Regulations

Achieving Balance in the Integrated Report

Dec 20, 2018

In December 2018, the Integrated Reporting Committee (IRC) of South Africa released its latest technical paper "Achieving Balance in the Integrated Report: An Information Paper".

The Paper discusses the role of the governing body, the meaning of balanced reporting, challenges and weaknesses, and lists some key considerations in achieving a balanced integrated report.

Review the report on the IRC's website.

Sustainability reporting gets a new set of standards

Dec 18, 2018

On December 18, 2018, the Wall Street Journal (WSJ) published an interview written and compiled by Deloitte. In the interview, Kristen Sullivan, an Audit & Assurance partner with Deloitte & Touche LLP and Sustainability Risk and KPI Services leader, spoke with Robert Herz, who sits on the SASB Foundation Board and is a former chair of the Financial Accounting Standards Board.

For years, sustainability reporting has been criticized for not having the rigor of traditional financial reporting. Newly minted standards from the SASB may change that view.

In the interview, they discussed Herz’s long-time interest in sustainability reporting, why more companies may be ready to embrace the voluntary standards, and questions management can expect from their board about sustainability reporting, among other topics.

Review the full interview on the Deloitte WSJ's website.

Should corporate sustainability reporting be mandated?

Dec 18, 2018

On December 18, 2018, the Saïd Business School, University of Oxford, offered a debate on how corporate sustainability reporting should be mandated, and standardized by FASB and IASB, for it to be most useful for investors.

The debate was chaired by Lady Lynn de Rothschild, Founder and CEO of the Coalition for Inclusive Capitalism. Speaking in favor of the resolution were Ms. Anne Simpson, Investment Director of CalPERS, Mr. Paul Druckman, Former CEO of the IIRC, and Mr. Ian Mackintosh, Former Vice Chair of the IASB. Speaking against the resolution were Mr. Tom Quaadman, EVP of the US Chamber of Capital Markets, Mr. Bob Herz, Former Chair of the FASB and Mr. Harvey Pitt, Former Chairman of the SEC.

The debate highlighted the difficulties in establishing standards for mandatory sustainability reporting. The FASB and the IASB are skilled accounting standards-setters but advise that they neither have the resources or background and skill sets for developing standards for sustainability reporting. Also, sustainability reporting is generally disclosed in the MD&A, rather than the audited financial statements. All of the speakers acknowledged the pioneering work of the SASB in this area, resulting in the world’s first set of industry-specific sustainability standards. However, these standards are currently voluntary, not mandatory, and are not yet widely adopted.

A Green Paper focusing on the arguments for and against the motion was released in preparation for the debate.

A recording of the debate is available on YouTube.

IFIAR Releases 2018 Report on Survey of Audit Regulators’ Enforcement Regimes

Dec 14, 2018

On December 14, 2018, the International Forum of Independent Audit Regulators (IFIAR) released its report on the Survey of Enforcement Regimes. The report underscores the extent to which IFIAR members have the authority to respond to auditor misconduct and enforce compliance with the rules, laws, and standards that govern the audit profession in different parts of the globe. The results recognize the unique and critical role that enforcement plays in audit oversight.

Forty-two IFIAR members participated in the 2018 Survey, which sought information from members concerning the authority and structures of their enforcement programs, the handling and reporting of enforcement matters, historical and trend information, sharing information with other regulatory 
authorities, and ideas for reform. The 2018 Survey updates results from the first enforcement survey in 2014 and focuses on the three years from 2015 through 2017.

Review the press release and report on the IFIAR's website.

Stavros Thomadakis Reappointed IESBA Chairman

Dec 13, 2018

On December 13, 2018, the International Ethics Standards Board for Accountants (IESBA) announced the reappointment of Dr. Stavros Thomadakis as IESBA Chairman for a further one-year renewable term commencing January 1, 2019.

Under Dr. Thomadakis’ leadership, the IESBA has completed a number of major projects, resulting in the revised and restructured International Code of Ethics for Professional Accountants (including International Independence Standards), which will become effective in June 2019. His dedication to high quality, fit-for-purpose ethics standards for the global accountancy profession is reflected in the ambitious strategy and work plan 2019-2023 just approved by the IESBA.

