The consultative document is entitled Criteria for identifying simple, transparent and comparable short-term securitisations (the short-term STC criteria), which is available on the BCBS and IOSCO websites. The short-term STC criteria maintain and build on the principles in the Criteria for identifying simple, transparent and comparable securitisations issued by BCBS-IOSCO in July 2015. The criteria published today take account of the characteristics of asset-backed commercial paper (ABCP) conduits, such as (i) the short maturity of the commercial paper issued, (ii) the different forms of program structures and (iii) the existence of multiple forms of liquidity and credit support facilities.

The criteria aim to assist the financial industry in its development of simple, transparent and comparable short-term securitizations. They were designed to help the parties to such transactions to evaluate the risks of a particular securitization across similar products and to assist investors with their conduct of due diligence on securitizations.

The BCBS has concurrently issued a consultative document Capital treatment for simple, transparent and comparable short-term securitisations outlining how the short-term STC criteria could be incorporated into the regulatory capital framework for banks.

Re­view the press release on the IOSCO's web­site.

The consultation paper is entitled Recommendations of Liquidity Risk Management for Collective Investment Schemes, and builds on the guidance set out in IOSCO´s 2013 report Principles of Liquidity Risk Management for Collective Investment Schemes (CIS). It also addresses the structural vulnerabilities identified by the Financial Stability Board (FSB) regarding liquidity risk management in the asset management industry in its final recommendations published in January 2017. The FSB asked IOSCO to take forward the recommendations regarding the mismatch between fund investments and redemption terms for open-ended funds.

IOSCO´s consultation paper on the recommendations proposes revisions that supplement the 2013 liquidity report with additional recommendations and detailed guidance on several issues, including those highlighted in the FSB report. Topics covered in the consultation paper include disclosure to investors, the alignment between asset portfolio and redemption terms, availability and effectiveness of liquidity risk management tools and fund level stress testing. In addition, IOSCO includes additional recommendations on contingency planning and requests specific public comments on issues affecting exchange traded funds.

On the same date, IOSCO also published another paper, Open-ended Fund Liquidity and Risk Management – Good Practices and Issues for Consideration, that provides practical information, examples and good practices regarding open-ended fund liquidity risk management, to supplement its recommendations.

Re­view the press release on the IOSCO's web­site.

CSA staff are proposing to amend National Instrument 25-101 Designated Rating Organizations (NI 25-101) to reflect new European Union (EU) requirements for credit rating organizations, to ensure the EU continues to recognize the Canadian regime as “equivalent” for regulatory purposes after these new requirements go into effect on June 1, 2018. The proposed amendments would allow credit ratings of a Canadian office of a DRO to continue to be used for regulatory purposes in the EU.

To ensure that NI 25-101 continues to reflect the International Organization of Securities Commissions (IOSCO) Code of Conduct Fundamentals for Credit Rating Agencies (the Code), the proposed amendments also reflect new provisions in the March 2015 version of the Code..

Stakeholders are invited to submit their comments in writing by October 4, 2017.

For fur­ther de­tails re­fer to the press re­lease and the proposed changes.

In the article, Mr. McGovern says that “the FASB and IASB standards that came out in early 2016 fundamentally brought all leases on the balance sheet. While those standards are similar in that regard and were originally a convergence project for the IASB and FASB, they definitely diverged quite a bit and created a number of differences which create complications for global companies that report in both U.S. GAAP and IFRS.”

Also, audit committees are asking more and more questions and that they’ve learned their lesson from revenue: It’s better to start asking questions sooner rather than later. So, experts are warning companies not to procrastinate anymore. They need to be gathering a lot of information over the next 18 months to be ready for 2019.

Review the article on Accounting Today's website.

A new report, ‘Build Trust. Inspire Confidence’ puts forward a call to action by G20 countries. In a joint statement its President and its CEO say that: ‘Governments must promote coherent public policy and a consistent, transparent regulatory environment that inspires confidence while enabling progress. Professional accountants continue to play a crucial role enabling capital flows, economic activity, and higher standards of living’. They call for a series of actionable recommendations, a policy consensus backed up by tangible implementation and cooperation amongst G20 countries.

