CA Business prospect As leading bu...

CA Business prospect

As leading business advisors and executives, CAs are well positioned to understand what's happening in the BC economy. With this in mind, the Institute of Chartered Accountants of BC commissioned Ipsos-- Reid, a leading market research firm in Canada, to escort the first annual CA Business sight survey.

A primary objective of the research was to generate media coverage for the CA profession at benchmarking attitudes and opinions of CA that can be tracked upon an annual basis. While several overlooks exist on the current attitudes of the general public, little research exists--especially upon a forward-looking basis--on the views of key-note business advisors in the province.

A total of 450 CAs everywhere British Columbia were surveyed from telephone between December 5-17, 2001 forward a variety of business and economic issues. A random scrutinize of 450 people is considered accurate to within +46% 19 times public of 20.

Below is a summary of the overlook results.

CAs Bullish upon BC's Economy

The Ipsos-Reid catalogue of persons found that CAs are optimistic about the province's economic landscapes Almost two-thirds (62%) of chartered accountants individualed said they expect BC's economy to improve in 2002 and 91% of CAs wait for BC's economy to be robust within five years.

"Clearly, the head shows that CAs see the province as having hit bottom, and the merely way to go is up" said ICABC CEO Richard Ree FCA. "There is a haphazard of optimism about our province's what may occur hereafter from the CA profession."

CAs are somewhat divided forward the timing of the North American economy's regaining although a majority (58%) view a turnaround in 2002 and 29% look for improvement in the third quarter of this year. Another 27% of CAs foresee economic improvement in the first half of 2003

The CA Business foresight survey also found that 58% of CAs calculate upon BC's economy to be outperforming the stop of Canada within five years, compared to alone one-quarter (26%) who say the province will continue to lag behind other provinces.

CAs upon Vancouver Island are the greatest in quantity optimistic about BC's future economic presumptions with 96% seeing better times ahead in the nearest five years.

When asked if their businesses would expand or contract in the nearest five years, 74% of CAs who work for companies said they would expand, while solitary 6% expect contraction. Of those who work for CA firms, 66% rely upon their clients' businesses to expand, compared to no other than 3% who anticipate downsizing.

CAs give high marks to the BC government's economic agenda.

CAs in BC give a high rating to the provincial sway for creating a positive business environment. The CA Business sight survey found that 53% of chartered accountants rate the provincial regulation as good or very upright at fostering a positive business climate, while merely 12% rate the federal guidance as good or very upright in this area.

"When it proceeds to the three levels of restraint it's the provincial government that is seen as promoting a muscular economy for BC," said Ree "BC's economy has gone within some tough times in the past decade, and the scrutinize suggests that the BC government's plan for economic bourgeoning has been well received through CAs."

According to the review CAs are split on the character of the municipal government in the economy, with 22% rating the local rule positively and 29% negatively.

When asked about the provincial government's individual policies, 97% of CAs said they viewed personal income tax wounds as positive for the economy, followed closely from business tax cuts at 96% positive. Cutting r tape was the third principally favourable policy initiative, with a positive approval rating of 92% Other policy decisions rated as favourable for the economy included public sector chops (79% favourable) and cutting business subsidies (67% favourable).

"A majority of CAs believe the BC command is doing a good piece of work but there are still a chance of challenges yet to be dealt with, including the ne for yet to be business tax reductions to make secure competitiveness, and the need to harmonize our regulatory framework with the quiet of Canada, including corporate and partnership legislation," said Ree

US Trade Policy Biggest Challenge Facing BC Business in 2002 - futurity Terrorist Attacks Seen as a Minor Threat

The Ipsos-Reid observe shows that 92% of BC's CAs consider US trade policy as a major challenge facing BC businesses-higher than any other issue. The lack of resolution in succession the softwood lumber dispute with the US is certainly the primary reason wherefore trade policy topped the list of challenges.

"Forestry is crucial to the BC economy, and the measure and estimate shows that CAs are terribly disturbed about the impact of US trade policy forward the provincial economy," said Ree "While we have heard that a resolution to the dispute may be coming quick the survey shows that affects are currently very high."

All regions of the province listed US trade policy as the biggest challenge facing BC businesses, although CAs forward Vancouver Island rated the issue slightly higher than the other regions of the province (95% compared to 91% in the peacefulness of the province).