Email the CGA Update link to your mobile.

ISSUE 60 • February 25, 2011
Your e-connection to CGA-BC


See our PD schedule for 2011.

Certificate In Executive Leadership

Make the most of your leadership potential and take your career to the senior executive level. Check out the CGA-BC Certificate in Executive Leadership—where leaders are made. Learn all you need to know about this exciting opportunity here.

Chapter PD

See which professional development seminars the chapters are presenting in March & April.
Association Chair Speaks
in Victoria and Squamish

Bruce Hurst, FCGA, CGA-BC Chair of the Board of Governors, will be the featured speaker at two business events next month.

On March 2, he gives a luncheon address to the Victoria chapters of CGA-BC, the Certified Management Accountants and the Financial Management Institute at their annual joint PD workshop at the Harbour Towers Hotel & Suites.

Two weeks later, Mr. Hurst will speak to the Squamish Chamber of Commerce at its March 15 luncheon.

For both engagements, he will deliver the presentation, "Canada in a Turbulent Global Economy: Embracing Challenge and Opportunity."

For more information, contact Tracey Tse.

T-1 Registrations

If you are a CGA preparing individual
T-1 tax returns, with or without schedules, and charge a fee for this service, you are required to register this limited practice with the Association.

See the CGA-BC website for details on registration requirements.

New EI Benefits Available for the Self-employed

If you are self-employed, you may now qualify for employment insurance special benefits. They include maternity, parental, sickness and compassionate care. Visit or call
1 (800) O-Canada for more

Check Us Out on Social Media


To find out what’s happening with the Association right now, follow us on Twitter. We’re tweeting daily. You can track what we’re up to whether you’re interested as a student, member, potential student, educator or member of the media.

You can also follow us as a fan on Facebook.

Subscribe Now to Your Chapter Newsletter

The best way to stay up-to-date on your chapter's activities and news is by subscribing to your online chapter newsletter. It's easy.

  1. Visit the Chapter Newsletter page of our website.
  2. Select your newsletter.
  3. Click on the orange RSS Feed button on the top right of the newsletter.
  4. Select the 'Subscribe to this feed' button to automatically receive new posts via email.

Now you won't need to remember to visit the newsletter online, the news will come to you.


Maintaining Public Trust

As part of CGA-BC's commitment to upholding our high standard of conduct, members and students are reminded to visit the Protecting the Public section of our website on an ongoing basis. Open to the public, this section relates to our commitment to transparency and full disclosure. It explains our ethics process and provides up-to-date information on public advisories and the latest disciplinary summaries.

Free In-person Tax Seminars

Did you know you can attend free events and seminars held by the Canada Revenue Agency (CRA) to help you understand your tax-related obligations or those of your client?

The CRA's popular tax seminars are held across Canada and give individuals, businesses, and their representatives important information about how to manage their tax affairs. Seminars for individuals include such topics as: seniors and income tax, the Child Disability Benefit, and newcomers to Canada. Seminars for businesses include topics such as: registering for a GST/HST account, payroll requirements, T4 slip preparation, and more.

Go to B.C. events to register for an event in your area.

Get the latest scoop on CGA-BC's hottest jobs...

New Routes to Professional Development

If you’re interested in webcasts, video seminars and online courses, it’s time to check out PD Net. Visit today and discover a wealth of opportunities on a huge variety of topics. You’ll find seminars on ethics, taxes, leadership and more. And all of these seminars are designed for working CGAs like you.
Students Make Big Impression at 2011 UBC Connect Night
CGA Connect dinner with UBC's Sauder School of Business.

Energy. Intellect. Ambition. These were the words CGA-BC Chair Bruce Hurst, FCGA, used to describe the students he met at the 2011 UBC Connect event last Wednesday night.

Approximately 110 students from UBC's Bachelor of Commerce program and UBC's Diploma in Accounting Program (DAP) packed the main ballroom at the University Golf Club in Vancouver to network with CGAs and to hear the annual Chair's Address.

There is little doubt that these future accountants made quite an impression on all those present. "This is such a remarkable group of young men and women," said Dan Relihan, CGA, the Association's Manager, Recruitment & Employment Initiatives. "It's incredible how smart they are and what they have accomplished already."

