SEC Votes to Finalize XBRL Filing Rules

The US Securities and Exchange Commission (SEC) has voted to adopt new rules that would require public companies to provide an XBRL version of their SEC filings. Under the new rules, the 500 largest US public companies and foreign private issuers listed with the SEC would be required to provide financial information using XBRL beginning June 15, 2009. Smaller companies, depending on their size and filing status, would begin reporting in XBRL in 2010 or 2011, with all public companies filing in XBRL within three years. (Read the online Journal of Accountancy article.)

IBM Data Governance Council - XBRL for Risk Reporting

In a move to provide businesses worldwide with consistent tools for measuring aggregate risk in the financial world and provide a real-time view of market exposure, the IBM Data Governance Council is seeking input from banks and financial institutions, corporations, vendors and regulators to create an XBRL approach to risk reporting. (For more information, visit the Data Governance Council website and read the Q&A.)

IFAC launches webpage on The Global Financial Crisis

Accountancy organizations, regulatory bodies, standard setters and other international organizations have developed guidance on issues related to the global financial crisis. The International Federation of Accountants (IFAC) has launched a new webpage on The Global Financial Crisis. It serves as an international clearinghouse of programs, articles, speeches and other initiatives undertaken by IFAC, its independent standard-setting boards, members, associates and others that are relevant to professional accountants both in public practice and in business.

Global accountancy leaders address credit crisis

The International Federation of Accountants (IFAC) has released the results of its 2008 Global Leadership Survey. The survey summarizes the views of leaders of 110 accountancy bodies worldwide on the credit crisis and other top issues for the profession. The majority of these organizations have been actively engaged in identifying and executing appropriate responses to the crisis, supporting their members in understanding applicable international standards and working with regulators, business groups and others to find solutions.

Canada - The IFRS Impact

The effects of the switch from Canadian GAAP to International Financial Reporting Standards (IFRS) are starting to sink in with the Canadian CA community, according to Resources Global Professionals’ third annual IFRS survey. In a poll of 273 CAs from public practice, government and industry, nearly nine in 10 (87%) said the greatest impact of the IFRS changeover will be in companies’ valuation of assets and liabilities. Respondents also said organizations should expect “somewhat” of an impact on share prices (46%), compensation plans (49%) and debt covenants (50%). In addition, a large percentage of CAs surveyed (87%) believe that a company’s reported financial results will change due to IFRS, while 72% think Canadian users of financial statements will prefer IFRS. (Read the article The IFRS Impact.)

TELUS repeats as winner at CA’s Corporate Reporting Awards

TELUS Corporation has captured top honours at the 2008 Corporate Reporting Awards presented by the Chartered Accountants of Canada. In addition to the Overall Award of Excellence, TELUS garnered the Excellence in Financial Reporting Award and an Award of Excellence for the Communications and Media sector. The company also collected Honourable Mentions in Sustainable Development Reporting and Corporate Governance Disclosure. PotashCorp and Nexen Inc. were the other multiple winners. PotashCorp captured three awards while Nexen collected two. In total, 21 awards and honourable mentions were handed out. This also marked the second year that the program featured award categories for large and small crown corporations. (View the Press Release and Book of Judges’ Comments for the 2008 Corporate Reporting Awards.)

PwC Governance, Risk and Compliance Webcast Series

The business world is constantly changing. It's unpredictable, volatile and increasingly complex. By its very nature, it is fraught with risk. Today, the challenge lies in knowing which risks represent significant opportunities and which are rife with potential pitfalls. To help organizations better understand and prepare for these challenges, PricewaterhouseCoopers (PwC) is holding a series of Governance, Risk and Compliance Webcasts. The first webcast, "How to prepare for S&P's new ERM evaluations and realize business value" will be held on December 11, 2008. (Register for the first webcast.)

Building a Better MD&A – Climate Change Disclosures

The Canadian Institute of Chartered Accountants (CICA) has published a new document in response to a growing demand for guidance relating to Management Discussion and Analysis (MD&A) disclosures. The publication, Building a Better MD&A – Climate Change Disclosures, helps companies provide useful and relevant information to investors.

Open communications during IFRS transition process

In 2011, Canada will adopt International Financial Reporting Standards (IFRS) when Canadian Generally Accepted Accounting Principles (GAAP) for publicly-accountable enterprises migrate to IFRS. Companies need to tailor communications to stakeholders about the particular challenges that IFRS conversion presents. The Canadian Institute of Chartered Accountants (CICA) is providing guidance on how to provide useful information to investors in the period leading up to the changeover through a new publication titled: Pre-2011 Communications About IFRS Conversion.

