Canada – Evolution of Accounting Standards

As the end of the first decade of the new millennium draws to a close, it is time to review the current status of standard-setting activities in Canada, ponder the future and reflect on the past. A special edition of FYI Accounting Standards, a periodic newsletter issued by staff of the Canadian Accounting Standards Board (AcSB), describes the implementation of the new strategic plan for publicly-accountable enterprises, private enterprises and not-for-profit organizations.

The FYI newsletter explains the changes in the accounting standards applicable to each type of reporting entity by listing those amendments to the CICA Handbook-Accounting that took effect in 2009 or that have been issued but are not yet effective. It also notes that the AcSB expects to include International Financial Reporting Standards (IFRS) in the Handbook early in 2010. In that regard, it lists amendments to IFRS that are effective for 2009, issued but not yet effective, and expected to be issued in 2010.

Migrating to IFRS will mean significant changes to both the accounting standards and the due process for developing future standards. Lest we forget, the standard-setting processes in Canada have evolved considerably over the years (as explained in CAmagazine articles spanning the period from 1976 to 1992). The evolution continues…

IASB work plan - projected timetable and access to IFRS

The International Accounting Standards Board (IASB) projected timetable shows the current best estimate of document publication dates. The effective date of amendments and new standards is usually 6-18 months after publication date, although in setting an effective date the IASB considers all relevant factors. In appropriate circumstances, early adoption of new standards will be allowed. The work plan anticipates the completion of several projects in 2010 and 2011. The IASB will consider staggering effective dates of standards to help entities that apply IFRS undertake an orderly transition to any new requirements. The IASC Foundation provides free-of-charge access to the current year’s consolidated unaccompanied International Financial Reporting Standards (IFRS) in English as issued by the International Accounting Standards Board (IASB) and published in the Bound Volume.

IASB - Global convergence of IFRS

The goal of the IASC Foundation and the International Accounting Standards Board (IASB) is to develop, in the public interest, a single set of high quality global accounting standards. In pursuit of this goal, the IASB works in close cooperation with stakeholders around the world, including investors, national standard-setters, regulators, auditors, academics and others who have an interest in the development of high quality global standards. Progress toward this goal has been steady. Since 2001 more than 100 countries require or permit the use of International Financial Reporting Standards (IFRS), while the remaining major economies have established timelines for convergence with, or adoption of, IFRS. (Visit the IASB website for the current status of global convergence along with IFRS adoption and use around the world.)

How to Use Social Media to Retain Customers

There are many times or reasons that a small business will receive an influx of new customers -- such as around the holidays for retail stores, during a new product or service launch, or after a local advertising campaign. While new customers are great, returning customers are even better. Social media offers a number of opportunities to turn new and existing customers into repeat customers and fans. (Read the article How to Use Social Media to Retain Customers at OPEN Forum online.)

Guidelines for Shaping Social Media Posts

In an article How to Create Social Media Guidelines for Your Organization, technology forecaster Dan Burrus explains why social media (such as blogs, Twitter, Facebook and LinkedIn) is not about the media, it's about the social aspect – getting people to talk about issues important to them and their business. When used effectively, social media can create a productive dialogue with prospects and clients.

A guide to IT management strategies, terms and practices

SearchCIO has compiled answers to frequently asked questions about information technology management to keep chief information officers up-to-date. The guide covers key terms and strategies and provides commentary and links about the IT Infrastructure Library, lean thinking, Six Sigma, Agile development and change management. (Read IT management FAQ guides for enterprise IT strategies at SearchCIO online.)

CIRI Congratulates the 2009 Corporate Reporting Award Winners

The Chartered Accountants of Canada held the 2009 Corporate Reporting Awards on December 8, 2009. For 58 years these awards have recognized Canadian organizations who strive to promote best practices in all areas of corporate reporting. It is no coincidence that all 12 Canadian public companies who won awards this year are also members of the Canadian Investor Relations Institute (CIRI). CIRI is dedicated to advancing the stature and credibility of the investor relations profession and the competency of its members. (Read the CIRI online newsletter article congratulating all the winners.)

Taking on the World – Positioning Canadian Private Companies for Global Success

To gain an understanding of the growing trend to global expansion and gauge what Canadian private companies are up against in foreign markets, KPMG undertook its second annual national survey to explore Canadian private companies’ success. Private company executives were asked about their current experiences and future plans for expansion. The KPMG report documents the extent of private companies' foreign operations to date; sheds light on the benefits of global expansion for private companies, and the key challenges and risks of doing so; and provides information about local employee and supply resources in foreign markets. (Read the KPMG report Taking on the World – Positioning Canadian Private Companies for Global Success.)

Global Risk Management Study

This 2009 Global Risk Management Study by Accenture helps to understand the issues around enterprise risk management in the current economic downturn. The report outlines eight primary lessons to be drawn and the most important keys to achieving high performance through an improved risk management function. The key findings are as follows: 

• About half believed their company was well prepared to face the economic turmoil.
• More than 85% indicated that their risk management capabilities needed to change.
• 42% pointed to the need for better integration of risk, finance and business data.
• 80% say that poor data quality, inefficient reporting and fragmented systems are increasing the cost of risk management.
• Risk managers spent only 20% of their time advising business units.
• More than 70% have increased or plan to increase spending on risk management.

Privacy guidelines take aim at identity theft and security breaches

The Canadian Institute of Chartered Accountants (CICA) and the American Institute of Certified Public Accountants (AICPA) have expanded their privacy framework to include guidance for securing personal information. The changes address best practices for securing portable devices and ensuring the strength of privacy controls. The guidance also covers disposal and destruction of personal information. (Read the article Guidelines Aimed at Thwarting ID Theft, Security Breaches Unveiled at Journal of Accountancy online.)

Canada - Voluntary Sector Reporting Awards

The winners of the second annual Queen's University Voluntary Sector Reporting Awards (VSRAs) were announced at a luncheon ceremony in Toronto on November 20, 2009. At a time when financial reporting is becoming increasingly important to organizations of all types and sizes, the VSRAs recognize those organizations within Ontario’s diverse and growing not-for-profit sector that have achieved best practices. (Further information about the awards program is available on the Queen's University website. )

Canada - The business of climate change

Climate change is a global business issue of unprecedented significance, affecting entities of all sizes in all sectors. Unlike the recent recession and financial crisis, from which most economies will gradually recover in time, climate change as a formidable business issue is here to stay. It is multidimensional, evolving and complex, presenting new aspects and challenges as time goes by. Risks related to climate change may be physical, regulatory, reputational or legal. Some companies face mitigation risks related to their obligations and expectations about reducing their emissions of greenhouse gases (GHG). The risks faced by others may be related more to the impact of climate change on their business operations and the need to adapt accordingly. Companies’ effectiveness in identifying and addressing climate change risks (and opportunities) and their implications for business strategy is itself an important and distinguishing competitiveness factor. (Read the articles on The business of climate change and Toward the Green Deal in the December 2009 CAmagazine online.)

Canada - PotashCorp big winner at Corporate Reporting Awards

PotashCorp captured five awards, including the Overall Award of Excellence at the Corporate Reporting Awards presented yesterday in Toronto by the Chartered Accountants of Canada. The program has recognized excellence in financial and corporate reporting in Canada for more than 50 years. The awards are presented annually and reflect the CA profession’s commitment to enhancing the quality of financial reporting. (Read the CICA Media Release and the Book of Judges’ Comments for the 2009 Corporate Reporting Awards.)

Global sustainability survey 2009

According to The Sustainability Survey 2009 by SustainAbility/GlobeScan, addressing climate change requires both government and corporate leadership. Failure to reach global agreement in Copenhagen in December 2009 is expected to severely increase the likelihood of catastrophic climate change and new technology is seen as key to addressing climate change. In total, 1,691 sustainability experts from corporate, government, non-governmental, academic/research and service (e.g., consulting) organizations from more than 90 countries responded to the survey.

Canada - What makes for an award-winning IR website?

