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The article discusses the implications of the accounting-related swindles and scams that continue to take place in Canada. It is asserted that investors are still at risk of becoming victims of such scams due to the lack of a national securities regulator in the country. David Brown, the newly appointed chair of the Ontario Securities Commission (OSC), has announced that the commission needs to develop more effective screening procedures to identify sophisticated uses of financial performance enhancers in accounting.

The article focuses on five ways to safeguard savings from unscrupulous managers and misleading financial statements. Before investing in any firm, force yourself to read completely the company's quarterly and annual financial statements, including all the notes and the management discussion and analysis. That may seem obvious, but discipline is required to work with financial statements, because the accounting terminology can seem foreign and the concepts confusing. However, the payoff will be worth it, because quite often the competence and integrity levels of management are on paper right in front of you. Watch out for too-good-to-be-true situations. Look for inexplicable changes in numbers from quarter to quarter. Be careful who you trust. Watch for specific accounting games and poor financial statement disclosures. Some of the shenanigans we are likely to see in 2005 include the manipulation of income and EBITDA through: understated pension expenses; the juggling of tax asset valuation allowances; restructuring charges; lowball stock option expenses; delayed writedowns of goodwill, intangibles and long-lived assets; overstated revenues; hidden one-time gains; and expenses that are transferred to the balance sheet as assets. Look out for executive compensation schemes that base management performance bonuses on slippery accounting figures.

The article comments on Canada's behavioural approach to the regulation of investments, pensions and retirement savings. The appointment of Doug Hyndman to handle the establishment of Canada's new national securities regulator is considered as one of the latest step back committed by the government. The author suggests that what investors need is tougher securities enforcement to protect their savings, which does not bode well to Hyndman and advocates of principles-based regulation.

The article reports on the decision of Canada to implement International Financial Reporting Standards (IFRS) in roughly 18 months. In contrast, the U.S. admitted that it will take 10 to 15 years before it adopts IFRS due to the fact that it poses big potential problems for investors, which might serve as a shock to Canadian investors. Among the disadvantages of IFRS is the deletion of several needed prohibitions that exist in current Canadian accounting.

The article compares the economic regulation of the United States to that of Canada. The author points out that, while U.S. Treasury Secretary Timothy Geithner has introduced a plan to rebuild the country's regulatory policy, Canada has done little to improve its economic regulations. The U.S. defers larger issues to its Securities and Exchange Commission (SEC), while Canada allows auditors to control accounting oversights, which can lead to a conflict of interest.

This article discusses the potential economic impact of the adoption of International Financial Reporting Standards (IFRS) in Canada. Issues relating to the adoption of the IFRS are presented in terms of the complications encountered by companies switching to the system in Europe and Australia. The authors hypothesize that auditors in Canada decided to adopt the IFRS because of the potential for revenue generation in a switch between accounting systems.

The article examines why Canadian legislators assign the majority of securities enforcement and regulation to self-regulatory organizations (SROs) and ad hoc committees. The problem of asset-backed commercial paper being linked to poor investments that required individuals to seek short-term loans is discussed. It is also attested that the International Financial Reporting Standards (IFRS) is guilty of mistreating investors due to conflicts of interest.

The author reflects on the securities regulation industry in Canada, and, in light of a Canadian panel charged with examining the regulatory process, indicates the need for a complete overhaul of the process. He believes that Canadian pensioners are losing money due to lax regulatory enforcement. Also discussed is a regulatory framework based on principles.

This article presents the author's perspective on accounting and securities regulations in Canada. He contends that the present regulatory and investigative system is not working. He is critical of the switch to the International Financial Reporting Standards, which reduces oversight and the ability of Canada to set its own rules.

The article discusses the possibility that Canada will switch to using the International Financial Reporting Standards for reviewing public companies. It is suggested that such a move will hurt investors. Bad loans, variable interest entities, and revenue recognition will not be reported clearly under the new guidelines.

