ICABC Awards for Early Achievement - Institute of Chartered ...

Is this enough to secure your data?The practical guidance you need to preventdata breaches in today’s high-speed world.The Canadian Privacy and Data Security Toolkitfor Small and Medium Enterprises by Claudiu PopaThis easy-to-use Toolkit features:• Self-assessments to help determine your organization'sdata security and privacy risks• Advice on privacy and security risks in areas such asaccounts payable, sales and marketing• A CD-ROM containing checklists, informative articles,training templates and a customizable privacy policy• Foreword by Jennifer Stoddart, Privacy Commissionerof Canada• Introductory chapter by Ann Cavoukian, Ph.D,Information and Privacy Commissioner of OntarioCheck out the CICA'sPrivacy Resource Centrefor more privacy toolsand aids such as:• Generally AcceptedPrivacy Principles(updated in 2009)• Privacy RiskAssessment Tool• 20 Questions BusinessesShould Ask About Privacy2 ica.bc.ca June/Summer ’09Order your copy today!Visit www.cica.ca/privacy or call the CICAorder department at 1-800-268-3973.

contentsOn the Cover8Meet Our EarlyAchievement AwardWinners!14Awards for CommunityService16Ritchie W. McCloyAward for Volunteerismin the Profession18Regional BC Check-UpReport ReleasedSee how your region stackedup in 200831Demystifying CPDDispelling the myths aboutCPD requirementsFSC logo RRDto placeCert no. SCS-COC-008674 Notes from the PresidentA look back at 2008/20095 For the ProfessionGAAP for private enterprisesis here!6 Research CornerThe uncertain nature ofuniversity research22 Tax Traps & TipsThe greening of tax26 Financial Facts &Money MattersSelling privately ownedbusinesses in a pooreconomic climate29 PD NewsSummer PD highlights34 Plugged InNews for and about members& students Movers & shakers in theprofession 50 and 60-year members In Memoriam Did you know...? A note fromMember Services AGM Reminder38 Ethical DilemmasWhat’s in a name? Trouble,potentially.10%Want to getthe word out?Advertise in Beyond Numbers!Here’s why:90% of BC CAs surveyed readBeyond NumbersBeyond Numbers goes out tomore than 9,000 members,more than 1,600 students,and over 200 externalstakeholders—includingother institutes, associations,and professional organizationsBeyond Numbers has wonawards for both contentand design, includingBlue Wave Awards of Meritfrom the InternationalAssociation of BusinessCommunications – BC BranchTo place an ad inBeyond Numbers, contact ourrepresentatives at:Advertising in PrintTel: 604-681-1811710 – 938 Howe St.Vancouver, BC V6Z 1N9Fax: 604-681-0456Email:info@advertisinginprint.comJune/Summer ’09 ica.bc.ca 3

June/Summer 2009, No.480Published eight times annually by theInstitute of Chartered Accountantsof British Columbia.A look back at 2008/09EditorMichelle McRaeDesignBlindfolio Design604-761-9212AdvertisingAdvertising In PrintPhone: 604-681-1811Fax: 604-681-0456Senior Director of External AffairsLesley MacGregorInstitute CouncilDoug Murphy, FCAPresidentKaren Keilty, FCA1st Vice-PresidentPeter Norwood, CA2nd Vice-PresidentRobert Wicks, CA, CFPTreasurerJack Arnold, CALenard Boggio, FCALindalee Brougham, CAKyman Chan, CAKaren Christiansen, CAJohn Crawford, CADavid HughesMichael Macdonell, CAAnthony Mayer, CAAl McNairJohn Sims, FCAJames Topham, CAKenneth TungPraveen Vohora, CAChief Executive OfficerRichard Rees, FCABeyond Numbers is printed in British Columbia andmailed eight times annually to more than 9,000chartered accountants and more than 1,600 CA studentsin public practice, industry, education, and governmentservice throughout BC, Canada, and other countries.Beyond Numbers’ editorial and business officesare located at:Suite 500, One Bentall Centre, 505 Burrard St., Box 22Vancouver, BC V7X 1M4Phone: 604-681-3264Toll-free in BC: 1-800-663-2677Fax: 604-681-1523Internet: www.ica.bc.caOpinions expressed are not necessarilyendorsed by the Institute.Beyond Numbers supports the CA profession in BCby sharing news from the Institute and news aboutmembers, by sharing viewpoints on issues of specificinterest to members, and by promoting memberinvolvement in Institute activities.Publications Mail Agreement No: 40062742Notes from the PresidentWhen I started my presidential term in June 2008, I waslooking forward to leading the Institute during a time of great change. I wasn’tdisappointed. To begin with, I am walking away with an appreciation for howprofessionally the Institute is run—everything, and I mean everything, is wellplanned and thought out, from events like convocation and the Executive Tourto more ad hoc, time-sensitive events such as those relating to regulatoryissues.Having served on Council for nine years, I’ve come to appreciate the fact thatsignificant change can’t be made overnight, as issues tend to be far morecomplex than they might seem at first. So it was particularly gratifying to seethe implementation of expanded training opportunities for students, and to playa part in reengineering our complicated regulatory processes to make themmore transparent and ensure that they are best practices. I also saw atremendous effort go into providing excellent PD courses in response to theincreased CPD requirements and the changes in accounting and auditing rules.I can assure you that our Institute is responsive to change, takes a long-termview, and strives to get it right. I can also assure you that the Canadian CAprofession continues to make big strides in harmonizing processes andimproving efficiencies.During the Executive Tour, I was very pleased to see so many members—especially young members—attend the various stops across BC anddemonstrate their keen interest in the evolution of our accounting standards.With over 1,600 members signed up for our free PD sessions on new standardsin May and June, it’s clear that members are engaged.Finally, I have to say that I’m impressed with the ability of Institute staff towork so well with an ever-changing roster of volunteers. Volunteers are treatedwith the utmost respect, as staff members honestly seek their views and make ahuge effort to provide comprehensive background information to assist in thedecision-making process. And of course, I’m impressed with the volunteersthemselves, who give so much of their time, and offer such value to Instituteinitiatives. Thank you for all that you do!I also thank Council and the Institute staff—Richard Rees in particular—for theirsupport this past year, and their wisdom. It has been an illuminating andenjoyable experience, and I wish the same for my successor, your new presidentKaren Keilty, FCA.—Doug Murphy, FCA4 ica.bc.ca June/Summer ’09

For the ProfessionLong AwaitedPrivate EnterpriseGAAP Is Here!By Amy Lam, CASenior Director of MemberServicesAs detailed in CAmagazine’s May 2009cover story, the Accounting StandardsBoard (AcSB) recently issued an ExposureDraft on generally accepted accountingprinciples for private enterprises. In the ExposureDraft, the AcSB proposes a set of stand-alonestandards that would be available for use by allprivate enterprises. Private enterprises would alsohave the choice of using international financialreporting standards.The proposed standards for private enterpriseswould be effective for annual financial statementsrelating to fiscal years beginning on or afterJanuary 1, 2011, but early adoption would bepermitted. The AcSB expects that the finalstandards will be issued in time to permit their usefor 2009 calendar-year end financial statements.In the meantime, parties interested in providingfeedback on the Exposure Draft are invited tosend written comments to the AcSB by July 31,2009.Basic approachThis exposure draft is the culmination of approximatelythree years of research, consultationwith stakeholders, and deliberation by the AcSB.During the consultation process, stakeholders toldthe AcSB that standards for private enterprisesneed to be developed in a timely manner. Inorder to do this, the AcSB used the existingCICA Handbook as a starting point as it set aboutdeveloping a set of principles-based standards.The AcSB retained a significant number ofrecognition and measurement requirements—those it determined would not cause substantiveconcern for private enterprises—and removedcertain sections and guidelines deemed irrelevantfor this sector. The AcSB also reconsideredthose issues in the Handbook identified assignificantly problematic for private enterprises,and the proposed alternatives are highlighted inthe Exposure Draft.In addition, the AcSB re-examined existingdisclosure requirements to focus on the needsof private company financial statement users,recognizing that users in this sector generallyhave the ability to obtain additional informationfrom the enterprises in question.Proposals – recognition andmeasurementThe Exposure Draft includes proposed changesto the existing recognition and measurementrequirements. These proposed changes can becategorized into three general categories: significantchanges, moderate changes, and no changes.Significant changes:The Exposure Draft proposes significant changesto the existing recognition and measurementrequirements in the following areas:• Financial instruments;• Employee future benefits;• Asset retirement obligations;• Internally developed intangible assets;• Impairment testing for goodwill and otherintangible assets; and• Stock-based compensation.The most significant of these changes for themajority of private enterprises is the proposedfinancial instruments standard, which wouldprovide for a much simpler approach than thatset out in section 3855 of the Handbook.Moderate changes:The Exposure Draft proposes moderate changesto the following:• Future income taxes; and• Investments (subsidiaries, significantly influencedinvestees, and joint ventures).Differential reporting options are being incorporatedin these two sections. Because thesedifferential reporting options already exist in thecurrent Handbook, the changes are expected tohave only a moderate impact.No changes:The Exposure Draft proposes that no changes bemade to the following:• Leases; and• Callable debt (EIC 122).Private enterprises planning to adopt thisproposed set of standards need to review theproposals first and assess the impact of thesechanges on their operations and financial reporting.Disclosure requirementsOne of the goals in developing the proposedstandards for private enterprises is to reduce thenumber of specific disclosure requirementswhile, at the same time, providing sufficientinformation to give a fair presentation of anenterprise’s financial position and operatingresults, and to help users gauge when to askfor further information on specific issues ortransactions.Users of private enterprise financial statementshave stated that disclosures on accountingpolicies, risks and uncertainties, and unusualevents are vital when it comes to understandingand analysing financial statements. In focusingon these users and their needs, the AcSB haseffectively reduced the number of disclosurerequirements by about half.In the Exposure Draft, the AcSB added twonew disclosure requirements viewed as importantby users in the private enterprise sector: thedisclosure of the amount payable at the end ofthe period in respect of government remittances(and whether any such remittances are in arrears)and the compensation of key management personnelas a group.EIC abstractsIn creating a principles-based financial reportingsystem, the AcSB concluded that it would notbe appropriate to include the type of detailedguidance contained in the EIC Abstracts;therefore, abstracts have been excluded from theproposed standards. However, some abstracts docontain guidance that is important to this sector;accordingly, this guidance was incorporated intothe appropriate sections of the proposed standards.Share your feedbackIf or when finalized as standards, the proposalscontained in the Exposure Draft will have ahuge impact on financial reporting by privateenterprises. This being the case, it is vitallyimportant that stakeholders in this sector weighin with comments, suggestions, and/or concerns.A copy of the Exposure Draft is now available atwww.acsbcanada.org/edpegaap.Access the Exposure Draft onGAAP for private enterprisesat www.acsbcanada.org/edpegaap.June/Summer ’09 ica.bc.ca 5

Research CornerThe UncertainNature of UniversityResearchBy Dr. Kin Lo, CA, Ph.D.While researchers do have specific goalsfor their research programs, those goalsdo not define or limit the eventual impactof the researchOver the last few months, I have readseveral books on topics ranging fromneurology and cognition to geneticsand evolution. Each one has been fascinating inits own right, but even more so were the ideasand concepts that transcended these fields,particularly those that reached into accounting,business, and economics.In particular, the intersection of neurology andaccounting is currently spawning an intriguingline of research I would have considered a mereflight of fancy only a few months ago. For example,soon after reading Predictably Irrational, 1 inwhich a professor with over 20 years of researchin behavioural economics explains why peopletend to behave irrationally in predictable ways,and How We Decide, 2 which examines thebrain’s various roles in the decision-makingprocess, I had the opportunity to attend aworkshop entitled “NeuroAccounting,” givenby Professor Greg Waymire 3 from EmoryUniversity in Atlanta, Georgia. Another exampleis The Geography of Thought: How Asians andWesterners Think Differently...and Why, in whicha professor of social psychology discusses theinter-dependent development of culture, language,and thought processes. 4 Importantly, the bookhighlights the significant differences that havearisen between the “East” and “West” in termsof how people think. These differences certainlyhave implications for evaluating the appropriatenessof uniform global accounting standardsand how we educate students with diversecultural backgrounds.A fourth example involves many ideas in The Selfish Gene, 5 which have had similar applications inbusiness. Many readers are likely to be familiar with the idea of “economic Darwinism”—or survival ofthe fittest in terms of businesses, products, and practices; but research is revealing that there are manymore such commonalities.Consider, for example, the well-known “prisoner’s dilemma” in mathematical game theory, whichhas remarkable applications for the understanding of business competition as well for the prediction ofanimal behaviour and evolutionary development. Another idea is that organisms are merely “vehicles”that carry “replicators” called genes—an idea largely equivalent to the notion that a business/firm is justa “nexus of contracts” among individuals. As explained in The Selfish Gene, successful genes are thosethat are able to continue replicating for many generations by programming useful functions for theorganism in the context of the organism’s other genes and environmental conditions. Genes that donot cooperate with other genes in the same vehicle lead to the death and end of the replicator. Theanalogy to individuals in business organizations should be clear.My recent readings highlight the highly unpredictable nature of scientific research. While researchersdo have specific goals for their research programs, those goals do not define or limit the eventual impactof the research. However, many who are not familiar with research do not understand the randomnature of research output. Among them are the key policy makers in the current federal government,as demonstrated in a series of decisions in the last two years:• The 2008 federal budget cut $148 million from the three federal research councils over three years,at a time when the federal government is attempting to stimulate the economy. 6• Instead of using peer review, the Minister of Industry will now identify the projects that will receivepriority funding from the Canadian Foundation for Innovation.• The 2009 federal budget allocated $87.5 million from the budget of the Social Science andHumanities Research Council for graduate scholarships solely for candidates who are pursuingbusiness-related degrees.1Daniel Ariely, Predictably Irrational, HarperCollins 2008. Ariely is the James B. Duke Professor ofBehavioural Economics at Duke University in North Carolina and a visiting professor at theMassachusetts Institute of Technology.2Jonah Lehrer, How We Decide, Houghton Mifflin Harcourt 2009.3Professor Waymire’s current research focuses the history of accounting measurement anddisclosure.4Richard Nisbett, The Geography of Thought, Free Press, 2003. Nisbett is the Theodore M.Newcomb Distinguished Professor of social psychology and co-director of the Culture andCognition program at the University of Michigan.5Richard Dawkins, The Selfish Gene, 30th anniversary edition, 2006.6The three research councils are the Natural Sciences and Engineering Research Council of Canada,the Social Sciences and Humanities Research Council of Canada, and the Canadian Institutes forHealth Research.6 ica.bc.ca June/Summer ’09

