The Institute of Audit Committees’ Gazette

KPMG Argentina

KPMG edits a regular publication on behalf of the Institute of Audit Committees -La Gaceta del Instituto de Comités de Auditoría (ICA)-, on corporate governance issues that are relevant to company directors and senior management. The latest edition has three news items about promoting good corporate governance:

Audit Committee’s 2018 Agenda

The paper explains the areas that Audit Committee agendas should cover, bearing in mind the challenges set by changes in the economy and technology development.

Although Audit Committees’ main purpose relates to financial reporting, they must also bear in mind other issues that are relevant to their duties, such as monitoring the implementation of accountancy and fiscal standards, overseeing the work of management.

These Committees’ agendas should also cover the analysis of new risks their companies may have to deal with and focus the internal audit on those which might represent a threat to the corporate reputation, strategy or operations.

Innovation: the risks and advantages

The latest issue of the ICA Gazette describes the two sides of innovation: the risks it may imply, but also the opportunities it can offer. To deal with these risks, innovation needs to be viewed as inherent to the company’s strategy; it is essential to define the risk exposure the company is prepared to accept, and to have the requisite financing.

New International Financial Reporting Standards (IFRS)

Finally, the newsletter discusses the coming into force of new IFRS and amendments to some of the existing standards. While IFRS 15 (revenues from contracts with customers) and IFRS 9 (financial instruments) came into force on 1 January, the effective enforcement of others will be delayed until 2019* and 2021** although they can be adopted earlier.

* IFRS 16 (on leases), IFRS 23 (tax on earnings), amendment of IFRS 9 (prepayment features with negative compensation, amendment to IFRS 28 (long-term investments in associates and joint ventures)

** IFRS  17 (insurance contracts)