He could have easily been referring to Emily (Yan Yan) Qiu, an impressive DAP student who already has a Bachelor of Arts, an MBA and is now working to add an accounting designation to her long list of credentials. Ms. Qiu appreciated the tremendous opportunity to soak up knowledge and advice from CGAs such as Brian Galloway, FCGA. The students at his table eagerly listened as he recounted his own career journey from the time he began the CGA program at 19, earned his designation at 24, and then worked his way up to become a partner of Galloway Botteselle & Company.

See the gallery of images.

[Read more...]
CGA-BC Reviews 2011 Budget and Calls for Bold Vision
CGA-BC's 2011 Budget Response Team

On Tuesday, February 15, the Certified General Accountants Association of British Columbia's budget response team provided their impressions of the provincial budget.

CGA-BC's Chair of the Board of Governors Bruce Hurst, FCGA, answered questions from the media and was joined by the Association's Chief Executive Officer Gordon Ruth, FCGA, First Vice-Chair Cindy Choi, CGA, and Communications Director Edward Downing to comment on the short-and long-term implications of British Columbia's fiscal plan.

Mr. Hursts's comments were picked up by CBC Radio and several print publications.

See the news release and hear the Chair's voice clips from the budget lockup in which he calls on the incoming government "to create an environment in which business can thrive."
Budget Results in Amendments to BC Income Tax
February 15, 2011

The provincial government announced its 2011 Budget on February 15, 2011. Programs administered by the Income Taxation Branch are amended as a result. The changes are described in detail in the following webpages.

2011 Income Tax Budget Information
2011 Budget and Fiscal Plan

February 10, 2011

The following bulletins have been revised to reflect the changes announced in Budget 2010:

Bulletin CIT 008, British Columbia Book Publishing Tax Credit
Bulletin CIT 009, British Columbia Film and Television Tax Credit
Bulletin CIT 010, British Columbia Production Services Tax Credit
Bulletin CIT 011, British Columbia Digital Animation or Visual Effects Tax Credit
CGA-BC Calls for Submissions to Independent HST Panel
On January 26, the provincial government appointed an independent panel to analyze the implications of keeping the HST or returning to the PST and GST sales tax system.

The Association, and its members, has been invited to provide recommendations to the panel. This is an important opportunity. We ask you to help the panel understand the needs of our clients, employers and our own businesses by providing measured advice based on professional experience and the insight we bring to taxation, specific industries, small business, and economic competitiveness.

According to the independent panel's terms of reference, the panel has broad latitude to analyze and report on the following:
  • The fiscal implications of each option to the provincial budget in both the short and long term
  • The expected impact of each option to B.C. businesses and B.C.'s economic competitiveness
  • The consumer impacts to individuals/families of each option
  • Relevant information and analyses from other jurisdictions.
Please forward your ideas and recommendations to Edward Downing, CGA-BC Director of Communications by Wednesday, March 2.

The panel's final report to the public is due by the first week of April. More information about the panel is available at the new HST website,
Continuing Professional Development (CPD) Q&A
Q: Now that the 2008 - 2010 cycle is complete, what is my new three-year cycle?

A: We operate on a three-year rolling total cycle basis. Once your 2008 - 2010 cycle is complete, your next cycle is 2009 - 2011.

Q: When do I need to fulfill the four-hour ethics requirement again?

A: The four-hour ethics requirement must be fulfilled once in each three-year cycle. Therefore, if you completed the requirement in 2008 for the 2008 - 2010 cycle, you would need to complete another four-hour general applied business ethics course in 2011 for the 2009 - 2011 cycle.

Q: How do I check my total CPD hours going forward?

A: To view your CPD hours summary, from the main CGA-BC home page, select the "Members" tab. Next, select "Online Services". Finally, select "Report CPD". You will be prompted to enter your Member ID number and password. Once you've accessed the Report CPD page, you can view your numbers summary by selecting the "Summary" tab in the upper left corner, located on the blue bar just above your name.
Members and Milestones
This is an auspicious year for CGA-BC. 2011 marks the 60th anniversary of the Association's founding by an act of the legislature.

Since 1951, our designation has grown ever larger and more prestigious, our members ever more successful and influential. As testament to this growth, we will celebrate another milestone next week: the certification of our 10,000th member. Add 5,000 highly trained CGA students to the mix and you lay claim to the title, "Largest and Fastest Growing Accounting Body in the B.C."

