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Amid the impact of the pandemic, many enterprises have partnered with technology service providers through flexible pricing models, alleviating short-term financial pressure while ensuring the continuity of transformation projects. This article analyzes the applicable scenarios and considerations of four models—fixed pricing, time and materials, transaction-based pricing, and outcome-based pricing—and points out that these models remain valuable in the post-pandemic era, with enterprises needing to choose carefully based on their own maturity and goals.
Since the U.S. Securities and Exchange Commission (SEC) issued a statement in early April regarding the accounting treatment of warrants issued by Special Purpose Acquisition Companies (SPACs), many companies have been struggling to interpret its implications. The statement indicated that certain provisions in some SPAC warrant agreements may not meet the exception conditions for equity classification, leading to errors in historical financial statements. This article, authored by Matt Smith and Petar Tomov, directors of the Financial Instruments Group at Opportune LLP, provides a detailed analysis of the two core issues the SEC has focused on: warrant indexation and tender offer provisions, and discusses the complexities of subsequent valuation and restatement.
EY-Parthenon estimates that approximately $2.5 trillion in cash is locked up in working capital at companies in Europe and the Americas. This article proposes a three-step strategy: using data analytics to set cash entitlement targets, strengthening accountability through step-by-step metrics, and integrating cash generation into continuous improvement processes, thereby building a true cash culture.
During the pandemic, many financial professionals encountered debt restructuring and PPP loan accounting for the first time. This article outlines key areas such as the latest FASB guidance, covenant reviews, complex debt terms, and PPP expense recording to help avoid common errors.
U.S. inflation indicators continue to climb, posing new profit threats to CFOs. Economists suggest limiting inflation damage through five strategies: issuing long-term debt, procuring supplies in advance, hedging against dollar depreciation, allocating inflation-protected assets, and enhancing agility.
The COVID-19 pandemic has brought long-overdue attention to employee mental health issues. Clinical research shows a strong association between pandemic-related anxiety and behaviors such as hopelessness or substance abuse, which businesses cannot ignore. Russell Guthrie, CFO of the International Federation of Accountants (IFAC), writes that supporting mental health is not only the right thing to do but also beneficial to business operations, and should be regarded as a core part of the finance function's role in promoting sustainable value creation.
The pandemic pushed retailers to two extremes—grocery stores thrived while some malls struggled. Now, retail CFOs are betting on a high-spending wave from U.S. consumers in the second half of 2021. The economy grew at an annual rate of 6.4%, retail sales surged 37%, and households received three rounds of federal stimulus funds. CFOs are expanding inventory, increasing cash reserves, diversifying suppliers, and boosting e-commerce investments. Industry experts note that successful players focus on simplifying consumers' lives, but face challenges such as inflation, labor shortages, and trend uncertainty.
The pandemic caused $270 billion in losses for the U.S. restaurant industry, and surviving businesses are gearing up for demand growth from economic recovery by strengthening inventory, optimizing scenario planning, expanding delivery, and adopting automation technology. Industry experts note that the restaurant industry's resilience can serve as a model for other sectors.
The pandemic severely impacted the aviation industry, but as the economy reopens, airline CFOs are actively preparing for a demand rebound. On one hand, they are strengthening finances through refinancing, leasing aircraft, and increasing cash reserves; on the other, they are adding routes and launching new low-cost carriers. Spirit Airlines CFO Scott Haralson shared lessons learned from the crisis, and the industry expects international travel markets to recover to 2019 levels only by 2024-2025.