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ISSUE 54 • July 28, 2010
Your e-connection to CGA-BC
Promote Your Volunteer Work

If you are a volunteer, we want to know about your good work. Just fill in our seven-question survey and we'll post the results on our website. We'll learn how diverse our volunteer efforts are and you'll have a chance to promote the charities and institutions near to your heart as we link to the sites of those not-for-profit organizations.

As word spreads and our volunteer database grows, we'll feature a Volunteer of the Month in each issue of CGA Update. Get the ball rolling by telling us about your Volunteer Work and what it means to you.


Advance Your Career



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.


CGA HST Brochure Available

The July 1 implementation date for the Harmonized Sales Tax may not bring harmony to the political front, but it is focusing the minds of B.C.'s CGAs. A sound primer on the new tax is our very own brochure, HST in Canada-BC Edition. View it now.

We've also collected useful HST resources from other sources.

See all of these documents at HST Publications.


Check Us Out on Twitter

TwitterFacebook

To find out what’s happening with the Association right now, you need to 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 of on Facebook.


Give Blood as a Group Effort

     Give Blood

Our aim for 2010 is to donate far more blood and blood products than in previous years. With members, students, staff and our friends and family, we can save more lives.

As rewarding as donating as an individual feels, donating as part of a team is a powerful way to bond and create a strong sense of connection with peers and friends. When you donate together as an office or a chapter, don’t forget to sign in under the CGA-BC Partners for Life team.

Please call 1 (888) 2 DONATE, or visit www.blood.ca to find out how you can give the gift of life.


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.


Convocation Moves West

CGA graduates and their supporters: mark your calendar for Saturday, November 27. That's the day Convocation 2010 is coming.

For the first time, we will be holding the ceremony at the new West Building of the Vancouver Convention Centre at 1055 Canada Place. This is the highlight of the student calendar and a day of tremendous pride and great memories. Registration forms will be sent out to new grads in August. We will post details such as times and rooms in the near future, so check back to the Convocation page under Events on the website.
 
PEP Workout @ End of the Roll (Surrey)
August 10

CGA/LBA Golf Tournament (Richmond)
August 20

Business in Vancouver Leaders Golf Tournament (Vancouver)
August 27

Conference 2010 (Whistler)
September 15 - 19

SUCCESS Workshop (Burnaby)
September 16

UVic Workplace Skills Conference (Victoria)
September 17 - 18

TRU Professional Accounting Night (Kamloops)
September 20

SFU Career Days (Surrey/Burnaby)
September 21 - 22

Graduate & Professional School Fair (Burnaby)
September 23

PEP Workout @ Reid Hurst Nagy Inc. (Richmond)
September 30


For more information, please contact Lisa So.
 
 

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.
Essential Skills Key to Growth, Advanced Education Minister


CGA-BC was front and centre when Dr. Moira Stilwell, the new Minister of Advanced Education and Labour Market Development, addressed the BC Chamber of Commerce June 29 in Vancouver. Stilwell, the MLA for Vancouver-Langara, spoke about ways the province would ensure sustained training and skills development for a knowledge-based economy in the face of budgetary restraints.

Stilwell was introduced by CGA-BC President John Pankratz, FCGA. Also representing the Association at the breakfast event were Interim Executive Director Moe Jones, FCGA; First Vice-President Bruce Hurst, FCGA; Gordon Clissold, FCGA; Brian Galloway, FCGA; Gabrielle Loren, CGA; as well as Edward Downing, CGA-BC Director of Communications, Pamela Skinner, CGA, Director of Member Services, and Juliana Laing, Director of Corporate Affairs.

The day before, the Minister had announced $2 million in funding to create new essential skills training opportunities for over 500 British Columbians through the SkillsPlus program.

Essential skills are identified as reading text, document use, numeracy, writing, oral communication, working with others, continuous learning, thinking skills and computer use. According to Statistics Canada, a one per cent gain in the average literacy / numeracy skill level in Canada would create a permanent increase of $18.4 billion per year in the country’s gross domestic product.

