THE INSTITUTE OF CHARTERED ACCOUNTANTS

OF TRINIDAD & TOBAGO

ICATT NewsApril- June 2010April- June 2010

What’s inside? President’s Greeting

Anthony PierrePresident

More thoughts on IFRS for SMEs

ICATT hosts consultation meeting on

Draft Occupational Pension Plan Bill

ICATT 40th Annual AGM Highlights

Applying for a Practising Certificate:

What you should know

Did You Know...

Save the date: ICATT Fun Day, Seminar

& Gala ceremony

Thanks from Haiti: FEEL letter to ICATT

What are International Public Sector

Accounting Standards and why do they

matter?

Updated ICATT Calendar of CPD Events

2010

Student Corner: Educating students on

the query process

40th Anniversary logo & Media

campaign highlights

Accessing your online ICATT account

Update of Rules & Regulations

An Immortal Animal

Issue No. 2

Dear Members,

I extend thanks to my fellow council members on re-election as ICATT President for another term at

the first council meeting following our 40th AGM and I look forward to another year of serving you

at the helm with the able support of my council colleagues.

There are several priority items on the agenda for 2010. They are:

• Review of Rules & Regulations: the initial draft was sent out for feedback prior to our AGM.

At the AGM I made a presentation on the critical areas of change in the revised Rules and

Regulations and promised that a committee will be formed to consider transition provisions and

the implications of adopting the revised Rules and Regulation. I am pleased to report that the

committee was formed and held its first meeting on April 7, 2010. The Committee will report to

Council at its scheduled meeting on June 9, 2010. Once Council accepts the Committee’s Report it

is intended to have the revised Rules and Regulations adopted at an extra-ordinary general

meeting at a date to be announced, but not later than July 31, 2010. Inside this issue you can review

the overview of the major aspects of the revised Rules and Regulations I presented at our AGM.

• Review and update of our Strategic Plan: Another major activity carded for 2010 is the review

and update (if necessary) of our strategic plan. The existing version was developed in 2007 with a

three (3) year planning horizon. It is imperative that we review the Plan in light of changing

circumstances in the economy, new and revised legislation affecting the financial services sector

that impacts on our members and a more rigid regulatory framework.

• 40th Anniversary Activities: This year we are celebrating our 40th Anniversary and several

activities are planned throughout the year. Included in the planned activities are an ICATT Fun Day

in July 2010 and a major seminar in October 2010. A gala black-tie ceremony in October 2010 will

seal the year’s celebration. More detailed information is available inside this issue.

• Continued Engagement of members, students & stakeholders: The Institute will continue on

its thrust of stakeholder engagement as we seek to fulfil our mandate of development of the

accountancy profession in Trinidad and Tobago. I encourage our members to become more civil

minded and seek to add value to the communities you serve. To our student population I remind

you that you are our future; continue to strive for excellence in your studies and build character –

you will need it in your career.

I encourage all of you to exercise our civil duty when called upon to do so at the forthcoming general election on May 24th. It is a right that many have made possible through the ultimate

sacrifice, let us honour their sacrifice.

I look forward to another year of

serving you at the helm with the able

support of my council colleagues.

ICATT NewsApril-June 2010

2

... any SMEs

that will be

presenting

quarterly

�nancial

statements

on a

comparative

basis for �rst

quarter 2011,

should

already know

what

changes

need to be

introduced in

advance.

Who is a Practising Member?A Practising Member is a quali�ed accountant who has met the required period of ‘approved practical experience’ in accordance with the rules of ICATT. All practising members and member �rms are subject to ‘practice monitoring’ which is a quality assurance review to ensure compliance with International Financial Reporting Standards and International Standards of Auditing. A practising member is the only one authorized to issue an audit opinion on �nancial statements.

Eligibility for a Practising Certi�cate from ICATT includes: * 2 years ICATT membership* 2 years practical experience under an approved supervising principal

Please note that all applications are reviewed by the Membership Committee, however these requirements are subject to change under the proposed rules and regulations.

