Celebrating UFE Success!

Transcription

January 2013
Celebrating UFE
Success!
On the Cover
In this issue
Meet the BC students who made
the 2012 National Honour Roll +
see CASB’s UFE results recap and
our list of successful candidates
Transitioning to CPA BC
Section 84.1 – potential pitfalls
Measuring risk and return
Enhancing auditor quality
Our future
Our success
Congratulations to our 38 successful 2012 UFE writers. The Uniform Evaluation requires focus, dedication and a deep
understanding of our business. The partners and staff would like to congratulate all of our writers, especially Erin Reimer
who placed on the National Honour Roll. Soon to be accredited as Chartered Accountants, our rising talents include:
Vancouver
Trish Albino
Ryan Beveridge
Aaron Brown
Caitlin Butler (née Devaney)
Jackson Chan
Tina Chen
Wayne Chulhyun Cho
Rajveer Clair
Genevieve Haack
Ning Han
Ekaterina Kozhevnikova
Christopher Kwan
Wilson Kwan
Jessica Lam
Pascal Lambert Paradis
Lewis Lo
Carrolyn Lok
Amber McFarland
Matt Miller
Michael Monachello
Heba Musa
Devin Ng
Richard-Dean Pradas
Kirsten Ringrose
Jocelynn Burns Rodrigues
Ashton Scordo
Abid Shivji
Trevor Shum
Jennifer Sissons
Farrukh Tanweer
Jenny Thiessen
Ghadeer Toma
Ian Bradley Gustof Wanke
Langley
Amrita Dayal
Dean Golbeck
Monica Reihal
Erin Reimer
Prince George
Jesse Chong
Congratulations to our
2012 UFE Writers!
Amanda Hazelton
Candace Surette
Virginia Szabo
Ivy Cao
Rebecca
Randall
Devon Huber
Monica Chau
The partners, principals and staff at MacKay LLP congratulate our
successful 2012 Uniform Evaluation Writers. We are proud of your
accomplishments and acknowledge all your hard work. You are all
an integral part of our team, and we look forward to your continued
professional growth and development at MacKay.
Chartered Accountants and Business Advisors
Kelowna Office - (250) 763-5021 | Vancouver Office - (604) 687-4511 | Whitehorse Office - (867) 667-7651
Celebrating 100% Success
for our 2012 UFE Writers!
Left to right: Gordon Verley, Kay YunQi Kuang, Jacob Safarik, Amanda Teixeira, Christopher Lee,
Sarah Ng, James Reid, Dora Sze
Just right for your career.
s mythe ra tc l i ffe . c om
Marine Building, 7th Floor 355 Burrard St.
I
Vancouver, BC V6C 2G8
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Tel: 604 687 1231
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Fax: 604 688 4675
contents
On the
the Cover
Cover
6Notes from the President
A new year—a lot to celebrate!
36 Tax Traps & Tips
Section 84.1 – the trap that
commonly trips
38Financial Facts &
Money Matters
10
On the Honour Roll
Meet the 13 BC students
who made the UFE
National Honour Roll!
Wealth management measuring return and risk
42 PD News
Winter PD highlights
44 Plugged In
News for and about members
8
Making the Transition
to CPA BC
A unification update
28
& students
Member announcements
FVCAA event recap
CA Social Networking Group
event recap
In Memoriam: Gordon Elliott,
FCA
An encore of success:
Four CAs recognized with
Diamond Jubilee Medal
58 For the Profession
Enhancing audit quality:
a project update
UFE Results Recap
+ the complete list of BC &
Yukon UFE passers
34
Managing Joint
Finances
PPC on how couples can
successfully manage joint
finances
FSC logo RRD
to place
Cover image: ©istockphoto.com/Stacey Newman
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January 2013, No. 508
Published eight times annually by the
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A new year—
a lot to celebrate!
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6
i ca .b c .c a Jan u a r y 2 0 13
Notes from the President
It’s hard to believe that a new year is upon us! There was a whirlwind
of activity in 2012, culminating in the historic signing of a merger agreement
with CMABC.
For the last year and a half, the BC Institute has played a leadership role at the
national level, ensuring that the interests of BC CAs were represented as
unification evolved. To do this, extra Council meetings and conference calls
were held, and extensive, detailed briefing materials were taken into
consideration. My fellow Council members have put in an extraordinary amount
of time to further this initiative, and I would like to thank them for their efforts.
By December 2012, work on transitioning our two organizations to CPA BC
was already underway (ICABC CEO Richard Rees, FCA, provides further details
about the next steps for the merger on page 8, along with a national update).
Over the coming year, we will continue to work with our partners at CMABC and
our partner CPA bodies across Canada to create a new profession—one that
continues to serve the public interest across all sectors of the economy with
integrity, sound ethical practices, advanced education, disciplined regulation,
and proven strategic management and financial expertise.
As we discuss the future of our profession, it’s more than fitting to welcome
the next generation of candidates to our ranks. BC had 409 successful writers
on the 2012 UFE, and I congratulate them all! Thirteen BC students made the
National Honour Roll, including Ivan Wong of Vancouver, who tied for the gold
medal in Western Canada. Profiles of our Honour Roll students, as well as a full
listing of successful writers begin on page 10. Congratulations again to all our
successful candidates—you have exciting futures ahead of you!
Congratulations also to the four BC CAs who received the Diamond Jubilee
Medal (profiled on pages 50-53)—that makes eight BC CA recipients thus far!
As noted above, it has been an interesting year for the ICABC. I look forward
with anticipation to 2013 as we venture into new and exciting territory,
reshaping the structural fundamentals of our profession on both the provincial
and national landscapes.
—Gord Holloway, FCA
J anuary 2 013 i ca.bc.ca
7
Making the Transition to CPA BC
By Richard Rees, FCA
The TSC has directed the Transitional Team to:
•Pursue the enactment of legislation to create
CPA BC;
•Establish the alignment of CPA BC and CPA
Canada;
•Proceed to implement the new CPA Education
Program starting in 2013;
•Align member services so that services are
available to all members of the two bodies as
quickly as possible;
•Support the development of a national regulatory framework;
•Support the development of national CPA
Branding and implement a branding program
in BC; and
•Develop an integrated operational and financial
plan for 2013/2014.
A
s discussed in our November/December 2012 cover story (page 6), the ICABC Council
made a historic decision in October 2012, signing an agreement with the CMABC Board to
pursue a merger and establish the Chartered Professional Accountant (CPA) designation in
BC. This agreement keeps our province aligned with our colleagues across Canada, as 80% of the
country’s professional accountants are now moving toward the CPA designation.
Nationally, CPA Canada will be established in January 2013. We anticipate increasing activity and
integration in the months ahead—most urgently to support the CPA certification program. Provincially, the ICABC and CMABC need to move quickly in order to stay in step with national developments
and represent our members’ interests in discussions with CPA Canada. We also need to begin the
process of merging the operations of our two organizations, and we need to be ready to offer and run
the CPA program in September 2013.
To that end, the two bodies established a Transitional Steering Committee (TSC) in October 2012.
The TSC, which will report to the ICABC Council and the CMABC Board, has equal representation
from the two bodies, and is made up of members of the respective executive committees. The TSC’s
first formal meeting was held on October 25, 2012, and I want to share some of the direction that was
set at that meeting now, as it outlines the process we will follow over the coming months as we work to
establish CPA BC.
In order to facilitate the merger transition, the TSC has asked me to lead the initiative. To provide
some background: I have served as the CEO of the ICABC since 1999, and have actively participated
in the CA profession at the national level for many years. This includes serving as a member and chair
(eight years) of the Council of Senior Executives, which is responsible for the management of the
profession; serving on the Professional Learning Committee; and serving on numerous other task
forces and initiatives. I also played a lead role in creating the CA School of Business. Moving forward,
I will be working closely with Vinetta Peek, CMA (Hon), CMA, the president and CEO of CMABC,
on the “Transitional Team,” along with the senior professional staff of both bodies. The Transitional
Team is currently in the process of developing a detailed Transition Plan, which will be brought forward for approval by both bodies for the next fiscal year.
8
i ca.bc .c a Ja n u a ry 2 0 13
The TSC has also begun developing governance
policies to define how it will function, including
how it will monitor and link to operations. And,
at the appropriate time, it will develop a process
to identify a CEO for CPA BC.
Along with ICABC President Gord Holloway,
FCA, and CMABC Chair Pat Kennedy, CMA,
FCMA, Vinetta and I met with the Minister of
Advanced Education regarding the necessary
legislative changes in November 2012. The minister was very interested to learn about these
developments within the profession. Currently,
we are working with officials in the ministry,
and are hopeful that formal legislative change
will happen as soon as is practicable.
Having worked on the unification initiative
since day one, I’m incredibly honoured and
excited to be leading the team that will shape the
future of the accounting profession in BC. We
will continue to keep you informed as things
progress and we begin the transition to CPA BC.
Up-to-date information on merger developments
will be posted regularly to the CPA Canada page
on our website (www.ica.bc.ca). We will also
release information on our blog (blog.ica.bc.ca)
and on our Twitter (@ICABC) and Facebook
accounts.
Richard Rees, FCA, is the CEO of the Institute of
Chartered Accountants of BC.
Unification Update: What’s happening
across Canada*
*Per information available up to December 14, 2012; includes Bermuda.
At the time of this writing, bodies representing more than 80% of professional
accountants in Canada are actively working to unite under the Chartered Professional
Accountant (CPA) designation. With 35,000 members in Quebec and 36,000
members in Ontario, CPA is already the largest accounting designation in Canada.
Ontario: The ICAO has issued CPA certificates to its 36,000 members and is working
to transition to CPA Ontario. CMA Ontario, with 25,000 members, has announced
that they support unification and will initiate efforts to join CPA Ontario once it has
been established.
Quebec: All three bodies are fully merged under CPA legislation.
Alberta: The CMA and CGA bodies have signed a Merger Agreement, and have
petitioned the government to change their legislation and establish CPA Alberta.
The ICAA has announced that it has chosen to resume discussions.
Saskatchewan: Member votes were held by the CA and CMA bodies in
Saskatchewan, and results indicated that 64.9% of CAs and 94% of CMAs support the
merger. These two bodies will work to establish the CPA profession in Saskatchewan.
Manitoba: The CA and CMA bodies have signed a Merger Agreement, and have
petitioned the government to change their legislation and establish CPA Manitoba.
Yukon: The CA and CMA bodies are in discussions and expect to issue a Merger
Proposal early in 2013.
Northwest Territories: All three accounting bodies are in discussions.
Maritimes: Member votes were held by the CA and CMA bodies in Newfoundland and
Labrador, Nova Scotia, and PEI, with positive results in all three provinces.
Bermuda: At a special general meeting held in December 2012, the members of the
Bermuda Institute committed to joining CPA Canada and to seeking the change of
their designation to Chartered Professional Accountant.
Certification Education: The development of the CPA certification program is
underway, and the initial students will commence module 1 in September 2013.
Extensive information on the program and the transition is provided on the
CPACanada and CPAOne websites.
J anuary 20 1 3 i ca.bc.ca
9
On the Cover
eet BC’s UFE Honour Roll
M
Students for 2012!
By Michelle McRae, Editor
I
t is with great pleasure that we introduce the 13 BC students who made the National Honour Roll for the 2012 UFE: Ivan
Wong (tied for the gold medal in Western Canada), Daniel Birks, Michelle Chan, Korinna Fehrmann, Cary Frank, Ryan
Gill, Darwin Ho, Erin Reimer, Michael (Mick) Stobart, Miiro Sueyoshi, Chen Wei, Trevor Wheatley, and Jonathan Wong.
Ivan Wong
Gold Medal, Western Canada*
Ivan is an articling student with KPMG in
Vancouver, focusing on the financial institutions and real estate industries. He was born and
raised in Vancouver, and attended Simon Fraser
University, where he earned a degree in business
administration (first class honours) in June
2012. Having also completed SFU’s Co-op
Program, Ivan was able to write the UFE just
three months after graduating from university.
Why the CA
“While working at a small CA firm during my
first co-op term, I became particularly intrigued
by the CA designation because of the wide
variety of career opportunities a CA has access
to, and the vast range of transferrable skills
the CA program allows you to develop—both
technical and soft skills. I also appreciate the fact
that you are always working on new things, and
the learning opportunities never end.”
10
i ca. b c .c a Ja n u ar y 2 0 13
Looking ahead
“I hope to continue learning, pursuing challenges, and contributing in a meaningful way to
society.”
The UFE experience
“The UFE met my expectations in terms of the
high level of difficulty/challenge, as well as the
feeling you get on the way out: the feeling that
you might have failed. Making the Honour Roll
was obviously a huge surprise—never mind tying
for a gold medal!”
everything, but be confident that by the end of the
summer you will know enough to pass the exam.
Make sure you take time off on the evenings and
weekends so that you are fresh and energized for
the next day of studying!”
Outside of work
“I enjoy playing board games, eating at new
restaurants, volunteering in the community, and
spending time with friends and family.”
*Ivan tied for the gold medal in Western Canada
with Paula Overguard of the Alberta Institute.
Gratitude
“I owe my success to the unending love and support of my parents, my sisters, and my girlfriend
Jamillia, which kept me going—even on bad
days. There were also many friends and relatives
who helped keep me motivated and confident,
and who enabled me to keep my mind off the
UFE on evenings and weekends.
“I am also extremely grateful for the amazing
UFE preparation program at KPMG Vancouver.
Particularly, I would like to thank my mentors
at the firm—Cameron Kuhn, CA, and Scott
Yamaguchi, CA—for their support, feedback,
and invaluable advice. And I could not have
done it without my study buddies at KPMG,
Jojo Lai and Khalil Chagani. They challenged
and motivated me throughout the summer, and
made it fun as well.”
psychology and a minor in economics. Today,
he’s articling with PricewaterhouseCoopers in
Vancouver.
Why the CA
“I’ve always had a passion for business,” Dan
says. “I just didn’t know how I was going to
apply it. Then in my third year at UBC, after
much consultation with my dad, I decided that
pursuing a CA designation would be my best
‘foot in the door’ to a career in business.”
Looking ahead
“I’m not certain what the future has in store, but
I intend to keep all doors open as I progress
through my career.”
The UFE experience
“The weekend prior to the exam, I contracted a
staph infection in my writing arm. That, combined with the associated fever and ER visits for
my daily dose of antibiotics each day of the exam
made for an interesting experience—one that
was certainly not expected! On the bright side, it
forced me to take my mind off the exam.”
Advice for future writers
“Come up with a study plan and then stick with
Daniel Birks
it. Continue to trust in the process even when
you aren’t seeing results, because progress comes
Dan was born and raised in Vancouver. He gradslowly. Turn every mistake into a learning
uated from the DAP program at the University
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Gratitude
“First, and most importantly, I would like to
thank my wife Megan. She took a dedicated
approach to ensuring that my evenings and
weekends were stress-free leading up to the UFE,
and helped me to stay mentally and physically
focused on the exam throughout the process.
My outcome could very well have been different
if it wasn’t for her support.
“I would also like to thank my study partner at
PwC, Faizaan Lalani, for the routine high-fives
prior to each study case; my brothers for ensuring
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that I didn’t go too many days without quality family time; my mentor Dave Milligan, CA [PwC] and
my friend Dave Colleran, CA [Ernst & Young] for their valuable advice along the way; PwC for the
incredible support provided throughout the process; and my dad for advising me to pursue my CA
designation in the first place.”
