sails banner


Deloitte Digest for Controllership

Get our latest insights

Each month, Deloitte Advisory provides an easily digestible and regular stream of perspectives on the challenges facing controllers and those working in the controllership function. In each issue we share our latest thought leadership and details about upcoming Dbriefs webcasts to help you stay on top of the latest accounting, financial reporting, regulatory, and business developments.

Subscribe and archives

Subscribe to receive the Controllership Digest via email. Past issues appear below. 

Accounting Roundup: Year in review 2016
Learn more about some of the key accounting developments that occurred in 2016.

Staying true to your leadership style
When changing roles or taking on new responsibilities, how can executives adapt the way they communicate, manage, and inspire?

4 ways to empower millennial employees
Millennials seek purpose, flexibility, collaboration, and innovation at work. To help build and nurture your organizations’ young talent—while fostering an environment that can benefit employees of all ages—focus on improving these four areas.

Lease accounting: Early steps in FASB compliance and centralizing data
As we approach the one-year anniversary of the Financial Accounting Standards Board (FASB) releasing the new leases standard, many organizations are beginning to work on their transition timelines and implementation plans. Check out the results of a recent Dbriefs webcast poll to see how your organization compares to your peers.

Are you facing data integrity issues in your gross-to-net process?
Some life sciences companies, especially those that have gone through a series of mergers and acquisitions, are often saddled with multiple legacy systems that are unable to communicate with one another. Learn how one mid-sized pharmaceutical company was able to address data disparity, lack of auditability, and control issues and advance their GTN model from foundational to advanced.

2017 Oil and Gas Outlook
What are the long-term impacts of the oil and gas downturn? What are the reasons to be positive for an oil and gas recovery? Read about the state of the industry.

January 2017

Digital finance: Why controllership is in the vanguard
The emergence of several disruptive technologies, from cognitive computing to visual analytics, is driving a movement toward digital controllership™, pushing the function to be a far more strategic contributor. At the same time, a growing list of business challenges is prompting line-of-business leaders to look to the controller’s office for data-driven insights that support smarter decisions across the enterprise. Learn how in-memory computing and other technologies are putting the controllership in the vanguard of digital finance to provide an integrated system supporting analytics, reporting, consolidation, process transaction, governance and controls.

Optimizing service delivery models for knowledge-based finance functions: Why the rewards can be well worth the risks
Finance and accounting organizations are now looking at ways to optimize resource deployment in the delivery of traditional knowledge-based functions including controllership, tax, treasury, internal audit, and compliance. Although the value drivers remain the same, optimization of these types of highly skilled functions offers qualitative and quantitative benefits, yet also introduces unique risks that need to be managed if this next round of service delivery model transformation is to be deemed successful.

Make or break: Delivering on your brand promise
In every industry, businesses and consumers are bombarded with an overwhelming choice of products and services. A distinctive and well-executed brand promise can cut through the clutter and drive intense customer loyalty and increased revenue. Learn how measuring, monitoring, and training could help you better deliver on your brand promise.

The future of risk: New game, new rules
Rapid change is underway in the risk landscape. New trends are emerging that could alter the risks your organization experiences and affect how you respond to and manage risk. This publication profiles 10 trends that are impacting the entire nature of the risk discipline and explores driving forces, potential opportunities and threats, and some real-world examples.

Simplifying the tax code—be careful what you wish for
The call for simplifying the tax code has been getting louder, but do citizens and businesses really understand how it will impact their income and the current tax benefits they enjoy?

Flashpoint: Changes to lease accounting standards
New lease accounting standards are expected to provide investors and other stakeholders with a more transparent view of a company’s financial picture. But for the technology, media, and telecommunications industry, in particular, the projected effort to prepare for these changes will likely be significant. Here’s a look at some key issues surrounding the new standard.

2017 banking and securities outlook
Initial market reactions to the election outcome in the United States have indicated improved prospects for banks and capital markets firms in 2017. As we look ahead to the coming year, what key trends are in the forecast for banking and securities?

December 2016

Developing your personal digital brand
Cultivating your personal digital brand is no mere act of vanity. It is more important than ever for executives to manage their online reputation. Deloitte LLP’s chief marketing officer shares her perspectives on the necessity to cultivate your online brand, social media as a personal brand-building tool, and what’s she learned about how to remain true to herself online.

2017 essential tax and wealth planning guide
While paying taxes might be one of life’s certainties, the amount high-net-worth individuals pay is constantly changing. This guide is a source to timely advice on how the 2016 elections may impact 2017 tax planning, the fundamentals of effective wealth transfer planning, and issues associated with unique investments.

Frozen: Using behavioral design to overcome decision-making paralysis
Too often, many consumers get stuck before making a choice—and then they do nothing. Why does this happen? Learn ways organizations can leverage behavioral economics lessons to help consumers commit to new actions.

Winning in M&A: Acquisition strategy during merger waves
Heightened deal activity in recent years can subsequently lead to missteps–potentially compromising those deals. The first piece in our Strategy Series on mergers and acquisitions (M&A) discusses common buyer mistakes during merger waves and ways to avoid them. To win in M&A, proactively identify and transact deals by being an advantaged acquirer.

2016 Deloitte holiday survey: Ringing in the retail
2016 will be far from business as usual for the nation’s retailers. According to Deloitte’s annual consumer shopping survey, more consumers plan to shop online for gifts than ever before, and shoppers anticipate spending just as much online as they do in stores.

Zero-based budgeting: What works and what doesn’t?
Our fourth biennial survey of cost management and cost improvement trends spotlights a growth paradox we call “thriving in uncertainty.” Global macroeconomic conditions have created an environment where companies are pursuing the seemingly conflicting goals of both aggressive profit improvement and aggressive growth. This is no exception in the consumer goods industry. But is that approach working? And how can zero-based budgeting help?