As someone working in a business school, Ishould probably applaud this last policy, but as amatter of principle, targeted funding is misguidedand short-sighted, as I believe I have illustratedabove.Much research is highly technical and noteasily penetrable for non-academics. Consequently,the use of peer review to allocate funds is anecessary and effective means of identifying theresearch that is worthy of funding. As both arecipient of these funds and a reviewer of others’applications, I can attest to the thoroughness ofthe peer review process. The outcome of thisprocess is that only one third of all applicationsare accepted—a far cry from the seemingmisperception that every research proposalreceives public funding. 7The alternative—letting politicians and bureaucratsmake these choices—is a recipe for failure,as far as I’m concerned, especially when I thinkabout the choices that might be made by ourMinister of State for Science and Technology,Gary Goodyear, whose remarks in March of thisyear suggest that he does not understand thegenetic science behind the theory of evolution.I believe the research granting system that hasbeen in place in Canada is a good one. Thegranting councils serve as a marketplace for ideasthat compete with other ideas. Each applicationis adjudicated by knowledgeable peers—theconsumers of that research, in a sense. There isno doubt that this approach is superior to acentrally controlled system in which one entitydirects thousands of researchers across the country.To reinforce my point about the interconnectednessof ideas, let me approach it from adifferent angle: How do we explain the origin ofspecies and the diversity of life on earth? Is itthe result of evolutionary trial and error orintelligent design, which requires an omnipotentdesigner? And what arrogance must an individualhave to think they alone can handle the role ofthe designer?Whether we use the analogy of capitalism vs.central planning or evolution vs. intelligentdesign for university research funding, I believethe evidence is overwhelming and the choice clear.Helping future CAsHave you ever wondered how you could help students who are interested inbecoming members of our proud profession? Consider donating to the CAEducation Foundation (CAEF).The CAEF is a registered charity established by the BC Institute of CAs in1990 to support the endeavours of current and future CAs.One of the Foundation’s important activities is to ensure that scholarshipsare available to students at every university and college in BC. The 25scholarships currently available each year are administered either directlyby the universities or by the CAEF itself. Some of these scholarships helpstudents with financial need; others recognize academic excellence and/orleadership; all go to students who’ve indicated their intentions to become CAs.There are different ways to donate:• General donations – Mail, fax, or drop off a donation at the ICABC’soffices in downtown Vancouver. (Did you know that many of our ProfessionalDevelopment Program instructors donate their fees?)• Planned giving – Consider naming the CAEF as a beneficiary in your will.This legacy could be a fixed sum or estate residue. Alternatively, youcould name the CAEF as a primary or secondary beneficiary of an annuity,RRSP, or other financial instrument of your estate.• Giving in memoriam – The CAEF was originally set up as the Institute’sMemorial Scholarship Fund in 1969/70, when colleagues and familymembers of Desmond O’Brien, CA, sought to acknowledge and maintainhis contributions to the profession. This tradition has continued, withmany such gifts being made over the past 30+ years.• Matching Scholarship Program for CA firms and associations – The CAEFhas set aside funds to encourage a matching program for CA firms andassociations in order to fund new scholarships at educational institutionsthroughout BC.Please visit the CA Education Foundation’s website at www.caef.bc.ca formore information about past donors, a listing of our most recent scholarshipwinners, and a summary of the other valuable activities undertaken by theCAEF each year.Kin Lo, CA, Ph.D., holds the CA Professorship inAccounting in the Sauder School of Business atUBC. The CA Professorship is funded by the CAEducation Foundation of BC. Send your questionson accounting research to Kin at kin.lo@sauder.ubc.ca.7Gwyn Morgan, “Not all research deservespublic funding,” Globe and Mail, April 27,2009.June/Summer ’09 ica.bc.ca 7

On the CoverEarly Achievement Award WinnersBy Michelle McRae, EditorEach year, the Institute grants awards for early achievement to CAs who have made significant professionalaccomplishments and community contributions within ten years of earning the CA designation. Three CAshave been chosen for this year’s awards: Lenora Lee, CA; Mike Parker, CA; and Nolan Watson, CA.Lenora Lee, CALenora Lee is a very busy individual. In additionto managing a full client load, the seniormanager at KPMG LLP in Victoria oversees andparticipates in her firm’s recruiting activities,teaches at the University of Victoria, and volunteersextensively in the community.It’s hard to believe she earned her CA only fouryears ago.Lenora began articling with KPMG in 2002,after completing a bachelor of commerce fromthe University of Victoria (along the way, earninga Faculty of Business Award of Excellence forhaving the highest GPA).“When I began articling, I was aware of thestereotypes regarding accountants,” Lenora remembers.“But soon after starting, I was happy todiscover that every day is dynamic and unique.”After earning her CA in 2005, she stayed onwith KPMG as a manager. Partners and clientsalike were impressed with her abilities. Theywere so impressed, in fact, that the firm decidedto promote her to senior manager in 2007—twoyears ahead of the typical schedule.Lenora has risen to the task, taking on a high levelof responsibility that includes a considerable anddiverse client roster.“Maintaining this client mix requires me tocontinue learning about different businesses andthe applicable accounting standards,” she says.“I’ve worked with fantastic clients in a variety ofindustries so far, and I’ve found it particularlyrewarding to gain such a breadth of knowledgeand experience.”Lenora also manages the firm’s recruitmentprogram in Victoria, and says she “enjoys stayingconnected with local post-secondary institutionsand seeing new students join the firm each year.”So far, she has played a major role in the hiringof approximately 40 students.She also participates as a speaker at panels andforums on post-secondary education, speakingto secondary and post-secondary students about8 ica.bc.ca June/Summer ’09

P L A T I N U M M E M B E R“I’ve worked with fantastic clients in a variety of industries so far, and I’ve found it particularly rewarding to gain such a breadth ofknowledge and experience,” says Lenora Lee, CA. Photo by Deddeda Stemler of Victoria.09.OBRTurnbullAd4 5/21/09 9:15 AM Page 1Disciplined InvestmentManagementRoss Turnbull, CA, CBV, CFADirector, Portfolio Manager604 844 5363Toll Free 1 888 886 3586rturnbull@odlumbrown.comMEMBER CIPFThe OB Report is Odlum Brown’s monthly newsletter featuringtimely market commentary and insight into our investmentstrategies. To receive a complimentary copy, call 604 844 5363.June/Summer ’09 ica.bc.ca 9

career opportunities for CAs.“The recruiting and teaching aspects of mycareer have been particularly rewarding as well,”Lenora says. “I’ve worked with many teachers,all with different backgrounds, who’ve sharedtheir experiences with me and taught me atremendous amount about all aspects ofbusiness. I appreciate the time and patience thatothers spent with me as an articling student, andI hope to pass this same philosophy on to others.”Accordingly, she serves as a mentor to herfirm’s students, guiding them through the entireCASB experience, from Module 1 registrationto UFE prep.“The time I spend with our articling studentswill help them learn new skills and knowledge,which, in turn, will help them become successful,”she says. “Celebrating with them when they earntheir designations is always one of the highlightsof the year—there’s so much excitement as theyget ready to start their careers as new CAs.”If that weren’t enough, in 2008, Lenorabecame a sessional instructor with her almamater, teaching financial and managementaccounting for specialists. She is also deeplyinvolved in the community.“Community service is an opportunity for meto give back to all the organizations that haveshaped me as a person,” she says.A member of the executive of the AlumniAssociation for the Faculty of Business at UVicfor the past seven years, Lenora helped organizethe Association’s launch and continues to helpwith networking events while also serving as theAssociation’s secretary-treasurer. She is alsoan active member of the Victoria ChineseCommerce Association, a cross-cultural businessassociation that promotes business growthwithin Victoria and facilitates Chinese andCanadian commercial enterprise.In 2008, Lenora participated as a communityleader in the Minerva Foundation’s Victoria“Follow a Leader” program, which pairsemerging leaders with ten established leadersfor training workshops and job-shadowingopportunities. And during a term as a memberof the Victoria Foundation’s Community Fundand Arts and Heritage Committee, she hasreviewed and communicated on financial-relatedmatters, screened Fund applicants, and maderecommendations on grant recipients.“I believe it’s my responsibility to give back toorganizations that do so much with limitedresources and recognition,” she says. “If I cancontribute time, knowledge, or resources to helpan organization that would not otherwise beable to operate as successfully, I will gladly doso.”As for her Early Achievement Award? Lenora ismindful of those who’ve helped her get so far insuch a short time.“This award is not something I could haveobtained without the support of all those I’veworked with throughout my career,” she says.“Many mentors have taken time out of very busyschedules to teach me, and they’ve helped me tobe successful. I thank them for providing mewith opportunities to be challenged and forhaving confidence in my abilities. I’m grateful aswell for the many family members and friendswho have supported me during my educationand career.”Looking ahead, Lenora is looking forward totravelling and enjoying quality time with friendsat a number of upcoming weddings. When itcomes to the long-term, she says simply: “I lookforward to more challenges, opportunities, andlifelong learning.”ICABC Benevolent Fund offersfinancial support to members in needAll information is held in the strictest confidenceTo apply for financial assistance, contact:Amy Lam, CASenior Director of Member Services & Fund SecretaryPhone: 604-488-2629Toll Free: 1-800-663-2677Email: lam@ica.bc.ca10 ica.bc.ca June/Summer ’09

Michael D. H. Parker, CAWhen Mike Parker graduated from high schoolin Terrace in 1991, he knew one thing forcertain: The best way to protect himself in adifficult economy would be to build a strongskill set. He has continued building on his skillset ever since.Today, Mike is the partner in charge of taxationadvisory services at Daley & Company LLPChartered Accountants, the largest independentfirm in Kamloops.No one is more surprised than he that publicpractice has become his niche.In 1995, Mike was a 22-year-old working ona bachelor of commerce at the University ofVictoria, majoring in entrepreneurship, when hegot an exciting opportunity to start his ownbusiness as a retail/wholesale specialty coffeeimporter. Eager for the challenge, Mike put hisundergraduate studies on hold to open andmanage GroundWorks Coffee Co. He oversawthe entire operation from conception, includingfinancing, construction, and operations management.“Terrace had been under-exploited in terms ofspecialty coffee, so I saw a real market for it,” herecounts. “It ended up being an extraordinarylearning experience. I gained a firsthand understandingof the small business retail andwholesale marketplace, and I discovered whatkind of fortitude it takes to be an entrepreneur.”After two years spent working tirelessly to getGroundWorks up and running, Mike decided itwas time to complete his business degree. So hesold his company and went back to schoolfull-time, graduating from UVic in 1999.That same year, he joined the Kamloops officeof KPMG LLP in pursuit of the CA designation,which he saw as a valuable stepping-stone toa career in industry. Within his first year ofarticling, however, he had a completely newvision for his future.“I was shocked to discover how much I enjoyedpublic practice,” he remembers. “I thought Iwould get my CA training and move on, butpublic practice was much more dynamic thanI’d expected. I loved the learning curve, andthere were so many smart, talented people towork with—I actually loved getting up andgoing to work in the morning!”So when Mike qualified as a CA in 2002, hestayed with KPMG, working as a member of itstaxation advisory services team and advisingclients on a variety of taxation issues. That sameyear, he completed the CICA’s In-Depth TaxCourse.Then in 2005, another pivotal opportunitypresented itself: a partnership offer with Daley“Even while I was articling, I knew I wanted to be a partner—I wanted to be at the frontof client relationships,” says Mike Parker, CA. Photo by Tyler Meade of Tyler MeadePhotography in Kamloops.June/Summer ’09 ica.bc.ca 11