“Show up every day for studying as if you are showing up for the UFE—then when you show up for
the UFE, it’s as if you’re just showing up for another day of studying.”
Outside of work
“I love to exercise—it’s my Zen. After work, I’ll go for a walk by the ocean with my wife, hit the gym,
or go for a good run with one of my two brothers. (All of the above followed by a good beer or two of
course.)”
Michelle Chan
Michelle was born and raised in Vancouver. She
holds a commerce degree with honours in
accounting and international business from the
University of British Columbia, and is a graduate
of the MPAcc program at the University of
Saskatchewan. Michelle is currently articling
with Ernst & Young in Vancouver.
Why the CA
“A good friend of mine, Timothy Wong, invited
me to attend recruiting events during my final
year at UBC. Before, I had been dabbling in
science and arts, not knowing what to do. Then
I got accepted into EY. I owe a whole lot to Tim
for where I am now.”
Looking ahead
“So many people have blessed me in my life, so
I wish to learn to give as generously as I have
received. I would like whatever I do to be Godcentred and people-focused.”
Left to right: Jennifer Joh, Kristin Gray, Marcus Vettoretti, Brenda Liu, Justin Yan, Michelle Yeung
Please join us in congratulating our
successful 2012 UFE writers!
DMCL is proud of your academic achievements!
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12
The UFE experience
“I was worried about my progress throughout
the summer, as I was constantly miles behind
with debriefing. After it was all over, I told my
best friend, ‘If I fail this exam, I don’t think I
could write it again, because I feel like I did the
best I could.’”
Gratitude
“My UFE results surpassed my wildest expectations, but regardless of how I might have done, I
thank my family and friends for their love, and
anyone who has ever shown me kindness and
forgiven my shortcomings. My deepest thanks
go to Amanda Chang, who has been my closest
friend since childhood; Beverly Ho, Darya
© 2012 Ernst & Young LLP. All Rights Reserved.
You can always recognize a
high performer. We’re proud
to recognize these ones.
Congratulations to our successful UFE
writers in Vancouver! You make us proud.
ey.com/ca
Front row L-R: Katherine Tam, Qing Chen, Michelle Chan, Jason Y. Huang, Miiro Sueyoshi, Jennifer Ong,
Sandy Sunyung Choi; 2nd row: Andrea Smid, Vicki Chen, Vivian Chen, Lisa K. Stewart, Daniel Barwin,
Rocky Shun Ho; 3rd row: Kathryn Ratelich, Muzi Guo, Heather Welsh, Julie Tung, Bo Zhang, Brian Grant,
Linsen (Forest) Li, Cody Serpa; 4th row: Russell Henderson, Jim Salusbury, Byron Chard, Matt (Cheong Pang) Yeung;
Not pictured: Neal Beauchamp, Monica Chen, Rachel Chu, Darwin Ho, Connie Pan, Mandeep Sandhu, Joe Valdes
13
Smirnow [MPAcc], Geri Fernet, and Jenna Zee,
for their friendship; Lori Llanto, my sister and
brother, and my grandparents for their unconditional love; and my parents, for being the best
parents one could ask for and always being there
for me. Most importantly, I am grateful to Jesus,
my Saviour and God, for all He has done for me
in my life.
“I also thank my study group—Darwin Ho
[EY], Matt Yeung [EY], and Devin Ng [Deloitte];
my mentors at EY—Anne Lee, CA, Janelle Ng,
CA, and Mike Bellett, CA; and my markers for
their invaluable help and encouragement.”
“My advice is simply to try your best and to keep
things in perspective. In the end, the UFE is
only an exam; your character and direction in
life are what matter most.”
Outside of work
“I enjoy music, playing piano duets, and going
on picnics with my best friend. I also like to
reflect on things I’ve read, particularly books on
history, literature, and poetry. Most of all, I love
spending time with my family, including my
beloved canine companion, Casey.”
Why the CA
“I was drawn to the CA designation because
it opens up career opportunities. Even while
articling, I’ve had the opportunity to work for a
client on an industry secondment, and to work
at our firm’s office in New York City during the
last two winters.”
The UFE experience
“At the beginning of the summer, I had just
returned from a four-month secondment at
PwC New York, working on US tax issues that
would be of no help to me on the UFE. Add to
that the fact that I had never done an audit (and
likely never will), and I was half-convinced that
I would have to study 24/7 for eight weeks just
to pass the exam!
“In reality, I found that the UFE was surprisingly painless. It’s not about knowing
everything—it’s about knowing how to approach
the question and how to identify the problems—and if working in tax has taught me
anything, it’s how to break down a complicated
problem into smaller, easily manageable pieces.”
Gratitude
“The whole experience would have been a lot
more difficult if not for the incredible people
who supported me. I can’t thank my study
buddy at PwC, Chen Wei, enough for putting
up with me all summer long. My mentor at
PwC, Daphne Huang, CA [2010 UFE Honour
Roll], was always available for advice or a meal—
often both. My friends and family, particularly
my brother Markus and my roommate Diz—
kept my mind off the exam in the evenings and
weekends.”
“Getting to the point of writing the UFE means
you’ve passed all the exams leading up to this
exam. You’ve been writing exams since first
grade. The UFE is just one more...”
Korinna Fehrmann
Born and raised in Hong Kong, Korinna moved
to Vancouver in 1998, at the age of 12. She is a
double graduate of the University of British
Columbia, having earned a bachelor of science
in microbiology and immunology in 2007,
and a diploma in accounting in 2010. Today
she’s articling with PricewaterhouseCoopers
in Vancouver, training in the firm’s Tax CA
program.
14
Outside of work
“I enjoy going to concerts, rock climbing,
cooking, and travel. During the UFE, I made
sure to get outside every day—sometimes just
eating lunch out on the sunny deck with my
roommate, or climbing at the bouldering gym.
I was also lucky enough to have some of
my favourite bands tour Vancouver during the
summer and catch some wicked shows.”
Cary Frank
Cary grew up in White Rock, and moved to
Vancouver Island after high school to attend the
University of Victoria. He graduated in 2009
with a commerce degree, and is now articling
with KPMG’s Burnaby office, where he works
in the firm’s enterprise group.
Why the CA
“I initially studied sciences—specifically biology,
chemistry, and anatomical sciences—with the
plan to become a physiotherapist. I was always
passionate about health and the human body. I
took some commerce and accounting classes as
electives and really enjoyed them, so I made the
transition shortly thereafter.
“I love being challenged, and after finishing
my degree, I was ready for another one. After
speaking with other CAs and learning about the
future opportunities the designation leads to, I was
convinced this was the path I wanted to pursue.”
Looking ahead
“Honestly, I have no idea what the future holds,
but I plan to weigh every opportunity that
presents itself. As long as I am passionate about
my career, I will be living the dream.”
The UFE experience
“By the time you finally get to the UFE, you’ve
written so many cases that you almost know
what to expect. The key is to control your
emotions and stick to your game plan.”
Gratitude
“I definitely want to thank my study partner at
KPMG, Doron Neuman, for his great attitude
during the summer. Additionally, my mentors—
Michael Volentier, CA [KPMG] and Courtney
www.pwc.com/ca
More than just tax
At PwC, we’re proud of our innovative and
industry-first CA tax-only training program.
And we’re especially proud of our successful UFE writers.
Congratulations to our “graduates!”
Left to right
Back row Simran Bhatti, George Hayes, Spencer Kent, Edwin Xu, Sean Burke
Front row Julia Dion, Carmen Dong, Korinna Fehrmann, Chen Wei, Colleen Chong
Absent Alexis (Lexi) Tattrie
• 100% flow-through/success
• unique, tailored experience in 12 different specialty tax groups
• numerous secondment opportunities with clients and other PwC offices
© 2012 PricewaterhouseCoopers LLP, an Ontario limited liability partnership. All rights reserved. 3156-04 1212
15
Why the CA
“My accounting courses at UBC were my strongest
subjects, so that naturally led me towards pursuing an accounting designation. I chose the CA
designation specifically because of the versatility
that it offers.”
Fishbook, CA [Grant Thornton]—were instrumental to my success, providing constant
support and direction. Also, my roommate
and friend, Chris Greenwood, was incredibly
understanding given the stack of textbooks and
notes scattered around the apartment.
“Most importantly, I’d like to thank my
parents, Jill and Joe Frank, for being there from
the beginning and helping me get through the
whole process.”
“Stay active and healthy. Start a new hobby or
reignite an old one. Go out with friends and stay
connected with your social circle. However,
when you’re studying, study hard, and stay
focused. It’s all about maintaining a balanced
lifestyle during the summer and not getting
overburdened by the UFE process.”
Outside of work
“My form of relaxation is doing something active.
I love going to the gym, playing sports—
basically anything that’s physically challenging. I
also enjoy travelling, and most recently went to
Spain and Portugal on my own for the unique
experience.”
16
i ca.b c .c a J a n u a r y 2 0 13
The UFE experience
“Based on my studying and what prior UFE
writers had told me, I knew writing the UFE
would be a big challenge. However, even with
this in mind, the three days were much more
challenging than I had expected. Not only was
the actual exam tough, but going home and
trying to keep it off my mind at night was hard
as well. At the end of the third day, I had no idea
whether I had passed or failed, but I knew I had
given it 100%, and I was glad it was over!”
Ryan Gill
Born in Duncan and raised in Abbotsford,
Ryan moved to Vancouver after high school
to attend the Sauder School of Business at UBC.
He earned a commerce degree with honours
(accounting specialization) in 2009, and is currently articling with D&H Group in Vancouver.
Gratitude
“I’d like to thank my family for their neverending support during my UFE summer. I’d
also like to thank everyone at D&H Group for
their support. I found that many of my experiences at the firm helped me with both CASB
and the UFE.
“In addition, I’d like to thank my UFE study
partner at PwC, Jagdeep Tatla. She kept me
Eryn
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Matthew
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At MNP,
At MNP,
we know
we know
our our
business
business
solutions
solutions
are as
arestrong
as strong
as the
as the
team
team
behind
behind
them.
them.
That’s
That’s
whywhy
we we
are committed
are committed
to having
to having
the the
rightright
professionals
professionals
in place
in place
to meet
to meet
youryour
business
business
needs.
needs.
Congratulations
Congratulations
to our
to our
latest
latest
team
team
members
members
on successfully
on successfully
completing
completing
the the
Canadian
Canadian
Institute
Institute
of Chartered
of Chartered
Accountants’
Accountants’
2012
2012
Uniform
Uniform
Evaluation
Evaluation
(UFE).
(UFE).
MNP
MNP
proudly
proudly
celebrates
celebrates
youryour
achievement
achievement
in obtaining
in obtaining
youryour
CA designation.
CA designation.
As one
As one
of the
of the
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chartered
accountancy
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at 1.877.766.9735
at 1.877.766.9735
or [email protected].
or [email protected].
J anuary 2013 i ca.bc.ca
17
Why the CA
“I was heavily influenced by the variety of work,
the endless learning opportunities, and the fact
that many CAs apply their accounting and business knowledge base towards general business
operations and management.
“I am extremely grateful to Nancy Hudson,
CA [EY], and Michelle Fordham, a co-op
coordinator at SFU, for seeing the potential in
me during the recruiting process as a co-op
student. They jump-started my career.”
determined whenever I had a bad case or lost
focus towards the end of the day. I’d also like to
thank my colleagues at D&H—Raman Roycombough, CA [now with Pacific West Systems
Supply Ltd.]; Ken Cho, CA; Simon Chen, CA;
and Trevor Nakanishi, CA—for their support
during my UFE summer and while articling.
Lastly, I’d like to thank my UFE mentor at the
firm, Michelle Young, CA, for her support
during the summer leading up to the UFE.”
“Believe in your summer study plan and stick to
it. Make sure you balance studying with evening
activities such as exercise, reading, hanging out
with friends, or pretty much anything else that
keeps your mind off the exam. As for the actual
exam, the UFE is as much a test of nerves as it is
a test of competencies, so try to stay calm and
believe in your preparation.”
Outside of work
“I enjoy playing and watching sports—particularly football and hockey—working out,
investing, and reading.”
dap_beyondnumbers_aug28_may.eps 1 8/28/2012
Looking ahead
“While articling, I’ve had the opportunity to
work in several major cities and experience a
wide variety of industries. I’d like to continue
broadening my knowledge base, which would
allow me to grow professionally and personally.”
Darwin Ho
Darwin is an articling student with Ernst & Young
in Vancouver. Born in Hong Kong, he immigrated to Canada at the age of five, and spent
the remainder of his formative years in Burnaby.
At Simon Fraser University, he earned a degree
in business administration with a concentration
in accounting—completing his degree require1:54:17
PM in 2010, and SFU’s Co-Op Program in 2011.
ments
The UFE experience
“Preparing and writing the UFE was a nervewracking experience. However, thanks to my
support system, I was able to stay motivated
towards the end goal.”
Gratitude
“I first want to thank my study partners—
Michelle Chan [EY], Devin Ng [Deloitte], and
Matt Yeung [EY]. We kept each other motivated
on a daily basis by having fun and continuously
strategizing about how to address our individual
weaknesses and use our strengths. I am extremely
grateful for their companionship and support,
and for their strong technical knowledge base,
experience, and case-writing skills!
“I’d also like to thank my amazing girlfriend,
Shirley Fong, for her endless words of encouragement, her support, and the fun we shared,
which helped keep my mind off the UFE and
resulted in an unforgettable summer.
“Finally, I’d like to thank my mentor at Ernst
& Young, Crystal Kim [CASB student]; my
senior manager at the firm, Alyson Rimmer, CA;
my quasi-study buddies at EY—Rachel Chu and
Muzi Guo; my friend Ivy Cao [CASB student];
and my friends and family for their continual
support, positive attitudes, and advice throughout
the UFE process.”
“Formulate and follow an approach that best
suits your studying habits in order to absorb key
information at your own pace while avoiding
burning out. Also, find a motivating factor that
can give you that final push during some of the
relatively more discouraging days.”
18
Outside of work
“I enjoy snowboarding, biking, rollerblading,
golfing, hiking, working out at the gym, travelling,
watching movies, playing video games, and
reading.”
Erin Reimer
“Thank you to my study partner at Deloitte,
Dean Golbeck, for helping me stay calm and
making sure I remembered to laugh and see the
humour in any situation. You were my anchor
this summer, and I really appreciate all of your
help and feedback.
“To my mentor, Dana McFarlane, CA
[Heli-One]: Thank you for always being there,
for inspiring me to do the best I could, and—
most of all—for believing in me.
“Thank you to my husband Scott and my
sister Megan for minimizing my stress during
the summer by planning fun activities for us to
do, for supporting me, and for understanding
how important this exam was. Thank you also
to my parents Leslie and Ernie Froese for
teaching me a strong work ethic and for instilling
the belief that you can succeed at anything if you
work hard enough for it.”
Outside of work
“I do a lot of running, yoga, and walking my
dog. I also enjoy reading, cooking and baking,
and travelling to tropical destinations. Right
after marks are released, I’m heading to the
Dominican Republic for two weeks of relaxation
in the sun!”
