“Change is coming” is a theme the Duterte administration is currently pursuing. It seems the Board of Accountancy (BOA) is pursuing the same direction with the adoption of several improvements and developments in the accounting profession via its own “Expanding Horizons” initiatives.
Some of the changes instituted by the BOA to date are the alignment of the Accountancy Curriculum to the K to 12 Program; the launching of the accreditation of CPAs in commerce and industry; the monitoring of universities and colleges to ensure that only accredited CPAs are allowed to teach accounting subjects; the changes in the subjects and the content of the CPA board examination; and the preparation for the Asean integration. All of these strategic moves are geared toward a more capable and competitive Filipino CPA not only in the Philippines, but also globally.
A recent initiative of the BOA is the gradual increase of the Continuing Professional Development (CPD) three-year unit requirements from 60 to 120 units starting in 2017. For a three-year period, it has been announced that the required CPD units will increase by 20 units annually over the three-year period until 2019.
The purpose of CPD is to ensure that the CPAs and all other professions regulated by the Professional Regulation Commission (PRC) are inculcated with skills, knowledge, ethical values and a lifelong learning. The increase in CPD requirements for the CPAs is necessary due to major changes in the field of finance and accounting, including compliance with regulatory bodies, financial framework and even technological progression.
On top of the increase in the CPD unit requirements, additional changes and improvements include:
- Change of the five thematic to three competence areas to align with international standards. The new areas are technical competence, professional skills and professional values, ethics and attitudes.
- Further expansion of the technical competence to three areas, which are standards applicable to practice, laws, rules and regulations affecting professional practice and environment of
the practice. - Encouragement of self-directed learning that may include attending short-term postgraduate programs and writing of books, articles and papers related to accounting profession are convertible to CPD.
- Establishment of the nonverifiable CPD, which are professional learning other than those covered by PRC Resolution 774, such as mentorship and research.
- Implementation of the monitor system for classroom-type CPD courses, workshops
and conventions. - Mandatory requirement for a CPA to comply with CPD requirements during license renewal.
These initiatives are consistent with the objectives of the recently enacted Republic Act 10912 mandating and strengthening the CPD for all regulated professionals and the PRC Resolution 2016-990.
But there are challenges in these CPD initiatives. The CPAs, especially the small- and medium-size practitioners, are concerned with the additional costs associated with the increased CPD units requirements. To address these concerns, the BOA is continuously coordinating and communicating with CPAs in the four sectors of the accounting profession—public practice, commerce and industry, education or academe, and government practice, to come up with a program that is beneficial to all the parties.
The BOA is also encouraging agencies or organizations to apply for accreditation as CPD providers, so that it will be much easier for CPAs to attend seminars and trainings, especially from the rural areas with the increased number of providers. The Philippine Institute of Certified Public Accountants (Picpa), the national organization for CPAs, is a leading provider of seminars and trainings with an array of different topics for the various competence areas. Online or Web-based training can also be institutionalized, so that learning can be more accessible to CPAs through the aid of technology. CPAs can also earn CPD units by being a resource speaker in conferences, seminars and trainings.
Change is inevitable. The CPAs must remain relevant, innovative and competitive. Otherwise, we will be left behind by foreign competition and the global and Asean transformation.
With the guidance and assistance of the BOA and Picpa, let’s turn these threats to opportunities. Let us continuously learn and convert our weaknesses to strengths.
Jeffrey Galang Salazar is a Certified Public Accountant (CPA) and a Master in Business Administration degree holder. He is currently connected with Tong Hsing Electronics Phils. Inc. and Pamantasan
ng Cabuyao.
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
1 comment
Sir, what is the specific BOA memo or regulation itemizing this requirements?