News

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Three trends changing the accounting profession

Nov 06, 2017

On November 6, 2017, Accounting Today released an article where Cathy Engelbert, CEO of Deloitte, discusses the three significant factors shaping the profession of the future: the impact of new technologies, new demographics, and new client demands.

Review the article on Accounting Today's website.

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IASB posts webcast on IFRS 17

Nov 02, 2017

On November 2, 2017, the International Accounting Standards Board (IASB) posted a webcast on recognition and derecognition requirements in IFRS 17, "Insurance Contracts".

The new webcast is part of a series on the implementation of IFRS 17 and can be accessed on the IASB website. Earlier webcasts and webinars on IFRS 17 are available through an archive on the IASB's website.

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Will External Audits Vanish in the Blockchain World?

Nov 02, 2017

On November 2, 2017, the International Federation of Accountants (IFAC) released an article on how external audits won't vanish in the immediate future, but like many of the disruptive transformations taking shape around us with everything going digital, external audits cannot stand insulated.

Blockchain is seen as a solution in every situation where there is need for a trustworthy record. And that is where blockchain’s next big disruption is: its potential application in inter-organizational records, including accounts management.

In a mature blockchain and an artificial intelligence-driven world, investors could—in real-time—have a true and fair view of financials that are inherently trustworthy. This would eliminate the need for external audits in its current form.

Does this really mean external audits would be extinct?

Not really. First, as it stands today, blockchain suffers from lack of clarity in its administrative framework. In addition, the internal controls surrounding origination and creation points for transactions and configuration of smart contracts and mining may always be a cause of internal control concern and need to be audited. 

Transformation of external audit

One can say with some certainty that the external audits in a blockchain-driven world will need to shift focus from transaction based audits to audit of internal control design and change management.

Review the full article on the IFAC's website.

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AICPA issues revenue working drafts for broker-dealers and telecommunications entities

Nov 02, 2017

On November 2, 2017, the American Institute of Certified Public Accountants’ (AICPA) revenue recognition task forces released for public comment two working drafts on accounting issues associated with the implementation of the new revenue standard for broker-dealers and telecommunications entities.

The broker-dealer working draft addresses underwriting revenues, while the telecommunications working draft covers the determination of transaction prices.

Comments on the working drafts are due by January 2, 2018. For more information, see the revenue recognition resource page on the AICPA’s website.

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Updated IASB work plan — Analysis

Oct 27, 2017

On October 27, 2017, the International Accounting Standards Board (IASB) updated its work plan following its October 2017 meeting. Changes mostly relate to pronouncements having been published, comment letter deadlines having ended, and clarifications of upcoming dates of issuing pronouncements.

Below is an analysis of all changes made to the work plan since our last analysis on September 22, 2017.

Main­te­nance projects

Research projects

Other projects

  • IFRS Taxonomy update for prepayment features with negative compensation — New entry added to work plan. Feedback statement on the proposed update is expected in the first quarter of 2018.

The revised IASB work plan is available on the IASB's website.

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CSA seeks comment on approach to determining director and audit committee member independence

Oct 26, 2017

On October 26, 2017, the Canadian Securities Administrators (CSA) published for comment CSA Consultation Paper 52-404 "Approach to Director and Audit Committee Member Independence", which is intended to facilitate a broad discussion on the appropriateness of the CSA’s approach to determining director and audit committee member independence.

The Consultation Paper outlines key historical developments related to the CSA’s corporate governance regime, sets out our approach to determining director and audit committee member independence, and describes the approaches to determining independence in other jurisdictions. The Consultation Paper also examines the benefits and limitations of our approach.

Comments should be submitted in writing by January 25, 2018.

Review the press release on the CSA's website and the Consultation Paper on the CSA members’ websites.

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Canadian Enterprises Are Missing Opportunities to Digitally Transform

Oct 24, 2017

In October 2017, Financial Executives International Canada (FEI Canada) released a webinar on the era of CFO digital leadership.

Forward thinking finance executives regard digital transformation (DX) as an opportunity to increase value across the enterprise, drive long-term growth and performance. But some do it better than others. What do the high-performing finance leaders do differently?

The majority of Canadian senior financial executives agree that to stay competitive in an increasingly digital world their businesses must become more digital themselves, but only a minority of organizations have fully embraced digital technologies to transform the way they work. These are among the key findings in new Canadian-centric research from FEI Canada and DXAgents.

In this webinar, FEI Canada will:

  • Present the survey results with executives from CIO Association of Canada, Deloitte, and SAP.
  • Examine the difference between companies that succeed and those that struggle with the DX of their finance function.
  • Discuss the emerging role of the CFO in DX leadership.

View the webinar on FEI Canada's website.

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Canadian Businesses at a Digital Crossroads

Oct 24, 2017

In October 2017, Financial Executives International Canada (FEI Canada) released a white paper how the majority of Canadian senior financial executives agree that to stay competitive in an increasingly digital world their businesses must become more digital themselves, but that only a minority of organizations have fully embraced digital technologies to transform the way they work.

A survey of senior financial executives from small, mid-size and large companies across various sectors and industries finds that 79% of respondents agree digital transformation is important to stay competitive and that the digital space will have a major impact on their business in the next three years (78%). Yet only about one quarter have a defined organization-wide strategy for digital transformation and an even smaller group (15%) have implemented that strategy.

Instead, it appears Canada’s businesses are taking an incremental approach to incorporating digital technologies such as big data analytics, mobile, social and the Internet of Things into operations. The overwhelming majority (95%), have digital initiatives underway in some form across their organizations. 

Review the white paper on FEI Canada's website.

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Paper on the transition to full adoption of new revenue recognition requirements

Oct 24, 2017

In 2017, the CFA Institute, a global association of investment professionals, published "Revenue Recognition Changes".

About two months remain until the beginning of 2018 when all public companies reporting on a US GAAP and International Financial Reporting Standards (IFRS) basis adopt the revised revenue recognition requirements. The paper examines reporting patterns that have begun to crystallise in the transition to full adoption although it notes:

Notably, many companies seem to be crawling to the starting line. Very few companies have been early adopters. At the same time, insightful numerical information on anticipated impacts from those that are yet to adopt is limited.

The paper also reviews selected critical judgments that could affect reported revenue.

Review the full paper on the CFA Institute's website.

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AcSB Exposure Draft – Definition of Material

Oct 23, 2017

On October 23, 2017, the Accounting Standards Board (AcSB) issued an Exposure Draft that corresponds to the IASB’s Exposure Draft on this topic. Stakeholders are encouraged to submit their comments by January 15, 2018.

The AcSB would like input from Canadian respondents on the following additional question regarding the proposed amendments:

The IASB has developed the proposed amendments in accordance with its due process for application around the world. Assuming the Exposure Draft proposals are finalized and approved by the IASB in accordance with its due process, do you think that the proposals are appropriate for application in Canada? If not, please specify which aspects of the proposals, and what circumstances, make the accounting requirements proposed in the Exposure Draft inappropriate.

Review the Exposure Draft on the AcSB's website.

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