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One of the challenges for chemical processes today, from a safety and profit standpoint, is the potential that cyberattacks could be performed on components of process control systems. Safety issues could be catastrophic; however, because the nonlinear systems definition of a cyberattack has similarities to a nonlinear systems definition of faults, many processes have already been instrumented to handle various problematic input conditions. Also challenging is the question of how to design a system that is resilient to attacks attempting to impact the production volumes or profits of a company. In this work, we explore a process/equipment design framework for handling safety issues in the presence of cyberattacks (in the spirit of traditional HAZOP thinking), and present a method for bounding the profit/production loss which might be experienced by a plant under a cyberattack through the use of a sufficiently conservative operating strategy combined with the assumption that an attack detection method with characterizable time to detection is available.

The purpose of this paper is to compare the value relevance of environmental provisions as recorded under Canadian/U.S. GAAP and IFRS accounting frameworks with consideration of the impact of voluntarily issuing stand‐alone sustainability reports. The value relevance of environmental provisions is tested using a modified Ohlson (1995) model. We exploit IFRS reconciliations as a quasi‐experimental setting to conduct this comparison. Results indicate that environmental provisions recorded under either framework only act as liabilities for oil and gas firms that release stand‐alone sustainability reports. For other firms in the oil and gas industry, and the mining industry, the liability nature of these provisions appears to be discounted by the market. Furthermore, for firms in the oil and gas industry that do not have stand‐alone CSR reports, provisions appear to be interpreted by the market as a costly signal about future growth. Instead of downwardly affecting market values, this information is associated with higher market values. In terms of the transition to IFRS, we find that, while the IFRS provisions are significantly higher than under former GAAP, they do not improve value relevance for investors. Accounting standard setters should consider examining the changes in the current standards from the original Canadian environmental provision reporting requirements under Capital Assets section 3060.39, as it was rightfully shown to be a relevant proxy for unbooked liabilities (Li and McConomy, 1999; Bewley, 2005) rather than earnings expectancy. The study builds upon prior research to examine the value of accounting standards that have gone through significant changes.

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