Canadian accounting profession

Canada was the second nation in the world to formally organize its accounting profession, after the United Kingdom, but it occurred in a fragmented manner by both locality and specialty. It would only begin to experience significant consolidation from 2012 onwards.

After some controversy in the first part of the 20th Century, it has been generally agreed that regulation of the Canadian accounting profession falls within provincial jurisdiction over matters of a local and private nature,[nb 1] as well as under the provincial education power with respect to training for achieving such professional qualifications.[1]

Timeline of Canadian accounting bodies

Accredited Public Accountant
CSCA[a 1]
Registered Industrial Accountant
│
1860
│
1880
│
1900
│
1920
│
1940
│
1960
│
1980
│
2000
│
2020
  1. ↑ Canadian Society of Cost Accountants

Creation of different specialties

Chartered accountants

Organization of provincial societies

Demand for trained accountants arose as early as the 1840s, when the first Canadian professional accounting firms were organized in Toronto and Montreal.[2]

The Association of Accountants in Montreal was organized as the first accounting organization in North America in 1879[3] (and only the fifth such organization in the world),[4] and was incorporated by an Act of the Legislative Assembly of Quebec.[na 1] Ontario would follow several weeks later with the formation of the Institute of Accountants and Adjusters of Ontario,[3] which was later incorporated as the Institute of Accountants of Ontario in 1883 under the direction of E.R.C. Clarkson, one of the founding members of Clarkson Gordon & Co, and a key member in the growth of the accounting and insolvency consulting industry in Canada. E.R.C. Further acted as a frequent advisor to the Canadian Senate in regard to the banking committee.[na 2][5] It was reconstituted as the Institute of Chartered Accountants of Ontario ("ICAO") in 1911.[na 3]

As the AAM tended to have an anglophone membership, the Institute of Accountants and Auditors of the Province of Quebec was later incorporated to service growing demand within Quebec's francophone population.[2][na 4] In 1919, the AAM began to offer admission for members of the IAAPQ.[6]

Manitoba would be the third province to organize its chartered accountants, and it would later be instrumental in organizing similar professional bodies in British Columbia, Alberta and Saskatchewan.[7]

Nova Scotia organized in 1900,[na 5] followed by New Brunswick in 1916[na 6] and Prince Edward Island in 1921.[na 7] The latter two bodies were organized in an irregular manner compared to those of other provinces,[lower-alpha 1] which resulted in their qualifications not being recognized by Nova Scotia until 1925,[10] and by Quebec and Ontario until 1926.[11]

Outside Canada, the Dominion of Newfoundland incorporated the Institute of Accountants in 1905,[na 8] but was pressured to revoke statutory protection of its designation the following year.[na 9] This was not reversed until Newfoundland joined Confederation in 1949.[na 10]

     = statutory protection of CA designation
     = organization without statutory protection
↓formation of DACA
↓DACA renamed as CICA
Association of Accountants in Montreal
SCAPQ[a 1]
Institute of Chartered Accountants of Quebec[a 2]
Institute of Accountants of Ontario[a 4]
Institute of Chartered Accountants of Ontario
Chartered Accountants' Association of Manitoba[a 5]
Institute of Chartered Accountants of Manitoba[a 6]
ICANS
Institute of Chartered Accountants of Nova Scotia[a 7]
ICABC[a 8]
Institute of Chartered Accountants of British Columbia
Institute of Accountants of Newfoundland[a 10]
Institute of Chartered Accountants of Newfoundland
Institute of Chartered Accountants of Saskatchewan[a 11]
Institute of Chartered Accountants of Alberta[a 12]
ICANB
Institute of Chartered Accountants of New Brunswick[a 13]
ICAPEI
Institute of Chartered Accountants of Prince Edward Island
│
1860
│
1880
│
1900
│
1920
│
1940
│
1960
│
1980
│
2000
│
2020
  1. ↑ Society of Chartered Accountants of the Province of Quebec: Loi modifiant la charte de l'Association des comptables de Montréal, S.Q. 1927, c. 101
  2. ↑ An Act to regulate the practice of accountancy and auditing, S.Q. 1946, c. 47
  3. ↑ Institute of Accountants and Adjusters of Ontario
  4. ↑ Only the designation "Fellow of the Chartered Accountants" ("FCA") was protected
  5. ↑ S.M. 1886, c. 66; reenacted as The Chartered Accountants' Association Act, R.S.M. 1892, c. 19
  6. ↑ S.M. 1913, c. 1; reenacted as The Chartered Accountants' Act, R.S.M. 1913, c. 29
  7. ↑ An Act to amend Chapter 154, Acts of 1900, entitled, "An Act to Incorporate the Institute of Chartered Accountants of Nova Scotia", S.N.S. 1913, c. 154
  8. ↑ Institute of Chartered Accountants of British Columbia: S.B.C. 1905, c. 59
  9. ↑ protection of "FCA" designation only
  10. ↑ statutory protection removed
  11. ↑ S.S. 1908, c. 55
  12. ↑ S.A. 1910 (2nd Sess.), c. 43
  13. ↑ S.N.B. 1930, c. 51
  14. ↑ Institute of Chartered Accountants of Yukon: S.Y. 1976 (3rd Sess.), c. 2
  15. ↑ Institute of Chartered Accountants of the Northwest Territories: S.N.W.T. 1979, c. 16

Attempt to nationalize the profession

Tensions erupted following a disciplinary hearing in 1890 held by the Institute of Accountants of Ontario into an audit conducted with respect to Confederation Life.[12] While the action itself affirmed the importance of auditor independence, it caused a rift in the IAO membership and the resignation of several prominent members of the governing Council in 1891.[12]

The early CA bodies, with the exception of the AAM, also started to relax their entrance requirements to allow the admission of accountants who were not in public practice.[13] An initial effort to create a national organization in 1901 was quashed due to local opposition, but this caused a concerted effort, sponsored by the AAM, to create one that would be restricted to practicing accountants.[13] As a result, the Dominion Association of Chartered Accountants ("DACA") was created in 1902, in an attempt to create a national status for the profession through direct entry of qualified applicants to membership.[na 11]

