Discuss about the Corporate Financial Management for Organizational Leader.
The chief financial officer of an organization is essentially an effectual organizational leader as well as key members of senior management that balance the overall accountability of stewardship with the business affiliation. The chief financial officer of Acacia Coal Limited also acts as the integrator as well as navigator for the corporation and become an effective leader of the finance along with the accounting functionalities. Acacia Coal is a publicly traded organization on the Australian Securities Exchange (ASX) that involves in the operations of coal exploration as well as development of mine (Acaciacoal.com 2016). The present study therefore emphasizes on the role of the chief financial officer (CFO) with special orientation to the operations of Acacia Coal Limited. The study reveals the role as well as responsibilities of a corporation Acacia Coal Limited that essentially outlines five different principles that includes professional, organizational leader, business partner and steward, integrator and navigator, finance and accounting leader and professional (Arnold 2014). Therefore, in addition to the function of overseeing the finance and accounts operation of the corporation Acacia Coal Limited, the roles as well as accountabilities of the CFO refers to the demonstration of the ethical leadership as well as business integrity.
However, the three main areas of responsibility of the chief financial officer of Acacia Coal Limited are the maintenance of the book, ensuring management has critical decision-making data, compliance as well as assistance (Brigham and Ehrhardt 2013).
Maintenance of the book- In the area of maintenance of books, the main role of the chief financial officer in Acacia Coal Limited is also to make it certain that the financial accounts as well as records of the corporation are set in proper sequence (Titman et al. 2015).
Ensuring management has critical decision-making data- However, in the area of the critical decision-making based on the data, the chief financial officer needs to ensure that the corporation acquires requisite data and employs the same for the proper decision-making. Again, the chief financial officer acting as an administrative support in the process of creation of provision of financial as well as non-financial information that includes both historic and at the same time forward looking can overall support the overall decision-making process of the board (Brigham and Houston 2012). Thereby, the chief financial officer also aids the chief executive officer of the corporation in presenting the overall financial results of the corporation to the specific investors and at the same time financiers. Again, the chief financial officer also can act as an active participant in the investor as well as stakeholders engagement policies (Leary and Roberts 2014)
Compliance as well as assistance- The compliance as well as assistance areas reflects the fact that the CFOs can supervise diverse duties associated to the shareholders that includes the issuance of dividends, prevention of the fraud as well as disclosure of the financial information (Baños-Caballero et al. 2014). However, the chief financial officer of the corporation also need to carry out the function of the assistance of internal customers that is the employees of the corporations comprising of the operational manager who require useful financial data to resolve things such as the decisions on pricing or else the lifetime worth of the consumers (Dittmar and Duchin 2016). The management of the corporation has different conformity issues to deal with and the chief financial officer therefore needs to monitor all these activities. The role of the CFO therefore includes appreciation of the significance of dual facets of conformance as well as performance that in turn provides stewardship of diverse organizational assets and consequently ensures that the corporation Acacia Coal Limited undertakes the business activities as per the relevant legal as well as different regulatory requirements.
