Become the CEO of Your Life

Online CPD reporting is here!Shifting economy sends wake-up callUS expatriation tax reformMeet the ICABC’s two new directors

In this issueHow applying business principles to your life can lead to true fulfilment + more tips for work/life balance

On the Cover

November 2008

Become the CEOof Your Life

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contents

10

On the Cover

Find Your Inner CEO Create a flexible life that works for you

4 Notes from the CEO Don Carter, FCA, wins an

award for innovation in the CA profession

6 For the Profession New: Online CPD Reporting!

8 Research Corner Dealing with financial

contagion

18 Tax Traps & Tips US Expatriation Tax Reform

22 PD News Highlights from the fall PD

program

24 Plugged In News for and about members

& students Movers&shakersinthe

profession Didyouknow?Anotefrom

MemberServices... ICABCwelcomestwonew

directors

30 Ethical Dilemmas How secure is your recycling

process?

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13Notes from the Work/Life Balance Conference A range of seminars gave

participants great ideas and

takeaways

14Making It Work Three CAs share how they

juggle work, family life, and

personal growth

16Shifting Economy Sends Wake-Up Call CA Business Outlook

addresses the implications

of BC’s shifting economy

4 ica.bc.ca November ’08

November 2008, No.475

Published eight times annually by the Institute of Chartered Accountants

of British Columbia.

EditorMichelle McRae

Design Blindfolio Design

604-761-9212

AdvertisingAdvertising In PrintPhone: 604-681-1811Fax: 604-681-0456

Senior Director of External AffairsLesley MacGregor

Institute CouncilDoug Murphy, FCA

President

Karen Keilty, CA1st Vice-President

Peter Norwood, CA2nd Vice-President

Robert Wicks, CA, CFPTreasurer

Jack Arnold, CALenard Boggio, FCA

Lindalee Brougham, CAKyman Chan, CA

Karen Christiansen, CAJohn Crawford, CA

David HughesMichael Macdonell, CA

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Kenneth TungPraveen Vohora, CA

Chief Executive OfficerRichard Rees, FCA

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BeyondNumbers supports the CA profession in BC

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Notes from the CEO

It gives me great pleasure to congratulate Don Carter, FCA, Ph.D., VP Learning with the CA School of Business, on receiving the first-ever Bill Swirsky Innovation Leadership Award! Don received the award earlier this fall in recognition of his enormous contributions to CA accounting education over the past 25+ years. These contributions include being instrumental in the creation of both CASB and its predecessor, the ICABC’s School of Chartered Accountancy (SCA). “I can’t imagine a more deserving individual to receive an innovation award

than Don Carter,” says colleague John Gunn, CA, the CEO of CASB. “Don has taken leading-edge research in the areas of competency-based learning and e-learning, and has developed, in CASB, a working model that stands up to the best in the world.”The Bill Swirsky Innovation Leadership Award is named after Bill Swirsky, FCA.

Described as a prolific innovator and thought leader, Swirsky worked with the CICA for more than 30 years and retired in 2007 as VP of Knowledge Development.“Bill and I go back many years, and it is an honour to receive an award in his

name,” said Don in September. “It is an honour to be recognized by your peers, and the fact that this is the inaugural presentation of the award makes it particularly gratifying.”The CICA, CaseWare International Inc., and CaseWare IDEA Inc. created this

award to recognize employees and volunteers at Canadian CA institutes whose innovations serve to advance the profession and/or accounting or financial reporting. Like John, I can’t think of a more deserving recipient. Congratulations Don!

–Richard Rees, FCA

CASB VP wins award for innovation & leadership

As some of you are aware, Dr. Don Carter,

FCA, pictured here holding the Bill Swirsky

Innovation Leadership Award at the RCMP

Heritage Centre in Edmonton, retired at the

end of October. Look for a profile

celebrating his career in the January 2009

issue of Beyond Numbers.

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Amin E. JamalA.C.I.I., CLU, TEP

Ross GibsonDIPL.T.

Lynn NewsomeKen McNaughtonCFP, CLU, CH.F.C.,

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John V.R. Wark B.Comm, C.A.,

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Michael A. Healey B.A., CFP, RHU

Bruce K. Berger B.A., CFP

Heidi U. Pullem CFP, CDFA

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Aeronn Zlotnik B.A.

Philip Levinson C.A.

Carrie Lyle B.Comm., MBA, CMA, CIM

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W.A. (Bill) Finlay B.A., C.A.

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ZLC FINANCIAL GROUPINSURANCE & RETIREMENT SOLUTIONS ◆ EMPLOYEE BENEFITS PRIVATE INVESTMENT MANAGEMENT ◆ STRUCTURED SETTLEMENTS

(Formerly Zlotnik, Lamb & Company)

Helping your clients. Plan their legacy.

FAMILY.

BUSINESS.

COMMUNITY.

Creative solutions using

life insurance and other

financial vehicles.

Robert E. Olson B.A.

P.M. (Pip) SteeleB.Comm, CFP, CLU,

CH.F.C.

Mark A. Zlotnik C.A., CLU

Peter G. LambB.A., CLU, TEP,

EPC, CSA

Garry Zlotnik B.Comm., C.A.,

CFP, CLU, CH.F.C.

Martin Zlotnik B.Comm., LL.B.

Amin E. JamalA.C.I.I., CLU, TEP

Ross GibsonDIPL.T.

Lynn NewsomeKen McNaughtonCFP, CLU, CH.F.C.,

RHU, CSA

John V.R. Wark B.Comm, C.A.,

CFP, CLU, CH.F.C.

Michael A. Healey B.A., CFP, RHU

Bruce K. Berger B.A., CFP

Heidi U. Pullem CFP, CDFA

Kurt Cassidy B.A.

Aeronn Zlotnik B.A.

Philip Levinson C.A.

Carrie Lyle B.Comm., MBA, CMA, CIM

Sound Advice.

Fulfilling Dreams.

W.A. (Bill) Finlay B.A., C.A.

Matthew W.P. Anthony B.A., CFP

John McKeachie Pat McGuire CFP, CLU, CH.F.C

Nancy Pereira GBA

H. G. (Howie) Young, CFP

Peter Walmsley EPC

Trent Gurney CSA


For the Profession

Welcome to Online CPD Reporting!By Moira Bryans, CA Director of Professional Development

By now you’re aware that 2008 marks the move to new international CPD standards. Over the past two years, we

have discussed the implications of this change extensively with members, both in person and through letters, emails, and articles in Beyond Numbers. We’ve also updated and expanded our CPD website—creating an extensive FAQ section, for example—to assist members with the move to the new requirements.

But we saved one of the best pieces of news about the new CPD program until now: Effective November 2008, members can record and submit their annual CPD online! No more mislaid paper report forms and no more missing

or unreadable faxes—now you can enter your CPD activities directly on our website. Enter the information as you earn your credits during the year, and you’ll have a complete, detailed log of all your hours when it comes to submitting your annual declaration online!

Visit our CPD website at www.icabc-pd.com, and click on “Online Reporting.” This quick, easy-to-use system will allow you to report your CPD activities as you complete them throughout the year. You can either enter your hours only, or, by entering details about your individual activities, create a summary log of CPD credits by category. Then, at the end of each calendar year, you can simply press the “Submit” button, and your CPD reporting will be done for the year.

Always find yourself trying to remember which ICABC PD courses you took during the year? With online CPD reporting, you can simply select the appropriate course category, and a page will pop up that lists all of the courses for which you were registered during the current year. Once you confirm attendance at these courses, the information is moved directly into the reporting form.

The new CPD online program will require a new and more secure password to protect your

personal information. When first logging onto the site, you will be asked to create a secure password, which will give you access to other online products and services in future, including an online service for paying membership dues (coming in 2009).

We are delighted to be able to offer you this new online CPD reporting tool, and we trust that you’ll find it useful. We also believe that it will help us better support you in completing your CPD requirements.

Questions or comments?If you have questions or comments about the new CPD program, please contact our new Associate Director of Professional Development, Stella Lam-Leung, CA (not to be confused with the Institute’s Professional Standards Advisor Stella Leung, CA). One of Stella’s key responsibilities will be communicating with members about the new CPD reporting program, and we’re very pleased to welcome her to the Institute’s PD team! You can reach Stella at 604-631-2570 or [email protected]. Be sure to see page 25 for brief profiles of Stella and the Institute’s new Director of Practice Review & Licensing, Lisa Eng, CA.

THE UNIVERSITY OF BRITISH COLUMBIA

CA_Source.indd 1 8/6/2008 4:34:24 PM

CA_Source.indd 1 8/6/2008 4:34:24 PM


Financial ContagionBy Dr. Kin Lo, CA, Ph.D.

The financial crisis that started at the beginning of September 2008 in the United States continues to deepen. By

now, everyone knows about the failure or bail-out of one after another titan in the financial sector, including Lehman Brothers, Merrill Lynch, American International Group (AIG), and Washington Mutual. As the crisis spreads outside the US, central banks around the world are pumping billions into the financial system to increase liquidity in the markets. Just today, as I write this (October 6th), the Bank of Canada injected $2.4 billion into money markets, fresh on the heels of a $1.3-billion injection made the previous business day. The US Federal Reserve and the European Central Bank have poured in billions more.

