Ali Pejman, CA - Institute of Chartered Accountants of BC

The Galloping Impact of
Technology on the CA Profession
Member Profile:
Ali Pejman, CA
Beyond NUMBERS
September, 2000, No. 396
Published by the Institute of Chartered Accountants of British Columbia

Beyond Numbers
Contents
September 2000, No. 396
Published 10 times annually by the Institute of
Chartered Accountants of British Columbia.
Director of External Affairs
Lesley MacGregor
Layout & Design
Tammy Carter
Advertising
Advertising In Print
Telephone: (604) 681-1811
Facsimile: (604) 681-0456
Cover: Realm Communications Inc.
Institute Council
Chuck Chandler, FCA
Frank Barr, CA
Robin Elliott, FCA
Terry Jonat, CA
Jack Arnold, CA
Robert Burrows
David Chucko, CA
Leslie Cliff
Johan de Rooy, FCA
Mark Dickie, CA
Brian Downie, CA
Chief Executive Officer
Richard Rees, CA
Council Secretary
Eleanor Joughin
President
1st Vice President
2nd Vice President
Treasurer
Beyond Numbers is printed in British Columbia
and mailed 10 times annually to more than 8,000
chartered accountants and 900 CA students in public
practice, industry, education and government service
throughout B.C., Canada and other countries.
Beyond Numbers’ editorial and business offices are
at 6th floor, 1133 Melville St., Vancouver, B.C. V6E 4E5
Phone: (604) 681-3264
Toll-free in BC: 1-800-663-2677
Fax: (604) 681-1523
Internet: www.ica.bc.ca
Opinions expressed are not necessarily
endorsed by the Institute.
Beyond Numbers supports the CA profession in B.C.
by sharing news from the Institute and news about
members, by sharing viewpoints on issues of specific
interest to members, and by promoting member
involvement in Institute activities.
Publication Agreement Number: 1475940
Odd Eidsvik, FCA
Ross Fraser
Paul Grehan, CA
Janet Heino, CA
James Mills, CA
Douglas Murphy, CA
Margaret Parkinson, CA
Features
6 Cover Story:
The Galloping Impact of
Technology on the CA
Profession
12 Firms Like Wolrige Mahon
Get a Head Start on
Attracting Top Talent
13 Coming This Month -
BC Check Up
14 High-Tech Leader Launches
BC Business Summit 2000
18 Under New Management
20 Procedures For Election
of Fellows
23 Registrar Retires
After 26 Years
24 Communications Director
Moves to ICBC
Sections
4 For the Profession
5 President’s Notes
22 Member Profile:
Ali Pejman, CA
25 Tax Traps & Tips
27 Employment Opportunities
29 At Your Service
30 Classifieds
30 Notes on Members
Our Mission
The mission of the Institute of Chartered
Accountants of British Columbia is to protect and
serve the public, our members and students by
providing exceptional education, regulation and
member services programs so that chartered
accountants may provide the highest quality of
professional service.

For the Profession
By Richard Rees, CA
CEO, Institute of Chartered Accountants of BC
This issue of Beyond Numbers
focuses on the impact changing
technology is having on the
CA profession. It is also changing the way
we work at the Institute. On the one hand,
our environment is becoming increasing
complex and expensive – making it
increasingly difficult to deliver relevant
services at a reasonable cost. On the other
hand, new technology is creating opportunities
for the Institute to rationalize and
deliver programs and services in a more
economical manner. In B.C., we are doing
everything we can to harness the opportunities
presented by technology to maximize
member value.
The B.C. Institute has a long track
record of taking advantage of economies of
scale. We have been keen participants in the
move to a consistent database program that
allows sharing of information
interprovincially and with CICA. We have
also joined with other western provinces to
economize on the delivery of education
with the new CA School of Business.
These moves to greater coordination
have been strongly endorsed by Council –
and they await with interest further
opportunities to collaborate to keep costs
down and enhance service to members.
Their desire for increased cooperation is
being aided by a new national initiative
focussing on member value maximization.
The first step in this process is the
commissioning of an independent study to
review the plans and budgets of all
Institutes in Canada to identify areas for
enhanced cooperation and coordination
through delivery of common services. The
study is rooted in the evolving governance
model in Canada, which promotes greater
formal and informal information sharing,
and takes advantage of emerging Internetbased
delivery options.
The project is being managed by a
committee composed of four Presidents,
each representing a region of Canada, and by
representatives of the CICA and provincial
Institute staff. I am pleased to tell you that I
am the provincial Institute representative.
The project is just getting underway,
but will include:
• Identifying common activities,
priorities, and processes;
• Comparing and evaluating resource
requirements;
• Identifying opportunities to improve
efficiency and effectiveness; and
• Identifying alternative service delivery
approaches.
The results of the project will help to
increase efficiency and will address
changing member needs as firms globalize,
members and students become
more mobile, and the need for instant
information becomes more the norm.
It is never easy to harmonize 13
independent entities – particularly when
they offer different services, operate on
varied systems, and have diverse regulatory
environments. However, there are
substantial commonalities between the
Institutes and a strong resolve from the
volunteer leadership to pursue common
solutions. B.C. is playing a strong role in
promoting this cooperative spirit and
ensuring that it results in bottom-line
savings for members in the province.
I hope to report significant progress in
maximizing your member value in the
months ahead.
4 Beyond Numbers / September 2000

President’s Notes
By Chuck Chandler, FCA,
President, Chartered Accountants of BC
“Change has considerable psychological
impact on the human mind. To the
fearful it is threatening because it means
that things may get worse. To the hopeful
it is encouraging because things may get
better. To the confident it is inspiring
because the challenge exists to make
things better. – K. Whitney as quoted by
the Wall Street Journal.
Globalization – It’s as easy as XYZ
It’s amazing how much business has
been impacted by technology, especially
the Internet, over the past few years. And
the pace of change is increasing still. A
few years ago I would have thought that
global business meant big business.
Today, we are all very much connected to
events and transactions around the world.
As CAs, we’re in the front lines of this
change, whether it’s preparing financial
statements that include US GAAP for the
burgeoning US equity markets, or
establishing e-commerce for global
business transactions. In this issue of
Beyond Numbers, you will find profiles of
how technology has changed the life of
eight CAs in B.C. Even in my own firm of 22
people, we have 2 CPAs who have
attempted and passed the reciprocity
exams. A third has headed off to
California to pursue her dreams — part of
the “brain drain” that officially doesn’t
exist.
In keeping with these real life trends,
the CICA is working with other national
accounting organizations to develop a
global professional business designation
(as yet unnamed – “XYZ” for now). The
designation is intended to reflect all the
services that members currently provide
and all of the high-opportunity work that
the profession identified in the Vision
process. Benefits are intended to accrue to
designation holders, employers, and
buyers of services. Negotiations on the
specifics of the designation and entrance
requirements are ongoing. The CICA is
keeping the BC Institute abreast of the
changes, and we’ll keep our members
informed as events unfold.
Creating the Vision CA – Taking on
the Challenges of Business in the
New Millennium
At our last full Council meeting in
May, I asked our Council members what
was the most pressing issue facing our
profession. Virtually everyone put
attractiveness of the profession at or
near the top of the list. A survey of
recent literature and statistics points us
in the same direction. One major
executive recruiter commented that she
“fears the CA firms are losing out on
recruiting young people out of university
because so many do not want to
spend their entire articling period
auditing.” Interestingly, 80% of the
searches for senior personnel at this
recruiting firm are for CAs because of
their perceived integrity and the credibility.
The next issue of Beyond Numbers
will be dedicated to young CAs – the
challenges they face in becoming CAs, the
opportunities available to them when they
have their designation, and the ways the
B.C. Institute is responding to these issues.
The CICA’s 1996 Vision Report recognized
the issues, and the need for business
advisors who are forward thinking and
strategically motivated in a global
economy. The Education Re-Engineering
Task Force built recommended a framework
for competency based learning. That
would strengthen the link between CA
formal education and the candidate’s on
the job performance. A “core plus focus”
model was recommended to accommodate
the expanded training in other areas such
as IT and finance.
Together with our fellow western
provincial and territorial Institutes, the
BC Institute has embraced the ERTF
model and this Fall will be recruiting
students to our new CA School of Business.
This year, when recruiters speak to
students, they can offer them a professional
career that provides choice, the
ability to select a focus or specialization
down the road, and even the ability to
complete part of their training outside of
public practice.
Students who may have been
leaning towards an MBA or a finance
degree are now going to have to take a
hard look at the CA option as being the
best business degree available. Will it be
just as tough to get a CA? You bet. But
the rewards for people wishing to enter
our profession will be far more favourable.
I invite you to check out the new
CASB website at www.calearn.com.
My thanks and best wishes to past
president John Dawson FCA (chair of
CASB board) and Dr. Don Carter FCA
who, together with CASB board member
Tom Kirstein, CA and new board
member Roger Wolff (Dean of Business
at Uvic) are leading the way as BC’s
representatives on CASB.
More on Your New Council.
In my last column I welcomed three of
our four new council members. I neglected
to welcome Margaret Parkinson, CA. My
apologies! Margaret is a long-time volunteer
with the Institute and I’m looking
forward to working with her on Council.
My thanks to “the big guy”
As you saw in last month’s Beyond
Numbers, the Institute’s former Director
of Ethics, Brian Gardiner, CA has hung up
his Institute skates to pursue exciting
opportunities in the field of governance
and advocacy with HLB Cinnamon Jang
Willoughby. Welcome back to
timesheets there, big guy. You’ve left a
legacy of hard work that has kept our
profession in BC ahead of the rest in
public perceptions of maintaining high
standards of ethical and professional
conduct. Best wishes to you.
I encourage you to e-mail
president@ica.bc.ca with your comments
at any time.
September 2000 / Beyond Numbers 5

