VOLUME 31 • NUMBER 4 • DECEMBER 2004

6 8 10 26New technologytracks products—and people

The Association’sthree-pronged plan tobe No. 1

New business—fromsmall to Olympic proportions

Bill puts managerson hook for H & S

A PUBLICATION OF THE CERTIFIED GENERAL ACCOUNTANTS ASSOCIATION OF BRITISH COLUMBIA

PeakperformersMeet Baldev Gill, CGA,centre stage with theUnion of B.C. Performers.

f e a t u r ePerformance artistCGA Baldev Gill steps into the limelight.

v i e w staxmattersEd Kroft peers into his crystal ball—and sees taxes.

techviewTagging your inventory raises privacy issues.

periscopeMaking managers criminally responsible for worker safety.

capitalreportCGA’s have the government’s ear as never before.

finalwordRecruitment. Employment. Empowerment. CGA-BC’s plan to stay on top.

s p o t l i g h teducationalfoundationFriends of Foundation make a meal of it.

practicereviewTwo new assurance standards released.

workingpapersCGA launches project to hire SFU co-op students.

milestonesMembers making the right business move.

kudosCongratulations to the Award winners.

CGAeventsCGA-BC sponsors Vancouver Leadership Summit.

CGAnewsCGA-Canada among national accounting bodies convening in Paris.

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Talk about double bills.Baldev Gill is both CFOand COO with the Unionof B.C. Performers.

When not working on thefinances, he is negotiatingwith producers in Canadaand the U.S.

Right now he’s pitchingB.C. as a TV and film location so the provinceremains Hollywood North.

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contentsoutlookD e c e m b e r 2 0 0 4 • V o l . 3 1 N o . 4

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ComingAttraction

Editor ’sMessage

A new Outlook and thepower of CGAsCertified General Accountants are a powerful lot. There are some

8,000 members and 4,500 CGA students across the province. If

you calculate the economic magnitude of the companies and the

organizations where they work, CGAs are involved in managing

billions of dollars.

Take Baldev Gill, CGA, featured in our cover story. His industry, entertainment, plays

a critical role in the success of B.C.’s economy.

Flip a few pages on, and learn how your Association is working to make CGAs number

one with the business community. We’ve been busy. We sponsored the kick off to

Small Business Week, the Vancouver Leadership Summit featuring Premier Gordon

Campbell, a speech by Canada’s new Comptroller General, and a Vancouver Board of

Trade event with CGA-Canada President Tony Ariganello, FCGA.

The common thread in this issue is the role CGAs play as decision makers in B.C. Len

Pietrzykowski, FCGA, CGA-BC President, sounds a call to action for members to be

ambassadors for CGA in his column.

Finally, you’ll probably note a few design changes to Outlook. We want Outlook to be

your link to the Association and to the success of CGAs in British Columbia. If you

have an idea or a suggestion, drop us a line.

AdvertisingFor advertising rates contact Pardeep Sidhu at (604) 730-6228 or visit our Website at www.cga-online.org Outlook is the premier way to contact B.C.’s CGAs.

Outlook is published four times a year by the Certified General Accountants Association of British Columbia and is sent to 13,000 CGA members and CGA students. Opinions expressed are not necessarily endorsed by CGA-BC. Copyright CGA-BC 2004.

Articles, enquiries and lettersArticles, enquiries and letters should be sent to Outlook:

CGA-BC, 300-1867 West Broadway, Vancouver, B.C., V6J 5L4(604) 732-1211 or (800) 565-1211

ISSN 1488-2337 Outlook - Certified General Accountants Association of British Columbia.

CGA OnlineMembers, you can now perform all of your most important CGA-BC services online at CGA Online atwww.cga-online.org

Cover PhotoBaldev Gill, CGA, by Ron Sangha

E xe c u t i v e S t a f f

O u t l o o k S t a f f

outlook2004

By Edward Downing

PresidentLen A. Pietrzykowski, FCGA

Past-President/TreasurerColin T, Bruintjes, B.Bus.Adm., FCGA

First Vice-PresidentRita M. Estock, DBusMgmt,FCGA

Second Vice-PresidentMoe Jones, CGA

SecretaryR. W. (Bill) Caulfield,BA, FCIS, CGA (Hon.)

Executive DirectorR. W. (Bill) Caulfield,BA, FCIS, CGA (Hon.)

Director of AdministrationDan Cheetham, CGA

Director of Marketing & Communications

Edward Downing, MA (Journalism)

Director of Education & Student Services

W. D. (Bill) Johnson,FCIS, P.Adm., FCGA

Director of Corporate AffairsJuliana Laing

Director of Information Technology

A. Marc FoxDirector of Member Services

Kathy Hurst, CGADirector of Public Practice Services & Public Practice Advisor

Tina Peters, BA, CGA

Managing EditorEdward Downing (604) 730-6208

Communication OfficersSheila Keenan (604) 730-6238David Ferman(604) 730-6206

Graphic DesignerLaura Murphy(604) 730-6226

ContributorsBrigitte Ilk, CGAEd Kroft, LLB, LLM, CGA (Hon.)Len Pietrzykowski, FCGANick Shepherd, CMC, FCCA,

CQA, CGASusan ThrelfallJohn Yu, MSc., CDP, FCGA

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E xe c u t i v e C o m m i t t e e

C lients expect tax practitioners topredict what tax developments willoccur in the future to assist in as

part of providing tax planning services. So,as 2004 draws to a close, I will try to antic-ipate some of the income tax developmentsthat may occur in 2005.

Legislative Developments• The backlog of legislative amendmentsreleased in 2004 should finally be clearedup. We should see the passage of the Tech-nical Amendments Bill first released in2002 and re-released in February 2004.This means the print in the Income TaxAct will only get smaller as there is a limitas to how big the book can get that all of usneed to carry around.• The proposed legislation regarding thedeductibility of interest and other expensesreleased on Halloween 2003 will not bepassed in its present form. Attempts to tryto legislate a “reasonable expectation ofprofit test” have failed and the Departmentof Finance will continue to seek furthersolutions to try to prevent what it perceivesto be an inappropriate deduction of inter-est expense to offset income from othersources.• The Non-Resident Trust and ForeignInvestment Entity legislation amendingsection 94 and 94.1 of the Income Tax Actwill be passed. It is about time, given thatthe legislation is effective for 2003 and sub-sequent taxation years.

be interesting to see if B.C. attempts tokeep up with other provinces in increasingthe threshold up to which the “small busi-ness” active business income tax rate isimposed on active business income. Fur-ther, even the relatively low corporate taxrate of 4.5 per cent might decline. This inturn would affect the 17.62 per cent taxrate mentioned above.

Judicial Developments• The Supreme Court of Canada will hearthe first cases on General Anti AvoidanceRule (“GAAR”) in March 2005. Thesecases, Kaulius and Canada Trust Co., willhave an impact upon the scope of theGAAR. Expect amendments to the IncomeTax Act if the taxpayers are successful.• The Supreme Court of Canada will releaseits decision in Tsiaprallis regarding the taxa-bility of the lump sum disability payments.• Leave to the Supreme Court of Canadais being sought in the Imperial Oil caseinvolving the deductibility of foreignexchange losses under paragraph 20(1)(f )of the Income Tax Act. The taxpayer wassuccessful in the Federal Court of Appeal.If leave to appeal is denied, expect amend-ments to the Income Tax Act.• Expect amendments to the Income TaxAct if taxpayers win any court case.

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Ta x M a t t e r s

• The next federal budget of Paul Martinwill again forecast a surplus. This budgetcould bring modest tax cuts for low andmiddle income Canadians, andmore medical and education tax credit changes as in past years.CCA rates may be enhanced for

certain classes ofassets. It is unlikelythat corporate taxrates will decline, andeven the small business rateapplicable to Canadian ControlPrivate Corporations on activebusiness income could stay thesame. Therefore, in all likeli-hood, tax rates for corporations

will generally stay constant for 2005.However, the middle “rate” on active busi-ness income between $250,000 and$300,000 of active income will disappearsuch that there will only be two corporatetax rates on active business income earnedin British Columbia: 17.62 per cent on upto $300,000 of active business income and35.62 per cent on active business incomein excess of $300,000. As for investmentincome, the rate will remain at 49.29 percent. However, it is about time that thefederal government revisited the need toimpose a 6 2/3 per cent surtax on invest-ment income. Given the decline in person-al and corporate tax rates, it does not makesense anymore, at least in B.C., to have anadditional 6 2/3 percent tax imposed onpassive income earnedby corporations.• As the provincialelection approaches,the Liberal govern-ment will have achance to present onefinal budget. It will

2005 Tax Preview

The middle “rate” onactive business incomebetween $250,000 and

$300,000 of activeincome will disappear.