This is turning out to be a classic case of financial contagion. Even though the crisis originated from mounting losses on sub-prime loans and mortgages in the US, and most financial institu-tions outside of the US have little or no exposure to these loans, Canada and other parts of the world have been affected (or infected, as it were). The means of contagion in this crisis is liquidity, which is the lifeblood of the financial system. When liquidity is in short supply, drawing cash into one part of the global financial system (in this case, the US) implies that there is less

available for the rest.A financial institution that is short of cash to

meet its maturing liabilities must sell some of its assets to generate the necessary cash. This is not a problem in normal times, as financial assets will fetch market values that approximate their fundamentals (i.e., future cash flows discounted at a rate appropriate for the assets’ risk levels). However, during a financial crisis, when liquidity is scarce, “liquidity pricing” comes into effect. A liquidity price is “the ratio of the amount of cash seeking to purchase [an] asset to the available supply of that asset.”1 In other words, liquidity prices correlate to the amount of liquidity available; thus, prices can be far below fundamentals when cash is in short supply.

Enter accounting. Two prescient research papers published in May and August this year analyse the effect of mark-to-market or “fair value”2 accounting during financial crises. In “Marking-to-market: Panacea or Pandora’s Box,”3 Guillaume Plantin, Haresh Sapra, and Hun Song Shin show that marking-to-market can lead to a vicious cycle of financial asset write-downs on the balance sheets of banks and insurance companies. As liquidity dries up, the asset sales of financial institutions depress market prices. Under mark-to-market accounting, this causes the financial institutions with weaker balance sheets

Research Corner

Editor: There are strong positions

(pro and con) on mark-to-market

accounting, both of which have been

discussed extensively in the financial

media. Standard setters have advised

CAs not to lose sight of the objective

of mark-to-market accounting, which

is to promote transparency through

the communication of useful

information that is relevant, reliable,

and understandable.

November ’08 ica.bc.ca 9

1 H. Sapra, “Do accounting measurement

regimes matter? A discussion of mark-to-

market accounting and liquidity pricing,”

Journal of Accounting and Economics, 2008

(p. 382).

2 I put “fair value” in quotation marks because,

as described above, mark-to-market values

are not “fair” in times of crisis.

3 G. Plantin, H. Sapra, and H. S. Shin, “Marking-to-

market: Panacea or Pandora’s Box,” Journal

of Accounting Research, 2008 (Vol. 46).

4 F. Allen and E. Carletti, “Mark-to-market

accounting and liquidity pricing,” Journal of

Accounting and Economics, 2008 (Vol. 45).

to become insolvent, which leads to yet more asset sales of bankrupted institutions, further depress-ing asset prices. In this way, marking-to-market contributes to the spread of financial crisis.

In “Mark-to-market accounting and liquidity pricing,”4 Franklin Allen and Elena Carletti consider how mark-to-market accounting can generate contagion from the insurance sector through to the banking sector. Insurance companies and banks both hold long-term financial investments (such as mortgages and long-term bonds) in their asset mixes. Whenever there is a catastrophe, insurance companies have to liquidate some assets to pay out their policy holders. When the catastrophe is severe enough, the resulting asset sales trigger liquidity pricing and depress prices for financial assets to levels well below their fundamental values. Banks hold many of the same types of financial assets as insurance companies, and must also write down their assets under the mark-to-market accounting approach.

In the lead-up to the current financial crisis, some insurance companies, such as AIG, provided guarantees against default on financial instruments, including sub-prime loans. As defaults on those loans continued to roll in, AIG’s losses mounted. The US Federal Reserve’s $85 billion bailout of AIG on September 16, 2008, was designed to stop the contagion that would have ensued had AIG been allowed to fail (fire sales of AIG investments would have caused massive write-downs on banks’ investments as well).

Both of these papers suggest that mark-to-market accounting contributes to the spread of financial crises. Standard setters should take heed, and consider whether and how mark-to-market ac-counting should be applied—not only when the financial system is healthy, but also when it’s sick.

Kin Lo, CA, Ph.D., holds the CA Professorship in Accounting in the Sauder School of Business at UBC. The CA Professorship is funded by the CA Education Foundation of BC. Send your questions on accounting research to Kin at [email protected].

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Become the CEO of Your Life By Dr. Ellen Ernst Kossek and Dr. Brenda Lautsch

On the Cover

Editor:Drs.EllenErnstKossekandBrendaLautschbothspokeonthistopicattheICABC’srecentPDconferenceonWork/LifeBalance,abriefrecapofwhichappearsonpage13.


As a chartered accountant, you might be very efficient at developing business models and quantifying success and

underperformance. However, you might not feel comfortable about the thought of taking those same business models and applying them to your life. Yet that’s exactly the concept behind our new book: CEO of Me: Creating a Life that Works in the Flexible Job Age.1 We believe professionals must become the CEOs of their own lives if they want to achieve true fulfilment on and off the job.

As busy professors with dual careers, multiple children, and doctorates from high-powered institutions, we experience the struggle for work/life balance every day. Through our research, we sought to help ourselves and others identify the work and life patterns we currently use (con-sciously or unconsciously), and then develop patterns that are more productive and better matched to our values.

Our book is based on years of research gathered by talking to over 400 professionals in many different workplaces—from a manufacturing plant to the financial services sector, to people who worked for themselves so they could work at home. We found that many individuals who were successful on paper didn’t feel successful in terms of their lives overall. We also discovered that when it came to feeling successful overall, what mattered was not so much what an indi-vidual did for a living or where they worked, but whether they treated their personal lives with the same care as they did their jobs.

Our research led us to conclude that there are three basic types of workers: integrators, separators, and volleyers. Integrators tend to blend their work and personal lives—whether physically or

psychologically, or both; separators tend to compartmentalize the two; and volleyers tend to fall somewhere in between—blending their work and personal lives one day, then demarcating them the next. Interestingly, we found that a person’s work style didn’t necessarily determine whether they were happy or unhappy. Some people could talk on the phone about work- related issues while watching their kid’s soccer game and have no problem with it. Others found it demoralizing.

We found that the people who expressed the most satisfaction with their lives were those who felt the most in control. In addition, they had positive assets not just in their professional lives, but in their personal lives as well.

Based on this research and our own experiences juggling work and life responsibilities, we created tips to help professionals effectively manage, organize, and assume control over their own lives—thereby helping them find peace and eliminate the stress and out-of-control feelings that plague so many of us.

Here are six tips to get you started on the jour-ney:

Tip 1: See yourself in the driver’s seatIt starts with believing that you are the master of your own life, and seeing the importance of incorporating a work/life strategy in your career strategy. You spent years earning your CA designation—why not put the same effort into planning your life outside of work?

Tip 2: Turn it off sometimes!Cell phones, laptops, and wireless devices have effectively blurred the boundaries between work

and home. Without having a definitive strategy to manage our personal and professional lives, these technologies—however convenient they may seem to be—can actually make our lives worse.

We need to stop seeing multi-tasking as the only or ideal way of working. Turning your technology off more often will help you avoid what we describe in our book as “switching costs”—the process losses that come from switching back and forth between tasks. So stop looking at your BlackBerry® as something you must have tied to your body.

Tip 3: Conduct a life bucket analysisLife bucket analysis exercises like the one we provide in our book will help you prioritize. Start by calculating how you spend your time over the 168 hours in the week, and then compare this breakdown to what you think your ideal would be—this will help you determine how well your professional life aligns with your values. Once you’ve identified the disparities, try to find a way to squeeze out at least one more hour a week to move toward your ideal. This will help you achieve peace of mind.

Tip 4: Identify your flexstyle, then use it to your advantageEvery person has a flexstyle—the way in which they manage the flexibility between their work and family lives. In CEO of Me, we detail the various flexstyles individuals use, and how these different styles work for different personality

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types. We believe that once you’ve identified your own flexstyle, you can make changes toward a better working life.

Are you currently an integrator who mixes work and family all day long? A separator who tries to keep personal roles separate? Or a volleyer who does a bit of both? How is your flexstyle working for you?

If you feel in control as an integrator, you’re probably someone who loves fusing the various aspects of your lives (a “fusion lover”); if you don’t, you might be someone who is simply reacting to life’s pressures by trying to juggle everything at once (a “reactor”). If you feel in control as a separator, you’re probably someone who has consciously made the decision to put either work or family first (a “firster”); if you don’t, you might be someone who feels like their job or family forces them to sacrifice other aspects of their lives (a “captive”). If you feel in control as a volleyer, you’re probably someone who has their timing down pat (a “quality timer”); if you don’t, you might be someone who is constantly facing “job creep”—spending too much time at work or attached to your cell phone (a “job warrior”).

Again, no one style is inherently better than the others. What matters is that you find the flexstyle that suits your personality best, then make it work for you.

Tip 5: Don’t be afraid to ask for helpWe are in a new age of work and family where “abnormal” is the new “normal.” The traditional para-digm of the 9-to-5 breadwinner with a stay-at-home spouse no longer applies—today, stay-at-home dads, dual career couples, sandwiched-generation families (with individuals caring for children and parents at the same time), and “unretired” workers comprise an increasing percentage of the workforce. So don’t think your situation is out of the norm. You are not alone!

Balance can be achieved because we live in a time of unprecedented social transformation, with new ways of working and living resulting from unprecedented access to flexible work arrangements, and from the widespread acceptance of alternative family and living arrangements. In this climate, you should not be afraid to tell your boss or domestic partner that you want to create a new way of working or living. Consider talking to your colleagues as well—you might find allies who want more choice in managing their own work/life relationships.