On December 8, 2009, the Canadian Institute of Chartered Accountants (CICA) Corporate Reporting Awards will recognize excellence in electronic disclosure practices (based on established criteria). Many of the winners tend to be large-cap companies with abundant resources to devote to the development and maintenance of their IR website – for example, PotashCorp, Telus, BMO and Nexen. Some of the “best practices” that differentiate these websites are easily attainable and provide investors with the information they need – in a user-friendly format – to enable them to make an informed investment decision. (Read the article, What makes for an award-winning IR website? at IRmatters.com)

Optimizing Business Websites for Mobile Visitors

Mobile web usage is exploding. As smartphone ownership surges, more and more consumers are using devices like the iPhone to find information and access the web. More and more consumers buy products and do research from their phones than ever before. Although there are still no “official” standards for mobile web development, more and more smartphones and smartphone operating systems are following the iPhone’s lead and using a technology called WebKit to render and display web pages. What this means is that a web page built to look good on an iPhone will look about the same on a Google Android device, a Palm webOS phone, and soon, BlackBerry devices. (Read the article Optimizing Your Business Website for Mobile Visitors at OPEN Forum online.)

How Public Companies are using Twitter for Investor Relations

In August 2009, Q4 Web Systems issued a research report which analyzed 80 public companies and their use of Twitter during the second quarter 2009 earnings season. Recent research shows that the number of public companies who have a Twitter account has grown by 270 or 338%. Of the 270 new companies, the number using Twitter for investor relations increased by 77 or 175%. Although still small in terms of the potential universe, the research indicates that social networks are an effective medium to reach out and interact with stakeholders. (Read the research report on Public Companies and their use of Twitter for Investor Relations at the online Q4 blog.)

Made to Stick: Writing a Mission Statement

Dan Heath, co-author of Made to Stick, speaks about writing meaningful mission statements to lead your business. OPEN Forum gives businesses the tools to connect and collaborate. Exclusive articles, videos, discussion boards and events listings can help businesses get informed and inspired.(View this featured video called Made to Stick: Writing a Mission Statement from OPEN Forum.)

UK - Taking climate change one step at a time

The Copenhagen climate change summit takes place from December 7, 2009, with environment ministers and officials gathering to try and agree on a successor to the Kyoto protocol of 1997. As the politicians debate international action against climate change, what steps can businesses take to reduce their own carbon footprints? (Read the article One step at a time in CA Magazine online.)

US - XBRL tagging responsibility rests with filing companies

At the XBRL US National Conference in New York in mid-November 2009, panelists said the onus for Extensible Business Reporting Language (XBRL) tagging lies with filing companies and that efforts need to be made to outline tagging guidelines. Such best practices may prove tricky because many of the companies that outsourced the tagging on their early filings might not have documented their processes so they could be consistent in the future. (Read the article Panelists Advise Companies to Take Responsibility for XBRL Tagging—Even When Outsourcing in Journal of Accountancy online.)

Canada - PwC and Craib publish survey on CSR Trends 3

Our planet is changing and so is the way business is conducted. Phrases like sustainability, climate change, good corporate citizenship and going "green" are no longer part of some fringe discussion — they are now on stakeholders' agendas. This has meant a huge shift in focus for many businesses, as public concern over sustainability has started to impact the bottom line. The business environment is changing. With change comes opportunity. CSR Trends 3 is a practical working tool designed to provide useful insight into corporate social responsibility report trends around the world. The survey’s research was conducted jointly by PricewaterhouseCoopers’ Sustainable Business Solutions practice and Craib Design & Communications, a group of communications consultants with decades of experience in corporate and investor communications.

Canada - Craib survey published: AR Update 2009

"The importance of the corporate website has continued to grow as the primary channel for investor communications. That makes sense given its capacity for information and the immediacy with which that information can be disseminated. Despite these advantages, however, the web remains a passive medium in the sense that it has absolutely no impact unless investors choose to use it. In contrast, the printed annual report offers a unique ability to control the structure, pacing and content of the key messages companies want to place before the eyes of selected audiences. Judging from the time and resources spent on the printed annual report, this continues to be a priority for most Canadian public companies." (Read AR Update 2009 published by Craib online.)

New technologies that help businesses monitor social media

Companies are increasingly turning to new technologies to monitor comments made about their products on social networking sites such as Twitter and Facebook. The applications can be used to respond to customer complaints and for product development research. The applications also have marketing uses, with businesses getting involved in conversations about their products and industry. (Read the article Tracking A Million Conversations: New technologies that help businesses monitor social media at Forbes online.)

US - Highlights of IFRS Research

Conversion from US GAAP to International Financial Reporting Standards (IFRS) is a heavily discussed topic in the corporate world. Expected benefits of adoption include reporting consistency, enhanced global competition and improved financial repotting transparency. While many countries worldwide have already adopted IFRS, many other countries are closely examining its effects before adoption, not only from an economic perspective but also from a reporting quality position. (Read the article Highlights of IFRS Research at Journal of Accountancy online.)

UK - Does Green Accounting Add Up?

Are accountants part of the environmental problem or part of the solution? David Collison, professor of accounting and society at the University of Dundee, says: “Accountants provide information that drives important decisions, but very often this information is seriously flawed, because it does not take account of the environmental impact of those decisions.” Many large companies produce an environmental report, but there is little consistency. As Collison puts it: “It is fundamentally difficult because you are looking at different companies in different industries.” (Read the article Does Green Accounting Add Up? at CA Magazine online.)

US - AICPA chairman discusses accounting for sustainability

In the United States, CPAs are taking a leading role in accounting for sustainability, the practice of considering the environmental and social aspects of doing business to inform a "triple bottom line." Robert R. Harris, Chairman of the American Institute of Certified Public Accountants (AICPA), recently discussed financial reporting in this new paradigm. (View the AICPA video The CPA and Sustainability online.)

UK - Is it time to set carbon emissions standards?

Should the International Accounting Standards Board (IASB) prioritize a project on global rules for accounting for pollution? Gavin Hinks talks to PricewaterhouseCoopers sustainable development partner Alan McGill and David Lyon, principal at Arthur D. Little’s sustainability and risk practice, about the lack of a standardized method for carbon accounting and what should be done about it. (View the video Is it time to set carbon emissions standards? at Accountancy Age online.)

Canada - PwC survey on IFRS Readiness in Canada: 2009

With the January 1, 2011 deadline for Canadian companies' transition to International Financial Reporting Standards (IFRS) looming on the horizon, a new survey by the Canadian Financial Executives Research Foundation (CFERF), the research institute of FEI Canada, and sponsored by PricewaterhouseCoopers (PwC), indicates that many companies will have a race to the finish line. (Read the report IFRS Readiness in Canada: 2009.)

CICA corporate reporting guidance series

Corporate reporting is the process used to communicate with stakeholders. Stakeholders are individuals or groups that may be significantly affected by a company’s activities, products and services or whose actions can affect the company’s ability to successfully implement its strategies and achieve it objectives. The Canadian Institute of Chartered Accountants (CICA) is undertaking research to promote effective communication by providing helpful guidance for comprehensive and integrated corporate reporting.

In 2008, the CICA published a research study called Corporate Reporting to Stakeholders and a research report on Using Graphics in Corporate Reporting. Additional guidance is currently being developed with regard to Using the Internet in Corporate Reporting and Corporate Sustainability Reporting. It is also anticipated that future guidance will be developed regarding corporate reporting on governance, using performance measures, and reporting on risks and uncertainties.

Canada's Corporate Reporting Awards 2009

The Chartered Accountants of Canada Corporate Reporting Awards (CRA) is the only national awards program that recognizes excellence and best practices in corporate reporting. Now in its 58th year, the CRA presents awards for excellence in financial reporting, corporate governance disclosure, electronic disclosure and sustainable development reporting. Awards will be presented at The Carlu in Toronto, Canada on Tuesday, December 8, 2009. Hosted by leading business journalist Deirdre McMurdy, awards will be presented to the winning companies listed on the TSX and to federal Crown corporations.

Scams & shams: The trouble with social networks

The growth of social networks has brought a variety of threats that can potentially damage a company brand's good name. Most of those threats aren't new, however. Social networks have simply become another attack vector, whether for spreading malware, launching assaults on an individual's or company's reputation, or creating impostor social networking sites that divert traffic away from the brand's legitimate sites. (Read the articles Scams & shams: The trouble with social networks and How hackers find your weak spots at Computerworld online.)

Experts discuss ways to make cloud computing innovative

Cloud computing, once seen as a way to cut costs, is now being considered as a way to increase innovation. Companies need to think beyond simply running the same systems in the cloud as they have in their data centers. The value of automating business processes is decreasing, even though it is cheaper to run IT in a cloud. (Read the article Innovation, Not Cost, New Cloud Battle Cry at Information Week online.) It is also important to note that cloud computing can leave companies vulnerable to hackers. The damage that can be done is best demonstrated by a massive Google outage this year that was caused by hackers attacking the firm's cloud-computing infrastructure. (Read the article The Curse of Cloud Security at CSO online.)