Ed Kroft, LLB, LLM, CGA (Hon.), is a Partner in the Vancouver officesof McCarthy Tetrault, Barristers and Solicitors, which has more than 40 tax lawyers across Canada. His practice is restricted to taxation.

A look at the year ahead.

By Ed Kroft, LLB, LLM, CGA (Hon.)

Expect amendments to the Income Tax Act if taxpayers win any courtcase.

continued on page 7

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Retailers actively involved in the investiga-tion of the RFID technology include Wal-Mart, Home Depot, The Gap, Procter &Gamble, and Target.

The technologyRFID tags are miniature wireless electron-ic chips first invented in 1969. There is awide range of RFID tags, with differentdata storage capacity and data transfercapabilities. A basic RFID system has twocomponents: • A RFID tag that acts like a transponderand is electronically programmed withunique identification information• A reader made up of a transceiver and

an antenna. An antenna emits radio signals toactivate the tag and acts as theconduit between the tag and thetransceiver. The tag containsidentification information that isread or written by the transceiver.

RFID tagsThe miniaturized tags come in a widevariety of shapes and sizes, and can be:• Implanted into livestock or pets—suchtags typically take the shape of an half-inch wire about the thickness of pencillead• Embedded in credit cards, merchandiselabels, or even currency—such tags typi-cally take the shape of a small square andcan be as small as a third of a millimeteracross • Attached to containers, cartons, heavymachinery, trucks, or railroad cars—suchtags are generally larger, up to severalinches square by two inches thick.Apart from their different sizes andshapes, there are two kinds of RFID tags:active or passive. Active RFID tags arepowered by an embedded battery and can

Part One of Two

P ick up any manufactured item andyou will find that it is labeled witha bar code. At the checkout, the

clerk scans the bar code instead of punch-ing in the SKU of the item. Bar codes havebecome so ubiquitous that we don’t evennotice their presence and use. A new tech-nology, called radio frequency identifica-tion (RFID), is emerging to replace barcodes and it has implications far beyondmere item identification. CGAs should befamiliar with this new technology andunderstand its applications and its poten-tial impact on society.

The new technology is already in use insome applications. For example, there is anagreement by seaport operators to useRFID tags to track shipping containers.The U.S. military is using RFID tags totrack military supplies. Visa Internationalplans to embed RFID tags in smart cards.Some identification tags for pets haveembedded RFIDs and RFID tags are beingimplanted in livestock. Michelin is goingto embed RFID tags into its tires, each taghaving a unique identification number,enabling individual tires to be tracked. TheEuropean Central Bank has announcedplans to embed RFID chips in the euronote. Manufacturers are planning to useRFID tags to help to manage the supplychain, from manufacturing to shipping tostocking store shelves. Gillette, for exam-ple, has purchased 500 million RFID tagsto be embedded in its razors. For retailers,RFID is the ultimate tool for stocking,inventory control and theft prevention.

Te c h V i ew

Tune in to the Radio

By John W. Yu, MSc, CDP, FCGA

Bar code replacement has privacy implications.

John W. Yu, MSc, CDP, FCGA, is an avid watcher and consumer of technology, and has been working in the IT industry since 1970. He is Vice-President of Information Technology at CGA-Canada. He is also the privacy officer for CGA-Canada and CGA Shared Services Facility Corp.

store a large amount of data. Active tagscan be read or written wirelessly by thetransceiver. The battery-supplied power ofan active tag generally gives it a longer readrange and are suitable for applicationswhere there is some distance between tagsand readers, such as port containers. Activetags are bulkier and have a limited servicelife (life of the battery). Passive RFID tags, on the other hand, oper-ate without any embedded power source,and obtain power from the transceiver.Thus, passive tags have an unlimited servicelife and can be very small in size, but theyhave a short range and require high-pow-ered transceivers.

ReadersReaders, comprising an antenna and atransceiver, can be built into virtually any-thing and used anywhere. For example,readers can be built into door frames,wired around any entrance way, and incor-porated in cash registers or hand-helddevices for use in stores. Readers can alsobe mounted on an interstate toll booth tomonitor traffic. Readers can read tagswithin inches to up to a few hundred feet,depending on the kind of RFID tag andpower and the radio frequency. RFID systems have several advantages overbarcodes. Unlike barcodes, no line of sightis required, and tags can be used in envi-ronments unsuitable for barcodes, such asin water, dirt or grime. Tags can be embed-ded in items where barcodes cannot beused, such as animals (or humans). RFID tags are relatively expensive (from50 cents to a few dollars each), but theircost is expected to go down as manufac-turing techniques improve and volumepicks up. When RFID tags cost a couple ofcents, it will be economical for them to beinserted in any item that costs a dollar ormore, which applies to just about every-thing manufactured.

Privacy issues Unlike bar codes, RFID has applicationsfar beyond commercial transactions.Imag-ine a world where all manufactured goods

continued on page 7

RFID is the ultimate tool for stocking,

inventory control andtheft prevention.

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are embedded with RFID tags, eachuniquely identifying the item. While thismay be a perfect technology for manufactur-ers and retailers, the potential loss of privacyto the consumer is an issue that must beaddressed. Right now, when you purchasean item from the store, you retain fullanonymity once you have paid for the item.But if the item is RFID tagged, it can be

traced anywhere. Imagine walking aroundin an RFID-embedded T-shirt and jeansthat you purchased from Wal-Mart. Asyou walk into a Wal-Mart store, the storecould find out, without permission fromyou, from where and when you boughtthe clothing. Now imagine that every-thing you own can be numbered, identi-fied, and tracked. What happens to yourprivacy?

RFID tags are already embedded in animalsfor tracking and identification purposes. It isclear that RFID tags and similar electronicidentification systems can be embedded inhumans. In the next issue, we will explore the appli-cations and technologies surrounding theimplantation of electronic identification tagsin humans and the ethical dilemmas societyfaces.

continued from page 6

Administrative Developments• The Canada Revenue Agency (itsname will be officially changed in 2005)will continue to administer and enforcethe Income Tax Act in a diligent fashion.• As a result of comments made by theAuditor General in December 2004,the system of voluntary disclosures(“tax amnesty”) will be made more uni-form across Canada. Further, the speedwith which Notices of Objection areprocessed will likely increase given aperceived backlog on the part of theAuditor General.• Policies regarding the use of “singlepurpose corporations” will be released.In June 2004, the CRA released a sur-prising announcement that it wouldcease to apply its administrative policyof not assessing shareholder benefitswhen foreign-based properties wereowned by Canadian corporations(instead of the individual shareholders)to avoid local estate taxes.

Tax Matters continued from page 5

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Pe r i s c o p e

Tightening Legal AccountabilityHow Bill C45 changes the rules for occupational health and safety.

By Nick Shepherd, CMC, FCCA, CQA, CGA

A s part of the continuing changesaimed at holding corporations andother organizations increasingly

accountable for their social conduct, thefederal government tabled Bill C45, whichbecame effective March 31, 2004. As theGlobe and Mail headline read, “Quietlypassed bill could have loud implications.”

