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Getting familiar with new private enterprise accounting standards
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Canadian Auditing Standards in Transition - New Resources
Canadian Standards in Transition - New Resources
including free webinar
CICA PROVIDES HELP TO ADDRESS EXPOSURE TO LIQUIDITY CRUNCH
Canada’s CAs are providing support to help directors deal with the current asset-backed commercial paper (ABCP) liquidity crunch.
Canadian businesses and investors have become increasingly concerned about their exposure to credit quality issues since problems with the U.S. sub-prime mortgage market surfaced this summer. As companies consider disclosure for quarterly and yearend reporting, management needs to provide investors with a good understanding of how this situation is affecting their companies.
To address these concerns, the CICA is recommending that directors focus on a series of key questions when reviewing financial statements and to satisfy themselves that management is effectively managing related company exposures and risks.
The CICA Director Alert walks directors through a series of questions they should ask to provide informed oversight and ensure appropriate disclosure to investors on this timely issue.
Click the following link to download the alert http://www.cica.ca/4/0/7/6/3/index1.shtml
CICA to issue new accounting framework for owner-manager businesses
The Canadian Institute of Chartered Accountants (CICA) is developing a simplified accounting framework designed for Canada’s 1.7 million owner-manager businesses.
“The new framework will be based on the existing CICA Handbook, but will be focused solely on supporting owner-manager businesses,” says Ron Salole, CICA Vice President of Standards.
This is a time of major change. Canada plans to adopt international standards for public companies by 2011. In addition, the Accounting Standards Board (AcSB) is currently considering changes to accounting rules for private companies with significant external users of their financial statements. While the AcSB is considering three options for changes to accounting for private companies with external users, it has not yet addressed the needs of owner-manager businesses without external users.
To support CAs in meeting the needs of this important sector, the CICA is developing a simplified accounting framework for owner-manager businesses without external users. The framework is based on accounting and financial reporting standards in the current CICA Handbook – Accounting, but is focused solely on transactions common to businesses that do not have significant external users of their financial information.
The new framework is designed to benefit both business owners and practicing CA’s. It has the added benefit of being readily understood by anyone familiar with current Canadian accounting standards.
The framework will be published for comment this fall to give owner-manager businesses and other interested parties an opportunity to review and respond. Once finalized in early 2008, the framework will be incorporated into the CICA Handbook.
Media Release
 Canada’s CAs get new logo
Canada’s CAs are getting a new look. The profession is exchanging its old green logo for a look that better reflects its current beliefs, attitudes and values. The new CA logo is more modern, colourful and dynamic – and reflects the confidence, leadership and value provided by the more than 71,000 CAs and 9,500 CA students in Canada and Bermuda.
The symbol is simple enough to allow viewers to immediately recognize it, and abstract enough to allow viewers to read meaning into it, the new logo enhances the profession’s brand by symbolizing the essence and value of CAs across Canada and Bermuda.
The new logo is part of the CA branding program. The program is aimed at shifting perception away from inaccurate stereotypes and increasing recognition of the value CAs provide to individuals, businesses, and our capital markets and economy. Using advertising, media and stakeholder relations, the profession is building awareness and understanding that CAs provide business insight, strategic thinking and leadership in addition to the financial expertise for which they are known.
CAs across Canada and Bermuda will also be able to use the new logo as part of the identity of their own practices. Complete information as to the policy for use and how the new logo may be downloaded and used by members will be posted on the provincial institute and CICA web sites in early June.
The logo conversion will take place over the summer. Both the new and old logos will actually co-exist for a short period. It is anticipated that the new symbol will be fully in place by next fall.
Financial Reporting by Private Enterprises
Those interested in shaping the future of financial reporting for private companies are being asked to provide feedback on three options for new private enterprise reporting standards. The proposals are published in a discussion paper and invitation to comment by the Accounting Standards Board of Canada (AcSB).
Changes to reporting by private companies are being considered as Canada transitions to international financial reporting standards (IFRS) for public companies. Currently private companies are subject to the same accounting principles as all other companies in Canada. As public company accounting standards change to IFRS, it provides an opportunity to separately consider the best model for private enterprises.
Discussion and feedback received during the comment period, which ends October 31, will inform the board’s decision and, in turn, impact the way financial reporting will be carried out by private companies in Canada. By getting involved in the process stakeholders can help chart the direction of private company financial reporting for many years to come.
You can access the discussion paper and invitation to comment from the AcSB web site at www.acsbcanada.org.
The CA Advantage 
The CA Advantage advertising campaign, one element of the new CA Branding Program, uses a combination of media – print, television, out-of-home (airports, in-flight and elevator screens) and Internet – to get the message out about the distinct advantages that Chartered Accountants bring to all organizations.
