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ISSUE 50 • March 25, 2010
Your e-connection to CGA-BC
Check Us Out on Twitter



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 get face to face with the Association 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.

 
UBC 'Style in the City' (Vancouver)
April 1

BCIT CONNECT (Burnaby)
April 7

College of the Rockies Career Fair (Cranbrook)
April 14

Business in Vancouver: Influential Women in Business Awards (Vancouver)
April 14

VCC/ISS Career Fair (Vancouver)
April 15

CAVE HUGE Hiring Fair (Burnaby)
April 21


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 goal of greater 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.
President Impresses UBC BCom Students on Need for CGAs
UBCs President Address
Winston Lum, CGA, (right) shakes hands with UBC student at last week's
President's Address.


CGA-BC President John Pankratz, FCGA, told a crowd of 80 UBC Bachelor of Commerce students of the ongoing need for accountants in all B.C. industries, and the special advantages of complementing their degrees with a CGA designation.

The occasion was the annual UBC President's address, held March 15 at the University Golf Club. In addition to the students, several senior CGA-BC staff, CGAs from industry, and employers representing our Partners in Employment were on hand to network, share stories and answer the students' questions.

See a gallery of photos from the event.
Association Celebrates Life of Bill Caulfield
Bill Caulfield CGA-BC will host a celebration of life in honour of Bill Caulfield from 3 pm to 5 pm, Friday, March 26 in the BC Ballroom of the Fairmont Hotel Vancouver. If you are attending, please email your RSVP with the names of those in your party to memorial@cga-bc.org.

Where:

Fairmont Hotel Vancouver
900 West Georgia, Vancouver
Map and Directions
Two June 1 HST PD Seminars
T. Charlotte Hoggard, CFI, CGA If you couldn't attend any of our March HST seminars do not despair; we have two sessions set for June 1 in Coquitlam. The HST Implementation Q&A with Charlotte Hoggard, CGA, will cover the technical and administrative aspects of the transition to HST. Charlotte will discuss HST transitional dates, implementation and planning, transitional rules, and industry specific issues.

This afternoon workshop will be audience focused and attendees should have some basic understanding of the transitional rules.


Register here:BC HST Implementation Q & A Workshop


For organizations in the MUSH sector-municipalities, universities, schools, hospitals, certain not-for-profits and charities-the changes will be uniquely complex. Are your systems and invoicing ready for the change? Are you aware of the different rebates that apply to various MUSH Sector entities? Join sales tax expert Charlotte Hoggard for a clear explanation of the main issues the MUSH sector will face in transitioning to HST, as well as practical guidance on making the change.

Register here:HST Implementation for the MUSH Sector
Call for Small Business Awards Nominations
The Successful You CGA-BC is proud to be key sponsor of the seventh annual Successful You - Small Business Awards hosted by Small Business BC.

All CGA-BC members are invited to nominate a client or encourage a client to enter their business plan in one of the following four award categories:
  1. CGA-BC Business Concept Award – (business plan required)
  2. TELUS Business Growth Award – (business plan required)
  3. TD CANADA TRUST Business Champion Award – (nomination based)
  4. WorkSafeBC Company of the Year Award – (nomination based)
Deadline is March 31, 2010.

Last year's award winners came from all across British Columbia! Entry is free and all business plan submissions are completely confidential. This an amazing opportunity for CGAs to display ultimate client support, as well as an opportunity to win prestigious national, regional and local media exposure for you and your community!

Our goal is to showcase the talents of entrepreneurs (new or existing) from all across B.C. From Victoria to Atlin, BC, we're looking for submissions today! The award ceremony will be held in Vancouver this June (accommodation provided).

See the quick and easy business plan (or) nomination online submission form.
Introducing Two New Member Benefit Partners
Vancouver Golf League

VGLThe Vancouver Golf League (VGL) is very excited to be partnering with CGA-BC for the upcoming 2010 summer season. As a partner, all CGA-BC members will receive 10 per cent off league registration fees.

This fresh new league guarantees to introduce Metro Vancouver golfers to a fun and memorable golfing experience.

All golfers regardless of skill have dreamed about sinking that winning putt on the 18th hole. Unfortunately, very few will ever have the opportunity.

