US - SEC Approves Statement on Global Accounting Standards

The US Securities and Exchange Commission has voted to issue a statement that lays out its position regarding global accounting standards and makes clear that the Commission continues to believe that a single set of high-quality globally accepted accounting standards would benefit US investors. (Read the SEC Press Release, which includes the Commission Statement in Support of Convergence and Global Accounting Standards, Text of Chairman's Statement and the related video - Chairman Schapiro Discusses Global Accounting Standards.)

5 Potential Business Uses for the iPad

Does Apple’s iPad tablet have a place in the work setting? Does it provide value that a computer or an iPhone doesn’t? Should tablets be purchased for employees? A recent article explores a few practical business cases for the iPad. It may help in deciding whether to have one as part of the work arsenal. (Read the article 5 Potential Business Uses for the iPad at Open Forum online.)

FEI comments on convergence standards

The Financial Executives International (FEI) Committee on Corporate Reporting (CCR) has filed a series of comment letters with the Financial Accounting Standards Board (FASB) Chairman, Robert Herz, and the International Accounting Standards Board (IASB) Chairman, Sir David Tweedie. The letters address concerns regarding the effective dates of the major convergence standards outlined in the FASB and IASB Memorandum of Understanding (MoU). FEI states that the current proposed dates present challenges to realizing a high quality implementation. It recommends that the Board deliberate the effective dates and transition of the major convergence standards holistically, rather than on a standard-by-standard basis, taking into consideration the impact on companies and the interdependencies among the standards. (Read the article FEI Provides Recommendations to FASB and IASB on Convergence Standards at PR Newswire online.)

IASC Foundation publishes XBRL proposed IFRS Taxonomy 2010

The International Accounting Standards Committee (IASC) Foundation has published for public comment an exposure draft of the International Financial Reporting Standards (IFRS) Taxonomy 2010. The proposed taxonomy is consistent with IFRS and the IFRS for Small and Medium-sized Entities (SMEs). (Read the IASB Press Release and obtain more information on the IFRS Taxonomy 2010 webpage.

Good intentions towards corporate social responsibility

When the going gets tough, costly good intentions can go out the window. Company spending has been squeezed by the global recession and budgets for corporate social responsibility (CSR) have suffered disproportionately. A survey of UK businesses by KPMG and Business In The Community found a third of companies cut their corporate social responsibility budgets in 2009. Corporate philanthropy has also been hit, with a study by the Giving USA Foundation revealing that charitable donations by US companies fell by 8% in inflation-adjusted terms in 2008. (Read the article Good Intentions in the Wall Street Journal online.)

Report highlights sustainability reporting trends

A new CSR Insight Report examines various trends in sustainability reporting. Such reporting, for example, has been slower to evolve in the United States than in European countries. In addition, it remains a voluntary practice in most of the world. (Read the article 10 Trends in Sustainability Reporting at Environmental Leader online.)

Canada - IFRS and the Opening Balance Sheet

Canadian companies adopting International Financial Reporting Standards (IFRS) are required to prepare an opening IFRS balance sheet on the transition date. This statement of financial position must reflect retrospective application of any accounting policies that will change on adoption of IFRS. For companies with a calendar year end, the transition date is January 1, 2010 (which is different than the adoption date of January 1, 2011). Practically speaking, it is a re-statement of the December 31, 2009 Canadian GAAP balance sheet, in accordance with accounting policies under IFRS. (Read more at In the Loop on the Canadian Standards in Transition website.)

Understanding the pros and cons of principles-based accounting standards

The "U.S. Perspective" panel at the AICPA/IASC Foundation Conference on International Financial Reporting Standards (IFRS) featured six financial industry heavyweights. It evolved into a discussion about the merits and challenges of a principles-based system of accounting. An article by the American Institute of Certified Public Accountants (AICPA) offers a glimpse into their opinions and insights on the two different accounting approaches, as well as the far-reaching ramifications of the US transitioning to IFRS. (Read the article Merits and Challenges of Having Fewer Rules at IFRS.com.)

No Social Media Without Strategy

In this online video at Open Forum, John Jantsch, award winning social media publisher, talks about finding strategic ways to deploy social media assets based on an organization's individual brand’s needs. For example, he notes that “Every small business needs to have a blog” and explains why blogs are a great way to share valuable, education-based content with customers. (View No Social Media Without Strategy; You Blog? Who Cares? Customers Will; other clips from this presentation; and the entire OPEN CES experience.)

C-Suite Survey: 2009 in Review and the Challenges of 2010 and Beyond

This quarterly C-Suite Survey of over 158 chief executive officers, chief financial officers and chief operating officers was conducted between November and December 2009 by the Gandalf Group. It was published by The Globe and Mail and Business News Network, with sponsorship by KPMG Canada. The report covers their views on: a look back on 2009, the year ahead, executives’ salaries, federal finances and managing with deficits, and U.S. and Canadian leadership. A review of 2009 sees executives’ assessments of the economy completely turn around. In February 2009, executives were in the grips of a recession. Now most are predicting modest economic growth for 2010. The majority agree the markets rallied faster than expected in 2009. One in three now predict strong growth for their companies. Most expect their companies to pay out bonuses, yet the majority also agree that the recession demonstrated executive pay had become too generous. (Read the C-Suite Survey: 2009 in Review and the Challenges of 2010 and Beyond.)

What’s Next: Stay ahead of the future

What’s Next is a trends report offering clear, concise and non-sensationalist commentary on trends in society, business, science & technology, government and the environment. Each issue covers trends across twelve sectors and speculates about future risks and opportunities.

