40069088

Vol. 39 / No. 4 • WINTER 2012

Beth McInnis, CGAAssistant Director/Chief Financial Officer, Vancouver Art Gallery. See page 26.

A report on gender equity in the accounting profession

The Glass Ceiling

Guardians of governance: the role CGAs must play

Windows 8Reviewing the Pros and Cons

CGA-BC’s 2012 Award Winners

A PUBLICATION OF THE CERTIFIED GENERAL ACCOUNTANTS ASSOCIATION OF BRITISH COLUMBIA

Matthew’s story: A CGA’s struggle to overcome adversity

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contentsCga-BC’s 2012 award winners Recognizing those members who have made significant contributions to the profession

Diversity in the Accounting ProfessionGundi Jeffrey outlines how female CGAs in

B.C. are leading the shift to a gender-balanced

workforce

accounting for art A profile of Beth McInnis, CGA, the Vancouver Art Gallery’s new Associate Director and CFO

Cgas are Critical governance advocates The spotlight is on organizational governance, and accountants are playing a vital role

sustainability advertising Ad campaign highlights bigger, greener role for CGAs

Matthew’s story For some, the pressures of public practice can become overwhelming

taxmatters Ed Kroft and Soraya Jamal re-view new tax legislation and the treaty between Canada and Hong Kong

techview Alan Salmon takes Windows 8 for a test drive

periscope Leadership consultant Tara Cree describes how language itself can make or break your organization’s collaborative efforts

ethics in focusEvaluating an ethical dilemma

publicpractice Edifier Thinking of starting your own accounting firm? Steve McIntyre-Smith has some strategic advice

keepingTabsCGAs in the news and members on the move

currentAssetsA roundup of all the latest gadgets, tech gear and apps

snapShotsPhotos from CGA-BC events

partingShotOutlook sits down with Tammy Grant, CGA, a Senior Financial Manager with Microsoft

morethanNumbersLetting the data tell the story

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Vol. 39 / No. 4 • WINTER 2012

You can follow CGA-BC on Facebook and on Twitter at www.twitter.com/cgabcCover photo (and related story photos) by Ron Sangha.

06 Planning to Prepare T1s?A special notice to all members.

04 outlook

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editor’smessage

As you know, CGAs and CGA-BC have an incredibly high profile in the business community and at post-secondary events where we build the brand and attract people to either employ or become CGAs. Many CGAs

volunteer to attend these networking opportunities and talk to students and business leaders about why CGA is really the best choice.

It was at one of these recent events, the International Business Conference hosted by commerce undergradu-ate students from UBC, that I heard a great presentation on diversity by the Chief Inclusiveness Officer of one of the large accounting firms. Her presentation gave some eye-opening examples of how many employers are missing out when it comes to hiring minorities and new Canadians. She made the point that immigrant com-munities bring many skills to business as they can be instrumental in open-ing new commercial connections between nations. She also noted that more women need to be recruited for senior positions and to serve on boards.

As you’ll read in this issue of Outlook, women in the accounting profession make up 50 per cent of the membership, but those numbers are not necessarily reflected at senior levels in accounting firms or corpora-

tions. Yet, as veteran accounting writer Gundi Jeffrey discovered while writing our feature article, female CGAs in B.C. say they simply aren’t running up against the problem. She talked to a range of female CGAs who gave their

views on women in the profession. We also profile two female CGAs

working in two leading organizations: Beth McInnis, CGA, the CFO at the Vancouver Art Gallery, and Tammy Grant, CGA, a financial analyst at Mi-crosoft in Redmond, Washington.

And looking at the demograph-ics of current CGA students, there is clearly a shift under way. Currently, 64 per cent of CGA students are female. In many respects, CGA is the most egalitarian of the professional pro-grams as it provides flexibility and has its roots in an open access philosophy.

You’ll see that our Ethics in Focus column addresses the ugly side of these issues with its focus on a dilemma about a client who seems to condone sexist and racist views. Professor McDonald dismisses the ‘boys will be boys’ view and exposes the risks that the company may face morally, ethically and legally.

Once again, we think we have a diverse and interesting issue. If you would like to weigh in on the discussion, drop us a line or tweet your view.

edward Downing is Cga-BC’s Director of Communicationsedowning@cga-bc.org

outlook

2012 executive committeeChair: Cindy Choi, FCGAPast-Chair/Treasurer: Bruce Hurst, FCGAFirst Vice-Chair: Candace Nancke, FCGASecond Vice-Chair: David Sale, FCGA Chief Executive Officer and Secretary: Gordon Ruth, FCGA

executive staffChief Executive Officer: Gordon Ruth, FCGA Director, Administration, HR & IT: Dan Cheetham, CGA Director of Marketing & Communications: Edward Downing, MA (Journalism)Director of Education & Student Services: W. D. (Bill) Johnson, FCIS, PAdm, FCGADirector, Executive and Corporate Affairs: Juliana Laing, BADirector of Member Services: Pamela Skinner, BSc, CFP, CGA

outlook staffManaging Editor: Edward Downing (604) 730-6208Communications Manager: Patrick Schryburt (604) 730-6238Communications Officer: David Ferman (604) 730-6206Production Co-ordinator: Trevor Hargreaves (604) 730-6226Advertising Co-ordinator: Pardeep Clair (604) 730-6228Graphic Design: Core Associates Communication Design Inc.Regular Contributors: Ed Kroft, QC, LLB, LLM, CGA (Hon.); Dr. Michael McDonald, CGA (Hon.); Alan Salmon

advertisingFor advertising rates, contact Pardeep Clair at (604) 730-6228 or visit our website at www.cga-bc.org. Outlook is the premier way to contact B.C.’s CGAs.Advertising in Outlook magazine does not indicate an endorsement of any business, organization, service or product by CGA-BC.

Outlook is published four times a year by the Certified General Accountants Association of British Columbia and is sent to nearly 15,000 CGA members and CGA students. Opinions expressed are not necessarily endorsed by CGA-BC. Copyright CGA-BC 2012.

articles, enquiries and lettersArticles, enquiries and letters should be sent to Outlook: CGA-BC, 300-1867 West Broadway, Vancouver, BC, V6J 5L4(604) 732-1211 or (800) 565-1211 ISSN 1488-2337 Outlook - Certified General Accountants Association of British Columbia

CGA on the webMembers and students, you can find all of your most important CGA-BC services online at www.cga-bc.org.

Agreement no. 40069088Return undeliverable Canadian addresses to:CGA-BC, 300-1867 West Broadway, Vancouver, BC, V6J 5L4Printed in Canada

Breaking through the glass ceiling

New status for retired Members

This is wonderful news indeed. I am very proud of our Association. From humble beginnings we are now the leading account-ing association in the province. I first became a student in 1955, studying by correspondence and submitting assignments to the University of British Columbia. I graduated in 1960, member number 401. Since then the development and growth of the Association has been remark-able to say the least. The new guidelines for retired members are excellent. I feel privileged. I will continue to follow the work

of the Association as we continue to grow and develop.

peter p. podovinikoff, Cgasurrey, B.C.

Cga-BC’s 2012 Report to the Public: Strengthening Accountability, Building Confidence Effective September 5, 2012, the Honourable John Yap was appointed the Minister of Advanced Education, Innovation and Technology and Minister Responsible for Multiculturalism, with responsibility for administra-tion of the Accountants (Certified General) Act.

On behalf of the Honour-able John Yap, I would like to express appreciation for the work undertaken by the Certified General Accountants Association of British Columbia (CGA-BC) to prepare this report. The report provides a good overview of how CGA-BC has taken concrete steps to improve upon its role as a self-regulating professional association. As the mandate of a professional association is based on protection of the public interest, it is especially appropri-ate to direct a report such as this to the public at large. I would encourage CGA-BC to continue

reporting information of this nature annually.

I wish to acknowledge the efforts which you and your staff have made in the preparation of this document and thank you for taking the time to share the report with the Minister.

valarie Bakowskiexecutive DirectorMinistry of advanced education, innovation and technology

[Editor’s Note: CGA-BC’s 2012 Report to the Public: Strength-ening Accountability, Building Confidence is available on our website at www.cga-bc.org]

outlook 05

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outlook

have an opinion? email your “letter” to edowning@cga-bc.org

06 outlook

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NotiCe to all MeMBers

Planning to Prepare T1s?

If you are a CGA preparing individual T1 tax returns, with or without schedules, you are required to register this limited practice with the Association. See the Register in Public Practice section of CGA-BC’s website for details on regis-tration requirements.

PreParation of t1s on a Voluntary BasisOnly two situations allow you to prepare T1s on a voluntary basis without registering in public practice:

1. Family and Close Friends For the purposes of volunteer tax return preparation (which means no fee is being charged), CGA members and students are allowed to prepare personal tax returns for family members or close friends as they are not considered to be “the public.” To provide

this service, the CGA member or student must know the taxpayer well, have a sense of trust in their relationship and have a detailed understanding of their tax situation. If any of the above conditions are not met, a member must either register in public prac-tice on a Limited – T1-Only basis in order to provide personal tax services or decline the T1 preparation request. A student must decline the T1 preparation request if any of the above conditions are not met, as stu-dents are not permitted to engage in public practice (per Rule R523 of the Code).

2. Low-Income Taxpayers When low-income taxpayers are provided with free personal tax preparation services, CGA members and students may provide these services contingent on the following:•these services must be provided through

a Not-For-Profit Organization (NPO) and not independently; and

•the NPO provides CRA training (or equivalent) through the CRA Community Volunteer Income Tax Program (CVITP) to its volunteers; and

•the NPO provides errors and omissions insurance for its volunteers; and

•if the NPO does not use the CVITP, the NPO must provide written taxpayer dis-closure acknowledging that a volunteer has prepared the tax return.

As CGA members and students must be competent with respect to any services they provide (per Rule R301 of the Code), members and students providing volunteer tax prepara-tion services must ensure that the training they receive fully equips them to perform their volunteer duties.

taxmatters

ed Kroft, QC, llB, llM, Cga (hon.) and soraya Jamal, llB, llM

As you begin to prepare for the holiday season, you may have no-

ticed that the Department of Finance has added some items to your holiday read-ing list. In the past month, we have seen the release of two tax-related Notice of Ways and Means Motions and the long-awaited tax

treaty between Canada and Hong Kong.

Since you may not have a chance to wade through the large volume of newly released materials during this busy time, we thought it would be fitting to summa-rize the draft legislation and the new treaty, highlighting some of the more interest-ing matters. The following will be discussed at upcom-ing tax update seminars this year.

INComE TAx LEGISLA-TIoN CoNTAINEd IN BILL C-48On October 24, 2012, the Department of Finance caused quite a stir in the tax community with its release of a nearly 1,000-page omnibus Notice of Ways and Means Motion, which has now been introduced as Bill C-48. Bill C-48, which rivals the size of the Income Tax Act (Canada) (ITA), includes proposals to implement a number of income tax and sales tax amendments, the majority of which have

already been released for public consultation. Bill C-48 contains a significant back-log of outstanding measures since the last comprehen-sive package of technical income tax legislation was passed by Parliament in 2001. It is anticipated that Bill C-48 will be enacted by the end of this year.

Bill C-48 is broken down

into six parts and contains 416 sections. Parts 1, 2 and 3 contain amendments pertaining to non-residents and foreign affiliates. Part 4 includes amendments relating to bijuralism. The heart of Bill C-48 is found in Part 5, which is the omnibus section that contains various technical amendments throughout the ITA. The last part of Bill C-48, Part 6, includes technical and housekeeping amend-ments to the Excise Tax Act.

As a general overview, Bill C-48 includes the fol-lowing proposals:

• Various technical in-come tax amendments released on July 16, 2010, November 5, 2010 and October 31, 2011;

• Technical income tax amendments relating to the taxation of Canadian multinational corpora-tions with foreign affili-ates, in accordance with proposals released on December 18, 2009 and August 19, 2011;

• Income tax measures pro-

posed in Budget 2010 and released for comment on May 7, 2010 and August 27, 2010 relating to: - the taxation of non-

resident trusts and their beneficiaries and of Canadian taxpayers who hold interests in offshore investment fund property;

- specified leasing property; - conversions of specified

investment flow-through trusts and partnerships into corporations;

- foreign tax credit genera-tors; and

- a regime for information reporting of tax avoid-ance transactions;

• Previously announced income tax amendments relating to:- the Apprenticeship Com-

pletion Grant announced on January 27, 2009;

- the Atlantic investment tax credit, released on May 3, 2010;

- Employment Insurance for the self-employed, released on August 27, 2010;

- real estate investment trusts, released on De-cember 16, 2010; and

- the deductibility of contingent amounts, withholding tax ap-plicable to certain interest payments made to non-residents, and certain life insurance corporation reserves, released on March 16, 2011;

• Other technical income tax measures relating to: - labour-sponsored venture

capital corporations; and - the allocation, among

provinces and territories, of the taxable income of airline corporations; and

• Technical amendments to the Excise Tax Act, which include relieving the Goods and Services Tax and the Harmonized Sales Tax on the administrative service of collecting and distributing the levy on blank media imposed under the Copyright Act announced on October 31, 2011.