COSO publishes thought paper on ERM

The Committee of Sponsoring Organizations of the Treadway Commission (COSO) has released a paper on Strengthening Enterprise Risk Management for Strategic Advantage. The paper follows the release in October 2009 of a paper on Effective Enterprise Risk Oversight: The Role of The Board of Directors. (Read COSO’s press release.)

XBRL tagging will change how financial data is reported

Extensible Business Reporting Language (XBRL), a version of XML tagging designed to improve the efficiency of financial information reporting, won't change what information is reported. Instead, it will change how information is reported. These tags provide a range of information and allow labels in any language, as well as accounting references or other subsidiary information. XBRL can show how items relate to one another, how they are calculated and whether they fall into particular groups for organizational or presentation purposes. XBRL is extensible, so companies can adapt it to meet special requirements. With XML tagging, the information in a business report is computer-readable and can be extracted, searched and analyzed (even if it's from multiple sources and written in different languages). (Read the article “QuickStudy: Extensible Business Reporting Language (XBRL)” in Computerworld online.)

Canada -XBRL Annual Conference 2009

The XBRL Canada Annual Conference was held on November 5, 2009 in Toronto, Canada. The presenters included Paul Cherry, Chair of the IASB Standards Advisory Council, who spoke about the IASB and Convergence, David Blaszkowsky of the US Securities and Exchange Commission (SEC) who explained The Roll-out of Interactive Data Reporting for US-listed Public Companies, and Andrew Lowe of the Ontario Securities Commission (OSC) who discussed XBRL and the CSA. The conference provided regulatory filers and potential filers with an up-to-date status report and concrete help in getting organized for the adoption of IFRS and XBRL. (The presentations are available at the XBRL Canada website.)

SEC's Schapiro says focus on investor needs will restore confidence

Mary Schapiro, chairman of the US Securities and Exchange Commission (SEC), said that while there were many causes of the global financial crisis, much of it boils down to risk. Investors, financial institutions, credit rating agencies, regulators and other market participants either did not know or did not understand the risks of many products. Schapiro said it is time for the markets to return to an era where everyone "can compete based on real services and results." She said to get to that point, the industry needs to focus on investor needs. (Read the online articles  "SEC head Mary Schapiro: Blame us for financial crisis too" and "SEC to begin scrutinizing risks related to retirement products".)

Basic Sustainable Marketing Principles

Sustainable Insight, a quarterly publication of KPMG, explores the important area of sustainability. The January 2009 issue looks at how companies can highlight their products and services to customers, while adhering to responsible principles of marketing. The April 2009 issue looks at the role of government in facilitating sustainability transitions based on a series of interviews with civil servants, private sector representatives and scholars of public policy. It proposes a set of criteria and means to determine whether, when and how government should facilitate sustainability.

Effective E-mail Marketing Programs

Guide to E-mail Marketing, a definitive how-to guide, was issued in 2007 by the Canadian Marketing Association’s Digital Marketing Council. It provides a critical path for a company's e-mail marketing program and includes many useful resource links.

Five Tips for Effective Use of Social Media

Integrating social media into a company's marketing strategy helps to keep in touch with current and potential customers as well as with suppliers, colleagues and other stakeholders. The Business Development Bank of Canada offers a brief overview of social media, including the individual benefits of these sites, and lists five handy tips for effective use. (Read the online article Putting a new spin on networking.)

Canada – OSFI releases draft advisory regarding impact of IFRS

Canada’s Office of the Superintendent of Financial Institutions (OSFI) has released a Draft Advisory on “Conversion to International Financial Reporting Standards (IFRSs) by Federally Regulated Entities (FREs).” This Draft Advisory addresses the regulatory implications of IFRS conversion on accounting and capital. The Draft Advisory is open for comment until December 31, 2009.

Rising to the Challenge - narrative reporting in the UK

The UK Accounting Standards Board (ASB) has issued Rising to the Challenge, the report of its review of the narrative reporting of 50 UK listed companies in 2008 and 2009. The review focused on:

• how companies are complying with the enhanced business review content requirements from the Companies Act 2006;
• effective communication and presentation of the required content; and
• areas that are leading to clutter in narrative reporting.

Canada - IFRS guidance for lawyers, bankers and investors

Canada's Accounting Standards Board (AcSB) staff has issued Bulletin #9 which emphasizes the need to anticipate how trend analyses, debt covenants and financial ratios that are included in contracts and used to make decisions will change when International Financial Reporting Standards (IFRS) are adopted. This is essential reading for lawyers, bankers and investors.

Canada - CPAB/AcSB IFRS webcast for small and mid-sized companies

The Canadian Public Accountability Board (CPAB) and Canada's Accounting Standards Board (AcSB) will host a webcast that will set out a roadmap for what small and mid-sized companies should be doing now to prepare for International Financial Reporting Standards (IFRS). It will be held on November 5, 2009 from 2:00pm to 3:00pm EST. (Register online for this free webcast.)

Canada - Advisory Committee on Canadian Securities Regulator

The Honourable Jim Flaherty, Canada's Minister of Finance, has announced the appointment of the members of the Advisory Committee of Participating Provinces and Territories to the Canadian Securities Transition Office, which is leading Canada's efforts to establish a Canadian securities regulator. The Advisory Committee will provide advice on the transition to a Canadian securities regulator. As part of its work plan, the Transition Office is consulting with provinces and territories, securities experts and legal advisors.(Read the Press Release.)

US - AICPA starts Twitter page on IFRS news, updates and resources

The American Institute of Certified Public Accountants (AICPA) has started a page on Twitter to provide guidance on International Financial Reporting Standards (IFRS). The goal is to disseminate comprehensive resources related to IFRS for accounting professionals, financial managers, audit committees, boards, investors and other users of financial statements. (Visit the AICPA Twitter site on IFRS for select IFRS news, updates and resources.)

SEC - Draft Strategic Plan and Proposed Amendments to e-Proxy

On October 8th, 2009, the US Securities and Exchange Commission (SEC) announced the release of its Draft Strategic Plan for 2010-2015 (also refer to SEC Release No. 34-60799). The comment deadline is November 16, 2009. In addition, on October 14, 2009, the SEC released Proposed Amendments to Rules Requiring Internet Availability of Proxy Materials. The proposal cites findings from a survey conducted by Broadridge Financial Solutions, which indicated a significant drop in retail investor participation in, and understanding of, online-only proxies. Issuers were required to send shareholders a notice regarding availability of online proxies but, according to the survey, the boilerplate nature of notices developed under the original rules appears to have confused some investors. (Read more at the FEI Financial Reporting Blog.)

AICPA - Prince of Wales address on Sustainability

The Prince of Wales is calling on the United States CPA profession to take a leading role in helping develop the tools and information necessary for companies to embed sustainability issues effectively in their day-to-day operations and decision-making and to report sustainability performance in a clear, concise and connected way. He presented a 10-minute videotaped address to the Governing Council of the American Institute of Certified Public Accountants (AICPA) which gathered in Las Vegas for its Fall meeting.

AICPA - Enterprise risk management extends to the board of directors

As policymakers assess the causes of the recent financial crisis, it is clear that improvements must be made in the way that senior executives approach risk management within their organization and the role of their boards of directors in risk oversight. An Audit Committee Brief by the American Institute of Certified Public Accountants (AICPA) provides some insights.

2010 World Congress on "Accountants: Sustaining Value Creation"

The World Congress of Accountants will be held on November 8-11, 2010 in Kuala Lumpur, Malaysia. "Accountants: Sustaining Value Creation" is the theme for numerous plenary sessions and workshops. The conference is sponsored by the International Federation of Accountants (IFAC) and the Malaysian Institute of Accountants. More than 6,500 delegates representing 123 countries are expected to attend.

Regulators urged to create standard for climate-change reporting

According to a report by the Association of Chartered Certified Accountants, regulators should create a single, international standard for climate-change reporting. Accountants have a valuable role in climate-change strategy, such as helping in evaluating the returns on low-carbon investment proposals, advising employers and clients on emissions-trading regimes, developing organization-relevant carbon and greenhouse-gas key performance indicators, and providing disclosure of information through annual reports and accounts. (Read the article "ACCA: Accountants Should Work on Climate Change Reporting" on WebCPA and the AICPA business brief on companies going green.)

