Town Hall

2

Overview

Canada’s CMAs, CAs, and CGAs are proposing uniting through the creation of a new professional designation, CPA, that aspires to be:• The best in protecting and serving the public interest• The pre-eminent Canadian accounting designation and

business credential We want to talk to you about:

• The background and current environment driving the Unification initiative

• National Unification Framework• Proposed CPA Certification Program• BC Provincial Merger Proposal• Decision-Making Process

Background

4

The Accounting Profession

CAs11,006 42%

CMAs 4,762 18%

CGAs10,31940%

Professional Accountants in BC, 2012

CAs46%

CMAs25%

CGAs29%

Professional Accountants in Canada, 2012

5

The Accounting ProfessionUnification of the Profession Initiative

Quebec 2010 – government facilitated Accounting bodies discussed options Preliminary framework published May 2011 Formal Consultation Period, May to September 2011 Where are we today?

• Quebec – Legislation anticipated in 2012• CGA-Canada and most CGA bodies are now at the table• National Unification Framework and BC Merger Proposal

released to members and stakeholders – January 2012• CA Alberta has withdrawn from the merger talks

6

CPA will be an active accounting designation in Canada• Who do we want to control “CPA” in Canada?

How long will governments tolerate four accounting designations with different standards?• Quebec merger• Oversight of regulation and standards• Will we go to a US model – government controlled• Impact on member fees…

Is the Status Quo a Viable Option?Possible Risks

7

This will be the Accounting Profession in Canada in April 2012

CAs35%

CMAs21%

CGAs24%

CPAs20%

CAs46%

CMAs

25%

CGAs

29%

TODAY

APRIL 2012

Chartered Professional Accountants

End Game

National Unification Framework

9

The Profession RespondsNational Unification Framework

Provides a common framework for the development of merger proposals in each jurisdiction

Initial proposals on new CPA pre-certification education system published

Finalized and published for member and stakeholder review Framework and principles are based on the Position Paper

published in May based on the results of the consultation

10

The National Unification Framework8 Guiding Principles

1. Evolution to a single designation

• Chartered Professional Accountant (CPA) granted to all members in good standing from new CPA provincial body

• For 10 years, CPA must be used in conjunction with existing designation. i.e. Jane Smith, CPA, CMA

• “Tagging” ensures consumer and international accounting body recognition of background

2. Continued use of existing designations

3. Retention but no expansion of rights

4. Certification

11

The National Unification Framework8 Guiding Principles

5. Specialities

6. Branding

7. Uniform regulatory regime

• Everyone meets same standards – protect public interest

• Facilitates multi-jurisdictional practice

8. Merged operations and governance

CPA Certification Process

13

CPA Certification Model – Vision

What is the vision of the CPA Certification Model? Designed to deliver a pre-eminent professional accounting

designation and internationally recognized business credential. Open and attractive to a broad market of potential candidates,

including career changers, immigrants and non-business degree holders.

New Competency Map – including both technical competencies as well as enabling competencies.

14

CPA Certification Model

CPA certification program elements: academic prerequisites for admission post-graduate CPA professional education program culminate in a comprehensive, multi-day final examination relevant practical experience

15

CPA Certification – Summary

CPA certification program will: be at least as rigorous as the current programs meet or exceed all IFAC standards for education, assessment and

practical experience meet or exceed requirements for existing and future Mutual

Recognition Agreements be nationally (pan-Canadian) developed in structure and content

and regionally delivered appeal to employers for its development of accountancy and

business skills include options for post-designation specialties

BC Merger Proposal

17

Provincial Merger Proposal

BC Steering Committee coordinated development This proposal has been endorsed by the leadership of the

CMA, CA, and CGA Council and Boards We are now taking this to the membership and other

stakeholders for consideration Key Elements:

• Consistent with the national unification framework• Governance• Integrating operations• Transition• Benefits to members

18

Governance

BC’s new CPA profession would be governed by a volunteer Board• 15 elected CPAs, public reps appointed by government• 3 year term of office, max two consecutive terms; exceptions made

for those appointed to Executive Committee• Chair elected by, and from among, Board; 1 year term• Executive Committee – Board directors appointed annually by

Board Interim Board of Directors appointed from sitting members of

CMA Board, CA Council, and CGA Board• Composition proportionate to number of members in legacy body• Over time replaced by elected CPA members; first election 2 years

after legislation taking effect

19

Operations

Management of new CPA organization will reflect best practices, processes, and management structure of current bodies

Existing staff to be utilized where appropriate National fees differ substantially from the provinces and need to

be harmonized by the national bodies In BC, dues are almost equal among 3 bodies

• Efforts would be made to equalize CPA fees within 5 years

20

Transition

Transition will only proceed if government commits to change legislation

3 bodies will work with government to draft legislation and get it on legislative calendar as quickly as possible

3 bodies will plan and implement integration; during transition:• Members services would be expanded or maintained• Members of each body would be granted equal access to all

services• Existing processes maintained until legislation is passed

Once legislation in place, current members granted CPA, which must be used with legacy designation for 10 years• Optional tagging thereafter

21

Benefits to Members

To be better positioned to protect the public by ensuring all professional accounting and assurance services meet a uniformly high and consistent level of ethical and practice standards, including a consistent code of conduct for all members.

To protect and enhance the value of your designation in an increasingly competitive international environment.

To contribute to the sustainability and prosperity of the Canadian accounting profession.

To govern the accounting profession in an effective and efficient manner.

22

Hearing all Viewpoints

Key stakeholders we have talked to and need to formally consult about a provincial proposal:• Members• Financial Regulators• Business Leaders• Firms • Educators• Governments – the ultimate decision makers

Board will develop recommendation to members and the government

23

A Closing Thought

“There is an urgent need to improve the working relationship of the three major accounting bodies in Canada.

We feel the accelerating competition among the major accounting bodies, the increasing duplication of programs and services, and the resulting inefficiencies in the use of resources are detrimental to the future of the profession in Canada and to the needs of its members.

We feel it is urgent and important for the bodies in Canada to begin a dialogue on ways and means to rationalize the profession.”

24

A Closing Thought

“The three accounting bodies in Canada are not doing an adequate job of serving the interests of the public or the profession.

All three tend to deal with the issues from the perspective of their own narrow self-interest, rather than looking at the accounting profession as a whole, or how our profession can best serve the needs of the public at large...

The time to start is now.”

25

A Closing Thought

These comments were written by Clarence Ivey, President,

Society of Management Accountants of Canada,in 1969

For more information or to share your comments and questions:

www.CPACanada.ca

www.cmabc.com

cmabc@cmabc.com

Comments/Questions/Input