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News

IAASB - Assurance Image

IAASB Discussion Paper – Exploring the Demand for Agreed-Upon Procedures Engagements and Other Services, and the Implications for the IAASB’s International Standards

Nov 29, 2016

On November 29, 2016, the International Auditing and Assurance Standards Board (IAASB) issued a Discussion Paper exploring how agreed-upon procedures engagements are undertaken and reports are used. It also explores the demand for engagements that combine reasonable, limited and no assurance. Canadian stakeholders are encouraged to respond to the IAASB by March 29, 2017.

Review the Discussion Paper on the IAASB's website.

European Union Image

Disclose what truly matters: Model disclosures under the non-financial and diversity information directive

Nov 28, 2016

On November 28, 2016, Accountancy Europe released released the guide "Disclose what truly matters: Model disclosures under the non-financial and diversity information directive," which provides practical guidance to companies that will have to comply for the first time with the EU Directive on the disclosure of non-financial and diversity information by certain large undertakings and groups.

In the publication, they apply the Directive’s requirements in a "mock-up" management report of a fictional company in the food industry, which will especially help companies without prior experience in reporting on non-financial and diversity information.

Around 6,000 European companies are affected by this Directive which Member States have to transpose into their national laws by December 6, 2016.

Review the guide on the Accountancy Europe's website.

CPAB - Assurance Image

CPAB 2016 Big Four Public Report and Highlights for Audit Committees

Nov 28, 2016

On November 28, 2016, the Canadian Public Accountability Board (CPAB) released its 2016 public report on the inspections of Canada’s Big Four public accounting firms and Highlights for Audit Committees, which includes common findings and recommendations to improve audit quality.

The CPAB's 2016 inspections findings indicates that, despite an overall decrease in significant inspection findings compared to last year, audit quality continues to be inconsistent.

In 2016, CPAB inspected 87 engagements files, 11 of those had significant findings. Last year, CPAB reported five key inspection themes. Ninety-six percent of their total findings related to these areas again in 2016: significant accounting estimates, executing audit fundamentals, professional judgment and skepticism, internal controls and understanding business processes relevant to financial reporting.

Review the Public Report and the Highlights for Audit Committees on the CPAB's Web site.

Australia Image

Australian Accounting Standards Board Paper - Country-by-country reporting

Nov 25, 2016

In November 2016, the Australian Accounting Standards Board (AASB) published a paper on "Country-by-country reporting: Update on AASB approach" that will be discussed by members during the upcoming meeting of the Accounting Standards Advisory Forum (ASAF) on December 8 and 9, 2016.

This paper offers an update on the AASB approach to country-by-country reporting and argues that while much of the tax transparency initiative to date has been driven by the tax authorities, in order to remain relevant in an ever-changing regulatory environment, it is time for accounting standard-setters to take a leadership role in improving income tax disclosures for users of financial reports.

Review the paper on the AASB's website.

Australia Image

Australian Accounting Standards Board Paper - Digital currency

Nov 25, 2016

In November 2016, the Australian Accounting Standards Board (AASB) published the paper "Digital currency – A case for standard setting activity" that will be discussed by members during the upcoming meeting of the Accounting Standards Advisory Forum (ASAF) on December 8 and 9, 2016.

Digital currency – A case for standard setting activity recommends that the IASB develop a standard that addresses the accounting for investments in intangible assets or other commodity type assets that are not financial instruments or inventory, since the current alternatives to account for digital currencies (IAS 2 or IAS 38) do not provide relevant information to users of financial statements. This issue also highlights a broader issue with IFRSs in that there is no accounting standard that deals with investments in intangible assets or other commodity type assets that are not financial instruments or inventory.

Review the paper on the AASB's website.

Lights Image

Analytics – Moving from Hindsight to Foresight

Nov 25, 2016

The appetite for information has been increasing across most organizations, and we’re not talking about just any old historical information, we’re talking about information that can help make timely, informed business decisions and provide real value to an organization.