Our founders in 1951 would be proud. We should be, too. Next week we will throw a spotlight on the 10,000th current active member. Throughout the year we will promote the Association's diamond anniversary online, in addresses by our Chair, Bruce Hurst, FCGA, and in our correspondence. In so doing we hope to pay tribute to the thousands of members who have come before and inspire the untold number of B.C. CGAs yet to come.

Act of Incorporation [PDF - 411KB] Click to zoom in on the 1951 Bill 61, Act to Incorporate the Certified General Accountants Association of British Columbia.
Bill Caulfield Plaque Unveiled at CGA-BC Building
Bill Caulfield Memorial Plaque

One year after the passing of long-time CGA-BC Executive Director Bill Caulfield, (CGA Hon.), Association staff joined Ann Caulfield and CGA-BC Chair Bruce Hurst, FCGA, for a brief ceremony of remembrance.

A stone plaque was unveiled in the lobby of the CGA-BC Building as a reminder of and tribute to the man who gave 35 years to the Association. Ann Caulfield said, "Bill never wanted us to make a fuss like this. But seeing this [plaque] now, it seems even more beautiful than I when I first saw it at Conference. This means so much to our family. Thanks to CGA and thanks to all of you."
Speed Interview Nights Make Partners
Speed Interview Success

Congratulations to Saskia Muller, BCom, CGA, and Selina Nisbet, BCom, CGA. The two young women are the newest partners at CGA firm Galloway Botteselle & Company and the latest examples of CGA-BC's rampantly successful Speed Interview Nights. They are also the first female partners in the history of Galloway Botteselle & Company.

The announcement inspired tremendous pride amongst the Association, which considers itself the successful marriage broker to the two long-term engagements. Both Muller and Nisbet were hired by Galloway Botteselle & Company seven years ago at one of the first Speed Interview events.

Said CGA-BC Manager of Recruitment and Employment Initiatives Dan Relihan, CGA; "It is a fantastic accomplishment for two outstanding young professionals and a testament to an initiative that has caught fire on campuses across B.C."
Financial Literacy: Move Fast To Implement National Strategy Says CGA-Canada
The comprehensive recommendations put forward by the Task Force on Financial Literacy provide clear direction for an effective national strategy. The federal government should act on them as early as the federal budget, says the Certified General Accountants Association of Canada (CGA-Canada).

"We're delighted with the Task Force's report. We're pleased it recognizes and builds on existing efforts, stressing shared responsibility and cooperation. We call on federal government to move quickly and decisively to implement the Task Force's recommendations to achieve an effective national financial literacy strategy," says Anthony Ariganello, CGA-Canada's President and CEO. "The report is only the first step to a national strategy - the government needs to act on these recommendations."

"We support the principle of accountability, as endorsed by the Task Force, through its recommendation to appoint a national leader to report to Parliament on an annual basis. There is a real opportunity for federal leadership - within a partnership arrangement with involved stakeholders - in any national Canadian-made strategy on financial literacy."

[Read more...]
Changes to Public Practice Registration Effective January 1
Several changes made to the rules for entry into public practice became effective January 1, 2011. Highlights of these changes are:
  • Full registrations are now separated into two categories:

    1. Full Public Practice Registration - Assurance

    2. Full Public Practice Registration - Compilation and Tax.

  • In addition to attaining competence in assurance engagements, the Assurance category will require an experience assessment based on 1,250 assurance hours and 200 tax hours. If a member does not have sufficient competence and hours of experience prior to registration, he or she will be required to engage a mentor.

  • Tax 2 or Tax 2 Home Study course (or equivalent) is mandatory and is now a prerequisite requirement.

  • Auditing 2 or Auditing 2 Home Study course (or equivalent) must be completed:

    1. as a prerequisite for those registering in the Assurance category;
    2. on a post-registration basis for those registering in the Compilation and Tax category.

  • A comprehensive Competency Assessment Process will be used to determine a registrant's experience level.

  • The Case Study requirement, which examines a registrant's ability to research legislation impacting clients, became a prerequisite rather than a post-registration requirement.
All CGAs engaged in public accounting are required to register with the Association. See the "Register in Public Practice" area of the website for more registration details. To begin the registration process, contact Sandra Domeikiene at (604) 629-5396 or toll free 1 (800) 565-1211 extension 396.
News From CRA
Employers Can Now File Multiple T4 Web Forms
Starting in January 2011 you can electronically file up to six T4 slips using the Canada Revenue Agency (CRA) T4 Web forms service.