One of these recommendation is the use of integrated reporting.  ‘Integrated reporting’, says the report, ‘is an opportunity to focus on long-term value creation, and improve on a largely fragmented, complex, and compliance-driven system’. The way forward, says the report, is through harnessing the techniques of integrated thinking. ‘Integrated reporting’, says the report, ‘is founded on integrated organisational thinking and more likely to align capital allocation and corporate behaviours to the wider goals of financial stability and sustainable development’. It urges the G20 to action.

The report cites a recent survey carried out by the South African Institute of Chartered Accountants to illustrate how integrated thinking can improve decision making. 74% of executives, the report says, and 93% of non-executive directors were of the view that integrated thinking had improved decision-making at management level. And 72% of executives and 86% of non-executive directors thought integrated thinking had improved decision-making at board level.

Read the en­tire col­umn on our Global IAS Plus web­site.

Mr. Boomer explains that during the past year, we have seen numerous blockchain pilots in several industries, governmental applications, and, more important, the convergence of multiple technologies increasing the capability and importance of blockchain to the accounting profession.

Therefore, accountants must change their mindsets, skill sets and toolsets to remain future-ready and the accounting profession should not ignore the investments being made in these technologies and the potential disruption to all professions.

Some of the uncertainties the blockchain has the potential to eliminate are:

• Identity (proof, security and privacy);
• Transparency (asset tracking);
• Shared reality (nodes monitor tampering); and,
• Renege (smart contract as an escrow agent).

Review the article on the Accounting today's website.

Based on the annual assessment of IIROC’s functional areas and key processes, the Recognizing Regulators selected above-average risk areas as the focus for the review, including Business Conduct Compliance, Enforcement, Information Technology, Market Surveillance, and Trade Review & Analysis. The Recognizing Regulators considered the previous oversight review and whether findings identified in that review had been resolved, as well as current issues and market conditions that could affect IIROC.

In summary, CSA staff acknowledge that IIROC made sufficient progress in resolving specific issues raised in previous oversight reports. However, CSA staff note a repeat finding in the Business Conduct Compliance department given IIROC did not implement necessary changes to their examination programs (high priority). Also, CSA staff found that IIROC did not make sufficient progress in resolving an issue raised during the previous oversight review in the area of Information Technology (medium priority) by not providing an information security program report to a Board committee on a quarterly basis. In addition, CSA staff raise other medium priority findings in the Business Conduct Compliance (one), Information Technology (one) and Enforcement (two) departments.

For further details refer to the press release and the Oversight Review Report.

The AICPA is collecting feedback on the working drafts as part of its ongoing work to develop a new revenue recognition guide.

The four working drafts released are:

• Airlines: Issue No. 2-1, Regional Contracts.
• Gaming: Issue No. 6-5, The Timing for Recognition of the WAP Operator’s Liability for Base Progressive and Incremental Progressive Jackpot Amounts.
• Health Care: Issue No. 8-8, Consideration of FASB ASC 606, Revenue From Contracts With Customers, for Third Party Settlement Estimates.
• Telecommunications: Issue No. 15-10, Miscellaneous Fees.

The deadline for informal feedback on the implementation issues is September 1, 2017.

Review a press release on the Journal of Accountancy's website.

The working drafts address the following topics:

• Regional contracts (airlines).
• The timing for recognition of a wide-area progressive operator’s liability for base progressive and incremental progressive jackpot amounts (gaming).
• Consideration of the new revenue standard in connection with third-party settlement estimates (health care).
• Miscellaneous fees (telecommunications).

Comments on the working drafts are due by September 1, 2017.

For more information, see the revenue recognition page on the AICPA’s Web site.

The April 20, 2017 CSA Staff Notice 45-323 (the “Staff Notice”), Update on Use of the Rights Offering Exemption in National Instrument 45-106 – Prospectus Exemptions, indicates that during the first year following adoption of the new rules, reporting issuers’ use of prospectus-exempt rights offerings had more than doubled.

The Staff Notice also notes key disclosure issues related to rights offerings under the new rules which need to be addressed. These issues relate to inadequate disclosures in certain filings in respect of: (i) stand-by commitments; (ii) use of available funds; and (iii) closing news release.

For fur­ther de­tails re­fer to the Staff Notice on the CSA’s website.