CA Ravi Chauhan’s Post

Financial Planning & Analysis (FP&A): The Sherlock Holmes of Finance! Since I have been receiving quite a few DMs from the young professionals who are interested in making their career into the FP&A, I thought of writing this post which might help to an extent. So, ever wondered who’s the mastermind behind those magic numbers that make businesses thrive? Yes, it’s not just the conventional finance team, it’s the FP&A professionals - a.k.a. the Sherlock Holmes of Finance! I have tried to break it down in VERY SIMPLE TERMS as follows: 💡 What is FP&A? Imagine being the fortune teller for your company’s finances, but instead of a crystal ball, you’ve got Excel sheets, dashboards, and a killer strategy. FP&A professionals analyze trends, crunch numbers, and provide actionable insights (fancy, right?) to ensure the company hits its goals. Think of them as the GPS guiding businesses through rough financial terrain. 💡 What you’ll do? 📊 Build futuristic budgets (yes, you’ll feel like a time traveler) 📈 Identify profit opportunities faster than you spot sales at your favorite store 🎯 Help leadership make smart business decisions (no pressure!) 💡 Why choose FP&A? It’s like being a financial detective. You’re not just crunching numbers; you’re solving puzzles and uncovering hidden business gems. You’ll get to work with every department—so yes, you’ll actually know more than anyone else. Career growth: FP&A professionals are generally in demand, especially when times are tough. 💡 Key skills to thrive: Excel skills (that’ll make your laptop jealous of your fingers). Strategic thinking (channel your inner chess master). Communication—because translating finance-speak to normal human language is an art! Do you still think FP&A is just “finance-y stuff”? Think again. It’s an adventure where every decision you make impacts the company’s future. So, if you like crunching numbers, love solving mysteries, and want to steer the ship—FP&A might just be your perfect career fit! #FinanceCareers #YoungProfessionals #FPandA #FinanceHeroes #CareerGrowth #BusinessStrategy

The International Accounting Standards Board (IASB)'s Latest Proposal on Reporting Climate-Related and Other Uncertainties in Financial Statements The IASB has just released a consultation document aimed at enhancing how companies report the effects of climate-related and other uncertainties (for e.g., economic, regulatory, technological, societal and environmental uncertainties) in their financial statements. ▶ What’s New? 8 ILLUSTRATIVE EXAMPLES have been proposed to show how companies can better apply IFRS Accounting Standards when reporting these uncertainties. This initiative responds to concerns from INVESTORS who found the existing information INSUFFICIENT or INCONSISTENT with other company disclosures. ▶ Key Focus Areas: --> MATERIALITY judgments --> DISCLOSURES about assumptions and estimation uncertainties --> DISAGGREGATION of information ▶ List of 8 Illustrative Examples: 1️⃣ Materiality judgements leading to additional disclosures (IAS 1/IFRS 18) 2️⃣ Materiality judgements NOT leading to additional disclosures (IAS 1/IFRS 18) 3️⃣ Disclosure of assumptions: SPECIFIC requirements (IAS 36) 4️⃣ Disclosure of assumptions: GENERAL requirements (IAS 1/IAS 8) 5️⃣ Disclosure of assumptions: ADDITIONAL DISCLOSURES (IAS 1/IFRS 18) 6️⃣ Disclosure about credit risk (IFRS 7) 7️⃣ Disclosure about decommissioning and restoration provisions (IAS 37) 8️⃣ Disclosure of DISAGGREGATED information (IFRS 18) ▶ What This Means? These examples aim to improve TRANSPARENCY in the financial statements and strengthen the link between FINANCIAL and SUSTAINABILITY reporting. Importantly, these examples are GUIDANCE—they do not add to or change the existing IFRS requirements. ▶ Getting Involved: The COMMENT PERIOD is open until 28th NOVEMBER 2024. This is your chance to provide feedback and help shape the future of financial reporting. ▶ Want to Learn More or Comment? Visit the IASB’s website (https://lnkd.in/dvtHNr7g) to read the EXPOSURE DRAFT and submit your feedback. #IASB #IFRS #FinancialReporting #ClimateChange #Sustainability #AccountingStandards