Under the Labour Market Agreement, the federal government is providing B.C. approximately $66 million annually until 2013-14 for essential skills training. Through a variety of programs, these funds will increase training for workers who are low-skilled and require essential skills, or require recognized credentials to reach their full potential in the marketplace.

[See photos from the event...]
Executive Leadership Certificate Promoted on YouTube
You’ve read the brochure and heard the buzz, now see the video for CGA-BC’s Certificate in Executive Leadership Program. This is our first video about the exciting leadership program. The five-minute clip features CGA-BC Member Services Director Pamela Skinner, CGA, Joel Shapiro, PhD, President and CEO of Advanture Consulting, and Chris Molineux, President of Laugh, Learn and Lead Communication Skills outlining the need for leadership education and the benefits accrued to leaders and the organizations they run.

Soon to be released on the “CGA-BC network”: Advanture Consulting President Joel Shapiro, PhD, explores the various meanings of leadership.
Home Page Undergoes Makeover
A home page is fairly described as a website’s face. It makes the all-important first impression and it projects an image to the world. After nearly three years (a lifetime for many sites), it is time for cga-bc.org to undergo a makeover—not a complete surgical facelift, but a botox-free upgrade. Over the next few days we’ll be introducing several changes to the appearance and workings of our home page. Look for cleaner navigation, more links to headline news, a new features area, and video.

The changes aren’t merely to freshen up the look; the underlying coding will also improve the functionality of page for devices that do not support Flash—that will be a boon to iPad and smart phone users.

In addition to the home page, change is afoot on our Student and Member Heads Up pages. Instead of reminding yourself to check back to the important notices on Heads Up, you can now subscribe to either (or both) Heads Up through RSS. Once subscribed, all new postings will be delivered to you automatically.
Ride On! Team Hurst Completes Tour for Bill

The Hurst women at the Ride for the Cure: Danielle, Lindsay and Barbara.

Congratulations to Barbara Hurst, her daughter Danielle and the entire Reid Hurst Nagy cycling team for completing the Ride for the Cure. The 250 km cross-border ride raised $9.2 million on behalf of the BC Cancer Foundation over June 19 and 20.

Barb is office manager at the Richmond CGA public practice firm Reid Hurst Nagy Inc. Her husband Bruce Hurst, FCGA, is a director of the firm and CGA-BC's First Vice-President. Barb and the team decided to enter the event in honour of long-time CGA-BC Executive Director Bill Caulfield, CGA (Hon.), who died of lymphatic cancer on January 29 this year.

In a thank-you note to a supporter, Barb wrote of what the team referred to as their Ride for Bill. "The ride was challenging but truly awesome for being a part of an initiative that raised over $9.2 million for cancer research…because of wonderful people like you."

Team RHN consisted of Dhaya Supramaniam, Tim Edgar, Virginia Balcom, Barbara, Danielle and her sister Lindsay (who provided support at camp). In all, Team RHN raised more than $23,000.
June Series Attracts 76 Leadership Candidates


Seventy-six participants attended the June Leadership Series 2010, which featured seven new core executive leadership seminars from the Certificate in Executive Leadership Program. The seminars were extremely well received and many attendees expressed that this program was exactly what they had been waiting for.

Presentations included the sold-out two-day seminar Stepping Up to Leadership: Leadership Skills and Team Development for the Executive Professional presented by Sue Wazny and Roy Johnson, Coaching for Executive Excellence with Lesley-Ann Marriott, Strategic Decision-Making with David Gibbons, and Best Practices for Leadership & Talent Management presented by Joel Shapiro.

[See the gallery...]
CGA-BC Presents Special Wills and Estates Seminar October 5

Carmen S. Thériault, Q.C

Emma A. McArthur
The Association is pleased to offer members and the public a special breakfast seminar on important changes to the law governing estate planning and administration - the Wills, Estates and Succession Act, expected to come into force in the spring of 2011, as well as the repercussions of the Pecore decision regarding jointly owned assets.

If you are involved with estate planning and wills you won't want to miss this explanation of the changes redefining the field in B.C.