Ontario passed an Act in 1908 granting the ICAO exclusive rights to the CA designation,[na 12] and, on DACA's petition, the Governor in Council disallowed it in 1909, on grounds of federal paramountcy in having created a national body, as described in a memo by Minister of Justice and Attorney General of Canada Sir Allen Aylesworth recommending the measure.[na 13] A subsequent 1910 Act[na 14] was disallowed for similar reasons in 1911.[na 15] With the mediation of the President of the British Society of Incorporated Accountants at a meeting in Chicago, the ICAO and DACA leaders subsequently reached an agreement in which DACA would be reorganized as a federation of the provincial Institutes effective from 1909.[14][lower-alpha 2] The Act was subsequently passed again in 1911, with a concession granted to accountants who were members of DACA on December 16, 1909.[na 3]

DACA would become the Canadian Institute of Chartered Accountants in 1951.[na 16] It would expand internationally in 1973, when the Institute of Chartered Accountants of Bermuda was incorporated and subsequently obtained affiliation with the CICA.[16]

Certified general accountants

The creation of large business and governmental organizations increased the demand for accountants on their payrolls, which called for efforts to address their unique needs without the necessity of apprenticeships demanded by the CA firms.[2] The Canadian Association of Accountants was formed in 1908,[2] arising from a technical self-study group of accountants working at the Canadian Pacific Railway,[17] which led to the creation of the General Accountants Association in 1913.[lower-alpha 3][na 17] Despite initial assurances that its members would refrain from practicing public accounting, it began advertising examinations in that field in 1917, thus triggering conflicts with the CA bodies that would last for decades.[18]

Because of such protracted opposition, it was only in 1999 that the GAA was able to change its name to the Certified General Accountants Association of Canada.[na 18] Over the years, portions of its membership would be admitted into membership of other professional bodies, such as the admission into Quebec's Association of Accountants in 1920,[na 19] the CGA/CA merger in Quebec in 1946,[19] the CGA/CPA merger in 1949,[20] and the CGA/CPA merger in Manitoba in 1950.[20]

     = statutory protection of CGA designation
     = organization without statutory protection
CGAAPQ[a 1]
PCCGAQ[a 2]
OPCGLQ[a 3]
Certified General Accountants Association of British Columbia[a 8]
Certified General Accountants Association of Prince Edward Island[a 9]
Certified General Accountants Association of New Brunswick[a 10]
Certified General Accountants Association of Manitoba[a 11]
Certified General Accountants Association of Saskatchewan[a 12]
Certified General Accountants Association of NWT[a 13]
Certified General Accountants Association of Yukon[a 14]
Certified General Accountants Association of Alberta[a 15]
Certified General Accountants Association of Newfoundland and Labrador[a 16]
│
1860
│
1880
│
1900
│
1920
│
1940
│
1960
│
1980
│
2000
│
2020
  1. ↑ Certified General Accountants' Association of Quebec: Quebec Certified General Accountants' Act, S.Q. 1946, c. 89
  2. ↑ Professional Corporation of Certified General Accountants of Quebec: Professional Code, S.Q. 1973, c. 43, ss. 202-205
  3. ↑ Ordre professionnel des comptables généraux licenciés du Québec: Loi modifiant le Code des professions et d'autres lois professionnelles, L.Q. 1994, c. 40
  4. ↑ Certified General Accountants Association of Ontario; later merged with CPAAO (with exception of part of the Toronto branch)
  5. ↑ Certified General Accountants Association of Ontario re-established; reincorporated in 1957 with additional objectives relating to education
  6. ↑ Certified General Accountants Association of Ontario Act, 1983, S.O. 1983, c. Pr6
  7. ↑ Certified General Accountants of Ontario: Certified General Accountants Act, 2010, S.O. 2010, c. 6, Sch. A
  8. ↑ S.B.C. 1951, c. 2
  9. ↑ S.P.E.I. 1951, c. 64
  10. ↑ S.N.B. 1961-62, c. 93
  11. ↑ S.M. 1973, c. 38
  12. ↑ S.S. 1978, c. 6
  13. ↑ S.N.W.T. 1979, c. 14
  14. ↑ S.Y. 1983, c. 14
  15. ↑ S.A. 1984, c. C-3.5
  16. ↑ S.N.L. 1984, c. 27
  17. ↑ Certified General Accountants Association of Nova Scotia: Certified General Accountants Act, S.N.S. 1998, c. 10

Cost and management accounting: from CA possession to the creation of RIAs and CMAs

Towards the end of the First World War, several significant issues forced organizations to invest resources into the creation of cost accounting functions:[21]

In a move designed to prevent the newly-created General Accountants Association from moving into that field,[17] DACA created the Canadian Society of Cost Accountants ("CSCA"), with membership originally restricted to chartered accountants.[22]

The CSCA would initiate efforts to standardize education in cost accounting, and entered into an affiliation agreement with the US National Association of Cost Accountants in 1922.[23] When the CSCA tried to obtain NACA's educational materials at a more reasonable cost in 1926, NACA proposed a merger of the two organizations. This was rejected, and the affiliation was subsequently dissolved.[24] The Society began to issue "Certificates of efficiency" in 1927 to its graduates.[25][26]

In the 1930s, there would be internal tensions as to what areas of company accounting the CSCA should focus on, and, in 1939, members wishing to concentrate more on management accounting left to form the Controllers' Institute of Canada (later part of the Financial Executives Institute).[26]

When provincial societies began to be formed in 1941, the "Registered Industrial and Cost Accountant" ("RIA") was created for its members.[27][na 22] This initiative was generally accepted in most provinces, but there was resistance in British Columbia as the promoters of that effort were only CGAs and independent accountants.[28] It would pass only when the enabling Act specified that the RIA designation was available only to those members who were also CAs.[28]

The designation was simplified as "Registered Industrial Accountant" in some, but not all, provinces around 1967.[na 23] It would be replaced by the Certified Management Accountant ("CMA") designation beginning in 1976,[29] but the province-by-province implementation would be completed only in 1985.