November 2016

Resources for new accounting standards
Many of our readers are in the process of operationalizing several new accounting standards. Below are a few new resources that may be helpful:

What’s your story?
Your personal stories are powerful tools that give your audience a glimpse into who you are as a person–and as a leader. Having the right stories can help you move beyond the “talking head”–merely delivering information–to being a conduit for a call to action. This article outlines the essential aspects of a story and makes the case for why it is important in finance.

Thriving in uncertainty: Deloitte’s fourth biennial cost survey: Cost improvement trends in the Fortune 1000
Global macroeconomic factors are having a major impact on cost management efforts at large US companies. While the domestic economy has gained significant strength, other parts of the world are still struggling. This has created a cost/growth paradox we call “thriving in uncertainty,” where companies are simultaneously pursuing the seemingly conflicting goals of aggressive cost improvement and aggressive growth.

How to balance the risks and rewards of third-party intermediaries
As organizations increasingly leverage third-party business partners (what we call the “extended enterprise”), regulatory bodies are upping their focus on enforcement activity. This article reviews the benefits and challenges of working with third parties.

Diagnosing your team and curing its ills
CFOs are critically dependent on controllership and their finance leadership team to successfully execute their vision. An ineffective team not only can jeopardize the vision, it also can diminish a CFO’s standing in his or her company. Learn a simple and practical framework to help diagnose how your team works, frame a few focusing questions, and assess key team attributes.

Back to top

October 2016

Digital controllership: From debits and credits to bits and bytes
Emerging, and often disruptive, technologies are changing the role of controllership, helping organizations address issues and challenges not historically solved (or at least solved effectively) through automation. Learn more about some of the technologies that are being introduced to controllership and gain insight into a disciplined approach that can help you achieve effective technological transformation.

How to innovate the Silicon Valley way: Tapping into the Silicon Valley innovation ecosystem
Large enterprises are increasingly venturing into Silicon Valley to draw upon “outside-in” innovation, but they often stumble due to cultural, structural, and regulatory hurdles. How can outside organizations harness Silicon Valley’s innovation ecosystem to their advantage?

Minds and machines: The art of forecasting in the age of artificial intelligence
The human/artificial intelligence (AI) relationship is just heating up. So when is AI better at predicting outcomes, and when are humans? What happens when you combine forces? And more broadly, what role will human judgment play as machines continue to evolve?

Harnessing the power of advanced analytics
The potential for material misstatement of a fair value estimate represents a significant financial reporting risk to companies. Learn how your business can use data analytics to strengthen its ability to meet financial reporting requirements, particularly around valuation processes, procedures, and analyses.

As cyber threats mount, Internal Audit can help play defense
With the threat of cyber incidents increasing, many audit committees and boards have set an expectation for internal audit (IA) to assess the organization's capabilities of managing the associated risks. A first step in meeting this expectation is for IA to conduct a cyber risk assessment and distill the findings into a concise report for the audit committee and board, which can provide the basis for a risk-based, multiyear internal audit plan to help manage cyber risks.

Deloitte business confidence report 2016: The bold organization—innovate, lead, attract
For the second year, Deloitte’s business confidence report took the pulse of 600 of America's top business leaders and examined their levels of confidence to outperform competitors and their views on key business issues like innovation, talent, and bold leadership.

Practical insights on implementing IFRS 9 and CECL
This report, the fourth in a series on ASU 2016-13, discusses the differences and similarities between the Financial Accounting Standards Board and International Accounting Standards Board credit impairment models. It also explores how building an integrated framework can help organizations with dual filing requirements gain operational efficiencies and facilitate a lean implementation program.

Taking cyber risk management to the next level: Lessons learned from the front lines at financial institutions
Read our in-depth analysis of how security leaders at financial services firms are handling the rising tide of cyberattacks—and recommendations on how to close the gaps to stay ahead.

September 2016

Intercompany accounting activity poses corporate risk
Insufficient accounting of transactions between various legal entities within an organization can lead to inaccurate financial reporting, yet just 9.2 percent of respondents to a recent Deloitte poll say their organizations have holistic, efficient and well-communicated intercompany accounting frameworks. That number drops to 7.7 percent for the 545 controllers who responded. Read more results of this poll.

SEC proposes to eliminate outdated and duplicative disclosure requirements
This issue of Heads Up discusses the SEC’s July 13, 2016, proposed rule, Disclosure Update and Simplification, which would amend certain of the Commission’s disclosure requirements that may be redundant, duplicative, or outdated, or may overlap with other SEC, US generally accepted accounting principles, or international financial reporting standards disclosure requirements.

Transforming the retained finance organization
Following a streamlining or centralization effort, finance organizations have a significant opportunity to execute value-added activities, such as analytics and business collaboration, and to become a true strategic partner to the business. Positioning the retained finance organization to become a stronger partner to the business requires addressing three key areas: capacity, capability, and collaboration.

Finance organizations provide broadening support for operations
Finance teams are providing support services for a broadening set of operational teams and business decisions, including those associated with mergers and acquisitions, competitive strategy, performance management and business planning, according to our latest quarterly CFO Signals survey. Further, respondents are reporting mostly positive outcomes for their finance organization models in terms of service quality and cost, finance talent retention, and process standardization. However, there appears to be significant differences across industries and between centralized and decentralized models.

The game-changing Brexit referendum
Brexit isn’t the first big surprise that organizations have had to manage. And it won’t be the last. In this interview, Deloitte Advisory’s Andrew Blau discusses the surprising result of the Brexit referendum, the broader lesson it provides for business leaders, and how to find opportunity amid disruption.