Cover Story
The Galloping Impact
of Technology on the
CA Profession
By Deborah Folka, APR
We wanted to know how CAs are dealing with the
impact of technology on the profession, so we
asked eight members — four from public
practice and four from industry — to give us their opinions on
how technology has affected their individual careers, their
clients or employers and what they think of the global impact
of technology on the profession.
6 Beyond Numbers / September 2000

September 2000 / Beyond Numbers 7

As the technology partner with the
Vancouver CA firm of Nordahl
Craig Cummings & Gares, Chartered
Accountants, Gordon Baldwin, CA, is
acutely aware of the effect of technology.
“I’m totally wired at
the office, using
Outlook extensively
and I have a computer
at home where I
mostly rely on
hotmail, but so far no
Palm Pilot device,” he
says. “A few years
ago, when I set up
shop as a sole practitioner, it was technology
that allowed me to get started with
little overhead. You couldn’t have done
that long ago.”
Baldwin says clients’ use of technology
is “a mixed bag.”
“Sure, everyone has computers now,
but so many of them in small to mediumsized
businesses don’t have the capabilities
to fix their technology problems; they
don’t have an IT department,” he explains.
“So often they don’t get the full advantage
of the technology they’ve purchased. But
this is where our expertise has been
developed because they naturally turn to
our firm for software recommendations or
solutions to their technology issues.”
Baldwin says clients are all moving in
the same direction, though some are
slower than others and, at the other end of
the spectrum, some are keen to get into e-
commerce.
“Certainly, in doing our tax work and
meaningful reports for clients, technology
has helped immensely,” he points out. “I’ve
even been able to do custom installation of
a technology system developed for a
company in the fishing industry which
was just perfect for them.
“And, as far as the CA profession is
concerned, just look at the rapid advances in
tax software,” he says. “You can do a T-1 in
15 minutes while the client sits in front of
you. But, just like with our clients, not
every firm is taking advantage of the
technology available. Some are resistant to
change and some are intimidated by what
they perceive to be a steep learning curve.
“The Internet offers lots of great
opportunities for CA firms,” he points out.
“It’s hard to get and keep good staff today so
our firm is making it as easy as possible for
staff to have remote computer access. When
family issues come up or if someone wants
to tele-commute, we have the capability
without any work or time being lost.”
A CA since 1979, Baldwin has been in
both public practice and industry. He says
he thinks keeping up on the latest technology
will help CAs stay competitive and be
able to generate good incomes. But he
cautions “the paper-based world is not
dead yet and you have to be careful, even
with the most sophisticated software
programs that your information going in
is accurate or you’re making decisions
based on bad information.”
In the investment dealer industry
that Martin Burian, CA, CBV deals
in, technology has had a huge impact.
Burian, Vice President of Corporate
Finance at Canaccord Capital Corporation
and a CA since 1990, says he has seen the
greatest changes in the last five years.
“Our dependence on computers, e-
mail and information technology generally
has increased tremendously,” he says.
“We’d find it tough to function without it
because of the ease of sharing documents
and transferring information. Things are
done so much faster, often through several
time zones, the best technology is essential
to our business.”
Burian is “totally plugged in” at the
office, but away from there only carries a
cellular phone which he uses judiciously.
“When I’m at a client’s, I want to be
totally focused and I can’t be distracted by
cell calls or a laptop rattling off e-mail,” he
points out. “In our industry, the Internet
has leveled the information access playing
field and now anyone can get a stock
quote or financial statements or other
financial information in real time for free.
So we have to work harder to provide
relevant information to clients.”
Burian says the costs of accessing
information are still here and, in fact, are
increasing from companies that disseminate
well-organized, relevant information.
“On a global scale, we see and finance a
lot of technology companies and I believe
that sector will continue to have a big
impact on all of us. Businesses of all kinds —
and the CAs associated with those businesses
— will have to acknowledge it and
use it or they won’t survive,” Burian says.
Like Burian, Mark Brown, CA, is in
the venture capital business with
Pacific Opportunity Company Ltd. in
Vancouver and, like his colleague, has the
opportunity to see many emerging
businesses.
“CAs are expected to know a lot about
computer systems and technology in
general and we try to
keep ahead of the pack in
our business because
having that knowledge
helps us assess companies
we’re trying to assist
with capital,” he explains.
“And the speed of
technology has an
impact on how you operate as well. Communications
are a marvel and e-mail is great,
but then the client expectations rise as well.
They expect you to speed-read the 100-page
document they just e-mailed when it’s really
more important to take extra time to make
sure that the contents are well thought out.”
Brown cautioned against CAs becoming
“total techies”.
“People are hiring us for the business
principles we understand, not to be a
technology expert,” he points out. “Of
course we need to be in the forefront in
knowledge of what’s out there, but it’s our
expertise in running a business that adds
value to the equation. At Pacific Opportunity,
we rely on an external team of
experts to assess “black box” technologies.”
Brown says he is “totally wired...or
totally wireless” depending on your
perspective.
“I carry my whole office with me;
8 Beyond Numbers / September 2000

laptop, cell phone, the whole thing,” he
says. “And this all helps put deals together
more quickly and allows me to work on
several projects at the same time. The
Internet is also a valuable tool for us,
especially when travelling abroad. Of
course, these same technologies were
supposed to make our lives easier when
we really just get more done in the same
amount of time!”
Brown, who has been with Pacific
Opportunity for four years, estimates that
technology has doubled the speed of doing
business in the past year alone.
“With e-mail and cell phones, we put
together public offerings in three months
that used to take six months to do and
acquisitions in six months that would
previously have taken a year,” he says.
He acknowledges that the negative
side of rapid technology is the pressure of
increased client expectations, as well as
the increased concerns about privacy,
confidentiality and security.
“CAs just need to stay on top of it
and be aware of what’s going on out
there,” he says.
Allan May, CA, Director of Finance
for Resort Communications
Group, has been a CA since 1991 and
articled with Deloitte & Touche LLP,
Chartered Accountants. He is, by his own
admission, the “totally wireless man”.
“Cell phone, laptop, personal digital
assistant, voice mail, e-mail at home and
the office and with all those great portable
devices, I am always in touch,” May says.
But he acknowledges not everyone is
operating the same way.
“It still all depends on the client,” he
points out. “Some are on the leading edge
and have taken full advantage of technology
to minimize the paper flow and
maximize efficiencies in communications
and financial reporting and operations.
Others haven’t had this success and mostly
it’s because of a lack of long-term planning.
They don’t fully understand what exactly
the technology they’re purchasing can
do...so it doesn’t really work out for them as
well as it could. They don’t go forward with
a ‘technological road map’, as it were.”
On a global scale, May says CAs should
be aware of the opportunities technology is
providing beyond our local environments.
“Not many CAs are providing services
on a global scale yet and I think in some
cases it’s the clients holding them back —
they continue to want paper-based
comfort,” he says. “Many high-tech firms
are doing paper-free communications of
their annual reports and other financial
information, but most of the bricks and
mortar clients are not there yet.”
May says he has seen incredible
change in technology since he began his
articling in 1988.
“But for many small to medium-sized
businesses, they can’t totally accept the
new world technology has created,” he
points out. “For example, they want to
keep their computers as long as possible to
realize the depreciation benefits under the
tax rules, so many of them are keeping
obsolete machines too long and holding
back their companies from the newer
technologies. I would suggest that the tax
rules around write-offs be updated so
clients can purchase new computers, stay
competitive and get the advantage of
write-offs for re-investing.”
At Deloitte & Touche LLP’s Vancouver
office, Steve Figner, CA, sports
the title Senior Manager in Enterprise Risk
Services and focuses his work exclusively
on technology risk.
“Personally, I have seen profound
changes in technology and how that has
affected the way we do business,” Figner
says. “When I began articling in 1994, we
were still talking about mainframe environments
and today, in my department, we
all have cell phones we send e-mail from,
state-of-the-art laptops, personal digital
assistants and soon we’ll have the ability to
access network resources from our home
computers. I’ve witnessed the evolution of
the Internet, e-business
and now we’re in the
middle of a wave of
enterprise resource
planning for the large,
integrated software
programs.”
In the big firm
environment, Figner says they see larger
clients with more sophisticated technology
needs and they have geared up to
service those needs.
“Technology has introduced tremendous
opportunity into the big business
environment, but we also see how it has
introduced risk as well,” Figner points out.
“The integrity of the data, security issues,
confidentiality, privacy and so on. It’s only
going to get riskier as more and more
companies move into e-business.”
Figner says he is thoroughly impressed
that the Canadian Institute of Chartered
Accountants and the Vision Task Force
September 2000 / Beyond Numbers 9

