Accounting for the Future
Simplicity is the ultimate sophistication. Anne-Marie Henson transforms intricate concepts into digestible insights, helping financial leaders navigate with clarity and confidence.
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The importance of standard setting - Part 1
01/09/2025
The importance of standard setting - Part 1
Host Anne-Marie Henson is joined by Armand Capisciolto, chair of Canada's Accounting Standards Board, BDO alumni, and former host of the Accounting for the Future podcast. They discuss the importance of accounting standards, the process of setting them, and Canada's influence on international standards. The episode also highlights how standards improve financial information and the role of stakeholders in the process. For more on accounting standard setting, subscribe to Armand’s LinkedIn newsletter: This episode is part 1 of 2. What you’ll hear in this episode: [2:29] The importance of standard setting and what it means. [5:17] The process of developing a new standard or making an amendment to a standard. [10:37] The importance of engagement from Canadian stakeholders in the global standard-setting process. [13:39] The unique position of Canada in dealing with diverse industries and regulations. [15:18] How can individuals, companies, and firms get more involved in the standard-setting process? Mentioned: Quotes: "Our focus is very much on the financial statement user. So, when we talked about a new standard, when we talked about an amended standard, will the new standard, will the amendment provide better information to an investor, to a creditor, to a funder who's making a decision on where to put their money?" "The accounting standards are applied by accountants, they're audited by accountants, but they're not really for accountants. The accounting standards are for the users of the financial information. They're for the public who's using financial statements to make decisions." "When the IASB comes here and we arrange for them to meet with the interested and affected parties in Canada, whether it's investors, whether it's the Canadian Bankers Association, whether it's just preparers and the auditors in the various industries that are prevalent in Canada, they get such great constructive feedback." “I also think one of the reasons why we do a good job of influence from a Canadian standpoint is I always see Canada as kind of a microcosm of the globe, of the world.” "So my biggest thing, get involved. It doesn't matter what size company you work for. Yeah, we understand that there's resource constraints. Everybody has resource constraints. But if you want quality standards, we need to hear from you."
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Cybersecurity on the rise
10/31/2024
Cybersecurity on the rise
In this episode, host Anne-Marie Henson explores the growing realm of cybersecurity threats with guest Sacha Blasiak-Priestley, BDO's National Leader of Cloud Security. They discuss some of the biggest cybersecurity breaches this year, including Christies, London Drugs, and AT&T. The conversation uncovers the lasting operational and reputational impacts of cyber attacks, AI's intricate role in cybersecurity, and the importance of having a robust, frequently tested incident response plan. What you’ll hear in this episode: [1:27] The trends of emerging cybersecurity threats. [3:07] The types of threats and common vulnerabilities businesses overlook. [9:07] The long-term consequences of cyber attacks. [11:10] How accurately do portrayals in media reflect real-life cyber attacks? [13:09] New technologies that help mitigate cybersecurity risks. [14:38] What companies can do to proactively prepare for sophisticated cyber threats. [18:37] Recommendations on testing and revisiting your company’s plans. [20:20] The future of cybersecurity. Mentioned: Quotes: "Sometimes it can take companies up to years to actually recover all of those systems. So they might have those core systems that are up, but it could take years to get the supporting systems adjusted and fixed to be operational again." "A lot of organizations think, I don't have data that's worth stealing, no one would come after me, I'm not even a large organization. But the truth is that a lot of these attacks are really opportunistic." "We're seeing a lot of frauds that are perpetrated by asking, Hey, I'm your regular supplier, but I need you to change my banking account information or wire me this money somewhere else." "On the defense side, we're using AI to help us quickly detect patterns to identify perhaps misconfigurations or some suspicious behavior.’ "Organizations can help protect around the sophisticated attacks by making sure that they have controls all along the different ways."
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Enhancing productivity: Data-driven solutions for audits
08/29/2024
Enhancing productivity: Data-driven solutions for audits
Learn how technology, particularly AI and data-driven solutions, is revolutionizing the audit profession, leading to enhanced productivity. Host Anne-Marie Henson is joined by Paul Vetrone, Innovation and Change Director at BDO Canada, and Youssef Hounat, VP of Product at DataSnipper. Together they discuss the integration of innovative technologies in auditing, emphasizing the shift towards more efficient and higher-quality audits. What you’ll hear in this episode: [1:42] An introduction to DataSnipper as an intelligent audit platform. [3:20] What do audit firms look for when it comes to audit technology? [6:56] What a data-driven audit looks like. [9:20] What is BDO Harmony and what does it do? [12:00] The evolution of AI and its impact on some industries. [15:46] AI in the audit process. [23:22] The future of audit technology and data-driven tools. Mentioned: Quotes: "When we're talking about a data-driven audit approach, we're really looking at the entire population, the entire data set, and being able to see trends and anomalies within that data to really identify what are those true outliers within that information." "People want to make sure that their teams are actually working on value-added activities, and that's really why they come to DataSnipper, to take away the manual and repetitive work so that their teams can focus on what matters." “Since the launch of ChatGPT in September 2022, there's been so many exciting new products, whether it be bookkeeping assistance that can completely do a reconciliation with absolutely no input from a human, all the way through to transaction risk scoring.” “in terms of what we're seeing in the audit industry right now, I think AI is really kind of on the fringes. I think a lot of firms are really trying to figure out how to best utilize it at this point” “What I can expect to see is much more integration with tools such as APT or with BDO Harmony to make sure that it's more of a seamless experience as people are working”
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What should business leaders expect from their auditors? LIVE in Oakville
07/18/2024
What should business leaders expect from their auditors? LIVE in Oakville
Auditors can provide value beyond the numbers through practical solutions and advice on governance and regulatory changes. In a special live episode, guest host Mary Mathews is joined by Anthony Marinelli, Assurance-East Leader and Chair of BDO Canada’s Board, in a discussion on how the role and expectations of auditors have evolved and how business leaders should select auditors. They also discuss the impact of ESG and how technology and AI are transforming audit practices. What you’ll hear in this episode: [1:56] How audit has evolved over the years. [5:35] What business leaders should look for when selecting an auditor. [9:17] Building a strong auditor-client relationship. [13:35] What business leaders should expect from their auditors with respect to ESG. [16:08] People and talent in auditing. [18:18] Ensuring technical excellence. [21:00] What does an auditor do to adapt to the challenges and opportunities in today’s business environment? [23:01] The role of innovation and technology in transforming auditing practices. [25:15] Providing value beyond numbers. Mentioned: Quotes: “…what is the company buying? It's the experience. It's an audit experience, and it's not only from the day the audit starts to the day the audit ends. It's also the post-audit experience from the day the audit ends to the day the next audit starts.” “..our stakeholders are becoming more sophisticated. I just think about a lot of the users of our financial statements, whether it's the bankers, whether it's private equity firms, whether it's second generation now that are involved in the business that expect more out of a financial statement, so absolutely the landscape has changed.” “The pace of change now may be quicker than it ever was, but it's slower than it will be in the future." "Happy people lead to happy clients. It starts with the happy people, and then it's infectious." "AI tools are great and help us become more efficient, but they'll never replace the human auditor." “I think it starts with the numbers though. I think we have to make sure the numbers are right, and if the numbers are wrong, it really doesn't matter what happens after.”
