CPA Canada Annual Report 2013-2014: Acting in the public .../media/site/the-cpa... · boards, CPA...

Advocating for the profession and public on parliament Hill CPA Canada established relationships with federal

ministers’ offices, members of Parliament, various

departments and national organizations to press for a

range of policy improvements, for the profession and

public. The organization worked with:

• ForeignAffairs,TradeandDevelopmentCanada

on opportunities for professionals to temporarily

conduct business in the European Union;

• DepartmentofFinancestaffonwaystoimprove

tax policy and the financial literacy of Canadians;

• TheCanadaRevenueAgencyonimprovingtax

administration;

• EmploymentandSocialDevelopmentCanada,

and Citizen and Immigration Canada on foreign

credential issues;

• NaturalResourcesCanadaregardingthe

profession, a changing climate and the emerging

operating environment; and

18 CPA representatives

serve on IFAC and GAA

boards and committees

BRAND AMBASSADOR WORKSHOPS

65%are more proud to work for the new organization

93%could better

articulate the CPA brand

63%of managers, owners,

professionals and entrepreneurs expressed

a very positive impression of CPA

1ST CPA PROFESSION COMPENSATION SURVEY

$141,000

$203,000mean average compensation of CPAs working in oil and gas $163,000

CPA mean average compensation in

industrymean average CPA compensation from all working sectors, age ranges and regions

Volunteers delivered information seminars in more than 100 communities

CPA CANADA’S FINANCIAL EDUCATION PROGRAM

Attracted more than 7,000 member volunteers

2013 EMPLOYEE VOLUNTEER PROGRAM

121 employee volunteers

contributed

562 volunteer

hours

$73,000raised for the

United Way and Centraide

through employee

fundraising events

CPA CANADA EXERTS GLOBAL INFLUENCE CPA Canada has 17 members serving on International Federation of Accountants (IFAC) boards and committees, and one member serving on the Global Accounting Alliance (GAA) board. This broad representation ensures that the Canadian profession has an impact globally.

IFAC represents more than 2.5 million professional accountants worldwide. The federation strengthens the profession, contributes to the development of strong international economies, and establishes and promotes quality professional standards. GAA is made up of 11 of the world’s leading accounting bodies, in significant capital markets, and represents more than 775,000 professional accountants.

• ThePublicPolicyForumtoproduceanational

report on public sector productivity.

Acting in the public interest

Acting in the public interest was a guiding principle

for all CPA Canada’s activities over the last year.

CPA Canada consistently promotes programs and

advocates for public policy that serves consumers,

businesses and organizations.

protecting Canadians through support of domestic standard-setting CPA Canada is a vital contributor to the development

of financial reporting and assurance standards

through its volunteer and financial support of the

Accounting Standards Board (AcSB), the Public

Sector Accounting Board (PSAB) and the

Auditing and Assurance Standards Board (AASB),

as well as their oversight by the Accounting

Standards Oversight Council (AcSOC) and the

Auditing and Assurance Standards Oversight

Council (AASOC).

Management’s Discussion and Analysis

1515

More than 220 professional accounting and business

community volunteers (and two paid chairs) establish

and oversee Canada’s accounting and assurance

standard-setting. Seventy of these industry leaders

make up Canada’s three standards boards (the AcSB,

PSAB and AASB) and two oversight councils (the

AcSOC and AASOC).

The three boards are also supported by a staff of

35 and more than 150 professional accounting and

business community volunteers who serve on various

committees.

These member volunteers bring a wealth of experience

to standard-setting. They are users, preparers, auditors,

regulators, academics, as well as others, drawn from

small and large business, public practice, the public

sector and not-for-profit organizations.

Through its support for the standards and oversight

boards, CPA Canada is helping to ensure the financial

and non-financial information in the private and public

sectors is reliable, comparable, transparent and credible,

which is critical to investor confidence, a sound

financial system and protecting the public interest.

