Recognizing Excellence
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February/March 2010 Recognizing excellence On the Cover In this issue Meet the BC profession’s New: Accounting standards for private newest FCAs and Lifetime enterprises ready for early adoption Achievement Award The basics of alter ego trusts winners Treating the public with courtesy TROUBLE FINDING THAT PERFECT BALANCE? WE CAN HELP — WITH CICA WORK/LIFE TOOLS AND RESOURCES ONLINE A CA career is a challenging one, but your life goals and demands need and deserve so much of your time. How do you balance the two priorities? The CICA Work/Life website is a great place to start. With online tools, resources and specific information on work/life issues for CAs, the life balance you’re looking for may be just at your fingertips. Just go to www.cica.ca/worklife. WorkLife 2010.indd 1 1/19/2010 12:36:49 PM TROUBLE FINDING THAT contents On the Cover 4 Notes from the President PERFECT BALANCE? Celebrating ongoing excellence Want to get WE CAN HELP — WITH CICA WORK/LIFE 6 For the Profession TOOLS AND RESOURCES ONLINE New: Accounting Standards the word out? for Private Enterprises Advertise in Beyond Numbers! 24 Tax Traps & Tips The basics of alter ego trusts Here’s why: 26 PD News 90% of BC CAs surveyed read Winter PD Highlights Beyond Numbers 28 Plugged In Beyond Numbers goes out to News for and about members & students more than 9,000 members, Movers & shakers in the more than 1,800 students, profession and over 200 external Notice from Member Services: Have you given us your most stakeholders—including recent contact info? other institutes, associations, Event Profile: CA Social Networking Group hosts wine and professional organizations tasting In Memoriam: Derek R. Beyond Numbers has won 8 Lukin Johnston, FCA awards for both content Meet the New 34 Ethical Dilemmas and design, including FCAs Treating the public with Blue Wave Awards of Merit courtesy from the International Association of Business 18 Communications – BC Branch Lifetime Achievement Awards To place an ad in Three inspiring FCAs take Beyond Numbers, contact our home this year’s awards representatives at: for lifetime achievement Advertising in Print A CA career is a challenging one, but your life goals and Tel: 604-681-1811 demands need and deserve so much of your time. How do 710 – 938 Howe St. you balance the two priorities? Vancouver, BC V6Z 1N9 The CICA Work/Life website is a great place to start. With Fax: 604-681-0456 online tools, resources and specific information on work/life issues for CAs, the life balance you’re looking for may be just Email: at your fingertips. [email protected] Just go to www.cica.ca/worklife. 10% Cert no. SCS-COC-000648 Feb/Mar 2010 ica.bc.ca 3 WorkLife 2010.indd 1 1/19/2010 12:36:49 PM February/March 2010, No.485 Published eight times annually by the Institute of Chartered Accountants of British Columbia. Editor Celebrating ongoing Michelle McRae Design excellence Blindfolio Design 604-761-9212 Advertising Advertising In Print Phone: 604-681-1811 Fax: 604-681-0456 Senior Director of External Affairs Lesley MacGregor Institute Council Karen Keilty, FCA President Peter Norwood, FCA 1st Vice-President Lenard Boggio, FCA Notes from the President 2nd Vice-President Michael Macdonell, CA Treasurer In the January 2010 issue of Beyond Numbers, we celebrated the Jack Arnold, CA success of our latest UFE grads. These students represent the future for the CA Linda Lee Brougham, CA profession and, if their accomplishments to date are anything to go by, we can Kyman Chan, CA Karen Christiansen, CA expect to see great things from them in the coming years and decades. John Crawford, CA It is every bit as much a privilege to welcome 20 new FCAs into the Gordon Holloway, FCA Fellowship of the BC Institute. Each and every one of the new Fellows David Hughes Anthony Mayer, CA demonstrate the immense contribution made by chartered accountants to the Al McNair province, to the country as a whole, and internationally. They are inspirational Sheila Nelson, CA role models for young CAs today, and a testament to the great strength of our John Sims, FCA James Topham, CA profession as we move forward in 2010. Kenneth Tung As for our Lifetime Achievement Award winners—as you might expect, they Praveen Vohora, CA are an awe-inspiring group. Through decades of commitment and Chief Executive Officer accomplishment, W. Randolph Clerihue, FCA, John R. V. Palmer, FCA, and Richard Rees, FCA David R. Sinclair, FCA, have demonstrated what can be achieved by one person in one career. These members, and the others who have been awarded Beyond Numbers is printed in British Columbia and mailed eight times annually to more than 9,000 this highest distinction from the Institute in previous years, are true leaders chartered accountants and more than 1,800 CA students that deserve our respect and accolades. It is an honour to have them as part of in public practice, industry, education, and government service throughout