This article reports on personal tax rates in Canada and how regulatory enforcement could protect investors' money. Accounting oversights, manipulations, and trickery result in long-term losses and unnecessary taxes. The article discusses the Canadian government's panel on securities regulation and financial reporting, as well as the impact of these problems on retirement accounts.

This article reports that Canada is planning on changing to the International Financial Reporting Standards (IFRS) beginning in 2011. The author discusses the effects of this change, including what will happen to book values and return-on-equity ratios. It is noted that many investment managers seem not to know about the switch and this concerns the author. He says that they need to begin to develop a strategy to deal with the change.

The author offers opinions on government regulation on the financial services and securities industries in Canada. The actions of the both the private and public sectors in that country are seen as an insufficient deterrent to securities fraud and other white collar crimes. Provincial securities commissions are said to have been far too lenient in investigating and prosecuting cases of securities fraud.

The article discusses that a financial crisis in Canada has begun because non-bank asset-backed commercial paper has become illiquid in the amount of about $7 billion Canadian dollars. Investors are unable to get their money out for use causing major write-downs. No new investors are stepping up to allow rollover to occur and more paper to be issued.

An editorial is presented discussing advice for investing in private companies. Financial statements fraud is easier in private companies, and majority shareholders can manipulate earnings to the disadvantage of minority owners. Minority owners might not receive fair compensation if management decides to sell the company.

This article discusses illegal insider trading in U.S. capital markets. It has become commonplace to see profiting at the expense of another due to a corporate merger, acquisition, or other significant event. The author suggests that executives should be held responsible for target stocks that move prematurely ahead of acquisition announcements.

Focuses on the accounting methods used by companies in the so-called New Economy. How the use of innovative financial reporting methods can mislead investors; Topic of non-repetitive versus continuing activities and stock value multiples; Suggestion that investors learn to separate figures on an income statement to accurately assess a firm's performance; Explanation of the financial statement of Ballard Power Systems Inc., which follows Canadian GAAP, or generally accepted accounting principles.

Focuses on accounting practices in Canada which make it possible for companies to make their financial statements look better than they are. Example of BioChem Pharma Inc. which created CliniChem Development Inc. to handle its research; Loss in the shares of CliniChem which is not reflected in BioChem's financial statements; Opinion that investors should not rely solely on accounting numbers when choosing stocks.

The author reflects on the state of the Canadian investment sector from 2000 to 2010. He describes how investors lost money due to two disastrous market meltdowns and the liquidity crunch. He comments on the poor performance of Canada in terms of providing protection to investors. The author also argues that investors, portfolio managers, and the Canadian government did not learn lessons from the market meltdown as no changes were made.

The author emphasizes the need for investors to correct the way in which they value large Canadian stocks. He cites a research finding which shows that correcting for accounting inequities can eliminate anywhere from 3 percent to 21 percent of the stock value of a company. He cites several factors that must be examined by investors such as capitalized costs. The manner in which capitalized costs can be examined with several companies, including CAE and Canadian Pacific Railway, is discussed.

The article discusses fraudulent accounting practices in which business enterprises engage during financial crises. A mnemonic device provided by the author for these tricks is CHOICE, which stands for Capitalized expenses, Hidden asset Impairments, Off-balance-sheet liabilities, Inflated revenue, Cookie jar liabilities, and Executive compensation.

The article discusses Ponzi schemes and hedge fund manager Bernie Madoff. The major difference between an unsustainable investment Ponzi where cash distributions exceed income and the Madoff fraud is legal disclosure. The Ponzi-like income trust and the Ponzi-like effects in some accounting rules are mentioned.

The article discusses the impact that the economic conditions in 2009 have had on pension funds. Pension plan deficits which have occurred due to decreases that have occurred in the value of many plans and the increase liability faced by pension plans are discussed. Regulations that govern pension plan asset values are mentioned.