While this legislation was mainly devel-oped as a result of a recommendation fromthe public inquiry that followed theWestray Mine disaster in Nova Scotia in1992, it has key implications for financialmanagers and others who may be involvedin the setting of, or implementing of, poli-cies within their organization. In addition,the definition of “organization” has beenexpanded to include associations and other“collectives” who come together with theessence of being an organization even ifnot formerly constituted as a “body corpo-rate.”This legislation makes some key changes tothe Criminal Code, the essence of which isto facilitate the charging and conviction ofpersons and organizations who make orimplement decisions that have a negativeimpact on an individuals and / or an orga-nization’s health and safety. Key changes include:• Creating a new “Occupational Healthand Safety Criminal negligence” offence• Expanding the definition of organiza-tions covered by the Criminal Code to

all levels—from senior officers to leadhands —are being held accountable for thedirection they give and the work condi-tions that they condone.Financial managers, often responsible fordecision making in the allocation of scarceresources, have accountability to ensurethat inadequate funding to areas such astraining and provision of a “safe workplace” is not allowed to have negative con-sequences.Liability is clearly on both those settinghigh-level corporate policy as well as thosesupervising the day-to-day decision mak-ing at the operational level.Financial professionals in both practice aswell as industry will need to ensure that“fact based” due diligence is being prac-tised in all areas of internal controls,including adequate health and safetyaudits and any required corrective actionsso that situations cannot occur in theirorganizations that create liability underthese revisions to the Criminal Code. Thinking needs to extend beyond the fac-tory floor to the topical aspects of healthand safety such as stress managementcaused by excessive work pressure, as wellas health conditions caused by knowledgeworkers in areas such as computer-relatedhealth issues. As the Canadian NationalQuality Institute (NQI) has demonstratedfor some years now, there is a direct linkbetween well-managed organizations andthe overall health and working conditionsof the employees working in such organi-zations. Thus financial managers need tocontinue to focus on the development ofbroad management competencies as well asfinancial expertise.

include societies, partnerships, municipali-ties, and associations• Broadening the scope of those who canbe charged from “directing minds” toeveryone who directs how another is to dotheir work• Expands the need for demonstrated cor-porate compliance programs in health and

safety (i.e., demonstrated duediligence)• Enhancing penalties and howthey can be applied to both theindividual(s) and the corporateentity (including courts settingand supervising probationarytype provisions).Of interest to financial man-agers is the now implicit

assumption that a chief financial officer ofan organization is by definition an officer,which provides greater clarity in movingfrom “controlling minds” to those bothsetting and implementing working condi-tions. In particular this enhances theCrown’s ability to charge individuals whoknowingly or negligently (should haveknown) allow situations to exist that createnegative consequences to the employees ofthe organization.While typically legislation requires cases ofprecedence to see how the courts will actu-ally apply and interpret the law, somethings are clear. The era of tightening ofthe laws on responsible and accountablecorporate governance at both the directingand managing levels is here to stay.Legislation is continuing to reflect thechanging societal expectations of corpo-rate accountability including a definedexpectation of due diligence. Managers at

Nick Shepherd CMC, FCCA, CQA, CGA, is President of EduVision Inc. a management consultingand professional development company, with offices in Oakville and Ottawa that specializes inareas of quality and service management, corporate governance and financial management.

Bill C45 has key implica-tions for financial

managers who may beinvolved in setting or

implementing policies.

mum, half of the surplus should go todealing with the debt. We also cautionedgovernment that it must resist the tempta-tion to increase spending as we go into thecountdown to the election. If spending is to be increased, we added, itshould be capped at a specific amount andshould be allocated to health care and edu-cation. We also urged the government toreduce the provincial sales tax—a recom-mendation the Liberals followed up onjust three weeks later.Minister Collins also took questions fromthe floor and a number of CGAs used theopportunity to bring up questions relevantto their specific industry. These sessions

show that government is inter-ested in the views of CGAs anddemonstrate the advantages formembers to come to theseimportant events. Not only dothey boost the profile of CGAs,they may help you tackle apressing business issue.A final footnote to our pre-bud-get submission: An excerpt was

published in The Province’s “In OtherWords” column on its editorial page, giv-ing our views an even wider audience.

Small business is B.C.’s business It’s a statistic we’ve all heard: more than 95per cent of business in B.C. is small busi-ness. So, as representative to the province’s lead-ing accounting professionals and businessadvisors, it made sense that the Associationsponsor a Vancouver Board of Trade lun-cheon on the opportunities surrounding

C all it a mid-term report. Every year,the Association joins business,trade and other organizations all

across the province and provides its inputon what it would like to see in the upcom-ing provincial budget.But this year we had a distinct advantage.Rather than wait to provide our analysisdirectly to the Select Standing Committeeon Finance and Government Services, wewere able to provide a synopsis directly tothe person who makes it all fit together:Gary Collins, the Finance Minister. Ouropportunity came in the wake of his finan-cial update to the Association’s industry andpublic sector forum at the CGA conference.

His message was impressive. While herecounted a list of achievements, the bestnews is that the government can now boasta surplus—now estimated to be $2 billion—and has taken B.C. out of the column of“have not” Canadian provinces. In fact, his question to the 100-plus CGAsin attendance was how should the govern-ment tackle that surplus? Should the moneygo back to fund services? Should we use it to pay down the debt? What should be thepriorities for government as we emerge from a decade of recession and failed mega-projects? In our pre-budget submission, the Associ-ation made it clear that, at the very mini-

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C a p i t a l R e p o r t

Edward Downing is CGA-BC’s Director of Communications.

Budget Making andOlympic-Calibre OpportunitiesCGAs take up government’s invitation to recommend uses for budget surplus.

the 2010 Olympic Games. It featuredJohn Les, Minister of Small Business andEconomic Development and Ministerresponsible for Deregulation. The Minis-ter was speaking as part of a lead off toSmall Business Week. As Moe Jones, our incoming First Vice Pres-ident noted in his comments as he wel-comed the Minister, “while we often associ-ate the Olympics with large corporations,big sponsorships and astronomical TVrights, there are tremendous openings forsmall business....small businesses in B.C.will see even more opportunities to expandand grow as we lead up to the Games.” For his part, Minister Les urged the morethan 250 business people in attendance tothink big when it came to the Olympics.He unveiled the 2010 Commerce CentreWebsite as a one-stop electronic gatewayto help business tap into some of thatopportunity. The site is a useful informa-tion source for CGAs and their companiesand practices wanting to build their strate-gies to capitalize on the economic promiseof the Games. You will soon be able to register your business and receive directedinformation on new opportunities. Thesite’s address is: www.2010commercecen-tre.gov.bc.ca.

Barriers must fallThe Association has also been in touch withMinister Les and his senior advisors aboutthe need to eliminate internal trade barriersthat still exist in other parts of Canada thatcontravene the Agreement on InternalTrade. As it now stands, restrictive legislation inQuebec limiting CGAs from auditing pub-licly traded companies creates a barrier toCGAs who have those rights elsewhere inCanada. Working with CGA-Canada, the provin-cial associations, including CGA-BC, have been providing an update to the respectiveprovincial ministers. Minister Les hastaken the CGA position forward toMichel Audet, Quebec’s Minister of Eco-nomic and Regional Development andResearch. He has asked that the Quebecgovernment do everything within its

continued on page 11

By Edward Downing

If spending is to beincreased, it should be

capped at a specific amountand should be allocated tohealth care and education.

C anada’s new Comp-troller General has aradical plan, but a

reasonable timetable, for re-structuring financial manage-ment in the federal public ser-vice.“Financial management is the business of every singlecivil servant,” said Charles-Antoine St-Jean, CA.“Financial management hasbeen left to the specialists ratherthan being pushed downthrough the organization.”St-Jean was addressing a crowdof public servants and CGAsin November at the MarriottVancouver Pinnacle Hotel.The event, put on by theFinancial Management Insti-tute, was sponsored by CGA-BC.

Appointed in June, St-Jean’s goal is to inte-grate good financial management into theculture of the entire federal public service.One of his key strategies is to requiredepartmental comptrollers to have bettercredentials, including a degree and anaccounting designation.

However, he’s not expecting change tocome easily or quickly.“We’ve got to be realistic. This cannot bedone overnight,” he said.The requirement for better credentials willbe phased in over the next three years, hesaid. St-Jean also wants to improve internalaudit in federal departments.The federal government re-established theOffice of the Comptroller General in 2004to rigorously oversee all governmentspending. St-Jean, from Gatineau, Quebec, has expe-rience in accounting and financial man-agement in both the private and publicsectors. He joined Ernst & Young in 1976and practised public accountancy in bothCanada and Europe. In 2000, he joinedCap Gemini Ernst & Young (CGE&Y) asa Vice-President.

Comptroller Generalwants change inpublic service

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continued from page 10power to make sure that professionalaccountants from B.C. have full access topublic accounting opportunities in Que-bec. In the meantime, CGAs in NewBrunswick have launched a formal chal-lenge to the Quebec government asking it

to tear down these archaic and regressivebarriers. The New Brunswickers haveasked for a complete review by a panel. Intheir letter to the Quebec government, thePresident of CGA-New Brunswick notesthat in 2001 a similar panel ruled in favorof CGAs when the panel found that simi-lar legislation violated the AIT.

It’s worth noting that the current B.C.government has been a strong supporter ofderegulation and the elimination of tradebarriers. Some 143,000 regulations havebeen struck down since the Liberals tookoffice.

Change may not come easily or quickly.

By Sheila Keenan

Pictured top to bottom: A capacity crowdof 150 takes in the November 17 event;Comptroller General Charles-Antoine St-Jean calls for improved internal audits infederal government; and St-Jean receivesaward of thanks from CGA Second Vice-President Moe Jones, CGA.

