19APRIL JUNE 2024CFO TECH OUTLOOKCFO INSIGHTSTHE ROLE OF ACCOUNTING IN FINANCIAL COMPLIANCE AND THE IMPACT OF FOREIGN EXCHANGE RATE FLUCTUATIONSRichard Kung, Chief Financial Officer, CTBC Bank Corp. (USA)What role does the accounting function play in maintaining accurate financial records and ensuring compliance with accounting standards and regulations?Accounting plays a critical role. The accounting and finance teams are the foundation of the organization's financial output. More likely than not, most individuals already use basic accounting principles, from balancing their checkbooks to managing their household cash flow. Accounting keeps current and historical information, giving users key information and an accurate picture of performance.Further, accounting consolidates revenue and expense drivers and provides stakeholders with the fundamentals, which is the first step in analyzing any Key Performance and Risk Indicators. Equally important, we focus on Basel III and the development of endgame regulations, translating development into opportunities to enhance resource utilization while optimizing capital usage. Strict adherence to accounting standards unifies the understanding of a company's use of resources or the most basic and universal elements to a denominator. Disciplined compliance with basic standards enables a sound budgeting process, informed investment decisions, evaluation of costs and benefits, and application of tax strategies. Most importantly, observance of accounting standards ensures confidence, knowing that maintaining accurate financial records is the critical first step of accounting guiding principles for makers and checkers.If your company can consent to this, can you share your experiences from one of the projects you were recently involved in?Accounting processes have evolved significantly over recent decades. The core is to improve the process and create efficient and effective gathering by preparing and auditing of accounting data. For our organization, there are several Richard Kung
< Page 9 | Page 11 >