The www.caadvantage.ca website is now online and provides details on this innovative campaign. It features profiles of CAs from across Canada who exemplify the four key attributes of today’s CAs: financial expertise, strategic thinking, business insight and leadership.
Canada Revenue Agency
The Regina Tax Services Office has now relocated to the new Government of Canada Building (formerly the Galleria) from 1955 Smith St. CRA is now implementing a number of national service changes which are outlined in this document.
ICAS approves expansion of qualifying experience criteria
The Council of the Institute of Chartered Accountants of Saskatchewan, along with all Canada’s provincial institutes and the Ordre des comptables agréés du Québec, has approved in principle changes to the experience requirements for qualifying CAs. The changes will allow CA firms to create training positions in taxation, business advisory services, and other areas in addition to audit and assurance. They will also allow carefully selected corporations and government departments meeting the CA profession’s high standards to be recognized as Approved Training Offices. Canada and Bermuda are the only countries that do not currently recognize such training positions; these changes will position the profession favourably with our international counterparts. Following a consultation period through the fall, we will reflect these changes through appropriate bylaw changes.
The CA profession now offers the best training in public practice; expanded experience opportunities will offer the best training in the corporate and public sectors. The changes make it possible for CA firms and for select corporate and public sector organizations to create more entry level positions for CA candidates. In most parts of the country, Canadian universities produce more qualified students than CA firms can produce training positions under the current experience criteria. These changes will help create more opportunities for qualified university graduates to become CAs. They will maintain the excellence of all our admission and qualification standards, and will be implemented across Canada and Bermuda to ensure that the CA continues to be fully portable within Canada and Bermuda, and that all international criteria for mutual recognition agreements continue to be met.
The changes are expected to take place in Saskatchewan and most jurisdictions across Canada and Bermuda for candidates recruited after September 2007 for employment beginning after May 1, 2008, and in Quebec after required regulatory changes are approved.
Detailed information on the new standards and criteria will be available in September 2006.
Frequently Asked Questions
Fact Sheet
Saskatchewan's Chartered Accountants make recommendations to the Saskatchewan Business Tax Review Committee.
Media Release
Background Information
Strategic Crossroad for the CA Profession - The Strategic Plan for Canada's CAs
Below is the link to, Strategic Crossroads for the CA Profession, the strategic plan for Canada's Chartered Accountants.
http://www.cica.ca/index.cfm/ci_id/24775/la_id/1.htm
Saskatchewan’s Chartered Accountants present pre-budget submission to Saskatchewan Finance Minister - Need for business tax review reinforced.
Media Release
Chartered Accountants request formal business tax review to ensure province’s future competitiveness
Media Release
NOTICE for Canadian firms registering with the PCAOB as auditors of US registrants
The Public Company Accounting Oversight Board (PCAOB) has adopted a registration system that requires non-US public accounting firms that “wish to prepare or issue audit reports on US public companies, or to play a substantial role in the preparation or issuance of such reports” to register with the PCAOB. Further information can be found on the PCAOB web-site on www.pcaobus.org.
This registration process requires firms to disclose certain specified information to the PCAOB. Rule 2105 recognizes that non-US law might prohibit disclosure of all this information. Accordingly, the Rule provides that, to the extent non US law prohibits the disclosure, firms may withhold the information and instead submit
- a copy of the conflicting non US law, in English
- a legal opinion that submitting the information would cause the applicant to violate the conflicting non US law, and
- an explanation of the applicant’s efforts to seek consents or waivers to eliminate the conflict, if the withheld information could be provided to the PCAOB with a consent or waiver, and a representation that the applicant was unable to obtain such consents or waivers to eliminate the conflict.
The larger firms have obtained a legal opinion indicating that some of the registration requirements conflict with Canadian law. The opinion is limited to the laws and regulations of the province of Ontario and the laws and regulations of Canada in effect on November 7, 2003. The firms have kindly agreed to make a copy of the opinion available to other Canadian firms who will be registering with the PCAOB to assist their counsel and them in preparing their registration material.
If you would like to obtain a copy of this opinion please contact susan.gambles@cica.ca. The opinion will be provided in draft form as background material to assist you and your counsel in considering limitations on your ability to provide information which the PCAOB may require. It is not intended to be legal advice to you and none of the Canadian Institute of Chartered Accountants or The Institute of Chartered Accountants of Saskatchewan, Blake, Cassels & Graydon LLP (the firm which prepared the draft opinion) or any of the six largest accounting firms in the country (who arranged for the opinion) or any director, officer, partner, employee or agent of any of them shall have any liability to you or any other person for anything contained in, or omitted from, the draft opinion.
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