The importance of standard setting - Part 1

Accounting for the Future

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: Inside Standard Setting.

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:

Anne-Marie Henson

Armand Capisciolto

BDO

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."