 2005, explains that: "Business is becoming increasingly complex - and deal making highly technical - [so] CEOs need to have a sound financial background."
An analysis of the duties of the chief financial officer (CFO) for the American Heart Association (AHA) and suggestions for improvements of the organization.
Abstract This paper examines the major duties of the chief financial officer (CFO) for the American Heart Association (AHA). It looks at the background of the organization and highlights the strategic elements of the CFO's position. The paper also examines the duties and functions within a non-profit organization that are not being addressed by the AHA and thereby presents suggestions for improvement.
Table of Contents:
Introduction
History of the American Heart Association
Mission/Vision of the American Heart Association
Brief Description of Products and Services
The CFO of the American Heart Association: Job Description
Core Functions of the CFO Financial Reporting: CFO at the American Heart Association
Strategic Planning: Reinventing the CFO at the American Heart Association
Budgeting, Forecasting, and Performance Measurement
Fraud Management
Fundraising
Conclusion: Suggestions for Improvement
From the Paper "In conclusion as stated by Hope, CFOs can transform their roles and for organizations like AHA, it adds greater value (Hope, 2006, page 104). The AHA CFO needs to embrace being a freedom fighter, analyst and adviser, architect of adaptive management, warrior against waste, master of measurement, regulator of risk, and more importantly a champion for change (Hope, 2006, page 3). Nevertheless, there has to be balance for these activities, since the CFO has to focus on activities that increase the marginal value in research and upholds the mission of AHA."
Abstract The paper discusses how each link in an organization must support and create sustainable practices within a business The paper details the responsibility of each individual and department, including the roles of the chief executive officer (CEO), the chief financial officer (CFO), human resource managers, product engineers, procurement specialists, warehouse employees, customer service agents and salespersons.
From the Paper "The standards and practices associated with sustainability require the development of a structure within an organization that supports sustainable practices. An organization has yet to be developed which does not employ many individuals to create and support its goals. For this reason it is essential that many if not all participants in an organization, no matter its purpose create systems and support functions that maintain the standard of sustainability. Each individual participant, no matter the level of employment has significant impact upon the decisions and standards used to create a greener business and therefore a better world. Each individual within the chain of command, development, procurement, production and support must independently and collaboratively support a standard of greener business practices in order for a business to maintain such standards and practices."
Abstract Using the case of Enron as a backdrop, this paper asks and answers several questions relating to the prosecution of management in corporate crime. The questions involve which laws are broken in the current cases at issue; whether prosecution should include accounting firms and the CFO, how much authority managers have in accounting activities, whether managers should be prosecuted if they had no role in the crime, whether prosecution is becoming a deterrent,and whether corporations are exempt from criminal prosecution?
From the Paper "Recently, a number of headline-grabbing cases, such as the accounting fraud that existed at the Enron Corporation, have highlighted the role of management at various corporations and in the financial industry, in the commission of corporate crime. The role of accountants and the major corporate accounting firms, as well as the chief financial advisors of corporations and the management personnel whom may or may not be aware of illegal accounting activities, are now under strict scrutiny by the SEC."
Abstract This paper discusses the organizational roles of chief financial officers (CFO), comptrollers, treasurers, reimbursement directors and internal auditors within a health care setting. It discusses whether or not all of these positions are necessary in today's health care setting and why it is necessary to have multiple positions in a health care organization.
From the Paper "Kirkegaard (1997) proposes that the concept of liquidity is extremely familiar in the theory of accounting and financing. It is defined as having a direct relationship with the action of "paying." Enterprises or individuals are said to be liquid at a moment or within a period when they are able to pay their due debts now or within the period concerned. Payment can be made either in cash or by using references to cash. The daily language of accounting contains expressions such as "liquid capital" or simply "liquidity," terms that simply refer to means of payment that are easily accessible. In practice, "liquid capital" and "liquidity" can have three and only three forms. The ability to pay can be demonstrated by the presence of means of payment in the form of: cash holdings, deposits in bank accounts of various kinds, and prearranged rights to draw on credits of various kinds."
