Awards of Excellence in Corporate Reporting JUDGES’ BOOK 2016

A proud heritage, a bright future

We celebrate a milestone Presentation is also changing dramatically. this year–the 65th anniversary Organizations today augment printed materials of the Awards of Excellence with electronic formats that cover a spectrum of in Corporate Reporting social media platforms and include mobile apps (CR Awards). and dynamic interactive analytical tools.

A lot has changed in corporate reporting in that time and the Raising the bar CPA Canada is proud to recognize the companies program has evolved to help reporters stay ahead and Crown organizations that rise to meet these of those changes. When it launched in 1951 as ever-evolving challenges. Spotlighting excellence the Annual Report Awards, the competition was sets a clear path for others. Yesterday’s innovations open to public companies only. Judges reviewed become today’s table stakes. The bar moves higher. hard copy annual reports that contained very little information beyond the fi nancials. Some Fostering continual improvement is a primary 40 years later, Management Discussion and objective of the CR Awards. All entrants receive Analysis was added. In the 1990s the program feedback from the judges that shows how they further expanded to include environmental measured up against benchmarks and provides reporting and corporate governance disclosures. advice for improvement. The Electronic Disclosure category was included in 2001. We opened the competition to Crown organizations in 2007. Moving forward with strength Looking back on 65 years gives important context about where corporate reporting has been. The Increasingly complex needs require landscape will continue to change and strong sophisticated reporting Canadian companies will continue to respond in kind. Our long-standing dedication to this program refl ects CPA Canada’s commitment to high- CPA Canada applauds all entrants for submitting quality reporting and the benefi ts it o” ers to their reporting to the rigorous judging process. the investment and business communities; and We proudly celebrate those that stand in the by extension to the health of our economy winner’s circle. and the stability of the Canadian and global fi nancial systems. I extend a personal thank you to head judge, Ron Salole, and the ninety judges who participated The needs of investors and other stakeholders, in the program this year. coupled with stringent regulations and standards, put increased expectations on reporters. In The trust and credibility that results from addition to high-quality fi nancial reporting, high-quality reporting benefi ts us all. the market demands top-caliber corporate governance disclosures. Sustainability reporting is gaining maturity with top-tier reporters Joy Thomas, FCPA, FCMA focusing on materiality analysis and the President and CEO integration of sustainability measures into CPA Canada corporate strategy and governance.

JUDGES’ BOOK | 2016 1 THANK YOU!

Our corporate sponsors play a vital role in helping us promote integrity, transparency, and leadership in reporting.

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OFFICIAL NEWSWIRE OF THE 2016 AWARDS OF EXCELLENCE IN CORPORATE REPORTING

Special thanks to Sustainalytics for providing environmental, social and governance research services. Table of contents

About the awards ...... 4 About the judging groups ...... 5 The 2016 panel of judges ...... 6 Corporate reporting evolves ...... 11

Awards of Excellence in Financial Reporting: Crown corporations Crown entrants ...... 13 Leading practices in fi nancial reporting for Crown organizations ...... 14 Federal (Large) — Canada Deposit Insurance Corporation ...... 16 Federal (Small) — Telefi lm Canada ...... 18 Provincial — SaskPower ...... 20

Publicly listed entrants ...... 23

Awards of Excellence in Corporate Reporting: Industry winners Overall Award of Excellence in Corporate Reporting — TELUS ...... 26 Communications and Media — TELUS ...... 28 Consumer Products and Services — Canadian Tire Corporation ...... 30 Financial Services — BMO Financial Group ...... 32 Industrial Products and Services — WSP Global Inc...... 34 Mining — Goldcorp ...... 36 Oil and Gas/Forestry Products — Suncor Energy Inc...... 38 Real Estate — Boardwalk REIT...... 40 Utilities/Pipelines — Enbridge Inc...... 42

Awards of Excellence in Corporate Reporting: Category winners Leading practices in fi nancial reporting ...... 48 Award of Excellence in Financial Reporting — PotashCorp ...... 50 Honourable Mention in Financial Reporting — Intact Financial Corporation ...... 52 Leading practices in sustainability reporting ...... 54 Award of Excellence in Sustainability Reporting — Goldcorp ...... 56 Honourable Mention in Sustainability Reporting — Suncor Energy Inc...... 58 Leading practices in electronic disclosure ...... 60 Award of Excellence in Electronic Disclosure — Intact Financial Corporation ...... 62 Honourable Mention in Electronic Disclosure — WSP Global Inc...... 64 Leading practices in corporate governance disclosure ...... 66 Award of Excellence in Corporate Governance Disclosure — TELUS ...... 68 Honourable Mention in Corporate Governance Disclosure — Enbridge Inc...... 70

JuDgES’ Book | 2016 3 About the awards

2016 marks the 65th anniversary of the Awards Financial Reporting of Excellence in Corporate Reporting. The awards A company’s annual report highlights the past are the most prestigious and coveted national year’s results within the context of corporate awards of their kind, providing well-deserved strategies, competitive strengths and industry recognition to Canada’s top-tier reporters. fundamentals. Leaders in fi nancial reporting remain true to the foundation of transparency In addition to recognizing excellence, the awards and accountability while exploring innovative program promotes continuous improvement in ways to tell their stories. This category is corporate reporting. Entrants receive a confi dential judged by three panels: Chartered Professional assessment detailing how they compare to the winners Accountants, investor relations professionals and recommending changes for improvements. So, and fi nancial analysts. even entrants that do not win still benefi t. Sustainability Reporting The program is open to publicly listed companies The quality of sustainability reporting is steadily and Crown organizations. rising as companies recognize the importance of managing risks and opportunities related to Overall Award of Excellence environmental, social and governance issues. The top award is presented to the entrant with the Communicating sustainability issues and highest aggregate score across all industry groups. performance in a contextualized, readable and The winner is selected from a competitive fi eld of credible manner sets the top reporters apart entrants who excelled in four categories: Financial from their competitors. Reporting, Electronic Disclosure, Sustainability Reporting and Corporate Governance Disclosure. Electronic Disclosure Given the rapid growth in the use of data Crown organizations analytics and social media, leaders in electronic Awards of Excellence for Financial Reporting reporting recognize the importance of the digital are presented to federal and provincial Crown landscape in communicating with investors. corporations. Entrants are assessed in seven areas, Judges in this category assess entrants’ including message to shareholders, management online disclosures to determine the quality discussion and analysis, key performance drivers, of their investor relations content, navigation and results and outlook. and usability, innovation, use of social media platforms and overall e” ectiveness. Industry sector awards These awards are given to the publicly listed entrants Corporate Governance Disclosure who received the highest aggregated scores in their Demonstrating excellence in corporate industry group. This year there were eight industry governance reporting requires disclosures that groups: Communications and Media; Consumer are comprehensive, organized, and go above Products and Services; Financial Services; Industrial and beyond regulatory requirements. The core Products and Services; Mining; Oil and Gas/Forestry judging criteria were based on the requirements Products; Real Estate; and Utilities/Pipelines. and recommendations of National Policy 58-201, National instruments 58-101 and 52-110, the Category awards Dodd-Frank Wall Street Reform and Consumer Awards of Excellence and Honourable Mentions Protection Act, and the Internal Control- are given to entrants judged to be the best across Integrated Framework. all industry sectors, in each of four categories:

4 THE CPA CANADA AWARDS OF EXCELLENCE IN CORPORATE REPORTING About the Financial Reporting judges

Three panels assess entrants in the Financial The Canadian Investor Relations Institute Reporting category. Chartered Professional The Canadian Investor Relations Institute (CIRI) Accountants, investor relations professionals and is a professional, not-for-profi t association of fi nancial analysts each review the material from executives responsible for communication their specifi c context. between public corporations, investors and the fi nancial community. CIRI contributes to Chartered Professional Accountants the transparency and integrity of the Canadian of Canada (CPA Canada) capital markets by advancing the practice The new Canadian designation, Chartered of investor relations (IR), the professional Professional Accountant (CPA), is now used competency of its members and the stature by Canada’s accounting profession across of the profession. With close to 500 members the country. The profession’s national body, and four Chapters across the country, CIRI is Chartered Professional Accountants of Canada the voice of IR in Canada. (CPA Canada), is one of the largest in the world with more than 200,000 members, CFA Society Toronto both at home and abroad. The Canadian CPA CFA Society Toronto supports the professional was created with the unifi cation of three legacy and business development of more than 8,500 accounting designations (CA, CGA and CMA). CFA charter holders in Toronto, making it the CPAs are valued for their fi nancial and tax second-largest CFA Society in the world. It expertise, strategic thinking, business insight, provides members with a local perspective on management skills and leadership. CPA Canada the global designation, including educational conducts research into current and emerging programs, sponsored events, job postings, business issues and supports the setting of quarterly newsletters, a comprehensive accounting, auditing and assurance standards a nity program and networking opportunities. for business, not-for-profi t organizations and A not-for-profi t organization, CFA Society government. CPA Canada also issues guidance Toronto is a liated with CFA Institute, the and thought leadership on a variety of global body that administers the Chartered technical matters, publishes professional Financial Analyst curriculum and sets voluntary, literature and develops education and ethics-based performance-reporting standards professional certifi cation programs. for the investment industry. CFA Society cpacanada.ca Toronto’s members are leaders in ethics in the fi nancial community.

JuDgES’ Book | 2016 5 The 2016 panel of judges

A multi-disciplinary panel of experts plays an Lead judge, integral role in the Awards of Excellence in Electronic Disclosure Corporate Reporting. CPA Canada extends its Gerald Trites, sincere appreciation to the volunteer leadership FCPA, FCA, CISA team and panel members. Specializing in information systems technology and assurance, Internet-based Volunteer leadership team fi nancial reporting and XBRL, Gerald Trites is an author and popular Head judge and lead judge, conference presenter. Gerald taught accounting Financial Reporting and information systems at St. Francis Xavier Ron Salole University and served as a technical support and Ron Salole is a Fellow of client service partner at KPMG. He is a Fellow the Institute of Chartered of the Chartered Professional Accountants. Accountants in England and Wales, retired vice-president, Standards, CPA Canada and Lead judge, former deputy chair of the International Public Sustainability Reporting Sector Accounting Standards Board. A self- Susan Todd, professed enthusiast of corporate reporting, B.Comm, MRM, CPA, CA Ron assumed the role of head judge of the As principal of Solstice awards program in 2016. He also lends his Sustainability Works considerable expertise as the lead judge, Inc., Susan Todd advises Financial Reporting. Salole also serves as a companies on sustainability member of the International Auditing and strategy, management, reporting and stakeholder Assurance Standards Board and is a member engagement. A Canadian pioneer in sustainability of the Board of Directors at CCAF-FCVI reporting and assurance, she also founded Inc., a Canadian research and education The Accountability Project, North America’s foundation focused on strengthening public fi rst certifi ed training program in sustainability sector accountability by promoting e” ective reporting and assurance which has trained performance auditing and oversight of more than 500 people from six continents. government operations.