grasped the importance of technological
change for the profession and have made it
an integral part of the CA profession.
“I’m glad to see the subject takes up a
lot of space on a regular basis in CA
Magazine,” he says. “For us in public
practice, of course it’s important to keep
up-to-date, but it’s also critical for CAs who
are CFOs or Controllers and not surrounded
by other CAs.
They need the profession helping them
understand how technology is continuing to
impact their environments.”
Figner also suggests that while the
big firms have plunged into looking at the
risks and problems associated with
technology, it’s harder for the small or sole
practitioners to do so and thus the Institute
has a role to play there.
“I think we need mentoring and
intensive professional development
around technology and the related issues,”
Figner says. “These are important programs
for all CAs.
“CAs have always been about information
and integrity,” he says. “Now these
areas have collided with the surge in
information technology and we must
remain on top of it.”
Derek Belyea, CA, MBA is with
GNA Consulting Group in
Vancouver and, for him, technology has
meant “working harder than ever before.”
“Overall, I see my cycle times for
responding to client requests dropping,”
Belyea says. “I notice that as clients adapt to
new technologies I can add more value to
their businesses with less wasted effort.
That means a lower cost to the client, even
though charge-out rates have been rising.
But I am also juggling more projects at the
same time because the technology allows it.”
Belyea acknowledges that a negative
side effect of the changes in technology is
a higher stress level.
“Everyone feels compelled to push
harder and the technology continuously
raises expectation levels,” he points out.
Belyea observes that for most of his
clients, technology investments are bigger
than ever and more critical to their
business successes.
“The range of choices that is offered is
dizzying and changes daily,” he explains.
“Clients are spending tons of money on
technology — Internet, intranets, supply
chain, ERP, CRM, data warehouses and on
and on. They know they have to — just to
keep up — but for many there is an uneasy
feeling that they are not getting it quite
right and not doing it fast enough.
“Failure to get technology projects to
succeed used to be a private matter,”
Belyea continues. “Today everyone is more
savvy about what can be done with
technology and now it can be obvious to
customers, suppliers and competitors that
you are not delivering on technology.
Customers can be fickle if you are not
meeting their expectations and competitors
will pounce when they see an opening.
The businesses that succeed know
how to make technology a competitive
tool. They do this to reduce costs, shorten
cycle times and improve quality. In many
cases, it can mean a complete re-definition
of the business.”
Belyea points out that for many
companies the CFO is often a CA with
direct responsibility for technology
investments.
“The CFO needs to understand the
opportunities for technology investments,”
he explains. “He or she also needs to know
how to drive the necessary change into the
business, how to do it on time and within
budget. This can be a tall order with lots of
risk.” Belyea suggests that the baseline
computer skills most CAs have acquired
over the last 20 years will keep on growing.
“If you are not regularly updating
your technology-related competence, it
will show,” he says. “Employers and clients
expect you to be current and are less likely
to trust your judgment in other matters if
you are not reasonably knowledgeable
about technology.
“For CAs in decision-making positions,
the challenge is to know the right amount
about technology options,” he explains.
“You need to know the agendas and the
shortcomings of the technology experts
who advise you so you’re in a good
position to make the business objectives
drive the technology decisions rather than
the other way around.”
Belyea cautions that while learning
about technology is quite exciting, it can
also be dangerous to “fall in love” with
technology solutions.
“I have seen that happen and it’s
fatal,” he points out. “This is a challenge
that the CA profession needs to address
overtly. I think there is room for more
education about the business of managing
technology and all the related change
management issues.”
Jim McCulloch, CA, a tax partner
with the Vancouver firm of Rolfe
Benson, Chartered Accountants, has been
around technology for a long time. A CA
since 1970, he remembers being “forced”
along with all his tax colleagues into
learning how to use Osborne computers
and a program called “Visicalc”, the original
spreadsheet.
“Today it’s e-filing, totally computerized
tax forms, project modeling and
excellent tax research resources on the
‘net or CD ROM updates,” he says. “It’s
been a remarkable 20 years.”
McCulloch himself has been ‘wired’ at
both home and office for at least 15 years
and relies heavily on his Lotus organizer.
He carries a cell phone, but no laptop — at
least not yet.
“For clients, technology has meant so
many improvements, it’s just marvelous,”
he explains. “The computerization of all
aspects of accounting — for example, the
paperless audit and fully integrated
systems — have improved operations and
reporting immeasurably. And of course e-
commerce will be a big market in the near
future, though it means issues of security
and privacy, too.”
McCulloch admits there are some
clients — and even some staff — who are
resistant to technology, but “those
numbers are small and dwindling all the
time”.
“I know it can be a long, slow process
for some older CAs, especially when every
CA student or young CA who comes
through the door is so keen on all aspects
of technology, but you have to embrace it,”
McCulloch says. “CAs must go for all the
technological knowledge they can acquire
and always be on the leading edge. Clients
and employers expect it, demand it.”
Right now, McCulloch says he’s
working with voice-recognition software
for dictation (“it’s not quite there yet”) and
he’s convinced we’ll all have personal
information managers soon.
Travis Bryson, CA, “unplugs”when
he’s at home. “I haven’t let technology
grab too much of my life at home,”
Bryson says. “There’s no cell, no laptop and
no pager there. At work, it’s another story.
There I’m totally plugged in.”
Bryson, a CA since 1996, is the
Manager of Business and
Technology Solutions at
BDO Dunwoody LLP in
Vancouver. He says he
remembers his first
encounters with 286
computers during his
articling days in the early
‘90s. [cont’d on page 24]
10 Beyond Numbers / September 2000

