20 Questions Businesses Should Ask About Privacy

Privacy has become a significant business risk to organizations that collect, use, retain and disclose personally identifiable information about customers and employees. As a result, business owners, board members and executive management need to assess whether their handling of personally identifiable information complies with numerous privacy laws and regulations. To provide guidance, the AICPA issued a Business Brief on April 10, 2012 called 20 Questions Businesses Should Ask About Privacy. It was prepared by Nancy Cohen, CPA.CITP, CIPP, CGMA, Senior Technical Manager, AICPA Member Specialization & Credentialing.

The questions contained in that Brief were adapted from the guidance booklet, 20 Questions BusinessesShould Ask About Privacy previously published by the Canadian Institute of Chartered Accountants (CICA). They are key questions a business should ask with the aim of understanding privacy risk, implementing a privacy program, managing privacy risk and obtaining privacy assurance.

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.

Smarter Evidence and Discovery Management

"There is no question that the influence and role of eDiscovery in litigation in Canada continues to develop. While eDiscovery has been a fixture in the US for many years, there has been a slower, pragmatic and perhaps sensible approach to the disclosure of electronic documents in this country. However, as documents are now overwhelmingly formed and maintained primarily in electronic form, it is acknowledged that eDiscovery has arrived in Canada and is here to stay." Visit the KPMG website and read the publication Smarter Evidence and Discovery Management.

History of the CICA Corporate Reporting Awards

Next year, the CICA Corporate Reporting Awards (CRA) program will celebrate its 60th anniversary. The CRA began in the early 1950s. Originally, the awards were based on hardcopy annual reports (from 1951-1992). Today, the awards have expanded beyond the annual reports to include sustainable development (introduced in 1993), MD&A (introduced in 1995), corporate governance (introduced in 1996), scorecards (introduced in the late 1990s) and electronic financial reporting (introduced in 2001). Now, the major federal and provincial crown corporations are also included (introduced in 2007 and 2009, respectively). For a brief history of the Corporate Reporting Awards, refer to the March 2010 research paper “Corporate Reporting Awards and Financial Reporting Quality” by Tim Bauer and J. Efrim Boritz (pages 6-12 and Appendix B).

TELUS shines at CICA Corporate Reporting Awards 2010

TELUS Corporation captured top honours at the 2010 Corporate Reporting Awards presented in Toronto by the Chartered Accountants of Canada. It received four awards this year for its 2009 annual reporting package, including the Overall Award of Excellence in Corporate Reporting. Nexen Inc. and PotashCorp were also big winners this year, receiving multiple honours for industry and judging categories. Read the CICA Media Release for a list of winners and download the 2010 Judges Comment Booklet.

PwC - CSR TRENDS 2010

CSR Trends 2010 is the fourth comprehensive survey of corporate social responsibility reporting trends, benchmarks and best practices. This research was conducted jointly by PricewaterhouseCoopers’ Sustainable Business Solutions practice and Craib Design & Communications, a group of communications consultants with decades of experience in corporate and investor communications. This report is divided into five chapters: Focus; Credibility; Context; Performance; and Accessibility.

Annual Report on Annual Reports 2010

Corporate reporting is, more than ever, a delicate balance between current shareholders and potential investors, freedom of speech (not less) and compliance (mandatory), substance and style, stockholders and other stakeholders, content and appeal, thoroughness and brevity, information (overload) and communication (overuse), printed and electronic reporting tools, the talk and the walk. To learn more, read the Annual Report on Annual Reports 2010 by ReportWatch online.

Guidance on Using the Internet in Corporate Reporting

The Canadian Institute of Chartered Accountants (CICA) has released three new research booklets that promote effective communication. The booklets are based on the soon-to-be-published CICA Research Report Using the Internet in Corporate Reporting. The series includes Practical Guidance for Managing Collaboration and Innovation, Practical Guidance for Managing Websites and Practical Guidance for Managing Web 2.0 and Social Media. The views expressed in these publications are those of the Study Group members who are current or former judges in the ongoing CICA Corporate Reporting Awards program. Feedback and comments are welcome.

SBR Event - XBRL and Red Tape Reduction Initiatives

XBRL Canada is holding a webinar on June 7, 2010 at 4:00PM Eastern on the topic of using XBRL to reduce red tape and cut the cost of government compliance. This is an excellent venue for concerned Members of Parliament and their staff, other members of government and business people to learn more about how XBRL can reduce the reporting burden currently placed on businesses in Canada. Registration for the webinar is free and available via the XBRL Canada website. XBRL Canada is supported and administered by the Canadian Institute of Chartered Accountants.

Global XBRL Adoption Survey

Last year, XBRL International issued a Global Update on XBRL Adoption which shows that Standard Business Reporting (SBR) is a motivation for adoption of XBRL, notably in Australia, but also other countries. SBR is an approach to standardization of government filings and reports using XBRL as the core technology. It has been a key strategy in reducing the burden to business of compliance with governmental filing requirements. The global survey also shows a continued growth of XBRL in the regulatory area, particularly in securities regulation.