Canada - XBRL conference in Toronto on November 5, 2009

XBRL Canada will host a one-day conference at the Metro Toronto Convention Centre on November 5, 2009 to update professionals impacted by XBRL. Issues to be covered include the United States' Securities and Exchange Commission's (SEC) Interactive Data Program, IFRS Convergence, the Canadian XBRL filing environment as well as an update regarding XBRL internationally. A showcase of XBRL service providers will allow attendees to view, understand and evaluate solutions to XBRL challenges. (Read the press release and register to attend this free event at the XBRL Canada website.)

A Check-up on the Habits and Values of North America’s Young Adults

Americans like football, MySpace and text messaging. Canadians like hockey, Facebook and playing the lottery. And, both just can’t get enough of the Internet. The Internet and mobile devices have revolutionized the way people connect and communicate and that is evident in the way people have engaged in communication through their devices and online social networks. These are some of the findings from an Ipsos Reid study that investigated the behaviors, lifestyles and habits of American and Canadian young adults ages 18-34, the emerging market of young consumers. (Read the highlights of the survey "A Check-up on the Habits and Values of North America’s Young Adults (Part 2)" and also read "A Check-up on the Habits and Values of North America’s Young Adults (Part 1).")

Corporate Social Responsibility: Leading a sustainable enterprise

Today, more than ever, organizations are focused on environmental and social responsibility as a strategic objective. A 2009 survey of 224 business leaders worldwide shows that 60 percent believe that corporate social responsibility (CSR) has increased in importance over the past year. Only 6 percent say it's a lower priority. To be sustainable, businesses are now embracing a relatively new objective: optimizing their operations to improve environmental and social outcomes in a manner that increases overall performance. As a result, executives face entirely new decisions and must manage an intricate new set of trade-offs. (Read the IBM Institute for Business Value study Corporate Social Responsibility: Leading a sustainable enterprise.)

Canada - Ernst & Young survey on risk management

According to a recent survey by Ernst & Young, corporate fraud, data theft and financial reporting risk can cost organizations dearly. That’s why it’s so important for today’s businesses to get their risk management strategies right. By doing so, they can protect their valuable assets and also create a competitive advantage. In The future of risk: Protecting and enabling performance, Ernst & Young finds 96% of organizations believe they can improve risk management, while nearly half say committing additional resources to risk management could actually drive a competitive edge. The survey also finds coverage of multiple risk functions has become increasingly difficult to manage and is compounded by a lack of alignment. (Read the article "Ignoring risk management is risky, survey says" in the October 2009 CAmagazine online.)

Canada - IFRS on the Audit Radar

The Canadian Institute of Chartered Accountants (CICA) has issued a new guide that provides practical information auditors need to know about the transition to International Financial Reporting Standards (IFRS). The guide, Assurance Implications for Changeover to IFRS, is available in electronic format and will be updated periodically.

Canada - CSA prepares for upcoming changeover to IFRS

The Canadian Securities Administrators (CSA) has published for comment National Instrument 52-107 Acceptable Accounting Principles and Auditing Standards, its Companion Policy and related amendments that are aimed at ensuring a smooth transition from current Canadian Generally Accepted Accounting Principles (GAAP) to International Financial Reporting Standards (IFRS).

US - XBRL National Conference

This summer kicked off the biggest implementation of XBRL in the United States with the requirement from the Securities and Exchange Commission (SEC) for public companies to submit XBRL-tagged financial statements. A conference will be held in New York on November 17-18, 2009 to help companies better understand the impact this technology standard will have on business in terms of greater accuracy, transparency and simply a better connection with shareholders. The conference will feature sessions by the SEC, public companies and auditors, on how the US GAAP implementation is going and even more importantly, about what’s ahead for financial executives and investors with initiatives like corporate actions and proxy reporting. (Get more information and register for the first XBRL US National Conference: Financial Reporting – Advancing Transparency and Transforming the Dialogue!)

G-20 calls for single set of global accounting standards by June 2011

In an agreement reached to make dozens of changes to the regulation of financial markets, systems and institutions, the leaders of the G-20 called on “international accounting bodies to redouble their efforts to achieve a single set of high quality, global accounting standards within the context of their independent standard setting process and complete their convergence project by June 2011.” The joint statement also said the International Accounting Standards Board's institutional framework should further enhance the involvement of various stakeholders. (Read the article "G-20: Achieve Single Set of Global Accounting Standards by June 2011" at JournalofAccountancy.com.)

Connecting the Dots Between Leadership, Ethics and Corporate Culture

Many large, progressive global companies are becoming dynamic, organic, decentralized organizations in which leaders use shared values, mission and purpose to gain alignment with corporate goals on the one hand, and commitment to innovation and processes of adaptive change, on the other. Succeeding in this mission depends on the leader’s commitment and support. Would-be progressive leaders will learn how to make the transformation by reading this article, "Connecting the Dots Between Leadership, Ethics and Corporate Culture" in the Ivey Business Journal.

CICA/RBC Business Monitor Webinar

Established in 2007, the quarterly Canadian Institute of Chartered Accountants (CICA) / RBC Business Monitor draws on the strategic thinking and business insight of CAs in leadership positions in industry to provide a view of business trends and economic confidence across our nation. The most recent CICA/RBC Business Monitor survey conducted in Q2 2009 found that optimism regarding the economy has improved, though it is still down from historical highs. The survey also found that corporate profits and revenue are still estimated to decline over the next 12 months, although less than indicated by the previous survey. (Register for the free CICA/RBC Business Monitor webinar on September 29th, 2009. )

Canada - IFRS and Information Technology

With the upcoming transition to International Financial Reporting Standards (IFRS), it is time to consider the impact of the transition on information technology and the critical steps that need to be addressed throughout the conversion. A recently archived webinar, sponsored by PTC Accounting and Finance, outlines the specific aspects that need to be addressed to ensure a smooth transition. (View all webinar series on the Chartered Accountants of Canada website.)

PwC Financial Reporting Release August 2009

The August 2009 issue of the PricewaterhouseCoopers (PwC) Financial Reporting Release covers the following matters: The Future of Canadian GAAP; Crossing over to IFRS; Canadian GAAP for Private Enterprises; Reflections on the Financial Crisis; Global GAAP Convergence; Financial Instruments; Fair Value Measurement; Fair Value and Liquidity Disclosures; Investments in Debt Securities; Consolidation and Asset Derecognition; Rate-Regulated Activities; Income Taxes; Earnings per Share; and Emerging Issues Committee Abstracts. (Review the current and prior issues of Financial Reporting Release on the PwC website.)

PwC - World Watch: Governance and corporate reporting

There is growing recognition of the importance of transparency and common business languages to communicate business information to investors and other stakeholders. This is particularly important in the current business environment. The PricewaterhouseCoopers (PwC) newsletter, World Watch, contains opinion articles, case studies and worldwide news on the many initiatives to improve corporate reporting. (Read the current issue of World Watch on the PwC website. )

Corporate reporting - Good practice examples

PricewaterhouseCoopers (PwC) has prepared a catalogue that contains examples of good practice in corporate reporting. Each example is accompanied by an introduction explaining why the example was chosen, as well as a detailed commentary from experts based on the PwC corporate reporting framework. The examples can be searched by industry, company name, country and category or element of the corporate reporting framework. In addition, the examples can be downloaded and printed in PDF format. (Visit the PwC corporate reporting webpage for more information.)

US - Center for Audit Quality offers guide on IFRS

The Center for Audit Quality (CAQ), which is affiliated with the American Institute of Certified Public Accountants (AICPA), has developed a Guide to International Financial Reporting Standards (IFRS). The CAQ developed the Guide to IFRS in recognition of the timeline in the US Securities and Exchange Commision (SEC) proposed IFRS roadmap and the critical decisions that must be made regarding the use of global accounting standards in the US. The Guide will provide investors, policymakers and other capital market stakeholders with a timely, accessible and objective introduction to the debate over a single set of high-quality global accounting standards.

Ipsos Reid survey - Canadian online social network profile

A recent survey noted a dramatic increase in the number of Canadians with a profile at online social networks. In 18 months the percentage with a profile increased from 39% to 56%. These are the findings from “Social Networking: 2009,” a new study conducted and released by Ipsos Reid. Study author Mark Laver notes, “Social networks get a lot of press and rightfully so, they are becoming the communications tool of the 21st century. The increasing concentrations of people at these types of websites make them very attractive to online marketers and businesses.” (Visit the Ipsos Reid website to find out more about this survey.)

