Continuing Professional Development (CPD) is learning that develops and maintains professional competence to enable members to continue to perform their professional roles. Any new learning and development that is relevant and appropriate to a member’s work and professional responsibilities and growth as a CPA will qualify for CPD. Members need to determine what learning activities qualify for CPD based on their own professional needs and circumstances.
Members are also reminded of Rule 203 of the CPABC Code of Professional Conduct – Professional Competence:
A member shall sustain professional competence by keeping informed of, and complying with, developments in professional standards in all functions in which the member provides professional services or is relied upon because of the member’s calling.
In order to comply with Rule 203, a member may need to complete more than the minimum CPD requirement established by Part 6 of CPABC’s Bylaw Regulations.
Members of CPABC are required to report compliance with the CPD requirements by filing an annual CPD report by January 31 for the previous calendar year (except members who have previously claimed a CPD retirement exemption). For additional information, you can view the relevant Bylaws and Bylaw Regulations (Part 6 – Continuing Professional Development).
Minimum CPD Requirements
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Minimum CPD Requirements
(in hours)
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Verifiable CPD
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Additional CPD *
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Total
CPD
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Annual
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10
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10
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20
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Rolling three-calendar-year period, including four hours of verifiable professional ethics
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60
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60
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120
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* Additional CPD can be fulfilled with verifiable and/or unverifiable CPD
Minimum CPD requirements are specified for annual reporting as well as for the rolling three-calendar year period. There are two distinct components of CPD reporting: verifiable and unverifiable CPD.
“Verifiable qualifying hours” means qualifying hours for which there is satisfactory evidence to objectively verify participation in the learning activity, as determined in accordance with criteria approved by the Membership Committee.
“Ethics hours” means verifiable qualifying hours in professional ethics satisfying criteria approved by the Membership Committee.
“Unverifiable hours” include personal reading, on-the-job learning and other ‘self-study’ activities relevant to the members professional role for which there is no evidence to verify participation.
Verifiable vs. Unverifiable CPD Learning Activities
CPD does not have to be taken through CPABC – it does not even have to be taken in Canada. CPD may be completed through any learning institution, organization, and/or employer. Nor does CPD have to be accounting related – members choose the area of learning. Verifiable CPD only has to be relevant to the member’s particular employment or professional role, business situation, or career aspirations. At least half of the minimum CPD requirement must be satisfied with verifiable CPD.
Verifiable Qualifying Hours
Refers to learning activities for which there is satisfactory evidence to objectively verify participation. Members may only report the actual number of hours that were spent developing new or existing competencies.
Examples of verifiable CPD:
- Attendance, as a participant or lecturer, at courses, conferences, seminars, workshops, presentations, technical committees or discussion groups;
- Research that results in publications or presentations;
- Structured employer-based in-house training sessions;
- Programs of study that involve the successful completion of an examination or certification in the current CPD reporting year;
- Computer-based learning activities that involve the successful completion of an examination or certification; and
- Professional re-examination or formal testing.
Verifiable Professional Ethics Hours
Just like other verifiable learning activities, the professional ethics requirement can be fulfilled through CPABC or other sources. The four hours can be accumulated through various separate professional ethics learning activities over the three years. Professional ethics learning activities must go beyond an awareness of the law, standards or guidelines. The learning activity must address the application of ethical principles or theories to the laws, standards or guidelines relevant to the member’s work and professional responsibilities. For additional information, please refer to our website.
Unverifiable Hours
Unverifiable hours include learning activities relevant to the member’s professional role that cannot be verified objectively, such as:
- On-the-job learning;
- Self-study that does not involve the successful completion of an examination or certification, including the use of computer-based learning activities, conference reference materials or webinars;
- Self-study that involves the completion of an examination, for which the examination is not in the current CPD reporting year; and
- Casual reading of professional journals or magazines.
Additional Guidance
Volunteer or pro-bono work may only qualify as verifiable or unverifiable CPD to the extent it meets the above definitions.
Example: Rolling Three-Calendar-Year Period
The example provided references total CPD hours, but can also be applied to verifiable CPD hours.
- 2015-2017: In the first rolling three-calendar-year period, the member completes 40 hours of CPD each year. The member completes four verifiable hours of professional ethics in 2017.
- 2018: the member completes 50 hours of CPD, for a total of 130 CPD hours for the 2016-2018 rolling three-calendar-year period.
