Non-financial data reporting increasingly gaining prominence: Survey

Besides financial information, reporting non-financial data is increasingly gaining prominence, with 76 per cent of finance leaders in India indicating that a lot of non-financial information is being used in investors' decision-making, says a survey.

According to the latest findings of the EY Financial Accounting and Advisory Services (FAAS) fifth annual survey, in India, 64 per cent of finance leaders (globally-58 per cent) surveyed said transparency in reporting was a key driver to gain investor trust.

The survey further noted that, 76 per cent of finance leaders in India, more than the global average (72 per cent) indicated that non-financial information is being increasingly used in investors' decision-making, and finance teams need to manage this information with the same rigour and assurance as financial information.

The survey said that corporate reporting teams must adopt a creative and innovative approach while recruiting manpower.

It further noted that skills in high demand, like experience in artificial intelligence (AI), blockchain and machine learning, will be critical in driving innovation forward, with 93 per cent of respondents (globally-72 per cent) identifying AI skills as the most vital.

"Digital transformation is gaining far more importance in the finance function than ever before. Finance leaders can use digital tools to look for underlying patterns in data and leverage smart analytics to predict scenarios and improve outcomes," said Sandip Khetan, National Leader and Partner, Financial Accounting Advisory Services (FAAS), EY India.

The report noted that, though the finance teams recognise the urgency of transforming the workforce, they are also aware of the obstacles, especially when it comes to technological innovation.

Around 83 per cent of finance leaders in India (globally-63 per cent) say that resistance and cultural differences within teams are barriers to digital innovation.

More than 1,000 chief financial officers (CFOs) or financial controllers of large organisations with revenue greater than USD 500 million across 25 countries participated in the annual global survey with 40 finance leaders from India.