Applying for a Practising Certi�cate: What you should know

More thoughts on IFRS for SMEsBy Ruthven Jack, ICATT Council Member

In February of this year ICATT formally announced that Trinidad and Tobago was adopting International Financial Reporting Standards (IFRS) and by extension IFRS for SMEs. The signi�cance and relevance of this decision largely went unnoticed to many persons in the business world simply because most people are not aware of its impact on business after it is fully adopted. The new standard is available for use in the presentation of �nancial statements for current and prior periods.

How does 2010 equal 2011? Ideally January 1, 2010 represents the �rst time data was collected in accordance with IFRS for those organizations with a �scal year ending December 31, 2009. January 2010 has come and gone, thus any SMEs that will be presenting quarterly �nancial statements on a comparative basis for �rst quarter 2011, should already know what changes need to be introduced in advance.

For any entity that will be adopting IFRS for SME’s, information should be gathered for 2010 in accordance with full IFRS, or IFRS for SME’s. Financial reports prepared using IFRS for SME’s will be required for the �rst quarter of 2011 and will include 2010 comparative information. If this is not done for each of the quarters prior to the previous year, reporting entities will be required to have both done in the initial year of �rst time adoption.

In order to assist readers in understanding the impact of IFRS, one must �rstly understand the impact on the business as a going concern. There are speci�c steps that must be undertaken by every business in order to be fully compliant. Here are some basic guidelines that can assist small businesses in �rst time adoption.

1. Conduct an IFRS impact assessment: This will let you know what level of impact the new reporting standards will have on your future 2. Identify the key due dates for the �rst �nancial statements: It is important to note that for those businesses whose year-end is not December 31st, they will have ‘additional’ time (which is the number of months between December and the month of their actual �nancial year-end).3. Identify the di�erences between the previous accounting policies and those that IFRS for SME’s requires: and select the accounting policies to be applied.4. Apply the �ve mandatory exemptions to retrospective application and determine whether information exists, if a decision is taken to early adopt.5. Consider whether to apply any of the 13 exemptions from mandatory retrospective application6. Fully consider the new rules for recognition, de-recognition and reclassi�cation.7. Prepare an opening balance sheet at the date of transition to IFRS

The main justi�cation for the introduction of IFRS for SMEs is to ensure that the users of �nancial statements which include customers, bankers, credit rating agencies and vendors have consistency in the form and content of all �nancial statements.

ICATT NewsApril- June 2010April- June 2010

Updated ICATT Calendar of CPD Events 2010N.B: Dates, Venues, presenters and costs are subject to change

All Costs are VAT Inclusive.

3

On Friday March 19th 2010, ICATT hosted an interactive session with the local institutions responsible for the administration of Pension Plans in Trinidad & Tobago to discuss the draft Occupational Pension Plan Bill issued by the Central Bank in late December 2009.

Presenters included: Wendy Ho Sing – DeputyInspector of Financial Institutions; James Camacho – Vice President of ATTIC & Robert Alleyne- Partner, KPMG who also represented ICATT.

The bill contains provisions which can have a major impact on all the stakeholders managing these plans and the recommendations which came out of the meeting are to be presented to the Central Bank.

ICATT hosts consultation meeting on Draft Occupational Pension Plan Bill

Did You

Know...

ICATT will celebrate its 40th Anniversary as an

Institute on September 17th

2010?

ICATT was formed by an

Act of Parliament in 1970.

From L-R: James Camacho – Vice President of ATTIC & Robert

Alleyne- Partner, KPMG & Wendy Ho Sing – Deputy Inspector of

Financial Institutions at the meeting.

