It looked so easy on paper. Traditional professional differences between Canada’s accounting groups were eroding such that it no longer made sense for practitioners to compete aggressively. So following months of talks, in January 2012 the Canadian Institute of Chartered Accountants (CICA), Certified Management Accountants of Canada (CMA Canada) and the Certified General Accountants of Canada (CGA Canada) presented their members with a proposed framework for uniting the country’s accounting profession.
The result thus far appears to be an industry more confused than before the merger began with support unraveling amid fears of losing professional distinctions given the clout of chartered accountants who almost outnumber the other two groups combined.
Sigmund Lee, a member of ICMA (Australia) and a Canadian resident, is critical of the process. In his opinion the merger dream will not be realized. Merging accounting bodies is indeed a difficult strategy to execute successfully. In 2006, merger iscussions between the ICMA and IMA ended acrimoniously, and in Australia members of the two largest bodies attempted a merger which was rebuffed by the Chartered Institute. Time alone will tell if igmund’s skepticism is the ultimate Canadian reality.
We stress that the opinions expressed in the following appraisal of the dynamics and politics of the Canadian process are those of Sigmund Lee, ICMA (Australia) and not those of the ICMA.
How do you merge three major accounting bodies consisting of 39 separate accounting entities?
You can’t unless the government mandates it. In Quebec, the government facilitated the merger of the CMA, CGA and CICA and adopted a single designation – The Chartered Professional Accountant (CPA). In other provinces, the rivalry build up over the past century, the distrust, the disrespect of the CGA and CMA by the CICA, (see here) and the loss of identities have basically killed the possibility of the total merger of Canadian accounting bodies in my view.
CICA members still consider the CGA and CMA as inferior cousins. This was evidenced by an answer given by Mr. Kevin Dancey, President and CEO of CICA, when trying to sell his case for unification to CGA Canada’s Board of Governors in April. During the Q & A session, Mr. Dancey was asked whether the merged body, CPA Canada, would commit to negotiating future mutual recognition agreements on behalf of all CPA members.
Disappointingly, his response demonstrated a lack of respect for CGAs and CMAs and should be a defining moment for anyone who believes CICA’s unification vision is intended to deliver professional equity. Mr. Dancey stated unequivocally that, if necessary, CPA Canada would be prepared to sign an MRA that only supports legacy chartered accountants. This is one example of how the current proposal could differentiate and discriminate between classes of CPA members.
In the good old days, the chartered accountants had the coveted auditing rights. Today, however, the differences between a CA, CGA and CMA are no longer as clear cut.
The CGA and CMA are allowed to audit and do the same things as the chartered accountants blurring the lines separating all three bodies.
I personally believe that for Canada, and I do not presume to set similar standards for other countries, a single accounting body would give the accounting profession a single voice and deliver the efficiencies that can be achieved from a single body and better international recognition.
Doctors, lawyers and engineers have been able to work out their differences. They list their specialty after their title. Why can’t accountants in Canada do the same?
It is my view that unless the government forces the issue or there is an attitudinal change among some of the parties such that ultimately all show mutual respect for each other, the vision of one body governing and representing all accountants in Canada will never become a reality.
