|
TORONTO, December 1, 2008 – The Chartered Accountants of Canada are offering guidance to help companies better disclose the business impacts of climate change to investors. The Canadian Institute of Chartered Accountants (CICA) has published a new document in response to a growing demand for guidance relating to Management Discussion and Analysis (MD&A) disclosures. The publication, Building a Better MD&A – Climate Change Disclosures, helps companies provide useful and relevant information to investors. “There must be transparency and credibility with climate change matters,” said Dave Pollard, Vice-President, Knowledge Development, with the CICA. “In developing the new publication, we obtained input from institutional investors along with MD&A preparers and others about the types of disclosures that would be most appropriate. The document would be of great benefit for any company struggling with the financial reporting aspects of climate change.” The publication is in part an update to a discussion paper issued by the CICA in 2005. The MD&A is a filing required by securities regulators that accompanies quarterly and annual financial statements. A well-presented MD&A provides the context investors need to better understand the company’s performance and prospects as well as its financial statements. There are two aspects of climate change for companies to address. First is adaptation or what action is being taken to respond to the anticipated effects of climate change on company operations, such as extreme weather conditions. Second is mitigation or what is being done to reduce the company’s own greenhouse gas emissions that contribute to climate change.
“Climate change issues will impact some industries and companies more than others,” said Julie Desjardins, the publication’s co-author. “However, sooner or later climate change will affect, either directly or indirectly, the business operations and financial performance of many Canadian operations both large and small.” Desjardins added: “Investors are seeking disclosures of relevant information that would influence their investment decisions. MD&A disclosures should allow investors to understand how management views the current and potential impacts of climate change and related regulations on the company.” The publication, developed by the CICA’s Canadian Performance Reporting Board, can be found in the climate change section of the Institute’s website (www.cica.ca/climate). The Board focuses on guidance about the measurement and reporting of organizational performance outside of financial statements. The Canadian Institute of Chartered Accountants (CICA), together with the provincial, territorial and Bermuda Institutes/Ordre of Chartered Accountants, represents a membership of approximately 74,000 CAs and 10,000 students in Canada and Bermuda. The CICA conducts research into current business issues and supports the setting of accounting, auditing and assurance standards for business, not-for-profit organizations and government. It issues guidance on control and governance, publishes professional literature, develops continuing education programs and represents the CA profession nationally and internationally. CICA is a founding member of the International Federation of Accountants (IFAC) and the Global Accounting Alliance (GAA). – 30 – For more information or to arrange an interview, contact:
Tobin Lambie, Manager, Media
CICA
(416) 204-3228
tobin.lambie@cica.ca
|
