QAU Alert No 2016-26 R.A. Act 10912, Resolution 2016-990, and CPD Matters

On August 8, 2016, the Board of Accountancy invited all CPD Providers in a meeting to discuss the following:
o Republic Act No. 10912 Continuing Professional Development Act of 2016;
o Resolution No. 2016-990 Amendments to the Revised Guidelines on the Continuing Professional Development (CPD) Program for All Registered and Licensed Professionals; and
o Other CPD Matters.
The meeting was held in PICPA office at 2:00pm to 4:30pm.
In the meeting, the following important items were discussed:
A. Republic Act No. 10912

  • This lapsed into law on July 21, 2016 without the signature of the President.
  • There will be CPD programs for each of the regulated professions (see Sec 4).
  • The CPD programs are consist of structured and non-structured activities (see Sec 5).
  • CPD will become an additional requirement in the renewal of professional license and accreditation system for the practice of professions (see Sec 10).

- The Quality Assurance Unit (QAU) encourages all affected CPAs to renew their license before August 16, 2016. Note that renewal of license one year prior to expiration is allowed.

  •  The Implementing Rules and Regulations (IRR) will be disseminated within six (6) months from the effectivity of this act (see Sec 15).

Republic Act No. 10912, Resolution No. 2016-990, and CPD Matters
B. Resolution No. 2016-990

  •  Approved on June 28, 2016 and published on July 21, 2016
  • Registered and licensed professionals will have to complete the required credit units within three (3) years. However, excess credit units earned will not be carried over to the next three-year period, except credit units earned for doctorate and master’s degree or specialty trainings which will be credited only upon compliance (see Sec 5).
  • The maximum creditable units for self-directed1 and/ or lifelong learning2 shall be determined by the CPD Council as approved by the Commission through their Operational Protocol (see Sec 6).
  • CPD provider will have to hire a CPD Program Monitor. The Monitor is in-charge to observe the seminar or training. And, he/she will be credited twice the number of credit units approved for a CPD program for which he/she acted (see Sec 7).
  • Effective on August 5, 2016

C. CPD Matters

  • There will be gradual increase in CPD requirement for Accountancy profession, see details below.

YEAR

REQUIERED CREDIT UNIT

2016

60

2017

80

2018

100

2019

120

  

The gradual increase to 120 credit units is for us to comply with the International Education Standard (IES) 7 and for us to be at par with other ASEAN Member States.

  • There will be a shift from the CPD learning categories of Thematic3 to Competence Areas. This is to achieve consistency with IES. See details below.

1 Self-directed learning refers to learning activities such as online training, local/international seminars/non-degree        courses, institution/company-sponsored training programs, and the like, which did not undergo CPD accreditation but  may be applied for and awarded CPD units by the respective CPD Council.
2 Lifelong learning refers to learning activities undertaken throughout life for the development of competencies and  qualifications of the professional.
3 see BOA Resolution 59, s2012

Thematic Areas

Competence Areas

Standards Applicable to Professional Practice (24)  
Laws Rules and Regulations affecting the Technical Competence (30) Practice (6)
Environment of the Practice (10)  
Development of the Person as a Professional (10) Professional Skills (5)
Ethical, Governance and Quality Principles (10) Professional Values, Ethics and Attitudes (5)

 

The credit units earned under the Thematic Areas can still be used under the Competence Areas. There will only be regrouping of the credit units.

  • The following NEW RULES will apply:

Year

Required Credit Units

Minimum Credit Units

Flexible Credit Units

When should the flexible credits units have to earn?

2016

60

40

20

0

2017

80

40

40

20 credit units from immediately preceding year

2018

100

40

60

20 credit units from each of the two immediately preceding years

2019

120

40

80

20 credit units from each of the three immediately preceding years

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Flexible credit units can be earned from any of the Competence Areas.

  • For CPD Provider like CTDI, the CPD Council requires to submit application for accreditation of seminar at least forty five     (45) days prior to the actual date of the seminar.
  • A quiz will be provided by a CPD Provider to all the attendees. And, only those who pass the exam will earn the credit           units.

In view of the foregoing, CPD Providers will have to conduct frequent seminars to accommodate this demand. And, for all CPAs, whether you are in the public practice, in the academe, in the government, or in the private companies, you have to strictly comply with these rules to avoid hassle in renewing your license. Certainly, this will entail additional cost on your part, not just money but also time. On the brighter side, it’s an opportunity to continuously upgrade your knowledge and skills.