Tip 6: Start with small stepsStop thinking about work/family or work/life problems in terms of balance or imbalance. In-stead, start thinking about small steps that will help you gain more control over the timing and amount of your work. Consider how to use flex-ibility more effectively to manage your life in a way that will better serve you and the people who matter most to you.

Find your inner CEOThe process of becoming your own CEO starts with you. But we hope the tips we’ve offered here will help you get started on the journey.

Dr. Ellen Ernst Kossek is a professor of human resource management and organizational behaviour at Michigan State University’s Graduate School of Labor & Industrial Relations. She is currently the associate director of the Center for Work-Family Stress and Health, a virtual centre with Portland State University, as part of the National Institute of Health National Workplace Health and Family Network. Kossek holds a Ph.D. in organizational behaviour from Yale University and an MBA from the University of Michigan. She teaches, consults, and conducts research on work/life integration; or-ganizational behaviour; organizational change and design; gender and diversity; globalization and multiculturalism; and a wide range of strategic human resource management issues. Her website at http://ellenkossek.lir.msu.edu/ offers several free resources.

Dr. Brenda Lautsch is an associate professor of management and organization studies at Simon Fraser University, and holds a Ph.D. in industrial relations and human resource management from the MIT Sloan School of Management in Massachusetts. Lautsch is dedicated to helping organizations find better ways to manage flexibility and helping individuals find better ways to balance their work and personal lives. She teaches and conducts research on new work systems and inequality; negotiation and alternative dispute resolution; and the effects of flexible work arrangements on work and life outcomes.


Work/Life Conference Strikes the Right BalanceBy Michelle McRae, Editor

On October 16, 2008, the ICABC PD department held its second Work/Life Balance Conference in Vancouver.

Sixty-six participants attended the full-day event, which consisted of two general sessions and six break-out sessions. Highlights included two leading speakers from the United States, a new venue (the Fairmont Waterfront—its afternoon smoothies, in particular, were a big hit), and some non-traditional topics.

Conference Chair Dallas Leung, CA, CFA, CBV, kicked off the event with some opening comments, talking briefly about his own approach to balance, and describing the work of the CICA Work/Life Flexibility Committee, on which he serves.*

Later, I asked him why he thinks courses on work/life balance are important for CAs. “We’re great at developing the technical knowledge required to be successful as CAs,” he answered, “but we should not forget about developing our greatest asset: ourselves.”

It was one of the themes that ran throughout the Work/Life Conference. Put yourself in the driver’s seat... Invest in your personal growth... Heal thyself...

Those were certainly messages that emerged from Dr. Ellen Ernst Kossek’s opening session, “CEO of Me: Creating a Life that Works in the Flexible Job Age” (see the cover story on page 10). “Work/life is NOT working,” she said, citing the results of her extensive research. Many work environments have work/life policies in place, she explained, but these policies just aren’t being implemented—or, at least, not effectively.

In addition to advocating for better implemen-tation, Kossek offered a number of tips to help us gain greater control of our lives. For example, she shared her theory that we each have a “flex-style”—the “the psychological and physical ways in which we manage relationships between our jobs and our personal lives” (again, see cover story); ensuring that this flexstyle aligns with our values is critical to our sense of fulfilment, she said.

Following Kossek’s presentation were three concurrent break-out sessions: “Finding Your Inner CEO,” with Dr. Brenda Lautsch (Kossek’s colleague—see page 10); “Stress: Who’s in Control,” with Sandy Chernoff, RDH, B.Sc.; and “Practical Meditation for Modern Times” with Claire Maisonneuve, MA.

Each was very well received, but Maisonneuve’s

session on meditation was one of the day’s surprise hits, earning raves from members. Said one participant: “I found this session really tied in the themes of the overall conference and actually gave me something I can do to decrease the stress in my life.”

The afternoon brought a second non-traditional topic: “How Big Is Your Plate? Practical Tips for Healthier Eating,” presented by Ali Chernoff, B.Sc., R.D. It also earned rave reviews.

“I was very pleased to see members rate our meditation and nutrition seminars so highly,” says Moira Bryans, CA, the Institute’s director of PD. “It shows that they’re really open to non-traditional topics when it comes to finding new strategies for work/life balance.”

Two other sessions ran concurrently in the afternoon: “Fostering Resilience in Challenging Times,” presented by Alex Abdel-Malek, MSW, RSW; and “Map Your Path to Balance,” presented by Lisa Martin, PCC. Both also received very positive reviews.

The day’s final session, “Energy Management: The Key to Work/Life Balance,” brought all participants together again. Dawn Groves, an author, trainer, and keynote motivational speaker from the US, kept us thoroughly engaged as she described the challenges faced by (and bad habits of) the average worker—including the fact that many cruise on autopilot 50% of the time (working for the weekend, essentially).

“Most people change out of desperation, not inspiration,” Groves said, emphasizing the need for a proactive approach. To that end, she offered practical tips on how to use our time and energy more efficiently, and how to be more conscious in our daily lives.

To end the seminar, Leung once again took the podium, offering some closing comments. After filling out feedback forms, participants headed home with a number of takeaways in tow. All in all, it was an inspiring, thought-provoking day.

More feedbackParticipants gave the Conference an overall rating of 4.5 out of 5. They appreciated the takeaway

continuedonpage26

The Work/Life Flexibility Committee comprises members from across Canada and Bermuda, including representatives from the provincial institutes. The ICABC’s representative is Moira Bryans, CA, who serves as Committee chair. Along with Bryans and Dallas Leung, CA, CFA, CBV, BC member Monica Murray, CA, also serves on the Committee (Murray is also a member of the Women’s Initiatives Committee, another new CICA initiative).

“The CICA recognizes that there is a need to inform members about these issues and provide best practices to firms on how to develop and assess flexible plans in the workplace,” says Leung. “Personally, I hope to garner new ideas on work/life for my personal life and for my company.”

As a first step, the Committee has created a webpage on the CICA website that includes links to a variety of resources, such as articles, surveys, and webinars.

You can access the Work/Life webpage directly at www.cica.ca/index.cfm/ci_id/33065 or go through the homepage of the CICA website at www.cica.ca (go to “Member Services,” then scroll down and click the “Work/Life” icon).

CICA Work/Life Flexibility Committee

By Taj Haer, CA, Director of Advisory Services, and Michelle McRae, Editor

Most of us face an ongoing challenge when it comes to finding or main-taining a sense of balance between

our work and our lives outside of work. For some CAs, especially many younger CAs, it’s a question of making time for hobbies and downtime with friends and family; for others, it’s more a question of juggling work with parenting and/or elder-care responsibilities, while also trying to find time for themselves.

However universal the desire for work/life balance may be, how we go about achieving it comes down to personal choice—contingent on our own responsibilities, priorities, and aspirations. The following three CAs, each of whom juggles work, parenting, and personal development, share how they’ve created plans that work for them.

Nicola McLaren, CAThe one question Nicola McLaren, a mother of two children and a CA with her own practice, asks every day is: “Is this important, or is this urgent?” It can be easy, she points out, to allow the urgent matters of life to take precedence, while the important matters, involving family, children, friends, or personal care, get over-looked.

“Issues and priorities of parenting, family, or personal development may not always be urgent,” she says, “but they are important.”

Nicola began practising as a sole-practitioner on a part-time basis ten years ago following the birth of her daughter Shannon. She continued with her part-time practice for the next four years, during which time her son Ian was born. Then,

Making It Work: How Three CAs Approach the Work/Life Challenge


suddenly, her husband was diagnosed with terminal cancer. Sadly, he passed away within ten weeks of this diagnosis, and Nicola found herself having to work on a full-time basis while also raising two children as a single parent.

It’s the kind of scenario most of us will find hard to imagine. How has she managed to stay afloat? For the first three years, Nicola continued to drop her children off at daycare and work from home.

“This worked well while my children were young,” she says, “but their needs changed once they started school and my practice became busier. I found myself needing to adjust to the changing circumstances of my family and my business.”

The solution for Nicola involved moving her practice out of her home and hiring a nanny.

Nicola also says that open, honest, and upfront communication with clients from the outset has been instrumental.

“All of my clients are aware of the fact that I’m a single mother, and that there may be times when I need to leave the office early or rush home for an emergency,” she explains. “At the same time, my clients know that the work will get completed and the deadlines will be met, and my children know that there are times when I need to work late.”

Nicola now works a flexible schedule: four days a week from May through December, and five and six days a week during her peak season from January through April.

“My children try to be understanding, and we work together as a family unit and support one another through the busier times,” she says. “And the reward at the end of tax season is a fun-filled family vacation—Disneyland was the destination of choice this year!”

But where does time for herself fit into the equation?

“Finding opportunities for personal development is getting easier as the children are getting older,” Nicola says. “I love to read, and I take time for this during my commute to the office. I also run in the mornings before going to work, and I sing in a choir once a week. Looking back, I now see the importance of self-care and how it empowers me in my relationships with my children, family,

and clients.”Her one piece of advice for others about

balancing career and family is this: “Anticipate and embrace change, and be flexible!”

Janice Redekop, CAFlexibility is certainly a key principle in Janice Redekop’s life—as a career woman, mother, and active athlete, she has a lot on her plate. The key, for her, is a flexible work schedule.

“Even before I had my boys Keoni and Carter, I chose to work a flexible schedule,” she says. “I have a love for sports and music, and I wanted to devote time to those aspects of my life.”

Janice has proactively negotiated flexible work arrangements ever since she became a CA in 1997. While employed as a tax manager at Ernst & Young, for example, she worked half days Monday to Friday. While employed as a senior tax manager at HSBC and later as a controller at a private company, she worked four full days per week. In each case, she agreed to adjust her schedule as needed during busier periods.