Saratoga human capital effectiveness survey

The most successful organizations manage their human capital as a strategic asset by aligning the workforce with business objectives and using measurement to drive decisions, monitor performance and improve results. Each year, Saratoga, a PricewaterhouseCoopers (PwC) human capital measurement service offering, conducts its annual human capital effectiveness survey that reveals hundreds of metrics and thousands of unique benchmarks focused on productivity, turnover, staffing, labor cost, training, and HR cost and structure. This extensive report contains results from over 300 organizations throughout the United States, and provides organizations with the ability to make evidence-based decisions. A majority of participating organizations are in the Fortune 1000. (Read the executive summary or Listen to the Podcast.)

PwC's Technology Forecast, Fall 2008

Do more with less. Be more innovative. Manage continuous change. Anticipate market shifts. Bias investment toward differentiation. Standardize wherever possible to reduce costs. Deliver value from acquisitions. Make information a strategic weapon. Create a sustainable infrastructure. Be more agile. In scores of conversations with business and technology executives, it has become evident that many apparently unrelated initiatives share a common challenge: to manage them in an era of continuous change without tearing the organization apart by lurching from one initiative or crisis to the next. An evolving methodology can help anticipate market changes and assess their meaning for the enterprise as a whole before deciding whether an agile response is necessary. This emerging approach is a method for proceeding with investments with agility when they make sense and without causing more harm than the intended good. This approach fuses two key models and a growing trend which are discussed in PwC's Technology Forecast.

IASB Welcomes Move to IFRS in North America

Sir David Tweedie, Chairman of the International Accounting Standards Board (IASB), welcomes recent actions by authorities in Canada, the United States and Mexico regarding the adoption of International Financial Reporting Standards (IFRS). (Read the IASB Press Release.)

SEC Proposes Roadmap for Transition to IFRS

The US Securities and Exchange Commission (SEC) has released its long-awaited roadmap for US public companies to make the transition to International Financial Reporting Standards (IFRS). The SEC set a longer-than-expected 90-day comment period for the proposal, which puts forth milestones that, if met, could lead to the required use of IFRS by US issuers in 2014. The SEC is also seeking comment on two alternative proposals under which US issuers that elect to use IFRS would disclose US GAAP information. (Read a commentary on the proposals or obtain the SEC Roadmap.)

Fair Value: Clarifying the Issues

Drastic events in the credit markets have converted what used to be a technical issue in accounting - fair value - into a public debate and a point of bitter contention in the business community. A White Paper by PricewaterhouseCoopers (PwC) summarizes the key points of the debate and offers a balanced perspective on the issues. The Paper weighs the significant benefits and limitations of reporting fair value; both have been forcefully evident in the past year and continue to emerge. (Read the PwC Paper on Fair Value: Clarifying the Issues.)

PwC examples of good practice in corporate reporting

PricewaterhouseCoopers (PwC) maintains an online catalogue of examples of good practice in corporate reporting. Each example is accompanied by an introduction explaining why the example has been chosen, as well as a detailed commentary. The information is provided free of charge, following a simple registration procedure. Examples can be searched by industry, company name, country and category. They can also be downloaded and printed in PDF format. (Visit the PwC Corporate Reporting Website.)

Canada’s CAs providing assistance to help directors deal with financial crunch

The Chartered Accountants of Canada have released a new publication aimed at helping corporate directors understand the business implications of the global financial turmoil. The publication, which is titled Director Alert: The Global Financial Meltdown – Questions for Directors to Ask, highlights key topics for directors to consider to better understand their company's exposure and their own obligations. There are four categories of questions:
Uncertainty, Risk and Business Strategy; Financial Condition and Liquidity; Reporting and Disclosure; and Leadership and Corporate Governance.

IR Global Rankings

The IR Global Rankings is a comprehensive ranking system for IR website, corporate governance practices and financial disclosure procedures. Based on extensive proprietary research of public companies and investors, the methodology is detailed, transparent and completely accessible to all participants. The IR Global Rankings, supported by KPMG, Demarest & Almeida, Corporate Asia Network and Arnold & Porter, is a unique external review of any company’s communication process with analysts and investors worldwide.

KPMG International Survey of Corporate Responsibility Reporting 2008

The "KPMG International Survey on Corporate Responsibility Reporting" has recently been published. According to the survey, 80% of the Global Fortune 250 now release corporate responsibility information in stand alone reports or integrated with annual financial reports, up from 50 percent in the three years since KPMG last conducted its survey in 2005. In addition to the Global Fortune 250, the sample also included the 100 largest companies by revenue in 22 countries. National level companies trail the Global 250 with an average of 45% issuing reports, but numbers vary widely from country to country. For example less than 20% of large companies in Mexico and Czech Republic issue reports, but well over 90% of companies in Japan and the United Kingdom do so.