Profiles continued
“Have faith in the preparation process—Mod 6,
a good UFE prep program, and a good study
buddy will set you up for success. Follow the
schedule you set for yourself and work hard!
Also, take time to relax, to keep your stress levels
in check.”
Born and raised in Terrace, Erin moved to the
Lower Mainland in 2004 to attend Douglas
College, where she studied accounting and business management. She graduated from Douglas
in June 2010 with a bachelor of business administration (applied accounting), and is now an
articling student with Deloitte in Langley.
Why the CA
“If you had asked me when I was in high school
what I wanted to do with my life, I never in a
million years would have said: ‘I want to be an
accountant.’ It wasn’t until my first year of
college, when I won a national scholarship, that
my career path completely changed.”
Looking ahead
“Right now, I feel like the sky is the limit! That
said, I am enjoying the world of audit at the
moment, and I want to continue in that path for
the time being.”
The UFE experience
“Going into the UFE, I felt really well prepared
and like I was ready to take it on. While writing
the exam, I felt like my preparation allowed me
to focus and stay calm, but the exam was really
tough—harder than the practice exams I’d
written all summer.”
TRIUMPH!
The partners and staff of
Saturna Group are pleased to
congratulate Valerie Chen for
her successful completion of
the 2012 UFE!
Successfully completing such a grueling process requires self-confidence, perseverance,
dedication, and a vision of success. Valerie has exemplified all of these qualities,
in addition to many others, and we are extremely proud to recognize her accomplishment.
At Saturna Group, we strongly support our team members in the attainment of their
career goals. We believe that the investment in the development of well-rounded
professionals is the greatest asset we can provide to our industry and to our clients. It is
our vision of success.
1066 West Hastings Street, Suite 1250
Vancouver, BC V6E 3X1
Telephone 604.630.5100
Fax 1.888.870.1720
Gratitude
19
Why the CA
“I wanted to get exposure to different businesses
while continuing my education. Working at a
public accounting firm also exposes you to an
incredible network of co-workers and clients.”
Looking ahead
“I’d like to continue my career in public practice.”
The UFE experience
“You spend an entire summer preparing for one
exam, so there weren’t many surprises during
the exam days. The biggest surprise was how fun
the exam was to write; cases were interesting,
and I enjoyed writing it.”
Michael (Mick) Stobart
Mick was born and raised in North Vancouver.
He is a graduate of the University of British
Columbia, having earned a commerce degree
with a double option in accounting and resource
management in 2009. Today he’s articling with
KPMG in Vancouver.
Gratitude
“My friends, family, and girlfriend were incredibly
supportive throughout this process and, most
importantly, made the summer a memorable
one. It was an amazing summer, and I have
them to thank for that.
“I would like to thank my study partner at
KPMG, Bri Eshleman, for being an incredibly
honest and hard marker, and for putting up with
me for the summer. Without her support—and
baking—I would not have made it through this
process. I would also like to thank my mentor at
KPMG, Myra Ayre, CA, and my friends at the
firm Tory Hislop [CASB student] and Selina
Wong, CA, for their support throughout.
Special thanks to Tory for giving me a foam
sword to take with me into the UFE. How can
you not be confident with a foam sword?”
“The most important aspect of my studying was
maintaining a balance and enjoying the process.
Socialize, travel on weekends, exercise, and do
whatever you need to do to enjoy the summer
and give your mind a break from studying. I feel
that my non-study hours were as important, if
not more so, than the time I spent studying.
“Also, you will face setbacks during the summer. You will perform poorly on several practice
cases. Don’t let this get you down. How you
perform on practice cases shouldn’t impact what
you’re taking away from each day of studying.”
Outside of work
“I enjoy all things outdoors: hiking, biking,
playing Frisbee, and skiing. I’m also a beer
enthusiast, and have brewed several batches of
beer. I enjoy travel and recently went on a trip
through Europe that included an eight-day,
750-km bike ride around the Netherlands.”
When you add it
up, we have 73 reasons
to be very proud
Our partners and staff are proud to recognize
In British Columbia, KPMG’s talented team of accredited Chartered
the hard work and dedication required by
Accountants will include:
each of our team members to achieve their
exceptional results on the 2012 Uniform
Jason Anderson
Grace Elgaard
Emily Kerklaan
Doron Neuman
Carol Tong
Evaluation. Special congratulations to Cary
Natalia Asadova
Carol Erikson
Matt Kington
Vu Nguyen
Phyllis Tsui
Frank, Jonathan Wong, Mick Stobart,
Guy Brooks
Bri Eshleman
Jojo Lai
Jay Oh
Brittany Tucker
Michael Burggraaf
Cary Frank
Andy Leung
Jessica Paik
Josephine Wan
and Ivan Wong, who have earned a
Chris Calder
Kristal Fung
William Lin
Marie Parayno
Stephanie Weston
place on the National Honour Roll. In
Heather Cameron
Stevie Fung
Danny Loo
Pam Parmar
Steve White
addition, Ivan Wong is a Western
Khalil Chagani
Gary Gill
Domenic Luongo
Agnes Piotrowski
Ivan Wong
Canada Gold Medal recipient.
Arthur Chan
Jen Gill
Jamie Macdonald
Marleah Plesko
Jonathan Wong
© 2012 KPMG LLP, a Canadian limited liability partnership and
a member firm of the KPMG network of independent member
firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. All rights reserved.
The KPMG name, logo and “cutting through complexity” are
registered trademarks or trademarks of KPMG International.
20
Trini Chan
Karina Chiu
Meghan Choo
Mike Clark
Jonathan Cole
Felicia De La Paz
Elena Elder
Jodi Godwin
Carly Macey
Roberto Guercio
Lisa Marzocco
Hanna Hatherley
Jennifer Masson
Carl Haugland
Ashley Mayr
Shooka Heirat
Jillian McKitrick
Tessa Jackson
Bradley Meadows
Luis Kam
Bradley Muzzin
James Proctor
Chris S. Reynolds
Kevin Riley
Kyle Robinson
Kirsten Short
Mick Stobart
Andrew Szeto
Jenny Wu
Jialin Wu
James Yang
Tiffany Yuen
Raymond Zhang
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21
support! Also, a big thank you to my family,
friends, and boyfriend for putting up with my
constant whining and complaining during the
UFE summer. It really helped to be able to vent!
“Finally, I want to single out my study group
at EY—Sandy Choi and Katherine Tam—who
have been with me since Mod 1. I can’t imagine
experiencing CASB or the UFE without my
‘Team CASB’!”
“Although studying is by far the most important
step during the summer, take the opportunity to
try something new—something you didn’t have
time to try when you were working and studying.
But always remember to keep your typing
fingers safe!”
Miiro Sueyoshi
Miiro was born and raised in Richmond. She
attended the University of British Columbia,
and earned a commerce degree with a specialization in accounting and a minor in film studies in
May 2010. Currently she’s articling with Ernst &
Young in Vancouver.
Outside of work
“I love to sing! It’s both fun and relaxing for me.
I also enjoy performing in musicals (which I’m
hoping to get back into in the near future),
getting together with friends, and watching and
catching up on movies.”
Why the CA
“My first exposure to the CA profession was a
recruiting session with Ernst & Young. Once I
got to know the people in this profession and
learned more about the CA, I realized that these
two letters after your name can open so many
doors for you in the future.”
Looking ahead
“I have always had a passion for the arts—from
film to theatre. As such, I’m hoping my future
will give me the opportunity to combine my
education in accounting with my love for film.”
The UFE experience
“After a whole summer of studying, I thought I
would feel ready to take the exam, but no
amount of studying could have prepared me for
the nerves! By the end, I had come to terms with
the fact that I would never feel prepared, but
that I had tried the best I could to cover all my
bases.”
Gratitude
“The support I received from the EY community has helped me greatly throughout my CASB
and UFE experience. Everyone was willing to
provide me with some advice or words of encouragement, which helped boost my confidence
whenever I felt overwhelmed. Thank you to my
UFE mentors for being there when I needed
22
Chen Wei
Chen was born in Beijing, China, and moved to
Canada at age 12. She majored in commerce
and minored in mathematics at the University
of British Columbia, and graduated with a bachelor of commerce in 2010. Today, she’s articling
with PricewaterhouseCoopers in Vancouver,
training in the firm’s Tax CA program.
Why the CA
“My tax professor at UBC, Professor Tran
Chung, inspired me to explore a career in tax.
And after meeting the people from the PwC tax
group and hearing about their experiences at the
firm, I was convinced that the Tax CA program
was the right path for me. During my two-andhalf years at the firm, I’ve had the opportunity to
work at a client’s site as a member of its tax team,
travel to Toronto for a short-term engagement,
and assist on tax matters for international
restructuring projects.”
Looking ahead
“I want to be doing meaningful work that makes
me excited to wake up each morning.”
The UFE experience
“Accepting the fact that there would always be
something I didn’t know on any given case
really helped. After months of studying, I was
able to remain calm for the actual UFE and treat
it as just another exam.”
Gratitude
“First and foremost, I’d like to thank my awesome
study buddy at PwC, Korinna Fehrmann, for
keeping me on track, giving me great advice,
supporting me through the process, and putting
up with me for the entire summer.
“I also want to thank my two great UFE
mentors at PwC: Kiran Aujla, CA, calmed my
nerves by taking me out for coffee and meals
when I felt flustered; and Sharon M. Yuen, CA,
urged me to study whenever I contemplated
skipping a few cases and wanted to play video
games instead.
“I am also very grateful to all my close friends
and my colleagues at PwC, who supported me
through the months leading up the UFE and
helped mark my cases. Last, but certainly not
least, I want to thank my mother, who continues
to give me her unconditional love and encouragement (and took up all the household chores)!”
“Do whatever you need to do to make yourself
feel comfortable and confident for the exam.
Believe in yourself! The statistics are on your
side.”
Outside of work
“As mentioned above, I enjoy playing video
games. I also like to go hiking and rowing, and
watching videos on TED Talks.”
More on page 24
Success
is written on
our faces
Congratulations to our 57 successful writers of the 2012
Uniform Evaluation for Chartered Accountants in BC
Special congratulations to Daniel Birks, Korinna Fehrmann, Chen Wei, and Trevor Wheatley,
who achieved a place on the National Honour Roll!
Saam Bandari
Simran Bhatti
Daniel Birks
Nicole Bisaro
Grant Bond
Eric Brewis
Sean Burke
Alexander Cant
Adam Carver
David Chapman
Michelle Cheung
Colleen Chong
Donna Chung
Nolan Clark
Paul Coffey
Sean Crosby
Julia Dion
Carmen Dong
Victor Drohomirecki
Kate Duholke
Anastasia Facchin
Sarah Fahrmann
Lisa Feather
Korinna Fehrmann
Luke (Nathan) Geiger
Warren Handford
George Hayes
Michael Heidstra
Dana Hu
Michael Kelly
Spencer Kent
Faizaan Lalani
Jason Low
Ryan Marcinew
Melanie Matthews
Tanner McNabb
Patrick McNary
Karina Mills
Trevor Mills
Rick Narang
Jennifer Ng
Justina Pap
Sarah Plamondon
Brett Rutherford
Erica Siracusa
Anthony Sousa
Steven Sun
Milton Tang
Jagdeep Tatla
Alexis Tattrie
Natalie Walter
Chen Wei
Trevor Wheatley
Peter Winters
Christine Wong
Edwin Xu
Carson Yeung
www.pwc.com/ca
© 2012 PricewaterhouseCoopers LLP, an Ontario limited liability partnership. All rights reserved. 3156-03 1212
23
coach at the firm, Debbie Carstens, CA, for
encouraging me to maintain a balanced life.”
However, I have considered teaching or becoming involved with the CA education process.”
“Use your studying as a stress management
exercise—know when to call it quits. Invest as
vigorously in your other passions as you do in
your studies, as balance is the key.”
The UFE experience
“Aside from dealing with some nerves beforehand, writing the actual UFE was very similar to
my expectations. By the end of the summer,
you’ve written so many cases that you almost go
into auto-pilot and just let your training take
over.”
Outside of work
“I enjoy golf, travelling, cycling, movies, and
good food.”
Trevor Wheatley
Trevor was born and raised in North Vancouver.
He attended the Sauder School of Business at
UBC, and graduated with a degree in commerce
(accounting concentration) in 2010. Today, he
is articling with PricewaterhouseCoopers in
Vancouver, working in the firm’s mining group.
Why the CA
“The CA designation provides a core skill set
that will make me more effective in any business
role. The experience provided through articling
in various industries is unparalleled—the travel
in particular (I write to you from my hotel room
in Ulaanbaatar, Mongolia).”
Looking ahead
“I’d like to complete a secondment to a different
market and continue to focus on my learning
and professional development. Another goal is
to be involved in improving transparency and
accountability—whether through integrated reporting or work with the public sector.”
The UFE experience
“Having gone through the motions of writing
cases so many times, the memory of the actual
UFE does not stand out as notably different.
However, the feeling of freedom that welled up
during the last multi was certainly special.”
Gratitude
“I’d like to thank my study buddy at PwC,
Matt Leon, for being good company over the
summer, my family (Sally and Russell), and my
lovely girlfriend Alycia for keeping me sane
throughout this whole process. I’d also like to
thank my mentor at PwC, Mackenzie Thibeault,
CA, for providing proactive coaching, and my
24
Jonathan Wong
Jon was born and raised in Vancouver. He
completed a double option in accounting and
real estate at the Sauder School of Business
at UBC, and graduated with a bachelor of
commerce (honours) in 2010. Today, he’s
articling with KPMG in Vancouver, working in
the firm’s financial institutions, real estate, and
services practice.
Why the CA
“I decided to pursue the CA designation after
hearing a lot of great things about the profession
from my dad and uncle, who are both CAs. I
started at KPMG as a summer student back in
2009 and returned full-time after completing
university. I work with amazing people every
day, and I’ve really loved all the opportunities
and challenges that I’ve been given over the
years.”
Looking ahead
“Having been focused on writing and passing
the UFE for the last few years, I really haven’t
given my long-term career much thought.
Gratitude
“I’d like to thank my family, including my
fiancée Lily, for all their love and support over
the years. The education process has been a long
one, and they have always been there for me, no
matter what.
“I also thank my study partners at KPMG,
Andrew Szeto and Phyllis Tsui. We had a great
time over the summer—we not only enhanced
our UFE knowledge, but also our skills at table
tennis, which we played a lot during breaks!
“I would also like to thank my UFE mentor at
KPMG, Fletcher Fitzgibbon, CA, for being
there for me during every step of this process. I
really appreciate all the time he took to mark my
cases—almost always on short notice—and the
time and effort he put into providing constructive
feedback.
“Last, but not least, I’m grateful to KPMG
for committing so many resources to the UFE
writers and providing an amazing UFE prep
program. This support gave me the confidence I
needed to get through the UFE process.”
“I definitely recommend taking on a project or
picking up a new hobby to stay balanced during
the summer.”
Outside of work
“I enjoy working on cars. I worked on restoring
a 1951 Studebaker with my grandfather several
years ago, and my current project is a 1989
Mustang GT.”
Congrats once again to BC’s
13 Honour Roll students for a
job well done!
Photography
All students were photographed by Kent Kallberg
of Kent Kallberg Studios in Vancouver, with the
exception of Trevor Wheatley.