April 2010 April 15th 2010 1 day Tax Workshop Rupert Gooding & Nassim Mohammed, Ernst & Young Services Ltd Arthur Lok Jack Participant Cost ($1725.00/ $1955.00) April 27th 2010 Joint CMA/ICATT IFRS Workshop and Panel Discussion Presenter: Karine Benzacar Hyatt Regency Payment Details: Please log in to (www.cma-caribbean.com) to access registration form for online payments: (Regular Fee: USD $295.00 CMA & ICATT Members USD$280.00) April 28th 2010 REPEAT – Tax Workshop Rupert Gooding & Nassim Mohammed, Ernst & Young Services Ltd Arthur Lok Jack Participant Cost ($1725.00/ $1955.00)

May 2010 One day technical workshop Local Presenters Venue TBD

June 2010 I day IFRS Workshop

Local Presenter Arthur Lok Jack Participant Cost ($1380.00./$1610.00)

July 2010 July 15th 2010

ICATT/ACCA Joint Event Critical Thinking - 1/2 Day Workshop Nazeer Sultan Arthur Lok Jack Participant Cost ($920.00/$1035.00)

August 2010 NIL

September 2010 Joint Event Local or Foreign Presenter Venues TBD Participant Cost ($1725.00 /$1955.00)

October 2010 Accountants’ Week - 2 Day Seminar/ Gala Dinner/ Recognition Ceremony

November 2010 IFRS for SMEs Update and Recap Haseeb Mohammed Venues TBD Participant cost ($1380.00/$1610.00)

1 day Tax Workshop Venue TBD Participant Cost ($1725.00/ $1955.00)

December 2010 NIL

ICATT 40th Annual AGM Highlights ICATT NewsApril- June 2010April- June 2010

4ICATT hosted its 40th Annual General meeting on March 24th 2010 at the Hotel Normandie, POS. Kyle Rudden & Sean Ramirez were re-elected to Council and Peter Gittens & Derek Mohammed were appointed as new members. We extend a heartfelt thanks to former longstanding Council members, Mr. Bob Gopee and Garvin Francis Lau and congratulations to the recent appointees. The event also featured a new member recognition ceremony for the period November 2009 to early March 2010; an update on proposed changes to ICATT’s Rules and Regulations & 40th Anniversary plans. The session culminated with a cocktail reception as part of our ongoing networking opportunities for members.

Derek Mohammed, CA, ACMA

*ICATT Member since: 2001*Appointed to Council: 2010*Partner, Deloitte & Touche, Trinidad & Tobago

Kyle Rudden, CA, FIA, FSA, FCCA, ACAS, ACIB

* Appointed to Council: March 1992* ICATT President: 2002-2005* ICATT Member since: 1989* Managing Director, KR Services Ltd.

Sean Ramirez, CA,FCCA,ACIB

*Appointed to Council: March 2002*ICATT President: 2007-2009*ICATT Member since 1998*Partner, PricewaterhouseCoopers

Peter Gittens, CA,FCCA

*ICATT Member since: 1994*Appointed to Council: 2010*Executive Director, Ernst & Young, Trinidad & Tobago

Above: Members review the 2009 Annual Report

ICATT COUNCIL FOR THE TERM 2010 – 2011

Anthony Pierre, President, CA, FCCA, CFC

*Appointed to Council: 2002 *ICATT President: 2009-present*ICATT Member since 1989*Principal, Anthony P. Pierre & Co. Chartered Accountants

Andrew Tom, Vice President, CA, FCCA

*Appointed to Council: 2006*ICATT Member since 1996*Assurance Partner, Ernst & Young, Trinidad & Tobago

Angela Lee Loy, CA, FCCA

*Appointed to Council: 2000*ICATT President: 2005-2007*ICATT Member since 1978*Managing Director, Aegis Business Solutions Ltd.