Financial Reporting in Flux - A Role for XBRL

According to a recent blog posting, companies are being asked to make available to the public increasing quantities of data directly from their systems on a real time basis. That is the trend! Companies may deny it and resist it, but it is being demanded by stakeholders. The implications are tremendous, not the least of which are issues around establishing data integrity and obtaining independent assurance. There is a need for a standard with which the data can be presented and used. By filling this need, XBRL will achieve a new level of usefulness. Indeed, that is a role in which XBRL will achieve its full potential. (For more information, visit the XBRL Canada Blog. )

Canada - Financial Reporting & Accounting Conference

The Chartered Accountants of Canada are offering an intensive multi-tracked financial reporting and accounting conference in Toronto on September 16-18, 2009. The conference will include a wide selection of optional post-conference workshops. Expert speakers will deliver interpretations and insight on current technical issues, laced with practical, real-life examples to help deal with the critical issues that are relevant to an organization. Questions posed on-line prior to the conference or in person at the conference will receive informative and timely answers during the presentations. Public sector participants will examine the latest developments and strategic direction of public sector financial reporting. (For more information and to register, visit the conference website.)

Canada - The Top Ten IT Issues

When the CICA Information Technology Advisory Committee (ITAC) did its last survey of top IT issues, the economy was thriving, the stock market was high and boomers were busy planning their retirement. Now, one year later, the economy is suffering the greatest slump since the Great Depression, the stock market has lost a third of its value and some boomers have postponed their retirement — that is, if they haven’t been forced into it. While the issues that topped last year’s list — a shortage of IT skills, privacy and outsourcing — are still of concern, privacy and outsourcing didn’t even make the top 10 this year. They were edged out by such items as the impact of the recession, new regulatory requirements and the role of Web 2.0 applications in organizational systems. This year the recession was the top item on the list. (Read the article "The Top Ten IT Issues" in the September 2009 issue of CAmagazine online.)

Update on IASB response to G20 recommendations

The International Accounting Standards Board (IASB) has published an update to the comprehensive overview of measures undertaken by the IASC Foundation and the IASB in response to the G20 recommendations. (Read the Updated IASB Response.)

Accounting Leaders Discuss Simplifying Financial Reporting

The Global Accounting Alliance (GAA), formed in November 2005, is an organization of the world's leading professional accountancy institutes. It was created to promote quality services, share information and collaborate on important international issues. As part of this effort, the GAA publishes a bimonthly online journal. The lead article in the August 2009 issue of GAA Accounting is the American Institute of Certified Public Accountants (AICPA) coverage of the July 17, 2009 AICPA-GAA Roundtable discussion on simplifying financial reporting.

Fraud Risk in Difficult Economic Times

A new publication by the Canadian Institute of Chartered Accountants (CICA) is designed to help boards of directors protect their companies from the increased risk of fraud in today’s unsettled economic environment. The Director Alert, titled Fraud Risk in Difficult Economic Times, provides guidance to directors on how to satisfy themselves that management has implemented reasonable and prudent measures to manage the risk of both internal and external fraud. External fraud includes losses from frauds by suppliers, customers and others outside the company. Internal frauds are committed by those within an organization, whether management or employees, and may include asset misappropriation, corruption or financial statement fraud. (Read the CICA Media Release and review the Director Alert, titled Fraud Risk in Difficult Economic Times.)

Canada - In the Loop on Standards in Transition

An electronic newsletter called In the Loop – Standards in Transition is being published by the Canadian Institute of Chartered Accountants (CICA). The newsletter covers topics ranging from International Financial Reporting Standards (IFRS) and standards for private enterprises to the new Canadian auditing standards. It is not a technical resource. Rather, it offers just enough information to keep you in the loop on Canada’s changing standards landscape and links you to resources relevant to your specific needs.

CSA Continuous Disclosure Reviews for 2009

The Canadian Securities Administrators (CSA) has published a staff notice that summarizes the results of the continuous disclosure review program for the fiscal year ended March 31, 2009. During this period, the CSA completed 1,094 reviews, consisting of 465 full reviews and 629 issue-oriented reviews into specific areas including market turmoil, asset-backed commercial paper, defined benefit pension plan disclosures and financial instruments. Following a full or issue-oriented review, results are classified into one or more of five categories, depending on the seriousness of the matters noted. This year, 48% of the reporting issuers selected for review fell into the category of “prospective changes required. Of the total reporting issuers reviewed, 14% were contacted and alerted to specific areas where disclosure enhancements should be considered. A further 13% were required to amend or refile certain documents and 5% were either cease traded, placed on a default list or referred to Enforcement. (Read the CSA Staff Notice 51-329 Continuous Disclosure Review Program Activities for the fiscal year ended March 31, 2009.)

Deloitte - Database of Statistics on globalization of world's capital markets

Deloitte has published new data on cross-border securities listings. The Database of Statistics provides clear evidence of the globalization of the world's capital markets and the need for global financial reporting standards. At June 30, 2009, the 52 securities exchanges that are members of the World Federation of Exchanges have over 46,000 companies listed, of which about 3,100 are foreign (cross-border) listings. In addition, 1,024 non-US companies from 50 jurisdictions were registered with the US Securities and Exchange Commission (SEC) at December 31, 2008. (Review the data: Alphabetical Listing of Companies; Geographic Listing of Companies; Listing by US Trading Market; and Geographic Summary by Jurisdiction of Incorporation.)

Updated SEC Financial Reporting Manual

The US Securities and Exchange Commission (SEC) Division of Corporation Finance has updated its Financial Reporting Manual. This 323-page manual is an informal reference document for SEC staff and provides general guidance only. The SEC has made it available on its public website. Topics include: Registrant's financial statements; Other financial statements required; Pro forma financial information; Independent accountant's involvement; Smaller reporting companies; Foreign private issuers & foreign businesses; Related party matters; Non-GAAP measures of financial performance, liquidity and net worth; Management's discussion and analysis of financial position and results of operations (MD&A); Reverse acquisitions and reverse recapitalizations; Effects of subsequent events on financial statements required in filings; Tender offers; Employee stock benefit plans; and Multijurisdictional disclosure system. (Read the Updated SEC Financial Reporting Manual or review the contents online.)

KPMG International, Being the best: Thriving not just surviving

New research from KPMG International, Being the best: Thriving not just surviving, defines the key characteristics of finance functions at leading organizations and also demonstrates the critical role people play in delivering success. Based on a global survey of more than 500 senior finance executives, including 98 respondents in Canada, Being the best: Thriving not just surviving concludes that adapting the finance function is now more urgent than ever, by providing the right information at the right time to help business leaders navigate through turbulent times. (Read the executive summary of Being the best: Thriving not just surviving.)

Reputation risk management on the rise

Corporate reputations have never been more valuable or vulnerable. Recent scandals, new concerns about sustainability, global supply chains that multiply risk and social media that carry bad news at the click of a mouse are all elements of the new risk environment. However, the very same factors that add to reputation risk — social media, globalization and customers who care about social responsibility — can, if managed appropriately, help companies build a resilient reputation. More companies are starting to manage reputation risk proactively. In a recent survey of 131 companies by the Conference Board Reputation Risk Research Working Group, 81% of respondents said they have increased their attention to this area over the past three years, and 63% expect their spending on reputation risk to increase over the next three. (Read the article Reputation risk management on the rise in the August 2009 issue of CAmagazine.)

Human Resource and Compensation Issues during the Financial Crisis – Questions for Directors to Ask

The Canadian Institute of Chartered Accountants (CICA) has issued a Director Alert designed to help boards of directors, particularly Human Resources and Compensation Committees, navigate today’s unsettled economy. Titled Human Resource and Compensation Issues during the Financial Crisis – Questions for Directors to Ask, the easy-to-read Alert highlights key topics and questions for corporate directors to consider in addressing the implications of the economic downturn on their compensation and human resource programs. (Read the CICA Media Release.)

CICA Climate Change Briefing: Questions for Directors to Ask

The Risk Management and Governance Board of the Canadian Institute of Chartered Accountants (CICA) has issued a publication titled Climate Change Briefing – Questions for Directors to Ask. The publication aims to increase awareness among corporate board members about the business impacts and governance issues associated with climate change. (Read the CICA Media Release.)