We knew they
were keepers.
We’re thrilled to announce that 14 of the candidates who successfully completed the 2012
Uniform Evaluation (UFE) for chartered accountancy are from Grant Thornton LLP offices
in British Columbia. Passing the UFE is challenging—to say the least—and it takes a great
deal of intelligence, perseverance and hard work. On behalf of our clients and colleagues,
we congratulate these bright talents on becoming members of the Institute of Chartered
Accountants of BC. We couldn’t be more proud they’re part of our Grant Thornton family.
Kelowna
Janelle Luini
Mia Bent
Jason Solnik
langley
Russell Lawrence
Kelowna
200-1633 Ellis Street
T +1 250 712 6800
langley
Suite 320
8700 - 200th Street
T +1 604 455 2600
ViCToria
Sarah Huang
Wesley Wong
VanCouVer
Evan Beaupre
Zaneta Benakova
Kelso Cartwright
Justin Coubarakis
Victoria
3rd Floor
888 Fort Street
T +1 250 383 4191
Lindsey Gabrysh
Mark Gunther
Matthew Katzsch
Stephen Simon
Vancouver
Suite 1600, Grant Thornton Place
333 Seymour Street
T +1 604 687 2711
www.grantThornton.ca
audit • Tax • advisory
© Grant Thornton LLP. A Canadian Member of Grant Thornton International Ltd
25
BDO CONGRATULATES OUR
SUCCESSFUL UFE WRITERS
We are pleased to recognize our Alberta and British Columbia employees who
passed the 2012 Uniform Evaluation (UFE). This is a significant step towards
becoming a Chartered Accountant in Canada. We salute you all for your hard work
and determination, and look forward to your further achievements as valuable
members of our team.
BDO is one of the leading accounting and advisory firms in Canada providing
value-added assurance, accounting, taxation and advisory services to a broad
range of clients. With a national team of more than 3,000 partners and
professionals, we build strong relationships with businesses and communities
from Vancouver to St. John’s.
Assurance | Accounting | Taxation | Advisory Services
www.bdo.ca
BDO Canada LLP, a Canadian limited liability partnership, is a member of BDO International Limited, a UK company
limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the
brand name for the BDO network and for each of the BDO Member Firms.
26
Joshua Allen
Alicia Brown
Teri Butt
Reed Campbell
Kimberly Cheng
Michael Docherty Sonya Douangmany
Mackenzie Duke
Karolina Dziedzic
Adam Erickson
Chris Fairhead
Samantha Fan
Isabelle Forsstrom Amar Gill
Kelsey Goldsack
Stuart Grant
Cyrus Guy
Adil Hosenbocus
Navin Jagasia
Soonhee Ko
Paul Lee
Fraser McGlenen Chantel McNaughton Danushki Mendis
Lindsay D. Nelson Benz Ng
Ayumi Orgar
Judy Parran
Helen (Ruohua) Quan Todd Rathie
Lauren Skeith
Sonia Stapor
Steve Vaartstra
Sheila Westwell
Peter Wu
Dan Yatchuk
James Zanoni
Leila Swann
Adrian Lee
27
UFE Results Recap
By Dr. Shelia Elworthy, CA
O
nce again, we are celebrating a successful year for CASB students on the national UFE!
In 2012, 1,007 candidates demonstrated the level of competency expected of a new CA. An
impressive number of these candidates—891—succeeded on their first attempt.
We are pleased to see 409 BC candidates continuing this province’s tradition of performing well.
Further, 364 BC candidates passed the 2012 UFE on their first attempt. Congratulations!
We are especially proud of the 21 CASB students who were named to the National Honour Roll,
including the 13 students from BC. We extend special congratulations to Ivan Wong, who shares the
title of top performer in Western Canada with Alberta student Paula Overguard.
UFE flow-through rate
We measure the flow-through rate of UFE candidates to understand the number of students who attempt the UFE and ultimately become CAs. CASB students who have yet to write (or pass) the UFE
should be pleased to learn that more than 95% of the students who’ve written the UFE in recent years
have ultimately passed the exam.
BC school performance
BC post-secondary schools continue to produce successful candidates. The following table shows the
number of successful students from each institution.
Institution
Number of successful
candidates
British Columbia Institute of Technology
Camosun College
Capilano University
Langara College
Kwantlen Polytechnic University
Okanagan College
Royal Roads University
Simon Fraser University
Thompson Rivers University, Open Learning
Trinity Western University
University of British Columbia
University of the Fraser Valley
University of Northern British Columbia
University of Victoria
Vancouver Island University
17
10
3
4
9
13
8
83
12
5
118
5
15
32
3
Competency-based education
Education, experience, and evaluation each play a role in a person becoming a CA. CASB provides the
education, training offices deliver the experience, and the evaluation is measured on the UFE. This
year’s success once again demonstrates the close relationship between these elements in preparing students for long-term careers.
Non-external audit success
Candidates training outside the traditional external audit route continue to be successful. This year, 41
CASB candidates who trained in non-external audit roles were successful on the UFE; this includes 23
candidates from BC, two of whom made the National Honour Roll!
28
Congratulations!
Everyone at CASB is proud of the 409 BC
candidates who were successful on the 2012
UFE, and of the 13 BC students on the
National Honour Roll. We would also like to
congratulate the Yukon student who was
successful on the 2012 UFE! A full list of the
successful BC and Yukon candidates is provided
on pages 30-32. Well done everyone!
Dr. Sheila Elworthy, CA, is the vice-president of
learning for the CA School of Business.
About the results recap
In conjunction with the CICA
and the other provincial
institutes, the ICABC adheres
to the 2009 national
agreement on how to present
the results. The approach
focuses on flow-through
rates rather than pass rates.
Extensive additional data
continues to be provided to,
and reviewed by, councils,
CASB, and educators.
James Stafford Chartered Accountants
Full Page
4C
Opp UFE Results pg for BC and CASB
29
Congratulations to BC’s 409 Successful
UFE Candidates for 2012!
National
Honour Roll
IvanWONG
Gold Medallist, Western Region
DanielBIRKS
MichelleCHAN
KorinnaFEHRMANN
CaryFRANK
Harpreet (Ryan) GILL
DarwinHO
ErinREIMER
Michael (Mick) STOBART
MiiroSUEYOSHI
ChenWEI
TrevorWHEATLEY
Jonathan M.
WONG
AhmerAFTAB
AdeenaAFTAB
LeeAGUR
FrankieALBANO
StephenALBINATI
PatriciaALBINO
MichaelALDERDICE
JasonANDERSON
JinkyARADO
NataliaASADOVA
ManpaulAULAKH
SamanehBADIEI
MandeepBAINS
HeatherBALFOUR
SaamBANDARI
TomaszBARTOLD
DanielBARWIN
MichaelBATTISTA
TashaBAZIUK
NealBEAUCHAMP
EvanBEAUPRE
JeremyBELTGENS
ZanetaBENAKOVA
MiaBENT
RyanBEVERIDGE
SimranjitBHATTI
NicoleBISARO
DavidBLOCK
GregoryBOMBARDIR
DarioBON
GrantBOND
30
Jean Paul
BOOYENS
EricBREWIS
LauraBRIDGEMAN
ChristopherBRIEN
ChristopherBROOKS
AliciaBROWN
AaronBROWN
AlastairBROWNLOW
MichaelBURGGRAAF
SeanBURKE
CaitlinBUTLER
TeriBUTT
ChristopherCALDER
AlyciaCALKINS
HeatherCAMERON
AlexanderCANT
HuanCAO
JohnCARTWRIGHT
AdamCARVER
KhalilCHAGANI
ArthurCHAN
JacksonCHAN
TriniCHAN
ShannonCHANG
DavidCHAPMAN
ByronCHARD
MonicaCHAU
JenniferCHEESEMAN
JieCHEN
XiaohouCHEN
QingCHEN
TianyiCHEN
I-TinnCHEN
ValerieCHEN
Yun-TingCHEN
YueCHEN
KimberleyCHENG
MichelleCHEUNG
JeremyCHILDS
KatyCHIU
KarinaCHIU
ChulhyunCHO
SunyoungCHOI
JihyunCHOI
ColleenCHONG
JesseCHONG
MeghanCHOO
YinluCHU
DonnaCHUNG
RajveerCLAIR
MichaelCLARK
NolanCLARK
PaulCOFFEY
JonathanCOLE
JeremyCOOK
JustinCOUBARAKIS
SeanCROSBY
JannaCUMMINGS
AmritaDAYAL
Felicia
DE LA PAZ
JuliaDION
MichaelDOCHERTY
CarmenDONG
ThipphasoneDOUANGMANY
VictorDROHOMIRECKI
WeiDUAN
FainaDUBOSARSKI
KatherineDUHOLKE
GurdeepDULEY
ChristopherDUNCAN
FrancesDUNN
KarolinaDZIEDZIC
ElenaELDER
GraceELGAARD
FfionELLIS
AdamERICKSON
CarolERIKSON
BriESHLEMAN
AnastasiaFACCHIN
SarahFAHRMANN
DanielFALCK
SamanthaFAN
TarahFAWDREY
LisaFEATHER
MeganFRASER
KristalFUNG
StevieFUNG
KevinFUNG
LindseyGABRYSH
GraemeGASS
NathanGEIGER
RebeccaGETCHEY
MarleyGIBBONS
GeorgeGIBSON
JenniferGILL
GurinderGILL
JodiGODWIN
DeanGOLBECK
StuartGRANT
BrianGRANT
BC’s Successful UFE Candidates
continued
KristinGRAY
TajinderGREWAL
RobertoGUERCIO
MarkGUNTHER
MuziGUO
MatthewGUSTAVSON
CyrusGUY
GenevieveHAACK
AndrewHAMILTON
NingHAN
WarrenHANDFORD
AngelaHARRISON
JohannaHATHERLEY
CarlHAUGLAND
GeorgeHAYES
AmandaHAZELTON
DamianHEE
MichaelHEIDSTRA
ShokaHEIRAT
DanielHEJCMAN
RussellHENDERSON
MeghanHENDERSON
IainHENDERSON
SheilaHENN
JessicaHERMISTON
ShunHO
AnnaHOANG
AdilHOSENBOCUS
ShaunHOWE
Tai-YuHU
JasonHUANG
CaijinHUANG
DevonHUBER
King Fung
IP
JenicaISMAN
TessaJACKSON
SungEunJOH
LuisKAM
MatthewKATZSCH
KushagraKAUSHAL
MichaelKELLY
SpencerKENT
EmilyKERKLAAN
LairdKING
MatthewKINGTON
TheaKOUWENHOVEN
EkaterinaKOZHEVNIKOVA
YunQiKUANG
GarrettKWAN
WilsonKWAN
ChristopherKWAN
JojoLAI
FaizaanLALANI
SatnamLALLI
Yi Ting
LAM
JessicaLAM
Pascal
LAMBERT PARADIS
YangLAN
AdamLANGENMAIER
FlorenceLAU
Russell Jason
LAWRENCE
CharltonLE
EricaLEE
Jong Bae
LEE
AdrianLEE
ChristopherLEE
WinnieLEE
AmyLEE
NatalieLEON-DAVIS
Tak Kin
LEUNG
PaulLEWKOWICH
LinsenLI
ViktoriyaLI
HelenLI-HENNESSEY
Chia-YinLIN
WilliamLIN
BrendaLIU
BelindaLIU
LewisLO
CarrolynLOK
DannyLOO
JasonLOW
JanelleLUINI
DomenicLUONGO
KevinMA
JamieMACDONALD
CarlyMACEY
CameronMACKENZIE
CarmenMANHAS
RyanMARCINEW
DanielMARTINO
LisaMARZOCCO
JenniferMASSON
CurtisMATTENLEY
SharleenMATTER
MelanieMATTHEWS
AshleyMAYR
MichaelMCCANN
AmberMCFARLAND
FraserMCGLENEN
HughMCINTYRE
JillianMCKITRICK
TannerMCNABB
PatrickMCNARY
LindsayMCTAVISH
BradleyMEADOWS
JustineMELLOR
JenniferMENDES
SarahMICKELSON
MatthewMILLER
TrevorMILLS
KarinaMILLS
PreteshMISTRY
LenkaMOELLER
MichaelMONACHELLO
DavidMOSELEY
GaryMUI
HebaMUSA
BradleyMUZZIN
RandeepNARANG
LindsayNELSON
JaronNEUFELD
DoronNEUMAN
SarahNG
DevinNG
TeresaNG
JenniferNG
WilliamNG
EdmondNG
Hoang Vu
NGUYEN
RakinderNIJJAR
MeganO’FLAHERTY
Jee-HyeOH
JenniferONG
AyumiORGAR
OleksiyORLOVSKYY
JessicaPAIK
ConniePAN
JustinaPAP
MariePARAYNO
AmandeepPARMAR
ParmjotPARMAR
AnastasiaPAVLOVA
AlanaPEARSON
JeremyPEREZ
JoshuaPHILIPCHALK
AgnieszkaPIOTROWSKI
SarahPLAMONDON
MarleahPLESKO
Richard-DeanPRADAS
31
BC’s Successful UFE Candidates
continued
JamesPROCTOR
KathrynRATELICH
ToddRATHIE
HalaRAWJI
JamesREID
MonicaREIHAL
ChristopherREYNOLDS
KevinRILEY
AlexandrRINBERG
KirstenRINGROSE
KyleROBINSON
ErynROCHON
BethanyROGERS
SharonRUNGHEN
BrettRUTHERFORD
JacobSAFARIK
YuiSAKUMA
JamesSALUSBURY
MandeepSANDHU
VarinderSANDHU
InveerSAPRAI
NathanSAUER
GiacomoSCORDO
ShannonSCOTT
CodySERPA
XueSHEN
AbidSHIVJI
KirstenSHORT
TrevorSHUM
FahadSIDDIQUI
StephenSIMON
EricaSIRACUSA
JenniferSISSONS
JeffSIU
AndreaSMID
JasonSOLNIK
JoshuaSORIN
AnthonySOUSA
DanaSTEVENSON
KarenSTEWART
LisaSTEWART
Song Hua
SU
StevenSUN
CandaceSURETTE
LeilaSWANN
DoraSZE
AndrewSZETO
KatherineTAM
MiltonTANG
FarrukhTANWEER
32
JagdeepTATLA
AlexisTATTRIE
PamelaTEETAERT
AmandaTEIXEIRA
DouglasTELFORD
KyleTERPENNING
JennyTHIESSEN
GhadeerTOMA
CorinaTOMLINSON
GloriaTONG
CarolTONG
HelenTRINH
ChoanTRUONG
KevinTSE
PhyllisTSUI
BrittanyTUCKER
Yu Ting
TUNG
RobertTURLEY
JosephVALDES
ArtemVALEYEV
Kristen
VAN DINTHER
Ashley
VAN JAARSVELD
DirkVANDERKOOI
GarettVANDERVEEN
GordonVERLEY
MarcusVETTORETTI
KhrystynaVOYTKOVA
RobynWALLE
NatalieWALTER
JarrettWALTER
JosephineWAN
IanWANKE
JensWATSON
TynanWATSON
HeatherWELSH
Pei-ChengWENG
StephanieWESTON
SheilaWESTWELL
StephenWHITE
ErinWILLIAMSON
PeterWINTERS
Jonathan B.
