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.)