The overview also compares how the release affects the SEC staff guidance issued in 2011.

The SEC acknowledged that it does not expect a company’s disclosures to provide a level of detail that could compromise its cybersecurity efforts and that there may be limited information available in the early stages of a cybersecurity incident investigation. Nevertheless, the SEC emphasized that as information becomes available, registrants are responsible for disclosing appropriate information to keep investors informed and must balance the need for timely disclosure with the level of detail they can provide about such incidents. While cooperation with law enforcement during an ongoing investigation of a material cybersecurity incident may be necessary and may affect the scope of disclosure, it would not alone provide a basis for omitting material disclosures.

Review the overview on the Wall Street Journal's website.

The report proposes features that an audit committee should have to be more effective in promoting and supporting audit quality. These features include the qualifications and experience of audit committee members, their level of knowledge in the field of financial reporting and audit, whether they have questioning minds and appropriately challenge management and auditors and whether the audit committee has adequate capacity and resources.

According to Hanna Halaburda, a senior economist at the Bank of Canada and visiting professor at New York University: “It’s not proven either way. It may never work. Right now, we don’t have the technology that cuts out the middleman. Getting rid of trusted third parties is actually very difficult.” The big hope is that this technology will eventually allow for the removal of all gatekeepers.

But even after several years, developers haven’t yet managed to work out some vexing problems that are putting the breaks on mass adoption of blockchain. Apart from scalability, the limits on possible transactions, another systemic challenge is the massive energy drain of the most popular consensus and verification system. The fact that no one entity is supposed to be in charge makes problems much trickier to solve, particularly when taking into account the various cultures of participants.

Review the full article on National Magazine's website.

The IESBA’s future priorities and actions will be guided by three strategic themes:

• Advancing the Code’s relevance by keeping it fit-for-purpose for a rapidly changing world, and further strengthening ethical conduct and independence standards;
• Deepening and expanding the Code’s impact and influence through increased global adoption and implementation; and
• Enriching the IESBA’s perspectives and capacities through proactive stakeholder dialogue and co-operation.

Review the press release and the Consultation Paper on the IESBA's website.

If there is one word that is capturing the new normal pace of the age we are in, it is acceleration. One critical challenge that can’t be ignored is the company’s role in preparing its workforce for intelligent automation.

Two things are certain: one, in the near-term, we expect much workforce force disruption; and two, as artificial intelligence algorithms increase in sophistication and computational power, the pace of intelligent automation is likely to accelerate and push the workforce to focus on higher value activities. To meet that challenge, the workforce of the future will need to acquire a new set of skills rapidly in order to interact with the future of intelligent systems.

Review the full blog on NACD's website.

The newly-released Framework presents clear links between its principles and reporting requirements with the TCFD recommendations and the supporting recommended disclosures.

Review the updated Framework on the CDSB's website.

The CSA reviewed distribution disclosures relative to National Policy 41-201 Income Trusts and Other Indirect Offerings and non-GAAP financial measure disclosures relative to CSA Staff Notice 52-306 (Revised) Non-GAAP Financial Measures. The findings of the review indicate that the quality of disclosure pertaining to distributions and non-GAAP financial measures in the real estate industry needs improvement. 

Key findings from the review included the following items. For distributions, staff found opportunities for better disclosure when distributions exceed operating cash flows. For non-GAAP financial measures, staff identified a lack of transparency about various adjustments made in arriving at non-GAAP financial measures, particularly those relating to maintenance capital expenditures and working capital. Staff also noted instances where non-GAAP financial measures were presented with greater prominence than the most directly comparable measure specified under the issuer’s GAAP.

Non-GAAP financial measures and distribution disclosures continue to remain areas of focus for the CSA, and real estate reporting issuers are encouraged to refer to the guidance published.

Review the press release on the CSA's website and the Staff Notice on the CSA members' website.

The questions are grouped under four key areas:

• Understanding how the financial statement auditor considers cybersecurity risk
• Understanding the role of management and responsibilities of the financial statement auditor related to cybersecurity disclosures
• Understanding management’s approach to cybersecurity risk management
• Understanding how CPA firms can assist boards of directors in their oversight of cybersecurity risk management

The tool also compiles cybersecurity-related resources from the CAQ, the American Institute of CPAs, the National Association of Corporate Directors, and others.

Review the tool on the CAQ's website.

Beyond the new structure, the Code brings together key ethics advances over the past four years, and is clearer about how accountants should deal with ethics and independence issues.

While the fundamental principles of ethics have not changed, major revisions have been made to the unifying conceptual framework—the approach used by all professional accountants to identify, evaluate and address threats to compliance with the fundamental principles and, where applicable, independence. New Code highlights include:

• Revised “safeguards” provisions better aligned to threats to compliance with the fundamental principles;
• Stronger independence provisions regarding long association of personnel with audit clients;
• New and revised sections dedicated to professional accountants in business (PAIBs) relating to:
  • preparing and presenting information; and
  • pressure to breach the fundamental principles.
• Clear guidance for accountants in public practice that relevant PAIB provisions are applicable to them;
• New guidance to emphasize the importance of understanding facts and circumstances when exercising professional judgment; and
• New guidance to explain how compliance with the fundamental principles supports the exercise of professional skepticism in an audit or other assurance engagements.

Renamed the International Code of Ethics for Professional Accountants^TM (including International Independence Standards^TM), the new Code becomes effective in June 2019.

Review the press release, the new Code and a resource page on the IESBA's website.

The CSA intends to develop new guidance and initiatives to educate issuers about the disclosure of climate change-related risks, opportunities and financial impacts. The CSA also intends to consider new disclosure requirements regarding non-venture issuers’ corporate governance practices in relation to material business risks including, for example, emerging or evolving risks and opportunities arising from climate change, potential barriers to free trade, cybersecurity and disruptive technologies. As a general rule, materiality is the determining factor in considering whether information must be disclosed to investors. 

In addition to these initiatives, the CSA will continue to monitor the quality of issuers’ climate change-related disclosures, best practices in this area and developments in reporting frameworks. The CSA will also continue to assess whether investors require additional types of information, such as disclosure of certain categories of greenhouse gas emissions, to make investment and voting decisions.

The report reflects the CSA’s consideration of key research findings, a review of the disclosure of large TSX-listed issuers, a survey of TSX-listed issuers and extensive consultation with investors, issuers and other stakeholders. The CSA also reviewed how current Canadian securities disclosure requirements differ from or are consistent with international climate change-related disclosure requirements and voluntary frameworks.

Review the press release and a backgrounder with additional details on the CSA's website and the Notice on the CSA members’ websites.