“Being a CA has provided me with the flexibility and freedom to be innovative in creating a work/life balance that allows me to pursue my career and my personal interests,” Janice says.

These interests have included training for and completing the 2003 Ironman triathlon in Penticton, and taking a year off in 1998 to focus on music. She describes both pursuits as “undeni-ably rewarding” for her personal growth and experience.

Of course, it hasn’t been without sacrifice. During her year off, for example, Janice and her husband Michael (also a CA) adjusted their

Nicola shares a book with daughter Shannon and son Ian

Quality time for Janice and her family


expenditures and budget to live on a one-income salary.

“We discussed it, planned it, and made changes to our lifestyle accordingly,” she says. The rest of the time, Janice budgets her expenses according to an 80% work schedule.

There is a bit of trial and error to the whole juggling act as well. While working part-time as a controller, for example, Janice found herself at a turning point: Shortly after returning to work following the birth of her son Keoni, she learned that the company she worked for was being sold.

“I had a decision to make,” she says, “about where I would like to go next with my work, and how this would fit into my priorities.”

Janice decided to become an entrepreneur, and in 2006, she and a childhood friend created Healthy Helpings, a meal preparation company that fits perfectly into the balanced living zeitgeist.

“It appeals to busy people who want nutritious meals that are convenient and stress-free,” she explains. “Clients include busy working parents, couples and singles (young and old alike), new moms, and seniors.”

Business has been brisk over the past two years, but Janice quickly found that she wasn’t enjoying the work/life balance she’d hoped to achieve by being her own boss.

“The business required so much of my time,” she says. “I found that I was always working and rushing, and not having enough time or energy for my children, my husband, or myself.”

So Janice recently made the decision to sell the company, and began working part-time in her husband’s real estate development business, Quadra Homes. She now works three days a week, during which time a nanny cares for the couple’s children. Keoni and Carter, who are now 31⁄2 and 11⁄2 years old, also spend one day per week with their grandparents, which gives Janice time for her home, community work, and personal wellness.

“I’ve learned that my priorities and my per-sonal level of balance with family, work, community, and personal wellness continue to evolve as I grow, and as the circumstances of my life change,” she explains. “There was a time when my career was my main focus, but now I find that I want to spend more time with my family and children. My career is still important, but it is no longer the sole measure of how I de-fine success for myself.”

Janice’s advice regarding balance is to tap into your own internal wisdom.

“Listen to yourself, listen to your needs, and decide what you need to feel happy and accom-plished in your life,” she says. “Then begin to

take steps toward achieving that vision. And be patient.”

Rob Holley, CARob Holley offers similar advice.

“Choose your balance, and be flexible about how you achieve it,” he says. “And don’t live your life by anyone else’s standards. There are many different measures of success—consider them all, and then decide which are most impor-tant to you.”

To meet his own definition of success, Rob strives to be both accountable and proactive in balancing his commitments and priorities.

“When weighing the decisions and choices available to me, I try to apply the triple bottom line approach,” he explains. “I consider the envi-ronmental and social consequences, as well as the financial impact. For example, is having a big house, a summer cottage, or a cabin at a ski resort a priority? These decisions will help determine the choices I make in my career, my transportation impact, and how much time and energy I have to devote to my family and to social and environmental activities.”

Adjusting his financial needs has enabled Rob to find a work/life balance that maximises the quality of his life overall.

“The old cliché still applies that there are two ways to be wealthy: a) earn more or b) need less,” he says. “One beautiful evening this summer, while watching the sun set from a quiet beachside in the Gulf Islands, my wife Barb said: ‘You know, we don’t have to own this to enjoy it.’ That sums up our philosophy perfectly.”

An emphasis on family is part of the couple’s shared philosophy. To be actively involved in their children’s lives, Rob and Barb have both worked reduced schedules since daughters Kate (16) and Erin (14) were toddlers.

For his part, Rob first negotiated a reduced schedule while working as a senior manager in the business consulting division of a national accounting firm. At that time, flexible work arrangements were uncommon, and work/life

balance was not an issue readily discussed. “Flexibility was the key to ensuring success

with this arrangement,” he says. “I worked a 60% work schedule without my clients or the major-ity of my colleagues even knowing or being affected by it.

“Barb and I had a rotational schedule in our home (two days on, two days off, and one day shared),” he continues. “‘On’ days included taking the children to and from school, and spending time with them in the afternoons—and dinner duty, of course! ‘Off’ days were at the discretion of the individual, and often in-cluded work and personal time. And of course, ‘shared’ days involved the sharing of family duties.”

They’ve continued with this arrangement as the girls have grown, and even as Rob and Barb have changed jobs. Currently working as a consultant in Richmond, Rob continues to work a flexible schedule that’s responsive to deadlines.

“Barb and I still try to ensure that one of us is home when the girls get home,” he says.

Together, they’re demonstrating big-picture thinking to their daughters.

“We frequently opt to do local recreational activities instead of travelling to costly or remote destinations for once-a-year holidays,” he says. “This enables us to do more activities through-out the year, and helps us reduce our family’s carbon footprint. It’s just one example of how balance in the financial aspect of your life can lead to balance in the others.”

The environmental aspect of his life is very important to Rob. A volunteer on the Bicycle Advisory Committee for the city of Vancouver, he has cycled to work for many years. Commuting in this way not only helps him reduce his impact on the environment, it also provides some much needed time for reflection.

“That transition between home and work is my alone time,” he explains. “It’s my opportunity to slow down and savour the journey rather than focusing solely on reaching the destination.”

Map your own path to balance*Rob touches on a familiar expression: “Life is about the journey, not the destination.” So what

Rob gears up for the commute

continuedonpage26

NEW: CICA work/life balance webpageNeed tools, resources, or tips to create your own plan for work/life balance? Be sure to visit the CICA’s new webpage dedicated specifically to this very topic! Go to: www.cica.ca/index.cfm/ci_id/33065/la_id/1.htm


Since 2002, the BC Institute has sought members’ opinions on the state of the economy through its CA Business Outlook Survey, which is mailed to every active ICABC member currently residing in British Columbia. The Outlook Survey results have often identified trends well

ahead of the curve, proving that BC CAs have their fingers on the pulse of the province. Each year, the Institute uses the survey to identify potential issues for the economy and to help form

its public policy recommendations with regard to improving competitiveness and productivity. The 2008 survey was conducted in early September. Here’s a summary of the results.

On the Canadian economyWe asked members to measure their confidence in the Canadian economy, and the results, overall, revealed that CAs think the country is in for a bumpy ride. When looking at the current state of the Canadian economy, 32.6% of respondents rated it as good, down from 80% in 2007—a dramatic drop of 47.4 percentage points. Another 63% of CAs rated the Canadian economy as fair. Overall, 56.2% said they expect it to worsen over the coming year. Moreover, it’s likely that these numbers have worsened since the survey was conducted, given the deepening of the financial crisis.

By Kerri Brkich, Manager of Public Affairs

CAs Weigh in on Business Outlook for BC

On the BC economyCAs expressed a more positive attitude with regard to the BC economy, but business confidence was still down. In 2007, 43.2% of CAs rated BC’s economy as excellent; in 2008, however, this number decreased to 7.2%, a significant drop of 36 percentage points. That said, most CAs still rated the provincial economy as good or fair (67.4% and 23.9%, respectively) in the 2008 survey.

On future prospectsThe 2008 survey results indicate that CAs are less certain about the future now than they were a year ago; 48.2% said they expect the BC economy to worsen over the coming year—up from 19% in 2007. And while 49.4% of respondents said they think BC’s economy will continue to grow faster than the Canadian average over the next 24 months, this number is down significantly from 2007, when 73.1% of respondents saw more growth ahead.

Still, there is great optimism about the long-term, as many respondents said they expect both the Canadian and British Columbian economies to improve within the next five years (50.9% and 46.9% respectively).

On policy making and competitivenessCAs expressed reasonable satisfaction with federal and provincial policy makers. When judging the federal government’s management of the economy, CAs were split between fair and good ratings (46.5% and 40.3%, respectively). When looking at the public policy direction taken by the BC government, a majority of CAs (53.2%) said the government was doing a good job creating opportunities for business.

Overall, the message for government was clear: In these tumultuous times, it is more important than ever for policy makers to keep their eye on the ball with regard to the economy, and to use all of the policy tools available to maintain stability, encourage investment, and boost productivity.

When asked to identify the single most impor-tant step government could take to improve competitiveness, an overwhelming number of


CAs said that maintaining a competitive tax regime—for all provincial taxes—was paramount. Many also said that PST reform, including harmonization with the GST, was a policy whose time had come. Cutting red tape in general, and the regulatory burden on business in particular, also ranked high on the list.

When looking at the top six issues threatening BC’s competitiveness (both major and moderate), CAs identified attracting and retaining high-calibre employees as the top issue, just as they did last year; however, the rest of the list shifted, with some issues gaining in prominence, while others waned.

2008 Total 1 Attracting and retaining high-calibre 91.7%

employees/skilled labour

2 Global economic climate 78.4%

3 Ability to raise capital 75.7%

4 Canadian economic climate 74.2%

5 Housing Prices 72.5%

6 Commodity Prices 71.0%

On financial managementIn challenging economic times, many businesses adopt a conservative approach to financial management. This year’s survey results prove that many BC businesses are indeed tightening their belts.

