Recent Trends in Financial Reporting
Implications for Governance and Risk Management
Wednesday, May 27th, 2009
Organized by CIRANO
2020 University, 25th floor
In collaboration with the Lawrence Bloomberg Chair in Accountancy
John Molson School of Business, Concordia University
To register
Participants
Michel Magnan, Fellow, CIRANO
Professor and Lawrence Bloomberg Chair in Accountancy
John Molson School of Business, Concordia University
Daniel B. Thornton, Ph.D., FCA
Professor and Chartered Accountants Professor
School of Business, Queen’s University
Professional Accounting Fellow, Securities and Exchange Commission (2000-2001)
Trevor S. Harris, Ph.D., CA (S.A.)
Professor and co-Director of the Center for Excellence in Accounting and Security Analysis
Columbia Business School, Columbia University
Managing Director and Vice-Chair, Morgan Stanley (2000-2008)
David McAusland, BCL, LLB
Corporate Director
Executive Vice-President for Corporate Development at Alcan Aluminium (2000-2007)
Sylvie Léger, CA
Partner, National Office, KPMG
Program
14 :00 – 14 :05
Welcoming remarks
Bryan Campbell, Concordia University and CIRANO
14 :05 – 14 :15
Presentation of workshop program
Michel Magnan, Lawrence Bloomberg Chair, Fellow CIRANO
14 :15 – 15:45
Recent Trends in Financial Reporting
A Regulatory Perspective
Daniel B. Thornton
School of Business, Queen’s University
A Trader’s Perspective
Trevor S. Harris
Columbia Business School, Columbia University
An Accountant’s Perspective
Sylvie Léger
Partner, National Office, KPMG
A Corporate Perspective
David McAusland
Corporate Director
15:45 – 16:00
Coffee Break
16:00 – 17:15
Round Table Discussion
Michel Magnan (moderator)
Daniel B. Thornton
Trevor S. Harris
Sylvie Léger
David McAusland
17 :15
Cocktails
Recent Trends in Financial Reporting: Implications for Governance and Risk Management
Summary
The advent of International Financial Reporting Standards (IFRS) and of Fair Value Accounting
(FVA) has modified corporate financial reporting in some fundamental ways. First, moving away
from an historical perspective that emphasized conservatism and reliability, financial statements
now integrate numerous assessments, assumptions and projections about the future. Second, the
measurement of many financial statement accounts is converging toward market values, which
raises concerns about their volatility, predictability and usefulness for stakeholders beyond
shareholders.
In the context of the global financial crisis, the purpose of this workshop is to discuss the
governance and risk management implications from these trends as both boards of directors and
regulators grapple with the effectiveness of corporate risk management policies, executive
compensation practices and the properties of reported earnings as a measure of a firm’s value,
risk profile and prospects. In other words, is the traditional view of accounting as being
backward-looking still appropriate? Which information underlying financial statements would be
useful to directors in their oversight of a firm’s risk management policies? In their assessment of
a firm’s risk profile? In the determination of executive compensation? What are the implications
of recognizing gains or losses in financial statements that are not based upon a firm’s actual
transactions? How can auditors help boards of directors in that regard? These are some of the
questions to be debated at the workshop.