Back-to-school survey 2016: Shopping for the “easy A”
As summer comes to a close, parents must do their homework on the subject of back-to-school shopping. Our ninth annual back-to-school survey reveals the latest trends likely to impact spending in the 2016 school season. With school supplies, clothing, and backpacks at the top of the list, find out when and where consumers will shop, how much they will spend and on what products, how digital technologies will influence shopping behavior, and more.

August 2016

Financial reporting considerations related to the UK’s vote to leave the EU
The United Kingdom’s vote to depart from the European Union (EU) has given rise to a host of questions about the near-term and longer-term effects of Britain’s exit from the EU on an entity’s financial reporting. This publication discusses some of the considerations.

Front-office finance: How CFOs can create value through business partnering
With finance leaders being expected to help drive strategy and improve performance, many are looking to build or improve the finance function’s ability to be a “front-office” business partner. These teams are seeking to operate beyond traditional back-office roles to deliver value by understanding the needs of the commercial enterprise, acting as a cross-functional integrator and providing timely and insightful decision support.

Beneath the surface of a cyberattack: A deeper look at business impacts
The rippling effects of a cyberattack can last years, and an accurate picture of the true impact of an attack has been lacking. This publication helps executives understand what could be at stake so organizations can be better prepared.

Exploring the positive side of risk
Risk isn’t just about mitigation. Check out the “flip side” interview with Deloitte Advisory professionals who also see the positive side of risk and where potential, untapped value resides. Learn how viewing risk through a different lens can help you spot value-creating opportunities.

Disruption in the power and utilities sector: Managing strategic risks
There are two sides to uncertainty in the power and utilities sector: opportunities and risks. Both should be incorporated into an organization’s strategy. This publication discusses the transformative forces that are already impacting the industry and discusses considerations for your company to address and manage strategic risks.

Intraday liquidity survey
In an environment filled with increasing regulatory pressure, how well are banks complying with intraday liquidity standards? We surveyed 15 of the largest US bank holding companies and foreign banking organizations to find out. Learn more about the four key trends we identified.

Back to top

July 2016

Few are prepared to comply with new lease accounting standards
Just 9.8 percent of more than 5,400 financial and accounting professionals say their companies are prepared to comply with the new Financial Accounting Standards Board and International Accounting Standards Board lease accounting standards, according to a recent Deloitte poll. Moreover, only 15 percent of respondents expect compliance to be easy.

Resilient podcast series: Leaders on risk, disruption, and crisis
This new podcast series features conversations with CEOs, senior executives, and others on embracing risk and leading confidently in a volatile world. Hear interviews and personal stories about how they led through crisis, navigated through disruption, and managed through significant risk events.

M&A trends report: Is last year’s record pace sustainable?
Deloitte’s third annual survey of corporate and private equity executives indicates a strong year ahead for M&A deal activity. But respondents are also signaling caution—concerns about the global economy, interest rates, and the US election are high.

Mitigating fair value measurement risks: Data analytics in valuation and its effect on shareholder value
The use of data analytics is rapidly expanding in financial reporting among both businesses and regulators. Increasing market complexity, combined with ever-changing accounting standards, is driving companies to make strategic, forward-thinking choices about their operations and risk strategies. What do boards and senior executives need to know about the increased regulatory scrutiny? And what opportunities do analytics present for valuation?

Impacts of life sciences innovation on financial reporting
While breakthroughs in physics are helping to send a nanocraft to Alpha Centauri, closer to home the Internet of Things, artificial intelligence and material science advancements are transforming business models in the life sciences sector and changing financial reporting strategies, as well.

Retail talent disrupted: New rules for attracting, retaining, and developing talent
The digital revolution is forcing the retail industry into a time of unparalleled change. How can retailers attract, retain, and develop a workforce that meets the evolving needs of this marketplace? Deloitte’s research revealed five key findings, each highlighting the growing talent-related challenges in the retail marketplace.

Back to top

June 2016

A crisis of confidence: Board survey finds gaps between awareness of crisis threats and preparation to handle them
A recent survey conducted by Forbes Insights on behalf of Deloitte Touche Tohmatsu Limited finds that more than three-quarters of board members believe their companies would respond effectively if a crisis struck tomorrow. But less than half of their companies have taken steps to be truly crisis ready. This publication discusses the gap between real and perceived crisis readiness in the eyes of board members and the large companies they direct.

10 questions you should be asking: To embrace risk and lead confidently in a volatile world
How can you thrive amid uncertainty? What questions might you consider as you make strategic decisions in a fast-moving marketplace? This publication can help you determine whether you’re prepared for the next industry disruption, natural disaster, competitive attack, product recall, or activist investor.

The treasury yield curve explained: Factors shaping the curve
Several factors shape the treasury yield curve—monetary policy, inflation expectations, investor preferences, and macroeconomic influences from around the world.

Internal audit analytics: The journey to 2020
How can your internal audit function capitalize on available data to better address business issues and risks? By embedding analytics throughout the audit lifecycle and leveraging business insights to drive the audit process. This publication discusses how an analytics-enabled approach helps internal audit professionals ask the right questions, improve confidence in audit results, and identify the most appropriate actions. Please share this with your internal audit leader.

Allowance for loan and lease losses: The road ahead with the current expected credit losses (CECL) approach
The Financial Accounting Standards Board’s proposed ASU, Financial Instruments—Credit Losses (Subtopic 825-15), commonly referred to as the CECL model, is expected to result in an increase in allowance for loan and lease losses (ALLL) levels. Gain insight into effective CECL-ALLL implementation, which requires development of a unified strategy, a detailed execution plan, and proper governance.