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AI governance: Navigating innovation in the boardroom
06/13/2024
AI governance: Navigating innovation in the boardroom
AI holds immense transformative potential for revenue optimization. Yet, governance, ethical considerations, and continuous monitoring cannot be undermined for responsible and effective AI implementation. Guest Achille Ettorre, Advisory Board Member at Queen's University, TedX presenter, and Faculty Member and Executive Consultant at the International Institute for Analytics, joins our conversation on the importance of AI governance, its impact, and ways to mitigate bias. What you’ll hear in this episode: [2:01] Defining Generative AI and big data. [3:49] The impact of AI on business processes. [6:59] AI’s impact on revenue, risks, and opportunities. [10:00] The balance between speed and governance. [12:45] How audit committee members or directors can improve their AI readiness. [15:44] The impact of governance on AI. [22:52] Mitigating AI bias. [26:00] Guest speaker’s reflections on the future. Mentioned: Quotes: "…a larger organization has so much more inputs, data inputs that they really have to have a governance program to ensure that all the throughputs are done in such a way that it's systemic, methodical, and correct every time.” “..it's interesting from a revenue perspective, I truly believe that using these tools or these models can increase the revenue for any organization that understands the processes involved and the people that are actually working these models.” “..for board members specifically, spending some time on whether it's informal education or some formal training on understanding what AI can actually do within their organization, or quite frankly entire industry would definitely bode well.” “…you need to understand where you sit in the maturity model within your organization on how you use data and how you use analytics and how you implement AI.” “If I were to say within the audit industry… I would suggest that a lot of the routine tasks would be automated so that there's oversight and a review versus actually compiling the data that will be automated.” “I definitely think AI can help out in augmenting or setting up the framework, but I do think that should resonate within the leaders of the organization.”
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Strengthening your foundations: Internal controls for public companies
05/09/2024
Strengthening your foundations: Internal controls for public companies
Having robust internal controls is necessary for accurate financial reporting. In this episode, host Anne-Marie Henson is joined by Michael Crolla, Partner and National Capital Markets & Public Company Services Leader, and John Asher, Partner and Risk Advisory Services Leader in Western Canada. Drawing from their experience, they discuss the current Canadian regulatory landscape for public companies, how strong governance affects audits, and the role that strong internal control environments play in financial reporting. Explore the challenges companies face when establishing internal controls, best practices for building an audit committee, and special governance considerations for companies planning to list. Plus, discover key insights for optimizing internal controls in an evolving business landscape. What you’ll hear in this episode: [01:30] An overview of the Canadian regulatory landscape for public companies. [03:56] The importance of establishing and maintaining strong internal control environments. [06:11] How a strong control environment affects the audit process. [10:11] Challenges companies face when trying to develop internal controls. [15:06] Top qualities an audit committee should have to maintain strong governance. [22:47] Advice for companies that want to improve their control environment as they prepare to list. [23:34] Strategies for optimizing internal controls. Mentioned: Quotes: “The regulatory landscape for public companies is really multifaceted and involves several levels of oversight to really ensure the integrity of financial reporting and the internal controls that feed into financial reporting.” “Having robust internal controls ensures accuracy and reliability of financial reporting.” “Some of our clients are very busy with acquisitions, and so anytime you have an acquisition, you're bolting on another set of controls, you're bolting on another set of information systems.” “If you do have that tone at the top, that leadership buy-in, it can really result in a very strong internal control program that really will help mitigate any risks and there's actually more benefits than pain points.” “The world continues to evolve and change, and there's different risks that we're talking about on this right now that could affect the business as you look into the future.” “Focus on some of those key issues or key areas that may have a little bit more risk. Try to mitigate that first, see how it's working, and then obviously keep implementing as you go along and adjusting as you go along.” “Avoid control creep…meaning avoiding adding more controls for the sake of having controls.” “We talked about tone at the top, but it's really important that there's strong commitment from leadership to ensure that staff are knowledgeable and that they're aware of regulations.”