Thank You for Choosing... We often UNDER ESTIMATE the Power of Gratitude in today's World of Endless Choices! In a world brimming with choices, where options seem infinite and decisions can be overwhelming, the simple act of CHOOSING carries profound SIGNIFICANCE. Whether it's selecting a business partner, deciding on a product, or picking a person to spend your life with, each choice is a testament to trust, belief, and preference. Amidst this ocean of options, expressing gratitude becomes not just a courtesy but a crucial element of personal and professional success. Consider the multitude of decisions we make daily. From the local restaurant who knows your daily / frequent food order by heart to the friend who makes time to listen, these choices and actions shape our everyday experiences. A heartfelt "Thank You" in these moments can transform interactions, turning routine exchanges into meaningful connections. For e.g., Imagine your go-to restaurant where the staff greets you by name and remembers your favorite drink / food. In a city with countless restaurants, your choice to return to this particular place is significant. A simple expression of gratitude, such as "Thank you for always making my days brighter," acknowledges their consistent effort and reinforces your connection. Or just think about the friend who always picks up the phone when you need to talk. In an era where everyone is busy, their CHOICE to prioritize you is INVALUABLE. Saying, "Thank you for always being there for me," not only shows appreciation but also deepens your bond. Even in the professional realm, CHOICES are just as abundant and critical: - Clients choose service providers - Companies select partners - Employees decide where to invest their talents It's a FREEDOM of CHOICE! Recognizing these choices with gratitude can lead to lasting professional relationships and foster a positive work environment. So, when a client chooses your business over the competitors, it's an opportunity to EXPRESS GRATITUDE. A personalized thank you note or a dedicated appreciation event can really go a long way. Or it could be your team members and colleagues within an organization who continuously CHOOSE to collaborate and contribute to / with you. Acknowledging their efforts with genuine gratitude can boost morale and productivity. So, yes, Gratitude has a RIPPLE EFFECT! When we express thanks, we not only enhance our relationships but also encourage others to adopt a similar mindset. Such a positive cycle can lead to a more empathetic and supportive community, both personally and professionally. Hence, in today's world, where CHOICES are ABUNDANT and ATTENTION SPANS are SHORT, gratitude stands out as a powerful tool. Whether in our personal lives or professional endeavors, a simple "Thank You" can make all the difference. So, to everyone reading this, THANK YOU for CHOOSING to spend your time here. Your CHOICE is APPRECIATED, and your PRESENCE is VALUED! #Gratitude

Nearly 60% of Gen Z professionals in the UAE aspire to have green jobs! Here's what LinkedIn's latest research reveals about the green job market for Gen Z in the UAE 🌍🌱: ➡ High Interest: 60% of Gen Z professionals are keen on green jobs that help preserve the environment. ➡ Mental Health Concerns: 56% report that climate change impacts their mental health, causing "eco-anxiety." ➡ Awareness Gap: Only 3 in 10 have good awareness of available green roles. ➡ Perceived Job Scarcity: 63% believe there is a lack of green jobs in the market. ➡ Training Shortage: Only 16% think there are enough training opportunities for green skills. 🔍 Key Insights: 🔵 Gen Z will represent over a quarter of the international labor force by 2025. They demand green policies that align with their values. 🔵 Millennials currently dominate the green-skilled workforce in the UAE (65% vs. 15% Gen Z). 🔵 72% of Gen Z are worried about climate change repercussions. 💡 Actions for Employers & Decision-Makers: ✅ Listen closely to Gen Z's demand for green policies. ✅ Invest in training opportunities to bridge the green skills gap. ✅ Encourage science, Technology, Engineering and Mathematics (STEM) skills and digital skills to facilitate transitions into green jobs. 📊 Behavioral Changes: ⏹ 59% have altered their daily lives to reduce their carbon footprint. ⏹ 61% consider the environment in their daily decisions. So, it's great to see that Gen Z is passionate about addressing environmental issues and sees green jobs as a pathway to make a meaningful impact 🌍💚. However, to fully harness their potential, there needs to be more awareness, training, and opportunities in the green job market. Thoughts? Let me know in the comments section below. #GreenJobs #GenZ #Sustainability #ClimateAction #LinkedInInsights

