Bevublic of the Dhilivvines =. Pratesstonal Requiation Commission Manila PROFESSIONAL REGULATORY BOARD OF ACCOUNTANCY Resolution No, 358 Series of 2016 INCREASING THE REQUIRED CONTINUING PROFESSIONAL DEVELOPMENT (CPD) UNITS FROM SIXTY (60) TO ONE HUNDRED ‘TWENTY (120) CREDIT UNITS WITHIN A COMPLIANCE PERIOD OF THREE (@) YEARS FOR ALL CERTIFIED PUBLIC ACCOUNTANTS (CPAs) AND CHANGING THE THEMATIC AREAS TO COMPETENCE AREAS WHEREAS, Section 10, Article Ill of Republic Act No. 10912 or the “Continuing Professional Development Act of 2016”, provides thal compliance with the Continuing Professional Development (CPD) is @ mandatory requirement in the renewal of Professional Identification Cards (PICs); WHEREAS, Section 22 of Republic Act 9298, otherwise known as the ‘Philippine Accountancy Act of 2094”, states that all cetiied public accountants (CPAs) shall abide by the requirements, rulas and regulations on continuing professional education to be Promulgated by the Professional Regulatory Board of Accountancy (Board), subject 10 the approval of the Professional Regulation Commission (Commission), in coordination with the accredited national professional organizaton of certiied public accountants or any duly aceredited educational institutions, For this purpose, a CPE Council is hereby Created to implement the CPE program; WHEREAS, Board Resolution No. 59, Series of 2012, entitled “Clarifications and ‘Amendments on the Rules and Regulations on Continuing Professional Education and Accreditation of CPAs in Public Accouniancy and Accounting Education”, changed the term Continuing Professional Education (CPE) to Continuing Professional Development (CPD) and required sixty (60) credit units of GPD vihich may be earned by an individual professional in any of the three (3) years preceding the year of application for ‘accreditation forthe practice of public accountancy and accounting education; WHEREAS, Board Resolution No. 3, Series of 2016, as amended, entitled “Requitng |, Campiation Services tr the Preparaton of Financial Statements and Notes There the Submsson of Carlene ty Respursble Cored Pathe Accounts at fe |) Sas ina ne Coss orepairg ne thal stoner es to’ he Moncal Sttomonis and te Cate of Complaion Serces sel frat Se atcetio oy he Board after submitting the necessary appication requirements, including compliance: with the requirements prescribed in existing rules and regulations maintains professional competence to enable professional accountants 10 continue 10 erform their roles competently. CPD provides continuing development of the learning ‘outcomes for (a) technical competence, (b) professional skills, and (c} professional values, ethics, and atttudes which were achieved during Initial Professional Dovelopmant; WHEREAS, No. 34 of International Education Standards of the International Federation f Accountants (IFAG) defines CPD as tne learning and development that develops and ethical standards among accountants, the advancement of the science of accounting, and development and improvement of accountancy education; E A WHEREAS, the Philippine Institute of Cortiied Public Accountants (PICPA), the Accredited Integrated Professional Organization (AIPO) of CPAs in the Philippines, has among its objectives the promotion and maintenance of high professional ard PF PAREDES ST, CORNER N. REYES ST. SAMPALOC, MANILA, PHILIPPINES, P.0.BOx 2038, MANILASESE Me neouncoconnmamarnoressona. ceva ormeat ero unt WHEREAS, PICPA, being a member of the IFAC, has an obligation to comply with the Statment of Mombership Obligations (SMO) No. 2, entitled “International Ecucation ‘Standards for Professional Accountants (IES) and Other Pronouncements’, issued by the International Accounting Education Standards Board: WHEREAS, IES 7 states that IFAC member bodies implementing an input-based approach shall require each professional accountant to: (a) complete at least one hundred twenty (120) hours (or equvalent learning units) of relevant professional development activity in each rolling throo-yoar period, of which sixty (60) hours (or equivalent learning units) shall be verifiable; (b) complete at least twenty (20) hours, [or equivalent learning units) of relevant professional davelopment activity in each year; and (c) measure learning activities to meet the above requirements, WHEREAS, series of consultative meetings with the CPD Committees of PICPA, end the sectoral organizations, including the Association of CPAs in Public Practice, National Association of CPAs in Education, Association of