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News

All - Deloitte Image

Directors’ Alert 2016 Ingredients for Success: Striking the right balance

Feb 04, 2016

Independent board directors join Deloitte specialists from around the globe to share their insights into the challenges facing boards today and the strategies they can employ to overcome those issues.

What should your board have on its plate in 2016?

Directors’ Alert, “Ingredients for Success: Striking the right balance,” highlights some of key challenges facing boards of directors in 2016. Each topic was developed with input from Deloitte specialists and independent directors from around the globe, explores potential actions boards can take to address the issues, and includes questions directors can ask management to further understand the impact these issues have within their own organization.

Review the Directors’ Alert.

FRC (United Kingdom Financial Reporting Council) Image

CDSB publishes review of environmental reporting by FTSE 350 companies

Feb 04, 2016

On February 4, 2016, the Climate Disclosure Standards Board (CDSB) published a review of the annual reports of FTSE 350 companies, looking at how these companies incorporate environmental issues into their strategic reports.

The publication identifies reporting trends and showcases examples of best practice from published reports. It also sets out the CDSB's views on how regulators can enhance the enabling environment for disclosure. At the launch of the report, Stephen Haddrill, CEO of the Financial Reporting Council (FRC), gave his perspective on the CDSB's findings.

The press release and full report are available from the CDSB website. The full text of Mr Haddrill's speech is available from the FRC website.
FASB (US Financial Accounting Standards Board) (lt blue) Image

FASB adds four projects to research agenda

Feb 03, 2016

On February 3, 2016, as result of a survey of different advisory groups, the Financial Accounting Standards Board (FASB) decided to add four new financial reporting issues in its upcoming agenda discussion paper expected in the first half of 2016.

The issues to be added are:

  • Pensions and other postretirement employee benefit plans;
  • Intangible assets;
  • Distinguishing liabilities from equity; and
  • Financial performance reporting.

With the exception of intangible assets, which the IASB currently does not address in its research projects, these issues correspond with those raised by the IASB's agenda consultation respondents. Although a full analysis of the 118 responses on the IASB's Web site is not available yet, projects on Pensions and other postretirement employee benefit plans and Distinguishing liabilities from equity rank high among the research projects currently on the IASB's agenda.

Please click for the following information on the FASB's Web site:

IFAC - Regulations Image

Patchwork Regulation Threatens Global Growth and Stability

Feb 03, 2016

On February 3, 2016, the International Federation of Accountants (IFAC) issued a report calling for political leaders and governments around the world to follow ten principles for consistent, high-quality global regulation, to aid global economic growth.

While business and finance are increasingly global, the report warns that important regulation is not. Instead, it is frequently focused on national interests, which can create barriers and impediments to inclusive growth and jeopardize global financial stability.

The ten principles for high quality financial regulation state that regulation needs to be evidence-based, proportionate, appropriately resourced, collaboratively developed/implemented, consistent, subject to active oversight, systematically reviewed, have clear objectives, and be properly targeted and enforced to address intended issues.

Please click to access the report From Crisis to Confidence: A Call for Consistent, High-Quality Global Regulation and a corresponding press release on the IFAC's Web site.

IFRS - IASB Image

IASB finalizes amendments to IAS 7 under its disclosure initiative

Jan 29, 2016

On January 29, 2016, the International Accounting Standards Board (IASB) published amendments to IAS 7 'Statement of Cash Flows'. The amendments are intended to clarify IAS 7 to improve information provided to users of financial statements about an entity's financing activities. They are effective for annual periods beginning on or after January 1, 2017, with earlier application being permitted.

The amend­ments re­quire dis­clo­sures that will en­able users of fi­nan­cial state­ments to eval­u­ate changes in li­a­bil­i­ties aris­ing from fi­nanc­ing ac­tiv­i­ties. To the extent necessary to achieve this ob­jec­tive, the IASB re­quires that the fol­low­ing changes in li­a­bil­i­ties aris­ing from fi­nanc­ing ac­tiv­i­ties are dis­closed): (i) changes from fi­nanc­ing cash flows; (ii) changes aris­ing from ob­tain­ing or los­ing con­trol of sub­sidiaries or other busi­nesses; (iii) the ef­fect of changes in for­eign ex­change rates; (iv) changes in fair val­ues; and (v) other changes.

The amendments state that one way to fulfill the new disclosure requirements is to provide a reconciliation between the opening and closing balances in the statement of financial position for liabilities arising from financing activities. This is a departure from the December 2014 exposure draft that had proposed that such a reconciliation should be required.

Finally, the amendments state that changes in liabilities arising from financing activities must be disclosed separately from changes in other assets and liabilities.