6 THE CPA CANADA AWARDS OF EXCELLENCE IN CORPORATE REPORTING Lead judge, Lead judge, Sustainability Reporting Crown corporations Henry Stoch, Marc Burchett, BSc, Environmental Science CPA, CA Henry Stoch is a partner Marc Burchett is an assurance at Deloitte and leads the partner with KPMG with National Sustainability and over 30 years of experience Climate Change practice. working with clients in all Henry has a passion for helping clients integrate stages of operations, from start-ups to reporting environmental and social issues into mainstream issuers. Beyond his client responsibilities, Marc also business decision-making. He has assisted serves as a professional practice partner providing organizations such as provincial governments accounting and auditing assistance to engagement and global energy and resource companies on teams within KPMG’s enterprise practice. issues related to resource development, social license, regulatory compliance, and Aboriginal community wellness measures.

Lead judge, Corporate Governance Disclosure Mike Harris, FCPA, FCA, CIA, ICD.D, Mike Harris is a senior partner with PwC. He leads the Consulting and Risk Assurance practices in British Columbia and the Corporate Governance Practice nationally. Mike is a Fellow of the Chartered Professional Accountants, a Certifi ed Internal Auditor and an accredited director with the Institute of Corporate Directors of Canada. Mike sits on a variety of not-for-profi t boards as well as PwC’s Partnership Board.

JUDGES’ BOOK | 2016 7 2016 judges

Janet Allan, FCPA, FCA Mallory Curtis, CPA, CA Victoria Gibbings Partner, Audit/Enterprise Senior manager Associate KPMG LLP KPMG LLP PwC

Sadiq Alladina, CFA, MRICS Giorgia Da Pozzo Sheldon Gunn, CPA, CA Manager, Development Analysis Senior associate Partner 20 Vic Management PwC KPMG LLP

Linda Armstrong, CPIR Daryl Deebrah Nancy Hoo, CPA, CA Investor relations consultant Associate Director, Corporate Finance Self-employed PwC Four Seasons Hotels and Resorts

Yolanda Banks Maya Douglas, LL.M., EPt Emily Huang, CPA, CMA, MBA, CIA Senior advisor, Corporate Social Senior consultant Manager Responsibility Deloitte PwC Export Development Canada (EDC) Kim Drenner, MSc. Eva Hung, P.Eng., EP(GHG) Matthew Batterton, CPA, CA Manager Senior consultant Associate partner EY Deloitte EY Alison Dwoskin, CPIR Laura Jackowich Paige Belbeck Manager, Investor Relations Consultant Senior audit associate Eastmain Resources Inc. Deloitte PwC Dara Edmonds, LL.B. Archie Johnston, FCPA, FCA, Jasmit Bhatti CSR specialist MBA CIA Associate Port of Vancouver Partner PwC KPMG Gerry Fields, LL.B., J.D. Lorie Brière President and general counsel Pamela Keck Principal CORNERSTONE GROUP ™ Manager, Investor Relations The Works Design ISC Communications Ltd. Tanya Finney Business analyst, Investor Relations Sarah Keyes, CPA, CA Annemarie Brissenden, CPIR Trinidad Drilling Ltd. Principal Independent investor relations CPA Canada consultant Dana Fountain Coordinator, Corporate Sustainability Karen Keyes, MSc Finance, CIR Mark Brownlie Toronto and Region Senior vice-president, Chief executive Conservation Authority Investor Relations Responsibility Matters Inc. Aimia Inc. Kevin Fung Mark Burnes, CPA, CA Associate Christina Lalli, CPIR Director PwC Consultant, Investor Relations PwC Karen Gasteiger Lenora Lee, CPA, CA Mina Chan, CPA, CA Senior director, Corporate Sales - Partner Manager, Policies & Special Projects Canada & Europe KPMG LLP Rogers Communications Inc. Q4 Inc. Clarisse Legrain Analyst Frances Cheng, CFA, MBA, FRM, Wesley Gee, M.Sc. PIEMA CAIA, CFP, DMS, CIM Director of Sustainability Deloitte Senior compliance consultant The Works Design Worldsource Securities Inc. Communications Ltd. Elizabeth Logan, M.A.Sc., P.Eng. Manager EY

8 THE CPA CANADA AWARDS OF EXCELLENCE IN CORPORATE REPORTING Andy Lu Chi Ho Ng, CPA, CA, MBA Peter Smalley, ESG analyst Associate Principal NEI Investments PwC CPA Canada Stephen Smart James Lyn Michael Nikov, MBA, CPIR Associate Associate Investor relations specialist PwC PwC Intact Financial Corporation Susan J. Soprovich, CPA, CMA Jackie MacDonald, CPA, CA Andrea Orzech, CPA, CA Principal Senior manager, External Reporting Associate vice-president Phoenix Strategies Ontario Lottery and Gaming Investor Relations Corporation Canadian Tire Corporation Mihaela Stefanov, MBA Manager, Climate Change and Jane Maciel Andrew Perro Sustainability Services Manager, Publications & Board Design director EY Secretary Craib Design & Communications Inc. Canadian Investor Relations Christie Stephenson Institute Stephanie Poon, CFA Executive director RBC Capital Markets Peter P. Dhillon Centre for Business David Mann, MBA Ethics at UBC Sauder School Vice-president Answerd A. Ramcharan, MBA, of Business NATIONAL Public Relations CPA, CMA, CFA Manager, Financial Information, Darren Swanson, MPA, MSc, P.Eng. Peter Martin, CPA, CA Member Regulation Policy Associate Retired Investment Industry Regulatory International Institute for Organization of Canada Sustainable Development Lisa May CIRI Executive, BC Chapter Alex Reid Robyn Troop, HBA, Investor Relations Consultant Associate CPA CA Student PwC Senior consultant Jeff Mazzer, CPA, CA Deloitte Senior manager, External Reporting Jean-Philippe Renaut, MSc. Ontario Lottery and Gaming Responsible Investment and Chris Tucker, MASc. Corporation Sustainability specialist Senior consultant (independent) Deloitte Meagan McDowell Associate Karin Ronde Rehan Wallani, CPA, CA, MPAcc PwC Manager, Client Success Senior manager Q4 Inc. KPMG LLP Sonya Mehan, CPIR Consultant, Investor Relations Yvon Roy, CPA, CA, CPIR Megan Wallingford Director, Investment - Private Senior advisor Christophe Ménigault, M.Env Equity, Mid-Market Sustainalytics Senior consultant Caisse de dépôt et placement Deloitte du Québec Mark Walsh, MBA, FCPA, CA Retired Bruce Millar, CIM, FCSI, FICB, Agnieszka Rum Moore, MSc MBA, CPA, CMA Associate Advisor Viren Wong, MBA, CPA, PRM Retired CBSR and Independent Investment director Anbang Insurance Group Jay Moore, CPA, CA Jae Ryu Controller, Development Associate Alex Young, CPA, CA Accounting PwC Partner RioCan Real Estate PwC Investment Trust Cory Searcy, Ph.D., P.Eng. Associate Otto Yung, MBA, MFin, CPA, Florence Mpepo IISD CMA, CFA, P.Eng. Assurance technician Executive director PwC LLP Robyn Seetal, CPA, CA Bluenorth Capital Manager Chris Murray, P.Eng, MBA, CFA Deloitte Managing director Institutional Research - Greg Shields, CPA, CA Diversifi ed Industries Retired AltaCorp Capital Inc.

JuDgES’ Book | 2016 9

Corporate reporting evolves

In today’s fast-paced, complex and rapidly changing The journey towards a more integrated approach world, a vast amount of information essential to can lead to improved internal information for decision-making travels across the globe at the decision-making, while better meeting the click of a mouse. Data provided through a variety evolving expectations of stakeholders. of channels can have a major impact on corporate results. Social media, for example, can a ect While approaches will vary, we encourage stakeholder expectations, impact a company’s Canadian companies to familiarize themselves brand and reputation, and substantially shift with integrated reporting and consider the organizational performance and market value. opportunity it presents to further enhance Canada’s corporate reporting environment. Businesses face increasing pressure to provide a continuous fl ow of high-quality corporate reporting Relevant Resources on a wide spectrum of issues. Investors and other CPA Canada is committed to exploring the ways stakeholders are making it clear that the traditional in which corporate reporting is evolving. Recent corporate reporting model – periodic fi nancial CPA Canada events that highlight innovative information, largely based on historical earnings, trends in reporting include: with an emphasis on the short term – is no longer • profi le of the work of the Financial Stability enough. Stakeholders insist on greater access to Board’s Task Force on Climate-related environmental, social and governance performance Financial Disclosures, featuring insights from indicators and forward-looking information. Bank of England Governor Mark Carney Their demands are driving important changes in • information session on a company’s use of corporate reporting. an Environmental Profi t & Loss account to measure its environmental footprint, featuring In this age of abundant and complex information, it Marie Claire Daveu, Chief Sustainability O cer is important for companies to tell their story in an and Head of International Institutional A airs integrated and cohesive manner that goes beyond at the luxury goods manufacturer, Kering regulatory compliance.

