In effort to harmonize CPD requirements across Canada, CPA Alberta has approved new CPD exemption criteria, effective January 1, 2022.
If you have been away from the workforce or will be on leave during the 2022 calendar year and plan to claim an exemption from CPD learning activities, review the new exemption criteria to ensure you qualify accordingly.
Remember, if you qualify for an exemption from CPD learning activities, you must still make an annual CPD declaration.
Determine if you are eligible to declare an exemption from the full CPD requirements, by answering the following.
At any time during the reporting period:
1) Did you provide a regulated service(1) to a client?
a. If yes, you have a full CPD requirement.
b. If no, please proceed to question 2.
2) Were you engaged in work, self-employed, or providing services related to technical competencies as a CPA?
a. If yes, proceed to question 3.
b. If no, proceed to question 4. Please note that members who may answer ‘no’ to this question often work in a completely unrelated field to their CPA career (e.g. Attendant at a golf course or greeter at a grocery store).
3) During the calendar year, did your gross active revenues(2) from all types of employment exceed $30,000?
a. If yes, you have a full CPD requirement.
b. If no, proceed to question 4.
4) Were you serving on a Board or similar governing body, or an audit, finance, or similar governance committee of a public company, a reporting issuer, or a large or prominent organization(3)?
a. If yes, you have a full CPD requirement.
b. If no, you are exempt from the full CPD requirements.
Compliance with Rule 203
If you are eligible for an exemption from the full CPD requirements, you must still comply with Rule 203 of the CPA Rules of Professional Conduct with Guidance which states:
A member shall sustain professional competence by keeping informed of, and complying with, developments in professional standards in all functions in which the member provides professional services or is relied upon because of the member’s calling.
That means, even though you may be exempt from the full CPD requirements, you must still ensure that you engage in professional development to ensure professional competence for the functions in which your CPA competencies are being relied on during the year, if any.
Extenuating Circumstances
Outside of this outlined criteria, CPAs who have a valid reason for an exemption from the full CPD requirements may submit a written request to the Registration Committee to consider their circumstances. The Committee will review each individual request and a determination will be made.
To help better understand the new exemption criteria, you can review the new CPD exemption matrix.
If you have any questions on the new CPD exemption criteria, please email cpdreporting@cpaalberta.ca.
(1)Regulated services include the following:
(i) an assurance engagement
(ii) a specified auditing procedures engagement
(iii) a compilation engagement
(iv) accounting services
(v) forensic accounting, financial investigation or financial litigation support services
(vi) advice about or interpretation of taxation matters
(vii) preparation of a tax return or other statutory information filing, if prepared in conjunction with any service referred to in sub clauses (i) to (vi),
(vii) business valuation
(ix) insolvency services.
(2)Gross Active Revenues is defined as the aggregate of accounting and non-accounting revenues from employment, business, professional corporations, and director’s fees. It does not include employment insurance benefits, long-term disability benefits, investment and pension income. Please note that this is different from the definition of Active Earnings as defined for the Member Fee Waiver.
(3)Large or prominent organization is defined as an organization which is of significant public interest due to the nature of their operations, their size or their corporate status, such that they have a wide range of stakeholders. A large or prominent organization may include, but is not limited to, credit institutions, pension funds, charities, foundations, hospitals, health authorities, publicly funded educational institutions, and social service agencies.
