Globalization has altered the landscape of markets and businesses. In keeping with the times, the Board of Accountancy (BOA) has instituted programs to align the accountancy profession with the demands of the ever-changing environment. These programs include the accreditation of Certified Public Accountants in academe, in commerce and industry, and in public practice; information campaigns to raise awareness about the Asean Mutual Recognition Arrangement and its impact on Philippine accountancy services; the revision of the curriculum in Accountancy education; and the reconfiguration of the country’s CPA licensure examinations. All these efforts aim to improve the competence and capabilities of the individual Filipino CPA and upgrade the accountancy profession as a whole.
Among the initiatives undertaken by the BOA, the most talked about seems to be the increase in Continuing Professional Development (CPD) requirements from 60 units in 2016 to 120 units by 2019 for a three-year period. Republic Act 10912 or the “Continuing Professional Development Act of 2016” requires professions registered with the Professional Regulation Commission (PRC) to comply with prescribed CPD units as a prerequisite to license renewal. However, of all the registered professions, accountancy has the highest number of mandatory CPD units, a requirement almost triple that of professions with the second highest CPD prescription, to wit: interior design (below age 60), real-estate professionals (appraisers, consultants and brokers), with 45 CPD unit requirements.
CPD credits can be earned in various ways. It can be gained through any or a combination of the following: professional track (being a resource speaker, participant or facilitator in face-to-face or online trainings conducted by accredited CPD providers); academic track (earning a postgraduate degree, being a professorial chair or researcher); self-directed trainings (participating in trainings organized by nonaccredited CPD providers, writing articles or technical papers); and by undergoing other activities as approved by the CPD council, BOA and PRC.
The objective for implementing CPD requirements is to “promote and upgrade the practice of professions in the country… [to] continuously improve the competence of professionals in accordance with international standards of practice…” (Section 2 of RA 10912). While the purpose is noble, many CPAs, especially individual practitioners, teachers and ordinary employees, challenge the practicality and reasonableness of the extensive CPD requirements imposed on CPAs. They contend that although the trainings are sometimes useful, they are too tedious and often impractical, costly, redundant and time-consuming. Accessibility for those in the rural areas (logistical and otherwise) is another issue. Despite the availability of alternatives for earning CPD credits, many still do not have the means to avail themselves of these options. There is the problem on the lack of reliable Internet access, the lack of resources to pursue higher learning and the lack time and skill to do research work.
The complaints of unhappy professionals were heeded by a group of lawmakers, prompting them to file the proposed House Bill 7171, which aims to repeal RA 10912 and put a stop to the mandatory CPD requisite on registered professionals. According to the bill’s authors, the CPD requirement imposes undue burden, stress, financial strain and hardships on licensed professionals.
CPD compliance has its merits. In today’s environment, professionals have to be relevant and competent to thrive in a global and integrated playing field. However, regulators must also consider the plight of professionals who have limited resources to comply with these requirements. While learning is a lifelong process, a balance has to be achieved so that all stakeholders will emerge winners in the goal of uplifting the welfare of the general public.
An MBA holder, Angelina Alejandrino is a CPA in public practice and a freelance consultant. She was a former vice president for finance of the Mega Pacific Property Holdings Inc. and Einstee Realty Inc.
This column accepts contributions from accountants, especially articles that are of interest to the accountancy profession, in particular, and to the business community, in general.
These can be e-mailed to boa.secretariat.@gmail.com.