Sunday News Roundup 22.09.18: More EY, UCP race, and more Canadian accounting news
Wrapping up the odds and ends from the past week in Canadian accounting news
Subscribe to our weekly newsletter and get all the week’s stories. Click here to sign up.
TORONTO, Sept. 18, 2022 – The repercussions of the plan by Ernst and Young LLP to spin off its consulting business continued to resonate this past week. The Financial Times, for example, reported on how difficult the negotiations were — and why EY’s challenge is just beginning. Bloomberg Tax gave the plan a positive spin in EY Poised to Grow Big Four Audit Market Share in Restructuring while Business Insider reported EY partners are eyeing multimillion-dollar payouts from a possible split of the corporate giant's consulting and auditing businesses.
Lost in all the hubbub was the news that EY Canada has acquired a sustainability consulting firm called AFARA. As ESG reporting standards become part of the landscape, so to speak, companies will be looking to consulting firms to advise them on implementation and compliance. According to EY Canada: “With presence in Toronto and Calgary, AFARA provides leading public and private sector organizations with solutions — grounded in actionable insight — that make lasting improvements in sustainability performance.”
And now, on to the rest of the news from the past week in the Canadian accounting profession.
Push and pull on new tax measures
Sometimes it seems like an endless debate in the media between the pro and con sides of taxation measures. On the pro side this week, comes Amir Barnea on new taxes proposed by Quebec Solidaire during the current Quebec provincial election, including a wealth tax and inheritance tax. And the Canadian Press ran an article today on the European adoption of an oil and gas sector windfall tax. A similar tax has been proposed by the Canadian Centre for Policy Alternatives, a position supported by the Canadian Union of Public Employees, which wants to tax “excess corporate profits.”
On the con side, you have the Canadian Taxpayers Federation arguing in the Financial Post that Ottawa’s luxury tax will harm blue-collar workers. According to the CTF, sales of luxury transportation will fall, throwing blue collars out of work. And the CBC had some criticism of the carbon tax and recent benefits from the Liberals framed around affordability.
Meanwhile, Canadians for Tax Fairness levelled some criticism of its own this past week, in Pierre Poilievre vs. the elites (unless they’re rich), saying the newly minted Opposition Leader’s “hypocrisy is striking.” C4TF asserts that “Poilievre’s grand desire to bring the Conservative party back to a low-tax, small-government, free-market ideology — and proposal that doing so will somehow help low- and middle-income people — just doesn’t hold with the facts.”
Alberta: Accountant running for UCP leadership
It looks like Postmedia is lining up behind former accountant Travis Toews against Danielle Smith in the race to replace Jason Kenney as leader of the United Conservative Party. Smith, according to David Staples, belongs in the “radical camp.” Toews is a CMA, CPA, and worked in public accounting for 12 years before taking over his family’s corporate cattle ranching operation. He is also the candidate of choice for the party’s establishment in general and Kenney in particular.
It’s interesting to see how the Edmonton Journal (Postmedia) and Calgary Sun (formerly SunMedia now Postmedia as well) are positioning Toews. They admit that Smith is the leader in the race but warn the party may lose the next provincial election if her “radical” politics wins the party vote.
CPA Canada: Greenhouse gas reporting standards need more work
Greenhouse gas reporting standards need defined, prescriptive standards, rather than general guidance, says a new report by the Institute for Sustainable Finance (ISF) and Chartered Professional Accountants of Canada (CPA Canada). The Greenhouse Gas Protocol (GHG Protocol) was launched in 1998 and supplies the most commonly used standards for companies to measure and report their GHG emissions.
Securities regulators in Canada and globally are moving to make emission disclosure mandatory for many entities and the recently created International Sustainability Standards Board (ISSB) proposes that the GHG Protocol Corporate Accounting and Reporting Standard (Corporate Standard) be applied to measure emissions. Thus, it is important to understand how emissions are measured and disclosed.
Retired CPA happy to be spinning his wheels
For some happy news, the Globe and Mail profiled Vince Mayne, 69, a former CPA and IT executive at Hewlett Packard. It’s an interesting story of a widower who obviously did well financially and is passionate about cycling, even after needing brain surgery following a nasty spill. Mayne volunteers at financial literacy workshops in conjunction with CPA Canada. Seems like he’s living the good life as a self-described “sen-ager.”
Quick Hits: Articles of Interest
How to qualify for the federal government's inflation relief benefit programs (Financial Post)
Is a provincial sales tax [Alberta] worth considering? (Lethbridge Herald)
Why do some of Canada’s premiers never tire of flogging the carbon price horse? (Toronto Star)
By Canadian Accountant staff.