Canada - CFO Briefing on Transition to XBRL

By the end of 2011, about 450 Canadian companies listed on United States stock exchanges will have to implement Extensible Business Reporting Language (XBRL), an internationally recognized standard for electronic communications. The Canadian Securities Administrators (CSA) have voiced their support for XBRL but mandatory adoption is unlikely to occur until after Canadian companies transition to International Financial Reporting Standards (IFRS) in January 2011. A recent briefing published by the Canadian Institute of Chartered Accountants (CICA) introduces basic concepts, explores the benefits and downfalls of implementation, indicates the status of XBRL reporting in Canada and offers tips for preparation. (Read the July 2009 CFO Briefing - Transition to XBRL.)

Corporate Reporting to Stakeholders - An Overview

The Canadian Institute of Chartered Accountants (CICA) annual Corporate Reporting Awards (CRA) is a program that honours excellence in financial reporting, corporate governance disclosure, electronic disclosure and sustainable development reporting. This high profile event is now in its 57th year. Supporting the CRA, the CICA Research Studies Department examines all aspects of corporate reporting and documents findings in detailed, thoughtful publications. For an overview of the recent study, Corporate Reporting to Stakeholders, refer to the Q4 Blog posting, CICA’s Corporate Reporting research documents highly valuable to IROs. (For a list of other recent publications, see the CICA website section on Performance Reporting).

Accounting for greenhouse gas emissions

For several decades, the environmental, economic and health effects from greenhouse gases (GHG) have been closely studied and debated by the scientific community, regulatory authorities and other diverse groups. GHGs are emitted into the atmosphere mainly as a by-product of waste disposal and the burning of fossil fuels by individuals, households and businesses. Of the six principal types of GHGs, the Environmental Protection Agency (EPA) estimates that carbon dioxide (CO2) makes up 85% of these emissions in the United States. Because GHGs can trap the sun’s heat in the Earth’s atmosphere, many scientists have targeted them as a leading cause of global warming.

A recent article introduces practitioners to the fundamental accounting issues concerning emissions of GHGs. The key elements of “cap and trade” programs are discussed since they are the predominant market mechanism employed globally to limit GHG emissions. The article also examines attempts by standard setters to fill the void in the authoritative accounting guidance in this area and the consequences of the diverse accounting practices that have emerged globally.

(Read the article Accounting for Emissions in the Journal of Accountancy Online.)

IAESB proposes education work plan

The International Accounting Education Standards Board (IAESB) has invited organizations and individuals with an interest in accounting education to comment on its proposed 2010-2012 Strategy and Work Plan. The proposed strategy focuses on projects and activities aimed at developing International Education Standards (IES), while providing adoption and implementation guidance to interested stakeholders in accounting education. The work program contains a number of potential projects for consideration. Comments are requested by October 5, 2009. (Read the IAESB Press Release and download the IAESB exposure draft.)

FASB initiates project on useful, organized and consistent disclosures

Robert H. Herz, chairman of the United States Financial Accounting Standards Board (FASB) has announced the addition of a new FASB agenda project aimed at establishing an overarching framework to make financial statement disclosures more effective, coordinated and less redundant. The project was added in response to requests and recommendations from constituents including the Investors Technical Advisory Committee and the SEC Advisory Committee on Improvements to Financial Reporting. (Read the FASB Press Release.

Global Accounting Groups Commit to Sustainability Practices

The Prince of Wales’ Accounting for Sustainability Forum has announced that its 16 global accounting body members have signed the Forum’s five sustainability principles. The forum claims this is the first time that a global group of accounting bodies has committed to a set of sustainability principles. Those principles promote “connected reporting” — reporting that connects an organization’s sustainability impacts with its financial performance more clearly and consistently — and commits participants to collaborative research and training in this area. The signatories include the Canadian Institute of Chartered Accountants (CICA) and the American Institute of Certified Public Accountants (AICPA). (Read the online article at Environmental Leader.)

Getting a global perspective of the accounting profession

The Global Accounting Alliance (GAA) was formed in November 2005. It is an alliance of the world's leading professional accounting organizations, including the Canadian Institute of Chartered Accountants (CICA). The GAA was created to promote quality services, share information and collaborate on important international issues. As part of this effort, it publishes a bimonthly online journal to which its member organizations, including the CICA, contribute in-depth articles. Read the latest issue of Global Accounting Alliance online journal, including an article on fair value called When The Engine Overheats Don’t Blame The Oil Light by Paul Cherry, Past Chair of Canada’s Accounting Standards Board (AcSB) and Ian Hague, Principal, AcSB.

IFRS conversion creates investor relations opportunity

Beginning in 2011, all publicly-accountable enterprises in Canada will make the transition to International Financial Reporting Standards (IFRS) – joining more than 100 countries that have already adopted or permit the use of these global standards. For Canadian investor relations (IR) officers, the transition represents an unprecedented communications opportunity. The IR team needs to be involved in order to develop a stakeholder communications plan. Read more in the May/June 2009 issue of the newsletter, IR Focus, published by the Canadian Investor Relations Institute (CIRI).

IASB proposes guidance on management commentary

The International Accounting Standards Board (IASB) has published for public comment a proposed non-mandatory framework to help entities prepare and present a narrative report, often referred to as management commentary. (Read the IASB Press Release or View the Exposure Draft and Submit a Comment Letter.)

PwC Canada's newsletter on sustainability reporting

PricewaterhouseCoopers (PwC) Canada has published its inaugural issue of Report Ability, a regular newsletter on sustainability reporting. The goal is to provide useful information to writers and readers of sustainability reports across Canada. (Read Report Ability - Spring 2009.)

IT & IFRS - The European Experience

The Information Technology Advisory Committee (ITAC) of the Canadian Institute of Chartered Accountants (CICA) has begun producing The ITAC InfoCast. This is a series of podcasts that look at emerging technology issues that impact assurance professionals and the business community at large. The first of these podcasts is about IT&IFRS - The European Experience.

Reducing complexity in corporate reporting

Two years ago, the UK Financial Reporting Council (FRC) launched a project to review the complexity and relevance of current corporate reporting requirements. Recently, it published Louder than Words: principles and actions for making corporate reports less complex and more relevant. According to the FRC, reporting should be more principle-based. In this regard, the discussion paper sets out a series of communication principles. (Read the FRC Press Release.)

World Congress of Accountants 2010

The World Congress of Accountants 2010 will take place in Kuala Lumpur, Malaysia from November 8-11, 2010. It is anticipated that approximately 5,000 professional accountants, international regulators, standard setters, government officials and corporate leaders will attend. (For more information, visit the World Congress of Accountants website.)

IFRS Primer for Audit Committees

The movement toward a single set of high-quality global accounting standards for use by public companies around the world continues to gather momentum through market forces, even with the current noncommittal stance on the US Securities and Exchange Commission (SEC) proposed IFRS Roadmap. Audit committees need to gain an understanding of IFRS and contemplate the company's readiness. A recent AICPA Audit Committee Brief poses questions the audit committee should consider itself and questions it should discuss with management.

Cloud computing starts to deliver for businesses

Back in 1990, Bill Gates said that the PC industry would put information at people's fingertips. Nearly 20 years later, cloud computing is starting to deliver that promise. A growing list of big-name companies is bringing to the market hardware and software that open the door to the use of cloud computing to give businesses the information they need, when they need it and where they need it. (For more information, read the article "How Cloud Computing Will Change Business" in BusinessWeek.)

EFRAG - European Survey of Users’ Information Needs

The European Financial Reporting Advisory Group (EFRAG), together with the national French standard-setter, has issued a report summarizing and analyzing the results of a recent survey of users of financial information. (The survey report is available on the EFRAG website.)

Canada - CSA Staff Notice 52-324 on IFRS changeover

The Canadian Securities Administrators (CSA) has issued CSA Staff Notice 52-324 which addresses issues regarding the changeover to International Financial Reporting Standards (IFRS). The notice is an update on: use of IFRS by a domestic issuer for periods beginning prior to January 1, 2011; requirements for interim financial statements in the year of IFRS adoption; and reference to IFRS and Canadian GAAP. (Read the CSA Notice 52-324.)

