This is the second of a series of three blogs about CPD requirements worldwide. This one focuses on the differences, the first blog on the similarities is here!
Continuing Professional Development (CPD) requirements for accountants vary across different countries and professional bodies. The International Federation of Accountants (IFAC) does however provide guidance and standards for CPD through its International Education Standard (IES) 7. The standard states that CPD is mandatory for all professional accountants to maintain and develop professional competence as a way of ensuring that they provide ongoing high-quality services to their stakeholders. IFAC stipulates that professional bodies need to provide access to effective CPD that is relevant, measurable, sustained, and documented.
While professional bodies are required to offer CPD that adheres to IFAC’s guidelines, there are some differences in the approaches that the professional bodies take with their CPD requirements.
Annual CPD Hour Requirements
Professional bodies around the world have varying requirements for the minimum number of CPD hours their members need to complete each year. For example:
- United Kingdom: ACCA members need to complete 40 hours of CPD annually (1 January-31 December) made up of 21 units verifiable CPD and 19 units non-verifiable. ICAEW members are required to complete a certain number of hours each CPD year (1 November-31 October) depending on the type of work and the organisation the member is part of. For example, a finance director at a large company is expected to complete more CPD than a member of the finance team.
- Australia: Both CPA Australia and Chartered Accountants Australia and New Zealand (CA ANZ) requires its members to complete 120 hours of CPD over three years with a minimum of 20 hours each year.
- Hong Kong: Members of Hong Kong Institute of Certified Public Accountants (HKICPA) are required to complete 120 hours of CPD over three years with at least 60 hours being verifiable and at least 20 hours each year.
- Japan: Japanese Institute of Certified Public Accountants (JICPA) typically requires 40 hours of CPD per year with a focus on formal education and structured learning activities.
So while most professional bodies require their members to complete a minimum of 20 hours CPD per year, the number of hours does vary as do the dates of the CPD year and how much CPD needs to be verifiable.
Types of Qualifying CPD Activity
The types of activities that qualify for CPD and the flexibility in meeting these requirements can differ widely. For example:
- The European Federation of Accountants and Auditors for SMEs (EFAA) allows a broad range of activities including formal education, workshops, seminars, online courses, and self-directed learning.
- Chartered Accountants Australia and New Zealand (CA ANZ) takes a flexible approach, recognising activities such as mentoring, volunteering, and community service as being valid CPD.
- The Japanese Institute of Certified Public Accountants (JICPA) often focuses on formal education and structured learning activities.
- The Institute of Singapore Chartered Accountants (ISCA) accepts a wide range of CPD activities including technical training, personal development, and industry-specific training.
Monitoring and enforcement of Continuing Professional Development (CPD) activity for accountants differ globally due to variations in regulatory frameworks, professional standards, and cultural approaches to compliance. However, members are typically required to maintain records and compliance is monitored through periodic audits.
CPD Content and Topics
Different countries emphasize different aspects of professional development based on local requirements and professional needs. Some accounting bodies focus predominantly on technical accounting knowledge (e.g., changes in accounting standards, tax regulations) while others also emphasize the importance of developing the soft skills required to be a well-rounded accountant (e.g., leadership, communication, and project management).
In the US, there is an emphasis on technical skills and ethical standards whereas the professional bodies in the UK take a more holistic approach that focuses on maintaining and enhancing professional competence by encouraging members to develop both technical and non-technical skills. In Hong Kong, there is a strong emphasis on providing CPD that is internationally relevant such as content on international standards, whereas in South Africa there is a requirement for acquiring technical knowledge while focusing on local economic and social issues.
There are also different industry-specific offerings from CPD providers so that accountants can learn about the unique accounting and financial challenges of different sectors. For example:
Financial Services
CPD is focused on regulatory compliance, risk management, and specialised financial instruments.
Key Topics:
- Banking regulations
- Investment management and financial markets
- Risk assessment and mitigation
- Financial instruments and derivatives
- Anti-money laundering (AML) and fraud prevention
Healthcare
CPD is focused on healthcare finance, regulatory requirements, and cost management.
Key Topics:
- Healthcare accounting and reporting standards
- Revenue cycle management
- Budgeting and financial planning for healthcare organisations
- Healthcare reimbursement systems
- Regulatory compliance
Manufacturing
CPD is focused on cost accounting, inventory management, and production efficiency.
Key Topics:
- Cost accounting and control
- Inventory valuation and management
- Lean accounting and production efficiency
- Capital budgeting for manufacturing projects
- Environmental accounting and sustainability
Non-profit and Government
CPD is focused on fund accounting, grant management, and regulatory compliance.
Key Topics:
- Fund accounting principles
- Grant management and reporting
- Budgeting and financial planning for nonprofits
- Compliance with government regulations (e.g. GAO Yellow Book)
- Financial management of public funds
Many accounting bodies worldwide offer industry-specific CPD to ensure accountants remain competent in their specialised fields. This tailored approach helps accountants stay up to date with the latest regulations, best practices, and technological advancements that are relevant to their industry.
You need to sign in or register before you can add a contribution.