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Navigating the Complexities of Fraud Prevention
03/20/2024
Navigating the Complexities of Fraud Prevention
Navigating the complexities of fraud prevention and detection in your organization is critical. In this episode, host Anne-Marie Henson is joined by Alan Mak, Partner and National Leader of BDO’s Forensic Disputes & Investigations, and Mary Mathews, Partner in BDO’s Accounting Advisory Group. Drawing from their expertise, they delve into the pervasive issue of fraud in today's financial landscape, discussing current trends, examples of fraudulent activities ranging from small-scale employee expense frauds to larger procurement frauds, and the psychological and societal implications of fraudulent behaviour. Discover key insights into the indicators of fraud in financial statements, the role of auditors in detecting fraud, and practical strategies for implementing effective controls to mitigate fraud risks. What you’ll hear in this episode: [1:35] An update on the latest fraud trends and status. [2:11] Explanation of the fraud triangle. [4:15] Examples of fraudulent activities. [5:57] Examination of types of fraud and occurrences across different company sizes. [8:25] The psychological aspects of fraud. [13:17] Indicators of fraud in financial statements and the role of auditors in detecting fraud. [17:10] Strategies for reducing the risk of fraud. [23:15] Reflection on the societal perception of fraud and the need for robust consequences for perpetrators. Mentioned: Quotes: "Fraud is one of those things that is very personal, even when it's a big company. And the reason why is because fraud inherently involves trust." "As auditors, we have to meet high professional standards, a financial statement audit doesn't actually serve as a guarantee against any fraud or detecting fraud." "It starts with good governance in place... putting in checks and balances to reduce those opportunities and the risks of fraud where opportunities might exist." "We look at the world through one of several ways in terms of risk assessments for fraud, and a common framework that we use is something called the fraud triangle." "Perform reconciliations with the right level of detail and attention... doing it thoroughly, properly, reviewing budgets to see how performance is going." "The fraud triangle lists three elements that are necessary in order for frauds to exist or to occur. They are opportunity, rationalization, and motivation."
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Bill S-211 – Forced Labour in Canadian Supply Chains
02/22/2024
Bill S-211 – Forced Labour in Canadian Supply Chains
How can Canadian companies prepare to comply to Bill S-211? In this episode, host Anne-Marie Henson is joined by Pierre Taillefer, Partner and National Sustainability and ESG Leader at BDO Canada, in a discussion on the evolving landscape of ESG reporting and compliance. He sheds light on regulatory requirements in Canada, specifically, Bill S-211, highlighting the importance of understanding and addressing compliance obligations regarding supply chain management and the mitigation of child labour and forced labour risks. The episode offers valuable insights into the challenges faced by organizations and provides practical strategies for navigating the complexities of reporting obligations. What you’ll hear in this episode: [1:55] ESG regulatory and reporting landscape update. [7:35] Introduction to Bill S-211. [10:50] Compliance and reporting obligations. [15:38] Impacted industries [21:40] The role of Governance (the G) in reporting obligations. [23:30] Challenges and response strategies. [26:26] The future of ESG reporting. Mentioned: Quotes: “We're seeing a lot of activity over the last couple of months on Bill S-211, which is Canada's Anti-Slavery Act.” "Demonstrating that you've done something and that you have a plan for improvement is crucial, and it allows you over time to implement a more robust process around managing that risk in your supply chain." "We're not trying to boil the ocean. The idea here is not perfection, it is to demonstrate that you have done your work. An organization that needs to comply has done work to evaluate its supply chain and has a plan, a plan for improvement." "The objective is that Canada's supply chain adequately manages the risk of child labour and forced labour within its supply chain." "It's not only “what is the financial result you achieved,” but how did you achieve it, and that trend is not going to go away."
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AI in the Finance Function
01/18/2024
AI in the Finance Function
From enhancing audits to streamlining processes and predicting financial outcomes, AI is here to empower the finance function. In this episode, host is joined by , a Partner and key leader in BDO’s Innovation & Change team and Senior Leadership Team, to discuss the impact of artificial intelligence (AI) on the accounting and finance function. Together, they explore how AI, including generative AI, can benefit financial statement auditors. The episode also touches on the potential applications of AI for CFOs, discussing its role in pattern recognition, prediction, and transparency. Addressing governance, the episode emphasizes the importance of data quality, security, transparency, and addressing potential biases in AI algorithms. What you’ll hear in this episode: [2:30] Understanding artificial intelligence (AI) vs. generative AI and the difference between the two. [6:00] AI in financial statement and auditing. [11:27] AI's impact on the finance function and CFOs. [18:30] Governance considerations for AI adoption. [26:30] AI and the society: The importance of education and embracing AI. [27:35] Optimism about the positive impact of AI and democratization of knowledge. Mentioned: Quotes: "I think a lot of us understand that in some way, AI and how businesses will be using it in the future, is completely accepted." "AI is not going to replace people's jobs; it's going to replace the jobs of those that don't embrace it." " When you're looking for different patterns, instead of a human sorting through different files, no matter how fast they are, there's only so much that you go through. Now, we can actually leverage AI to drive through much more data and still pick up on the trends." "The more AI gets out there, the better the models get, and the more they get fed, the more they learn.” “I think we're going to see a level and a layer of regulation that will likely create some opportunity and some challenges from a finance function of just understanding what's there." "The more AI starts to enable an organization, the more important understanding how biased your data and your algorithms are because you're going to be asked for that"
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Leading the Finance Function of the Future
01/04/2024
Leading the Finance Function of the Future
Despite the effects of the great resignation, there is still appears to be a scarcity of financial talent. In our latest episode, host , Partner, Eastern Canada & SMB Leader for Markets & Industry Canada, and , National Leader for CFO Services at BDO Canada, explore the challenges of hiring and retaining financial talent and the evolving role of CFOs, emphasizing their transformation into Chief Value Officers (CVOs) with a focus on purpose and value. The episode underscores the importance of CFOs cultivating "value acumen" and a growth mindset through continuous learning. Additionally, it addresses leadership styles, diversity and inclusion, and the CFO's pivotal role in leveraging data analytics and technology to drive organizational value. What you’ll hear in this episode: [1:42] The great resignation impact; is it still happening? [5:33] Exploration of the evolving responsibilities of CFOs and the concept of becoming Chief Value Officers (CVOs). [10:38] Defining value and the CFO's role in driving value. [11:33] Skills CFOs should develop to navigate the changing landscape. [16:12] Evolving leadership styles for CFOs, with an emphasis on “extreme ownership” and the shift towards a more sustainable, inclusive approach. [19:51] The importance of diversity, equity, and inclusion in building effective finance teams. [22:59] Data ownership and technology. [26:17] Advice for CFOs and controllers. Mentioned: Quotes: “As we continue to manage so much uncertainty about the future, we have to be adaptive so we can't be afraid to be wrong.” "There are definitely more and more finance teams that are much leaner these days." "If you talk about what does value mean, it is very widely held that there is no one definition of value for all CFOs in all organizations." "CFOs need to manage legitimate short-term performance pressures and, at the same time, drive long-term behaviors." "As a key player on the executive team, it's that play to win attitude. You have to know that you're not afraid to fail, that whatever you undertake, you either win or you learn along the way." "Be not afraid of going slowly. Be afraid of only standing still."