The article reports on international finance reporting standards (IFRS). European lawmakers have changed IFRS in that companies will no longer have to report economic reality on financial statements. This allows companies to defer the recognition of some losses provided assets are marked to market and fair-value based.

The article discusses the problems associated with Canadian investors using a company's reported cash flow figures to make decisions on investments. The recommended valuation technique focuses on both cash flow and earnings, allowing room for pensions or other information buried within income statement figures. Multiple valuation approaches are preferred.

This article reports that the U.S. Securities and Exchange Commission may impose a fine of $100 million on Nortel Networks Corp. for the alleged accounting fraud that has been going on for the past few years. Nortel will not be fined by the Ontario Securities Commission because it is paying $1 million towards the cost of the investigation.

The article presents an analysis of companies and investors who are attracted to high cash distribution yields. Examples of companies that operate with unearned cash and non cash income are provided. The article warns these types of investments can be extremely risky and rely on out pacing their cash flows. The companies covered are Aeroplan Income Fund, Brick Group Income Fund, and Home Equity Income Trust.

The article presents advice on what investors should look for before they buy stock in a company. The author says that in the aftermath of income trust drubbing, people should be wary of where they put their money. He warns of the green trap, or when investors put money into environmentally friendly companies that are not feasible. He uses the examples of Ballard Power Systems Inc. and Hydrogenics Corp. to illustrate his point.

An article giving advice to Canadian investors is presented, focusing on cash flow statements from a company. The author says that the cash flow statement has three sections, financing, investing, and operations. He then goes on to show how each section can be manipulated to mislead investors with short-term and long-term timing adjustments.

This article discusses tips in protecting investors from misleading financial statements. The author states that the article wouldn't be necessary if underwriters, accountants, lawyers, and regulators would stop promoting misleading figures. The article then discusses five steps the author considers essential in protecting Canadian investors money.

The article discusses income trusts as investment products. The author details the reasons that income trusts, which are becoming highly regulated by the Canadian government and will soon be extinct, are inherently deceptive investments, as they often trade at several times reported earnings through complicated cash reporting.

The article discusses stock analysts and their stock recommendation practices. A report from the Investment Dealers Association of Canada (IDA) states that analysts actually project the opposite when evaluating a stock. The IDA report also states that analysts can be penalized unless their prediction timing is precise. The IDA suggests that in order to avoid research bias, stock exchanges should take the reins so investors know how their brokers are rated.

The article discusses the negative aspects of income trusts, whether they are taxed or untaxed. With many income trust, investors are being fed excessive, unearned distributions that stretch cash reserves or underlying companies. Income trusts are also subject to overevaluation due to lax finacial reporting, and cause more of a price premium than a tax advantage.

The author examines and compares the way corporate spying is handled in the United States and Canada. Patricia Dunn of Hewlett-Packard was accused of corporate spying in the United States, and Clive Beddoe of WestJet Airlines was accused of corporate spying in Canada. Dunn faces felony charges in California, while Beddoe made a settlement with the accuser for $15.5 million dollars. The author states his disdain for corporations in Canada not being harder on corporate spying.

The article focuses on problems Canadian investors have and have had with the security of their investments due to the actions of securities regulators and auditors within their country. An attempt to mislead Canadian investors which came from the Institute of Chartered Accountants Ontario (ICAO) is discussed.

The article discusses a brief history of investor protection in Canada and the country's inept regulation practices. During a recession in the early 1980's, many businesses struggled for capital and relied on accounting tricks to cover losses. The 1990's also brought a period of financial chaos where many companies filed for bankruptcy, such as Livent and Standard Trust. The Canadian Securities Administrators issued a disclosure review regarding Canadian income trusts and found over 80 percent needed improvement.

The article discusses corporate goodwill, which the author defines as the amount a company pays for another in a merger that is higher than the actual value of the acquired corporation's assets. The author warns investors to examine their investment portfolio for companies that have a significant portion of the value of their company in goodwill.

