The Fall 2024 issue covers a range of critical topics shaping the current landscape of business, technology. Eric E Cohen, a consultant on emerging accounting and audit technologies, explores the necessity of establishing ethical standards in virtual environments as virtual reality (VR) becomes more integrated into business and personal use. He delves into the potential ethical dilemmas and the importance of creating guidelines to ensure responsible use of VR technology. Gundi Jeffrey, a business journalist, highlights the Canadian Public Accountability Board's 2024 interim report, which reveals a strong correlation between robust quality management systems and lower levels of significant audit findings. This underscores the critical role of maintaining high audit quality standards to ensure accurate and reliable financial reporting.

Am Lidder, MNP’s Senior Vice-President, addresses the hidden costs of uncertainty in Canada’s tax system, noting that recent changes have diminished the country's economic advantage. She discusses the impact of these changes on businesses and investments, advocating for a more stable and predictable tax environment. Kim Moody, a tax expert, argues for the repeal of journalism tax credits, suggesting they are not the solution to the challenges faced by traditional media. Gerald Trites, chief editor, provides a comprehensive guide on implementing Strategic Corporate Social Responsibility (CSR). He emphasizes the integration of social, environmental, and governance considerations into business strategy, highlighting the benefits of CSR for both society and organizations. Linda M Deane, a writer, reviews "The Age of Magical Overthinking: Notes on Modern Irrationality" by Simon & Schuster, examining the concept of modern irrationality in our hyperconnected, technological age.

Access the newsletter on ThinkTwenty20’s website.

Nasdaq’s 2024 Global Governance Pulse survey was conducted in July, capturing information on corporate governance trends and practices and anticipated 2025 board priorities. The survey included questions that explored five key areas:

• CEO evaluations and management oversight
• Board composition and culture
• Governance practices, processes, and tools
• Board evaluations
• Strategic and risk topics on the horizon

The survey collected 872 qualified responses from board members, executives, and governance professionals across organizations and sectors. Regarding the skills and experience respondents thought would most enhance the board’s composition and ensure alignment with the organization’s strategy, 35% of respondents cited AI and machine learning. In close second was cybersecurity and data privacy, coming in at 34% and 30% noted industry experience.

Regarding the top areas that will impact an organization’s success in the next 12 months, 44% of respondents cited access to capital, resource allocation, and cost controls, 43% cited economic conditions, and 39% identified clearly defined and articulated strategies and goals.

Access the report on Nasdaq’s website.

Under the Regulation, an information security incident is defined as an attack on information systems' availability, integrity, or confidentiality, differing from the Private Sector Act's focus on unauthorized access to personal information. The Regulation applies to insurers, credit unions, deposit institutions, trust companies, and credit assessment agents.

Provincial Financial Institutions must develop an incident management policy, appoint an incident management officer, and report significant incidents to the Autorité des marchés financiers (Authority) within 24 hours. They must also update the Authority every three days until the incident is resolved and submit a detailed report within 30 days.

Institutions must maintain a secure incident register for at least five years. Non-compliance can result in penalties ranging from $250 to $2,500.

The Regulation will come into force in six months and is intended to provide a framework for managing and reporting information security incidents by certain provincial financial institutions. In the event of non-compliance, the Regulation also provides for administrative penalties.

Access a summary of the Regulation on Langlois’ website. The Regulation can be consulted on the Government of Québec’s website.

The October 2024 publication delves into the critical topic of ensuring trust and integrity in corporate reporting through a new global standard for digital signatures, as discussed by John Turner, LLB. The issue also covers the IFRS Foundation Integrated Thinking and Reporting Conference held on October 18, 2024, in collaboration with the Italian Foundation for Business Reporting (O.I.B.R.). The conference emphasized the importance of integrated reporting and thinking, highlighting their role in combining financial and sustainability considerations to create value over various time horizons.

Access the newsletter on ThinkTWENTY20’s website.

The report provides an update on the work of the OECD/G20 Inclusive Framework on BEPS on a two-pillar solution to address the tax challenges arising from the digitalization and globalization of the economy, including the signing ceremony held in September 2024 to mark the first jurisdictions signing the Multilateral Convention to Facilitate the Implementation of the Pillar Two Subject to Tax Rule (STTR MLI).

Access the tax report on the OECD’s website

It is largely based on data collected through the online questionnaires that entities were required to complete when they filed their modern slavery reports, supplemented by a review of a sample of the filed reports.