XBRL: Steps Toward an Implementation Plan

In May 2008, the US Securities and Exchange Commission (SEC) issued rule proposals that would require all companies applying US GAAP or IFRS to begin using XBRL within the next three years. As the proposed deadline for implementation nears, it is apparent there is a need for a greater awareness and deeper understanding about the costs and benefits XBRL offers. A new publication by PricewaterhouseCoopers (PwC) discusses what companies can do now to ensure they are prepared to implement XBRL. (Read the publication XBRL: Steps Toward an Implementation Plan.)

Global framework for communicating non-financial information

A new framework has been developed by the World Intellectual Capital Initiative (WICI) to improve communications between a company and its stakeholders about the nonfinancial factors contributing to its market value. WICI is a global business reporting network of public-sector and private-sector interests, of which the American Institute of Certified Public Accountants (AICPA) is a member through the Enhanced Business Reporting Consortium. WICI has also developed an eXtensible Business Reporting Language (XBRL) taxonomy to support the framework, which considers business strategy, personnel, research and development, customer base and other nontangible factors as part of business reporting. Read the AICPA's news release and view the WICI presentation.

AR Trends 2008 and CSR Trends 2008

Two surveys of current practice have recently been published. AR Trends 2008 surveys Canadian and global annual reports (view the presentation) and CSR Trends 2008 surveys Canadian and global corporate social responsibility reports (CSR)/sustainability reports (view the presentation). The surveys are available online.

Mandating IFRS: Its impact on the cost of equity capital in Europe

New research commissioned by the Association of Chartered Certified Accountants (ACCA) shows that economies where equity-based financing and high standards of accounting disclosure are common, have benefited most from the adoption of International Financial Reporting Standards (IFRS). The results show that IFRS has already brought significant effects, that they are not uniform across Europe, and variations are not in the direction which some expected. The major positive effects are in those countries, such as the UK, where an equity investor-friendly environment already exists. (Visit the ACCA webpage and read ACCA Research Report No. 105.)

IFRS Guidance for Federally Regulated Financial Institutions

On October 7, 2008, the Office of the Superintendent of Financial Institutions (OSFI) issued a letter providing further guidance on the content of the semi-annual reports to be filed by Federally Regulated Financial Institutions (FRFIs) on their progress transitioning to IFRS and commenting on the applicability of the CSA disclosure requirements for the changeover to IFRS. (Read the OSFI Letter.)

Implementation of IFRS in the UK, Italy and Ireland

The Institute of Chartered Accountants of Scotland (ICAS) has published a report on The Implementation of IFRS in the UK, Italy and Ireland. The report examines: the resultant changes in financial reporting, in terms of the additional disclosures and the impact of IFRS on profit and equity; the costs involved in implementation of IFRS; the most problematic international accounting standards for adopters; and the usefulness of the resulting IFRS information from the perspective of preparers and users. (Read the Executive Summary or the Full Report available on the ICAS website.)

Leading by Example: Key Developments in the First Seven Years of PIPEDA

The Office of the Privacy Commissioner of Canada recently released the publication Leading by Example. Reviewing leading cases, the 63-page book is designed to help businesses comply with the Personal Information Protection and Electronic Documents Act (PIPEDA) and improve their privacy practices.

Fair Value Accounting: Statement by Paul Cherry, Chair, Canadian Accounting Standards Board

The clarification issued this week by the US Securities and Exchange Commission's Office of the Chief Accountant and the staff of the Financial Accounting Standards Board in relation to fair value accounting requirements is consistent with Canadian accounting standards. In Canada, the Accounting Standards Board has already issued three staff commentaries to help companies apply fair value accounting requirements when dealing with this country's own liquidity crunch. These commentaries provided guidance on how to report to investors on their holdings of Asset-Backed Commercial Paper (ABCP). The first was issued almost a year ago. (View the CICA Media Release and ABCP Commentary.)

CSA Proposals in Response to the Credit Market Turmoil

The Canadian Securities Administrators (CSA) have issued a Consultation Paper outlining several securities regulatory proposals related to the Canadian non-bank sponsored asset-backed commercial paper (ABCP) market. Shortly after events in international credit markets led to a seizure of the non-bank sponsored portion of the ABCP market in Canada, the CSA took a number of immediate steps, which included the formation of an ABCP working group to address securities regulatory issues stemming from the credit market turmoil. Those issues are examined in the CSA Consultation Paper.

SEC Roundtable on Modernizing Disclosure Systems

On October 8, 2008, the US Securities and Exchange Commission (SEC) is holding a Roundtable on Modernizing the Securities and Exchange Commission's Disclosure Systems (view the list of panelists & detailed agenda). A related SEC Notice/Request for Comment on the “21st Century Disclosure Initiative” proposes an entirely new model for the SEC’s disclosure system, including the “Company File System” approach (view the FAQ’s and Strategic Plan).