Abstract This paper examines the history and growth of Tyco, which was founded in 1960 by Arthur J. Rosenberg as a small research laboratory that did testing for the government. The paper specifically discusses Tyco's acquisitions and expansions, followed by the conviction of the CEO and CFO of the company in 2005. In addition, the paper discusses how the scandal that occurred at Tyco International demonstrates the importance of business ethics and proves that stronger internal and government controls may be essential to corporate honesty.
From the Paper "In the case of Tyco International, we have seen what corporate greed can eventually lead to. After this scandal as well other scandals such as the Enron and WorldCom scandals, many citizens lost trust in corporations. In order to reestablish trust and prevent future executives from acting dishonest, the Sarbanes-Oxley Act was passed, and more internal control are now being implemented. In the future, if an executive is confident enough to try and bypass the regulations and steal money from an organization, he will face even more serious charges. Corporate executives such as CEO's of major corporations are among the most elite members of American society. They are extremely well paid, they have excellent benefits, and they are in the position to bring wealth to their families. Given the amount of money they are already receiving, many would find it ridiculous that a corporate executive would even consider stealing money. It is important to understand, however, that people with so much pride and ambition often have no limits, and to them, nothing is ever enough. Their greed often gets in the way of their honesty and loyalty to the people around them, resulting in scandals like the one described and demonstrating the need for ethics in business and more acts of government intervention."
Abstract The results of a firm analysis on Office Depot are presented in this case analysis for fiscal year 1999. The results are presented within the contexts of (1) industry participation, (2) income statement and balance sheet analyses, (3) cash flow analysis, (4) profitability and efficiency analyses, (5) short-term liquidity analysis, (6) long-term liquidity analysis and (7) projections for the future.
From the Paper "The optimistic annual sales projection for the company for 2003 is $15.2 billion. Based on common shares outstanding at year-end 1998, projected sales per share would be $60.89. The pessimistic annual sales projection for the company for 2003 is $13.2 billion. Based on common shares outstanding at year-end 1998, projected sales per share would be $53.10. The optimistic estimate of the net profit margin for fiscal 1999 is 2.9 percent, while the pessimistic net profit margin is 2.5 percent. The optimistic project of EPS for 2003 is $1.77, while the pessimistic projection of EPS for 2003 is $1.32."
Abstract This paper examines how the organizational culture and management style at Enron contributed to this culture of silence that both silenced critics and forced employees to go along with management's questionable decisions. It focuses particularly on the organizational style of Jeffrey K. Skilling, whose tenure as Enron's Chief Operating Officer is largely credited with sowing the seeds of Enron's destruction.
From the Paper "Skilling's micro-management style and rank and yank policies resulted in an intense competition among Enron executives. Robert J. Hermann, Enron's former tax counsel, described the culture of Schilling's Enron as "me first, I want to get paid...There were always people wanting to do deals that didn't make sense in order to get a bonus" (cited in Behr and Witt, "Visionary's Dream Led to Risky Business"). Whenever possible, Schilling reportedly used such financial incentives to shore up his "loose-tight" management style."
Abstract This analysis identifies several expected changes in the field of accounting. These include that the reporting of financial information will become more strictly regulated; that the reporting of financial information will involve international regulations and standards; that accounting departments will have an international aspect to their operations; that information technology will impact on the role of the accounting department; that the accounting department will provide more diverse information; and that the skills and functions required of accountants will increase.
From the Paper "Accounting has always been related to measuring the activities of the business and reporting those activities in suitable ways. Financial statements are created not only to tell the business how it is functioning, but also to pass that information on to shareholders and other interested third parties. This is the task of disclosing financial information and it is a crucial one. One source notes that the primary goal of financial accounting is to provide information to external users of accounting information. Most major organizations are supported by shareholders."
