* The statement was issued in January, 2003 and amended from time to time.
1.1 The Institute of Chartered Accountants of India (ICAI), set up under the Chartered Accountants Act, 1949 (the Act), has always aimed for excellence in the standard of professional services rendered by its members. The ICAI is entrusted with the responsibility of regulating the accountancy profession in the country and confers the exclusive right to use the designation “Chartered Accountant”.
1.2 With a view to enabling its members to maintain the requisite professional competence and thus ensure high quality and standards in the professional services that they render, the ICAI has identified Continuing Professional Education (CPE) as a major area of focus for the members. Thus, the ICAI has been providing continued inputs to its members through seminars, lectures, workshops, technical literature, e? learning, web?based training etc. In the year 2003 the ICAI had issued the Statement on Continuing Professional Education prescribing the norms for undergoing CPE activities by the members and the mechanism to implement the same by POUs.
2.1 Definitions:
The following terms are used in this Statement with the meanings specified:
2.2 Continuing Professional Education (CPE): An integral part of member’s continuous learning required to maintain the highest standards of excellence in their professional activities by inculcating wide range of knowledge, skills and abilities.
2.3 Continuing Professional Education Directorate (CPED): A Directorate of the ICAI set up for overseeing the academic, technical and administrative functions of the CPE programmes and includes the Secretariat of the CPEC.
2.4 Continuing Professional Education Committee (CPEC): A non?standing committee of the Council of the ICAI entrusted with the task of setting strategic directions and overseeing CPE activities of POUs, members, etc under the directions of the Council.
2.5 CPE credit hours: The Credit hours granted to a member for participating in any CPE learning activity by way of Structured or Unstructured Learning.
2.6 CPE Programme Organising Unit (POU): POUs are responsible for organising CPE programmes or CPE learning activities and include the Council ; Committee(s) of the Council; Regional Councils; Branches; ICAI Accounting Research Foundation and XBRL India as constituted under and in terms of the relevant notifications of the Council; and shall also include entities such as CPE Study Chapters, CPE Study Circles, CPE Study Groups or any other unit which may be recognized by Council from time to time for conduct of CPE learning activities and grant of CPE hours credit to members.
2.7 CPE Learning Activity: An educational endeavour that maintains and adds value to the professional competence of members and develops the professional knowledge, skills, ethics and attitudes of the members, relevant to their professional responsibilities. Such Learning activities which are eligible for CPE hours credit, are divided into structured and unstructured learning activities.
2.8 CPE Advisory: The directions and other guidelines issued by the Continuing Professional Education Committee from time to time to enable members, programme organisers as well as all other persons connected with Continuing Professional Education (CPE) activities, as defined in the Statement on CPE, to carry out their activities.
2.9 Structured Learning: Any CPE learning activity as specified in the Advisory on Structured CPE Learning Activities.
2.10 Unstructured Learning: Any CPE Learning activity as specified in the Advisory on Unstructured CPE Learning Activities.
Words and expressions used in this Statement and not included in the above list of terms shall have the meanings as assigned in the Chartered Accountants Act, 1949 and Regulations framed thereunder or Notifications/Guidelines issued by the Council of the Institute of Chartered Accountants of India from time to time, as the case may be.
3.1 Authority of this Statement
3.2 The Chartered Accountants Act, 1949 has delegated to the Council of the ICAI the responsibility of discharging various functions as specified in the Act.
3.3 Section 15 of the Chartered Accountant’s Act, 1949 authorises the Council of the ICAI to act as it may deem fit and necessary for the regulation and maintenance of the status and standard of professional qualifications of the members of the Institute.
3.4 CPE is an integral part of the Council activities to ensure meaningful implementation of Section 15 of the Act. Section 15 of the Act provides that “the duties of carrying out the provisions of this Act shall be vested in the Council” and enumerates various duties of the Council. With a view to regulate the profession of Chartered Accountants and in terms of the powers vested, the Council is, thus, authorised to issue this Statement on Continuing Professional Education.
3.5 Compliance with the provisions of this Statement is mandatory for the members of the Institute of Chartered Accountants of India.