XBRL Around the World

XBRL is evolving everywhere, driven by various stakeholders such as governments, stock exchanges, banks and other industry sectors. While the Securities and Exchange Commission (SEC) has been finalizing its proposed rule requiring public companies and mutual funds to file their financial reports in interactive data, this article puts the progress in a global context. (Read the Journal of Accountancy article XBRL Around the World.)

Under the Spotlight: The Transition of Environmental Risk Management

In a recent survey, 320 risk managers around the world were asked to provide current thinking around environmental risk management and the approaches that companies are taking to identify, assess and manage the risks that they face within their organization and among their broader partner networks and supply chain. The key findings include: (1) Environmental risk is frequently managed in an ad hoc fashion. (2) There is no clear consensus about who should be responsible for environmental risk. (3) Many companies conduct strategic activities without a formal assessment of environmental risk. (4) Compliance with environmental legislation is a key strength. (5) Managing environmental risks associated with suppliers and partners is a key area of weakness. (6) Better reputation with customers and investors is seen as the main benefit of environmental risk management. (7) Climate change is an opportunity as well as a risk. (8) Lack of certainty about the impact of environmental liabilities and the future scope of legislation are the main obstacles to effective environmental risk management. (Read the report Under the Spotlight: The Transition of Environmental Risk Management.)

Clarifications on Fair Value Accounting

The current market environment makes the determination of fair value particularly challenging for preparers, auditors and users of financial information. In the United States, the Securities and Exchange Commission (SEC) and the Financial Accounting Standards Board (FASB) have engaged in extensive consultations with participants in the capital markets including investors, preparers and auditors, on the application of fair value measurements. The FASB will propose additional interpretative guidance on fair value measurement under US GAAP later this week. (Read the SEC Press Release.)

US Advisory Committee on the Auditing Profession

The US Treasury Department's Advisory Committee on the Auditing Profession has adopted its Draft Final Report containing more than 30 recommendations to improve the sustainability of the public company auditing profession. Recommendations focus on three specific areas: improving accounting education and strengthening human capital; enhancing auditing firm governance, transparency, responsibility, communications and audit quality; and increasing audit market competition and auditor choice. For more information, see the Press Release and Final Report Fact Sheet.

About the Canadian Internet Project

The Canadian Internet Project (CIP) is a study of trends in the use of the Internet, traditional media and emerging technologies by Canadians, as well as their attitudes towards media and online activities. CIP examines patterns of use across all media and technologies, with emphasis on the economic, cultural and social implications of these transformations. CIP is a partner in the World Internet Project (WIP), an academic consortium of research centres in more than two dozen countries around the world. Annually, WIP convenes an international conference and publishes an international report comparing data from member countries.

Filling the GAAP to IFRS: Teaching Supplements for Canada's Accounting Academics

The Chartered Accountants of Canada are preparing a series of teaching supplements to provide Canadian academics with teaching support for the next two years, as IFRS materials are fully integrated into all accounting textbooks. The supplements highlight the impact of IFRS on each topic generally covered in undergraduate accounting courses. They are being developed with assistance from IFRS experts from Deloitte, Ernst & Young, KPMG and PricewaterhouseCoopers. (Teaching Supplement CD1 - Filling the GAAP to IFRS is available on the CICA website.)

IFAC Global Leadership Survey

In 2007, the International Federation of Accountants (IFAC) conducted its first annual Global Leadership Survey of the presidents and chief executives of its members, associates and regional accountancy bodies. The survey highlights issues that the accountancy profession needs to address, as well as national and regional perspectives on economic growth and the profession’s role in contributing to that growth. In total, 115 IFAC member bodies and associates from 91 countries, as well as six regional accountancy bodies, participated in the survey. A summary of findings and a breakdown of results by question are available on the IFAC website.

PwC - Financial Reporting Release August 2008

PricewaterhouseCoopers (PwC) has released the August 2008 issue of Financial Reporting Release. Some of the topics covered are the future of IFRS, Canadian GAAP until the transition to IFRS, CSA views on transitioning to IFRS, IFRS for extractive and rate-regulated enterprises, Canadian GAAP for private enterprises, fair value accounting, complexity in accounting for financial instruments, not-for-profit organizations, emerging issues committee abstracts, and IASB projects in the pipeline.

Statement by G-7 Finance Ministers and Central Bank Governors on Global Financial Market Turmoil

The G-7 held a conference call today to discuss global financial markets. It reaffirms the strong and shared commitment to protect the integrity of the international financial system and facilitate liquid, smooth functioning markets, which are essential for supporting the health of the world economy. (Read the News Release.)