& Company (then Becker Daley LLP).“It was a difficult decision to leave KPMG,” hesays, “but ultimately I saw it as an opportunity Icouldn’t pass up. Even while I was articling, Iknew I wanted to be a partner—I wanted to beat the front of client relationships.”Today, he advises a broad range of clients onbusiness, accounting, and taxation issues. He’salso in charge of his firm’s financial management.“When I first joined Daley & Company, thefirm had no tax department,” he says. “I had theopportunity to lead in its development, andtoday our tax department has four full-timemembers in tax.”In his work with clients, Mike has found hisentrepreneurial background invaluable.“I can really identify with business owners,” hesays. “I’ve experienced what it’s like to be ontheir side of things, and I remember what it waslike to work with an accountant and not fullyunderstand what they were telling me. So I havea good understanding of my clients’ point ofview, which helps me give them the informationthey need to make truly informed decisions.”“I get to know my clients on a personal level,” headds, “and I want to go above and beyond forthem. As a tax practitioner, that means staying updap_beyondnumbers_jan23.eps 1/26/2009 2:28:16 PMUBC DAPThe gateway to accountingAccelerate your future with the Diploma in AccountingProgram (DAP) at the University of British Columbia.to date and continually learning. It’s challenging,but it’s the kind of challenge I enjoy. I likebuilding a skill set that is useful and in demand.”That skill set has made him highly desirable inthe community as well. In 2008, Mike wasappointed chair of the finance committee for theboard of governors of Thompson Rivers University.Past community service includes serving on theboard of directors of the Kamloops West RotaryClub and as treasurer on the board of directorsof the Kamloops and District Crime Stoppers.With so much on his plate, Mike is extremelygrateful for the love and support of family. “Myparents have always supported me,” he says. “Andmy wife, Melanie is very supportive as well.”He and Melanie have a six-year-old daughter,Ellie, of whom they are extremely proud. “I tryto spend as much time with her as possible,”Mike says. “It seems like just last week she was atoddler. Time passes so quickly.”This Early Achievement Award is really justicing on the cake.“The biggest reward,” Mike says, “is that I havea challenging career that I thoroughly enjoy.”DAP prepares university graduates with limited or no training in accountingfor entry into a professional accounting designation. DAP's curriculum isrecognized by the Chartered Accountants School of Business (CASB)and satisfies most of the program requirements.APPLICATION DEADLINESMay start: Mar 1 (International applicants)Apr 1 (Canadian applicants)Sep start: Jul 1 (International applicants)Aug 1 (Canadian applicants)Find out how DAP can accelerate your future: www.sauder.ubc.ca/dapTHE UNIVERSITY OF BRITISH COLUMBIANolan Watson, CA, CFA“The most rewarding part of my career has beenthe satisfaction associated with attaining goalsI’ve set for myself,” says Nolan Watson. “I tendto ignore the goals that other people set for me.I prefer to focus on goals that I believe are bothhighly challenging and attainable.”It’s fair to say that he sets these goals very high.Asked what drives him, he answers: “I’m drivenby an awareness that life is very short, and sinceyou only live once, you had better make itcount.”After earning a bachelor of commerce withhonours from the University of British Columbiain 2001, Nolan entered the CA program as anarticling student with Deloitte LLP in Vancouver.In 2002, he excelled on the UFE, placing fourthnationally and first in BC, which netted him agold medal and the role of valedictorian at the2003 Convocation ceremony.While working with Deloitte, Nolan found avaluable mentor in Glenn Ives, CA, one of thefirm’s partners.“Glenn definitely had an impact on my careerdevelopment,” he says. “He was an early rolemodel for me who helped me develop a passionfor client service, as well as an eagerness tochallenge and extend myself.”Nolan qualified as a CA in 2003, and stayedwith Deloitte for another two years, workingin the firm’s corporate finance departmentperforming business valuations and merger andacquisition support services. In 2005, he becamea chartered financial analyst charter holder.It was also in 2005 that Nolan left publicpractice to join Silver Wheaton Corp. as itscontroller. He was the company’s first employee.Ian Telfer, the company’s founder, becameanother influential mentor.“The knowledge and experience I obtainedfrom becoming a CA is a critical foundation foreffective business decision-making,” Nolan says.“Ian has helped me build on that foundation,teaching me a lot about various aspects ofbusiness, including acquisitions, and aboutmentoring others to help them reach theirpotential.”Nolan was promoted to CFO at the beginningof 2006. During his three years with SilverWheaton, Nolan was part of the team that listedthe company on the New York Stock Exchange.He subsequently became the youngest CFO ofan NYSE-listed company, at just 26 years old.By the age of 28, he had raised over $1 billion indebt and equity for acquisition purposes. Underhis leadership, Silver Wheaton grew from a marketcapitalization of $0.3 billion to $3 billion.In 2008, Nolan left Silver Wheaton to become12 ica.bc.ca June/Summer ’09

“I’m driven by an awareness that life is very short, and since you only live once, you had better make it count,” says Nolan Watson, CA.Photo by Kent Kallberg of Kent Kallberg Studios Ltd. in Vancouver.the president and CEO of a new company,Sandstorm Resources.“I made the move because I wanted to be partof building a company from the ground flooragain,” he explains.Listed on the TSX-V, the company is lookingto build a metal-streaming business plan similarto that of Silver Wheaton, but in metals otherthan silver. In April 2009 alone, Nolan raised$47 million for the company.In addition to his role at Sandstorm Resources,Nolan currently serves as a director of anotherTSX-V listed company, Gold Wheaton GoldCorp., another company founded by his mentorIan Telfer.Nevertheless, Nolan downplays his accomplishments,saying: “To be candid, I’m notoverly impressed with my accomplishments yet.”This, despite the fact that he was named toBusiness in Vancouver’s Top 40 under 40 list in2006, and voted one of the most motivatedCFAs in the world by CFA Magazine in 2008.Asked what has been most challenging so far inhis career, Nolan says, “ensuring that my careergoals are consistent with my life goals.”These life goals include making a difference inthe community. Passionate about communitydevelopment, Nolan founded an internationalhumanitarian organization called Nations Cryin 2004. The organization builds schools toprovide education for orphans in Sierra Leone,Africa.“Our goal is to provide youth with a senseof hope,” he says, “as well as the tools andeducation needed to help them move out ofpoverty and change their lives and the livesof their families, as well as helping futuregenerations.”Nolan continues to serve as the president ofNations Cry.“I want to make the world a better place,” hesays. “We shouldn’t just focus on doing thosethings that make us feel good, we should alsofocus on things that will actually make a permanentdifference, and education is at the top ofthat list.”Another key life goal is making time for thosewho matter most.“There is no question that my family, mydaughters, and my wife Dana are the most importantpeople in my life,” Nolan says, addingthat support of his loved ones is invaluable.“They ensure that I work towards attaining mypotential, while also keeping me grounded.”June/Summer ’09 ica.bc.ca 13

Community Service Award WinnersBy Michelle McRae, EditorThe Institute’s Community Service Award recognizes CAs who’ve gone above and beyond in volunteering their skillsfor the betterment of the community. This year’s winners are: Dennis Cojuco, CA; Michael (Mike) Mah, CA; JaimeRoberts, CA; and Cecil Schmidt, CA.Dennis Cojuco,CADennis Cojuco says hemade his first real forayinto volunteerism whileattending the Universityof BC, where he actedas vice-president of theFilipino Student Association(FSA), and served as humanitarian projectcoordinator for UBC ONE (another studentassociation). With the former, he led an initiativeto provide support to various soup kitchens inthe Downtown Eastside; with the latter, heorganized fundraising events for Sunny HillHealth Centre for Children in Vancouver.Then in 1999, Dennis and four friends fromFSA and UBC ONE created Enspire Foundation.They had two primary goals in mind: to supportthe education of children living in substandardconditions, and to inspire others to make adifference in the global community.“Growing up in the Philippines, I saw firsthandthe lives of those who are less fortunate,” saysDennis, who describes Enspire’s mission as“empowering and uplifting through educationand encouragement.”The group began their outreach program byorganizing soup kitchens, hosting severalfundraisers, and forging a partnership with thePag-aalay Ng Puso Foundation (PPF) in thePhilippines. Between 1999 and 2002, they sentfunds, through PPF, to help pay for the educationof children in Navotas, a poverty-stricken city inMetro Manila.In 2002, the Enspire team launched “Resonance,”an annual amateur choir festival and fundraisingevent that features choirs from across the LowerMainland. Enspire’s last six festivals have raisedmore than $62,000—money that has goneoverseas toward the tuition fees of indigentstudents in Navotas, and locally to RichmondHigh’s Global Perspectives Program. This moneyalso enabled Enspire to fund and build thefirst stand-alone library in Norzagaray, in thePhilippines’ Bulacan province. Dennis was oneof 15 Canadians to help build the facility in2006.“After Resonance 2002, we had the idea ofbuilding a community on land that had beendonated to PPF,” he explains. “The library nowprovides a venue for people from nearby regionsto congregate, and it’s conducive to learning forlocal children, including children whose familiesare nomadic and living in the mountains.”Enspire continues to support families in Navotasand help build the community in Norzagaray.In May 2009, Dennis and a group of Canadianprofessionals and students (from UBC, SimonFraser University, and Capilano University)helped fund and build the first two homes of anew housing community for 130 low-incomefamilies.“In the long term, we hope to undertakesimilar projects in other developing countries,”Dennis says. “It’s very rewarding to meet theindividuals who’ve received an education, and tosee them succeed in their chosen careers. Andit’s always rewarding when people tell us they’vefound hope and when we see others give back totheir communities.”Dennis has served as vice-president and adirector of Enspire since its inception, and asone of the lead event coordinators for Resonancesince 2002. He remained committed to theseresponsibilities throughout his articling period,and his commitment has only intensified sincehe became a CA in 2008.“The support provided by my family andfriends, and our volunteers, has given me theextra energy to continue volunteering during thebusiest times,” he says. “It has involved somesacrifices, but it’s all worth it knowing that we’rehelping to improve the lives of others.”A senior associate at PricewaterhouseCoopers LLP,Dennis has been recognized as a PwC CanadaFoundation champion for his volunteerism.Mike Mah, CAFor the past 56 years,Mike Mah has lived inNanaimo. It’s a long wayfrom his birthplace—asmall village in the provinceof Guangdong, inChina, which his familyfled in 1949 in search of a better life. After fouryears in Hong Kong, the family immigrated toCanada. Already home to Mike’s paternalgrandparents, Nanaimo was the obvious choice.“Life has been very good to me here,” he says.“Especially coming from the old country… lifehas been very good.”Gratitude is one of the reasons for Mike’stireless volunteerism in Nanaimo, which extendedthroughout his 38-year career with ChurchPickard & Co., and continued after his retirementas managing partner of the firm in 2000.“I feel it’s my duty to give back,” he says.“I want to do my part in making a difference,because there is so much need in the world.”Mike has given back in numerous ways, includingserving as a director and audit committeemember for BCAA; as an advisor and directorfor Malaspina International High School; as adirector and treasurer of the Nanaimo SymphonySociety; and as a director and officer of both theGreater Nanaimo Chamber of Commerce andthe Nanaimo District Hospital Foundation. Forthe latter, he also served as president.For the CA profession, Mike chaired theICABC’s Annual Conference Committee in1977, and served as one of its members in the1980s. In the 1970s, he also served as the firstpresident of the Nanaimo CA Association.“We called our first social event the ‘T4 Frolic,’”he laughs. “It was a lot of fun. The CA clubreally offered a chance for members in our areato come together.”A long-time charter member of the NanaimoNorth Rotary Club, Mike was recognized asRotarian of the Year in 1979. He served as Clubpresident in 1983, and led a successful initiativein 1995 to have women members admitted tohis Rotary Club.14 ica.bc.ca June/Summer ’09