Dissenting opinion

One Board member voted against the publication of the amendments as this Board member believes that (i) the amendments may provide incomplete information about an entity’s management of liquidity, (ii) the amendments do not meet the needs of users of financial statements, and (iii) the costs of preparing the disclosure will be considerable and may outweigh the benefits.

Effective date and transition requirements

The amendments are effective for annual periods beginning on or after January 1, 2017. Earlier application is permitted. Since the amendments are being issued less than one year before the effective date, entities need not provide comparative information when they first apply the amendments.

Additional information

Please click for:

IFAC Image

The Role of the Auditor General in Creating Public Trust and Value

Jan 26, 2016

In this webcast, International Federation of Accountants (IFAC) Board Member, Carol Bellringer, Auditor General of British Columbia, Canada, discusses the role of the Auditor General and government and public sector financial reporting. She notes the importance of building public trust and economic value and how the work of accountants is critical to these ends.

Listen to the webcast on the IFAC's Web site.

Leaf - sustainability (green) Image

Recent sustainability reporting developments

Jan 21, 2016

On January 21, 2016, the Climate Disclosure Standards Board (CDSB), together with the Carbon Tracker Initiative released a paper designed to assist the global Task Force on Climate-related Financial Disclosures members in assessing the ‘carbon bubble’ concept and ‘stranded asset’ risks inherent in the business-as-usual strategies of many fossil fuel companies.

The Climate Disclosure Standards Board (CDSB), together with the Carbon Tracker Initiative, has launched proposals for risk reporting by fossil fuel companies. The report, Considerations for reporting and disclosure in a carbon-constrained world, looks at the questions of

  • What should resource companies report on climate change and carbon asset stranding risks?
  • Who should set the reporting requirements and how should the information be used?
  • What are the challenges ahead?
  • What are the opportunities?

Please click to access the report on the CDSB Website.

Securities - ASC Image

Securities Regulators in Alberta, British Columbia, Manitoba, New Brunswick and Saskatchewan adopt new investment dealer prospectus exemption

Jan 14, 2016

On January 14, 2016, the Alberta Securities Commission (ASC) issued a press release in which the securities regulators in Alberta, British Columbia, Manitoba, New Brunswick and Saskatchewan announced that they are each adopting a prospectus exemption (exemption) that, provided certain conditions are met, will allow issuers listed on a Canadian exchange to more easily raise money by distributing securities without the need for a prescribed offering document.

Under the exemption, an investor must obtain advice regarding the suitability of the investment from an investment dealer. This is a key condition for investor protection, as the investment dealer must meet its know-your-client and know-your-product obligations when determining the suitability of the investment.

Review the press release on the ASC's Web Site.

IAASB - Assurance Image

IAASB Seeks Feedback On Standard-Setting Activities to Enhance Audit Quality

Dec 17, 2015

On December 17, 2015, the International Auditing and Assurance Standards Board (IAASB) released an Invitation to Comment, Enhancing Audit Quality in the Public Interest: A Focus on Professional Skepticism, Quality Control and Group Audits (the ITC). This ITC highlights the board’s discussions in these three topic areas and indicates potential standard-setting activities that could enhance audit quality.

The IAASB released a companion document, Overview of the ITC, which summarizes the key areas the IAASB is exploring and the direction it may take.

The IAASB’s Framework for Audit Quality, issued in 2014, explains the important role of auditors and their firms—as well as other stakeholders—in audit quality, and the contextual factors that affect it. It is an important reference document for this consultation.

Download the Invitation to Comment from the IAASB's Web site.

PSAS - IPSASB Image

IPSASB publishes two exposure drafts

Oct 14, 2015

On October 14, 2015, the International Public Sector Accounting Standards Board (IPSASB) released for comment two Exposure Drafts (EDs): ED 57 "Impairment of Revalued Assets" and ED 58 "Improvements to IPSASs 2015."

ED 57, Impairment of Revalued Assets proposes to bring property, plant and equipment, and intangible assets on the revaluation model within the scope of IPSAS 21, Impairment of Non-Cash-Generating Assets and IPSAS 26, Impairment of Cash-Generating Assets. This intended to provide users with relevant information on impairments to these assets. The ED also proposes to clarify that an impairment to one or more individual assets within a class of property, plant, and equipment does not necessitate a revaluation of the entire class to which that impaired asset belongs.

ED 58, Improvements to IPSASs 2015 contains proposed minor changes that are consequential amendments arising from the first four chapters of the IPSASB Conceptual Framework, general improvements to IPSAS, improvements to increase consistency with Government Finance Statistics reporting guidelines, and improvements to maintain convergence with International Financial Reporting Standards (IFRSs).

Comments on both EDs are requested by January 15, 2016.

Review press release, ED 57 and ED 58 on the IPSASB's Web Site.

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