www.lexisnexis.ca Vol. 26, No. 3 March 2010
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Give your all, hope to ‘come out OK’

Jolene Kendrew was emotionally exhausted, mentally drained and — by her own admission — a tad worried at the end of her recent national Uniform Evaluation (UFE) exam. Months of rigorous study, culminating in three taxing days of tests, had taken their toll.

“I felt absolutely awful,” the Victoria, B.C. resident recalls. “But if you don’t feel awful then you probably missed something.”

Turns out, the 25-year-old had absolutely no need to worry. She not only made the national honour roll, but also received the Governor General’s Gold Medal and Chartered Accountants of Canada cash prize of $5,000 for achieving the highest mark on the 2009 UFE.

The prestigious award came as a bit of a surprise — it was the furthest thing from her mind, in fact.

“You come out of those three days with your head spinning and all you really hope is that you don’t have to do it again. That’s what you’re really hoping.”

Uneasiness lingers over revamped tax

As the July 1 deadline looms for the harmonized sales tax (HST) to take effect in Ontario and British Columbia, many consumers there are upset about what they perceive as a tax grab that will see them pay on an additional list of services previously exempt from the existing eight per cent provincial tax in Ontario, and seven per cent in B.C.

This will be over and above the five per cent federal goods and services tax they are currently paying on many services, such as cleaning, haircuts, taxis, airport limousines, club membership fees — even certain professional services like accounting.

“You have a lot of anger and confusion out there because peoples’ first gut reaction is ‘previously I didn’t have to pay eight per cent; now I do,’” says Satinder Chera, director of provincial affairs in Ontario for the Canadian Federation of Independent Business. “Our members’ concern is that they, as the front-line service providers, are going to take that backlash.”

Mintz sees little support for carbon tax

A recent climate change report concludes that Canada can pull off a controversial double win of achieving both carbon reduction targets and economic growth. But a prominent economist warns of a potential drag effect instead, and says climate concerns are not top of mind with a recession battered public anyway.

The study, Climate Leadership, Economic Prosperity was funded by the TD Bank and co-written by sustainability stalwarts the Pembina Institute and the David Suzuki Foundation and based on economic modeling from M.K. Jaccard and Associates.

Says Pierre Sadik, Ottawa-based manager government affairs for the Suzuki Foundation, “the key element of the report or any sustainability program to reduce greenhouse gas emissions is the realistic pricing of carbon.”

“The pricing of carbon is equal to a major tax hike,” says University of Calgary economist Jack Mintz.

CGA leaders worried about compatibility

One of Canada’s accounting bodies has jumped into the fair value debate, stressing that different standards related to fair value measurements lead to uncertainty and skepticism and, of perhaps greater significance, reduce comparability between financial statements.

Fair Value Accounting: The Road to be Most Travelled, a paper issued by the Certified General Accountants Association of Canada (CGA-Canada) in late January, also notes —  as U.S. Financial Accounting Standards Board (FASB) chair Robert Herz recently stressed — that confusion arises when financial reporting information is extended to purposes for which it was not intended, such as evaluating the capitalization of financial institutions.

According to CGA-Canada president and CEO Anthony Ariganello, the two key accounting standard-setting bodies in the world — the International Accounting Standards Board (IASB) and the FASB — have significantly different standards on the use of fair value for financial instruments.

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