International Relations and Activities

Representatives From Over 30 Countries Discuss Public Financial Management for Economic Prosperity in Asia at CAPA and World Bank Forum

Senior representatives from governments, Supreme Audit Institutions, and professional accountancy organizations representing various country and jurisdiction in Asia gathered to attend the 2nd Financial Reform Development in Asia Public Sector Forum in Aloft Kuala Lumpur Sentral from May 17 to 18, 2016. The delegates discussed how improved public financial management can promote better public services, accountability and transparency to support poverty reduction and economic growth.

BoA Chairman Joel Tan-Torres, who attended the forum, said, “In this forum, there were several speakers from the WB, ADB, IFAC, JICA, IASFB, and other institutions who discussed the developments and important of sound Public Financial Management (PFM) in governments. There were also discussions on effective Citizens or Stakeholders engagements and efficient Revenue Mobilization. Governance in government is also a recurring issue in most countries.”
.
“I was able to add to our network of key accountancy and developmental partners and take away a number of lessons that will be of value for our profession moving forward,” said Chairman Tan-Torres.

This forum was organized by the Confederation of Asian and Pacific Accountants (CAPA) and the World Banki. Thought leaders and development partners from 33 Asian jurisdictions, including larger economies such as China, India, and Japan, and smaller ones such as Afghanistan, Bhutan, and Cambodia. The two-day landmark forum was a joint initiative of CAPA and the World Bank, and strongly supported by the International Federation of Accountants.

“The increasing economic significance of Asia, together with ASEAN’s economic integration, is a potential game-changer for many of the region’s nations. However, success will depend on wide and deep acceptance of the principles of effective, accountable, and transparent governance. This is especially true of Asia’s public sector institutions, which must set the right policy directions and deliver high quality sustainable services if they are to maximize opportunities for their citizens in the global economy,” said CAPA Chief Executive, Brian Blood.

In her message to the Forum on emerging trends in Asia, World Bank Governance Senior Director Deborah Wetzel said, “the scope of challenges we face across the world today makes our focus on improved and strengthened governance a critically important area—in the form of (i) open, effective and accountable institutions that promote inclusive development, respond to citizens, and promote citizen engagement; (ii) efficient revenue mobilization that allows governments to be more inclusive and comprehensive in service delivery and poverty reduction; and (iii) effective public institutions that are critical in underpinning sustainable growth.”

“Achieving sustainable economic growth requires the coordination of public and private sector leaders who are dedicated to sound decision making based on high-quality information, accountability, and transparency,” said Fayez Choudhury, Chief Executive Officer of IFAC. “The accountancy profession plays a critical role in ensuring that sound financial management practices—in both the public and the private sectors—lead to economic development both globally and in Asia, as the region looks to emerge from recent financial pressures. FRED II advances an important discussion about the effectiveness of public financial management in building and sustaining economies.”

Two key papers were highlighted at the forum:
Attracting and Retaining Finance Personnel in the Public Sector—a solutions-oriented approach developed by CAPA to help jurisdictions embrace the challenge of identifying, attracting, and retaining professional accountants and other key financial personnel to the public sector.

Unravelling the Secrets of Successful Public Financial Management Reforms: Is There a Role for Professional Accountancy Organizations?—a forthcoming knowledge product of the World Bank, this retrospective study analyzes country cases of successful PFM reforms across two regions of the Bank: South Asia Region and East Asia and the Pacific. Themes from the study shared at the Forum focused on identified opportunities for the public sector to partner with the private sector specifically including professional accountancy organizations (PAOs) to influence policy, build PFM skills and capacity, and provide sustainability to PFM reforms and their outcomes. The full paper will be launched later this year.

FRED II examined a range of themes related to the 2000 UN-backed Millennium Summit and the 2015 Sustainable Development Goals, focusing on the importance of effective, accountable, and transparent institutions in the developed and developing worlds. Discussions included:

Public-private partnerships and collaboration with the private sector;

Practical challenges in implementing accrual-based International Public Sector Accounting Standards;
How improved public financial management contributes to strengthening the public sector;
Attracting the next generation financial management professionals, especially for the public sector;
The role of the accountancy profession and the need for robust public audit; and
Rapidly aging demographics that have impacted growth and increased fiscal pressure in countries throughout the region.

About FRED
A joint initiative of the Confederation of Asian and Pacific Accountants (CAPA) and the World Bank, FRED—the Financial Reform for Economic Development Forum in Asia—was established in 2014. FRED I, held in Sri Lanka, explored the role of key participants in the financial reporting supply chain. FRED II, in Kuala Lumpur, will focus primarily on the role of the public sector, and the need for stronger public financial management to help the region’s nations grow.