Deeply committed to helping immigrants inhis community, Mike worked with the CathaySenior Citizens Housing Society to providehousing for residents displaced by a fire thatdestroyed Nanaimo’s entire Chinatown districtin 1960. With the Chinese Memorial Society, hehelped raise funds to restore a neglected Chinesecemetery; on completion of the reconstruction,this cemetery was donated to the City for publicuse. Mike also helped establish a garden commemoratingthe area’s Chinese pioneers.In 1999, the City recognized his myriad effortswith a Certificate of Recognition.Today, Mike is a committee member of theNanaimo Dragonboat Festival Society, whichhe helped to establish. The Society raises fundsto donate to the Nanaimo Regional GeneralHospital for the purchase of breast cancerdiagnostic equipment. He is also the currentpresident of the Nanaimo Chinese CulturalSociety.“Volunteering has brought me a lot of joy andsome wonderful friendships,” Mike says. “I’msure I have gained more than I have given.”Jaime Roberts,CAJaime Roberts has participatedin Victoria-areasoccer programs since1996, when she moved toVictoria from her hometownof Campbell River(where her father DennisBerntson, CA, is a public practitioner) to attendthe University of Victoria. Over the past 13years, Jaime has contributed to the BC GovernmentEmployees Co-Ed Soccer Society as aplayer and a team manager, has competed intwo women’s summer leagues, and has coacheda local girls team. But her most extensiveinvolvement has been with the Gordon HeadSoccer Association (GHSA), a community-basedsoccer club with approximately 1,200 members.Jaime was invited to join the club’s board ofdirectors as treasurer in 2004, shortly after shequalified as a CA.“I’d enjoyed the benefits of being a player withthe club for approximately eight years at thatpoint, so it seemed only reasonable that I shouldgive something back,” Jaime remembers. “Also,I’d just taken a job as controller of the VictoriaGolf Club, and I thought the added hands-onaccounting and board experience I would get frombeing treasurer at GHSA would be beneficial inmy new job.”After serving as treasurer for three years, Jaimedidn’t step down from the board—instead, shetransitioned into a new role as the club’s volunteercoordinator. With only a handful of peoplevolunteering in the club’s day-to-day operationsat the time, the workload was becomingdifficult to manage. In her new role, Jaime wastasked with increasing the number of volunteersand linking them to jobs.One of her first coups was to recruit RichardHalliburton, CA, the father of two childrenin the GHSA program, to serve as the board’snew treasurer. Many other calls, however, wentunanswered. So Jaime helped the boardimplement a new participation fee and policy inan effort to turn things around.As a result of this new, formal policy, volunteerparticipation is up dramatically. In addition toredistributing the workload, this increasedinvolvement has helped keep costs down,making the club more affordable and accessiblefor kids in the community.Jaime’s many other contributions to theGHSA include serving as team coordinator ofthe Division 2 Women’s team since 2007, andhelping with everything from funding and grantapplications to facilities usage and communications.In 2008, she also helped the club’sFundraising Committee raise $85,000 towardbuilding an $800,000 artificial turf soccer field.“I’ve enjoyed seeing these things happen,”Jaime says. “And I’ve enjoyed meeting all of thedifferent people at the GHSA. This experiencehas given me a greater appreciation for what ittakes to make a club like this run smoothly. Ihave a lot of respect for the dedication of everycoach, manager, board member, and volunteer—theyare the heart of these organizations.”Since joining BC Ferries as a senior financial analystin 2006, Jaime has participated in the BCFerry Employees Community Breakfast program,which provides hot meals to the homeless severaltimes per year.Cecil Schmidt,BA, CACecil Schmidt has beenan active volunteer inthe Vernon Communityfor more than 40 years.His dedication is attributable,in large part, tothe example set by hisparents. As a young boy growing up in thePrairies in the 1930s and ’40s, Cecil watched hisparents eke out a living farming on rented landand working for others.“They never had much of a chance,” he says,“but they were determined to provide a bettereducation for their family.”In tenth grade, Cecil’s parents sent him to aboarding school run by Benedictine monks. Themonks, he says, “provided excellent teachingand character building,” and their dedication toservice made a lasting impression.Cecil initially pursued social work as a career,but shifted his focus to accounting after movingto Calgary and entering a five-year studentprogram with what was then Collins & Collins.In 1968, he accepted an invitation to moveto Vernon and work with the same firm,which later became Collins Barrow (now BDODunwoody LLP). He retired from the firm’spartnership 20 years ago, and from the office 15years ago.One of the first clients with whom Cecilworked was the Vernon & District Associationfor the Mentally Handicapped. This provedpivotal, he says, as it introduced him tolocal-area charities. He is still involved with theAssociation, and his 30+ years of service haveincluded acting as president for one term and astreasurer for several years.Over the years, he has volunteered withmultiple organizations in almost every sectorof Vernon life. These include the Vernon &District Performing Arts Centre (foundingmember), the North Okanagan CommunityConcert Association, the Vernon Curling Club(now a life member), the North Okanagan CAAssociation (for which he served as presidentfrom 1985 to 1987), the United Way, theVernon & District Immigration Services Society(VDISS), and the Boys and Girls Club.In addition, Cecil is an active member of St.James Catholic Church, and has served as amember of the church’s finance committee. Healso served on the board of St. James School, andserved as president for one term. Today, he continuesto serve as a lay assistant at Sundaycontinued on page 37June/Summer ’09 ica.bc.ca 15

Ritchie W. McCloy Award for CAVolunteerism Goes to Susan K. BurnsBy Michelle McRae, EditorThe Ritchie W. McCloy Award for CA Volunteerism recognizes the value of a CA or non-CA’s contributions to the CA profession, whether through an individualproject or a series of activities. In addition to their dedication to the profession, award recipients must embody values such as openness, honesty, and generosity.If Susan Burns looksfamiliar, it’s probablybecause you’veseen her face in BeyondNumbers before—severaltimes in fact, becauseSusan served as a publicrepresentative on theInstitute’s Council forseven years, contributing time and energy to thebetterment of the CA profession.Susan was invited to join Council in 2001, thefinal year before the provincial governmentbegan appointing public representatives. She’dbeen brought to the attention of Council byReverend Bob Burrows, CA (Hon), who wasthen serving as a public representative himself.The two had a long-standing connectionthrough volunteerism.“There was a vacancy for a public rep andcouncil members were encouraged to suggestnames,” Bob recalls. “I had just learned thatSusan was stepping down from her positionwith the SFU Executive MBA Program. Havingworked with her on various committees andprojects, I believed she would make a greatcontribution to the ICABC. I am sure theInstitute and the general public have benefitedenormously from her remarkable gifts duringthe past several years.”In joining Council, Susan was motivated bythe same impetus that has driven her involvementwith every organization: to help others effectand manage change.“I have an abiding passion for sound publicpolicy,” she told us back in 2005. “On Council,I try always to ask the question: ‘What is reallyin the best interest of the public?’”Look back now on her experience, Susanexplains why she stayed involved with Councilfor more than a full term.“Council was engaged in so many seminaland interesting issues—issues such as education,good governance, strategic planning, and harmonization,”she says. “It was fascinating to seeand be a part of this process. And in terms of thelevel of operation, I’d never seen an organizationso well run. There is great planning, but also openness to change and innovation.”While serving on Council, Susan also volunteered on the Institute’s Recruiting & Training TaskForce and the Task Force on the CA Life Cycle of Professional Learning, both of which set directionfor the Institute, helping to position these issues nationally.Since 2008, the year she stepped down from Council, Susan has been serving on the Institute’sDiscipline Tribunal and on the board of governors of the Chartered Accountants Education Foundation.To all of these various endeavours, Susan brings a unique perspective, informed by a truly diversebackground. She holds, for example, three post-secondary degrees: a bachelor of arts in home economicsfrom the University of BC (1968); a master of science in business administration (majoring in policyanalysis), also from UBC (1981); and a master of arts in theological studies from the Vancouver Schoolof Theology (2006).Her employment history is equally diverse. Prior to her retirement in 2002, she served for 11 years as theexecutive director of the Executive MBA Program (EMBA) for the Faculty of Business Administration atSimon Fraser University (Harbour Centre). During her tenure, she successfully planned and introduceda weekend EMBA program; built a new office team to manage the two EMBA programs from onedowntown location; initiated curriculum updating and course revision; and managed the applicationreview and credential assessment of EMBA applicants.Prior to her role with the EMBA program, Susan worked in a number of different fields. This includedworking as a consultant in strategic planning and marketing, providing advice to professional organizationsand educational institutions, and as a sessional lecturer for both UBC and SFU. At UBC, she also servedas director of the real estate division for the Faculty of Commerce and Business Administration in 1988.Susan’s resume also includes several years with VanCity Savings Credit Union, during which sheserved as manager of planning, research, and development, and oversaw the management and administrationof an 11-person department. Her work before VanCity included five years on the board ofexaminers with the Canada Land Surveyors, a one-year term as the alderman of the City of Whitehorse,and a four-year stint as a radio commentator with CBC Radio in the Yukon.Susan’s volunteer activities have been extensive. Prior to volunteering with the Institute, she served onthe board of directors of the Vancouver Chapter of the International Society for Planning and StrategicManagement, and participated in annual conferences hosted by the EMBA Council.Passionate about her faith, Susan is a past board member of the Contemplative Society, an inclusivenon-profit association that encourages a deepening of contemplative prayer, and a past coordinator ofLiving Presence, a centering prayer and spiritual growth group. Her longest-standing commitment,however, has been to the United Church, both at the provincial and national levels. This has includedserving on the executive committee of the Division of Finance at the national level; as a member of theCamping Committee and the Camp Fircom Society; and as chair of the Staff Model Review Team forthe BC Conference Office. She also served for many years as a member of the official board forDunbar Heights United Church. Today, she continues to serve on both the Finance Advisory Counciland the Grants Committee of the BC Conference Office.“I’ve been given a lot of wonderful opportunities in my life,” Susan says. “Working with the Instituteis one of them. CAs have such integrity—they work so hard, but they also like to have fun. I’ve reallyfound Institute volunteers to be a delightful group.”Photo by Vincent L. Chan of Invisionation Photography.The Ritchie W. McCloy Award provides a cash prize to the recipient’s charity of choice,courtesy of the Vancouver Foundation. Susan has chosen the Camp Fircom Society.16 ica.bc.ca June/Summer ’09

NEWthe ABCs ofA complimentary e-learning course is nowavailable to help you get started on the transitionto International Financial Reporting Standards.This four part on-line program will provide you with thefoundation you need to build your IFRS knowledge. Visit ourdedicated web site and get started today.Your trusted source for everything IFRS.www.cica.ca/IFRS1297IFRS ABC ad.indd 110/15/2008 10:19:29 AM

Investing in Regional BC cont’dAccording to the BC Major Projects Inventory (MPI), between September and December 2008, there were 461 major projects proposed in BC and 370underway, worth approximately $165.2 billion. 6 Residential/commercial projects accounted for 53% of all projects cited in the MPI, 7 with the rest of theprojects occurring in utilities, transportation and warehousing, public services, energy and mining, manufacturing, and other services. 8Most of the projects proposed or underway were concentrated in the Mainland/Southwest, Vancouver Island/Coast, and Thompson-Okanagan DevelopmentRegions. In 2008, these regions accounted for almost 70% of all estimated capital costs in BC. 9Incorporations and bankruptciesBC’s business incorporations rose steadily between 2003 and 2007, but declined in 2008 as investor and entrepreneurial confidence wavered in the face of asharp economic recession. Last year, all of the Development Regions except the North Coast saw a decline in the number of business incorporations, withthe provincial average decreasing by 11.6%. Such a sharp downturn reflects a more pessimistic investment climate than we’ve seen in several years. The greatestdeclines in business incorporations occurred in the Northeast (-18.1%) and Mainland/Southwest (-12.6%) Development Regions.In 2008, the only gain in the province occurred in the North Coast, where business incorporations rose by 1.9%, as a number of major projects were eitherunderway or pending, and growth occurred in a number of service sector industries.Table 3: Business Incorporations in all Development Regions, 2003 to 2008Job Creation (000)5-Year 1-YearRegion 2003 2004 2005 2006 2007 2008 2003-08 2007-08Cariboo 344 428 511 601 560 557 61.9% -0.5%Kootenay 365 450 536 603 730 644 76.4% -11.8%Mainland/Southwest DR 16,930 18,167 22,467 24,114 24,538 21,445 26.7% -12.6%Nechako 99 110 108 137 131 118 19.2% -9.9%North Coast 77 70 88 90 106 108 40.3% 1.9%Northeast 291 377 564 669 542 444 52.6% -18.1%Thompson-Okanagan 1,820 2,039 2,948 3,196 3,446 3,124 71.6% -9.3%Vancouver Island/Coast 2,605 3,062 3,715 3,863 3,983 3,645 39.9% -8.5%British Columbia 22,531 24,703 30,937 33,273 34,036 30,085 33.5% -11.6%Number of business establishmentsBetween 2003 and 2008, the number of business establishments in BC increased by 22,277, reaching 354,695. However, in 2008, the number of businessestablishments declined by 4,619, or 1.3%, reflecting a downturn in business activity that was felt throughout the province.In 2008, the Northeast and Nechako Development Regions experienced the biggest downturn in the number of business establishments, with losses of2.7% and 2.2% respectively; the Cariboo and North Coast Development Regions both declined by 1.2%; and the Mainland/Southwest declined by 0.6%.But not all of the news was bad, as the number of establishments in the Thompson-Okanagan, Vancouver Island/Coast, and Kootenay Development Regionssaw small, positive gains of less than 1% last year.In most Development Regions, the greatest losses took place among business establishments with “no employees.” 10 In 2008, this category declined by 2.4%to 185,273 (just over half of all business establishments in BC). An ongoing decline in the number of larger establishments (those with 50+ employees) alsocontinued in 2008, with slightly more than 200 major employers closing down. In absolute terms, the greatest loss of large employers occurred in the Caribooand Mainland/Southwest Development Regions (-12 and -24 respectively).Living in Regional BCEducational attainmentEducational attainment has a significant impact on productivity, purchasing power, and quality of life. Between 2003 and 2008, BC’s share of the labourforce with post-secondary education rose from 58.9% to 62.7%, a gain of 3.8 percentage points. In the long-term, this will improve BC’s position in anincreasingly knowledge-based global economy.6BC Major Projects Inventory, December 2008. This estimate excludes the capital cost of projects that were completed or on hold.7“All projects” includes those that were proposed, started, completed, and on hold as of December 2008.8Ibid.9Ibid.10This includes self-employed entrepreneurs.20 ica.bc.ca June/Summer ’09

