PAIB eNews: November 2011

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    Nov 11, 2011
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    PAIB eNews: November 2011

    Welcome to IFAC's Professional Accountants in Business (PAIB) Committee eNews.

    In this Issue:

    Risk Management and Internal Control

    1.  ISO 31000 Global Survey Now Open
    2.  COSO Internal Control Paper Expected Soon

    Governance and Ethics

    3.  Call for Case Studies Highlighting the Roles of Professional Accountants
    4.  OECD Holds Roundtable on Corporate Governance

    Financial and Performance Management

    5.  ICWAI Approves Generally Accepted Cost Accounting Principles

    Business Reporting

    6.  GRI Opens Comment Period for G4 Sustainability Reporting Guidelines
    7.  IIRC Releases Discussion Paper, Lines Up Participants for Pilot Programme
    8.  ICMAP and ICAP to Present Best Sustainability Report, Best Corporate Report Awards
    9.  CDSB Receives Future Quotient Award
    10. FRC launches UK’s First Financial Reporting Lab

    Sustainability and Corporate Responsibility

    11. Indian Government Releases Responsibility Guidelines
    12. KPMG Survey: Six European Nations Lead Corporate Responsibility Reporting
    13. New Sustainability Performance Management Report Out from CIMA and Accenture

    General News

    14. PAIB Committee Deputy Chair Elected President of CPA Australia

    Recent PAIB Publications

    15. Competent and Versatile: How Professional Accountants in Business Drive Sustainable Organizational Success
    16. Leveraging XBRL for Value in Organizations
    17. IFAC Sustainability Framework 2.0

     

     

    1. ISO 31000 Global Survey Now Open

    The International Organization for Standardization (ISO) is currently developing implementation guidance for its ISO 31000:2009 standard, Risk Management—Principles and Guidelines. In light of this, a survey has been released that is designed to measure how ISO 31000 is perceived by decision makers across all sectors and to provide input for the preparation of the guidance, which is expected in 2014. Members of more than 100 risk management groups, online discussion groups, and other interested parties have been asked to participate in the five minute survey. The confidential survey is available at www.iso31000survey.com and is open until November 30, 2011.

    IFAC is participating in the ISO Project Committee that is developing this guidance. 

     

    2. COSO Internal Control Paper Expected Soon

    The Committee of Sponsoring Organizations of the Treadway Commission (COSO) is expected to release later this month an Exposure Draft for its update of Internal Control—Integrated Framework; IFAC has participated in its development. The update of this framework, which is widely used across the globe, seeks to help organizations better design, implement, and evaluate their internal control systems. Interested parties will be invited to share their comments via the COSO website. The PAIB Committee will issue a special edition of eNews to share this Exposure Draft with subscribers when it is released.

     

    3. Call for Case Studies Highlighting the Roles of Professional Accountants

    The PAIB Committee is bringing together some practical examples of how professional accountants in business can support their organizations in making governance an integral part of their organizations’ DNA. If you have a recommendation for a brief case study, or would be interested in participating yourself, please contact Vincent Tophoff (vincenttophoff@ifac.org). 

     

    4. OECD Holds Roundtable on Corporate Governance

    The Organisation for Economic Co-operation and Development (OECD) recently held the 2011 Asian Roundtable on Corporate Governance in Indonesia, co-hosted by the (Indonesian) Capital Market and Financial Institution Supervisory Board and the Indonesian Ministry of Finance. The event brought together policy makers, practitioners, and experts to discuss corporate governance challenges and reform priorities in Asia and developments in Indonesia. Participants at the event also endorsed Reform Priorities in Asia: Taking Corporate Governance to a Higher Level, a white paper from the OECD that outlines new priorities for corporate governance reforms in the Asian region over the next few years. 

