CGA-CANADA RECOMMENDS MOVE TO INTERNATIONAL ACCOUNTING STANDARDS

The Certified General Accountants Society of Canada (CGA-Canada) issues the certified general accountant credential to those completing a specified course of study and a two-year work experience program. Certified general accountants are permitted to do audits in some of the Canadian provinces, following auditing standards as set forth in the Canadian Institute of Chartered Accountants Handbook. The credential demonstrates a certain level of accounting expertise and requires adherence to a code of professional conduct. Those pursuing the CGA credential are very frequently doing so through distance learning. The Society says that it has 60,500 CGAs and students as members. There are other CGA associations in Bermuda, the Caribbean, Hong Kong, and China.

CGA-Canada recently issued a white paper, "The Case for International Accounting Standards in Canada," in which it recommends that Canada cease developing its own accounting standards in favor of adopting those established by the International Accounting Standards Committee (IASC). The first step would be to create an independent Canadian standards setter in the pattern of the United Kingdom and others, which would include representatives from the various constituencies involved in the financial reporting process. Canadian standards are presently established by the Accounting Standards Board (AcSB). Eight of the 13 members of AcSB are appointed by the Canadian Institute of Chartered Accountants (CICA) which, according to CGA-Canada, also provides most of its financial support. This, in the view of CGA-Canada, gives it de facto control over the board.

The white paper discusses the possibility of Canada adopting U.S. accounting standards, but concludes that the better way to go is to adopt IASC standards.

An independent standards setting board would still be necessary for Canada, according to the white paper, to maintain a domestic focus where special occasions or local conditions dictate.

Copies of "The Case for International Accounting Standards in Canada" are available from CGA-Canada in Ottawa, (613) 789-7771, or http://mboudreau@cga-canada.org. *

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