News and views for members – February/March 2018

The Supreme Court of Canada is taking a second look into the Deloite vs. Livent case, while new mutual recognition agreements have come into effect.

SUPREME COURT RULING

Livent vs. Deloitte decision

Canada's accounting profession is reviewing the Supreme Court of Canada’s recent 4-to-3 decision in the Deloitte vs. Livent case to understand what it means for auditors and the business community. Deloitte was found to be negligent in its auditing of Livent’s 1997 financial statements, but not for its approval of a press release and comfort letter to investors. CPA Canada respects the decision of the courts and is studying the ruling so it can fully assess the information. http://www.cpacanada.ca/supremecourt

 

DATA DIVING

Balanced federal budget and tax reform

The latest CPA Canada Business Monitor (Q4 2017) shows that setting a target date for a return to balanced federal budgets and a review of the country's tax system are endorsed by professional accountants in leadership positions.


Agree the federal government should set a target date to return to balanced budget  75%
Agree a comprehensive review of Canada’s tax system is now required  71%
Are optimistic about Canada’s economic outlook  48%
Say the top challenge to economic growth is protectionist trade sentiments in US  29%


Source: The CPA Canada Business Monitor Q4 2017 study was conducted by Nielsen from November 29 to December 18, 2017. Emailed surveys were completed by 377 of 4,676 identified by CPA Canada as holding senior positions in industry (CFOs, CEOs, COOs and other leadership roles). The response rate was 10%, with a margin of error associated with this type of study ±5.0%, with a confidence level of 95%. www.cpacanada.ca/businessmonitor 

 

NEW MRAS

New RMAs for CPAs

Effective January 1, several reciprocal membership agreements (RMAs) came into effect between all Canadian CPA bodies and various international accounting bodies. Under these RMAs, Canadian CPAs may now be eligible to qualify for accounting credentials in the following countries: Ireland, Scotland, South Africa, Australia and New Zealand. Learn more at http://www.cpacanada.ca/

 

HOLIDAY SPENDING

Paying down debt a priority for Canadians

The 2017 CPA Canada Holiday Season Spending Monitor revealed that, on average, the amount Canadians planned to spend during the holiday season was down 18% from the previous year. This might be due to the fact that 69% of those surveyed listed debt reduction as a high or medium priority. Learn more at http://www.cpacanada.ca/holidayspending

 

BRIGHTSPACE/D2L UPDATE

CPA Canada’s online learning gets a facelift

Brightspace (D2L), CPA Canada’s online learning environment, now has a redesigned layout and dynamic interface that will allow users to access their course content from desktops, laptops, tablets and smartphones. The new responsive design features a cleaner, uncluttered look, while maintaining all previous functionality and tools.

QUOTE

“Strong corporate reporting enhances trust, enhances accountability, and helps protect the public interest”

—Joy Thomas, president and CEO, CPA Canada