In 2007, most CAs in public practice (55.4%) said they expected their clients’ businesses to expand over the coming year; in 2008, only 28.3% had the same expectation—a drop of 27.1 percentage points. According to the 2008 survey results, the majority of CAs in public practice (50.3%) now think their clients’ businesses will stay the same over the coming year, while 21.4% think these businesses will contract; this latter figure is up from only 5% in 2007.

CAs in industry and other fields were more optimistic about business growth, and were split evenly (at 44.6% each) between those who expect their busi-nesses to grow over the coming year and those who expect their businesses to stay the same. Only 10.8% of CAs in these sectors said they expect their business to contract.

On business confidenceThis year’s survey results clearly indicate that although business confidence is down, most CAs believe BC’s economy has a solid foundation. While the province faces many challenges over the coming year, some of which are out of its control, most of our survey respondents believe the province is in a good position to weather the storm.

About respondentsAs in previous years, the majority of CAs who participated in the 2008 CA Business Outlook Survey were evenly split between industry (47.1%) and public practice (39.3%); many worked for companies with 50+ employees (56.5%); and many were from the Vancouver/Lower Mainland (69.4%).

Budget lock-upThe CA Business Outlook Survey is an important means by which the Institute develops its public policy recommendations. Representatives from its Executive and Council will be attending the 2009 BC Government Budget Lock-Up in Victoria on February 17, 2009, and will add the CA voice to those calling for a renewed commitment to competitiveness, red-tape reduction, and improved productivity.

Want to participate in next year’s budget consultation process?Please contact Kerri Brkich, the Institute’s manager of Public Affairs, at [email protected] or 604-488-2625.

2007 Total 1 Attracting and retaining high-calibre 96.8%

employees/skilled labour

2 Housing Prices 82.5%

3 US trade policy 65.4%

4 Global economic climate 65.1%

5 Current value of the Cdn $

compared to the US $ 64.8%

6 Ability to raise capital 59.2%

Top six issues threatening BC’s competitiveness

BCAIRPBritish Columbia Association of Insolvency & Restructuring Professionals Trust. Accountability. Integrity. Knowledge.

BCAIRPBritish Columbia Association of Insolvency & Restructuring Professionals Trust. Accountability. Integrity. Knowledge.

www.bcairp.ca


Tax Traps & Tips

United States Expatriation Tax ReformBy Robert E. Ward, J.D., LL.M.

A fter several false starts, legislation has been enacted to implement proposals to reform the way in which the United

States taxes expatriating citizens and long-term residents. Generally, the tax legislation enacted as the primary revenue raiser of the P.L. 110-245: Heroes Earnings Assistance and Relief Tax Act of 2008 (the “HEART Act”) creates an “exit tax”—that is, assets of the departing citizen or long-term resident are “marked to market” in a deemed sale triggering gain recognition on the day before expatriation or residency termination. Net gain on the deemed sale is recognized if it exceeds $600,000.

Individuals covered The exit tax applies to tax expatriates (US citi-zens who relinquish citizenship or long-term residents who terminate residency in the United States) who satisfy any of the following three tests: 1. Their average annual net income tax liability

for the five years preceding expatriation or residency termination exceeds $139,000 (an adjusted amount for 2008 reflecting a base amount of $124,000 in 2004);

2. They have a net worth of $2,000,000 or more on the date of expatriation or residency termination; or

3. They have complied with all US federal tax obligations for the preceding five years, and file appropriate certification (under penalties

worldwide income in the interim.In the case of a long-term resident, the expa-

triation date is the earlier of the date on which the tax expatriate loses green card status through revocation or the date on which the loss of their green card status is judicially or administratively determined. Revocation of green card status is accomplished by filing Form I-407: “Abandon-ment of Lawful Permanent Resident Status.” Absent loss of green card status, expatriation will not occur until the tax expatriate: 1. Begins to be taxed as a resident of another

country under a tax treaty between that country and the United States;

2. Fails to waive the benefits of the treaty applicable to residents of that country; and

3. Notifies the Internal Revenue Service that they have become a resident of another country under the tax treaty between that country and the US.

In addition to the requirements specific to US citizens and long-term residents, both types of tax expatriates must also file Form 8854 with the Internal Revenue Service to document their ex-patriation. However, unlike under prior US law, tax expatriates are not required to file this form for ten years. Instead, Form 8854 is filed only for the year in which expatriation occurs.

Failure to file Form 8854 subjects the tax expa-triate to a $10,000 penalty.

Return to the United StatesPrior law re-imposed US income taxation on worldwide income in the case of tax expatriates who returned to the United States for more than thirty days within ten years of renouncing US citizenship or terminating long-term residency. The new law continues these rules, but only for persons who expatriated prior to June 17, 2008.

Current US law allows the US attorney general to deny admittance to any tax expatriate. It is believed this authority has yet to be used.

Failure to file Form 8854 may make return to the United States more difficult.

Tax consequencesGenerally, expatriation triggers gain recognition and income acceleration for the tax expatriate. Assets are deemed to be sold on the day before expatriation, and are fully taxable in the year of expatriation to the extent that the gain realized exceeds $600,000. No opportunity exists to take advantage of deferral rules, such as those pro-vided by Section 1031 of the IRC. The tax expatriate is deemed to own all assets of any trust characterized as a grantor trust under the rules of

of perjury), along with supporting evidence of compliance.

Exceptions to the first and second tests are available for dual citizens who have not been resident in the United States for more than ten taxable years during the fifteen-taxable-year pe-riod beginning with the year of expatriation, and for US citizens who relinquish their citizenship before reaching age eighteen and a half and have not resided in the United States for more than ten taxable years during the fifteen-taxable-year period before the date of relinquishment.

The definition of a long-term resident is con-sistent with prior law: someone who is a lawful permanent resident of the United States for at least eight of the fifteen taxable years prior to the taxable year in which the individual either ceases to be a lawful permanent resident or is treated as a resident of another country under a US tax treaty.

Relinquishing US citizenship or long-term residencyLeaving the United States with the intention of never returning is insufficient to relinquish citizenship or terminate residency. For persons who are US citizens, the expatriation day is the earliest of the following four events: 1. Renunciation of US nationality before a

diplomatic or consulate officer; 2. Furnishing the US State Department with

a signed statement of voluntary relinquish-ment of US nationality;

3. Issuance by the US State Department of a certificate of loss of US nationality; or

4. Cancellation of a certificate of naturalization by a US Court.

Situations 1 and 2 require confirmation by the US State Department. Although such confirma-tion is retroactive to the date at which renunciation occurred, the tax expatriate re-mains subject to US income taxation on


Subpart E of the Internal Revenue Code (IRC). Tax expatriates are also deemed to have re-

ceived distribution of their entire interest in IRAs and other specified tax deferred accounts on the day before the expatriation date (although the 10% early distribution penalty will not ap-ply). “Specified tax deferred accounts” include IRC Section 529, qualified tuition plans, IRC Section 530 Coverdale Education Savings Ac-counts, IRC Section 223 Health Savings Accounts, and IRC Section 220 Archer Medical Savings Accounts.

Exceptions In addition to an exemption for the first $600,000 of gain realized on the deemed sale of the tax expatriate’s assets, deferred compensa-tion arrangements that satisfy certain conditions, beneficial interests in non-grantor trusts, and certain tax-deferred accounts are also exempt from the acceleration of income required by the HEART Act.

In the case of green card holders, the basis used to compute gain or loss on the deemed sale of the tax expatriate’s assets is stepped up to the value of the tax expatriate’s property on the date at which they first became a US resident.

Deferred compensationAcceleration of the income attributable to the tax expatriate’s deferred compensation plans can be avoided if: 1. The payer of the deferred compensation is a

“United States person” as defined by IRC Section 7701(a)(1), or elects to be treated as a United States person for purposes of US tax withholding;

2. The tax expatriate notifies the payer of his status; and

3. The tax expatriate executes an irrevocable waiver of any right to treaty benefits that could reduce the withholding tax.

Eligible deferred compensation items remain subject to a 30% US withholding tax that is not subject to treaty relief. Deferral is only available for any contributions made to the deferred com-pensation plan that are attributable to services the tax expatriate provided while in the United States.

Non-grantor trustsSimilarly, distributions from non-grantor trusts are also subject to a 30% withholding tax, and not subject to reduction by tax treaty. Although the withholding requirement is imposed on both US and non-US trusts, it is unclear how the

Internal Revenue Service would go about en-forcing the withholding requirement against foreign trustees.

In the case of non-cash distributions, the trust is required to recognize gain on property distributed to the tax expatriate as if it had been sold at fair market value.

Elective deferralTax expatriates may elect to defer payment of the exit tax, but they will be subject to an inter-est charge equal to that applied to tax underpayments in the United States. The elec-tion can be made on a property-by-property basis, but it is irrevocable.

Under the deferral system, tax is paid to the US for the taxable year in which the property is either sold or otherwise subject to disposition. If the property is not sold or disposed of during the tax expatriate’s lifetime, the exit tax is due on or before the due date for the tax return for the year in which they died.

Deferral is subject to a requirement to post bond.

Gifts and bequests from tax expatriatesThe HEART Act creates a special transfer tax on any gifts and bequests made by a tax expatriate to US citizens or residents (other than spouses or charities) that are not reported and filed on a US gift or estate tax return in a timely manner. This tax is imposed on the value of the gift or bequest at the highest marginal US federal gift or estate tax rate in effect on the date of receipt by the US citizen or resident. (The rate is currently 45%.) The transfer tax is imposed on a calendar year basis, and is subject to an annul exclusion of $12,000 USD (adjusted for inflation).