Marlene Murray, B.Sc., M.Sc., CA, CFA

*Appointed to Council: 2009*ICATT Member since 2002 * Advisor to the Minister in the Ministry of Finance

Rudranand Maharaj, CA, FCCA

*Appointed to Council: 2009*ICATT Member since 1997 *Managing Partner of Maharaj Mohammed & Co. Chartered Accountants

Earl Wilson, CA, FCCA, MBA (Financial Services)

* Appointed to Council: 2009* ICATT Member since 1981 * Managing Director, Business Equipment and Interiors International Ltd. (BEI)

Marie-Suzanne Borely, B.Sc., CA, FCCA

*Appointed to Council: 2009*ICATT Member since 2000* Senior Manager, Finance and Accounting, Central Bank

Ruthven Jack, CA, CMA

*Appointed to Council: 2009*ICATT Member since 1989 * Principal Consultant, Ruthven Jack & Associates

Richard Roach, CA, FCGA

*Appointed to Council: 2003*ICATT Member since 1998 *Managing Director, Irwin Services Ltd.

Appointees

Re

Appointees

New

What are International Public Sector Accounting Standards and why do they matter?

ICATT NewsApril- June 2010

5

International Public Sector Accounting Stan-dards (IPSAS) are a set of accounting stan-dards which could change the way that residents see how their government is run and in how it spends taxpayers’ money. As it stands, many regional Governments are considering whether to adopt International Public Sector Accounting Standards (IPSAS).

Already used in one form or another in more than 80 countries, IPSAS are based on Inter-national Financial Reporting Standards for private and commercial businesses, but they are written to take account of the special characteristics of the public sector and the speci�c issues which it faces. That means they deal with issues that commercial businesses do not have to consider.

For example, as a result of the recent global �nancial crisis, governments have extended credit to banks, guaranteed the liabilities of banks and in some instances have assumed control of banks. As they are required to be truly publicly accountable because they will have raised that money from tax or business rates, public sector bodies must therefore report their income and outgoings to very high standards – which is where IPSAS comes in.

By adopting IPSAS, regional Governments and the relevant populations should bene�t. The new standards should help to improve the quality of �nancial information for the user of the accounts – so that anyone who wants to �nd out where public money has been spent should �nd information a lot easier to come by. The standards will help to harmonise �nancial information around the globe and eventually will lead to a situation where it is possible to compare government

spending and �nancial management on a like for like basis – as they will be judged to the same set of standards.

Equally the standards will improve transparency – the users of the accounts will be better informed on government department’s performance and spending, and whether they- and in turn the taxpayers – are getting value for money. That in turn, should improve decision making and management control where it is needed.

The standards are the responsibility of the International Public Sector Accounting Standards Board (IPSASB), which is part of the International Federation of Accountants. It comprises of 18 members from around the world, and its job is to issue standards which help in the preparation of general �nancial statements in the public sector, promotes the convergence of these standards with international �nancial reporting standards and, publishes guidance which is relevant to the public sector.

As with the adoption of any new standards there will be challenges. Not least will be the fall out from the credit crisis – which has increased the pressure on the public sector to be more accountable and more transparent in its �nancial dealings. While there will be more pressure and potentially more headlines as a result of the greater transparency, the bene�ts should be considerable. Despite the fact that the implementation of any quality fv standard will have its challenges, it is hoped that the bene�ts would outweigh the costs and the preservation of the public interest would play a signi�cant role in its acceptance and subsequent implementation.

By Brenda Lee Tang, Head of Corporate Development, ACCA Caribbean

Thanks from HAITI... Want to advertise with us? We want to hear from you...

Contact us at oneika.bushell@icatt.org or call us at623-8000 ext. 231

ICATT survey Membership updateThe feedback is coming in but we still need to hear from more of you. You’ll have your chance when we re-issue an automated e-survey. Stay tuned for details. Thanks are extended to those persons who provided feedback.