Putting Transfer Pricing
into Practice
Trying to find how you can
make the most of transfer
pricing opportunities? Look no
further! The BC Professional
Development program is
offering you a unique opportunity
to hear three leading
experts tell you how in this
exciting new seminar.
“Transfer Pricing & Foreign Tax
Credits,” will provide participants will
real-life insight into a variety of
transfer pricing issues. A case study
will be presented by tax and trade law
specialist Terrance Sweeney, BA, LLB, a
senior tax partner in Borden Ladner
Gervais LLP – Toronto office. The study
deals with an Italian company and its
Canadian subsidiary, and will cover
the law, current administrative
practices, and other issues.
Instructor Lionel Newton, CA,
practises in the area of cross-border
taxation, estates, and litigation
support. He will address tax credits
related to foreign income, including
what to watch for, recognition,
timing, and utilization of credit
alternatives. Key areas of the Canada-
U.S. tax treaty will also be covered.
Bob Crawford, CA, ATII, will bring
a European perspective to the seminar.
Crawford is a specialist in helping
corporate and individual clients
reduce their tax burden while complying
with domestic and international
laws. During the seminar, he will
discuss the movement of goods in the
European market. Key VAT-related
issues will also be covered, an area of
where Crawford is an authority as he
serves on the VAT Tribunal. He also
chairs the Scottish Institute’s e-
commerce initiative.
To register call the ICABC Professional
Development Department at
(604) 488-2641, toll-free 1-800-663-
2677, fax, (604) 684-1267 or e-mail
ong@ica.bc.ca
Code T0310a
October 27
9am-5pm
Sutton Place Hotel
Non-Member $595
Member $495
Passport Invalid
PD Week Schedule
Victoria September 25th - 28th Harbour Towers Hotel
Surrey October 2nd - 4th Guildford Sheraton Inn
Parksville October 11th-13th Best Western Bayside Inn
Vancouver October 23rd - 28th Sutton Place Hotel
Kamloops November 6th-8th Coast Candian Inn
Kelowna November 20th-24th Grande Okanagan Resort
PD Schedule
Vancouver Schedule
(excluding PD Week, see flyer enclosed)
Oct 3 Employment Standards Update*
Oct 11 Effective Instructional Skills**
Oct 12 Income Tax Update
Oct 13 Understanding US Immigration**
Oct 14 Introduction to the Mining Industry
Oct 14 Rules & Standards
Oct 16 Caseware 2000
Oct 16 Business Process Re-engineering
Oct 17 Caseview I
Oct 17 Balanced Scorecards
Oct 18 Caseview II
Oct 18 Getting Ready for e-Business
Oct 18 Taxation of Emigrating Canadians*
Oct 19 Accounting & Auditing Update
for Mutual Funds
Oct 19 Motivating Your Staff Towards
Peak Performance
Oct 20 Section 85
Oct 20-21 Income Tax Refresher: Corporate
Oct 21 Effective Management Skills
Surrey PD Week - Guildford Sheraton Inn
Oct 2 Accounting, Auditing &
Professional Practice Update
Oct 2 Advanced Tax Planning
Oct 3 Business Valuation: Basic
Oct 3 Financial Statement Presentation
Oct 4 Income Tax Update
Parksville PD Week - BaysideInn
Oct 11 Review & Compilation Engagements
Oct 11 Business Valuation: Basic
Oct 12 Financial Statement Presentation
Oct 12 Advanced Tax Planning
Oct 13 Income Tax Update
Victoria PD Week - Harbour Towers Hotel
Sept 25 Purchase & Sale of a Business
Sept 26 Charitable Gift Planning**
Sept 26 Staying Out of Trouble**
Sept 26 Building an E-Business Presence
Sept 27 Accounting, Auditing &
Professional Practice Update
Sept 27 E-Business Security,
Controls & Assurance
Sept 28 Accounting for Income Taxes
Sept 28 Business Valuation: Basic
Sept 29 Income Tax Update
Kelowna Schedule
Oct 2 Caseware 2000
Oct 3 Caseview I
Oct 4 Caseview II
Oct 24 NPOs: Accounting & Auditing Issues
All seminars listed are one or two days long, except:
*executive breakfast seminar
** half-day seminar
September 2000 / Beyond Numbers 11

Firms Like Wolrige Mahon Get a
Head Start on Attracting Top Talent
By Melodie Yue
Firms like Wolrige Mahon, tax and
small business consultants, know the
importance of hiring for skill set and
mentoring their recruits to become
future leaders, managers and strong
contributors within their firm. As part
of Wolrige Mahon’s philosophy and
mindset, this mentoring approach can
almost guarantee that their CAs will
have what it takes to work effectively
with team members, communicate
clearly with clients and build the
leadership skills necessary in the
business world — whether the recruit’s
background is engineering,
finance or psychology.
Wolrige Mahon’s belief in this
mentoring approach extends beyond
the firm’s own four walls. As a major
sponsor of Leaders of Tomorrow
(LOT) , an innovative student program
started in 1999 by the Vancouver
Board of Trade, Wolrige Mahon has
committed to providing mentorship
for a select number of LOT students.
The approximately 100 students
selected for this program are top
students in their field of study with
exceptional community service,
leadership and communication skills,
which means Wolrige Mahon may have
a head-start in recruiting top new
talent to their firm.
When asked about the firm’s
participation in the LOT program,
Wolrige Mahon partner Gregg Smith,
CA states, “This is an excellent
program where the students get a
taste of what’s happening in the
business community. Often, many
students have gone straight through
school and their knowledge is all out
of a book. It’s important to mingle, get
out and learn about the experiences of
business people.”
Supporting and helping students
achieve their goals early is a win-win
for both the mentor and student, as
more firms are beginning to see and
reap the benefits of providing
mentorship to their candidates in the
early stages of their careers.
To become a mentor in The Leaders of
Tomorrow program, contact the Chair,
Glenn Young, at 684-9186 or
gyoung@itstradewind.com or the Project
Coordinator, Rebecca Clapperton at 641-1246
and rclapperton@boardoftrade.com.
Taking Control
The job of corporate controller
is being reinvented, particularly
among controllers who report to
heads of business units. The results
of an ongoing study by Gunn
Partners and Georgia State University
show that these executives are
assuming a business-partner role
in which they advise CEOs and
CFOs on strategic-planning issues.
These controllers name communicating,
acting strategically, and
influencing others as the key
competencies for their jobs in the
future. Controllers who report to
financial executives, on the other
hand, rank other competencies
higher than those three.
Source: “Corporate Controllers
Reinvent Themselves,” Financial Executive,
July/August 2000
12 Beyond Numbers / September 2000

Coming this month -
BC Check Up 2000
In mid-September, the ICABC will
be releasing the 2 nd annual BC Check-
Up, a report on living, working, and
investing in British Columbia. The
study reviews 15 economic and social
indicators and compiles LIVE, WORK,
and INVEST Indices.
This year’s report has been
expanded to include interjurisdictional
comparisons between
B.C. and the other “have” provinces
of Alberta and Ontario, as
well as the national average.
The result is a comprehensive
economic and social assessment
of Canada’s three richest
provinces.
The Institute is compiling and
releasing the BC Check-Up report to
increase both the awareness and
relevance of the profession within the
business community, news media, and
government.
In doing so, the report shows that
CAs do much more than tax and audit,
and have an important role to play in
the public policy arena of the province.
A media campaign and speaking
engagements are planned for the BC
Check-Up this fall. Institute CEO Richard
Rees, CA will be speaking to a breakfast
meeting of the Vancouver Board of Trade
on September 19 th , and a breakfast event
for the Kelowna Chamber of Commerce
on September 26 th . Events in Victoria
and Prince George are also in the works,
as are PD workshops.
Watch for a special member
mailing of the BC Check-Up 2000 this
month, and catch updates on BC Check-
Up events on the ICABC Web site at
www.ica.bc.ca.
For more information on the BC
Check-Up 2000 report, contact Craig
Fitzsimmons at 488-2625/1-800-663-
2677 or e-mail fitzsimm@ica.bc.ca
Top 10 Uses for the
BC Check-Up:
1. Write about it in your firm’s
newsletter.
2. Send a copy of the report to your
clients.
3. Send a copy of the report to
prospective clients.
4. Write a column in your local
newspaper about the results of the
report.
5. Use the information when advising
clients on the investment
climate in B.C.
6. Include copies of the report in your
office’s lobby or waiting area.
7. Consider giving a speech on the
report in your community.
8. Put the BC Check-Up report on
your Web site.
9. Show the report to your non-CA
colleagues.
10. Bring your clients to BC Check-Up
speeches in your area.
September 2000 / Beyond Numbers 13

High-tech leader launches
BC Business Summit 2000
The second-ever BC Business
Summit conference will be held on
November 18-19, 2000 at the Westin
Bayshore Hotel & Convention Centre
in Vancouver.
BC Business Summit 2000 will be
attended by entrepreneurs and private
sector leaders from throughout the
province, including the ICABC. The
event will build upon the momentum
created by the first BC Business Summit
in 1998 and the Panel on Securing
BC’s Future in the fall of 1999 in pursuit
of economic change and renewal in
British Columbia.
“I believe we are on the threshold
of tremendous economic and social
change in this province, and I am proud
to be part of a business community that
is taking a leadership role in forging that
change,” said Bob Bailey, CEO of PMC
Sierra Inc. in announcing the event.
The Summit process began in November
1998, when more than 800 business
leaders attended the first-ever BC Business
Summit conference. While the first Summit
event focused on the province’s economic
challenges and on identifying the policy
changes necessary for economic renewal,
BC Business Summit 2000 will focus on
creating a common vision for the province’s
economic future.
“BC Business Summit 2000 will
provide a venue for all business people to
contribute their perspectives, their experience
and their enthusiasm,” Bailey said.
BC Business Summit 2000 is being
organized by 52 business organizations
and industry associations, whose
memberships collectively represent
more than 90 per cent of all private
sector employers in British Columbia.
Detailed information about the BC
Business Summit 2000 program will be
released in the fall.
14 Beyond Numbers / September 2000