10Minutes on Fair Value in Financial Reporting

In recent months, severe and progressive declines in the credit markets have rattled the economy, converting what used to be a technical issue into a full-blown public debate: when and how should fair value be developed and reported? A recent publication by PricewaterhouseCoopers called 10Minutes on Fair Value in Financial Reporting clarifies this complicated issue from the perspective of CEOs, CFOs and board members. It also shares ideas for a practical path forward and highlights what companies can do now to improve how fair value is reported to investors.

XBRL Canada to Host Session on Interactive Data, its Adoption and Effect on Canadian Companies

XBRL Canada will discuss recent proposals by the US Securities and Exchange Commission (SEC) for the mandatory use of “Interactive Data” or XBRL (eXtensible Business Reporting Language) during an event September 24, 2008 at the Metro Toronto Convention Centre. The full agenda and registration for the free event is on the XBRL Canada website.

Canada's Minister of Finance Issues Statement on Global Market Developments

The Honourable Jim Flaherty, Canada's Minister of Finance, has issued the following statement: "Canada continues to weather the global financial market turbulence better than many other countries. I would emphasize that Canada’s banking and insurance industries are well capitalized and our financial system is sound. The International Monetary Fund has determined that Canada’s financial system is resilient and that the stability of our system is well supported by sound macroeconomic policies and strong prudential regulation and supervision." (Read the News Release.)

Top Ten Concerns of CFOs

In the most recent Business Outlook Survey by CFO Europe, Tilburg University and Duke University, the soaring price of petrol was the fastest-climbing concern among more than 1,000 finance chiefs polled around the world, now ranking second on the list of external worries in Europe, Asia and the US. Dwindling consumer demand remains the top concern across the regions, as it has been for several quarters. (Read the full article Top Ten Concerns of CFOs.)

Corporate Reporting to Stakeholders

Corporate reporting in Canada has changed dramatically since the CICA Corporate Reporting Awards (CRA) program was launched in 1951. A new research study on Corporate Reporting to Stakeholders aims to promote effective communication between a company and its stakeholders by providing useful guidance to preparers of corporate reports. The study was prepared by current and former CRA judges.

It is based on an in-depth review of the annual reports and websites of 125 companies that have participated in the CRA program. This study examines practices and significant trends in corporate reporting by analyzing:

• more than 50 different types of information disclosed in 2004-2005 annual reports;
• major changes in the 2004, 2005 and 2006 annual reports of award-winning companies;
• information content, presentation and navigation on company websites in 2007.

SEC Announces Successor to EDGAR Database

The US Securities and Exchange Commission (SEC) Chairman Christopher Cox has unveiled the successor to the agency’s 1980s-era EDGAR database, which will give investors far faster and easier access to key financial information about public companies and mutual funds. The decision to replace EDGAR marks the SEC's transition from collecting forms and documents to making the information itself freely available to investors to give them better and more up-to-date financial disclosure in a form they can readily use. The new system is called IDEA, short for Interactive Data Electronic Applications. Based on a completely new architecture being built from the ground up, it will at first supplement and then eventually replace the EDGAR system. (Read the SEC's On-Line News Release which includes links to a video demonstration of IDEA.)

IASC-IASB chronology

Deloitte has published an updated Chronology of the IASC and the IASB to reflect recent events, exposure drafts, final standards and interpretations. The chronology dates back to 1966.

Canada's Expert Panel on Securities Regulation

The Expert Panel was announced by the federal Minister of Finance on February 21, 2008 to provide advice on the best way forward to improve securities regulation in Canada. The Panel held a series of cross-country, face-to-face meetings involving a wide range of stakeholders in Canada’s capital markets. A summary of these consultations reflects the themes, issues and a range of answers to questions posed by the Panel in their public consultation document. As well, the Panel invited input through its website. More than 70 formal submissions have been received. The Stakeholder Report and written submissions are available on the Panel’s website.

Canada - Disclosing IFRS changeover plans in the MD&A

The conversion of Canadian standards to International Financial Reporting Standards (IFRS) is likely to cause significant changes in the financial reporting practices of publicly accountable entities regulated by the Canadian Securities Administrators (CSA). In Staff Notice 52-320, Disclosure of Expected Changes in Accounting Policies Relating to Changeover to International Financial Reporting Standards, the staff of the CSA provides guidance on their expectations. Disclosure of changeover plans is expected for entities that at the time of issuing an interim MD&A have developed a changeover plan, but in no case should that discussion be provided later than in the annual MD&A published for the period three years before the changeover date. For most entities, this means the annual MD&A for 2008, with consideration to be given to quarterly disclosures during 2008. For additional insight, read the Deloitte Canada publication How to Monitor a Sea Change: Discussing your IFRS changeover plan in the MD&A.

SEC Advisory Committee Makes Recommendations to Improve Financial Reporting for Investors

The Chairman of the US Securities and Exchange Commission (SEC), Christopher Cox, has received the final report of an SEC advisory committee containing 25 recommendations to make financial information more useful and understandable to investors. (Read the SEC Press Release.)

