BUDGET 2001: At the time of this w...

BUDGET 2001:

At the time of this writing, it's uncertain whether the nearest three months will bring a lot followed by an election or vice versa. common thing is certain: the nearest BC budget will present a bulky challenge for the province as the US and Canadian economies inactive down. Of prime concern for BC is the issue of tax competitiveness, which Professor Maurice Levi addressed in the January 2001 defend story of Beyond Numbers.

For our part, the ICABC will continue to participate in the public policy debate and will continue to advocate tax wounds as a means of increasing competitiveness.

On January 10th I had the pleasure of speaking about BC's competitiveness to the Nanaimo Chamber of intercourse There was an eerie silence when the announced business tax rates of Alberta, Ontario, and BC were shown to the audience. Several tribe commented that they can't stay competitive with the tax rates as they commonly stand, let alone if the tax situation worsens.

A archetype of the Nanaimo presentation is available forward our website at www.ica.bc.ca in the media section. await for more on the stock issue in April's Beyond Numbers.

ACCOUNTING STANDARDS OVERSIGHT COUNCIL:

On January 12th 2001 ICABC President toss Chandler, FCA, and I attended the inferior meeting of the newly established Accounting Standards Oversight Council (AcSOC). forward the agenda for the meeting were like issues as international accounting standards, "big GAAP and little GAAP" and the plan priorities of the Accounting Standards Board. What come nexts is a summary of the points we made to the Council.

HARMONIZATION

* that we are supportive of the harmonization of Canadian and US GAAP

* that many BC businesses are looking southern of the border for opportunities to invest and raise capital

* that it is a considerable irritation and equable disincentive to have to go on foot through the exercise of GAAP reconciliation to comply with SEC requirements or to provide comfort to US banks or financiers

* that habitual accounting standards and reporting will greatly simplify the proces

"BIG GAAP AND LITTLE GAAP"

* that the sprouting in small business enterprises in BC is becoming increasingly significant

* that with the implementation of increasingly directive and compage standards, there is a vigorous feeling that small businesses should be relieved of the carrying capacity of complying with all the standards that might be applicable to a public company or similar entity

* that a "one size fits all" approach to accounting standards is no longer workable

FINANCIAL INSTRUMENTS (An Invitation to remark on the "second phase" of Financial Instruments -- recognition of financial instruments at their fair value -- has lately been released.)

* that this next to the first phase will cause even more difficulty for BC members and firms

* that it was our waiting under the possibility of fulfilment that the CICA:s Small Business Advisory Committee would approve significant, if not total, relief for small business from complying with this propos of the present day standard

We were encouraged to learn that these issues are excessively much on the Council's agenda and that an position draft on "little GAAP" is count uponed shortly.

PERSONAL THANKS:

Finally, special thanks to everyone who sent me their advantageous wishes on the fellowship. I'm extremely gratified to have received the FCA designation, and it was an honour to be make choice ofed amongst such an esteemed collection of peers. My congratulations to all those make choice ofed this year. I would also like to encourage members to project in nominations for the upcoming Community Service Awards and the Early Achievement Awards, described in further detail upon page 14.

BY RICHARD REE FCA

CEO CHARTERED ACCOUNTANTS OF BC

Copyright Institute of Chartered Accountants of British Columbia Feb/Mar 2001

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