     = Licentiate of the Cost and Management Institute ("LCMI")
     = Registered Industrial and Cost Accountant/Registered Industrial Accountant "(RIA")
     = Registered Management Accountant ("RMA")
     = Certified Management Accountant ("CMA")
  1. ↑ Cost and Management Institute: Loi constituant en corporation l'Institut de gestion industrielle et commerciale, S.Q. 1941, c. 95
  2. ↑ Society of Industrial and Cost Accountants of Quebec: An Act to amend the charter of the Cost and Management Institute, S.Q. 1948, c. 95
  3. ↑ Society of Industrial Accountants of Quebec: Loi constituant en corporation l'Institut de gestion industrielle et commerciale, S.Q. 1968, c. 111
  4. ↑ Professional Corporation of Industrial Accountants of Quebec: Professional Code, S.Q. 1973, c. 43, ss. 198-201
  5. ↑ Loi portant changement du nom de la Corporation professionnelle des comptables en administration industrielle du Québec et du titre de ses membres, L.Q. 1987, c. 17
  6. ↑ Ordre professionel des comptables en management accredités: Loi modifiant le Code des professions et d'autres lois professionnelles, L.Q. 1994, c. 40
  7. ↑ The Society of Industrial and Cost Accountants of Ontario Act, 1941, S.O. 1941, c. 77
  8. ↑ The Society of Industrial Accountants of Ontario Act, 1967, S.O. 1967, c. 129
  9. ↑ The Society of Management Accountants of Ontario Act, 1981, S.O. 1981, c. 100
  10. ↑ Certified Management Accountants of Ontario: Certified Management Accountants Act, 2010, S.O. 2010, c. 6, Sch. B
  11. ↑ S.A. 1944, c. 79
  12. ↑ S.B.C. 1945, c. 81
  13. ↑ S.B.C. 1977, c. 84
  14. ↑ S.M. 1947, c. 101
  15. ↑ S.S. 1948, c. 74
  16. ↑ S.S. 1978, c. 26
  17. ↑ S.N.B. 1950, c. 55
  18. ↑ S.N.B. 1977, c. 62
  19. ↑ Society of Industrial and Cost Accountants of Nova Scotia Act, S.N.S. 1950, c. 95
  20. ↑ An Act to amend Chapter 95 of the Acts of 1950, the Society of Management Accountants of Nova Scotia Act, S.N.S. 1983, c. 95
  21. ↑ The Industrial and Cost Accountants Act, 1951, S.N. 1951, c. 69
  22. ↑ An Act to change the corporate name of the Society of Industrial Accountants of Newfoundland, S.N. 1977, c. 9
  23. ↑ An Act to amend the Management Accountants Act, S.N. 1978, c. 62
  24. ↑ S.P.E.I. 1951, c. 34
  25. ↑ S.P.E.I. 1977, c. 52
  26. ↑ S.Y. 1975 (2nd Sess.), c. 2
  27. ↑ S.Y. 1983, c. 28
  28. ↑ S.N.W.T. 1982 (3rd Sess.), c. 17

Certified public accountants: the first CPAs

The first Canadian CPA designation arose from several parallel moves:

  • In Quebec, the Licentiate in Accountancy was first granted by McGill University in 1918,[30] which was granted statutory recognition as a professional designation in 1920.[na 24] It was subsequently replaced by "Certified Public Accountant" in 1927.[na 25]
  • In English Canada, the Society of Incorporated Accountants and Auditors was formed in 1918 and incorporated in 1919 by members of the GAA.[na 26] It would become the United Accountants and Auditors of Canada in 1920,[na 27] conferring the "United Accountant" ("UA") designation.[31][lower-alpha 4] It would later engage in a failed attempt to take over the GAA.[32]
  • In Ontario, the UAs (formed mainly from accountants and auditors working in government tax offices)[33] were successful in obtaining statutory recognition as the Association of Accountants and Auditors. The designation originated as LA (Licentiate in Accountancy) during 1926–1931,[na 28] changing to IPA (Incorporated Public Accountant) during 1931–1936,[na 29] before becoming CPA.[na 30]

The CPAs subsequently gained statutory recognition in most, but not all, provinces. Because of CA opposition in Nova Scotia, it was only able to use the designation of "Registered Public Accountant".[34]

The Quebec CPAs were forced to merge with the ICAPQ in 1946 upon the reorganization of the Quebec profession.[na 31] In 1962, the CAs and CPAs agreed to merge nationally, and the remaining provincial CPA bodies either dissolved or became dormant.[35]

     = Member of General Accountants Association
     = Licentiate in Accountancy
     = Incorporated Public Accountant
     = Certified Public Accountant
     = Registered Public Accountant
     = organization without statutory protection
     = organization dormant after CA/CPA merger
↓CA/CPA national merger
AAAO[a 3]
AAAO
Certified Public Accountants Association of Ontario
│
1860
│
1880
│
1900
│
1920
│
1940
│
1960
│
1980
│
2000
│
2020
  1. ↑ Association of Accountants: Loi constituant en corporation l'Association des comptables, S.Q. 1919-20, c. 118 (in French)
  2. ↑ Corporation of Public Accountants of the Province of Quebec: Loi modifiant la Loi des comptables, S.Q. 1927, c. 61 (in French)
  3. ↑ Association of Accountants and Auditors of Ontario
  4. ↑ The Manitoba Certified Public Accountants Act, 1950, S.M. 1950 (1st Session), c. 103
  5. ↑ An Act to Incorporate The Certified Public Accountants' Association of New Brunswick, S.N.B. 1951, c. 41
  6. ↑ Registered Public Accountants' Association of Nova Scotia: The Registered Public Accountants' Association Act, S.N.S. 1952, c. 128
  7. ↑ Certified Public Accountants Association of Newfoundland: The Certified Public Accountants Act, 1950, S.N. 1950, c. 35
  8. ↑ Chartered Accountants and Certified Public Accountants (Merger) Act, S.N. 1966-67, c. 42
  9. ↑ Certified Public Accountants Act Repeal Act, S.N.L. 2008, c. 39
  10. ↑ Chartered Accountants and Certified Public Accountants Merger Act Repeal Act, S.N.L. 2008, c. 40

Accredited public accountants

The "International Society of Commerce" ("ISC") was first noted in an advertisement in Hamilton, Ontario, as early as 1921,[9] and its members were conferred with the designation of "Accredited Public Accountant" ("APA"). The ISC, located in Winnipeg, formed the "Institute of Accredited Public Accountants" in 1938,[36] which was federally incorporated in 1946.[19][37] It initially attempted to organize a provincial institute in British Columbia in 1937, but failed to receive legislative approval.[36]

When Quebec consolidated the auditing profession in 1946, APAs in the province who had practiced accounting continuously from 1942 received statutory recognition in Quebec.[38] The APA designation later received statutory protection in New Brunswick, Manitoba and Saskatchewan.

