News from CGA-Canada
FROM: SEP-OCT 2005 ISSUE
Response to Future Directions Draft Strategic Plan
CGA-Canada submitted comments in July to the Accounting Standards Board (AcSB) on the Board's Future Directions draft strategic plan for accounting standards in Canada. The Association has been participating in the Future Directions process from the outset, and used this latest opportunity to comment on the Board's draft strategic plan.
In a July letter to the AcSB, the Association re-iterated its earlier position that different sets of reporting standards are necessary for different types of reporting entities, and suggested that it is appropriate to maintain separate standards for publicly accountable enterprises and non-publicly accountable enterprises (NPAE), with the possibility of exempting smaller private businesses from GAAP altogether.
CGA-Canada endorsed the AcSB's move to adopt International Financial Reporting Standards (IFRS) for publicly accountable enterprises, while noting that the Association does not believe there is a need for a modified Canadian version of the standards for these entities.
It is also CGA-Canada's position that all existing Canadian standards should be replaced with IFRS using a single-step approach. Preparers, users, and practitioners must also have sufficient time and support to adjust to IFRS. To expedite the transition, CGA-Canada believes that the Board must take appropriate steps to ensure convergence of interpretation in areas where interpretation differs between an IASB standard and its current Canadian equivalent.
NPAE represent a unique challenge for regulators, and the Association has recommended that distinct accounting standards be established for this group. This would entail modifying existing standards for differential reporting with the view of harmonizing with, and influencing, international standards for NPAE.
In the letter, CGA-Canada stressed its ongoing desire to see the establishment of an independent body to oversee the alignment, implementation, and interpretation of international standards in Canada.
The Association noted that the standard setter should be: independent of all parties who have an active interest in the content of accounting standards; mandated by legislation; accountable to the public by reporting to Parliament; funded from multiple sources including government, industry, and the accounting profession; and have transparent process in which all meetings are open to the public and documents prepared by or submitted to the standard setter are publicly available.
The Association closed by expressing the opinion that the strategy proposed by the Board presents a chance to create a more transparent, representative standards sponsor in Canada, and thanked the Board for the opportunity to participate in these discussions.
To view the letter, go to the CGA-Canada Web site at www.cga-online.org/canada.
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Kananaskis Senior Academic Retreat
A weekend retreat for university academics proved to be a successful and popular approach for completing some of the CGA certification requirements under the Senior Academic Program. The program allows qualified academics to obtain advance standing in the CGA Program through their previous education, research, and experience.
A dozen academics attended the retreat, held at the resort community of Kananaskis, Alberta, in the spring, to complete the coursework requirements of the Professional Applications component of certification. The retreat also provided participants with an opportunity to meet and collaborate with their peers from across the country as they worked on the case studies and enjoyed various activities in the scenic Rocky Mountain setting.
The PhDs who attended the retreat represented eight universities in B.C., Alberta, Saskatchewan, Quebec, and Nova Scotia.
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Caribbean CGAs Appointed to Local Governing Body
Two CGAs were appointed to the Board of the Institute of Chartered Accountants of Barbados on June 16, 2005.Patrick Hinkson, CGA, was elected as first vice-president, and Rueben Blenman, CGA, was re-elected as secretary. Blenman is also the Caribbean delegate to the 2004-05CGA-Canada Board of Directors.
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CGA Appointed to Comptroller General Committee
Lal Balkaran, MBA, FCMA, FCIS, CIA, CGA, who works for KPMG Canada, was recently appointed to the newly-established Comptroller General of Canada Internal Audit Committee. The committee was created to provide guidance on matters related to the evolving internal audit practices in the Government of Canada, and held its inaugural meeting June 7-8 in Ottawa.
The Office of the Comptroller General was re-established in December 2004 by the Prime Minister as a key element in strengthening comptrollership and oversight in the federal government.
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Federal Government Recruiting CGAs
A key element in the government's strategy is promoting the development of the financial and internal audit communities within the public sector. In this respect, the Treasury Board of Canada Secretariat continues to actively recruit university graduates for entry-level finance and internal audit positions. As part of the Financial Officer/Internal Auditor and Development Program (FORD/IARD), qualified candidates receive on-the-job and formal training that qualifies toward the CGA practical experience requirement.
Starting salary for these positions is $41,854. Most of the approximately 100 positions in the program will be located in the National Capital Region, but there will be openings in other major centres.
To be eligible for the FORD/IARD program, applicants must have a recent university degree from a recognized institution or will have completed one by June of the year following application. The degree must also be in Accounting, Finance, Business Administration, Commerce, or Economics, and must include a minimum of six accounting or auditing courses. Graduates with a bachelor's degree in another field of study who have recently earned their CGA designation or students who are presently working towards a CGA designation can also apply.
