The virtues of virtualization

If you´re in IT, you probably know all about virtualization. But the rest of us are left wondering what the buzz - claiming that virtualization is the answer to everything from IT security to global warming - is all about.

Virtualization may be the current hot topic in IT, but it´s not new, and many companies have been using some common implementations of it, like Virtual Private Networks and remote desktop sessions, for a long time. For more information about virtualization, and the benefits and potential risks of this technology, click here.

Adopting virtualization technologies in your organization should trigger the creation of new IT policies or revisions to existing ones. Information Technology PolicyPro is a powerful, cost-effective tool to create and distribute your own IT policy manual. For more information, including an offer for a 30-day, no-obligation trial, click here.

<< Top of Page

Road rage on the information highway

The Canadian Association of Internet Providers (CAIP) is locked in a controversy with Bell Canada over Bell´s use of "traffic shaping" technologies to limit Internet traffic on its network, both for its own customers and the customers of other ISPs who use it. CAIP claims that Bell is harming its members by deliberately "throttling" the performance of the network.

Bell defends traffic shaping, saying that it is needed during peak periods to limit peer-to-peer traffic created by users who download and share huge music and video files and slow service for everyone else. A Bell spokesman claims that five percent of users consume more than 50 percent of the network´s capacity, and 60 percent of their usage involves peer-to-peer traffic.

CAIP challenged traffic shaping in April, arguing that it was anti-competitive. It asked the CRTC for temporary relief while the commission investigated the issue. On May 14th the CRTC rejected this request, but the next day released a plan to address the issues raised by the CAIP complaint, asking for all submissions by June 26th and promising a decision within 90 days.

While all this was going on, the Canadian Internet Policy and Public Interest Clinic (CIPPIC) filed a privacy complaint on May 9th with the Privacy Commissioner of Canada over Bell´s use of deep packet inspection (DPI) technologies as the cornerstone of its traffic shaping strategy. DPI looks beyond the packet header inside the Internet packets themselves, analyzes their contents, and depending on the result, disrupts the transmission.

CIPPIC claims that Bell is using DPI to manage traffic of customers of other ISPs on its network, but because is has no contractual relationship with these users, it cannot obtain consent for the inspection of their information. Even for its own customers, Bell is failing to obtain informed consent.

For the CRTC press release denying interim relief to CAIP, click here. For the CRTC plan to address the CAIP complaint, click here. For the CIPPIC privacy complaint, click here.

<< Top of Page

Proposed CRA position on charity fundraising

The Canada Revenue Agency recently released a consultation paper regarding a new policy on fundraising by registered charities that will replace existing CPS 001 "Applicants that are Established to Hold Periodic Fundraisers".

The new policy will explain:

• How to distinguish between fundraising and other expenditures
• How to classify and report activities intended to both raise funds and advance charitable programming
• When fundraising activities may preclude registration or result in revocation of registration
• What factors are considered by CRA when assessing whether the fundraising undertaken puts a charity’s registration status at risk

CRA invites charities, government departments, the general public and individuals involved in the charitable community to submit any comments before June 30, 2008.

For an in-depth analysis of the consultation paper and the issues around fundraising and the allocation of charitable and fundraising expenses, click here for an article by Terrance S. Carter, B.A., LL.B., and Kimberley A. LeBlanc, B.A., LL.B., of Carters Professional Association, a full-service law firm with a focus on charities and not-for-profit organizations.

Not-for-Profit PolicyPro (NPPP), the latest addition to the Internal Control Library, features more than 25 ready-to-use policies and 50 helpful procedures, including policies on Financial Management, Revenues, and Advocacy. For more information on NPPP, click here.

<< Top of Page

Competition Bureau´s Corporate Compliance Program

The Competition Bureau has recently released guidance for businesses to prevent or minimize the risk of contravening the Competition Act and other related statutes such as the Consumer Packaging and Labelling Act, the Textile Labelling Act and the Precious Metals Marking Act.

The intent of the information is to help Canadian businesses develop their own compliance programs that will prevent contravention of the Acts, to detect inadvertent or unauthorized actions at an early stage, and to identify contraventions committed by other companies. Such programs serve an important risk-management function by promoting self-reporting.

For a link to the Competition Bureau document, click here.

Operations and Marketing PolicyPro (OMPP) features more than 45 ready-to-use model policies and procedures needed to create effective internal controls in areas such as Design and Development, Manufacturing, and Sales and Marketing. Each policy includes expert advice about why it´s needed, and how it can be implemented and customized. For more information about OMPP, click here.

<< Top of Page

Update on IFRS

Most of you know by now that International Financial Reporting Standards (IFRS) will be replacing GAAP for most publicly-accountable companies in January 2011.

To keep on top of all the latest information, remember to bookmark the CICA´s IFRS web page. Check it out regularly to keep up to date with all the latest news and the CICA´s guidance on preparing for the change. For example, click here for the CICA Readers´ Guide to Adopting IFRSs in Canada, an indispensable, manageable approach to the 2400-page IFRS Exposure Draft.

Release 2008-03 (June 2008) of Finance and Accounting PolicyPro features a new policy on IFRS that will help your organization make a smooth and efficient transition to the new standards. Click here for more information on FAPP.

<< Top of Page

XBRL becomes the standard

In 2006, we wrote that XBRL would very likely become an international standard for reporting business and financial data. XBRL, a variant of XML, allows the exchange of financial information by tagging financial statement items using a structured, standardized markup language that allows financial information to be processed automatically in various ways for different users.

That day has come. On May 14th, the U.S. Securities and Exchange Commission announced that it had unanimously voted to formally propose that XBRL be used to provide financial information beginning next year for the largest companies, and within three years for all public companies.

The move to XBRL can be seen as a companion to the migration to international financial reporting statements. As business becomes global, financial standards and financial reporting must keep pace.

Want more information on XBRL? For an SEC "spotlight" on the issue click here. For the home page of XBRL International, the not-for-profit worldwide consortium of companies and agencies working to build and promote XBRL, click here.

And for the Canadian office of XBRL International (with links to Canadian events and resources) click here.

<< Top of Page

About Inside Internal Control

Editor: Colin Braithwaite, Managing Editor, PolicyPro.

Please do not reply to this Email.

Inside Internal Control is a complimentary service published by First Reference Inc. and is sent to you monthly. Each issue provides headlines and summaries of news that affects internal controls and policies in Canada.

Please forward Inside Internal Control to your colleagues.

Please send any comments or suggestions about Inside Internal Control to the editor. For information about the Internal Control Library, click here. For more information about First Reference, including our terms of use, disclaimer, privacy policy and other legal matters, visit www.firstreference.com.

This publication is written for informational purposes only and should NOT be relied upon as legal advice or opinions. The reader should always obtain legal advice from a qualified lawyer or other qualified professional, which will be responsive to the case or circumstance of the individual. Please note that the content provided in this Bulletin or any content contained in or made available through any third party website linked to from this newsletter, is provided "as is" without representations or warranties of any kind. All representations and warranties in respect of Content or Third Party Content, express or implied, including, without limitation any representations to warranties or conditions regarding accuracy, timeliness, completeness, non-infringement, merchantability or fitness for any particular purpose are hereby disclaimed.

Copyright ©2008, First Reference Inc. All Rights Reserved.