3 Differences in CPD Requirements Worldwide

This is the second of a series of three blogs about CPD requirements worldwide. This one focuses on the differences, the first blog on the similarities is here! The third blog, on specific professional bodies, is here!

Continuing Professional Development (CPD) requirements for accountants vary across different countries and professional bodies. The International Federation of Accountants (IFAC) does however provide guidance and standards for CPD through its International Education Standard (IES) 7. The standard states that CPD is mandatory for all professional accountants to maintain and develop professional competence as a way of ensuring that they provide ongoing high-quality services to their stakeholders. IFAC stipulates that professional bodies need to provide access to effective CPD that is relevant, measurable, sustained, and documented.

While professional bodies are required to offer CPD that adheres to IFAC’s guidelines, there are some differences in the approaches that the professional bodies take with their CPD requirements.

Annual CPD Hour Requirements

Professional bodies around the world have varying requirements for the minimum number of CPD hours their members need to complete each year. For example:

So while most professional bodies require their members to complete a minimum of 20 hours CPD per year, the number of hours does vary as do the dates of the CPD year and how much CPD needs to be verifiable.

Types of Qualifying CPD Activity

The types of activities that qualify for CPD and the flexibility in meeting these requirements can differ widely. For example:

Monitoring and enforcement of Continuing Professional Development (CPD) activity for accountants differ globally due to variations in regulatory frameworks, professional standards, and cultural approaches to compliance. However, members are typically required to maintain records and compliance is monitored through periodic audits.

CPD Content and Topics

Different countries emphasize different aspects of professional development based on local requirements and professional needs. Some accounting bodies focus predominantly on technical accounting knowledge (e.g., changes in accounting standards, tax regulations) while others also emphasize the importance of developing the soft skills required to be a well-rounded accountant (e.g., leadership, communication, and project management).

In the US, there is an emphasis on technical skills and ethical standards whereas the professional bodies in the UK take a more holistic approach that focuses on maintaining and enhancing professional competence by encouraging members to develop both technical and non-technical skills. In Hong Kong, there is a strong emphasis on providing CPD that is internationally relevant such as content on international standards, whereas in South Africa there is a requirement for acquiring technical knowledge while focusing on local economic and social issues.

There are also different industry-specific offerings from CPD providers so that accountants can learn about the unique accounting and financial challenges of different sectors. For example:

Financial Services

CPD is focused on regulatory compliance, risk management, and specialised financial instruments.

Key Topics:

Healthcare

CPD is focused on healthcare finance, regulatory requirements, and cost management.

Key Topics:

Manufacturing

CPD is focused on cost accounting, inventory management, and production efficiency.

Key Topics:

Non-profit and Government

CPD is focused on fund accounting, grant management, and regulatory compliance.

Key Topics:

Many accounting bodies worldwide offer industry-specific CPD to ensure accountants remain competent in their specialised fields. This tailored approach helps accountants stay up to date with the latest regulations, best practices, and technological advancements that are relevant to their industry.