PROFESSIONAL REGULATORY BOARD OF ACCOUNTANCY

Resolution No. ________

Series of 2016

INCREASINGTHEREQUIREDCPDUNITSFROM60TO120CREDITUNITSINA
COMPLIANCEPERIODOFTHREE(3)YEARSFORALLCPAsREGARDLESSOF
AREA/SECTOROFPRACTICEANDCHANGINGTHEMATICAREASTO
COMPETENCEAREASWHICHSHALLBECATEGORIZEDINTOTECHNICAL
COMPETENCE,PROFESSIONALSKILLSANDPROFESSIONALVALUES,ETHICSAND
ATTITUDES

WHEREAS, Section 32 of Republic Act 9298 otherwise known as the Philippine

AccountancyActof2004statesthatallcertifiedpublicaccountantsshallabidebythe
requirements, rules and regulations on continuing professional education to be
promulgated by the Board of Accountancy, subject to the approval of theProfessional
Regulation Commission, in coordination with the accredited national professional
organization of certified public accountants or any duly accredited 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 Accountancy and Accounting Education changed the
term Continuing Professional Education (CPE) to Continuing Professional Development
(CPD) and required 60 credit units of CPD which may be earned by an individual
professionalinanyofthethreeyearsprecedingtheyearofapplicationforaccreditation
forthepracticeofpublicaccountancyandaccountingeducation;

WHEREAS,BoardResolutionNo.3,Seriesof2016entitledRequiringtheSubmissionof
CertificatebyResponsibleCertifiedPublicAccountantsontheCompilationServicesfor
the Preparation of Financial Statements and Notes Thereto states that the CPAs
preparingthefinancialstatements,notestothefinancialstatementsandtheCertificate
of Compilation Services shall first be accredited by the Board of Accountancy after
submitting the necessary application requirements, including compliance with the
Continuing Professional Development (CPD) requirements prescribed in existing rules
andregulations.

WHEREAS,No.34ofInternationalEducationStandardsoftheInternationalFederation
ofAccountants(IFAC)definesCPDasthelearninganddevelopmentthatdevelopsand
maintains professional competence to enable professional accountants to continue to
performtheirrolescompetently.CPDprovidescontinuingdevelopmentofthelearning
outcomes for (a) technical competence, (b) professional skills, and (c) professional
values, ethics, and attitudes which were achieved during Initial Professional
Development;

WHEREAS, the Philippine Institute of Certified 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 and ethical

INCREASINGTHEREQUIREDCPDUNITSFROM60TO120CREDITUNITS
INACOMPLIANCEPERIODOFTHREE(3)YEARSFORALLCPAsREGARDLESSOF
AREA/SECTOROFPRACTICEANDCHANGINGTHEMATICAREASTOCOMPETENCE
AREASWHICHSHALLBECATEGORIZEDINTOTECHNICALCOMPETENCE,PROFESSIONAL
SKILLSANDPROFESSIONALVALUES,ETHICSANDATTITUDES

standards among accountants, the advancement of the science of accounting, and

developmentandimprovementofaccountancyeducation.

WHEREAS, PICPA being a member of the IFAC has an obligation to comply with the
StatementofMembershipObligations(SMO)No.2InternationalEducationStandards
for Professional Accountants (IES) and Other Pronouncements Issued by the
InternationalAccountingEducationStandardsBoard.

WHEREAS, IES 7 states that IFAC member bodies implementing an inputbased

approachshallrequireeachprofessionalaccountantto:(a)Completeatleast120hours
(or equivalent learning units) of relevant professional development activity in each
rolling threeyear period, of which 60 hours (or equivalent learning units) shall be
verifiable; (b) Complete at least 20 hours (or equivalent learning units) of relevant
professional development activity in each year; and (c) Measure learning activities to
meettheaboverequirements.

WHEREAS,aseriesofconsultativemeetingswiththeCPDCommitteesofPICPA,andthe
sectoral organizations (Association of CPAs in Public Practice, National Association of
CPAs in Education, Association of CPAs in Commerce and Industry, and Government
Association of CPAs) were made in order to come up with an effective and more
relevantCPDprogramforthedifferentareas/sectorsofpracticeforCPAs;

WHEREAS, in the said consultative meetings the stakeholders agreed to increase the
required CPD credit units from 60 to 120 over a 3year period for all CPAs in Public
Practice,Education,CommerceandIndustryandGovernment,andtochangethematic
areastocompetenceareasinaccordancewithIES.

