www.lexisnexis.ca Vol. 30, No. 9 August 2014
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Old metrics threaten to derail innovations

All businesses risk becoming irrelevant over time if they are so obsessed with the here and now they fail to recognize what’s on the horizon, says former Google CIO Douglas Merrill.

In his keynote address at CMA Shift 2014 in Toronto in June, Merrill, co-founder of Zestfinance.com, said too many companies kill off innovation which could be a successful future business venture because they are too focused on traditional metrics and processes.

"In 1990 there were 100 companies on the Fortune 100," said Merrill, author of Getting Organized in the Google Era: How to Get Stuff out of Your Head, Find It When You Need It, and Get It Done Right. "By 2010, only two or three were left (AT&T was under new ownership but was still in effect on the list)."

Among those who had been vaporized: Eastman Kodak, once one of the most innovative companies in the world with thousands of patents to its credit.

CGA Ontario vote clears way for final merger

Members of the Certified General Accountants of Ontario have given their association an overwhelming mandate to join the Chartered Professional Accountants of Ontario, clearing the final hurdle in Ontario’s quest for a fully unified accounting profession.

"The Ontario news is exciting," said Kevin Dancey, president and chief executive officer of CPA Canada in Toronto. "Selling a long-term vision is never easy but it is becoming a reality."

The support was nearly unanimous, with 97 per cent of CGA Ontario’s voting members agreeing to join their chartered accountant and certified management accountant colleagues, far exceeding the two-thirds threshold required under CGA Ontario bylaws. Just over half of the Association’s members — 54 per cent — participated in the vote.

Cox drops a bombshell in IFRS speech

"I’ve come to bury IFRS," Christopher Cox said in June, kicking off a keynote address to the 33rd SEC and Financial Reporting Institute — and a media firestorm.

The remark immediately went viral in the accounting world. After all, Cox, the former Securities and Exchange Commission chairman, was crucial in setting up a "road map" for converging international financial reporting standards with U.S. GAAP.

"But that was several years ago," said Cox, now a partner at law firm Bingham McCutchen and president of Bingham Consulting. "The fact is, far too much time has gone by with no meaningful progress. I think we have to fairly conclude that the moment has passed. Full-scale adoption of IFRS in the United States might once have been possible, but it is no longer. This is not a prognosis. It’s just a statement of fact."

Conditions good for Canuck edge: KPMG

 

Despite complaints from many prominent business organizations in recent years that Canada has fallen behind in terms of international competitiveness, the country sports several attractive ingredients necessary for businesses success including a favourable corporate tax environment, according to recently released KPMG reports.

In spite of that, though, businesses take into account multiple other factors when deciding where to locate or invest, some of which appear to be working against Canada on the international stage.

"We have here in Canada great conditions for attracting businesses and jobs. I think part of what’s incumbent on all of us is to get [that] story out there and get more larger organizations interested in Canada," said Elio Luongo, Canadian managing partner for tax at KPMG’s Toronto office.

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