Baldev Gill’s

Star Turn

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Baldev Gill’s

Star Turn

PROFILE

By David Ferman | Photographs By Ron Sangha

QAWhat do Yvonne de Carlo, Tommy Chong, Chief DanGeorge, and Pamela Anderson have in common? (Yes, theimage of a double date boggles the mind. Just try not tothink about it.)

They are all leading lights in the constellation of great B.C. film stars.

T oday there are countless B.C. performers vying fortheir place in the sun, whether on stage or screen—orPlaystation 2. Somewhere nearby, the next Michael J.

Fox is preparing to emerge from the chrysalis of obscurity.

But for now the real B.C. star is the province itself. As ashooting location, as home to world-beating productionfacilities, and a centre for post-production talent, B.C. isbig. How big? Marlon Brando and Orson Welles stuck-in-an-elevator big. Tim Allen at Christmas big.

“Last year film and television production accounted for $1.4billion in expenditures to the provincial economy,” saysBaldev Gill, CGA, the CFO and COO of the Union ofBritish Columbia Performers (UBCP), which represents5,000 performers.

Sitting in his dimmed third-floor Yaletown office, acrossfrom the baleful gaze of a demented looking movie posterJack Nicholson, Gill looks tired. It’s noon and his flightfrom Los Angeles didn’t land until one this morning. Tomake sure B.C. stays big, Gill works long hours and racksup considerable air miles on flights to and from the majorproducers, politicians and entertainment industry policymakers in L.A.

“That $1.4 billion is down considerably from the boom daysof the 1990s, but we’re still talking about a major industry thatis a vital part of our economy,” says Gill. B.C.’s dependence onU.S. productions is well documented: BC Films’ 2003/2004Activity Report states that 88 per cent ($1.2 billion) of allspending comes from foreign sources. Hence, Gill’s recentweek-long jaunts to visit major Hollywood and independentlow-budget producers. And as Gill says, change in film andTV is inevitable, but growth is optional.

“Now is an important time to be down in L.A. to make sureB.C. is given consideration when the major productionhouses are budgeting for the coming year. You have toremember that these films and TV series are mobile; theycan shoot where they want. And even though B.C. has sev-eral great advantages, the competition as a location istremendous.”

Gill describes his most recent trip as reassuring. Studio hon-chos have again praised the talent of B.C. crews. Theirbiggest complaint is also longstanding—the provincial salestax. A tax they don’t have to pay in competing jurisdictionssuch as Louisiana, Montana, Alberta, Manitoba andOntario. In fact more and more states and provinces areoffering tax credits and incentives. Ontario, for instance,treats film and television production as manufacturing thatdoes not apply sales tax to visiting productions. The B.C.government should look at doing the same, argues Gill.

The disincentive posed by the PST cannot be minimizedGill says. Yes, B.C. may have the best people, the longershooting season, milder weather, most sound stages, andshare Hollywood’s time zone, but money is the bottom line.

Says Gill: “These are publicly traded companies in businessto maximize shareholder wealth. They look hard at the bot-tom line, which, yes, means looking at the PST.”

Talking in person with Hollywood executives is about morethan costs and budgeting, says Gill. “These trips are alsoimportant because this business is about building relation-ships, building trust and having strong industry partners.”

The relationships UBCP builds with producers throughoutthe year are put to the test at contract negotiation time.

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>>>>>

Relationships Gill nurtures with producers o

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The current deal between UBCP (formerly known as theB.C. office of ACTRA) and the producers is in place foranother year and a half.

As COO, Gill counts his negotiation preparations among hismost important duties.

“I have to make sure our team is prepared for negotiationsand that we have done the appropriate research to make astrong case for our proposals. Even though I may not be thechief negotiator on the file, it’s my responsibility to see thatwe are coordinated and prepared to be effective at the bar-gaining table.”

The UBCP negotiating team includes the Executive Board,ACTRA’s national executives, internal senior staff, in-houselegal counsel and Gill.

Labour negotiations are not limited to securing the rightsand salary rates of B.C. performers. Perhaps his biggest day-to-day responsibility is internal—human resources andlabour relations. UBCP’s own support staff is covered by acollective agreement with the Canadian Auto Workersunion.

“Grievances, termination issues, discipline issues, arbitrationissues, promotions-you name it, I deal with it.”

The COO is also the chief negotiator for the Association inits dealings with the CAW.

“We recently finished a round of negotiations that will secureemployment with support staff through Sept. 2006. I’mresponsible for making sure the employer’s interests are pro-tected through the negotiation process. I spend a lot of timeresearching and a lot of time building relationships with theCAW.”

Exactly how does a CGA gain so much labour negotiationexperience? In Gill’s case, he came to the performers’ unionvia forestry and food.

“I learned about trade unions as a teenager working for theIWA. As a 15- and 16-year old living on the North Shore, Iworked at the Nova Lumber sawmill pulling lumber andworking clean-up crew after school and weekends,” herecalls. “I saw how labour relations worked up close, and myfather, who worked in a similar environment for many years,brought some of that understanding home.”

The sawmill was hard work, simultaneously dull and dan-gerous. “I said to myself ‘My goodness, there’s no way I’mgoing to be stuck doing this the rest of my life, this is reallyhard.’ That was what got me thinking that I needed to getback on the academic track and take my schooling seriously.”

Gill’s instinct was prescient; the mill has long since beenbought and closed by Tolko Lumber.

He decided that his future lay in business. From 1987 to1990, while taking pre-commerce courses, he decided, “IfI’m going to school to be an accountant anyway, why not bea CGA now and get my degree later. That is the great flexi-bility of the CGA program.”

Gill later returned to school, earning his degree in account-ing science at the University of Calgary.

He chose to work in a mid-size North Shore accountingfirm. “Although it was very stressful and challenging at times,I think, because I learned the full scope of the accountingand audit cycles so quickly, it was better training than mostof my colleagues received at the Big 6 firms.” He received hisdesignation in 1994.

In 1996 Gill left public practice. He has also been acceptedas an associate member of the Certified Fraud Examiners’Association. Later that year he found a unique opportunitywith the United Food and Commercial Workers Retail Asso-ciation (UFCW) in Burnaby.

As Director of Finance and Administration, Gill was respon-sible for all matters financial and HR related. At the time,UFCW had 28,000 members in B.C. alone and was the second or third largest association in the province.

“I think what impressed them was that I understood tradeunion issues. That in combination with my understanding offinances was what attracted them to me.”

It was a great opportunity with lots of responsibility, butGill’s timing could have been better. Less than five monthsinto the job he, and the rest of the UFCW, was hurled intoin a province-wide labour dispute with Canada Safeway andthe Jimmy Pattison Group. (Employers wanted concessionson wages and benefits. They also wanted a two-tiered systemwith different rates of pay for the same work, based onseniority). The labour dispute lasted six weeks.

“It was a terrible time,” he laughs from the safe distance of eightyears removed. “It required that I coordinate the finances tomake sure that all the members received the proper compensa-tion. That meant writing something like 60,000 cheques in sixweeks. It was just nuts. We hadn’t experienced a labour disputeof that magnitude in many years so there wasn’t really any pastpractices one could rely on. There were no procedures; therewere no policies. We had to create procedures as we went along.”

Life at the UBCP is smoother, even with the twin titles ofCFO and COO. Like Peter Sellers or Mike Myers, Gill seemscomfortable playing two or more roles at a time.

<<<<<

are put to the test during negotiation time.On a tour of his stage—the union offices—it is clear thatUBCP’s offices aren’t like those of a regular business or, forthat matter, like other unions. Along with the offices filledwith staff and Board members, UBCP offers its members anarea for themselves.

Members can be found paying dues, registering credits, tak-ing education courses, or using one of the five work stationsto do searches or update resumés. A separate room is devot-ed to performers rehearsing for their next gig, whether it’srunning lines for a commercial, composing a radio jingle,blocking a scene in a play, or readying for Mr. DeMille’sclose-up. The rehearsal space is furnished with the latesthigh tech recording equipment for performers to tape them-selves, critique and perfect their work.

The union’s education committee holds professional devel-opment classes in acting, dialect, and Gill even gives classeson performer-related finance issues.

“Our new Board has moved us away from putting on PDourselves to outsourcing and charging a nominal fee. Wemake it reasonably priced so all performers can participate.”