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What is Audit Quality?
12/07/2023
What is Audit Quality?
Audit quality is a key issue for the interest and governance process of both auditors and companies. In today’s episode, host Anne-Marie Henson, Partner, Eastern Canada & SMB Leader at BDO, welcomes BDO’s Head of Global Audit Quality, Nazia Lakhani for a look at the importance of quality assurance, the challenging power of CSQM1, recent changes in assurance and quality standards and what the future of quality assurance holds. What you’ll hear in this episode: [1:05] An overview of the goals of BDO’s first Head of Global Auditing Quality. [2:52] Insights into BDO’s decision to publicly release an annual audit quality report. [5:52] Navigating the intersection of transparency and protection of investors and public interest. [8:20] Report content details, including diversity and partner statistics. [11:41] The impact of CSQM1 on firm process monitoring and commitment to improvement. [16:14] Advice for CFOs regarding improved audit quality. [17:35] Steps to enhance proper governance on all sides of audit quality decisions. [20:51] A five-year look at the future of audit quality. Mentioned: Quotes “Quality is such a spotlight that a role has to be created because of it.” “Quality is a journey, and I like the use of that word because it should be interwoven in what we do on a daily basis.” “Our role as auditors is to promote quality and elevate our role in protecting investors and the public interest.” “CSQM1 provides a roadmap to areas that might need improvement.” “Quality should be intertwined into what you do on a yearly basis, it’s not just a check that you do once a year.” “Quality is continuous improvement that is always in the back of everyone’s mind.”
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Revisit: Putting the G in ESG
11/23/2023
Revisit: Putting the G in ESG
The speed of movement surrounding ESG changes is continually increasing and can’t be ignored any longer. In today’s episode, host Anne-Marie Henson, Partner, Eastern Canada & SMB Leader at BDO, is joined by Mary Mathews, Partner in BDO’s Accounting Advisory Group, to discuss the rapid pace at which ESG standards are being implemented and the impact that it can have on companies. They then turn to the 2022 Accounting for the Future conversation between Anne-Marie, Armand Capisciolto, and Pierre Taillefer, BDO Canada’s Sustainability Leader, who discuss all facets of the ESG journey, particularly the “G,” what companies are already getting right, and how they can advance their progress in the ESG journey. What you’ll hear in this episode: [1:20] Why it is essential to talk about ESG (again). [3:35] Changes that need to be made to today’s governance to reflect new ESG standards. [9:11] Defining the governance and reporting elements of ESG. [13:10] Most organizations have already started implementing some ESG policies. [15:49] Possibilities of mandatory sustainability reporting. [20:17] Integrating ESG factors into operational decisions. [21:34] Considerations addressing governance and reporting quality data. [27:37] Advice to boards when implementing ESG policies. [32:31] Pierre’s advice for getting started with ESG engagement. Mentioned: Quotes: “We’re not going to stop hearing about ESG,… it’s moving faster than I have ever seen previously.” “As companies are starting or part way through their ESG journey, it gives everyone a chance to reset and to create processes from the ground up that are really intentional and focus on the right information to produce sustainability-related information for investors.” “Take away the regulatory requirements, and ESG is reviewing how you operate as an organization and implementing ESG factors to be better off as an entity.” “When we talk to clients about ESG, the starting point is to talk about what they already do.” “You can’t think of these things in isolation. You have to be thinking about sustainability, reporting, and financial reporting as a package.” “Start with small pieces, but have a full picture of where you eventually want to go.”
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Revisit: Raising Funds in a Tough Market
11/09/2023
Revisit: Raising Funds in a Tough Market
Over the past year, increasing interest rates, high inflation, and the threat of recession continue to affect the ability to raise funds. In today’s episode, host , Partner, Eastern Canada & SMB Leader at BDO, is joined by , Partner in BDO’s Accounting Advisory Group. Together, they discuss key points of raising funds including the importance of data transactions and forecasting information prepared prior to talking to investors. They then turn to the 2022 Accounting for the Future conversation between Armand Capisciolto, BDO’s National Accounting Standards Partner and Accounting Advisory Services Leader and Jeffrey Stanger, President of ITB Solutions, Inc. for their still-relevant insights into what it takes to raise money in today’s tough market. What you’ll hear in this episode: [1:00] An overview of the past year from an investment perspective. [4:16] Unique characteristics of companies that are successfully raising funds in today’s market. [7:15] Armand Capisciolto introduces Jeffrey Stanger. [10:05] Navigating early-stage companies through tighter capital markets. [12:20] Strategies for companies to prepare to showcase what they have to offer. [17:44] Accessing a larger audience in a tough market. [20:40] Factors that can negatively impact the market. [23:08] Jeffrey’s advice to companies that are trying to raise money. Mentioned: Quotes: “Some of the things I’m actually seeing in some of these capital raising agreements are what I’ll call sweetener terms.” “Understanding what the accounting could end up looking like is critical for you as a business owner or CFO.” “Sometimes easy money can lead to long-term failure for companies.” “Companies that raise money in hard times like this need to delve deeper into their industry business model and market.” “During tough times, money can still be raised; it just takes a lot more work and a larger audience.” “Starting in a tougher market just makes things easier in the future.”