Important facts
  • Simple - This online, interactive service eliminates the need to send paper copies of your T4 slips to the CRA by allowing you to file them online at

  • Fast - No software required. All you do is enter the data for your employee(s) onto the online slips.

  • Complete and secure - The T4 Web forms online service will let you:

    1. file original, additional, amended, and cancelled slips directly from the CRA Website;
    2. create an electronic T4 information return;
    3. validate data in real time, with prompts to correct errors before filing;
    4. calculate the totals for the summary;
    5. print T4 slips for employees; and
    6. securely submit encrypted returns over the Internet.

  • When you file your return, you will get a confirmation of receipt that includes your Business Number, name, tax year, and the date and time of receipt.
For more information on filing your T4 and other information returns electronically, go to
Four - Hour Ethics Seminars Scheduled for 2011
The following seminar opportunities are for Making the Case for Ethics.

March 8
8:30 am - 12 pm
1 - 4:30 pm
Arbutus Club, Vancouver
April 4
8:30 am - 12 pm
1 - 4:30 pm
Hilton Metrotown, Burnaby
May 19
8:30 am - 12 pm
1 - 4:30 pm
Ramada Hotel and Conference Centre, Kelowna
June 1
8:30 am - 12 pm
1 - 4:30 pm
Comfort Inn, Victoria
June 24
8:30 am - 12 pm
1 - 4:30 pm
Arbutus Club, Vancouver
Public Practice News
Next Vancouver Public Practice Speed Interview Night - May 2011

The next Vancouver Public Practice Speed Interview Night will take place in late May. This free evening event provides CGA public practice firms with the opportunity to employ quality staff.

If your firm is in need of finding quality staff quickly, consider participating in Public Practice Speed Interview Nights.

To register your firm, contact Anita Fortune. For job seekers, check for registration start dates.

PEAC Assists with Private Enterprise Standards

The Accounting Standards Board (AcSB) established the Private Enterprises Advisory Committee (PEAC) in 2010 to assist in maintaining and improving the accounting standards for private enterprises and advise on the need for non-authoritative guidance about the standards. At the request of the AcSB, the PEAC may also undertake research into the financial reporting needs of private enterprises.

The PEAC has met three times since its inception. At its latest meeting, held December 7, 2010, several topics of interest were discussed. Read the PEAC meeting notes to get details about:
  • the opening balance sheet on first-time adoption
  • business combinations - contingent consideration
  • subsequent events
  • fair value measurement
  • financial instruments
To keep current with what the AcSB is doing in the area of private enterprises, be sure to visit its website regularly.

Review Engagements - Possible Standard Changes

The Auditing and Assurance Standards Board (AASB) approved the issuance of an Invitation to Comment (ITC) on the International Auditing and Assurance Standards Board's ( IAASB) Exposure Draft ISRE 2400, Engagements to Review Historical Financial Statements. The ITC is expected to be issued during February 2011 with a response deadline of April 11, 2011. In the meantime, the AASB's website provides some insight into why amending Review Engagement standards is being considered.

The AASB has not decided whether to adopt ISRE 2400. However, adopting such standards has some appeal because it would enable the AASB to adopt future IAASB review engagement standards with minimal amendments should it decide to do so. The AASB will conduct its own research and monitor the progress of the IAASB's project before deciding whether to adopt revised ISRE 2400. Any decision to adopt international standards would be subject to public comment from Canadian stakeholders.

The objective of this project is to revise the standards for review engagements to:
  • improve the robustness of the standards by reflecting current practice; and
  • appropriately address the needs expressed and issues raised by practitioners and other Canadian stakeholders.
The scope of this project is expected to include revising or replacing the following Sections:
  • Section 8100, General Review Standards;
  • Section 8200, Public Accountant's Review of Financial Statements; and
  • Section 8500, Reviews of Financial Information Other than Financial Statements.