Review the press release on the IESBA's website.

Department of Justice eases “Yates Memo” requirements for cooperation credit

Dec 02, 2018

On December 2, 2018, the D&O Diary published an article on how one of the important questions about U.S. Department of Justice’s approach following the change of Presidential Administration two years ago was whether DOJ would continue emphasizing its policy of individual accountability in the agency’s 2015 statement known as the Yates Memo.

In a recent speech, Deputy Attorney General Rod J. Rosenstein announced changes to the policy. The changes, which are more in the form of an adjustment rather than a wholesale change, makes it clear that companies seeking cooperation credit no longer need to identify “all” individuals involved in the wrongdoing, so long as the companies identify those who were “substantially involved” in the misconduct.

Review the full article on the D&O Diary's website.

Keynote address to the Economic Club of Canada by Frank Vettese

Nov 22, 2018

On November 22, 2018, we released a video where Frank Vettese, Chief Executive and Managing Partner of Deloitte Canada, discussed what it will take to build a better future for our country over the next 25 years.

What does it mean for Canada to be a global leader? How should Canadian businesses respond to constant disruption? Will a more inclusive business climate unlock Canada’s competitive advantage? Who will develop the leaders of tomorrow?

To answer these questions, Deloitte Canada has invested in a multi-year research initiative called Canada at 175 to study the factors that drive business performance, from productivity and preparedness for technological disruption to cultural business imperatives like courage and inclusion.

Deloitte’s newest research tackles perhaps the most important question of all: what are the traits for lasting business success? Not just to endure, but to thrive—and secure a more prosperous future in Canada.

View the video on YouTube.

Winds of change: The case for new digital currency

Nov 14, 2018

On November 14, 2018, the International Monetary Fund (IMF) released a speech by Christine Lagarde, IMF Managing Director, given at the Singapore Fintech Festival.

In her speech, Ms. Lagarde discusses the following topics:

  • The changing nature of money and the fintech revolution
  • A case for Central Bank Digital Currencies
  • Downsides of Bank Digital Currencies

She states that while the case for digital currency is not universal, we should investigate it further, seriously, carefully, and creatively. More fundamentally, the case is about change—being open to change, embracing change, shaping change. In the world of Fintech, we need to harness change so it is fair, safe, efficient, and dynamic.

Review the full speech on the IMF's website.

IESBA Chairman’s Keynote Address at APESB Dinner in Sydney

Nov 08, 2018

On November 8, 2018, Dr. Stavros Thomadakis, Chairman of the IESBA, gave a keynote address at an APESB dinner in Sydney, Australia. In celebrating the news regarding the incorporation of the Restructured International Code of Ethics into the Australian ethical standards, Dr. Thomadakis shared his thoughts about the essentials of the Code, its global positioning, and the challenges that both standard setters and users of the Code face for the present and future.

Topics covered included:

  • Essentials of the Ethics Code
  • Global Positioning of the Code
  • Public Expectations, Public Interest, Regulation 
  • The Technological Revolution
  • Global Ethical Practice: Integration or Fragmentation? 

Re­view the speech on the IESBA's web­site.

SASB issues industry-specific sustainability accounting standards

Nov 07, 2018

On November 7, 2018, the US Sustainability Accounting Standards Board (SASB) issued the world's first set of industry-specific sustainability accounting standards covering financially material issues in 77 industries. The standards aim at providing investors with in-depth information about the impact of a company’s actions on society and the environment - they come at a time of increased investor concern about companies' business practices.

What makes the standards unique in the marketplace is their focus on industry specificity and financial materiality. By addressing the subset of sustainability factors most likely to have financially material impacts on the typical company in an industry, SASB’s industry-specific standards help investors and companies make more informed decisions. They are global in nature and contain concepts that are important for investors and businesses around the world.

The release marks a six-year effort by the SASB. Over the course of those six years, the SASB released several sets of provisional standards for different industries, which have already been used by companies around the world. The SASB standards can be used alongside other sustainability frameworks and are well-aligned with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and are complementary to the Global Reporting Initiative (GRI).

Review the press release and download the standards on the SASB's website.

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