Some of the technical amendments in Bill C-48 pertain to: (a) acquisition of control; (b) charities and charitable donations; (c) deemed dividend rules; (d) dispositions subject to warranty; (e) eligible capital property rules; (f ) full-rate taxable income; (g) income trust conversion and loss trading; (h) mortgage investment corporations; (i) mutual fund corporations; (j) mutual fund qualifying exchanges; (k) replacement property rules; (l) reporting of accrued income based on production/use; (m) resources rules; (n) restric-tive covenants payments; (o) securities lending arrange-ments; (p) shareholder ben-efits rules; (q) shares owned by short-term residents; and (r) taxable preferred shares and Part VI.1 tax.

New Legislative and Treaty developments

a review of recent noteworthy developments in income tax legislation and treaties

08 outlook

ed Kroft, QC, llB, llM, Cga (hon.), is a partner with Blake, Cassels & graydon llp. he is a member of the firm’s tax group and leader of its tax Controversy & litiga-tion group.

soraya Jamal, llB, llM, is an associate with Blake, Cassels & graydon llp, where she provides tax advice on domestic and international corpo-rate taxation matters.

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For the most part, Bill C-48 has reintroduced previ-ously announced proposals in substantially the same form. However, there are some areas where Bill C-48 has introduced new mea-sures or enhancements to previously announced mat-ters. The following summa-rizes some of the interesting changes introduced by Bill C-48 and is not intended to be exhaustive.

Restrictive Covenants Bill C-48 reintroduces the income inclusion rules pertaining to payments for restrictive covenants, which typically arise in the context of an asset or share sale in the form of a non-compete undertaking given by a vendor. When a payment for a restrictive covenant is received or receivable by a vendor, the vendor will gen-erally be required to include such amount in its income, subject to certain excep-tions. Bill C-48 introduces a new relieving measure. The new measure essen-tially prevents consideration from being allocated to a restrictive covenant where the disposition of property to which the restrictive cov-enant relates was made on a tax-deferred basis under section 85 or 97 of the ITA.

Contingent Liabilities In March 2011, the Depart-ment of Finance proposed section 143.4 of the ITA as a response to the Federal Court of Appeal’s decision in Collins. Bill C-48 reintroduces section 143.4, which gener-ally clarifies that the amount of a taxpayer’s unpaid, but otherwise deductible, ex-penditure does not include an amount in respect of which the taxpayer (or a

non-arm’s-length person) has a right to reduce or eliminate. This treatment will also apply where the right is contingent upon another event, if it is reasonable to conclude that the right will become exercisable. To avoid a double-counting issue, Bill C-48 introduces a new exception that excludes limited recourse amounts that have already reduced an expenditure from the reduction on account of contingent amounts. More significant than the new changes to proposed sec-tion 143.4 is the Department of Finance’s resistance to change the application of the regime. It is troubling that Bill C-48 does not ad-dress the concern raised by the tax community that the proposed section 143.4 ap-plies very broadly in scope and potentially captures legitimate transactions that do not give rise to the same policy concerns as in the Collins decision.

Reporting for Tax Avoidance Transactions As you may remember, in 2010 the Department of Finance introduced a report-ing regime that proposed to target aggressive avoidance transactions. Under the regime, a transaction is a “reportable transaction” if it constitutes an avoidance transaction (as defined under the ITA) and bears at least two of the follow-ing three hallmarks: (i) a promoter or tax advisor in respect of the transaction is entitled to fees that are contingent upon the tax benefit from the transaction; (ii) a promoter or tax advisor in respect of the transac-tion requires “confidential protection” with respect to

the transaction; and (iii) the taxpayer or the person who enters into the transaction for the benefit of the tax-payer obtains “contractual protection” in respect of the transaction. A salient change to this regime introduced under Bill C-48 is to exempt from the regime information which is subject to solicitor-client privilege.

TAx mEASuRES CoNTAINEd IN BILL C-45On October 15, 2012, the Department of Finance released a Notice of Ways and Means Motion, which received its first reading in the House of Commons as Bill C-45 on October 18, 2012. While Bill C-45 is much more modest in size as compared to Bill C-48, it contains a number of important tax measures and, when enacted, will be the second Act to implement tax measures introduced in the 2012 Federal Budget.

The tax proposals contained in Bill C-45 generally do not come as a surprise and, for the most part, reflect the measures announced in the 2012 Fed-eral Budget. However, we wanted to highlight some changes to the upstream shareholder loan rules contained in Bill C-45 since these measures were not introduced as part of the 2012 Federal Budget.

Under the existing share-holder loan rules, a corpora-tion can make an upstream shareholder loan without adverse tax consequences if what is commonly referred to as the “two-year test” is satisfied (i.e., the loan is repaid within one year after the end of the tax year in which the loan is made, pro-

Bill C-48 contains

a significant

backlog of

outstanding

measures

since the last

comprehensive

package of

technical income

tax legislation

was passed by

Parliament in

2001.

10 outlook

vided that the repayment is not “part of a series of loans or other transactions and repayments”).

Bill C-45 contains a new exception to the share-holder loan regime such that certain upstream loans will not result in tax even if the two-year test is not satisfied. The new exception will apply where a foreign-controlled corporation that is resident in Canada (CRIC) makes a loan after March 28, 2012 to its parent or another non-resident corporation within the group. Such an upstream loan should not result in adverse tax conse-quences if the CRIC and the parent jointly elect to treat all loans and indebtedness owing by the CRIC as perti-nent loans or indebtedness (PLOI). However, a PLOI elec-tion may result in adverse tax consequences for the CRIC, which will be deemed to earn interest income on the PLOI equal to, at the very least, the prescribed rate of interest.

CANAdA-HoNG KoNG TAx AGREEmENTOn November 11, 2012, Can-ada and Hong Kong signed an agreement (Agreement) to avoid double taxation and prevent fiscal evasion with respect to taxes on income. The Agreement is intended to reduce tax bar-riers between Canada and Hong Kong, and increase trade and investment flows while reducing incidents of double taxation and tax evasion. Some of the salient features of the Agreement are described below.

Reduced Withholding Tax RatesThe Agreement limits the

rate of withholding tax to 5 per cent for certain dividends paid between companies, 15 per cent for dividends paid in all other cases and 10 per cent for payments of interest and royalties. The Agreement also exempts from withholding tax certain payments of in-terest. The reduction of with-holding tax on dividends, interest and royalties is sub-ject to a general anti-abuse provision included in each of the respective articles. This provision stipulates gener-ally that if one of the main purposes of the structure is to obtain the benefits of the Agreement, such benefits will be denied.

Elimination of Capital Gains Tax in Some CasesCapital gains realized upon the sale of Canadian shares may generally only be taxed in the country where the alienator is resident. How-ever, gains from the sale of Canadian shares, regardless of the percentage owned, deriving more than 50 per cent of their value directly or indirectly from immovable property situated in Canada may still be taxed in Canada.

Competent Authority ProceduresThe Agreement also contains procedures to possibly elimi-nate double taxation. These mutual agreement proce-dures allow parties to seek the assistance of the compe-tent authority in Hong Kong or Canada. The competent authorities will endeavour to resolve any difficulties or doubts arising as to the interpretation or application of the Agreement, failing which the parties may resort to a binding arbitration. The competent authorities also

have the power to consult together for the elimina-tion of double taxation in cases not provided for in the Agreement.

Exchange of InformationConsistent with the policy announced in the 2007 Fed-eral Budget, the Agreement includes provisions reflect-ing the standard developed by the Organisation for Economic Co-operation and Development for the exchange of tax information. The information exchange provisions in the Agreement are drafted broadly to allow the competent authorities of Canada and Hong Kong to exchange information that is “foreseeably relevant” for carrying out the provisions in the Agreement or admin-istering any domestic laws that apply to taxes that are otherwise covered under the Agreement. Notably, in a protocol signed at the same time as the Agreement, Canada and Hong Kong agreed that these provisions do not require the parties to exchange information on an automatic or a spontaneous basis, and that information exchanged between the states must not be disclosed to any third jurisdiction for any purpose.

It appears that the Agree-ment will only be applicable on a going-forward basis to those taxation years ending after the Agreement enters into force because the Agreement does not seem to contain a “look-back” provi-sion to gather information for earlier years.

ReassessmentsSubject to fraud or wilful neglect, assessments under the Agreement in respect of business profits and income

from immovable property can only be made within seven years from the end of the taxable period to which the income concerned was attributed. This provision may shorten the limitation period in the ITA in some cases.

Entry into ForceThe Agreement will enter into force once Canada and Hong Kong have noti-fied each other that the procedures required by their laws for the bringing into force of the Agreement have been completed. In Canada, the Agreement will have effect: (i) in respect of tax withheld at source on amounts paid or credited to non-residents, on or after the first day of January in the calendar year following that in which the Agree-ment enters into force; and (ii) in respect of other taxes, for taxation years begin-ning on or after the first day of January in the calendar year following that in which the Agreement enters into force.

CoNCLuSIoNWe have had a busy fall with the release of propos-als addressing years of legislative backlog as well as new developments in the international tax realm. While we wait for the new treaty to be ratified and the legislative proposals to be enacted, one thing is clear – tax laws are constantly changing. We look forward to seeing what exciting and new legislative and judicial developments happen in the upcoming year. We wish you and your family a happy holiday season and all the very best for 2013.

outlook 11

W indows 8 is the most signifi-cant update to Windows since

Windows 95 was released 17 years ago. Microsoft has com-pletely changed the initial experience – the process by which you start working with your computer when you turn it on. The company has replaced the “desktop” with a series of large tiles that you swipe from side to side (with a mouse, or a finger if you’re using a tablet or touchscreen computer). “Modern UI,”

as it is called, has big tiles without the “close,” “minimize” or “maximize” buttons from previous Windows versions. The old Windows 7 desktop is still there, but it is hidden one layer down, accessible after clicking on or touching a tile called “Desktop.”

All your applications show up as tiles on the Windows

8 Start screen. You can also search for an application by typing its name when you are in the Start screen. However, not all desktop applications appear on the Start screen by default. Some accessory apps, such as Paint, live in the Apps screen. You can force these programs to appear in the Start screen by right-clicking to select them and then click-ing Pin to Start at the bottom of the screen. Getting to the Apps screen is easy: right-click a blank area in the Start screen and then click the All apps

icon at the lower right.However, this is a change

from previous versions of Windows. In the past, right-clicking an object on the desktop always brought up a context menu, giving you a choice of actions to take. In the Windows 8 interface, right-clicking now produces a bar at the bottom of the

screen containing assorted context-sensitive items. This arrangement makes sense with a touch-based display such as a tablet. (Context-clicking still works the same way when you are using the Windows desktop.)

Live tiles are a key feature of the Windows 8 Start screen. While normal (non-live) tiles measure 150 by 150 pixels, most live tiles are doublewide (310 by 150 pixels) and display dynamic information. The Picture tile, for instance, shows your pictures and Facebook posts from your feeds, assum-ing that you have set them up to do so.

It is easy to navigate the Start screen. If you are us-ing a mouse with a wheel, moving the wheel scrolls left and right. If you are using a touchpad, swiping left and right (with one finger) scrolls the tile list. You can drag indi-vidual tiles to any location.

Smooth Installation ProcessMicrosoft has made it easy to install Windows 8. As-suming you have a product key – now a requirement to install Windows 8, instead of an after-the-fact input – the installation process initially looks identical to that of Windows 7. Once you have set the installer to copy files to your hard drive, a simple, black installation screen lets you know what is happening during the installation. You only have to deal with five prompts, including one for picking your PC name and your favourite colour and three that verify the settings for the Windows Live ID you want to link to your instal-lation. This is definitely the fastest, most annoyance-free OS installation produced by Microsoft.

techviewalan salmon

Windows 8 – Learning to Love It

users will enjoy better performance but must also get used to the new interface

This is

definitely the

fastest, most

annoyance-free

oS installation

produced by

microsoft.

12 outlook

Easy upgradeUpgrading from Windows 7 to Windows 8 is seamless. Your settings, personal files and applications are preserved. If you upgrade from Vista, your settings and personal files remain intact. With Windows XP only your personal files are maintained and you will have to reinstall your applications.

Working with the New InterfaceTo launch an application, you click on its tile in the Start screen. If you need file management and navigation features, you have to access the desktop. After you start your computer, pressing the Windows key sends you to the desktop. Unfortunately, the Windows key is not consistent in this behaviour: if you are in an app, pressing the Windows key always returns you to the Start screen. Press it again, and you are in the most recently used Windows 8 app. To move to the desktop consistently, you need to press Windows-D. Another option is to move the pointer to the lower left of the screen and click there. However, this method only works if you have not recently used other apps. The desktop provides you with familiar shortcuts and pinned icons.

Except for the missing Start menu, the desktop behaves the same in Windows 8 as it did in Windows 7. You access commonly used features such as the Control Panel, the Run command and File Explorer by moving your mouse to the lower-left corner and right-clicking, ignoring the Start-screen peek that pops up. You can also bring it up by pressing Windows-X. Another option is to use the search function, entering “Control Panel” or “Run” as the search terms.

Navigating the new desk-top is also similar to working in the old version, but the absence of a full Start menu may confuse you at first. Us-ing hotkeys, and customizing the desktop and Start screen, will help you become more comfortable very quickly. Once you get used to navigat-ing the system, it is as easy as the old one, just different.

