Harnessing the opportunities and managing the risks of social media

According to a recent publication by Deloitte, virtually every organization is either using or considering social media for internal and external use. Now, the question is how to use social media effectively, while managing the risks it presents for businesses. Social media presents unparalleled opportunities for growth, innovation, customer and competitive intelligence, early risk identification and diffusion. (To learn more, read Enterprise 2.0: Harnessing the opportunities and managing the risks of social media.)

Integrating sustainability into business practices: a case study approach

Integrating sustainability into business practices: a case study approach was prepared for the Institute of Chartered Accountants in Australia by Kiewa Consulting Pty Ltd. This paper provides some business case studies that shed light on the journey towards sustainable business practices, and some simple steps that should help business leaders take their part in it. The five cases studies include the following organizations: Blackmores; Intrepid Travel; National Institute of Water & Atmospheric Research (NIWA); Woolworths; and World Vision Australia. (Also see Spotlight on integrated reporting.)

Tomorrow’s corporate reporting – a critical system at risk

Corporate reporting matters: it plays an essential role in the effective functioning of the market economy. It should make an important contribution to our understanding of, and respect for, business and the financial sector as creators of value by explaining what drives that value now and in the future. The Chartered Institute of Management Accountants (CIMA), PricewaterhouseCoopers and Tomorrow’s Company set up a global study to explore the barriers to the effective development of corporate reporting and the report summarizing the research has now been published. The report explains the findings from the perspective of a number of market participants – companies, auditors, shareholders, investors, standard setters and regulators. Looking forward the research team has also set out the key principles of an agenda for debate and a roadmap for change in the corporate reporting system. (Visit the CIMA website and download Tomorrow’s corporate reporting – a critical system at risk.)

CICA/RBC Business Monitor Report (Q1 2011)

The majority of executive Chartered Accountants (CAs) (64%) expressed optimism about the Canadian economy in the first quarter of 2011, marking a notable increase of 23% over the previous quarter, according to the latest CICA/RBC Business Monitor (see the Backgrounder for details). Canadian interest rates and consumer confidence were the top two reasons cited among respondents for the surge in optimism to near record levels. In addition, 66% of respondents in the first quarter survey were optimistic about their company’s prospects over the next year, up 10% from the previous quarter. (Read the CICA Media Release.)

Defined benefit pensions at tipping point

A new survey of more than 150 Canadian pension plan sponsors from professional services firm Towers Watson indicates that just over half (51%) of the private sector defined benefit (DB) plan respondents have now converted their plans to defined contribution (DC) arrangements for current or future employees - up from 42% in 2008. The survey also reveals that recent improvements in economic conditions have had virtually no impact on executives’ perception of a DB funding crisis. The percentage of respondents who agree there is a pension funding crisis has remained at historic highs since the financial downturn of 2008. The survey found that more than half of respondents (56%) believe that the funding crisis will persist for the long term, compared with 34% who held this view in 2008 before the recession. Just under one third (32%) perceive funding challenges to be a cyclical phenomenon. (Read the article “Definedbenefit pensions at tipping point” at Towers Watson online.)

Investors spend just 5 minutes on annual reports, according to the stats

“WEB traffic statistics compiled by Google show that investors are spending less than 5 minutes viewing annual meeting materials hosted by large vendors – and younger investors are almost entirely ignoring the documents. The statistics, which aggregate traffic to hundreds of online annual reports and proxy statements hosted by large vendors such as Thomson Reuters, Broadridge Financial Solutions and Computershare, suggest that companies’ disclosure documents are failing to hold the interest of web users, particularly younger users between the ages of 18 and 34 who have grown up with the web. Further evidence of a lack of investor interest in online annual reporting information is provided by statistics compiled using PostRank. They show little or no interest in company annual reports among users of social networking websites, as measured by the number of times they share links to online annual reports.” (Read the full article “Investors spend just 5 minutes on annual reports – stats” by Dominic Jones at IR Web Report online.

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. The current issue of What’s Next is available free of charge on an online basis. Readers might also like to check out the Top Trends Blog.

That's Summa Story - From the Caves to Cafe Pacioli

Accountants are generally recognized as making a valuable contribution to society, by providing the information that allows entrepreneurship to flourish, business to operate efficiently, stakeholders’ interests to be protected, shares to be fairly priced, and taxation and audit requirements to be satisfied. Accounting, however, has not always enjoyed such an established position, and today there is often a tendency to take the profession’s status for granted. It is interesting, therefore, to examine the factors that have brought accounting to the preeminent place that it occupies today.To learn more about the history of accounting, read the article "That's Summa Story! From the Caves to Café Pacioli" by Derry Cotter, FCA. To access the full text of this article, see the Digital Edition of Accountancy Ireland, February 2011, (pages 50-53).

Using electronic communications between CA firms and clients

Almost all CA firms are communicating at least some information to their clients electronically, according to the CICA’s most recent Managing a Public Practice (MAPP) survey on computerization. Nearly all firms represented in the survey send e-mails (99%), PDFs (96%) and other correspondence (93%) to their clients electronically. Four out of five firms (80%) send corporate tax returns to clients electronically. Personal tax returns (82%) and financial statements (87%) are also sent electronically by more than 80% of firms. The results are from a broader three-part MAPP CA practice benchmark survey conducted biannually with the partners of CA firms across Canada. (Read the article “Electronic Update” at CAmagazine online.)

ICAEW Library and Information Service - Gateway on Environmental, social and sustainability reporting

Environmental, social and sustainability reporting have grown substantially over the last decade.  The Institute of Chartered Accountants inEngland and Wales (ICAEW) provides access to a range of articles, publications and online resources including information on reporting trends and developments. (Visit the ICAEW Library and Information Service - Gateway on Environmental, social and sustainability reporting.)

Financial Reporting in Canada under IFRS 2011

Financial Reporting in Canada under IFRS 2011 is a concise, practical reference source that looks at the application of International Financial Reporting Standards (IFRS) from a Canadian perspective. It examines and explains IFRS requirements, illustrating their application using real-world extracts of financial statements from companies that have already adopted IFRS. It also includes: comparisons of the requirements under Canadian GAAP and IFRS; tables, charts and diagrams summarizing the requirements in easy-to-read point form; and examples of application presented in short case studies. The publication is available for purchase from the CAstore online. A free sample chapter (Chapter20 – First-time Adoption of IFRS) is also available online.