Where: Pan Pacific Hotel, Vancouver

When: Sign in and hot breakfast - 7:30 - 8 am
Significant Changes to the Law - 8 - 8:30 am
Implications for Jointly Owned Assets - 8:30 - 9 am
Q & A - 9 - 9:30 am
CPD: 2 hours

The seminar will be presented by Carmen S. Thériault, QC, and Emma McArthur. Thériault is a partner at Bull, Housser & Tupper LLP in Vancouver. She is also the Past President of the Estate Planning Council of Vancouver, a member of the Society of Trust and Estate Practitioners and a fellow of the American College of Trust and Estate Counsel. McArthur, a lawyer practicing in the Wills, Trusts & Estates practice of Bull, Housser & Tupper LLP, is a member of the Vancouver Estate Planning Council and Treasurer of the Wills and Trusts Vancouver section of the Canadian Bar Association.

[Register here...]
What's Taxable Under the HST and What's Not
The Harmonized Sales Tax regime has been in place for nearly a month now but that doesn't mean consumers and businesses are clear about which items are taxed with GST-only, which are PST-only, which fall under the HST and which avoid sales tax altogether. The B.C. government has an HST blog with a useful list of goods and services and their taxes. It doesn't claim to be comprehensive, but it is extensive.

[See What's Taxable...]
Conference 2010 Newsletter: a Sneak Peek
The first issue of the Conference newsletter, Peak to Pique, eagerly awaits you like a fresh foot of powder on the back bowls of Whistler. It's packed with info on our special keynote speaker, the Dragon Den's Arlene Dickinson, plus a great incentive to volunteer at Conference, news of our Wednesday software vendors' cocktail reception, and the theme of this year's Friday Fun Night.

[Check it out now...]
Educational Foundation Readies Sparkling Fundraiser
Last year Conference participants were wowed by the Wine Spectacular. It was a great success as a fun event and as a money maker for the Educational Foundation. So, many members are wondering, How the heck will they top that in Whistler? The answer lies in four little words: Chocolate-Covered Diamond Derby.

[Learn more...]
IFRS Resources Available Online
A very helpful web page has been created listing IFRS resources, including a link to the Canada Revenue Agency's IFRS web page and discussion of key transition steps for small and mid-sized companies. The web page also includes a new presentation called Get to the Point, which provides transition steps and a convenient IFRS transition work plan. As well, CGA-BC has many practical IFRS resources online.
Bookkeeping and Other Related Services May Require Public Practice Registration
At the September 2009 CGA-BC Annual General Meeting, a motion was passed that changed the definition of public practice. This change means that certain additional activities, including certain aspects of bookkeeping services, now require registration in public practice. In order to accommodate this, a second limited registration category has been established: "Limited Registration - Other."

Members are required to register in this category if they are providing any of the following:
  • forensic accounting, financial investigation and financial litigation support services; and/or;
  • an accounting service insofar as it involves summarization, analysis, advice, counsel or interpretation but excluding an accounting service which is incidental to the provider's primary occupation which is not public accounting; and/or
  • statutory filing services (e.g. preparation of GST, PST, T4s, T5s, payroll withholdings).
These members will be exempted from public practice registration requirements with the exception of the following, which must be provided at the time of registration:
  • payment of all applicable fees; and
  • proof of purchase of professional liability insurance.
To assist members with their understanding of the new definition of public practice, a Frequently Asked Questions listing is provided. This listing includes a link to the registration form.
Full Public Practice Registration Changes as of January 1, 2011
Members intending to provide public practice services are required to meet the rules for entry into public practice. At the core of these services are the standards of the accounting profession. Increased standards over the last few years have placed a demand for more intense development of the competence of public practitioners. This has resulted in the need for registrants in public practice to have training and resources available to them early in the registration process.

Most public practice entry requirements are determined at the national level through CGA-Canada. Over the past year changes to these requirements were made at the national level and will now become effective for CGA-BC members in early 2011. With the exception of the Case Study, all changes listed below are being implemented to meet the national standard.