CpA Canada Annual Report 2013-2014

FinAnCiAl literACy ‘Wins’ A teAm eFFort The success of CPA Canada’s financial literacy education and information initiatives stemmed from the combined effort of several employees. Cairine Wilson, MBA, CAE, vice president, member services and national leader of CPA Canada’s financial literacy program, spearheaded the initiative and is its lead champion. Li Zhang, PMP, program manager, runs the remarkably successful Community Connect Program. So far, more than 7,000

member volunteers have been trained, and more than 100 community information seminars have been delivered. Nicholas Cheung, CPA, CA, CIPP/C, director, program and publication development, member services, is CPA Canada’s financial literacy spokesperson. Tobin Lambie, principal, media, raised the profile of the program nationally by earning substantial media coverage. And Elly Meister, director, government relations, ensured CPA Canada hosted Financial Literacy Day on Parliament Hill to share the organization’s accomplishments with federal policy makers and other stakeholders.

16

Supporting global standards through the IFRS Foundation and the International Federation of Accountants The IFRS Foundation is a not-for-profit corporation

that oversees and finances the work of the

International Accounting Standards Board, an

independent standard-setting body.

CPA Canada supports the IFRS Foundation’s mission

of developing, in the public interest, a single set of

high-quality, globally accepted accounting standards.

CPACanada’sfinancialcontribution—Canada’sshare

oftheFoundation’sannualbudget—ismadeonbehalf

of its members and other Canadian stakeholders.

CPA Canada also provides significant financial

and human resource support to the International

Federation of Accountants (IFAC). IFAC is a global

organization that supports the setting of assurance,

ethical and education standards, among other

activities.

Contributing to accountability and transparency Support for capital markets is an important mandate

for CPA Canada. In addition to the Corporate

Reporting Awards, CPA Canada helps establish best

practices that support the creation of healthy capital

markets. This past year, the IFAC’s Professional

Accountants in Business Committee approached

CPA Canada to produce the proposed International

Good Practice Guidance, Developing and Reporting

Supplementary Financial Measures. Released in

early 2014 as an international exposure draft, the

document provides principles for preparing and

using supplementary financial measures to improve

understanding of an organization’s performance

among management, investors and other

stakeholders.

CPA Canada also produced for IFAC the Guide to

Review Engagements, designed to help small and

medium practitioners develop a deeper understanding

of the International Standard on Review Engagements

2400 (Revised), Engagements to Review Historical

Financial Statements.

Advancing financial literacy in Canada CPA Canada is a leading advocate for financial

literacy. The first year of Community Connect,

an extensive grassroots effort coordinated by

CPA Canada, attracted more than 7,000 member

volunteers who delivered information seminars in

more than 100 communities. The program is designed

to deliver unbiased financial literacy education and

information to improve the overall state of financial

literacy in Canada.

The Community Connect Program has tailored

sessions for adults, schools, and small and medium

businesses. Additional sessions are planned for new

Canadians and post-secondary students. CPA Canada

also provides information, tools and resources through

financialdecisionsmatter.ca.

The organization also regularly conducts research

to assess Canadians’ knowledge and views about

financial literacy. It recognizes that to advance the

financial literacy of Canadians, efforts must focus

onallagegroups—fromyoungchildrentoadults

approaching and in retirement.

The value of the CPA Canada Financial Literacy

program has been recognized twice by the Institute

for Financial Literacy in the U.S., which honoured

CPA Canada in 2013 with its Excellence in Financial

Literacy Education award, Adult’s Book of the Year,

Credit, for A Canadian’s Guide to Money-Smart

Living. CPA Canada was named Organization of the

Year, Nonprofit, in 2014. It’s the first time a non-U.S.

organization has received the Organization of the

Year award.

CPA Canada also hosted Financial Literacy Day on

Parliament Hill in March, which is Fraud Prevention

Month in Canada. Kevin Sorenson, Minister of State

for Finance, was keynote speaker at the launch of the

CPA Canada guide, Protecting You and Your Money:

A Guide to Avoiding Identity Theft and Fraud. At the

event, attended by members of Parliament and other

dignitaries, CPA Canada encouraged MPs to offer

Community Connect financial education sessions,

led by CPA members, in their ridings.