WONG
ChristineWONG
Kar Man
WONG
WesleyWONG
Lan-PingWU
JialinWU
JennyWU
EdwinXU
JustinYAN
Shi Kun
YANG
Chao Chun
YANG
DanielYATCHUK
CheongYEUNG
CarsonYEUNG
MichelleYEUNG
DesmondYOUNG
YoufeiYU
TinaYUE
TiffanyYUEN
Pui Wai
YUNG
RaymondZHANG
BoZHANG
Guang Yu
ZHENG
MarloZIMMERMANN
Congratulations
to the Yukon
Institute’s
Successful UFE
Candidate for
2012!
Virginia SZABO
Left to Right:
Vern Bla i r, Cheryl Shearer, Robert D. Mackay, Kiu Ghanavizchian, Chad Rutquist, Gary M. W. Mynett,
Chris Halsey-Brandt, Andy Shaw, Jeff P. Matthews, Farida Sukhia
Blair Mackay Mynett Valuations Inc.
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Columbia. Our practice focus is on business valuations, mergers and acquisitions,
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Vern Blair:
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Andy Shaw:
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Chris Halsey-Brandt: 604.697.5294
Kiu Ghanavizchian:
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Chad Rutquist:
604.697.5283
33
Ours, Mine and Yours: How Couples Can
Successfully Manage Joint Finances
By PPC Canada
A note from Member Services: For more information about PPC and your member
benefits, visit the ICABC website at www.ica.bc.ca/ppc. To book services,
contact PPC directly at www.ca.ppcworldwide.com or call 1-800-663-9099. To
access the online health and wellness tools, use the following log-in: username:
“healthy”; password: “living”; key code for e-counselling: “healthyliving.”
C
omedian, writer, and performer Spike Milligan once said: “Money can’t buy friends, but
it can get you a better class of enemy.” Milligan’s observation also applies to romantic
relationships. According to recent studies, the number one topic couples fight about is
finance. Knowing this fact, and taking steps to calm money miscues, can go a long way to preventing
problems in your relationship.
Experts agree that establishing a level of personal financial independence seems to be the best way for
couples to mitigate any financial issues that can arise. Moreover, communication, goal-setting, and
teamwork need to be developed if couples are to manage their chequebooks and their relationship.
Ruth Hayden, an educational consultant and author of For Richer, Not Poorer: The Money Book for
Couples, offers several suggestions to help couples handle money issues.
“It seems like when we choose to have a relationship with someone, we pick the exact opposite,”
Hayden says with a laugh. “We don’t want a clone of ourselves; we want someone who is going to
compliment our attitudes and feelings. Once we make a long-term commitment, then we expect them
to have the same outlook on money and finances. That sets up heated discussions about money and
financial planning.”
Hayden says financial planning should be one of the first issues that new couples talk about, as it is
one of the biggest issues they will face together. She believes couples should start with a meeting to
discuss goals, dreams, and the semantics of joint finances.
“What I believe is that couples need to have ‘yours’ and ‘my’ money,” Hayden says. “I find that many
times the successful relationship has a money life that looks like the relationship. You need to feel autonomous, but at the same time feel like you are working together as a team.”
“Together but separate” might sound like a contradiction in terms, but Hayden describes this concept
as the best way to make sure money doesn’t become a major bone of contention in the relationship. She
advocates a system wherein a couple uses three chequebooks: one for each partner, and a common
chequebook for paying major bills, such as mortgage or school loan payments.
“Of the thousands of couples I have worked with, I’ve observed many different systems,” she says.
“But overall, what seems to work the best is having three chequebooks. Many times the couple will
have a meeting, talk about their financial goals, and then decide how much money they need to pay
toward common bills and then each other.”
The trick, she says, is determining who is paying for what at the onset of this three-chequebook system.
“I don’t like to call the money we give to each other an ‘allowance,’” Hayden says. “That brings us
back to childhood, and makes it sound unimportant. It should be called a ‘personal salary,’ and it
should be more than just a few dollars every pay period. Some couples make it a substantial amount,
and use those funds for paying bills or investing.”
Hayden adds that these negotiating skills help couples with their communication overall, and teach
them about long-term planning for their relationship.
“You have to work through these types of decisions,” she says. “Businesses do. Going through the
money issue first will really help with the long-term health of [your] relationship.”
Dr. Tina Tessina, a licensed marriage and family therapist, echoes many of Hayden’s comments.
“I think there should be separate chequebooks,” Tessina says. “If there is a joint chequebook, then
there must be an understanding about the financial situation, and that makes it more complicated.”
Tessina is the author of 10 published books on relationships and finances, with her latest being The
34
Unofficial Guide to Dating Again. She advises
couples to schedule weekly meetings—not just
to discuss money, but also to catch up with one
another.
“This can be a time to talk about long-term
plans, such as purchasing a house or paying off
college debt,” Tessina says. “Couples should not
only take stock of their finances, but of their
relationship too. Ask what is going well and
what needs improvement.”
Tessina points out that this weekly meeting,
which she dubs the “state of the union” meeting,
should be something both partners look forward
to, rather than dread. She notes that by talking
about positive things and setting out long-term
goals, many financial issues can be deflected.
“If the couple shares the time and energy, it
can become a social occasion,” she says. “Make it
pleasant—after the kids go to bed or before they
get up on a Saturday morning.”
Tessina adds that couples should pay themselves first, much like they do with their RRSP
plans at work.
“It is so easy to not pay yourselves when you
wait until the end,” she says. “If you pay yourself
first, then you can make it work. It is important
that you feel independent, but also that you are
working toward a common goal.”
Hayden and Tessina offer couples the same
advice when it comes to managing finances:
•Talk about your attitude toward money.
•Discuss long-term joint financial goals (such
as purchasing a new home or having children).
•Put your plan into action.
•Establish separate chequing accounts or personal salary amounts.
•Follow up by discussing how the plan is
going on a weekly basis.
•Pay yourself first.
•Keep talking.
Money doesn’t have to drive a wedge between
partners. In fact, it can actually help couples
learn more about one another. And while money
doesn’t create happiness, discussing money can
help a relationship grow. Making long-term
plans, helping each other reach goals, and
improving quality of life are just some of the
things couples can accomplish together.
35
Tax Traps & Tips
Section 84.1 –
The Trap That
Commonly Trips
By Sindy Wong, CA
Section 84.1 can create significant adverse tax implications for the unwary—
often leading to punitive results
S
ection 84.1 of Canada’s Income Tax Act (the Act) has been described as “both subtle in its
application and severe in its consequences.”1 The purpose of section 84.1 is to prevent “surplus
stripping”—the tax-free extraction of surplus from a corporation by a non-corporate taxpayer.
The danger of section 84.1 is how commonly advisors are caught unaware, and how often this lack of
awareness leads to punitive results for the taxpayer.
A detailed review of the technicalities of section 84.1 is beyond the scope of this article. Instead, this
article discusses some common examples of transactions caught by section 84.1, and the punitive
results.
Application
In very general terms, section 84.1 applies when all of the following conditions are met:
•Shares of any class (the “subject shares”) of a Canadian resident corporation (the “subject corporation”) are disposed of;
•The disposition is made by a non-corporate taxpayer (an individual or trust) that is a resident of
Canada;
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36
BeyondNumbers-ad-square_2012.04.10.indd 1
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•The subject shares are capital property to the
taxpayer;
•The taxpayer disposes of the subject shares to
another corporation (the “purchaser corporation”) with which the taxpayer does not deal
at arm’s length2; and
•Immediately after the disposition, the subject
corporation is connected with the purchaser
corporation.3
Where section 84.1 is found to apply, one or
both of the following consequences may result:
•Paid-up capital reduction4
The paid-up capital (PUC) reduction found
in section 84.1 is intended to prevent the
artificial creation of PUC, which can later be
extracted by shareholders as a tax-free return
of capital.
Generally, shares issued to acquire property
begin with PUC equal to the fair market
value (FMV) of the property less any
non-share consideration paid, unless otherwise
reduced by specific provisions in the Act.
Where section 84.1 applies and shares of
the purchaser corporation (“new shares”) are
issued as consideration for the subject shares,
the PUC of the new shares is limited to the
greater of : a) the PUC of the subject shares,
and b) what is commonly referred to as “hard
ACB,” less any non-share consideration
received by the taxpayer on the disposition.
Paul Bleiwas and John Hutson, Taxation of
Private Corporations and Their Shareholders,
4th ed., 4:29.
2
“Arm’s length” is defined in subsection 251(1)
of the Act, and is further expanded for the
purposes of section 84.1 by paragraphs
84.1(2)(b) and (d) and subsections 84.1(2.01)
and (2.2).
3
The meaning of “connected” is assigned by
subsection 186(4); for the purposes of
section 84.1, all references therein to “payer
corporation” and “particular corporation” are
to be read as “subject corporation” and
“purchaser corporation” respectively.
4
Paragraph 84.1(1)(a).
1
Hard ACB5 is essentially the adjusted cost base (ACB) of the taxpayer’s subject shares, immediately
before disposition, reduced by the amount of any capital gains exemption (CGE) claimed by either
the taxpayer or a non-arm’s length party on the subject shares (or shares for which the subject shares
have been substituted).
•Deemed dividend6
To the extent that the taxpayer receives non-share consideration that exceeds the greater of the PUC
and hard ACB of the subject shares, the taxpayer is deemed to have received a dividend equal to the
amount of that excess.
Common scenarios in which section 84.1 may apply
The application and implications of section 84.1 are best explained using sample scenarios. The following
examples illustrate two common situations in which section 84.1 may apply, and the resulting tax
implications in each case. These examples are by no means exhaustive, as there are many other situations
in which section 84.1 may apply.
Example 1: Selling shares to the next generation
Dad, as the founder of Opco, is preparing to retire and pass the reigns to Son. The ACB and PUC of
Dad’s Opco shares are $100. Dad sells his Opco shares to Son at FMV of $1 million, and intends to
claim his full CGE of $750,000 on this disposition.
Son needs to finance his Opco share purchase with a bank loan, and has decided to incorporate
Holdco to be the borrower and purchaser of the Opco shares. The plan is to amalgamate Holdco with
Opco subsequent to the share purchase, so that Son may service the bank loan with pre-tax profits
earned by Opco. All taxpayers involved are residents of Canada.
In this example, section 84.1 would apply
because all of the five conditions are met. Given
that no Holdco shares were issued as consideration for the Opco shares, no PUC reduction
would apply to the Holdco shares. However,
since Dad received $1 million in cash as consideration for the Opco shares, Dad will be
deemed to have received a dividend of $999,900
($1 million non-share consideration less $100,
being the greater of PUC and hard ACB).
For capital gains purposes, the deemed
dividend will be excluded from Dad’s proceeds
for his Opco shares.7 Therefore, Dad will be
deemed to have disposed of his Opco shares for
proceeds equal to the cost of $100, resulting in
no capital gain or loss.
In this example, rather than realizing a capital
gain of $249,900 as intended, Dad realized a
dividend of $999,900, as a result of the application of section 84.1.
continued on page 56
Subsection 84(2). ACB is also reduced for certain V-day adjustments where the subject shares were either held since 1971 or acquired from a non-arm’s
length vendor who held those shares (or substituted shares) since 1971.
6
Paragraph 84.1(1)(b).
7
Paragraph 54(k), definition of “proceeds of disposition.”
5
THE DEDICATION. THE CHALLENGE.
THE RESULTS.
Wolrige Mahon congratulates all successful 2012
UFE writers.
UFE writers; Mandeep Bains, Wilson Telford, Michael
Alderdice, Melody Zheng and Amy Lee.
Our firm consistently demonstrates 100% pass rates
year after year and this year was no exception! We
are delighted to celebrate a 100% pass rate with our
Wolrige Mahon is honoured to develop quality
professionals to manage the diverse needs of our
valued clients.
Wolrige Mahon LLP
Ninth Floor
400 Burrard Street
Vancouver
British Columbia
www.wm.ca
37
Financial Facts & Money Matters
Wealth Management: Measuring Return
and Risk
Strategic asset mix
Year-end
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Congratulations to B.C.’s successful Uniform Evaluation Candidates of92012!
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Ja n u ar y 2 0 13
© 2013
Robert
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nting
I
n my last article on wealth management issues, I discussed the importance of using a detailed, after-tax
cash flow plan to understand strategies to achieve retirement, lifestyle, and legacy goals. I also described
the key variables that go into such a model, the limitations of some common assumptions, and how
to understand potential outcomes in an uncertain world.
This latest article explores return and risk assumptions in greater detail, highlighting some of the
fundamentals of good portfolio management along the way. The concepts in this article form the
building blocks for the final article in this series, which will focus on strategies to optimize financial
returns.
In discussions about return and risk, I often find that clients default to those parameters in the context
of their investment portfolio. However, the discussion of return and risk should apply equally across a
client’s entire portfolio of assets. In addition to a liquid portfolio of stocks, bonds, and investment funds,
the discussion might include real estate (such as a principal residence, cottage, and/or investment
properties) and business assets (such as employment and/or owned businesses).
Harkening back to the basic wealth management principles described in the first instalment of this
series, it is relevant to recall that tax, legal, and insurance planning strategies can play an integral role in
return and risk. If, for example, a client aims to earn a 5% return on their assets to maintain their
lifestyle standards, this return does not have to come solely from their investment portfolio; instead,
it should come from the aggregate of their assets and planning strategies. The client should also
understand that the risks associated with specific return strategies will vary widely across their asset base
and their set of planning opportunities.
ets
Editor’s Note: This article is the fourth in a five-part series of articles on wealth management issues by
Tanner Philp. The final instalment will appear in the April 2013 edition of Beyond Numbers in our
Financial Facts & Money Matters column.
ReconciliationsXBRLSpreadsheetsTechnology
By Tanner Philp, CA, CIM
Accounting
“Strategic asset mix” refers to the long-term asset
mix of a client. It should be designed to achieve
the client’s return objectives with a degree of risk
that is acceptable to them. At the highest level,
strategic asset mix can be measured as a client’s
blend of liquid securities, real estate, business
assets, and insurance assets.
Within each category, subsets are also worthy
of consideration. For example, strategic asset
mix within liquid investments can be measured
by the allocations to cash, bonds, stocks, and
alternative investments, as well as by geographies
such as Canada, the US, and international
markets. Within real estate, strategic asset mix
might be measured by the allocations to personal
use, commercial investment, or residential investment properties.
At both a top and a subset level, the goal of a
strategic asset mix is to generate sufficient return
to fund lifestyle, retirement, and legacy goals.
But consideration also needs to be given to the
liquidity of each asset class. One of my favorite
analogies when discussing this concept with
clients is that real estate is a great asset, but it’s
hard to eat your house in Italy. Of course, there
are viable strategies to unlock the equity in real
estate—my point is that consideration has to be
given to liquidity strategies before those assets
can be used, regardless of the return they generate.
A client’s strategic asset mix determines the
return and risk assumptions in their personalized
cash flow model.
A voice for women
in the profession
Go to www.cica.ca/women
and join the conversation.