An Overview of the Quality Control and Monitoring Processes

The CSQC 1

On December 15, 2009, a new quality control standard called the “Quality Control for Firms that Perform Audits and Reviews for Financial Statements and Other Assurance Engagements” came into effect. Commonly referred to as CSQC 1, this standard involves two processes:
  1. The Engagement Quality Control Review process (EQCR) and
  2. The Monitoring process
These two processes serve different purposes. The EQCR process is concerned with the quality of a specific engagement. Monitoring focuses on the firm’s systemic quality control. Therefore, these two processes occur at different times. The EQCR takes place prior to an engagement’s completion; monitoring occurs after completion, sometimes as long as three years or more thereafter.

What is the purpose of this standard?

Fundamentally, this standard is intended to promote a high calibre of quality in assurance engagement work. Specifically, Canada introduced the CSQC 1 to prepare for the new Canadian Auditing Standards (CASs) that are based on currently held international requirements. The CASs came into effect for periods ending on or after December 14, 2010.

Which Engagements Qualify for EQCRs and Monitoring?

Not every engagement will get an EQCR nor be monitored. Each firm will set its own criteria for what engagements qualify for these processes. Monitoring is a cyclical process and each firm sets its own cycle length, although three years has been suggested for low-risk engagements.

What happened to the GSF-QC?

The “General Standards of Quality Control for Firms Performing Assurance Engagements” (GSF-QC) was replaced with the more stringent CSQC 1 on December 15, 2009. The major difference between these two standards lies in the monitoring process. The GSF-QC allowed the same person to perform the Engagement Quality Control Review and monitor the same assurance engagement. The CSQC 1 requires that those performing an EQCR on an engagement cannot be involved in monitoring the same engagement.

Overview of CSQC 1

The attached chart is intended to provide an overview of when the CSQC 1 standard applies.
Tax Benefit Programs for Persons With a Disability
The provincial brochure, "Tax Benefit Programs for Persons with a Disability," has been updated and rewritten in plain language for 2011. The short brochure covers the fuel tax refund, motor vehicle insurance discount, home owner grant, and property tax deferment available for people with disabilities.

See the "Tax Benefit Programs for Persons with a Disability" PDF.
$22-million Donation Establishes SFU Beedie School of Business
February 9, 2011

Ryan and Keith Beedie have donated $22 million to Ryan's alma mater-SFU Business, which will now be named the Beedie School of Business. This is the largest gift that Simon Fraser University has ever received.

SFU will use the gift to create an endowment supporting students, professorships and research chairs.

"Receiving a gift of this magnitude is wonderful for the university," says SFU president Andrew Petter, "but having it come from a former student makes it even more special. I can't imagine a better way for Ryan and his father to recognize the value of education than to give back to the business school to build its program and make it more available to others. That speaks volumes."

Daniel Shapiro, dean of the newly named Beedie School of Business, says that the gift will help make the school a global thought leader in areas such as innovation and entrepreneurship, Asia Pacific business studies, risk management and sustainability.

"The students who graduate from SFU's Beedie School of Business will go on to lead existing Canadian businesses and to create exciting new ones. This gift is really an investment in the economic future of British Columbia and Canada."
Taxpayers' Ombudsman Reappointed for Second Term
Keith Ashfield, Minister of National Revenue, announced Wednesday that Mr. J. Paul Dubé, who became Canada's first Taxpayers' Ombudsman in February of 2008, has been reappointed for a five-year term.

The Taxpayers' Ombudsman is an independent and impartial officer who is appointed to investigate complaints from people who believe they have been treated unfairly or unprofessionally by the Canada Revenue Agency (CRA). The Office of the Taxpayers' Ombudsman also identifies and investigates systemic and emerging service-related issues that have a negative impact on taxpayers.

"I look forward to the opportunity to build on our accomplishments and to deliver more positive results for taxpayers," said Mr. Dubé. "Our office will continue to work to uphold the service rights in the Taxpayer Bill of Rights and to help the CRA provide the highest level of service to Canadians."

To date, Mr. Dubé has produced two annual reports which have been tabled in Parliament. He has also published two special reports: The Right to Know and Proving Your Status. The Canada Revenue Agency has carefully studied all of these reports and has already taken steps to address many of the issues that he has identified. For more information, visit
B.C. Households Most Vulnerable Financially: TD Economics
From the February 9 issue of BIV Online

B.C. households may be most at risk for a major financial downturn, but we're also more likely to be able to handle it, according to a new index by TD Economics.

