Advisory Board: Christmas gift follies and more

Amber MacArthur
Toronto-based co-founder of MGImedia.ca and author of Power Friending, a book on social media for business

How can my business benefit from using tablet PCs?
After weeks of rumours Research in Motion's foray into tablet PCs, in late September, the Waterloo, Ont.-based firm previewed its BlackBerry PlayBook, which is expected to hit stores in early 2011. Weighing in at less than a pound, the device features a seven-inch-diagonal touchscreen, front- and rear-facing cameras and, unlike Apple’s iPad, the ability to play multimedia content built on the  Adobe Flash platform.

Samsung is among other big-name firms readying to launch tablet PCs. Its Galaxy Tab runs on Google’s Android operating system and is expected to take a small bite out of Apple.Although these products are generally marketed to the at-play crowd more than the at-work crowd, business folk are starting to realize that a tablet is a valuable addition to their arsenal of high-tech gear.

For starters, these computers are small and thin. This makes them great travel companions that are easy to slip into a purse, bag or briefcase. Moreover, a tablet is a friendly device to bring into a meeting. Unlike a laptop, which flips open and erects as a barrier between the user and other people in the room, a tablet PC can rest on a table and serve as an unobtrusive note-taking device—once you get used to the onscreen keyboard, which does take some time.

Most tablets also offer great battery life. The iPad, for example, will run for about 10 hours on a single charge.  That’s a significant length of time compared with the average laptop battery, which lasts for a few hours. 

Tablet PCs are also handy collaborative devices. Unlike a laptop, which you’re unlikely to pass around to allow colleagues to see whatever is onscreen, a tablet is a shareable piece of technology.

Finally, hundreds of thousands of software applications—many of them free—that can make you more productive are available for the iPad and Android-based tablets. Among them are Evernote, a note-taking app for iPad; and Astrid, a free to-do list manager for Android-based tablets.

Harvey Copeman, CSP
President and CEO of the Canadian Professional Sales Association in Toronto

With holiday season just around the corner, can you share some best practices in giving gifts to clients?
To start, investigate whether your clients have policies concerning accepting gifts, as many organizations limit the value of gifts or prohibit them entirely. Check with your client’s HR department to get the info you need without tipping off your client to your plans.

Next comes the tricky part: selecting an appropriate gift.Experts in this area advise that you should match your gift to the recipient’s interests. The challenge for you and your sales team is to do this while reflecting your brand positively.

Some sales managers don’t want to give their sales force that much control because they are concerned about three things: suitability of the gift, budget and efficiency, as they’d rather have their salespeople selling than shopping. As a result, they adopt a one-gift-fits-all policy. If you go this route, make sure your gift choice is appropriate for clients of all stripes. Avoid humorous gifts: what you think is funny might be offensive to a client. Also avoid a product with your logo on it, which constitutes a sales promotion rather than a token of your appreciation.

If budget is an issue, it is always better to give fewer gifts and spend more per gift. But don’t go overboard. You don’t want to embarrass or alienate your client with a gift that is perceived as too expensive.

In all cases, a handwritten card or note is in order, particularly since so much communication is digital these days. Also, be aware of cultural differences. For instance, I was reading recently that in China, a gift wrapped in white paper symbolizes death. You don’t want to make that mistake.

Packaging counts about as much as the gift, so don’t skimp here. It says that you care and value the relationship down to every last detail.

Lastly, if you get in this game, next year’s gift will need to be at least as good as this year’s, because clients remember.

Jeff Llewellyn, ca, TEP
President and Managing
Director of Corporate Finance at Meyers Norris Penny LLP in Calgary

Which of the new financial reporting standards for private companies is better for the average business?
As of next January 1, private com­panies must apply either International Financial Reporting Standards (IFRS) or Accounting Standards for Private Enterprises (ASPE) when preparing their annual statements. While it is up to enterprises to determine the appropriate framework for their financial reporting, there are some circumstances in which ASPE will prove to be more beneficial.

The primary consideration is your company’s strategies and future objectives. If you intend for your firm’s ownership to stay within the family or a select group of private individuals and you do not have any short-term plans to go public or be acquired by a public company, ASPE standards are a better fit. Should your plans include going public, but you do not currently have the financial or other resources needed for IFRS implementation, ASPE is still a sound option.

Private companies that raise capital only in Canada and have no plans to access public equity or debt markets will also prefer ASPE, since the complexity of accounting for and disclosing financial instruments is much less onerous. Private companies without foreign subsidiaries or a foreign parent company that follows IFRS should also consider adopting ASPE standards.

It is important to understand the needs of financial statement users. If there are only a few users of your company’s financial statements, and those users are able to request further financial information directly from the company, then the less complex ASPE is likely to meet your financial reporting needs. Extensive disclosure requirements may make IFRS reporting more expensive than ASPE reporting.

Applying the same accounting framework as your direct competitors allows readers and analysts to compare the financial position of your business better. Therefore, private companies not competing against global firms may find ASPE more appropriate.

There are significant differences between ASPE and IFRS, and in how adoption of either of these sets of standards will affect your private company. Deciding on the appropriate financial reporting framework is important, as is assessing the impact of that decision.