Beginning in
December 2012
A series of webinars
to assist female CAs
www.cica.ca/Womens
LeadershipWebinars
Coming soon
Advancing Women in the Accounting Profession:
Career Navigation Toolkit for Individuals
Advancing Women in the Accounting Profession:
Career Navigation Toolkit for Firms
cica.ca/WomensCareerAdvancement
The CICA's Women's Leadership Council is a voice for women CAs. We act as a catalyst for change, promoting a
work environment within the Chartered Accountancy profession that provides for the retention, promotion and
advancement of women to positions of leadership without bias, unintended or otherwise, based on gender.
We provide resources and education to further women's advancement in the CA profession.
39
Return
Return assumptions in a cash flow model are
just that—assumptions. They can be calculated
using a top-down or bottom-up approach. The
top-down approach reverse-engineers the return
needed to fund a series of cash flows. The bottomup approach looks at the return potential
on each individual asset and aggregates these
potential returns into a weighted average. In
practice, we often start with the top-down
approach to assess the required return, and move
to the bottom-up approach to identify which
assets should be held in a particular quantity to
achieve the top-down target.
There isn’t a lot more to say about return in
the context of wealth planning unless we start
discussing the financial returns that should be
expected from various asset classes and the
individual investments within. This sort of discussion usually involves a large set of information
and a wide variance in opinions, and is beyond
the scope of this article.
Suffice it to say that each client must determine
how to collect and arrange sufficient assets to
achieve the required rate of return to fund their
cash flows. Ultimately, if a client cannot do this,
they must reduce their lifestyle expenditures.
The bad news is that this typically degrades a
40
client’s lifestyle and experience. The good news is
that reducing expenses has a significant positive
impact on cash flow budgets, and is the most
controllable item.
In practice, clients often stretch for returns
that are materially higher than required to fund
their cash flows. In doing so, they increase the
risk of not achieving these returns and, perhaps,
the risk of not achieving their lifestyle goals.
This may be because a robust cash flow model
was never built. Missing this essential step can
cause clients to overestimate or “pad” the return
required to fund their lifestyle, and introduces
unnecessary risk.
Risk
Risk comes in many forms; however, in managing
client portfolios, the following types of risk
typically arise: emotional risk, standard deviation, permanent loss of capital, and tail risk.
Emotional risk
A good measure of whether you’ve taken on
emotional risk beyond your scope is whether
you lose sleep worrying about a material loss of
your assets. Emotional risk arises when clients
are stressed about financial return outcomes,
and then act on this stress. For example, there
are many tales of individuals who converted
their liquid investments to cash in a fit of despair
in late 2008, at the beginning of the current
economic malaise, only to miss the recovery that
began in 2009. Essentially, when assets are misaligned with a client’s emotional risk tolerance,
it can lead to poor decision-making. It is preferable
to have a less risky and, therefore, lower-returning
portfolio than it is to have one that induces poor
decision-making coupled with bad timing.
Standard deviation
Standard deviation is a statistical measure used
to gauge how much the value of an asset varies
from its average value. In the context of asset
prices, this is sometimes referred to as “volatility.”
For an individual stock, it refers to how much
the stock price varies from its average price.
Stocks with higher volatility are often considered
to be riskier than stocks with lower volatility.
The “why” is not always obvious, but more on
that next.
Permanent loss of capital
Asset managers consider standard deviation to
be one of the key determinants of risk. On the
one hand, high standard deviation increases the
probability that a client has a material unrealized
loss on an asset at any given time. On the other hand, is an unrealized loss really so bad if it’s temporary?
If you follow this logic, you arrive at the conclusion that standard deviation, in and of itself, is not real
risk. Rather, losses on assets that are permanent in nature are the real causes of concern.
Temporary losses can become permanent losses in one of two ways:
1.A temporary condition becomes permanent (for example, a temporary reduction in cash flow at a
client’s business due to a new competitor becomes permanent when the client is no longer able to
compete and shuts down their business); and
2.An asset is sold while it is at a depressed valuation.
Tail risk
Much has been made of the “black swan” or “tail event” risk since 2008. This refers to an unimaginable,
unpredictable risk that cannot be anticipated. Sounds scary, right? When it occurs, it probably is quite
scary in a financial sense. In reality, though, little can be done to reduce a risk that cannot be
anticipated, other than to follow some basic principles of risk mitigation.
There are three straightforward approaches to risk mitigation: diversifying, taking a long-term
approach, and managing your capital.
1.Diversification: “Don’t put all of your eggs in one basket.” This common adage applies in almost
all risk management scenarios. Asset values across liquid investments, real estate, and business
holdings do not typically move in the same valuation direction at the same quantum over any longterm period. As such, risk of permanent loss can be mitigated simply by holding a bundle of assets
with disparate characteristics. This can be achieved by blending assets from the various categories
discussed above while also paying attention to the correlation of these assets (how much they tend
to move in tandem with each other).
Upcoming PD seminars on
wealth management
Tanner Philp, CA, CIM, will be
teaching the following upcoming
seminars:
Wealth Management Tools and
Practices
Feb 15, 2013 - 9am-12:30pm
Vancouver
New: Introduction to Portfolio
and Investment Management
Techniques
Mar 21, 2013 - 9am-12:30pm
Vancouver
New: Understanding and
Implementing Business
Succession Strategies
June 11, 2013 - 9am-5pm
Vancouver
For more information, consult
your winter 2013 PD catalogue,
visit the website at www.
icabc-pd.com, or call the PD
department at 604-681-3264.
Congratulations to KNV’s
2012
Successful UFE Writers
KNV believes the key to motivation is a unique balance of desire,
determination, and commitment. Erica, Helen, and Megan truly embody
these elements in their unrelenting pursuit of goals and commitment to
excellence. We are incredibly proud of our students who passed the
2012 Uniform Evaluation and look forward to their future contribution as
part of our team of outstanding professionals.
Erica Lee, Helen Trinh, Megan O’Flaherty
“The great thing in the world is not so much
where we stand, but rather
in what direction we are moving.” - Holmes
Surrey * Vancouver * Kelowna
604-536-7614
WWW.KNV.COM
604-736-2571
250-861-5300
Independent Member firm
of DFK International
41
PD News
NPOs: The New Accounting Standards – A
Review of Part III
This seminar will provide an overview of the
new accounting standards for not-for-profit
organizations under Part III of the CICA
Handbook. It will review the application of
GAAP, with an emphasis on the areas where
choices have to be made in the preparation of
financial statements.
Feb 13, 9am-5pm, Vancouver
WINTER PD PROGRAM
For detailed course descriptions or a complete
schedule of upcoming PD seminars, consult
your winter 2013 PD catalogue or visit our
website at www.icabc-pd.com. To register, call
the PD department at 604-681-3264.
Audit & Accounting
ASPE: Disclosure and Presentation –
From Standards to Words
Much was said about reduced disclosure for
private enterprises when ASPE was issued,
but what is the reality now, and what are best
practices?
This seminar will inform participants about the
financial statement disclosure and presentation
requirements for ASPE.
Feb 5, 9am-5pm, Vancouver
New: Introduction to Portfolio and
Investment Management Techniques
This seminar will provide you with an understanding of basic and intermediate portfolio and
investment management techniques for use in
your own investment portfolio. It is aimed at
those new to the investment management area.
Mar 21, 9am-12:30pm, Vancouver
42
Wealth Management Tools and Practices
This course will provide professional advisors
with the tools needed to: help themselves or
their clients develop a personal financial plan;
participate with other professional advisors
giving financial advice; and help integrate
clients’ personal financial planning into clients’
corporate and family affairs.
Feb 15, 9am-12:30pm, Vancouver
Management and Professional
Skills
New: Influence and Assertiveness
Well-developed influencing skills and assertiveness are key competencies for managers in their
day-to-day activities. This highly interactive
seminar will provide tools and techniques to
enhance your influence and assertiveness when
dealing with decision-makers and peers.
Mar 14, 9am-5pm, Vancouver
New: Leadership in Action
This workshop is based on the premise that
the roots of a high-performance organization,
team, or department are in its “culture,” and that
the roots of a high-performance culture are
always in leadership. Participants will deepen
their understanding of leadership, motivation,
engagement, communication, delegation, and
empowerment.
Mar 11-12, 9am-5pm, Vancouver
New: Writing Effective Business Reports and
Emails
Business writers are responsible for adding value
to the business and clarifying key issues for
decision-makers. This seminar will provide business writers with advice on structure, and guidance
on producing strong reports and emails that
meet the needs of readers.
Mar 22, 9am-5pm, Vancouver
Information Technology
New: Excel Reporting – Best Practices,
Tools & Techniques
This half-day seminar is about how to create
accurate, easy-to-prepare reports in Excel when
the source data resides in an accounting database
or other database. The seminar is designed for
those who regularly prepare financial statements
or other financial reports and use Excel in the
process.
Feb 19, 9am-12:30pm, Vancouver
Taxation
Creative Use of Partnerships in Tax
Planning
This seminar will focus on the use of partnerships
in creative tax planning, including some of the
more common issues and pitfalls encountered
by practitioners.
Jan 23, 9am-12:30pm, Vancouver
GST/HST Update
This half-day seminar will provide a review
of important GST/HST announcements and
policy changes since the harmonization of tax in
BC in 2010, including a brief summary of the
proposed changes resulting from the de-harmonization in April 2013. It will also review a
number of common errors and misconceptions
that frequently result in assessments.
Jan 23, 9am-12:30pm, Vancouver
New: Income from Corporate Partnerships –
One Year into Applying the Anti-Deferral
Rules
This session will introduce practitioners to the
rules limiting the deferral opportunities for
corporations that have a significant interest in a
partnership. It will also provide a summary of
other more recent pronouncements/issues that
may be relevant when dealing with partnerships
and joint ventures.
Feb 20, 7:30-9:30am, Vancouver
New: Income Tax Rules Applicable to
Non-Competition Agreements and Other
Forms of Income Tax “Restrictive
Covenants”
The purpose of this seminar is to review the
rules introduced by the federal government in
response to the Fortino and Manrell decisions.
It will cover Income Tax Act section 56.4 and
related provisions.
Preventing, Managing, and Resolving
Shareholder Disputes
Many CAs are the principal advisors to closely
held companies and their shareholders. This
seminar will provide practical advice on preventing,
managing, and resolving shareholder disputes,
and basic information about the legal options
for resolving disputes.
Transitioning from HST to PST:
What’s Old is New Again!
This half-day course will briefly review the basics
of the new (old) PST, including registration and
filing requirements, and how PST differs from
HST. It will also review important transitional
issues pertaining to the switch from a single
HST to a combined GST + PST. The course is
intended to assist participants in understanding
the impact of these changes and start planning
for the switch.
Jan 23, 1:30-5pm, Vancouver
For detailed course descriptions
or a complete schedule of
upcoming PD seminars, consult
your winter 2013 PD catalogue
or visit our website at
www.icabc-pd.com. If you have
any questions, call the PD
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43
Plugged In: News for and about members & students
Announcements
Congratulations!
Sharon Perry, CA, has been nominated for a 2012 Business Excellence Award, sponsored by the Tri-Cities Chamber of
Commerce. Perry has been nominated in the “Community Spirit” category. Awards will be announced this month. We wish
her luck!
Young CA Forum to Host Lunch with ICABC President
The Young CA Forum will be hosting a luncheon with ICABC president Gord Holloway, FCA, and Institute CEO Richard
Rees, FCA, on February 28, 2013. Mark this date on your calendar, and stay tuned for more details!
BC AGM Advance Notice
2013 AGM and Members’ Recognition Dinner
The ICABC’s 2013 annual general meeting is scheduled to take place on the afternoon of June 26, 2013, in Vancouver.
Directly following the AGM will be the 13th annual Members’ Recognition Dinner. So mark your calendars now, and join us
for both events! Details will be provided in upcoming issues of Beyond Numbers.
PRL Notice – Cancelled Licences
Pursuant to its meeting of November 23, 2012, the Practice Review & Licensing Committee announces that the following
firms are no longer in public practice under these names:
Firm Name
Dale Peniuk
Flader Hale Hughesman
Fuller Landau
George K.Y. Mah, CA
KPMG LLP
Seung Oh Ltd.
Villeneuve Venne C.A.
City
West Vancouver
Salt Spring Island
Montreal (BC extra-provincial licence)
Vancouver
Prince George (Third Ave.)
Port Coquitlam
Montreal (BC extra-provincial licence)
Member Alert: Limitation Act Legislation
The new Limitation Act comes into force June 1, 2013. This new act will make the law easier to understand and bring BC’s
law more in line with other provinces.
As discussed in the October 2012 issue of Beyond Numbers, the Limitation Act sets out the time periods in which
individuals can start proceedings to sue one another in the civil justice system. While many other laws set limitation
periods, the Limitation Act sets the default regime, which means that unless another law sets the applicable limitation
period, the Limitation Act applies.
The new legislation is the result of extensive research and consultation, dating back to 2007. The Ministry of Justice
received feedback from the public, consumer groups, and representatives of the business, legal, and health-care fields.
For more information, including information on the transition, please refer to the government website at:
www.ag.gov.bc.ca/legislation/limitation-act/2012.htm.
44
FVCAA Presentation Series
The Fraser Valley CA Association is
pleased to announce the following
events:
February 7, 2013
Accounts Receivable Insurance
David Newstead, Euler Hermes ACI
March 7, 2013
US Voluntary Disclosure and
Cross-Border Topics
Viviane Barber, CA, CPA
(Washington), Facet Advisors, LLP
May 2
WorkSafe BC
Frances Raphael, CGA, Manager
Audit
June 6
Shareholder Disputes, Remedies &
Agreements
Duncan Magnus, LL.B., Magellan Law
Group LLP
FVCAA Event Recap
Canadian Economy Took Centre Stage at Annual
Showcase Event
By Tom Miszczak, CA, CPA (Illinois), and Erin Swint, CA
E
ager to hear about recent developments in the Canadian economy, 200 guests packed the room
at the November 1st meeting of the Fraser Valley CA Association (FVCAA). Our 60 members
were joined by invited allied professionals, local and provincial politicians, and ICABC
president Gord Holloway, FCA, to hear Dr. Farid Novin, the Bank of Canada’s senior representative
for the BC/Yukon region, speak about the current state of the economy. This year’s chosen venue was
the Cascade Casino and Convention Centre in Langley.
Hosting a larger meeting enables FVCAA members to connect with the key people with whom we do
business. The FVCAA executive spent many months organizing this event, which we consider our
annual showcase. The main goals for this larger event are to educate members by bringing in a highprofile speaker, and promote the CA profession in the community.
Dr. Novin’s presentation was both informative and entertaining. What can we say—this crowd just
loves numbers!
Tom Miszczak, CA, CPA (Illinois), is the president of the FVCAA, and Erin Swint, CA, is the vice-president.
For more information, visit
www.fvcaa.ca or contact FVCAA
coordinator Laurie Daschuk at
604-850-5085/[email protected].
FVCAA members and guests enjoy some time for networking
before the presentation.
Back row (left to right): Laurie Daschuk; Jen Brett, CA; guest
speaker Dr. Farid Novin; Erin Swint, CA; and Cindy Sahlstrom, CA.
Front row (l to r): Harvey Knotts, CA; James Paradis, CA; Michael
Manley, CA; Rick Irving, CA; and Tom Miszczak, CA, CPA (Ill).