The term “performer” isn’t limited to actors. The UBCPMaster Production Agreement definition of performerincludes announcers, stunt performers, dancers, choreogra-phers, hosts, models, dialogue coaches, narrators, panellists,puppeteers, sportscasters and others. To be a full member ofUBCP requires having six registered performances underone’s belt.

Digital media is probably the biggest change since silent pic-tures lost out to the talkies. UBCP’s New Media departmentis working to protect performers’ rights to be fairly com-pensated.

“The pace of change in this industry requires us to continu-ally examine our internal infrastructure so that it best servesthe performers,” says Gill.

The union’s nascent Digital Media department is one suchexample.

“The new digital technology has had a dramatic effect—punintended—on media such as video games,” explains Gill.

As games become more film-like in nature, the need to hireprofessional performers increases. In addition to new oppor-tunities, digital media is also changing media productionand distribution, and UBCP is working to ensure that per-formers’ rights are protected.

“Although digital or new media pro-duction falls within the UBCP juris-diction, traditional contracts mayneed to be adjusted to address thechanges taking place,” says Gill.

That’s not surprising. What agent fora Tin Pan Alley songwriter or Broad-way performer could ever have imag-

ined MTV, let alone a Billboard chart devoted to the mostdownloaded ring tones for cell phones?

UBCP is keeping up with the changes through the additionof a new Digital Media Advisor, by participating in industryevents, and by undertaking various research initiatives.

UBCP takes care of members in other way. Performers havea choice of two benefit plans, one run locally, the otherthrough ACTRA’s national office. To date, the union hasspent $300,000 on a subsidized housing project for retiredB.C. performers.

Construction of the Performing Arts Lodge (PAL) Vancou-ver will provide subsidized housing at Bayshore Gardens,located adjacent to Georgia and Cardero streets. The City ofVancouver also approved a capital grant of $500,000 whenit approved the development and lease of the 111-unitbuilding in March of this year.

The grants help make sure that one-third of the affordableunits in the PAL Vancouver project rent for an average of$650 per month, one-third for an average of $550 permonth, and the balance below market rent.

The project is scheduled for completion in 2006. It willinclude a multi-media performance space, which means,that for B.C.’s performers, the show will go on.

Meanwhile, Gill and the UBCP team are working toimprove the opportunities and wages of their members.That way, fewer performers will need subsidized housingwhen they retire.

“Our members give their all to a profession that brings somany benefits to this province,” says Gill.

“For them success is never guaranteed, and if it comes, whenit comes, it may be too short-lived to bring financial free-dom. That’s really why we’re here.”

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“Our members give their all to a profession that

never guarantees success.”

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Friends of the Foundationraise money for

CGA students in needCGAs, business partners of the CGA Association and a hostof friends of CGA turned out on Wednesday, November 3,to support the second annual Friends of the Foundationdinner at the Victoria Restaurant in downtown Vancouver.

And while the food and chance to win great prizes were keyattractions, it was the opportunity to help CGA students inneed that made the evening so worthwhile, with nearly$15,000 raised for the CGA-BC Educational Foundation.

The evening’s emcee, John Nagy, FCGA, Chair of CGA-Canada, and Past-President of CGA-BC, told the 100-plusguests that last year the Foundation gave out nearly$70,000 in bursaries and scholarships in support of ourstudents. Since August 2004, the Foundation has alreadygiven out just over $48,000. The next bursary applicationperiod will be in February 2005—based on the increasedneed for assistance, it is estimated the Foundation will giveout another $20,000 this winter for a total of $68,000.

“I’m proud to say 51 of our students have graduated andbecome contributing members of CGA-BC,” Nagy said.“The assistance the Foundation provided made a signifi-cant difference to the recipients during their time as stu-dents—in some cases it made all the difference.”

Other participants included the President and CEO of CCHCanadian Ian Rhind, and David Pleasance, CCH’s Westernaccount manager. CCH has been a long-standing donor tothe Foundation through scholarships and other corporatesupport.

While the evening had a serious goal, special thanks shouldgo to Mr. Rhind; Robert Hungerford, of Hungerford,Tomyn, Lawrenson and Nichols, Lawyers; and Bill Smyth,FCGA, President of OnPayroll.ca, for injecting a high levelof drama and excitement into the 50-50 draw. Aided by auc-tioneer Dan Relihan, CGA, Recruitment and MarketingManager, they helped raise some $2,000.

The audience also heard from Pamela Felix, CGA, who hadwon several awards including the 2003 Barbeau SilverMedal, and a current Level 4 student (who requestedanonymity) who received assistance from the Foundationduring a difficult time. Both credited the Foundation and itslargesse for helping them achieve career success.

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practicereview

New Assurance Standards Released

The Auditing and Assurance StandardsBoard (AASB) has issued two new stan-

dards on quality control for audits and otherassurance engagements.The quality control standards can be divid-ed into two areas, one at the firm level andthe other at the engagement level. At thefirm level, the new standard (labeled GSF-QC) requires a firm to establish a system of

quality control. The second standard(Handbook Section 5030) addresses thepractitioner’s responsibilities in the perfor-mance of an individual assurance engage-ment. These standards will be effective onDecember 1, 2005 and for CPAB regis-tered firms on January 1, 2005.Contact: Jim Timmerman, CGA.

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C o n t a c t I n f o r m a t i o n

Muriel Blessin Public Practice Administrator(604) 730-6230mblessin@cga-bc.org

Anita FortuneCoordinator, Advisory Services(604) 714-2350afortune@cga-bc.org

Brigitte Ilk, CGA Manager, Public PracticeResearch and Development(604) 629-8363bilk@cga-bc.org

Tina Peters, CGADirector, Public Practice Services & Public Practice Advisor(604) 730-6232tpeters@cga-bc.org

Jim Timmerman, CGAManager, Quality Assurance(604) 730-6231jtimmerman@cga-bc.org

Toll free: (800) 565-1211

Publ ic Pract ice

I n B r i e f

PIPA ResourcesThe Office of the Information &Privacy Commissioner (OIPC) forB.C. has a guide for businesses andorganizations to complying withthe Personal Information ProtectionAct (PIPA).To see the guide, visitwww.oipc.bc.ca/sector_private/resources/index.htm. Other PIPA-relat-ed resources can be found on theOIPC’s Website at www.oipc.bc.ca.

T-1 ReminderIf you are a CGA preparing individ-ual T-1 tax returns with or withoutschedules and charge a fee for thisservice, you are required to regis-ter this limited practice with theAssociation. Registration packagesare available from the Association.Contact Muriel Blessin.

Updated EngagementLetterSee a sample engagement letter inthe Public Practice Heads Up areaof CGA Online.The letter incorpo-rates suggested wording from theCGA-Canada Public Practice manual(Section 30) relating to money laun-dering and privacy legislation andwording if differential reporting isused.

Practice reviewers will be lookingfor these or similar paragraphs tobe contained in all current engage-ment letters.Contact Jim Timmerman, CGA.

Society Act Amended

S ignificant amendments to the SocietyAct were brought into force on

November 1, 2004. From a CorporateRegistry filing perspective, the highlightsof the amendments are:• registry staff will no longer examinebylaws at the time of incorporation orwhen bylaws are changed;• societies will no longer be required to sub-mit a Financial Statement to the registry;• societies no longer need to request anorder from the registrar to approve the way

they notify members regarding meetingsor to approve a specific system or methodof voting; and• on incorporation, a society that willoperate as a social club no longer needsministerial consent.Visit www.fin.gov.bc.ca/registries/corppg/socchg.htm and click on the “SocietyAmendment Act, 2004” link. For questions, contact Sherrilyn Johnsonat (250) 356-8661, or emailSherrilyn.Johnson@gems8.gov.bc.ca.

B.C. Exempt from PIPEDA

A s of Nov. 3 most organizations inB.C. are now exempt from the federal

Personal Information Protection and Elec-tronic Documents Act (PIPEDA). Theexemption was announced after the federalgovernment agreed that B.C. has privacylegislation that is “substantially similar” toPIPEDA.The B.C. provincial Personal InformationProtection Act (PIPA) sets out requirementsfor how organizations may collect, use, dis-close and secure personal information.

PIPA applies to most organizations in B.C.,including corporations, partnerships, non-profit organizations and unions.The federal act, PIPEDA, continues toapply to any “federal work, undertaking orbusiness” as well as cross-border transac-tions.Alberta has also received the same exemp-tion from PIPEDA.Visit www.mser.gov.bc.ca/foi_pop/Privacy/psp_whatsNew.htm or contact Brigitte Ilk, CGA.