The ‘Fighting Against Forced Labour and Child Labour in Supply Chains Act’ (the Act) requires certain entities to report annually on the steps taken during the previous financial year to prevent and reduce the risk that forced labour or child labour is used at any step in the production of goods that they produce or import into Canada.

The Act requires Public Safety Canada to provide to Parliament an annual report that includes the following information about the previous reporting period:

• a summary of the activities that reporting entities have identified carry a risk of forced labour or child labour being used;
• the steps that reporting entities have taken to assess and manage that risk;
• the measures, if any, taken by reporting entities to remediate any forced labour or child labour; and
• Any orders made by Public Safety Canada to ensure compliance with the Actand any charges laid against an entity for failure to comply.

Access details about the publication on the Norton Rose Fulbright’s website and the Act on the Parliament of Canada website.

The September 2024 issue delves into critical contemporary issues, offering insights in an accessible manner. Highlighted articles include an article by the prize-winning author and Managing Editor, Gundi Jeffrey on safeguarding organizations against the ever-evolving threat of cyberattacks, emphasizing the growing recognition of cybersecurity as a multidisciplinary field essential for protecting vital information and systems. Additionally, John Turner, LLB, discusses the importance of trust and integrity in corporate reporting, advocating for a new global standard for digital signatures to ensure the reliability of corporate data and the authenticity of audit reports.

Access the newsletter on ThinkTwenty20’s website.

The information on tax policy reforms is based primarily on jurisdictions’ responses to the OECD’s annual tax policy reform questionnaire. The report examines trends relating to personal income taxes and social security contributions, corporate income taxes and other corporate taxes, taxes on goods and services (including VAT, sales taxes, and excise duties), environmentally related taxes, and taxes on property. The report also includes chapters providing background information on relevant macroeconomic conditions and tax revenue trends.

Key findings reveal more jurisdictions raising corporate income tax rates in 2023, with 60 moving towards implementing the Pillar Two global minimum tax rules by 2025. Personal income tax cuts have aided economic recovery for low- and middle-income households, though some top rates have increased. Social security contributions are rising due to demographic changes and healthcare costs. VAT reductions are slowing, with some jurisdictions scaling back relief and increasing standard rates. The use of VAT to promote lower-carbon economies and carbon taxes is growing. Additionally, excise taxes on tobacco, alcohol, sugar-sweetened beverages, and gambling have increased in several high- and upper-middle-income jurisdictions.

Access the article and report on the OECD’s website.

Kevin LaCroix of the D&O Diary discussed significant case law developments concerning the duty of oversight for corporate boards. These cases, which survived motions to dismiss, underscore the evolving judicial landscape. Mr. LaCroix emphasizes that these decisions have profound implications for how boards should structure their governance processes and documentation to defend against such claims.

Mr. LaCroix outlines several proactive steps that well-advised boards should consider to mitigate risks and enhance their defence against potential oversight claims. These steps include conducting thorough risk assessments, ensuring robust reporting mechanisms for mission-critical operations, and establishing clear protocols for escalating issues to the board. He also highlights the importance of specialized committees to oversee critical areas, regular documentation of board discussions and decisions, and vigilant monitoring of "red flags" that could indicate serious concerns. By implementing these measures, boards can demonstrate reasonable faith efforts to monitor and respond to developments involving their companies' critical operations, thereby positioning themselves better to defend against potential lawsuits.

Access the article on The D&O Diary’s website.

The report underscores the potential benefits of AI, such as enhanced customer engagement, improved decision-making, and operational efficiency. However, it also warns of the amplified traditional risks and new vulnerabilities that AI can introduce, including data governance, cybersecurity, legal, and reputational risks. The report draws on findings from a 2023 questionnaire sent to financial institutions, revealing a significant increase in AI investments and usage since 2019, with AI employed in critical areas like pricing, underwriting, and fraud detection. The document stresses the importance of maintaining adaptable risk and control frameworks to manage these internal risks effectively.

The report calls for financial institutions to be proactive in their risk governance, emphasizing the need for comprehensive risk management standards that integrate all related risks. It also highlights the collaborative efforts of OSFI and FCAC with global regulators and governmental agencies to support best practices and ensure that financial institutions are well-prepared for the evolving AI landscape.

Access the publication on the OSFI’s website.