• IFAC requires its member bodies to implement CPD mechanisms as a component of continued membership for professional accountants. The International Educational Standard for Professional Accountants (IES-7), effective from January 01, 2006, guides the implementation of CPD. It ensures that professional accountants continue to develop and maintain competencies relevant to their fields.
• Continuing professional development refers to learning activities that develop and maintain capabilities to enable professional accountants to perform competently within their professional environments.
• It is to be appreciated that the knowledge needed to function effectively as a professional accountant in public practice, industry, commerce, education and the public sector continues to expand and change at a rapid rate with the changes in regulatory environment, international standards and technology.
• CPD, on its own, does not provide assurance that all members will provide high quality professional service all the time. Doing so involves more than maintaining professional competence; it involves applying knowledge with professional judgment and an objective attitude. Also, there cannot be assurance that every person who participates in a CPD programme will obtain the full benefits of that programme, because of variances in individual commitment and capacity to learn. Nevertheless, it is certain that members who are not up-to-date on current technical and general knowledge pertinent to their work will not be able to provide professional services competently. Therefore, despite the inherent limitations of any CPD programme, a CPD requirement is important in preserving the standard of the profession and also in maintaining public confidence
• It is the responsibility of the individual member to develop and maintain professional competence necessary to provide high quality services to clients, employers and other stakeholders. Members are free to choose from the opportunities both locally and internationally available, as approved by the CPD Committee, to fulfill their relevant CPD needs.
• This Directive prescribes that members:
  • foster a commitment to lifelong learning
  • establish benchmarks for developing and maintaining the professional competence necessary to protect the public interest; and
  • monitor and enforce the continuing development and maintenance of professional competence

This CPD directive is effective from February 10, 2011.

• The IES-7 suggests three CPD approaches:
  • 1. Input-based: Requiring a set amount of learning activity for competence development.
  • 2. Output-based: Demonstrating professional competence through outcomes.
  • 3. Combination: Efficiently combining elements of input and output-based approaches.

The CPD Committee of the Institute oversees and coordinates CPD activities for members in Pakistan and abroad. Branch Councils assist in executing CPD activities.

The National Council in its 380th meeting held on 13th June, 2019 has decided to bring CPD policy of the Institute in line with International Accounting Education Standards Board's (IAESB) revised International Education Standards (IES) 7 - Continuing Professional Development. Members of the Institute will be required to complete at least 120 hours (or equivalent learning units) of relevant CPD in each rolling three-year period, of which 60 hours (or equivalent learning units) would be verifiable; and at least a minimum of 20 hours (or equivalent learning units) of relevant professional development activity in each year. The policy will be effective from 1st July, 2019.

• This directive does not apply to the members who fall in following categories.
  • ill or incapacitated so that he/she cannot perform normal work.
  • retired from whole time business.
  • career breaks.

The measurement of learning activities prescribed should be verifiable by documentary support duly concurred by the CPD Committee.

For all members, non-compliance of this Directive will be reviewed by the CPD Committee and if deemed appropriate the matter may be referred to the National Council.

CPD records are to be maintained by the CPD Section of the Institute as follows:

• Where CPD activities are organized by the Institute / Branch Councils
  • The Branch Councils will maintain a register of attendance at Institute organized activities
  • Within two weeks of holding the activity, the register details will be sent to the CPD Section
• • Where a member participates in other CPD credit programmes
  • The member will maintain evidence of the CPD activity e.g. attendance confirmation / copy of article published.
  • On an annual basis the member will complete a CPD declaration form (annexure) summarizing the details of the CPD activities and necessary supporting documents in which they participated based on the credit hours measurement prescribed in para 13
  • The declaration should be sent to the attention of the CPD Section, Head Office, which in time would present such deceleration to the CPD Committee.
  • The above declaration along with supporting evidence must be received by the CPD Section annually by December 31
  • The Branch Councils will summarize the declarations and send a summary to the CPD Section on a monthly basis for updating of records
  • The CPD Section of the Institute will be responsible for maintaining record in respect of members participating in CPD activities and uploading latest CPD data on the website for member's to review.