Debt Collectors Act Replaced

On July 4, 2004, the Debt Collection Act[R.S.B.C. 1996-C2] was rescinded

and replaced with new legislation entitledBusiness Practices and Consumer ProtectionAct (BCCPA) that came into force on thesame date. The reporting requirements fordebt collectors has changed and, as a result,there is no further need to prepare and filethe Form F Accountant’s Report. Debt col-lectors may still require assistance with the

preparation of financial statements.The new Act is a consolidation of con-sumer protection statutes that include theTrade Practices Act, Consumer ProtectionAct, Consumer Credit Disclosure Act, Ceme-tery and Funeral Services Act, Credit Report-ing Act, Debt Collection Act and the TravelAgents Act. Visit www.bcpca.ca or contact Brigitte Ilk, CGA.

workingpapers

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C o n t a c t I n f o r m a t i o n

Member

U p D a t e

Laura ChokAdministrator, Professional Development Events(604) 629-8361(800) 565-1211 ext.361lchok@cga-bc.org

Elize Combrinck Administrator, CPD & Member Programs(604) 730-6229 (800) 565-1211 ext.229ecombrinck@cga-bc.org

Penny HurstAdministrator, Membership & Chapter Programs(604) 730-6207(800) 565-1211 ext.361phurst@cga-bc.org

Co-op Project to Bring CGAs and SFU Students Together

A n exciting pilot project has just beenlaunched in support of SFU’s highly

successful business co-op program. Underthis project, key CGAs in industry, publicpractice, and government will be selectedand asked to consider hiring SFU co-opbusiness students. These highly capablebusiness students are ready to apply theirfinance and accounting skills and can prac-tically “hit the ground running.”CGA-BC has identified the support of co-operative education programs as a primarygoal in its recruitment strategy. Says Dan Relihan, the Association’sRecruitment and Marketing Manager,“We are pleased to be partnering with SFUin this pilot project. SFU’s Co-op Market-ing Specialist, Donna L. Crombie, hasalready been commissioned to work exclu-sively on establishing SFU co-op positionsthrough key CGA contacts.”The pilot project will promote the follow-ing benefits of hiring an SFU business co-op student:

• The co-op program is flexible; studentsare available year round, including dur-ing peak busy periods

• Employers have access to students withsolid academic accounting training

• Employers will save time and money asthe hiring process is easy and efficient

• CGA public practitioners are invited totake advantage of the Training IncentiveProgram; and

• Canada’s top business co-op students areexposed to CGAs in the workplace andthe benefits of pursuing a CGA designa-tion.

For more information on this project, or to hire an SFU co-op student, contact Dan Relihan, CGA, at drelihan@cga-bc.org, or Donna Crombie at dcrombie@sfu.ca, (604) 291-3619. Learn more aboutSFU’s business co-op program atwww.sfu.ca/coop/bus-coop.

Call for NominationsEach year the CGA Association of BritishColumbia honours its members and stu-dents with the following awards:The CGA Community Service Awardhonours members and students who haveprovided outstanding service to their com-munity. The award recognizes that excep-tional voluntary contributions of membersand students at the community level fur-ther enhances the professional image andprofile of Certified General Accountants.The Harold Clarke Award for Service ispresented to a CGA-BC member, studentor staff member in recognition of out-standing service to the Association or to acommunity or charitable organization.The award honours the second Presidentof the Certified General Accountants Asso-ciation of British Columbia.

The J.M. Macbeth Award of Merit ispresented in recognition of exceptionalservice at the chapter level. The awardhonours the first CGA-BC President to beelected from outside the Lower Mainland. Life Membership is the highest provincialhonour that can be bestowed on a CGA.Consideration is given to members whohave made a significant and meritoriouscontribution to the Association.The President’s Award for Education ispresented to a person who has provideddistinguished service to CGA-BC in theirrole as an educator in our student pro-gram or in our continuing professionaleducation program.Deadline for nominations is March 15.Nomination forms are available fromPenny Hurst at phurst@cga-bc.org or(604) 730-6207.

And the Nominations are...

Online Reporting ofCPD ActivitiesMore than 40 per cent of members reported their 2003 CPD activities online in the initial year of this service.Comments from members werevery positive; many cited ease ofuse and faster response time asthe primary benefits.

If CGA-BC is your primarysource of continuing education,any seminars attended arealready in your online report—we’ve done the work for you.To file your form, simply confirmyour participation, add any otheractivities and submit your reportfor review.

Based on this strong reception toonline reporting, the traditionalpaper-based reporting form willno longer be mailed to members. For those who wantto file a paper form, a PDF version is still available on the Website or a faxed copy of theform may be requested by calling(604) 730-6248.

A reminder:the Continuing ProfessionalDevelopment reporting deadline is January 31, 2005.

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n e w C G A sCongratu la t ions to the CGA-BC Class

New CGAs— 371 in total for 2004—were honoured at this year’sconvocation ceremony, held Oct. 23 at the Vancouver Conventionand Exhibition Centre.

In his convocation address, CGA-BC President Len Pietrzykowski,FCGA, challenged the graduates to abide by the highest ethicalstandards.

“It takes a special kind of courage to stand up for what you believeis right. It takes confidence in one’s self and one’s training. Maybeeven a bit of stubbornness,” he said.

Taking the “easy” way is not the way to go, he advised.

“Silence in the face of wrongdoing may seem easy at first, but itisn’t golden. In fact, silence can have a serious price. Just ask thepeople at Enron, or Global Crossing, or in Canada, the people atNortel.”

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of 2004

In her valedictorian’s address, Lisa Moore, CGA, encouraged her fellowgraduates to keep on learning.

“This is not the end of the road of learning, this is only the beginning,”she said. “We will need to continue the learning process in order tokeep up to date with all the changes in the accounting environment.”

About 1,000 friends and family members were there to cheer on thenew CGAs, along with special guests from the province’s universitiesand colleges.

For the complete list of awards presented atconvocation see page 22.

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Congratulations to all the 2004 awardwinners. Awards were presented at con-vocation on Oct. 23 in Vancouver.

Ambassador of Distinction Award

Brian Friedrich, CGA, SurreyLaura Friedrich, CGA, Surrey

CGA-BC Educational Foundation Awards

Level 1 to 4 Tuition Scholarships - 1,500 eachLevel 1 • Heather McDermid, VancouverLevel 2 • Stanley Chwist, Powell RiverLevel 3 • Colin Johnstone, VancouverLevel 4 • Subramanian Balakrishnan,

Vancouver

ACCPAC International Scholarship - $500Udo Storm, Vancouver

Dave Elder Memorial Prize in Accounting - $1,000Ming Ge, Burnaby

Dulay Burke Financial Recruitment Scholarship - $1,000Lisa Adam, Victoria

CCH Canadian Scholarships - $1,000 eachTaxation 1 • Avtar Dhaliwal, SurreyAuditing 1 • Melanie Wortley, FernieTaxation 2 • Alan Tung, Vancouver

Robert Half International Award - $1,000 Marisa Paitson, CGA, Port Hardy

Barbeau Silver Medal - $1,000Lin Sun, Burnaby

David B. Reid Scholarship - $1,000Dianne Isaac, Maple Ridge

W. Curry McCalpin Award - $1,500Lisa Moore, CGA, Williams Lake

CGA-Canada Awards and Scholarships

Awards of Excellence - $1,000 eachLevel 3 • Udo Storm, VancouverLevel 4 • Subramanian Balakrishnan,

Vancouver

Award of Excellence - PACE Level - $1,500Marisa Paitson, CGA, Port Hardy

AXA Canada Award - $5,000Lisa Moore, CGA, Williams Lake

National Top 10 AwardsLisa Moore, CGA, Williams LakeMarisa Paitson, CGA, Port HardyPamela Felix, CGA, VancouverAgni Exarchoulis, CGA, Vancouver

Special thanks to all the Friends of the Foundation dinner prize donors:

• YWCA of Vancouver• Glenda Bauman, CGA• Sun Peaks Resort Corp• Renaissance Vancouver Hotel

Harbourside• Delta Sun Peaks Resort• ProGroup Sales & Leasing Inc.• Swan-E-Set Bay Resort & Country Club• Angel Foods Restaurant Management• Hy’s of Canada Ltd.• Cactus Restaurants Ltd.• Connaught Education Services• Self Counsel Press• Fraser Milner Casgrain LLP• London Drugs Limited• Delta Vancouver Suites• Canadian Springs Water Company• Le Kiu Importing Co. Ltd.• CGA-BC’s Marketing &

Communications, Member Services and Student Services Divisions

K U D O S

C G A E V E N T S

M i l e S t o n e s

Murray Braithwaite, CGA,has been appointed to the Col-lege of New Caledonia’s Boardof Governors. Murray lives inMackenzie where he is a part-ner in Terlesky, Braithwaite,Janzen, CGAs.