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Revisit: The Great Resignation and the Finance Function
10/26/2023
Revisit: The Great Resignation and the Finance Function
In this season of the Accounting for the Future podcast, we feature three timely, previously aired episodes with additional insights and background information, in addition to three brand-new episodes. In today’s episode, host Anne-Marie Henson, Partner, Eastern Canada & SMB Leader at BDO, is joined by Mary Matthews, Partner in BDO’s Accounting Advisory Group. Together, they reflect on the impact of the great resignation on the finance function as well as some of the best and worst things to come out of hybrid work. Listeners can revisit the still-relevant insights from BDO Alumni and current Chair of the Accounting Standards Board (AcSB), Armand Capisciolto and Barbara Palmegiani, Partner, and CFO Services Leader to listen to their discussion on the future of the finance function. What you’ll hear in this episode: [:10] An overview of what to expect from Season 5. [2:40] The best – and worst – things that have resulted from hybrid work. [9:51] Armand Capisciolto introduces Barb Palmegian. [11:25] The state of the finance function prior to the great resignation. [13:14] The skills of a “future fit plan”. [15:31] Finance function in the past and key differentiators from the present day. [20:48] Altering the CPA reaction to mid-career change. [23:35] The impact of remote work on connectedness and relationship building. [27:10] Developing a CFO community and network that is supportive. [30:14] Addressing the risk associated with a record number of CFOs that are resigning from the finance profession. [34:06] Recommendations for managing resignation risks on a timely basis. [36:03] Best next steps for CFOs in this decade of disruption. Quotes: “Embracing all this new technology has been a great advantage but a little bit of a challenge as well.” “This decade is the decade of disruption. It’s just a matter of time before we’re saying, ‘here we go again’.” “We’ve got to find ways of increasing the connectedness, and at the same time working remotely, and those two things don’t have to actually be mutually exclusive.” “Transformation is not just about influencing more and more technology; it’s about reimagining the entire business model.”
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How to Make Your Financial Statements Say What They Mean
06/08/2023
How to Make Your Financial Statements Say What They Mean
Financial statements should ideally tell the right company story and provide meaningful information. Still, increasingly complex IFRS requirements have resulted in financial statements that can be both overwhelming and lacking in useful information. In today’s episode of Accounting for the Future, host Anne-Marie Henson, BDO Partner, is joined by BDO Accounting Advisory Group Partner and return podcast guest Mary Mathews. Together, they examine strategies to make financial statements more meaningful and useful. Mary offers steps to meet complex compliance standards while also telling the story users need to obtain from their financial statements. What You’ll Hear In This Episode: [1:22] A brief overview of IFRS and its impact on reporting today. [4:08] Common presentation issues and complexities within disclosure requirements. [7:32] The effect of the latest IFRS standards on financial reporting and statements. [9:40] Key steps to crafting financial statements that say what they mean. [16:38] Tips for staying organized throughout the yearly process. [21:57] Strategies for organizing and minimizing report pages. [24:00] Additional considerations when preparing for the future of financial reporting. Mentioned: Quotes: “Thinking about financial statements as a communication tool is key.” “The continuing changes to IFRS add a complexity to that important role of preparing the financial statements.” “There are always changes happening in the world of accounting standards and financial reporting.”
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Reshoring as a Strategy
05/25/2023
Reshoring as a Strategy
With unprecedented supply chain shortages, exorbitant shipping costs, and scrutiny over sustainability, companies are questioning whether importing is best to ensure their company’s long-term growth and viability. In today’s episode of Accounting for the Future, host Anne-Marie Henson, BDO partner, is joined by BDO Canada’s Director of Operational Improvement, Charlie Reid, for a conversation about the risks and benefits of altering a reshoring strategy. Together they discuss the risks and benefits of utilizing various importing strategies when accounting for the optimal impact on a company's future. What You’ll Hear In This Episode: [1:25] A brief history of international importing. [3:53] A definition of common reshoring terms. [5:46] Key considerations in determining whether to continue overseas sourcing. [9:20] Major risks that can occur during the reshoring process. [13:56] Advantages of pursuing a reshoring strategy. [19:45] Maintaining competitive pricing while utilizing locally sourced vendors. [23:37] Benefits of reshoring when accounting for the company’s future. [26:15] Additional considerations when implementing a reshoring strategy. Mentioned: Charlie Reid
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The ever-changing role of the CFO
05/11/2023
The ever-changing role of the CFO
The CFO of the past may have been focused on the past, but the CFO of today needs to be focused on the future. In today’s constantly changing environment, there is a greater demand than ever for competent CPAs and forward-thinking CFOs. In today’s Accounting for the Future episode, host Anne-Marie Henson, BDO partner, sits down with Pamela Steer, President and CEO of CPA Canada. Together, they discuss the challenges and rewards of the ever-changing role of the CFO. From navigating digital transformation and ESG initiatives to increasing your knowledge and skills in ways that will align competencies with your values, Pamela has the experience and shares the advice that every CPA needs to hear. What You’ll Hear In This Episode: [1:15] Pamela’s less-travelled path led to her current role as CPA Canada’s CEO. [4:48] The most important skills an effective CFO must have in today’s world. [10:01] The impact of change on a CFO’s focus today. [18:15] How can a CFO add value to the organization through digital transformation? [23:22] Potential ESG and sustainability initiative efforts of companies in Canada. [30:28] Advice for CPAs who want to learn more about key topics. [37:25] Pamela’s suggestions when navigating your next career move. Mentioned: Quotes: “Changes are accelerating in pace and the demands on the CFO of today are very different.” “The CFO of today and tomorrow is a very different individual than it was 20 years ago.” “The CFO of the past was very focused on the past, and CFOs today need to be very focused, much more than ever, on the future” “I also think some of the training of a CPA, unlike other roles, is to take very complex topics and tell a story.”