WHEREAS,RA9298ImplementingRulesandRegulationsAnnexCitem7providesthat
registered professionals shall be permanently exempted from CPE requirements upon
reachingtheageof65yearsold.

WHEREAS, the Philippines being a member of the Association of Southeast Asian

Nations(ASEAN)andasignatorytotheMutualRecognitionArrangementforAccounting
Services, thereby making it a necessity forprofessionalaccountants to keep and
maintain competitiveness vis a vis their Southeast Asian counterparts, in view of the
ASEANEconomicIntegration.Suchcompetitivenessisachievedthroughthecontinued
acquisitionandupdatingofknowledge,thehoningofskills,andlifelonglearning.

NOW, THEREFORE, the Board hereby RESOLVE, as it now RESOLVES to increase the
requiredCPDcreditunitsfrom60to120unitsinacomplianceperiodofthree(3)years
for all CPAs in Public Practice, Education, Commerce and Industry, Government, and
changingThematicAreastoCompetenceAreaswhichshallbecategorizedintoTechnical
Competence,ProfessionalSkillsandProfessionalValues,EthicsandAttitudes.

INCREASINGTHEREQUIREDCPDUNITSFROM60TO120CREDITUNITS
INACOMPLIANCEPERIODOFTHREE(3)YEARSFORALLCPAsREGARDLESSOF
AREA/SECTOROFPRACTICEANDCHANGINGTHEMATICAREASTOCOMPETENCE
AREASWHICHSHALLBECATEGORIZEDINTOTECHNICALCOMPETENCE,PROFESSIONAL
SKILLSANDPROFESSIONALVALUES,ETHICSANDATTITUDES

Section1.DefinitionofTerms.Thefollowingtermsusedinthisresolutionaredefined
asfollows:

a)ContinuingProfessionalDevelopmentreferstolearninganddevelopment
thattakesplaceafterInitialProfessionalDevelopment,andthatmaintainsand
developsprofessionalcompetencetoenableprofessionalaccountantsto
continuetoperformtheirrolescompetently.ContinuingProfessional
Development(CPD)isaimedatthedevelopmentandmaintenanceof
professionalcompetence.CPDprovidescontinualdevelopmentofthe
professionalknowledge,professionalskills,professionalvalues,ethicsand
attitudes,andthecompetenceachievedduringInitialProfessionalDevelopment.

b.CompetenceAbilitytoperformaworkroletoadefinedstandardwithreference
toworkingenvironments.

c.CompetenceareaAcategoryforwhichasetofrelatedlearningoutcomescanbe
specified.

d.Technicalcompetencetheabilitytoapplyprofessionalknowledgetoperforma
roletoadefinedstandard

e.ProfessionalskillsThevarioustypesofabilitiesrequiredtoapplyprofessional
knowledge,andprofessionalvalues,ethics,andattitudesappropriatelyand
effectivelyinaprofessionalcontext.

f.Professionalvalues,ethics,andattitudesTheprofessionalbehaviorand
characteristicsthatidentifyprofessionalaccountantsasmembersofaprofession.
Theyincludetheprinciplesofconduct(i.e.,ethicalprinciples)generallyassociated
withandconsideredessentialindefiningthedistinctivecharacteristicsof,
professionalbehavior.

g.InputbasedProfessionalDevelopmentActivitiesapproachestomeasure
attainmentofCPDbyestablishinganamountoflearningactivityforprofessional
accountantstodevelopandmaintainprofessionalcompetence.

h.OutputbasedApproachesapproachestomeasureattainmentofCPDby
requiringprofessionalaccountantstodemonstrate,bywayofoutcomes,that
theyhavedevelopedandmaintainedprofessionalcompetence.

i.FlexibleCPDActivitiesCPDlearningactivitiesthatmaybeearnedbyspending
trainingorseminarhoursbeyondwhattheminimumcompetenceareas.

j) SelfDirected Learning learning activities such as trainings, local/international

seminars/nondegree courses, institution/company sponsored training programs,
and the like which did not undergo CPD accreditation but may be applied for and
awardedCPDunitsbytheCPDCouncil.

INCREASINGTHEREQUIREDCPDUNITSFROM60TO120CREDITUNITS
INACOMPLIANCEPERIODOFTHREE(3)YEARSFORALLCPAsREGARDLESSOF
AREA/SECTOROFPRACTICEANDCHANGINGTHEMATICAREASTOCOMPETENCE
AREASWHICHSHALLBECATEGORIZEDINTOTECHNICALCOMPETENCE,PROFESSIONAL
SKILLSANDPROFESSIONALVALUES,ETHICSANDATTITUDES

k) Lifelong Learning all learning activities undertaken throughout life for the
developmentofcompetenciesandqualifications.