For preparers, we o er several resources on A more integrated approach? reporting, such as: A more “integrated” approach to reporting • Management’s Discussion and Analysis – promises an opportunity to communicate more Guidance on preparation and disclosure precisely how a company creates value in the • An Evolving Corporate Reporting Landscape: short, medium and long term. It provides a A Briefi ng on Sustainability Reporting, holistic view of a company by describing its Integrated Reporting and Environmental, business model, governance, strategy, key risks Social and Governance Reporting and opportunities, and fi nancial performance • Non-GAAP Measures – A 20-year Echo (current and future prospects) within the context of its business environment. Visit www.cpacanada.ca/applyingthestandards (Business and Accounting Resources) for all Integrated reporting is not a new idea. Since the guidance and support materials that the International Integrated Reporting Council CPA Canada o ers. published a framework to assist companies in the preparation and presentation of integrated reports in 2013, the movement is growing globally Gordon Beal, vice-president, Research, with companies incorporating aspects of the Guidance and Support, Chartered Professional framework into their reporting wholly or in part. Accountants of Canada

JuDgES’ Book | 2016 11 CONGRATULATIONS TO THE RECIPIENTS OF THE 2016 AWARDS OF EXCELLENCE IN CORPORATE REPORTING

We know something about winning awards, we have been honoured a few times ourselves.

We know that the hard work, the long hours, the dedication of your teams and the unswerving commitment to the highest standards of disclosure and transparency not only brought you this honour, but also the recognition from the investors and stakeholders who value your company and your dedication. Once again, congratulations… YOU ARE THE BEST

www.listedmag.com The Magazine for Canadian Listed Companies CONGRATULATIONS TO THE RECIPIENTS OF THE 2016 AWARDS OF EXCELLENCE IN CORPORATE REPORTING Awards of Excellence in Financial Reporting: Crown corporations

2016 Entrants The Crown organizations Canada Deposit Insurance competition has three categories: Corporation Federal (Large), Federal (Small) and Provincial. Canada Mortgage and Housing Corporation Entrants are assessed on the quality CBC/Radio–Canada of their financial reporting in these Defence Construction Canada areas: Export Development Canada • highlights/overview • chair/president’s letter to Financial and Consumer Services shareholders Commission • annual MD&A (including business Telefilm Canada We know something about winning awards, we have been operations, products and services) honoured a few times ourselves. SaskPower • annual financial statements • scorecard disclosures We know that the hard work, the long hours, the dedication SaskTel of your teams and the unswerving commitment to the • supplementary disclosures highest standards of disclosure and transparency not only • general effectiveness brought you this honour, but also the recognition from • electronic disclosures the investors and stakeholders who value your company and your dedication. Once again, congratulations… YOU ARE THE BEST

www.listedmag.com The Magazine for Canadian Listed Companies JUDGES’ BOOK | 2016 13 Leading practices in fi nancial reporting for Crown organizations Up for the challenge

Awards of Excellence in Financial Reporting Federal Crown (Large) Canada Deposit Insurance Corporation

Federal Crown (Small) Telefi lm Canada

Provincial Crown SaskPower

The world of annual reporting continues to evolve for their commitment to, and passion for, with the demands for high-quality fi nancial the development of their annual reports. reports ever expanding. This trend is fueled by the continued integration of fi nancial and non- The assessment of the 2015 annual reporting fi nancial information, enhanced connectivity included a review of the message to stakeholders, between strategy, risk and performance, and the the fi nancial statements, annual MD&A, emergence of Corporate Social Responsibility. supplementary disclosures and scorecard The good news is that Crown corporations are disclosures. Entrants were also judged on the up for the challenge, consistently raising the strength of the organization’s overview provided bar to provide comprehensive reporting. These in the annual report, including the communication organizations must provide a clear picture of of its mission or vision, and on the overall their vision, achievements and strategies, as well e” ectiveness of the presentation of information in as the opportunities and risks that lie along the the annual report. path to their desired objectives. The ability to do so was evident in most of the entries, giving rise Federal Crown (Large) to an exceptionally competitive judging process. In an extremely competitive category, each of The selection of our winners entailed signifi cant the entrants provided an outstanding example of debate and discussion. Accordingly, the judging corporate reporting. The judging panel believed panel would like to commend all of the entrants the Canada Deposit Insurance Corporation (CDIC)

14 THE CPA CANADA AWARDS OF EXCELLENCE IN CORPORATE REPORTING A powerful CONNECTION ANNUAL Always ready to protect your savings REPORT TALENT 2015 WITHOUT 2014-2015 BORDERS ANNUAL REPORT

SASKPOWER 2015-16 ANNUAL REPORT

2015 annual report best exemplifi ed a highly new strategic plan in the chairman’s and executive integrated report with strong linkage to the director’s messages. organization’s mission and strategy objectives. Key aspects that di” erentiated this report included Provincial Crown a clearly articulated vision, a clear overview of key SaskPower won this category for the third activities, and a well-defi ned message from the consecutive year. Its annual report, A Powerful President and CEO that provided robust links to Connection, scored high in all of the judging each of CDIC’s identifi ed strategic objectives. The categories and was considered to be a well- report was comprehensive and fl owed logically, balanced, clear and e” ective report. The judges providing the reader with a good understanding noted that the MD&A provided good discussions of the organization’s achievements relative to on strategy and the related corporate pillars, as its previously stated objectives, established well as on risks and mitigation strategies. While key performance indicators and the strategic the report utilized graphics e” ectively throughout, objectives that will drive CDIC’s operations the judges noted that the graphics used for the in future. scorecard were extremely e” ective in providing the reader with a comparison of actuals, targets Federal Crown (Small) and future targets. Combined with supporting Telefi lm Canada’s 2015 annual report, Talent narratives, it provided a strong link between Without Borders, was engaging and e” ective. Its activities, performance measures and established excellent utilization of tables and charts provided strategic pillars. a good understanding of the organization’s activities and strategic pillars. The communication Overall, the judging panel was impressed with of the strategic objectives, the presentation of the continued improvement in many of the the activities against those objectives and the entrants’ annual reports, noting increased levels related trend analysis and comparison to key of integration and connectivity throughout. performance indicators were judged as key strengths by the panel. Other strong points noted by the judges included a well-articulated Marc Burchett, CPA, CA vision statement and good linkage between Assurance partner, KPMG previously established objectives, the current Lead judge, Crown Corporations year’s achievements and the introduction of the

JUDGES’ BOOK | 2016 15 16 THE CPA CANADA AWARDS OF EXCELLENCE IN CORPORATE REPORTING AWARD oF EXCELLENCE IN FINANCIAL REPoRTINg FEDERAL CROWN CORPORATIONS (LARGE)

Canada Deposit Insurance Corporation

When it comes to analyzing data, context is critical. And that’s what the Canada Deposit Insurance Corporation (CDIC) provided throughout its reporting – a material context from which to analyze its results, presented in an accessible and engaging way. For its e orts, the deposit insurer won the Award of Excellence in the Federal Crown Corporations (Large) category.

The chairman’s letter led this approach with an from the president and CEO. The annual excellent overview of the economic landscape MD&A fl owed logically, beginning with the and its impact on the company’s current and current economic, regulatory and governmental planned activities. It reviewed CDIC’s ability to environment, and progressing to a risk analysis. meet its goals as well as the steps that are being The key drivers of fi nancial performance taken to address any challenges. The mandates of followed, along with a review of the company’s the board and its committees are well explained performance against corporate strategy, and accompanied by a table showing attendance scorecard measures, fi nancial results and at board and committee meetings alongside future strategic objectives. director compensation. The report fl owed well, with information Judges were also impressed that the fi nancial presented in an understandable and balanced statements addressed key judgments separately format. Photos and graphics were used from critical estimates, and compared key consistently throughout. One-page summaries fi nancial metrics to the company’s goals with of the year’s key activities and fi nancial variances well explained. summary provided a good overview of the company’s fi nancial results and position. It’s but one of the ways that CDIC integrated strategy and results throughout its reporting. The company’s scorecard was tied to its strategy, as well as the key initiatives aimed at achieving its goals, all of which were addressed in the message

JuDgES’ Book | 2016 17 18 THE CPA CANADA AWARDS OF EXCELLENCE IN CORPORATE REPORTING AWARD oF EXCELLENCE IN FINANCIAL REPoRTINg FEDERAL CROWN CORPORATIONS (SMALL)

Telefi lm Canada

It should come as no surprise that Telefi lm Canada, a cultural agency dedicated to developing and promoting Canada’s audiovisual industry, communicates well. This winner of the Award of Excellence in the Federal Crown Corporations (Small) category received high marks for comparing its performance to its stated goals.

“The main strength of the report was the singled out some key indicators of success. layout of the objectives, the presentation of the The executive director built on the chairman’s activities against those objectives, and then the letter by delving deeper into the organization’s trend analysis and comparison to target for the achievements relative to its strategic plan, then key performance indicators related to each of e ectively introduced the new plan. There was those objectives,” said a judge. “It was extremely an excellent discussion on changes in the well tied together.” industry and how Telefi lm planned to adapt while continuing to fulfi ll its mandate. Telefi lm’s report clearly and succinctly communi- cated its vision and mission, and provided a good The annual MD&A provided details on how the overview of the organization and its function. Its performance indicators were measured and report included an excellent one-page summary calculated, while the fi nancial review section of areas of focus, the key roles of the organization provided a good summary of key aspects of the and highlights of the year’s achievements. results and built on information provided in the fi nancial statements. The chairman’s letter weighed those achievements against the agency’s established goals, and introduced a new strategic plan for meeting future challenges. It provided a high-level synopsis of the outcome of their strategy and

JuDgES’ Book | 2016 19 20 THE CPA CANADA AWARDS OF EXCELLENCE IN CORPORATE REPORTING AWARD oF EXCELLENCE IN FINANCIAL REPoRTINg PROVINCIAL CROWN CORPORATIONS

SaskPower

SaskPower demonstrated how good design fuels award-winning content. The Saskatchewan electricity supplier won the Award of Excellence in the Provincial Crown Corporations category with comprehensive reporting that benchmarked actual performance against goals and targets.