The Touch Screen ExperienceYour current PC probably does not have a touchscreen. You may have a notebook with a touchpad, but most existing touchpads cannot take full advantage of the touch capabilities that come with Windows 8. However, your next PC may have full touch support. Manufacturers are starting to ship desktop displays with touch capability; the first touch-enabled dis-plays have built-in capacitive touch sensors, which work via a USB connection to the PC. Future touch displays will communicate through a wireless connection such as Bluetooth.

Many mobile PCs, such as traditional notebooks and convertible units that can transform into tablets, either by concealing the keyboard or by detaching the display, will be touch-enabled.

Windows 8 is a different experience with a touch-en-abled display. With any touch display, you tap app tiles to launch software, swipe the display to access other fea-tures and use multi-touch gestures, such as pinch-to-zoom to enlarge what is on the screen. If you swipe your finger in from the left just a little, you

get thumbnails of currently running or suspended appli-cations. However, slide it a bit too far and one of those apps takes over the screen.

Windows 8 on TabletsOne of the big reasons for the design of Windows 8’s new Start screen is the world of tablets.

Microsoft’s new Surface tablet comes in Pro and RT models. The first type is a convertible notebook running Windows 8 and is just a thinly disguised laptop that empha-sizes touch interaction over keyboard input.

The Windows RT version runs only on tablets using ARM processors and has a restricted version of Windows 8. Although these tablets will include the traditional desk-top, you only have limited access to the desktop to run preinstalled applications such as Office, and you are not able to install desktop programs. RT tablets will focus on the Windows 8 apps that you will buy through the Microsoft Store.

Tablets with Intel-compati-ble processors can run the full

once you get used

to navigating the

system, it is as

easy as the old

one, just different.

PC version of Windows 8 and offer complete access to the desktop. They will probably cost more than RT tablets, as they will need broader expansion options, bigger batteries and more memory. Intel-based tablets will almost certainly be heavier and bulkier. The Microsoft Surface Pro, which has an Intel Core i5 CPU, weighs about a half-pound more than the Surface RT.

Personalizing WindowsYou can customize Windows 8, with some exceptions. Since the Start screen consists of groups of tiles, moving your favourite or most commonly used tiles to the left side of the screen is easy. You can also specify the tile size (nor-mal or doublewide) and turn off live-tile updates if you find them distracting. You can also group tiles by program type, such as business applications, games and so on.

One configuration option that Microsoft has buried in the past is the start-up con-figuration. In older versions of Windows, customizing which applications launched on

start-up required entering the Msconfig system-configura-tion utility. In Windows 8, you can select which applications launch at boot-up with the new Startup tab in the Task Manager, which you can launch in the simplified Start menu.

Storage and File SystemWindows 8 includes a new file system called ReFS (Resilient File System). It is compatible with most NTFS file features, and it adds features to im-prove data integrity. Features left out include BitLocker, compression and 8.3-format short filenames. What ReFS provides is improved data ver-ification and auto-correction.

ReFS continually scans the file system (including rarely used older files to ensure they have not become corrupted), repairs bad disk clusters and moves data as required.

Reinstalling Windows is now much easier; in fact, Windows 8 provides multiple levels of system repair. The Reset option reinstalls Windows from scratch. This option will get the machine back to a factory-fresh Windows install, without the need for a new Windows key or the Windows setup disk.

An alternative Refresh option resets important Windows settings but keeps your personal files and in-stalled Windows 8 apps. This

does not keep your desktop applications, so you will need to first uninstall or de-register software that will need rein-stallation and activation after the reinstall is completed.

Bottom LineOverall, I am happy with Win-dows 8. Battery life on even an older laptop is a lot better, boot time is significantly faster and its memory footprint is smaller, which means you get better performance. It runs most Windows 7 software as well as its own native apps and uses Windows 7 drivers.

Yes, there is a learning curve, but in my opinion, it is certainly worth the effort. I like it.

outlook 13

alan salmon is a leading authority on accounting technology. he is the Ceo of K2 enterprises Canada, a North american consult-ing firm providing technol-ogy training to accountants. in addition to his work with consultants, accountants and software companies in both Canada and the u.s., he is the chairperson of the accounting technology seminar series. he can be reached by email at alan@k2e.ca or by visiting www.k2e.ca.

14 outlook

my first real experi-ence with col-laboration outside of sports was in

university. I was assigned to a class group of five students to work on a significant project with a tight deadline. I re-member the professor telling us that in addition to learning about our project topic, we would get to experience teamwork as though we were in a real office setting.

She couldn’t have been more right. One person was always running into meet-

ings late, leaving early and never volunteering for any work; one student smiled and nodded at every idea but never made a meaning-ful contribution; one person disagreed with everything and everybody; and, finally, there were the two of us who did all the work and had to share the credit. This, sadly, was the first of a long line of frustrating experiences with collaboration. And yet, here I am espousing its virtues.

At an intellectual level we all understand that col-laboration is essential for our own success and that of the organizations in which we work. We know that collabo-ration allows us to achieve greater results than we can achieve alone – this is why we choose to be part of a firm or in a partnership. And yet, as you read the title of this article, you likely sighed or frowned or asked yourself: “Collaboration? Accounting! What?”

Our experience of collabo-ration is often far from positive. It frequently just means more meetings, more people in a room and more people ‘sign-ing off’ on something. Rarely does collaboration live up to its potential of being more than the sum of the parts.

This negative experience is not unique to accounting firms. In almost every profes-sional services firm I have worked in or had as a client, it has been an issue. It is what makes it hard to truly leverage multiple practices for business

development purposes, to get different office locations to work together, or to stop re-creating the wheel and leverage the experience and knowledge of people across the firm. It is what causes us to run the other way when we hear the word commit-tee or taskforce.

So how can we change things? How can we turn collaboration from drudgery and unrealized potential into something spectacular? One of the things I have seen make a difference is the use of language – the Language of Collaboration.

Let’s move this from the realm of ‘rainbows and fairy dust’ (as a lawyer once said to me when I spoke about col-laboration in a legal firm) to something more concrete. Re-searchers at Stanford Univer-sity conducted a study based on a prisoner’s dilemma game involving a business situa-tion where players choose to compete or cooperate with

each other. The researchers went beyond the basics and looked at the impact of language on behaviour, giving the identical game two different names: “The Wall Street Game” and “The Community Game.”

Other than the name, all the details of the games were the same. The results, however, were dramatically different. Nearly twice as many players participat-ing in the “The Wall Street Game” chose to compete than in the “Community Game.” And in the “Com-munity Game,” nearly twice as many players cooperated. This situation has been du-plicated over and over with different game scenarios and different players, and the results are always es-sentially the same.

What does this tell us? That language shapes behaviour! Leaders who talk competition will get competition. Leaders who talk collaboration will get collaboration.

Here are three strate-gies to keep in mind as you apply this knowledge to a professional services organization.

WATCH YouR LANGuAGEMany words get in the way of us truly collaborat-ing with one another. And we use them every day. For many of us in the professional services world, these words have become a standard part of our organizational culture. You know them: MY client, MY account, MY sale, US versus THEM, that’s not the way we do it here, that won’t work … the list goes on. Be conscious of the word choices you make as they

periscopetara Cree, ph.D.

what you say and how you say it can help you achieve better results

The Language of Collaboration

tara Cree is an inde-pendent consultant who partners with organiza-tions to address strategic leadership issues and build leadership bench strength. she draws on her ph.D. in organization-al psychology and over 15 years of experience as a leadership consultant. www.creeleadership.com

Leaders who talk

competition will

get competition.

Leaders who talk

collaboration will

get collaboration.

have more impact than you imagine.

BE AWARE oF YouR BodY LANGuAGEThis is just as important as the words you choose. To ensure that your words of ‘let’s col-laborate’ are seen as genuine, remember to:• Smile – make sure you

come across as approach-able and cooperative

• Look like you are listen-ing – if you want people to speak up, avoid checking

your text messages or your watch

• Use gestures – let people know you are interested or curious by nodding your head or tilting it to one side

uSE THE WoRd ‘CoLLABoRATIoN’ oNLY WHEN You mEAN ITIt is great to collaborate, but it isn’t necessary all of the time. Make sure that when you say you want to collaborate, you really do. In

particular, don’t confuse col-laboration with delegation. If people feel that you are trying to offload work under the guise of collaboration, they won’t be too open to collaborate in the future.

Of course, building orga-nizational collaboration takes more than just the language of collaboration. But don’t underestimate the impact of these seemingly minor behaviours. They can either support or sabotage your collaborative efforts.

make sure that

when you say you

want to collaborate,

you really do.

outlook 15

16 outlook

ethics in focusBy Michael McDonald, phD, Cga (hon.)

tHe DileMMa: lydia Ko, CGa, is employed by Maxim accounting services. lydia has just returned from an on-site meeting with a new client, tom rex, the Ceo of Dino-saur Construction, ltd.

she tells her best friend and colleague francesca Paulo that, “it was a very disturbing and upsetting experience. i don’t want to go back to that site again.” lydia then spoke of sexist and racist remarks from the Dinosaur Construction workers on the site, which tom summarily dismissed with the comment, “boys will be boys.”

francesca suggests that lydia voice her concerns to their boss, Henry Morgan, who is also a CGa. lyd-ia says that she is worried about Henry’s reaction. Henry asked her to work with Dinosaur because she has an ideal skill set for their business issues. He also mentioned that this account is so substantial for Maxim that, “we can’t afford to lose it.”

What should lydia do? if lydia does voice her con-cerns to her boss Henry, how should Henry respond?

HuMan riGHts This case seems to raise human rights issues. Under the BC Human Rights Code, Lydia is entitled to non-discriminatory treatment in the workplace, including freedom from discrimination on the basis of sex and race (whether it is intentional or not). Because her work takes her to Dinosaur Construction, the treatment Lydia receives would fall under the Human Rights Code. However, it is impor-tant for Lydia to bring these matters to her boss, Henry Morgan. If Henry does not know that Lydia is under this

kind of pressure at Dinosaur Construc-tion, he is not in a position to rectify the situation. Once Henry is aware of Lydia’s situation, he would have both ethical and legal obligations as Lydia’s employer to address the situation. This would mean that Henry has to bring this matter to the attention of the client and insist that his staff members, including Lydia, not be subject to such verbal abuse when they are on the client’s premises. Because a legal obligation is involved, there is also a professional obligation under CEPROC (R102 Unlawful Activity) for Henry to ad-dress the situation.

Someone might object that Lydia is making a mountain out of a molehill, that maybe the remarks were innocently intended and part of normal workplace banter (“boys will be boys”). This was the sort of objection I often heard in the 1970s from students in my ethics courses. In my view, this kind of response is both dated and dangerous. It is dated in that a lot has happened over the past 40 years to alert us to the real effects of so-called “innocent banter” on those targeted. I also see it as dangerous in that such racist and sexist language is often used to put others in their place and even to drive them from the workplace. Moreover, the workers at Dinosaur aren’t “boys” – they

are adult human beings who are respon-sible for their behaviour. The situation at Dinosaur ought to be a matter of serious concern to Dinosaur’s management, including the CEO Tom Rex, opening that company to serious human rights complaints.

aDDitional Professional anD Business issuesAs noted above, once Henry learns about Lydia’s treatment at Dinosaur, he needs to take decisive action to address this serious human rights situation. There are further professional and business issues regarding service to this particular client that Henry should consider.

First, there is an important client fo-cused issue. Henry thought Lydia had the right skill set to deal with the Dinosaur account. If the engagement with the new client requires having a Maxim repre-sentative visit the worksite on a regular basis, then Henry either has to prevail on Lydia to visit the site again or send someone else from Maxim in her place. If Lydia visits the site again and is subject to more taunts, she is going to be under stress and is unlikely to do as good a job as she could. If another employee is sent to the site, it is unlikely that the client, Dinosaur Construction, will get optimal

ethics in focus

outlook 17

service. In either case, the client loses. This is a point that Henry may also want to raise with Tom Rex, Dinosaur’s CEO. Additionally, Henry may want to add that racist and sexist behaviour at Dinosaur will likely render that company vulnerable to human rights issues and complaints.

Second, under Rule 526 of CEPROC (Re-sponsibility to Encourage an Ethics-Based Cul-ture), Henry should consider the following. If Henry removes Lydia from this assignment, it could be seen by Lydia and others in the firm as a message not to raise legitimate concerns about the workplace environment. It could also be a way of denying Lydia’s legitimate aspirations for career advancement and even lead to Lydia having a case for constructive dismissal if Henry were to insist that she work in the hostile environment of the Dinosaur work site.

Third, I am worried by Henry’s statement that their firm “can’t afford” to lose this ac-count. Perhaps unknowingly, Henry’s remark

reveals a serious threat to the independence in judgment that is required of CGAs. Becom-ing overly dependent on a single client makes it difficult to say “no” to that client’s wishes. With such dependency, there is the need to take appropriate steps to safeguard indepen-dence, particularly if assurance engagements are involved (see the CGA BC Independence Standard).

tHe HuMan DiMensionLydia is worried about what her boss will say and whether reporting this issue will affect her career. Working in an atmosphere where racism and sexism are tolerated is bad for an individual’s self-esteem and, ultimately, for the firm. It is very important to establish a secure and trusting environment within the account-ing firm. Here, senior partners need to take a leadership role in encouraging employees to be forthcoming. This is both good ethics and good business.

tHanKsWhile the views that I express in this column are my own, I would like to acknowledge the helpful comments on this case that I received from Edward Tanaka, CGA-BC’s Manager of Regulatory Practices, and Kate Talmage, Public Practice Administrator, Practice Review, as well as continuing support from Patrick Schry-burt, Communications Manager.

tHe next DileMMa Betty ng, CGa, has just attended a business lunch at which her colleague tony enrico gave an interesting presentation on business tax issues. Because tony mentioned a Cra ruling that was unfamiliar to Betty, she looked it up on the internet. Much to her surprise, she found a deck of PowerPoint slides identical to the one tony used at the business lunch. an ontario CGa had posted the slides.