As of January 1, 2011 the requirements for full registrations to entry into public practice will change as follows:

a) Full registrations will be separated into two categories:
  1. Assurance and
  2. Compilation and Tax.
b) In addition to attaining competence in assurance engagements, the category will require an experience assessment based on:
  1. 1,250 assurance hours and
  2. 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.

c) Tax 2 or the Tax 2 Home Study course (or equivalent) is mandatory and must be done as a prerequisite.

d) Auditing 2 or the Auditing 2 Home Study course (or equivalent) is a new requirement, to be completed:
  • as a prerequisite for those registering in the Assurance category;
  • on a post-registration basis after registration for those registering in the Compilation and Tax category.
e) A comprehensive Competency Assessment Process will be used to determine a registrant's experience level.

f) The Case Study requirement, which examines a registrant's ability to research legislation impacting clients, will become a prerequisite rather than a post-registration requirement. <

For further information, contact Karen Fiorini, CGA, Manager, Quality Assurance, at (604) 730-6231 or toll free 1 (800) 565-1211 ext 231.
Benefit Partner Can Help With Vacation Planning
Still haven't decided where to go for summer vacation?

Whether you plan to enjoy fine wines in the beautiful Okanagan, golf in Whistler, or explore the haunted alleys of Victoria, Destination Tours guarantees to take you on an unforgettable adventure. Tours throughout B.C. and Alberta include two nights' accommodation and an adventure of your choice.

CGA-BC members who book a summer tour with Destination Tours receive $25 off per person ($50 per couple).

For details or to book, see http://www.destinationsnow.com/dtour_index.html or call 1 (877) 507-5596 (9 am - 5 pm, Monday to Friday). To redeem savings, enter the discount code: CGABC in the "promotional code" box online or mention discount code if booking by phone.
Public Practice News
Professional Liability Insurance Deadline
Renewal of professional liability insurance is due on or before August 1. The Association's insurer (AON Reed Stenhouse) sent out renewal notices to practitioners in early June. Please note that an administration fee of $150 for failure to renew and maintain professional liability insurance by August 1 will be levied.

If professional liability insurance premiums remain unpaid 30 days after the due date, the member is without notice, deemed to have resigned from public practice unless written notice of extenuating circumstances is received within 30 days from the original due date.


You're Invited to the Annual Public Practice Meeting
Practitioners, you and your professional staff are invited to attend the Annual Public Practice Meeting held each year during the CGA-BC conference. This year's meeting takes place in Whistler on Thursday, September 16. You will have the opportunity to learn and discuss how to have a healthy dose of profitability while maintaining a balanced life. Topics include marketing, systems and technology, client relations/communications, billing/collections and retirement/succession. Questions, ideas and comments from participants are highly encouraged.

Obtain the conference registration brochure now.


Deadline for Public Practice Advisory Group Nominations is October 15
Members in Public Practice who wish to volunteer for the 2011 Public Practice Advisory Group (PPAG) are invited to submit their names for consideration. Eligibility is based on being a CGA-BC member engaged or employed in the practice of public accounting.

Criteria for selection are partially based on regional representation, as follows: three candidates from the Lower Mainland, one from Southern Vancouver Island, and two to represent the balance of the province.

The PPAG advises the Director of Public Practice on matters relating to the practice of public accounting and the policies regarding registration and operation of public accounting practices. In addition, this group recommends policies to ensure that the public interest is adequately protected.

Please contact Brigitte Ilk, CGA, for your Advisory Group application form. Submission deadline is October 15.


Next Tax & Financial Strategies Course Begins January 12, 2011
The next session of the Tax and Financial Strategies Program (T&FS) starts January 12, 2011. This real-life case study approach to tax and financial planning for owner-managed businesses addresses the life cycle of a business from incorporation through to business succession and includes dealing with a CRA audit and the death of a shareholder. Participants address topics that include income tax, HST and GST, the accounting treatment of advanced tax issues and correspondence with lawyers.

