IFAC
Education
Committee / June 2002
Exposure Draft
Response Due Date December 31, 2002
Continuing Professional Education and Development
Proposed International Education Guideline for Professional Accountants
Issued for Comment by the International Federation of Accountants /

This Exposure Draft was approved for publication in May 2002 by the Education Committee of IFAC.

The mission of IFAC is the worldwide development and enhancement of an accountancy profession with harmonized standards, able to provide services of consistently high quality in the public interest.The Education Committee’s mission is to serve the public interest by the worldwide advancement of education and development for professional accountants leading to harmonized standards.

The Education Committee requests comments on this Exposure Draft.Respondents are encouraged to comment on the specific questions attached at the end of this document and any other issues related to this Exposure Draft. Comments sent by email are preferred but they may also be submitted by computer disk or in hard copy.

Comments should be received by 31 December 2002.

Comments received by the due date will be reviewed by the Education Committee and may influence the final Guideline. Comments received before 15 October 2002 will be reviewed by the Education Committee at its November 2002 meeting. Comments received after that date will be reviewed by the Committee in March 2003.Notwithstanding this, comments received after the due date and on an ongoing basis are also welcome.Respondents should note that comments are considered a matter of public record.

Comments on this publication should be sent to:

Technical Director

International Federation of Accountants

535 Fifth Avenue, 26th Floor

New York, NY10017, USA

Fax + 1 212-856 9420

E-mail responses should be sent to:

Information about the International Federation of Accountants can be found at its website, of this publication may be downloaded free of charge from the site.

Copyright © June 2002 by the International Federation of Accountants.All rightsreserved.

contents

page

Preface

International Education Guidelines for Professional Accountants

Purpose of the Guideline

Scope of the Guideline

Background

Definitions

Foreword

Acknowledgements

Availability of CPD

Appropriate subject areas

Minimum level of CPD

Input- and Output-based Systems

Compliance Process and Responses to Non-Compliance

Minimum level of CPD

CONTENTS

PAGE

PREFACE...... 4

INTERNATIONAL EDUCATION GUIDELINES FOR

PROFESSIONAL ACCOUNTANTS...... 4

PURPOSE OF THIS GUIDELINE...... 4

SCOPE OF THIS GUIDELINE...... 4

BACKGROUND...... 5

DEFINITIONS...... 5

FOREWORD...... 10

ACKNOWLEDGEMENTS...... 11

AVAILABILITY OF CPD...... 12

APPROPRIATE SUBJECT AREAS...... 13

MINIMUM LEVEL OF CPD...... 14

INPUT AND OUTPUT–BASED SYSTEMS...... 16

COMPLIANCE PROCESS AND RESPONSES TO NON-COMPLIANCE 18

Preface

International Education Guidelines for Professional Accountants

1.International Education Guidelines for Professional Accountants (IEG) assist in the implementation of generally accepted good practice in the education of professional accountants by providing advice or guidance on how to achieve good practice or current best practice.

2.International Education Guidelines for Professional Accountants may interpret, illustrate, elaborate, or expand on matters related to International Education Standards for Professional Accountants.In this function, the Guidelines assist member bodies to implement and achieve‘goodpractice’ as prescribed in International Education Standards for Professional Accountants.The Guidelines may also recommend practice that is wider or deeper than the practice prescribed in a Standard.Alternatively, they may outline exemplary methods or practices, including those that are recognized as current ‘best practice’, which member bodies may wish to adopt.

Purpose of the Guideline

3.This Guideline is intended to assist member bodies in establishing a requirement for an effective program of continuing professional education and development (hereafter referred to as continuing professional development or CPD) for members, as prescribed in the proposed International Education Standard, “Continuing Professional Education and Development”.

Scope of the Guideline

4.This guideline:

  • addresses the objectives of CPD; the subject areas that should be viewed as consistent with those objectives; and the extent of the CPD commitment appropriate for professional accountants in public practice, industry, commerce, education and the public sector;
  • explains the importance of mandatory CPD for all member bodies on a worldwide basis;
  • explains the necessity of appropriate corrective and disciplinary mechanisms to assure compliance with CPD requirements;
  • assists in the implementation of the proposed International Education Standard, “Continuing Professional Education and Development”.

Background

5.The IFAC Education Committee has for many years issued guidelines and other papers on education issues.Previously, the Committee released IEG 2, “Continuing Professional Education” (February 1982, revised May 1998).The Committee considers that it is now appropriate to issue individual Standards building on this framework, by dealing with each major topic in a separate Standard.In addition, Guidelines will also be developed to support the Standards where necessary, providing advice, guidance and examples to assist member bodies in implementing good practice as prescribed by the Standards.

6.This Guideline supports the proposed International Education Standard, “Continuing Professional Education and Development”, released as an Exposure Draft in July 2002, providing further elaboration and interpretation of the standards.

Definitions

7.Terms marked with an asterisk x (*) indicate terms that are defined elsewhere in this glossary.

