1. 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
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3. Background

4. The Accounting Profession
Professional Accountants in Professional Accountants
BC, 2012 in Canada, 2012
CGAs CAs CGAs
10,319 11,006 29% CAs
40% 42% 46%
CMAs
4,762 CMAs
18% 25%
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5. The Accounting Profession
Unification 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• CA Alberta has withdrawn from the merger talks
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6. Is the Status Quo a Viable Option?
Possible Risks
 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…
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7. This will be the Accounting
Profession in Canada in April 2012
CGAs
CAs
29%
46%
TODAY CPAs
20%
CAs
35%
CMAs
25%
APRIL 2012
End Game
CGAs
24%
CMAs
21% Chartered
Professional
Accountants
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8. National Unification Framework

9. The Profession Responds
National 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
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10. The National Unification Framework
8 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
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11. The National Unification Framework
8 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
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12. 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.
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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
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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
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16. 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
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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
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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
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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
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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.
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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
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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.”
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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.”
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25. A Closing Thought
These comments were written by
Clarence Ivey, President,
Society of Management Accountants of Canada,
in 1969
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26. Comments/Questions/Input
For more information or
to share your comments and questions:
www.CPACanada.ca
www.cmabc.com
cmabc@cmabc.com