An attempt was made to form a body in Ontario by way of private bill in 1949,[nc 1] but it was withdrawn at second reading on grounds advanced by the CA and CPA bodies that a public bill would be a more appropriate choice for action.[nc 2] That option was never subsequently pursued. Similar efforts to secure recognition in British Columbia and Alberta were also pursued at the time,[nc 2] but they failed as well. Provincial societies were later organized in British Columbia and Ontario in 1957.[39]

The APAs would later consolidate with other accounting organizations. They merged with the CPAs in New Brunswick in 1952, but other APAs revived the organization in 1961.[lower-alpha 5] Later efforts by other provincial bodies to merge with the CGAs proved to be more conclusive. The Ontario society, however, decided in 1963 to restrict its membership to those members who held public accounting licenses. As no future licenses would be conferred on APAs after 1962 as a result of that year's reorganization of the Public Accountants Council, it would gradually cease to exist over time.[35]

While the APA designation is not now recognized by any Canadian jurisdiction as a professional designation in active usage, the Canadian Institute of Accredited Public Accountants continues to exist,[37] in alliance with the Society of Professional Accountants of Canada.[40][41] The SPAC confers the APA designation as an honorary title to Registered Professional Accountants of distinction.[42]

     = statutory protection of APA designation
     = organization dormant after CGA/APA merger
     = organization dormant after CPA/APA merger
│
1860
│
1880
│
1900
│
1920
│
1940
│
1960
│
1980
│
2000
│
2020
  1. ↑ An Act to Incorporate the Institute of Accredited Public Accountants of New Brunswick, S.N.B. 1947, c. 166
  2. ↑ dormant when the majority of APAs agreed to join the CPAs
  3. ↑ Institute of Accredited Public Accountants of Manitoba: The Manitoba Accredited Public Accountants Act, S.M. 1950 (1st), c. 100
  4. ↑ repealed: The Private Acts Repeal Act, S.M. 1988-89, c. 16
  5. ↑ Institute of Accredited Public Accountants of Saskatchewan: The Accredited Public Accountants Act, 1977, S.S. 1976-77, c. 1
  6. ↑ repealed: The Certified General Accountants Amendment Act, 1998, S.S. 1998, c. 11

Creation of uniform accounting standards

From 1946, the chartered accountants took the initiative to codify generally accepted accounting principles and generally accepted auditing standards in Canada:[43]

  • DACA's Accounting and Auditing Research Committee began to issuing bulletins in 1946, setting out recommended standards of practice on accounting and auditing.
  • The CICA started the production of research studies in 1963 on topics of current interest to the profession.
  • The CICA Handbook was created in 1968 to consolidate the CICA's pronouncements. Its requirements would attain mandatory in 1975, through regulations issued under the Canada Business Corporations Act.[na 32]
  • The International Financial Reporting Standards and International Auditing Standards would be incorporated by reference in the Handbook, effective in 2011.
  • It would be renamed in 2014 as the CPA Canada Handbook.[44]

Licensing of public accounting

In addition to conferring exclusive rights to use specified designations on the members of the various professional bodies, most provinces have also required those who pursued public accounting to obtain a separate permit. The permit is issued by:

  1. a specified professional body, either with or without the supervision of a provincial agency;
  2. a provincial agency (which could be effectively dominated by a professional body), either generally or where a qualified accountant does not belong to a specified body (as in BC from 1973).[na 33][45]
     = permits issued by independent licensing board
     = permits issued by local professional bodies, under supervision of provincial agency
     = permits issued by local professional body
↓CA/CPA national merger
ICAPEI
CPAPEI
Public Accountants Council of the Province of Ontario[a 3]
PACPO[a 4]
Public Accountants Board of Nova Scotia[a 5]
Public Accountants Licensing Board (Newfoundland and Labrador)[a 6]
CPANL
ICAA[a 7]
ICAA, CGAA, CMAA[a 8]
CPAA
│
1940
│
1950
│
1960
│
1970
│
1980
│
1990
│
2000
│
2010
│
2020
  1. ↑ An Act to regulate the practice of accountancy and auditing, S.Q. 1946, c. 47
  2. ↑ An Act to amend the Professional Code and the Chartered Accountants Act in respect of public accountancy, L.Q. 2007, c. 42
  3. ↑ The Public Accountancy Act, 1950, S.O. 1950, c. 60
  4. ↑ The Public Accounting Act, 2004, S.O. 2004, c. 8
  5. ↑ Public Accountants Act, S.N.S. 1952, c. 14
  6. ↑ Public Accountancy Act, S.N. 1966-67, c. 45
  7. ↑ Chartered Accountants Act, S.A. 1987, c. 5.1
  8. ↑ Regulated Accounting Profession Act, S.A. 1999, c. R-12.3

Consolidation: Rise of the Chartered Professional Accountants (2012-)

Implementation by jurisdiction

The various provincial bodies were federated nationally in the following bodies:

After a failed merger attempt in 2004, the CAs and CMAs began new discussions in 2011, and invited the CGAs to participate.[46] While the three national bodies supported merger discussions, there was significant tension among their memberships, notably within the CAs,[47] and at one point the CGAs and CMAs in Ontario withdrew from talks because of concerns over the potential loss of their identity.[48] Proponents of the proposal argued that it would strengthen the influence, relevance and contribution of the Canadian accounting profession with domestic and international stakeholders and serve the public interest through common codes of conduct, disciplinary systems and licensing regimes.[49]

Quebec would be the first province to consolidate the profession in 2012.[na 34] This triggered a succession of similar moves in other jurisdictions, which became functionally complete in 2014 with CPA Canada as the umbrella organization,[50] but would be formally completed only in 2018:

