|
|
|
|
 |
|
Home |  |
Contacts | |
Editorial | |
Advertising | |
Subscribe | |
Archives | |
Search | |
CMA Canada | |
|
|
|
|
Departments
Table of Contents
Printer Friendly
New and noteworthy information you can use CMA Canada announces launch of new global knowledge resource for accountants in business CMA Canada has played a pioneering role with accountancy organizations worldwide and the International Federation of Accountants (IFAC) to develop a global electronic knowledge resource for management accountants. This new global resource, IFACnet.com — a KnowledgeNet for Accountants in Business, will provide one-stop access to leading-edge articles, good practice guidance, and tools and techniques for accountants employed in commerce, industry, the public sector, education, and the not-for-profit sector. “Our goal is to ensure that our members have access to the most up-to-date information possible to help them perform competently and compete effectively in the complex global environment in which professional accountants operate,” says Steve Vieweg, MBA, CMA, FCMA, president and CEO of CMA Canada. Users of IFACnet.com will find high quality, relevant information on a wide range of financial and management accounting topics, including strategy, management, budgeting and planning, corporate governance, risk management, and professional development. All information has been provided by professional accountancy bodies from around the world, particularly those that focus specifically on serving the needs of business and management accountants. Like other search engines, IFACnet.com scans websites for key terms and phrases and delivers the results in order of relevance. Unlike other general search engines, IFACnet.com focuses specifically on websites that provide information developed for professional accountants in business, and its search function delivers the most relevant information possible based on an indexing of documents from the website of more than a dozen IFAC member bodies. There is no charge to use IFACnet.com, although certain search results may identify documents or publications available for purchase. IFACnet.com can be accessed through the CMA Canada website at www.cma-canada.org. CMA Management articles garner Award of Merit Two articles originally published in CMA Management have been chosen to appear in a collection of award-winning international articles on topics such as performance measurement, sustainability and corporate social responsibility, and the changing roles of accounting and finance professionals. The Professional Accountants in Business (PAIB) Committee of the International Federation of Accountants (IFAC) has released its 2006 Articles of Merit. This collection includes 10 previously published articles that were selected by the PAIB Committee as part of its annual Articles of Merit Award Program for Distinguished Contribution to Management Accounting. “Managing and Reporting Sustainability,” by David Crawford, CMA, and “The Balanced Scorecard and Corporate Social Responsibility: aligning values for profit,” by David Crawford, CMA, and Todd Scaletta, CMA, were the articles selected for inclusion in this year’s publication from among the submissions by CMA Management. The winning article for 2006 is “Performance Measures in Supply Chains” by Kim Langfield-Smith and David Smith, which was first published in CPA Australia’s Australian Accounting Review. The article examines the benefits and challenges of supply chain management. Other articles of outstanding merit were first published in the American Institute of Certified Public Accountants’ Journal of Accountancy; the Chartered Institute of Management Accountants’ (UK) Financial Management; CPA Australia’s Australian Accounting Review; the Institute of Chartered Accountants in England and Wales’ Performance Measurement, Finance & Management Special Report; and the Institute of Management Accountants’ (US) Strategic Finance. The 2006 Articles of Merit, together with past issues, may be downloaded free-of-charge from the IFAC online bookstore at www.ifac.org/store. Forum for small and medium entities identifies key market challenges Earlier this year, more than 130 people from 35 countries attended the International Federation of Accountants’ (IFAC’s) first global forum focused entirely on small- and medium-sized enterprises (SMEs) and small and medium accounting practices (SMPs). Co-hosted by the Hong Kong Institute of Certified Public Accountants and the Confederation of Asian and Pacific Accountants, the forum provided an opportunity for national and regional accountancy organizations, representatives of SMEs and SMPs, and international standard setters, among others, to discuss the challenges and opportunities facing SMEs and SMPs and programs and initiatives that could best support them. Participants identified two significant challenges SMEs and SMPs face: SMEs need financial reporting standards that are appropriate for their users’ needs and reduce the associated cost of compliance; and, in an increasingly globalized economy, SMPs should continue to explore new ways to support the growth and accountability of SMEs. “Small- and medium-sized enterprises drive economic growth, foster innovation and provide employment in developed and developing countries around the world. IFAC fully recognizes this role and is committed to supporting them at an international level,” emphasizes IFAC president Graham Ward. IFAC SMP committee chair Sylvie Voghel, who also chaired the forum, outlined IFAC’s approach to supporting SMPs. “The SMP committee is taking a two-pronged approach to helping SMEs and SMPs converge and comply with international auditing and accounting standards. On the one hand, we are helping to shape the form and content of those standards and on the other, we are dedicated to providing practical assistance to SMPs and SMEs that have to use them.” Current projects include publishing an International