Corporate Reporting: Trends and Tensions in Convergence

Deloitte Touche Tohmatsu recently contributed a paper to the International Corporate Governance Network (ICGN) 2008 Yearbook on Corporate Reporting: Trends and Tensions in Convergence. The paper focuses on the evolution of accounting standards and the issues associated with convergence and adoption of International Financial Reporting Standards (IFRS).

Living Up to the Spirit of Narrative Reporting Guidance

Regulators often say financial reporting should tell a story about a company. Yet, the MD&A provided by some US companies often presents reporting that falls short of the spirit of the MD&A regulations. Until now, the consequences of this have been limited. Nonetheless, in an increasingly global capital market, US companies may find capital more expensive — and more difficult to attract — if their narrative reporting is less transparent than that provided by foreign competitors. (Read the CPA Journal article Living Up to the Spirit of Narrative Reporting Guidance: Improving MD&A by Looking to Global Best Practices.)

SEC Announces "21st Century Disclosure"

The US Securities and Exchange Commission (SEC) has announced an ambitious effort to examine fundamental questions about the way it acquires information from public companies, mutual funds, brokers, and other regulated entities, and the way it makes that information available to investors and the markets. The study will review all existing SEC reporting requirements, with a special focus on needless redundancy. It will also consider ways to get the best real-time distribution of financial and narrative disclosure to investors. Finally, the study will examine how best to integrate public disclosure with the SEC's proposed new post-EDGAR architecture for investor search, assembly, and comparison of data. (View the SEC Press Release.)

SEC Advisory Committee on Improvements to Financial Reporting

The US Securities and Exchange Commission (SEC) Advisory Committee on Improvements to Financial Reporting will meet on July 11, 2008. It is slated to vote on the recommendations contained in the Draft Final Report. According to its charter, the committee will terminate on August 2, 2008. (View the Agenda for the meeting and the Project webpage.)

CSA update on continuous disclosure obligations

The Canadian Securities Administrators (CSA) has published an unofficial consolidation of all amendments to National Instrument 51-102 Continuous Disclosure Obligations, its forms and its companion policy current to July 4, 2008. This document is for reference purposes only and is not an official statement of the law.

PwC corporate reporting blog

PricewaterhouseCoopers (PwC) launched the PwC Corporate Reporting Blog last year in recognition of the growing importance and rapid changes in this area. The blog is aimed at those with responsibility for communicating and analyzing corporate performance. It is updated twice a month with topics on corporate reporting and issues that companies, investors and other interested parties should be aware of. Recent topics have included: thoughts on cash reporting in the current economic climate and insights on sustainability reporting as the credit crunch continues to influence behaviour.

CFO Beyond-GAAP Briefing: Forward-Looking Information

Recent changes to Canadian securities laws emphasize the importance of exercising appropriate due diligence when disclosing forward-looking information. Many public companies have revised forward-looking information disclosure practices to take advantage of the safe-harbour provisions in civil liability legislation. Similar practices are now required for all material forward-looking disclosures. (Find out more in CFO Beyond-GAAP Briefing: Forward-Looking Information.)

FEI establishes Corporate Roundtable on International Financial Reporting

Financial Executives International (FEI) has announced the formation of a new national coalition, the Corporate Roundtable on International Financial Reporting (CRIFR). It will provide a forum for companies of all sizes to discuss business issues related to the promulgation, implementation and convergence of International Financial Reporting Standards (IFRS) by US companies. (Read the FEI Press Release.)

SEC hosts roundtable on Interactive Data

The US Securities and Exchange Commission is hosting an International Roundtable on Interactive Data for Public Financial Reporting on June 10, 2008. The Roundtable follows the issuance on May 30, 2008, of a Proposed Rule on Interactive Data to Improve Financial Reporting. (Read the SEC Press Release.)

FEI - Financial Reporting Portal

Find news highlights from the International Accounting Standards Board, FASB and SEC on this "fei financial reporting blog" from the Financial Executives International. The site compiles hot topics from the Web’s largest business and accounting publications and organizations. Look for continuing coverage of fair value reporting and international convergence.

FRC issues discussion paper on cost-effective regulation

The UK Financial Reporting Council (FRC) has issued a discussion paper on improving the cost-effectiveness of regulation. Proposals include a major project to review the relevance and complexity of corporate reporting and the FRC's continuing work to promote cost-effectiveness in the development of international accounting and auditing standards. For more information, visit the FRC website.

New interactive IFACnet search engine launched

The International Federation of Accountants (IFAC) has recently enhanced IFACnet, a global, multilingual search engine. The search engine allows easily access to a wide range of resources and information developed by professional organizations worldwide, through a redesigned IFACnet search results page. In addition, IFACnet users can now share links to relevant resources with their colleagues and provide feedback.