CPA implementation by jurisdiction
Jurisdiction Enabling legislation Royal assent In force Designation in effect
 British Columbia Miscellaneous Statutes Amendment Act, 2014, S.B.C. 2014, c. 14 May 29, 2014 May 29, 2014[a 1] September 18, 2013 (CA)
September 20, 2013 (CGA)
November 9, 2013 (CMA)
Chartered Professional Accountants Act, S.B.C. 2015, c. 1 March 25, 2015 June 24, 2015[na 35][51]
 Yukon Chartered Professional Accountants Act, S.Y. 2016, c. 8 May 19, 2016 Interim board appointed June 17, 2016[na 36]
Act in force July 18, 2016[na 37]		 July 18, 2016
 Alberta Chartered Professional Accountants Act, S.A. 2014, c. C-10.2 December 17, 2014 July 1, 2015[na 38] July 1, 2015
 Northwest Territories 1st reading on March 12, 2018[nc 3][nc 4]
2nd reading on March 13, 2018[nc 5]		 on a day or days to be fixed by order of the Commissioner
 Nunavut 1st and 2nd readings on March 20, 2018[nc 6][nc 7] on a day or days to be fixed by order of the Commissioner
 Saskatchewan The Accounting Profession Act, S.S. 2014, c. A-3.1 May 14, 2014[nc 8] November 10, 2014[na 39][na 40] November 10, 2014
 Manitoba The Chartered Professional Accountants Act, S.M. 2015, c. 5

(C.C.S.M., c. C71)

 June 30, 2015 ss. 99-100,[a 2] 109-110[a 3] on June 30, 2015
s. 38(2)-(4)[a 4] on September 1, 2016[a 5]
remainder of Act on September 1, 2015[na 41]		 July 15, 2015[na 42]
 Ontario Chartered Professional Accountants of Ontario Act, 2017, S.O. 2017, c. 8, Sch. 3 May 17, 2017 May 17, 2017 November 1, 2012 (CA)
April 1, 2014 (CMA)
July 2, 2014 (CGA)[52]
 Quebec Chartered Professional Accountants Act, S.Q. 2012, c. 11 May 16, 2012 May 16, 2012 May 16, 2012
 New Brunswick Chartered Professional Accountants Act, S.N.B. 2014, c. 28 May 21, 2014 September 1, 2014 September 1, 2014
 Nova Scotia Chartered Professional Accountants Act, S.N.S. 2015, c. 5 May 11, 2015[nc 9] ss. 13, 14(2)-(5) and 15[a 6] on July 1, 2015[na 43]
remainder of Act on May 11, 2015		 July 1, 2015
Chartered Professional Accountants Act, S.N.S. 2015, c. 30 December 18, 2015 August 2, 2016[na 44][a 7]
 Prince Edward Island Chartered Professional Accountants and Public Accounting Act, S.P.E.I. 2014, c. 2 November 27, 2014[nc 10] April 1, 2015[na 45] May 1, 2014[53]
 Newfoundland and Labrador Chartered Professional Accountants and Public Accountants Act, S.N.L. 2014, c. C-10.1 December 16, 2014[nc 11] January 9, 2015 January 9, 2015
 Bermuda "Institute of Chartered Accountants of Bermuda Amendment Act 2014". Act No. 8 of 2014 (PDF).

[lower-alpha 6]

 March 26, 2014 April 11, 2014[na 46] April 11, 2014
  1. ↑ With respect only to authorization of the designation's use by members of the three BC accounting bodies
  2. ↑ Offences
  3. ↑ Interim title restrictions and transitional board
  4. ↑ Exclusive right to provide reserved public accounting services
  5. ↑ one year after proclamation of Act
  6. ↑ Use of legacy and protected designations; offences
  7. ↑ At which time the previous Act was repealed.

Federal recognition of the merger involved the amendment of various Acts to reflect the change of designation:

CPA recognition by the Parliament of Canada
Jurisdiction Enabling legislation Royal assent In force
 Canada Miscellaneous Statute Law Amendment Act, 2017, S.C. 2017, c. 26, s. 62 December 12, 2017[nc 12] December 12, 2017

Reservation of other designations and descriptions by jurisdiction

In addition to preserving the legacy CA, CGA and CMA professional designations (and thus barring them from use by other accountants), the following are also protected:

Protected phrases and designations by jurisdiction
Jurisdiction Identification as public accountant Protected heritage designations Protected descriptions
AAPA[a 1]ACA[a 2]APA[a 3]CPA*[a 4]GA[a 5]RIA[a 6]professional accountantpublic accountantauditorqualified auditoraccountantcertified accountantrecognized accountant
 British ColumbiaGreen tick[a 7]Green tick[a 8]Green tick[a 7]Green tick[a 9]Green tick[a 7]
 YukonGreen tick[a 8]Green tick[a 9]
 AlbertaGreen tickGreen tickGreen tickGreen tickGreen tick
 Northwest TerritoriesGreen tickGreen tickGreen tickGreen tickGreen tickGreen tickGreen tickGreen tick
 Nunavut
 SaskatchewanGreen tickGreen tickGreen tickGreen tickGreen tickGreen tick
 ManitobaGreen tick[a 10]Green tick[a 11]Green tickGreen tickGreen tick
 OntarioLPA[a 12][a 13]Green tickGreen tickGreen tick[a 14]Green tick[a 15]
 QuebecAuditor[a 16][a 17]Green tickGreen tick
 New BrunswickGreen tickGreen tickGreen tickGreen tickGreen tick[a 18]Green tickGreen tickGreen tickGreen tickGreen tickGreen tickGreen tick
 Nova ScotiaPublic Accountant[a 19]Green tickGreen tick[a 19]
 Prince Edward IslandGreen tick
 Newfoundland and LabradorLPA[a 12]Green tick[a 20]Green tickGreen tickGreen tick
 BermudaGreen tickGreen tickGreen tick
  1. ↑ Associate of the Accredited Public Accountants
  2. ↑ Associate of the Chartered Accountants
  3. ↑ Accredited Public Accountant
  4. ↑ Certified Public Accountant
  5. ↑ General Accountant
  6. ↑ Registered Industrial Accountant
  7. 1 2 3 Legacy Designations Regulation, B.C. Reg. 114/2015
  8. 1 2 or Certified Public Auditor
  9. 1 2 or the initials "PA"
  10. ↑ or Public Accountant
  11. ↑ or Certified Practising Accountant
  12. 1 2 Licensed Public Accountant
  13. ↑ required under PACPO Standard 17(4)(g)
  14. ↑ protected by virtue of the Public Accounting Act, 2004, S.O. 2004, c. 8
  15. ↑ in relation to the holder of an accounting designation, it does not extend to an accountant that does not reside, have an office in, or offers or provides accounting services in, Ontario
  16. ↑ in French, "auditeur" or "auditrice"
  17. ↑ attached to principal designation, expressed as "CPA Auditor", "CPA auditeur" or "CPA auditrice"
  18. ↑ known as Registered Industrial and Cost Accountant
  19. 1 2 protected by virtue of the Public Accountants Act, R.S.N.S. 1989, c. 369
  20. ↑ legacy designation: holders must identify themselves as "ACPA, ACA"

In addition, Yukon and British Columbia have several other protected designations in use:

  • AAT ("Associate Accounting Technologist")
  • ACPA ("Associate of the Chartered Professional Accountants")

Yukon also grants an honorary designation known as "CPA (Hon)".

