CPA Canada: Frequently Asked Questions on Canada's Accounting Profession Consolidation
[ILLUSTRATION OMITTED] Canada's accounting profession is undergoing a radical transformation. Less than three years ago, three accounting credentials operated across the nation's provinces and territories--the Chartered Accountants (CAs), the Certified Management Accountants (CMAs), and the certified general accountants (CGAs). Since then, merger talks among the three have progressed in great leaps, periodic setbacks, and incremental steps. The undertaking has been ambitious and complicated, and the prospects for full unification have often seemed uncertain, but the process is nearing its successful end with the recent launch of a new, single designation, the Chartered Professional Accountant (CPA). The merger raises important questions about how the profession identifies itself, how it interacts with the public, and how it interacts not only with the United States but also with the rest of the world. Here are answers to some common questions about the initiative. Q. Why is the new, single designation called CPA? A. Increasingly, two accounting abbreviations, CA and CPA, are recognized as premier designations around the world, even if CAs and CPAs are not exactly the same from one country to another. Indeed, the CPA abbreviation is currently used in countries as diverse as Australia, China, Israel, and Japan, while the CA term is employed in places such as England, India, Pakistan, Scotland, and South Africa. Moving to CPA, which is synonymous with the U.S. certified public accountant designation, was obvious, said Kevin Dancey, president and CEO of CPA Canada. "We knew we couldn't unify under one of the legacy designations; that would entail one of the bodies keeping its designation while the other two bodies would be giving up their designations. To be successful, we knew no one should be obligated to either give up or give away their designation," he said. In selecting Chartered Professional Accountant, which must be used in conjunction with the legacy designation for 10 years, Dancey added, "Everyone got to keep their legacy designations, and everyone will get a new CPA designation." Q. Does the new designation cause confusion? A. Between the United States and Canada, a common CPA brand presents potential future opportunities, but it also presents significant challenges. First and foremost, there is the question of when Canadian CPAs and U.S. CPAs can use their credential across the border. It's unclear when "holding out" (identifying oneself as a credential holder) is currently permissible, since all state and provincial laws explicitly prohibit the use of credentials that may be confused with their regulated domestic credential in that state or province. With the U.S. and Canadian economies tightly integrated and the flow of people and services common across the border, profession leaders have begun to ask, "What exactly is appropriate?" Ken Bishop, the president and CEO of the National Association of State Boards of Accountancy (NASBA), frames the situation this way: "With Canada transitioning from CA to the CPA, some state boards of accountancy are assessing the risk of public confusion with the U.S. CPA credential. I am hopeful that we will develop a common sense solution that will allow appropriate visitor use of the CPA credential on both sides of the border, for social and other non-practice situations, and that will keep practitioners out of harm while protecting the consumer public. I am confident that we can achieve this in a timely way." Q. How can confusion about Canadian and U.S. CPA designations be avoided? A. Permitting the handing out of a business card or being identified as a CPA at a conference may be a reasonable accommodation to most observers, but other situations are less clear. Laws and regulations may need updating to allow for such leeway. In addition, other more complex questions will begin to percolate up to regulators. …