Best practice / Refers to practices considered to be exemplary, of the highest order, the most advanced, or leading in a particular area in the education* of professional accountants.
Explanation
“Best practice” refers to the best examples of established practice in the preparation of professional accountants.“Best practice” will often go beyond “good practice” and, as such, is at a higher level than the considered minimum requirements.Statements and examples of “best practice” are essential for the advancement of accounting education and provide useful guidance to member bodies for the continual improvement of their education programs.
Capabilities / Are the professional knowledge, * skills* and professional values* required to demonstrate competence*.
Explanation
Capabilities include content knowledge, technical and functional skills, behavioral skills, intellectual abilities, and professional values and attitudes.
Competence / Is being able to perform a work role to a defined standard, with reference to real working environments.
Explanation
Competence may be assessed by a variety of means, including work place performance, work place simulations, written tests of various types and self-assessment.
Continuing professional development (CPD) / Refers to learning* activities for developing the capabilities* of individuals to perform competently within their professional environments.
Explanation
Continuing professional development is aimed at the post-qualification maintenance or enhancement of professional competence.It involves the development of capabilities through either formal, structured and verifiable learning programs (sometimes referred to as ‘continuing professional education’ – CPE) or informal, unstructured learning activity.
Development / Is the acquisition of capabilities* which contribute to competence.*
Explanation
Development refers to the growth of attributes that contribute to competence, however achieved.Individuals may develop their abilities through a wide range of processes such as learning, including education and training; experience; reflection; observation or receipt of information; other structured andunstructured learning activities; or through natural growth over time.
Education / Refers to a systematic act or process aimed at developing knowledge, skills*, character, or other abilities and attributes within individuals.It includes developmental activities commonly referred to as training*.
Explanation
Education is a formal, structured learning process whereby individuals develop attributes considered desirable by society.Education is usually characterized by the growth of an individual’s mental and practical abilities, as well as maturing in attitude, resulting in an enhanced ability of the individual to function and contribute to society, in either specific or non-specific contexts.While often conducted in academic environments, education also includes formal learning processes in other environments, such as on-the-job and off-the-job training.Education is, by nature, formal and therefore excludes informal, unstructured learning and developmental processes.Valuable learning, training, and development can also take place in less formal environments through processes that are not formal or structured enough to be considered ‘education’.
Ethics / Refers to the professional values* and principles of conduct applying to professional accountants* as well as to students* and trainees* associated with the IFAC member bodies.
Good Practice / Refers to those elements considered essential to the education* and development* of professional accountants* and performed at a standard necessary to the achievement of competence. *
Explanation
“Good practice” relates not only to the range of content and processes of education and development programs, but also to the level or standard at which they are performed (i.e. the depth and quality of the programs).The IFAC Education Committee is conscious of the wide diversity of culture; language; and educational, legal, and social systems in the countries of the member bodies and of the variety of functions performed by accountants.Different factors within these environments may vary the ability of member bodies to adopt some aspects of “good practice”.Nevertheless, member bodies should continuously aspire to “good practice” and achieve it wherever possible.
Information technology / Refers to hardware and software products, information system operations and management processes, and the human resources and skills* required to apply those products and processes to the task of information production and information system development, management and control.
Learning / Refers to a broad range of processes whereby an individual develops capabilities,* including skills* and attitudes in the application of knowledge.
Explanation
Learning can be achieved by formal processes such as education (including training) or informal processes such as day-to-day work experience, reading published material, passive observation, and reflection
Learning Plan / Refers to structured processes that help professional accountants guide their professional development.* Plans include a self-assessment of the gap between current and needed knowledge, skills,* and abilities, a set of learning objectives arising from this assessment, and learning activities to be undertaken to fulfill the learning plan.
Post-qualification / Refers to a broad range of processes whereby an individual develops capabilities,* including skills* and attitudes in the application of knowledge.
Explanation
The term ‘post-qualification’ is usually associated with activities and requirements relating to the professional development of those who have already obtained a professional qualification.It is often associated with action relating to the maintenance or further development of professional competence.
Professional accountant / Refers to those individuals, whether they be in public practice (including a sole practitioner, partnership or corporate body), industry, commerce, the public sector or education, who are members of an IFAC member body.
Professional knowledge / Refers to those topics that make up the subject of accountancy as well as other business disciplines that, together, constitute the essential body of knowledge for professional accountants.*
Professional values / Are the attitudes that identify professional accountants* as members of a profession.They comprise principles of conduct generally associated with, and deemed essential in defining the distinctive characteristics of, professional behavior.
Explanation
Professional values include technical competence, ethical behavior (e.g. independence, objectivity, confidentiality, and integrity), professional demeanor (e.g. due care, timeliness, courteousness, respect, responsibility, and reliability), pursuit of excellence (e.g. commitment to continual improvement and life-long learning), and social responsibility (e.g. awareness and consideration of the public interest).
Skills / Refer to the various types of abilities required to apply knowledge and values appropriately and effectively in a professional context.
Explanation
Professional accountants are required to possess a range of skills, including technical and functional skills, organizational and business management skills, personal skills, interpersonal and communication skills, a variety of intellectual skills, and skills in forming professional judgments.
Specialization / Is the formal recognition by a member body of a group of its members possessing distinctive competence* in a field, or fields, of activity related to the work of the professional accountant.
Structured learning / Is measurable, verifiable activity designed to impart specific knowledge and skills.*
Explanation
Examples of structured learning include courses and presentations; individual study programs that require some completion by the individual; and participation in formal conferences, briefing sessions, or discussion groups.Structured learning is usually, in some respects, not totally within the control of the individual undertaking the learning.For example, a third party may determine the scope or design of the activity, or when or how the learning takes place.
Training / Refers to pre- and post-qualification* developmental activities, within the context of the work place, aimed at bringing a student* or professional accountant* to an agreed level of professional competence.*
Explanation
Training includes work place-based education and experience activities for developing an individual’s competence to perform tasks relevant to the role of the professional accountant.Training may be undertaken while performing actual tasks (on-the-job training) or indirectly through instruction or work-place simulation (off-the-job training).Training is conducted within the context of the work place, with reference to the specific roles or tasks performed by professional accountants.It can include any activity purposefully designed to improve the ability of an individual to fulfill the practical experience requirements for qualification as a professional accountant.