Alberta has opted to allow all those with legacy designations to use them in conjunction with "CPA" during the first 10 years from July 1, 2015, or to use the legacy designation alone during that time. After the 10-year transition period, the "CPA" designation can be used on its own by such legacy holders.[54]

Impact on the Canadian landscape

During the years running up to the 2012-2018 consolidation, as well as thereafter, there has been debate as to the practical impact of the merger.

The 2010-2011 CA/CMA position paper on the proposed merger gave five reasons why it should be pursued:[55]

  1. The existing regulatory framework was complex and costly.
  2. The differences in the functions pursued by the various designation holders were disappearing.
  3. A strong Canadian voice was needed on the world stage.
  4. It was necessary to compete with other accounting designations that were going global, such as the Chartered Global Management Accountant (promoted by the American Institute of Certified Public Accountants and the Chartered Institute of Management Accountants) and CPA Australia.
  5. It was desirable to act proactively, instead of waiting for reforms imposed by various governments.

There was significant resistance by the CA membership at the time, who were concerned that their collective image would be diminished as a result.[56]

Following the consolidation, the following observations have been made:

  1. Based on a social network theory analysis, it appears that those associated with the former chartered accountant bodies have generally had a disproportionate impact in the attainment of political power within the new CPA bodies, extending even to ousting the knowledge base that had been accumulated within the other legacy bodies.[57]
  2. The new CPA bodies have adopted a more passive approach in recruiting new members, in contrast to the activity undertaken by the previous legacy bodies.[58]

Foreign professional bodies active in Canada

As possession of a Canadian professional accounting designation is not generally a mandatory requirement to hold a Canadian financial position, other professional bodies have members who also work in Canada, of which the most significant are:

Further reading

Academic writing

  • Richardson, Alan J. (1993). "Who Audits? The Emergence of Hegemony in the Ontario Accounting Profession". In Murphy, George J. A History of Canadian Accounting Thought and Practice. New York: Garland. pp. 209–250. ISBN 0-8153-1248-2.
  • Richardson, Alan J. (1993). "An Interpretative Chronology of the Development of Accounting Associations in Canada: 1879-1979". In Murphy, George J. A History of Canadian Accounting Thought and Practice. New York: Garland. pp. 551–627. ISBN 0-8153-1248-2.
  • Richardson, Alan J. (1996). "Canada". In Chatfield, Michael; Vangermeersch, Richard. History of Accounting: An International Encyclopedia. Routledge. pp. 89–92. ISBN 0-8153-0809-4.
  • Richardson, Alan J. (2000). "Building the Canadian Chartered Accountancy Profession: A Biography of George Edwards, FCA, CBE, LLD, 1861-1947". Accounting Historians Journal. Academy of Accounting Historians. 27 (2): 87–116.
  • Richardson, Alan J.; Kilfoyle, Eksa (2012). "Merging the Profession: A Historical Perspective on Accounting Association Mergers in Canada" (PDF). Accounting Perspectives. Canadian Academic Accounting Association. 11 (2). Archived from the original (PDF) on 2013-09-22. Retrieved 1 May 2012.

Organization histories

  • Allan, J. Nelson (1982). History of the Society of Management Accountants of Canada. Hamilton: Society of Management Accountants of Canada. ISBN 0-920212-45-X.
  • Collard, E.A. (1980). First in North America: One Hundred Years in the Life of the Ordre des comptables agréés du Québec. Montreal: Ordre des comptables agréés du Québec.
  • Creighton, Philip (1984). A Sum of Yesterdays: Being a History of the First One Hundred Years of the Institute of Chartered Accountants of Ontario. Toronto: Institute of Chartered Accountants of Ontario.
  • Gallant, Leo T. (2001). The First 100 Years : A History of the Institute of Chartered Accountants of Nova Scotia. Halifax: Institute of Chartered Accountants of Nova Scotia. ISBN 0-9688452-0-7.
  • Stuart, R.C. (1988). The First Seventy-Five Years : A History of the Certified General Accountants' Association of Canada. Vancouver: Certified General Accountants' Association of Canada.

Notes and references

Notes

  1. ↑ the New Brunswick Institute conferred membership on anyone who was a member of any incorporated society of accountants in the British Empire or the United States,[8] and the PEI Institute was formed without the knowledge or consent of existing CAs.[9]
  2. ↑ A concurrent intercession by the Colonial Office ensured that British CAs would be able to gain admission to Canadian CA bodies, thus introducing recognition provisions into Canadian practice.[15]
  3. ↑ It had to change its name because of opposition from the CA bodies, as "CAA" would have been too similar a designation to use.[2]
  4. ↑ The UA designation was held not to infringe the protected designation of CA.[nb 2]
  5. ↑ reactivated upon writ of mandamus issued by the New Brunswick Court of Appeal[nb 3]
  6. ↑ retitling the principal Act as the "Chartered Professional Accountants of Bermuda Act 1973". Act No. 93 of 1973 (PDF).

