What Is the Canadian Institute Of Chartered Accountants (CICA)?
The term Canadian Institute of Chartered Accountants (CICA) refers to a nonprofit organization representing accounting professionals in Canada. The organization represents Canadian chartered accountants (CAs) both nationally and internationally. It was responsible for developing generally accepted accounting principles (GAAP) for Canadian accounting techniques and also publishes guidance and educational materials on a number of accounting-related topics.
- The Canadian Institute of Chartered Accountants is a nonprofit organization representing accounting professionals in Canada.
- The CICA developed and promoted accounting standards, educational programs, and provided professionals with the chartered accountant designation.
- The organization was founded in 1902 and is headquartered in Toronto.
Understanding the Canadian Institute Of Chartered Accountants (CICA)
Founded in 1902 as the Dominion Association of Chartered Accountants, the organization became the Canadian Institute of Chartered Accountants after it changed its name in 1951. Headquartered in Toronto, CICA has 82,000 members, representing chartered accountants across Canada. It also includes member accountants from Bermuda under an affiliation with the Institute of Chartered Accountants of Bermuda (ICAB).
The organization develops, promotes, and supports standards for the accounting profession in Canada. As mentioned above, this includes standards for auditing and GAAP. Generally accepted accounting principles in Canada were in line with those used in the United States. But these principles were aligned with international accounting standards as outlined by the International Accounting Standards Board (IFRS) as of January 2011. The CICA is also responsible for having created accounting educational programs. It has also provided Canadian accounting professionals with their CA designations.
Canada's generally accepted accounting principles were replaced with international financial reporting standards in 2011.
The CICA has been a primary professional organization for chartered accountants in Canada. Canadian CAs provide a series of services to the commercial sector as well as to individuals in the areas of corporate and personal taxes, assurance, and finances. They also provide corporations with business advisory services. Just like the Certified Public Accountant (CPA) designation requirements in the U.S., CAs must meet a minimum set of requirements in order to be granted membership to the CICA. Professional accountants must:
- Have a university degree
- Have prequalification through a provincial accounting system
- Have working experience
- Pass the exam given by Chartered Professional Accountants of Canada (CPA Canada)
CPA Canada is a national organization of accounting professionals that was established in 2013 by the CICA and the Society of Management Accountants of Canada (CMA Canada).
The Canadian Institute of Chartered Accountants is one of the founding members of the Global Accounting Alliance (GAA) and the International Federation of Accountants (IFAC). The GAA is a group made up of 10 international accounting organizations that work with regulators and governments on different issues. The IFAC has more than 175 different affiliates and organizations under its umbrella in more than 130 countries. It represents accountants from across the world by supporting and creating international accounting standards.
As a response to member and stakeholder consultation, the CICA, CMA Canada, and Certified General Accountants of Canada (CGA Canada) issued A Framework for Uniting the Canadian Accounting Profession in January 2012. This framework fell under a new Canadian Chartered Professional Accountant (CPA) designation. It now supports Canadian provincial accounting bodies under the unified CPA banner.