About CAPA
The Confederation of Asian and Pacific Accountants (CAPA)’s mission is to develop, coordinate and advance the accountancy profession in the region. It is recognized by the global accountancy profession, represe
nted by the International Federation of Accountants (IFAC), as a regional organization representing national professional accountancy organizations (PAOs) in Asia Pacific.

rep rep1 rep2

 


ASEAN ACCOUNTANCY LEADERS PREPARE FOR MRA IMPLEMENTATION IN LAO

The 3rd Meeting of the ASEAN Chartered Professional Accountant Coordinating Committee (ACPACC) was held on 17 May 2016 in Vientiane, Lao PDR.  The Meeting was chaired by Mr. Gerard Ew, President of the Institute of Singapore Chartered Accountants and assisted. Representatives from all ASEAN Member States (AMS) and ASEAN Secretariat attended the Meeting.  The Philippines was represented by BoA Chairman Joel Tan-Torres and Hon. Samuel Padilla.

The ACPACC has been meeting regularly to discuss the implementation details of the ASEAN Mutual Recognition Arrangements for Accountancy Services (MRA).  The MRA was signed by the 10 member countries of the ASEAN last November 2014.  The MRA is intended to promote the mobility of accountants within the ASEAN.

“In the implementation of the MRA, each country formed the National Monitoring Committees (MC).  The MC in the Philippines is composed of representatives from the Professional Regulations Commission, BoA, PICPA and CHED..The MC will prepare an  assessment statement that provides information on the state of accountancy in the country.  The assessment statement will be the basis for the processing and approval of  the registration of the ASEAN CPA who will be entitled to the benefits of the MRA.  The registration process will start as soon as the implementing rules are issued sometime early 2017,” said Chairman Tan-Torres.

The ACPSCC in Lao reviewed the updated list of Regulated and Non-Regulated Accountancy Services across ASEAN which appears. This list is a basic useful information for Members to know the practice of Accountancy Services in each ASEAN country.

“This list will be posted in the BoA website, together with information on the accountancy profession in the various ASEAN countries, as part of the  ASEAN AWARENESS FOR ACCOUNTANTS of the MRA” series or the “3AM series.” This is an awareness campaign on the MRA.,” said Chairman Tan-Torres,

“The MRA is now being implemented and will affect our entire accountancy profession,. We have been attending meetings of the ASEAN accountancy regulators and a road map has already been formulated that will soon result in the enhanced mobility of ASEAN accountants within the region, ” added Chairman Tan-Torres.

In order that all stakeholders in the accountancy profession are made aware of these important developments in the MRA, the BoA has been posting information materials on the MRA in its Face Book (FB) and website and discussing this matter on various fora and events attended by the BoA Chairman and members . Flyers and brochures on the MRA will be published and disseminated. The Continuing Professional Development seminars and modules will offer topics on the MRA.  The accounting students have also been exposed to the issues of the MRA when this was one of the topics in the recently concluded Accountancy Team Extemporaneous Speaking Competition (AtTEST) held in Tagaytay early this May.,” said Chairman Tan-torres

“We need to be prepared and ready to meet the opportunities and benefit that the MRA will bring. At the same time, we should all be ready to face the competition from the other ASEAN countries that will result in challenges to our accountants,” said Chairman Tan-Torres.

All accountants are encouraged to post questions and topics that they would want to be discussed in this 3AM series.

The suggested topics or any questions on the MRA can be also be emailed to boa.secretariat@gmail.com.

For information on the MRA and 3A series , you can log in at the BoA website at http://boa.com.ph/asean-mutual-recognition-arrangement.

lao


BOA VISITS MELBOURNE TO OBSERVE BEST PRACTICES

Upon the invitation of CPA Australia, a group from the Board of Accountancy consisting of Chairman Joel Tan-Torres, Vice Chairperson Gloria Baysa, Atty. Samuel Padilla, Hon. Concordio Quisaot, had several meetings with various accountancy organizations in Melbourne to discuss mutual topics of interest from February 18 to 19, 2016

The BoA delegation met eighteen (18) officers of CPA Australia, two (2) officers from the government accountancy standard setting body (Australian Accounting Standards Board), and four (4) professors and school administrators of the top 2 accountancy schools in Melbourne, ie. University of Melbourne and Monash Business School.

The group discussed various issues and topics that were relevant to both parties. Some of the topics discussed include, Quality Assurance Review, Small and Medium Practice, developmental projects, accountancy publications, accountancy advocacy/ies, information dissemination and awareness campaigns, operations of an APO and certification body, standard setting process, internship, accountancy school programs including instructional methodologies and strategies, accountancy research, CPA examination certification/licensure process, role of accountants, development of accountancy cases, industry academe linkages, and emerging developments in accountancy .

