1. Uniting the Accounting Profession in New Brunswick MARCH/APRIL 2013

2. Steering Committee Darrell Stewart, FCGA, President, Certified General Accountants Association of New Brunswick (CGA-NB) Pierre Doiron, FCGA, 1 st Vice-President, CGA-NB Kim Embleton, CGA, 2 nd Vice-President, CGA-NB Trudy Dryden, FCGA, Executive Director, CGA-NB

3. Agenda Overview of why the CGA-NB Board feels unification of the accounting profession in NB is in the best interests of members /public. Overview of what is occurring across Canada Details from the NB Unification Proposal Questions

4. Why Consider Unification in NB? CGAs, CAs and CMAs are increasingly moving into the same practice areas but have different qualifications and regulations Public confusion as to the differences between the 3 designations Three governance structures in NB

5. …continued… Profession does not currently “speak with one voice” Canadian accounting landscape changed when Quebec accountants merged to become CPAs Need to ensure availability of member services and education in French Need to ensure mobility of all professional accountants across all provinces

6. Status of Unification Across Canada All accountants in Quebec are already CPAs. (CPA = Chartered Professional Accountant) As of January 1, 2013, nationally the CAs and CMAs have established CPA Canada www.cpacanada.ca (40% of Canadian accountants are already members) www.cpacanada.ca On January 15 th, CPA Quebec and ICAO formally joined CPA Canada as organizational members (70,000 individual members)

7. Mergers in Transition stage or in Consultative stage: – BC (CAs, CMAs and CGAs) – Alberta (CMAs, CGAs and CAs) – Saskatchewan (CAs, CMAs and CGAs) – Manitoba (CAs and CMAs) – Ontario (CAs) – Quebec (the CAs, CMAs and CGAs) - completed – NS (CAs and CMAs) – PEI (CAs and CMAs) – NL (the CAs, CMAs and CGAs) – Accurate as of March 14

9. CGA Canada’s Concerns Recent letter to CGA-NB members stated: “As your provincial board considers this matter, we encourage you to ask questions about how this could impact you, your professional status and your future career opportunities. Please ensure that your respective board organizations have considered the risks and have mitigated them in your favour.” We trust that after this session all your questions will have been addressed satisfactorily.

10. NB Unification Proposal Made in NB Agreement Negotiated between CGA-NB, CMANB and NBICA. All three boards/councils support it. CPA = Chartered Professional Accountant CGA –NB members will have the chance to vote (online) from April 12-25, 2013

11. CPA – Proposed Details Vision of the CPA Designation: To be the pre- eminent, internationally recognized, Canadian accounting designation and business credential that best protects and serves the public interest. Evolution to a single designation (continued use of existing “legacy” designations is allowed) New NB accountants will be CPAs starting in 2015

12. Underlying Principles: Legacy designations = CGA, CMA and CA No preference will be given to one legacy designation over another No promotion of the legacy designations will occur It is prohibited to suggest that one legacy designation is better than another Existing rights of legacy members will be honoured going forward

13. Governance During the Transition Phase a 12 member CPA NB Board is proposed: 3 members of the public – one chosen by each legacy designation 3 CGA members 3 CA members 3 CMA members Legacy Boards/Councils and offices will continue to exist but be winding down.

14. Student Education Principles – As rigorous as legacy programs – Meet, exceed all IFAC standards – Meet, exceed requirements for current and future MRAs – Meet the needs of industry, government and public practice – New competency map – Additional program for those who do not wish to pursue full CPA

15. New CPA Education Program Combines the best of all three education programs Bilingual – the French component will start 2015 The first CPA PREP Program will be delivered in NB beginning in the fall, 2013 First CPA Exam will be offered in 2015. CGA-NB will assist current CGA students to transition (or finish their CGA prior to 2015).

16. Use of “CPA” by Legacy Individuals For 10 years legacy CGAs may use any of these: CPA, CGA Chartered Professional Accountant, CGA Chartered Professional Accountant, Certified General Accountant Certified General Accountant or CGA After 10 years, CPA can be used alone or you can use just your legacy designation if you prefer. (same rules apply to CAs and CMAs respectively)

17. Use of CPA designation by Firms For 3 years firms may use the designation styles listed previously for individuals or they may use just CPA or Chartered Professional Accountants. After 3 years firms use Chartered Professional Accountant or CPA only. BUT once CPA legislation passes, any new firms must sign all Assurance Reports as Chartered Professional Accountant or CPA ONLY.

18. Professional Development (CPD) It will be prohibited to offer CPD courses for only those holding one specific legacy designation CPD standards will be the same for all CPAs CPA will strive for the highest standards for its candidates and members

19. Administration and Support One CPA Member and Student Support Services Provincial CPA dues will include your dues for CPA Canada One CPA Regional (Atlantic) Education Delivery

20. Voting on the Unification Proposal On-Line voting will be open from April 12 (9 am) – April 25 (5 pm) – conducted by Revolution Strategy CGA Members will receive an email on April 11 th with a link to the voting site Members will be advised on the vote results on or about April 30th

21. Position of CMAs and CAs in NB CA and CMA Council Members fully support Unification Steering Committee comprised of the 3 bodies has worked well together Each NB accounting body will be asking their members to vote – question will be the same

22. Questions?