SaskPower’s reports featured visual content that Judges also awarded high marks for the MD&A’s provided an at-a-glance overview, information strong discussion of risk and risk-mitigation on corporate strategy and performance high- strategies, and pointed to the company’s review lights. The highlights segregated twelve- and of SaskPower’s strategies for meeting future three-month results, allowing comparisons to demand. The annual fi nancial statements were prior periods. Augmented by a helpful glossary clear, comprehensive and well presented and of terms, SaskPower’s narrative was balanced and included an unambiguous statement of complete. It outlined the company’s service and management’s responsibilities. business lines, and summarized future projects. Strategic content was linked to corporate pillars SaskPower’s corporate governance disclosures and specifi c information on performance, while were equally thorough. The report described the chair’s and president’s letters included a the backgrounds of board members and balanced discussion of corporate highlights and executive o cers, as well as their experience some detail on future plans. and responsibilities. Changes in positions were documented, and there was a good assessment Colour-coded charts marked the annual MD&A. of governance performance. Scorecard disclosures were enhanced with graphics that included a summary chart showing actual performance alongside target performance, as well as three-year targets.

JuDgES’ Book | 2016 21 Blended Learning IFRS Financial Literacy Information

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CPA PLD_JudgesBook Ad Nov16.indd 1 2016-11-10 9:07 AM Publicly listed entrants

Agrium Goldcorp ARC Resources Ltd. Intact Financial Corporation Asanko Gold Inc. Inter Pipeline Ltd. ATB Financial Killam Apartment REIT ATCO Ltd. New Gold Inc. AutoCanada Inc. PotashCorp Barrick Gold Corporation Primero Mining Corp. BCE Inc. RBC Black Diamond Group Resolute Forest Products BMO Financial Group RioCan Real Estate Investment Trust Boardwalk REIT Rogers Communications Inc. Bombardier Inc. Scotiabank Canadian National Railway Company SmartREIT Canadian Pacifi c Railway Limited SNC-Lavalin Canadian Tire Corporation Stantec Canadian Western Bank Sun Life Financial Inc. Capstone Mining Corp. Suncor Energy Inc. Catalyst Paper Corporation Teck Denison Mines Corp. TELUS Eldorado Gold Corporation Thomson Reuters Corporation Enbridge Inc. Transat Enerfl ex Ltd. UEX Corporation Enerplus Corporation Vermilion Energy Trust Finning International Inc. WSP Global Inc.

JuDgES’ Book | 2016 23 ADVERTORIAL

In Good Standing: Celebrating Excellence in Corporate Reporting

TMX Group Ltd. is proud to sponsor the TMX Group, whose key subsidiaries operate cash 2016 CPA Canada Awards of Excellence in and derivative markets, as well as clearinghouses Corporate Reporting. for multiple asset classes, supports the important work of the Chartered Professional Accountants Now in their 65th year, the awards shine a of Canada (CPA Canada) and is pleased to well-deserved light on companies that place a highlight the organization’s mandate. strong focus on disclosure and transparency to benefi t their shareholders, current and potential We remain dedicated to helping listed companies investors, and the public at large. TMX Group operate successfully in the Canadian capital is delighted to help recognize excellence in markets. We are actively involved with raising corporate reporting practices in Canada. We corporate governance standards in Canada applaud this year’s winners and we are proud and enhancing Canadian corporate governance to count them among the more than 1,500 practices to help boost confi dence in public companies listed on our Exchanges. companies as they become role models for good disclosure. As the Canadian business landscape has shifted over the years, public, private and non-profi t Once again, congratulations to the winners of companies are paying greater attention to the Awards of Excellence in Corporate Reporting. way they conduct business and to their respon- As our country’s business environment continues sibilities as corporate citizens. Building and to evolve, TMX Group encourages Canadian sustaining trust in how a business operates and companies to continue to lead by example, act drives its current and future success has arguably with integrity and fi nd new ways to strengthen never been more important or as challenging. their relationships with stakeholders. This year’s winners have contributed in signifi cant ways to good corporate governance and strategic leadership in their respective organizations. They are no strangers to the critical role that TMX Group is a trademark of TSX Inc. e” ective corporate reporting plays in sustaining the integrity of Canada’s public and private companies, Crown corporations, government agencies and not-for-profi t organizations.

24 THE CPA CANADA AWARDS OF EXCELLENCE IN CORPORATE REPORTING AWARDS OF EXCELLENCE IN CORPORATE REPORTING

Industry winners

Industry sector awards are presented to publicly listed companies that outperformed other entrants in their respective sectors. The rankings take into account performance in Financial Reporting, Electronic Disclosure, Sustainability Reporting and Corporate governance Disclosure.

The winner of the overall Award of Excellence in Corporate Reporting is selected from the top performers across all industry groups.

In 2016 there were eight industry groups: • Communications and Media • Consumer Products and Services • Financial Services • Industrial Products and Services • Mining • Oil and Gas/Forestry Products • Real Estate • Utilities/Pipelines

JuDgES’ Book | 2016 25 26 THE CPA CANADA AWARDS OF EXCELLENCE IN CORPORATE REPORTING OVERALL AWARD OF EXCELLENCE IN CORPORATE REPORTING

TELuS

This is the twenty-second consecutive year in the winner’s circle for TELUS and the seventh time it has been named overall champion. In addition to earning the Overall Award of Excellence in Corporate Reporting, the telecommunications giant also captured awards in the Communications and Media industry and the Corporate Governance Disclosure categories.

TELUS’ corporate governance disclosures The TELUS annual report was attractive and embodied reporting excellence. The company’s engaging, with trademark colour and images exhaustive report contained detailed information refl ecting the company’s unique character. on the Board of Directors, including competencies, Disclosures were well written and used clear committee membership and independence. It and simple language, which helped to convey provided clear disclosures on the appointment transparency. Judges found it easy to navigate of external auditors and the review of the the report and fi nd critical fi nancial information. auditors’ work, as well as corporate policies on the review of fi nancial statements. The MD&A was singled out for its excellent overview of the company, its strategies and Judges found the design of the disclosures fi nancial highlights. Corporate priorities were to be excellent, with a clean and professional addressed with a detailed update on their layout. Tables helped to organize the progress as well as the impact of competition. comprehensive information. An e ective The analysis of targets and long-term strategies use of headings and smooth transitions was thorough, and a discussion of industry trends between sections made for an easy-to-read and risks provided context to the information. experience overall. Judges were also impressed by the breakdown of operating fi nancials by business segment.

JuDgES’ Book | 2016 27 28 THE CPA CANADA AWARDS OF EXCELLENCE IN CORPORATE REPORTING AWARD oF EXCELLENCE IN CoRPoRATE REPoRTINg COMMUNICATIONS AND MEDIA

TELuS

With an attractive and engaging annual report, TELUS edged out tough competition to claim the 2016 Award of Excellence in Corporate Reporting in the Communications and Media industry. The telecommunications giant also dominated in Corporate Governance Disclosure.

The annual report was praised for portraying the The interim fi nancial reports and earnings character of the company through the e ective release garnered praise for providing detailed use of colour, graphics and imagery. Detailed information in an easy-to-read presentation. fi nancial disclosures were clear and well written, Simple and concise bullet points heightened and headings e ectively identifi ed key points. the presentation of business developments Judges found the report easy to navigate, and performance. Judges also appreciated noting it was easy to locate critical information the discussion from leaders on business such as fi nancial highlights and the investment results, as well as the section on 2015 targets proposition. Overall, the Financial Reporting and assumptions. judging panel found the report demonstrated TELUS’s strong commitment to transparency. TELUS also excelled in the area of Corporate Governance Disclosure, earning the Award of The MD&A provided an excellent overview Excellence in that category. Judges commended of the company, its strategies and fi nancial the company for its use of detailed and exhaustive highlights. A thorough discussion of industry tables to disclose the board’s composition, trends and risks was matched by an analysis making the information easy to navigate. The of the company’s targets and long-term tables provided meeting attendance, top strategies. Corporate priorities were addressed competencies, committee memberships and with a detailed update on their progress and independence of directors. A clean and the impact of competition. The breakdown of professional layout also enhanced the readability operating fi nancials by business segment also of the disclosures. More detailed information impressed the judges. on the award can be found on page 69.

JuDgES’ Book | 2016 29 30 THE CPA CANADA AWARDS OF EXCELLENCE IN CORPORATE REPORTING AWARD oF EXCELLENCE IN CoRPoRATE REPoRTINg CONSUMER PRODUCTS AND SERVICES

Canadian Tire

Canadian Tire Corporation earned this year’s Award of Excellence in Corporate Reporting in the Consumer Products and Services industry with an innovative investors’ website and strong annual reporting materials. The company also performed well in the Corporate Governance Disclosure category.

Canadian Tire’s website earned praise for clear and organized fi nancial statements. The clean navigation that made it quick and easy to MD&A complemented the fi nancial information locate fi nancial materials. Social media feeds and provided ample discussion on consolidated highlighted on the homepage provided useful segment results and risks and assumptions for features, including a link to the investor relations each strategy. Judges found the report’s style app and an online year-in-review report. The and design to be organized, and appreciated website was attractive and represented the the e ective use of white space. company’s brand well. Judges praised Canadian Tire’s detailed Innovation was at the forefront of Canadian corporate governance disclosures, which Tire’s electronic disclosures, which featured great featured a well-presented section on the duties analytic and customizable shareholder tools. and responsibilities of members of the Board Its e ective use of technology armed investors of Directors. An explanation on the independence with the tools needed to make informed of directors was extensive, and position decisions. Overall, judges found the website descriptions were clear and easily accessible o ered a complete shareholder experience. through the investor’s website. The Code of Ethics was visually appealing and organized Canadian Tire also performed well in the through the use of images and callouts. Financial Reporting category, with e ective and well-structured annual reporting materials. The company’s 2015 Report to Shareholders provided a comprehensive analysis of the merits of investing and ongoing strategies, as well as

JuDgES’ Book | 2016 31 32 THE CPA CANADA AWARDS OF EXCELLENCE IN CORPORATE REPORTING AWARD oF EXCELLENCE IN CoRPoRATE REPoRTINg FINANCIAL SERVICES

BMo Financial group

BMO Financial Group took top honours in the Financial Services sector, historically one of the tightest competitions in the awards program. The bank won the 2016 Award of Excellence in Corporate Reporting in Financial Services with a strong performance across all judging categories, particularly Financial Reporting and Sustainability Reporting.