This 10-month program consists of semi-monthly teleconference discussions and five case study assignments. Participants obtain up to 40 verifiable CPD hours from the comfort of their own office or home. T&FS will be of interest to both new and established practitioners seeking to upgrade their skills and improve their practices in the area of taxation, by providing value-added services while minimizing the risk of professional liability.

The course takes an extended break during tax season.

Ken Eng, CGA, of Smithers, had this to say after completing the 2009 session:
"As a member new to public practice, I found the T&FS course an excellent introduction to the complicated and potentially costly tax issues for proprietorships, small businesses and estate planning. Deborah Graystone presented the course materials in a comfortable and knowledgeable manner. They also were a great resource during the program and now serve as reference guides."
Visit the website to obtain your copy of the course brochure and registration form. Contact Brigitte Ilk, CGA for a course outline or FAQ list.
Test Your EQ (Ethics Quotient)
CGA Bill Chu (not his real name) has a dilemma. His boss has asked him to prepare a request for a two-week increase in the firm's line of credit with the bank and to use as security a property that is already fully pledged as security for a loan from a local credit union.

When Bill resists, his boss the CFO tells him that Bill's predecessor-another CGA-used the tactic several times in the past.

How should Bill answer his boss? And what, if anything, should he do about his predecessor's actions? Match your ethical know-how with Michael McDonald, PhD, CGA (Hon.), UBC Professor in Applied Ethics. Send your response to edowning@cga-bc.org. The best replies will be published in the next issue of Outlook along with Professor McDonald's response.
BCBusiness Online
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Not that you have to be more like Diddy, says Brent Holliday. But be more American.
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Sign up for the BCBusiness eNewsletter.
Disclosing Your Foreign Assets

Graystone

By Deborah Graystone, CGA, with assistance from Perry Yuen, CA

This article is general in nature and should not be relied upon to replace specific professional advice.

Many taxpayers and practitioners should be aware of the Canadian foreign reporting requirements to avoid costly late filing penalty and interest charges. Subject to certain exceptions, Canadian residents are required under the Income Tax Act (Canada) (the "Act") for each taxation year to disclose and to file an information return in prescribed form for the following:
  • Form T1134B - shareholdings and/or investments of a controlled foreign affiliate;
  • Form T1134A - shareholdings and/or investments of a non-controlled foreign affiliate;
  • Form T1135 - investments in specified foreign property in excess of $100,000 adjusted cost base;
  • Form T1142 - distributions from and indebtedness to a non-resident trust; and
  • Form T1141 - transfers or loans of property to a non-resident trust.
Individuals who first become resident in Canada will be exempt from filing any of the above forms for that particular year. However, this exemption from the filing requirements is not available to returning former residents of Canada.

[Read More...]
Chapter PD and Events
August 21Okanagan Chapter - Half-Day Ethics Seminar Okanagan
September 29 Industrial Technology Advisor IRAP, Time and Place TBA – led by Michael Kerr RSVP Howard Karpes Prince George/Cariboo
Private Enterprise GAAP and New Audit Standards Two half-day seminars - led by Dan McNeill, Time and Place TBA Contact Howard Karpes Prince George/Cariboo
CGA-BC PD for August and September
August 25Black and White ... and Sometimes Grey: A Review of Business Ethics for CGAs - (AM) Vancouver
August 25Black and White ... and Sometimes Grey: A Review of Business Ethics for CGAs - (PM) Vancouver
August 25Black and White ... and Sometimes Grey: A Review of Business Ethics for CGAs - (AM) Richmond
August 25Black and White ... and Sometimes Grey: A Review of Business Ethics for CGAs - (PM) Richmond
September 9Costing and Decision-Making for Controllers Coquitlam
September 13Accounting with Intangible Assets Coquitlam
September 13Black and White ... and Sometimes Grey: A Review of Business Ethics for CGAs - (AM) Richmond
September 13Black and White ... and Sometimes Grey: A Review of Business Ethics for CGAs - (PM) Richmond

To see the rest of our September offerings, including those held during Conference 2010 in Whistler, visit September PD.