1717

http://financialdecisionsmatter.ca/


Volunteers inVAluABle to orgAnizAtion’s suCCess

Volunteers play a pivotal role in delivering CPA Canada’s mission and vision. They serve as an extensive network of academics, professionals and subject matter experts. Through their contributions, they provide CPA Canada with a real-world understanding of stakeholder needs, help the organization explore and develop knowledge, and support its due diligence process to ensure timely, relevant and high-quality products and services.

• Nearly200volunteerswithexpertiseinfinancial reporting, audit, governance, sustainability and a variety of other crucial areas, contribute significant time and energy as a key part of the research, guidance and support areas’ due diligence process. They serve on five advisory boards, and 16 additional working groups, committees and task forces. These volunteers help CPA Canada understand member and other stakeholder needs and explore and develop its knowledge base.

• Morethan100memberexpertsvolunteeron CPA Canada’s eight tax committees that cover the interests of big businesses, and small and medium enterprises. These committees address tax administration and policy issues, as well as education and knowledge sharing. They ensure CPA Canada hears from members on critical issues and facilitates dialogue.

• VolunteersarecriticaltothejointCanadianBar Association/CPA Canada committee on taxation, which plays an important role in reviewing and commenting on existing and emerging tax legislation of significance to taxpayers and tax practitioners.

• DevelopmentofCPAeducationprograms relies heavily on volunteers. The Competency Map Committee develops and updates the CPA Competency Map; the advisory committees for CPA education and certification advise on the appropriateness of technical content, skill development, pedagogy and future enhancements; the Board of Evaluators oversees the development, administration and marking process for the CPA Professional Evaluations.

• Volunteersalsoserveasadvisorsandsubject matter experts for the development of new professional development courses, modification of courses and advancement of new strategic directions. As members of conference planning committees, volunteers advise CPA Canada staff on topics, raise the profile of the conferences in the broader business community and act as speakers and panelists.

• Valuableadviceandinputonexistingandpotential member products, publications and services also come from volunteers. The CPA Magazine Editorial Advisory Board, for example, acts as an important sounding board for story ideas.

18

1. Strategy, Management Accounting and Finance Advisory Board. Back row (left to right): Todd Scaletta, Laurie Tugman, John Babiak, John Leader, Manfred Schulz, Tim Herrod, Joanne Elek. Front row (left to right): Andrea Johnston, Maureen Sullivan, Jennifer Barber, Teresa Fortney, Carol Raven. 2. Reports on Supplementary Matters Arising from an Audit or Review Engagement task Force. Back row (left to right): Agnes Dykstra, Tina Abedrabbo, Katherine Schamerhorn. Front row (left to right): Nazia Lakhani, Taryn Abate, Heather Rahman, Andrée Lavigne, Jacqui Kuypers. 3. Sustainability Advisory Board. Back row (left to right): Elaine Wong, David Crawford, Peggy Cunningham, Mike Garvey, Cecilia Banh, Todd Scaletta. Front row (left to right): Mary Ann Finn, Alan Willis, Susan Todd.

SOmE OF ThE COmmITTEES POwERED By STAFF AND vOLUNTEERS

1

2

3

4

5

6

4. Small and Medium-sized practices Advisory Group. Back row (left to right): Dale Somerville, Ross McNichol, Bob Gore, Kelly Lohn, Brenda Burgess, Robert Gold. Front row (left to right): Nicholas Cheung, Susan McIsaac. Absent: Wanita McGraw, Chris Reimer, Martin Cloutier. 5. Canadian performance Reporting Board. Back row (left to right): Gord Beal, Dirk Lever, Dan Thornton, Jonathan Allen, Nick Zelenczuk, Tom Peddie. Front row (left to right): Peter Chant, Rick Flynn, Pamela Campagnoni, Joan Dunne, Karyn Brooks, Rebecca Rennison, Martin Lundie. Absent: Chris Hicks. 6. practitioners technical Advisory Board. Back row (left to right): Jonathan Winn, Simon Salole, Phil Cowperthwaite, Andrée Lavigne, Annie Storey, Melanie Leduc. Front row (left to right): Susan McIsaac, Michael Ell, Debbie Gorsline, Taryn Abate, Jocelyn Patenaude, Jane Bowen, Paule Bouchard, Juli-Ann Gorgi.