There's a very interesting article by Khaleej Times giving insights on Global Remittance Trends: UAE's Outflow Dynamics and Projections 🌐 The latest data from the World Bank highlights noteworthy shifts in global remittance patterns, with specific focus on the UAE and GCC countries. Here are some key takeaways: 📉 UAE Remittance Outflows: A Gradual Decline ⏺ 2023: $38.5 billion (Dh141.3 billion), down nearly 3% from 2022. ⏺ 2022: $39.67 billion (Dh145.5 billion). ⏺ Peak in 2019: $52.88 billion (Dh194 billion). The UAE's consistent decline in outward remittances over the past 4 years mirrors broader trends across the GCC, with a 13% drop in 2023 compared to 2022. This decrease is attributed to post-pandemic adjustments and policy changes in Saudi Arabia allowing migrant workers to bring their families, reducing the need for remittances. 🌍 Global Context: Top Remittance Recipients ➡ India: $120 billion. ➡ Mexico: $66 billion. ➡ China: $50 billion. ➡ Philippines: $39 billion. ➡ Pakistan: $27 billion. 📊 Future Projections: ▶ India: Expected growth of 3.7% to $124 billion in 2024 and 4% to $129 billion in 2025. ▶ Pakistan: Projected recovery with a 7% increase to $28 billion in 2024 and 4% to $30 billion in 2025. Hence, the decline in remittances from the UAE and other GCC countries can significantly impact economies reliant on these funds, particularly in regions like South Asia and North Africa. However, India's diverse migrant workforce across high-income OECD and GCC markets offers a buffer against economic shocks, maintaining remittance stability. Going forward, understanding these dynamics is crucial for policymakers and businesses operating in both the sending and receiving countries. Enhanced regulation of informal channels and adapting to changing migration policies will be key to managing remittance flows effectively. #Remittances #UAE #GCC #GlobalEconomy #WorldBank #EconomicTrends #GlobalFinance

The International Sustainability Standards Board (ISSB) Drives Further HARMONIZATION in Sustainability Disclosure Landscape! Recently, the ISSB Chair announced groundbreaking strides in harmonizing the sustainability reporting landscape. The ISSB is embarking on an ambitious new TWO-YEAR work plan. Below are the key highlights: ▶ Strategic Partnerships and Collaborations: 🔳 Transition Plan Taskforce: The IFRS Foundation will now handle disclosure-specific materials from the Transition Plan Taskforce, ensuring alignment with IFRS S2 and global applicability. 🔳 GHG Protocol: A Memorandum of Understanding ensures ongoing collaboration, with the ISSB actively engaged in updates to the GHG Protocol standards, enhancing GHG emissions measurement. 🔳 CDP: CDP's new platform, aligned with IFRS S2, supports 75,000 organizations in complying with ISSB Standards. 🔳 Global Reporting Initiative (GRI): The ISSB and GRI's Global Sustainability Standards Board (GSSB) are working together to align common disclosures, providing a comprehensive sustainability reporting system. 🔳 Taskforce on Nature-related Financial Disclosures (TNFD): The ISSB will consider recommendations from the TNFD in its upcoming research project on biodiversity, ecosystems, and ecosystem services. ▶ Why This Matters? The ISSB aims to streamline the plethora of voluntary sustainability initiatives, providing investors with high-quality, comparable information on sustainability-related risks and opportunities. This initiative promises to simplify corporate sustainability reporting, enabling companies to efficiently deliver critical information to their investors. ▶ Recent Achievements: 🔳 Consolidation of Standards: The ISSB has already integrated the Climate Disclosure Standards Board (CDSB), Sustainability Accounting Standards Board (SASB), and the International Integrated Reporting Council (IIRC) with the IFRS Foundation. 🔳 Global Adoption: Over 20 jurisdictions, accounting for nearly 55% of global GDP and more than 40% of global market capitalization, are moving towards adopting ISSB Standards in their regulatory frameworks. ▶ Focus Areas for the Next Two Years: 🔳 Supporting application of IFRS S2 by consolidating frameworks for transition plan disclosures. 🔳 Ensuring compatibility with the GHG Protocol and supporting updates to meet capital market needs. 🔳 Developing educational materials and enhancing application guidance for IFRS S1 and S2. 🔳 Incorporating TNFD recommendations to meet investor information needs on biodiversity and ecosystems. This harmonization effort by the ISSB is set to deliver a more INTEGRATED, STREAMLINED, and EFFECTIVE Global Sustainability Reporting Framework. It underscores the ISSB's commitment to providing high-quality, decision-useful information, supporting both investors and the broader financial markets. #Sustainability #ISSB #IFRS #ClimateAction #GHGProtocol #CDP #GRI #TNFD #CorporateReporting #ESG #SustainableFinance