In our CFO’s corner series, Jerome Townsend, Senior Manager in Deloitte’s Audit - Public practice, who also helped establish Deloitte’s internal Audit Analytics team, discusses how in the spectrum of hindsight - insight - foresight, the information we rely on often resides squarely within the hindsight category, leaving the insight and foresight components to individual interpretation and ‘gut feeling.’ Many organizations have survived and even flourished in this respect, but as technology, data and talent continue to expand and evolve, the competitive advantage continues to shift to those who know how to turn information into intelligence. Organizations that do this well are known as Insight Driven Organizations (IDOs).

Visit the CFO’s corner in Deloitte’s Centre for Financial Reporting to read this editorial as well as any previous articles that you may have missed.

Securities - OSC Image

OSC Staff Notice 52-723 - Office of the Chief Accountant - Financial Reporting Bulletin

Nov 25, 2016

On November 25, 2016, the Ontario Securities Commission (OSC) released OSC Staff Notice 52-723 - Office of the Chief Accountant - Financial Reporting Bulletin (November 2016) which highlights their observations on various financial reporting topics.

This bulletin highlights observations about various financial reporting topics relevant to reporting issuers that prepare financial statements in accordance with IFRS. The objective of this bulletin is to provide useful information to market participants that may assist in preparing future financial reports.

The staff of the OSC wants to:

  • communicate considerations for disclosure effectiveness
  • share their observations on recent areas of focus
  • highlight their expectations for implementation of several new accounting standards.

When disclosing financial information, the staff of the OSC encourages reporting issuers to:

  • take a "fresh look" at their financial statement disclosures, and consider how information could be more effectively and efficiently presented
  • consider financial reports as communication documents as opposed to a "compliance exercise".

A reporting issuer's management, audit committee, and external auditor each has an important role to play in contributing to disclosure effectiveness.

Review the bulletin on the OSC's website.

PSAS - PSAB Image

Invitation to Comment – Employment Benefits: Deferral Provisions in Sections PS 3250 and PS 3255

Nov 25, 2016

On November 25, 2016, the Public Sector Accounting Board (PSAB) issued an Invitation to Comment to seek stakeholder input before forming its preliminary views on the deferral provisions in the employment benefits standards.

Stakeholders are encouraged to submit their responses by March 3, 2017.

Review the Invitation to Comment on the PSAB's website.

IFRS - IASB Image

IASB podcast on tentative decisions in the insurance project

Nov 24, 2016

On November 24, 2016, the International Accounting Standards Board (IASB) released a podcast of its November 2016 meeting, where they discussed issues that have arisen from the external testing of a draft of IFRS 17, "Insurance Contracts" and in the drafting process thus far.

The Board decided to set the mandatory effective date for IFRS 17 for annual periods beginning on or after January 1, 2021. Darrel Scott, Board member, and Andrea Pryde, project leader of the Insurance Contracts project, discuss the deliberations at that meeting.

Review the podcast (approx. 9 minutes long) on the IASB's website.

US_SEC Image

SEC issues report on modernization and simplification of Regulation S-K

Nov 23, 2016

On November 23, 2016, the U.S. Securities and Exchange Commission (SEC) issued “Report on Modernization and Simplification of Regulation S-K.” The report is being issued in response to a mandate in Section 72003 of the Fixing America’s Surface Transportation Act, which requires the report to include: (i) all findings and determinations made in carrying out the study; (ii) specific and detailed recommendations on modernizing and simplifying the requirements in Regulation S–K in a manner that reduces the costs and burdens on companies while still providing all material information; and (iii) specific and detailed recommendations on ways to improve the readability and navigability of disclosure documents and to discourage repetition and the disclosure of immaterial information.

The report includes staff recommendations on the following topics:

  • Core company business information
  • Company performance, financial information, and future prospects
  • Management and certain security holders
  • Corporate governance
  • Registration statement and prospectus provisions
  • Exhibits
  • Manner of delivery recommendations

Review the report on the SEC’s website.

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