News from CGA-Canada
FROM: JUL-AUG 2006 ISSUE
Parliamentary Committees Invite CGA Input
CGA-Canada was invited to appear before several federal committees in a busy spring session of Parliament. On May 30, Carole Presseault, Vice President, Government and Regulatory Affairs and Rock Lefebvre, Vice President, Research and Standards provided expert advice to the House of Commons Legislative Committee on Bill C-2, the Federal Accountability Act.
The CGA-Canada statement challenged the government to find the right balance between rules, ethics, and sound governance. The Association also expressed its support for initiatives to strengthen and improve financial management and internal audit, including professionalizing the public service. Presseault reminded the committee of the Association's role in assisting the government to attain this goal.
The Association was invited to appear before two more committees just prior to Parliament's summer recess. Carole Presseault and Everett Colby, chair of CGA-Canada's Tax and Fiscal Policy Committee, appeared before the House of Commons Standing Committee on Finance on the statutory review of the first five years of the Canada Revenue Agency Act.
Colby also appeared before the Senate Standing Committee on Banking, Trade and Commerce on the review of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. CGA-Canada's statements to the various committees are available at www.cga-online.org/canada in the Advocacy and Research section, under Speeches and Presentations.
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Canada's Top 40 Under 40
Canada's Top 40 Under 40 were recognized and congratulated at an awards luncheon hosted by CGA-Canada on May 2 in Toronto. The luncheon event is just one of the high profile opportunities to promote the designation through CGA-Canada'sthree-year Platinum level sponsorship of the Top 40 program.
Canada's Top 40 Under 40 celebrates leadership, innovation and achievement by men and women under the age of 40 from all fields of endeavour. This year's recipients include one CGA: Linda McCurdy, President and CEO of K-Bro Linen Systems of Toronto.
"This tremendous event is about leadership, vision and excellence — values embraced by CGA-Canada and symbolized by the achievements of the men and women we celebrate today," says CGA-Canada President and CEO Anthony Ariganello, FCGA, who served as an honourary Vice-Chair of the event.
"But more than this, the event is about Canada's future," he added. "It's about our collective desire to become agents of change within our own society, and leaders by example in the greater world."
Canada's Top 40 Under 40 is a national program, managed by founding partner Caldwell Partners, that has recognized more than 400 high achievers since it began in 1995. In addition to CGA-Canada, other sponsors include The Globe and Mail, Air Canada, and Privilege Magazine. Sponsorship of this high-profile event contributes to CGA-Canada's strategic goal of earning high visibility and recognition for the designation.
The complete list of Top 40 Under 40 honorees can be read at www.top40award-canada.org.
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Association Gives Federal Budget Passing Grade
The 2006 federal budget includes tax relief and other measures advocated by
CGA-Canada and received generally positive reviews from the Association. The challenge will be in implementing the new directions while still staying on course with solid fiscal fundamentals.
As usual, members of CGA-Canada's Tax and Fiscal Policy Committee analyzed the budget and the Association issued a media release, highlights document, scorecard and newsletter for practitioners. All of these products can be read on the CGA-Canada website at www.cga-online.org/canada.
Some budget highlights, from the Association's point of view, include:
- An increase in the small business deduction limit from $300,000 to $400,000 as of January 1, 2007.
- Reduction of the small business tax rate from 12 per cent to 11.5 per cent as of 2008, with a further reduction to come in 2009.
- Measures to eliminate the corporate surtax for all corporations as of January 1, 2008.
- Elimination of the federal capital tax as of January 1, 2006, two years ahead of schedule.
- A range of personal tax cuts and credits that should ensure some benefit for all Canadians.
All of these measures are in line with recommendations made by CGA-Canada in October 2005 to the House of Commons Standing Committee on Finance and the Minister of Finance.
The government also introduced four temporary measures to help re-establish full funding of federally regulated defined benefit pension plans, addressing a problem highlighted in CGA-Canada's research reports on defined benefit pension plans. As well, the budget provides funds to take steps to create a Canadian agency for assessment and recognition of foreign credentials. Such an agency should assist CGA affiliates to process foreign applications for recognition and is welcomed by the Association.
However, some of the recommendations from the Association's research report into Canada's aging population were not addressed. These include recommendations to eliminate mandatory retirement at 65 and to diminish public pension incentives for early retirement.
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New Capstone Course to Launch
The Professional Applications 2 (PA2) course will be offered for the first time this September as the revised CGA certification model comes into effect. Periodic enhancements to the model (see January-February 2005 issue of CGA Magazine), ensure that the CGA Program of Professional Studies retains its leadership position among professional accounting programs.
Like the existing Professional Applications 1 (PA1) examination, PA2 is a competency-based exam that requires students to define, analyze, and solve a wide range of problems using real-world business simulations. The exams provide opportunities for candidates to demonstrate competence in general management, leadership, professionalism, and technical knowledge. They also challenge students to integrate and apply the knowledge that is required to make decisions faced daily by professional accountants.
PA1, Issues in Professional Practice, addresses the perspective of the accountant external to the organization providing auditing, taxation, and business advisory services. PA2, Strategic Financial Management, addresses the perspective of the strategic financial manager within the organization.
The two written, four-hour Professional Applications examinations, along with two career option courses and accompanying four-hour examinations, comprise the certification level of the CGA Program of Professional Studies. Financial Accounting 4 (FA4) moves to Level 4 of the program.
For more about PA1, PA2, and the enhanced certification model, visit www.cga-online.org/canada.
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Drawing on Our AIT Experience
CGA-Canada has asked Ontario Attorney General Michael Bryant not to adopt the standards proposed by the new Ontario Public Accountants Council (PAC). Under the terms of the province's Public Accounting Act, 2004, the PAC recommends qualifying standards for public accountants. The Association believes the proposed standards do not live up to the spirit of the Act or the intent of the Agreement on Internal Trade (AIT). The Public Accounting Act is intended to open up public accounting in Ontario to all qualified CGAs, CAs, and CMAs.
On a related note, CGA-Canada is sharing its experience with the AIT. The Association has used the AIT to challenge the barriers to public accounting in some provinces, giving it hands-on knowledge of the AIT's dispute resolution process. To assist policy makers to improve the resolution of disputes, CGA-Canada has documented its experiences in a paper entitled Making Trade Dispute Resolution in Canada Work.
The paper was provided to federal and provincial trade ministers and is also available on CGA-Canada's website at www.cga-online.org/canada.
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CGA-Canada Sponsors 17th World Congress of Accountants
CGA-Canada is a bronze level sponsor of the 17th World Congress of Accountants (WCOA), to be held in Istanbul, Turkey, from November 13 to 16, 2006.
The WCOA is organized every four years in a different country by the International Federation of Accountants (IFAC). It is estimated that 5,000 delegates from around the world will attend.
The congress will discuss the impact of specific events that have taken place over the past few years affecting the accounting profession. Workshop and plenary sessions will focus on the theme Generating Economic Growth and Stability Worldwide. Among the presenters will be Sylvie Voghel, FCGA, and Pierre Barnès, FCGA.
More information about the WCOA is available at www.wcoa2006istanbul.org.tr.
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