www.lexisnexis.ca Vol. 29, No. 7 June 2013
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His balanced approach was not just for numbers

There are jet-setters and trend-setters. And then there is Ron Salole, standard-setter.

Over a career of nearly 40 years, Salole is among the longest-serving standard-setters for accounting and auditing, for both the public and private sector, and for public, private and not-for-profit companies.

And what a ride it has been.

"It’s been an unbelievable experience," says Salole, who on March 31 retired as vice-president of standards at the Canadian Institute of Chartered Accountants (now CPA Canada).

CMA Ontario formally back in merger talks

The Institute of Chartered Accountants of Ontario and Certified Management Accountants of Ontario have finally entered into formal unification talks, several months after CMA Ontario’s board indicated a willingness to do so.

"The ICAO was in the midst of adopting the CPA designation and having the bylaw changes that accompanied that change ratified by its members. We agreed to wait and renew discussions once that process was complete," said CMA Ontario president and chief executive officer Merv Hiller.

ICAO president and chief executive Rod Barr concurred. "We have now adopted the CPA and the bylaw amendments were ratified by our membership, so we have mutually agreed to reopen discussions."

Budget clarifies farm loss rules

This year’s federal budget appears poised to reverse the effects of a landmark 2012 decision by the Supreme Court of Canada that could have resulted in a slew of part-time farmers across the country to claim full farming losses against other income.

In Canada v. Craig, the Supreme Court held that the taxpayer met the chief source of income test for farming, and his farm losses were fully deductible, even though the farm represented a subordinate income source to his law practice. The court took the unusual step of reversing a 1977 ruling, Moldowan v. Canada, which had defined the legal and accounting landscape for nearly three decades.

"The government acted to ensure that the income tax law is consistent with its underlying policy intent," a Department of Finance official told The Bottom Line, adding: "The recent decision in Craig was inconsistent with the policy."

MNP extends Toronto reach with acquisition

MNP is adding four significant letters to the firm: MSCM. Effective June 1, Canada’s seventh largest accounting firm will acquire MSCM, a Toronto-based accounting, tax and advisory firm, which was ranked 26th in The Bottom Line’s Canada’s Accounting Top 30 with $14.7 million revenue in 2012.

The move will bring the number of offices MNP has in the Greater Toronto Area to four and its employee count to 375. "We’ve effectively doubled MNP’s presence in the GTA," said Jeremy Cole, the firm’s regional managing partner for the GTA.

That growth will enable MNP to enhance the services it can offer to clients in Canada’s largest city. At present, MNP has upwards of 50 publicly listed companies in the Toronto area that it conducts audits for, while MSCM has 80.

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