BC, Canada, and other countries. our profession, and an honour to know that the CA designation helped them achieve their great heights. Beyond Numbers’ editorial and business offices are located at: Suite 500, One Bentall Centre, 505 Burrard St., Box 22 Vancouver, BC V7X 1M4 –Karen Keilty, FCA Phone: 604-681-3264 Toll-free in BC: 1-800-663-2677 Fax: 604-681-1523 Internet: www.ica.bc.ca Opinions expressed are not necessarily endorsed by the Institute. Beyond Numbers supports the CA profession in BC by sharing news from the Institute and news about members, by sharing viewpoints on issues of specific interest to members, and by promoting member involvement in Institute activities. Publications Mail Agreement No: 40062742 4 ica.bc.ca Feb/Mar 2010 Become an ICABC leader! Call for Council nominations Effective leadership is vital to the CA profession. It is with that awareness in mind that the BC Council sets the goals for the ICABC each year, determining what the Institute should be doing, for which constituencies, at what cost, and with what expectations. Are you, or someone you know, interested in becoming a leader among CAs? As a Council member, you’ll focus on the strategic issues faced by our membership and the profession as a whole— issues such as education and professional development. You’ll also get the chance to expand your skills and your network. What you’ll gain: • A chance to help advance your profession • Access to up-to-date information about the challenges faced by CAs • The opportunity to exchange ideas and perspectives with other leaders in the profession • Exposure to a wealth of professional and personal contacts What you’ll need: • A demonstrated commitment to the accounting profession • A strong background in community and volunteer work • Leadership experience If you or anyone you know is interested in running for election to Council, you’ll find the Council Nomination Form on our website at www.ica.bc.ca under Member Centre>Forms>Leadership and choose the Council Nomination Form. Feb/Mar 2010 ica.bc.ca 5 For the Profession Accounting • Take the new ICABC PD course entitled, “Transitioning to Private GAAP” (additional sessions are continuously being added). This full-day seminar will provide a review of the new accounting Standards for Private standards for private enterprises, and compare them with the current GAAP standards contained in Enterprises Available the CICA Handbook. The seminar will also provide detailed guidance on the new standards, and help participants understand the impact of these standards on the accounting model and financial for Early Adopters statements of their organizations. For more information and to register, call the PD department at By Taj Haer, CA 604-681-3264. Director of Advisory Services Private enterprise standards herald new look for the Handbook With the addition of accounting standards for private enterprises, the CICA Handbook - Accounting has fter waiting for many years to see been reorganized to reflect the Accounting Standards Board’s strategy for adopting different sets of standards that relate to the specific standards for different categories of entities. Ainterests of private enterprises, we are Accordingly, the electronic Handbook has been divided into the following parts: pleased to announce that such standards are • Preface to the CICA Handbook - Accounting; now available for early adoption. You will • Part I – International Financial Reporting Standards (please see note below*); find the new accounting standards for private • Part II – Accounting Standards for Private Enterprises (available since December 2009); enterprises on the Knotia website as part of the • Part III – Accounting Standards for Not-for-Profit Organizations (availability TBA*); CICA Handbook - Accounting. • Part IV – Accounting Standards for Pension Plans (availability TBA*); and The effective date for these new standards is • Part V – A complete set of the existing Handbook contents. January 1, 2011. However, if you would like to adopt the standards immediately—for fiscal *Publicly accountable enterprises, not-for-profit organizations, and pension plans will continue to year ends of 2009—early adoption is permitted. follow the existing Handbook - Accounting (Part V) until these particular accounting standards have Please see “Information and resources” below, as been finalized and issued. Watch for further updates on standards for not-for-profit organizations and there are several tools available to help you pension plans. If you would like to review the 2009 IFRS, these standards are available through Knotia. familiarize yourself with the new standards prior to adoption. Handbook changes also reflect new auditing standards The CICA Handbook - Assurance has also been restructured to reflect the Auditing & Assurance Information and resources Standards Board’s adoption of international standards on auditing (ISAs) as “Canadian auditing • Read more about the key changes in the new standards” (CASs).