The financial vulnerability index ranks B.C. home owners as the most vulnerable to an unexpected economic surprise, like a substantial correction in housing prices, or an unexpected large increase in borrowing rates.

The high cost of home ownership is the primary reason for the report's results. B.C. households have the highest debt servicing costs in the country and the highest level of debt relative to income.

But Craig Alexander, TD's chief economist, said as high as the results are, the situation has not changed in the past decade. B.C.'s debt service ratio, the proportion of income required to service one's debt, has remained relatively stable, hovering around 22 per cent, despite a debt-to-income ratio rising to 161 per cent from 121 per cent in 1999.

He also noted that despite higher debt loads, the share of vulnerable households in the province is at an all time low of 5.9 per cent. The report defines vulnerable households as those with a debt-service ratio of 40 per cent or more. If rates were to rise 2 per cent over the next two years, Alexander said the proportion of vulnerable households would rise to 9.8 per cent, which is similar to levels a decade ago.

"We don't have a U.S. style problem, but B.C. household finances have become stretched and they are vulnerable if we were to have something untoward occur. But I don't expect any of the shocks to happen."
CGA-Canada Recognized as One of BC's Top 55 Employers
The Certified General Accountants Association of Canada (CGA-Canada) is proud to be recognized as one of BC's Top 55 Employers for 2011 by Mediacorp Canada Inc.

"It's great recognition to be named as one of BC's Top Employers for 2011, hot on the heels of being confirmed as one of Canada's Top 100 Employers," says Anthony Ariganello, President and CEO of CGA-Canada. "We do everything we can to help our people thrive and succeed - we realize that employees who are happy at work take the best care of our organization and the members we serve. Investing in our diverse group of talented and dedicated employees is a win-win."

BC's Top Employers were selected from 2,750 applications received by Mediacorp Canada Inc. CGA-Canada was ranked among BC's and the country's best companies for the quality of its work environment, vacation and leave options, employee engagement activities, professional development and community involvement.
Canadian Tech Sector Mirrors Global Growth Trends
From the February 15 BIV Online

Merger and acquisition (M&A) activity in Canada's tech space climbed 16 per cent last year as companies worldwide pursued smart technologies.

This according to an Ernst & Young report released Tuesday, which said global M&A deals totalled US$119 billion in 2010.

Canadian companies pulled together 83 deals last year compared with 71 the year before, while global deals were up 41 per cent to 2,658.

"Last year's deals reflect the demand for smart everything. We're talking about smartphones, tablets and other mobile devices and infrastructure," said Karen Atkinson, Ernst & Young's national technology industry leader. "But information security, cloud computing and social networking also spurred dozens, if not hundreds, of deals."

Atkinson told Business in Vancouver that the number of small deals also increased last year, with 216 deals worldwide valued at more than US$100 million compared with 132 in 2009.

She explained that small deals are evidence of large firms gobbling up startups to feed their technology and innovation pipeline.

"That's where they get their future growth, not only from an employee perspective but from a technology perspective," Atkinson said.
Recruiting Events
February 28 Career Fair at Selkirk College New Westminster
March 1 CGA Information Session In-house, Vancouver office
March 3 Camosun College Career Fair Victoria
March 7 CGA Information Session at Simon Fraser University Burnaby
March 8 Capilano University Career Fair North Vancouver
March 8-9 Northworks Career Fair Prince George
March 9 CGA Information Session at the College of New Caledonia Prince George
March 9 CGA Information Session In-house, Vancouver office
March 10 College of the Rockies Career Fair Cranbrook
March 10 Thompson Rivers University Career Fair Kamloops
March 10 University of Victoria Business Banquet Victoria
March 10 Speed Networking Event at UBC Vancouver
March 10-13 University of Victoria Leadership Conference Victoria
March 15 CGA Information Session In-house, Vancouver office
March 16-17 UBC Alma Mater Society Career Fair Vancouver
March 22 CGA Information Session In-house, Vancouver office
March 23 CGA Information Session at BCIT Burnaby
March 25 SFU/UBC Business Career Expo Vancouver
March 28 BCIT Career Fair Burnaby
March 29 CGA Information Session In-house, Vancouver office
March 29 CGA Office Hours at BCIT Burnaby
March 30 CAVE Hiring Fair Burnaby