The transfer tax is reduced by any corresponding gift or estate taxes paid to a foreign country. If a marital or charitable deduction would have been available to the tax expatriate had the gift or bequest been made while they were a US citizen or resident, the gift or bequest will be exempt from the transfer tax imposed by the HEART Act.

Special rules apply for gifts or bequests made to US trusts and foreign trusts with US benefi-ciaries. In the case of the former, the transfer tax is imposed on the trust. In the case of the latter, the transfer tax is imposed as distributions are made to the US beneficiaries. If the distribution from the trust or estate is subject to US income tax, the beneficiary will be able to deduct the transfer tax imposed by the HEART Act in computing their US income tax obligation.

continuedonpage29


PD News

Upcoming Professional Development – Fall PD Program

For detailed course descriptions or a complete schedule of upcoming PD seminars, consult your fall 2008 PD brochure or visit our website at www.icabc-pd.com. To register, call the PD department at 604-681-3264.

CAs in Industry PD DayFinancial professionals in industry have to stay informed about many facets of business, including emerging trends in financial management, changes in compliance and reporting, and other outside influences that could affect their business.

This conference is designed to provide relevant information for use in your workplace. The focus will be on building skills in your areas of responsibility. Dec 09, 8:40am-5pm, Vancouver Convention & Exhibition Centre

Audit & Accounting2008 Bill 198/SOx and IFRS ComplianceBill 198/SOx compliance requirements have put tremendous pressure on organizations in terms of cost and resourcing needs. Organizations will now be further challenged by the requirement to fully adopt IFRS by 2011.

This seminar will provide participants with a practical understanding of the critical elements of the compliance requirements under both Bill 198/SOx regulations and the IFRS transition requirements. It will also lay out the interaction between the compliance needs of both sets of rules, and will provide practical solutions to finance groups in all public companies.Nov 21, 9am-5pm, Vancouver

A Practical Approach to Bill 198/SOx ComplianceThe objective of this seminar is to give partici-pants a practical understanding of the compliance requirements in order to help them design and evaluate internal controls in a timely and cost- efficient manner. It will build upon participants’ basic knowledge, and will focus on issues. The seminar will also show participants how to sustain their compliance programs and how to integrate the Bill 198/SOx requirements into their daily business activities. Nov 20, 9am-5pm, Vancouver

Addressing Fraud RisksThis seminar will address potential fraudulence in balance sheet components and transaction streams, and provide practical tools to help organizations combat fraud. It will also review sample codes of conduct, sample fraud policies, and a risk checklist, and provide other practical materials to help attendees build a corporate culture that prevents and detects fraudulent ac-tivity. Nov 25, 9am-5pm, Vancouver

Controls Documentation & Assessment: How to Comply with the CEO/CFO Certification RequirementsThis seminar will provide participants with an understanding of the regulatory requirements for CEO/CFO certification. It will focus on recent changes and new additions, and provide a management framework, tools, and activities to help participants comply with these requirements.Nov 19, 9am-5pm, Vancouver

Not-for-Profit Governance – What’s New?This seminar will provide CAs with an update on best practices in non-profit governance for charitable organizations, and give them a chance to discuss the opportunities and challenges in their non-profit work. Participants will leave with a clearer understanding of how they can best help charitable organizations achieve their goals efficiently, thereby protecting and serving all of the stakeholders involved.Nov 21, 9am-12:30pm, Vancouver

PSAB Update & Conceptual Framework and the Reporting ModelThis one-day seminar will provide up-to-date information on the recent releases of the Public Sector Accounting Board (PSAB) and the current proposals the Board is considering. The seminar will also provide you with insights into PSAB’s conceptual framework and reporting model.Nov 26, 9am-5pm, Kelowna

Nov 27, 9am-5pm, Vancouver

Nov 28, 9am-5pm, Victoria

Public Company Reporting: Annual UpdateFor those involved with public companies, work continues to get more challenging as professional standards continue to change at a rapid pace. Even those who don’t prepare or audit the financial statements of public companies, must be aware of these changes to do their jobs properly.

This annual update will be beneficial regardless of whether you work in public practice or in industry. You will learn about recent accounting and regulatory developments relevant to you, your clients, and/or your employers.Nov 20, 7:30-11am, Vancouver

ManagementCommunicating Across GenerationsMaster communicators possess both the knowledge and the skills needed to speak to any audience, regardless of age or background. Participants of this in-depth full-day workshop will have the opportunity to enhance their communication skills by considering the latest research on communication and then engaging in various skills-building and role-playing exercises.Dec 11, 9am-5pm, Vancouver

Building Enterprise Performance DashboardsChanges in the competitive landscape have resulted in increased focus on enterprise perfor-mance by senior management and stakeholders. The need for better and more relevant information in managing a business has also led many organiza-tions to look beyond traditional “accounting”-based

The pressure to perform has never been so intense. CEOs and Boards have

program will take you beyond the traditional and guide you on designing

value-driven performance indicators and compensation incentives.

THE VALUE-DRIVEN CFO March 22-25, 2009Dunsmuir LodgeSidney, BC

For registration and more information visit:www.icabc-pd.comor contact the PD Department at the ICABC at 604 681.3264

EXECUTIVE LEADERSHIP PROGRAM

other expectations from their CFOs – enhance shareholder value. This*


(and often historically-based) performance mea-sures. Increasing focus has been placed on understanding and improving performance as it affects other key stakeholders.

In this seminar, you will gain insights into the usefulness of well-designed scorecards for corpo-rations and business units. Through real examples, cases, and hands-on work, you will gain an increased appreciation of the importance of these scorecards in improving performance, and learn how to help your company exceed expectations through successful implementation of the balanced scorecard.Nov 21, 9am-5pm, Vancouver

Building Innovative, High-Performance TeamsIf you don’t know the critical ingredient needed to build great teams, what makes a team great, why teamwork doesn’t get the attention it de-mands and deserves, what the #1 cause of low performance is today, what sustains perfor-mance, and why people leave their jobs, then this day was designed with you in mind.

In this seminar, you will learn how to diagnose your team’s readiness to embrace greater pro-ductivity, innovation, and accountability; how to work smart and accomplish more in less time; how to encourage genuine feedback; how to

become stress and dispute-free; how to motivate the unmotivated or end-of-career employees; and how to engage the new generation of knowl-edge workers who will determine your future.Dec 03, 9am-5pm, Vancouver

Effective Financial Analysis for Business Decisions – Small and Medium-Sized BusinessesTaking this seminar will prove invaluable when it comes to preparing a business case for changing current operations and for undertaking future investment and financial decisions. It will introduce a decision-making format for financial information, along with a road map for providing consistent, well-articulated analyses and recommendations.Nov 20, 9am-5pm, Vancouver

Enhancing Your Leadership ImpactIn their quest to be effective leaders, managers often try to emulate the leaders who’ve influ-enced them. While this can be helpful, discovering your own style will lead to a more authentic engagement with others in the work-place. Building on your own strengths will enable you to maximize your impact on others.

Using the Myers-Briggs Type Indicator, this highly interactive and engaging workshop will

help you identify and enhance your leadership impact Participants will receive an 18-page cus-tomized report that will help them explore and identify how they can enhance their leadership impact while remaining true to themselves and their own style.Dec 04, 9am-5pm, Vancouver

CPD REMINDERThe 2008 CPD reporting form must be completed and submitted by January 31, 2009.

Please Note: Your 2008 CPD formmay now be submitted online at: www.icabc-pd.com

continuedover


It’s a People BusinessUsing the “D.I.S.C.” personality model, this seminar will help CAs understand the differences between the key personality types with whom they deal on a day-to-day basis. This includes clients, co-workers, and others—both inside and outside the profession—who are instrumental to their success. Attendees will also gain a better understanding of their own personality types. Nov 26, 9am-12:30pm, Vancouver

Leadership – Unleashing the Power of Full EngagementIs there a partner, senior manager, CFO, or controller out there who wouldn’t love to know how to get their staff “fully engaged” in their work? We doubt it!

The objective of this workshop is to provide some of the insights, tools, and skills required to become an “engaging” leader—one who brings out the dedication, creativity, and adaptability of the people on whom they rely to meet chal-lenging goals.

The workshop will be of interest to anyone who wants an opportunity to learn and grow as a leader. Participants will have the opportunity to compare and contrast their current leadership approach with the approach taken by truly

engaging leaders, and acquire applied leadership skills.Nov 19-20, 9am-5pm, Vancouver

Project Management EssentialsThis workshop will provide participants with a high-level understanding of the project manage-ment process, and will establish a common language, framework, and tool set for project work. It will include hands-on, case study-based practice, and will do so in a setting that both il-lustrates and requires collaborative behaviour. Nov 24, 8am-5pm, Vancouver

TaxationNon-Profit Sector & GST – A Simple Tax?While often touted as a simple tax, the GST is often anything but simple when it comes to the non-profit sector. For many non-profit organi-zations with limited resources, dealing with the GST is challenging. This half-day introductory seminar will focus on the GST rules that are applicable to charities and non-profit organizations, and highlight common GST errors made by such organizations. Nov 26, 9am-12:30pm, Vancouver

Practising Safe TaxThis half-day seminar is designed to help CAs reduce their exposure to liability in their tax practices. It will focus on the procedures and processes related to practising in the tax arena, and will highlight key areas in which practitioners can better protect themselves from liability. The seminar will also review the technical issues most commonly associated with AICA claims. Dec 10, 1:30-5pm, Vancouver

RIP: Tax Compliance Matters Related to Terminal Filing PreparationThis seminar will focus on detailed tax compliance matters related to preparing filings for deceased individuals and testamentary trusts. It will include a significant degree of technical detail to address the myriad issues that can arise when planning and preparing the various individual testamentary filings.Nov 25 9am-5pm, Vancouver

RIP: Estate Planning to Minimize Tax LeakageThis seminar will focus on estate planning matters for owner-managers and high-net-worth individuals. It will address, in detail, tax matters that are relevant to a typical estate freeze transac-tion. It will also review the important matters to consider when estate freeze transactions involve the use of various types of trust relationships.

