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.

Canada - World Economic Forum 2010

Canada's Prime Minister Stephen Harper is in Zurich, Switzerland attending the World Economic Forum in the ski resort town of Davos. Harper, who is president of the G8 this year, is accompanied by International Trade Minister Peter Van Loan and by Finance Minister Jim Flaherty. Harper's stay begins with a roundtable discussion with business leaders from around the world, where he is expected to argue that the world's banks must adhere to Canadian-style banking regulations to avoid another catastrophic economic crash. On Thursday, January 28, 2010, Harper will deliver a keynote address to the World Economic Forum, where he is expected to outline his desire to turn Canada's presidency of the G8 into an opportunity to improve the health of women and children in some of the world's poorest nations. The annual meeting in Davos has become a favorite stop for key players in the global economy and attracts more than 2,500 CEOs, heads of state, celebrities and representatives from leading non-governmental organizations. (For more information, read the National Post article Harper to G8: 'Less promises, more results'.)

Canada - Advisory Committee on Canadian Securities Regulator

The Honourable Jim Flaherty, Canada's Minister of Finance, has announced the appointment of the members of the Advisory Committee of Participating Provinces and Territories to the Canadian Securities Transition Office, which is leading Canada's efforts to establish a Canadian securities regulator. The Advisory Committee will provide advice on the transition to a Canadian securities regulator. As part of its work plan, the Transition Office is consulting with provinces and territories, securities experts and legal advisors.(Read the Press Release.)

Updated SEC Financial Reporting Manual

The US Securities and Exchange Commission (SEC) Division of Corporation Finance has updated its Financial Reporting Manual. This 323-page manual is an informal reference document for SEC staff and provides general guidance only. The SEC has made it available on its public website. Topics include: Registrant's financial statements; Other financial statements required; Pro forma financial information; Independent accountant's involvement; Smaller reporting companies; Foreign private issuers & foreign businesses; Related party matters; Non-GAAP measures of financial performance, liquidity and net worth; Management's discussion and analysis of financial position and results of operations (MD&A); Reverse acquisitions and reverse recapitalizations; Effects of subsequent events on financial statements required in filings; Tender offers; Employee stock benefit plans; and Multijurisdictional disclosure system. (Read the Updated SEC Financial Reporting Manual or review the contents online.)

FASB initiates project on useful, organized and consistent disclosures

Robert H. Herz, chairman of the United States Financial Accounting Standards Board (FASB) has announced the addition of a new FASB agenda project aimed at establishing an overarching framework to make financial statement disclosures more effective, coordinated and less redundant. The project was added in response to requests and recommendations from constituents including the Investors Technical Advisory Committee and the SEC Advisory Committee on Improvements to Financial Reporting. (Read the FASB Press Release.

Reducing complexity in corporate reporting

Two years ago, the UK Financial Reporting Council (FRC) launched a project to review the complexity and relevance of current corporate reporting requirements. Recently, it published Louder than Words: principles and actions for making corporate reports less complex and more relevant. According to the FRC, reporting should be more principle-based. In this regard, the discussion paper sets out a series of communication principles. (Read the FRC Press Release.)

Top Ten Concerns of CFOs

In the most recent Business Outlook Survey by CFO Europe, Tilburg University and Duke University, the soaring price of petrol was the fastest-climbing concern among more than 1,000 finance chiefs polled around the world, now ranking second on the list of external worries in Europe, Asia and the US. Dwindling consumer demand remains the top concern across the regions, as it has been for several quarters. (Read the full article Top Ten Concerns of CFOs.)

Canada's Expert Panel on Securities Regulation

The Expert Panel was announced by the federal Minister of Finance on February 21, 2008 to provide advice on the best way forward to improve securities regulation in Canada. The Panel held a series of cross-country, face-to-face meetings involving a wide range of stakeholders in Canada’s capital markets. A summary of these consultations reflects the themes, issues and a range of answers to questions posed by the Panel in their public consultation document. As well, the Panel invited input through its website. More than 70 formal submissions have been received. The Stakeholder Report and written submissions are available on the Panel’s website.

Recasting the Reporting Model

A February 2008 article by PricewaterhouseCoopers discusses the complexity of today's reporting model and the need for a new market-driven blueprint for reporting. This point-of-view article suggests a set of parameters for "high quality corporate reporting." (View Recasting the Reporting Model.)

Addressing complexity in US financial reporting

In 2007, the US Securities and Exchange Commission formed the SEC Advisory Committee on Improvements to Financial Reporting to study the causes of complexity in the US financial reporting system. On January 11, 2008, the Advisory Committee held its third meeting and made tentative decisions on proposals set out in a Draft Decision Memo. The Advisory Committee plans to publish its final recommendations in the third quarter 2008. (Visit the Advisory Committee's Web Page on the SEC website.)

War on Complexity

The US Securities and Exchange Commission (SEC) has joined with the Financial Accounting Standards Board (FASB) in an all-out “War on Complexity in Accounting.” The SEC’s Advisory Committee on Improvements to Financial Reporting has the overall objective of making recommendations on reducing complexity in financial reporting. It held its second meeting on November 2, 2007. Its charter identifies four areas for attention:

• the current approach to standard-setting;
• the current approach to regulating compliance;
• factors that may drive unnecessary complexity; and
• lessons that can be learned from using international standards.

European simplification of financial reporting rules

The European Federation of Accountants (FEE) has published a background note on the European Commission’s Communication on Simplification of EU rules on Company Law, Accounting and Auditing. The Background Note provides a history of the current simplification efforts and a reference to FEE’s Position on EC Simplification Project.

10th Annual Global CEO Survey

PricewaterhouseCoopers has issued its 10th Annual Global CEO Survey. The survey (Figure 1.3) illustrates management’s rankings of the risks they face. Topping the list are overregulation and the availability of key skills, followed closely by low-cost competition and raw material costs. Terrorism, by contrast, is seen as a key risk by just 50% of respondents, global warming by 40% and pandemics by 37%. Interestingly, the findings of the survey offer some insight into new and innovative solutions to some of these more systemic business and macro threats. Collaboration – often linking the public and private sectors – is starting to bring some ‘macro’ risks into manageable proportions. PWC sees this as a possible solution to what traditionally might be perceived to be an Achilles’ heel in a company’s risk management solution set.