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Learning from the crypto breakdown
04/26/2023
Learning from the crypto breakdown
Cryptocurrency is a hot topic in today's world, but is the crypto apocalypse here? How is crypto impacting BDO clients and businesses? What are some concerns surrounding crypto, and what considerations should a company looking into investing in cryptocurrencies be aware of? On today's Accounting for the Future episode, host Anne-Marie Henson, BDO partner, is joined by Mary Matthews, BDO Accounting Advisory Group Partner, and Michael Crolla, BDO Assurance and Accounting Partner. Together they discuss developments in cryptocurrencies over recent months, managing crypto volatility, and what investors can do to vet new and young investment opportunities better. What You'll Hear In This Episode: [2:45] An overview of the current cryptocurrency world and FTX. [6:30] The ripple effect of cryptocurrency on companies like Silvergate Capital. [10:02] Regulations that could help stabilize the crypto industry. [14:58] Recommendations for crypto best practices and financial controls. [21:00] How can management avoid a fate similar to FTX? [23:15] The critical role of the CEO in leading a company. [25:42] Cautionary advice for investors to better protect capital. Mentioned: Quotes: "While Crypto is a relatively new industry, we can't ignore the fundamentals of running a company with strong governance." "No matter how big a company is, poor governance can always throw it into chaos." "Investors need to be wary of boards which consist of just executives or just management.” “What’s interesting with companies like FTX, is that they’re creating their own currency, their own token, and in general as an investor I would be very cautious of that.” “It’s a hard balance, but you have to know who and what you’re investing in.”
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What's Next for Accounting for the Future
03/30/2023
What's Next for Accounting for the Future
Today host Anne-Marie Henson, BDO Partner, and co-host Armand Capisciolto, BDO’s National Accounting Standards Partner and leader of accounting advisory services, team up one last time to explore their changing roles as well as some trends that are impacting both of their new roles. Together they discuss the role and importance of private equity, its relevance in today’s accounting environment, and a look to both the future and the past of the Accounting for the Future podcast. What You’ll Hear In This Episode: [1:42] A look at Anne-Marie’s changing role in market leadership and firm strategies in private equity. [5:09] The impact that private equity, reporting, and standard setting will have on new business owners. [10:10] Armand’s focus as the incoming chair of BDO’s Accounting Standards Board. [14:04] Defining relevance in the current accounting environment. [22:06] Highlights from favorite past Accounting for the Future podcast episodes. [25:45] Armand’s final goodbye as co-host of the podcast. Mentioned: Quotes: “For anyone who may think accounting is boring or not fun, I dare you to listen to this podcast.” “We need to think about how private equity is going to be using financial statements.” “Anyone who is looking at financial statements is not looking at them in isolation.” “Talking with companies about where they want to go is what makes our job as accountants interesting and exciting.”
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Getting our head into the cloud
03/16/2023
Getting our head into the cloud
Cloud transformation is changing the way that data is handled today, but what does that mean from an accounting standpoint? To help understand the impact, cost, and many benefits of cloud transformation, host Anne-Marie Henson, BDO Partner, and co-host Armand Capisciolto, BDO's National Accounting Standards Partner and leader of accounting advisory services, are joined by Feng Liu, BDO Lixar's Head of Cloud Engineering. Lixar is BDO's technology division and helps clients with a variety of needs, including digital transformation support, big data analysis, AI tools to help profitability, business applications, and cyber security. Together they discuss tactics for executing a successful cloud transformation that doesn't include any surprises. What You’ll Hear In This Episode: [2:02] Defining cloud transformation in the most basic sense. [6:20] Overcoming key challenges will result in a successful transformation. [13:10] The benefits of effective cloud transformation. [20:15] Accounting issues regarding cloud transformation strategy costs. [24:10] Arrangements for handling various digital assets. [29:30] Highlighting the accounting impact during the implementation process. Mentioned: Quotes: "Cloud transformation, by its definition, is changing something significantly to be better." “When you have cloud computing power at your fingertips, the cost of trying new ideas and response to market trends is going to be a lot faster. The innovation barriers are a lot lower.” “The cost is a benefit for organizations when transforming their business over to the cloud.” “When it comes to accounting, no one likes surprises.”
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Private Equity in the Mid-Market
03/02/2023
Private Equity in the Mid-Market
Every business owner must face their exit at some point, and those who think about planning their exit strategy in advance are likely going to experience a better transition than those who leave it to the last minute. Today, host Anne-Marie Henson, BDO partner, and co-host Armand Capisciolto, BDO’s National Accounting Standards Partner and leader of Accounting Advisory services welcome Sunil Sharma, BDO Canada’s Transaction Services and ARM Private Equity leader. He has joined the podcast for a discussion about the role of private equity in the SMB and SME space, including current trends, considerations for clients who are looking at a private equity exit, and the advantages of creating an exit plan sooner rather than later. What You’ll Hear In This Episode: [1:57] Insights into the size of various companies and their impact on private capital investors. [5:41] Entities that are considered providers of private capital. [7:45] Comparing the private market growth against public markets. [10:20] A look at the trends in the IPO market in 2023. [14:06] Advice for SMB and SME clients who are looking into a private equity exit. [19:14] The advantages of creating a five year exit plan today. [23:26] Preparations that assist the owner-managed business to portfolio company transition. [27:14] Exit strategies of private equity when looking to divest. Mentioned: Quotes: “We are seeing that private capital is truly outpacing public market growth quite considerably.” “Getting help, there’s nothing wrong with that. It will generally lead to a more successful outcome.” “You’re going to exit your business one way or another; voluntarily or involuntarily. You’re better off thinking about it earlier so you can dictate the terms and have a plan.” “Where you can do preparatory work to make the eventual [exit] process as seamless as possible is only to your advantage.”