Because tony made no mention of the source of his presentation at the talk, Betty decided to discuss the matter with him. she suggested that tony apologize for his “over-sight” at the next meeting of the business lunch group. she also recommended that he contact the ontario CGa to indicate that he had used the slides in a B.C. talk.

tony tells her that making a public apol-ogy for the unacknowledged use of the slides will make him and the firm look bad. He asks Betty: “aren’t we CGas supposed to stick up for each other?”

Betty leaves the discussion with tony feel-ing conflicted and confused. What should she do?

Please email us your thoughts on this ethical dilemma. We accept anonymous submissions provided we can verify that you are a CGa or student. send your feedback to edowning@cga-bc.org.

Michael McDonald is professor emeritus of applied ethics at the w. Maurice Young Centre for applied ethics at the university of British Co-lumbia. in 2006, McDonald received an honorary Cga for his extensive work in accounting ethics education.

18 outlook

Clockwise from top: 2012 Award recipients; CGA-Canada 2013 Chair Pat Keller, FCGA, (left) and David Sale, FCGA; CGA-BC Chair Cindy Choi, FCGA and Claudia Wang, CGA.

Cga-BC’s 2012 award winnersThe Chair’s Banquet and Awards Gala is held annually during the CGA conference to celebrate the contribu-tions and achievements of the Association’s most dedicated

members. This year the Awards Gala was held in Kelowna and the Association recognized members who have made significant contributions to the Association, to the accounting

profession and to their com-munities. The CGAs who were honoured in 2012 carry on the wonderful legacy of service and success established by past award winners.

1

TH

E PRIDE O

F ONE

OF

ONE

1 O F O N

E

outlook 19

Clockwise from top right: CGA-Canada 2013 Chair Pat Keller, FCGA, (left) and Harold Calla, FCGA; CGA-BC Chair Cindy Choi, FCGA (left) and Tom Senft, CGA, William Rempel, CGA and Dr. Heather Banham, CGA.

Cga-BC’s 2012 award winners J.m. macbeth Award of merit Harold Clarke Award for Service Life membership

CGA Fellowship CGA Community Service Award

Ambassador of distinction Award

Brian ellis, CGAGlen Jackson, CGAMaria lo, CGAlisa otterman, CGAtom senft, CGAellen slanina, CGADeanna Walker, CGAClaudia Wang, CGA

Darlene espenhain, CGAsusan Payment, CGA

Patrick Keller, FCGA

Harold Calla, FCGAlaura Dallas, FCGACandace nancke, FCGADavid sale, FCGA

William rempel, CGA

Dr. Heather Banham, CGA

Diversityin the Accounting Profession

outlook 21

Cover

recent studies in Canada and the u.s. show that although women account for roughly 50 per cent of accounting professionals, those numbers are not reflected at senior levels in either accounting firms or corporations. frustrated with not being able to advance as fast as men or getting the same career opportunities, women often leave their jobs for other, more suitable opportunities, generally at great expense to the organizations that hired them in the first place. interestingly, although a number of studies support the recent findings, female Cgas say they simply aren’t running up against the problem.

By gundi Jeffrey

:>

Gabrielle Loren, CGA, says that family-friendly work policies, such as offering flexible hours or the opportunity to work from home, help retain women in senior positions.

2012 senior management positions held by women across the world’s accounting firms: 21%

Diversity

22 outlook

“I personally have never seen barriers to advancement in my working life,” says Gabrielle Loren, CGA, who heads up Loren, Nancke & Company in Vancou-ver. “Even when I was with the Canada Revenue Agency, I was promoted along with my male co-workers and I never felt overlooked because I was a woman.”

Lori Mathison, CGA, managing part-ner of Vancouver law firm Fraser Milner Casgrain, also says she has never felt dis-criminated against, adding that her CGA designation “really bolstered my career.” She points out that her firm has been repeatedly recognized for its diversity initiatives, noting that diversity “is not only the socially responsible thing to do, but also makes great business sense.”

Nevertheless, plenty of data shows that not everyone is doing as well. A 2012 Grant Thornton International Business Report says there are still not enough women in senior management. If anything, the world has backtracked. In 2007, 24 per cent of senior management positions across the world were staffed by women compared to 21 per cent in 2012.

In a June 2012 report, the American Society of Women Accountants (ASWA) points out that “even when firms hire a diverse staff, many women and minori-ties drop out because of lack of sup-port that prevents accomplishment and advancement.” More specifically, the 2012 ASWA Special Report on Diversity in the Accounting and Finance Fields found that, although a diverse group of people does enter the accounting workforce each year – with 50 per cent of new hires in the U.S. now being women – these numbers drop dramatically at the senior management, partner and director levels. One ASWA report found that women

comprise only 17.4 per cent of partners in public accounting firms.

Canadian figures are equally discourag-ing. A recent position paper released by the Canadian Institute of Chartered Ac-countants’ Women’s Leadership Council (WLC) explains that although women make up 32 per cent of the CA member-ship, and are entering the profession in the same numbers as men, there has been “little progress in rising through the ranks to CFO, Treasurer or Partner.” Only 15 per cent of female CAs are partners in accounting firms.

Although there are no equivalent sta-tistics for CGAs, where women currently comprise 54 per cent of the total member-ship and 62 per cent of the 2012 entrants in B.C., anecdotal evidence suggests that CGA accounting firms do a little better, ultimately promoting a significant num-ber of their women hires to partnership.

“The needle hasn’t moved much,” says WLC chair Robin Taub, CA. “There continue to be significant barriers that prevent women from advancing. Even though there are more strategies for deal-ing with these barriers, there has not been significant improvement.”

Beth N. Carvin, CEO of U.S.-based Nobscot Corporation, a retention consul-tant and provider of web-based exit in-terviews, corporate mentoring programs and new hire surveys, states that a lot of progress was made in the 90s. “Accounting firms paid a lot of attention to recruiting women and minorities. There was this thinking that the reason there were fewer women at the top was because we didn’t have enough women in the pipeline. If we brought more women into the pipeline, they would eventually rise to the top. This turned out not to be true.”

Diversity in the Accounting Profession

gundi Jeffrey, a freelance business journalist and editor now living in Mexico, was the co-founder of The Bottom Line. her articles appear in accounting publications in Canada, england and Mexico.

“the vast majority

of highly qualified

women don’t

have the political

allies to propel,

inspire and protect

them through

the perilous

straits of upper

management. they

lack, in a word,

sponsorship.”

outlook 23

The pipeline is leaky, Carvin says, with women-sized holes, “so many fall right through. We did this great job of recruiting women and yet they still aren’t advancing at the same rate as men.” One of the sad reasons for this is stereotyp-ing. “Studies show that, in a lab situation, both men and women will, on visuals alone, rate a man as being more compe-tent than a woman. Worse, if women are viewed as competent, they are seen as not likeable. If they are considered like-able, they are not viewed as competent. Unfortunately, it takes being likeable to advance.”

Another problem, according to a 2010 Harvard Business Review Research Report, is that women don’t have the backing to attain leadership positions. As a press re-lease summarizing the report stated, “The vast majority of highly qualified women don’t have political allies to propel, in-spire and protect them through the peril-ous straits of upper management. They lack, in a word, sponsorship.” Sponsors go out on a limb for their protégées, “provid-ing stretch opportunities, forming critical connections and promoting visibility. Without sponsorship it is nearly impos-sible to climb the last slippery slopes of the career ladder – where competition is at its most intense.”

There are also repercussions for taking time out to have a family. “If you take a year off to have a kid and later on another year, those are years when your male col-leagues are gaining experience, experience that will help them advance,” says Taub. “If you’re not there, how can you learn and grow and get that experience in the same amount of time? It may take longer.”

And then there is the matter of uncon-scious hiring bias. Xerox is a leading light

in promoting women and has a female CEO in both Canada and the U.S., and 50 per cent of the Canadian senior leader-ship is female. And yet barriers persist, says Melanie Philip, who works for the strategy and transformation division in Canada.

Xerox is very progressive, she says, “but there are subtle biases in our heads that prompt us to choose males for a certain role and we don’t even know we are do-ing it. A man will walk in and say I am great and I will do this, this and this for you, while a woman will say she has ex-perience and can do certain things well. In a culture where we want people to say, ‘I am going to knock the ball out of the park,’ the selection process will be biased towards men, who can sell themselves better. We need to change our thinking. As women, we need to understand that if we want a particular job or career path, we don’t have to be 110 per cent quali-fied to go aggressively after it. Men might have only 60 per cent of the qualifica-tions but they will still go for it.”

According to Philip, “our real challenge today is to recognize female talent and make sure that women are in the pool of candidacy for a role.” This is a very subtle problem, she says, “but if we don’t address it, we will, over time, self-select ourselves out of certain jobs and into other roles – and go backwards.”

Carvin adds that research shows “that people tend to hire people who are like themselves. So, in professional services firms, if the primary top leaders are men and they are making the decisions for promotions, they tend to naturally want to promote someone like themselves and perpetuate this problem.”

Whatever the reason, Nobscott’s direc-

tor of sales Laura DiFlorio, who is based in Ontario, says that “something happens during the work life of some women that makes them leave and seek a different ca-reer that is not as demanding or competi-tive. They feel like they just don’t fit in. If you don’t make your female employees feel like they belong, they will leave.”

And that can get expensive. According to the WLC paper, the cost of replacing a valued employee is at least twice the cost of her annual salary due to the loss of intellectual capital, the learning curve of the new employee, client responses, and professional and leadership train-ing. “When a sizeable portion of the talent base is female, if a large number leave, the cost would be significant,” says the report. If a company employs 1,000 people at an average salary of $50,000 and has a 10 per cent annual turnover, the cost to the company is roughly $10 million a year.

“Those are hard numbers that should attract the attention of business leaders,” says DiFlorio, whose company has online tools to allow organizations to calculate their own losses.

But beyond the costs of losing women, there are so many benefits to having them in senior positions. Study after study shows that women at the top are good for business. The Grant Thornton report found that stock price increases are more likely when women are on senior management teams. Another study found that businesses with more women on their boards considerably outperformed rivals in terms of sales and returns on invested capital and equity. As well, mixed gender boards appear to pay better attention to audit, risk and control. Even more telling, a recent study from

Per cent of female CAs who are partners in accounting firms: 15%

Per cent of female CGAs who are partners in accounting firms: 25%

: :

Diversity in the Accounting Profession

24 outlook

the UK found that having at least one female board member reduced the busi-ness’s chance of folding by 20 per cent, and having more than one reduced the odds even further.

To this, the ASWA report adds that a diverse workforce makes a strong state-ment to potential clients that can give a company or accounting firm a marketing advantage. “A diverse workforce brings a variety of perspectives and experience to the table, enables individuals to think dif-ferently and increases the collective level of creativity and innovation.” The ability to present a firm as innovative, with a diverse workforce, “is an important and meaningful way to distinguish your firm from other accounting firms,” the paper points out.

Loren agrees wholeheartedly. “Vancou-ver is a very multicultural city and we have clients from every possible back-ground. To meet the needs of this diverse group of clients, you need a diverse group of staff. We hired our first East In-dian woman just last week. She speaks a language we did not have covered in our office. Having someone who can speak to clients in their native tongue is beneficial at so many levels.”

A number of accounting firms have taken these studies to heart and are in-vesting in recruiting, training and retain-ing female talent. In November, Catalyst Canada honoured several business lead-ers as 2012 champions of women’s ad-vancement in corporate Canada, among them Anne-Marie Hubert, Managing Partner of Advisory Services at Ernst & Young LLP.

According to Fiona Macfarlane, LLB, Ernst & Young’s Chief Inclusiveness Of-ficer and Managing Partner of the B.C.

region, “in the early 90s, we recognized that we needed to address that women weren’t advancing to the partner role as fast as one would expect.” The firm now has a number of programs in place to do that. One of them is EYU, “a university to develop our people. It has often been found that women’s progress through the ranks was hampered by the fact that they weren’t getting the appropriate experience along the way. This could be experience in business development, the kind of client relationships you develop, the technical skills or work on specific kinds of projects – things that develop your skills and get you ready for the next level.”

There is also Career Watch, which monitors the professional development and career progression of the firm’s high-performance women. “We look at whether women and visible minorities are getting the appropriate work experi-ences, are part of appropriate networks and are working with appropriate clients to make sure they are ready for partner-ship when the time comes.”

And there is a professional women’s network to help women build their skills and leadership capabilities, as well as de-velop the internal and external networks they need to succeed. Says Macfarlane, “they are doing what the men have been doing all along.” As a result, the number of women partners at Ernst & Young has doubled over the past 10 years.

