News from CGA-Canada
FROM:
NOV-DEC 2004 ISSUE
CGA-Canada AGM Date and Location
The CGA-Canada Annual General Meeting was postponed from September to Friday,
December 10, and will be held in Toronto at the Westin Harbour Castle hotel. Due to a change in Association
By-Laws, Financial Statements and the Annual Report will not be mailed to members. Both will be available for download from the
CGA-Canada Web site by
November 19, 2004. Proposed revisions to
CGA-CanadaBy-Laws and the official Notice of AGM are included with this issue of
CGA Magazine(members only).
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Two New Chapters in China
This past summer saw the establishment of CGA chapters in Shanghai and Beijing.
The Shanghai chapter formalized its structure with the election of a
13-member Board of Directors. Officers of the Board were also elected at the July meeting under regulations set out in the 2004
CGA-Canada International Chapter Operational Manual;
Wang Yongmei was elected chair in Shanghai. According to
Phil Zhang, CGA, Senior Manager of
CGA China, "Shanghai directors are feeling excited about the new chapter and working hard to prepare the chapter's action plan for
2004-05."
In August, the
China Financial and Economic News and
CGA-Canada hosted a forum for the CGA Beijing chapter titled "How a CFO Can Influence Your Business." That event was followed by the election of the Board of Directors of the Beijing chapter, with Chen Jiangen elected chair. Later in the month,
CGA-Canada, the Beijing chapter, and
Nankai University organized a session on teaching financial accounting via
e-learning. The session was led by
Tilly Jensen, a professor at the
Northern Alberta Institute of Technology who has served as a CGA
Financial
Accounting 1course writer.
Lin March, Executive Director of CGA Saskatchewan, also spent some time in China this past August, meeting with Zhang and the Beijing chapter's Board of Directors to discuss operational best practices. March reports that the Chinese chapters are well organized and that she will be assisting them with developing their policies and procedures.
Representatives of the two chapters arranged an official opening ceremony in October during the 2004 visit to China by
Louise Nesterenko, FCGA, member of the
CGA-Canada International Committee, and Lyle Handfield, FCGA,
CGA-CanadaVice-President, International and Corporate Affairs.
Charles Lau, FCGA, President of CGA
Hong Kong was also invited to attend the event.
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Agreement on Internal Trade Challenge to Proceed in Quebec
CGA-Canada, in co-operation with CGA-New Brunswick, is challenging Quebec legislation that prevents the province's CGAs from practising public accounting. The challenge is based on the fact that Quebec's measures that restrict public accounting cause economic injury to CGAs from New Brunwick and put our members at a significiant competitive disadvantage. Quebec's measures are unfair and a barrier to mobility, which is inconsistent with the
Agreement on Internal Trade.
The process began when CGA-New Brunswick approached the Government of
New Brunswick to determine if it would be willing to initiate proceedings under the
Agreement against the Government of Quebec because of restrictive trade practices. The
New Brunswick government declined, opening the way for a person-to-government complaint under
Chapter 17 of the
Agreement.
A formal application to proceed with the complaint was filed under the signature of
John Hunter, FCGA, President,
CGA-New Brunswick, in late September. The application proceeded through a screening process to decide if the complaint should proceed to a hearing; that ruling was due
30 days after the application was filed.
The challenge is based on accounting legislation in Quebec that limits the provision of public accounting services — assurance accounting or audits and reviews — to chartered accountants. As a result of these restrictions,
CGA-New Brunswick members are unable to offer those services to clients in neighbouring Quebec.
CGA has argued that the existing legislation in Quebec unfairly restricts
inter-provincial mobility of CGAs, constituting a trade barrier that is inconsistent with the provisions of the
Agreement. If the screening process is successful, consultations will begin with the Government of Quebec.
CGA-Canada, working with CGA-Manitoba and CGA Ontario, successfully challenged Ontario's accounting legislation under the
Agreement several years ago.
Bill 94, the
Public Accounting Act, 2004, providing CGAs with full public practice rights, received Royal Assent in June 2004, and now awaits proclamation. Prince Edward Island and Nova Scotia, along with Quebec, still do not offer full public practice rights for CGAs.
Further information on the Quebec challenge will be posted on the
CGA-Canada Web site
and in
CGA Magazine as it becomes available.
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Standards Comments to be Submitted
As noted in the last issue of
CGA Magazine,
CGA-Canada was asked to comment on the Accounting Standards Board (AcSB) initiative "Accounting Standards in Canada: Future Directions." As of press time, the Association's final submission was still being drafted but it will focus on several key concepts.
First, the selection of financial reporting standards has significant public policy implications because of these standards' ability to influence the economy. Second,
standard-setting institutions are a matter of public interest. Third,
CGA-Canada supports the adoption of international accounting standards, developed by the International Accounting Standards Board, for financial reporting in Canada. Fourth,
CGA-Canada supports the establishment of an independent Canadian accounting standards process to approve or adapt international standards, as well as contribute to the development of those standards. Fifth,
CGA-Canada believes the current accounting
standard-setting process in Canada is not independent.
The Association will use this opportunity to actively participate in the Canadian standards-setting process, as well as advocate on behalf of CGAs and further develop its relationship with AcSB. AcSB plans to deliver its final report in
mid-2005 after consulting with the Accounting Standards Oversight Council.
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Improvements Made to CGA Group Benefits
There have been significant changes to the CGA Group Benefits Program in recent months, most notably a new administrator. The program is now run by Johnstone's Benefits, which took over from Heath Lambert on
July 1, 2004.
The benefits program for CGAs and their staff provides comprehensive core coverage for Life, Accidental Death & Disablement (AD&D), and Long Term Disability. Short Term Disability, Health, and/or Dental coverage can be added, as well as additional optional benefits such as Critical Illness, Life, or AD&D to supplement existing coverage.
The plan boasts several special features: Long Term Disability includes partial disability coverage, as well as an Employee and Family Assistance Plan component, and the new Best Doctors feature; AD&D focuses on accidents that can cause disablement, providing up to twice the benefit amount paid for paraplegia or quadriplegia; and the Private Health Services Plan, which can be used to pay health and dental expenses, or top up uninsured payments for expenses such as laser eye surgery and cosmetic dentistry.
Johnstone's is in the process of reviewing the existing CGA group benefits program, and the company welcomes comments from CGA members. Contact Fabrizio (Fab) Biagini toll free at
1 800 432-9707 or
e-mailfab@jbenefits.com.
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Upcoming Events
Economic News Luncheons,
Ottawa
U.S. Ambassador to Canada, Paul Cellucci, is the guest speaker for the
November 16 Economic News Luncheon, to be held at the National Press Club (NPC).
The Honourable Scott Brison, P.C., Minister of Public Works and Government Services and Receiver General of Canada, will be speaking at the last luncheon of the year on
December 7.
Reservations can be made by calling the NPC at
613 233-5641. CGAs receive a complimentary ticket and additional tickets can be purchased.
www.pressclub.on.ca
President's Platform Event,
November 30, Vancouver
CGA-Canada President and CEO Anthony Ariganello, FCGA, will be presenting a speech titled "Towards a New Era in Corporate Canada: Clarity, Transparency, and Accountability in Financial Reporting" to the Vancouver Board of Trade.
www.boardoftrade.com
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