The BoA delegation had following take aways from the observation visit:

  1. Developmental approach in the implementation of QAR
    2. Requisites for a good QAR reviewer and inspector
    3. Administration of QAR (peer review, fees, selection of inspectors and auditees, etc.)
    4. OBE approach in preparation of examination questions
    5. IT tools in administration of examination process
    6. Organizational structure of various stakeholders in accountancy profession
    7. References of best practices for SMP
    8. Identification of several developmental projects, including a possible AusAid funded regional meeting of regulators with SMPS that will address cross border mobility issues
    9. Various ideas in marketing, information dissemination and publication of accountancy materials/campaigns
    10. Approaches and ideas in internship programs
    11. Directions pertaining to accountancy specialization or expertise
    12 Curricular content of the accountancy program
    13. Integration of work experience prior to graduation
    14.Downloadable marketing and promotional materials in YouTube
    15. Intensive use of technology in the teaching learning process
    16. Various instructional strategies and methodologies for lecture and for application of accounting courses
    17. Proliferation of journals and research publications in accountancy sector
    18. Various learning materials on Code of Ethics and Practical cases
    19. Extensive use of case studies in all the accountancy courses
    20. Use of foreign case sources in developing case studies
    21. Different approaches and ideas in internship programs
    22. Outcome Based Education approach for accounting courses
    23. Self-regulatory system of the profession
    24. Coverage of accountancy practice includes corporate compliance, financial planning, business advisory, superannuation taxation and insolvency, some of which requires accreditation or assessment procedures prior to engagement
    25. Distribution of public practice is :70% of the public practitioners are SMPs (tier 3); 25% are merged SMPs with network (tier2) and the remaining 5% in the Big Four.
    26. Requirement to to have professional indemnity insurance and appropriate risk management practices for CPAs in public practice
    27. Funding and complete staff support for standards setting offices
    28. Doctorate degree requirement for teachers of accounting subjects.
    29. Accounting programs provide high level conceptual education, combined with exposure to complimentary disciplines outside the classroom.
    30. Penalties for erring CPAs by CPA Australia range from a simple reprimand to forfeiture of membership. Decisions of the Disciplinary Committee are posted in its website. In effect the erring CPAs are put to shame when they besmirch the reputation of the profession.
    31 Allowing Public practice under a corporate structure.
    32. Modifying IFRS for the Not for Profit and Public Benefit Entities
    33. Curricular content of the accountancy program
    34. Integration of work experience in accountancy university program prior to graduation

The BoA was able to establish a valuable network of contacts and resource persons in the accountancy profession in Australia. The BoA and their Australian counterparts both agreed to continue the information sharing.

To the BoA delegation, congratulations for a very successful Australian observation visit.

aus aus1 aus2 aus3


CFRR 2016 Ministerial Conference
27 April 2016, Vienna
Quality Financial Reporting – a Catalyst for Growth

“Trust, sustainability, finance, development, communication, and success.” These were the most frequently used words during three high-level events in Vienna from 26 to 28 April, according to Samia Msadek, Practice Director, Governance Global Practice at the World Bank.
On 27 April 2016, the biennial Ministerial Conference hosted by the World Bank’s Centre for Financial Reporting Reform (CFRR) addressed the impact that quality financial reporting has on catalyzing growth in investments and economies. Around 240 delegates attended the Conference, including ministers of finance, senior government representatives, and representatives of the business, professional and academic communities from across Europe and Central Asia (ECA), along with experts from key international organizations.

BoA Chairman Joel Tan-Torres, flying from London after several meetings with accountancy regulatory officers, attended the conference.

Reiterating Austria’s support for the reform agenda, Hans Jörg Schelling, Austrian Minister of Finance, welcomed participants through a video message: “We care about an enabling environment for growth and stability in our neighboring countries. Strong corporate financial reporting systems contribute to private sector growth, financial markets development and thus to financial stability.”

In view of the current economic situation and the key role that the private sector needs to play in creating jobs to boost the economy, speakers repeatedly stressed the importance of enhancing the quality of financial information to achieve greater transparency and, as such, act as a catalyst for growth. The key benefits of reliable financial reporting identified throughout the Conference were financial stability, private sector development, and public administration reform.

Cyril Muller, Regional Vice President for ECA at the World Bank, explained how the STAREP and EU-REPARIS programs are helping to “create building blocs that together form a more conducive and predictable policy environment and an effective institutional framework for corporate reporting in participating countries. In EU candidate and potential candidate countries, this has involved aligning relevant legislation and institutions with EU requirements, which represent not only a benchmark of international good practice, but also facilitate greater integration and better access to EU markets.”

Katarína Mathernova, Deputy Director General, Directorate General for Neighborhood and Enlargement Negotiations at the European Commission, highlighted the significance of the EU-REPARIS and STAREP programs to economic growth and transparency in both public and private sector finance. Stressing the importance of sustaining the reform momentum, she informed participants that reliable financial information can provide the basis for comparability that enables access to finance.