- 2019: to meet the requisite 120 hours for the 2017-2019 rolling three-calendar-year period, the member needs to complete a minimum of 30 hours of CPD. Assume that the member only completes the minimum 30 hours of CPD in 2019
- 2020: to meet the requisite 120 hours for the 2018-2020 rolling three-year period, the member needs to complete a minimum of 40 CPD hours.
- A member who met the verifiable professional ethics requirement in 2017 and did not complete any professional ethics CPD in 2018 or 2019 would need to meet the requirement again in 2020, and so on. Four hours of professional ethics is required every rolling three-year period.
Examples: Rolling Three-Calendar-Year Period for Professional Ethics
Illustration #1:
If a member obtains all four hours of professional ethics in 2015, the deadline by which they will be required to complete the ethics requirement again is in 2018, and so on. The requirement is applied on a rolling three-calendar year period. See example:
E - denotes verifiable professional ethics
Illustration #2:
If a member accumulates the four hours of professional ethics over multiple years in the rolling three-calendar year period of 2015-2017, the member should be mindful that any professional ethics completed in 2015 will “fall off” the CPD totals for the rolling three-calendar year period of 2016-2018. In 2018, the member will be required to ensure that they have accumulated four professional ethics hours in the rolling three-calendar year period of 2016-2018, and so on. See example:
E - denotes verifiable professional ethics
Eligibility for CPD Reduction
Certain members may be exempt from the minimum CPD requirement. However, such members must still file an annual CPD report by January 31 for the previous calendar year to confirm compliance with the exemption criteria (except for members who previously claimed a CPD retirement exemption).
Members who re-enter the workforce after having been exempt from the minimum CPD requirement for more than two years are strongly encouraged to create a CPD learning plan. CPABC’s Associate Director of Membership Registration, Robert Bansal, CPA, CMA is available to assist in this regard at 604-730-6247 or rbansal@bccpa.ca.
Definitions
“Gross Active Income” is Active Income; however, it includes gross revenues related to professional activities from self-employment sources, regardless of the business structure used (e.g., sole-proprietorship, corporation, etc.).
“Active Income” includes Gross Income from employment, director’s fees, and net income from self-employment. Active Income does not include EI, pension income, investment income, support payments, or disability income. All other sources of income shall be considered “active.” CPABC reserves the right to request proof of income. The income threshold is adjusted annually. Income is based on individual earnings, not family/household income.
Members in Retirement
Members in retirement who meet all of the following criteria are exempt from the minimum CPD requirement:
- The member is at least 55 years of age as of December 31 of the reporting year; From the date of retirement,
- The member does not engage in public practice as defined in CPABC’s Bylaws (includes full-time, part-time or seasonal employees of registered firms);
- The member does not serve on the board or governing body of a public company or reporting issuer as defined in CPABC’s Code of Professional Conduct; and
- The member’s “Gross Active Income” does not exceed an indexed threshold of $32,300. Please note that “Gross Active Income” is different from “Active Income” for membership dues reduction/exemption purposes.
Members who wish to claim the exemption for members in retirement must file a CPD declaration online.
Members in retirement who have submitted a CPD declaration of their eligibility for exemption from the CPD requirements do not need to file an annual CPD report, unless they cease to meet the exemption criteria. In this case, members must advise Lisa Murray, CPD Administrator of their changed circumstances by email at cpd@bccpa.ca.
Members Caring for a Family Member(s)
Members out of the workforce caring for dependent(s) or on maternity/paternity leave who meet all of the following criteria can claim a reduction from the minimum CPD requirement:
For the months while on family leave,
- The member does not engage in public practice as defined in CPABC’s Bylaws (includes full-time, part-time or seasonal employees of registered firms);
- The member does not serve on the board or governing body of a public company or reporting issuer as defined in CPABC’s Code of Professional Conduct;
- The member has a dependent less than 7 years of age as of December 31; or the member’s dependent is >7 years old, however special circumstances apply; and
- The member’s “Gross Active Income” does not exceed an indexed threshold of $32,300. Please note that “Gross Active Income” is different from “Active Income” for membership dues reduction/waiver purposes.
Members who wish to claim the reduction/exemption for members caring for a family member must file a CPD declaration online.
Members who are not fully exempt for the calendar year must report their CPD by January 31 for the previous calendar year.
Non-Residents of BC
Non-resident members of CPABC who meet and report their CPD activities to another provincial CPA body in Canada where they pay their CPA Canada dues do not need to duplicate their detailed CPD reporting, nor do members who reside outside of Canada and meet and report their CPD activities to a foreign accounting body whose requirements are compliant with the IFAC International Education Standards where they are also a member. Such members only need to indicate the jurisdiction in which their membership is held on the annual CPD report. All other non-resident members must report their CPD, specifying verifiable and unverifiable CPD hours.