September 2000 / Beyond Numbers 15

16 Beyond Numbers / September 2000

September 2000 / Beyond Numbers 17

Under New Management
By Deborah Folka, APR
“Under New Management” is a
phrase you often see associated with
businesses hoping to rise phoenix-like
from the ashes of difficulties. And
organizations like the Institute of
Chartered Accountants of British
Columbia are often thought to plod
along without change forever.
Wrong on both counts.
Along with a Chief Executive
Officer whose term is only a year old,
the Institute really is ‘under new
management’ and it has nothing to do
with old difficulties, but rather with
new opportunities.
hen I arrived at the Institute
“W
in mid-1999, I
took some time
to review the
management
structure,”
Richard Rees, CA,
CEO of ICABC
says. “I looked at
the alignment
of the functions
— internal and external — at a vacant
Chief Operating Officer position and
decided a more effective operational
alignment would be four functions:
Member Services, External Affairs, Internal
Operations and Education.”
Rees’s approach has flattened the
Institute’s management structure and
eased reporting structures into a framework
which better reflects the needs of
the members and the external demands
on an organization constituted to protect
the public interest.
“Since June 1, we’ve put four
senior directors into new roles with
departmental management responsibility,”
Rees explains. “The professional
programs of the Institute will
continue to be managed by program
18 Beyond Numbers / September 2000

directors and managers.”
The four are Director of External
Affairs Lesley MacGregor, MBA ; Director
of Internal Operations Jan Sampson, CA;
Director of Member Services Barry
Mottershead, CA and Director of
Education Dr. Don Carter, FCA.
MacGregor joined the Institute
earlier this year after
five years with the Heart and Stroke
Foundation of B.C. & Yukon as Manager
and Director of Advocacy and Public
Issues. Prior to that, she was Director of
Marketing and Communication at the
Canadian Nature Federation, an environmental
advocacy group based in Ottawa.
As Director of External Affairs,
MacGregor is responsible for government
relations,
media relations,
member
communications,
marketing,
recruiting,
professional
development
and planning.
“My goals
are three-fold,”
MacGregor says. “I want to demonstrate
to government, to the business community
and to students the important role
that CAs play in a broad range of businesses;
to enhance communication with
members and to ensure that CAs have
access to outstanding professional
development, especially through the
application of new methods of learning.”
Director of Internal Operations
Jan Sampson, CA, was most
recently Director of Practice Review
and Licensing at ICABC for five years.
In that role, Sampson coordinated a
team of review officers who help firms
meet the CA standard of public
practice in the most efficient ways.
“With the changes in standards
and the broadening of areas in which
practitioners work, the challenge was
to ensure that PR&L was relevant to
our public practice members in an
on-line, real-time world,” Sampson
points out.
Before joining the Institute,
Sampson
was in
public
practice for
almost 20
years,
working in
a variety of areas including forensic
accounting, computer auditing, quality
assurance, assisting owner-managers
and international financial investigations.
Her new responsibilities include
management of human resources,
finance, administration and technology.
“With our new technology platform,
there is tremendous opportunity to
share among the provincial institutes
and truly explore and develop the
potential for technology in the areas of
membership information and financial
reporting at ICABC,” Sampson explains.
Barry Mottershead, CA, has
been with the Institute for 15
years. He moved from a public
practice firm in the Okanagan to
become the Professional Standards
Advisor. After four years in that role,
he became the Director of Practice
Review and Licensing for six years. In
1995, Mottershead moved into the
position of Director of Professional
Advisory Services.
“In my new role as Director of
Member Services, I will lead the
operation of all
the memberfocused
programs
at the
Institute,”
Mottershead
explains. “This
includes legislative
and selfregulatory
matters — i.e.
the CA Act, bylaws and rules of conduct
and so on — the operation of the peer
review programs (ethics, discipline and
practice review) and the professional
advisory and related member services.”
Mottershead says he intends to
develop and implement programs to
assess and respond to member needs
across all segments of the Institute’s
membership, “...with particular emphasis
on addressing the needs of members
outside public practice.”
“We are clearly moving towards an
increase in our external focus, as well
as enhanced member services to all
sectors of our membership,”
Mottershead points out. “The use of
technology will be a significant
component in achieving these strategic
directions. The use of the Web site and
e-mail and other technologies gives the
Institute the opportunity to provide
innovative, relevant, cost-effective
programs for all our members.”
Don Carter, Ph.D., FCA, has
been involved in the education
of chartered accountants
throughout his entire career. He
joined ICABC as principal of the
School of Chartered Accountancy in
1980 and now assumes the role of
Director of Education.
“The most important development
in the education of CAs in this
province is the
establishment
of the new CA
School of
Business this
past spring,”
Carter explains.
“In turning our
education
process into
one that is
learner-focused, instead of instructorfocused
and taking full advantage of
new technologies for distance learning,
we are jumping into the future of
education for the profession.
“CASB will use the latest technology
to deliver the most relevant
training programs available to CAs
today,” Carter says. “The training CA
students will receive will be more
applicable right away to the ‘real world’
and focused on competencies as
opposed to academic subjects.”
With the new management
structure, there are also some new
faces at a program director level. We
will be profiling the program directors
in an upcoming issue.
September 2000 / Beyond Numbers 19

Member Recognition
Procedures for
Election of Fellows
1. Nominations for the election of Fellows
shall be sought from all members of
the Institute and the FCA Nominating
Committee.
2. Nominations shall be submitted on an
approved nomination form signed by a
proposer and two seconders.
3. Nominators must demonstrate that
their nominee has given outstanding
service to the profession or brought
distinction to it in the following
areas. Except in extraordinary
circumstances, the nominee must
have provided leadership and service
with distinction in more than one of
these areas.
a. in the work of the British Columbia
or Canadian Institute;
b. in the work of an Association having
objectives relating to the candidate’s
chosen business or profession;
c. in the pursuit of his/her career;
d. in service (civic, community, political
or not-for-profit organizations);
e. in research, teaching, writing or
speaking on professional matters.
4. The fullest possible information on the
nominee is to be given, together with
reasons why he/she should be considered
for election as a Fellow, all supplemented
by additional comments where necessary.
To be recognized as having brought
distinction to the profession, it is of
paramount importance that in the activity
cited, the member is clearly identified as
being a Chartered Accountant. Service
must be rendered while a member of the
Institute of Chartered Accountants of
British Columbia. Proposers or seconders
may wish to contact the secretary, spouse
or business associates of the candidate, or
the candidate directly, if additional
information on certain sections of the
form is required.
5. Sitting members of Council,
exclusive of the Institute’s First
Vice-President, shall not be
eligible to be elected Fellows.
6. An FCA designation may be
awarded posthumously only if
the candidate died after the
FCA Nominating Committee
recommended the awarding of
his/her fellowship. An exception
would be made if an
outstanding individual died
before the next FCA Nominating
Committee meeting, when
the Executive Committee could
refer that individual to the
current FCA Nominating
Committee for its consideration.
7. Nomination forms shall be
submitted to a nominating
committee to consist of a
minimum of five members (the
“Committee”). The Chair of the
Committee shall be an FCA
appointed by Council at its July
meeting, and he/she shall select
his/her Committee at his/her
discretion from FCAs, including
always a past president of the
Institute.
8. The Chief Executive Officer should
attend all meetings as staff liaison and
resource person.
9. The procedures for election of Fellows
are to be published in the September
issue of Beyond Numbers, with a view
to educating the members on the
election process and eliciting nominations.
10. Nominations shall be sought in the
period from September 1 to October 15 in
each year.
11. The Chief Executive Officer shall review
each nomination form and delete
information known to be in error and
add information known to be omitted.
If necessary, the Chief Executive Officer
shall contact the proposer or seconders
for additional information.
12. The Committee shall:
a. review the nominations received
from the members, accept or reject
them, correct or add to data submitted;
b. prepare its own nominations, as
considered necessary;
c. ensure that all nominations have
been vetted by the Chief Executive
Officer for disciplinary matters; and
d. prepare a complete list of candidates
to appear on the election ballot.
13. The Chair of the FCA Nominating
Committee shall report to Council
during an in-camera session on the
results of the Committee’s deliberations
before the ballots are distributed.
Reviews of FCA candidates are to include
advice of any violations of the Rules of
Professional Conduct through the
disciplinary process, regardless of when
the offences may have occurred, except
violations where an anonymous
Determination and Recommendation
was issued more than two years prior to
the FCA review and was accepted by the
member cited.
14. The election of Fellows shall be by ballot
of Council members, each Council
member being entitled to one vote for
each candidate.
15. There shall be one ballot only and all
Council members shall vote for or
against. At least 70% of Council must
vote in favour of the candidate for him/
her to be elected. If the government
representative(s) deem(s) it appropriate
20 Beyond Numbers / September 2000

