If you are not an ICAA member, registered PAF or PSP, please click here to create an account. Forgot your password?
Advanced Search Filters
Dear Alberta CA:
Since May 2011, ICAA Council has been actively involved in discussions involving unification of the accounting profession and the introduction of the Canadian CPA designation. In these discussions, Council has diligently explored the opportunities, risks, and feasibility of a merger here in Alberta. As with all Council deliberations, protection of the public has been our foremost consideration. At the same time, serving Alberta CAs and respecting their views is also critically important. The ICAA has decided to withdraw from participation in the unification discussions with CMAs and CGAs, at both the provincial and national levels. This approach differs from the current or proposed plan that is being discussed by other Provincial Institutes. Council has compelling reasons for this decision to withdraw. First, Council wishes to respect the will of the Alberta CAs whom it serves. Feedback from Alberta CAs, through both formal polling and informal consultation, shows that there remain too many unresolved questions, and a lack of perceived benefits, for Council to have a mandate from the membership to move forward with the merger concept as described. In addition, it became apparent that the level of member support that would be needed to achieve the necessary legislative changes likely would not be obtained. Second, during the merger discussions the ICAA identified critical elements that Council believes must be harmonized across Canada if the merger were to proceed. These critical elements include governance, interprovincial mobility of members and “tagging” protocol. We are of the opinion that the harmonization of the critical elements could not be achieved within the timeframe set out for the merger project. Withdrawing from negotiations on the current merger project does not mean that Council did not see a significant amount of merit in the concept. Further, it does not mean that Council is choosing to stick with the status quo when it comes to responding to the evolving business environment—provincially, nationally and globally—in which we work. Notwithstanding the ICAA withdrawal, we are hopeful that the CMAs and CGAs of Alberta will be willing to pursue opportunities for productive cooperative initiatives in areas where we share common ground. For many years, and certainly throughout merger discussions, the representatives of those two designations have worked with the ICAA in a genuine spirit of trust and a commitment to excellence. We therefore believe that there is still much that can be achieved. Examples of such cooperation include the possibility of shared initiatives in the areas of member education and member services. Council will continue to monitor developments across Canada in order to be able to respond appropriately to any significant changes in the environment. In other provinces, CAs likely will be considering various forms of merger proposals. If a merger proceeds in a large number of provinces, Council will need to re-evaluate its position, in the interests of the Alberta CA membership. Regardless of how these processes unfold, we are committed to working closely with our provincial and national partners to advance the profession and serve members as efficiently as possible. Finally, I want to emphasize on behalf of Council that the input, advice and suggestions we received from Alberta CAs—whether they supported or opposed the merger project—has been exceptionally valuable and instructive through the course of our deliberations. We thank all Alberta CAs who took the time to pass their thoughts to us. You can share your further thoughts and perspectives by emailing feedback@icaa.ab.ca. In particular, we would be interested in hearing from CAs about whether they would like the ICAA to host a town hall forum in their community to discuss this decision further. If sufficient interest is expressed, the ICAA will consider holding a series of town halls on the matter. Yours sincerely, D. Blair Nixon QC, FCA President
On January 17, the Canadian Institute of Chartered Accountants (CICA) released a national unification framework. The unification framework provides the general tenets of a potential merger of the CA, CMA, and CGA bodies, and addresses some of the concerns brought forth by CAs across Canada during the consultation period. In particular, ICAA Council feels the proposed certification process, which seeks to ensure the pre-certification education standards of the CA profession are maintained, will be of interest to Alberta CAs. Here in Alberta, discussions around the proposed merger continue at the provincial level among ICAA, CMA Alberta and CGA Alberta. Any detailed provincial merger proposal, if one can be agreed to, will adhere to the national framework. The timeline for completion of a provincial document remains spring of 2012, and any such proposal would be subject to a vote by Alberta CAs. Your perspective on this important issue remains vital. Your thoughts can be submitted via email to feedback@icaa.ab.ca. D. Blair Nixon QC, FCA President
For more information:
The following message was emailed to all Alberta CAs on December 19, 2011.
