The changes to the revised PE Framework aim at aligning the practical experience process with international standards and the best practices of leading accountancy bodies and, in particular, refining the process to realise the following key benefits:
The revised PE Framework was launched in December 2022. The key changes to the revised PE Framework are summarized as follows:
Practical experience requirements are a combination of time (input based) and competences (output based). "Input based" refers to the time input requirements whereas "output based" refers to the competence requirements achieved.
Under the revised Practical Experience Framework, the practical experience gained through the apprenticeship / internship programme offered by the AE/ AS can be recognized when the AE / AS has obtained prior approval from the Institute.
Please click here for the detailed application requirement.
Relevant practical experience must be attained within 10 years prior to the date of HKICPA membership application under the revised PE framework (i.e. 10-year Recency Rule).
However, the practical experience attained by transitioning students (Candidates who have registered as QP student and started accumulating experience before 1 January 2023) can be recognized for HKICPA membership application by either fulfilling the 10-year rule defined in the legacy PE Framework or fulfilling the 10-year Recency Rule under the revised PE Framework during the three-year transitional period (i.e. until 31 December 2025).
Assuming the transitioning students gained relevant practical experience under the supervision of AE/AS, could the practical experience be recognized in each of the following scenarios?
Scenario
QP student registration date
Membership application date
Period of PE attained
Fulfill the validity period requirement and PE could be recognized?
Student A
1 Jan 2012
31 Dec 2024
1 Jan 2019 –
31 Dec 2021
Yes1
Student B
31 Dec 2026
1 Jan 2012 –
31 Dec 2014
No2
1: QP Student A attained the practical experience during 1 January 2019 to 31 December 2021 is able to fulfill either the 10-year rule defined in the legacy PE Framework or the 10-year Recency Rule under the revised PE Framework.
2: QP Student B apply for HKICPA membership after the transitioning period (i.e. 31/12/2025), his/her practical experience attained during 1 January 2012 to 31 December 2014 does not fulfill the 10-year Recency Rule under the revised PE Framework.
The Institute will adopt a risk-based approach to conduct authorization and re-authorization visits with the new AE/ AS applicants and those AE/AS who undergo renewal process respectively. For annual monitoring, visits will also be conducted based on a risk basis. Additional visits may be carried out if, inter alia, the following circumstances exist:
An individual can only apply for either the role of a Counselor of an AE or the role of an AS within the same employing organization.
If your organization is (or is eligible to become) an AE, you should discuss with the organization to consider nominating you to be its Counselor under the revised PE Framework.
The AS should inform the Institute by applying for AS deregistration via the Practical Experience Online System.
Please note that each application for registration as an AS is supported by his/ her employing organization. If the AS has left his/ her employing organization, the AS registration will be terminated with immediate effect.
Under the revised Practical Experience Framework, the practical experience can only be recognized from the commencement date of the Practical Experience Period when an individual is successfully registered as a QP student and under the AE/ AS's supervision and training.
That individual’s prior practical experience may be considered by the Institute on an individual merit basis provided that the AE/ AS is able to provide a confirmation together with supporting documents (if any) for demonstrating the fulfilment of the below criteria:
(A) Status of the QP student
i. The individual is currently under the employment and supervision of the AE/ AS under the same employment contract (exclusive of apprentices and interns). ii. The individual has informed the AE/ AS about his/ her intention of the QP registration prior to his/ her successful registration. iii. The individual understands the roles and responsibilities of QP students to meet the practical experience requirements.
(B) Training and supervision provided by the AE/ AS during the period prior to the successful QP student registration i. Relevant training are in place to ensure the individual is equipped with necessary skillsets to perform the work assigned. ii. The nature of the practical working experience attained by the individual falls within the Technical and Enabling Competences with appropriate level of proficiency. iii. The time spent on work which can be counted towards the practical experience requirements are reviewed by their respective AE/ AS on an annual basis. iv. The AE/ AS comply with all other requirements as stipulated in the revised PE Framework, such as assignment of Counselor, signing of Development Commitment an Training Records, etc.
Upon approval, the individual can recognize relevant prior practical experience for up to 12 months from his/ her QP student's registration date but not earlier than the date of employment under the AE/ AS. In addition, the QP student should sign the Development Commitment with the AE/ AS within three months upon approval.
Point to note: The Institute will only consider the case when the AE/ AS submit the relevant Information Update to the Institute within one month of the QP student registration and fulfil the above criteria.
A QP student should record the practical experience progress including the number of Working Days, Technical and Enabling Competences acquired and self-reflective feedback through the online Training Records.
You may have yet created the Development Commitment via the online system and submitted it for the AE/ AS’s approval. Once approved, you will be able to create online Training Records.
Click here to show you how to create Development Commitment.
For other key steps of the practical experience process, please click this link Overview for QP students – Record for practical experience for details.
