Frequently Asked Questions
Q: Why "20/120 hours"?
A: The objective of any CPD requirement is to ensure that individuals complete learning activities that maintain or improve their professional competence. Unfortunately, measuring the improvement in competence is not practical in most situations, so the hours spent in learning activities are used as a proxy for measuring competence. We will continue to rely on the practice inspection program to evaluate the competence for members who practice public accounting.
The annual requirement of 20 hours represents the minimum of CPD that would be reasonably expected for a member to maintain their professional competence. In the longer term, this is not considered sufficient for members to meet the changing demands of the marketplace. The three-year cycle allows members greater flexibility to adapt their CPD requirements to their particular circumstances.
The "20/120 hours" is comparable to both the American Institute of Certified Public Accountants' requirement and the Continuing Professional Education and Development standard developed by the International Federation of Accountants. [close]
Q: Accounting, Tax and Assurance courses are irrelevant to me, why should I take these courses?
A: You should take courses that are relevant and appropriate to your work and responsibilities. There is no requirement to take specific accounting, tax or assurance courses. Take those courses that make sense for you - these could be on technology tools, leadership or management, industry related subject matter, and courses which add to your competencies. A licensed public accountant must ensure that their CPD activities directly relate to the competencies needed to provide public accounting services. [close]
Q: How do I determine how many hours each learning activity is worth?
A: The number of hours you report should be the actual hours that you spent engaged in the verifiable or other learning activity. For a full-day course, this would normally be 7 hours; excluding refreshment and lunch breaks. If there was a "working lunch" where you were preparing a case study, for example, that time can be recognized towards the CPD requirement. Similarly, if the course lasted from 8 am to 6 pm, with a one-hour lunch break, it counts as 9 verifiable hours. [close]
Q: How do I know whether a course sponsored by a third party will count towards my verifiable CPD requirement?
A: The Institute does not "approve" providers of CPD programs, nor must all courses be taken through the Institute. The most important factor is whether the course contributes to your professional development. If it is relevant and appropriate to your work and professional responsibilities, and it contains significant intellectual or practical content, it should count towards the verifiable CPD requirement. [close]
Q: Our auditors came in and provided detailed training to our corporate accounting team on the new financial instruments standard. Does this qualify as verifiable learning?
A: Yes it would. Keep a record of the agenda or minutes or other available documents. The key criteria is that the learning activity can be verified so it’s important you have some documentation to support your participation in this learning activity. [close]
Q: I already have a mandatory CPD requirement for another designation that I hold - can I count those courses towards my CA mandatory CPD requirement as well?
A: If the courses are relevant and appropriate to your work and professional responsibilities, and contain significant intellectual or practical content, they may be counted towards the Institute's verifiable mandatory CPD requirement. If you hold membership in more than one provincial institute, then your CPD requirement should be reported to the provincial institute where you hold prime membership. For members not residing in Canada or Bermuda, who holds membership in a Recognized Professional Accounting Body, which has CPD requirements substantially similar to those of the Institute, shall meet and attest, on a Form 4-5A compliance declaration, that they have met the requirements of that body. [close]
Q: I have been on maternity/parenting/family care leave, how does this affect my CPD Requirements?
A: An exemption from the annual requirement is available if you did not work for a total of 6 months or more between January and December in order to provide full-time care to either child(ren) who were under the age of 18 or for an elderly or ill family member, and you were not involved in any activity where it was reasonable to believe that another party was relying on your skills as a chartered accountant. A member who holds a Public Accounting Licence (PAL) or is applying for a PAL, must complete the CPD requirements as documented in Regulation 9-1 (Sect 1.2). [close]
Q: I am retired and provide reliance services, how does this affect my CPD requirements?
A: Effective, January 1, 2010, there is a reduced requirement for retired* members who are providing reliance services:
If gross annual income from reliance services exceeds $25,000 but is less than $75,000, the minimum level of CPD is 10 hours per year, and 60 hours over the three-year period.
If serving on the board or governing body of a public interest entity that has annual gross revenue greater than $100,000, or that is a deposit-taking institution irrespective of the amount of gross annual revenue, the minimum level of CPD is 10 hours per year, and 60 hours over the three-year period.
If gross annual income from reliance services exceeds $75,000, the minimum level of CPD is 20 hours per year, and 120 hours over the three-year period; this is the "normal" CPD requirement, and there is no reduction.
If serving on the board or governing body of a reporting issuer that has either market capitalization or total assets of $10,000,000 or more, the minimum level of CPD is 20 hours per year, and 120 hours over the three-year period; this is the "normal" CPD requirement, and there is no reduction.
* retired is defined for the purposes of continuing professional development to be a member who has ceased full-time practice, full-time employment or full time business activity and the sum of the member’s age and the total number of years of aggregate membership in the Institute, or the Institute and another professional accounting body, equals or exceeds “85”.
At least half of the annual and triennial requirement must be met through verifiable CPD. [close]
Q: I am retired, serve on boards, committees and do some part-time work such as investments for a local church. I do not have a public accounting licence, and I do not perform any part-time accounting, taxation or compilation services. Am I required to do professional development?
A: Members who are retired from full-time employment, full-time practice or full-time business activity, do not hold a public accounting licence and do not provide reliance services are exempt from the continuing professional development requirements.
If gross annual income from part-time practice or professional services is less than $25,000 a retired exemption may be claimed.
If however, another party is relying on the member’s skills as a Chartered Accountant when the member serves in his/her capacity on the board, a member should exercise his/her professional judgment and assess the degree to which the entity and its stakeholders rely on his or her skills as a Chartered Accountant in fulfilling that position. If there is any doubt as to whether there is reliance on the member’s skills as a Chartered Accountant, the member should comply with the CPD requirements. [close]
Q: How does the new “85 factor” for retirees impact reporting on the 3 year cycle that was effective from January 1, 2010?
A: If a member retires after December 31, 2010, and the sum of the member’s age and the total number of years of aggregate membership in the Institute or another Institute and another professional body equals or exceeds 85, then he or she would have been subject to the annual mandatory CPD requirements for 2010, but would be exempt from the requirement for each of 2011 and 2012 of the 3 year cycle, unless they are involved in an activity where it is reasonable to believe that another party is relying on the member’s skills as a Chartered Accountant, or hold a public accounting licence. In the latter cases, the member is subject to fulfilling the mandatory CPD requirements as outlined in Regulation 4-5. [close]