Global powers of retailing 2016: Navigating the new digital divide
Deloitte Touche Tohmatsu Limited’s 19th annual report identifies the 250 largest retailers around the world based on publicly available data for fiscal 2014 (encompassing companies' fiscal years ended through June 2015), and analyzes their performance based on geographic region, product sector, e-commerce activity, and other factors. It also provides a look at the world's 50 biggest e-retailers and considers the impact technology is having on in-store shopping and retail industry business strategies.

May 2016

A roadmap to the preparation of the statement of cash flows
This publication provides insights into and interpretations of the accounting guidance on the statement of cash flows, primarily that in Accounting Standards Codification (ASC) Topic 230, Statement of Cash Flows. The body of this Roadmap combines the principles from ASC 230 with our interpretations and examples in a comprehensive, reader-friendly format.

Securitization Accounting–Tenth edition
Accounting plays a significant role in securitization and remains embedded in its evolving foundation. Read the tenth edition of our Securitization Accounting book for a roadmap that covers accounting, tax, and various regulatory changes impacting securitization and the overall markets.

10 questions you should be asking to embrace risk and lead confidently in a volatile world
Whether it’s a value-destroying crisis, a shift in industry dynamics, or a brand threat, uncertainty comes in many shapes, sizes, and impacts. Leaders who view uncertainty and risk more broadly than just compliance will anticipate better, seize opportunities, and emerge stronger. From inviting in devil’s advocates to war gaming, there are many ways to prepare—even if you don’t know exactly what’s around the corner.

21st century resilience: Getting it and keeping it
Are you ready for anything? As the threats we face in the 21st century grow in both volume and complexity, organizations need to be prepared to recover, replace, or rebuild critical business processes in the wake of disruption. This report discusses how executives can build an efficient and effective response to risks and threats.

Funds flow in academic medical centers: Moving toward a transparent and equitable funding model
Academic medical centers (AMCs) face significant pressures as external funding sources evolve and new regulatory standards emerge. AMCs must allocate resources in the most efficient and effective manner to ensure that resource allocations are closely aligned with the strategic objectives of the enterprise. This paper explains how effective implementation of a transparent and equitable funds flow model can help promote discipline and secure future sustainability.

Tech Trends 2016
Deloitte’s seventh annual Technology Trends report explores eight trends that illustrate ways that today’s chief information officers (CIOs) can shape tomorrow for every corner of their organizations. Read about the trends below, download the full report, explore our interactive tablet app, and share the information with your CIO.

April 2016

World-class controllership: Charting your course to success
As expectations of the role of chief financial officer (CFO) continue to shift to providing greater influence and involvement in the creation and execution of strategic imperatives, the CFO’s demands on controllership have expanded, requiring they become more proficient, effective and insightful to achieve world-class controllership.

Cost transparency: Helping finance create business value
Companies are under constant pressure to improve profitability and wring cost out of their business. They often struggle to understand their true costs due to complex issues rooted in the systems, processes, and capabilities across the enterprise. Learn how having good cost data can help drive profitability.

2016 global foreign exchange survey
How effectively does your corporation manage foreign exchange (FX) volatility? And how do you compare with your peers? To explore the impact, Deloitte UK surveyed more than 130 corporations from around the globe. Read the results which examine challenges, possible causes, and potential solutions related to managing currency risk.

Third-party assurance optimization: Value creation strategies for service providers
As companies step up their use of outsourcers for management of mission-critical operations and business processes, demand for third-party assurance (TPA) reporting is certain to increase. But these reports can be complex, and every customer has different requirements.

Insurance: 2015 Accounting and Financial Reporting Update
This edition summarizes notable developments and activities that occurred during 2015 and early 2016, including (1) the issuance of new guidance on short-duration insurance contract disclosures, (2) the FASB’s work on long-duration insurance contracts, and (3) the SEC’s continued focus on rulemaking, particularly in connection with its efforts to complete mandated actions under the Dodd-Frank Act.

March 2016

Analytics Trends 2016–The next evolution
As data and analytics continue to shape our lives in new and significant ways, what are the next big trends on the horizon? This publication describes six analytics trends to watch closely this year as analytics continues its momentum forward, shaping the future of business, society, and the human experience.

Facing (and embracing) strategic risks
Strategic risk is the next frontier of risk management, one that will generate a more nuanced conversation that allows participants to see the relationship between the risks that are sometimes imposed on them and opportunities for new business. This issue of CFO Insights discusses the barriers to recognizing and responding to strategic risks and outlines some of the tools available to help harness them.

The benefits and value of crisis simulations
More organizations are turning to crisis simulations to test their ability to respond to unexpected events. When these exercises are well planned and executed, they provide participants with a realistic sense of their roles and responsibilities during a crisis and help to reveal blind spots. Four organizations from different industries that have undertaken crisis simulations in recent years share lessons they’ve learned and benefits they’ve derived from the experience.

Talent dilemmas–What should you do?
Among the hardest decisions CFOs face are those pertaining to people. Time and again, new executives tell us that their biggest regret in their first year on the job was moving too slowly on talent issues. And longer-term finance chiefs know that not having the right people in the right seats may compromise the execution of their vision. While there are no simple answers to talent dilemmas, identifying and understanding critical trade-offs and having processes to address them may lead to better resolutions. This CFO Insights article discusses three talent situations that can disrupt your team and offer approaches to consider.

February 2016

Cleaning up the mess under the bed: Why intercompany accounting is increasing corporate risk
Countless organizations struggle with the time-intensive requirements of managing intercompany accounting (ICA) programs, which are often inefficient and frequently neglected. Is yours among them? This publication offers a fresh approach to this long-ignored issue by examining the root of the problem, the need for a collaborative approach among the key stakeholders, and providing a framework that helps visualize ICA as an interconnected, independent, end-to-end process. And in a related matter, read the results of our intercompany accounting and process management survey.