Yang Li, CGA, is one of the benefi-ciaries of these programs. With Ernst & Young since 2005 and now a Manager, Tax Services, Li was attracted to the firm because of EYU. The program gave her the skills and work experience to advance faster than might normally be expected.

“No matter

what perks are

offered, giving

staff flexibility and

making the work

environment a

place where they

want to be will

result in a more

focused, productive

staff that can only

increase a firm’s

earnings.”

Gabrielle Loren, CGA

Per cent of 2012 CGA entrants who are women: 62%

Per cent of female CGAs: 54%

outlook 25

She also participated in Career Watch. “I was matched with an experienced part-ner who gives me high-level direction and monitors that what I do is helping me with my career according to the firm’s strategy plan. She helps me focus my time and energy and use my knowl-edge and skills to advance.” Li also has a mentor who supports her in acquiring appropriate knowledge and experience.

“Ernst & Young really goes out of its way to help you realize your ambitions,” Li says. “Now I see an opportunity for serving the Chinese market in B.C., as we have lots of Chinese companies coming to Vancouver to acquire resource com-panies or set up their own companies. There are cultural differences in how they think and operate – I can be a bridge to serving those Chinese clients, and my leaders are helping me develop this ini-tiative.” Li hopes to make partner in the next four to five years.

Macfarlane says the firm is also pro-moting sponsorships. “It has been shown through research that the way people get the top jobs is to have a sponsor, someone who will stick their neck out and put their personal credibility on the line and say that a certain person is right for a particular job or partnership. The research also shows that women tend not to get sponsored to the same degree that men do. But it is a powerful tool.”

She can attest to that, having had a sponsor herself. “Before I became the managing tax partner for Canada, my predecessor identified me as someone who would make a good successor for him. He went about making sure that whatever I accomplished was well known by the person who would ultimately make the decision. He fought for me and

explained why he had confidence in me. Because he was a very influential person, with a lot of credibility, that made a big difference for me.”

CGA firms are also making great strides in promoting and retaining women. Loren says that long-term work retention of women is more likely if a firm offers, as hers does, flexible hours to deal with family commitments, or the ability to work from home at times. “No matter what perks are offered, giving staff flexibility and making the work environ-ment a place where they want to be will result in a more focused, productive staff that can only increase a firm’s earnings.”

Sandy Kirkwood-Pearce, CGA, is the managing partner of London, Ontario-based CGA firm EPR Sleegers Kirkwood-Pearce, an independent member of EPR Canada. After 25 years in the profession, she has seen many changes. Although her first jobs were bookkeeping and secre-tarial, one of her employers encouraged her to get her CGA, and that put her on track for a more satisfying career. As well, she adds, belonging to a women’s network throughout the years has been invaluable. “That group gave me the encouragement to do better.”

Five years ago, she bought out the owner of her firm. “There were times during my career path to partnership I felt I had to work harder to balance fam-ily demands and keep up with the work demands to move up the ladder. Today, there is more support to help women advance in their careers faster.”

She has adopted, in her own firm, the Women’s Empowerment Principles, which espouse seven steps for achieving gender equality in the workplace. “We signed on to that model to encourage the

women in our firm to take the CGA pro-gram and work towards partnership. We make sure that, when there are several qualified candidates for a job, the women aren’t passed by – there won’t be a barrier to women in our firm.” Kirkwood-Pearce is now asking other EPR firms across Canada to implement the same prin-ciples. Currently, 15 of EPR’s 62 partners are female.

Bruce Hurst, FCGA, a shareholder and director of Reid Hurst Nagy Inc. in Van-couver, which has four partners, one of whom is a woman, says his firm promotes flexible hours to accommodate child and elder care, allows people to work from home and gives three paid family days a year on top of vacation and sick leave. But the firm went the extra mile for one of its long-time employees, Lynn Gal-loway, when she felt she had to leave the practice to be with her significant other in Kelowna. Instead, the firm allowed her to work from home for two years until it decided to open a second office in her city. “Lynn is now a partner in our firm and in charge of the Kelowna office.”

All these initiatives are producing some success stories and the numbers problem will eventually improve. “Now, there are so many professional couples and even role reversals – with some husbands staying at home and raising the kids while their wives have the bigger ca-reers,” says Taub. “So I hope there is going to be a more gender-neutral workforce over time. We now have more female role models, more mentors and sponsors of women – and the business case for women in leadership is very compelling. This is true in both executive ranks and the board level. Businesses just perform better when there is more diversity.”

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For Beth McInnis, a career in accounting wasn’t even on the radar when she was growing up. As a teenager, she was fascinated by geotechnical sciences and geo-morphology, an interest spurred by a desire to understand how the world works. Although she wanted to attend university full time, the cost and “an aversion to debt” meant that she found a full-time job instead and began taking courses at night and on weekends at Langara and BCIT.

It was while working at a real estate firm that she took on an accounting role – and discovered a new career option.

“I found out that I liked numbers, both in terms of what I can do with them and what they mean to people. And accounting seemed to be a career buffered from economic ups and downs that could give me the satisfaction I was using my skills and talents.”

McInnis worked in positions of increasing responsibility – by 25 she was a con-troller – all while pursuing her Bachelor of Accounting Sciences degree and CGA designation. She completed all her CGA work experience two years before achieving her designation in 2001.

During this time, she worked for several companies in the real estate and dot-com sectors. “The start-ups were really fun – it was just a crazy work environment that ran on adrenaline. I met many amazing entrepreneurs.”

At the end of 2001, she shifted to the non-profit sector, taking a job with the Vancouver General Hospital and UBC Hospital Foundation as Director of Finance.

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Accounting for Art>

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Beth McInnis, Cga, Baccs, has had a remarkably varied career in accounting – from working for real estate firms and tech start-ups to serving as Director of finance for one of B.C.’s largest health care foundations. as the vancouver art gallery’s new associate Director and Cfo, she’s bringing her experience and skills to the organization at an exciting period of transformation in its 81-year history.

By lynn sully

outlook 27

“I realized that working in the charitable sector was where I was meant to be,” she says. “It’s a place where I could work for change in the world and know that I was making a difference.”

McInnis says she “wore a lot of accounting and finance hats,” with responsibilities for every-thing from ensuring two large fundraising lotteries complied with gaming and CRA regula-tions to determining an ap-propriate risk profile for investing endowment funds. She was also the “first face of accountability to donors” and developed exten-sive controls to ensure that gifts and donations were accounted for properly.

In her four years at the financial helm, revenues at the hospital foundation increased by $10 million. And while McInnis loved her work, she decided to “join a lovely family-style charity” after getting a call from Stephen Miller, CEO of the BC Lions Soci-ety for Children with Disabilities & Easter Seals BC/Yukon.

As the Vice President of Finance, she prepared and coordinated all financial reports and regulatory filings and man-aged all financial aspects of Easter Seals’ many events and programs in six locations around the province. She loved working for a smaller organization with its opportunities to learn and grow.

“When you’re in an account-ing position with a charity or small business, you often have more flexibility than you would in a large organization with more hierarchy. You have the ability to look at the business model and revenue streams and then de-velop new strategies to help the organization reach its goals. For many accountants, this is where

career advancement can really take place – you’re learning the value of your judgment and de-veloping your business acumen. In a lean organization you can make a big difference.”

After seven years, just as McIn-nis was thinking she was ready for a new challenge, she learned about the opening for the CFO position at the Vancouver Art Gallery.

In April, she stepped into her new role as Associate Director and Chief Financial Officer of the Gallery at a crucial transi-tion point in the organization’s history. Having outgrown its current location long ago, the Gallery plans to build a new and significantly larger building on a city-owned block at Cambie and West Georgia. It needs this new space to showcase its impressive collection of more than 10,000 artworks, the vast majority of which are not on display due to a lack of room at the Gallery’s current location. Vancouver City Council is expected to announce its decision on the potential site for the new Gallery by Febru-ary 1.

If the new Gallery gets the go-ahead, McInnis will find herself overseeing an ambitious capital campaign. While the Gallery has already received $50 million in support from the Province of B.C. as well as early gifts and pledges from several individuals, much more funding will be required and the large campaign will need the support of individu-als, corporations and all levels of government to finance a purpose-built facility for the visual arts.

Although the fundamentals of accounting are the same no matter what the industry, work-

ing in a cultural arts organiza-tion like the Gallery introduces some unique elements. Ensuring the security and accessibility of a large and diverse cultural collection, overseeing multiple programs and events, and co-ordinating the needs of various departments make for varied and busy days.

Planning is always an important part of accounting, but it takes on even greater importance when managing the province’s leading art institution. Large touring exhibitions – like the recent Matisse show – are selected up to four years in advance. Management needs to put funding in place for these exhibits long before revenues start flowing in.

McInnis likens it to a giant jigsaw puzzle. Once you have the central piece in place – the exhibitions – you can start put-ting all the other pieces around it, such as public programs events, touring schedules and seeking sources of funding to cover all costs.

Of course, even the most careful planning cannot offer protection from unexpected events. The economic downturn of 2008 was one surprise that changed everything. “All orga-nizations need to be very fluid and ready to adapt to changing events, but it can be hard in the Gallery’s case when so many of our costs are locked in.”

Expert planning and budget-ing are particularly important given the organization’s revenue streams. The Gallery receives approximately 25 per cent of its funding from government. (While the average provincial funding for arts organizations in Canada is $26 per person, in B.C.

this figure is only $6.50.) Other revenue comes from admissions, donations, events, art and facility rentals, and the Gallery store.

With the economic envi-ronment of the last few years squeezing donations and rev-enue from admissions, McInnis is looking for ways to strengthen the Gallery’s bottom line.

She talks animatedly about new opportunities. “What can we do with the store to make it more high profile? Do people know about our art rentals and sales divisions? How can we use technology to enhance the ex-perience of our visitors? In what other ways can we engage the public and keep them interested in the amazing things going on here?”

McInnis’s enthusiasm reflects her belief that working for the Gallery and other not-for-profits is “not just a job but a life choice.” She feels privileged to be contributing her talents in this way and is quick to credit the many mentors who’ve helped her succeed in leadership posi-tions – people “who have been interested in seeing me prosper and grow and who’ve given me the tools and resources to make that happen.”

When mentoring other CGAs, her advice is to develop both technical and soft skills. “Your technical work has to be excep-tional and you need to have people skills. As the financial face of an organization, you have to have the confidence to stand in front of other leaders to explain operational results and advise on major decisions. Many people – and women in particular – struggle with this. But the lesson is to not be afraid of who you are and what you can offer.”

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28 outlook

“all organizations need to be very fluid and ready to adapt to changing events, but it can be hard in the gallery’s case when so many of our costs are locked in.” Beth McInnis, CGA

CGAs in the News

CGA-BC hosted its annual MLA Luncheon in Victoria on October 4, bringing govern-ment, business and the CGA profession together as part of the launch of Small Business Month in B.C. CGA-BC Chair Cindy Choi, FCGA, presented the Small Business Round-table’s Seventh Annual Report to Government to the Hon. Naomi Yamamoto, Minister of State for Small Business (right). Choi (left) was joined by the Roundtable’s Co-Chair and MLA Kevin Krueger (centre).

In her remarks, Minister Yamamoto expressed her appreciation for the important role Certified General Ac-countants have played in the economic growth of the prov-ince. “I would first like to say ‘Thank you’ to the CGAs for the 60 years of expertise you have been providing small business-es in B.C.,” the Minister said.

edward tanaka, CGA-BC’s Manager, Regulatory Practices (pictured above ), received the Queen Elizabeth II Diamond Jubilee Medal for his service as President and Chairman of the Board of the Canadian Red Cross Society.

Diane skidmore, CGA, was voted ‘Favourite Accountant’

in The Tri-City News’ 2012 A-List. Diane’s firm, Skidmore & Co. CGA, is located in Port Coquitlam.

members on the move

The CGA Canada Board of Gov-ernors has elected Pat Keller, FCGA, to serve as Chair of CGA Canada for 2013. Pat

served as Chair of CGA-BC in 2008 and lives in Penticton.sushil arora, CGA, has been

appointed Chief Operating Officer of Danica Imports. He joined Danica in 2001 and

previously served as the VP Finance and Operations.

Diana Huang, CGA, CPA (Illinois), has been appointed Equity Principal at MacKay LLP, effective January 1, 2013.

outlook 29

we appreciate your contri-butions to ‘Keeping tabs.’ if you would like to submit news or updates concern-ing yourself or a Cga you know, please email the details to: outlook@cga-bc.org.

CGAs are accomplished professionals. In this feature, we highlight members who land major new

positions, get promoted or achieve significant professional success. Please share your news with us.

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a well-established Victoria CGa firm is looking to purchase an existing accounting practice and/or block of accounts.The preferred size would be up to $500,000 in annual fees. We

are highly motivated individuals who pride ourselves on our high

standards and exceptional customer service. Our goal is for a smooth

transition in the best interest of all concerned.

Please respond to: viccga2012@gmail.com

keepingtabs

30 outlook

feature

as audit standard-setters continue to look for ways to improve the governance value of audits for stakeholders, so too must professionals serving on boards and in senior management positions critically evaluate their own positions to do the same.

controls. Each of these responsibili-ties is central to the good gover-nance of an organization. In fact, the two most common ways that fraud is uncovered are suspicious transaction reporting and routine internal auditing, both of which fall squarely in the realm of what many CGAs do on a day-to-day basis.