References

  1. ↑ Richardson & Kilfoyle 2012, p. 9.
  2. 1 2 3 4 5 Richardson 1996, p. 89.
  3. 1 2 Ellis, Colin (June 30, 2017). "Canada 150: Five things you didn't know about the history of accounting in Canada". Canadian Accountant.
  4. ↑ Richardson 1993b, p. 559.
  5. ↑ Mackenzie, The Clarkson Gordon Story 1864-1989, (University of Toronto Press, 1989) 7
  6. ↑ Richardson 1993b, p. 575.
  7. ↑ Richardson 1993b, pp. 564-565.
  8. ↑ Richardson 1993b, pp. 572-573.
  9. 1 2 Richardson 1993b, p. 578.
  10. ↑ Richardson 1993b, p. 581.
  11. ↑ Richardson 1993b, p. 582.
  12. 1 2 Richardson 1993b, p. 561.
  13. 1 2 Richardson 1993b, p. 563.
  14. ↑ Richardson 1993a, pp. 99, 220–221.
  15. ↑ Richardson 1993b, p. 568.
  16. ↑ Fox, David (July 9, 2014). "Bermuda accountants unite under single umbrella organisation". The Royal Gazette. Hamilton, Bermuda.
  17. 1 2 Richardson 2000, p. 110.
  18. ↑ Richardson 1993b, p. 573.
  19. 1 2 Richardson 1993b, p. 592.
  20. 1 2 Richardson 1993b, p. 595.
  21. ↑ Richardson 1993b, p. 566.
  22. ↑ "The Canadian Society of Cost Accountants". The Canadian Chartered Accountant. Toronto: Dominion Association of Chartered Accountants. X (1): 31–34. July 1920. Retrieved June 24, 2014.
  23. ↑ Richardson 1993b, p. 580.
  24. ↑ Richardson 1993b, pp. 582-583.
  25. ↑ Allan 1982, p. 21.
  26. 1 2 Richardson 1996, p. 90.
  27. ↑ Richardson 2000, p. 112.
  28. 1 2 Richardson 1993b, p. 591.
  29. ↑ Richardson 1993b, p. 611.
  30. ↑ "Desautels: History". mcgill.ca. Desautels Faculty of Management, McGill University. Retrieved September 14, 2017.
  31. ↑ Richardson 1993a, pp. 221-222.
  32. ↑ Richardson 1993b, p. 576.
  33. ↑ Richardson & Kilfoyle 2012, p. 10.
  34. ↑ Richardson 1993b, p. 598.
  35. 1 2 Richardson 1993b, p. 603.
  36. 1 2 Richardson 1993b, p. 587.
  37. 1 2 "Federal Corporation Information - 046219-5". ic.gc.ca. Retrieved April 11, 2018.
  38. ↑ S.Q. 1946, c. 47,s. 28
  39. ↑ Richardson 1993b, pp. 597, 599.
  40. ↑ Richardson & Kilfoyle 2012, p. 13.
  41. ↑ "Federal Corporation Information - 274450-3". ic.gc.ca. Retrieved April 11, 2018.
  42. ↑ "Designations". professionalaccountant.org. Society of Professional Accountants of Canada. Retrieved April 11, 2018.
  43. ↑ Roy, Paul-Émile (November 16, 2011). "A Brief History of Accounting and Auditing Standards in Canada". accountinghistory.blogspot.ca. Digital Archives for Chartered Accountants.
  44. ↑ "CPA Canada Handbook: The standards and guidance collection". CPA Canada. Retrieved April 12, 2018.
  45. ↑ Richardson 1993b, p. 609.
  46. ↑ Buckstein, Jeff (July 2011). "Two out of three in on merger talks". The Bottom Line. Archived from the original on April 26, 2012.
  47. ↑ Buckstein, Jeff (March 2012). "Case for unity to be laid out". The Bottom Line. Archived from the original on February 21, 2012.
  48. ↑ Buckstein, Jeff (August 2012). "Uneasy calm after bruising merger battles". The Bottom Line. Archived from the original on August 11, 2012.
  49. ↑ Kirby, Michael (June 25, 2012). "Let CA, CMA and CGA give way to CPA". Financial Post.
  50. ↑ McFarland, Janet (2014-06-23). "Canadian accountants merge under CPA designation". Retrieved 2017-06-04.
  51. ↑ "Chartered Professional Accountant" (PDF).
  52. ↑ "Use of the CPA Designation in Ontario" (PDF). ICAO. July 2014.
  53. ↑ "CPA, CA Tagging" (PDF). CPA PEI.
  54. ↑ "Designation Use". CPA Alberta. Archived from the original on 2015-07-04.
  55. ↑ Richardson & Kilfoyle 2012, pp. 19-22.
  56. ↑ Richardson, Alan J.; Jones, D.G. Brian (2007). "Professional "brand", personal identity and resistance to change in the Canadian accounting profession: a comparative history of two accounting association merger negotiations". Accounting History. 12 (2): 135–164. doi:10.1177/1032373207076035. ISSN 1032-3732. Retrieved May 16, 2014.
  57. ↑ Richardson, Alan J. (2017). "Merging the Profession: A Social Network Analysis of the Consolidation of the Accounting Profession in Canada". Accounting Perspectives. 16 (2): 83–104. doi:10.1111/1911-3838.12139.
  58. ↑ Brouard, François; Bujaki, Merridee; Durocher, Sylvain (2017). "Attracting Prospective Professional Accountants Before and After the CPA Merger in Canada". Accounting Perspectives. 16 (2): 105–127. doi:10.1111/1911-3838.12138.
  59. ↑ CIMA - Canada
  60. ↑ "Our national offices". ACCA.
  61. ↑ IMA Toronto