In 2008, the largest gains in labour force educational attainment were made in the Cariboo, Northwest BC, 11 and Vancouver Island/Coast (3.8%, 3.2%,and 2.4% respectively). This boosted educational attainment in the Cariboo and Northwest to 56.1% and 48% respectively last year—a positive sign thatthese regions are starting to catch up to the rest of the province. At the other end of the spectrum, the Mainland/Southwest Development Region continuedto have the highest level of educational attainment in the province at 65.3%.Dependence on the social safety netIn 2008, after two years of little change, social safety net dependency started to inch up in most of BC’s Development Regions. The global financial meltdownof 2008 and slumping demand for our province’s exports led to significant layoffs, with the greatest job losses occurring in forestry and minerals. The shareof BC’s workforce-age adults who depended on basic income assistance and employment insurance increased from 3.2% in 2007 to 3.6% in 2008.Generally speaking, social safety net dependency in 2008 was lowest (4% or less) in BC’s more urbanized Developments Regions—the Mainland/Southwest,Vancouver Island/Coast, and Thompson-Okanagan—but all three regions saw a slight increase last year (up 0.2, 0.3, and 0.5 percentage points respectively).The most dramatic increase in social safety net dependency occurred in the Nechako Development Region, which rose by 1.6 percentage points, to 6.4%,while the Kootenay, Northeast, and North Coast Development Regions increased by 0.2 percentage points.Real incomeReal income growth is a measure of relative purchasing power and, to some extent, change in economic well-being. We use real pre-tax income per capita asour indicator for the BC Check-Up. 12 Regional income data is only available to 2006, but by looking at other factors, such as the unemployment rate and jobcreation, we can make reasonable predictions about how real income has changed since then.Between 2003 and 2006, BC saw extraordinary real income gains due to robust economic activity. The most dramatic three-year increase occurred inthe Northeast Development Region, where average real pre-tax income per capita rose 25%, to $43,990—the highest income level in the province. Thisdramatic gain was driven by the booming oil and gas industry. The Nechako (9.8%) and Thompson-Okanagan (9.3%) Development Regions ranked secondand third for growth in this indicator. Even in the Vancouver Island/Coast Development Region, where real income growth was the slowest in BC, there wasa significant real income gain of 5.2%.Given the export growth and brisk construction activity that has occurred since 2006, it is probable that real income grew in all of BC’s DevelopmentRegions in 2007 and 2008.Full report available onlineThe full version of the BC Check-Up, Regional Edition is available on the BC Check-Up website at www.bccheckup.com under “Regional Edition.” For moreinformation about the report, contact Kerri Brkich, the Institute’s manager of public affairs, at brkich@ica.bc.ca.Marlyn Chisholm is the principal of Chisholm Consulting and the lead economist on the ICABC’s annual BC Check-Up report.11Northwest BC comprises both the Nechako and North Coast Development Regions.12To obtain real values, nominal pre-tax income per taxfiler is deflated by the Consumer Price Index, with a base year of 2002. Data is from StatisticsCanada.June/Summer ’09 ica.bc.ca 21

or property, as should be the case for currentexpenses incurred to cap emissions in businessoperations that are subject to mandatoryemission regulations. Where an unregulatedbusiness incurs such costs voluntarily, it mustjustify the expenditures as a cost of doingbusiness (by establishing, for example, that suchexpenditures were needed to boost the company’smarket profile, increase sales, or reduce costs).R&D expendituresExploring new ways to undertake processes ina manner that reduces GHG emissions ofteninvolves the potential for scientific and/ortechnological advancement. Therefore, manyGHG reduction costs may qualify as “scientificresearch and experimental development”(SR&ED) expenses that are eligible for taxincentives under Canada’s SR&ED program.For example, GHG reduction activities couldinvolve the systematic search for new knowledge(scientific research) or for new or improvedcapabilities, products, or processes (experimentaldevelopment). Any expenditures that qualifyas SR&ED, including those that are capital innature, could be eligible for current deductionand may qualify for investment tax credits.Capital expendituresIf a GHG reduction expenditure is incurredon capital account (but is not an SR&EDexpenditure), the tax treatment will dependon which asset, if any, has been acquired. Forexample, the cost of installing a new energyefficientheating system may be added to theundepreciated capital cost (UCC) of a buildingor, depending on the circumstances, to theUCC of the appropriate separate class ofdepreciable property in question.Special attention should be paid to energyconservation equipment that qualifies for acceleratedcapital cost allowance rates of 30% or50%, depending on the property. In brief, assetsin these accelerated classes include a detailed listof eligible equipment that generates energyin the form of electricity or heat by using arenewable energy source (such as wind, solar, andsmall hydro power) or waste fuel (for example,landfill gas, wood waste, or manure), or throughthe efficient use of fossil fuels (for example,high-efficiency cogeneration systems, whichproduce electricity and heat simultaneously).Changes in recent budgets have expanded thelist of clean technologies to include certainground-source, heat-pump systems, biogasproduction equipment, and waste-to-energyapplications.$120,000 – Senior ControllerA CA that has gained a majority oftheir post public practice experience inhi-tech and manufacturing is lookingfor an opportunity to move to thenext level in their career. They haveextensive reporting experience, strongmanagement and team building skills.They are seeking an opportunity to bean integral part of a senior managementteam.$80,000 – Public PracticeA CA with medium sized firm experienceis seeking an opportunity with apublic practice firm that can offera management level position withpartnership potential. Their experiencehas been focused with public companyclients.Moxxon2/3 Page vertical4C$65,000 – Accounting ManagerA designated individual is looking fora position as Accounting Manager orAssistant Controller with a growingcompany. They have a strongbackground from the resource sectorand they are flexible on trying otherindustries at this time. This candidatehas had exposure to supervisionand experience preparing financialstatements, yearend working papers,budgets, etc. They are seeking aposition with a dynamic and progressiveorganization.$60,000 – Financial AnalystA recently designated individual islooking for a position as a FinancialAnalyst with a growing company. Thiscandidate has previous experiencein preparing budgets, varianceanalysis, and liaising with operationsdepartments to assist in reportingneeds.$55,000 – Senior Corporate AccountantA newly designated Senior Accountantwith experience focused in the serviceindustry is looking for an opportunityto move into a more senior role withsupervisory experience. They havesolid experience in all areas of full cycleaccounting including monthend journalentries, general ledger reconciliationsand financial statement preparation.This candidate has strong technicalabilities and interpersonal skills.$45,000 – Junior AccountantAn accounting student, who ismotivated to complete their studiesand move forward in their career, hasgained a majority of their experiencein the construction and developmentindustries. They have experience inpreparing bank and general ledgerreconciliations, journal entries, andassisting with month-end preparation.in our22 ndyear!June/Summer ’09 ica.bc.ca 23

The cost of acquiring offsets andallowancesA business may also reduce its GHG emissionsby:• Acquiring an emission allowance within acap-and-trade system;• Directly funding a carbon reduction projectwith a project developer; and/or• Acquiring a carbon reduction or offset creditfrom a trader (this may include the BCgovernment’s new Pacific Carbon Trust, 2 whichis expected to sell offset credits to the public).With regard to the tax treatment for the cost ofcarbon reduction or offset credits, the CRA hasstated that while credits purchased in one yearmay be applied against a taxpayer’s emissionreductions in a future year, the costs of acquiringcredits should be included in the cost of goodsproduced by the taxpayer, where it can be shownthat the credits can only be used once and thecosts incurred are related to the cost of producingthe taxpayer’s products in the year. Consequently,a portion of the acquisition cost of a creditwould be deducted in the year as cost of goodssold, while any balance relating to unsoldproducts would be included in the cost of inventorieson hand. Otherwise, the cost of acquiringcredits would generally be deductible in thetaxation year in which it applies.In addition, the CRA has noted that the costsof acquiring credits may be considered “capital”in nature, rather than current. It has stipulatedthat in cases where credits are granted indefinitelyor for a number of years and may notbe carried forward, any capital costs shouldrepresent either an eligible capital property(indefinite life) or the cost of a depreciable propertyincluded in Class 14 (fixed term), to beamortized for tax purposes over future years.Ultimately, the facts of each situation willdetermine whether the purchase of carboncredits is considered capital or current in nature,and in which period they should be deducted.Treatment of GHG reductionproject receiptsA company may find that parts of its regularbusiness operations generate carbon or emissionoffsets, which could be validated by a qualifiedprofessional and sold to a purchaser. In BC, inaddition to private project developers and offsettraders, such purchasers now include the provincialgovernment’s Pacific Carbon Trust. Regulationsenacted by the province in December 2008 setout requirements for GHG reduction projectsthat could be recognized as official emissionoffsets in fulfilling the BC government’s commitmentto a carbon-neutral public sector by2010. Since early 2009, the Pacific CarbonTrust has begun to actively fund offset projectsthroughout the province.When it comes to the tax treatment of theproceeds received from carbon offset sales, areview of all the relevant contractual documentsand circumstances is required. Those conductingthe review should consider the tax treatment ofthe original expenditures relating to the project.For example, a farmer may adopt a new practiceof direct seeding, which may qualify as an offsetproject and generate carbon offset revenue fromthe purchaser (e.g. the Pacific Carbon Trust).This incidental revenue will likely constituteincome from the farmer’s farm business.In another example, during the course ofbusiness, an organization may consider replacingan old steam turbine engine with the latestenergy-efficient model in a project that mayqualify as a GHG reduction project or offset. Tothe extent that carbon offset proceeds may berealized in respect of the cost of acquiring thisnew depreciable property, the proceeds mayconstitute a receipt that is eligible, depending onthe circumstances, to reduce the capital cost ofthe depreciable asset acquired.Finally, the treatment of proceeds from thesale of offset credits or allowances previouslyacquired from third parties again depends on thecircumstances—including the treatment of theacquisition costs and whether or not the creditswere acquired as part of regular business operations.Preparing for changeGHG emission regulations have now beenenacted in BC, and further provincial, federal,and international regulatory developments areexpected in the near future. In the meantime,BC businesses will continue to identify incentivesand pursue ways to voluntarily reduce theircarbon footprints.A critical first step in establishing operationaland tax strategies involving carbon reductionis to identify and measure baseline emissions,existing projects that may qualify as offsets, andfuture emission reduction opportunities. A carbonadvisory specialist who understands not only theGHG-related issues but also the tax implicationsof the various alternatives can prove to beinvaluable in helping to prioritize a company’soptions and develop a comprehensive greenbusiness strategy.George Kondopulos, CA, is a senior tax managerwith KPMG LLP in Vancouver, and a memberof the firm’s growing Carbon Advisory Group,advising BC businesses on green energy, cleantechnology, carbon regulation, and sustainablebusiness practices.DisclaimerKPMG LLP states that the information containedherein is current to April 30, 2009, and is of ageneral nature that is not intended to address thecircumstances of any one particular individual orentity. Although KPMG LLP endeavours toprovide accurate and timely information, there canbe no guarantee that the information is accurate asof the date it is received, or that it will remainaccurate in the future. Readers should not act onsuch information without appropriate professionaladvice and a thorough examination of the particularsituation.2The Pacific Carbon Trust is a BC Crown corporation established to deliver carbon offsets to help organizations and individuals meet their carbon reductiongoals. The BC government and other public sector organizations will be required to purchase carbon offsets from the Trust by 2010 to achieve carbonneutrality. It is also anticipated that the Trust will make carbon offsets available for sale to businesses and individuals interested in reducing their carbonfootprints. To meet the demand for carbon offsets, the Trust purchases offsets from eligible BC-based projects that reduce or offset GHG emissions.24 ica.bc.ca June/Summer ’09