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Putting the G in ESG
02/16/2023
Putting the G in ESG
We hear a lot about the environmental and social aspects of ESG, but what about governance? Many companies have already implemented some ESG policies, but there may still be an overwhelming amount of work to be done. Today, host Armand Capisciolto, BDO’s National Accounting Standards Partner and leader of accounting advisory services, is joined by current co-host and future host of the Accounting for the Future podcast, Anne-Marie Henson, BDO partner. Together they welcome Pierre Taillefer, BDO Canada’s Sustainability Leader. He is responsible both for moving BDO Canada’s internal ESG strategy forward as well as leading BDO’s sustainability service offerings and has joined the podcast for a discussion about the ESG journey, what companies are already getting right, and how to advance their progress in the ESG journey. What You’ll Hear In This Episode: [3:06] Defining the governance and reporting element of ESG. [6:30] Most organizations have already started implementing some ESG policies. [9:45] A look at the possibility of mandatory sustainability reporting. [13:00] Integrating ESG factors into operational decisions. [15:08] Considerations addressing governance and reporting quality data. [21:32] Advice to boards when implementing ESG policies. [25:30] Pierre’s advice for getting started with ESG engagement. Mentioned: Quotes: “Take away the regulatory requirements, and ESG is reviewing how you operate as an organization and implementing ESG factors to be better off as an entity.” “When we are talking to clients about ESG, the starting point is to talk about what they already do.” “You can’t think of these things in isolation. You have to be thinking about sustainability, reporting, and financial reporting as a package.” “Start with small pieces, but have a full picture of where you eventually want to go.”
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The Acceptance of Non-GAAP Measures
02/02/2023
The Acceptance of Non-GAAP Measures
Financial statements are more than just a compliance document, they’re also a communication tool. But what message are you communicating with hard to understand, vague, or overly complicated financial statements? Host, Armand Capisciolto, is joined by Anthony Scilipoti, Founder, President and CEO of Veritas Investment Research and board member of the Capital Markets Advisory Committee of the International Accounting Standards Board (IASB). Together they discuss the value of preparing financial statements that tell the company’s story clearly so that investors can make informed decisions and help move a company forward. What You’ll Hear In This Episode: [1:15] The value of clearly audited financial statements to investors. [3:50] Anthony’s advice for crafting easy to understand financial reports. [8:45] The downside of non-GAAP metrics in financial reporting. [12:53] A comparison and reasoning of non-GAAP in the US versus Canada. [14:04] Potential underlying causes of failure to supply needed numbers for data aggregation. [17:57] Potential disclosure improvements resulting from new regulations. [21:10] Do various non-cash expenses factor into non-GAAP measures? [26:40] The value of ‘information overload’ in preparing financial reports. [28:51] How US disclosure standards benefit companies seeking capital. [30:18] Anthony’s recommendations for preparers of financial information. Mentioned: Additional Resources:
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Exploring the Private Equity Landscape
01/19/2023
Exploring the Private Equity Landscape
Private equity is everywhere these days, regardless of your location or firm size. This episode features a conversation from BDO’s internal Assurance Conference. At this conference, Armand Capisciolto, BDO’s National Accounting Standards Partner and Accounting Advisory Services Leader, met with BDO Assurance partner Ian MacDonell, and BDO Valuations partner Amanda Tso. Together they discussed the ways that private equity is impacting businesses today, including preparing for a sale, how to increase a company’s appeal, and the importance of preparing financial information in advance. What You’ll Hear In This Episode: [1:30] Understanding private equity from the other side. [7:20] The relevance of private equity funds in mergers and acquisitions. [9:52] A “typical” company that is utilizing private equity investments today. [12:26] Is selling the entire company necessary to tap into private equity? [13:33] Characteristics for a target company for private equity? [16:03] Recommendations for strategically preparing for a sale. [19:52] Increasing appeal to minimize the likelihood of a deal falling apart. [20:48] Preparing financial reporting for subsequent acquisitions. [23:19] Private equity in light of sustainability and ESG. Mentioned: Additional Resources:
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Life of a Public Company
12/08/2022
Life of a Public Company
Many private companies consider going public as the finish line, when in reality, it is simply the starting line for an entirely new life with deadlines, board members, investors, and regulations that have to be answered to. In this episode of Accounting for the Future, host Armand Capisciolto, BDO’s National Accounting Standards Partner and Accounting Advisory Services Leader, sits down with Alex Lalka, a partner at Miller Thomson in their M&A and Securities group, and Anne-Marie Henson, a public company partner in BDO’s Montreal office. Together they discuss life as a public company — what it is, what it isn’t, who needs to be on a successful team, and the proactive steps companies can take now to avoid problems in the future. What You’ll Hear In This Episode: [2:02] A look at the road to becoming a public company over the last 12 months. [5:05] Significant growing pains associated with becoming a public company. [8:02] The vast leadership and advisor requirements for a public company. [13:00] Essential financial reporting changes when transitioning to public. [16:55] What happens when companies don’t comply with deadlines? [20:00] How to minimize risks associated with missing deadlines. [25:25] The importance of a strong CFO for a newly public company. Mentioned: Additional Resources:
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Director Responsibility for Climate Risk Management
11/24/2022
Director Responsibility for Climate Risk Management