     

    5. ICWAI Approves Generally Accepted Cost Accounting Principles

    The Council of the Institute of Cost and Works Accountants of India (ICWAI) has approved the Generally Accepted Cost Accounting Principles (GACAP), as recommended by the Institute’s Cost Accounting Standards Board. Additionally, the Ministry of Corporate Affairs in India recently moved to a principles-based mechanism for the maintenance of Cost Records and Audit in accordance with GACAP. The GACAP is available at on the ICWAI website

     

    6. GRI Opens Comment Period for G4 Sustainability Reporting Guidelines

    The Global Reporting Initiative (GRI) has opened the first comment period in the path toward its G4 Sustainability Reporting Guidelines, the fourth generation of guidelines. This first comment period is a survey, available in English, French, Mandarin Chinese, Portuguese, and Spanish, and is designed to ensure the guidelines are consensus-based and take into consideration the views of all stakeholders. The survey is seeking information on the reasons for sustainability reporting; report format; minimum content necessary; report topics to include; and general experiences with sustainability reporting. The survey is open until November 24, 2011

     

    7. IIRC Releases Discussion Paper, Lines Up Participants for Pilot Programme

    The International Integrated Reporting Committee (IIRC) has released for comment its Discussion Paper, Towards Integrated Reporting: Communicating Value in the 21st Century, which follows up on many of the themes and recommendations of the IFAC report Integrating the Business Reporting Supply Chain. The paper makes the case for integrated reporting (IR) and proposes initial steps in the development of an international integrated reporting framework. The paper is open for comment until December 14, 2011.

    Additionally, the IIRC has commitments from many companies and organizations to participate in the initial two-year stage of the IIRC Pilot Programme, including global powerhouses HSBC, Microsoft, and Coca-Cola. The Programme will develop IR case studies and best practices developed from testing the framework prior to its release. For additional background on the Pilot Programme, see the July issue of PAIB eNews. 

     

    8. ICMAP and ICAP to Award Best Sustainability Report, Best Corporate Report

    For the first time, the Institute of Cost and Management Accountants of Pakistan (ICMAP) and the Institute of Chartered Accountants of Pakistan (ICAP) will be awarding a Best Sustainability Report along with their annual Best Corporate Report award, which has been awarded to leading companies since 2000. The Joint Committee of ICMAP and ICAP will announce the winners of both awards at a ceremony on November 11, 2011 in Karachi, Pakistan. A.N. Raman, President of the South Asian Federation of Accountants and member of the PAIB Committee, will be the Chief Guest at the ceremony.

    For the new sustainability report award, companies were judged on strategy and profile disclosures; management approach disclosures; core performance indicators, including economic, social, and environmental; relevance of the sustainability report to the organizational sector; stakeholder engagement; report presentation; and assurance by an independent assurer (see evaluation criteria for more details).

    The Best Corporate Report award is based on corporate objectives; director’s report/chairman’s/CEO’s review; disclosures; stakeholder’s information; report presentation; and corporate governance. 

     

    9. CDSB Receives Future Quotient Award

    The Climate Disclosure Standards Board (CDSB) has been named one of the 50 Stars in Seriously Long-term Innovation in Future Quotient, a new report by JTW and Volans that addresses the interests and needs of future generations. The CDSB was named as a “constellation,” meaning it links multiple change agents. The report seeks to measure the Future Quotient (FQ), much like Intelligence Quotient (IQ) and Emotional Quotient (EQ) measures, of individuals, teams, agencies, businesses, and brands by measuring for “future-readiness”—the ability “to positively cope with and overcome the various complexities as a result of foreseeable and unforeseeable future changes in the economy, society, and environment.“

    CDSB also recently released updated paragraphs of its Climate Change Reporting Framework 1.0—specifically paragraphs 4.23-4.25—following discussions with members of the World Resources Institute, World Business Council for Sustainable Development, and representatives of the accountancy profession. These paragraphs deal with organizational boundary setting for greenhouse gas emissions (GHG) reporting; changes were made in recognition of long-standing practices made through the adoption of the GHG Protocol.

    The CDSB also recently launched a new website, including social media tools and content. Visit the new site at www.cdsb.net or sign up for the newsletter

     

    10. FRC launches UK’s First Financial Reporting Lab

    A new Financial Reporting Lab was recently launched by the (UK) Financial Reporting Council (FRC). The Lab is designed to bring together companies and investors to identify practical solutions to current financial reporting problems, including length and complexity. Participants will include a range of sectors and include investors and representatives from a variety of companies. Additional information is available on the FRC website, including a Guide to the Financial Reporting Lab and members of the Steering Group. 

