Briefly:

Previous Brieflies this week: | MON | TUE | WED | THU |

(June 6, 2008) The conversion experience in other countries to International Financial Reporting Standards isn’t as simple as swapping one set of accounting rules for another, says Ernst & Young. Tax in particular requires special attention, since almost every IFRS-related change will have a tax accounting or reporting implication.

“We absolutely need tax at the table when we’re planning for IFRS,” explains Fraser Gall Ernst & Young tax partner. “In 2009, Canada’s public companies will need to quantify the impact of IFRS conversion. They’ll also need to provide IFRS comparables for 2010 when they report in 2011. If they’re going to be ready, now is the time to make tax top of mind.”

Gall says IFRS changes will affect every aspect of the tax life cycle, from planning through provision to compliance. He stresses tax directors need to understand the financial significance and business impact of the changes, because of tax’s link to cash flow, the effective tax rate and the need for tax resources.

Gall also points out that all tax accounts will need to be recalculated for the comparative period, as if IFRS had always been the standard. In addition, changes to the tax accounting standards themselves and changes in all other accounting standards will have a tax accounting impact. Pre-tax book income and the balance sheet will change, requiring tax departments to understand the tax implications of all the changes.

• • •

OSC educational outreach recognized for persistence

(June 6, 2008)The North American Securities Administrators Association (NASAA) presented the Ontario Securities Commission (OSC) with the 2008 award for “Most Investor Education Outreach Presentations Made” at the organization’s Investor Education Training Seminar this week in Philadelphia.

The OSC reached 16,900 people with 54 presentations during the reporting period, which spanned October 2007 through April 2008. Since NASAA began tracking investor education outreach efforts by the membership in November 2006, more than 293,718 consumers have been included in 2,192 presentations, with 41 of 67 member jurisdictions reporting.

OSC staff make presentations at events and trade shows across the province. These presentations are part of the commission’s Check Before You Invest campaign that integrates community outreach, advertising, public service announcements and investor information. The campaign urges investors to research their investment decisions, starting with OSC investor resources.

The OSC says NASAA is the oldest international organization devoted to investor protection. Its membership consists of the securities administrators in the 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Canada and Mexico.

• • •

Man Group buys stake in alt manager

(June 6, 2008) Man Group announced it is acquiring a 25% interest in Nephila Capital, an alternative investment manager specializing in insurance-based instruments such as insurance linked securities, catastrophe bonds, insurance swaps and weather derivatives.

Established in 1998, Bermuda-based Nephila employs 25 staff members and has approximately $2.4 billion under management. By combining Nephila’s experience with its own depth of resources and market reach, Man says the deal will create significant value for both investors and shareholders.

The deal also falls in line with Man’s strategy to broaden its offering of alternative investment strategies and sources of uncorrelated returns offered to institutional investors.

The minority stake in Nephila Capital will be part of Man ECO, a multi-strategy private equity manager that seeks to capitalize on investment opportunities arising from environmental strategies. Nephila’s three managing principals, Frank Majors, Greg Hagood and Barney Schauble, will continue to manage the business and the underlying fund investments.

“This transaction further develops Man’s strategy to expand the range of opportunities for our investors. The natural catastrophe and weather derivative markets offer significant opportunities for uncorrelated alternative investment returns. We are excited at the prospects of this strategic partnership and what it means for our and Nephila’s investors, says Peter Clarke, the CEO of Man Group.

(06/06/08)