AICPA Top Technology Initiatives Survey 2011

The American Institute of Certified Public Accountants (AICPA) 2011 Top Technology Initiatives Survey rates the proliferation of smartphones, tablet computers and mobile devices in the workplace as the top business technology concern. Mobile devices edged out information security, which had topped the list of tech concerns several years in a row. The survey provides feedback on the technology issues that are of greatest importance, as well as emerging technologies. (Read the article "Mobile Devices Top CPAs' Tech Survey Rankings" in the Journal of Accountancy online.)

FINTRAC ANNUAL REPORT 2010 - Ten Years of Connecting the Money to the Crime

During 2010, FINTRAC, as Canada’s financial intelligence unit, celebrated its tenth anniversary. (Refer to the publication FINTRAC ANNUAL REPORT 2010 - Ten Years of Connecting the Money to the Crime.)

FINTRAC made 579 (556 in 2008-09) disclosures of information relevant to investigations of money laundering, terrorist financing, and/or threats to the security of Canada. Turnaround time on cases improved 17%, and requests for assistance went up 36%. By using electronic media for case disclosures, it sharply reduced delivery times, and provided a more flexible product for law enforcement and intelligence partners to work with.

FINTRAC published a new series of strategic intelligence assessments focusing on terrorist groups and countries arousing national security concerns, as well as reports informing partners about current and emerging typologies and trends in money laundering and terrorist financing. It was also the Canadian lead for the FATF typology project about the use of new payment methods for money laundering purposes.

The Office of the Privacy Commissioner (OPC) issued a report praising the Centre's management of personal information, and recommended the appointment of a Chief Privacy Officer. FINTRAC was pleased to implement this and other OPC recommendations.

(See Highlights from FINTRAC's 2010 Annual Report.)

Role of audit committees in the transition to IFRS

Audit committees play an important role in the transition to International Financial Reporting Standards (IFRS).  National Instrument 52-110, Audit Committees, requires audit committees to review the issuer’s interim financial statements, related MD&A and interim earnings press releases before the information is made publicly available. For an issuer filing its first IFRS interim financial report, this report will contain the expanded disclosure required by IFRS 1 and securities law. In many organizations, the board looks to the audit committee for insight into the soundness of the entity’s transition strategy and to monitor and review its progress. In addition, the audit committee can be an important sounding board for management. The Board/Audit Committee webpage on the CICA’s IFRS website provides a number of helpful resources.

Top 10 CSR Research Findings in 2010

The Network for Business Sustainability has prepared a list of the Top 10 CSR Research Findings in 2010 related to Corporate Social Responsibility (CSR). Taken from top management journals, these research insights help senior leaders to kick-start their sustainability planning for 2011. The best research findings related to CSR include: Innovation + Sustainability = Profit; Beat Burnout, Boost Performance; Promote CSR Internally to Engage Staff; Put Product Quality First, CSR Second; Get Buy-In Today for CSR Projects Tomorrow; Prioritize Your CSR Activities; Understand How CSR Drives Performance; Revisit Your Reputation; Do Right by Your Stakeholders; and Use Standardized Metrics for Carbon.

Global Survey Findings on Accounting for Sustainability Practices

The Chartered Institute of Management Accountants (CIMA), the American Institute of Certified Public Accountants (AICPA), and the Canadian Institute of Chartered Accountants (CICA) have published a survey measuring the state of accounting for sustainability in the UK and North America. It shows that compliance with regulatory requirements remains the most common driver of business sustainability (34% of large companies and 24% of small companies). In addition, 32% of large companies said managing reputation risk is a key driver while 19% of small companies identified cost-cutting efficiency. Also, 79% of large companies have a formal sustainability strategy, compared to 33% of small companies. The survey, called Evolution of corporate sustainability practices: Perspectives from the UK, US and Canada,  is available online.

CICA/RBC Business Monitor Report (Q4 2010)

The quarterly CICA/RBC Business Monitor indicates that optimism about the Canadian economy among executive Chartered Accountants has stabilized and, like the previous quarter, respondents are much more likely to be optimistic about their own businesses (41% are optimistic about the Canadian economy over the next 12 months and 56% are optimistic about how their company will perform over the next 12 months). The Q4 2010 CICA/RBC Business Monitor webinar will take place on February 23, 2011 at 12:30pm (register online). RBC Assistant Chief Economist Dawn Desjardins will give an economic update and answer questions following the webinar. (Read the CICA Media Release.)

Canada’s CAs recommend three paths to red tape reduction

Eliminating, simplifying and automating regulatory processes are three paths identified by the Canadian Institute of Chartered Accountants (CICA) to reduce red tape at the federal level. The CICA recently participated in a Toronto roundtable discussion organized by the federal Red Tape Reduction Commission. The Commission asked participants to identify red tape irritants that hinder business growth in Canada. Read the CICA Media Release.

Integrated Reporting – Understanding the requirements

KPMG (South Africa) has published a short guidance booklet on Integrated Reporting – Understanding the requirements. It states that "the trend in sustainability reporting has evolved from a corporate responsibility or ethical perspective to one of long-term risk management and value creation. The core concepts revolve around an inclusive approach and integrated reporting to provide a holistic and forward-looking picture of the reporting organization to the multitude of stakeholders who are impacted by and who in turn impact the reporting organization." The guidance includes an “Integrated Reporting Road Map” that contains four phases and 11 steps to consider.

Keeping your head above water… Recent issues in financial reporting

PricewaterhouseCoopers (PwC) Canada has published its latest Financial Reporting Release dated January 2011. The publication is called Keeping your head above water… Recent issues in financial reporting. Topics covered include: Transitioning to IFRS; Rate-regulated Accounting; Investment Companies; Recent IFRS Developments Affecting Transition; Debt Covenants under IFRS; Global GAAP Convergence; Financial Instruments; Hedge Accounting; and Life after Convergence. (To download previous editions of this publication, visit the PwC Canada website.)