As 2011 draws to a close, it is an appropriate time, on behalf of the ICAA Council, to provide an Alberta update in respect of the CA/CMA/CGA unification discussions (the “Proposed Merger”). The Proposed Merger has been one of the primary issues with which Council has dealt during the 2011 calendar year, and no doubt the most complex. Council has spent considerable time and effort to fully understand the opportunities and challenges which are facing the profession, and how a potential unification would impact the environment in which we all work. Council understands that there is not a consensus amongst Alberta CAs on the concept of the Proposed Merger. However, the conversation is being held in all jurisdictions and Council believes it has a responsibility to stay involved to advocate on your behalf wherever and whenever discussions like this take place. Looking Back The Proposed Merger process started in May 2011. At that time it was a two-party discussion between the CA and CMA designations, both nationally and provincially. Those discussions were predicated on the agreement of eight overarching principles, which are as follows. 1. Continued use of existing designations. 2. Evolution to a new single designation. 3. Retention but no expansion of rights. 4. Development of a new high-quality certification program. 5. Merged operations and governance. 6. Focus on the new CPA brand. 7. Enhancement of post-qualification specialties. 8. New uniform regulation and licensing. To gather important feedback and hear the perspectives of Alberta CAs concerning the Proposed Merger, a consultation process was undertaken. This process included a series of town hall events which were held throughout the province. It also included national and provincial polling of members’ views, and the solicitation of comments through a special ICAA email address and, nationally, through a dedicated telephone number and website. Your collective feedback has played an important role and aided immensely in Council’s deliberations. We thank all of you who have taken the time to ensure your voices are heard. In October 2011, CGA Alberta joined the Proposed Merger discussion. The CGA Alberta contingent joined the ongoing discussions in Alberta based on agreement with the eight principles noted above. The CGAs in many other provinces have also joined the discussion within their respective jurisdictions, as did the national CGA body. At approximately that same time, it was determined that any formal merger proposal would have two components: a national framework and a detailed provincial merger plan. This two-prong approach is currently being contemplated because the Proposed Merger is largely being coordinated nationally, but the accounting profession in Canada is regulated provincially. As a consequence of the independent provincial and territorial regulatory regimes, each jurisdiction would require its own formal merger proposal in order to address its own particular issues. Current Status While Proposed Merger discussions are ongoing, the ICAA Council has not yet taken a position on the concept. We acknowledge that some of you might be asking why Council has not taken a firm stand one way or the other on the Proposed Merger on behalf of its members. Council’s view on this question has been that it is important to continue discussions with our potential unification partners, and to make our best effort to negotiate a provincial proposal that ensures the public interest is protected, the priorities of the profession are fully considered, and the views and concerns of Alberta CAs are addressed and dealt with appropriately. Until the underlying terms and conditions are agreed to amongst the three negotiating parties within Alberta and a national framework is also agreed to, the ICAA Council is of the view that it would be premature to take a position on the merger. We take this cautious approach only because we want to know and understand the terms and conditions that will apply to the proposed unification entity insofar as the provisions thereof will impact our members for years to come. Provided those goals are achieved and a provincial proposal is written, Council will decide on the recommendation that it will make to the ICAA membership in respect of the Proposed Merger. Notwithstanding that Council has not yet made a determination on the matter, it believes it is essential that the ICAA remain involved in this process. Indeed, Council is of the view that it would be irresponsible not to be engaged in the process because that alternative course of action would leave Alberta CAs isolated from national developments and discussions that directly affect the profession. As part of the ongoing consultative process, it has become apparent that there are some issues that Alberta CAs want addressed. Council has undertaken to address these key issues as a prerequisite to submitting the Proposed Merger to a vote of Alberta members. These issues include the following. 1. A demonstration of how the standards of the CA profession will be protected, in the public interest. 2. An outline of the post-unification governance structure. 3. A determination of how the CA designation can be used during the 10-year transition phase and beyond. 4. A detailed understanding of how the education/certification program would be structured to ensure it meets the highest international standards, and fulfills market needs. 5. An outline of the benefits of unification to the CA profession and to individual CAs. 6. An analysis of the risks of proceeding with the Proposed Merger, compared to the risks of not proceeding. 