3.6 All matters in relation to the implementation of this Statement in letter and spirit are hereby specified to be the responsibility of the Continuing Professional Education Directorate.
3.7 The Directorate may carry out its activities in such manner(s) as it may deem appropriate within the bounds of its authority as prescribed and as directed by the Council and the CPE Committee.
4.1 Power to modify this Statement
4.2 The requirements of CPE hours and/or any other requirement or conditions as included in this Statement may be revised and notified to the members from time to time at the discretion of the Council. The requirement of CPE hours as prescribed by the Council are given in Appendix B to this Statement.
5.0 Effective date
5.1 This statement becomes effective from 1st January 20111. The revisions as mentioned in the respective Clauses will be effective from 1st January 2017.
6.0 Applicability and the CPE Credit Hours Requirements
6.1 The requirement of CPE credit hours by members are divided in various categories and need to be met as prescribed [refer to Appendix B].
6.2 All members of the Institute are required to meet the CPE credit hours requirement(s) as specified by the Council from time to time subject to following exemption.
(a) A member is exempted only for the particular calendar year during which he gets his membership for the first time.
(b) The following class of members are exempted from CPE credit hours requirement from the block year starting from 1.1.2014 to 31.12.2016
i. All the members (aged 60 years and above) who are not holding Certificate of Practice.
ii. Judges of Supreme Court, High Court, District Courts and Tribunal
iii. Members of Parliament/MLAs/MLCs
iv. Governors of States
v. Centre and State Civil Services
vi. Entrepreneurs (owners of Business (manufacturing) organizations other than professional services)
vii. Judicial officers
viii. Female members for one Calendar year on the grounds of pregnancy.
ix. Physically disabled members on case to case basis having permanent disability of not less than 40% and above (Supported with medical certificates from any doctor registered with Indian Medical Council with relevant specialisation as evidenced by Post Qualifications (M.D., M.S. etc.).
x. Members suffering from prolonged critical diseases/illnesses or other disability as may be specified or approved by the CPEC. (Supported with medical certificates from any doctor registered with Indian Medical Council with relevant specialisation as evidenced by Post Qualifications (M.D., M.S. etc.). As per revised CPE Statement w.e.f 01-01-2017.
(c) A member or class of members to whom the CPEC may in their absolute discretion grant full/partial exemption specifically or generally on account of facts and circumstances of the case which in their opinion prevent such person(s) from compliance with the requirements of CPE as specified in the Statement.
7.1 Eligible CPE Credit hours for members
7.2 The CPE Credit hours are granted equal to the actual time devoted and/or deemed to be devoted by the members in undertaking CPE learning activities (subject to a minimum of two hours under structured learning and one hour under unstructured learning ).
7.3 An indicative list of eligible structured and unstructured learning activities is given in the CPE Advisory on Structured Learning Activities and CPE Advisory on Unstructured Learning Activities, respectively.
8.1 Action against non-complying members
8.2 Penal action, as decided by the Council from time to time, may be taken against the members who fail to comply with the requirements of this Statement. However any such penal action will be announced in advance for information of the members who are covered under the provisions of the Statement
8.3 The Council may, however, take any other action in accordance with the provisions of the Chartered Accountants Act 1949 and The Chartered Accountants Regulations, 1988 and modifications made thereunder from time to time
9.1 Maintenance of records
9.2 Every POU shall prepare a detailed record of attendance of members at every programme and shall take prescribed steps to upload the master database which shall be maintained by the CPED.
9.3 Every member is required to maintain a record of compliance with the requirements of CPE credit on an annual basis. Such records shall be subject to verification in the manner as may be prescribed by the CPEC from time to time and the member may be required to produce such records before the Institute.
9.4 Members obliged to undertake CPE credit are required to confirm annually at the time of paying their annual membership fees about the correctness of CPE credit earned by them as shown in the entry on record. In case members claim that CPE credit earned by them as shown in the entry on record is not correct, they may have to submit documents in support of their claim, to the Institute.
10.1 Powers and Functions of the CPEC
The powers and functions of CPEC include the following:
10.2 To design and promulgate annually `The CPE Calendar’ prescribing the topics for the CPE learning activities to all POUs for that particular calendar year.
