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.)