Monitoring the market is not possible without artificial intelligence – Tejaratnews
According to Tejarat News, Majid Eshghi said at the opening of the third international accounting conference of Iran: Accounting profession is one of the main foundations and dimensions of the capital market. The capital market relies on information in various fields that are used by stakeholders.
He added: The stock exchange organization has a serious interest in the disclosure and reporting of companies’ events. Considering the ever-increasing sensitivity of the capital market and the development of the presence of investors and companies, if we do not think about the development of accounting, the accounting profession will lag behind the development of the capital market. Of course, we are still a bit behind and need to speed up.
The head of the Securities and Exchange Organization noted: “Sometimes we present financial statements with a delay of several months, but what is important for investors and politicians is the future.” We want to signal to the investor whether to invest in this market or not, which cannot be achieved by just reviewing past financial statements.
Eshghi stated that “we are facing several major changes in the capital market in accounting fields”, and stated: One of these topics is the issue of big data, which cannot be used with old data.
We at the stock exchange organization are ready to work on this issue.
300, 400 thousand people trade in the market every day
He explained the role of artificial intelligence in the capital market and said: Currently, it is not possible to monitor the market without artificial intelligence. Currently, 300, 400,000 people trade in the market daily, and on peak days, the number of traders reaches 700,000. Also, the number of transactions is two million daily transactions.
The head of the stock exchange organization reminded: this number of transactions cannot be checked and monitored by the traditional method. The use of artificial intelligence is a serious and practical issue that is also used in service providers.
Regarding sustainability reporting, Eshghi said: Last year, we took sustainability reporting one step further and set requirements for it, but it is not enough and we must expand it. Our businesses must pay attention to sustainability in order to survive. If we do not pay attention to this, we will face a serious problem in the near future.
Referring to the discussion of business resilience, he said: Business resilience has different dimensions, one of which is the way of financial reporting. The policy maker makes his decisions based on financial statements.
The head of the stock exchange organization said: The published reports do not show the true face of the companies. Due to inflation, financial statements do not show what they should. Without visiting the company, you cannot make a decision based on financial statements alone. All numbers and even our profits are historical. Most of the companies that are producing and making profits today were from twenty years ago.
Eshghi continued: If this situation continues in the next five years, all the assets will be distributed in the form of profit and nothing will be left for the company.
Stating that “risk is one of the issues that look to the future,” he said: “Unfortunately, we did not find the right place for risk in accounting.” This issue requires serious work.
The head of the stock exchange organization reminded: the number of financial institutions has now reached more than a thousand. They have almost no clear basis for risk reporting. We must identify the issues related to the risk of financial institutions and design the appropriate way to face them. Accounting also has a serious role in this field.
Eshghi stated: assets amounting to 700 thousand billion tomans are under the management of the funds. 100,000 billion Tomans are assets under the management of portfolio managers.
Source: Shahrboras