Important dates to remember…* IFRS for SMEs Workshop CMA/ICATT, April 27th

* Taxation Workshop- Repeat, April 28th

* ICATT Technical Workshop, May 2010

* ACCA/ CAT Exams, June 7th-16th

* ICAC Annual Conference, Bahamas, June 24th-26th

* ICATT Fun Day, July 17th

ICATT NewsApril- June 2010

6

Students’ Corner Good luck to all students writing exams soon! Here are some things to remember

REGISTRATION DEADLINE – APRIL 15TH 2010

REMEMBER TO...* Check your examination entry form carefully before submitting draft* Ensure that you have chosen the correct papers and stream* If in doubt print and keep a copy of the examination entry form through my acca on www.accaglobal.com.

TWO WEEKS BEFORE EXAMINATION DATES: (WEEK OF MAY 24 – 28TH 2010)* Check your examination docket to ensure that you are entered for the correct papers.* Familiarise yourself with the location of the examination venue.* Contact us if you have not received a docket yet by this date or a copy can be printed through my acca on www.accaglobal.com.

ON THE EXAM DAY* Remember to walk with your student registration ID Card* Remember to walk with your examination docket* Wear suitable clothing for the examination hall (sweater, jacket etc)* Walk with non –solar calculators.* Remember to walk with additional pens and pencils.* Please speak to the Chief Supervisor or Invigilators for any questions* DO NOT ENTER THE EXAM ROOM WITH A MOBILE PHONE ( you will be disquali�ed if it is found on you)* Remember to say a prayer and be con�dent as you write your exams.

BEST OF LUCK!!!

Accessing your ICATT online accountWe’re glad that we can o�er you the conveniece of making payments online however if you have never accessed your online account here’s how: Go to the Member/ Students login area (the bottom, left side of the icatt homepage Click on the Member type link e.g. MNP, MP etc. Click on the Welcome Guest link Scroll down and type in your full email address in the username tab AND in the password tab (you are typing your email address in twice)N.B. This must be the email address you gave us on registering with ICATT. If you can’t recall, contact us right away to verify Once you gain access we encourage you to change your password to one can remember!

Apart from making payments you can also update contact info.

After this date ACCA will accept fees Online ONLY (NO PAYMENT IS MADE VIA DRAFT FOR LATE FEES)Late entry open to students online :- 16th April 2010Late entry closed to students online :- 8th May 2010

Investigation Disciplinary Appeals

COUNCIL

PROPOSED ICATT ORGANISATIONAL CHART

Appointments LicensingOther

Committees

4 members of council

No Council Member

No Council Member

No Council Member

No Council Member

Council Members eligible

to serve

ICATT NewsApril - June 2010

7Update on ICATT’s Rules & RegulationsBelow is an outline of the presentation made at ICATT’s AGM on the proposed changes to ICATT’s Rules & Regulations by Anthony Pierre, President. It touched on all aspects of ICATT’s operations, CPD requirements & Committee Formation. The next steps are the formation of a Rules & Regulations committee to discuss its implications and transistion and an extra-ordinary general meeting to adopt the new rules.

Objectives of Changes To The Rules & Regulations• Compliance with IFAC’s Statement of membership obligations• To bring our Rules in line with International best practice

Code of Ethics based on IFAC 2009 version

Additional Requirements for Practising Certi�cates• Professional Indemnity Insurance• Fitness & Propriety• Practice Continuity• Firms, not individuals, to be licensed to audit• Audit firms (Company) must be controlled by qualified persons N.B. Wider de�nition of Public Practice to include accountants

CPD IFAC Complaint Model • Annual Declaration• Risk based approach to monitoring• Strike off for non compliance• 40 hours of which 21 hours must be verifiable

Investigation & Discipline• No involvement of Council members in investigation and discipline process• Committee members to be appointed from a panel• 8 members• No Council Member • At least one lawyer Appointments Committee• 4 Members of Council responsible for appointing Investigation, Disciplinary, Appeals and Licensing• No Council member can serve on above committees.• To appoint Chairman & Deputy Chairman of Investigation Committee for 3 years• Appoint a panel of at least 20 persons who will be eligible to serve on: Disciplinary, Appeal and Licensing• No member of Council eligible to serve on Investigation Committee or Panel for 3 years after demitting office

