News in brief: Consultation paper on standard setting in Canada released
The consultation paper from the Independent Review Committee on Standard Setting is open for comment until February 28, 2022 (Getty Images/PeopleImages)
INDEPENDENT REVIEW COMMITTEE RELEASES CONSULTATION PAPER
The Independent Review Committee on Standard Setting in Canada is reviewing the current governance and structure of Canadian accounting, auditing, and assurance standards, including future needs like sustainability standards. A consultation paper seeking public comment is now available, as the Committee wants to ensure the key matters they have identified align with Canadians.
The key matters are: recommending a Canadian Sustainability Standards Board (CSSB) is established, keeping Canadian standard setting independent and being responsive to stakeholder needs. These key matters were all informed by the Committee’s focus on public interest, diversity, equity and inclusions and Indigenous rights.
On the heels of the recent International Sustainability Standards Board (ISSB) formation announcement, a CSSB would work alongside Canada's existing standards boards and liaise with the new ISSB, ensuring that the Canadian perspective is part of international decision making.
“Our goal is to ensure that Canadian standard setting continues to be relevant and responsive, as well as independent and internationally recognized,” says Edward J. Waitzer, chair of the Committee. “As a result, we think it is critical to establish a Canadian Sustainability Standards Board that works alongside Canada's existing accounting, auditing, and assurance standards bodies.”
The paper is open for comment until February 28, 2022. This feedback will encourage final recommendations to the Committee. The final report is expected out June 2022.
Q3 BUSINESS MONITOR REVEALS OVERALL OPTIMISM
A new CPA Canada survey states that the majority of business leaders (52 per cent) are optimistic about the Canadian economy.
However, of those surveyed, 95 per cent said they wanted a comprehensive review of federal spending and 63 per cent are concerned about current government fiscal standing. A large majority (64 per cent) of respondents agree that the federal government should concentrate on mitigating climate change.
The main challenges to Canadian economic growth, according to survey participants, were supply chain issues, employee recruitment, retention and development and lack of skilled workers. Yet, more than two-thirds of those surveyed reported optimism about their own company’s economic prospects in the coming year.
“The economic recovery is well underway, but the pandemic has left its mark on society and public finances,” said Charles-Antoine St-Jean, president and CEO of CPA Canada. “Sustaining our growth and ensuring it benefits all Canadians and is in line with our environmental goals will require efforts from the private and public sectors alike.”
Read the full report online.
NEW ESG DISCLOSURE REPORT FROM CPA CANADA AND DELOITTE OUT NOW
As climate change poses increased risk to companies’ operations, more organizations are disclosing plans to show how they will mitigate such risk.
CPA Canada, together with Deloitte, worked to analyze climate action plans from 20 companies listed on the Toronto Stock Exchange (TSX). The report, Getting to Net Zero: An assessment of 20 companies, their climate-action plans and how they communicate them, highlights findings on net-zero disclosures and the areas for improvement.
This research aims to bolster discussion around such disclosure, as well as recognize ways in which companies can improve transition plans and net zero targets.
Download the full report for more insights.
GUIDE SHOWCASES SUSTAINABILITY AS A VALUE DRIVER
Business demands are changing and as needs from environmental and social issues develop, the need to integrate sustainability into an organization’s risk management, strategy, reporting and operations is becoming more significant.
A new guide, the A4S Essential Guide to Engaging the Board and Executive Management, is a resource that finance teams can use to demonstrate the value of sustainability when working with management teams and boards. It outlines a three-step method to engage a board and illustrates how they can be implemented. Three tools and six case studies are also available to reference.
“Organizations that successfully integrate sustainable considerations into their regular business models will thrive in the future,” says Davinder Valeri, director, strategy, risk and performance, in the research, guidance and support department at CPA Canada. “This guide positions CFOs and finance teams to help boards and executive management teams respond to the many challenges ahead and create long-term value.”
The guide is available for free download.
PUBLICATION SPOTLIGHTS CPAs AS DIGITAL TRANSFORMATION CHAMPIONS
Rapid changes within accounting and the business world can yield opportunities for CPAs. And the key is to anticipate and embrace these changes.
The business case for digital transformation, sheds light on how the profession can adapt to make the most of emerging trends that will impact the traditional roles for accountants.
“CPAs can become champions for a balanced approach to digital transformation efforts; one that balances short-term gains from workforce automation with longer term strategic objectives such as maintaining organizational resilience, preserving corporate memory and performing proper controls to ensure that RPAs, intelligent automation, AI and machine learning are indeed performing as they should,” says the report.
The publication also includes tactics for organizations to implement as they take their first steps towards digitization and suggestions for how they can expand their reach through the use of new technologies, tools and services.
Download the PDF for more details and join our digital conversation to share your thoughts with other participants.
WEBINAR FOCUSES ON SHIFTING ROLES OF THE FUTURE CPA
Digitization is affecting every role of business—and the future CPA must be prepared.
To help members understand the changing business landscape, CPA Canada joined forces with the Confederation of Asian and Pacific Accountants (CAPA), to host a free webinar, Skills for the Future Accounting Professional on December 7.
Considering these fast-paced changes, CPA Canada had previously launched consultations with numerous stakeholders to better understand and consider the implications for the accounting profession. This webinar addressed these findings and examined possible options.
FCPA Gordon Beal, vice-president of research, guidance and support at CPA Canada, and Gigi Dawe, director, corporate oversight and governance, talked about value creation, trust and ethics and data governance in relation to the future CPA.
Irene Wiecek and Tim Jackson, both FCPAs and members of the Competency Map Task Force, also weighed in on the new competency map, which focuses heavily on the accountant’s role in a digital world.
Tuning in from 54 countries, the event drew over 470 accounting professionals.
FREE ONLINE EVENT HIGHLIGHTS ETHICS AROUND TECHNOLOGY
New technology brings advancements, but also potentially disruptive elements that professionals must be aware of.
Professional Ethics and Transformative Technologies, a webinar for international CPAs held earlier this month, focused on the need for an additional ethical framework for accountants. Webinar host CPA Garth Sheriff highlighted what he called three transformative technologies—artificial intelligence, big data and blockchain and cryptocurrency—that are already feeling such impacts.
“Today’s technology is complex and the ethical component of using it can also present challenges,” said Marcia Maynard, chair of the CPA Canada Trinidad and Tobago Chapter Advisory Council. “This presentation really laid out the various ethical considerations and implications of each of three transformative technologies discussed.”
The webinar hosted over 900 CPAs from more than 60 countries.
STAY A STEP AHEAD
Find out how CPAs are preparing for the big data world and discover what the new competency map will include to prepare the next generation of accountants. Plus, learn more about how the accounting profession is evolving.