Abstract This paper explains that the provisions contained within the CLERP 9 are applicable to financial periods or year that commenced on or after the first day of July 2004. The author points out that key requirements are (1) disclosure of director's and executives remuneration packages, (2) review of operations as well as a review of condition, (3) a written declaration to the board made by the CEO and CFO stating that the company is in accordance in terms of accounting standards, and (4) a listing of non-audit services, their costs and explanation of why audit independence is not compromised. The paper stresses that cartels have been outlawed by subsection 45(2) of the Trade Practices Act, which bans contracts, arrangements, or any type of undertakings that have as their intent or are likely to be in the effect of substantially lessening competition or preventing, restricting, or limiting dealings with certain individuals.
Table of Contents
Statement of Thesis
Introduction
Elements Preceding the Change in Law
Corporate Law Economic Reform Program (CLERP 9)
Schedule One Provisions
Recent Development in Trade Practices
Conclusion
From the Paper "Australian Supreme Court sited in 2003 that: ?the governance of corporate entities comprehends the framework of rules, relationships, systems and processes within and by which authority is exercised and controlled in corporations.? Australia has recently implemented new regulations, which, enhance and harmonize corporation law. The alignment of the regulations with elements that are known to be those of a competent and responsible board of directors in view of strategy determination, performance review, risk management, internal control regulation and reporting to shareholders and stakeholders took effect in June 2004. The hoped for achievements are the elimination of the potential for future conflicts of interest, promotion of financial disclosure as well as the strengthening of those minority investors."
Abstract This paper offers a personal discussion on obtaining a degree and a career in finance. It explores the career options, the pitfalls and the areas in which specific tasks are performed in the industry.
From the Paper "I am currently working on my AA degree. Once I have received my AA degree, I plan to transfer immediately to a four year college to earn a bachelor's degree in finance. I have already done research on finance as a major to make certain that I have taken both the required and the recommended classes as a part of my AA degree program. I learned that the School of Business at the college I want to attend is currently impacted ..."
Tags: finance, accounting, career, finance major, job options, controller, treasurer, college degree, earning potential, career path, CFO, Vice President of Finance
Abstract The paper addresses the factors to consider when making the decision to repatriate funds from a foreign subsidiary, such as the direct/indirect U.S. and foreign tax rates, tax credits availability and the capacity to use repatriated funds. The paper discusses strategies to employ once the decision has been made to repatriate, including direct ownership to avoid taxes and borrowing from third parties. The paper explores the advantages and disadvantages of each strategy.
Outline:
Objective
Introduction
Repatriation Opportunities
Results of Repatriation of Funds
Issues Addressed By Multinational Corporations
Repatriation Concerns-CFO Research
Permitted Investments Under Section 965
Investments Not Permitted Under Section 965
Economic Growth Effects of Repatriation
Forecasted Growth By State
Rules Applicable to the Deduction
Sample Portfolio Strategies
Summary and Conclusion
From the Paper "Repatriation provides the U.S. companies an opportunity to move the foreign assets back to the U.S. without suffering tax consequences of any significant nature however, estimates are varied dependent on how much money that is represented. Estimates from the Joint Committee on Taxation has projected approximately $150 billion in repatriated income however the New-York based JP Morgan Chase has estimated the amount to be approximately $425 billion meaning that a gain from $8 billion to $22 billion in corporate income tax revenue would be gained by the U.S. Treasury."
Abstract The paper shows how Laura Wright, Senior Vice President and CFO at Southwest Airlines, has impacted the Southwest company significantly through her promotion of the fuel price hedging policy. The paper explains that this policy allowed Southwest to focus on its passengers and support their needs, with fuel prices locked in and fuel hedging contracts with fuel providers in place. The paper reveals that this policy has resulted in Southwest demonstrating consistent profits while other airlines entered bankruptcy.
From the Paper "Laura Wright is Senior Vice President and CFO at Southwest Airlines, with her office based in Dallas, Texas. In this position Wright is responsible for all financial factors affecting the company, with an added focus on "accounting, investor relations, treasury/tax, fleet planning, insurance, and Employee compensation and benefits" ("Officer", 2007, sec. 1). Wright began her association with Southwest in 1990 and has progressively proven her value to the company through such positions as Director of Corporate Taxation, Assistant Treasurer and Vice President Finance and Treasurer ("Officer", 2007, sec. 1)."
