It has been a year of challenge and change for the accounting profession. Within the broader business community, a focus on the reliability of financial information continues to dominate discussions. And within our profession, the evolution of effective financial reporting standards and practices continues to be of paramount concern.
It has been an active year for CGA-Canada as the Association continued to focus on its mandate to be an advocate for members, the profession, and the broader public interest. Throughout the year, CGA responded to exposure drafts on accounting standards and other matters of concern to the profession, spoke out publicly on many platforms, and internally, revised standards and continued the evolution of the CGA Program of Professional Studies.
Going forward, CGA-Canada will, as in the past, send a clear message about the importance of clarity and transparency in financial reporting and solid principles of good corporate governance.
Advocating for Public Practice Rights
With the support of the national Association, CGA New Brunswick initiated proceedings against the Government of Quebec under the Agreement on Internal Trade (AIT), because Quebec legislation restricts public accounting in some circumstances to Chartered Accountants (CAs). As a result, CGAs who practice public accounting in New Brunswick are unable to fully practice public accounting in Quebec.
CGA-Canada views the new federal legislation governing the not-for-profitsector –Bill C-21, the Canada Not-for-Profit Act – as unnecessarily restricting auditor choice for not-for-profit organizations, limiting the pool of available auditors and increasing costs. The Association presented its position to the House of Commons Standing Committee on Industry, Science and Technology in March 2005.
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Research and Standards Department Expanding
In its second year, the Research and Standards department produced and publicly launched two research reports. These reports, Growing Up: The Social and Economic Implications of an Aging Population and Measuring Up: A Study on Corporate Sustainability Reporting in Canada, were well received and garnered substantial public and media interest.
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New Appointment to International Accounting Standards Board
CGA-Canada is pleased to report that Dany Girard, FCGA, CGA-Canada’s First Vice-Chair, has been appointed to a working group on Accounting Standards for Small and Medium Enterprises (SMEs). He was nominated by the International Federation of Accountants (IFAC) and subsequently appointed by the International Accounting Standards Board (IASB) in April 2005.
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Advances in Accounting Education
As a result of a comprehensive competency study and practice analysis, enhancements to the CGA Program of Professional Studies were announced in 2004. The advances reflect CGA-Canada’s commitment to set the highest standards for CGA certification and meet the changing needs of the business community.
The revisions to the curriculum are the result of two years of research into the evolution of accountancy and focus on the dual role accountants play – upholding public trust and acting as strategic business leaders.
The Association’s Professional Applications (PA) requirement has been revamped and will now consist of two capstone courses and examinations, designed to integrate and apply competencies, and to expose students to different perspectives of the profession. In addition to the PA component, candidates are required to complete two career option courses and the accompanying examinations. The revised certification program will be implemented in March 2006.
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Revised Standards
CGA-Canada’s Board of Directors approved a revised Continuing Professional Development (CPD) standard that ensures the Association’s CPD guidelines comply with a new international standard. The CPD standard requires CGAs to meet 120 hours of professional development in a moving three-year period, and that a minimum of 60 of those hours be verifiable activity. The most significant change is the move to measure professional development in hours rather than credits.
Continuing efforts to strengthen public confidence in the accounting profession, CGA-Canada’s National Professional Standards Committee (NPC) proposed a new CGA Independence Standard. The Independence Standard was approved by the CGA-Canada Board in December 2004. The proposed standard provides a framework for practitioners and requires them to adopt safeguards to assess and protect against potential threats.
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