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FROM: MAR-APR 2008 ISSUE
UPDATE
Victory in Quebec
New public accounting legislation adopted by the Quebec National Assembly provides a welcome resolution to the long dispute over provision of public accounting in that province. The legislation allows CGAs and other professional accountants who will hold an auditor permit to practice the full scope of public accounting.
“These long-awaited changes to Quebec legislation mean that CGAs are now able to offer a full range of services, including public accountancy, without restriction,” said Anthony Ariganello, CPA (DE), FCGA, president and CEO of CGA-Canada.
This landmark law eliminates the final legislative barrier in Canada for CGAs to provide full public accountancy services and ultimately will provide the choice and competition in the marketplace essential to ensure quality and reasonable prices.
“An injustice that had prevailed since 1946 has now been rectified,” said Pierre Samson, FCGA, president of the Ordre des CGA du Québec. “The former measures prohibiting CGAs from conducting private-sector audits were wholly without merit. The adoption of Bill 46 shows that CGAs have all of the necessary skills to fulfill that role.”
Prior to the changes, Quebec legislation excluded CGAs from providing assurance services except in specific sectors. In March 2005, CGA New Brunswick challenged this legislation under the Agreement on Internal Trade, and in August of that year, an AIT (Agreement on Internal Trade) panel ruled that restrictions on the provision of public accountancy in Quebec had caused injury and had impaired trade. The panel recommended legislative reform.
The Quebec government introduced a bill to reform public accounting legislation in December 2006, however a provincial election was called in the spring of 2007 prior to the passage of the bill. The new Quebec government re-introduced legislation in the fall, which was passed in December.
The act provides that each accounting body will set the standards and rules by which the permits will be issued. The Ordre des CGA du Québec secured an amendment allowing for a five-year phasing in process in order not to penalize those members that currently provide public accounting services to public sector clients.
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Competition Bureau Validates CGA Position
Following an 18-month study of self-regulated professions in Canada, the federal Competition Bureau released Self-Regulated Professions – Balancing Competition and Regulation, a report that examines five professions: accountants, lawyers, optometrists, pharmacists, and real estate agents.
The report makes a number of recommendations specific to the accounting profession in areas such as residency requirements, advertising, pricing, and business structures. The report lends credence to the Association’s position on several key issues, particularly the provision of public accounting services.
“CGA-Canada has long advocated for full public practice rights for CGAs and is pleased to see the recommendations supporting our position,” says Anthony Ariganello. “While the changes currently underway to remove barriers to public accounting will improve competition in the marketplace, it is clear the limits historically placed on the practise of public accounting have been unnecessary.”
The report also notes that “restrictions in some jurisdictions on who may practise public accounting can impair movement of accountants...” It cites the CGA challenges of Ontario and Quebec public accounting restrictions under the labour mobility provisions of the Agreement on Internal Trade (AIT). In both cases, AIT dispute resolution panels held that legislation unnecessarily restricted labour mobility and impaired internal trade. Public accounting legislation in both provinces has since been changed.
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INTERNATIONAL
Caribbean Affiliation Agreement Signed
CGA-Canada congratulates the newly established CGA Caribbean association and welcomes it into the affiliation. An agreement signed in December by the two associations will introduce local leadership, a greater sense of community among CGAs in the region, and a stronger voice for members.
CGA Caribbean includes the former CGA Barbados affiliate and encompasses the entire English-speaking Caribbean region, bringing into the affiliate more than 100 CGAs in other islands.
“This partnership solidifies long-standing relations between Canada and the Caribbean,” says Ron Colucci, FCGA, chair of CGA-Canada. “It also recognizes the growing importance of accounting professionals who can meet the challenges of a global economy.”
The CGA program has been offered in the Caribbean since the early 1970s and, since then, membership has grown to approximately 1,000 CGAs and students. CGA Caribbean’s role will include granting the designation, and administering the national member standards and the CGA Program of Professional Studies.
“This region-wide model is ideal for our members and consistent with the Caribbean free trade model,” says Marcel Murrell, FCGA, president (elect) of CGA Caribbean. “CGA will benefit the region as it transitions to an integrated economic jurisdiction.”
The agreement was signed during a ceremony at the residence of the Canadian High Commissioner to Barbados, David Marshall, FCGA.
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China Admits 100 New CGAs
An even 100 new CGAs were admitted to membership in China in 2007, the largest number of new members in the 11 years the designation has been granted in the country. CGA-Canada Chair Ron Colucci, FCGA, presented certificates to the new members at a ceremony on December 15 at the Great Hall of the People in Beijing. He spoke about leadership and the opportunities that Chinese CGAs have to bridge business cultures between rapidly expanding China and the developed economies of the West.
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French Conference Extends Relationship
As part of its efforts to build relations with the French accounting profession, CGA-Canada participated in a conference of French accounting academics that explored issues around implementation of International Financial Reporting Standards (IFRS). In a panel discussion, Prof. Egbert McGraw, FCGA, of the University of Moncton and a member of the National Education Committee, presented CGA-Canada’s position on IFRS for small and medium-sized entities.
The conference, held in Paris, was hosted by the Conservatoire National des Arts et Métiers (CNAM), one of France’s top higher education institutions. CGA-Canada signed a memorandum of understanding last year with CNAM’s Institut National des Techniques Economiques et Comptables (National Institute of Economic and Accounting Techniques), known as INTEC, to establish mutually beneficial relations.
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