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.