Standards on Auditing Guide for SMEs and developing a web-based knowledge resource for SMPs. Additionally, IFAC regularly responds to exposure drafts of international standard setters where an SMP or SME focus is needed. For more information about IFAC initiatives, visit www.ifac.org. All presentations made at the SMP Forum are also available from the IFAC website through the SMP Committee home page. Corporate reputation takes years to recover: study Executives around the world believe it takes companies slightly more than three years (3.2 years) to recover from a crisis that damages their reputation, according to market research by Burson-Marsteller. The research, which is based on the opinions of 685 business “influentials” — CEOs, senior executives, financial analysts, business media and government officials in 65 countries — also shows that quickly disclosing the details of a scandal or corporate misstep should be management’s top priority as it begins the process of restoring corporate reputation. Every two years, Burson-Marsteller conducts market research to identify the drivers of CEO and corporate reputation. The latest research conducted by the firm took a closer look at the crisis management strategies that a company should use to protect, manage and build its reputation. According to the market research, the top ten crisis management turnaround strategies are:
“A crisis can have a devastating impact on a company’s reputation in terms of its profitability, credibility, competitive position, and ability to retain and attract top performers,” said Deborah Bowker, chair of Burson-Marsteller’s U.S. corporate/financial practice. “However, companies can lessen their recovery time and be welcomed back into the fold, with their reputation restored, if they follow a few well-executed and integrated turnaround strategies.” Equally important to crisis management and corporate reputation is integrating communications strategies. Having the right message, delivered by the right messengers, to the right audiences and via a mix of old and new channels is critical to a speedy recovery, according to Burson-Marsteller. “Not only does this ensure superior execution, but it also enables companies to measure their progress on a regular basis which was also cited as a top turnaround strategy by 14% of respondents,” said Bowker. One of the more surprising findings of the market research conducted by the firm is that only 5% of senior executives believe that updating their website can be an effective tool in their crisis management and corporate reputation turnaround strategy. “Companies struggling with reputation issues can use their websites and other interactive tools to quickly and accurately deliver important messages on how they are responding to a crisis and what they are doing to fix the damage,” said Andy Nibley, global head of the firm’s interactive capability. “Web-based communications give senior leaders the most immediate channel for delivering messages of vital importance to key internal and external audiences. When dealing with a crisis that impacts a company’s reputation, speed is everything.” For more information visit www.burson-marsteller.com. IFAC strengthens international code of ethics An important objective of the International Ethics Standards Board for Accountants (IESBA), an independent standard-setting board within the International Federation of Accountants (IFAC), is to provide auditors with clear guidance on matters of independence. In keeping with this commitment, the IESBA has revised the Code of Ethics for Professional Accountants by updating the definition of a network firm. Network firms are required to be independent of an audit client of another firm within the network. “The revised definition focuses on how networks operate and how they present themselves to third parties,” states Richard George, IESBA Chair. “The public has a right to expect that when firms are part of a network the independence requirements apply to the other firms within the network. This revision provides clear guidance for firms and contains additional information on the application of the definition.” The revised definition is consistent with the definition in the European Union’s Eighth Company Law Directive. It would classify firms as network firms if the firms belong to a larger structure that is aimed at cooperation and is clearly aimed at profit or cost sharing, or shares common ownership, control or management, common quality control policies and procedures, common business strategy, the use of a common brand-name or a significant part of professional resources. The revised definition is effective for assurance reports dated on or after December 31, 2008. The Code of Ethics for Professional Accountants and the revision can be downloaded free-of-charge from the IFAC online bookstore at www.ifac.org/store/Category.tmpl?Category=Ethics. Investment managers bullish about future The investment management sector will confront enormous challenges in investment performance, distribution and the recruitment and retention of talent over the next few years. But, despite these demands, investment managers remain bullish about their future revenue growth, according to PricewaterhouseCoopers’ (PwC) 2006 Global Investment Management Survey. In a survey of 81 investment management organizations around the world, representing aggregate assets under management of $9 trillion, more than half of respondents believe their revenues will grow by 20% or more over three years. Raj Kothari, PwC partner and leader of the Canadian investment management practice said: “Our survey shows that chief executives are optimistic about revenue growth. However, the survey also highlights concerns and challenges related to evolving investor demands, retention and hiring of good talent and the effectiveness of the internal control environment particularly as it relates to operation controls.” Kothari also cited additional concerns and challenges that included:
“Investment performance has always been crucial but now it is being evaluated with greater sophistication than ever by institutional clients. Asset management companies are concentrating on developing sources of alpha that complement their existing strengths and are actively managing investment and research capacity,” said Kothari. When asked what they will do to improve performance over three years, survey respondents commonly mentioned recruiting and retaining the best employees, but 21% cited recruiting, retaining and providing incentives to talent as one of the biggest challenges they faced. The rise of specialist investment products, such as hedge funds, private equity and real estate and the increasing trend towards the use of derivatives, will also bring further demands for new skills and more sophisticated risk management. Surprisingly, 91% of survey respondents thought that they did not have appropriate internal controls in place to adequately manage risk and 89% had not completed a comprehensive assessment of risk. Across the board, survey respondents recognized the importance of distribution but many highlighted a lack of confidence in their distribution strategies. With the distribution power of the Internet growing and existing distributors consolidating, asset management companies are coming under increasing pressure to develop new distribution strategies in retail and institutional markets alike. For the retail market, brand and quality of distribution are critical to winning business but these are two areas in which many investment management companies believe that they are weak. Firms will need to concentrate on their most valuable distribution relationships and service these well. For a copy of PricewaterhouseCoopers 2006 Global Investment Management Survey: Shaping the future, visit www.pwc.com. Canadian VCs stay close to home Canadian venture capitalists continue to stick close to home, with more than half (58%) of Canadian respondents to Deloitte’s 2006 Global Venture Capital Survey citing they have no plans to expand investments outside the country over the next five years, compared to 47% of U.S.-based VCs and 44% of investors overall globally. ‘Adequate deal flow in existing markets’ was cited by Canadian VCs as the primary reason for not pursuing global investments (33%), followed by ‘contractual’ and ‘legal restrictions’ (22% each). The Canadian component of the global survey, conducted jointly by Deloitte and the CVCA — Canada’s Venture Capital & Private Equity Association — measured attitudes, intentions and investment focus of more than 500 venture capitalists worldwide. “Canadian VCs appear to take a more focused approach to investment compared to their global peers. The combination of a Canadian focus and the strong rally of the local economy over the past few years has fuelled the VCs’ domestic focus, Canadian VCs and private equity groups have chosen to focus on North America and have not developed their expertise in emerging markets,” says Mike Badham, partner, Deloitte. “As the VC industry around the world continues to move towards global investing networks, Canadian VCs should start re-evaluating their strategies to capitalize on international opportunities. As Canadian technology and manufacturing companies become more global, they will look to their VC and private equity sponsor to become more global as well.” On the other end of the spectrum, of those Canadian VCs who do plan to expand investments beyond the border, the U.S. (27%), followed by China (23%) and the U.K. (20%), were cited as the top three investment destinations. ‘Higher quality of deal flow’ and ‘access to quality entrepreneurs’ were quoted by two-thirds (67% each) of respondents as the primary reasons for investing in the United States. For Canadian VCs pursuing investments in China, ‘emergence of entrepreneurial environment in non-traditional locations’ (100%), ‘access to foreign markets’ (50%) and ‘higher quality of deal flow’ (33%) were cited as the key investment drivers. Currently, nearly half (48%) of Canadian respondents invest in Canadian companies with key operations outside the country. In particular, the U.S. houses key operations of their portfolio companies, including R&D (53%), engineering (44%) and manufacturing (42%) operations. Following the U.S. are India (18% R&D, 25% manufacturing) and China (22% engineering). High tech Lifebook slims down Fujitsu Canada, Inc. recently announced the availability of the LifeBook Q2010 notebook, the slimmest and lightest 12.1 inch notebook on the market. At 2.2 pounds and only 3/4 of an inch thick, this notebook unites computing power with elegant mobility. “Form factor is an important consideration in notebook selection for executives on the go,” says Paul Moore, senior director of mobile product marketing for Fujitsu Computer Systems Corporation. “With its eye-catching slim silhouette and striking design, the LifeBook Q2010 notebook delivers the perfect balance of elegance and function.” The LifeBook Q2010 notebook, capable of running Windows Vista, is powered by the Intel Core Solo ULV processor. A wide range of connectivity options are available, including Intel PRO/Wireless 3945ABG Network Connection (Tri-Mode 802.11a/b/g) with VoIP capabilities. There is also an option for integrating Bluetooth v2.0 for data synchronization with different devices. The LifeBook Q2010 notebook also includes a variety of security features, including Trusted Platform Module (TPM) 1.2 and a built-in biometric fingerprint sensor. The standard configuration includes a three-cell battery. Mobile professionals requiring longer battery life can select the higher end configuration, which includes the standard three-cell battery and a second six-cell battery offering an additional seven hours of operation. For more information visit www.fujitsu.ca. For more information visit www.deloitte.com. New Software |