The VGL provides this opportunity by creating a competitive yet non-intimidating environment for all players. This friendly and relaxed atmosphere will allow golfers to enjoy the game on a whole new level. Whether you are new to the game or a scratch golfer, we have something for everyone.

Learn about the VGL events, courses and newsletter and register in the League at www.vglgolf.ca; or email info@vglgolf.ca.


Investors-Aid Co-operative of Canada

The Investors-Aid Co-operative is Canada’s only national consumer organization for investors.

Consumer reports, advisories, directories, and discounts help you find the best investment products, portfolios, and advisory options. Investors-Aid also provides independent Portfolio, Pension, and Group Plan Consultations at additional cost. Members have access to all the services and information needed to significantly reduce investment costs, improve safety, and to achieve fair returns.

CGAs receive a special 10 per cent discount (at payment) on the purchase of a Lifetime Membership or the Lifetime Membership with Guide and Workbook. The coupon code to receive the discount is CGA-BC.
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 being provided. This listing includes a link to the registration form.
T1 Registration Reminder and New Registration Requirements
If you are a CGA preparing individual T1 tax returns with or without schedules and charge a fee for this service, you are required to register this limited practice with the Association. Registration packages are available on the CGA-BC website, in the public practice registration area.

Note that new requirements came into effect during 2009 for practices limited to providing T1 preparation services. The following are the entry requirements for members intending to apply for a "Limited Registration - T1" practice registration:

a) Prerequisites:

A member who provides T1 preparation services only will be exempted from all full practice registration requirements, with the exception of the following prerequisites:
  • membership in CGA-BC;
  • payment of all applicable fees in advance and;
  • purchase of professional liability insurance.
b) Post-registration requirements:

Completion of the Tax 1 Home Study assignments or the equivalent (exemptions may apply).

If you require further information, contact Karen Fiorini, CGA, at (604) 730-6231 or toll free at 1 (800) 565-1211 ext 231.
New Accounting Standards Available for Private Enterprises
Private enterprises now have accounting standards that have been developed specifically for them. They can benefit by early adoption or by waiting until 2011. Alternatively, private enterprises can choose to adopt International Financial Reporting Standards (IFRSs). This article provides information about the key changes in the new standards for private enterprises and how to make the transition to these new standards easy.

[Read more...]
Lights Out for 60 Minutes
Earth Hour The Green Team here at CGA-BC would like to invite all our members and students as well as their families and coworkers to join us as we turn out the lights for Earth Hour—one hour from 8:30 pm to 9:30 pm, Saturday, March 27, 2010. Earth Hour is the World Wildlife Fund's way of promoting energy savings and lowering our carbon footprint.


At the CGA-BC office we will:
  • Turn out non-essential lighting in our building
  • Invite employees' families and members to join us
  • Register the Association's commitment on www.earthhour.org.
Our commitment isn't just for one hour, it's about making long-term changes to the way we use resources both at home and at the workplace. We can share how we are showing leadership by putting good environmental practices into effect at home and at work.

Five Earth Hour Messages
  1. We can solve 3/4 of climate change by changing the energy we use.
    First step is cutting down our use. Do those lights really have to be on? Can the computers be turned off at night? Think before you switch on.


  2. 10 million Canadians care about leadership on climate change.
    Every person who participates in Earth Hour is sending a clear and inspiring message to our leaders to take further action needed to help our planet.


  3. We're in the hot seat this summer.
    Canada is hosting the G8 and G20 Summits in Huntsville and Toronto in June, and climate change is on the agenda. Let's show the world what we are capable of.


  4. Wildlife's best hope is avoiding a two degrees Celsius rise in temperature.
    Global warming is already threatening our coral reefs, the base of ocean life. If we can limit the warming, we can stop one-third of species from risking extinction.


  5. WWF wants to help you make ever hour Earth Hour.
    There's a big growing community online of people wanting to do more. Contact them at http://community.wwf.ca
Download the WWF Earth Hour banner for your own newsletter.
Olympics Boost Retail Spending by Almost 50%
BIV Online March 5, 2010

Canadians were in a spending mood during the 2010 Winter Olympic Games, according to Moneris Solutions, Canada's largest payment card processor.