to withdraw from the voting, the
withdrawal will not represent an
abstention, and Council will be regarded
as complete without his/her/their
participation. Where a conflict of
interest arises, the Council member(s)
should so indicate on the ballot; Council
will be regarded as complete without
his/her/their participation in regard to
that/those particular candidate(s).
16. Scrutineers of the ballot shall be the
President and the Chief Executive
Officer.
17. Announcement of the successful
candidates shall be made to Council as
soon as the ballots have been counted.
Those elected shall be informed immediately.
All members and the press shall
be advised of the results of the election
as soon as conveniently possible.
18. Proposers of unsuccessful candidates
should be advised of the candidate’s lack
of success at either the nomination
stage or the election stage (without
disclosing which) by the Chair of the
Nominating Committee.
19. Nomination forms for those members
not elected shall, on the recommendation
of the Outgoing Committee, be brought
forward to the Committee the following
year for consideration. The applicable
forms will go forward from the Outgoing
Committee to the Incoming Committee,
with a transmittal letter, and the Incoming
Committee will be responsible for
contacting the original proposers for the
purpose of updating the information.
20. The FCA Nominating Committee shall
meet again in late spring or early summer
for the purpose of preparing a list of
potential nominees for submission to the
Incoming Committee. The Incoming
Committee will then be responsible for
preparing and processing the forms.
Last revised January, 2000
Notes to Members:
Nomination forms are available on the
Web site, www.ica.bc.ca. You can also
requested a nomination form from Eleanor
Joughin by calling 604 681-3264.
Proposers and seconders must be
members in good standing of the Institute.
Nominations must be received in the
Institute Office no later than October 16,
2000. They should be marked “Confidential,”
and addressed to: Chair, FCA Nominating
Committee, c/o E. Joughin, Secretary.
September 2000 / Beyond Numbers 21

Member Profile
CA Brand Emphasizes People Skills
Ali Pejman, CA, an associate in
Corporate Finance at Canaccord Capital
Corporation in Vancouver, says chartered
accountancy is “a people business.”
“Make no mistake, though the program
provides you with detailed technical training
and excellent opportunities to observe
different businesses and work in many
settings, the key is still the ability to deal
with people,” Pejman explains. “We are in a
position of trust and confidence with clients
and we learn how to work closely with them.
It’s been my observation of really successful
CAs I’ve known that they have the ability to
work well with clients and colleagues as
well as the technical expertise to back it up .”
With a bachelor’s degree in commerce,
Pejman graduated from the
University of British Columbia in 1994 as
president of his graduating class. He
began as a summer student with Coopers
& Lybrand (now PricewaterhouseCoopers)
in Vancouver, articled at the same firm and
received his CA designation in 1997.
“I enjoyed my articling period,” he
recalls. “In fact, it was memorable; the late
nights working with like-minded people
as we studied to earn our CA designation.
I think it was a real bonding process.”
Pejman says he selected the CA
program because he knew he wanted to be
in business and he felt the CA program
would provide the best hands-on technical
training combined with diverse client
contact.
“The CA brand is important in the
marketplace,” he observes. “All the CA
firms look for well-rounded individuals.
The CA ‘brand’ confers credibility.
“There are lots of places to get the
‘hard’ skills, the technical skills, and the CA
program has all those, too, but it also offers
you the chance to hone your ‘softer’ skills
by dealing with multiple clients and, for
me, that’s one of the key values of the CA
designation,” he says.
At Canaccord, Pejman enjoys the
people, the fast pace and the way decisions
are made efficiently.
“I enjoy working at Canaccord because
it’s so entrepreneurial and innovative,”
Pejman says. “On a day-to-day basis, I work
closely with start-up venturists or executives
in mid-to large-sized corporations in
order to establish a financing plan that will
allow them to execute their business plan.
At Canaccord, we especially pride ourselves
on taking clients from ‘incubation to
graduation.’ It’s a rewarding environment
to work in.”
When he’s not working at Canaccord,
Pejman plays tennis and golf.
“I try to take a balanced approach to
my life,” he says.
— Deborah Folka, APR
22 Beyond Numbers / September 2000

Registrar Retires
After 26 Years
Noreen Kelly Solloway, Registrar
for the Chartered Accountants of B.C.
for 26 years, retired last July.
A native of Woodstock, Ont.,
Solloway began her career at the
Institute as the Assistant Registrar.
Prior to accepting the position, she
had been traveling for four months
throughout Southeast Asia.
“To that point in my life, I worked for
a period of time and then quit to take
extended trips,” Solloway explains. “Prior
to working at the Institute, I hadn’t
stayed in one job longer than five years.”
A 1959 graduate of the University
of Western Ontario with a B.A. in
Secretarial Science (now Administrative
Studies), Solloway worked for companies
in both Toronto and Montreal in
the early years after college. She then
traveled to Europe where she worked
briefly in Switzerland and England
before returning to Canada, this time to
Vancouver.
Having worked for Chemcell in
Montreal, Solloway held two different
positions at Columbia Cellulose,
Chemcell’s Vancouver subsidiary. She
worked there for five years, then
resigned to travel in Mexico and
South America for six months. When
she returned, it was to a job at
Neonex, a Jim Pattison company
where she provided administrative
support to the Senior Vice President
of Finance. Again, true to form, she
held that position for five years and
then left for further travel in Southeast
Asia where this time, she met
her future husband Bob Solloway
outside of the Raffles Hotel in Singapore.
When she came back to Vancouver,
she joined the Institute in
November of 1974.
“I feel truly privileged to have
met and worked with so many
outstanding individuals in my years
of association with the CA profession,”
Solloway said. “Needless to
say, I have seen many changes
during my years at ICABC and I think
they’ve worked to strengthen the
profession. Most recently, the reengineering
of the student education
program is an exciting development
and both Don Carter and
Richard Rees deserve a lot of credit
for their work in that regard.”
In retirement, she plans “to
enjoy life” which means more
time in the garden, skiing, flyfishing,
biking and, of course,
traveling. She and Bob, who
retired last April as Vice President,
General Counsel and
Secretary at Weldwood after 32
years, plan a trip to France and
Spain this fall.
— Deborah Folka, APR
September 2000 / Beyond Numbers 23

Communications Director
Moves to ICBC
Doug McClelland,
APR, Director of
Communications at
the ICABC, has
moved on to
become manager of
Media Relations at
the Insurance
Corporation of British Columbia. He assumed
his new role as ICBC corporate spokesman in
early July after five years at the Institute.
McClelland, a native of Ontario and a
1985 BBA graduate of Brock University, moved
to Vancouver 11 years ago. Prior to joining the
Institute, he was with Canada Post Corporation
for nine years, finishing his time there as
a Divisional Manager of Communications. He
obtained his APR — professional accreditation
— from the Canadian Public Relations
Society in 1994 and was president of that
organization’s Vancouver chapter in 1994-95.
“I enjoyed getting to work on committees
with chartered accountants from such
a variety of backgrounds,” McClelland says.
“I am particularly proud of having been
involved in projects such as the BC Check-
Up and visionary work like our long-term
communications strategies.”
McClelland says he feels strongly that
the CA profession should always do as much
as possible to promote the designation.
“Of course, the marketplace and
relationships are changing rapidly, but that
will always be the case and the CA designation
needs to remain in the forefront of the
consciousness of the business community,”
he says.
McClelland and his wife Janice have
two children; Michael, 7 and Jeremy, 5.
— Deborah Folka, APR
Impact of Technology cont’d from page
10
“We shared computers and we
barely had phones on our desks,” he
laughs. “Now we all have laptops,
we’re totally networked and can get e-
mail anywhere we go.”
Bryson says clients are asking for
more and more help on purchasing
technology — hardware, software and
systems — and there is now lots of
consulting and research work for CAs
who are knowledgeable in the area.
“We are in the market of providing
solutions that help our clients succeed
and today that means technology,” he
says. “I think the skill requirements for
CAs is changing because of that. It takes
much more than just being able to turn
on a computer and operate a couple of
programs. You must know how to
manage information for your clients or
employer.
“The world is now ‘24-7’ as the kids
say and that won’t change,” he continues.
“In fact, expectations of our availability
will only heighten and we simply
have to service those demands.”
Bryson points to new developments
like continuous audits which will soon
be made possible by new technology.
“It’s great. We will get automated
e-mail messages allowing us to respond
to changes in the client’s financial
information, compare it to norms
and then the information and perhaps
our analysis will be posted on the
client’s Web site for investors and
stakeholders to see,” he explains.
“Reducing the turn-around on reliable
financial information to days or even
hours versus the months it take now.
Now that’s technology at work!”
Do you have any comments about the
impact of technology on you as a CA? Send
us an e-mail at beyondnumbers@ica.bc.ca
and we’ll publish a selection of the letters we
receive in the next issue of Beyond Numbers.
24 Beyond Numbers / September 2000