Section 2. Thematic Areas of CPD activities shall be changed to Competence Area

ThematicAreasofCPDactivitiesshallbechangedtoCompetenceAreasinordertoalign
with the International Education Standards. It shall be divided into three (3) major
categories as: (a) Technical Competence, (b) Professional Skills, and (c) Professional
Values, Ethics & Attitudes, and further include the following with corresponding
requiredverifiableunitsstarting2017:

COMPETENCEAREA
Minimum
Required
VerifiableUnits
Starting2017
A.TECHNICALCOMPETENCE

1. Standards Applicable to Professional Practice

18
whichincludesbutnotlimitedtothefollowing:

a. Currentandrecentissuanceoftherespective

areaofpracticeoftheprofession,e.g.those

fromthestandardsettingbodieson:

FinancialAccountingandReporting

Assurance&Auditing;

&
Related
practice
statements

interpretations;and

Pronouncements related to Taxation,

depending on area of practice of the

professional

b. IFAC Pronouncements issued through IFAC

memberbodies

2. Laws, Rules & Regulations affecting

6
Professional Practice which includes but not

limitedto:

a. Issuances of government/regulating bodies,

suchas,butnotlimitedto,

Professional Regulation Commission

and Board of Accountancy (which

covers provisions of the Philippine

Accountancy Act & IRR, new

resolutions and regulations issued by

PRC & BOA, and other issuances

pertaining to registration, licensing &

professionalregulatoryregimes)
4

INCREASINGTHEREQUIREDCPDUNITSFROM60TO120CREDITUNITS
INACOMPLIANCEPERIODOFTHREE(3)YEARSFORALLCPAsREGARDLESSOF
AREA/SECTOROFPRACTICEANDCHANGINGTHEMATICAREASTOCOMPETENCE
AREASWHICHSHALLBECATEGORIZEDINTOTECHNICALCOMPETENCE,PROFESSIONAL
SKILLSANDPROFESSIONALVALUES,ETHICSANDATTITUDES

Securities and Exchange Commission,

Bangko Sentral ng Pilipinas, Insurance
Commission, Bureau of Internal
Revenue, Cooperative Development
Authority
Comission on Higher Education and
DepartmentofEducation
Commission on Audit, Department of
Budget and Management Civil Service
Commission, for CPAs in government
sector
b. ASEAN and other international treaties
affectingthepracticeofFilipinoCPAs.
c. Other laws and regulations that govern
differentformsoflegalentities.

3. Environment of the Practice which includes

Frameworks,
models,
best
practices,
benchmarks, information technology advances,
tools & techniques espoused by professional &
otherorganizationsthataffecttheoperations&
managementofclients&businessentitiesofthe
professional.

B. PROFESSIONALSKILLS

1. Professional development activities that

enhance
theCPAsintellectual,interpersonal,
communication,personalandorganizationalskills,
whichincludesbutnotlimitedto:

a. Oral&writtencommunication
b. Presentation,negotiation&facilitationskills
c. Teamworkenhancement
d. Personality&socialgraces
e. Decision making, leadership, management &
supervision
f. Conflict resolution, cultural immersion
programs, language learning programs, time
and resources management, work or process
innovationsandproblemsolvingskills.
g.forCPAsintheEducationSector,teaching
techniquesandothereducationrelated
CPDlearningactivities

INCREASINGTHEREQUIREDCPDUNITSFROM60TO120CREDITUNITS
INACOMPLIANCEPERIODOFTHREE(3)YEARSFORALLCPAsREGARDLESSOF
AREA/SECTOROFPRACTICEANDCHANGINGTHEMATICAREASTOCOMPETENCE
AREASWHICHSHALLBECATEGORIZEDINTOTECHNICALCOMPETENCE,PROFESSIONAL
SKILLSANDPROFESSIONALVALUES,ETHICSANDATTITUDES

C. PROFESSIONALVALUES,ETHICSANDATTITUDES

a. CodeofEthicsforProfessionalAccountants
b. Quality standards based on issuances of bodies
affectingtheprofessionalpractice
c. Governanceprinciplesandintervention
d. Socialresponsibility,principlesandinterventions

Section 3. Required CPD Credit Units in a Compliance Period. All CPAs regardless of
area/sector of practice shall be required to comply with 120 CPD credit units in a
complianceperiodofthree(3)years,whichtheimplementationthereofshallbegradual
inthefollowingperiod:

YearofRenewal

2016
2017

2018

2019

Required number Minimum Units FlexibleCPDUnits Required

MinimumUnits
ofCPDUnits
Under Required
Earnedfromthe
Competency
PreviousYear(s)
Areas
forLicense
Renewal
60
40
20
0
80
40
40
20unitsfrom
immediately
precedingyear.
100
40
60
20unitsearned
fromeachofthe2
immediately
precedingyears.
120
40
80
20unitsearned
fromeachofthe3
immediately
precedingyears.