Retail spending rose 48 per cent in Vancouver and Whistler for the 17-day period of the Games, compared with the value of transactions in the same period last year.

Souvenir sales rose 373 per cent during the Games, while bars and pubs saw a 130 per cent increase in transactions. The number of clothing-related transactions nearly doubled during the games with consumers.

Canadians accounted for 78.4 per cent of total spending, while U.S. visitors accounted for more than 9 per cent. Chinese visitors spent on average $423 per transaction, while Russians spent $236 per transaction.

Canadians were clearly in a spending mood, except during the men's gold-medal hockey game. Moneris reported a 41 per cent drop in spending compared to the same timeslot during the previous five days of the Olympics.
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Public Practice News
T1 Self-review Request Being Sent to Your Clients

Canada Revenue Agency (CRA) will be conducting a letter writing campaign that may include your clients. One of two types of letters may be received:
  1. Information will be provided about eligibility criteria for certain deductions claimed on recent income tax returns
  2. Similar information may be provided as above in addition to notification of the possibility that your client's income tax returns may be selected for audit.
Your clients are being asked to self-review their claims related to rental income and expenses, employment expenses and business or commission income and expenses. If warranted, clients may amend their income tax returns by completing an adjustment request and/or by making a voluntary disclosure in cases where deductions were claimed in error or inaccurate information was provided.

Requests for adjustments can be made online by accessing My Account using the change my return option or by mail with form T1-ADJ, T1 Adjustment Request, available from the CRA at www.cra-arc.gc.ca/forms.

Should you or your clients have questions regarding the letter received or need assistance in making any changes to previously filed or current tax returns, please contact CRA's general enquiries line at 1 (800) 959-8281.


Fees and Insurance Deadlines

Public Practice registration fees are due on or before July 1, 2010. Renewal of professional liability insurance is due on or before August 1, 2010. Invoices for the Public Practice registration fee will be mailed on May 1, 2010 and the Association's insurer (AON Reed Stenhouse) will send you a renewal notice in early June 2010. An administration fee of $150 will be levied for public practice fees unpaid by July 1. A separate administration fee of $150 for failure to renew and maintain professional liability insurance by August 1 will be levied.

If public practice registration fees and/or 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.

Note that member dues are also payable on or before July 1 each year, after which a $150 administration fee applies. In accordance with Bylaw B114 (a), if annual dues remain unpaid after July 31, the member is without notice deemed to have resigned from membership unless the Board has accepted a written notice of extenuating circumstances. Members who have resigned are automatically deregistered from public practice as a Certified General Accountant.


Not-for-Profit Organizations (NPOs)

The AcSB has issued the Exposure Draft "Accounting Standards for Not-for-Profit Organizations" to obtain comments on its proposal to incorporate accounting standards for NPOs into Part III of the Handbook. Comments must be received by July 15, 2010. Part III would apply to NPOs opting to use this section of the Handbook rather than choosing to use the IFRS found in Part I.

See the January 13, 2010 AcSB Decision Summary for the proposed composition of Part III. Existing standards for NPOs in Part V of the Handbook will remain in effect until the standards in Part III become mandatory.
Value of Controlling, Non-Participating Shares
of a Private Company at Death

Graystone

By Deborah Graystone, CGA

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

In recent years I have seen a significant increase in CRA challenges concerning the fair market value of assets reported under the deemed disposition rules on the T1 Final of deceased taxpayers. These challenges can be difficult and expensive to resolve as the onus is on the taxpayer to disprove CRA’s values and business valuation can be as much an art as a science.

One hot topic where CRA has been seeking to gain ground is in the value of controlling, non-participating shares, often called “thin voting shares.” Such shares are typically created where parents effect an estate freeze in favour of their children who take over the operations of the business. Retention of voting control is a common feature of most estate plans, and in the usual circumstances the parents wish to retain voting control while passing the future growth in the business to their children. In the typical estate freeze of a Canadian-controlled private corporation owned by Mom and Dad, the parents receive typical freeze preferred shares (which are non-voting and non-participating) and voting, non-participating common shares to allow them to maintain voting control of the company. The children would be issued non-voting, fully participating common shares. The question then arises as to what value is attributed to the voting shares which have little or no participation in the underlying equity of the company and yet effectively control the company?