Tax Traps & Tips
The Taxation of Share Options:
An Update
By Jeffrey R. Foreman, CA,
Manager, Taxation, Ernst & Young LLP, Vancouver
The Federal Budget that was delivered
on February 28 th , 2000 included
substantial proposed changes to the
manner in which share options granted
to employees are taxed. Other administrative
changes have also been announced
recently by the Canada Customs
and Revenue Agency (the “CCRA”).
This article will provide an analysis of
the important changes and their impact
on taxpayers. Although the Department
of Finance has not released the draft
legislation implementing the Budget
measures as of July 14, 2000, this article
will assume that all measures will be
enacted as announced in the budget and
effective as of the Budget date.
Background:
Prior to the measures announced in
the 2000 Budget, the timing of the
taxation of share options depended on
whether or not the company that
granted the options (the “Grantor”) was
a Canadian Controlled Private Corporation
(a “CCPC”) at the time that the
option was granted.
In general, a benefit equal to the fair
market value of the share at the time the
shares were acquired under the share
option plan (the “exercise”), less the
aggregate of the price paid to acquire
the option (the “option price”) and the
amount paid by the employee to acquire
the share on exercise (the “strike price”),
was included in the income of the
employee at the time of the exercise
pursuant to Section 7 of the Income Tax
Act (the “Act”). If the Grantor was a CCPC
at the time the option was granted, then
the inclusion in the income of the
employee was deferred until the time
that the share was ultimately disposed
of by the employee.
In either case, there were no tax
consequences to the employee at the
grant of the option.
Pursuant to paragraph 110(1)(d) or
(d.1) of the Act, employees who dealt
with the Grantor at arm’s length immediately
after the granting of the option
were eligible for a deduction of ¼ of the
Section 7 benefit in computing their
taxable income if either of the following
conditions were met:
• If the fair market value of the share
at the time of the grant was equal
to or less than the aggregate of the
option price and the strike price, or
• In the case of a Grantor that was a
CCPC at the time that the option was
granted, if the employee held the
share for at least two years after the
exercise and had not already taken
the ¼ deduction described above.
The effect of the rules was to include ¾
[assuming eligibility for the 110(1)(d) or
(d.1) deduction] of the benefit received
in the income of the employee in the
year the option was exercised (or when
the shares were actually sold where the
Grantor was a CCPC).
The February 28 th , 2000
Budget Measures:
The 2000 Federal Budget proposes
to implement changes to address a flaw
in the manner in which options were
taxed. Under the existing system,
employees (other than employees of a
Grantor that was a CCPC at the time the
option was granted) were taxed at the
time the options were exercised. Accordingly,
an employee could face a significant
tax liability in the year of the
exercise, but have no cash to pay the
taxes because they had not sold the
shares. It was quite common for the
employee to dispose of a portion of the
shares acquired, and use the proceeds to
fund the tax liability.
In order to remedy this situation,
the Budget implemented a deferral of
the income inclusion for options that
were exercised after February 27 th , 2000
(the grant date of the options is irrelevant
for the purposes of the deferral).
The deferral is limited to share option
benefits that would be eligible for the
110(1)(d) deduction, on shares that are
traded on a prescribed exchange (most
of the major exchanges in the world).
The deferral is further limited to the
first $100,000 of share options that are
granted to the employee and that vest in
any one year. The $100,000 amount is
computed by reference to the fair market
value of the shares at the time the option
is granted, so the actual amount of income
deferred could be substantially higher
than $100,000 in cases where there is a
significant increase in the value of the
shares underlying the option. The deferral
ends at the earlier of the date which the
shares are actually disposed of, the death
of the employee, or the date the employee
ceases to be a resident of Canada.
Because the fair market value of the
share may change from the time of the
exercise to the time of the actual
disposition, the disposition of the shares
may result in a capital gain or loss to the
employee (in addition to the Section 7
benefit). The employee will receive a
“bump” under paragraph 53(1)(j) of the
Act to the ACB of the shares acquired
under the option to reflect the income
inclusion from the exercise and subsequent
sale of the shares, so the benefit
will not be taxed twice.
The Budget proposes to lower the
capital gains inclusion rate from ¾ to 2/3
September 2000 / Beyond Numbers 25

Employment Tax Traps & Opportunities
Tips
for dispositions that occur after February
27 th , 2000. The Budget also proposes
to increase the deduction under paragraphs
110(1)(d) and (d.1) from ¼ to 1/3 of
the share option benefit, to keep the
treatment of share options consistent
with that of capital gains.
The result of these changes is an
income inclusion of 2/3 of the value of
the benefit on eligible options in the
year the shares are actually disposed.
With proper planning, and due regard to
fluctuations in market prices for their
shares, employees may be able to defer
the income inclusion of the option
benefits until later years, or years where
their other sources of income are
limited. This may allow employees to
defer and reduce their taxes by using
lower rates of tax and tax credits, and
optimize their earned income for the
purposes of computing their RRSP
contribution room.
Partial Dispositions of Identical
Properties:
Some employees who have share
options may also own shares of their
employer from purchases in the
market or participation in employee
share purchase plans. The Act contains
rules that affect the computation of
the ACB of identical properties, such as
shares of a corporation. The ACB of
identical properties is averaged over
all the identical properties, and no
specific identification of lots, and
corresponding allocation of ACB, is
allowed where the Grantor of the
option was not a CCPC at the time the
option was granted.
In the past, the disposition of a
portion of the shares held would be
considered as a prorata disposition of
all identical properties held. Where an
employee acquires additional securities
of the Grantor under a share
option plan, the paragraph 53(1)(j)
increase in the ACB in respect of the
share option benefit is, upon disposition
of any of the identical properties,
effectively averaged over the cost of
all the identical properties. Because an
employee may hold a number of
identical properties (other shares of
the Grantor) with a lower adjusted
cost base, a significant capital gain
could result from the application of
this position. The CCRA has recently
stated, in Income Tax Technical News
No. 19, that
where it would seem obvious to conclude
that the particular securities acquired under a
Section 7 option are in fact the securities that
are being disposed of by the employee, we have
concluded that the current legislation permits
an employee to instead identify the securities
acquired under the option as those being
disposed of. In order to support specific
identification, the employee would have to show
the correlation between the particular acquisition
and disposition of securities.
This change to the administrative
policy means that employees who hold
shares acquired outside the option plan
can, with a modicum of planning, sell
shares at the exercise and avoid any
dilution of the increase in the cost base
in their shares as a consequence of the
Section 7 benefit.
It will be interesting to see how the
Department of Finance considers the
identical properties question when
drafting the law on the $100,00 deferral.
Many employees will have options
that exceed the $100,000 threshold, and
will therefore require two “pools” of
shares exercised, one that includes a
53(1)(j) bump as a result of the Section 7
benefit, and one that does not.
Conclusion:
The recent changes illustrate the
Department of Finance’s recognition of
the key role that share options play in
attracting and retaining the skilled
work force that Canada needs to move
into the future successfully. The
taxation of share options is one of the
few areas where Canada is becoming
competitive with the United States,
largely as a result of the 2000 Budget
measures, and share options will
continue to be an important method of
compensation for the employees of
new ventures and established businesses
in Canada.
26 Beyond Numbers / September 2000