1919


100

200

300

400

500

600

700

800

MAY 24, 2011CICA and CMA Canada release position paper on unification,

beginning consultation process with their membership

SEPT 2013CPA Professional Education

Program (CPA PEP) available in Western Canada (to be rolled

out nationally in fall 2014)

OCT 1, 2014Target closing date

for integrating CGA-Canada into

CPA Canada

OCT 8, 2013CGA-Canada members ratify the Integration Agreement between CGA-Canada and

CPA Canada

MAY 25, 2012CICA, CMA Canada, CGA-Canada

release leading stakeholder consultation report

endorsing unification

JAN 17, 2012CICA, CMA Canada and

CGA-Canada release unification framework

JAN 1, 2013CICA and CMA

Canada establish CPA Canada

APR 1, 2013CPA Canada

becomes operational

UNIFICATION TIMELINE

COMMON FINALEXAMINATION

CPADESIGNATIONCOMPLETE CPA PROFESSIONAL EDUCATION PROGRAM (CPA PEP)

CORE1

CORE2

ELECTIVE1

ELECTIVE2

CAPSTONE1

CAPSTONE2

SUBMITTRANSCRIPT

MEET REQUIREMENTS FOR ADMISSION INTO CPA PROFESSIONAL EDUCATION PROGRAM (CPA PEP)

WITHOUT SUBJECTAREA COVERAGE

WITH SUBJECT AREA COVERAGE

CPA PREREQUISITE EDUCATION PROGRAM (CPA PREP)

RECOGNIZED UNIVERSITY COURSES OR PROGRAMS

DEGREE

RELEVANT PRACTICAL WORK EXPERIENCE RELEVANT PRACTICAL WORK EXPERIENCE

EDUCATION

CPA Canada is the first non-U.S. organization to receive the Institute of Financial Literacy Organization of the Year award in the non-profit sector

CPA Canada is the first non-U.S. organization to receive the

Institute of Financial Literacy Organization of the Year award

in the non-profit sector


CPA PEPlaunchedwith 800studentsin Sept.

2013

Mentoring future aboriginal leadersCPA Canada and the Martin Aboriginal Education

Initiative (MAEI), led by former prime minister

Paul Martin, continue to deliver the MAEI/CPA

Canada Accounting Mentorship Program. Seven

ofthecountry’stopfirms—BDO,Deloitte,EY,

GrantThornton,KPMG,MNPandPwC—support

this community outreach effort by enabling staff

to volunteer as mentors for academically oriented

aboriginal students. The program operates in 15 high

schools in Ontario, Manitoba, Saskatchewan and

British Columbia. Participation is expected to grow

as more high schools in these provinces come on

board, and the program expands across Canada.

More than 50 high school students are paired with

mentors. These relationships often continue for those

students who pursue post-secondary education.

CpA Canada launches professional Education and prerequisite Education programsAs the foundational entry points on the path to

certification, both the CPA Professional Education

Program (CPA PEP) and the CPA Prerequisite

Education Program (CPA PREP) were launched this

year. The CPA PEP was first offered to more than

800 students in the Western region as scheduled

in September 2013. Four electives are at various

stages of completion, with two of them (Tax and

Performance Management) being a priority for

delivery in July 2014 and Assurance and Finance

on schedule for delivery in fall 2014. Launched in

July 2013, the CPA PREP is for people who have an

undergraduate degree, regardless of the discipline,

but lack some or all of the courses required for

admission to the CPA PEP.

New Practical Experience Requirements have also

been developed, and a reporting tool is expected

to be available by June 2014. Guides have been

developed for employers, mentors and staff.