June/Summer ’09 ica.bc.ca 25

Financial Facts & Money MattersBattered Dreams and Remarkable OpportunitiesInsights into M&A Considerations for Private Businesses in the Current RecessionBy Iqbal Tejpar, CA, CFA“Life is like an airplane journey. No matter how good the takeoff, no matter how good the flight, if you have a crash landing, then it was all for nothing. I am comingin for a landing now. The important part of my life is just beginning.”—Soichiro Honda, Founder, Honda Motor CompanyMany of us have seen an increase in thenumber of businesses suffering “crashlandings”—whether due to a drop insales or difficulty obtaining financing. The woesof the stock market, the housing sector, and theauto industry are well documented and regularlyreported in the news media. But when a friendof mine called recently to tell me that he wasfolding his small wholesaling business because ofthe recession, it brought the issue much closer tohome. I realized on a more personal level justhow badly the economic slowdown is affectingprivate businesses. It made me wonder howmany other private business owners might bestuck in a holding pattern, running out of fuel.Most of us know private business ownerswho, having put the better part of their lives intotheir businesses, are now hoping to sell theirbusinesses and retire comfortably. We may alsoknow entrepreneurs who are on the verge ofinvesting large sums of capital into privatebusiness ventures. So just how severely are thesesellers and buyers being affected by the recession,and what advice should professionals begiving them?My network includes professionals involvedin advising clients who are buying and sellingprivate businesses. I spoke to three contacts withdifferent specialities to get their insights. DonSihota, LL.B., is a partner and business lawyerwith the firm of Clark Wilson LLP; KevinWong, CA, is a senior tax manager with DaleMatheson Carr-Hilton Labonte LLP, and JamesGallagher is the regional vice-president ofcorporate finance at BMO Bank of Montreal.Iqbal Tejpar, CA, CFA: To begin with, Iassume that you’ve all seen a drop in activity inthe sales of privately owned businesses since thelocal economy took a turn for the worse. True?Don Sihota, LL.B: Yes, there has been a dropoff in the number of transactions. Some businessowners have told me they regret not selling theirbusinesses a year or so ago when prices werehigher. And many have now put things on holdto wait out the storm.Kevin Wong, CA: There has been a decreasein the number of transactions we’ve witnessed aswell. Some business owners are choosing todefer the sale, but there are those who haveexperienced working capital difficulties, includingrenewing credit, and now have to sell eventhough they had no previous intentions to do so.There has also been an interesting change in theplayers, with a new class of purchaser cominginto the market; these new players are professionals(lawyers and doctors, for example)looking to invest in good businesses with strongcash flows, and hoping for a profit in a shortertime frame—“turn-key” type operations.James Gallagher: Yes, I agree that entrepreneursare concerned about selling in such avolatile market. In fact, at one point, we foundthat every pending privately owned business upfor sale prior to the Lehman Brothers collapsedid not proceed. Owners are trying to continueto manage their businesses while waiting forvaluations to recover.IT: Are purchasers more motivated now thatvaluations have dropped?JG: They are more motivated, but they’re alsomore cautious. They have a greater selection ofbusinesses to choose from today, and they havemore time to make decisions. Purchasers arechoosing businesses with stable cash flows, andbusinesses that have weathered the downturnbetter.DS: Personally, I can’t recall a time when purchasersmoved more slowly. They may feel it is abuyers’ market, but they are also being a lotmore cautious or risk averse. When they find theright business, they negotiate to minimize therisk they take on, and these measures are beingincorporated into the legal documents.KW: Yes, purchasers are being more selective,and some have decided not to buy right now.But as I said, there is another class of investorcoming into the market because of the low valuations,and they’re looking at these businessesmore speculatively.IT: What advice are you giving purchasers andsellers of private businesses today?KW: There is the core advice that we’ve alwaysgiven clients irrespective of the economic climate.Early planning, before any sale is even contemplated,will ensure that after-tax proceeds fromthe sale of the business are maximized.Planning takes time if it is to be effective. Iexplain to clients that succession planning canbe equated to a nine-yard process: You don’tneed to complete the whole nine yards in onego—you can build up your plan one yard at atime.JG: I think there’s a general impression thatpurchasers cannot find financing right now, butwe are still seeking deals to finance, and our duediligence process is the same today as it wasbefore the crisis. We are like any other prudentinvestor, very willing to lend for the right deal.While we may not be able to offer the same ratesrelative to the prime rate, that prime rate is athistoric lows, so the absolute rate we are offeringis at levels borrowers would have been thrilledwith only a couple of years ago.DS: I advise buyers and sellers to consider how26 ica.bc.ca June/Summer ’09

the economic slowdown has impacted bothsides. Sellers are looking to create a retirementnest egg from the sale of their business. On theother hand, buyers are seeing businesses withlower cash flows or sales revenues, so they’repricing accordingly. Sellers need to realize thateven if business valuations are lower, so are thevaluations of other investments. I know this isyour area of expertise Iqbal, but given the dropin the equity markets, the proceeds from the saleof a business today might still buy almost thesame number of shares or investment units as ifthe business had been sold last year. So with thehelp of a team of strong professionals, the transactioncan still achieve the original goals of eachparty.IT: What typically triggers an entrepreneur toconsider selling their business? Is it mostly aquestion of age?DS: There are many triggering events, but theage and health issues of the owners and/or thoseclose to them do seem to be the most common.It’s worth noting that these events are not withinthe owner’s control, and because of this, theowner is often unprepared when health issuesarise. We all know these triggering events willcome, yet it seems that we don’t want toacknowledge it—as if pretending these eventswon’t happen might somehow delay or preventthem. That’s why most business owners don’tgive a lot of thought to business successionplanning until they’re older, by which time theymay have lost some of the advantages of planning.KW: I agree with Don—age is definitely acommon trigger, especially if the vendor hasany aspirations (such as travel or family time)outside of the business. Another trigger wewitness is the business owner who doesn’t havefamily members or employees for succession,and must rely on a sale to an outside third party.This causes some business owners to list theirbusinesses earlier than they would otherwise—they want more time to find a buyer, and wantto avoid a stressful situation due to, say, poorhealth.JG: I think it’s true that entrepreneurs oftenoverlook their own health concerns becausethey’re so focused on building their businesses.But the statistics on illnesses like heart diseaseand cancer, not to mention workplace injuries,are troubling. In the event that a business ownerhas a heart attack, for example, key employeesmay become concerned about their future in thebusiness, and begin to look for other opportunities.Employee morale as a whole can be affected,creating a negative impact on the business.IT: When it comes to succession planning, hasthe change in the economy affected your adviceto clients?JG: Not really. If anything, it has highlightedthe importance of planning well in advance.There are three categories of purchasers: family,management, and third parties. A client’s planwill help them decide which is most appropriatefor them.KW: The change in the economy has affectedour advice to clients on this topic, especiallywhere family succession plans are concerned. Asyou know, there are many ways to structure asuccession plan, and one important step is todetermine the timing of the ownership transfer.Given the drop in the value of businesses, nowcould be an opportune time to transition abusiness to family successors, assuming this waspart of a client’s plan anyway; this is especiallytrue if the transferors will subsequently havesufficient wealth for their lifestyle and lifetime.Other planning issues becoming more importanttoday include the length of time duringwhich post-sale service is required of the vendor,and the concerns of vendors who want to ensurejob security for key employees after a sale.DS: My advice has always been that the key tobusiness succession planning is planning. It maybe trite, but the old adage: “Those who fail toplan, plan to fail” couldn’t be truer in this area.Business succession planning is independentof economic circumstances. Not planning forbusiness succession is a poor strategy for anybusiness owner to choose—it turns them intotumbleweeds, blown about by the winds ofcircumstance. Business owners who take controlof succession planning can turn their circumstancesto their advantage.IT: Thank you for sharing your insights! Nowlet’s get to your individual specializations:Where do you fit in the process of selling orbuying a business?JG: Well, like many accounting firms, we providethe complete advice package on successionplanning. But I suppose you are referring tosourcing financing and providing bankingservices, which is where the public see ourinvolvement. In our experience, every buyout isunique, and we create customized financingsolutions that can include any combination ofthe following: operating lines of credit, securedterm debt, asset-backed financing, and mezzanineor subordinated debt. Or we can help securethird-party financing.DS: My role is to put together the legal frameworkthat will minimize risk for my client, so as totransition their business safely and successfully. Iwork closely with mergers & acquisitions advisorswho bring the buyers and sellers together.Another professional I work closely with isthe accountant, to provide tax planning andaccounting advice. And since the accountantworks on matters after the closing to monitorand meet the financial milestones embedded inthe purchase agreement, I prefer that they havea chance to comment on the agreement beforeit is finalized. I also advise the purchasers onstrategies designed to maintain the value of thegoodwill and keep the vendor motivated tomaximize profit through the transition period;these include retention clauses and earn-outarrangements.As for vendors, my advice for them is designedto get as much of the price up front, and tominimize the buyer’s ability claim any amountback.KW: If we act for the vendors, we get involvedwith structuring the sale in a manner that willmaximize the after-tax sales proceeds. Dependingon the circumstances, the structuring may beas simple as “purifying” the company (assumingshares are sold) so that the vendor can use theirenhanced capital gains exemption. Or it mayinvolve a complex reorganization. If we act forthe purchasers, we often assist with the taxdue diligence, especially if shares are beingpurchased; we structure the acquisition to ensurethat it’s tax-effective for the purchaser, andalso to ensure that the acquisition structureintegrates with the purchaser’s existing businessstructures (if any) for both tax and non-taxpurposes.In either case, we see ourselves as the quarterbacksfor the process and often work closely withthe lawyers.IT: Thank you again for sharing your thoughts.Providing guidanceIn today’s rollercoaster capital markets, it’sdifficult to think of investment portfolioswithout feeling a little queasy; interestingly,however, there seem to be more opportunitiestoday for a tax efficient stream of income thanthere were two years ago. At the height of themarkets, clients were wandering out too farJune/Summer ’09 ica.bc.ca 27

along the risk spectrum and exposing themselvesto esoteric assets that were unclear to even themore sophisticated advisors. An investmentstrategy built using the proceeds from the sale ofa business can now achieve a steady incomestream within the risk tolerance of most clients,using simple vehicles and strategies that wouldbe far more comfortable for them.CAs can add value to their clients and/oremployer by encouraging them to think aboutsuccession planning. Use the economic turmoilto highlight the fact that an unexpected event orcircumstance could suddenly occur that makesthe business owner want to step aside. Remindthem that the best time to check their landinggear is before take-off!It’s never too early to plan for succession,because planning for and implementing an exitstrategy takes time. It also takes the advice ofseasoned professionals (such as CAs, bankers,lawyers, M&A advisors, and portfolio managers)to bring the “plane” in for a smooth landing.Sound, proactive advice will help businessowners pick up and dust off any battereddreams, and begin “the important part of life”with a sense of achievement and equanimity.Iqbal Tejpar, CA, CFA, is the vice-president anda portfolio manager with BMO Nesbitt Burns Inc.in Vancouver. He has over 15 years of experiencein managing wealth, and is a director of CFAVancouver, a member of the CFA Institute’sDisciplinary Review Committee, and a member ofboth the ICABC and the Institute of CharteredAccountants of Scotland. A long-time resident ofNorth Vancouver, Tejpar has served for many yearson the board of directors of the Capilano UniversityFoundation. If you’re looking for more informationon advising Canadian entrepreneurs, BMONesbitt Burns offers a series of free podcasts atwww.rtwealthmanagement.ca. Click the “Webcasts”tab, then choose the podcasts link in the fourthentry, “Advice for Canadian Entrepreneurs.”DisclaimerOpinions are those of the author and may notreflect those of BMO Nesbitt Burns. The informationand opinions contained herein have beencompiled from sources believed to be reliable at thetime of this writing; however, no representation orwarranty, express or implied, is made as to theiraccuracy or completeness. BMO Nesbitt Burns Inc.is an indirect, wholly owned subsidiary of the Bankof Montreal. Member CIPF. If you are already aclient of BMO Nesbitt Burns, please contact yourInvestment Advisor for more information. “NesbittBurns” is a registered trademark of BMO NesbittBurns Corporation Limited, used under licence.28 ica.bc.ca June/Summer ’09

PD NewsFor detailed course descriptions or acomplete schedule of upcoming PDseminars, consult your spring 2009PD brochure or visit our website atwww.icabc-pd.com. To register, callthe PD department at 604-681-3264.Audit & AccountingIFRS – Intangible Assets and Impairment ofAssetsThis seminar will provide comprehensive informationon the accounting treatment for, and themeasurement and disclosure of, intangible assetsin accordance with international financialreporting standards (IFRS)—specifically wherethese are not addressed by any other standards.The seminar will also cover the IFRS proceduresan entity must apply to ensure that its assets arecarried at no more than their recoverableamounts. This will include discussion of thereversal of impairment losses and disclosurerequirements.Jun 22, 9am-5pm, Four Seasons, VancouverIFRS – Mining IndustryThis seminar will familiarize participants withthe accounting and disclosure requirements ofIFRS 6, and update them on the current statusof the International Accounting StandardsBoard’s ongoing extractive industries project.In particular, the key standards that affect themining industry will be reviewed, includingIFRS rules on exploration, impairment of assets,property, plant and equipment, closure and environmentalliabilities, and derivative and hedgeaccounting.Jun 25, 9am-5pm, Four Seasons, VancouverIFRS – Financial Services: BankingThe objective of this seminar is to provideparticipants with a solid understanding of theimplications of IFRS for the banking side of thefinancial services sector. It will provide participantswith an understanding of how the accountingfor assets and liabilities will differ under IFRS, aswell as an appreciation of the accounting choicesthat companies will need to make before changeover,and the implications of these choices oncorporate financial statements.Jun 26, 9am-5pm Sutton Place, VancouverManagementCredit and CollectionThis two-hour workshop will provide basicprinciples and simple applications for maximizingprofitability through credit management. Thiscourse is a must for CAs who have accounts receivableof their own and for those who provideadvice to organizations with accounts receivable.Jun 16, 7:30-9:30am, Sutton Place, VancouverCritical Thinking and Self-ReflectionSuccessful leaders and managers all have onething in common: They learn by doing and byapplying their experience to day-to-day activities.At the core of their learning style is an ongoingassessment of the assumptions that inform theirapproach to both decision-making and relationships.This seminar will identify the links betweenlearning style, critical thinking, and self-reflectionin both our professional and personal lives,and explain how to use these tools to enhancepersonal effectiveness.Jun 17, 9am-5pm, Sutton Place, VancouverEmployment Standards OverviewThis seminar will provide a general introductionto key provisions of the BC Employment StandardsAct (ESA), with an emphasis on commonlymisunderstood requirements. The seminar isdesigned to help participants identify ESAcompliance requirements and current HRcompliance issues, and formulate solutions.Jun 25, 9am-12:30pm, Sutton Place, VancouverFaster and Better Financial ProcessesFinancial processes affect all areas of business:operations, sales, marketing, purchasing, R&D,etc. These functions require timely and accurateinformation and transaction processing. Improvingfinancial processes can decrease cost and improvethe bottom line by increasing efficiency andeffectiveness. Financial process review (FPR) canbe used to achieve dramatic improvements incritical performance measures: cost, quality,capital, service, and speed.This seminar will teach participants how toimplement an FPR in their organizations in arealistic and effective manner.Jul 09, 9am-5pm, Sutton Place, VancouverFinancial Tools that Go Beyond theStatementDo the owners and managers of your companyfully comprehend the financial statements andperformance reports you provide? Do people inyour company or organization really use financialstatements as strategic planning tools?This program will focus on practical and provenfinancial tools to go “beyond the statement” andturn your company’s income statement and balancesheet into incredibly powerful managementtools. By analysing the financial statements foryour company and by implementing these tools,you will strengthen your role as a trusted advisorand manager.Jun 19, 9am-5pm, Four Seasons, VancouverLenders, Banking, and Your Client: WhatYou Need to Know to Get Through theRecessionThis is a hands-on course designed to introduceaccounting professionals to the seeminglyimpenetrable world of commercial lending. Thiscourse has been overhauled and updated toreflect the new economic reality; it will give youthe information you need to better manageborrowing relationships during the recession.Jun 24, 9am-12:30pm, Sutton Place, VancouverStrategy Tools for Not-for-ProfitThis seminar will take the concepts of strategicplanning and extend them using strategy mapsspecifically designed for not-for-profits (NFPs),with the ultimate goal of managing resourcesmore effectively.One of the problems facing NFP managementtoday is the need to allocate resources to severalkey initiatives while at the same time trying tomaintain excellence in core operations. Thisseminar will use lecture, discussion, and casestudy exercises to show you how to apply performancemeasurement in practical ways to achievestrategic goals.Jul 07, 9am-5pm, Grand Okanagan, KelownaJul 08, 9am-5pm, Sutton Place, VancouverTaxationForeign Affiliate Rules for the MiningIndustryCanada’s tax system is uniquely complex when itcomes to foreign-controlled corporations. Thisseminar will provide you with a basic understandingof the framework of these importantrules under both the existing law and theproposed amendments. The seminar will alsodescribe how these rules typically apply in thecontext of foreign mining operations.Jul 13, 9am-12:30pm, Sutton Place, VancouverJune/Summer ’09 ica.bc.ca 29

