September 2011 - Richard Rees, FCA - Len Baggio, FCA

Town Hall MeetingSeptember 2011

Overview
Chartered Accountants of Canada (CA) and the Certified Management Accountants of Canada (CMA) are exploring uniting through the creation of a new professional designation
We want to talk to you about:
The environment
The rationale for change
Our approach
The benefits
Consultation - June to September
Process going forward

The Accounting Profession in Canada
3 accounting designations
40 legislated bodies(under provincial jurisdiction)
172,000 members

The CA Profession in Canada
14 legislated bodies
78,000 members
BC represents about 12% of
the Canadian
CA profession

Global Financial Regulation …Spotlight on the Profession
Financial crisis – G8 & G20 agendas
Global standards
Global regulatory groups
IFAC
IFIAR
EEC ‘green paper’ late 2010, proposals imminent
PCAOB proposals out for comment
Mandatory firm rotation? Tendering?
UK– parliamentary committee recommends integrating 6 bodies

Government Spotlight on the Accounting Profession in Canada
Self regulation being impacted by:
Ontario Public Accounting Council (PAC) – qualification and licensing
Labour mobility - AIT
Competition Bureau – foreign designation recognition
Fair Access legislations – prior learning assessment
Quebec government initiated 3 way merger – effective April 2012

The Need to Evolve: Global Response/Competition
Profession Responds - Emergence of global accounting designations and strategic alliances
Global Accounting Alliance
US CPA exam offered internationally
AICPA/CIMA to create a new international management accounting designation
ICAEW registered CPA for Europe
Australia + New Zealand integrating operations
ACCA in Canada – seeking non regulatory status and hired CEO
CA/CMA discussion in Canada – Quebec 3 way

The Need to Evolve: Before CMA discussions … a Global Designation?
Globally, CA and CPA are dominant
…. Which will emerge as the global leader??
Securing the CPA Designation
US/Asia trading partners and major economies
Globally
CA … less than ½ million
CPA … over 1 million
We want Canadian members to be able to leverage either

Our Approach: The Profession Responds
Changing landscape in Canada
Accounting bodies started talking about options
Quebec 2010 – government facilitated
Initial contact - Feb 2011
Preliminary framework March 2011
Built on input from 2004 discussions
Reviewed by 3 bodies early April
28 out of 40 agreed to consider further
Time to consult with members
Two elements - designation and 8 principles

A Joint Approach to Unification: Old and New Designations
CA and CMA continue
Does not require any member to give up their existing designation
Chartered Professional Accountant (CPA) designation
Does not require either to issue its designation to members of the other
Evolving to a new qualification program
Retains rigour and international recognition
Pre-eminent designation for professional accountants across all economic sectors and an internationally recognized business credential

Uniting Canada’s Accounting Profession
8 Guiding Principles
Continued use of existing designations
Evolution to a new single core designation
Retention but no expansion of member rights solely as result of the merger
Development of new high-quality certification program
Merged operations and governance at the provincial, territorial and national levels
Focus on the CPA brand
Creation of new post qualification specialty certifications
Agreement on uniform regulatory and licensing framework that meets international standards

Benefits of Uniting
Serving the Public Interest
Consistent standards
Reducing confusion in the marketplace
Benefiting Members
Scale
Global credibility – stronger voice
What is good for the profession is good for the members.
Where will our profession be in 10 years? 20 years?

Will this be the Accounting Profession in Canada in April 2012?
172,000 members
APRIL 2012

The Accounting Profession in CanadaWhat this consultation is about…
172,000 members
Canadian CPA would be one of the largest in world

Consultation Process: Hearing All Viewpoints
Consulting with members and students
Position paper, information and online discussion forums at www.CPACanada.ca
Monthly newsletter
Town halls
Focus groups
MOPE Survey
Talking with governments, employers, academics, students and other stakeholders

Hearing All Viewpoints:Survey of People who Hire CAs
Results of Survey:
58% agree that differences between CA and CMA are blurring
69% agree combining the best of the CA and CMA qualification process would result in better professionals
85% agree a consistent code of professional conduct benefits Canadian businesses
72% agree having a designation aligned with both CA and CPA would be beneficial
64% agree that a single qualification process and designation will make hiring easier

Next Steps
Consultation ends mid September
Quebec direction clear?
Elected leadership determines next steps
We anticipate presenting a concrete proposal in late fall of 2011
Approval process to be determined

The Accounting Profession in CanadaOur options going forward may be …

Comments/Questions?
For more information:
www.CPACanada.ca
www.ica.bc.ca
Goal – a strong independent Canadian profession for the future
Didn’t we vote on this in 2004?
Hiring – how will employers know?

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September 2011 - Richard Rees, FCA - Len Baggio, FCA

by FVCAA on Sep 22, 2011

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September 2011 - Richard Rees, FCA - Len Baggio, FCA — Presentation Transcript