KPMG - Canadian Audit Committee Update 2009

KPMG has published Canadian Audit Committee Update 2009. Two feature articles discuss current issues. The first article, Current Issues Dominating the Audit Committee Agenda, highlights critical areas — managing through the current economic challenges, the nature of oversight today, overseeing risk and the changing governance landscape. The second article, Audit Committee Evolving Issues focuses on the intersection of two complex processes for management — maintaining effective disclosure controls and procedures, and internal control over financial reporting, while successfully managing the changeover to IFRS. This publication also provides an overview of recent accounting and regulatory changes, enabling audit committee members to identify changes that may affect a company’s financial reporting and to prepare to ask management about their impact.

Canada - Transition to International Financial Reporting Standards

Regarding the transition to International Financial Reporting Standards (IFRS), Canada's Accounting Standards Board (AcSB) has reviewed the comments received at the roundtable that took place on April 20, 2009 in Montreal. After considering the input received about the challenges of adopting IFRS, the AcSB concluded that there were no compelling arguments that would require delaying the changeover date. It reconfirmed that Canadian GAAP for publicly accountable enterprises will be IFRS for interim and annual financial statements relating to fiscal years beginning on or after January 1, 2011. (Read the Accounting Standards Board Decision Summary - April 29, 2009.)

2009 Financial Reporting in Canada Under IFRS

The Canadian Institute of Chartered Accountants (CICA) has recently published 2009 Financial Reporting in Canada Under IFRS. This publication (1,248 pages) aims to help preparers of financial statements, as well practitioners and students, obtain a better understanding of International Financial Reporting Standards (IFRS). It looks at IFRS from a Canadian perspective by examining and explaining IFRS requirements. It illustrates their application using extracts from financial statements of companies that have already adopted IFRS and discussing how those requirements differ under Canadian GAAP.

XBRL US issues interactive data tags for 2009

XBRL US has published the 2009 edition of the interactive data tags that the Securities and Exchange Commission will accept for coding financial statements in accordance with US generally accepted accounting principles. The “digital dictionary” of interactive tags uses Extensible Business Reporting Language, or XBRL, technology. (View the XBRL taxonomies online.)

Enhancing Our Commitment to a Sustainable Future: 2009 Progress Report

On Earth Day, 77 Chief Executive Officers from leading Uinted States companies cited their personal and corporate commitments to sustainable business practices in Business Roundtable’s Enhancing Our Commitment to a Sustainable Future: 2009 Progress Report. From developing new energy-efficient technologies to providing safe clean water sources in developing nations to creating business solutions that reduce customers’ and suppliers carbon footprints, Business Roundtable member companies are addressing a vast range of environmental, social and economic issues to help make the world more sustainable. (Listen to what CEOs are doing to support sustainable growth.)

PwC - 11 Reporting Tips

According to PricewaterhouseCoopers (PwC), there are 11 simple actions to make corporate reporting more accessible and effective, which is crucial in the current environment. PwC has updated the publication 11 Reporting Tips and added real examples to show how each tip might be implemented in practice. There are also quotes from investors explaining what they want from company reporting. (For more information, visit the PwC website.)

Responding to allegations of corporate wrongdoing

Most companies face issues relating to corporate wrongdoing at one time or another. The CICA publication 20 Questions Directors Should Ask about Responding to Allegations of Corporate Wrongdoing provides questions a director should ask about the company's response to allegations of corporate wrongdoing. In addition, the document relates a number of public examples of corporations which have faced allegations of corporate wrongdoing and dealt with them with varying degrees of success. (Read the CICA Media Release.)

Canada - Webinar on IFRS 1

Recognizing the significant effort needed to make the transition to International Financial Reporting Standards (IFRS), IFRS 1 was developed to help first-time adopters. A free webinar will be held on April 27, 2009 at 12:30pm to provide an overview of IFRS 1, including choices available and how they may impact the financial statements. The speakers will provide perspectives on IFRS 1 in practice – application of the rules and insights relevant to the Canadian environment. Communication is important throughout the transition process and so the session will also review relevant MD&A disclosure leading up to the changeover. The webinar series is made available by the Canadian Institute of Chartered Accountants (CICA) and is open to everyone. (Register for the Report on Industry free webinar and also access the archives of the webinar series.)

XBRL Canada Webinar on XBRL and IFRS

XBRL Canada will host an interactive webinar April 15, 2009 to discuss the impact of XBRL and IFRS adoption on the regulatory environment for Canadian companies as seen by the Securities and Exchange Commission (SEC) and the Canadian Securities Administrators (CSA). There is no charge for this event. For more information, read the CICA Media Release or visit the XBRL Canada Blog.

IT risk, IFRS and XBRL top concerns for internal audit

Gaining a better understanding of IT risk, International Financial Reporting Standards (IFRS) and extensible business reporting language (XBRL) top the "to do" list for internal audit executives this year, according to the 2009 Internal Audit Capabilities and Needs Survey conducted by Protiviti, a global business consulting and internal audit firm. The survey also shows information security is on the top concerns list, but indicates that internal auditors are becoming more comfortable with the data security and privacy measures companies are implementing.

O'Malley appointed Chair of Canada’s Accounting Standards Board

Patricia O'Malley, FCA, will take over as Chair of Canada’s Accounting Standards Board (AcSB) effective June 2009. She had served as Chair of the AcSB from October 1999 until her appointment to the International Accounting Standards Board (IASB) in January 2001. In June 2007, on completion of her term on the IASB, she became the IASB's Director of Implementation Activities, managing IFRIC Interpretations and improvements projects. (Read the Announcement.)

Guide to IFRS in Canada - 2009

The 2009 edition of The CICA's Guide to IFRS in Canada is now available. This reference guide provides an overview of the key aspects of the adoption of IFRS. Included in the guide is a comparison of Canadian standards to the related IFRS, as at July 31, 2008. The comparison highlights the key differences and notes any work in process that may affect the standard in thefuture. The comparison is organized in the order of the current Canadian standards. A table of IFRS in numerical order, cross-referenced to the CICA Handbook, and a table of IFRS with no current Canadian GAAP equivalents are also included. The guide contains helpful information on effects of the adoption of IFRS and implementation tips.

IASC Foundation issues IFRS Taxonomy 2009

The International Accounting Standards Committee (IASC) Foundation has released the IFRS Taxonomy 2009 and published the Due Process Handbook for XBRL Activities for public comments. (Read the Press Release.)

SEC releases new version of Financial Reporting Manual

The US Securities and Exchange Commission released a new version of its Financial Reporting Manual. This 267-page manual is intended for the SEC staff but, because it contains useful information for registrants, it has been posted to the SEC's website. The manual provides the SEC staff's interpretations of form requirements and portions of Regulations S-X and S-K, including guidance on topics such as the form and content of a registrant's financial statements, providing separate financial statements of businesses acquired or to be acquired and investments in entities accounted for by the equity method, pro forma financial information, Management's Discussion and Analysis, and non-GAAP financial measures. (Access the Financial Reporting Manual on the SEC website.)

NIRI 2009 survey on sustainability

The National Investor Relations Institute (NIRI) recently released the results of its first survey on sustainability practices. The survey revealed that respondents have a growing awareness of corporate social responsibility but relative to other current realities, do not consider it a pressing issue. Consequently, respondents generally disagreed that investor relations has played a leadership role in establishing sustainability strategy to date, with a majority disagreeing that sustainability occupies much of their thinking in their professional roles. Nevertheless, sustainability concerns are a growing reality. (View the NIRI slide deck of the survey results.)

Webcast on SEC's XBRL implementation requirements

The Securities and Exchange Commission (SEC) recently released its rules requiring public companies to submit their financial statements in XBRL format. A CPA panel will present a live webcast on April 1, 2009 (from 2 p.m. to 3:30 p.m.) to explain XBRL implementation requirements. The panel will discuss the effects of the SEC's rules on companies, accountants and investors and how this technology will change the way companies communicate and disseminate information to stakeholders. (Register for the free webcast online.)

NIRI Announces Standards of Practice — Implementing "Notice and Access"

On March 12, 2009, the National Investor Relations Institute (NIRI) Board of Directors approved the Standards of Practice — Implementing "Notice and Access" for review and comment. "Notice and Access" or "e-proxy" provides the investor relations officer (corporate issuer) with another option for distributing proxy materials and the annual report. These guidelines are voluntary. They review developing trends in current practice in "notice and access" and are based on early experiences of corporate issuers and a broad cross-section of service providers. They will be reviewed and updated annually to reflect the latest corporate practice and regulatory changes. (Read the NIRI IR Advisor.)