Acts and other instruments

  1. ↑ An Act to incorporate the Association of Accountants in Montreal, S.Q. 1880, c. 88
  2. ↑ An Act to Incorporate the Institute of Accountants of Ontario, S.O. 1883, c. 62
  3. 1 2 An Act respecting Chartered Accountants, S.O. 1911, c. 48
  4. ↑ Loi constituant en corporation l'Institut des comptables et auditeurs de la Province de Québec, S.Q. 1912-13, c. 94
  5. ↑ An Act to incorporate the Institute of Chartered Accountants of Nova Scotia, S.N.S. 1900, c. 154
  6. ↑ S.N.B. 1916, c. 53
  7. ↑ S.P.E.I. 1921, c. 25
  8. ↑ An Act to Incorporate the Institute of Accountants of Newfoundland, S.N. 1905, c. 16
  9. ↑ An Act to Amend 5 Ed. VII., Cap. 16, entitled "An Act to Incorporate the Institute of Accountants of Newfoundland", S.N. 1906, c. 29
  10. ↑ Chartered Accountants Act, 1949, S.N. 1949, c. 30
  11. ↑ An Act to incorporate the Dominion Association of Chartered Accountants, S.C. 1902, c. 58
  12. ↑ An Act to revise and amend The Chartered Accountants Act, S.O. 1908, c. 42
  13. ↑ "P.C. 870: Disallowance Statute of Ontario, Cap. 42., intituled An Act to Revise and Amend the Chartered Accountants Act - Min. Just". Privy Council Office. April 19, 1909. , "P.C. 871: Disallowance Ontario Act re. Chartered Accountants". Privy Council Office. April 23, 1909.
  14. ↑ An Act to revise and amend The Chartered Accountants Act, S.O. 1910, c. 79
  15. ↑ P.C. 610, P.C. 611 (March 24, 1911)
  16. ↑ An Act respecting the Dominion Association of Chartered Accountants, S.C. 1951, c. 89
  17. ↑ An Act to incorporate the General Accountants Association, S.C. 1913, c. 116
  18. ↑ An Act respecting the Certified General Accountants Association of Canada, S.C. 1999, c. 38
  19. ↑ S.Q. 1919-20, c. 118
  20. ↑ The Business Profits War Tax Act, 1916, S.C. 1916, c. 11
  21. ↑ The Income War Tax Act, 1917, S.C. 1917, c. 28
  22. ↑ The Society of Industrial and Cost Accountants of Ontario Act, 1941, S.O. 1941, c. 77
  23. ↑ The Society of Industrial Accountants of Ontario Act, 1967, S.O. 1967, c. 129
  24. ↑ Loi constituant en corporation l'Association des comptables, S.Q. 1919-20, c. 118 (in French)
  25. ↑ Loi modifiant la Loi des comptables, S.Q. 1927, c. 61 (in French)
  26. ↑ "The Society of Incorporated Accountants and Auditors". Canada Gazette. 53 (24): 1783. December 13, 1919.
  27. ↑ "Society of Incorporated Accountants and Auditors". Canada Gazette. 53 (48): 4140. May 29, 1920.
  28. ↑ The Association of Accountants and Auditors Act, 1926, S.O. 1926, c. 124
  29. ↑ The Association of Accountants and Auditors Act, 1931, S.O. 1931, c. 143
  30. ↑ The Certified Public Accountants Act, 1936, S.O. 1936, c. 68
  31. ↑ S.Q. 1946, c. 47, s. 14
  32. ↑ currently the Canada Business Corporations Regulations, 2001, SOR/2001-512
  33. ↑ Companies Act, S.B.C. 1973, c. 18, s. 203; currently Business Corporations Act, S.B.C. 2002, c. 57, Part 7, Div. 4
  34. ↑ Chartered Professional Accountants Act, S.Q. 2012, c. 11
  35. ↑ BC Regulation 339/2015, B.C. Regulations Bulletin, Number 19, June 16, 2015 Archived June 20, 2015, at the Wayback Machine.
  36. ↑ "M.O. 2016/14" (PDF). Yukon Gazette. Whitehorse. 35 (7): 7. July 15, 2016.
  37. ↑ "O.I.C. 2016/120" (PDF). Yukon Gazette. Whitehorse. 35 (8): 9. August 15, 2016.
  38. ↑ "Proclamation" (PDF). Alberta Gazette (Part I). 111 (11): 387. June 15, 2015.
  39. ↑ "Acts Proclaimed" (PDF). Saskatchewan Gazette (Part 1). 110 (46): 2383. November 14, 2014.
  40. ↑ regulatory bylaws approved on October 22, 2014, noted at "Public Notices: The Accounting Profession Act" (PDF). Saskatchewan Gazette. October 31, 2014. pp. 2286–2305. , to come into force upon proclamation
  41. ↑ "Proclamation" (PDF). Government of Manitoba. July 29, 2015.
  42. ↑ "Bylaws: Chartered Professional Accountants of Manitoba" (PDF). CPA Manitoba Transitional Board. July 9, 2015. , at Bylaw 304(2)
  43. ↑ "N.S. Reg. 263/2015 (Proclamation)" (PDF). Royal Gazette (Part II). Halifax. 39 (14): 759. July 10, 2015.
  44. ↑ "N.S. Reg. 156/2016 (Proclamation)" (PDF). Royal Gazette (Part II). Halifax. 40 (17): 752–753. August 19, 2016.
  45. ↑ "Proclamation" (PDF). Royal Gazette. Charlottetown: Queen's Printer. 141 (13): 328. March 28, 2015.
  46. ↑ "Institute of Chartered Accountants of Bermuda Amendment Act 2014 Commencement Day Notice 2014" (PDF).

Case citations

  1. ↑ held obiter by the Supreme Court of Canada in Reference Re Securities Act 2011 SCC 6 at par. 34, [2011] 3 SCR 837 (22 December 2011)
  2. ↑ Institute of Chartered Accountants of Manitoba v Bellamy 1926 CanLII 242, [1926] 4 DLR 230 (7 July 1926), Court of Queen's Bench (Manitoba, Canada)
  3. ↑ Ex Parte Goodwin et al 1961 CanLII 421, 27 DLR (2d) 667 (24 March 1961), Court of Appeal (New Brunswick, Canada)

Legislative proceedings

  1. ↑ Bill 5, 1st Session, 23rd Legislature (Ontario, 1949)
  2. 1 2 "Institute of Accredited Public Accountants of Ontario". Parliamentary Debates (Hansard). Ontario: Legislative Assembly of Ontario. March 24, 1949. pp. 1223–1226.
  3. ↑ "First Reading of Bills" (PDF). Parliamentary Debates (Hansard). NWT: Legislative Assembly. March 12, 2018. p. 30.
  4. ↑ Bill 7, 3rd Session, NWT Legislative Assembly
  5. ↑ "Second Reading Reading of Bills" (PDF). Parliamentary Debates (Hansard). NWT: Legislative Assembly. March 13, 2018. p. 27.
  6. ↑ "Bill 03 - Chartered Professional Accountants Act" (PDF). Parliamentary Debates (Hansard). Nunavut: Assembly. March 20, 2018. pp. 66, 68.
  7. ↑ Bill 2, 2nd session, Nunavut Assembly
  8. ↑ "Votes and Proceedings" (PDF). Legislative Assembly of Saskatchewan. May 14, 2014. pp. 3–4.
  9. ↑ "Bill 98: Chartered Professional Accountants Act". Legislative Assembly of Nova Scotia.
  10. ↑ "Bill 15 (progress)". Legislative Assembly of Prince Edward Island.
  11. ↑ "House of Assembly Proceedings". House of Assembly of Newfoundland and Labrador. December 16, 2014. Archived from the original on December 17, 2014.
  12. ↑ "House Government Bill C-60". parl.ca.

Professional media

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