The guardians of governance are, therefore, teams that include board members, senior manage-ment, external auditors and other internal colleagues. Success in the challenging realm of organi-zational governance relies on all players knowing their role and being trained in doing it well. As audit standard-setters continue to look for ways to improve the governance value of audits for stakeholders, so too must profes-sionals serving on boards and in senior management positions criti-cally evaluate their own positions to do the same.

Some of the more common governance breakdowns can be avoided by ensuring that the fol-lowing fundamental concepts are followed:

• Individuals need to be clear on their responsibilities: Do your homework and don’t be afraid to ask questions, especially the tough ones.

• The role of the board is to guide strategy and oversee the organization’s compliance with standards and policies, not to meddle in operations. Boards that get too mired in the details risk losing the essential perspec-tive of oversight.

CGAs Are Critical Governance Advocates

accountants play many governance roles, but care is needed to ensure that we know – and do – our jobs

By Brian friedrich, fCga, and laura friedrich, fCga

Governance failures seem to come in waves. In the early 2000s, we witnessed the very public corporate failures of Enron, WorldCom, Hollinger, Nortel and Parmalat, among others. More recently, we’ve seen the global financial crisis, which the U.S. Financial Crisis Inquiry Commission found to represent a “dramatic breakdown in corporate governance.” Despite warning signs being clear and apparent, they were ignored.

Outright business failures aside, the impact of governance weakness can also be seen in an organization’s vulnerability to both internal and external economic crime. PwC’s most recent survey in this area, for example, found that nearly one in three Canadian companies reported being victims of economic crime in the previ-ous year – notably through asset misappropriation, accounting fraud and cyber-crime. Despite the increased spotlight on governance in recent years, there’s clearly more to be done, so let’s consider by whom and how.

The more obvious governance roles that may spring to mind are those played by board members and external auditors. The International Federation of Accountants (IFAC), however, identifies other ways that accountants are key governance leaders. In its International Good Practice Guidance on Evaluating and Improving Governance in Organizations, IFAC reminds us that accountants in business are tasked with measuring and managing performance and risk, creating value, communicating results to stakeholders, and safeguarding the business through adequate internal

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Gender diversity on boards has been an increasingly publicized topic over the last 10 to 15 years, so you’d expect that the gap would be significantly narrowed by now, right? Well, it depends on what kinds of organizations you evaluate.

Looking at public companies, women hold only about 10 per cent of board positions in Canada and 16 per cent in the United States. Moreover, only 3.6 per cent of Canadian (and 2.6 per cent of U.S.) public company boards are chaired by women. Between two to four per cent of CEOs in the large public company environment are women.

These statistics are troublesome, particularly to regulators and governments, whose mandates include increasing all forms of diversity. One measure to address the issue is implementing quotas – a tactic initiated at a national level by countries including Spain, France, the Netherlands, Italy and Norway. Based on well-leaked reports, the European Union is rumoured to be following this lead by considering a requirement that women make up 40 per cent of non-executive board members of large publicly listed companies by 2020.

Even in “non-quota” European countries, growth in the number of female directors has increased significantly in the past few years, suggesting that the threat of quotas is enough to spur action. Quotas in neighbouring countries may motivate companies to accelerate attracting top female candidates to their boards before they are recruited onto boards in countries that are early quota adopters.

But, more fundamentally, are quotas really the way to go? Agreed that they open up opportunities, but they also run the risk of entrenching the issue of gender diversity in the realm of compliance, rather than understanding it as sound strategy and good gover-nance.

Another potential gender diversity driver is the relatively new U.S. Securities and Exchange Commission rules requiring corporate nominating committees to disclose how the board considers diversity in identifying director nominees. Although no specific metrics are imposed, the belief is that shining a public spotlight on diversity issues will encourage change.

Despite the continued low levels of female participation on public company boards, we see a very different story in not-for-profit organizations. A recent U.S. study found that between 2010 and 2012, women held between 45 and 50 per cent of non-profit board positions and that 62 per cent of non-profit CEOs were female. This is clearly in sharp contrast to the situation in the public company arena.

So the take-away question here may be: is it that public company boards are not really interested in attracting women, or are women not really interested in participating on public company boards? In all likelihood, it’s a combination of factors, but fundamental to the issue is the parallel seen between the gender of CEOs and senior management, and the gender make-up of boards. The composition of not-for-profit boards appears cor-related with the gender of the CEO. Boards of organizations having a male CEO are much more likely to have a majority of male directors, while organizations with a female CEO average 50 per cent female representation on their boards.

It would seem that the best course of action is to continue to press for open opportu-nity and ensure the most qualified candidates are recruited to the leadership positions they’re interested in – both serving on boards and filling senior management positions.

Cracks in the glass ceiling?

• Independence and diversity of board members fosters both in-novation and risk management. You may have heard the saying: “If there are 10 people in the room who always agree, there are probably nine too many people in the room.” Informed, objective debate is healthy.

• Ensure that board members are not only familiar with the orga-nization, but are also trained in governance. Consider providing training on fundamental admin-istrative matters ranging from conducting better meetings (through appropriate parlia-mentary procedure) to more formal directorship training and certification.

• “Bored” members are of no use to the organization – ensure that directors are engaged and involved in important commit-tees and decision-making.

• Autonomy of the internal audit function is another key piece in the governance puzzle. Inter-nal audit should report to an Audit Committee comprised of independent directors and should be available to the board to conduct specific inquiries as needed.

• Size doesn’t matter – even small organizations need effective governance. Although full-on public company governance rules may not be required, the central concepts should be inter-nalized, and simplified solutions implemented.

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The argument in favour of board gender diversity relies on the notion that such diversity results in enhanced organizational performance. A review of the research in this area, however, is not overwhelmingly positive. Several studies support the “more diversity = better performance” hypothesis, while others conclude that there is no provable link. Furthermore, much of the supportive research has either been conducted, or significantly funded, by organi-zations whose mission is gender and/or minority equality. These are clearly valuable goals, but a profession trained to be skeptical will naturally put more faith in results from unbiased sources.

A recent study by Credit Suisse, however, is appealing in terms of both having an objective sponsor and intuitive findings. The study analyzed the share price performance of almost 2,400 companies with and without female board members from 2005 to 2011. It found that, during times when economic growth was relatively robust, there was little difference in share price performance between companies with women on the board and those without female board members.

During the recent economic downturn, however, companies having at least one female board member performed significantly better. The report concluded that more gender-diverse boards tend to be more balanced and less aggressive, with, for example, lower financial lever-age. This likely translates into less volatility, which means better performance in bad times, but conceivably also the possibility of lower returns in good times – risk mitigation cuts both ways.

It’s worth noting that these results were seen with as few as one woman on the board. Does this mean that one woman can make that much of a difference? The Credit Suisse report suggests a number of factors that as much indicate correlation as direct causation. Gender diversity is seen as a sign of general good governance and board effort – an indication of a strong company with access to a large talent pool and a broad mix of leadership. In this way, performance comes not simply from having women on boards, but from having an environment that values diversity and a balance of competencies, backgrounds, personality types and decision-making styles. In today’s volatile and uncertain business world, diversity seems to be one more balancing act that can make a difference.

how Does gender Diversity on Boards impact performance?

IFAC stresses that our responsibility for evaluating and improving governance is underpinned by our code of ethics, within the basic notion of protecting the public interest. Our own Code of Ethical Principles and Rules of Conduct extends this principle by including a couple of related proactive rules. R525(c) requires members to further the legitimate aims of their employing organization and R526 makes the connection between members in more senior positions having more ability and opportunity to influence events, practices and attitudes. In other words, governance is not a role assumed by only some CGAs; rather, we’re all critical governance advocates.

Brian Friedrich, MEd, FCCA (UK), FCGA, and Laura Friedrich, MSc, FCCA (UK), FCGA, are the principals of friedrich & friedrich corporation, an accounting research, standards and education firm. The firm provides policy, procedure and governance guidance; supports the development of public accounting standards in Canada and internationally; and helps implement best practices in competency-based education. Both Brian and Laura have served as authors, curriculum developers, lecturers and exam developers for numerous CGA and university courses in Canada and abroad. Laura currently serves on the CGA-BC Bylaws and Education Advisory Groups, and Brian sits on the CGA-BC Board of Governors and the CGA-Canada National Professional Standards Committee.

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r525(c) requires members to further the legiti-mate aims of their employing organization and r526 makes the connection between members in more senior positions having more ability and opportunity to influence events, practices and attitudes.

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34 outlook

CGA-BC will be celebrating its 25th anniversary on television in 2013. And while its original advertising campaign was designed to raise awareness, our most recent campaign focuses on how CGAs often play a strategic leadership role within busi-ness. And meanwhile, business is changing.

“We wanted to raise the stakes and show how CGAs aren’t just buttoned-down numbers people,” says Edward Downing, Director, Communications & Marketing for CGA-BC, who worked on the campaign with CGA-Canada and other affiliates across the country. “They have that skill, and that’s where they’re trained, but as business leaders and business thinkers, they see the bigger picture and new opportunities.”

The opportunities promoted in the ads lie in the growing world of sustainability, where going green means investing in efficiency and cutting costs, as well as saving the planet. The ads focus on CGAs at two companies, Rona and Steam Whistle Brew-ing, and how their leadership in green practices is improving business outcomes. An earlier ad profiled a senior CGA executive at WestJet. “Certified General Accountants see more than numbers,” say the ads. “We see the impact and opportunity behind them.” (See the print and TV ads at cga-more.org/ouradvertisingcampaign.html.)

Downing says CGA-BC’s own work on sustainability, with the active encourage-ment of CEO Gordon Ruth, FCGA, adds credence to the thinking behind the ad campaign. The organization completed an energy audit of its building and applied for Power Smart incentives to improve energy efficiency. “We also went through the Climate Smart accreditation process, and that was one of the recurring messages, that it’s important to do the right thing and that there are definite savings to be had by doing it.”

When the organization sat down to map out its carbon footprint, it began by get-ting its accounting staff involved. “We wanted to quantify energy costs and figure out

greenhouse gas emissions from areas such as travel and our other operations. So we really needed the accounting team. It was quite laborious to go back into all the various operational costs and reports.”

A CGA’s ability to bring strategic analytical skills to a company is the key message in the ad campaign. But the value-added benefit of helping businesses go green along the way is also important, says Downing, and it’s a commitment the organization takes seriously.

Highlighting the profession’s connection to sustainability helped the organization break through a cluttered advertising landscape. But Downing says it’s also important in encouraging young people to con-sider entering the CGA program.

“A lot of younger people have a different career path than what people had 10, 15 or 20 years ago,”

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Sustainability Advertising

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“a lot of younger people have a different career path than what people had 10, 15 or 20 years ago. a large part of that is people’s interest in corporate social responsibility, being environmentally sensitive, getting involved in companies that do have an environmental focus. people are doing the right thing, and they like companies and organizations that are doing the same.” Edward Downing, Marketing Director for CGA-BC

ad campaign highlights bigger, greener role for Cgas

By Nina winham, for BC hydro

By Galen Lee, Senior Communications Manager, CGA-Canada

CGA-Canada and its provincial and territorial partners are running a Canada-wide advertising campaign emphasizing the value CGAs bring to their employers and clients around the issues of sustainability and efficiency. The TV commercials, featuring CGAs working at Steam Whistle Brewing and home improvement retailer Rona, have been running in B.C. and across Canada from September to November, and will run again from January 1 to April 2013 on CBC’s The National, BNN, CTV News Channel and CBC News Network and locally on CTV and Global.

In addition, CGA-BC sponsors major financial reports on Global TV and it runs radio commercials on the highly rated CKNW and News 1130. This is the third national campaign to build on the tagline We see more than numbers to emphasize the breadth of CGAs’ expertise.

A 2012 benchmark survey of 1,500 businesses across Canada shows the campaign continues to build brand awareness and improve perceptions among business leaders. Awareness of CGA in B.C. is high at 94 per cent. Unaided awareness is up 17 percentage points nationally since 2008 – a more significant gain than those experienced by CGA’s competitors.

Among hiring professionals, hiring consideration and preference have steadily increased for CGAs. The CGA designation ranked first for having more experience and the skills and knowledge business requires. Additionally, CGA advertising recall has increased nine per-centage points since 2008, the strongest gain versus the competition. In B.C., CGA has the highest recall of advertising at 45 per cent compared to lower than 20 per cent for our competitors.

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outlook 35

he says. “A large part of that is the public’s interest in corporate social responsibility, being environmen-tally sensitive, getting involved in companies that do have an environmental focus. People are doing the right thing, and they like companies and organizations that

are doing the same.”Downing also believes the cam-

paign may lead to a larger impact. “In British Columbia, we have more than 10,000 members and 5,000 students. So we see ourselves as an advocate for sustainability. By communicating to those 15,000 members and students, they can each become ambassadors and thought leaders in this area. And it’s a national campaign, so this ex-tends across the country, anywhere CGAs are working. I think that’s important too.

“When I give my elevator pitch, I say that my job is to make accoun-tancy look interesting and exciting,” Downing says with a laugh. “But the reality is, CGAs don’t really need any help in that area, because they are. They work in such diverse places, from Microsoft to the Vancouver Art Gallery. There’s a stereotypical view out there, and I think we do have to break through that so we can show that working with the numbers isn’t just about whether it’s a net profit or loss. There are other factors involved, such as efficiencies and sustainability.

