Articles

Some external factors, such as inflation and interest rates, have been more stable in recent years, which ought to lead to greater certainty in planning and budgeting. Other factors, such as the rapid downturn in the global economy, have made forecasting demand increasingly difficult. At the same time, the level of competitive activity is stepping up so that companies often find themselves facing new competition from unexpected quarters.

When you’re driving, you only glance into the rear-view mirror because, if you stare too long, you just might crash. Many businesses today are spending way too much time looking in the rear-view mirror at the road they’ve traveled by focusing on historical performance management methods. A few leading companies, however, are applying many of the basic principles and technology of historical performance management methods to forward-looking performance management. This new trend is scenario-based planning, and it concentrates on the future rather than on what has already happened.

For capital markets to function efficiently and effectively, participants (including investors and creditors) must have confidence in the financial reporting process. But how can they get this confidence?

Many fast-developing Ukrainian companies lack financial resources and are now planning to enter international capital markets. In order to attract cheap long-term investment, they will have to increase transparency and bring their accounts and corporate governance into line with the international standards. More about this interesting theme You can read in the article "A Triangle and a Dot".