Putting current expected credit losses (CECL) into perspective: Fundamentals of implementation success
This is the second in a series of publications that highlight our point of view about the significance of the FASB’s Proposed Accounting Standards Update, Financial Instruments—Credit Losses, and its impact on allowance for loan losses. Download the publication to explore more about the proposed CECL model and anticipated implementation challenges, as well as some ways organizations can use CECL model implementation as a catalyst to help align accounting impairment and regulatory capital processes.

How treasury can help identify hidden FX exposures
With the dollar’s renewed strength against other major currencies, organizations are facing functional pressure to address related risks, including foreign exchange (FX) exposure identification and visibility. Currency exposures can hide in plain sight on a company’s balance sheet and within various intercompany transactions. As a result, organizations may want to consider seven areas of focus to help identify and address FX risks, including disparate treasury systems, inconsistent accounting, and a lack of standard processes.

Cybersecurity and the role of internal audit: An urgent call to action
In the ongoing—and escalating—battle of managing cyber risk, your internal audit function plays a critical role: providing an independent assessment of needed controls, and helping the audit committee and board understand and address the diverse risks of the digital world. This report offers insights into internal audit’s role as the third line of cyber defense and outlines a cybersecurity assessment framework built on Deloitte Advisory’s Secure.Vigilant.Resilient.™ approach. Please share with your internal audit colleagues.

Accounting roundup–year in review 2015
This publication provides information about new standards and exposure drafts; other key developments in accounting and auditing, including governmental issues, regulatory and compliance developments, and appendices that cover the current status of FASB projects; significant adoption dates and deadlines; and a glossary of standards and other literature, among other resources.

January 2016

Extended enterprise risk management: Driving performance through the third-party ecosystem
In a globalized business environment, no company is an island. As the extended enterprise reaches farther, and becomes more complex, companies acknowledge the need to manage their exposure to the actions of third parties in a strategic manner. This publication provides perspective on the next logical steps that can be taken to establish an extended enterprise risk management program or move your existing risk-management practices to the next level.

Creating an effective communications program
When taking on a new role, it is important to quickly establish or elevate your communications program. Given the complexity of modern multinational organizations, the number of stakeholders to connect with, and the competition for attention, it is essential to execute a disciplined communications program to get critical messages to certain stakeholders without being drowned out by the noise or lost in translation. In this issue of CFO Insights, we introduce a simple model to help finance chiefs create and execute a disciplined communications program that aligns to their core objectives.

A new understanding of Millennials: Generational differences reexamined
Millennials are widely thought to be less loyal to their employers than their older colleagues. But a look at the numbers suggests that many of the traits attributed to Millennials are related to prevailing economic conditions rather than to fundamental differences in their aspirations.

Financial services industry: Accounting and financial reporting updates (2015)
Issued as four sector-specific publications, each highlights selected accounting and reporting developments applicable to entities in each of the following financial services industry sectors: Banking and Securities, Insurance, Investment Management, and Real Estate. Among other topics, the publications discuss (1) notable standard-setting activities that occurred during 2015; (2) the FASB's continued work on the accounting for financial instruments, consolidation, and leases; and (3) the SEC’s continued focus on rulemaking, particularly in connection with its efforts to complete mandated actions under the Dodd-Frank Act.

December 2015

Updates on leases standard
The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) have met to discuss certain sweep issues, i.e., potential operational issues that resulted from an external fatal flaw review of the final standard. Redeliberations of the final standards have been completed. The IASB has indicated that its final standard (to be issued as IFRS 16) will be issued by the end of the year, with an effective date of January 1, 2019. The FASB stated that its accounting standards update (that will be codified as ASC 842) will be effective for public business entities for annual periods beginning after December 15, 2018 (i.e., calendar 2019). For all other entities, it will be effective a year later. Read our journal entries for more detailed information. IASB update | FASB update

SEC comment letters: Including industry insights–Ninth edition
This latest release in our SEC comment letter series includes extracts of frequently-issued Securities and Exchange Commission (SEC) staff comments; statistics identifying the top 10 topics addressed in SEC comment letters during the 12 months ended July 31, 2015; recent topics of focus related to MD&A, financial statement accounting, and other disclosures; appendixes offering insights into past SEC comment letter trends; the SEC staff’s review and comment letter process; insights for managing and resolving SEC comment letters; and helpful tips on searching the SEC’s comment letter database.

Capitalizing on the promise–and the power–of the Internet of Things
Over the last 20 years, the Internet has been nothing short of transformative. And judging by the numbers, the Internet of Things (IoT)—a suite of technologies and processes that allows data to be tracked, analyzed, shared, and acted upon through ubiquitous connectivity—may have the same impact in half that time. In this publication, we examine how the IoT can influence business models both in terms of cost saving and asset efficiency and in driving top-line growth. In addition, we discuss the components of an effective IoT strategy and the metrics needed to truly embrace how the IoT is attracting and engaging customers.

Risk Sensing: The (evolving) state of the art
Risk Sensing—using human insights and advanced analytics capabilities to identify, analyze, and monitor emerging risks—has become a key component of many organizations’ arsenals for managing risk. In fact, 81 percent of respondents to a recent survey say their companies leverage risk sensing tools, but do those capabilities go far enough to mitigate risks?

