The Purpose of a Corporation – just as it ever was

We looked here and here last year at America’s Business Roundtable’s Statement on the Purpose of a Corporation. The document specifically rejected the previous bedrock principle that corporations exist principally to serve their shareholders, committing to such matters as investing in employees, supporting communities, and delivering value for all stakeholders. With With 200 “who’s who”-level…

Hans got covid-related mail!

Thanks to my mask-wearing, socially isolated but still diligent mole at the IFRS Foundation, I’m pleased to present another selection of recent correspondence to and from the office of IASB Chair Hans Hoogervorst, this time on the burning topic of covid-19. Please read and marvel. Dear Mr. Hoogervorst. I currently live in an environment where…

Toward comprehensive corporate reporting, if not a better world

Five “leading sustainability and integrated reporting organizations” have issued Statement of Intent to Work Together Towards Comprehensive Corporate Reporting, a summary of alignment discussions. The five are CDP, the Climate Disclosure Standards Board, the Global Reporting Initiative, the International Integrated Reporting Council and the Sustainability Accounting Standards Board. Here’s an extract from the introduction Corporate…

Allocating the transaction price, or: if it weren’t the warrant…

Here’s the background to another issue recently discussed by Canada’s IFRS Discussion Group: Entities often issue securities that consist of a standalone equity instrument (e.g. share purchase warrant or a share) and a debt instrument (e.g. a note or debenture) that have been contractually linked as a unit solely for the purpose of offering them…

Retail investors and covid-19 – don’t panic until we tell you to!

OSC study explores retail investor responses to the COVID-19 pandemic, announces a recent news release. Here are some extracts: Investors have been confronted with unprecedented uncertainty during the COVID-19 pandemic. Understanding how the pandemic is affecting retail investor experiences and behaviours is key to protecting investors. The Ontario Securities Commission (OSC) today released a new study finding…

Adjusting variable consideration, or: damn those widgets!

Here’s an issue recently discussed by CPA Canada’s IFRS Discussion Group IFRS 15 Revenue from Contracts with Customers requires an entity to estimate variable consideration when determining the transaction price. The estimated variable consideration should only be included in the transaction price to the extent that it is highly probable that there will not be…

Digital reporting – can you explain the benefits to me again?

It’s been a while since we returned in this space to the issue of digital financial reporting… …so let’s do so now via the recent report The Future of Financial Reporting – What Size Do You Want? by Professor Peter Wells and Chartered Accountants Australia and New Zealand. Here’s the executive summary: With major economies…

covid-19 – our outlook isn’t what it was…

There’s no shortage of available commentary on going concern implications of covid-19… …whether from preparer or auditor perspectives. In some cases, the pandemic will have exacerbated pre-existing conditions; in others, a previously sound business model and cash flow situation may have been decimated. Poor Cineplex Inc. provides a prime Canadian example of changing fortunes. Its…