AICPA launches IFRS.com website

The American Institute of Certified Public Accountants (AICPA) has announced the introduction of IFRS.com, a new website developed in partnership with its marketing and technology subsidiary CPA2Biz to help members and financial professionals learn about and stay informed on International Financial Reporting Standards (IFRS). (Read the AICPA Press Release.)

SEC Advisory Committee on Improvements to Financial Reporting

The US Securities and Exchange Commission (SEC) Advisory Committee on Improvements to Financial Reporting met on May 2, 2008. At the meeting, the advisory committee received the interim reports of four subcommittees: Report of the Substantive Complexity Subcommittee, Report of the Standards-Setting Subcommittee, Report of the Audit Process and Compliance Subcommittee and the Report of the Delivering Financial Information Subcommittee. (View the Agenda for the meeting and the Project webpage.)

Canadian Securities Administrators address IFRS disclosure requirements

The Canadian Securities Administrators (CSA) has issued a staff notice addressing IFRS pre-adoption disclosure requirements for Canadian reporting issuers. CSA Staff Notice 52-320 Disclosure of Expected Changes in Accounting Policies Relating to Changeover to IFRS marks another significant step in Canada’s transition. The CSA is a forum for the 13 securities regulators of Canada's provinces and territories to coordinate and harmonize regulation of the Canadian capital markets.

XBRL: Not Just for External Reporting

XBRL is not just for financial reporting by public companies. It promises to be for business reporting what the Universal Product Code (UPC) has become for retailers -- a means of standardizing, managing and simplifying processes. Read the article XBRL: Not Just for External Reporting featured in Financial Executives magazine and available on the PricewaterhouseCoopers website.

IFAC global survey on financial reporting

The International Federation of Accountants (IFAC) has published the results of a 2007 global survey on the Financial Reporting Supply Chain. The report addresses corporate governance, the financial reporting process, the audit of financial reports and the usefulness of financial reports. IFAC has launched a new project to analyze current actions to address the suitability of business reporting and to identify areas for future development. This project will take the findings of the report to the next stage and develop specific recommendations for further action. For more information, refer to the Financial Reporting Supply Chain project page.

Climate Change and Related Disclosures

Governments around the globe are taking action to address the causes of climate change. This includes instituting carbon taxes, regulating emissions reduction targets and introducing emissions trading systems. The Canadian Institute of Chartered Accountants (CICA) has issued a document pointing out that, at the company level, climate change is a business and shareholder value issue involving strategy, risk management and financial performance. (View the CICA executive briefing on Climate Change and Related Disclosures.)

Financial and Business Reporting on the Internet

A new publication offers guidance to assist companies in developing effective investor relations sections for their websites. The Discussion Brief titled “Financial and Business Reporting on the Internet” is a joint publication by the Canadian Institute of Chartered Accountants (CICA) and the Canadian Investor Relations Institute (CIRI). Preparation of the document drew on the web-reporting practices of leading companies that participated in the CICA’s annual Corporate Reporting Awards.

IASC Foundation publishes IFRS Taxonomy 2008

The IASC Foundation’s XBRL Team has announced the release of the near final version of the IFRS Taxonomy 2008. The taxonomy is a complete translation of IFRS as published in the IFRS Bound Volume 2008 into XBRL and is published in the same languages as the IFRS Bound Volume 2008 (View IASB Press Release or visit the IFRS Taxonomy 2008 project webpage.)

Adopting IFRS in Canada - Omnibus Exposure Draft

Canada’s Accounting Standards Board (AcSB) has issued an omnibus Exposure Draft proposing to incorporate International Financial Reporting Standards (IFRS) into the CICA Handbook. IFRS would serve as a replacement for current Canadian GAAP for most publicly accountable enterprises effective for fiscal years beginning on or after January 1, 2011. The comment deadline is July 31, 2008. (View the Exposure Draft.)

IFRS Conference North America - April 24-25, 2008

The IFRS – North America Conference is a joint presentation by The International Accounting Standards Committee (IASC) Foundation and The Canadian Institute of Chartered Accountants (CICA). It is a significant international event being held in Toronto, Canada, bringing Sir David Tweedie, Chairman of the International Accounting Standards Board (IASB), and other members of the IASB to North America. Other speakers include senior representatives from the Canadian Accounting Standards Board (AcSB), the US Financial Accounting Standards Board (FASB), regulators from Canada and the United States, and international financial reporting experts. For complete conference details and to register on-line, go to the conference-exclusive website (www.cpd.cica.ca/IFRSNA).

Recasting the Reporting Model

A February 2008 article by PricewaterhouseCoopers discusses the complexity of today's reporting model and the need for a new market-driven blueprint for reporting. This point-of-view article suggests a set of parameters for "high quality corporate reporting." (View Recasting the Reporting Model.)