“I think the thing that we’ve discovered through our involve-ment with a lot of these issues is that you can do the right thing by pursuing a sustainable path, and you can also save an organization money. Our advertising scenarios show CGAs who are taking the lead on this. They’re financial leaders, they’re well-trained and you can see they’re strategic business think-ers. They really play a key role in guiding companies through often choppy financial seas.”

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The ad campaign emphasizes that CGAs are leaders with a deep under-standing of all facets of business.

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“the yardsticks i once measured success by and that gave me hope have been stripped away. i have not yet replaced those yardsticks with new ideas that might give me hope for the future.”

I built an island around myself. I was independent to a fault. But without help and support, the practice crashed. If I had the self-awareness as a young man that I have today, maybe I would have understood my personal inability to handle the stress I feel from the expectations of clients and my natural desire to take my client’s problems on as my own.”

Despite the set-back, Matthew once again propelled himself up the ladder of success, securing positions as a CFO and broadening his experience in public accounting and tax and business consulting for both public and private companies. In the early 90s he married and set up another public practice. “To make money was my job. I learned how to be a public practioner, do-ing everything myself. Tax season was especially brutal – working 60 hours or more weekly from January to June. I had no balance in my life, and greed and the drive for money took over.”

“My job was to take care of my family, our lifestyle and our future, and to protect my clients and their futures too. I felt like I was holding up the world, like Atlas.”

tHe CrasH When Matthew’s wife told him the marriage was over, he didn’t see it coming. “I felt completely blindsided. Everything I had worked for came crashing all around me. Driving to the office made me sick. I was drowning and going down fast. I couldn’t concentrate. I felt over-whelmingly sad and hopeless. If I left the office in the early afternoon, I wasn’t coming back. I drank to avoid reality and feeling.”

As Matthew rapidly approached what he calls “ground zero,” he phoned Tina Peters, a public prac-

Matthew’s story

two years ago, his life plan was unfolding just as he had envisioned. then everything changed.

By ilona Beiks

In his early 50s, his sights were locked on an early, “more than comfortable retire-ment,” says Matthew (not his real name). “In a good year, and there were many, I was billing north of $600K.” Snapshots of his family and career were, acknowledges Matthew, “something to be proud of.” His wife was able to devote her time to being a full-time mother, his kids attended the finest private schools, he recently purchased a house in Europe and he lived in a local showcase of a home with big cars in the driveway and two boats in the marina.

Life appeared to be smooth sailing ahead, “until my wife pulled the plug on our marriage.” Matthew fell headlong into a downward suicidal spiral that found him living alone, turning to alcohol for support, losing his accounting practice and going into debt, which resulted in two years of psychiatric wards, transition houses and therapy. “It was like a nuclear bomb had hit me.”

“Two years ago, I had it all. Today, I’m starting from ground zero. I’m hoping that maybe my story can help somebody else. Being a CGA opens many doors and brings a lot of opportunities – but it can also be a very stressful profession, particularly pub-lic practice. I know I’m not an isolated case.”

tHe BeGinninGAfter graduating from high school in the early 80s, like many other grads, Matthew went to Europe. When he returned, he was up at Capilano College one day and saw a CGA ‘Do you want to be an Accountant?’ poster on a bulletin board. “From my early teens, I’ve always had a plan and I am your classic type-A personality. Joining the CGA was my plan. The program, in those days, was that I could work during the day and make money, study and take courses at night, and get my CGA designation without going to university. I wanted to start my life sooner, move forward faster. Here I was at 19, watching dudes in their 40s juggling families, work and the Program. In my mind, I was on the fast track, concentrating only on making money and studying.”

His plan seemed to be working. Two years out of high school, he bought his first condo. At 26, he bought his first practice. But in retrospect he says, “it was too soon, too fast, and I was so young and inexperienced. I thought I could do it all on my own,

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outlook 37

• Be aware that public practice can be a stressful profession. Make sure you build balance into your life.

• If you have to choose between life or disability insurance, get disability. Stress is the number one disability.

• If you are experiencing any unusual emotional reactions, seek medical help from your GP and see a psychologist and/or psychiatrist. Many GPs are not trained to see the some-times blurry signs of a crash in progress. Watch for increased alcohol or recreational drug use.

• Advise your partners (if any) and a CGA public practice advi-sor of your concerns for your well-being and your concerns for your staff, clients and management of your business. [Note: all staff at CGA-BC are bound by confidentiality agree-ments. CGA-BC will also be re-launching a public practitio-ner counselling assistance program in the new year.]

• Discuss concerns with your spouse/partner and ensure sup-port systems are available.

information on mental illness in the workplaceOne in five people in Canada will suffer a mental illness of some kind.• According to the World Health Organization, mental illness is

the leading cause of disability in the world and five of the 10 leading causes of disability are related to mental disorders.

• Mental illness costs the Canadian economy $51 billion a year, and each day 500,000 people will miss work due to mental health problems.

• Each year, employers and insurers spend $8.5 billion on long-term disability claims related to mental illness.

• Mental illness is the number one cause of disability in Canada, accounting for nearly 30 per cent of disability claims and 70 per cent of total costs.

• Mental health disorders in the workplace cost Canadian companies nearly 14 per cent of their net annual profits and up to $16 billion annually.

• The unemployment rate among people with serious mental illness is 70 to 90 per cent. There is a 60 per cent drop in family income when a breadwinner is diagnosed with men-tal illness.

Source: World Health Organization

advice from Matthewtice advisor at CGA. “I had called Tina

numerous times over the past four-

and-a-half years. I have known her for

15 years. She was my go-to connection with

my professional association. I called her because I didn’t know where else to go as my Associ-ate clearly was not able to be of assistance. Tina advised me to follow up with a possible practice sale. She also suggested I call a crisis line.”

A few weeks later, Matthew describes how one day he put on his suit, went to the office, went home, pulled the blinds, lay down on the bed, and called a relative

to come and get him. “In my suit, I walked into the hospital

and a few hours later I was sitting in a hospital robe

in the psych ward. I had gone from a dream life to seven months in a psych ward and it was

a breath of relief.”

toDayMatthew is slowly building a new life after extensive treatment, therapy, counselling and support from friends and family. Fortu-nately, he has business associates who stood by him and offered him work. But it hasn’t been easy. Matthew explains, “This is another reason I want to tell my story. I have a mental illness. But if I had a physical illness I would be treated completely differently, especially in the workplace. It is time to erase the stigma around mental illness. But unfortunately it exists and that is why I chose not to use my real name.”

38 outlook

F inally ready to hang up a shingle, eh? Well, good for you. It’s an exciting time for Certified General Accountants who are choosing

to become more like the clients they have worked with for years by becoming self-employed. For some, the freedom to do whatever one wants, whenever one wants can create a feeling like a cham-pagne cork flying through the air. For the unprepared, however, there can be quite a bump back down to earth.

START WITH THE BASICSStarting your own accounting firm is like starting any other business, but with a few subtle twists. You’ll need to find an office location and furnish it, prepare a detailed budget and maybe secure the necessary financing to see you through your first few months, at the very least. You will need to register with CGA-BC to ensure the appro-

priate licences and suitable professional indemnity insurance are in place.

As a soon-to-be owner, you might also need to find some good employees from the start. Maybe you have a few people already in mind from past business relationships. You will need to investigate

software options for tax preparation and working paper systems, scanning, docu-ment management, workflow manage-ment and time and billing, to name but a few. Then there’s the hardware for running all these great tools.

You also need to carefully consider what types of clients you want to attract to the practice, what services they will provide and the fee structure. Next, it’s a trip to a designer/printer to get a logo designed and letterhead and other statio-nery made up. A good, but inexpensive, website designer will be needed to make a presence on the Internet. And this is all before recruiting the first client.

TRY To BE dIFFERENTWhen the doors finally open, you must be very specific about the type of client with whom you want to work. Otherwise, you will probably wake up one day, 20 years will have gone by and you will have ended up, like many frustrated practitio-ners, with a practice that has grown by default, rather than by design. You will be left wondering what happened.

Sit down before taking the plunge to consider the following questions about your potential clients:• Are they fun to work with?• Do they operate in an industry in

which you are knowledgeable?• Do they see the value you provide

them?• Do they pay their fees on time?• Do they make excellent referrals?• Are they receptive to ‘value-added’

services?Any accountant who has worked at an es-tablished firm probably understands why

Cookie-cutter approach simply won’t work passion, preparation and planning can help practitioners achieve success and happiness

By steve Mcintyre-smith

Building a practice based purely on the almighty chargeable hour is not the best way forward. of course it’s how we have seen others manage their own firms, but is there a better way? well, yes.

publicpracticeedifier

steve Mcintyre-smith is an inde-pendent consultant to the public accounting profession. he facilitates mergers and acquisitions between firms, recruits staff, and consults

on a wide variety of practice management and organizational issues including partner com-pensation, practice management and firm structure and profit-ability. he has a wide range of

training DvDs available at www.mcintyre-smith.com.

This article was originally published in the Bottom

line.– Editor

outlook 39

these questions are worth asking. If you don’t ask these questions in advance, you will end up taking on any client who happens to find you. This will lead to frustration in only a few years, guaranteed.

You’ll also want to consider the following three questions:• What can you be the best at in

your local marketplace?• What are you passionate about?• What can you do that will make

money for you?

By answering these questions as specifically as possible, you can begin differentiating yourself. Here’s an example.

Let’s assume that you have devel-oped a level of expertise in the construction industry, worked with some of the big names, understand the specific needs of these clients and have built a reputation in this field. So you as an accountant could be the best in your local area at helping construction clients.

Every entrepreneur needs to ask, ‘What am I passionate about?’ If you enjoy working with builders and have a passion for the industry, then you are on track to build a niche market for your firm. How can you make money? By helping construction companies manage their construction projects, dealing with the financing and cash flow planning and so on.

Potential clients are all con-stantly thinking ‘What’s In It For Me?’ The job of the practitioner, in all marketing materials, is to answer that single question. This is not a numbers business – this is a people business. As shocking as that may sound – given all the technical training accountants have done to get here – it is absolutely true.

The problem the profession has

is that it offers next to no train-ing in marketing, in teaching its members how to build referral net-works, develop good social skills for attending events and generat-ing business from them, and other marketing ‘secrets.’ We may find ourselves setting up our own firm or joining a partnership, often un-prepared for the role. Fortunately there are now resources, coaching, training and other tools available that you can buy just about any-where to help in these areas.

Building a practice based purely on the almighty chargeable hour is not the best way forward. Of course it’s how we have seen oth-ers manage their own firms, but is there a better way? Well, yes. If we invest in analysis tools, we are in a unique position. We can sit down with clients and show them how to build a better business. That is what most forward-thinking clients want from their advisor.

The great news is that you can bill for these types of services based on value rather than the time taken to provide the service. If we can bundle services to-gether, such as year-end financial statements, annual corporate and personal tax returns, quarterly ses-sions and an annual tax planning session for a fixed fee over the year – and get our clients to pay us monthly in advance – then we can set ourselves up to never need bank financing. And rarely would clients complain about fees.

Sound interesting? It should. By implementing these ideas from the very beginning, practitioners will offer a very different option for clients, and they will run a much more profitable, faster-growing and fun business for the rest of their days.

mandatory Electronic Filing Requirements Begin January 2013Beginning in January 2013, tax preparers who re-ceive payment to prepare more than 10 income tax returns in a year will be required to file the returns electronically. This new requirement applies to both T1 individual income tax and benefit returns and T2 corporation income tax returns for 2012 and subsequent tax years. Individual taxpayers and vol-unteers who do not charge a fee to prepare income tax returns for others are not required to register for an EFILE number. There is no cost to register as an electronic filer; however, to maintain ongoing eligibility, tax preparers must renew their electronic filer account each year. Tax preparers who do not comply with mandatory electronic filing may be charged a penalty. For further information, see the Canada Revenue Agency website.

Federal NPos and the New Canada Not-For-Profit Corporations Act The new Canada Not-for-profit Corporations Act (CNCA) provides for the phased in repeal of the Canada Corporations Act (CCA) and, specifically, replaces Part II of the CCA, the section that governs federal corporations without share capital, com-monly referred to as not-for-profit (NPO) corpora-tions. The CNCA was brought into force on October 17, 2011. It requires changes to governance and membership structures. Every NPO corporation (including charities) currently governed by Part II of the CCA will have three years to formally make the transition to the CNCA. This involves applying for a certificate of continuance by October 17, 2014 or facing possible dissolution. A corporation’s dissolu-tion based on failure to file the transition articles can still be eligible for revival under the CNCA.

