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.)