The main objectives of the corporation Acacia Coal Limited is to recognize, attain as well as exploit different opportunities in specific coal resources to offer thermal and at the same time coking coal products for the target export market. In addition to this, the primary objective of the corporation is also to ensure the overall success of the corporation through different important functions that includes proper management of the corporation Acacia Coal Limited, keeping track of the financial performance of the organization, associating with different management commensurate with the framework as well as objective of the corporation. This also includes acquirement of approval as well as monitoring the overall progress of different capital expenditure, management of capital as well as acquisitions along with divestures. The objective of the corporation is also to enhance the enhancement of the skill as well as competence of the employees of the organization that can help in the process of progress of the corporation (Lasher 2013). The chief financial officer of Acacia Coal Limited is accountable for the process of identification of different issues especially at the time when it takes place. In addition to this, the chief financial officer of the Acacia Coal Limited also undertakes different activities that helps in the process of coordination of the different members of the staff of the organization for the enhancement of the overall efficiency as well as skill and competence that is aligned with the organizational intention of the Acacia Coal Limited. The chief financial officer of Acacia Coal Limited also has the need to stress different financial results that are essentially for a short period with greater focus on business strategies that can be applied with the intention and purpose of lessening the cost of operation and at the same time emphasizing different aspects of growth (Madanoglu and Karadag 2016). However, the responsibility of the chief financial officer to monitor the process of maintenance of book can help the organization to achieve the organizational objective of balancing different short term concerns as well as pressures that includes the management of cash, administration of the liquidity, rate of profitability and at the same time long term success of the corporation (Brealey et al. 2012). Furthermore, the role as well as the accountabilities of the chief financial officer that encompasses around ensuring management regarding the availability of vital decision-making data. This role of the CFO can help the corporation Acacia Coal limited in undertaking different finance and accounts functions that in turn can aid the strategic as well as operational managers in arriving at critical decisions by employing the vital data on finance as well as accounts. Thus, this role of the chief financial officer can help in propelling the corporation by helping the company in arriving at diverse strategic decision by taking into account financial evaluation as well as management (Vernimmen et al. 2014). The CFO thereby helps in concentrating on the overall business partnership as well as certain particular functional framework that again helps in upholding the superior organizational objectives. Nevertheless, the CFO essentially assumes the role as well as responsibility to undertake effectual short as well as long term decisions that can help in dealing with primary organizational goals. This in turn can enhance the volatility in the financial markets and control different financial aspects that can aid the overall operational as well as the strategic decisions of the corporation. The CFO of the company Acacia Coal Limited can evolve the accountabilities of the CFO for the preservation of different business transactions, generate efficiency in the cost intention, and concentrate on addition of value as well as fulfilment of different strategic aims of Acacia Coal Limited (Acaciacoal.com 2016).
Again, the role of the chief financial officer that orients around maintenance of the compliance as well as assistance can help in preserving the transparency, integrity and other ethical requirements of the business operations as well as financial statements of the corporation. This can also demonstrate ethical leadership and at the same time reliability of the business. The role of the CFO that helps in maintenance of the compliance as well as assistance helps in preparation as well as presentation of the financial statements as per the section 307C of the corporation Act 2001 in addition to other constructive requirements. This role of CFO can help the company in abiding by the regulations laid down under the Corporations Act 2001 (Acaciacoal.com 2016). This can help in providing true as well as fair view of the financial position of the corporation and help in maintaining compliance with different accounting principles, the Corporation Regulations 2001 as well as other mandatory professional reporting obligations. The CFO can also provide reasonable ground for believing that the corporation Acacia Coal Limited can repay the debts of the firm as and when the particular amounts become due. Again, the role of the conformity of the CFO can also help in the presentation of the audited remuneration disclosures of Acacia Coal Limited in the director’s declaration that again conforms with the “Accounting Standard AASB Related Party Disclosures and Corporations Regulations 2001” (Acaciacoal.com 2016). In addition to this, the board of Acacia Coal Limited also receives assurance from both the managing director as well as the chief financial director concerning the compliance with the regulation stipulated under 295 A of the Corporations Act based on the sound procedure of the risk management as well as internal control (Acaciacoal.com 2016). This in turn can make it ertain that the overall business functionalities of the corporation is running effectually when considered from different material aspects in association to different risks of reporting.
Therefore, in conclusion it can be hereby ascertained that the CFO can act as a catalyst that can stimulate the overall behaviour of the corporation Acacia Coal Limited for the purpose of attainment of different strategic as well as financial benefits. Therefore, the action of assistance by the CFO can help in the process of concentrating on the overall performance of the management based on diverse historical outcomes (Arnold 2014). The role of assistance also help in undertaking partnering together with the building the capability for fulfilment of different conventional stewardship.
