Sujeet Regmi

Key Result Area (KRA): Implementing and executing financial strategy

One of the major job responsibility of CFO is to implement and execute the financial strategy

which includes the handling of organization’s financial resources so as to achieve its business

objectives and maximize its value

Performance measure

It is an indicator of performance that measure whether and to what extent the objective has been

achieved. There are four measurement criteria are stated as per the responsibility of a CFO in

implementing and executing the financial strategy.

Quantity

Allocate funds for the operating, investing and financial activities of the firm for the year

2016 to carry out the strategic plans. This should be done by evaluating the history of

income and expenditure of the last quarter and that of the year 2015.

Time

Prepare strategic plans for all three activities one month prior to each quarter. The

strategic plans for the three activities for the year 2016 should be prepared before the

initiation of the new Fiscal Year

Cost

Cost incurred for the collecting the details of income generated from the operation

activities and financial activities, and the funds needed for the investment activities for

each quarter and for the whole year 2015.

Quality

The summation of the funds from all three activities should be positive, so that there is

surplus amount for further investment opportunity.

Performance goal

Prepare at least three financial strategy by proper calculation of the funds generated from the

financing and operational activities. The cost incurred for the preparation of the cash flow to

analyze the amount from all three activities should not exceed Rs. 15000. The surplus funds

generated should be invested in those areas which can generate at least 20% Modified Internal

Rate of Return (MIRR).

Work Plan

Activities

1. Collect all the receipts of income and expenditures from operating, financing and

investment activities.

2. Record the account basis by excluding all the non-cash items.

3. Prepare the balance sheet i.e. statement of financial position as at the end of the current

reporting period and as at the beginning of the current recording period.

4. Statement of comprehensive income (profit or loss) for the current reporting period should

be prepared.

5. Obtain the statement of changes in equity for the current reporting period.

6. Prepare the cash flow statement on the cash basis, not on accrual basis in accordance to the

above statements.

7. Obtain the details of the major contracts the firm has entered into during and before the end

of the reporting period.

8. Add up and perform final check.

9. If there is surplus amount invest it on the opportunities that has 20% or more MIRR