Climate risk management is a hot topic in boardrooms today. Organizations around the world are actively talking about climate change risk management and what that looks like in their governance structure, strategic plans and financial reporting. In this episode of Accounting for the Future, host Armand Capisciolto, BDO’s National Accounting Standards Partner and Accounting Advisory Services Leader, is joined by Kristyn Annis, a corporate commercial lawyer at BLG specializing in energy and climate change. Together they discuss director responsibility for climate risk management, regardless of mandatory climate risk disclosures, and the impact it can have on an organization – and the world. What You’ll Hear In This Episode: [2:02] Similarities between climate risk management and other board responsibilities. [7:32] Core principles and duties held in the CBCA and OBCA. [10:50] Long-term concerns regarding corporation sustainability. [22:32] Practical points of the fiduciary duties. [24:26] Best practices for directors, moving forward. [27:50] The impact and implications of mandatory reporting. [33:20] Potential changes to climate change management and strategy. [35:38] The influence of institutional investors in the boardroom. Mentioned: Additional Resources:
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Accounting for Going Green
11/10/2022
Accounting for Going Green
Around the world, companies are working to achieve net-zero, and BDO is no different. But why is this an accounting issue? This week, we welcome Mary Mathews and Braham Moondi, both Partners in BDO’s Accounting Advisory practice. Together, they discuss the role that accountants play in moving companies toward net-zero and best practices for approaching specific considerations along the way. What You’ll Hear In This Episode: [1:53] Mary explains why accountants are involved in the company’s work of moving toward net-zero. [3:13] Braham reveals the financial solutions and market incentives associated with achieving net-zero targets. [4:56] Details about sustainability-linked bonds and other lending arrangements and their link to ESG targets. [8:02] What is a virtual power purchase agreement and what are its key issues? [12:31] The standards associated with financial instruments don’t address many issues specifically, which often adds to their complexity. [15:50] Considerations about how such changes impact financial reporting. [17:19] These risks impact all companies, even those not affected by securities regulations, but how do that impact disclosure and financial statements? [20:04] Braham shares key considerations for financial tracking from an auditing perspective. [23:51] Final key takeaways regarding handling standard accounting processes. Mentioned: Additional Resources:
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Mitigating Risk in Mergers and Acquisitions
10/27/2022
Mitigating Risk in Mergers and Acquisitions
Whenever you have down markets in a recessionary environment, you are likely to see an increase in litigation, particularly in the M&A space. What are the key moves that companies can make now to avoid surprises — and potential litigation — when preparing for M&A? In this episode of Accounting for the Future, host Armand Capisciolto, BDO’s National Accounting Standards Partner and Accounting Advisory Services Leader, is joined by Robert Brush, Partner at Crawley MacKewen Brush LLP, specializing in corporate and securities litigation, and Michael Morrow, a BDO Partner specializing in Capital Markets and M&A. Together they discuss tactics for avoiding litigation in mergers and acquisitions. What You’ll Hear In This Episode: [1:45] Main causes of litigation in mergers and acquisitions. [3:20] Strategies for avoiding surprises in M&A. [6:15] Benefits of handling financial reporting in advance. [14:22] Seeking resolution with dispute resolution clauses. [17:34] The prevalence of litigation in recessionary environments. [21:40] The importance of having the right advisors in place. [23:00] Final key advice to avoiding litigation in M&A. Mentioned:
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Issues Before and After Acquiring a Business
10/13/2022
Issues Before and After Acquiring a Business
With lingering uncertainty in a post-pandemic market and increases in both supply and demand, worldwide M&A opportunities have reached trillions of dollars. To highlight issues that companies are facing both before and after acquiring a business, in this episode of Accounting for the Future, host Armand Capisciolto, BDO’s National Accounting Standards Partner and Accounting Advisory Services Leader, is joined by two BDO advisors: Jamie Windle, Managing Director, M&A and Capital Markets, who specializes in financial due diligence, and Ziad Akkaoui, Risk Advisory Services Partner. Together they discuss how some decisions made before a deal can cause the greatest hurdles after a deal closes. What You’ll Hear In This Episode: [1:15] Two major factors that are leading into the $350 billion M&A market. [5:00] Buying opportunities are increasing as more companies are exiting from the uncertainties of today’s market. [7:10] Current industry trends in M&A, including within the broader healthcare market. [11:02] Owner arrangement considerations when structuring an M&A deal. [15:35] Top issues that companies overlook before they buy a company. [18:45] Considerations from before a deal that cause the greatest hurdles after a deal. [21:43] Strategies for merging a young company into a mature company while maintaining its entrepreneurial spirit. [27:06] Top issues that clients need to pay more attention to after a deal. [29:01] Sustainability and ESG reporting considerations when working with M&As. Mentioned: Additional Insights:
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Choosing the Right GAAP
09/29/2022
Choosing the Right GAAP
Following the right Generally Accepted Accounting Principles (GAAP) provides a communication and deal-making tool to help move your business plans forward. Opportunities in today’s volatile marketplace come and go quickly, and those who have put in the work of advanced planning will be prepared to seize opportunities as they arise. In this episode of Accounting for the Future, host Armand Capisciolto, BDO’s National Accounting Standards Partner and Accounting Advisory Services Leader, welcomes BDO partners Mikaela Taylor and Dave Rasmussen. Both Partners advise engagement teams and clients on accounting, regulatory, and audit matters and have joined the podcast for a conversation about choosing the right GAAP, shareholder decisions, options available in Canada, and the benefits of being prepared to act when opportunities arise. What You’ll Hear In This Episode: [1:51] What are GAAP for businesses in Canada, IFRS, and ASPE, and are they required? [3:18] Some private enterprises are opting to use U.S. GAAP, which is permitted if they are incorporated and have unanimous approval. [5:02] Not using any GAAP at all is an option under certain circumstances. [6:40] If GAAP isn’t required, why would an entity choose to use it at all? [8:53] Common drivers behind choosing to utilize GAAP. [12:16] Dave offers examples of scenarios in which a client would want to adopt IFRS. [17:43] Mikaela highlights ideal times when companies should consider U.S. GAAP. [20:41] Strategic planning tips to help move a client forward. [22:51] When are ASPE accounting standards enough? [24:33] Questions companies need to ask when beginning to follow an accounting framework. Mentioned: Additional Insights:
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