The Malaysian Institute of Accountants (MIA) has launched a CFO Competency Framework for Public Interest Entities that sets forth five key principles guiding the roles and expectations of a CFO and the six roles that represent the full breadth of the CFO’s remit.
“The CFO Competency Framework also seeks to enlighten those charged with governance (TCWG) and C-suite executives that a competent finance function led by a competent CFO can improve corporate governance and hence, strengthen reputation, public confidence and trust,” said MIA chief executive officer, Dr. Nurmazilah Datuk Mahzan.
“Furthermore, this Competency Framework can serve as a reference guide for companies, Audit Committees and CFOs in clarifying and delineating the scope of work that CFOs in PIEs could be doing and the competencies that are expected to go with it.”
To upskill CFOs adequately, the CFO Competency Framework recommends that CFOs undergo training in the following core areas to strengthen their competency.
One, preparation of financial statements and external reporting in compliance with accounting standards and relevant laws and regulations as befits the local context.
Two, competency in financial management, strategy development and execution, and communication with stakeholders.
The CFO Competency Framework was prepared by the MIA Technical Team with the guidance and support of its Professional Accountants in Business (PAIB) Committee and feedback from CFOs, Professional Accountancy Organisations, Regulators and Professional Accountants.