Judges praised BMO Financial Group’s annual BMO Financial Group impressed Sustainability report for being well presented and logically Reporting judges with a thorough materiality structured. Graphics and photos were used analysis and a clear explanation of how e ectively to complement the discussion of stakeholder feedback informed the process. fi nancial performance. The language was clear and unambiguous. Sustainability strategy received priority, with many short, medium and long-term goals and The chairman’s letter was concise and balanced, targets o ered. The role of stakeholders in the identifying potential risks. The CEO’s thorough development of the strategy was well explained. message clearly outlined the 2016 strategic The breadth of information provided and the objectives. Key fi nancial highlights were presented presentation of engaging stories earned special upfront. Judges also appreciated the review of commendation. market and industry issues.

The MD&A was described as comprehensive, providing detailed information on a variety of topics including 2015 priorities and progress, key operating group summaries and a forward- looking outlook on 2016 economic developments. Graphs enhanced the information and added value to reader understanding. Overall, judges found the section to be well written and logically structured.

JuDgES’ Book | 2016 33 34 THE CPA CANADA AWARDS OF EXCELLENCE IN CORPORATE REPORTING AWARD oF EXCELLENCE IN CoRPoRATE REPoRTINg INDUSTRIAL PRODUCTS AND SERVICES

WSP global

An excellent investors’ website, comprehensive online disclosures and impressive sustainability reporting earned WSP Global Inc. this year’s Award of Excellence in Corporate Reporting in the Industrial Products and Services sector.

WSP Global’s website o ered a robust suite Q&A format used to discuss performance and of analytical tools, including a customizable outlook also impressed them. Well-written and stock price chart, stock calculator and real-time engaging information helped readers understand updating of data. the company’s history, while photos of employees, executives and projects added a personal touch. The clean design and intelligent interface impressed the judges. They found the informa- Sustainability Reporting judges commended tion well organized and easy to navigate. The WSP Global for o ering an informative and investor’s page included the option to add easy-to-read sustainability report. Beginning presentations and events to the user’s calendar. each section with a scorecard allowed the reader to quickly identify the company’s performance. The company’s presence on social media was In addition, case studies added context to WSP comprehensive and highly engaging. Global’s business practices. A strong overview of the company’s materiality process and clear It featured detailed fi nancial disclosures across presentation of strategic objectives rounded Facebook, Twitter, LinkedIn, YouTube and out the well-designed report. Google+ platforms, with links on every page of the company’s website. WSB Global also won Honourable Mention in Electronic Disclosure - see page 64. The judges commended WSP Global’s annual report for its clear and logical structure and its e ective use of graphs to present the company’s performance and achievement of targets. The

JuDgES’ Book | 2016 35 36 THE CPA CANADA AWARDS OF EXCELLENCE IN CORPORATE REPORTING AWARD oF EXCELLENCE IN CoRPoRATE REPoRTINg MINING

goldcorp

Goldcorp emerged as the winner of this year’s Award of Excellence in Corporate Reporting in the Mining industry, showcasing best-in-class sustainability reporting and a strong investors’ website. The company also performed well in the Corporate Governance Disclosure category.

Continuing its reign as a Sustainability Reporting Goldcorp edged out tough industry competition champion, Goldcorp outranked its competitors in the Electronic Disclosure category, presenting with a clear and e ective sustainability report. a comprehensive and easily navigable investors’ It provided an outstanding discussion of website. The company provided a strong overview organizational governance and a thorough and strategy for its investor proposition, and explanation of how sustainability is embedded o ered excellent information on various CSR throughout the company. Stakeholder groups and environmental governance programs. Judges were clearly identifi ed and their role in the found the analytical tools to be best in class, being development of sustainability strategies was simple to use and available on mobile platforms. well disclosed. Goldcorp used social media e ectively to promote and disclose its investor information. The company did an outstanding job of explaining its materiality process so that The company’s corporate governance disclosures readers could easily distinguish between issues were also impressive, o ering comprehensive of higher or lower materiality. The results of director profi les and a skills matrix of director the materiality analysis were refl ected in the qualifi cations. The code of conduct was visually structure and content of the report, highlighted appealing, with excellent use of graphics, section by a very e ective visual presentation. breakdowns and Q&A boxes to organize Judges also appreciated the inclusion of information. The Board of Directors’ risk the external auditor’s report. management policy was also thoroughly disclosed.

JuDgES’ Book | 2016 37 38 THE CPA CANADA AWARDS OF EXCELLENCE IN CORPORATE REPORTING AWARD oF EXCELLENCE IN CoRPoRATE REPoRTINg OIL AND GAS/FORESTRY PRODUCTS

Suncor Energy

Suncor Energy Inc. won this year’s Award of Excellence in Corporate Reporting in the combined Oil and Gas/Forestry Products group with a comprehensive annual report and outstanding sustainability materials. Judges also awarded high marks for the company’s corporate governance disclosures.

Suncor Energy’s annual report provided an The company’s extensive sustainability abundance of relevant fi nancial information. materials also earned high marks. Its thorough With a clear layout, easy-to-read language and analysis of the company’s performance, trends e ective use of photos and graphs, the report and targets included tables and quantitative was engaging and informative. Judges noted data to o er context. Both consolidated and the company’s clear discussion of its priorities, site-specifi c information was provided. Links to including the importance it places on environmental external initiatives and an easy-to-understand issues and climate change. independent assurance statement provided scope and credibility. The report’s Message to Shareholders was robust and well presented, with key highlights of the year Suncor Energy’s impressive corporate governance and metrics laid out at the beginning to provide disclosures were reader-friendly and clearly an e ective summary of each business line’s presented. E ective use of colour and a distinct objective. A two-page layout with helpful graphics typeface punctuated a strong explanation of succinctly outlined competitive di erentiators and board diversity. The orientation program and supported the investment proposition. resources available to directors were also clearly disclosed. Likewise, the MD&A o ered a great discussion of the company’s 2015 metrics and key perfor- mance indicators, as well as a comprehensive analysis of risks. Judges felt the report was very thorough, with information presented in an easily readable format.

JuDgES’ Book | 2016 39 40 THE CPA CANADA AWARDS OF EXCELLENCE IN CORPORATE REPORTING AWARD oF EXCELLENCE IN CoRPoRATE REPoRTINg REAL ESTATE

Boardwalk REIT

Boardwalk REIT took home the Award of Excellence in Corporate Reporting in the Real Estate industry, beating out the tight competition with an informative and well-presented annual report. The company also performed well in the Corporate Governance Disclosure category.

Strong use of photos, graphics and charts The report’s scorecard disclosures also enhanced the report’s e ectiveness. A wealth impressed judges. The tabular format made it of supplementary information went beyond the easy for readers to understand the status of each required disclosures, and discussions were well goal and target. Comprehensive and qualitative written and engaging. Judges also appreciated goals were supported by quantifi able data when the sections targeted to specifi c stakeholder available, and scorecard measures were included groups, which they found attractive and useful. for each section.

Judges praised the Letter to Unitholders for an Judges commended Boardwalk REIT’s corporate abundance of information, as well as an excellent governance disclosures. A very professional code discussion of the past year’s performance in the of ethics included the partnership’s core values. context of goals and strategies. Achievements Pie charts depicted the number of women on the were clearly outlined, and charts and graphs Board of Directors in a visually appealing format. e ectively conveyed key fi nancial highlights. Profi les of signifi cant shareholders and trustees Likewise, the MD&A o ered a thorough discussion were included. The strategic and succession of the disclosure framework, including objectives, planning processes were fully discussed, strategies, risks and outlook. and detailed elaboration provided on the communications policy.

JuDgES’ Book | 2016 41 42 THE CPA CANADA AWARDS OF EXCELLENCE IN CORPORATE REPORTING AWARD oF EXCELLENCE IN CoRPoRATE REPoRTINg UTILITIES/PIPELINES

Enbridge

Enbridge Inc. earned this year’s Award of Excellence in Corporate Reporting in the Utilities/Pipelines group with excellent corporate governance disclosures and innovative analyst tools on its investors’ website. A clear and comprehensive sustainability report also won the company high marks in the Sustainability Reporting category.

Judges found that the Enbridge corporate The company’s sustainability reporting also governance disclosures provided excellent detail received high marks. The report’s illustrative about the Board of Directors and its multiple approach enhanced the clarity of the information committees, which encompass internal and and engaged the reader. The report used clear external stakeholders. Director profi les were well language to describe Enbridge’s strategic written, and judges welcomed the presentation objectives, business operations and material of a policy regarding the number of women on topics. The materiality process was outlined the board. The company also garnered praise for e ectively, and the risk management approach disclosing how it maintained a culture of integrity was explained in detail. and ethical conduct throughout the organization. A clear and e ective annual report showcased In the Electronic Disclosure category, judges were Enbridge’s strengths in fi nancial reporting. impressed with a dashboard on the investors’ Disclosures made great use of photos, charts website that highlighted key fi nancial information. and maps, and the layout was easy to read. A convenient list of reports and fi lings allowed The report provided strong discussions on key users to sort and fi lter materials in multiple industry features and company strategies. formats. Social media were consistently integrated Judges also appreciated the wealth of and the site featured a modern design. Overall, supplementary information. judges felt that Enbridge’s online disclosures were the most innovative in the industry.

