On July 31, 2015 legislation in Alberta came into effect that will govern all professional accountants under one organization and one brand: Chartered Professional Accountants or CPA for short.
Prior to this change, you would have found Chartered Accountants (CA’s), Certified Management Accountants (CMA’s) and Certified General Accountants (CGA’s) all practicing in Alberta. Although this merger had taken place at the national level of our profession some time ago, and evidenced through an extensive marketing campaign, accountants in Alberta were not allowed to use the new CPA designation until the new legislation was enacted.
Although the education and training to obtain one of these designations was quite different from one another, the reality is that once designated, these individuals’ careers take them all in similar and overlapping paths. It was determined to be inefficient to have multiple professional bodies trying to coordinate with each other and manage their members in similar ways.
There is only one Law Society for lawyers, and one College of Physicians and Surgeons for doctors. In both those cases, their members have very diverse training and experiences, yet they are governed by one organization. This model made sense for accountants.
Going forward, all existing accountants are allowed to continue to use their legacy designations (CA, CMA, or CGA) and not bother using the CPA brand. If however they wish to use the CPA, they need to do it in conjunction with their legacy designations for the next 10 years:
The only professional accountants allowed to use the CPA designation on its own will be those students who are trained under and graduate through the CPA training program.
So what does this mean for you? Nothing has really changed. You need to evaluate your accountants abilities based on their training and experience, which is no different than before. You can be assured that professional standards remain high and your best interest should still always be put first.
Thanks to Darren Buma of KWB Chartered Accountants for providing this content.
If you would like more information or have any questions, feel free to contact us at 780.466.6204, or click here to send us an email.
Darren Buma, CPA, CA
Darren has a passion for small business and loves to work with both budding and experienced entrepreneurs. After articling with KPMG and receiving his Chartered Accountant designation, he left to explore the world of small business. What he was expecting to be a short exercise turned into nine years of excitement. During that time he helped to grow and operate a variety of private companies in both commercial real estate development and computer software development.
In 2004 Darren joined KWB so that he could have the best of both worlds, running a small entrepreneurial firm and being in a position to help entrepreneurs like you, grow your business and secure your future. He became a partner at KWB in 2007. His knowledge and advice isn't just academic, Darren lives the roller coaster of entrepreneurship that you ride every day.
Aside from his responsibilities at work, Darren is active in the community. He is a past Chair of the Edmonton Chapter of Financial Executives Canada, sits on the disciplinary tribunal roster for the Institute of Chartered Accountants of Alberta, and is active in minor hockey both as Treasurer for his local hockey association as well as coaching numerous hockey teams over the years.
Darren's Contact Information
Other Posts by Darren
Economic Update on U.S Interest Rates
Are you interested in what is happening with interest rates in the U.S.? Here is a quick and easy to understand summary.
Disaster Recovery 101
Terrible devastation caused by flooding or fires is a potent reminder that one should not delay planning for disasters in advance. Learn how to approach designing your own Disaster Recovery Plan (DRP).
Once in a Blue Moon
I recently read an excellent article about a rare economic occurrence that was happening this past June. To help you find out more about this rare economic occurrence, here is the full article prepared by Wealth Stewards Portfolio Management Inc. (WSPM)
If one of your New Year’s resolutions was to save more money, then the Tax-Free Savings Account (TFSA) may be a good option for you to use. Learn more about the TFSA rules and limits.
RRSP Contribution Room
RRSP’s can be a simple concept but they are also governed by some complex rules. Learn more about how your annual contribution limits are calculated and what to do if you have over contributed.
The Value of Advice
What is the value of advice? When it comes to portfolio management, the overall value of the advice can be measured by comparing the performance of one portfolio over another in a specific amount of time. However, when it comes to wealth management, the overall value of the advice discussed regularly with clients is much more difficult to measure. Read on to see some real life examples of the value of the advice given.
2014 Tax Filing Deadline
We would like to remind our clients that for the majority of Canadians, your personal income tax returns normally need to be filed by April 30.
If you haven’t already brought us the information we need to prepare your return, we would ask you to do so shortly.
CRA has extended the filing and payment
Online Backups - Keeping it simple
Do you know someone who has lost critical and precious information that was stored on their computer?
Are there things on your computer that you don’t want to lose such as financial or business records or personal information like family photos? We live in a digital world and we don’t have hard copies of anything
Guide for setting up your business
The following checklist has been prepared to assist you with the steps required and other points to consider when setting up your business.
This checklist is not all encompassing, but one tool to help identify key issues that need to be addressed and considered.
In addition, we recommend reading Canada Revenue Agency’s (CRA’s) guide "RC4070
FACTA Bank Reporting Requirements
Beginning in July of 2014, Canadian financial institutions will be required to start gathering and reporting information on accounts held by U.S. residents and U.S. citizens, including those who are resident of Canada.
The account information will be collected and reported to the Canada Revenue Agency (CRA), who will then transfer the information
Principal Residence Exemption
If you have sold your home and it is your principal residence then you should be able to use the principal residence exemption to reduce or eliminate any capital gain for income tax purposes on the sale of the property.
CRA states that a principal residence can be a house, cottage, condominium, apartment, trailer, mobile
New Business Guide for setting up your business
If you are starting a new business in Canada or are operating one already, then this article is for you.
Types of business structures
The type of structure you choose has a significant effect on the way you report your income, the type of returns you file each year, and many other matters.
Registered Education Savings Plan (RESP)
An RESP is an education savings account that is registered with the Government of Canada that helps you save for a child’s or grandchild's post-secondary education.
With an RESP, you may be able to receive other saving incentives, such as the:
Canada Learning Bond
Basic and Additional Canada Education Savings Grant
There are two different types
What if you knew the impact of an important decision before you made it? Could you and your business benefit from this “what if” strategic planning?
You would be able to look at the potential outcome and financial impact of business decisions before they are made. At KWB we use software called Profit Driver to
What’s the difference between eligible and non-eligible dividends? What are the implications to you?
Dividends are payments made to shareholders to allocate the earnings of a corporation. There are two types of taxable dividends that a corporation can issue, non-eligible and eligible.
non-eligible dividends are taxed at approximately 10% more than an eligible