Keeping your head above water… Recent issues in financial reporting

PricewaterhouseCoopers (PwC) Canada has published its latest Financial Reporting Release dated January 2010. The publication is called Keeping your head above water… Recent issues in financial reporting. Topics covered include: IFRS in Canada; Canadian GAAP for private enterprises; Canadian GAAP for pension plans; Canadian GAAP for not-for-profit organizations; Auditing standards in Canada; Towards a single global GAAP; Financial instruments; Loans and trade receivables, and related revenue; Provisions; Securities Commissions’ continuous disclosure reviews; and Emerging issues committee abstracts. (To learn more or to download previous editions of this publication, visit PwC Canada website.)

Making financial reporting simpler and more useful: The way forward

The Global Accounting Alliance (GAA) has published a report titled Making Financial Reporting Simpler and More Useful: The Way Forward. The report summarizes the range of discussions and views expressed at a series of roundtable events held in London, Beijing and New York in 2009. It examines the many emerging thoughts, ideas and actions proposed. Finally, the report outlines actions which should lead to financial reporting becoming simpler and more useful.

Using social media tools in small businesses

For a small business starting an online marketing strategy, there are five tools that are all you need right now to build your business’ basic social infrastructure online. Think of them as the frame of a new house: they provide the initial shape and security so that you can easily build on top of them. (Read the article The 5 Social Media Tools Small Businesses Need Right Now at Open Forum online.)

Creating social media policies

As social media continues to become more mainstream, the chances that company employees will use these online tools for personal and professional purposes are high. If staff are encouraged to be brand representatives, using the social web to help grow a company and engage with customers, then lines could be unknowingly crossed. A social media policy can set the foundation for expectations, empower employees to tweet or blog without fear, reward social media problem-solving, and educate staff on things to avoid in both personal and professional status updates. It is smart business to have a social media policy and some of the biggest brands have already paved the way and published policies that others can emulate. (Read the article 3 Great Social Media Policies to Steal From at Open Forum online.)

Investors: Climate-change policies and disclosures needed

Investor groups representing $13 trillion in assets are calling on governments to adopt strong national climate policies that could trigger the flows of private capital needed to build a low-carbon global economy. The groups also are pushing for mandatory disclosure in public company filings of material climate-related risks and the programs in place to manage those risks. The American Institute of Certified Public Accountants (AICPA) has an initiative to participate in the development of universally accepted accounting and reporting standards for sustainable activities and risks that meet the needs of investors and businesses. (Read the article Investor Groups Call for Climate Change Policies and Disclosures at Journal of Accountancy online.)

Global Risk Report 2010

The World Economic Forum has published Global Risk Report 2010. The document provides political and business leaders with a framework for further discussion of a risk landscape that is increasingly complex and urges a consideration of the longer term, global implications of risks in areas beyond their immediate focus. The key findings are as follows:

• The events of the past year have revealed a fundamental need to change thinking on global risks and how they are managed. With unprecedented levels of interconnectedness between all areas of risk, the report stresses that the need to combat governance gaps globally is greater than ever. It argues that this can only be addressed by an overhaul of current values and behaviours by decision-makers to improve coordination and supervision.
• Fiscal crises and unemployment, underinvestment in infrastructure – especially in energy and agriculture – and chronic disease are identified as the pivotal areas of risk over the next years.
• Other risks identified as equally systemic in nature, and requiring better global governance, are transnational crime and corruption, biodiversity loss and cyber-vulnerability.

CICA/RBC Business Monitor (Q4 2009)

This CICA/RBC Joint Report interviews chartered accountants (CAs) working in senior executive positions for Canadian businesses, to determine their views regarding the economic prospects for their company, province and Canada in the upcoming year. The key findings are as follows:

• After two consecutive quarters of significant growth in optimism, the final quarter of 2009 was virtually unchanged from the previous quarter - 48% of respondents expressed optimism in the economy over the next twelve months, compared to 46% from Q3 2009. Of the remaining Q4 2009 respondents, 39% were neutral while 13% were pessimistic about the year ahead.
• On average revenues (+ 3.3%), profits (+3.2%) and employment numbers (+0.8%) are expected to increase in the next twelve months. In the same quarter a year ago, projections called for decreases in all three categories.
• In summary, 23% of respondents stated that their company’s profits did not decline during the recession.

(Read the CICA Media Release and Background Papers on the Survey.)

Canada - Innovation, Risk and Control

The Canadian Comprehensive Auditing Foundation (CCAF) has published research on promoting innovation, risk management and control in public sector organizations. As governments in Canada and abroad address fiscal pressures, they will be looking for ways to improve productivity and management practices for all continuing programs. Based on extensive consultations with public sector managers and auditors across Canada, “Innovation, Risk and Control” represents a practical manager’s guide to encouraging innovation, understanding control, managing risk, reducing red tape… and delivering better results for citizens. The CCAF will be following up by publishing case studies and other tools that will help managers apply the guidance contained within this document.

SEC Comes Clean on Climate Disclosures

New guidance from the US Securities and Exchange Commission (SEC) will prompt companies to reexamine how they explain the effects of climate change on their business in regulatory filings. The clarification from the regulator arrives just as companies with a calendar year-end are putting together their 10-Ks. Investor groups have been critical of companies for their lack of candor about climate-change risk, and of the SEC for allowing them to get away with it. (Read the SEC Press Release and the article SEC Comes Clean on Climate Disclosures at CFO.com.)

Canada - Report on Industry e-newsletter and webinars

The Canadian Institute of Chartered Accountants (CICA) periodically publishes an electronic newsletter called Report on Industry (ROI). The complimentary ROI e-newsletter is a valuable source of timely synopses of news, research, events, best practices, standards and regulations, recent publications and more – with links to the web-based sources – that can help interested parties keep up-to-date. The Report on Industry webinar, offered 6 times a year, highlights information on latest trends and views, standards and regulations, information technology and legal matters. (Visit the CICA website for more information and to subscribe.)