Monday, January 23, 2017

Increase in CPD Units for Certified Public Accountants (CPAs)




MANILA, Philippines - PRC's Board of Accountancy (BOA) through Resolution No. 358 Series of 2016 announced the increase of required Continuing Professional Development (CPD) units from sixty (60) to one hundred twenty (120) within a compliance period of three (3) years for all Certified Public Accountants (CPAs) and changes of the thematic areas to competence areas. As per Section 3 of the resolution, all CPAs regardless of area/sector of practice shall be required to comply with 120 CPD credit units within 3 years.

Year of Renewal Required Number of CPD Units Minimum Units Under Required Competency Areas Flexible CPD Units Required Minimum Units Earned from the Year(s) for License Renewal
2016 60 40 20 0
2017 80 40 40 0
2018 100 40 60 20 units earned from the immediately preceding year.
2019 120 40 80 20 units earned from each of the 2 immediately preceding years.

SEE ALSOPRC CPD Unit Requirements for all Professions

Meanwhile, as per Section 2 of the resolution, the thematic areas of CPD activities are changed to competence areas in order to align with international education standards. As stated, it has been changed to 3 major categories:
  1. Technical Competence,
  2. Professional Skills, and
  3. Professional Values, Ethics & Attitudes
Here is the detailed competence areas and corresponding minimum verifiable units courtesy of PRC:

Competence Areas Minimum Verifiable Units starting 2017
A .TECHNICAL COMPETENCE
1. Standards Applicable to the Professional Practice which include but are not limited to the following:
a. Current and recent issuance on the respective area of practice of the profession, e.g. those from the standard-setting bodies on:
• Financial Accounting and Reporting;
• Assurance and Auditing;
• Related practice statements and interpretations; and
• Pronouncements related to Taxation, depending on the area of practice of the professional
b. IFAC Pronouncements issued through IFAC member bodies
2. Laws, Rules and Regulations affecting Professional Practice which include but are not limited to:
a. Issuances of government/regulating bodies, such as, but not limited to,
• Professional Regulation Commission and Board of Accountancy (which covers provisions of the Philippine Accountancy Act and its IRR, new resolutions and regulations issued by PRC and BOA, and other issuances pertaining to the registration , licensing and professional regulatory regimes);
• Securities and Exchange Commission, Bangko Sentral ng Pilipinas, Insurance Commission, Bureau of Internal Revenue, Cooperative Development Authority ;
• Commission on Higher Education and Department of Education; and
• Commission on Audit, Department of Budget and Management , Civil Service Commission, for CPAs in government sector;
b. ASEAN and other international treaties affecting the practice of Filipino CPAs; and
c. Other laws and regulations that govern different forms of legal entities.
3. Environment of the Practice- which includes frameworks , models, best practices, benchmarks, information technology advances, tools and techniques espoused by professional and other organizations that affect the operations and management of clients and business entities of the professional.
30
B. PROFESSIONAL SKILLS
1.Professional development activities that enhance the CPA's intellectual, interpersonal, communication, personal and organizational skills, which include but are not limited to:
a. Oral and written communication;
b. Presentation, negotiation and facilitation skills;
c. Teamwork enhancement ;
d. Personality and social graces;
e. Decision making, leadership, management and supervision;
f. Conflict resolution, cultural immersion programs, language learning programs, time and resources management, work or process innovations and problem solving skills; and
g. For CPAs in the education sector, teaching techniques and other education-related CPD learning activities.
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2. PROFESSIONAL VALUES, ETHICS AND ATTITUDES
a. Code of Ethics for Professional Accountants ;
b. Quality standards based on issuances of bodies affecting the professional practice;
c. Governance principles and intervention; and
d. Social responsibility, principles and interventions
5
Below is the Resolution courtesy of the Professional Regulation Commission.

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