To apply online, go to http://jobs.gc.ca before the end of October 2005. For more information on the FORD/IARD program, go to www.tbs-sct.gc.ca/fin/fmcd-dcgf.
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CGA-Canada Responds to Draft MOU from IASB
Continuing its advocacy work on the standards front, CGA-Canada responded in July to the International Accounting Standards Board (IASB) Draft Memorandum of Understanding on the role of Accounting Standard-Setters and their relationships with the IASB published earlier in 2005. In a letter to the IASB, the Association raised issues around the structure of the national standard setter and representation and communication with constituents. The issue becomes even more relevant in a context where Canada is set to adopt International Financial Reporting Standards as developed by the IASB.
Maintaining its contention that the current standards-setting process is not transparent, inclusive, or publicly accountable, the Association noted that the adoption of IFRS in Canada provides an opportunity to being the necessary steps towards reforming the current standards-setting regime in Canada.
CGA-Canada also argued that the Accounting Standards Board, in its current configuration as an instrument of the Canadian Institute of Chartered Accountants (CICA), does not necessarily represent positions of all of the IASB's intended constituents. Furthermore, it stated that publication, copyright, and distribution of IFRS in Canada should not be under the control of one body, as is currently the case with the CICA Handbook.
The Association recommended that the IASB should formulate guiding principles for national standard setters and monitor their implementation. Principles should include independence, legislated mandate, public accountability, multiple sources of funding, and open and transparent processes.
The Association also urged the IASB to open dialogues with other constituents, including national professional accounting organizations that may not be directly involved in standard setting through means such as forums and roundtables. Go to the CGA-Canada Web site at www.cga-online.org/canada to read the full response to the IASB MOU.
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Association Vice-President to Speak at Aging Conference
Rock Lefebvre, CGA, vice-president, Research and Standards, will be speaking at the Summit on the Mature Workforce conference in Calgary on October 3, 2005. The conference will focus on the impacts of a mature workforce, skill shortages, and health and pension issues on various business issues and situations.
Lefebvre co-authored the Association's report on aging, Growing Up: The Social and Economic Implications of an Aging Population, which was released in January 2005. He will be delivering a speech based on the report that explores a global perspective of key issues on aging for business, the implications for pensions, health costs, and the search for skills and talent. Register at www.summitonthematureworkforce.ca.
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CGA-Canada Chair Nominated for Award
Louise Nesterenko, FCGA, Chair, CGA-Canada, has been nominated as Canadian Woman Entrepreneur of the Year at the RBC Canadian Woman Entrepreneur Awards for 2005.
This is the fifth time that Nesterenko has been nominated for this prestigious award, which was previously known as the Rotman Canadian Woman of the Year Award. In 2004, she was nominated for the Ernst & Young Entrepreneur of the Year Award in the Prairies region.
The award was launched in 1992 to pay tribute to this country's most successful female entrepreneurs for their important contributions to the economy. Since that time, 71 awards have been presented. Categories for this year's award include The Deloitte Start-Up Award, The Intel Innovation Award, The RBC Momentum Award, The Bell Trailblazer Award, and The Energy Savings Group of Companies Lifetime Achievement Award. Winners will be announced on September 20, 2005.
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CGA-Canada Annual Report Online
The CGA-Canada Annual Report for fiscal year 2004-05, along with audited financial statements for the Association, are now posted online. They are available for viewing or download in pdf format from the CGA-Canada Web site at www.cga-online.org/canada.
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Porter Hétu, ENCON Sponsor National Student Awards
A new Association-wide student award will recognize excellence in auditing. The Porter Hétu International award will go to a newly certified CGA graduating from the public practice career option who obtains the highest final course mark in Auditing 2. The successful candidate must also obtain a standing of honours in the Professional Applications 1examination and successfully pass all public practice career option examinations on the first attempt.
The $1,500 award will be presented for the first time to a newly certified CGA graduating from the 2004-05 academic year. Students do not need to apply for the award as the successful candidate will be determined through the compilation of examination results. The new award is sponsored by Porter Hétu International, a leading Canadian-based accounting and consulting firm.
In addition, the Association's public practice award is now sponsored by ENCON Group Inc. Insurance. The $5,000 prize is awarded to a newly certified CGA graduating from the public practice career option who achieves the highest aggregate mark on the Financial Accounting 4, Auditing 2, and Taxation 2examinations.
More information on all the national student awards is available at www.cga-online/canada. Award winners will be profiled in the January-February 2006 issue of CGA Magazine.
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