Unification of
the Accounting Profession
The Way Forward
Highlights and Frequently Asked Questions
Unification of the Accounting Profession
The Proposed Way Forward
Across the country, Certified General Accountants (CGAs),
Certified Management Accountants (CMAs) and Chartered
Accountants (CAs) are at various stages of unifying the accounting
profession under the Chartered Professional Accountant (CPA)
designation.
movement that represents all of Canada’s more than 185,000
designated accountants.
News release
Next Steps
News and Updates in Ontario:
June 23, 2014 – The Chartered Professional Accountants of
Ontario and the Certified General Accountants of Ontario
have signed the Second Unification Agreement in support of
unification of the accounting profession in Ontario. The two
Unification Agreements (CPA Ontario and CMA Ontario signed
the First Unification Agreement in April 2014) outline the process
to unify the functions and operations of the three bodies while
respecting the statutory duties of each.
Together with our partners at the national and provincial levels,
our combined 80,000-plus members are now part of a unification
2
• Chartered
•
•
Professional Accountants Act, which will create
a renewed CPA Ontario combining the members, staff and
resources of thethree legacy bodies.
CPA Ontario will seek a Chartered Professional Accountants Act
from the Province of Ontario as soon as possible.
CGAs’ member certificates will be issued this summer.
cga-ontario.org/UnificationVote.aspx
June 18, 2014 – The Certified General Accountants of Ontario and
the Chartered Professional Accountants of Ontario voted in support
of the Unification Agreement – Key Terms that outlined how we
proposed to fully unite the accounting profession in Ontario.
The case for unification is strong
Unification among the three regulated Canadian designations –
Certified General Accountant, Certified Management Accountant
and Chartered Accountant – has been achieved or is in progress
nationally and in every Canadian province and territory. It is time
to move forward in Ontario.
Know the facts:
• All
•
•
If you haven’t already, we encourage you to become informed by
reading the Unification Agreement – Key Terms.
CGA Ontario’s board and CPA Ontario’s council support completing
the unification process in this province. Each is satisfied that
appropriate processes have been implemented to ensure a fair
and equitable transition for the members of both bodies.
•
•
•
•
•
•
Canadian accounting bodies – representing 185,000
accountants – are committed to unification.
Today, all Canadian provinces are in various stages of unification
of the profession under the Chartered Professional Accountant
(CPA) designation.
All members of CMA Ontario became members of CPA Ontario
in April 2014.
Ontario will be the largest provincial accounting body with more
than 80,000 members.
Members retain the right to keep their legacy designations
(CPA, CA or CPA, CMA or CPA, CGA), forever if they so choose.
Tagging CPA with the legacy designation is mandatory for all
CPAs for ten years.
The new education program is more flexible but with the same
high standards as the legacy programs.
A unified CPA Ontario will have a single set of rigorous
standards for qualification and professional conduct.
The Chartered Professional Accountant designation will
become the pre-eminent, internationally recognized Canadian
accounting designation.
Together we will build a strong, unified accounting profession in
Ontario and across Canada.
3
Unification of the accounting profession
brings change for the better…
For the Profession
• Greater influence
• Increased global competition
• A profession for the best and the brightest
For the Public
• Uniformly high and consistent ethical and practice standards
• Promoting the CPA designation
• Less marketplace confusion
For Members
• Compete on a level playing field
• Protection of legacy rights
• Retention of legacy designations
• Enhanced professional development resources
and member benefits
You may send your questions or comments to us by email
at ceo@cga-ontario.org.
Key Milestones
February 2014 – CGA Ontario, CMA Ontario and CPA Ontario
(ICAO) sign MOU
CGA Ontario, CMA Ontario and CPA Ontario (ICAO) signed a
Memorandum of Understanding (MOU) in support of unification of
the accounting profession in Ontario. All parties were committed
to exercising appropriate due diligence while working together to
arrive at this historic agreement.
4
March 2014 – CPA Ontario and CMA Ontario Finalize First
Unification Agreement
CPA Ontario and CMA Ontario finalize a comprehensive
unification agreement (the First Unification Agreement), further to
the MOU and member vote which occurred in 2013.
April 2014 – CMAs Become Members of CPA Ontario
As per the First Unification Agreement, Ontario CMAs become
members of CPA Ontario. Today they are CPA CMAs.