JuDgES’ Book | 2016 43 PRACTICAL IFRS APPLICATION GUIDANCE FOR THE MINING INDUSTRY

Help is a click away. VIEWPOINTS: Applying IFRSs in the Mining Industry REVERSAL OF IMPAIRMENT LOSSES Viewpoints: Applying IFRSs in the Mining Industry JULY 2015

is a series of non-authoritative accounting guidance Background Under IFRS, at the end of each reporting period, to the extent Mining Industry that an entity has previously recorded an impairment loss1 (other Task Force on IFRSs than an impairment loss related to goodwill), the entity should International Financial Reporting and support papers, dedicated to helping resource- assess whether there is any indication that the previously recog- Standards (IFRSs) create unique nized impairment loss may no longer exist or may have decreased. challenges for mineral resource companies. Financial reporting If any such indication exists, the entity is required to estimate in the sector is atypical due to constrained junior mining companies. the recoverable amount of the asset or the cash-generating unit significant diŽerences in char- acteristics between mineral (CGU). The recoverable amount of an asset or CGU is the higher resource companies and other of its fair value less costs of disposal (FVLCD) and its value in types of companies. The Char- use (VIU). tered Professional Accountants of Canada (CPA Canada) and If the recoverable amount exceeds the carrying amount, then the Prospectors & Developers Association of Canada (PDAC) a previously recognized impairment loss is considered to have created the Mining Industry Task been reversed (either fully or in part). IAS 36 Impairment of Force on IFRSs to share views This series provides clear and concise application Assets requires an entity to recognize the reversal of the impair - on IFRS application issues of ment loss, except for goodwill for which an impairment loss relevance to mineral resource companies. The task force cannot be reversed under any circumstances. views are provided in a series of papers that are available through considerations, unique to this industry. Note that an impairment reversal is dictated by the specific facts free download. These views are and circumstances and is not an accounting policy choice. of particular interest to Chief Financial O”cers, Controllers and Auditors. Issue The views expressed in this How do mining entities apply the requirements of IFRS with series are non-authoritative and respect to reversal of impairment? have not been formally endorsed by CPA Canada, PDAC or the organizations represented by the task force members. 1 For more details, please refer to Mining Industry Task Force on IFRSs Viewpoint— Commodity Prices and Impairment and Viewpoint—Impairment of Exploration and Evaluation Assets.

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Congratulations to the 2016 fi nalists and winners. We applaud your commitment to relevant, clear and easy to understand reporting

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257271 - CPA Canada Existing ad change request.indd 1 11/8/2016 5:30:46 PM AWARDS OF EXCELLENCE IN CORPORATE REPORTING

Category winners

Awards are presented to the top two performers in each category: • Financial Reporting • Sustainability Reporting • Electronic Disclosure • Corporate Governance Disclosure

The criteria for each category is updated annually. Visit www.cpacanada.ca/CRawards to view the 2016 criteria.

Jus dge ’ book | 2016 47 Leading practices in fi nancial reporting Concise, relevant and forthcoming

The 2016 Award of Excellence in Financial Reporting PotashCorp Honourable Mention Intact Financial Corporation

Judges in the Financial Reporting category saw a In their review, the judges referred to consistent great variance in submissions this year. In the end, and detailed criteria for each of these elements: an established powerhouse took the top award message to investors, management discussion and a newcomer to the winner’s circle secured and analysis (MD&A), annual fi nancial statements, second place. supplementary information, general e” ectiveness of the disclosures including scorecard disclosures, Once again, PotashCorp demonstrated why it is a interim fi nancial reports and fourth-quarter recognized Canadian leader in this fi eld. Its fi nancial earnings releases. reports told an organized and complete story. The information was balanced and comprehensive; The overarching requirement of this prestigious strategy was linked to performance. Overall, program is to evaluate how well a company another stellar performance by PotashCorp. communicated its performance to current and prospective investors. Intact Financial Corporation impressed judges with the clarity and specifi city of its fi nancial A recent publication, authored by EY and disclosures. An exceptional chief executive o® cer’s issued by the Financial Executives Research message addressed performance against strategy. Foundation, referenced two of the most It used plain language to share its mission, vision, pertinent questions being contemplated by strategy and fi nancial highlights. the fi nancial reporting community. “Disclosure e” ectiveness in action: companies make great Impressing the judges in this very competitive strides” asks: “What do investors want to fi eld is no easy task. know in the 21st century?” and “How should companies deliver that information in the digital The process for judging the fi nancial reports age?” The publication’s fi ndings and the authors’ submitted by entrants was robust and meticulous. conclusions support the views and comments of It involved multiple reviews by judges with the program’s judges, who found that the most diverse perspectives: Chartered Professional outstanding fi nancial reports demonstrated Accountants, investor relations professionals, these common qualities: and fi nancial analysts.

48 THE CPA CANADA AWARDS OF EXCELLENCE IN CORPORATE REPORTING • Organizing and layering information, wordy and ambiguous language. Judges particularly in the MD&A, to emphasize have detected improvements over time and the most signifi cant fi rst. understand that it can be more challenging The sheer volume of fi nancial and other to reduce reporting to its essence. Leading data in corporate reports is overwhelming; reporters demonstrate that the benefi t emphasizing the most signifi cant relevant outweighs the di culty. information is an excellent attribute of best reporting practice. Producing a succinct • Aligning the narrative and reports to avoid executive summary is key, and the most helpful apparent inconsistencies or contradictions. reports layer information so that additional This was seen as particularly important when pertinent information can be easily found. matching disclosure on corporate objectives and strategies with performance. Scorecard • Greater use of tables, bullet points, charts information that was forthcoming and and graphs to make the narrative more insightful impressed the judges. accessible and understandable. Dense and wordy narrative does little to • Judicious use of cross references and reducing communicate e ectively with current and or eliminating repetition and redundancies. potential investors. Best practice has evolved Truly e ective disclosures cut out repetitions to include the careful use of tables, bullets, and redundancies and make intelligent use charts and graphics to make the information of cross references when needed. easier to capture and to help readers understand trends and future plans. Ron Salole • Scrubbing the stories and narrative to Head judge, CR Awards ensure a minimum of technical and Lead judge, Financial Reporting obscure terminology in favour of clear and concise language. The Financial Reporting category is judged by three The best corporate reports have adopted the panels representing CPA Canada, The Canadian theory that clear language is better than Investor Relations Institute and CFA Society Toronto.

JuDgES’ Book | 2016 49 50 THE CPA CANADA AWARDS OF EXCELLENCE IN CORPORATE REPORTING AWARD oF EXCELLENCE FINANCIAL REPORTING

PotashCorp

A long-time titan in corporate reporting, PotashCorp won the 2016 Award of Excellence in Financial Reporting. Don’t let the plain language fool you; PotashCorp’s fi nancial reports link strategy to performance and provide comprehensive and balanced information. In short, they exemplify excellence.

A widely recognized leader in high-quality Also setting PotashCorp apart were the links corporate reporting, PotashCorp narrated a between goals and performance. Annual perfor- well-organized and complete story that went mance was discussed in the context of business above and beyond in explaining the company’s strategy. The disclosure included an insightful strategies, risks, uncertainties, forecasts explanation of performance against goals, and outcomes. objectives and short- and long-term targets, as well as variances from previously reported Clarity typifi ed the disclosures. Over and forward-looking statements. The company was over, judges highlighted the e ectiveness of equally e ective at outlining risk management, PotashCorp’s use of plain and balanced language describing how it developed its approach and to present a wealth of information linked to a framework. Its evaluation included risk factors, short, focused letter from the chief executive data and a risk-ranking matrix. Further, it clearly o cer. Its well-developed board skills matrix disclosed key earnings sensitivities, assumptions and corporate governance framework included and critical estimation uncertainties that have a board and management composition, evalua- signifi cant risk of resulting in a material impact tions, continuing education, communications to assets and liabilities, revenues and expenses. and diversity. Outstanding design made it easy to absorb the PotashCorp presented eleven years of fi nancial comprehensive amount of information. Colour, data and trends, enabling investors to make photographs, charts, white space, captions, comparisons and understand the company’s headlines, type styles, graphics and continuity of goals as well as the drivers of its production, design were all e ectively used. Well-organized, operations and performance. This comparative relevant information was presented together, so approach extended to the quarter. An analysis that accounting policies, estimates and judgments of the quarter’s cash fl ows, liquidity, fi nancial pertinent to a particular statement item were set performance and continuing operations enabled out in the note on that item, making the report investors to compare it with previous periods. easier to navigate and the individual topics easier to understand.

JuDgES’ Book | 2016 51 52 THE CPA CANADA AWARDS OF EXCELLENCE IN CORPORATE REPORTING HoNouRABLE MENTIoN FINANCIAL REPORTING

Intact Financial

Intact Financial Corporation won two awards in 2016, including Honourable Mention in the Financial Reporting category. The corporation did a superb job of communicating a complex business in a user-friendly manner.

Judges commended Intact for the clarity and Judges characterized Intact’s explanation of risk specifi city of its fi nancial disclosure. “All the management, risk profi le and appetite for risk as information was provided in a readily readable excellent. Clear and comprehensive explanations fashion that was a pleasure to review,” said one. of assumptions and exposure to risks enhanced “On completion of the review one had a good the reporting of all mandated IFRS disclosures, sense of the strategies, accomplishments and and extended to an admirable discussion and outlook of the company.” reconciliation of non-IFRS measures.

Using plain language, Intact provided a succinct Intact provided helpful ratios and e ectively and pleasing overview of its mission/vision, strategy structured the reporting of variances in a and fi nancial highlights. A strong chairman’s consistent manner. Quarterly reporting identifi ed message singled out good governance practices, changes in business and assumptions, while while the chief executive o cer’s message the management’s discussion and analysis addressed performance against strategy. Judges cross-referenced information contained in the praised the company for providing strong fi nancial statements. The comprehensive operat- governance disclosure, an e ective at-a-glance ing environment disclosure helped readers summary and specifi c examples of changes understand the actual and potential impact on that improved productivity. results. Overall, the fi nancial information was presented with high quality and clarity. Useful summaries and overviews earned particular applause. Judges highlighted the company’s Good design—which extended to the disclosure of key performance indicators (KPI) as company’s supplementary materials—created best in class, and commended the unconventional an impressive framework for Intact’s disclosure. inclusion of KPI defi nitions. A strong strategic Judges appreciated the separate table of overview, a clear outline of the corporate mission contents for accounting policies and the and profi le, as well as key highlights and trends comprehensive glossary. were presented in an easily assimilated format. Intact also provided a forward-looking orientation Intact Financial Corporation also won the 2016 with a bird’s-eye view of the organization and Award of Excellence in Electronic Disclosure – its products and services. see page 63.