The recent lavish wedding celebrations by Mukesh Ambani are all over the news! While everyone is buzzing about the staggering ~INR 1200 Crores spent, I just tried to put it in a FINANCE perspective. So, this expenditure is MERELY about 0.12% of his ENTIRE NET WORTH. Hence, in my view, his decision was backed by a BUSINESS RATIONALE (consciously or unconsciously). In the world of Business and Finance, it’s crucial to understand the relative scale of expenditures. It highlights the importance of perspective in Financial Analysis and Wealth Management. Isn’t it fascinating to consider that for someone with immense wealth, such grand gestures are proportionally smaller than they appear (i.e., DON’T see ONLY the ABSOLUTE amounts)?! Actually, it’s a reminder to everyone to see the COMPLETE PICTURE before making any sort of conclusions / judgements! Any thoughts? Let me know in the comments section below. #BusinessFinance #FP&A #FinancialPerspective #FinancialInsights #FinancialWisdom #BusinessInsights #WealthManagement #MukeshAmbani #NetWorth

ENHANCING Corporate Reporting! The IFRS Foundation has recently released a valuable resource for companies looking to apply BOTH the INTEGRATED REPORTING FRAMEWORK and the IFRS SUSTAINABILITY DISCLOSURE STANDARDS. These COMPLEMENTARY TOOLS are designed for INVESTOR-FOCUSED COMMUNICATIONS, ensuring that companies can provide COMPREHENSIVE and TRANSPERANT reports. "TRANSITION TO INTEGRATED REPORTING: A GUIDE TO GETTING STARTED" offers PHASED APPROACH for IMPLEMENTING the INTEGRATED REPORTING FRAMEWORK and helps preparers UNDERSTAND how to INCORPORATE the IFRS SUSTAINABILITY DISCLOSURE STANDARDS into their REPORTING JOURNEY. An INTEGRATED REPORT is a CONCISE COMMUNICATION about an ORGANISATION’S STRATEGY, GOVERNANCE, PERFORMANCE, and PROSPECTS. It PRESENTS each TOPIC in the CONTEXT of the ORGANISATION’S EXTERNAL ENVIRONMENT and through a MULTI-CAPITAL LENS, summarising how the organisation CREATES, PRESERVES, or ERODES VALUE in the SHORT, MEDIUM, and LONG TERM. KEY HIGHLIGHTS: --> Used by companies in over 75 COUNTRIES, the INTEGRATED REPORTING FRAMEWORK drives HIGH-QUALITY CORPORATE REPORTING and CONNECTIVITY between FINANCIAL STATEMENTS and SUSTAINABILITY-RELATED FINANCIAL DISCLOSURES. --> The framework brings together information that investors need to assess a COMPANY’S ABILITY to CREATE VALUE over time. --> While the INTEGRATED REPORTING FRAMEWORK provides PRINCIPLES-BASED GUIDANCE for REPORTING STRUCTURE and CONTENT, companies also need to use STANDARDS to provide GRANULAR INFORMATION. --> IFRS S1 lists an INTEGRATED REPORT as a POSSIBLE LOCATION for SUSTAINABILITY-RELATED FINANCIAL DISCLOSURES when it forms part of the GENERAL PURPOSE FINANCIAL REPORTS. The "UPDATED" Getting Started Guide is designed to help companies preparing to IMPLEMENT IFRS S1 (General Requirements for Disclosure of Sustainability-related Financial Information) and IFRS S2 (Climate-Related Disclosures), wherever they may be on their INTEGRATED REPORTING JOURNEYS: --> Those NEW TO INTEGRATED REPORTING may wish to BEGIN by ADOPTING the PRINCIPLES and CONCEPTS specified in the INTEGRATED REPORTING FRAMEWORK