John Pankratz, BBA, CGA,has been appointed to theCRA’s Appeals Advisory Committee. The CRA AppealsAdvisory Committee is a groupof private-sector individualsthat helps the CRA identifyways to improve its fairness andredress programs.

The Yukon’s top cop is also aCGA. David Shewchuk,CGA, of Whitehorse, becameCommanding Officer of theYukon’s RCMP in the summer.He was previously based inCalgary as the officer in chargeof the national organized crimeinitiative in the NorthwesternRegion.

Brady Jepsen, CGA, of Surrey, was promoted to beCIBC’s District Leader, SmallBusiness for the Fraser ValleyDistrict and started his new jobin October. Jepsen was alsoCIBC’s Run for the Curechampion for the Fraser ValleyRun on October 4, 2004. Runfor the Cure raises money tofight breast cancer.

Sylvia Plotnikoff, CGA, recentlybecame a partner with theKemp Harvey Group at theGrand Forks office of KempHarvey Burch Plotnikoff.

Dan Nichvoldow, CGA,recently became a partner withthe Kemp Harvey Group at the Kelowna office of KempHarvey Hunt Ward.

Carolyn Laidman-Betts, CGA,recently became a partner withthe Kemp Harvey Group at theVernon office of Kemp HarveyLaidman-Betts.

East Meets WestCGA-BC President Len Pietrzykowski, FCGA, presents a watercolour print of Vancouver, to CGA Hong Kong on a recent visit.

Leadership SummitCGA-BC sponsored the Vancouver Board of Trade’s Greater Vancouver LeadershipSummit on Friday, Nov. 19, at the Fairmont Waterfront. Premier Gordon Campbellgave the opening speech on his vision of B.C.’s future.

continued on page 23

continued from page 22“We are ready to launch, we are ready to move out, we are readyto lead, and I have confidence in every industry in B.C.,” he said.

Wynne Powell, FCGA, president, COO and director of Lon-don Drugs, took part in a luncheon CEO panel on how to keepB.C.’s economy growing. CGA-BC’s Second Vice-PresidentMoe Jones, CGA, was on hand to introduce Powell to theroom full of business leaders.

Top CGA promotes ethical businessAnthony Ariganello, FCGA,president and CEO of CGA-Canada, spoke to a Nov. 30Vancouver Board of Trade lun-cheon, on clarity, transparencyand accountability in financialreporting.

“Solid business principles,sound ethics and good fiduciary

responsibility are nothing new,” saidAriganello. “But in this post-Enronworld, the need for clarity, transparen-cy and accountability in financialreporting has never been more criticalor more important.”

CGA-BC co-sponsored the luncheon,which was attended by about 200 busi-ness people.

Old friends meet againPast CGA-Canada Presidents BillMann, FCGA, and Brian Adams,

FCGA, met at the President’s Banquet and Awards Gala at Con-ference 2004 in Victoria. Mann, CGA-BC President in 1960, andAdams, CGA-BC President in 1974, have known each other forover 40 years.

Plan to meet old friends and make new ones at Conference 2005(see page 25 for details).

World accounting leaders pursueroads to economic stabilityCGA-Canada’s President and Chief Executive Officer AnthonyAriganello was one of more than 100 leaders of nationalaccountancy institutes who met in Paris last month to takeaction on issues ranging from corporate governance and devel-oping nations to convergence and international standards. Theforum for talks was the International Federation of Accoun-tants’ (IFAC’s) Board and Council meetings.

“As a founding member of IFAC, CGA-Canada fully supportsIFAC’s tradition of championing high quality global standards forthe profession,” said Ariganello. IFAC members met to find waysaccountancy can contribute to economic growth and stability.

IFAC sets international standards of ethics, auditing and assur-ance, education and public sector accounting. Its membershipconsists of 163 professional accountancy bodies in 119 coun-tries, representing more than 2.5 million accountants.

IFAC also signed a Memorandum of Understanding with theInstitute of Internal Auditors. The two bodies will participate injoint activities, including those related to corporate governanceand the accountability of public sector organizations.

For more information on IFAC membership and activities,visit the IFAC Website (www.ifac.org).

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Pictured top to bottom: Premier Gordon Campbell; Anthony Ariganello, FCGA, president and CEO of CGA-Canada; Left to right:Bill Mann, FCGA and Brian Adams, FCGA; Left to right: RaymondYeung, FCGA; Charles Lau, President CGA-Hong Kong, GordonChan, FCGA, Chair, International Tax Practitioners and BusinessConsultants Group; Brian Galloway, CGA; Len Pietrzykowski, FCGA,President, CGA-BC; Dave Fairhall, CGA; Helen Kwok, FCGA; Tina Peters, CGA; Joan Anderson, CGA and Sunny Sun, CGA.

C G A N E W S

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C a l e n d a ro f E ve n t s DECEMBER 200401 Wednesday

• PD ~ Breakfast Seminar: Investment Pitfalls and Planning Opportunities

• Regional PD Victoria

02 Thursday• Regional PD Victoria

03 Friday• PD ~ Assertion, Supervisory &

Leadership Skills

06 Monday• PD ~ Tax In Focus ~ Part III

07 Tuesday• PD ~ Tax In Focus-Part III• PD ~ Breakfast Seminar: Quality

Customer Service

08 Wednesday• PD ~ Tax In Focus ~ Part III• Southern Vancouver Island Chapter:

Christmas Social

09 Thursday• PD ~ Tax In Focus-Part III• PD ~ Breakfast Seminar: Materiality• PD ~ North Okanagan Chapter:

Creating and Using a Business Case

10 Friday• PD ~ Pay Attention to Payroll

1 1 Saturday• PD ~ Richmond/South Delta

Chapter: Personal Information Protection Act

13 Monday• PD ~ North Coast/Bulkley Chapter:

Community Charter

14 Tuesday• PD ~ Breakfast Seminar:

Behind the Investment Process

31 Friday• Educational Foundation

charitable contribution deadline for 2004

JANUARY 200510 Monday

• PD ~ CICA Handbook Seminar

11 Tuesday• PD ~ Breakfast Seminar: Shareholder

Agreements• PD ~ CICA Handbook Seminar

12 Wednesday• PD ~ Practice Management (Pro I)

14 Friday• PD ~ Review and Compilation

Engagements (Pro II)• PD ~ Trust Audits (Pro IV)

15 Saturday• PD ~ Review and Compilation

Engagements (Pro II)• PD ~ Surrey/Langley/North Delta

Chapter: Forensic Accounting

17 Monday• PD ~ Small Audit Program (Pro III)• PD ~ North Coast/Bulkley Chapter:

Will & Estates Planning

18 Tuesday• Small Audit Program (Pro III)

19 Wednesday• PD ~ Advisory Services and Future:

Oriented Financial Information (Pro V)• January PD

20 Thursday• January PD

21 Friday• January PD

22 Saturday• PD ~ Richmond/South Delta

Chapter: Tax Update 2005• PD ~ Tri Cities/

Ridge Meadows Chapter: Annual Tax Update

25 Tuesday• PD ~ Workplace

Law 101: What You Need to Know

28 Friday• CICA Handbook

Seminar• PD ~ Vancouver

Chapter: Income Tax Update

29 Saturday• CICA Handbook Seminar• PD ~ Burnaby/ Royal City Chapter:

Tax Update

31 Monday• CPD Reporting Deadline

FEBRUARY 200501 Tuesday

• PD ~ Financial Statement Presentation• PD ~ Fraser Valley Chapter:

Annual Income Tax Update

03 Thursday• PD ~ Breakfast Seminar:

Advising an Insolvent Client

04 Friday• PD ~ Practice Management (Pro I)

05 Saturday• PD ~ Practice Management (Pro I)• PD ~ North Shore/Sunshine Coast

Chapter: Annual Income Tax Update

10 Thursday• PD ~ Breakfast Seminar: Succession

Planning for Small Business

11 Friday• PD ~ Review and Compilation

Engagements (Pro II)• Financial Forum: Vancouver

Convention & Exhibition Centre

12 Saturday• PD ~ Review and Compilation

Engagements (Pro II)• PD ~ Surrey/Langley/North Delta

Chapter: Tax Update• Financial Forum: Vancouver

Convention & Exhibition Centre

13 Sunday• Financial Forum: Vancouver

Convention & Exhibition Centre

15 Tuesday• PD ~ HR Management for Controllers

16 Wednesday• PD ~ Introductory Controllers' Program

17 Thursday• PD ~ Corporate Governance & Risk

Management

18 Friday• PD ~ Small Audit Program (Pro III)• PD ~ Corporate Governance & Risk

Management

19 Saturday• PD ~ Small Audit Program (Pro III)

21 Monday• PD ~ Investing Excess Cash

24 Thursday• PD ~ Breakfast Seminar: After the

Fact Tax Repairs

25 Friday• PD ~ Trust Audits (Pro IV)

26 Saturday• PD ~ Advisory Services and Future:

Oriented Financial Information (Pro V) • PD ~ Tri-Cities/Ridge Meadows Chapter:

Ten Common Mistakes of Investors• PD ~ Burnaby/Royal City Chapter:

Tech Update

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Save that datefor 2005

P reparations are already underway for Conference 2005, so mark these dates onyour calendar: Sept. 28 to Oct. 2, 2005.

