News from CGA-Canada
FROM: JUL-AUG 2004 ISSUE
CGAs Appointed to AcSOC, AcSB
In April Thomas Allen, QC, Chair of the Accounting Standards Oversight Council (AcSOC), announced the appointment of a CGA to this country’s accounting oversight body. Gilles Bédard, FCGA, Assistant Auditor General for the province of Quebec, was appointed to AcSOC for a three-year term starting April 1, 2004.
At the same time AcSOC’s Nominating Committee, which is chaired by Senator Michael Kirby, recommended the appointment of Robert Morgan, CFA, CGA, of Forbes Morgan Consulting (Montreal) to the Accounting Standards Board (AcSB). The recommendation was accepted and Morgan’s three-year appointment began April 1.
CGA-Canada President and CEO Anthony Ariganello, CGA, and the Association’s Assistant Vice-President, Government and Regulatory Affairs, Carole Presseault, met with Morgan in May to discuss issues related to standards setting. CGA-Canada has supported an expanded role for CGAs in Canadian accounting standards-setting.
Other CGAs involved in that process include David Sela, CGA, of Best Buy Canada Limited (Vancouver), who is a member of the Financial Instruments Working Group, and Bill Lovatt, CFA, FCGA, of Great West Life Assurance Co. (Winnipeg), who sits on AcSOC.
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CGA-Canada President and CEO on Speaking Tour
Anthony Ariganello is speaking on behalf of the Association at two platform opportunities this summer. These speeches are part of a national tour that takes Ariganello to key centres across the country to address issues affecting the business and accounting communities.
The focus of Ariganello’s speeches is the importance of transparency and financial integrity in today’s business climate. The presentations focus on a number of themes: the idea that business leaders need to step up and take ownership for driving positive change; that the accounting profession and governing bodies need to be more vocal and proactive in identifying opportunities to uphold corporate governance; and that regulatory practices need to be more responsive to changes in the business environment.
In June, Ariganello delivered a speech titled, Towards a New Era in Corporate Canada: Clarity, Transparency, and Accountability in Financial Reporting, to the Halifax Chamber of Commerce. He also gave a similar presentation in Calgary.
Ariganello noted that trust in chief executive officers is at an all-time low. He suggested that one of the factors at the heart of many corporate governance problems is reliance on a rule-based — rather than principle-based — regulatory structure. He pointed out that “rules” will never be sufficient to keep everyone focused on good corporate governance, and maintained that it is up to leaders to demonstrate financial integrity in all situations, and that the accounting profession can encourage and support this key principle.
There is progress being made, Ariganello indicated. Three recent positive measures that will lead to financial transparency are the Accounting Standards Board’s new requirement that stock options be expensed in financial statements, new regulations around CEO/CFO sign-off, and the decision by the Canadian government to reintroduce the Office of the Comptroller General.
The Halifax and Calgary speeches follow on the heels of another engagement in Victoria, where Ariganello was the guest speaker at CGA-BC’s annual Member of the Legislative Assembly luncheon. The event is intended to promote strong relations between the provincial CGA association and the B.C. government.
In the presentation, he commended the B.C. government’s use of generally accepted accounting principles and its commitment to deliver a balanced budget for the province. The luncheon was attended by 90 people, including 31 MLAs and nine cabinet ministers. CGA-Canada was also represented by Barbara Cameron, vice-president of Public Affairs.
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CICA, CMA discuss possible merger
On May 11, the Canadian Institute of Chartered Accountants (CICA) and the Certified Management Accountants (CMA) announced that the two organizations have held discussions regarding a merger.
Guiding principles for the merger process had already been approved by the leadership of the national CICA and CMA bodies, but were to be voted on at the provincial and territorial levels in late spring. If there is provincial and territorial approval, the merger will be subject to member ratification in the fall of 2004 and could be implemented in 2005. After the merger, members would carry the CA designation.
CGA-Canada President and CEO Anthony Ariganello, CGA, believes the merger may actually be a positive step for the Canadian financial landscape. “While its outcome is still up in the air, these merger talks could reduce some of the perceived confusion in the marketplace,” says Ariganello. “The business community could have a better, clearer choice when it comes to selecting accounting and financial services.”
He went on to say, “Our brand occupies a high level of public respect and trust. The evidence of this high standing is reflected in the growth of the number of very qualified young professionals seeking career success as CGAs, and the senior positions our members hold in the business community.”
Another development announced May 11 was CGA-Quebec’s intention to begin talks with CA and CMA to form a single accounting designation in Quebec. These discussions emerged because all three designations in the province operate under the same legal framework and a similar educational system.
CGA-Canada will continue to monitor each of these developments closely while collaborating actively with the entire profession to address fundamental issues. Updates will be available in upcoming issues of CGA Magazine and on the CGA-Canada Web site — www.cga-canada.org
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