GST, transfer pricing to redefine CFO role

A slew of regulatory changes including Companies Act 2013, GST and Transfer Pricing (TP) are likely to redefine the role of chief financial officers (CFOs) according to a report unveiled by KPMG in India and CII.

The report titled ‘Playing to Win in a VUCA Environment’ was unveiled at the 8th Edition of CII CFO Summit in Mumbai by the RBI Deputy Governor HR Khan.

The report emphasises that Companies Act, 2013 is likely to have far-reaching consequences on companies operating in India as it will require active participation by the CFO including signing financial statements.

Some of the key areas where CFOs have an important role to play include related party transactions, financial reporting, governance and monitoring framework and managing auditor rotation, according to the report.

According to Punit Shah, Head – West, KPMG India, “With the ongoing processes and everchanging policies, volatility, uncertainty, complexity and ambiguity (VUCA), have become the new normal. There is increasing pressure for the CFO from shareholders to increase returns by efficiently managing taxes and increase earnings per share.”