Regulatory Matters CPD Online

Frequently Asked Questions, Continuing Professional Development (CPD)

1. Why do I need to take CPD?
2. I’m not practicing public accounting. Do I still need to take CPD?
3. Why are we adopting new CPD standard?
4. Why a three-year cycle?
5. How does the three-year cycle work? When does it begin and end? How many hours do I have to take?
6. Are there any exemptions from the CPD requirements?
7. When does this new CPD requirement come into effect?
8. How does the ICABC determine if I’ve complied with the requirements?
9. How do I report my CPD compliance?
10. Accounting, tax and assurance courses are irrelevant to me. Should I take these courses?
11. How do I determine how many hours each learning activity is worth?
12. Can I take my learning activity from providers other than the ICABC?
13. I already have a mandatory CPD requirement for another designation that I hold - can I count those courses towards my CA mandatory CPD requirement as well?
14. I work part-time, how does this affect my CPD requirements?
15. I’m retired; however, I serve on boards, committees and do some part-time work such as investments for local church and some accounting work for a few clients. Am I required to take professional development?
16. I’m retired and I volunteer my time at a local charity and serve on the Strata Board for my condominium.  Am I required to take professional development?
17. I’m on maternity leave or temporarily not working, do I have to meet this CPD requirement?
18. What’s the penalty if I don’t get the required amount of PD?

Q1.  Why do I need to take CPD?

CAs must continually enhance their knowledge and expertise to remain at the forefront of today’s competitive market. The ICABC recognizes that all members must undertake relevant and appropriate CPD to develop and maintain their competence in order to provide high quality service to their clients, employers or other stakeholders.

Q2.  I’m not practicing public accounting. Do I still need to take CPD?

Yes, all members are required to take CPD.  It’s imperative that CAs remain knowledgeable and current in all areas in which they practice or work in order to best serve the interests of clients, employers and the general public. CAs in all sectors hold positions of importance involving financial reporting, public accountability and maintaining the public trust. Employers hiring CAs in any sector rely, at least to some extent, on the designation as proof of professional competence. Because all CAs carry the professional designation, any lack of competence or ethical behaviour has the same consequences to the reputation and standing of the profession, regardless of the sector or role in which they operate.

Q3.  Why are we adopting new CPD standard?

In 2006, our ICABC Council voted to approve new minimum CPD requirements as recommended by the CA profession’s Public Trust Task Force. The increased requirements are necessary to maintain the already high reputation of the profession and to protect the public trust. Another major factor contributing to the decision to review minimum CPD requirements was the adoption of a new international CPD standard by the International Federation of Accountants (IFAC). With these changes, CPD standards become harmonized across the country and become aligned with other accounting bodies, which already meet or are moving toward meeting the IFAC standard.

Q4.  Why a three-year cycle?

Everyone experiences periods in their professional lives when it’s easier and more convenient to get PD and periods when they’re just too busy to get to it. All CAs must, however, meet a minimum annual requirement of 20 hours to stay current in their knowledge. The three-year cycle allows you to ‘catch up’ after a busy period and then it all averages out.  Activities must be taken in the calendar year they are claimed; you cannot carry hours forwards or backwards.

Q5.  How does the three-year cycle work? When does it begin and end? How many hours do I have to take?

For the three-year cycle 2008-2010, which runs from Jan 1, 2008 to Dec 31, 2010, all members of the ICABC are required to obtain 120 CPD hours, of which a minimum of 60 must be verifiable by Dec 31, 2010, and a minimum of 20 hours per year of which 10 must be verifiable.

Q6.  Are there any exemptions from the CPD requirements?

Members are eligible for exemption from the CPD requirements if he/she is "on leave from the workforce", "retired" or "inactive" AND they receive NO remuneration for activities where another party may reasonably be seen to be relaying on his or her skills as a CA

      AND/OR

They do NOT serve on a board or governing body of a public company or reporting issuer as contemplated by Rule 204.

Q7.  When does this new CPD requirement come into effect?

Effective January 1, 2008, the beginning of a new CPD cycle, BC CAs will be required to meet new mandatory CPD requirements.

Q8.  How does the ICABC determine if I’ve complied with the requirements?

The reporting system and deadlines will remain the same under the new requirement as under the former program. You are required to report your CPD annually by January 31 of the following year, meeting the minimum verifiable and unverifiable hours. The random selection audit process will continue as well; each year ICABC staff will require a sample of members to submit additional details pertaining to their CPD reporting form.

Q9.  How do I report my CPD compliance?