Section4.ExemptionRegisteredCPAsuponreachingtheageof65shallbeexempted
from CPD, except when applying for BOA Accreditation in which case the CPA shall
complywiththeCPDrequirementsofthepertinentaccreditationbeingappliedfor.

Section5.JointPRCPICPACPDCommittee.TheJointPRCPICPACPDCommittee(Joint
CPDCommitteeorJointCommittee)isherebyorganizedtoassistthePRCCPDCouncil
for Accountancy in implementing the provisions of this Resolution, particularly, in
evaluating applications for selfdirected or lifelong learning CPD activities. The
Chairman of the PRC CPD Council for Accountancy will be the Chairman of the Joint
CommitteeandtheChairofthePICPACPDCommitteewillsitasCoChairoftheJoint
CPDCommittee.PICPAandeachofthesectoralorganizationswilleachnominatenot
more than two (2) representatives to be members of the Joint CPD Committee. The
JointCPDCommitteewilldevelopitstermsofreferencesubjecttoapprovalbythePRC
CPDCouncilforAccountancyandtheBoardofAccountancy.

INCREASINGTHEREQUIREDCPDUNITSFROM60TO120CREDITUNITS
INACOMPLIANCEPERIODOFTHREE(3)YEARSFORALLCPAsREGARDLESSOF
AREA/SECTOROFPRACTICEANDCHANGINGTHEMATICAREASTOCOMPETENCE
AREASWHICHSHALLBECATEGORIZEDINTOTECHNICALCOMPETENCE,PROFESSIONAL
SKILLSANDPROFESSIONALVALUES,ETHICSANDATTITUDES

Section5. Repealing Clause.Anyruleandregulationorresolutionorpart/sthereof

inconsistent with the provisions of this Resolution are hereby repealed or modified
accordingly.

Section 6. Effectivity. This Resolution shall take effect fifteen (15) days after full and
completepublicationinanewspaperofgeneralcirculationortheOfficialGazette.

Copy hereof shall be furnished to the Office of the Secretary to the Professional
Regulatory Boards, Standards and Inspection Division, all Regional Offices and other
involvedunitsoftheCommissionfortheirguidance.

DoneintheCityofManila,Philippines,this_____dayof__________2016.

XXXXXXX

INCREASINGTHEREQUIREDCPDUNITSFROM60TO120CREDITUNITS
INACOMPLIANCEPERIODOFTHREE(3)YEARSFORALLCPAsREGARDLESSOF
AREA/SECTOROFPRACTICEANDCHANGINGTHEMATICAREASTOCOMPETENCE
AREASWHICHSHALLBECATEGORIZEDINTOTECHNICALCOMPETENCE,PROFESSIONAL
SKILLSANDPROFESSIONALVALUES,ETHICSANDATTITUDES

Appendix A: MATRIX OF CPD ACTIVITIES

BASED ON PRC RESO. 774
PROGRAM / ACTIVITY
CREDIT UNITS
1. SEMINARS/WORKSHOPS
1.1 As Participant
1 CU per Hour
1.2 As Resource
Speaker

5 CU per hour

1.3 As Panelist/Reactor

3 CU per hour

Certificate of Attendance w/ No. of Hours

Seminar Program
Photocopy of certificate
Copy of papers
Program Invitation
Certification from sponsoring organization
Copy of Program
Certification from sponsoring organization
Copy of Program

1.4 As
2 CU per hour
Facilitator/Moderator
2. POST GRADUATE/SPECIALTY TRAINING
(relevant period: actively enrolled during the 3 year period of renewal; may still be applied 3 to 5 yrs
after completion)
2.1 Masters Degree
1 CU per Academic Unit
University Certification