     

    11. Indian Government Releases Responsibility Guidelines

    With the goal of strengthening India’s corporate sector, both public and private, India’s Union Minister of Corporate Affairs has taken initial steps to create guidelines for ethical responsibility of corporations. The National Voluntary Guidelines on Social, Environmental, and Economic Responsibilities of Business have been released to assist organizations by providing an effective regulatory structure to the Indian corporate sector to encourage business development.

    While these guidelines are only just emerging, the release is a significant step forward. The guidelines, intended to be adopted in full, are based on best practices and encourage business to embrace the “triple bottom line” approach to financial performance. The guidelines feature nine principles. 

     

    12. KPMG Survey: Six European Nations Lead Corporate Responsibility Reporting

    According to the International Survey of Corporate Responsibility Reporting 2011, a new survey from KPMG that looked at the top 100 companies in 34 countries, Europe has taken the lead in corporate responsibility reporting, with six countries in the top 10 globally. All 100 companies reviewed in the UK issue reports on their corporate responsibility activities; Japan and South Africa follow with 99% and 97%, respectively¸ issuing reports. The remaining nations in the top 10 are France (94%), Denmark (91%), Brazil (88%), Spain (88%), Finland (85%), the US (83%), and the Netherlands (82%).

    KPMG also argues that corporate responsibility reporting has “become the de facto law for business.” While there are some regions in the world where corporate responsibility reporting hasn’t taken hold, 64% of all companies reviewed issue responsibility reports. 

     

    13. New Sustainability Performance Management Report Out from CIMA and Accenture

    The Chartered Institute of Management Accountants (CIMA) and Accenture have released Sustainability Performance Management: How CFOs Can Unlock Value. The report looks at how robust sustainability performance management, guided by finance professionals, can be a key tool to use sustainability to drive significant business benefits. The report says that embedding sustainability throughout an organization and its strategy and operations can drive value in revenue generation, cost control, building trust, and risk management.

     

     

    14. PAIB Committee Deputy Chair Elected President of CPA Australia

    John Cahill, PAIB Committee Deputy Chair, was recently elected the new president of CPA Australia. Mr. Cahill is a non-executive director for multiple organizations and has more than 25 years of experience in the energy utility sector, treasury, finance, accounting, and risk management. He was also previously CEO of Alinta Infrastructure Holdings and CFO of Alinta Ltd. For more information, see the CPA Australia website. Mr. Cahill recently represented the PAIB Committee at the September meeting of the IFAC Board, presenting Competent and Versatile: How Professional Accountants in Business Drive Sustainable Organizational Success to members of the Board. Mr. Cahill’s presentation is available online

     

    15. Competent and Versatile: How Professional Accountants in Business Drive Sustainable Success was published to support the global accountancy profession in responding to changing expectations of society, financial markets, and organizations, and promotes the value of professional accountants in business to their organizations. Since organizational needs are evolving faster than ever, professional accountants need to adapt to these changes to best serve their employers, and maintain relevance and public trust. With this publication, the PAIB Committee is striving to support the global accountancy profession and help its members guide their organizations to create sustainable value. A companion employer-focused brochure is also available. 

     

    16. Leveraging XBRL for Value in Organizations was jointly developed by IFAC and ISACA to provide accounting and assurance professionals with guidance to leverage value from XBRL (eXtensible Business Reporting Language) initiatives and compliance requirements. The benefits and opportunities of embedding XBRL within internal processes can enhance management communication, thus increasing the value of information used within an organization. Examples and case study material are included. Additional XBRL Resources are also available on the IFAC website. 

     

    17. IFAC Sustainability Framework 2.0 consolidates the important aspects of embedding sustainability into an organization and can be applied to entities of all sizes and complexities. This update focuses on the integration of sustainability factors from three perspectives—business strategy, operational, and reporting—and highlights the important roles that professional accountants play in facilitating the sustainable development of their organizations.

     

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