The CPA certification program

the path to Canada’s foremost accounting and business credential The CPA certification program is designed to

meet the needs of industry, government and public

practice by ensuring that graduates have the

knowledge and skills to succeed. The program allows

students to customize their learning by selecting

electives that support their career interests, and

includes a specific path for students who want a

career in public accounting. The program builds

on the best of the legacy education offerings and

100

200

300

400

500

600

700

800








CPA Canada


CPA Canada









becomes operational




CORE1

CORE2

ELECTIVE1

ELECTIVE2

CAPSTONE1

CAPSTONE2

SUBMITTRANSCRIPT






DEGREE


EDUCATION







2013

20

is a challenging and rigorous certification process

that meets or exceeds all International Federation

of Accountants (IFAC) standards for education,

assessment and practical experience. It also meets

or exceeds the requirements of the leading global

accounting bodies, ensuring the CPA profession

can maintain existing and establish new mutual

recognition agreements (MRAs) or reciprocal

membership agreements (RMAs).

The new program is nationally developed and

delivered by provincial or regional bodies.

A high-quality, cost-effective professional program The CPA certification program consists of:

• academicprerequisitesforadmissiontothe

program, which can be obtained through the

CPA PREP

• agraduate-levelCPAProfessionalEducation

Program

• examinations,includingtheCommonFinal

Examination

• relevantpracticalexperience

100

200

300

400

500

600

700

800








CPA Canada


CPA Canada









becomes operational




CORE1

CORE2

ELECTIVE1

ELECTIVE2

CAPSTONE1

CAPSTONE2

SUBMITTRANSCRIPT






DEGREE


EDUCATION







2013


100

200

300

400

500

600

700

800








CPA Canada


CPA Canada









becomes operational




CORE1

CORE2

ELECTIVE1

ELECTIVE2

CAPSTONE1

CAPSTONE2

SUBMITTRANSCRIPT






DEGREE


EDUCATION







2013

2121


tAx mAtters CPA Canada is establishing itself as the authoritative voice on tax issues affecting its members and the public. It is also the country’s leader in the development and provision of tax education. This year, CPA Canada spoke out on a number of critical tax issues in the press, on its new Conversations About Tax blog and directly withthose in the know at the federalgovernment.

Clarifying the confusion around corporate tax evasion CPA Canada called for greater clarity and transparency in the corporate income tax system through its comprehensive thought leadership paper Corporate tax evasion, avoidance and competition: Analyzing the issues and proposing solutions, released in November. The paper emphasized that Canada must maintain its competitive position and that any solutions should reflect a Canadian perspective. Recommendations included: Keeping corporate income tax rates low; tightening the focus of specific anti-avoidance rules; rethinking the corporate income/consumption tax mix; using tax policy to help Canadian businesses compete; and pursuing more international tax information exchange agreements.

Canadian professional accountants play a significant role in advising and assisting companies to comply with their tax obligations at home and abroad. CPA Canada noted that while tax evasion is illegal and harmful to economies and should be prevented, legal tax planning by businesses should be accepted as a means of minimizing expenses. CPA Canada’s recommendations were discussed with senior officials at the Canada Revenue

Agency (CRA) and Finance Department.

Strengthening its role as trusted advisor on taxCPA Canada was extensively involved in discussions and in making formal representations to the CRA regarding the new legislative requirements for taxpayers to provide information on their foreign assets. There was significant concern about the added cost and administrative burden of these new requirements on taxpayers, tax preparers and the investment community.

CPA Canada is also proactively consulting with the CRA as it works out the design of a proposed registration program for tax preparers. The new program would require registration by practitioners who prepare T1 and T2 tax returns for a fee. CPA Canada began seeking input from its

members in early 2014, hosting a roundtable of key stakeholders to identify common concerns and develop possible recommendations, and it plans to make a formal submission.

As leading experts on tax, CPA Canada and CGA-Canada made a joint pre-budget submission to the Commons Finance Committee last August. The submission recommended that the federal government:

• Undertakeacomprehensivereview of Canada’s tax system and reduce its complexities and inefficiencies;

• Exploretheopportunitiesto adopt standard business reporting in order to reduce red tape and taxpayer compliance costs and enhance data collection; and

• Implementapatentboxscheme to give Canadian companies incentive to develop and commercialize their innovations in Canada.

22

CPA Canada Annual Report 2013-2014: Acting in the public .../media/site/the-cpa... · boards, CPA...

Documents

Transcript of CPA Canada Annual Report 2013-2014: Acting in the public .../media/site/the-cpa... · boards, CPA...