Practitioners are advised to discuss the require-ments of the CNCA with their clients as soon as possible because directors of federally incorporated charities or NPOs will need to consider several key issues when making the transition. These issues are discussed in the December 2011 Not-For-Profit Organizations Director Alert, found in the Focus on Practice Areas section of the CICA website at www.cica.ca.

resources, courses and tools of the trade

practiceupdate

40 outlook

currentassetsVers 1E Sound Isolation Earphones These handcrafted earbuds use the natural acoustic qualities of wood and are available in either U.S. hardwood or bamboo. The in-ear pas-sive sound design blocks out up to 90 per cent of surrounding sound. They also boast an inte-grated microphone with both mute and play/pause controls. All in, this is a pretty nifty piece of gadgetry at a very reasonable price point. versaudio.com

Social media Shower CurtainIf this isn’t funny to you, it’s also pretty likely that your Facebook account hasn’t been updated in a while.thinkgeek.com

LG EA93 ultrawide monitorThis newly announced model is the first of its kind to boast a 21:9 aspect ratio, which equates to 29” of viewing area. Tech writers have been abuzz about this since the company first an-nounced the impending release a few weeks back. It’s been available in Korea since mid-October, and LG states that a global rollout will “follow soon.” Keep your eyes on the LG website for developments.lg.ca

Lifeproof iPhone CaseApple spends millions on R&D in efforts to slim-line their iPhone designs. All so the average user can then cram the device into a bloated

case. But this logic is clear for a device that’s both very expensive and easily shattered. The Lifeproof iPhone Case is a great alternative. It will vastly strengthen and protect your phone in a super-thin case. Best of all, it will even make the phone waterproof up to 6.6 feet. Pretty handy in a province where it rains 60 days in a row. lifeproof.com

Edifier e10 Exclaim 2.0 Speaker SystemFor an audiophile, digital music has long been a bit of a let down. Compressed file technol-ogy frequently removes the mid-range of songs, leaving them sounding flat compared to previous formats. These speakers reduce this problem through technology that better blends

By trevor hargreaves

>

>

>

$49.99

$39-$79 $99

$TBA

$21.99

>>

>>

>

>

outlook 41

digital signal processing. It’s a no frills desktop speaker system that improves the listening experience, and all for under a hundred dollars. edifier.us.com

oakley Airwave Ski Goggles These goggles will certainly make you feel like the James Bond of the slopes. They won’t assist with dispatching bad guys on snowmobiles or sipping champagne on a bearskin rug, but the internal readouts allow you to track jump analytics, elevation, speed and descent. They also feature a wristband remote control so you can adjust data on the slopes. There’s even an associated app that allows you to see incoming smartphone messages and calls via the data

display. Now if only they could also make get-ting up at 5 am to drive to Whistler a little easier.oakley.com

Swissvoice ePure Cordless Phone This is a post-modern refit of a classic design. As home phones go, this is a pretty swank little appliance. While clearly aesthetically pleasing, this cordless phone also comes equipped with very high sound quality and an eco “low radia-tion” mode. epure.swissvoice.net

distance Calculating Talking Golf CaddieThis palm-sized GPS unit tells you how far you

are from the green. It comes with a pre-loaded database of 35,000 courses and features a clear female voice. It also gossips about other members of the club and blames your swing on your club.hammacher.com

Kanex Pro doubleup 2.1A dual uSB Char-ger for iPad, iPhone and iPodNow here’s a great idea! As more and more de-vices start using USB ports for both connectivity and charging, there’s an increasing need for vacant USB ports. This simple but handy tool al-lows you to simultaneously charge two devices using a single outlet. amazon.com

As fall gives way to winter, we British Columbians find ourselves alternately ducking the rain and bundling up against freezing winds. In the face of such climatic adversity, a little gadgetry goes a long way to adding some panache to your daily activities.

$99

$39.99

$179.95

$599

>

>>

42 outlook

snapshotsTop: CGA-BC’s 457 new members for 2012!

Above, bottom left: Colin Lee, CGA, and Kelvin Lee, CGA, celebrate with their brother Steven as he becomes a CGA.

Above, bottom right (from left to right): Joshua Hayes; CGA-BC Chair Cindy Choi, FCGA; CMA Chair Patricia Kennedy, FCMA; CEO Gordon Ruth,

FCGA; Patrick Kennedy; Miki Hirahara; and CGA-Canada’s incoming 2013 Chair Pat Keller, FCGA.

Opposite, top left: CGA-BC Chair Cindy Choi, FCGA, gave each graduate a copy of the Oath of Obligation – and a high-five.

Opposite, top right: CGA-BC Student Advisory Group Chair Jo-Ann Johnston, CGA, and her hus-

band Bill Johnston enjoy the musical entertain-ment provided by the Ten Souljers at the 2012 Graduates’ Reception & Banquet.

Opposite, bottom left: 2012 Valedictorian Vivi Hau Ting Yeung, CGA, received the W. Curry Mc-Calpin Award and the Association’s Gold Medal for being the graduating student with the high-est overall average.

Convocation 2012

outlook 43

Top, centre right: Past-Chair Bruce Hurst, FCGA, proudly displays the CGA banner somewhere high up in the Himalayas.

Top right: Dr. Nedd showed CGA students how they can reduce stress and exam anxiety during his dynamic and interactive two-hour seminar this past October.

Right, second from bottom: The Honourable Naomi Yamamoto, Minister of State for Small Business, and CGA-BC Past-Chair Gordon Chan, FCGA, Partner with Chan Choi & Company Certified General Accountants in Victoria.

Bottom right (from left to right): MLA Kevin Krueger; Chair Cindy Choi, FCGA; Minister Naomi Yamamoto; and CEO Gordon Ruth, FCGA, at CGA-BC’s annual MLA luncheon.

Gravity? What gravity?

Stress? What stress?

Annual mLA Luncheon

44 outlook

partingshot

In each issue of Outlook, we profile a member or CGA student who is helping to build the CGA brand. This month we spoke with

Senior Financial Manager, Microsoft Corp.By Patrick Schryburt

tammy grant, Cga

Can you briefly describe your role with Microsoft? I manage the acquisition integration and subsidiary controllership for the Server and Tools Business division. In addition, I manage the Controls and Compliance team and oversee SOX pro-gram management. Audit issue management and contract reporting are also under my purview.

What do you enjoy most about your job? There are many amazing things about my role and every day is a new adven-ture. I enjoy the diverse people I interact with as I work with Microsoft’s global businesses. Being at the forefront of technology and developing innovative business practices is very inspiring; there are always opportunities to learn and grow.

Have you ever met Bill Gates? I have not met Bill yet, but I was hired by our current CFO, Peter Klein.

Mac or PC? Just kidding. tell us one thing that would surprise people the most about working for Microsoft.We have a great internal career planning program. Virtually all employees are given the opportunity to work on very diverse as-signments, called ‘stretch

assignments,’ that are typically outside their core area of expertise. This allows them tremendous opportunity to learn new parts of the business, and employees often do these assignments from an international subsidiary.

this year marked the 10th anniversary of the sarbanes-Oxley Act, which some praise as having improved inves-tor confidence and financial reporting reli-ability, while others see it as an unnecessary and costly intrusion in the management of corporations. What influence do you think sox has had since it was enacted?This is an interesting ques-tion. As a CGA and CIA, it is my perspective that the control framework pro-vides a foundation for the leaders of a corporation to focus on growing the business with the assur-ance that risk can be com-municated and managed. The cost of maintaining this foundational assur-ance is far lower than the losses from poor business practices. I believe SOX provides a more consis-tent and timely method of communicating across functions and up the management chain of organizations when something is broken.

outlook 45

What do you like most about accounting as a career choice?I enjoy accounting because it crosses all industries and business functions in every country. Numbers are truly an international language, and they can often bring order to a chaotic business problem. If the balance between finance and other divisions such as engineering, operations and sales is well understood, this will ensure accountants have input into the major decisions for the business.

Why did you choose CGa for your professional account-ing designation? I chose CGA because it was internationally recognized and because it provides a structured community for professional development throughout my career.

you recently attended a change management semi-nar delivered by the interna-tional institute for learning. What advice do you have for those who are faced with the challenge of leading their teams through change?I would ask a lot of questions to gather insight that can help to manage events and ensure the best possible outcome. It is also important that you have a team approach to setting expectations and accountability. In our environment, change is constant so we must develop skills that enable us to foresee change and navigate effectively.

Do you have a personal mantra? The saying “Stay calm and carry on” is never far from my mind.

What are your favourite hobbies?I enjoy adventures with my kids, travel, skiing and horse-back riding.

What’s the last good movie you saw? Good book you read?I love biographies of historical figures and anything that offers perspective on how people are using the latest technologies to enhance their lives. Recently there was an amazing four-part miniseries on the History Channel, ‘The Men Who Built America,’ which gave great insight into the building of a nation during the turn of the last century.

What’s the secret to achieving good work/life balance?If there is a secret I am not aware of it. I think the term is slightly overused, as it suggests that work and life are mutually exclusive. Every year, as my ca-reer and family grows, the com-plexity of communicating and scheduling priorities increases. I strive to keep my priorities in balance through goal setting and planning. Where there are constraints and unexpected cir-cumstances, I can be thought-ful about what the trade-offs will be. These things help me work through decisions with those who rely on me.

I enjoy accounting because it crosses all industries and business functions in every country. Numbers are truly an international language, and they can often bring order to a chaotic business problem.

1

THE PRI D

E OF ON

E

O

F ONE

1 OF O N E

Number of people following teen Canadian pop sensation Justin Bieber on Twitter:

30,481,811New Twitter followers Bieber gains every second:

1

Number of people following Paul McCartney:

1,090,088Number of people fol-lowing Kenny Hamilton, Bieber’s bodyguard:

1,085,142

46

Cost to buy a pack of two Twinkies when they were first launched in 1930:

$0.05Number of Twinkies pro-duced annually before the brand’s manufac-turer, Hostess, asked a bankruptcy court for permission to close its 33 bakeries and 565 distri-bution centres:

500 million

Number of ingredients required to make a Twinkie:

39Number of those ingredi-ents that are dairy-based:

0Shelf life in days of a pack-age of Twinkies:

25

GET THEM WHILE THEY LASTBIEBER FEVER

HEALTH CARE CHECKUP

morethanNumbers

Sources: University of Calgary, School of Public Policy; Canadian Institute for Health Information; Hostess Brands; CNN Money; twitaholic.com (as at Nov. 21, 2012).

Portion of all health-care spending devoted to those over 65:

44%

Proportion of the Canadian population that is projected to be over 65 in 2022:

20%

Average spent annually for those 65 to 69:

$6,223Average spent for those 75 to 79:

$12,050 Average spent for those over 80:

$25,000

SILVER TSUNAMIProportion of the Cana-dian population that is over 65 years of age:

14%

Average spent annually on health care for each Canadian under age 55:

$3,000

Be the one to advise your clients...or someone else will.

The Robinson Group Inc.June Borlé: 604.874.4429 Fax: 604.873.5600

Toll Free: 1.888.880.2266 Email: june@trustedadvisor.ca

www.trustedadvisor.ca

Recent Revenue Canada (CRA) Federal legislation now allows business owners to fully tax deduct 100% of their healthcare costs as a business expense using a Private Health Services Plan.

Who qualifies?Anyone who owns a business of any size, employees and dependents. No health questions or age limits. This is not insurance..

What’s covered?100% of virtually all dental and medical expenses. Visit our websitewww.trustedadvisor.ca for a complete list

What’s the cost?There is a one-time set-up fee plus applicable taxes. The additional cost is 10%administration fee plus applicable taxes, depending on which province you live in.

Who uses a Private Health Services Plan?Business owners who:

> do not qualify for group insurance or find it too expensive> find group insurance coverage too restrictive; i.e.; orthodontics> have sick child or spouse> want front of line treatment> want to write-off child support relating to healthcare expenses> large groups who have been struggling with significant cost

increases each year.

Healthcare Costs $1600 Healthcare Costs $1600

(3% of net income) Deduct $1500 Admin Fee (10%) $ 160

Available for credit $100 Tax-deductible total $1760

Tax Credit* $25 Tax Deduction$1760EXAMPLE:Net income of $50,000 per year with family medical expenses of $1600

*Based on a combined Federal and Provincial rate of 25%.

AcupunctureAlcoholism TreatmentAmbulanceAnesthetistAttendant CareBirth Control PillsBlood testsCatscanChinese medicineChiropractorCrownsDental TreatmentDental ImplantsDental X-raysDenturesDermatologistDetoxification ClinicDiagnostic FeesDietitianDrug AddictionTherapyEyeglassesFertility TreatmentsGuide DogHair TransplantHearing Aid andBatteriesHospital BillsInsulin TreatmentsLab TestsLaser Eye SurgeryLodging (away fromhome for outpatientcare)

MRINaturopathNursing Home (incl.board & meals)OpticianOral SurgeryOrthodontistOrthopedistOsteopathOut-of-CountryMedical ExpensesPhysicianPhysiotherapistPrescription MedicinePsychiatristPsychologistPsychotherapyRegistered MassageTherapyRenovations &Alterations toDwelling (for severe &prolongedimpairments)Special School Costsfor the HandicappedSurgeonTransportationExpenses (relative tohealth care)ViagraVitamins (if prescribed)WheelchairX rays

A partial list of qualified expenses:

Note: This is a partial list. All allowableexpenses must qualify as outlined in theIncome Tax Act

Certified General AccountantsWe’ve made Private Health ServicesPlans cookie-cutter simple!

Why are your clients doing thiswith their healthcare expenses?

When they could be doing this!

CGA-coverad-Jan2011_RobinsonGroup 14/01/11 8:25 PM Page 1

But it’s who you know that really counts

She came to us.

Shouldn’t you?

604-682-83671800 - 777 Hornby St., Vancouver

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