April 2014 – CPA Ontario and CGA Ontario Finalize Second
Unification Agreement
CPA Ontario and CGA Ontario agree on the terms of a second
comprehensive unification agreement.
May 2014 – CGAs, CPA, CAs and CPA, CMAs VOTE
Members of CGA Ontario and CPA Ontario (following its
unification with CMA Ontario) receive the Unification Agreement
– Key Terms, and are encouraged to vote on this proposal
between May 30 – June 16, 2014.
June 2014 – Members of CGA Ontario and CPA Ontario voted in
support of unification of the accounting profession.
Next Steps
Second Unification Agreement will be signed June 23,
2014, following which CGAs will become members of CPA
Ontario on July 2, 2014.
• The
• The
•
•
leadership teams of CPA Ontario and CGA Ontario are
now working on a unification agreement that will unite the
organizations. While that is underway, CPA Ontario, CMA
Ontario and CGA Ontario will continue to work to merge their
operations to achieve increased efficiency and effectiveness.
Final unification will come with the introduction of a new
Chartered Professional Accountants Act, which will create
a renewed CPA Ontario combining the members, staff and
resources of the ICAO (CPA Ontario), CMA Ontario and
CGA Ontario.
We will ask the government for a new Act at the earliest
possible time but likely will not be on the legislative agenda
until the fall of 2014 and possibly later.
Your Questions
Did the vote satisfy the requirements set out to allow
unification? Yes. CPA Ontario required 50%+one to achieve
unification and 64% of the membership voted yes with an
additional 10% opting to let CPA Ontario’s council decide. CGA
Ontario bylaws required that two-thirds of the members voting
must vote in support and 54% of members voted with 97% in
support.
When will I get my CPA certificate / What is my designation
now? Shortly after July 2, 2014, CGA Ontario will begin the
process of issuing CGAs their new CPA certificates and with that
will be details pertaining to your designation.
This process will take approximately four to six weeks.
Members must use the CPA designation in conjunction with their
legacy designation as follows:
Until November 2022:
CPA, CA
• Name, CPA, CGA
• Name, CPA, CMA
• Name,
After November 2022:
• Name, CPA
or
• Name, CPA, CA
• Name, CPA, CGA
• Name, CPA, CMA
At which time members have either option. Use of a legacy
designation on its own will not be permitted.
Further to that:
• Retired CGAs become retired CPA, CGAs
• FCGAs become FCPA, FCGA
How can I stay informed? CGA Ontario has a number of
communication outlets to keep you up-to-date on unification
activity, including Net Value, Statements Magazine and
Statements Online.
There is also a web page dedicated to the Unification Agreement:
cga-ontario.org/Unificationvote.aspx.
5
Who can I speak to for further information? If you have any
questions or comments, please send them to ceo@cga-ontario.org.
Why unify? Unification benefits the accounting profession, the
public and the members of all three bodies. It is a strategic
response to our rapidly evolving environment and the matters
facing the accounting profession in Canada. Currently, designated
accountants work in the same practice areas but remain subject
to different qualification processes, codes of conduct, inspection
and disciplinary regimes, under 40 different governing bodies.
A fully unified Canadian profession will reduce the number of
governing bodies, simplify operations and governance, and
reduce confusion in the marketplace. It will also allow us to more
effectively represent member interests and issues affecting the
accounting profession.
Benefits of a unified profession in Ontario:
• One strong brand – one strong designation
• One strong voice of leadership and influence
• Increased global competitive advantage
• Uniformly high and consistent ethical and practice standards
• Less public and marketplace confusion
• More effective use of resources and streamlined administration
Unification of the accounting profession brings change for the
better…
For the Profession
• Greater influence
• A made-in-Canada solution to increased global competition
• A profession for the best and the brightest
6
For the Public
• Uniformly high and consistent ethical and practice standards
• Promoting the CPA designation
• Less marketplace confusion
For Members
• Compete on a level playing field
• Protection of legacy rights
• Retention of legacy designations
• Enhanced professional development resources
and member benefits
What is happening in the other provinces? All Canadian
provinces are in various stages of unification of the profession
under the Chartered Professional Accountant (CPA) designation.