As rightly out forward by Brigham and Ehrhardt (2013), the efficient marker hypothesis refers to an investment notion that reflects different significant financial information. This also bears the implication that is quite impossible to beat the entire market persistently on a certain risk adjusted foundation as the prices in the market only respond to different new information or else alterations in the rates of discount. The present concept designed by the Eugene Fama is of the view that the stocks at all times trade at essentially the fair value that in turn makes it impracticable for different financiers to either buy different undervalued stocks or else sell different stocks for certain overstated prices (Titman et al. 2015). However, it can be hereby mentioned that it is impossible to outperform the overall market by means of the expert selection of the shares or else timing of the market. The possible way by which the investor can probably acquire higher rate of returns is by way of buying different riskier investments. However, the financiers of the market can obtain greater rate of returns only if the risks associated to different stocks are high (Brigham and Houston 2012). This in turn directs the way towards the generation of huge amount of revenue that in turn increases the tax. However, the tax return on the assets is essentially a low individual slab that can be considered as a suitable procedure of gaining an additional variable of tax.
The role of the pension fund manager is to ensure that the pension designs are functioning in an effective manner for the purpose of attaining sustainability (Brigham and Houston 2012). However, the main function of the management of the particular pension fund in an effective manner. In this case, the pension funds amassed for a certain number that in turn are provided as retirement benefits plans. As such, the managers of the fund link the plans with the respective members of the staff of the corporation. Therefore, the implementation of the advanced pension fund plans for the effective management of the fund becomes an important facet of the activities of the pension fund manager. Nevertheless, the role of the pension fund manager differs from one corporation to another corporation, nature as well as characteristics along with the level of experience of the corporation. The significant role of the pension fund manager thereby orients around development of the respective funds in the particular pension scheme together with other economic benefits of the entire pension package (Brigham and Houston 2012). In addition to this, the role of the pension fund manager also encompasses keeping a track of the overall administration and handling of the pension funds. Furthermore, the manager of this fund is also accountable for designing the fund strategy, reviewing the same at regular time intervals and discussing the strategy with the board members of the corporation along with the investment management. A critical analysis of the role therefore reveals the fact that the primary function of the manager of the pension fund encompasses around proper management of the pension fund schemes and dealing with the betterment of the performance of the same.
References
Acaciacoal.com. 2016. [online] Available at: https://acaciacoal.com [Accessed 29 Sep. 2016].
Arnold, G., 2014. Corporate financial management. Pearson Higher Ed.
Baños-Caballero, S., García-Teruel, P.J. and Martínez-Solano, P., 2014. Working capital management, corporate performance, and financial constraints. Journal of Business Research, 67(3), pp.332-338.
Brealey, R.A., Myers, S.C., Allen, F. and Mohanty, P., 2012. Principles of corporate finance. Tata McGraw-Hill Education.
Brigham, E.F. and Ehrhardt, M.C., 2013. Financial management: Theory & practice. Cengage Learning.
Brigham, E.F. and Houston, J.F., 2012. Fundamentals of financial management. Cengage Learning.
Dittmar, A. and Duchin, R., 2016. Looking in the Rearview Mirror: The Effect of Managers’ Professional Experience on Corporate Financial Policy. Review of Financial Studies, 29(3), pp.565-602.
Lasher, W.R., 2013. Practical financial management. Nelson Education.
Leary, M.T. and Roberts, M.R., 2014. Do peer firms affect corporate financial policy?. The Journal of Finance, 69(1), pp.139-178.
Madanoglu, M. and Karadag, E., 2016. Corporate governance provisions and firm financial performance: the moderating effect of deviation from optimal franchising. International Journal of Contemporary Hospitality Management,28(8).
Titman, S., Keown, A.J. and Martin, J.D., 2015. Financial management: Principles and applications. Pearson.
Vernimmen, P., Quiry, P., Dallocchio, M., Le Fur, Y. and Salvi, A., 2014.Corporate finance: theory and practice. John Wiley & Sons.
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