The Grand Okanagan Lake-front Resort inKelowna will againplay host to ourannual conferenceand trade show.

We have alreadyconfirmed thatour two mostdedicated colum-nists will be thereto lead professional development seminars.Taxtalker Ed Kroft will present perennial favourite TaxUpdate.And TechView columnist John Yu will alsobe there—his sessions are always popular.

Completely coincidentally, Conference 2005 overlaps with the beginning of the Okanagan’s Fall Wine Festival (on from Sept. 30 to Oct. 9) – the perfect opportunity to combine a trip to conference with a wine-tasting vacation.

Watch for more details in the conference

section of CGA Online or contact Tracey Tse,

Association Events Manager, by email at

ttse@cga-bc.org or at (604) 730-6212.

CGA-BC

O n l i n e

Disciplinaryreports availableonlineDisciplinary Activity Reportsare available on CGA Onlineat www.cga-online.org.Toview the latest report, sign into CGA Online.At the top ofthe main page, choose theStandards button and thenthe Regulatory Process but-ton.Then, from the navigationsection on the left side of thepage, select DisciplinaryActivity Reports. CGA-BC isrequired to publish its disci-plinary activities to all mem-bers and students in accor-dance with the Bylaws.

Members on themoveWho’s in, who’s out, who’smoved: memberships reportsare available on CGA Online.Once you’ve signed in, clickon “Membership Report”under It Matters for the lat-est membership report.Themonthly report includes a listof new graduates and thosemembers who have trans-ferred into or out of theprovince.Also listed are anynew public practice registra-tions.

Outlook is onlineArchived issues of Outlook,from 1999 to the present, areavailable on CGA Online inPDF format. Just click onResources and then Publica-tions to view.

F i n a l Wo rd

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I t’s an article of hockey lore that WayneGretzky became the Great Onebecause he had the uncanny ability to

skate to where the puck was going to be,not where it was. That knack of being ableto read the play slightly ahead of the actionis what determines success, whether it’s inbusiness or sports.

Throughout our nearly 100 year history,CGAs have shown a remarkable capacity tostay ahead of the competition, to knowwhere the puck, teammates and opponentsare going to be, not merely react to wherethey are now. CGA pioneered distancelearning when most professional bodies werefixed on bricks and mortar learning. Weintegrated ethics instruction into our pro-gram years before words like Enron, gover-nance and transparency burst on to the pub-lic stage. We developed a bachelor’s degreerequirement and put in place innovativepartnerships to help students meet that goal.CGA, its members and their employers,saw the benefit of accounting professionalswho gained real-world, practical experiencein a wide range of settings no matter wherethey practised. And so it is with the latest developmentswithin the Canadian accounting professionregarding the on-again, off-again mergerand changes to our competitors’ certifica-tion processes. The uncertainty around themerger is so great that CA spokespersonsare now saying that the discussions werereally never about a merger—just aboutimplementing a new strategic plan and creating a designation that meets thechanging reality of the profession. For CGA, we have always maintained itwas business as usual and about maintain-

ing the comperitive advantage of theCGA educational program and designa-tion; it was never just about the merger.We were and are mindful of the changesfacing the profession. We know that theCAs are facing a shortage of qualifiedCAs, and that their market share hasshrunk significantly largely as a result of

increased competition fromother professionals, notably us.We face challenges as well. Wealso know that in a world wherebusiness sees no discernible dif-ference between the majoraccounting designations, wehave to sharpen our competi-

tive skate-edge and look ahead.CGA-BC’s strategic plan is focused on oneuncompromising goal: that the designationwill be the province’s number one profes-sional accounting designation. That meansthat our members will be viewed as theaccounting professionals of choice andprospective students will think of CGA astheir first and final option for career suc-cess. To see that we meet that goal, we havedeveloped three very interrelated centralplatforms: recruitment, employment andempowerment. The third ultimately sup-ports the first and second. Recruitment: As it stands today, theAssociation accounts for two-thirds of allstudents enrolled in post-secondaryaccounting studies in the province. Ourgoal is to increase that number by contin-uing to offer a professional education pro-gram that meets the needs of our marketplace. Over the next few months, you willsee several initiatives that will give us aneven greater on-campus presence.Employment: A key focus of the Associ-ation is to act as an advocate for our mem-bership and ensure that CGAs are preparedto take the top positions in the profession.

Again, you will see new initiatives promot-ing career opportunities for CGAs. We have begun work on an exciting newinitiative called the Preferred Employer Program, which will commence as a pilotproject over the next three months. Thisinvolves a process that will allow the Asso-ciation to develop special links withemployers, to help us develop closer tieswith the business community and providegreater support to our students. Thisendorsement of our education program bymajor employers will also provide an addi-tional validation of the value and recogni-tion of CGA in the marketplace.Empowerment: In some ways, this isour most important initiative. The pro-gram will see the Association call uponmembers and students to act as ambas-sadors of the designation. This involvesproviding information to you that helpsyou advance your career, as well as provideresources that will promote the designa-tion. Watch for these initiatives over the comingmonths. Since we are increasingly relyingon e-mail communication, I stronglyencourage you to go to CGA Online andregister your current e-mail address. It really is the beginning of a new era inthe Canadian accounting world. We havean outstanding professional educationprogram. We possess unique educationalpartnerships with Laurentian Universityand the Southern Alberta Institute ofTechnology. We have high levels of recog-nition in business, government and edu-cation. CGAs have a number of impor-tant victories behind them. CGAs inOntario now have public practice rights.Our Quebec colleagues are in the finalpush to obtain their rights. Members inCanada’s smallest province, PrinceEdward Island, are also poised to gainrights. Yes, we know where the puck is headedand we’re confident we know where weneed to get to.

Staying Ahead of the Puck

By Len Pietrzykowski, FCGA

Equipping members for a world of change.

Len Pietrzykowski, FCGA, is the President of the Certified General Accountants Association ofBritish Columbia. To have the president or another CGA-BC representative speak at an event, contact Tracey Tse at (604) 730-6212 or ttse@cga-bc.org.

CGAs have shown aremarkable capacity to

stay ahead of the competition.

The federal Income Tax Act recognizes that students incur costs related to their education in excess of actual tuition. As a result, students are entitled to a tax credit in the amount of $400 per month for full-time students and $120 permonth for part-time students. Historically, employed individuals have not been eligible to claim the education taxcredit if the program is directly connected with their current employment, even if they pay the expenses themselves.This restriction has directly affected many CGA students trying to fulfill their practical experience requirement.

The March 23, 2004, Federal Budget announced that this restriction would be removed for 2004 and subsequent taxation years, provided that the employer does not reimburse the student for any of his or her education costs. The amendment was brought another step closer to law on September 16, 2004, when the draft legislation, consistent with the budget announcement, was released. The government has also announced that it intends to introduce, at the earliest opportunity, a bill to implement these measures. CGA students and members advising students should monitor this draft legislation.

The mission of the CGA-BC Educational Foundation is to provide financial assistance to deserving students pursuingthe CGA designation. While the draft legislation is consistent with the Foundation’s goals and will help many of ourstudents, it still only goes a small way to ensuring access to the CGA program. The fact that the government hasaddressed this issue highlights the fact that there is substantial need among many students for support in pursuingtheir career ambitions.

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