Other technical topics will include tax consid-erations associated with charitable giving, as well as interesting life insurance concepts that should be considered when planning the owner-man-ager estate.Dec 08, 9am-5pm, Vancouver

Introduction to US Multi-State TaxationThis introductory seminar will provide a basic understanding of multi-state taxation, and will cover the key concepts and problems involved in the state income taxation of multi-state businesses. The seminar will focus on state income/ franchise taxation, with a brief discussion on sales/use taxes. This seminar will also include case studies and group discussions, which will focus on Canadian entities operating in the US. Dec 03, 9am-5pm, Vancouver


Nominate a future presidentThink you know a CA who could lead the ICABC through a constantly evolving environment? Nominate

them for future presidency!

We’re looking for CAs who are dynamic leaders and front-runners in their professions and communities—

CAs who have the ability to inspire others.

The candidate chosen by Council will be appointed third VP of the ICABC in early 2009, and must seek

election to Council if they are not already a Council member. If elected, this individual will subsequently

be appointed second VP in June 2009. Provided that they remain an elected member of Council, they will

then be appointed first VP in 2010, and president in 2011.

Nomination steps: • Submit a nomination form. Forms are available on the ICABC website at www.ica.bc.ca, under Member

Centre/Forms and Dues/Member Recognition/Nomination Forms Presidential Nomination Form.

You can also access the form by direct link at www.ica.bc.ca/pdf/presidentialnominations.pdf,

or by contacting Sandra Parcher at [email protected] or 604-488-2602.

• Be aware that candidates, proposers, and seconders must be members

in good standing with the ICABC.

• Tell us why you think the nominee should be considered for election

to the ICABC presidency.

Please note: Candidates should have demonstrated leadership

in one or more of the following areas:

The work of the British Columbia or Canadian Institute

The pursuit of his/her career

Voluntary service (with business, charitable, civic, community,

political, or professional organizations)

Research, teaching, writing, or speaking on professional matters

• Make sure the nominee will accept the position if selected.

Nomination forms should be marked “Confidential” and addressed to:Attn: Chair of the Presidential Nominating Committee

c/o Chartered Accountants of BC

Suite 500, One Bentall Centre

505 Burrard St, Box 22

Vancouver, BC V7X 1M4

All nomination forms must be received at the ICABC office by January 5, 2009.


Plugged In: News for and about members & students

Congratulations!

Rob Bakos, CA, has returned from a two-year secondment as the CFO of HSBC’s operations in Istanbul, Turkey, and has taken on the role of SVP, Strategy & Planning for HSBC Bank Canada.

At an inauguration ceremony held October 3, 2008, Arvinder Bubber, CA, was officially installed as the first chancellor of Kwantlen Polytechnic University. His appointment marks an important milestone in Kwantlen’s transition to university status (the school celebrated its first official day as a university on September 2, 2008).

Bubber will serve a three-year term as chancellor. He previously served as chair of Kwantlen University College’s board of governors from 2002 to July 2008. The owner of CA firm A. S. Bubber & Associates Inc. in Surrey is also a member of the Canadian Federation of Independent Business, and vice-chair and a member of the Asia Pacific Trade Council.

In September 2008, several CAs were elected to the executive board of the Vancouver chapter of Financial Executives International: Peter Ballachey, CA, CIA, a consultant, was elected president, and Doug Cucheron, CA, of S. L. Feldman & Associates, was elected treasurer. Danley Yip, CA, of Robert Half Management Resources, is the past-president and an ongoing member of the membership committee. The following CAs also serve on the board: Brad Bardua, CA; Neil Hummel, CA, of LMI Technologies Inc.; Hugh Lindsay, FCA, of Financial Mentors Group; Sarah MacKinnon, CA, of Xantrex Technology Inc.; Doug Morison, CA; Alan Wong, CA; and Angela Yap, CA, of Anthem Properties Group.

Did You Know...? (A note from Member Services)

Did you know that the BC Institute

offers Interlock’s employee assistance

services for free to all members and

students, and their immediate family

members?

Through its confidential counselling

and referral service, Interlock can

help you find solutions to personal,

family, and/or work-related issues.

Interlock’s highly skilled and

experienced counsellors can help you

address many areas of concern,

including:

• Marital and family relationships

• Career management

• Work-related conflicts

• Stress

• Work/life balance

These services are available to you at

no charge—it’s one of the benefits of

your membership with the BC

Institute. And rest assured that

although the ICABC pays the bill, we

are not privy to your usage of these

services.

Interlock offers services throughout

Canada and around the clock. It now

even provides “e-counselling” online.

You can call Interlock at 604-431-

8200 within Metro Vancouver, or

1-800-663-9909 toll free in the rest

of the province and internationally.

Or visit Interlock’s website at www.interlock-eap.com.

No matter how busy your schedule,

be sure to take care of your

emotional and physical well-being.

Ski Tickets No Longer Available through InstituteAs of the 2007 ski season, the Institute no longer has access to discounted

Whistler/Blackcomb ski tickets for members.

Last year, we continued to sell tickets anyway. This year, however, we have

decided to discontinue the practice. As some of you told us last year, it no

longer makes sense for the Institute to sell ski tickets when members can

purchase tickets for the same price at regular outlets.

We apologize for any inconvenience. We will continue to look for other

opportunities to provide you with benefits, and we’ll alert you to any new

offerings as they become available.

If you have any questions, please contact Sherie Kanouse at 604-488-2617.

Meet some new faces at the ICABC!

Director of Practice Review & LicensingLisa Eng, CA, CPA (Illinois)

Lisa Eng joined the Institute as our director of Practice Review & Licensing (PRL) in June 2008, bringing extensive management experience in both public practice and industry to the role.

Lisa previously worked as VP of finance with Ultrasonix Medical Corporation, an international company based out of Richmond. She managed all aspects of the company’s financial and administrative operations, and her myriad responsibilities included preparing and reviewing quarterly and annual external financial statements in accordance with Canadian GAAP; and developing internal financial, administrative, and human resource controls, policies, and procedures for operations in Canada, the US, and Brazil.

Prior to joining Ultrasonix, Lisa served as corporate controller for Azure Dynamics Inc. in Burnaby, managing various aspects of the international company’s financial and administrative operations. Her duties included preparing quarterly and

annual external financial reporting on the Toronto and London stock exchanges; and developing internal financial, administrative, and human resource controls, policies, and procedures for operations in the UK and Canada.

Before making the move into industry in 2004, Lisa worked for nearly eight years with KMPG LLP in Vancouver, where she was promoted early to manager. As senior audit manager of the firm’s technology group, she managed all aspects of the auditor-client relationship for Canadian and US public and private companies. Her responsibilities also included providing technical guidance regarding Canadian and US GAAP, and teaching technical training sessions on new accounting pronouncements and audit methodology.

“I sympathize with practitioners—I understand that keeping up with all of the regulatory changes in our profession can be very challenging,” Lisa says. “My goal for the PRL program is to provide practitioners with education and support so that they can continue to provide the highest level of service for their clients.”

Lisa became a CA in 2000, and a CPA (Illinois) in 2002. She has a bachelor of business administration from Simon Fraser University, and is also a graduate of SFU’s CA Co-Operative Education Program. Outside of work, Lisa enjoys playing Ultimate Frisbee, snowboarding, hiking, running, and spending time with her husband Lawrence and their 16-month-old daughter Kayla.

Associate Director Professional DevelopmentStella Lam-Leung, CA

Stella Lam-Leung joined the Institute’s Professional Development department in September 2008, taking on the newly created position of associate director. This new role gives her oversight of two critical PD functions: In collaboration with Moira Bryans, CA, our director of PD, Stella is responsible for the development and delivery of PD conferences and programs; in collaboration with Wendy Royle, CA, our senior director of Regulatory Affairs, she is responsible for the CPD program, which includes helping members make the transition to the new international standards.

“I’m excited to support our members’ commitment to their continuing professional development,” she says. “By actively listening to members and ensuring that the Institute continues to deliver a robust PD program, I look forward to helping CAs continue to provide professional services of the highest quality.”

Stella became a CA in BC in 1997, three years after earning a bachelor of commerce degree from the University of British Columbia. She articled with Wolrige Mahon, where she provided assurance services primarily in the hospitality and real estate development industries, as well as for a number of not-for profit organizations. Shortly after passing the UFE in 1995, Stella began to specialize in tax, focusing on estate planning services for owner-managed clients.

After four years with Wolrige Mahon, Stella made the move into industry, joining HSBC in Vancouver. Over the next ten years, she took on progressively senior roles with HSBC, both in Vancouver and in London, England.

