Data Is a ‘Tangible’ Asset

There are compelling reasons to start thinking deeply about how to value a company’s data assets for accounting purposes.

Much talk is swirling around the need to value a company’s data as a business asset on its balance sheet. The idea is compelling. Data, in the right hands, is often as valuable as land, buildings, and equipment.

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AI will not replace accountants but instead, it will augment accountants’ intelligence

During its annual developers conference, which kicked off May 8, Google showcased a system named “Duplex AI,” a new technology for conducting natural conversations to carry out real-world tasks over the phone. Google will start testing the technology with the Google Assistant on smartphones to help users set up appointments without the user needing to make actual phone calls themselves – i.e., the AI system will make the call on user’s behalf.

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Balancing the Details With the Big Picture

“It’s not the load that weighs you down, it’s the way you carry it,” wrote author, C.S. Lewis. He makes a good point. Anyone in finance today will be familiar with that sinking feeling when yet another new piece of financial regulation, compliance legislation or reporting standard is announced. As Finance leaders, most of us are used to it by now. Change is constant, increasingly complex, and in the main, completely non-negotiable. IFRS is the latest example.

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Companies want credit for trying to comply with GDPR

With 21 days until the General Data Protection Regulation kicks in, the emails are flying. Marketers and publishers are sending notices that run the gamut, from stating their terms of service have changed to explicitly requesting opt-in consent.

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Cloud Security In Question

The migration to public cloud platforms is causing a buildup of cyber risks that could leave businesses financially exposed.

Insurers dread what they like to call “aggregation risk.” The threat arises when a large number of companies face the same catastrophic peril concurrently, multiplying the potential losses in an insurer’s portfolio. The issue gained prominence in the wake of the 9/11 attacks, when many companies in the same location lost people, saw property destroyed, and suffered lengthy business interruptions from a single event.

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Three ways blockchain can be used to establish best practice

One of the most significant innovations in compliance will come through the incorporation of blockchain.

There are three specific areas where I see blockchain directly impacting the compliance profession:

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Enforcement of Anti-Money Laundering Rule Will Start Slowly

Regulators said they won’t immediately crack down on financial institutions once a new anti-money laundering rule takes effect next month.

The rule requires financial institutions to identify the true owners of companies when they open bank accounts. It will get a light enforcement touch in the early days after the May 11 effective date, regulatory officials said Monday at an anti-money laundering compliance conference. The rule was in the works since 2012; it was finalized four years later.

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How Management Contributes to Audit Quality

What role can management play in improving audit quality? It is a question that has been largely ignored since the financial crisis of 2008. Instead, initiatives aimed at improving audit quality have focused almost singularly (and understandably) on what auditors could and should be doing.

The reality is that the auditor can only audit the information provided by management. A more robust and inclusive approach is needed to improve audit quality. Audit quality is most strengthened when the auditor, the audit committee and management (the “three-legged stool”) work together.

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IASB completes revisions to its Conceptual Framework

The International Accounting Standards Board (Board) has today issued a revised version of its Conceptual Framework for Financial Reporting that underpins IFRS® Standards.

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Fintech’s Focus Shifts Toward Finance

The financial technology industry is maturing at a dizzying pace, having exceeded a combined $31 billion in total funding last year alone, according to KPMG’s recent Pulse of Fintech report.

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