CFERF - Corporate Sustainability Reporting in Canada

In March 2009, the Canadian Financial Executives Research Foundation (CFERF) issued a report on Corporate Sustainability Reporting in Canada. The report identifies some of the major issues surrounding corporate sustainability reporting from the perspective of the senior financial executive. It demonstrates what leaders in the area consider to be both the most beneficial and challenging aspects of environmental/sustainability management and disclosure by their companies. A survey conducted by CFERF of 343 senior financial executives in conjunction with the conclusions reached through an Executive Research Forum held on May 28, 2008 form the basis of this report.

ICGN - Guidance on Non-financial Business Reporting

The International Corporate Governance Network (ICGN) has published a Statement and Guidance on Non-financial Business Reporting to emphasize its importance within the overall context of company reporting and to promote better understanding by setting out disclosure criteria that will assist companies in meeting the expectations of investors. As such, the ICGN Statement and Guidance aims to generate substantive dialogue between investors and company boards about the content and timing of non-financial business reporting.

IFAC Launches New Sustainability Framework

The Professional Accountants in Business (PAIB) Committee of the International Federation of Accountants (IFAC) has launched a Sustainability Framework. This is a new web-based tool designed to help professional accountants in business integrate sustainable ways of thinking and working in all business processes of their organizations. The framework provides four different perspectives - business strategy, internal management, financial investors and other stakeholders. It provides users with links, good practice guidance and other global resources.

Using Graphics in Corporate Reporting

The Canadian Institute of Chartered Accountants (CICA) has recently published a research report on Using Graphics in Corporate Reporting. The report sets out basic principles and best practices for preparing graphics. It will help management ensure that graphics are accurately and effectively portrayed in a manner that investors and other stakeholders reading corporate reports can easily understand. A complimentary companion booklet entitled Practical Guidance for Preparing Graphics has also been released.

Resources on the Global Financial Crisis

The Canadian Institute of Chartered Accountants (CICA) has developed information resources to help leaders in Canada’s business and governance communities manage during these challenging times. The resources on the Global Financial Crisis are provided along with relevant commentary, guidance and announcements from Canada's Accounting Standards Board (AcSB), Auditing and Assurance Standards Board (AASB) and Accounting Standards Oversight Council (AcSOC).

Corporate Responsibility in the Age of Irresponsibility

What is the future of corporate responsibility in light of economic turmoil? Although many issues remain unclear, there are a couple of conclusions to take from the crisis. The first is that this was a crisis of responsibility, or lack thereof. The second is that it will only be repaired by the re-establishment of trust between companies (especially those in the financial sector) and their stakeholders. Logically, this presents a perfect entry-point for CSR to be finally recognized by the business community as a force of necessary good and long-term sustainability. The emphasis placed by CSR on the role of corporations in the larger social and environmental contract is key in preserving an ideal equilibrium of confidence and responsibility. (Read the IISD paper, Corporate Responsibility in the Age of Irresponsibility: A symbiotic relationship between CSR and the financial crisis?)

Global megatrends 2009

The world is changing more rapidly than ever. Globalization continues its march. Gaps in power between developed and emerging countries continue to narrow, driven in part by the politics and economics of energy. The financial landscape is in turmoil, driving increased regulation. Aging populations and the different demands of the younger generation challenge the workforce model that has existed for decades. Technology continues to alter how we communicate and act. And climate change concerns challenge how businesses operate. (Read the Ernst & Young report on Global megatrends 2009.)

CICA Data Level Assurance Survey

The advent of XBRL raises the possibility that there will be an increase in reporting of data outside of the financial statements, including disaggregated data that might ultimately be included in the financial statements. Such data might also include the various performance measures that are presently being disclosed. In addition, there may be a demand for assurance on these data disclosures. (Complete the CICA survey which is part of a research study on the topic of data level assurance.)

Report of the 21st Century Disclosure Initiative

The 21st Century Disclosure Initiative has delivered a report to the US Securities and Exchange Commission (SEC) setting out a blueprint for a modernized disclosure system. The report recommends that the SEC design and implement a new disclosure system in which interactive data would replace plain-text disclosure documents. On January 15, 2009, William D. Lutz, Director of the 21st Century Disclosure Initiative, discussed the report in a speech to the New York chapter of the National Investor Relations Institute. (Read the Report and a transcript of the Speech / Presentation.)

PwC good practice examples

Effective communication with the market in today's tough environment is more important than ever. Therefore, PricewaterhouseCoopers (PwC) has updated its Corporate Reporting site with new examples. The site features over 130 good practice examples relevant to today's reporting. These are drawn from forward-thinking companies worldwide in the 2007 and 2008 reporting season.

Global challenges demand global solutions

The world’s business and government leaders only have a short time to develop effective solutions to the current economic crisis, participants at this year’s World Economic Forum Annual Meeting were told. The message is that leaders must continue to develop a swift and coordinated policy response to the most serious global recession since the 1930s: global challenges demand global solutions. (Read The Global Agenda 2009.)

Impact of IFRS on the Canadian Technology sector

The transition to International Financial Reporting Standards (IFRS) for technology companies throughout Europe and Australia has shown there are some interpretation and application challenges unique to technology companies. A new publication by PricewaterhouseCoopers (PwC) aims to highlight some of the significant differences between Canadian GAAP and IFRS that will specifically impact the technology sector. (Read PwC's Impact of IFRS on the Canadian Technology sector.)

World’s leading accounting bodies call for global debate

The Global Accounting Alliance (GAA), a group of the world’s leading professional accounting bodies, has concluded that there is a need for a global debate on how to reduce complexity in financial reporting and how to accelerate the move towards principles-based financial reporting standards (IFRS). It notes that a financial reporting environment which emphasizes professional judgment, rather than adherence to a rulebook, would allow preparers and auditors to focus on the true economic substance of financial transactions. The GAA report, Getting to the heart of the issue – Can financial reporting be made simpler and more useful? draws on interviews conducted with financial regulators from the UK, Canada, Australia, China, the United States of America, South Africa, France, the European Commission and international regulators. Interviewees also included a leading US litigation lawyer and representatives of the world’s leading accounting and auditing practices.

Financial Reform: a Framework for Financial Stability

The Group of Thirty (G30) has issued a report called "Financial Reform: a Framework for Financial Stability." The report addresses flaws in the global financial system and provides 18 specific recommendations to: improve supervisory systems by redefining the scope, boundaries and structure of prudential regulation; enhance the role of the central banks; improve governance practices and risk management; address pro-cyclicality via capital and liquidity standards; enhance accounting practices; strengthen the financial infrastructure; and increase coordination internationally.

Climate change moving to the top of the agenda

Climate change was once a cause espoused by earnest people handing out flyers on street corners. Today, information on climate change is presented — to shareholders no less — in smartly designed sustainability reports. For some of the people who prepare those reports, the corporate managers and executives, climate change is no longer a cost that needs to be grudgingly acknowledged. Today, many corporations view climate change as an issue that, properly managed, can be used to build competitive advantage and capitalize on business opportunities. From the back burner, climate change has moved closer to the top of the agenda. (Read the article Corporate Climate Change in the January/February 2009 issue of CAmagazine.)

Corporate Social Responsibility in Canada - 2008 Ivey-Jantzi Research Report

The Ivey Business School's Centre for Building Sustainable Value has released the 2008 Ivey-Jantzi Research Report on Corporate Social Responsibility in Canada. The Report shows that trends in corporate social responsibility (CSR) are encouraging. Firms are increasingly investing in CSR programs and establishing policies that support environmental and social performance. The Centre is home to the Research Network for Business Sustainability which connects over 200 researchers across Canada and whose work reaches over 1000 practitioners worldwide.

Canada’s CA profession providing sustainability strategy

Canada’s Chartered Accountants were active participants at a recent international gathering focusing on ways to enable environmental and social performance to be better integrated into an organization’s strategy and reporting. On December 17, 2008, more than two hundred representatives from the corporate sector, the investment community, academia and others met in London, England for the Prince’s Accounting for Sustainability Forum. The Prince of Wales first established his Accounting for Sustainability group in the summer of 2004 to research and develop systems that will help both public and private sector organizations incorporate sustainability into day-to-day decision making as well as financial and management reporting. Making a presentation at the event, Dave Pollard, CA, Vice-President, Knowledge Development, with the Canadian Institute of Chartered Accountants (CICA) suggested ways to more effectively incorporate sustainability assessment into an organization’s strategy and risk management processes and reporting. (Read the CICA Media Release.)