Back to top

November 2015

Allowance for Loan Losses: Staying ahead
There continues to be an increased level of scrutiny on the estimation of a financial institution’s Allowance for Loan Losses (ALL). This point of view discusses the complexities associated with operationalizing the accounting and regulatory requirements related to your ALL, and the steps you should start to take prior to implementing the Financial Accounting Standards Board’s (FASB) new credit impairment model (i.e., the Current Expected Credit Losses (CECL) model).
Read more | Download PDF

Ignoring bad news: How behavioral factors influence us to sugarcoat or avoid negative messages
People will often ignore or even distort the information they collect when it is “bad news.” How does this impact organizational learning and performance—and what, if anything, can or should businesses do about it?
Read more | Download PDF

Crisis leadership: Five principles for managing the unexpected
Companies today face many potential crises and most have some type of crisis management plan to deal with them should they arise. Have these plans been tested? What if there are unknown gaps in the plan? In this article, Deloitte leaders discuss the different types of crisis an organization can encounter and principles for managing them.
Read more

CFO SignalsTM: 2015 Q3 Results
Deloitte LLP’s 2015 Q3 North American CFO Signals survey displays strong concerns by CFOs about the impact of slowing Chinese growth on North America. Consequently, their growth expectations have not significantly rebounded and have worsened in some cases.
Read moreDownload PDF

October 2015

In the heat of corporate crisis: Mind over matter
People are prone to making poor decisions; that’s simply how humans are wired. But in the midst of a crisis, the wrong decision can be critical. This publication taps into behavioral science to learn why individuals and organizations sometimes fail to recognize the road to a crisis. It also offers techniques for counteracting cognitive impediments that can make a bad situation worse.

Unlocking the secrets of employee engagement
After decades of corporate discourse about the war for talent, it appears that the battle is over, and talent has won. Employees today tend to have increased bargaining power, the job market is highly transparent, and attracting top-skilled workers is a highly competitive activity. In this issue of CFO Insights, we discuss how the traditional employee-work contract has changed and why companies should embrace the shift needed to become irresistible.

Getting the Right People in the Right Seats
Having the wrong people in critical positions can cost executives valuable time and their credibility as a leader. Learn key questions executives can use to help identify where they may have to replace key staff, reassign staff to other roles, or invest in training and coaching, and why getting the “right people in the right seats” is likely to free up time for the truly important issues.

Managing reputational risks across the enterprise
Too often, managing reputational risk is a task left for individual functions, without a unified channel to the board and C-suite executives. Social media, however, is creating an imperative for many organizations to take a consistent, broader and strategic approach to managing reputational issues, starting with a fully dedicated chief risk officer (CRO). Henry Ristuccia, Deloitte Advisory partner in Deloitte & Touche LLP, and Global Governance, Regulatory and Risk leader, DTTL, discusses the importance of viewing reputation as an asset that contributes value and what the C-suite can do to protect it.

Back to top

September 2015

FASB confirms decision to defer effective date of new revenue standard by one year
This Heads Up publication discusses the Financial Accounting Standards Board’s recent decision to reaffirm the guidance in its April 2015 proposed Accounting Standards Update (ASU), Revenue From Contracts With Customers (Topic 606): Deferral of the Effective Date, which defers for one year the effective date of the new revenue standard (ASU 2014-09) for both public and nonpublic entities reporting under US generally accepted accounting principles and allows early adoption as of the original effective date. (Additional information is found in this TRG Snapshot.)

Truths and consequences: Four drivers of change that threaten business as usual
Four new “truths” of the marketplace have combined to make what was once difficult, expensive, and complex now easy, cheap, and simple. Together, they’re lowering barriers to entry and increasing the likelihood of new competition—and business model disruption—for incumbent firms. This publication describes the trends behind the headlines to help your organization manage not just the threats to day-to-day operations, but the even more dangerous strategic risks that can potentially disrupt your business and your industry.

Business ecosystems come of age
It might be tempting to dismiss “business ecosystem” as another management buzzword, but the concept’s uptake points to a utility not to be underestimated. Deloitte’s latest Business Trends report explores how forward-looking leaders and organizations can thrive in a world of ecosystems.

A theory of relativity: Setting priorities and goals for financial performance improvement
Improving financial performance means asking at least three questions. Unfortunately, many managers answer them using assessments of relative performance. Instead, the focus should be on adopting a method that measures a company’s relative performance, sets targets, and estimates the probability of achieving specified targets over different time periods.

Back to top

August 2015

The cost of IT shared services: Shedding light into the black box
If you are looking at your organization’s operating models to better understand operating costs and the value that support services—like an IT shared service center—bring to the organization, you’ll want to read this paper before you do anything else today. It presents leading practices for consideration to improve the quality and transparency of the information provided to business unit owners on their allocated IT shared services costs.

Zero-based budgeting: Zero or hero?
A company wiping its financial slate clean and starting from scratch sounds like a nightmare. But some companies are doing just that—and seeing the value. What exactly is zero-based budgeting and could it work for your organization? Read this article to explore the advantages and disadvantages of this extreme method.

Cyber risk: Issues and opportunities for private companies
While most recent high-profile cyber attacks have targeted major organizations, all companies, regardless of size, must operate with the assumption that cyber attacks will happen to them. A distinct opportunity is emerging for private and middle-market companies that direct their innovation efforts toward cyber security, leveraging a risk-based approach.

M&A Trends Report 2015: Our annual comprehensive look at the M&A market
According to the findings of the Deloitte 2015 M&A Trends Report, an overwhelming majority of the 2,500 surveyed executives at US corporations and private equity firms expect the robust pace of mergers and acquisitions to extend—or even accelerate—into 2015. This momentum is expected across the board, in private and public businesses, in multiple industry sectors, in companies and private equity firms large, small, and in between.