Exciting Leadership Roles for Chartered AccountantsInstitute of Chartered Accountants of British ColumbiaVancouver, BCJoin a progressive team of professionals in beautiful Vancouver! The Institute ofChartered Accountants of BC wishes to attract experienced Chartered Accountantswith leadership acumen and an interest in professional oversight to join the RegulatoryAffairs team. If you are a technically proficient Chartered Accountant with a passionfor excellence in professional practice, these positions will provide uniqueopportunities for you to shape and deliver programs that foster BC members’ andfirms’ compliance with high standards of professional conduct.Ideally, you are a CA with several years of substantive experience in progressivelymore senior roles, preferably in public practice or a regulatory environment. You havea reputation for ethics and excellence in practice. A team player with a positive,proactive style, you have an active interest in the changes occurring to accountingstandards and wish to preserve the public trust in the profession by assisting membersto stay relevant and current in their accounting practices. Organized, forward thinking,and flexible, you possess a facilitative style and the ability to engage in creativeproblem-solving. With an unfailing commitment to ongoing learning, you have a knackfor anticipating and leading change.The ICABC offers competitive compensation and benefits, and a progressive,collaborative work environment that promotes growth and balance. All qualifiedcandidates are encouraged to reply, in confidence, quoting file #14306, tosearch@janetdavid.com. We thank and acknowledge all candidates, and willproactively contact those selected for interviews.30 ica.bc.ca June/Summer ’09

Demystifying ContinuingProfessional DevelopmentBy Stella Lam-Leung, CA, Associate Director of Professional DevelopmentTime certainly flies by—we’re alreadyhalfway through the current continuingprofessional development (CPD) cycle!It has been a very busy season, during which mycolleagues and I have answered many questionsabout the new CPD program. With that inmind, now seems like a good time to dispelsome common CPD myths, gleaned from ourconversations with members. We hope this willhelp you plan your CPD activities for the remainderof the year and the triennial cycle.Minimum CPD Requirements*Minimum TotalVerifiable CPDHours HoursAnnual 10 20Triennial cycle* 60 120*Beginning January 1, 2008Myth #1: Only accounting,auditing, and tax coursescount toward CPDFalse. The CA designation signifies more thanjust accounting acumen. As the profession’snational marketing slogan, “Decisions Matter,”suggests, CAs are respected decision makers,strategic thinkers, and advisors.As a member of the Institute, you are encouragedto take CPD that is relevant to yourprofessional role—whether you work in atraditional accounting role or not. Take aninventory of your skills and consider whetheryou allocate sufficient time to building orrefreshing the various skills needed to do yourjob well. These skills will likely involve more thanaccounting, auditing, or tax courses. Consider,for example, whether you have the range of softskills needed for your role, such as negotiation,presentation, and leadership skills. Also, considerexpanding your knowledge in your particularindustry.The CA profession has taken a detailed analysisof the core knowledge and skills expected of CAsby business, government and the public, andconsulted with members, clients, and employersto develop the CA Competency Map, which liststhe competencies expected of our members. TheCA Competency Map is now used as the basis forour CA qualification process, and it is also anextremely useful tool to shape our post-qualificationPD opportunities. More information about theCA Competency Map can be found at www.cica.ca/competencymap.Myth #2: Only ICABC coursescount toward verifiable CPDFalse. Verifiable CPD includes any learningactivity that can be objectively verified by acompetent source. Although the ICABC’s PDdepartment offers more than 500 unique coursetitles each year, the Institute isn’t the only sourceof qualifying verifiable CPD. Everyone’s CPDneeds are different, and we recognize that it’s notpossible to offer all of the courses that would berelevant to members. Accordingly, we encourageyou to also consider taking courses fromuniversities, colleges, associations, and privateeducational providers, along with conductingother qualifying types of verifiable CPD activities.As part of our commitment to member service,we’ve compiled a list of the many CPD sourcesavailable, and posted it for your referral at www.icabc-pd.com/cpd. An abridged version of thislist appears on pages 32 and 33.Myth #3: The cost of complyingwith CPD is expensiveFalse. There are many economical sources oflearning. In fact, you can even compliment yourincome and earn CPD credits at the same timeby instructing courses for ICABC or facilitatingmodules for the CA School of Business! Theaforementioned list of CPD sources on ourwebsite (shortened on pages 32 and 33) indicateswhere you can find economical sources of CPD.Committed to assisting members with theirprofessional development, the ICABC’s PDdepartment offers free PD sessions to memberswhenever possible. A number of free sessionshave already taken place this year, and severalmore are available this month, including twofree sessions before the ICABC’s annual generalmeeting on June 23rd. These free events arealways well attended.PD Passports are also very popular, as they cansave holders up to 40% off seminar prices. Salesof the 2009/10 passports began this month. Forfurther savings, members can take advantage ofthe early-bird pricing offered for the passportsuntil September 9, 2009.Myth #4: CPD record-keepingand reporting are a hassle atthe end of the yearFalse. Record-keeping and reporting don’t haveto be a hassle—not if you use the ICABC’s CPDonline reporting system, which we launched in2008. Based on your feedback thus far, thelaunch of the online reporting system was anunqualified success. In fact, over 50% of themembership reported their CPD activities for2008 online. Since the launch, we’ve upgradedthe system so that you can now log your CPDactivities throughout the year at www.ica.bc.ca/secure whenever you take them. You can evenretrieve all your ICABC course registrationsyourself. Then, at the end of the year, all you’llneed to do is click “submit” to confirm that yourrecords are complete and accurate, and voilà:Your CPD reporting will be complete!Myth #5: You can lose yourCA designation if you failto comply with the CPDrequirementsTrue. Thankfully, excellent CPD compliancerates mean that this is a rare occurrence. However,the Institute’s Council may take such action as itdeems appropriate against members who eitherfail to file a CPD report or otherwise fail tocomply with the CPD Bylaws and/or Regulations.Such action may eventually include suspensionor cancellation of ICABC membership. Thesesteps ensure that our members are competentand up to date in performing their duties, andthereby uphold the reputation of our profession.Contact usIf you have any questions regarding CPD,please contact me at lam-leung@ica.bc.ca or604-631-2570, or contact Lisa Murray, assistantto the PD department, at murray@ica.bc.ca or604-488-2614. (Toll free in BC: 1-800-663-2677.)June/Summer ’09 ica.bc.ca 31

CPD Sources 1Provider 2Additional InformationOptions OutsideVancouver AreaVerifiable OnlineOptions 3 Low-CostOptionsCanadian Institute of CharteredAccountants (CICA)Institute of CharteredAccountants of BC(ICABC)CA School of Business (CASB)Regional CA AssociationsOther Accounting BodiesProfessional FirmsCICA continuing educationwww.cpd.cica.caCA specialist designations and strategic partnershipswww.cica.ca/index.cfm/ci_id/270/la_id/1.htmFree CICA webinarswww.cica.ca/5/0/3/6/7/index1.shtmlCICA online courseswww.cica.ca/index.cfm/ci_id/20491/la_id/1.htmCICA Online Self-Study Centrewww.cpd.cica.ca/KeepingCurrent/About.cfmICABC PDwww.icabc-pd.comParticipate on a technical committee -www.ica.bc.ca/kb.php3?pageid=1499&term0=volunteer+opportunitiesBecome a CASB facilitator or CASB markerwww.casb.comCheck with your Regional CA Associationfor upcoming events.Fraser Valley CA Associationwww.fvcaa.caIf you are a non-resident of British Columbia,check with your provincial CA institute or yourlocal accounting organization.Many accounting and law firms host free seminars,offer webcasts, and post publications on theirwebsites.x x xx x xx x xxxxxx x xEducational Providers and InstitutionsUniversities and collegesBritish Columbia Institute of TechnologyConference Board of CanadaCCH Canada LimitedCanadian Management CentreInstitute of Corporate DirectorsCFA Institute (Chartered Financial Analyst)Financial Planners Standards CouncilCSI (Canadian Securities Institute)Canadian Institute of CharteredBusiness ValuatorsCanadian Payroll AssociationCanadian Association of ManagementConsultantsBC Human Resources ManagementAssociationInformation Systems Audit & ControlAssociation (ISACA)Check universities or colleges for continuing educationor executive programs. Some offer distance learningprograms.www.bcit.cawww.conferenceboard.cawww.cch.cawww.cmctraining.orgwww.icd.cawww.cfainstitute.orgwww.fpsccanada.orgwww.csi.cawww.cicbv.cawww.payroll.cawww.cmc-canada.cawww.bchrma.orgwww.isaca.orgx x xx x xxx xxxxxxxxx x xxx xx x xxxx x x32 ica.bc.ca June/Summer ’09

Plugged In: News for and about members & studentsAnnouncementsCongratulations!Ken Lepin FCA, has joined the board of directors of Venture Kamloops BusinessDevelopment Society, the City’s economic development arm. A Kamloopsresident since 1964, Lepin has been involved in commercial propertydevelopment and rentals for 37 years and has served on numerous communityboards, including the City’s board of variance, the Business Care program, andKamloops United Church.Congratulations to our 50 and 60-year members!50-year membersMr. Jack R. Abercrombie, CAMr. Douglas T. W. Aikman, CAMr. Norman A. Alban, CAMr. W. Roy Alexander, CAMr. Leslie A. Bannerman, CAMr. Allen Baxter, CAMr. Clarence Blatt, CAMr. Bruce D. Boyd, CAMr. Robert L. Buxton, FCAMr. Robert J. Cobb, CAMr. John W. H. Crawford, FCAMr. Peter R. Cumpston, CAMr. Eric T. Dallow, CAMr. George A. Davidson, CAMr. Rudy H. Derton, CAMr. David Devine, FCAMr. Odd I. Eidsvik, FCAMr. A. Dudley Freeman, CAMr. Ron P. Gault, CAMr. John R. Gordon, CAMr. Ross E. Groom, CAMr. Keith H. Hawes, CAMr. Geoffrey W. Heap, CAMr. Joseph R. Hill, CAMr. Ronald H. Holoday, CAMr. John R. House, CAMr. Robert G. Johnson, CAMr. Douglas I. Johnston, CAMr. Ernest R. Keast, CAMr. Philip M. King, CAMr. William D. Kinsey, CAMr. Euan M. Kirkwood, CAMr. Robert F. Kuhn, CAMr. Charles E. Lavis, CAMr. David G. R. Lindsay, CAMr. John O. V. Madsen, CAMr. A. John Marshall, FCAMr. Daniel L. McDonald, FCAMr. David A. Nelson, CAMr. Bryce M. A. Porter, CAMr. Richard D. Pratt, CAMr. Norman C. Ratcliffe, CAMr. Lawrence E. Rozon, CAMr. Bryce G. Smith, CAMr. Leo J. Soligo, CAMr. D. James G. Stewart, CAMr. Lionel S. Such, FCAMr. Donald C. L. Ursaki, CAMr. Robert Vogel, CAMr. Mark S. Waldman, CAMr. Bruno V. W. Westerlund, CAMr. John Wiebe, CAMr. Donald G. Wilkes, CAMr. Kenneth H. Wilkinson, CAMr. William W. Winnett, CA60-year membersMrs. Jean H. Clarke, CAMr. Earl C. Dixon, CAMr. Marco Gandossi, CAMr. John H. Gordon, FCAMr. Earl T. Jewitt, CAMr. Dennis W. Leary, CAMr. John B. Lonergan, CAMr. Carson G. Manzer, CAMr. Charles L. Mitchell, FCAMr. Roderick A. Munro, CAMr. Reginald J. Nation, CAMr. John I. Rawlinson, CAMr. James M. Standeven, CAMr. John E. Williams, CAMr. Evan M. Wolfe, FCAMr. Jack C. Yolland, CAIn MemoriamOur condolences go to the family,friends, and colleagues of Bob Cole,FCA, who passed away on April 30,2009.In 1980, Bob established SmytheRatcliffe in Vancouver along with sixfellow CAs. During a distinguishedcareer in public practice, Bob focusedon assurance services, workingclosely with clients and applying hisown personal touch to eachinteraction.Bob served as a member of theCanadian Auditing and AssuranceStandards Board and the Task Forceon Illegal Acts, and chaired the PublicInterest and Integrity Committee’sTask Force on Public Interest Entities.He also served for several years onthe ICABC’s Practice Review &Licensing Committee, and chaired theAccounting Standards Board’sCommittee on Differential Reporting.In addition, he co-wrote a paper forthe Canadian Tax Foundation on theimplications of changing accountingstandards on taxation.Bob has been described as anexceptional and noble representativeof the accounting profession. Hebecame an FCA with the ICABC in2004. He also held CPA and CFPdesignations.In the community, Bob was veryactive in the Canadian Power and SailSquadron serving in severalcapacities, including Commander ofPacific Mainland District. He was alsoa member of Royal Vancouver YachtClub and the Vancouver EstatePlanning Council.34 ica.bc.ca June/Summer ’09

