CFOs Anticipate Geopolitical Uncertainty

The following is a report on snags to be faced by CFOs in 2020:

Transforming Geopolitical Quandary into Sagacity

CFOs will oversee trade conflicts, Brexit and supervise a latent economy slump. The U.S.-China trade war has admonished U.S. companies to nurture vigilance. Because of this, 56% of the CFOs at U.S. companies have instigated contriving for a recession.

Trimming and Tightening

CFOs gauged that in the third quarter capital spending would grow by 3.6% over the next 12 months, lower than their outlook for 9.4% growth a year. In the fourth quarter of 2019, it reached their rock-bottom since early 2017. U.S. business investment was sluggish throughout 2019 schlepping down U.S. economic growth. CFOs’ worries about the necessity to acclimatize and invent will burgeon in 2020 as more companies will acquire automation to build proficiency and growth.

Quest for Talent

CFOs have to deal with the paucity of availability of personnel and qualified finance professionals to perform roles that extensively quench for technological maestros. Organizations have invested in short-term job training programs and boot camps to train workers.

Existence of Bond Market Competition

The bond market champions companies with low interest rates, permitting them to borrow at more affordable rates. Chief companies were in a gallop to issue new bonds to refinance short-term debt and help cut interest expenses by supplanting existing debt with lower yielding bonds.

Owning Valuable Companies

Mounting stock prices and truncated interest rates benefit companies that want to grow through acquisitions. Companies that can use the available capital and make adjustments should be able to maintain M&A thrust.

Staying on top of the books

The Financial Accounting Standards Board (FASB) is concentrating on the matters of segregating liabilities from equity and improving the measurement of goodwill for 1^st half of the next year.

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