Social media investor relations reaches tipping point

According to a recent post on IR Web Report, "IT HAS become a tradition of sorts that quarterly earnings season kicks off when aluminum giant Alcoa Inc. (NYSE:AA) reports its results. ...when the company announced its results, much of the activity and evident investor interest took place outside of the company’s usual channels, on its social media and document sharing accounts. While this might once have seemed remarkable, it’s now fast becoming standard practice for scores of companies – and many more will likely join the parade in the coming weeks."

"In fact, company disclosure channels that once seemed innovative – such as investor relations websites, webcasting and PR wire services – are struggling to stay relevant as investors grow accustomed to receiving information from companies in real-time on their favorite social networks in formats that are easier to access and use. These changes are irreversible and were very much in evidence as Alcoa posted its numbers this week. ...I can’t say this loud enough: SOCIAL MEDIA IS NOW MAINSTREAM, and companies that haven’t yet started using social media in their IR programs are in danger of finding themselves talking to increasingly smaller audiences. We have reached the tipping point for social media in investor relations. If you’re not using social media in your IR program yet, you need to make it a priority and start right away." (Read the full article "Social media investor relations reaches tipping point" by Dominic Jones at IR Web Report online.

PwC's 2011 US GAAP and IFRS convergence survey results

US financial reporting will undergo an unprecedented level of change within the next several years. On one hand, US companies face convergence between US GAAP and IFRS, affecting several major accounting standards. On the other hand, IFRS conversion warrants consideration. IFRS is already impacting business decisions, and not simply through non-US subsidiaries. Understanding both of these major changes, and their business and operational implications, is an imperative for US companies. US GAAP convergence & IFRS resources are available at PwC online, including PwC's 2011 US GAAP and IFRS convergence survey results.

IASB and FASB Report Progress on Convergence

The International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board (FASB) have published a progress report on their joint convergence projects. Since their previous report in November 2010, the boards have completed five projects. In the next few weeks, the IASB will issue new standards on consolidated financial statements (including disclosure of interests in other entities), joint arrangements and post-employment benefits. Both boards will issue new requirements in relation to fair value measurement and the presentation of other comprehensive income.  In addition, the boards have made progress on the three remaining Memorandum of Understanding (MoU) projects — financial instruments accounting, leasing and revenue recognition — as well as insurance accounting. The boards have also agreed to extend the timetable for the remaining priority convergence projects beyond June 2011 to permit further work and consultation with stakeholders. The convergence projects are targeted for completion in the second half of this year. (Read the full article "IASB and FASB Report Progress on Convergence" at Journal of Accountancy online.

Confronting Complexity: How business globally is taking on the challenges and opportunities

A new study from KPMG International examines the causes and impact of complexity among businesses globally. The study shows that businesses are taking significant action to address complexity, particularly in the areas of information management, business organization and human resources, but success has been mixed. More than 90% of senior executives say their organization’s success depends on managing today’s complex business issues, but less than half believe the actions they are taking to manage complexity have been very effective. The study, Confronting Complexity: How business globally is taking on the challenges and opportunities, is based on interviews with 1,400 senior executives in 22 countries. The research found that at least 7 out of 10 executives believe complexity can create new opportunities for their businesses, including gaining competitive advantage, creating better strategies, expanding into new markets and improving efficiencies.

IIRC to meet in New York City on May 13, 2011

The International Integrated Reporting Committee (IIRC) will be meeting in New York City on May 13, 2011. The objective of the meeting is to discuss and agree on a Discussion Paper on Integrated Reporting. That Paper is to be released for business and investor testing and public consultation in June 2011. It will present proposals for an Integrated Reporting framework at the time of the G20 Finance Ministers meeting in October 2011. The IIRC is also undertaking a pilot program to give organizations the opportunity to test and provide feedback on the development of the Integrated Reporting framework. The initial phase of the pilot program will involve company and investor testing of the Integrated Reporting Discussion Paper in June-July 2011, followed by a full pilot program in September 2011 for a two year reporting cycle. (Read the IIRC announcement and get More information about the pilot program.)

Canadian regulator issues guides on IFRS

The Ontario Securities Commission (OSC) has issued two high-level guides on the impacts of IFRS: Deciphering IFRS - What Analysts Need To Know About IFRS Transition and Investing in the New Era - What Investors Need To Know About IFRS Transition. The guides outline a number of questions for analysts and investors to consider and are available on the OSC website.

CEO Round Table - What do the leaders of the top seven CA firms think about key issues?

In December 2010, Kevin Dancey, president and CEO of the Canadian Institute of Chartered Accountants (CICA), hosted a round table discussion with the CEOs of the top seven accounting firms. The discussion covered a wide range of topics of interest to the profession. Participants included Chris Clark of PricewaterhouseCoopers, Keith Farlinger of BDO Canada, Trent Henry of Ernst & Young, Alan MacGibbon of Deloitte, Phil Noble of Grant Thornton, Daryl Ritchie of Meyers Norris Penny and Bill Thomas of KPMG. Also present was Bill MacKinnon, chairman of the CICA. Read what these leaders had to say about key issues in the article "CEO Round Table" at CAmagazine online.

Integrated Reporting Workshop Videos - Harvard Business School

A series of about 30 YouTube videos has recently been posted by the Harvard Business School. The videos cover the various speaker presentations at the Workshop on Integrated Reporting which was held at the Harvard Business School on October 14-15, 2010. The Workhop was discussed in a previous blog posting on December 1, 2010.

FEE Factsheet on Integrated Reporting

Debates and developments around the concept of “integrated reporting” are growing in importance. According to the FEE (Fédération des Experts-comptables Européens - Federation of European Accountants), “integrated reporting is a holistic approach to enable investors and other stakeholders to understand how an organisation is really performing. Addressing the wider as well as longer-term consequences of decisions and actions, an integrated report makes clear the link between financial and non-financial value. The relationship between an organisation's strategy, governance and business model should be transparent through such reporting. It also gives an analysis of the impacts and interconnections of material opportunities, risks and performance across the value chain.” The FEE represents 45 professional institutes of accountants and auditors from 33 European countries, including all 27 EU Member States. (Read the FEE Factsheet on Integrated Reporting.

The whys behind sustainability

Compliance with legal and regulatory requirements is the most frequently cited driver of company sustainability initiatives in Canada, the UK and the US, according to a survey conducted jointly by the Canadian Institute of Chartered Accountants, the Chartered Institute of Management Accountants and the American Institute of Certified Public Accountants. Managing risk to the reputation of the company brand was the next most likely response, followed by achieving competitive advantage and long-term profitability. Read the article “The whys behind sustainability” in CAmagazine online.