Each year (in early November) the ICABC distributes a CPD reporting form to every member. You may complete the hard-copy (paper) declaration and send it to the ICABC by post, fax or email. Alternatively, we encourage members to submit their CPD reporting on-line through our secure website— this fast, effective method allows members from anywhere in the world to submit their CPD reporting form in a timely, error-free manner.

Q10.  Accounting, tax and assurance courses are irrelevant to me. Should I take these courses?

You participate in learning activities that are relevant and appropriate to your particular work and responsibilities. There is no requirement to take specific accounting, tax or assurance courses. You should take those courses that make sense for you—for example, the learning activity might be on technology tools, leadership or management, industry related subject matter, and courses which add to your competency as you determine.  For definitions on the nine major categories of qualifying activities, please see ‘Program Categories and Credit Hours’.

Q11.  How do I determine how many hours each learning activity is worth?

The number of hours you report should be the actual hours that you spent engaged in the verifiable or other learning activity. For a full-day course, this would normally be 7 hours; since there is refreshment and lunch breaks that it would be difficult to argue "contain significant intellectual or practical content". However, if there was a "working lunch" where you were preparing a case study, for example, that time should be recognized toward the CPD requirement. For conferences or lunches with speakers or participation in committee meetings etc., you should estimate the amount of time that was spent in the verifiable learning activity as opposed to general networking, administration and social activities.

Q12.  Can I take my learning activity from providers other than the ICABC?

Absolutely yes! You make take your learning activities through any provider, including in-house programs through your employer. The Institute does not "approve" providers of CPD programs; the most important factor is whether the course contributes to your professional development. If it is relevant and appropriate to your work and professional responsibilities, and it contains significant intellectual or practical content, it should count towards your CPD requirement.

Q13.  I already have a mandatory CPD requirement for another designation that I hold - can I count those courses towards my CA mandatory CPD requirement as well?

If the courses are relevant and appropriate to your work and professional responsibilities, and contain significant intellectual or practical content, they may be counted towards the Institute's verifiable mandatory CPD requirement. If you can use the same course for the mandatory CPD activities for both designations, you will save yourself time and money!

Q14.  I work part-time, how does this affect my CPD requirements?

Members who work part-time have the same CPD requirements as those who work full-time. The Institute’s Council deliberated this issue and concluded that the public would have the same expectations of competency from a part-time or full-time working member.

Q15.  I’m retired; however, I do some part-time work such as investments for a local church and some accounting work for a few clients.  Am I required to take professional development?

Yes, if you are retired but receive payment for services performed where it’s reasonable to believe that another party is relying on your skills as a Chartered Accountant you will be required to meet CPD requirements. PD is required whether the work is part of full time. You should consult the CPD exemption criteria for more information.

Q16.  I’m retired and I volunteer my time at a local charity and serve on the Strata Board for my condominium.  Am I required to take professional development?

No.  Unless members are paid for their work as a CA, or have a non-paid role on boards of Public Companies, retired members do not need to report their CPD activities.  However, member volunteers should ensure that they are current and proficient in the competencies required in those volunteer roles on an ongoing basis and pursue CPD where appropriate.

Q17.  I’m on maternity leave and temporarily out of the workforce, do I have to meet this CPD requirement?

You will receive an exemption from the minimum CPD requirements if you are a member who is on maternity leave or leave from the workforce to care for a child (or children) or a family member with a critical, terminal or chronic medical condition where they:

1. NO longer involved in any paid or unpaid activity where it is reasonable to believe that another party is relying on your skills as a Chartered Accountant, and/or;
2. DO NOT serve on a board or governing body of a public company or reporting issuer as contemplated by Rule 204

If the leave subsequently extends to a period of longer than one year, those members who have not completed the minimum requirements while on leave should create a CPD plan to rebuild the competencies that are necessary to enable them to reintegrate into the workforce.

Q18.  What’s the penalty if I don’t get the required amount of PD?

That’s and unlikely scenario, given that we’ve had virtually 100 percent compliance for members in public practice since CPD became mandatory all members in 2003. CAs generally take more than the required amount. But the ICABC will send reminders if you haven’t reported by January 31 deadline. Some Institutes in Canada have opted for a financial penalty for late reporting or non-compliance, but we are not proposing that. Ultimately, of course, being removed from membership in the BC Institute would be the result of chronic and longstanding non-compliance.

Additional Questions?

• Lisa Murray, Professional Development Assistant at 604-488-2614, murray@ica.bc.ca
  
  
• Stella Lam-Leung, CA, Associate Director of Professional Development at 604-631-2570, lam-leung@ica.bc.ca
  
  
• Moira Bryans, CA, Director of Professional Development at 604-488-2640, bryans@ica.bc.ca