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Goals of CDP Program
- Allow individuals to demonstrate their knowledge of depreciation.
- Provide an opportunity for members to be recognized as having met the requirements established by SDP.
- Elevate the practice of depreciation by establishing minimum standards.
- Keep members current and participating in the field.
Requirements for CDP Status
- Active membership in the SDP.
- At least 5 years of full time professional depreciation experience, at least 2 years of which must be in the area of depreciation administration. Three years experience may be in related fields such as engineering, finance, planning, regulation, regulatory consulting Depreciation administration comprises any of the following activities: involvement or responsibility for the preparation of depreciation studies, the review of depreciation studies, development of depreciation analysis software systems, and instruction in depreciation analysis and procedures.
- College degree or its equivalent. Each year of practical depreciation experience equals 1 year of college equivalency. The Certification Committee recognizes career development and nonacademic equivalency, e.g., courses, seminars, teaching, administrative/supervisory positions, membership in professional organizations. Documentation of all academic and nonacademic experience is mandatory and must be on file at the SDP office (e.g., copy of diploma, current letter from college, transcript).
- An application form (PDF or Word Format) and an application fee of $100 must be received by SDP 20 days prior to the exam date. If a candidate is unable to attend the scheduled exam, they must notify SDP 5 days prior to the exam date or a cancellation fee of $50 may be assessed.
CDP Exam Details
- A proctored, closed-book exam is given at each SDP Annual Meeting.
- The exam has two parts -- the Ethics part and the Technical part.
- The Ethics part of the exam includes questions about the SDP Code of Ethics and the SDP Standards of Professional Conduct.
- The Technical part of the exam includes questions in the following areas:
- Plant and Reserve Accounting
- Life Analysis Concepts
- Life Analysis Using Actuarial Models
- Life Analysis Using Simulation Models
- Salvage and Cost of Retiring Analysis
- Technology Forecasting
- Depreciation Calculations
- To pass the exam, a minimum score of 70% is required on the Ethics part of the exam. Additionally, a score of 70% is required on the Technical part of the exam OR on the Ethics and Technical parts combined.
- Payment of the $100 fee entitles the applicant to take the exam twice if necessary; there is no waiting period before taking the test a second time.
- An applicant who has twice unsuccessfully taken the exam must wait a minimum of 1 year before retaking the exam.
Recommended Study Material
- American Gas Association (AGA) and Edison Electric Institute (EEI), An Introduction to Depreciation and Net Salvage of Public Utility Plant and Plant of Other Industries, 2003, AGA (202) 824-7000, EEI (202) 508-5000.
- Marston, Winfrey, and Hempstead, Engineering Valuation and Depreciation, Iowa State University Press, 1953, (515) 292-0155.
- National Association of Regulatory Utility Commissioners (NARUC), Public Utility Depreciation Practices, NARUC, 1996, (202) 898-2200.
- Porter, Roper, Mason, Rossini, and Banks, Forecasting and Management of Technology, John Wiley and Sons, NY, 1991.
- Vanston, John, Technology Forecasting: An Aid to Effective Technology Management, Technology Futures, Austin, TX, 1988, (800) 832-3887.
- Winfrey, Robley, Bulletin 125: Statistical Analyses of Industrial Property Retirements, 1935 as revised 1967, Iowa State University Engineering Publications and Communications Services, (515) 294-8787.
- Winfrey, Robley, Bulletin 155: Depreciation of Group Properties, Iowa State University Engineering Publications and Communications Services, (515) 294-8787.
- Wolf and Fitch, Depreciation Systems, Iowa State University Press, 1992, (515) 292-0155.
- Wolf, Fitch, and Bissinger, Estimation of Depreciation, Iowa State University Press, (515) 292-0155.
Mandatory Recertification
- To assure that competent, relevant, and current depreciation counsel be available to the public, the SDP requires Certified Depreciation Professionals to recertify every 5 years. This recertification program emphasizes professional participation in the SDP, the publishing of scholarly papers, and continuing education.
- Recertification maintenance criteria
- Recertification application (PDF or Word Format)
Other
- The CDP program was developed largely by Jerry Weinert under the stewardship of SDP President Susan Jensen. Details about the original program may be found in the Certification Committee Report in the 1993 Journal of the Society of Depreciation Professionals
- The first CDP examination was given to 25 members at the 1996 SDP Annual Meeting. Over 40 SDP members have attained CDP status.