JuDgES’ Book | 2016 53 Leading practices in sustainability reporting Sustainability reporting comes of age

2016 Award of Excellence in Sustainability Reporting Goldcorp Honourable Mention Suncor Energy Inc.

This year marked a shift in reporting as 2. Integrate sustainability with strategy excitement about innovation gave way to and governance respect for maturity. The winners are seasoned We know sustainability has “gone mainstream” reporters who exemplify an increasing level of when we see detailed reporting on governance sophistication in sustainability reporting. structures for sustainability (BMO); disclosure of how input from stakeholders a” ects strategy The six companies that were shortlisted this year (BMO again); and when the annual report is the (Barrick Gold Corporation, BMO Financial Group, sustainability report (Resolute). Resolute was the Goldcorp, Resolute Forest Products, Rogers only one of our short-list entrants to integrate its Communications Inc. and Suncor Energy Inc.) sustainability and annual reporting. Goldcorp’s produced outstanding reporting, each showing overall corporate vision, “Together creating maturity in di” erent ways. sustainable value,” also demonstrates strong sustainability integration. 1. Follow through on materiality analysis Materiality has been a consistent theme in 3. Know your audience judges’ comments for the past few years and, Reporters are increasingly challenged to decide as sustainability reporting comes of age, judges’ who their reporting is for – professional analysts, expectations are rising. It’s not enough to discuss community stakeholders, mobile users or some the materiality process and show the results. combination of these. Online reporting o” ers Top-tier reporters used it as the basis for more opportunities for innovative engagement organizing the report (Barrick). Suncor made its but can frustrate users who want to download a material topics a focus of the CEO’s letter. Another report to read later. It’s important to know who excellent practice was to show how di” erent the user is and how they prefer to access stakeholder groups prioritize material topics, as the information. Rogers’ reporting was judged Rogers did. Judges also highlighted Rogers for to be appropriately visual and accessible for a obtaining independent assurance of material communications company, for instance. Goldcorp indicators. A further test of the authenticity of the satisfi ed diverse user needs with e” ective materiality process is the extent to which material graphics, drill-down capability and photos, topics are addressed in other reporting vehicles resulting in a lengthy report. Several entrants such as the annual report. provided both PDF versions and online options.

54 THE CPA CANADA AWARDS OF EXCELLENCE IN CORPORATE REPORTING 4. Be transparent about challenges 6. Explain performance trends Transparency was an important factor in this Performance data is essential to support the year’s awards. Mature reporters are comfortable assertions in reports. Our short-list reporters all talking about the key risks facing their company provided at least three years of data for most and, in some cases, their industry. They are able indicators. Suncor provided fi ve years of data for to discuss potentially controversial issues with the company overall and by site. Top reporters appropriate depth and balance, and provide an also excelled at making sense of the data with avenue for report users to fi nd more information analysis and context. Judges encourage reporters if needed. Our judges pointed to Goldcorp’s to provide comparison to short- and long-term handling of human rights, Suncor’s call for targets. Independent assurance adds credibility collaboration on climate change, and Rogers’ to data. To be most e ective, assurance should disclosures on releasing information to law cover most of the material indicators (Rogers). enforcement agencies as examples of appropriate transparency about challenging subjects. Other ways to demonstrate transparency include Susan Todd, B.Comm, MRM, CPA, CA publishing the minutes of advisory bodies and Principal, Solstice Sustainability Works assurance reports (Barrick).

Henry Stoch, BSc. 5. Develop depth of content Partner, Deloitte Strong reporters provide a depth to their discussion that is not seen in all reports. They may Lead judges, Sustainability Reporting break out contextual information in additional ways, as Barrick did in disclosing the ownership This category was judged by a panel of independent structure of their mines; provide a life cycle Canadian sustainability reporting experts under the analysis (Resolute); or disclose rare insight, leadership of Susan Todd and Deloitte’s Sustainability such as Suncor’s section on political lobbying. and Climate Change National Leader Henry Stoch. Goldcorp’s “Your questions and concerns” sections, combined with excellent depth of GRI reporting, also stood out.

JuDgES’ Book | 2016 55 56 THE CPA CANADA AWARDS OF EXCELLENCE IN CORPORATE REPORTING AWARD OF EXCELLENCE SUSTAINABILITY REPORTING

Goldcorp

Goldcorp is not afraid to tackle di® cult topics. The company earned this year’s Award of Excellence in Sustainability Reporting for producing transparent reports that addressed challenging issues.

Long recognized for high-quality reporting, By disclosing its procedure for determining Goldcorp focused on materiality. materiality and detailing how material issues are managed, the company enabled the reader Its top-class narrative did an outstanding job to gauge rigour and distinguish between issues of linking corporate strategy with sustainability. of higher or lower materiality. The independent At the same time, it provided the reader with a assurance statement and challenges section keen understanding of the company’s scale, the were also valuable additions, enhancing the countries in which it operates, its interaction in report’s transparency and credibility. the value chain and its major products and services. Goldcorp’s organizational governance “The report appears to be fair, transparent and and its role in overseeing sustainability were balanced,” said a judge. “It included both positive described, as were key stakeholder groups, their and negative aspects of performance, and did not roles and how often they were engaged. There omit signifi cant information that is challenging or was a clear framework for putting sustainability unfl attering about the company’s sustainability into practice, a good discussion on management risks or performance.” systems and a strong analysis of performance. In taking this contextual approach, Goldcorp Goldcorp also won the 2016 Award of Excellence demonstrated that it understood its key in the Mining industry – see page 37. sustainability impacts and opportunities and the role of its sector, supply chain and customers in addressing sustainability.

The company’s review of its materiality process and systems refl ected a similar understanding. Goldcorp clearly identifi ed the reporting standard used, explained how it was applied in practice and described the quality assurance process.

JUDGES’ BOOK | 2016 57 58 THE CPA CANADA AWARDS OF EXCELLENCE IN CORPORATE REPORTING HoNouRABLE MENTIoN SUSTAINABILITY REPORTING

Suncor Energy

By integrating sustainability into its overall corporate reporting, Suncor Energy Inc. once again demonstrated its leadership in the sustainability reporting fi eld. Earning high marks for a best-in-class CEO letter and a comprehensive discussion of risk, the company won Honourable Mention for Sustainability Reporting.

Suncor Energy maintained its traditional strong and a robust description of the company’s showing in the category with focused, credible collaborative e orts with First Nations and and quantitative reporting. This oil producer other external groups, as well as an excellent and sustainable-energy company produced section on political disclosure. complete and transparent reports that emphasized strategy, risks and materiality. This comprehensive and integrated approach characterized Suncor’s corporate reporting as In describing the chief executive o cer’s letter a whole. The company integrated sustainability as best in class, judges noted its singular focus into its fi nancial reporting, providing insights on materiality. This not only set the tone for the in a discussion in the annual report. Performance company’s overall disclosure, but the impressive data helped readers understand Suncor’s narrative refl ected a level of reporting maturity structure, and tables presented extensive not seen among its other entrants. Materiality explanatory notes and contextualization. It itself was analyzed in a hyperlinked matrix that supplied site-specifi c and consolidated data, was easy to understand. and reported fi ve-year trends. With links to external initiatives and a substantial amount Fair, transparent and balanced reporting of policy-based documentation in the public on both positive and negative aspects of policy transparency section, Suncor’s sustainability performance is the hallmark of excellence in reporting was comprehensive, transparent this category. “Suncor really did grapple with and credible. the most serious management challenges it had,” said one judge, noting the extensive discussion on measurement challenges in the performance section, and the explicit treatment of greenhouse gas and fossil fuel risk. The report incorporated the views of stakeholders

JuDgES’ Book | 2016 59 Leading practices in electronic disclosure

A need for corporate dialogue

The 2016 Award of Excellence in Electronic Disclosure Intact Financial Corporation Honourable Mention WSP Global Inc.

In the fi eld of electronic reporting, benchmarks are WSP Global Inc. impressed judges with a strong moving targets and the defi nition of innovation is overall performance, most notably advanced constantly changing. The needs of users evolve as features that allowed investors to easily access rapidly as the technology available to address them. and interpret data.

The Electronic Disclosure judging panel evaluated The attributes of winners in this category have how well entrants presented Internet-based gone through a remarkable transformation over disclosures that were well organized, simple to a relatively short time. Not too many years ago, navigate and included ways to make data entrants augmented their printed reports with relatively easy to use. websites containing PDF fi les of their reports. Gradually, web-based content became more The judges also took a special look at innovation. sophisticated, including key performance Indeed, with the continuing advances in technology, indicators and data analysis tools. keeping pace is crucial. It is di® cult for a company to do well in Electronic Disclosures without a Then came the mobility revolution; smartphones strong commitment to innovation. and tablets became the primary means of accessing Internet-based information. Presentations There was tough competition in this category, but had to be re-formulated to perform e” ectively in the end, the entrant that led the way in terms on these portable devices. of innovation took the top award. Judges were unanimously impressed with the progress Intact Now, social media is a major means of communi- Financial Corporation made this year, propelling cation with investors. Companies are increasingly itself to rank among the very best companies in using platforms such as Facebook, YouTube, corporate disclosure and using technology to do so. Twitter, LinkedIn and others for investor relations. Most companies are still experimenting, but some Honourable mention in this category went to have developed sophisticated social-media a relative newcomer to the awards program. programs. Those are the ones to watch.

60 THE CPA CANADA AWARDS OF EXCELLENCE IN CORPORATE REPORTING The Electronic Disclosure judging panel considered access to greater volumes of relevant information, all of these aspects of reporting – website e ec- perhaps including big data. tiveness, adaptability to mobile units and use of social media. An elemental characteristic of the Internet is the facilitation of interaction. As people who grew The judges’ key objective is to determine whether up with the web become more prominent in the entrants convey the most important information investor community, they will expect interactivity e ciently and e ectively. To achieve high marks in and the ability to be heard. So far, corporate this respect, the information must be presented in reporting has remained very much in the paradigm a form that can be easily consumed. Thus, leading of management reporting to investors and other companies emphasize data tools and data analysis stakeholders. Companies need to move beyond centres, where data are set out in a format that this one-way reporting model, and interact with can be selected and downloaded for analysis in a their investors and stakeholders to create a true variety of software applications. corporate dialogue. Therein lies the greatest challenge to modern corporate reporting. Given the considerable progress, the looming question is – where do we go from here? Over the past year or two, much has been written about Gerald Trites, FCPA, FCA, CISA management’s growing use of data analytics. As President, Zorba Research this phenomenon continues, the users of investor Lead judge, Electronic Disclosure relations disclosures will become more accustomed to using data analytics for making data-driven The Electronic Disclosure panel rates entrants on a decisions rather than intuitive ones. There will be detailed list of criteria that encompasses web-based a growing need for companies to disclose their investor relations content: navigation and usability; information in a way that optimizes the use of data innovation; social media; and overall e ectiveness analytics. This will involve providing pathways for and best practices.