While working at HSBC’s global headquarters in London, Stella specialized in international tax, and was a member of the project management team that restructured the HSBC Group globally following tax changes in the UK. She also provided guidance on the structuring of mergers and acquisitions activities around the globe.

Most recently, Stella headed up the tax function at HSBC Global Asset Management (Canada) Limited in Vancouver, which included tax oversight for the HSBC Mutual Funds and tax due diligence for new product initiatives for institutional, high-net-worth, and retail clients.

Outside of work, Stella’s hobbies include travelling, photography, and running (she will be running her first half-marathon later this year). She also spends her spare time seeking out adventures with her husband Dallas Leung, CA (interviewed on page 13 about the Work/Life Balance Conference) and their children Connor (4) and Caitlin (2).


PhotosbyMichelleMcRae


material and the opportunity to network and dialogue with peers and instructors on issues of work/life balance and best practices. (Interestingly, in terms of demographics, men outnumbered women, and members from industry outnumbered their counterparts from all other sectors combined.)

Feedback from the 2008 Conference will help shape future PD offerings. This includes feedback about topic ideas. Among the topics requested were non-technical management and personal topics that focus on creating better work environments; tips for dealing with difficult people and with stress; and practical advice on incorporating core values into work life.

“Participants gave us some great ideas,” Bryans says. “We offer courses in some of the areas already, but their feedback shows us where we can expand our program.”

If you have questions or comments about the Institute’s Work/Life PD offerings, please contact Moira Bryans, CA, at 604-488-2640 or [email protected], or Stella Lam-Leung, CA, at 604-631-2570 or [email protected].

All information is held in the strictest confidence

To apply for assistance, contact: Amy Lam, CA Senior Director of Member Services & Fund Secretary

Phone: 604-488-2629Toll Free: 1-800-663-2677Email: [email protected]

ICABC’s Benevolent Fund offers support to members

in need

do you want your journey to look like? And how will you go about making it possible? Hopefully these testimonials will help you figure out the answers to both questions. And look for more stories about work/life balance in future issues of Beyond Numbers.

*Wording inspired by the title of Lisa Martin, PCC’s seminar “Map Your Path to Balance,” which was offered at the recent PD Work/Life Balance Conference (a recap of the Conference appears on page 13). Martin is the author of Briefcase Moms: 10 Proven Practices to Balance.

Work/Life Conference Recap continued from page 13 Making It Work continued from page 15


Employment

:

Sen


Sales / Marketing

Finance / Accounting

Production / Operations

High Tech / Electronics

Executive / Management

Executive Assistants /Administrative Assistants

Information Technology

Human Resources

Administration

Engineering

People: Your prime asset,our prime resource.PERMANENT • CONTRACT STAFFING

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Tel: 604.688.9595 • Fax: 604.688.3608 • [email protected] West Georgia Street, Vancouver, BC V6E 4A2

BRANCH OFFICES IN CALGARY & TORONTO

Russell J. Chew, CA CFP FCSI Ch. P Strategic Wealth

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Phone: 604.482.8404

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[email protected] …Providing clients with peace of mind and financial freedom to pursue their dreams and goals

TD Waterhouse Private Investment Advice is a division of TD Waterhouse Canada Inc. ("TD Waterhouse"), a subsidiary of The Toronto-Dominion Bank. (*) Trade-mark of The Toronto-Dominion Bank. TD Waterhouse is a licensed user. TD Waterhouse - Member CIPF.

At Your Service


Classifieds

GERMAN SPEAKING CA SOUGHT TO SUCCEED RETIRING PARTNER

Two partners with $1.5M in gross

billings. Suitable candidate to have

two or more years of post-

qualification experience and strong

desire to be a general practitioner

with emphasis on tax and cross-

border taxation issues. Flexible

transition assistance. Part-time would

be considered. Financing will be

provided to the right candidate. Reply

by email to [email protected].

SOLE-PRACTITIONER IN DT VANCOUVER with broad base of

clients planning for succession

arrangements. Good opportunities for

an individual with public practice

experience. Reply in confidence

to [email protected].

RENT SPACE/COST SHAREBurnaby CA firm has up to an extra

2,000 sq. ft. for rent including reception

and boardroom. Interested? Please

call: 604-451-8330.

SUCCESSFUL VANCOUVER PRACTICERetiring CA offers succession

opportunity. Two partners with $1.5M

in gross billings. Diverse block of

long-term clients (compilation, review,

and audit engagements with

emphasis on tax and cross-border

taxation issues). Candidate to have

two+ years of post-qualification

experience. Preferably German

speaking. Flexible transition

assistance. Part-time would be

considered. Financing will be

provided to the right candidate. Reply

by email to [email protected].

At Your Service

PRACTICE WANTED IN GREATER VANCOUVERPractising accountants are interested

in purchasing an accounting practice

or block of accounts. Flexible succession

arrangements can include existing

staff. Please reply in confidence to

[email protected].

Effective dateThe tax expatriation legislation is codified in the new IRC sections 877A and 2801, and is effective for US citizens and long-term residents who expatriate or terminate their residency on or after June 16, 2008, and to gifts and bequests made by such persons after that date.

Robert E. Ward, J.D., LL.M., is the president of Robert E. Ward & Associates, P.C., a US-based law firm that recently opened an office in Vancouver, which advises Canadian individuals, businesses, and not-for-profits on US legal and tax matters. He specializes in tax law, business and estate planning, international taxation, and foreign trusts, and teaches law as an adjunct professor at the George Mason University School of Law.

Tax Traps & Tips continued from page 19


Have you ever thought about what’s in your recycling bin, and where it actually goes when you send it out for

disposal? With the rise of identity theft and in-creasing concerns about privacy comes increasing pressure on professionals to dispose of confidential client information properly.

One CA found out the hard way that her disposal system was flawed.

The situationShirley* has been a sole-practitioner for over 20 years. In April 2008, after several long days spent preparing personal tax returns for clients, Shirley found herself with a considerable amount of paper waste—documents and information she believed she didn’t need for her files. Some of this “waste” contained personal client information.

Shirley put all of this paper into her office building’s recycling system. Soon after, it was transferred (in bags) to a facility for processing. Such facilities generally have excellent security controls; unfortunately, in this case, some spillage occurred and client documents fell into the hands of the recycling plant’s supervisor. Noticing that the documents contained sensitive information—such as social insurance numbers, names, and birthdates—the supervisor contacted Shirley and arranged to return the documents. Shirley was, understandably, relieved.

The supervisor also contacted the Institute, as he thought Shirley’s regulatory body should know about this breach of privacy. The Professional Conduct Enquiry Committee (PCEC) subse-quently launched an investigation to determine how this had happened.

Ethical Dilemmas What happenedShirley told the PCEC investigator that she had taken steps to safeguard the material in question, bagging it securely and placing it in the standard container for transfer; she added that she could not have foreseen the spillage. According to Shirley, the exposed information, which included T1 adjustment forms, completed T2 forms, and some miscellaneous forms related to tax returns, was of no value to anyone else. It was, she said, “for the most part incorrect and useless.”

Shirley also told the investigator that as soon as this matter had come to light, she had bought a shredder and begun to shred all material destined for recycling—including the documents she’d received back from the recycling facility. Furthermore, she said she’d contacted all of the clients whose information had been exposed to apprise them of the situation. Her clients had expressed concern, she said, but ultimately seemed satisfied that the error had been uninten-tional. Moreover, Shirley said that because the documents had been returned to her and she had subsequently destroyed them, her clients believed the risk of identity theft had been minimal and that any tax or financial information con-tained in the documents would have been of no value to the employees of the recycling facility.

The outcomeThe PCEC concluded that Shirley had breached Rule 202 (Due Care) and Rule 208.1 (Confi-dentiality of Information), because she hadn’t handled her clients’ confidential information properly, and it had fallen into the hands of others without the approval of her clients.

In addition, the PCEC determined that Shirley had breached Rule 201.1 (Maintenance of the Reputation of the Profession) because she had potentially damaged the professional reputation of CAs in the eyes of her clients, as well as in the eyes of the recycling facility’s supervisor.

Shirley received a reprimand. Given, however, that she’d acted promptly in notifying her clients and had taken reasonable steps to prevent further occurrences, the PCEC did not recommend a fine.

A further consequence in this case was the involvement of the privacy commissioner mandated by the provincial government to investigate such incidents (the supervisor of the recycling facility had, at a later date, also called this office). The office of the privacy commissioner found that Shirley had acted reasonably—noti-fying clients in a timely manner and changing her paper disposal practice to include shredding documents in order to prevent further privacy breaches of this nature.

The messageWe live in a time of heightened public awareness and concern about identity theft and privacy issues. If reports about increasing levels of identity theft (and attempted identity theft) are to be believed, this concern is justified. So when it comes to the disposal of your clients’ confidential information—whether you consider it valuable data or not—how careful are you? The fact is: No client-related materials should ever be disposed of without ensuring first that they have been shredded or destroyed in a secure environment.

Comments or questions? Contact me at [email protected].

*Please note: This fictionalized account is based loosely on an actual case before the Professional Conduct Enquiry Committee (PCEC). Names and circumstances have been changed to preserve anonymity. The contents of this article are only intended for the general guidance of readers. The PCEC deals with each case individually, based on its specific facts and circumstances.

How Secure Is Your Recycling?By Chris Utley, CA Director of Ethics

Document Disposal

Dilemmas?

When in doubt

about protecting

client information

during disposal:

Shred!

Documents

Become the CEO of Your Life