Employment Opportunities
September 2000 / Beyond Numbers 27

Employment Opportunities
28 Beyond Numbers / September 2000

At Your Service
Pacific Spirit Investment Management Inc.
John S. Clark, CA, CFA, CFP - President
• Personalized portfolio management
• Personal, RRSP, and pension
fund accounts
Anita Chan, CA
Professionalism at its Best!
• Top 1% of All Realtors
• MLS Presidents Medallion Club
• 112 Homes sold in 1997 & 1998!
• 72+ Homes sold in 1999!
1100 - 800 West Pender Street
Vancouver, BC V6C 2V6
Phone: (604) 687-0123 Fax: (604) 687-0128
1-800-337-1388 (in BC) E-mail: joclark@direct.ca
Westcoast
Office: (604) 258-8866
Cellular: (604) 318-8866
Fax: (604) 277-3180
E-mail: anita@anitachan.com
Anita Chan, CA
Quinella Auto
The New Car Purchase Plan
Our company has been providing “Substantial Savings” for ICABC
members on the purchase or lease of new automobiles for over 26
years. We thank you.
Contact Greg Huynh
Phone: (604) 688-0455
Fax: (604) 669-1110
#506 - 1015 Burrard Street
Vancouver, B.C. V6Z 1Y5
www.autosalesandlease.com
T. H. Akam & Associates Ltd.
Business Valuation Consultants
T. H. Akam & Associates Ltd. has been providing valuation support
services to the accounting and legal professions since 1977.
We also provide assistance to other professionals who prepare
their own valuations and require the comfort
of an independent review.
For more information contact:
Thomas H. Akam, CA, CBV
Phone: (604) 682-0711
Fax: (604) 275-4109
Clayton Shultz & Associates, Inc.
Management, Government, and the Professions
• Arbitration
• Business & Securities Valuation
• Corporate Governance
322 - 3769 West 7th Avenue
Vancouver, B.C., V6R 1W6
Office: (604) 222-3744
Fax: (604) 222-4479
shultz@home.com
http://members.home.net/shultz
Clayton G. Shultz, ASA, CArb, FCIS, FCBV, FCA ,President
Ashlar Capital Corporation
R. Bev Harrison, FCA
Ashlar finances growing business by purchasing accounts receivable
and advancing funds to suppliers for inventory. Programs are
customized for each client. Our complete accounts receivable
management program includes credit and collections
facilities, which helps avoid the cost of
hiring full-time staff and minimizes bad debt.
Phone: (604) 688-2210
Toll free: 1-888-427-4527
Fax: (604) 688-5322
e-mail: sales@ashlarcapital.com
Marc W. Kotler, CA U.S. Tax Consultant
Our practice, established in 1988, is restricted to U.S. and crossborder
tax consulting and compliance services. We consult on a full
range of U.S. and Canadian tax issues including: U.S. citizens
residing in Canada - Emigration from or immigration to Canada -
Corporations and individuals investing in U.S. Property - Taxation
of estates and trusts. For more information contact:
Marc W. Kotler, CA
Phone: (604) 531-6207
Fax: (604) 538-9713
Dynasty Mergers & Acquisitions
Consultants Inc.
A consulting boutique specializing in assisting purchasers
and vendors in the acquisition and sale of privately-held
businesses in B.C.
For more information contact:
Jonathan F. Reimer, CA, CBV
Suite 2500 - 1177 West Hastings Street
Vancouver, B.C. V6E 2K3
Phone: (604) 684-9886
September 2000 / Beyond Numbers 29

At Your Service
Warren L. Dueck, CA
Over 18 years of US & Cross-border tax experience, including eight
years as Ernst & Young US tax partner in Vancouver and six years
with KPMG in Seattle and Vancouver.
Consulting & Compliance for:
• US Federal & State Taxation
• US Investment into Canada
• Mergers, Acquisitions & Financing
• Immigration/Emigration Tax Planning
• US Estate & Gift Taxation
• Canadian Investment into US
• Canada-US Tax Treaty
• Representation before IRS
Phone: (604) 448-0200
Fax: (604) 448-9294
e-mail: Warren@Dueck.com
Russell J. Chew, B.Comm, CA, CFP
Investment Advisor
For a confidential and private portfolio review,
please contact Russell at:
700 West Georgia Street
TD Tower, Suite 1200
Vancouver, BC V7Y 1A2
phone: (604) 482-8404
fax: (604) 482-8427
toll free: (888) 668-9966
e-mail: chewr@tdbank.ca
Classifieds
CA & Students
Well-established accounting firm in
Nanaimo, requires motivated individuals to
provide services to our clients. You must have
good communications and interpersonal
skills, as well as the ability to work well in a
team-oriented environment. We offer a
competitive salary and professional growth
in a community with affordable family
living. Please mail, fax or e-mail your resume
to Church Pickard & Co., 301 - 17 Church Street,
Nanaimo, BC, V9R 5H5. Fax: (250) 754-8177 e-
mail: mail@churchpickard.com
Succession Opportunity
The partners are not ready to sell or
retire at this time! However, our two-partner
greater-Vancouver CA firm wishes to plan for
future succession. If you are an experienced
CA with well-rounded knowledge (or pair of
CAs starting your own practice) and wish to
have some influence over the direction of the
firm prior to ownership, this opportunity
may be of interest to you. Reply to Box 00094
c/o Beyond Numbers Magazine.
Notes on Members
John Reid, FCA , president and
CEO of BC Gas, has been named
the 2000 General Campaign
Chair of the Lower Mainland
United Way. The annual United
Way campaign raises funds to
help finance over 100 member and affiliate
agencies, which provide a wide range of
services to help children, youth, families,
seniors and people with disabilities, and
over 70 special projects responding to
critical social issues in the community.
Renate Mueller, CA, of MG MacGregor
Insurance Agencies Ltd. has been elected
as the 2000-2001 president of the Insurance
Brokers Association of BC. Mueller
was elected at the Associations’ annual
general meeting in June.
CA Required
A progressive five partner firm in
Surrey seeks a newly qualified CA
experienced in providing audit, accounting
and income tax services to ownermanaged
businesses. Knowledge of nonprofit
organizations is an asset. Reply in
confidence to Box 00092 c/o Beyond
Numbers Magazine.
Practice for Sale
Well established practice on Central
Vancouver Island. Substantial billings.
Owner prefers to retire but will be
accomodating to facilitate a smooth
transition. Reply in confidence to Box 2212,
Nanaimo, BC, V9R 6X6
Office Space
Vancouver firm centrally located
(Second Avenue & Burrard area) has two
private offices and space for two work
stations in a new office facility to sublet
for November 2000. For more information,
please call Dan Majewski, CA at (604)
662-8786.
Volunteer Wanted
Treasurer Wanted for BC Lupus Society
The BC Lupus Society (BCLS) is looking
for a volunteer to join its board of directors
as Treasurer. The BCLS is a non-profit
charity that exists to further research,
support, and awareness of Lupus in B.C.
The Treasurer position involves monthly
accounting (budget of approx. $100,000)
and preparation of year-end statements
and file for the auditor. The Board meets
monthly in Vancouver. The BCLS is a small
but dedicated group of people, and serving
on the board can be both rewarding and
fun. If you are interested, or would like
more information, please contact Barry
Mottershead, CA, past-president of the
BCLS. Tel: (604) 488-2628 or e-mail
mottersh@ica.bc.ca.
Do You Need a Part-time CA?
Self-directed, business-oriented CA with
an outgoing personality seeks flexible work
arrangement in industry or public practice.
Candidate possesses: good communication
and interpersonal skills; strong analytical
and accounting skills; proficiency in preparing
working paper files, financial statements
and corporate tax returns; knowledge of
Word, Excel, Caseware and TaxPrep programs.
Post-qualification experience
includes working with entrepreneurial,
owner-managed clients in public practice,
internal audit and accounting in a public
company. Please reply in confidence to Box
00093 c/o Beyond Numbers Magazine.
CGA Practice for Sale
Well established downtown Vancouver
CGA practice, fully computerized, gross
billings of 300,000. Owner retiring after 25
yrs. Succession arrangements available for
smooth transition. Please reply in confidence
to Box 00091 c/o Beyond Numbers
Magazine.
Missing Members
We are trying to locate the following
members. If you know their whereabouts,
please contact Michelle McRae at (604)
488-2617 or e-mail mcrae@ica.bc.ca
Missing Members as of Aug 17th, 2000:
Stewart Andrade
Robert Boser
Rosalie Brusse
Kevin Conway
Michael Evans
J. Ronald Gray
Wayne Herauf
Mark Hoag
Joel Kern
Thomas Laberge
Kenneth Morgan
Simon Mortimer-Lamb
Keith Randall
Jeffrey Smith
Valerie Snelgrove
Mary Sung
30 Beyond Numbers / September 2000

September 2000 / Beyond Numbers 31