Regulatory Matters CPD Online

CPD Quick Fact Sheet

CAs must continually enhance their knowledge and expertise to remain at the forefront of today’s competitive market. Continuing Professional Development (CPD) ensures this result.

CPD

Beginning with universal CPD in 2003 the ICABC, as a self-governing body, has been mandated by its members to ensure that each CA participates in continuous learning activities which enable them to meet changing marketplace demands.

New Minimum Continuing Professional Development Requirements

As approved by the ICABC Council, new uniform minimum continuing professional development (CPD) requirements have been adopted across the country. These changes were recommended by the CA profession’s Public Trust Task Force. The new CPD program is effective January 1, 2008.

Background

Increased CPD requirements, harmonized across the country, 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). As noted, these changes will also harmonize standards across the country—while most PICAs/Ordre currently have mandatory CPD, requirements vary across the country. It is also important to note that other accounting bodies already meet or are moving toward meeting the IFAC standard, which took effect on January 1, 2006.

New Minimum CPD Requirements

These new harmonized CPD requirements meet the IFAC standard. Beginning January 1, 2008 members are required to:

• complete a minimum of 120 hours of CPD over a three-year cycle (current year and prior two years), including at least 60 hours of verifiable study
• complete at least 20 hours of study annually, of which 10 are verifiable
• choose learning opportunities that provide for the development of new or existing competencies that are relevant to the individual member’s overall professional responsibilities and growth
• It is anticipated that the majority of members already meet or exceed the requirement of 120 hours of CPD over three years. Therefore, the new standard is not expected to result in significant change for most members.

Examples of Qualifying Study

Areas of study are not mandated by the new requirements—members complete study in areas they identify as relevant to their practice or employment.

Examples of verifiable study include:

• courses, conferences, seminars and in-house training
• formal study, professional re-examination/testing
• reading/research leading to presentations, reports and articles, or for a specific application in a professional role
• formal study and/or self-study leading to an examination or attainment of a designation, diploma or degree
• participation on committees or boards that contributes to professional growth
• publication of articles, papers or books
• relevant teaching and speaking

Examples of unverifiable study include:

• on-the-job training
• self-study that does not involve an examination or other objective certification of completion
• reading of professional journals or magazines that is not part of research for a specific application in a professional role

Universality

In the current environment, it is 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. Therefore, the new minimum CPD requirements apply to all members, with certain exceptions.

Reporting and Monitoring

The new standard requires an annual report to confirm that a member has met the minimum CPD requirements, including the number of annual hours, cycle hours and verifiable versus unverifiable study. The three-year reporting cycle is fixed based on a 3 year calendar cycle ending December 31. The standard also requires verification of selected annual reports from members to audit for a period of at least one year following each three-year cycle.

Enforcement and Penalties

As is the case now in most jurisdictions, failure to report CPD results or to comply with minimum CPD requirements can ultimately result in expulsion from membership. The CPD standard also ensures that BC’s bylaws and practices are respected.

Cost-Effectiveness

PICAs/Ordre are being asked to share information on their CPD practices and to work together to harmonize the application, reporting and monitoring of the new CPD standard as much as possible, in order to make the system cost-effective.

Myth vs. Reality

• CPD does not have to be taken through ICABC course offerings – it does not even have to be taken in Canada. CPD may be completed through any learning institution, organization and/or an employer
• CPD does not have to be accounting related – you choose the area of learning. CPD only has to be relevant to your particular employment, business situation, or career aspirations.
• The entire CPD requirement does not have to be verifiable (e.g., courses, conferences, etc.). One half of the CPD requirement may be met through unverifiable means, for example through private reading, self-study or on the job training

Visit us on the web at www.icabc-pd.com/pd-seminars.php for complete listings of ICABC offerings

For more information, please contact:

• 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