Back to top

July 2015

Overhauling Finance Operating Models for More Effective FP&A
As finance teams expand their support to others within the broader organization, it’s important for CFOs to make sure the structure is in place to operate effectively in an outward-facing role. This Wall Street Journal CFO Journal article discusses the importance of having the appropriate structure in place in functional areas such as financial planning and analysis (FP&A).

Better break-ups: The art of the divestiture
In their continuing efforts to unlock greater shareholder value from portfolio realignment, many organizations are increasingly turning to spin-offs, which create new public companies out of existing business units. While the transactions may be logical in concept, they are rarely easy in execution. This publication looks at four lessons to consider when separating an entity and how to get it right the first time.

Unmasking insider threats
As workplaces become more complex and insider threats become more difficult to detect, a program to mitigate those threats can bolster deterrence by providing an early-detection and response mechanism. This publication outlines actions to consider when designing, building, and implementing a formal insider-threat mitigation program.

Crisis leadership: Guiding the organization through uncertainty and chaos
The timeliness and effectiveness of an organization’s response in crisis often determines how it fares afterward. Learn how front-loading a crisis management approach with a strong emphasis on readiness and preparation can help you stay ahead of potential threats. And be ready should crisis strike.

Back to top

June 2015

Heads Up—FASB proposes to defer the new revenue standard for one year
On April 29, 2015, the Financial Accounting Standards Board (FASB) issued a proposed accounting standards update (ASU) to defer for one year the effective date of the new revenue standard (ASU 2014-09) for public and nonpublic entities reporting under US generally accepted accounting principles. Comments on the proposed ASU are due by May 29, 2015.

Cyber war-gaming: Prepare for the unexpected
How would your company respond in the event of an internal or external data breach? What are the sequential steps needed in response to an attack? What are the key departments/managers/executives to involve? How quickly you can answer these questions is often an indicator of your organization’s ability to respond with appropriate measures in the event of an attack. Find out about testing your company’s reflexes when it comes to cyber-attacks.

Audit Committee Brief
The latest issue of the Audit Committee Brief highlights various topics including: the Financial Accounting Standards Board (FASB) tentatively defers new revenue standard; a report from the Institute of Internal Auditors and the Center for Audit Quality tackles how to enhance interactions among the internal and external auditors and the audit committee; the audit of the future; the Public Company Accounting Oversight Board (PCAOB) speech that emphasizes important roles of internal audit and the audit committee; an update of Deloitte’s Audit Committee Resource Guide; the PCAOB updates its standard-setting agenda; and the FASB amends its consolidation model.

Currency risk a growing concern: CFO Signals survey
The strength of the US dollar raised concerns among CFOs according to Deloitte’s latest CFO Signals™ survey. Although a substantial proportion of surveyed CFOs said they do not have significant currency exposure, quite a few reported becoming more deliberate about their hedging strategies.

Back to top

May 2015

Finance operating model: Stop thinking near-term efficiency to help realize long-term value
Many finance organizations across various industries are being asked to provide more insights and proactive decision support while reducing costs. The order of the day seems to be to do more with less. In response, many business leaders seek new operating models to tackle the dynamic marketplace.

Are your conversations strategic?
Increasingly, many finance executives strive to be seen as strategic. However, making strategic decisions isn’t particularly suited for today’s frequently over-structured meeting formats. The process calls for a more thoughtful approach, with the right input, players and environment. Learn the what, when, why and how of having strategic conversations, and some leading practices for making decisions stick.

Post-merger integration report 2015: Putting the pieces together
This survey report focuses on the post-merger integration phase of the merger & acquisition (M&A) lifecycle, sharing the views of 800+ executives. The report dives into what drives successes, what foils deals, and what companies can do to increase the likelihood that their deals are successful. Additionally, the survey report reveals findings and success factors around synergies, integration readiness, organization, operating models and communication.

Focus on: Making crisis simulations matter
A crisis can potentially make or break your career. Are you confident that you and your organization can manage a crisis? Learn more about the importance of crisis simulations, how to manage a maturity-based approach, insights for getting started, and examples of simulations in action.

Back to top

April 2015

Finance operating model: Stop thinking near-term efficiency to help realize long-term value
A longstanding trend is outsourcing or creating shared service centers or centers of excellence for finance functions. Making this move is generally driven by the need for scale or productivity efficiencies that can translate into real, near-term cost reductions. These initiatives often take time, investment, and considerable organizational focus to realize the savings. To help unlock the full value of the retained organization, three key dimensions should be considered: capacity, capability, and collaboration.

The journey to exceptional performance
When it comes to corporate financial performance, we typically think in absolute terms, measuring ROA in percentage points. We are less accustomed to thinking of corporate performance in relative terms, but knowing a company’s relative performance is essential to setting and achieving performance improvement targets and, eventually, exceptional performance.

How CFOs Can Advance Their Organization's Innovation Agenda
Innovation is not a choice but a strategic necessity for companies, says John Levis, global chief Innovation officer and regional managing director, Americas for Deloitte Touche Tohmatsu Limited. Mr. Levis describes how innovator companies work to avoid the high failure rates that plague many organizations and explains how CFOs can help advance their organization's innovation agenda while managing the investment risk that comes with it.

Integration report 2015: Putting the pieces together
This report focuses on the post-merger integration phase of the merger & acquisition (M&A) lifecycle, sharing the views of 800+ executives. One interesting finding: 16.9% of allocated time is for finance activities. The report also dives into what drives successes, what foils deals, and what companies can do to increase the likelihood that their deals are successful ones.

Back to top

March 2015

Collateralized loan obligations
This publication provides an overview of the collateralized loan obligation (CLO) market, its participants and their roles, and a discussion of the accounting, tax, and regulatory rules and laws impacting their investment and role.

