News from CGA-Canada
FROM: SEP-OCT 2004 ISSUE
Revised Date for AGM, Annual Report, and Financials
Following a decision made at the July CGA-Canada Board of Directors meeting, the Association's Annual General Meeting has been rescheduled from September 24 to December 11. The Annual Report will be available for download from the CGA-Canada Web site prior to the meeting. Due to a change in Association by-laws at the July Board meeting, Financial Statements will not be mailed out to members. They will be available for download from the CGA-Canada Web site three weeks prior to the AGM.
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CGA-Canada and the Federal Election
CGA-Canada developed an election toolkit for members in preparation for the June 28 federal election. The toolkit was posted on the Association's Web site, and included a call from CGA-Canada President and CEO Anthony Ariganello for members and students to lend their specialized skills to the campaign process.
Prior to the election, CGA-Canada also sent an open letter to the leaders of each federal party outlining the Association's key priorities for the new government. They included: increased inter-provincial trade, restoring confidence in financial reporting, tax reform, and strengthening government's fiscal management. The Association is committed to working with provincial affiliates and Paul Martin's new government to realize these objectives.
There were six CGAs running in this federal election, four of whom were elected: Serge Cardin, CGA, (Bloc Québécois) in the Quebec riding of Sherbrooke; Massimo Pacetti, CGA, (Liberal) in the Quebec riding of Saint-Léonard — Saint-Michel; Yasmin Ratansi, CGA, (Liberal) in the Toronto riding of Don Valley East; John Williams, FCGA, (Conservative) in the Alberta riding of Edmonton — St-Albert. Congratulations from CGA-Canada!
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FCGA Named to Order of Canada
Professor Vern Krishna, Q.C., FRSC, FCGA, is one of 79 new appointments to the Order of Canada, announced in Ottawa on July 29, 2004, by Her Excellency the Right Honourable Adrienne Clarkson, Governor General of Canada. Professor Krishna is a professor of law at the University of Ottawa and recently was presented with an honorary degree of Doctor of Laws by the Law Society of Upper Canada.
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Public Practice Rights Legislation Passes in Ontario
This past June, the Ontario provincial parliament gave provisional approval to Bill 94, the Public Accounting Act, 2004, which will allow CGAs and CMAs to audit public companies. The new legislation ends the chartered accountants' auditing monopoly, and allows all three designations to offer the same services.
In a media release from CGA Ontario, provincial president Ron Francis, FCGA, noted, "The proposed legislation should ease serious concerns about the demonstrable shortcomings of the current system." He went on to say that "Certified General Accountants are committed to working with our colleagues in the other professional accounting organizations to raise public accounting standards in Ontario, and protect the public interest."
The proposed legislation will also create a new Public Accountants Council (PAC), made up of CGA, CMA, and CA representatives, and the public. The PAC's mandate is to develop revamped accounting standards in Ontario.
Bill 94 grew out of four Ontario government-commissioned reports delivered over the past three decades, each of which recommended changes to the public accounting system in the province. Several events in recent years made the new bill a reality.
In 2001, the Ontario Red Tape Commission suggested that the chartered accountants' monopoly unfairly restricted competition. A 2001 ruling from an Agreement on Internal Trade (AIT) panel also said that Ontario's Public Accountancy Act and Regulations were not consistent with the Agreement. Those decisions led to the introduction of Bill 213, the Justice Statute Law Amendment Act, 2002, which began the accounting legislation reform process in the province and opened the door for the new Public Accounting Act.
The Ontario Legislature passed second and third readings of the Public Accounting Act less than 24 hours after its introduction, with Bill 94 receiving Royal Assent on June 17, 2004. The bill now awaits proclamation, which is expected in the fall.
CGA-Canada has been working closely with its provincial counterparts for a number of years to secure auditing rights for CGAs, but Quebec, Prince Edward Island, and Nova Scotia still do not offer full public practice rights.
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New Designation Conferred
A special designation was conferred at CGA-Canada's July Board meeting in Montreal. The Board granted Dr. David Harrison, CGA-Canada's Senior Academic Advisor, an honorary CGA designation. Harrison has played a significant role in developing the CGA education program as a co-creator of Program 90 and introduced the CGA program in Asia. He has authored and presented many papers on CGA program initiatives, as well as being instrumental in developing partnerships with three degree-granting organizations and working for national public practice rights for CGAs.
At the same time, the Board presented 25 CGAs, including CGA-Canada President and CEO Anthony Ariganello, with the Fellow (FCGA) designation. (See insert for a complete listing of this year's FCGA recipients). Congratulations from CGA-Canada to Dr. Harrison and the new FCGAs!
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Merger Update
May 31 was flagged as a milestone date in the May 11 media release announcing the proposed merger between the chartered accountants and certified management accountants. CA and CMA boards in all provinces except Quebec, where three-way merger talks are underway, were to decide by that date whether they were going to adopt the principles of the merger.
Information available to the public on CA and CMA Web sites has been limited, with a small number of provinces reporting approval as of press date. Feedback from members of those organizations has been posted on some sites and is generally mixed.