7. The determination of how the profession, nationally and provincially, would deal with a patchwork of accounting designations across Canada in the event that unification proceeds on a three-way basis in some jurisdictions, on a two-way basis in other jurisdictions and perhaps not at all in other jurisdictions. Going Forward Council believes that its first responsibility, and primary accountability, is to protect the public interest. That said, it is also critically important for us to serve Alberta CAs and to respect their views. If and when major developments occur, Council will provide Alberta CAs with another opportunity to provide their input through a second round of substantive consultations. As well, from the outset, ICAA Council has maintained that there will be a vote of ICAA members on any merger proposal. We remain committed to that principle. We expect that a national unification framework is likely to be issued in early 2012. In the meantime, the ICAA Council and CEO will continue discussions with CMA Alberta and CGA Alberta in an ongoing effort to determine if the principles and details of a provincial proposal can be agreed to, subject always to an Alberta CA member vote. To better ensure that all issues are considered in the appropriate context, Council will evaluate any provincial proposal against the goals and priorities of its strategic plan. This evaluation will be done by Council in the context of its ongoing efforts to ensure that the provincial proposal meets the long-term vision of our profession in Alberta. While the national framework will be important in terms of outlining the details of some national goals and principles for unification (e.g., a rigorous certification program), it will be the provincial proposal which would include the specific details and mechanics of a merger. Further, it would be that provincial proposal on which the ICAA membership would be asked to vote. The timeline for completion of a provincial proposal is spring 2012. To conclude, we again thank the Alberta CA membership for the thoughtfulness they have brought to the Proposed Merger process over the last several months. Council will continue to provide ICAA members with information and progress updates as this process continues. In the meantime, we urge you to continue to provide us with your thoughts by contacting us via email at: feedback@icaa.ab.ca. In closing, we send best wishes from every Council member to each Alberta CA for a safe and joyous holiday. All the best in 2012. Yours sincerely, D. Blair Nixon QC, FCA President
Interested in hearing what your CA colleagues are saying about the proposed CA/CMA merger concept? You can now listen to the entire transcript of the ICAA’s townhall forum held with CAs and ICAA Council members in Edmonton on June 20. The forum opens with an overview of the merger concept, presented by Council President Blair Nixon. The remainder of the forum comprises comments and discussion from CAs from the floor. The transcript is unedited, except that names of individual speakers from the floor have been deleted. (Total length: approx. 1 hour 10 minutes.) To listen to the transcript, click here. (Note: To download the mp3 version of the transcript, right-click on the link and select "Save Target As..." The presentation can then be loaded onto an mp3 player.)
In May, Canada’s Chartered Accountants entered into discussions with Canada’s Certified Management Accountants to explore the merits and feasibility of uniting our respective national and provincial organizations. In October, Canada’s Certified General Accountants joined the discussions at the national level, in addition to several provinces—including Alberta.
To bring our organizations together, the creation of a new designation is being considered—the Chartered Professional Accountant or CPA—along with a new common qualification program. Combining the strengths and expertise of both organizations, the uniquely-Canadian CPA designation could be equally strong for financial and management accounting, and it could be expected to evolve into an internationally recognized business credential.
The organizations have learned from previous attempts to unite professional bodies. The concept being considered does not require either accounting organization to issue its designation to members of the other; nor would any member be required to give up their current designation. To be clear, a CA would still be a CA, a CMA would still be a CMA, and a CGA would still be a CGA.
The transition to using the CPA alone would be complex and an abrupt change would not be in the best interests of members or the public. The designations hold significant meaning across Canada and around the world, and it would take time to promote the CPA brand so that it fully represents the best of all three designations. As such, the initial concept includes a transition period of approximately 10 years, during which members would use the new CPA designation in conjunction with their existing CA, CMA, and CGA designations. After this transition period, the new CPA designation could be used on its own.
From May until mid-September, the ICAA and other involved organizations undertook an extensive consultation process with our membership. The consultation officially closed on September 16.
An interactive member engagement website, www.CPACanada.ca, still serves as the hub for information. In June, face-to-face dialogues took place via a series of town hall meetings held across the province. The audio version of the Edmonton townhall meeting can be found above.
If you would like to provide further feedback to the Institute of Chartered Accountants of Alberta, please email us at feedback@icaa.ab.ca. The ICAA will keep members and stakeholders advised throughout this exploratory process. At the conclusion of the consultation, the organizations will review all member and stakeholder feedback to inform the way forward. If discussions were to proceed, a concrete provincial unification proposal will be presented to the respective memberships in 2012 for further consideration.