IOSCO - Principles for Periodic Disclosure by Listed Entities

The International Organization of Securities Commissions (IOSCO) has published a report Principles for Periodic Disclosure by Listed Entities. The report makes recommendations for disclosures in periodic reports, such as annual reports, of entities whose securities are listed or admitted to trading on a regulated market in which retail investors participate. The disclosure principles also cover other issues, such as the timeliness of disclosures, disclosure criteria and storage of information. The principles are intended to provide a useful framework for securities regulators that are reviewing or revising their regulatory disclosure regime for periodic reports. (Read the IOSCO Press Release.)

US - SEC webcast on XBRL phase II and detailed tagging

Representatives from the US Securities and Exchange Commission (SEC) will offer tips on how to prepare for the detailed footnote disclosures tagging that is required under the SEC's second phase of the XBRL mandate at a webcast on XBRL - Preparing for Phase II and Detailed Tagging. Join this live video event on Wednesday, January 27 from 2:00pm to 3:30pm, ET and obtain the information needed to comply with the SEC's requirements.

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.)

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.)

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)

US - XBRL National Conference

This summer kicked off the biggest implementation of XBRL in the United States with the requirement from the Securities and Exchange Commission (SEC) for public companies to submit XBRL-tagged financial statements. A conference will be held in New York on November 17-18, 2009 to help companies better understand the impact this technology standard will have on business in terms of greater accuracy, transparency and simply a better connection with shareholders. The conference will feature sessions by the SEC, public companies and auditors, on how the US GAAP implementation is going and even more importantly, about what’s ahead for financial executives and investors with initiatives like corporate actions and proxy reporting. (Get more information and register for the first XBRL US National Conference: Financial Reporting – Advancing Transparency and Transforming the Dialogue!)

CSA Continuous Disclosure Reviews for 2009

The Canadian Securities Administrators (CSA) has published a staff notice that summarizes the results of the continuous disclosure review program for the fiscal year ended March 31, 2009. During this period, the CSA completed 1,094 reviews, consisting of 465 full reviews and 629 issue-oriented reviews into specific areas including market turmoil, asset-backed commercial paper, defined benefit pension plan disclosures and financial instruments. Following a full or issue-oriented review, results are classified into one or more of five categories, depending on the seriousness of the matters noted. This year, 48% of the reporting issuers selected for review fell into the category of “prospective changes required. Of the total reporting issuers reviewed, 14% were contacted and alerted to specific areas where disclosure enhancements should be considered. A further 13% were required to amend or refile certain documents and 5% were either cease traded, placed on a default list or referred to Enforcement. (Read the CSA Staff Notice 51-329 Continuous Disclosure Review Program Activities for the fiscal year ended March 31, 2009.)

NIRI Announces Standards of Practice — Implementing "Notice and Access"

On March 12, 2009, the National Investor Relations Institute (NIRI) Board of Directors approved the Standards of Practice — Implementing "Notice and Access" for review and comment. "Notice and Access" or "e-proxy" provides the investor relations officer (corporate issuer) with another option for distributing proxy materials and the annual report. These guidelines are voluntary. They review developing trends in current practice in "notice and access" and are based on early experiences of corporate issuers and a broad cross-section of service providers. They will be reviewed and updated annually to reflect the latest corporate practice and regulatory changes. (Read the NIRI IR Advisor.)

Report of the 21st Century Disclosure Initiative

The 21st Century Disclosure Initiative has delivered a report to the US Securities and Exchange Commission (SEC) setting out a blueprint for a modernized disclosure system. The report recommends that the SEC design and implement a new disclosure system in which interactive data would replace plain-text disclosure documents. On January 15, 2009, William D. Lutz, Director of the 21st Century Disclosure Initiative, discussed the report in a speech to the New York chapter of the National Investor Relations Institute. (Read the Report and a transcript of the Speech / Presentation.)

TELUS repeats as winner at CA’s Corporate Reporting Awards

TELUS Corporation has captured top honours at the 2008 Corporate Reporting Awards presented by the Chartered Accountants of Canada. In addition to the Overall Award of Excellence, TELUS garnered the Excellence in Financial Reporting Award and an Award of Excellence for the Communications and Media sector. The company also collected Honourable Mentions in Sustainable Development Reporting and Corporate Governance Disclosure. PotashCorp and Nexen Inc. were the other multiple winners. PotashCorp captured three awards while Nexen collected two. In total, 21 awards and honourable mentions were handed out. This also marked the second year that the program featured award categories for large and small crown corporations. (View the Press Release and Book of Judges’ Comments for the 2008 Corporate Reporting Awards.)