[Read More...]
Province Cool to Idea of February Stat Holiday
By Frank Luba, The Province

Interest in remembering the fervour of the 2010 Winter Olympics with a statutory holiday in February continues to grow — but not with the provincial government.

Vancouver interior designer Kate Holmes put her plan for a Glowing Hearts Day up Thursday on www.gopetition.com and by late Monday had more than 4,000 supporters hoping to get the third Monday of February off every year.

Labor Minister Murray Coell, whose ministry deals with statutory holidays, is apparently not one of those backing the plan.

He was unavailable for comment Monday but a ministry source said "there is no interest in a February statutory holiday and the reason for that is the cost implication."

The Labour Ministry estimates a day off would cost $270 million in lost productivity.

The B.C. Chamber of Commerce opposed the February stat in 2006 and president John Winter said Monday his organization would have to look at the data again before taking a position.

But Winter said he liked the idea of a legacy from the Games that wasn't a skating oval or a hockey rink.

"I think the idea is quite compelling," he said.

Holmes wanted the February day off to commemorate "the swell of national pride" that came from the Games.

Her feelings were echoed by comments left by petition backers like Thomas Guillemaud of Richmond:

"What better way to break up the February blahs than with a day of rest to remember the excitement and thrills of the 2010 Olympics, the performance of the athletes, as well as the unification of the nation," wrote Guillemaud.

The petition will be sent to Premier Gordon Campbell. It can be found online at www.gopetition.com by searching "Glowing Hearts."
     

Chapter PD
Apr 10 Richmond/South Delta Chapter - Professional Development Seminar - Dealing with Employee Fraud Richmond
Apr 17 Tri-Cities/Ridge Meadows Chapter - IT Update Coquitlam
May 15 Tri-Cities/Ridge Meadows Chapter - Applied Ethics for CGAs Coquitlam
CGA-BC PD for April and May
April 13Black and White ... and Sometimes Grey: A Review of Business Ethics for CGAs Vancouver
April 13Black and White ... and Sometimes Grey: A Review of Business Ethics for CGAs Vancouver
April 16Excel III: Advanced (Hands-On) Vancouver
April 22 - 24Essentials of Controllership (formerly The Controllers Program) Victoria
May 4Accounting for NPOs Kelowna
May 4Black and White ... and Sometimes Grey: A Review of Business Ethics for CGAs (am) Kelowna
May 4Black and White ... and Sometimes Grey: A Review of Business Ethics for CGAs (pm) Kelowna
May 5 - 6Practical Implementation of IFRS Kelowna
May 6GAAP/GAAS Update Private Enterprise Reporting Richmond
May 7BC GST/PST and HST Harmonization Kelowna
May 7Black and White ... and Sometimes Grey: A Review of Business Ethics for CGAs Vancouver
May 7Black and White ... and Sometimes Grey: A Review of Business Ethics for CGAs Vancouver
May 7Independent Verification of Income Kelowna
May 12Accounting for NPOs Prince George
May 12Public Practice Update Prince George
May 13 - 14Review and Compilation Engagements Prince George
May 14Black and White ... and Sometimes Grey: A Review of Business Ethics for CGAs Prince George
May 14Black and White ... and Sometimes Grey: A Review of Business Ethics for CGAs (pm) Kamloops
May 17Dealing With Clients and CRA - Dos and Don'ts for the Public Practitioner Coquitlam
May 17Public Practice Succession - Will You Be Ready? Coquitlam
May 17Statutory Interpretation of the Income Tax Act Coquitlam
May 18Future Income Tax, Taxes Payable Method and Differential Reporting Coquitlam
May 18The Essence of Professionalism: Ethics, Rules and Standards for New CGAs Coquitlam
May 26Public Practice Update Victoria
May 27Charities: the Law and CRA Victoria
May 27High Octane Charitable Gifting: How Donors, Charities and CGAs Cope with This Rapidly Growing Industry Victoria
May 27 - 28Review and Compilation Engagements Victoria
May 28BC GST/PST and HST Harmonization Victoria
May 28Black and White ... and Sometimes Grey: A Review of Business Ethics for CGAs Victoria
May 28Independent Verification of Income Victoria