What took so long? The negotiations between CGA Ontario, CMA
Ontario and CPA Ontario have taken time because this has been
a complex process. Many issues needed to be addressed before a
two-party unification agreement, negotiated between CMA Ontario
and CPA Ontario, could be expanded to address the needs of all
three accounting bodies.
All parties are committed to exercising appropriate due diligence
while working together to unite the accounting profession in Ontario.
Are CGAs at a disadvantage because we entered discussions last?
No. There is strong momentum and commitment to a unified
accounting profession in Ontario among the three accounting bodies.
What role does the board of directors play in unification
discussions? The board is kept fully informed as unification
discussions progress.
Did CGA Canada play a role in Ontario’s discussions? No. The
accounting profession is regulated at the provincial level, so all
provincial bodies own their discussions. CGA Canada has never
been involved in Ontario’s unification discussions. Its agreement
with CPA Canada is completely separate.
Was CGA Ontario’s unification agreement different than the
agreements of other provinces in Canada? The unification
agreement that will be signed by CGA Ontario and CPA Ontario
will be unique to the needs and concerns of members in Ontario.
All of the provincial agreements are built upon the eight guiding
principles.
Why are there two unification agreements? What is the major
difference between them? The First Unification Agreement is
between CMA Ontario and CPA Ontario; the two bodies signed
a memorandum of understanding in April 2013, and have held
member votes to approve unification of their organizations.
The Second Unification Agreement between CPA Ontario (which
now includes CMA Ontario) and CGA Ontario embodies the same
terms as the First Unification Agreement between CPA Ontario
and CMA Ontario.
Will CGAs see the final unification agreement?
We have agreed to provide the same documentation as is
being provided by the other parties to the agreement to their
memberships. All parties worked to ensure that the key terms of the
agreement were adequately disclosed in the proposal circulated.
What is the status of our discussions with ACCA? As a result
of our renewed participation in unification talks, CGA Ontario
withdrew from discussions with the Association of Chartered
Certified Accountants (ACCA) in October 2013. At this time we
are committed to working with the other accounting bodies to
unify the profession in Ontario.
What happens to me if I earned my CGA designation through
the ACCA MRA? Existing mutual recognition agreements (MRAs)
will not be terminated without cause prior to expiration.
How has this uncertainty impacted student enrolment? CGA
Ontario’s student enrolment has remained strong. Students in the
CGA program who do not complete the program by September
2015, will have the opportunity to transition into the CPA program.
CGA Ontario is committed to supporting students in achieving a
professional accounting designation.
Does the CPA designation in Canada have any connection to
other CPA designations around the world? No. The Canadian
Chartered Professional Accountant (CPA) designation has no
affiliation with other CPA designations. It is a completely different
program and has its own certification.
7
How can we be sure that the enforceable commitments
identified in the Second Unification Agreement will be upheld
long-term… years down the road? Contractual and enforceable
agreements that protect the professional rights of all members
within a new accounting body are included in the Unification
Agreement and the government will be asked to enshrine these
principles in legislation.
Will the vote for CPA Ontario members be binding or an
advisory? The vote for CPA Ontario members will be advisory.
Will there be any changes to our mutually recognized
agreements? As per the eight guiding principles for unification,
existing mutual recognition agreements (MRAs) will not be
terminated without cause prior to expiration.
Will I still be able get my licence in public accounting if there
is unification in Ontario? Yes; if unification of the accounting
profession takes place in Ontario, there will be opportunities to
pursue a career as a licensed public accountant through CPA Ontario.
Can I keep my licence to practise public accounting? Yes.
Will CPA Ontario honour life members?
Yes; CGAs who are Life Members will become CPA, CGAs Life
Members.
Will CGAs have to take additional courses in the CPA program
to receive their CPA designation? No; CGAs will not be required
to take additional courses to receive their CPA designation.
Will those members who became CGAs prior to the degree
requirement need to get one to become CPAs? No; CGAs who
don’t currently have degrees will not be required to earn one to
receive the CPA designation.
Can someone from another province use the CPA designation
in Ontario if their provincial accounting body has already
unified? The CPA designation is regulated provincially. Today, in
order to use the CPA designation in Ontario, a person must be a
member of CPA Ontario.
8
Will CPA Ontario offer professional development
opportunities? Professional development will be offered by
CPA Ontario to support members’ ongoing education and PD
requirements.