45
Announcing the fourth annual
CICA’s Commodity Tax
Symposium – WEST
MARCH 4-5, 2013 (Optional workshop March 6)
HYATT REGENCY, CALGARY, AB
Millions of Canadians are facing drastic changes to their
indirect tax system in 2013 – is your company prepared?
Seize this opportunity to learn from
Canada’s leading indirect tax experts, and
experience an agenda designed specifically
for businesses in Western Canada!
Gain valuable indirect tax knowledge from
sessions including:
1) All Aboard! BC’s Last Minute
Implementation Checklist
2) Carbon Tax – Not Just a Puff of Smoke
3) Get Back on Your Own Side! Customs
Issues and CTC’s
4) Mergers and Acquisitions in the World of
JV’s and Partnerships
5) Tax Technology Systems – Are They
Working for You?
6) Case Law Update, and many more…
Earn up to 17 hours of CPD credits
Optional workshop March 6:
Provincial Sales Tax Refresher
– All You Need to Know
Featuring: Erin Jensen, KPMG LLP,
David Robertson, Couzin Taylor LLP
KEYNOTE SPEAKER:
John Amatt
Leader, First Successful Canadian
Summit of Mt. Everest
Climbing Your Own Everest:
What it Takes to Get to the Top
For additional Symposium West information and to register online, visit:
46
www.cpd.cica.ca/CTSWest
ICABC Social Networking Group
Event Recap
Third Annual Speed Networking Event at V Lounge
By Julie Wong, CA
T
he ICABC Social Networking Group kicked off its first event of the 2012/2013 season with
the third instalment of its annual “Speed Networking” event. This year’s event was held on
November 8, 2012, at V Lounge in Yaletown. Our highest attended “Speed Networking”
event to date was hosted in a sleek and stylish private room, complete with signature cocktails and delicious canapés.
The event was structured to provide opportunities for CAs to meet and mingle during four-minute
intervals throughout the evening. The private room had tables arranged in a U-shape, with open
mingling in the middle.
This year, on arrival, each participant was randomly assigned either a “Historical Cost” or “Fair Value”
label. During the speed networking sessions, participants had the opportunity to chat one-on-one with
participants wearing the opposite label. At the end of each four-minute interval, participants with the
“Fair Value” label moved to the next seat on their right, while participants with the “Historical Cost”
label stayed seated. A countdown timer was displayed on the overhead TV monitors by each table.
During these formal speed networking sessions, each participant had the opportunity to speak with as
many as 18 other participants. During the open networking/mingling breaks, various savoury canapés
were served, and participants were able to replenish their drinks or order one of V Lounge’s signature
cocktails. A cheese and fruit platter was also served at each table during the formal networking sessions.
The feedback throughout the evening was very
positive, and the private room provided the
perfect ambience for mingling and networking
after the formal networking sessions were
concluded. Attendance at this event was a good
mix of first-time “speed networkers” and past
attendees from both public practice and industry.
ICABC Social Networking Group co-chairs
Allison Ning, CA, and Claudia McMahon,
CA, would like to thank the event organizers—
Jessica Vandenakker, CA; Ankur Merwaha,
CA; and Calvin Lee, CA—for helping to make
this first ICABC social networking event of the
season a huge success!
Julie Wong, CA, is a member of the ICABC
Social Networking Group Committee.
Left to right: Marion Ross, CA; Kathryn
Johnson, CA; and Aylene Welch, CA,
mingle during one of the breaks.
CASNG event subcommittee (l to r): Calvin Lee, CA; Ankur Merwaha, CA; Roberto Valente,
CA; Julie Wong, CA; Jessica Vandenakker, CA; Claudia McMahon, CA; Marlyn Won, CA; and
Allison Ning, CA.
Upcoming Events
Stay tuned for our upcoming “Live or Retro Hockey” event in February
2013, at the Granville Room in Vancouver, and our always popular
wine-tasting event in May 2013…
Speed networking in action!
47
Helping future CAs
Have you ever wondered how you could help students who are interested in
becoming members of our proud profession? Consider donating to the CA
Education Foundation (CAEF).
The CAEF is a registered charity established by the BC Institute of CAs to
support the endeavours of current and future CAs. One of the Foundation’s
important activities is to ensure that scholarships are available to students at
universities and colleges in BC.
Currently there are more than 30 scholarships available each year, all of which
go to students who’ve indicated their intentions to become CAs.
There are different ways to donate:
•General donations – Mail, fax, or drop off a donation at the ICABC’s
offices in downtown Vancouver.
• Planned giving – Include the CAEF in your will.
•Giving in memoriam – Make a gift in honour of a colleague or family
member.
•Matching scholarship program for CA firms and associations – Participate
in the CAEF’s matching program.
Please visit the CA Education Foundation’s website at www.caef.bc.ca for
more information.
48
In Memoriam: Gordon Elliott, FCA
W
e are sad to announce that ICABC past president Gordon
Elliott, FCA, passed away on November 4, 2012, at the age
of 82.
Gordon’s impressive career in public practice began in Vancouver, where
he qualified as a CA in 1954. Within three years of earning the designation,
he became a partner at Rudd and Goold. In 1958, he relocated to
Kamloops to open a satellite office for the newly named Rudd Goold &
Elliott. While living in the Interior over the next 12 years, he became very
involved in the area’s lumber and ranching industries; this included
becoming supervisor of operations for a large cattle ranch—a role he
ultimately held for more than 30 years.
Gordon returned to Vancouver in 1970 and became Rudd Goold &
Elliott’s managing partner. He oversaw the firm’s growth in BC and
Alberta over the next two years, and a merger with Glendinning, Jarrett & Co.
followed—creating the national accounting firm Jarrett, Goold & Elliott,
for which Gordon served as managing partner. Another merger followed
in 1981—this time with Price Waterhouse.
Well respected for his leadership skills, Gordon was asked to move to
Toronto in 1982 to serve as special assistant to the firm’s senior partner.
He and his wife Pat moved to Ontario, where they purchased acreage
and acquired some Highland cattle and miniature donkeys—an interest
stemming from their days in Kamloops.
In 1983, Gordon was appointed national deputy managing partner of
Price Waterhouse’s national office, making him directly responsible for
about one half of the firm’s offices across Canada. He continued to served
in this capacity until his retirement from public practice in 1992.
During his career, Gordon contributed to the CA profession at both the
provincial and national levels. In addition to serving on the BC Council
(including his term as president in 1973-1974), he served on the ICABC’s
Benevolent Fund and on several committees. Nationally, he served on the
CICA’s Board of Governors, the Long-Range Planning Committee, and
the Regulatory Legislation Subcommittee.
Wherever his career took him, Gordon made a point of volunteering. While living in Kamloops, he helped with various fundraising activities and served as
a director of Royal Inland Hospital. In both BC and Ontario, he volunteered his leadership to the Salvation Army. Similarly, he volunteered for almost 10
years with the National Miniature Donkey Association of North America (including serving as president in 1992 and 1993). A long-time supporter of 4H
Club activities, Gordon became involved with the Royal Agricultural Winter Fair while living in Ontario, and he was instrumental in creating a special
program that enabled BC kids to participate in the annual event; this program continued under his direction for a number of years after his return to BC.
After his retirement, Gordon relocated to Bowen Island, where he served on the board of directors of the local Volunteer Fire Department.
It was also on Bowen Island that Gordon began devoting considerable time to his family’s independent boatbuilding business, Campion Marine. He’d first
gotten involved with the company while practising in Kamloops, becoming a silent investor when the company was still a start-up. After retirement, he took
on a more active role, and he and his family members eventually became the company’s majority shareholders.
Gordon’s impressive achievements in both the professional and volunteer realms garnered him an election to the BC Fellowship in 1974, and an ICABC
Lifetime Achievement Award in 2008.
A memorial service to celebrate his life was held in North Vancouver on November 9, 2012. Gordon is survived by his wife Pat and their large, close-knit
family. We offer them our sincerest condolences.
Photograph by Kent Kallberg of Kent Kallberg Studios Ltd.
49
An Encore of Success: BC CAs Receive
Diamond Jubilee Medal
By Vanessa Woznow
I
n the September 2012 issue of the
magazine, we announced that four
BC members had been named as
recipients of the Queen’s Diamond
Jubilee Medal in recognition of their
tremendous achievements in the professional realm and in the community
at large. After the article was published,
we were thrilled to discover that the
following BC members had also been
chosen to receive the Diamond Jubilee
Medal: Barbara (Barb) Carle-Thiesson,
FCA; Divyesh (Dave) Gadhia, CA; George
Morfitt, FCA; and Hari Varshney, FCA.
Barb and George received their
medals at the ICABC’s Past Presidents’
Dinner, held in October 2012 at the
Vancouver Club. Dave and Hari received their medals from the Hon.
Wally Oppal, Q.C., at a dinner event
hosted by the Association of South
Asian Professionals in September 2012
at the Four Seasons Hotel in Vancouver.
50
ICABC President Gord Holloway, FCA, and CICA Board Chair Shelley Brown, FCA, present
Barb Carle-Thiesson, FCA, ICD.D (centre), with the Diamond Jubilee Medal.
Barbara (Barb) Carle-Thiesson, FCA, ICD.D
Barb is a partner with MNP in Nanaimo, BC, having recently merged her former firm Tyce CarleThiesson—where she was a founding member and partner—with MNP in December 2012. She brings
more than 30 years of accounting excellence to her work with clients, students, and co-workers at her
new office.
Barb is deeply committed to the accounting profession, and has been actively contributing to its
governance for decades. She has served as a member and chair of numerous committees for the BC,
Alberta, and Canadian institutes; these include, but are not limited to: Alberta’s Public Practice and
Disciplinary committees; BC’s Discipline Tribunal; and BC’s Taxation, Strategic Planning, and
Standards Review committees. In addition, she served as a member and secretary on the Alberta
Institute Council, and was the president of the BC Institute Council from 2004 to 2005.
Currently, Barb is a western representative on the board of the Canadian Institute of Chartered
Accountants (CICA) and chair of the inaugural Internal Audit Committee of the Office of the Auditor
General of BC. She previously served for three years on the CICA Board of Evaluators, and for two
years on the Accounting Standards Oversight Council.
Barb also has a passion for education, which is reflected in her extensive volunteerism. Until recently,
she served as vice-chair of the board of governors of Vancouver Island University, and as chair of the
university’s Finance and Audit committees. She has also served as a board member and Audit
Committee chair of both Malaspina High School and Malaspina International High School, and cochaired the Nanaimo School District’s Action Plan Committee.
Barb’s volunteerism in the community also includes serving as a board member and treasurer of the
Nanaimo & District Hospital Foundation, and as treasurer of St. Paul’s United Church in Grande
Prairie, Alberta.
An avid curler, Barb served as president and as an executive member of the Nanaimo Curling Club
for many years, and served as treasurer of the Peace Ladies Curling Association in Alberta.
In recognition of her myriad achievements and contributions, Barb was elected to the BC Fellowship
in 2000, and to Alberta’s Fellowship the following year.
With regard to the Queen’s Diamond Jubilee Medal, she says: “To receive this award was both a surprise
and shock—albeit a wonderful surprise and shock! It is truly an honour to be recognized in this way.”
Divyesh (Dave) Gadhia, CA
Dave is the president of Atiga Investment Inc., a
private investment management company that
invests primarily in organic food businesses. He
is also is the co-CEO of GBE Chilliwack
Heirloom Organic Farm Ltd. and the chair of
SPUD.com, the largest organic food delivery
company in Western Canada.
Dave is also the former CEO and vice-chair of
Gateway Casinos & Entertainment Inc., having
worked with the public company from its
inception in 1992 until 2010. Under his
leadership, Gateway grew to become one of the
largest casino operators in Canada, with nine
casinos and more than 3,400 employees. During
his tenure with Gateway, he also served for five
years as a director of the Canadian Gaming
Association.
Dave Gadhia, CA (right), receives the Diamond Jubilee Medal from the Hon. Wally Oppal, Q.C.
A strong supporter of health-care initiatives,
Dave currently serves as a trustee of the Burnaby
Hospital Foundation and as chair of the Foundation’s Governance Committee. He also serves as a cabinet member of the BC Children’s Hospital Foundation’s
“Night of Miracles” fundraiser, and is a former director of the St. Paul’s Hospital Foundation. His contributions have extended to the Alzheimer’s Society of
BC as well—in 2002, he and his wife climbed Mount Kilimanjaro as members of the Society’s “Ascent for Alzheimer’s” fundraising initiative.
His volunteerism outside the realm of health care currently includes serving as a director and member of Vancouver Opera’s executive committee.
Dave was named to Business in Vancouver’s Top 40 Under 40 list in 2000, and he received the Industry Leadership and Outstanding Contribution Award
from the Canadian Gaming Association in 2009.
“I’m honoured to receive this award,” he says of the Diamond Jubilee Medal. “The recognition is a testament to the growth in the number of South Asian
professionals in BC over the past decade, and their many contributions to the communities in which they serve.”
George Morfitt, FCA
George is the chair of WorkSafeBC. He
previously served for 20 years as the executive
vice-president of the Diamond Group of
Companies in Vancouver, and for two terms as
the auditor general of BC. During his tenure as
auditor general, he oversaw the implementation
of leading-edge governance and accountability
initiatives in the public sector, and set new
standards for auditor general offices across the
country.
Until recently, George also held an adjunct
professorship with the University of Victoria’s
School of Public Administration (2000-2012).
Past roles also include serving as chair of both
the Universities Council of BC and the board of
governors of the University of BC, and as a
director of the Motor Vehicle Sales Authority of
Gord Holloway, FCA, and Shelley Brown, FCA, present George Morfitt, FCA (centre), with
BC, the BC Safety Authority, and the Health
the Diamond Jubilee Medal.
Council of Canada.
Highly active in the CA profession at the provincial and national levels, George’s contributions include serving as president of the BC Institute Council, as
a governor of the Canadian Comprehensive Auditing Foundation, and as a member of many CICA committees.
George has also provided leadership in the community at large, serving as chair of Canadian Sport Centre Pacific and holding directorships with the Greater
Victoria Down Syndrome Society and the Victoria Gilbert & Sullivan Society.
His professional and volunteer accomplishments have earned him numerous accolades, including: an election to the BC Sports Hall of Fame in 1988, in
recognition of his accomplishments as an athlete and dedicated sports administrator; a Lifetime Achievement Award from the ICABC in 2002; and the
51
The ICABC
Member Recognition Program
Some of our 2011/2012 award winners, photographed by Kent Kallberg Studios Ltd.
Do you know a CA who has gone the extra mile in the community, made an exemplary contribution
to the profession, or achieved outstanding success early in his or her career? Acknowledge their
achievements by nominating them for an ICABC award!
You can nominate a colleague for:
Fellowship (FCA)
Lifetime Achievement
The Honorary CA Designation
Early Achievement
Community Service
Ritchie McCloy Award
Nomination deadlines:
•Fellowship, Lifetime Achievement, Honorary CA: Now closed
• Early Achievement: January 31, 2013
• Community Service: January 31, 2013
• Ritchie McCloy Award: January 31, 2013
Nomination forms
Forms are available on the Institute website at www.ica.bc.ca under
Member Centre/Forms and Dues/Member Recognition/Nomination Forms.
52
Queen’s Silver and Golden Jubilee medals.