2.2 Doctoral Degree

20 CU additional upon
completion of degree
2 CU per Academic Unit

2.3 Bachelor of Laws

30 CU Additional upon
completion of degree
1 CU per Academic Unit

2.3 Residency /
Internship / Specialty /
Sub-specialty Program
2.4 Fellowship

(f) Formal study related to

professional responsibilities

Diploma & Transcript of Records

University Certification
Diploma & Transcript of Records

20 CU Additional upon
passing the Bar exams
10 CU per year

Certificate of Admission to the Philippine

Bar
Certification form Host Institution

15 CU per year

Certificate of Completion
Certification from the granting institution
Certificate of Fellowship
Copy of module & evaluation

3.2 Technical Paper /

Professional Journal
Article
3.3. Accounting, Audit,
Tax and other Businessrelated articles
3.3 Research /
Innovative Programs /
Creative Projects
3.4 Book/Monograph
Author

5 CU per Professional /
Technical Article

Copy of Published Article & evaluation

5 CU per Article
10 CU

Copy of Published Article in a newspaper,

industry journal, or other business
publication
Published Technical Report / Paper

5 to 40 CU*

Published book with proof of authorship

Editor
3.5 Research article
3.6 Professional
Journal Editor
3.7 Peer Reviewer
3.8 Inventions

the CU of Author/s
2 to 8 CU**
5 CU per Issue
2 CU per article
Full credit units for
compliance period

(a) Participation in courses,

conferences, and seminars
(g) Participation as a speaker in
conferences, briefing sessions, or
discussion groups,

Diploma & Transcript of Records

University Certification

30 CU Additional upon
completion of degree

3. SELF-DIRECTED AND/OR LIFELONG LEARNING

3.1 Training Module
10 CU per complete set of
module

BASED ON IES 7

SUPPORTING DOCUMENT

(e) Developing or delivering a

course or CPD session in an area
related to professional
responsibilities
(h) Writing articles, papers, or
books of a technical, professional
or academic nature

Published book with proof of copyright

Proof of publication of research article
Copy of published journal
Copy of published article/book
Certified copy of patent certificate

Nil

INCREASINGTHEREQUIREDCPDUNITSFROM60TO120CREDITUNITS
INACOMPLIANCEPERIODOFTHREE(3)YEARSFORALLCPAsREGARDLESSOF
AREA/SECTOROFPRACTICEANDCHANGINGTHEMATICAREASTOCOMPETENCE
AREASWHICHSHALLBECATEGORIZEDINTOTECHNICALCOMPETENCE,PROFESSIONAL
SKILLSANDPROFESSIONALVALUES,ETHICSANDATTITUDES

Certificate of completion of
training/seminar from the online or webbased course with corresponding CPD
hours earned.

(a) Participation in courses,

conferences, and seminars

Certificate of training
Training description

(f) Formal study related to

professional responsibilities or
(c) On-the-job training

3.9 On-line/web-based
seminar or training
courses
- as participant
- as speaker / facilitator /
discussant
3.10 Short-term postgraduate courses / inservice training / on-thejob training
3.11 Study Tours /
Visits
3.12 Professorial Chair

1 CU per actual hour as

training/seminar participant

2 CU per day (max of 20

CU/tour)
Full credit units for
compliance period

Certification from sponsoring institution

3.13 Professional
Certifications, such as
CMA, CFA, CFE, CIA,
CISA, etc

10 CU per Professional
Certification obtained from
2010 and subsequent years

Copy of Professional Certificate duly

authenticated by certifying organization,
such as IIA, ISACA, CIMA, etc.

3.14 English or Foreign

Language Certifications
Verifiable, Input-based
3.15 Active Committee
Membership in FRSC,
AASC, PIC, CPD
Committee (PICPA &
Sectoral Orgn), CHED
Technical Committee on
Accountancy Education
3.16 Voluntary services
Rendered to the
Profession such as CPD
Monitor, Citizen
Participatory Audit,
Government Bidding
and Procurement
Observers, etc.

10 CU for each Foreign

Language Certification

Copy of Certificate of Completion and

Proficiency

2 CU per meeting attended

up to a maximum of 24 CU
per calendar year

Certification of Attendance and CPD

compliance signed by the Secretary and
duly noted by the Chairman of the
respective Committee

2 CU per hour as CPD

monitor

Certificate of Attendance as CPD monitor

CU for other voluntary

services subject to prior
approval by the Joint CPD
Committee

Subject to prior determination and

approval by the Joint CPD Committee

5 CU per actual hour as

training/seminar speaker,
facilitator, discussant
0.25 CU per hour (max of 30
CU per training)

Certification of grant or appointment paper

Nil
(h) Writing articles, papers, or
books of a technical, professional,
or academic nature
(j) Professional re-examination or
formal testing

Nil
(d) Participation in and work on
technical committees