Will we have to fulfil the same professional development
requirements? Continuing professional development
requirements will remain mandatory. The legacy programs
currently comply with international standards and will be
harmonized over time.
Will CGA professional corporations become CPA professional
corporations? Although Ontario CGAs will automatically become
members of CPA Ontario, CGA practices registered with CGA
Ontario will not automatically be registered as CPA firms. There
will be a transition period before the CGA firms are required to
register with CPA Ontario. Additional information will be provided
to practitioners and firms.
Will CGA Ontario have any input in the development of
provincial legislation? CPA Ontario will contribute to the
development of provincial legislation as CGA Ontario has done in
the past. What is presented and approved will ultimately be up to
the government.
Am I allowed to take maternity leave with CPA? What are
the bylaws surrounding it? There is a parental leave policy
that provides for a 50% reduction of the Annual Membership
Dues for Members who are parenting full-time. To be eligible,
a member must
What will the new board look like? Will CGAs have equal
representation? The new CPA Ontario will be overseen by a
governing council that will include representatives from each of the
legacy accounting bodies, based on their relative sizes at unification.
1. have left full-time employment to provide care for a child who
is 6 years of age or less as of April 1st of the year to which the
dues are applicable or to provide care to a child who is over 6
years of age and who has a disability or illness; AND
Public representatives will continue to be appointed to the
governing council by the government of Ontario.
2. have gross annual income from all sources (including EI,
investments, etc.) that is less than $32,364; AND
How will unification affect retired or retiring CGAs? Retired
CGAs will become retired CPA, CGAs.
3. have net equity that is less than $200,000.
When will member dues be harmonized? Over the next five
years, member dues will be harmonized at the national and
provincial levels.
A member must apply for a reduction each year and provide the
required supporting documentation. Each request is reviewed by
the Registrar and determined in accordance with the requirements
set out in the policy.
What does that mean for retired CGAs? Today, retired CGAs do
not pay member dues; however, retired CAs and CMAs do pay a
nominal fee. Member dues will be harmonized over time but we
don’t have information on how that may impact retired members.
For 2014-15, retired CGAs will not pay a fee.
9
Will unification of the accounting profession impact my
member dues? Member dues would be harmonized over time.
2014-15 Member Dues:
May 1, 2014, marks the beginning of 2014-15 fiscal and the date
that member dues are payable. You will receive an email on May
5, 2014, with directions for paying your annual dues online.
This fee payment which is due now to CGA Ontario will be
recognized by CPA Ontario if the vote is in support of unification.
Unification of the profession in Ontario is one significant initiative
undertaken on your behalf this fiscal. In addition, your dues
support the important work we do on behalf of Ontario’s more
than 22,500 CGAs to:
• Protect
the public interest.
a leading voice in the profession.
Achieve professional equity.
Grow membership.
Provide relevant professional development.
Build an image of influence and leadership.
• Become
•
•
•
•
We also offer services and benefits to support you in your
professional and career development. As unification of the
accounting profession progresses, the benefits to professionally
designated accountants in Ontario are expected to grow.
10
CGAs can log in to their account on cgaontario.org and select
“Membership Renewal” in the left navigation to pay their member
dues on May 1, 2014.
Please print and retain your invoice/receipt for tax purposes, as
an official receipt will no longer be mailed at the end of the year.
Please note that this receipt is sufficient for CRA purposes.
CPA, CGA Affiliates
CGAs who took out the affiliate class of membership at CPA
Ontario should pay their CGA Ontario fee and not pay the CPA
Ontario fee for 2014-15.
CPA Ontario will make sure those members don’t receive a
suspension notice as a result of that non-payment.
Can you provide assurance to public practitioners that for the
period between becoming CPAs and the enabling legislation
takes effect, CGAs will only be subject to practice inspections
by CGA Ontario and not CPA Ontario as well?
The accounting bodies do not need legislation to pass before
the integration of operations begins. Practice inspections can
be integrated before that. Practitioners will be subject to one
inspection, not one from each body.
Document revised July 2, 2014
11
Certified General Accountants of Ontario
240 Eglinton Avenue East, Toronto, ON M4P 1K8
416 322 6520 1 800 668 1454
info@cga-ontario.org cga-ontario.org cga-domore.org
Copyright 2014 by the Certified General Accountants of Ontario