10.3 To prescribe the eligibility of structured and unstructured learning activities for CPE credit hours and to make appropriate modifications in the indicative list of eligible structured and unstructured learning activities as given in the CPE Advisory on Structured CPE Learning Activities and Unstructured CPE Learning Activities respectively.
10.4 To approve the grant of CPE credit hours to eligible programmes and such other learning activities as may be decided upon by the Committee.
10.5 To approve the formation of CPE Chapters/ CPE Study Groups
10.6 To provide guidance to the CPE Study Circles in the formation of Study Circles or any other administrative problem.
10.7 To review and monitor the programmes conducted by various POUs [refer para 13 of this statement]
10.8 To allocate and assign responsibilities to various persons and/ or organisations, as the case may be, for the development of CPE background material.
10.9 To refer to the Council, the cases of non?compliance with the Statement.
10.10 To undertake such activities as in its opinion, are conducive to the development of learning programmes, enhancement of quality and frequency of learning activities, increasing the opportunities for members to avail of CPE learning programmes, and such other actions which may be considered relevant or supportive to any or all of these.
10.11 To frame guidelines to enable the smooth execution of the CPE objectives and to modify such guidelines from time to time
10.12 To frame the guidelines to relax the requirements of applicability of the Statement, generally or with reference to specific cases to avoid hardships.
10.13 To grant exemptions to members in terms of the Statement.
10.14 To take such other steps to carry out the mission and objective of the CPE Committee and such other tasks as may be delegated to the Committee. (refer Appendix A)
10.15 To take action against CPE Study Circles / CPE Chapters/ CPE Study Groups who in the opinion of the CPEC do not facilitate in achieving the objectives of this Statement. Such action may include suspension of the status of POU.
10.16 To recommend to the Council to take action against POUs, other than those as mentioned in paragraph 10.14 above, who in the opinion of the CPEC do not facilitate in achieving the objectives of this Statement. Such action may include derecognition of POU.
10.17 To recommend to the Council any modification in the Statement
10.18 To issue Directions, Advisories and other guidelines from time to time to enable programme designers and organisers as well as all other persons connected with CPE activities at various POU levels, to discharge their responsibilities and, thus, achieve the objectives of this Statement.
10.19 To issue new Advisories and also amend the existing advisories. The list of existing advisories is as follows:
i. Structured CPE Learning Activities
ii. Unstructured CPE Learning Activities
iii. Programme Development
iv. Use of Learning Technologies
v. Monitors and Supervisors
vi. CPE Documentation
vii. Management of Programme Costs
viii. Development of Background Material
ix. CPE support to Members in Mofussil Areas and remote places.
11.1 Role of the CPE Directorate
11.2 To assist the CPEC in discharging its responsibilities.
11.3 To create, assist in the development of, administer and monitor such mechanisms as may be required for the purposes of Continuing Professional Education for members in terms of this Statement and as may be entrusted to it by the CPEC from time to time.
12.1 Functions of the POUs
12.2 To organise CPE Structured Learning Activities on the topics as prescribed in the CPE Calendar.
12.3 To seek prior approval from CPEC for holding the programmes on topics which are not covered under the CPE Calendar
12.4 To upload the details of the programme to be organised by them on the CPE Portal in advance at least 3 days prior to holding the programme for grant of approval of CPE hours.
12.5 To maintain records of the programmes organised by them, in the manner as stipulated by CPEC from time to time.
12.6 POUs shall upload the attendance on the CPE Portal within 72 hours of organising the programme.
12.7 To follow the directions, guidelines and Advisories issued by the Council and by the CPEC from time to time.
13.1 Review and Monitoring of POUs
13.2 The CPEC shall review and monitor the programmes conducted by various POUs. It shall review and examine the quality of the programmes and attainment of learning objectives by selecting POUs through random selection as decided by the CPEC.
13.3 In order to conduct such reviews, the CPEC shall set up a mechanism and also issue such guidelines as may be necessary, in its opinion which inter alia includes monitoring through CPE Regional Monitoring Committees (RMCs) constituted by CPE Committee from time to time.