CPAs in Commerce end Industry, and Government Association of CPAs, were made in order to come up with an ttfective and more relevant CPO program for the different areas/sectors of practice for CPAs; WHEREAS, in said consultative meetings, the stakeholders agreed 10 increase the required CPD credit units from sixty (60) to one hundred twenty (120) over a three-yoar pariod for al CPAs in Public Practice, Education. Commerce and Industry and Government, and to change the thematic areas to competence areas in accordance with IES; WHEREAS, the Association of Southeast Asian Nations Mutual Recognition ‘Arrangement (ASEAN MRA) for Accounting Services, to which the Philppines is a signatory, made it necessary for professional accountants to Keep and maintain ‘competiiiveness vis-a-vis their Southeast Asian counterparts, in viow of the ASEAN Economie integration. Such competitiveness is achieved through the continued ‘acquisition and updating of knowiedge, the honing of skits, and life-long learning. NOW THEREFORE, the Board RESOLVED, as it now RESOLVES to increase the required CPD credit units from sixty (60) to one huncred twenty (120) units within ‘complance period of three (@) years for all CPAs in Public Practice, Academe, Commerce and Industry and Government, and to change the Thematic Areas to Gompetence Areas which shall be categorized into Technical Compstence, Professional Skills and Professional Values, Ethics and Atitudes. Section 1. Definition of Terms. ~ The folowing terms used in this Resolution are defined as folows: 8) Continuing Professional Development - refers to the inculcation of advanced knowledge, skils, and ethical values in a post-icensure specialization or in. an inter- or multidisciplinary field of study, for assimilation into professional practice, self-directed research and/or itetong learning, b) CPD credit units ~ refers to the value of an amount of leaming that can be transferred to a qualification achieved from formal, informal, or non-formal learning setting, wherein credits can be accumulated to predetermined levels for the award of a qualification:soe ee a ee a a a Tas ©) Competence ~ refers to the ability to perform a werk role to a defined standard with reference to working environments: 4) Competence area ~ refers to a category to which a set of related Jeaming ‘outcomes can be specified; ©) Flexible CPD Activities — refers to the CPD leaming activities that may be ‘earned by spending training or seminar hours beyond the minmum competence areas; {| Input-based Professional Development Activities ~ refer fo the approaches to measure attainment of CPD by establishing an amount of learning activity for professional accountants to develop and maintain professional competence; 9) Online learning activities — rofor to structured or unstructured leaming inkiatives, which make use of the internet and other web-based Information and Communications Technology solutions: h) Output-hased Approaches — refer to the approaches to measure attainment of CPD by requiring professional accountan’s to demonstrate that they have developed and maintained professional competence; |). Professional — refers to a person who is registered and licensed to practice a regulated profession in the Philippines and who holds a valid Certificate of Registration and Professional Identification Card (PIC) trom the Professional Regulation Commission; }) Professional skills ~ refer to the various types of abilities required to apply professional knowledge. and professional values. ethics, and atitudes appropriately and effectively in a professional context k) Professional values, ethics, and attitudes ~ refer to the professional behavior and characterstics that identify professional accountants as members of a profession. They include the principles of conduct (.e., ethical principles) {generaly assocated with and considered essential in defining the distinctive ‘characteristics of professional behaviour; 1) Qualification ~ refers to a status gained after a person has been assessed to have achieved learning outcomes or compatencies in accordance with the standard specified for a qualification ttle, and is proven by a document issued by ‘a recognized agency or body; ) Self-Directed Learning — refers to the leaming activities such as on-ine training, local/intomational seminars/ncn-degree courses, institution/company sponsored training programs, and the like which did not undergo CPD accrecitation but may bbe applied for and awarded CPD units by the CPD Council; 1) Technical competence — refers to the abiity to apply professional knowledge to Perform a role to a detined standard; and 0) Lifelong Learning ~ refers to al learning activities undertaken throughout life for the development of competencies and qualifications of the professional,tae 8° Section 2, Thematic Aroas of CPD activitios shall be changed to Competence Areas - Thematic Areas of CPD actvities shall be changed to Compeience Areas in order to align with the international Education Standards. It shall be divided into throe {) major categories, viz: (a) Technical Competence, (o) Professional Skils, and (c) Professional Valuos, Ethics & Attitudes, and which shall include the following aroas, with the corresponding required vertiable unts starting 2017: COMPETENCE AREA Minimum Required Verifiable Units Starting 2017 “AL COMP! 30 1. Standards Applicable to the Professional Practice which include but are not limited to the following: a. Current and recent issuance on the respective aroa of practice of the profession, e.9. those from the standard-setting bodies Financal Accounting and Reporting: Assurance and Auditing; . + Foiated practice statements and é interpretations; and © Pronouncements related to Taxation, depending on the area of practice of the prtesioral LT pared is an FAC \e member bodies ~ a Laws, ules and Regulations atfecting Professional Practice which include but are not limited to: a. Issuances of governmentiregulating bodies, ‘such as, but not limited to, ‘+ Professional Rogulation 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 protessional regulatory regimes); Frm bi OBSresownon vo. 358 Suan Naicua ota Tp B. PROFESSIONAL SKILLS + Securties and Exchange Commission, | Bangko Sentral ng Pilipinas, | Insurance Commission, Bureau of | intemal Reverue, Cooperative | Development Authority; + Commission on Higher Education and | Deparment of Education; ang + Commission on Audi, Department of Budget and Management, Ci | Service Commission, for CPAs in| ‘government sector; b. ASEAN and other interational treaties atecting the practice of Filipino CPAs; and . Other laws and regulations that govern different forms of legal erties, 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 entties of the professional, Professional development activities that enhance the —CPA’s_intollectual, interpersonal, communication, personal and organizational skills, which include but are not limited to: (Oral and written communication; Presentation, negotiation and faciitation skits ‘Teamwork enhancement; Personality and social graces; Decision making, leadership, management and supervision; | Conflict resolution, cultural immersion Programs, language learning programs, time land resources management, work or process innovations and probiem solving skils; and 9. For CPAs in the education sector, teaching techniques and other education-related CPD | leaming activities. eaoge FESSIONAL ATTITUDES S,_ETHICS AND |escuno% wo. 358 ‘Babee HE Neues WAS 1 SOMMETENGY ANAS ‘Code of Ethics for Professional Accountants; b. Quality standards based on issuances of bodies affecting the professional practice; G Governance principles and intervention; and | 4. Social responsibilty, principles and | interventions a | Section 3. Required CPD Credit Units within a Compliance Period. All CPAs. regardless of aroa/soctor of practico, shall bo required to comply with tho one hundred 'wenty (120) CPD credit units within'a compliance period of three (3) years, and which shall be implemented in phasos as folows: Required Minimum | FlexibleCPD | Required | numberof Units Under Units Minimum CPD Units Requir Units Earned ‘Competency from the | ‘Areas Previous Year(s) for License Renewal 2016 ol 40 20 0 or 0 0 o wv 2018 100 40 60 ‘20 units eamed | from the immediately preceding year. 2019 120 80 ‘20 units eamed | from each of the 2 immediately preceding years. BY an KR Committee (Joint Committee) is hereby organized to assist the PRC CPD Council of ‘Accountancy in implementing the provisions of this Resolution, particulary in evaluating applications for self-directed o* lifelong learning CPD activities. The Chairman and Co: Chair of the Joint Commitee will be the Chairs of the PRC CPD Council of Accountancy Ind PICPA CPD Committee, rospectively. PICPA and cach of the sectoral organizations wil each nominate not more than two (2) representatives to be members of the Joint Committee. The Joint Committee shall develop its torms of roference, subject to approval of the Board and the Commission, Section &, Operationel