In September 2022, CPAB released disclosure recommendations from its 2021 consultation, with two phases of changes. They enacted phase one in 2023 and plan to adjust their rules for phase two based on this consultation. Gaining insights from stakeholders holds a significant role in their policy-setting process. Comments received in this consultation will be considered together with feedback received in the 2021 consultation.

The public consultation process is scheduled to conclude on November 24, 2023.

Review the changes and access the consultation survey on the CPAB website.

In its response, IFAC supports corporate reporting that better addresses a company’s ability to create long-term value and is decision useful for investors and other stakeholders. IFAC welcomes the European Sustainability Reporting Standards (ESRS) while noting significant concerns regarding the need for interoperability that supports a global system for reporting. IFAC notes that all international and regional approaches must align key concepts, terminologies, and metrics to avoid regulatory fragmentation, especially on matters of materiality.

The response notes that implementation by companies and enforcement by regulators of the new standards are essential to ESRS success. Therefore, IFAC urges additional transitional reliefs to allow companies sufficient time to implement governance, processes, reporting capacity, and internal controls.

Access the full response on the European Commission website.

The committee’s stated objective is to seek stakeholder responses to specific questions on a host of issues related to digital asset taxation.

Re­view the open letter on US Finance Senate website.

The report identifies select areas of focus public accounting firms should consider as part of their ethics strategies, such as clearly identifying leaders within the firm with ‘ownership’ of the ethics policies, targeted ethics education training and guidance, and establishing a robust internal whistleblower program. It also provides considerations to help firms comply with requirements related to the dating of audit working papers and internal professional training programs.

Re­view the report on OSC's website.

The human element still makes up the overwhelming majority of incidents, and is a factor in 74% of total breaches, even as enterprises continue to safeguard critical infrastructure and increase training on cybersecurity protocols. One of the most common ways to exploit human nature is social engineering, which refers to manipulating an organization’s sensitive information through tactics like phishing, in which a hacker convinces the user into clicking on a malicious link or attachment.

Re­view the report on Verizon’s website.

Among other things, the bill implements certain measures from Budget 2023, including significant changes to the mandatory disclosure rules in the Income Tax Act (the “act”). These proposals, first announced in Budget 2021, impose significant changes to the disclosure of certain tax transactions for both taxpayers and their advisors. The changes would be effective for reportable or notifiable transactions entered into after royal assent, which is expected prior to Parliament’s last sitting day, currently scheduled for June 30, 2023.

Re­view the article on Deloitte’s tax@hand website.

Reporting obligations will apply to any private-sector entity (defined below) that is: (i) producing, selling or distributing goods in Canada or elsewhere; (ii) importing into Canada goods produced outside Canada, or (iii) controlling an entity engaged in either of the above activities.

An "entity" is defined as a corporation or a trust, partnership or other unincorporated organization that: (i) Is listed on a stock exchange in Canada; (ii) has a place of business in Canada, does business in Canada or has assets in Canada and, based on its consolidated financial statements, has met at least two of the following three conditions in at least one of its last two financial years: (a) had at least C$20-million in assets; (b) generated at least C$40-million in revenue; (c) employed an average of at least 250 employees, or (iv) Is prescribed by regulations (although no such regulations have yet been promulgated)

Reporting obligations will also apply to all federal government institutions, ministries and departments, including Crown corporations and wholly owned subsidiaries, that are producing, purchasing or distributing goods in Canada or elsewhere.

The first report will be required to be filed on or before May 31, 2024.

Re­view the article on Blake, Cassels & Graydon LLP's website and the Act on the Parliament of Canada website.

Several companies have begun to address the implications of AI in recent 10-K and 10-Q filings, although still less than 10% of companies in the major indices (S&P 500 and Russell 3000). Some companies have included standalone risk factors, while other companies variously address AI as one of a number of factors contained in broader risk disclosures. BCLP remind companies that, as with any other risks, they should include AI in their enterprise risk management systems, to the extent material, as well as their disclosure controls and procedures.

Re­view the analysis on the BCLP website.

The Canadian government is pursuing this goal so that individuals with disabilities can feel more comfortable using public services and working for federally regulated organizations. The Accessible Canada Act and the Accessible Canada Regulations strive to achieve this by identifying, removing and preventing barriers in employment, buildings and other public spaces Non-compliance can lead to steep penalties for employers.

The Act, which took effect in 2019, defines a barrier as anything that "hinders the full and equal participation in society of persons with an impairment”.

Re­view news release on SHRM's website.

In commenting on these developments, PCAOB Chair Erica Y. Williams stated that “The PCAOB is pursuing one of the most ambitious standard-setting agendas in its history, and the updates reflect the solid progress that we are making to carry out that agenda. Our new rulemakings also show our commitment to making enhancements that will allow the PCAOB to execute our mission to protect investors more effectively and efficiently.”

Re­view the press release on PCAOB’s website.