Explanation

“Best practice” refers to the best examples of established practice in the preparation of professional accountants. “Best practice” will often go beyond “good practice” and, as such, is at a higher level than the considered minimum requirements. Statements and examples of “best practice” are essential for the advancement of accounting education and provide useful guidance to member bodies for the continual improvement of their education programs.

Explanation

Capabilities include content knowledge, technical and functional skills, behavioral skills, intellectual abilities, and professional values and attitudes.

Explanation

Competence may be assessed by a variety of means, including work place performance, work place simulations, written tests of various types and self-assessment.

Explanation

Continuing professional development is aimed at the post- qualification maintenance or enhancement of professional competence. It involves the development of capabilities through either formal, structured and verifiable learning programs (sometimes referred to as ‘continuing professional education’ – CPE) or informal, unstructured learning activity.

Explanation

Development refers to the growth of attributes that contribute to competence, however achieved. Individuals may develop their abilities through a wide range of processes such as learning, including education and training; experience; reflection; observation or receipt of information; other structured and unstructured learning activities; or through natural growth over time.

Explanation

Education is a formal, structured learning process whereby individuals develop attributes considered desirable by society. Education is usually characterized by the growth of an individual’s mental and practical abilities, as well as maturing in attitude, resulting in an enhanced ability of the individual to function and contribute to society, in either specific or non-specific contexts. While often conducted in academic environments, education also includes formal learning processes in other environments, such as on-the- job and off-the-job training. Education is, by nature, formal and therefore excludes informal, unstructured learning and developmental processes. Valuable learning, training, and development can also take place in less formal environments through processes that are not formal or structured enough to be considered ‘education’.

Explanation

“Good practice” relates not only to the range of content and processes of education and development programs, but also to the level or standard at which they are performed (i.e. the depth and quality of the programs). The IFAC Education Committee is conscious of the wide diversity of culture; language; and educational, legal, and social systems in the countries of the member bodies and of the variety of functions performed by accountants. Different factors within these environments may vary the ability of member bodies to adopt some aspects of “good practice”. Nevertheless, member bodies should continuously aspire to “good practice” and achieve it wherever possible.

Explanation

Learning can be achieved by formal processes such as education (including training) or informal processes such as day-to-day work experience, reading published material, passive observation, and reflection.

Explanation

Professional values include technical competence, ethical behavior (e.g. independence, objectivity, confidentiality, and integrity), professional demeanor (e.g. due care, timeliness, courteousness, respect, responsibility, and reliability), pursuit of excellence (e.g. commitment to continual improvement and life-long learning), and social responsibility (e.g. awareness and consideration of the public interest).

Explanation

Professional accountants are required to possess a range of skills, including technical and functional skills, organizational and business management skills, personal skills, interpersonal and communication skills, a variety of intellectual skills, and skills in forming professional judgments.

Explanation

Examples of structured learning include courses and presentations; individual study programs that require some completion by the individual; and participation in formal conferences, briefing sessions, or discussion groups. Structured learning is usually, in some respects, not totally within the control of the individual undertaking the learning. For example, a third party may determine the scope or design of the activity, or when or how the learning takes place.

Explanation

Training includes work place-based education and experience activities for developing an individual’s competence to perform tasks relevant to the role of the professional accountant. Training may be undertaken while performing actual tasks (on-the-job training) or indirectly through instruction or work-place simulation (off-the-job training). Training is conducted within the context of the work place, with reference to the specific roles or tasks performed by professional accountants. It can include any activity purposefully designed to improve the ability of an individual to fulfill the practical experience requirements for qualification as a professional accountant.