The article reports that Canada has done little to improve its financial reporting rules since the Enron scandal broke in 2001. Due to lobbying by the financial services industry, auditors are not held accountable for the results of their audits. Nor has the Canadian Accounting Standards Board done anything to improve the accessibility of income trust financial statements.

The article discusses funding gaps in company pensions. While these problems are often buried in company financial statements, under-funded pensions can have an impact on valuation and share prices. The article gives the example of under-funded pensions at Bombardier, Inc., which is considered an off-balance-sheet obligation and is thus not seen by most investors examining the company's financial reports.

The author comments on regulatory problems in the capital markets in Canada. He mentions the decision by the Canadian Securities Administrators, which would require all publicly traded companies in Canadian jurisdictions to report on the effectiveness of their internal controls on financial reporting. The decision eliminated an earlier requirement that companies obtain an audit opinion from external auditors with respect to management's evaluation of the effectiveness of such reporting.

The article presents the author's view on the state of investor protection in Canada. According to the author, financial regulators are not doing a good job of preventing people lying to get regular investors' money. The author calls for regulatory and legislative reform in Canada's capital markets. He suggests making auditors legally responsible if they approve bogus financial statements.

This article presents a satirical description of an investment scheme where an investor buys a company with a plan to fix the accounting books to make it look more valuable than it is, turn it into an income trust, and then sell it for a profit. The author is making fun of the ambiguity of Canadian laws and regulations that make such a scenario possible and profitable without fear of criminal prosecution or civil liability.

This article comments on the Canadian securities market. The primary goal of the Canadian markets is apparently to give investors the impressions of safety and fairness, without necessarily delivering the same. Several regulations are enacted not to police and prosecute wrongdoers, but to give the facade of wholesome protection. According to David Wilson, chair of the Ontario Securities Commission, they must build trust without undue burden. When attempting to balance conflicting interests, the scale gets tilted in favor of those with the most lobbying power.

The article reports that there is little investors can do to reclaim their losses from business income trusts. Despite several warnings about business income trusts that have appeared in this space over the past two years, many investors have lost piles of money and are probably wondering if there is anything they can do to reclaim their losses. Many business trusts have dropped in value from their initial public offering price. The benefits to investors of class-action laws are often more illusory than real.

The author warns against brokers who recommend income trusts underwritten by their own banking firms. The start of most bad investments is bad research on the part of the investor. Bad research isn't about making some mathematical mistake; it usually stems from relying on someone else to do your homework. The author's advice to individual investors is to stop paying the fox to guard your chickens. Given the evidence, it is high time investors stopped listening to the underwriters who take in roughly five percent of the issue price of every new trust IPO.

The article mentions performance measures used by Canadian businesses to make themselves appear more profitable than they are. Companies have been able to influence investors with pro forma profit figures, which are not as reliable as other accounting measures. Distributable cash for some income trusts is simply the before-tax profits. Aeroplan Income Fund has a method for calculating its distributable cash that delays expense recognition.

Comments on disclosure in the Canadian securities industry. View that the risk associated with income trusts results from poor disclosure and marketing hype; Stance of the two quasi-regulatory bodies, the Canadian Accounting Standards Board (AcSB) and the Canadian Securities Administrators, on this issue; Concern that a majority of trusts do not seem to be setting aside enough money for maintaining their assets when it comes to calculating how much cash is available for unitholders; Opinion that the neither the AcSB nor CSA has improved income trust disclosures.

Comments on corporate fraud in Canada, with the view that investors are not doing enough to deter scam artists. Idea that Canada can stop financial chicanery with tough jail sentences and penalties; Examples of companies under investigation; The issue of securities commissions ignoring problems; Opinion that investors have to become more vocal about reform so politicians will take action that will eliminate traditional power structures and set up an enforcement agency to prosecute corporate scam artists.