Disciplinary Committee • No Council Member• Quorum 4 persons • At least one Lawyer • At least two non accountants • Non accountants in majority Appeal Committee• No Council Member• Quorum 4 persons • Chaired by a Lawyer • At least one non accountant and one accountant• Non accountants in majority

Licensing Committee• To review and approve applications for Practicing• Certificates• To monitor Practice Reviews o No Council Member o Quorum 4 persons o 1 Lawyer at least 2 non accountants o Non accountants in majority

Investigation Other Commitees

8 MembersChairman + Vice ChairmanCouncil Members1/4 shall be non-accountants

8 MembersChairman + Vice ChairmanCouncil Members

Disciplinary Appeals

COUNCIL

No member shall be a member on both the Investigation & Disciplinary Committees

Neither the President or Sole Vice President shall be a member of Investigation & Disciplinary Committees

The Chairman and Vice Chairman shall be from among council

President and Vice President can serve on the Appeal Commitee

EXISTING ICATT ORGANISATIONAL CHART

8 MembersChairman + Vice ChairmanCouncil Members1/4 shall be non-accountants

8 MembersChairman + Vice ChairmanCouncil Members1/4 shall be non-accountants

A Digression: The world's only ‘immortal’ animal

The turritopsis nutricula species of jellyfish may be the only animal in the world to have truly discovered the fountain of youth. It’s capable of cycling from a mature adult stage to an immature polyp stage and back again and there may be no natural limit to its life span. The key lies in a process called transdifferentiation, where one type of cell is transformed into another type of cell. Some animals can undergo limited transdifferentiation and

regenerate organs, such as salamanders, which can regrow limbs. Turritopsi nutricula, on the other hand, can regenerate its entire body over and over again. Researchers are studying the jellyfish to discover how it is able to reverse its aging process. Because they are able to bypass death, the number of individuals is spiking. They're now found in oceans around the globe rather than just in their native Caribbean waters.

ICATT NewsApril - June 2010April - June 2010

8

Press Campaign* We will embark on a press campaign of ‘strip advertisements’ featuring ICATT’s code of ethics which are the integral elements of any stakeholder relationship

* The campaign will also position the Institute as the authority on the Accountancy ProfessionThe ‘watchwords’ of the code are to be entrenched among mem-bers, students and stakeholders

* Campaign Period: April- December 2010 in the 3 daily newspapers

We will officially celebrate our birthday on September 17th 2010! However we have a series of activities planned for the year...

40th Anniversary Activities

Logo & ThemeOur 40th Anniversary theme, “Committed to Excellence”

reinforces ICATT’s Mission & Vision

ICATT Fun Day* Saturday, July 17 2010* WASA Sports Grounds* 10 am- 4pm * Wind ball cricket matches for prizes* “All Fours” Competition* Bring your cooler* Karaoke* Food & Drinks

1 & a half day seminar and Gala dinner (signature event)* On Thursday, October 14th & Friday October 15th there will be a day and a half seminar with international, regional and local presenters and a cocktail reception on Thursday evening. * On the evening of Friday, 15th October 2010, ICATT will host its 40th Anniversary Gala ceremony. * Replaces traditional Accountants Week * Regular technical session will take place throughout the year for members to meet their CPD requirements * HYATT Regency, POS* Attendance Costs: Conference only TT$2,000 plus VAT ($2,300) Dinner only TT$ 800 plus VAT ($920) Seminar & Gala package TT$2,500 plus VAT ($2,875)

Community Initiative* A team building exercise among members and a charity of choice to take place in the 2nd quarter of 2010. Stay tuned for details.

40th Anniversary Events

We encourage you to take note of these important dates in the Institute’s calendar and come out and show your support.