JuDgES’ Book | 2016 61 62 THE CPA CANADA AWARDS OF EXCELLENCE IN CORPORATE REPORTING AWARD oF EXCELLENCE ELECTRONIC DISCLOSURE

Intact Financial

Intact Financial Corporation made an impressive showing this year, winning two awards including the Award of Excellence in Electronic Disclosure. Its comprehensive, interactive and responsive website was clearly designed with investors and stakeholders in mind.

Judges found Intact’s site to be a beacon of The interactive annual report made the fi nancial innovation that not only disclosed fi nancial data and the letter to shareholders available in results but made valuation and analysis readily various formats. Intact’s most recent fi nancial accessible. It featured an impressive interactive reports were highlighted for easy access, and underwriting-performance tool which tracked links pointed to related content, a glossary fi ve-year performance, allowing users to and industry sites. In addition, setting up email deconstruct profi tability metrics to the individual alerts and ordering information was simple components that drove the overall result. and e ective. Quarterly and annual data appeared in charts and tables, downloadable to Excel. A clear and organized Why Invest section highlighted relevant fi nancial information. A The responsiveness of the website itself was also visually appealing design not only underscored praised. It automatically adapted to a smartphone, the site’s ease of navigation, but also enhanced tablet or computer, and allowed users to share its functionality. information through social media channels. Intact also received Honourable Mention in the Similar fl exibility infused the website’s content. Financial Reporting category – see page 52.

JuDgES’ Book | 2016 63 64 THE CPA CANADA AWARDS OF EXCELLENCE IN CORPORATE REPORTING HoNouRABLE MENTIoN ELECTRONIC DISCLOSURE

WSP global

WSP Global Inc. earned an Honourable Mention in Electronic Disclosure for its organized, interactive and responsive website, which is linked to an engaged social-media presence.

Visitors who land on WSP Global’s site can The website’s innovative features enabled readily access a wealth of information about investors to not only access data, but interpret the professional engineering consulting fi rm. By it as well. Judges awarded high marks for robust treating the site as a communications vehicle in analytical tools, such as a customizable stock price its own right, the company demonstrated best chart, stock calculator and real-time updating. practices in electronic disclosure. The navigation “This is a complex site delivering complex data was intuitive, and information was easy to fi nd. in real time,” said a judge of the company’s responsive website, which automatically adapts Judges were impressed with the well-organized for viewing on a smartphone or tablet. and intelligent hierarchy of the investor relations landing page, as well as its clean design and Such innovations set the stage for WSP Global’s attractive colour scheme. An engaging graphic extensive presence on social media, where it interface featured full dropdown menus and has highly engaged Twitter, Facebook, LinkedIn, easily available links, plus a downloadable YouTube and Google+ accounts. With “sharing” version of the annual report. buttons on every page of its website, visitors are encouraged to participate in the conversation.

JuDgES’ Book | 2016 65 Leading practices in corporate governance disclosure Above and beyond regulatory requirements

The 2015 Award of Excellence in Corporate Governance Disclosure TELUS Honourable Mention Enbridge Inc.

The Corporate Governance Disclosure category It disclosed a formal policy for the number was hotly contested this year. In the end, the 2016 of women on the Board of Directors and in Award of Excellence in Corporate Governance executive positions. It also disclosed the identities Disclosure was awarded to TELUS. of independent and non-independent directors and described the basis for that determination. TELUS has consistently presented corporate The Management Information Circular clearly governance disclosures that are comprehensive, stated the company’s recent adoption of a detailed, well organized and reader-friendly, formal diversity policy. and go beyond regulatory requirements. Its disclosures were especially strong in critical Enbridge published voting results in a timely areas such as Board composition and mandate, manner and clearly disclosed the majority code of ethics, business conduct, executive voting policy. compensation and ongoing Board assessments. The overall scores for the top participants were TELUS continued to demonstrate its commitment close, and several strong entries came near to to achieving gender diversity in the boardroom. TELUS and Enbridge. Some of the key themes TELUS not only disclosed its Board Diversity that di” erentiated these stronger entrants include: Policy but also reported the progress of the • increased transparency regarding disclosures diversity initiative as well as a number of others of strategic planning, risk management, that enhance corporate governance on a internal controls and communication continuous improvement basis. practices and policies • details relating to Enterprise Risk Management The 2016 Honourable Mention in Corporate programs, including the Board’s involvement Governance Disclosure went to Enbridge Inc. • eff ective charts and graphics showing Board composition, member qualifi cations, The Enbridge disclosures were particularly impres- expertise, independence criteria and sive in the areas of board composition, nomination fi nancial literacy of directors and Audit Committee oversight.

66 THE CPA CANADA AWARDS OF EXCELLENCE IN CORPORATE REPORTING • descriptions of the Audit Committee’s PwC applauds all the participants in the 2016 review of key disclosures, such as fi nancial Awards of Excellence in Corporate Reporting for statements, MD&A and earnings press their continued commitment to transparent and releases objective corporate governance disclosure. • descriptions of board diversity programs – an area that continues to gain momentum, supported and encouraged by new guidance Mike Harris, FCPA, FCA, CIA, ICD.D from various regulators Senior partner, PwC • descriptions of the steps to perform board Risk Assurance Services leader, BC Region, and and committee evaluations (including Corporate Governance Practice leader nationally frequency, criteria and personnel involved in Lead judge, Corporate Governance Disclosure the process) as well as actions and changes made as a result of the review, and For the 14th consecutive year, PwC evaluated responsibility for their implementation corporate governance disclosures for publicly traded companies. The most recent annual The rigorous judging criteria delved into shareholder meeting Management Information disclosures around: Circular, Annual Information Form and company • Board Composition websites were used to determine the winners. • Board Mandate and Responsibility The core judging criteria were based on the • Board Position Descriptions requirements and recommendations from National • Board Orientation and Continuing Education Policy 58-201, National Instruments 58-101 and • Code of Ethics and Business Conduct 52-110, the Dodd-Frank Wall Street Reform and • Nomination of Directors Consumer Protection Act and the Internal • Compensation Control-Integrated Framework (COSO). • Board Assessments • Audit Committee Mandate

JuDgES’ Book | 2016 67 68 THE CPA CANADA AWARDS OF EXCELLENCE IN CORPORATE REPORTING AWARD oF EXCELLENCE CORPORATE GOVERNANCE DISCLOSURE

TELuS

TELUS captured three awards in 2016, with high quality reporting that refl ected the company’s unique style: a balance of elegant design with no small amount of wit. The telecommunications company earned the Award of Excellence in Corporate Governance for comprehensive and transparent reports that stood out in an extremely competitive fi eld of entrants.

TELUS took an exhaustive approach to governance work, the use of external auditors for non-audit reporting. It clearly disclosed the dates of Board engagements and corporate policies on the of Director meetings as well as the topics of review of fi nancial statements. The company discussion. Multiple tables displayed members’ also disclosed that the corporate governance meeting attendance, competencies, committee committee hired an external governance membership and independence. The mandate, consultant to evaluate the board. It described meetings and activities for each board committee this assessment process, how it was governed were also disclosed. The company clearly stated and what changed as a result of the review. its targets for the number of women in senior executive positions, reported on its progress With so much information to present, and so for meeting those targets and described how many processes to relay, good design was critical. the company identifi ed and nominated The report’s clean and professional layout was female directors. well organized and attractive to readers. Tables made comprehensive and exhaustive information At TELUS, being open to feedback—whether easy to navigate. Headings were used e ectively, from stakeholders, auditors or external and sections transitioned seamlessly from one consultants—entails transparency about its to the next, making for a smooth read. assessment of that feedback, and its process for making changes if necessary. In reviewing the TELUS also won the 2016 Overall Award of activities of the Audit Committee, for example, Excellence and the Award of Excellence for the TELUS described how it ensures the integrity Communications and Media industry – see pages of the company’s internal controls and 27 and 29. continually enhances those controls.

Judges highlighted the excellence of the disclosures relating to the appointment of external auditors, the review of the auditors’

JuDgES’ Book | 2016 69 70 THE CPA CANADA AWARDS OF EXCELLENCE IN CORPORATE REPORTING HoNouRABLE MENTIoN CORPORATE GOVERNANCE DISCLOSURE

Enbridge

Enbridge Inc. was recognized with an Honourable Mention for Corporate Governance Disclosure for e ectively presenting the composition of its board and executive team in a detailed and engaging format. It was one of two awards won by the natural gas distribution company this year.

Well-presented profi les distinguished the a discussion of each committee’s impact on the company’s chairman from its chief executive company’s internal and external stakeholders, o cer, while each director profi le listed individual and noted which committees were responsible competencies, experience, professional for succession planning. In addition, Enbridge’s designations and independence. The wealth discussion of its whistleblower policy included of detail extended to director term limits, step-by-step instructions. including the names of those who asked for two-year extensions and the limitations of any E ective design made for a reader-friendly board members whose terms were lengthened. format. For example, strong use of colourful A graph demonstrated progress on achieving headings, detailed comment boxes and targets for the number of women on the board engaging images resulted in an easy-to-read and in executive positions. The company’s Code of Conduct. Defi nition boxes explained approach to onboarding new directors was concepts in greater detail, while tables also clearly outlined. Enbridge reviewed its demonstrated how executive compensation was criteria for assessing the board and published calculated and linked to annual performance. voting results, including the numbers for and withheld, in a timely manner. Enbridge also won the Award of Excellence in Corporate Reporting for the Utilities/ This focused approach typifi ed the balance of Pipelines group – see page 42. the company’s corporate governance disclosures as well. Enbridge explicitly disclosed each board committee’s responsibilities, and highlighted the year’s achievements. Judges were particularly impressed that committee descriptions included

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