1. The Roles of the Finance Function in Organisations Flashcards
How does the finance function ENABLE how organisations create and preserve value?
Planning
Forecasting
Resource allocation
How does the finance function SHAPE how organisations create and preserve value?
Performance management
Control
How does the finance function NARRATE how organisations create and preserve value?
Financial reporting
The roles of the finance function are constantly changing. What is driving this change?
Continuous changes in technology driven by the 4th industrial revolution
What are the two main types of organisation called?
Profit seeking and not-for-profit
What is the primary objective of a profit seeking organisation?
Maximisation of the wealth of their owners
What is the primary objective of a not-for-profit organisation?
Maximise benefit to beneficiaries
What is the definition of value?
Value is the achievement of the specified objective, most economically and at the required standard of quality and reliability
What are the five ethical principles in CIMA’s Code of Ethics?
Integrity
Objectivity
Professional competence and due care
Confidentiality
Professional behaviour
What is meant by integrity?
Being straightforward, honest and truthful
What is meant by objectivity?
Not allowing bias, conflict of interest, or the influence of others to override your professional judgement
What is meant by professional competence and due care?
Ongoing commitment to maintain your level of knowledge and skill. Work should be completed carefully, thoroughly and diligently in accordance with relevant standards
What is meant by confidentiality?
Do not disclose information without permission
What is meant by professional behaviour?
Comply with relevant laws and regulations
What are examples of ethical behaviour from a company?
Pay fair wages
Provide good working conditions
Pay suppliers on time
Source supplies carefully
Use renewable sources
Be open and honest with customers