At Your ServicePacific SpiritInvestmentPersonalized Portfolio ManagementTaxable, Registered, Tax-Free,and Pension Fund AccountsDynastyHolloway Schultz &PartnersRussell J. Chew, CA CFP FCSI Ch. P Strategic WealthVice PresidentPrivate Investment AdvicePhone: 604.482.8404TD WaterhouseE-mail: russell.chew@td.comFor a copy of our e-mail newsletter please email:joyce.l.lee@td.com…Providing clients with peace of mind and financialfreedom to pursue their dreams and goalsTD Waterhouse Private Investment Advice is a division of TD Waterhouse Canada Inc. ("TD Waterhouse"), a subsidiary ofThe Toronto-Dominion Bank. (*) Trade-mark of The Toronto-Dominion Bank. TD Waterhouse is a licensed user. TDWaterhouse - Member CIPF.H20-000-424_CS2_FIN.indd 1Practice Limited to U.S. and Cross-border Tax Matters! Cross-Border Tax StructuresKotler, Van Den! Corporations " Partnerships " LLC’s! Individuals " Estates " TrustsSERVINGBrinkOTHER PROFESSIONALS& Co.SINCE 19883/6/09 2:31:33 PMUS and Cross-border Tax Specialist TeamOur practice is limited to US and Cross-border tax mattersworking principally with Canadian business and investmentin the US and US citizens resident in Canada.Tax Strategies• Canadians with US Business Activities and Investments• US Citizens Warren Resident in Canada • Immigration L. Dueckto/from US• Cross-Border Ownership Strategies for:> US and Canadian Real Estate > US Investment and Operations in CanadaTax Return PreparationNOTE: Logo font ratio is 28pt Optima bold for the title• US Federal, and 11pt State Trebuchet and Canadian MS for the Individual slogan. Income Tax Returns• US Federal and State Business Income Tax ReturnsWarren Dueck, CA - Steven Flynn, CAphone: 604.448.0200 fax: 604.448.9294 www.wldtax.comKOTLER van den BRINK & COMPANYU.S. & Cross-Border Tax Consultants! U.S. Federal and State ComplianceMARC W. KOTLER, CAT (604) 531-6207 ! F (604) 538-9713 ! E marc@kvdb.comwww.kvdb.comR.C. Consulting Co.Ltd.BookkeepingExpress36 ica.bc.ca June/Summer ’09

At Your ServiceBlue MoosePromotionsquinellaauto.comSave on the purchase and lease of new and used vehiclesQuinella AutoCall Greg Huynh for your best possible priceWE MAKE YOUR VEHICLE PURCHASES HASSLE-FREEPhone: 604.929.GREG (4734) or 1.800.300.GREG (4734)www.quinellaauto.comDealer: 8262Serving BC Professional Associations since 1973Classifieds*VANCOUVER OFFICE SPACE AVAILABLEPremises are bright, spacious, and located in terrificdowntown location. One office and staff space(if required) is available, including access to photocopier,support staff, meeting room, library, andkitchenette. Per diem work also available if wanted.Call 604-482-5290.SUCCESSION PLANNING OPPORTUNITYWell-established and progressive CA firm inLangley looking to expand and purchase a blockof corporate clients from a retiring practitioner.For more information, please contact:langleycafirm@shaw.ca.PRACTICE SOUTH SUBURBAN VANCOUVERExperienced sole practitioner wishes to work less:outright purchase, succession, office sharing/formula? or early partnership; best suited to solepractitionerbut will consider all replies; flexibilityrepayment terms and your experience; mostlypersonal tax and N to R; good office location andlease. Reply to: Box 09051.SOUTH SURREY/WHITEROCKFirm is looking to acquire or enter into anarrangement to transition a block of accounts ora practice in the Lower Mainland area. This is anideal opportunity for retirement; receive an excellentand lucrative deal. Please reply to: Box 09052.Community Service AwardWinners continued from page 15services, and volunteers with the Knights of Columbus in their endeavoursthrough the Okanagan Commemorative Pioneer Cultural Society(OCPCS). To date, the OCPCS has initiated the building of the Gateby,an intermediate care facility; the Schubert Centre, a seniors centre; andColumbus Court, a low-cost housing complex for seniors. Cecil first workedwith the OCPCS as an auditor, then began volunteering after his retirement.In 1994, his church responded to a call from the VDISS to sponsorimmigrants, and Cecil and his wife Muriel were eager to help with therefugee program. They helped with everything from locating housing tohelping immigrants obtain landed immigrant status and apply for citizenship.They even offered child care, and Muriel taught some of the new arrivalshow to drive.“The key is that Muriel has always supported me,” says Cecil of hisvolunteer efforts. “We make a good partnership.”Today, they continue to help immigrants and seniors in their community.In 2004, Cecil received Vernon’s “Good Citizen of the Year” award. Buthe says acclaim has never interested him, adding: “We’re happy with whatwe do.”Congratulations to our CommunityService Award winners! We commendyou and your fellow volunteers for allthe work that you do.* Please send box # replies to:Institute of Chartered Accountants of BCSuite 500, One Bentall Centre505 Burrard St., Box 22Vancouver, BC V7X 1M4June/Summer ’09 ica.bc.ca 37

Ethical DilemmasName Game CausesTrouble for CABy Chris Utley, CADirector of EthicsFollowing the breakdown of a marriage, it’scommon for issues to arise with regardto the tax deductions claimed for dependants—especiallywhen it comes to determiningwhich parent is entitled to make a claim. Imaginehow challenging these issues can become wheneven the name of the child is under dispute.That’s precisely the kind of troublesome scenarioin which a CA named Marshall* found himself.The situationMarshall runs his own practice. His businessconsists primarily of compilation engagements, buthe also conducts a few non-profit organizationaudits and over 100 personal income tax returns.In 1999, Marshall took on newlyweds DonaldWilwood and Lucinda Reynolds as clients. Heprepared their income tax returns until 2006,when they announced their separation. Hesubsequently retained Donald as a client, butdropped Lucinda out of concerns regardingconflict of interest.Accordingly, Lucinda found a different accountantto prepare her 2007 return. To her surprise,this return was reassessed by the CRA in theamount of $2,385. Linda discovered she was noteligible to make a claim for her daughter, CourtneyReynolds, because her ex-husband had alreadydeducted the amount for an eligible dependanton his return. She also discovered that Donaldhad used the name “Courtney Wilwood” whenmaking his claim. Arguing that this person didnot even exist, Lucinda filed a notice of objectionwith the CRA and wrote a letter of complaint tothe Institute.What happenedIn her letter to the Institute, Lucinda accused Marshall of filing a false return for Donald for the 2007taxation year, stating that he and Donald had conjured up a fictitious child. A PCEC investigation wasauthorized.In clarifying her complaint, Lucinda explained that her daughter’s full, legal name was “CourtneyHazel Wilwood Reynolds.” Further, Lucinda claimed that while she and Donald shared joint custodyof their daughter, hers was the home that had been Courtney’s primary residence since the couple’sseparation.Lucinda also told the PCEC that it had upset her when Marshall released her as a client because shebelieved this would make it easier for her ex to hide his financial information. As it turned out, Donalddid prove truculent during the divorce process, playing games with financial disclosure (for example,he claimed his income was half its actual amount); moreover, he did not pay child support for one year.Lucinda told the PCEC she’d had to get a court order to: a) force Donald to produce financialinformation in a timely fashion, and b) to settle the matter of child custody and support, and that she’dincurred legal fees in the process. Had Marshall not dropped her as a client, she argued, she likely wouldnot have incurred these costs; nor would she have incurred the higher accounting fees that resultedfrom hiring a new accountant who had to start from scratch.In response to these complaints, Marshall argued that confidentiality rules would have prevented himfrom disclosing any of Donald’s information to Lucinda even if he had retained her as a client. Hebelieved Lucinda ought to have known this.In addition, Marshall told the PCEC that when Donald had indicated that he wanted to claim thededuction for Courtney, he’d explained to his client that only one parent could make the claim.According to Marshall, Donald understood, saying that he would speak to his ex-wife. Marshall pointedout that because he reviewed neither the court order nor the divorce documents, he had no idea thatDonald did not ultimately follow through.Marshall also told that PCEC that Donald never told him he’d received an enquiry from the CRAseeking justification for his 2007 deduction claim. As a result, he said, he thought nothing was awrywhen Donald did not claim the deduction in 2008.As to the name of the couple’s child, Marshall told the PCEC he checked the dependant informationon the older tax returns in his computer system and found that “Courtney Wilwood” had been thename used since 2002.Furthermore, Marshall noted that he’d prepared Donald’s 2007 tax return using only the informationprovided by the client. Donald, he said, had signed an agreement stating that, “the information suppliedby him is, to his knowledge, correct and complete, and fully discloses all of his reporting requirementsunder the Income Tax Act.”The outcomePCEC members discussed whether Marshall had failed to exercise due care (Rule 202) and/or whetherhe had associated himself with false information (Rule 205), thereby failing to maintain the reputationof the profession (Rule 201.1). Ultimately, they concluded that there were no grounds to find Marshallin breach of these rules of conduct.The messageMarshall had done a number of things right to protect himself: He’d had Donald sign an engagementletter spelling out the terms of the engagement and Marshall’s responsibilities; he’d obtained Donald’swritten acknowledgement that it was Donald’s responsibility to provide information for income taxpurposes; he’d refused to work for both Lucinda and Donald once the couple had separated; and he’dobserved the rules of client confidentiality.Comments or questions? Contact me at utley@ica.bc.ca.*Please note: This fictionalized account is based loosely on an actual case before the Professional ConductEnquiry Committee (PCEC). Names and circumstances have been changed to preserve anonymity. Thecontents of this article are only intended for the general guidance of readers. The PCEC deals with each caseindividually, based on its specific facts and circumstances.38 ica.bc.ca June/Summer ’09

Blair Mackay Mynett ValuationsFull Page4CIBCLeft to Right:Farida Sukhia, Chris Halsey-Brandt, Ron Parks, Spencer Cotton,Rosanne Terhart, Robert D. Mackay, Gary M. W. Mynett, Hugh G. Livingstone,Cheryl Shearer, Jeff P. Matthews, Kiu Ghanavizchian, Vern Blai r.Blair Mackay Mynett Valuations Inc.is the leading independent business valuation and litigation support practice in BritishColumbia. Our practice focus is on business valuations, mergers and acquisitions,economic loss claims, forensic accounting and other litigation accounting matters.We can be part of your team, providing you with the experience your clients require.Suite 11001177 West Hastings StreetVancouver, BC, V6E 4T5Telephone: 604.687.4544Facsimile: 604.687.4577www.bmmvaluations.comVern Blair: 604.697.5276Rob Mackay: 604.697.5201Gary Mynett: 604.697.5202Ron Parks: 604.697.5242Hugh Livingstone: 604.697.5238Spencer Cotton: 604.697.5212Jeff Matthews: 604.697.5203Cheryl Shearer: 604.697.5293Rosanne Terhart: 604.697.5286Farida Sukhia: 604.697.5271Chris Halsey-Brandt: 604.697.5294Kiu Ghanavizchian: 604.697.5297

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