“It is indeed an honour and a privilege to be a recipient of the Diamond Jubilee Medal,” says George. “I thank both the BC and Canadian Institutes for
nominating me for the award. I have thoroughly enjoyed my many years as a CA. The designation has served as a springboard to my active participation in
a variety of public and private sector arenas, and I look forward to continuing to participate in my profession and community for some time to come.”
Hari Varshney, FCA
Hari is the founder of Varshney Capital Corp., a
Vancouver-based merchant banking, venture
capital, and corporate advisory services firm that
specializes in public venture capital.
A dedicated philanthropist, Hari is a founding
member of the St. Paul’s Hospital Foundation
Governors Council, and a past chair of the
hospital’s Foundation. He has also served as a
director of Providence Health Care, the College
of Denturists of BC, the Western Institute for
the Deaf, and several other charitable organizations in the health-care sector.
Equally passionate about education, Hari is
currently a member of the India Advisory
Council of UBC, and a member of Simon Fraser
University’s India Advisory Council, which
supports SFU’s strategic initiatives in India and
its continued engagement with the province’s
Hari Varshney, FCA (right), receives the Diamond Jubilee Medal from the Hon. Wally Oppal, Q.C.
Indo-Canadian community.
Keenly focused on fundraising, Hari is a member of president Stephen Toope’s Campaign Cabinet for UBC, a fundraising initiative that aims to raise $1.5
billion for campus development and alumni activities. He is also a member of UBC’s President’s Circle for major donors, having donated $1 million to the
Sauder School of Business to establish the Hari B. Varshney Business Career Centre. In addition, he and his wife Madhu have each established undergraduate
and graduate scholarships at UBC in an effort to increase access to business management education.
Hari also helps to raise funds for the community through Varshney Capital Corp.’s own fundraiser—the Varshney Capital Charity Golf Classic—which
has raised over $1 million in support of local children’s charities since its inception in 1997.
Hari’s wide-ranging accomplishments have garnered him considerable recognition, including an election to the ICABC Fellowship in 2004, a Volunteer
Recognition Award from Volunteer Vancouver in 2005, and a British Columbia Community Achievement Award in 2006. In 2009, he was named to
Canadian Immigrant’s inaugural Top 25 Canadian Immigrants Awards.
“It was an honour to receive the Queen’s Diamond Jubilee Medal,” says Hari of this latest distinction. “My family and I have always believed in giving back
to the community without expecting any rewards. However, to be recognized in this way is very satisfying!”
Vanessa Woznow is the manager of public affairs for the ICABC.
About the Queen’s Diamond Jubilee Medal
June 2012 marked the 60th anniversary of Her Majesty Queen
Elizabeth II’s ascension to the English throne. In honour of this
occasion, the Governor General of Canada created the Queen’s
Diamond Jubilee Medal. This award celebrates HRM’s Diamond
Jubilee and pays tribute to individual Canadians whose
achievements have benefited their fellow citizens, their
communities, their organizations, and the country.
53
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55
Tax Traps & Tips continued from page 37
Example 2: Post-mortem planning
Dad, as the founder of Opco, dies holding all the issued and outstanding shares of Opco. Opco has a FMV of $1 million on Dad’s death, and Dad’s ACB in
his Opco shares equals PUC of $100. Dad will be deemed to have disposed of his Opco shares for $1 million immediately before his death. Dad’s estate will
claim his full CGE of $750,000 on this deemed disposition, thereby reducing Dad’s capital gain on death to $249,900.
The estate, which will be deemed to have acquired the Opco shares at an ACB of $1 million, would like to access this “bumped-up” ACB. The estate incorporates new Holdco with nominal ACB and PUC, then sells the Opco shares to Holdco for a promissory note of $1 million. The intention is to allow the
estate to extract funds from Opco—first as a tax-free inter-corporate dividend paid to Holdco; then as a tax-free repayment of the promissory note by
Holdco to the estate. All taxpayers involved are residents of Canada.
In this example, as a result of the application of section 84.1, the estate will be deemed to have received a dividend equal to $750,000 ($1 million non-share
consideration less $250,000, being the greater of PUC and “hard ACB”). The estate will also realize a capital loss of $750,000 ($250,000 being the actual
proceeds of $1 million reduced by the deemed dividend of $750,000, less $1 million ACB). However, this capital loss will be suspended in the hands of the
estate until such time that the Opco shares are sold outside the affiliated group.8 As no Holdco shares were issued as consideration for the Opco shares, no
PUC reduction will apply to the Holdco shares.
In this example, restructuring that was intended to provide the estate with tax-free access to the high ACB, instead resulted in a deemed dividend of
$750,000 to the estate.
Closing comments
As these two basic examples illustrate, section 84.1 can create significant adverse tax implications for the unwary. Therefore, where a non-corporate taxpayer
is planning to sell shares to a corporation, consideration should be given to the potential application and implications of section 84.1.
Sindy Wong, CA, is a senior manager in tax at Smythe Ratcliffe LLP in Vancouver.
Subsection 40(3.4).
8
Financial Facts & Money Matters continued from page 41
2.Taking a long-term approach: Many assets that exhibit high short-term volatility have much less long-term volatility. Public traded equities are a good
example. For the 42 years ended December 31, 2011, calendar year returns on Canadian stocks (as measured by the S&P TSX Composite Index) ranged
from a low of -33.0% in 2008 to a high of +44.8% in 1979. However, five-year annualized returns on Canadian stocks over this same time period ranged
from a low of -0.3% in 1974 to a high of +24.6% in 1980.1 Clearly, time has the ability to smooth financial returns on more volatile assets by replacing
short-term price movements with long-term trends.
3.Managing your capital: One of the simplest ways to avoid a permanent loss of capital is to avoid being forced to sell an asset at a depressed valuation.
For the average client, this can be achieved by:
a. Keeping sufficient cash on hand to fund expenditures while asset prices are depressed; or
b. Having access to credit to fund expenditures while asset prices are depressed.
Next: Optimizing an asset portfolio…
Understanding return and risk expectations is key to building a strategic mix of liquid securities, real estate, business assets, and insurance assets that can fund
your lifestyle and legacy goals. In my next article, I’ll review strategies to optimize return and risk across client assets.
Tanner Philp, CA, CIM, is an investment counsellor at RBC PH&N Investment Counsel in Vancouver, where he is responsible for providing wealth and discretionary
investment management solutions to private clients.
Source: RBC Wealth Management.
1
56
For the Profession continued from page 58
Auditor Independence Working Group (IWG):
The IWG’s discussion paper, which was issued in September 2012, evaluated various proposals to address concerns that audit firms could develop potentially
close relationships with clients—relationships that could affect the firm’s independence and, ultimately, auditors’ ability to exercise professional skepticism.3
The IWG noted that this “institutional familiarity threat” could grow as the audit firm tenure increases; however, the IWG acknowledged that this threat is
mitigated by current mandatory rotation rules for audit partners.
The IWG looked at two primary issues: 1) the appointment and rotation of the auditor, and 2) the services that the auditor should be permitted to provide.
In evaluating the first issue, the IWG considered the merits of mandatory audit firm rotation, mandatory audit tendering, and mandatory comprehensive
audit firm review by the audit committee. Having considered these three alternatives, the IWG now recommends mandatory comprehensive review, saying
that it would allow both the audit committee and the auditor to focus more on audit quality while still preserving the use of professional judgement in the
appointment of the auditor. It is proposed that the audit committee would conduct the comprehensive review at least once every five years, in addition to
continuing with annual auditor assessments to support its re-appointment decision.
With regard to the second issue, the IWG supports prohibiting audit firms from providing personal tax services for client staff in a financial reporting
oversight role, and providing advice on aggressive and confidential tax transactions. The IWG recommends further study on whether non-audit services
performed on a contingency fee basis should also be prohibited. Further, the IWG does not support proposals for audit-only firms or joint audits.
Audit Committees Working Group (ACWG)
The ACWG is examining how audit committees can enhance the external auditor’s effectiveness by providing enhanced oversight of the external auditor’s
work, and through the implementation of mandatory comprehensive audit firm review as mentioned above.
The ACWG’s discussion paper is expected to provide a framework for audit committees to:
•Create the right audit environment by setting clear expectations and encouraging effective working relationships among those in the governance process;
•Review and approve the audit strategy and plan, which will require more communication between the auditor and the audit committee members with
regard to major financial reporting risks, how to respond to these risks, critical audit strategy choices (such as materiality and control reliance), and the
appropriateness of fees—just to name a few;
•Monitor the execution of the audit plan; and
•Evaluate the external auditor’s performance.
The ACWG discussion paper is expected to be released in winter 2012 for stakeholder comment.
BC stakeholder input
These proposals could have a significant impact on the audit profession. Recognizing this potential impact, the BC Institute conducted surveys in the summer
and fall of 2012 to gather feedback from members who participate in the various ICABC forums. On behalf of these forum members, the Institute submitted
comment letters to the EAQ working groups.
These letters, as well as the various discussion papers, are posted on the CICA’s website at www.cica.ca/enhancing-audit-quality-canadian-perspective/
item64401.aspx (alternatively, go to the homepage at www.cica.ca and click on the “Enhancing Audit Quality” icon). If you would like to be part of the
stakeholder input process for the EAQ’s discussion paper on the role of audit committees, please contact me at [email protected].
The EAQ’s final report is expected in early spring 2013.
David Chiang, CA, CIA, CMC, is the senior director of Member Services at the ICABC.
Applicable for listed companies only.
3
57
For the Profession
Enhancing Audit
Quality: A Project
Update
“These proposals could have a significant
impact on the audit profession.”
By David Chiang, CA, CIA, CMC
F
or many Canadians, the 2008 financial
crisis may seem like a distant memory.
The Canadian banking system withstood
the financial storm relatively well, and Canada
emerged relatively unscathed compared to other
countries—particularly those in Europe. Some
of these European countries continue to be
affected by the financial crisis, facing high unemployment rates and drastic austerity measures.
In the wake of the financial crisis, many policymakers and regulators around the world began
to question the role of auditors in this context.
While not attributing blame to auditors for the
crisis itself, many wondered why the auditors
of the financial institutions that eventually did
fail had not raised “red flags” about impending
dangers.
These concerns prompted the launch of various international initiatives aimed at improving
audit quality. In Canada, the CICA and the
Canadian Public Accountability Board (CPAB)
collaborated to create the Enhancing Audit
Quality (EAQ) initiative in June 2012. The
objective of the EAQ initiative is to engage
Canadian stakeholders in discussions on various
audit reform proposals that are also being
discussed globally.
David Brown, a leading Canadian securities
lawyer and former chair of the Ontario Securities
Commission, was appointed chair of the EAQ
steering group, which is tasked with ensuring a
transparent consultation process. In a recent article in the Financial Post, Brown said: “Canadians
need to pay attention to international discussions
about audit quality that have the potential to
affect the sound financial system that we have
worked so hard to build.” He continued, “... the
goal of the (EAQ initiative) is to provide a final
report that will provide useful input to Canadian
standard setters, regulators and policy makers
and those involved in ensuring Canada’s voice is
heard in global discussions.”1
58
The EAQ steering group is also responsible for providing oversight to three working groups:
the Auditor Reporting Working Group, the Auditor Independence Working Group, and the Audit
Committees Working Group.
Given that the EAQ initiative is midway through its course, now is a good time to review the status
of these three groups.
Auditor Reporting Working Group (ARWG)
In a discussion paper issued in August 2012, the ARWG examined various proposals to improve auditor
reporting by narrowing two gaps that currently exist: 1) the “expectations gap” between what users
expect from an audit and what an audit actually entails; and 2) the “information gap” between the
information users believe the auditor should provide and the information the auditor currently does
provide through the standard audit report.
In summary, the ARWG supports:
•The inclusion of auditor commentary in the auditor’s report2 because it can provide users with
pertinent information. This change might help users better understand the significance of audit
matters, and may result in improved financial statement disclosures.
•Including a description of the auditor’s responsibility for other information in the auditor’s report.
•An examination of whether Canadian requirements for auditors of financial institutions reporting
to prudential regulators could be enhanced to better protect the public interest.
•Proposals to clarify the responsibilities of the auditor, management, and the audit committee to
reduce the expectations gap.
•Placing the opinion paragraph at the beginning of the auditor’s report.
The ARWG does not support:
•Adding information on going concern to the auditor’s report. It was thought that this addition
would be open to misinterpretation, might extend the auditor’s responsibilities beyond their
capabilities, and unfairly extend the auditor’s responsibilities into areas that are the purview of
management and those charged with governance.
•Disclosing the names of other auditors participating in the audit.
Finally, the ARWG did not reach consensus on the disclosure of the engagement partner’s name in
the auditor’s report.
David Brown, “Why Didn’t the Auditor Dog Bark in 2008?” Financial Post, October 18, 2012.
Applicable for publicly accountable enterprises, NPOs, pension plans and benefit plans, and public
sector entities.
1
2
We are pleased to acknowledge our successful 2012 Uniform Evaluation (UFE) writers!
Our partners and entire team would like to congratulate our next generation of future leaders.
Standing (L-R): Kush Kaushal, Tianyi Chen, Meghan Henderson, Iain Henderson, Kevin Ma, Jean Paul Booyens,
reasons to
CELEBRATE!
Winnie Lee, Kevin Fung, Desmond Young & Dario Bon.
10
Vancouver Office
Phone: 604.714.3600 | 11th floor, 1050 West Pender St
www.manningelliott.com
Accounting | Auditing | Taxation | Business Advisory
Abbotsford Office
Phone: 604.557.5750 | Suite 201, 2001 McCallum Rd
[email protected]
59
YOUR TEAM OF EXPERTS IN
Business Family Succession | Employee Benefits | Structured Settlements
Insurance & Retirement Solutions | Private Investment Management
Peter G. Lamb
Garry Zlotnik
Martin Zlotnik
Mark A. Zlotnik
P.M. (Pip) Steele
Robert E. Olson
b.a., clu, tep,
epc, csa
f.c.a., b.comm.,
cfp, clu, ch.f.c.
b.comm., ll.b
c.a., clu
b.comm., cfp,
clu, ch.f.c.
b.a.
H.G. (Howie)
Young
John V.R. Wark
Ross Gibson
Ken McNaughton
W.A. (Bill) Finlay
a.c.i.i., clu, tep
b.comm., c.a, cfp,
clu, ch.f.c.
dip.t
cfp, clu, ch.f.c.,
rhu, csa
b.a., c.a.
Michael A. Healey
Heidi U. Pullem
Matthew W.P.
Anthony
Aeronn Zlotnik
Nancy Pereira
b.a.
gba
Amin E. Jamal
cfp
Bruce K. Berger
b.a., cfp, clu
b.a., cfp, clu, chs
cfp, cdfa
Philip Levinson
John McKeachie
c.a.
b.a., cfp
Jack Shaffer
Dave Sumra
cfp, clu, ch.f.c.
cfp, pfp, MSc.
For more information, contact our Associates at:
Vancouver 1200 Park Place, 666 Burrard Street Vancouver, BC V6C 2X8
Tel: 604.688.7208 Fax: 604.688.7268 Toll Free: 1.800.663.1499
Victoria 3711 Grange Road Victoria, BC V8Z 4S9
Tel: 250.727.3445 Fax: 250.479.9716 Toll Free: 1.800.906.5666
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Celebrating UFE Success!

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