Guidelines. The C20 Counc! of Accountancy shal formulate iS Operational Guideines forthe implemeniaion of CPD programs, subjes 10 the = ‘approval ofthe Board and the Commission,resoumon no. 358 rane 9| vee fox alt eemrires russe aceauviavts ese ax OP Section 6. Repealing Clause. Any rule and regulation or resolution or partis thereot inconsistent with the provisions of this Resolution are hereby repealed or modified accordingly. Section 7. Etffectivity. This Resolution shall take effect fiteen (15) days after its full and complete publication in the Oficial Gazette or in a newspaper of general circulation in tho Philippines. Copy hereof shall be furnished the U. P. Law Center, PICPA, and other concerned professional associations for their guidance. Done in the City of Manila, Philippines, this 7th day of _Noverber 2016. fel) L. TAN-TORRES Chairman 4 4, onary GLORIAT. BAYSA bi auehes Mee Saen: GERARD B. SANVICTORES saNGEL 6: PADILLA Member jember ( Ne ee / CoNcoRg)o ¥. quIsAoT ELISEO A. AURELLADO Methbo Member heen D usaeas — ARLYN S. VILLANUEVA Member attested to: UATE OF RUBE e iced ana sare OF eREESTIVITY OIG, Secretary to the Professional Regulatory Boards APPROVED: a fs TEOFILO 8. PILANDO, JR. Chatman prbice2l ANGELINE T. CHUA CHIACO CommissionerAppendix A: MATRIX OF CPD ACTIVITIES aOGAAM/ ACTINTY. ON sr CREDTUNTS ‘SUPPORTING DOCUMENT ‘PROFESSIONAL TRAGK TRAINING OFFERED EY ACCREDITED CFO PROVIDERS, Face & Tamim 0 Cy ean ‘mont parodora raion | Diora Certiaton torte seen therof upon compaon Facer oie) - : ‘11 As Participant ‘Unit for he | Certifcae of Attendance wi No.of Hours | ja) Partciaton in courses, eal ‘i regan oie anes [a saemoce Wepre Piovonrceriiaie | @)Petoxsionas espe | Seemer Cop nes {oer rag 501. oF | gam nator Snsbrani 13 RaPinaRoni | CU for Gait eon oT L | Copy Prom Tea ‘eure anton to ssc Sanh Folio oe conn ECE lene “weet ranbrol | — Tog tat Conia arprredrstna orhe | Ape ee uber tr regen ‘eww Tangy | Macon 6 CU bra | — Cee ing ng rte venng | mont pordoraecen ‘eon \* Soe ipncorgerar ERATE TRACK {rut gia 5 tr compton 2 ters gee | Scrat angie | very Gran? | 1) Formal a as eqwaer ered Upon Conpatono! | Opona engt erode | paar epeebites Degiee {guthenteated copy) Ta Dara Degee | Brat ot gan Segue ered Uon Congo! 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Cerbficate of Ceepletion 21 Fang Goi 24 Parga Taupe GET ——| Centetenton earn aston | 2a zReseuce ‘eubeoat | ma Catchy Seipegai{ SEIFDRESTED (raring Ofred by Non Acosed CPO Providers Fas Fea Clin) [ANOOR JFELONG LEARN TH AsParcpen! | Cleat Uns WriePoxan | Cotta Aedoce w Wo oT | ‘satay ne CPD ‘senna Porn| ‘aur Para Tepe tor Prana aoe Sener Copy ayes Praga ton Sa Tailor | TU patewr | Conan to poracing eaten igre roger Ts TOUparror | rato am prs oan Folios Ciera Fog TBinsoraa ronng! | Monn al20G) bra ® | — Cree a Tring an Talang Srneforenng | monn peredor facen ‘becrten ‘pees apncenpeen a __—| | Praganvtaneg | 18 Cu perconpete scl | Copatmndie Reakalor |e] Dew dag nose ‘rosue Sree €F0sxeen nanan Dever ‘ted presen ce __| eporsbies {17 Teil Pagar | SC Tai Papr| Gotan of Campin ard Apel] m Veto ack pgs for Published Paper, seo. for Pubishod Papor, 0 3.8) ‘doaks of atechnical profectoral fr cmd “TE Ge PRT 9 REE Pe PTT ART ‘ET Aivoes | Lee TOOU | wate’ | Copy o Poses a aa Tao ‘eu centers Farmlipaadiors dle ‘Wea avenge ‘S82 Peer CO per tice Revewer_ 39 Pane Book or Hoag DOCU | WCU | Canal Paiaeahtaa wi Poeat a9; astots | see autor | “ange” | Coppa tae Canes fearpret | anor festa | Bote Dopo | Noon (mere than a, |, OBO) Ferme ers owe Ea amen oe Teun af 0C aero CU pr Pr Pa oe ‘ac For mate autos soe ‘eam anong em YC oyna 28 | — Coon Fan an AROS conan ‘ Tel pormecing aed | — Cation d Meda rd CPO [a Pacer and wk omemaxmonat2x Gl | compe spec be Seca nd_| twat tonne eee ea “hiyaoes by be Craman he reece Commitee(Cu fr mer vaurtay | Supcto por determin ne appt services sngetto pron bye det CPD Conte ‘ approval ye Jt CPD ‘Commies, Cre Unitper Hour | Proc Proposal Reportar Photos FulCedt stor | apy Careaton a he Awarng Ccamplance Pees, ster Body (votre) "Daprova ty BeCPD (Couns 4. SUCH OTHER ACTIVTIES TOBE RECOMMENDED BY THE CPD COUNCIL AND APPROVED BY THE BOARO OF [ACCOUNTANCY AND THE PROFESSIONAL REGULATION COMMISSION{* SELF-CARECTED (Traming Ofered by Nor Accredited CPD Providers Face te Face / Ondine) ee | een | Serna Progam PRataceny of certicate | 37 Techescat Paper SCilpe Tectienca Paper Certlcaton of Compieton and Aggeoea’ | (hj Wenn uricies papers. or bachbesse Paper, eee (er Prtteted Pacer wee 38) boon ofa