Extenuating Circumstances
Members who have a valid reason for an exemption from the minimum CPD requirement may submit a written request to the Membership Committee to consider their circumstances using the online reporting website. Members who submit a request related to a medical condition must attach CPABC’s Medical Form completed by their medical practitioner. Please note that members are expected to plan ahead and allocate time to CPD; being “too busy” is not a valid reason for exemption from CPD. The Committee will review each request on a confidential basis. Based on the information submitted, a determination will be made and forwarded to the member.
Additional CPD Information
New Members to CPABC
Beginning 2019, all new members will be required to report CPD in the year of admission. The CPD reporting year is the calendar year. There is no proration of the CPD requirements in the year of admission. CPD completed anytime in the calendar year will be eligible for CPD credit. The first rolling three-calendar-year period begins in the year of admission.
Transitional Provision for Student PD Requirements (CFE graduates)
Beginning 2019, Effective Management Skills and the additional seven-hour soft skills course are no longer required to be completed prior to admission to membership. As a transitional provision, students who have completed these courses prior to the year of admission may carryover these courses into their first CPD reporting year. Except for this transitional provision, there is no carryover of CPD from one calendar year to a subsequent year.
The seven-hour introductory course on the privileges, obligations and ethics of the profession (i.e. Gateway to Membership: Welcome to the Pros, or formerly, You and Your Designation) is still required to be completed prior to admission to membership. As there is no change to this course requirement, there is no carryover of Gateway to Membership: Welcome to the Pros or You and Your Designation for CPD credit to a subsequent year.
The Gateway to Membership course will qualify for seven verifiable CPD hours for those candidates who take the course in the same calendar year that they are admitted to membership. If the course is taken outside of the calendar year of admission to membership, it will not qualify for CPD credit.
Post-Admission Requirement for Newly Admitted CPA, CGAs
Domestic legacy CGA graduates admitted to membership are required to complete a seven-hour rules and standards course as a condition of membership. The CPA, CGA member is required to complete CPA Canada’s online course, “Essence of Professionalism: Ethics, Rules and Standards”. No other course will qualify to meet this membership requirement.
As CPA Canada operates separately from CPABC, you must report completion of the online course by emailing a PDF copy of the Certificate of Completion to cpd@bccpa.ca (Attention: Lisa Murray)
This requirement must be completed on or before December 31st of the full calendar year following the year of admission to membership. Completion of the mandatory seven-hour course counts towards the annual verifiable CPD requirement in the calendar year of completion and qualifies as verifiable professional ethics for the first rolling three-calendar year period.
If you have any questions regarding this requirement, please contact Lisa Murray, CPD Administrator at 604-488-2614 or email cpd@bccpa.ca.
Retention of Documentation/CPD Verification
Each year, CPABC verifies a sample of CPD reports for the preceding three-calendar-year period. Accordingly, members are required to retain all supporting documentation for their CPD activities for five years after the end of the reporting period. There is no need to submit the supporting records unless requested.
Verifiable CPD documentation should:
- Describe the learning activity;
- Identify the provider of the activity, where applicable;
- Connect the member to the activity;
- Identify when the activity took place; and
- Provide a basis for concluding that the number of reported hours is reasonable.
Examples of documentation, any one of the following:
- Certificate of completion or official transcript
- Confirmation of participation by provider or employer (e.g. registration confirmation)
- Attendance record (e.g. sign-in sheet)
- Course assignment and exam results
- Copy of course outline/agenda
- Copy of course payment/invoice
Competency Declaration for Audit Licensees
Beginning 2019, practitioners seeking or renewing an Audit License will be required to complete an annual self-assessment and declaration that they have undertaken sufficient relevant CPD to develop and maintain professional competence for their role. This new requirement is the result of revisions to International Education Standard 8 (Revised) and CPABC’s adoption of the standard in accordance with our commitment to meeting international standards.
The objective of IES 8 (Revised) is to protect the public, contribute to audit quality, enhance the work of Engagement Partners, and promote the credibility of the audit profession. IES 8 (Revised) requires “professional accountants performing the role of an Engagement Partner to develop and maintain professional competence that is demonstrated by the achievement of learning outcomes. For a list of the learning outcomes and additional information on this new requirement, please visit our Competency Declaration for Audit Licensees webpage.
Contact Information
Lisa Murray
CPD Administrator
cpd@bccpa.ca
604.488.2614