IASB paper on complexity in reporting financial instruments

The IASB has published for public comment a discussion paper Reducing Complexity in Reporting Financial Instruments. The existing requirements for the reporting of financial instruments are widely regarded as difficult to understand, interpret and apply, and constituents have urged the IASB to develop standards that are principle-based and less complex. (View the Press Release, Discussion Paper or IASB webpage to provide comments.)

SEC Advisory Committee on Financial Reporting

The US Securities and Exchange Commission (SEC) Advisory Committee on Improvements to Financial Reporting met on March 13-14, 2008 in San Francisco. It discussed the proposals published on February 14, 2008 as part of the Progress Report to the SEC. The discussion focussed on restatements, professional judgment and XBRL. (View the Agenda for the meeting and the Project webpage.)

IASC Foundation XBRL Update

The IASC Foundation has published the XBRL Update newsletter for March 2008. It provides information on the XBRL-enablement of IFRS around the world including Belgium, Europe, India, Ireland, Israel, Japan, Singapore and United States. To subscribe to the newsletter, visit the IASCF XBRL webpages.

CICA Research Study - Corporate Reporting to Stakeholders

The CICA has released a discussion draft of the research study on Corporate Reporting to Stakeholders. The primary purpose of this research is to promote effective communication by providing helpful guidance for comprehensive and integrated corporate reporting. A secondary purpose is to suggest how useful information can be communicated. (View the research project webpage or download Corporate Reporting to Stakeholders.)

SEC launches Financial Explorer data analysis tool

The US Securities and Exchange Commission (SEC) has announced the launch of the “Financial Explorer” on the SEC Web site to help investors quickly and easily analyze the financial results of public companies. Financial Explorer paints the picture of corporate financial performance with diagrams and charts, using financial information provided to the SEC as “interactive data” in eXtensible Business Reporting Language (XBRL). (View the SEC Press Release or examine the Financial Explorer.)

Corporate Reporting on the Internet - Company Perspective

According to Microsoft, the new Investor Central website will help investors better understand its business strategies and financial results. The site takes advantage of new technologies (like XBRL). It also allows users to click on many of the line items in the financial statements for additional information, and to move back and forth easily between views. Microsoft is participating on the SEC Advisory Committee on Improvements to Financial Reporting, which has the task of identifying ways to improve the transparency of corporate financial reporting.

Investor Perspectives on IFRS Implementation

The Association Française de la Gestion financière / French Asset Management Association (AFG) and the Fédération Française des Sociétés d’Assurances / French Insurers’ Association (FFSA) recently published a report Investor Perspectives on IFRS Implementation. The overall conclusions are in phase with the results of the collection of essays published in 2004 by the AFG and FFSA: adoption of IFRS is good news for investors assuming that consistent practices emerge in terms of implementation – a condition which, two years after first-time adoption, has still not really been met.

Canada’s corporate reporting getting better every year

According to CICA’s Corporate Reporting Awards (CRA), annual reports of Canada’s public companies are getting bigger, bolder and better. To provide clear guidance on the information needs of primary users — investors — the CICA will soon publish a comprehensive research study, Corporate Reporting to Stakeholders. The study, prepared by current and former CRA judges, is accompanied by a survey of content of annual reports and websites of 125 companies that have participated in the awards. (View the online article in CAmagazine, January/February 2008.)

Principles-based standards and capital-market stakeholders

On January 15, 2008, the world’s six largest audit and accounting networks hosted the fourth Global Public Policy Symposium in New York. At this meeting, approximately 300 investors, regulators and standard-setters from around the world came together to discuss a series of issues key to the capital markets. A white paper on Principles-Based Accounting Standards was formally released by the CEOs of the international audit networks. The firms believe a commonly-accepted framework on the development of principles-based standards is essential as more countries adopt IFRS.

Addressing complexity in US financial reporting

In 2007, the US Securities and Exchange Commission formed the SEC Advisory Committee on Improvements to Financial Reporting to study the causes of complexity in the US financial reporting system. On January 11, 2008, the Advisory Committee held its third meeting and made tentative decisions on proposals set out in a Draft Decision Memo. The Advisory Committee plans to publish its final recommendations in the third quarter 2008. (Visit the Advisory Committee's Web Page on the SEC website.)

New rules for earnings guidance and forward-looking information

The Canadian Securities Administrators (CSA) has amended the rules for disclosure of material forward-looking information. The amendments streamline and consolidate disclosure requirements for financial outlooks and future-oriented financial information; ensure such disclosures have a reasonable basis; require issuers to provide more transparency when explaining updates and withdrawals; and clarify their purpose and timing. The new requirements are effective December 31, 2007.