Financial Planning Body of Knowledge

The Financial Planning Body of Knowledge (FP-BoK) describes knowledge expected of CFP^® professionals and QAFP^TM professionals.

knowledge topics

Explain the factors the Canada Revenue Agency considers when determining whether an individual is self-employed or an employee.¹
Explain that any undertaking for the purposes of business must have a reasonable expectation of profit in order for income earned to be classed as self-employment income and allowable deductions to be permitted against such income.²
Explain the factors the Canada Revenue Agency considers when determining if a business has a reasonable expectation of profit.³
Identify the types of self-employment income.⁴
Explain the tax impact of receiving each type of income.
Estimate the tax impact of receiving each type of income.
Explain the methods of accounting used by businesses.⁵
- Cash
- Accrual

Define

To state exactly the meaning of
Identify

To be aware of / to recognize and correctly name / to locate an appropriate resource
Explain

To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
Compare

To note the similarities and differences between two or more things
Estimate

To determine an approximate value for
Calculate

To find the value using mathematics
Convert

To change from one form or purpose to another
Evaluate

To reach a conclusion or make a judgement through careful study
Interpret

To give the meaning of / to construe or understand / to translate orally

previous / Income Received from Farming and Fishing