Analytics trends 2015: A below-the-surface look
Analytics momentum continues to grow, moving squarely into the mainstream of business decision-making worldwide. Put simply, analytics is becoming both the air that we breathe – and the ocean in which we swim. Take a below-the-surface look at eight significant analytics trends to watch this year.

COSO in the cyber age
Released by The Committee of Sponsoring Organizations of the Treadway Commission (COSO), in collaboration with Deloitte & Touche LLP, this report provides direction on how COSO’s Internal Control-Integrated Framework can help organizations effectively and efficiently evaluate and manage cyber risks.

2014 Global Outsourcing and Insourcing Survey
Read the survey results, which indicate that outsourcing as a business practice continues to see growth across all functions surveyed.

Back to top

February 2015

2015 Global Corporate Treasury Survey
More than 100 top corporations from around the globe–representing a wide array of global scales, industrial footprints and geographic headquarters–participated in this biannual survey. Click through to read key insights and make sure to forward the information to your company’s treasurer.

The Strategist CFO: Four orientations for engaging in the strategy process
CEOs and boards increasingly want CFOs to not only deliver a finance organization that gets the numbers right, but also partner with them in shaping the company’s strategy. But when asked what they want from a strategic CFO, their answers vary widely. This article explores the scope of a CFO’s role and means of involvement in the strategy process.

Global Economic Outlook: Q4 2014
The global economy continues to show a few signs of strength amid several signs of weakness. The greatest strength appears to be in the US economy; meanwhile, big emerging markets are mostly struggling to recover from a series of troubles, some self-inflicted, that have caused a marked slowdown in growth.

CFO Signals™: 2014 Q3 Results
While CFOs have been mostly optimistic about the trajectory of the global economy and their own companies’ prospects over the past year, their expectations for sales, earnings, investment, and hiring have been on a mostly downward trend. This quarter’s findings seem to make the strongest case yet for the sustained economic acceleration that has previously been so elusive.

Back to top

January 2015

The Strategist CFO: Four orientations for engaging in the strategy process
CEOs and boards increasingly want CFOs to not only deliver a finance organization that gets the numbers right, but also partner with them in shaping the company’s strategy. But when asked what they want from a strategic CFO, their answers vary widely. This article explores the scope of a CFO’s role and means of involvement in the strategy process.

Global Economic Outlook: Q4 2014
The global economy continues to show a few signs of strength amid several signs of weakness. The greatest strength appears to be in the US economy; meanwhile, big emerging markets are mostly struggling to recover from a series of troubles, some self-inflicted, that have caused a marked slowdown in growth.

CFO Signals™: 2014 Q3 Results
While CFOs have been mostly optimistic about the trajectory of the global economy and their own companies’ prospects over the past year, their expectations for sales, earnings, investment, and hiring have been on a mostly downward trend.This quarter’s findings seem to make the strongest case yet for the sustained economic acceleration that has previously been so elusive.

Back to top

December 2014

Heads Up: SEC staff suggests ingredients for effective disclosures
This issue discusses the SEC staff's thoughts and recommendations on steps registrants can take in the near-term to help improve disclosures and put better information into investor's hands. Relevance, applicability, and materiality are considerations for registrants before adding disclosures to their filings.

Using predictive analytics to improve capital allocation and other business decisions
In this Wall Street Journal CFO Journal article, Tom Davenport, a senior advisor to Deloitte Analytics and the President's Distinguished Professor of Information Technology and Management at Babson College, and Greg Swinehart, global and US analytics leader for Deloitte Financial Advisory Services LLP, discuss four areas where CFOs should be focusing their analytics efforts.

Global economic outlook: 4th Quarter 2014
The global economy continues to show a few signs of strength amid several signs of weakness. The greatest strength appears to be in the US economy; meanwhile, big emerging markets are mostly struggling to recover from a series of troubles, some self-inflicted, that have caused a marked slowdown in growth.

Back to top

November 2014

CFO Signals™: What North America’s top finance executives are thinking – and doing
When asked how confident they are in their direct reports, CFOs generally express confidence in the capabilities of their staff, but Controllers rank the highest with more than 60% of the CFOs surveyed indicating they have very good confidence in the Controllers effectiveness.

Heads Up: Challenges and leading practices related to implementing COSO’s Internal Control – Integrated Framework
This publication outlines the implementation process and current challenges many companies are facing, along with providing additional insight on how to leverage the framework for operational and regulatory compliance purposes.

The SEC’s Social Media Guidance: Issues and Risks to Consider
More than a year since the Securities and Exchange Commission released guidance on disclosing investor information using social media sites, many companies remain uncertain about potential compliance risks. This article discusses the potential compliance risks companies may face and strategies to consider for mitigating some of the uncertainty.

The cash paradox – How record cash reserves are influencing corporate behavior
Financial conservatism served companies well in the downturn but in an economic recovery may be dragging many companies into a vicious circle of cash accumulation at the expense of investment in growth. New research suggests markets are more rewarding of companies spending astutely in the pursuit of growth.

Back to top

October 2014

Revenue recognition from an industry perspective
Check out the Spotlight documents to learn how the final standard for revenue will likely impact your industry.

Compliance programs: What separates "good enough" from "great"?
This issue of CFO Insights looks at the building blocks of a world-class compliance program that not only protects an organization from internal and external threats, but also enhances its brand and strengthens its relationships with multiple stakeholders.

Ten types of analytical innovation
This article outlines 10 types of innovation that can be driven, supported, or measured with analytics. If you're not using analytics for all ten types, you may not be optimizing your analytical capabilities.

Moving to the cloud? Engage internal audit upfront to manage risks
Positioning the internal audit function at the forefront of cloud implementation and including it in discussions with business units and IT can help address potential risks.

Back to top

​September 2014

Did you find this useful?