chargeable hours acquired as a result of participating in a recognized capacity in providing public accounting services; and
other hours acquired in designated services.

Chargeable hours

“Chargeable hours” are hours normally chargeable to clients of a public accounting practice, excluding work of a routine clerical nature. Licensees who charge clients on a “value billing” basis should track and report the actual hours that they spend on such engagements even if the hours are not chargeable.

Public accounting services

“Public accounting services” are:

assurance, including auditing or review engagements;

compilations in respect of which it can be reasonably expected that all or any portion of the compilation or associated materials will be relied upon or used by a third party, whether or not the compilations or associated materials are accompanied by the prescribed Notice to Reader.

Hours acquired in the following designated services may be recorded as public accounting services if they were acquired while participating in a recognized capacity in providing public accounting services for the practice or firm:

research on the interpretation or application of either or both of Canadian Generally Accepted Accounting Principles (“GAAP”) and Canadian Generally Accepted Assurance Standards (“GAAS”), or on professional standards;
research conducted for, or advice given to, assurance clients on matters related to assurance engagements.

If recorded as public accounting services hours, such hours may not also be counted as designated services hours within the total 2500 eligible hours requirement.

Also see below, Recognition of hours acquired as part of the work for determining tax matters.

A minimum of 1,250 eligible hours in public accounting services is required over the five-year period.

Designated services

“Designated services” are:

taxation services related to assessing the appropriateness of taxation provisions and related financial reporting (also see below, Recognition of hours acquired as part of the work for determining tax matters);
performance measurement relating to the evaluation, development and interpretation of an entity’s financial and non-financial information that measures and enhances an entity’s organizational performance;
forensic accounting;
research on the interpretation or application of either or both of Canadian Generally Accepted Accounting Principles (“GAAP”) and Canadian Generally Accepted Assurance Standards (“GAAS”), or on professional standards;
financial reporting involving the review of accounting principles and financial statement disclosure and the appropriateness of internal controls for the purpose of presenting fairly the financial statements of an entity;
corporate finance services related to assisting a client in obtaining financing by explaining the financial statements to a financial institution, and assisting a client in analyzing the accounting effects of certain transactions;
research conducted for, or advice given to, assurance clients on matters related to assurance engagements;
training of other accountants or staff of the practice or firm in respect of the performance of assurance services where such training is an ongoing responsibility of the member.

Up to 1,250 other hours in one or more designated services obtained within the five-year period may be claimed for recognition.

Recognition of hours acquired as part of the work for determining tax matters

The following hours spent as part of the work being done for determining a tax provision in the performance of an assurance or compilation engagement are most appropriately reported as “designated services” under “taxation services related to assessing the appropriateness of taxation provisions and related financial statements”:

making and documenting the judgement as to the treatment of tax issues; and
providing advice and/or researching tax case law etc. to assess the deductibility of an amount for accounting and tax purposes, i.e. for the calculation of future income taxes

The hours are not reportable as “public accounting services” hours.

Participating in a recognized capacity in providing public accounting services

“Participating in a recognized capacity in providing public accounting services” means the eligible hours must have been obtained while being a sole practitioner, partner or employee* of a CA public accounting practice (a sole proprietorship, firm or professional corporation) that is registered as a public accounting practice with the Institute pursuant to Bylaw 307. For licence renewal purposes, “practising office” includes the national or head office of a public accounting firm that has been accepted by the Canadian Public Accountability Board as a participating audit firm in its oversight program, whether or not the office has been the subject of a practice inspection. The eligible hours must have been obtained while participating in a recognized capacity, as follows:

having directly participated in a public accounting engagement, including any related subsidiary engagement, as a member of the engagement team; or
having responsibility for the entire public accounting engagement; or
having been in a position to directly influence the outcome of a public accounting engagement, such as providing:
direct supervision, management or other oversight of the leadership of the engagement team(s);
consultation regarding professional standards;
consultation or opinions regarding taxation provisions or other technical or industry-specific issues, transactions or events;
quality control reviews.

* Employee for this purpose includes full-time and part-time employment or providing services on a contract or per diem basis.

CPAB and Institute practice inspectors

For licence renewal purposes, “participating in a recognized capacity in providing public accounting services” also includes a practice inspector appointed by the Institute or by the Canadian Public Accountability Board to conduct practice inspections of licensees, firms and practising offices.