techn! profmscrat wate ee LL — 1 TET Ramer] Local 10 CU] eteratonal | Copy of Paneth and Tate of T }75 Pore Langage 10 CU reach Fomge — Capy of Garnticate of Compieton and Corticators - (Language Certtcaton =| Prociency hom. a Guysmcognaet =A (rent pared or atacter «= Opicma | Certiicaton tom Phe ination Perec! wor compatcn2. PROFESSIONAL VALUES, ETHICS AND. ATTITUDES . Code of Ethics for Professional Accountants; b. Quality standards based on issuances of bodies affecting the professional practice; . Governance principles and intervention; and d. Social responsibility, principles and interventions » o 3. Required CPD Credit Units in a -ompliance Period. (see Table 1 above) 4. Joint PRC-PICPA CPD Committee 5. Operational Guidelines 6. Repealing Clause 7. EffectivityB. PROFESSIONAL SKILLS 1. « 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. Professional development activities that enhance the CPA's intellectual, interpersonal, communication, personal and organizational skills, which include but are not limited to: Oral and written communication; Presentation, negotiation and facilitation skills; Teamwork enhancement; Personality and social graces; Decision making, leadership, management and supervision; 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. g@aocmCOMPETENCE AREA A.TEC 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, on. @.g. those from the standard-setting bodies e Financial Accounting and Reporting; * Assurance and Auditing; e 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); Minimum Required Verifiable Units Starting 2017The Resolution 358-2016 has the following sections: 1. Definition of Terms 2. Thematic Areas of CPD activities shall be changed to Competence Area, A. Technical Competence B. Professional Skills C. Professional Values, Ethics and Skills Table 2 Section 2. Thematic Areas of CPD activities shall be changed to Competence Areas - Thematic Areas of CPD activities shall be changed to Competence Areas in order to align with the International Education Standards. It shall be divided into three (3) major categories, viz: (a) Technical Competence, (b) Professional Skills, and (c) Professional Values, Ethics & Attitudes, and which shall include the following areas. with the corresponding required verifiable units starting 2017(Pls see below excerpt of the Clarification Memo or click Attachment 2 for full copy of Memo)“CLARIFICATION ON THE INCREASE IN THE REQUIRED CPD UNITS FOR YEAR 2017" has been issued by Hon. Gerard Sanvictores, Member of PR BOA and Chairman, CPD Council of Accountancy on January 26, 2017, to clarify that 60 (not 80) CPD units is required for various accreditations in the practice of accountancy until June 30, 2017. By July 1 until December 31, 2017, accreditations and renewal of PRC license for CPAs shall require 80 CPD units, and shall be increased thereafter in accordance with BOA Resolution 358-2016 (see Table 1 above).Table 1 Section 3. Required CPD Credit Units within a Compliance Period. All CPAs. regardless of area/sector of practice, shall be required to comply with the one hundred twenty (120) CPO credit units within a compliance period of three (3) years, and which Shall be implemented in phases as follows: Yearot | Required | Minimum | Flexible CPD Required Renewal number of Units Under Units Minimum CPD Units Required Units Earned Competency from the Areas Previous Year(s) for License 7 _ po Renewal 2016 60 40 20 0 2017-—SOS 80 ] 40 | 40 | 0 2018 ~—~COS oo 836)—(‘«X!T]C~™ 60 | 20 units earned from the immediately Preceding year 2019°—°~C* 1200~CS*~Ssé‘ OS | 80 ~—~| 20 units earned from each of the 2 . ; preceding years.Dear All: Professional Regulatory Board Board of Accountancy Resolution 358-2016, "INCREASING THE REQUIRED CPD UNITS FROM 60 TO 120 CREDIT UNITS IN A COMPLIANCE PERIOD OF THREE (3) YEARS FOR ALL CPAs REGARDLESS OF AREA/SECTOR OF PRACTICE AND CHANGING THEMATIC AREAS TO COMPETENCE AREAS," has been issued with an effective date of 22 January 2017. (Pls click Attachment 1 below for full copy of Resolution).teres bye! 3 prer by Be Jomt CPD Common Audit, Goverment WOW by Me Jot CPD Comme Achetes (ag Mentors | 3 Credit Unit per How Project Prapcast Rupert and Protos Hihicapaovtee Fiat Creat Unt tor Copy of Certticanon tam he Aaartng 1 (eg Fotows, Hat of (Compliance Penod, sutgect Body iduy scmanzed) Fame Award, © approeal by he CPD Cort \#) 1. —_ 4 4. SUCH OTHER ACTIVITIES TO BE RECOMMENDED BY THE CPO COUNCA. AND APPROVED BY THE BOARD OF LMESSHASTANGY AND TH PROFESSIONAL REGULATION COMMEESION