Events in Quebec also continue to unfold. The proposed three-way merger between CAs, CMAs, and CGAs has been approved by the governing bodies of each organization, and the three Boards of Directors have given the go-ahead to proceed with member consultation; a member vote is expected this fall.
Merger or not, CGA is the fastest growing accounting designation in Canada and CGAs will continue to play a central role in this country's accounting landscape, as well as offering business, government, and industry a choice of accounting professionals. CGA-Canada believes the proposed merger may benefit the Canadian business community by offering a clearer choice in accounting and financial services.
Check the CGA-Canada Web site for regular updates on the proposed national and Quebec mergers.
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CGA-Canada Scores with Pensions Report
Addressing the Pensions Dilemma in Canada is the Association's latest major public policy paper. The report was released in early June and examines the current shortfall in defined benefit (DB) pension plans, concluding that 59 per cent of DB plans are in a deficit position that totals $160 billion.
Prepared by Rock Lefebvre, CGA-Canada's Research and Policy Manager, and Amar Goomar, Research Analyst, the 71-page report was developed in collaboration with Mercer Human Resource Consulting, based on data from a survey of 847 Canadian companies. The report further suggests that inadequately funded pension plans may go bankrupt, and that shortfalls will negatively affect corporate financial results and share prices.
Also addressed in the report is the contentious issue of pension surplus ownership and the need for reform of the pension accounting system. "The pension situation in Canada presents an opportunity for meaningful reform," said Association President and CEO Anthony Ariganello. "If we are to assure sustainability and confidence, it will be necessary to bring about change that produces greater clarity, certainty, and credibility."
There was extensive national media coverage of the report, including an exclusive write-up in The Globe and Mail. The story was picked up by the Canadian Press newswire service, and carried by 42 media outlets across the country; 18 other publications wrote their own articles. There was also widespread radio and television coverage, with Ariganello being interviewed on Report on Business Television and CTV. Lefebvre also served as a technical consultant for the media.
To download a PDF version of the report, go to the Advocacy & Research section of the CGA-Canada Web site.
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CGA Online Portal Launch Pending
The CGA Online portal is scheduled to be launched in fall 2004. Staff at the CGA Online corporation are working to ensure the software platform will meet the technical and content requirements of CGA affiliates across the country, as well as doing final testing on the portal. Details of the launch will be posted on the CGA-Canada Web site as they become available.
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AcSB Invitation to Comment
CGA-Canada has been asked by the Accounting Standards Board (AcSB) to comment on strategic issues affecting accounting standards in Canada. The Board's invitation to comment, titled "Accounting Standards in Canada: Future Directions," asks for input that will enable it to develop a strategic plan for the 2005 to 2010 period.
The AcSB is specifically seeking direction on whether Canada should: maintain its own standard-setting capability; maintain its own GAAP or adopt either U.S. GAAP or International Financial Reporting Standards; maintain the current strategy of working to support the international convergence of accounting standards while harmonizing with U.S. GAAP; or consider modifying current GAAP requirements to provide better information to the users of financial statements.
The Association will use this opportunity to actively participate in the Canadian accounting standards-setting process, as well as advocate on behalf of CGAs and further develop its relationship with the AcSB. The comment period ends September 15, 2004, and the AcSB plans to deliver its final report in mid-2005 after consulting with the Accounting Standards Oversight Council. For more information or to submit comments, go to www.acsbcanada.org.
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The Conference Beat
CAAA Conference
Vancouver, May 27 to 30, 2004
CGAs had a highly visible presence at this year's Canadian Academic Accounting Association conference. Dan Simunic, FCGA (British Columbia) was the conference chair, and Ron Francis, FCGA, (Ontario) chaired the CAAA Education Committee responsible for co-ordinating the conference education sessions.
CGA-Canada also sponsored and organized the pre-conference Professional Development Day, which featured speakers from the International Association of Accounting Education Research (IAAER). The Association used this opportunity to showcase the InterSyll education product based on international accounting standards.
FEI Conference
Quebec City, June 2 to 4, 2004
This is the second year in a row that CGA-Canada has sponsored the Financial Executives International (FEI) annual leadership conference. The theme for North American Rendezvous 2004 was "Integrity is Priceless." Featured speakers included The Globe and Mail's Jeffrey Simpson, and Peter Currie, Vice Chairman and CFO of RBC Financial.
Carole Presseault, Assistant Vice President, Government and Regulatory Affairs, and Rock Lefebvre, Research and Policy Manager, attended the conference. According to Lefebvre, "All sessions were very informative but it is clear that we as a profession continue to grapple with the required balance between the competing attributes of accountability versus simplicity."
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Upcoming Events
TMAC Conference
Quebec City, September 26 to 28
CGA-Canada is exhibiting at the Treasury Management Association of Canada annual conference (www.tmac.ca/conference/index.html).
Jack Webster Awards
Vancouver, October 27
CGA-Canada, along with CGA-BC, sponsors the Jack Webster Awards for excellence in British Columbia journalism (www.jackwebster.com).
CGA Provincial Affiliate Conferences
September to November, Nationwide
Conferences for most CGA affiliates take place between September 7 and November 7; check your local affiliate's Web site for complete details.
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