over ONE, TWO, or THREE REPORTING CYCLES. This GUIDE can help them to better UNDERSTAND how the IFRS SUSTAINABILITY DISCLOSURE STANDARDS and the INTEGRATED REPORTING FRAMEWORK can WORK TOGETHER to IMPROVE TRANSPARENCY in REPORTING. --> EXPERIENCED INTEGRATED REPORTERS can start UNDERSTANDING how to EMBED IFRS S1 and IFRS S2 DISCLOSURES and hence, IMPROVE COMPARABILITY of their REPORTS. This UPDATED GUIDE is an ESSENTIAL RESOURCE for a company aiming to ENHANCE their CORPORATE REPORTING and MEET the EVOLVING EXPECTATIONS of INVESTORS. With the INTEGRATED REPORTING FRAMEWORK and the IFRS SUSTAINABILITY DISCLOSURE STANDARDS, companies can ACHIEVE GREATER TRANSPARENCY and create VALUE that is clearly communicated to all stakeholders. #CorporateReporting #IntegratedReporting #IFRSSustainability #Transparency #InvestorCommunications #SustainabilityDisclosure #IFRS

Recently, the IFRS Foundation's International Accounting Standards Board (IASB) has finalized and issued the New IFRS 18 (Presentation and Disclosure in the Financial Statements), a game-changing Standard aimed at improving the TRANSPERANCY and COMPARABILITY of companies' financial performance by introducing 3 sets of new requirements as follows: 1) Improved Comparability in the Income Statements: - Current income statements lack a standardized structure, making comparison difficult. - IFRS 18 introduces defined categories for income and expenses: OPERATING, INVESTING, and FINANCING. - ALL companies must provide new defined subtotals, including OPERATING PROFIT, for easier analysis. 2) Enhanced Transparency of Management-Defined Performance Measures (MDPM): - Many companies use alternative performance measures, but lack transparency in their calculation. - IFRS 18 MANDATES disclosure of explanations for these measures, enhancing transparency and making them SUBJECT TO AUDIT. 3) More Useful Grouping of Information in the Financial Statements: - Companies often provide either too summarized or too detailed information, hindering investor analysis. - IFRS 18 provides ENHANCED GUIDANCE on organizing information and transparency about operating expenses, aiding investors in finding and understanding the necessary data. 💡 Key Takeaway: IFRS 18 is a significant shift in financial reporting, providing investors with better information and consistent anchor points for analysis. 📅 Effective Date: Annual reporting periods beginning on or after 1 January 2027, with the option for early adoption. 🔁 Replacing IAS 1: IFRS 18 replaces IAS 1 Presentation of Financial Statements, carrying forward many requirements while introducing crucial enhancements. Below are some of my initial thoughts: --> How will the companies adapt their reporting practices and IT systems to comply with IFRS 18? --> Will early adopters gain a competitive advantage in investor confidence? --> What challenges might companies face in disclosing transparent explanations for management-defined performance measures (MDPM)? Let me know YOUR thoughts in the 'Comments' section below. #IFRS18 #NewStandard #IFRS #FinancialReporting #InvestorAnalysis #IFRSFoundation #IASB #Presentation #Disclosure #Transperancy