Ministers of Finance from Bosnia and Herzegovina, the Federation of Bosnia and Herzegovina, Kosovo and Serbia discussed how high-quality financial reporting can act as a catalyst for increased confidence, transparency and trust – which in turn create an environment conducive to sustainable economic growth, job creation and development throughout the region. The four ministers described the opportunities and challenges of using financial information for economic development in the region, and outlined the progress made so far. Common priorities include job creation, closing the gap between accession countries and the EU, providing opportunities for private entrepreneurs, creating incentives to encourage fair financial reporting and ensuring that such reporting is enforced properly, and tackling the corporate governance of state-owned enterprises.

During a panel discussion comprising representatives of the finance, investment and credit industries, panelists described the critical contribution of high-quality financial information to more efficient investment, lending and business decisions. This message was reinforced in a video shared by Hans Hoogervorst, Chairman of the International Accounting Standards Board (IASB), which provided a clear correlation between sound financial information and decisions of investors.

Panelists also explored the role of public accounting reform in promoting governments’ transparency and accountability, managing fiscal risk, and spurring inclusive growth. Soukeyna Kane, Practice Manager, Governance Global Practice at the World Bank, outlined how the World Bank is helping to address some of the challenges that are prevalent in public accounting such as shortcomings in institutional frameworks, limited technical capacity, a lack of data availability and inadequate IT systems.

Chairman Tan-Torres had a number of take aways from the conference, including the importance of the public finance management (PFM), with New Zealand as one of the best practice, various fiscal transparency initiatives, including that from the OECD, IPSASB, EU, IMP, etc.

Chairman Tan-Torres was also able to network with Ms. Sami Msadek, WB Director; Jarett Decker, CFRR Executive Director; Rajeev Swami, WB Lead financnial Specialist; Joy Thomas, CPA Canada President; Fulvio Capurso, EU Manager; Sylvia Tsen IFAC Senior Director; Petr Kriz, Federation of European Accountants President; Bonnie Sirois, CFRR Lead Specialist; and Patrick Corrigan, AARC director.

“The participation of the Philippines in this event is very fruitful. We can expect a number of partnerships and cooperation, including the providing of technical assistance and the holding of meetings with the various global accountancy organizations in the future,” said Chairman Tan-Torres.

cfrr cfrr cfrr1 cfrra


PAO Regional Forum: The contribution of PAOs to economic growth
28 April 2016, Vienna

Representatives of Professional Accountancy Organizations (PAOs), Professional Regulatory boards, and the World Bank’s Centre for Financial Reporting Reform (CFRR).met in Vienna on 28 April 2016 with experts from the World Bank, the International Federation of Accountants (IFAC), and the International Accounting Standards Board (IASB), to discuss the contribution of PAOs to economic growth. BoA Chairman Joel Tan-Torres attended and shared the relevant Philippine experiences on this event

“This is a unique opportunity for knowledge exchange and a good example of the World Bank going global,” said Soukeyna Kane, Practice Manager, Governance Global Practice at the World Bank, as she welcomed participants from ECA and as far away as Canada, the Philippines, South Africa, and Singapore to the third Regional Forum for PAOs in Europe and Central Asia (ECA).

Technology
A change driver and enabler for financial reporting

In order to keep pace with developing economic realities and to address the needs of a wider stakeholder audience, corporate reporting must adapt to the opportunities and challenges presented by emerging technologies, according to Petr Kriz, President of the Federation of European Accountants (FEE). PAOs also need to respond to changing stakeholders’ needs and help accountants develop new skill sets to remain relevant and continue to add value in the fast-moving economy.

Participants received an update on recently completed International Financial Reporting Standards (IFRS) – IFRS 9 (Financial Instruments), IFRS 15 (Revenue from Contracts with Customers) and IFRS 16 Leases) from Philippe Danjou, Member of the IASB. Mr. Danjou also provided information about the upcoming standards for Insurance Contracts, the Disclosure Initiative, and the IASB’s Conceptual Framework.

The Forum also provided an overview of IFAC’s new Member Compliance Program Strategy for 2016-2018, which reflects a shift away from information gathering and the development of action plans towards more interactive disclosure in the form of ‘dashboard reports’. These reports will indicate the status of adoption of international standards and compliance with Statements of Membership Obligations as well as an overview of the country context.

PAO Regional Forum
The contribution of PAOs to economic growth
The accountancy profession: Change or be change

A panel discussion explored ways in which accountants can contribute to economic growth and in particular, to small and medium-sized enterprises that are generating jobs by helping them to take advantage of changing economic conditions. The panel also highlighted how accountants need to adapt to changes in the services they provide, to evolving demographics, and to the aspirations of young accountants.

In today’s globalized world, there are still many countries with multiple PAOs with overlapping functions, which can sometimes result in duplication of effort. The Canadian professional bodies have demonstrated that, despite many challenges in the area of regulation and cultural differences between PAOs, they succeeded in creating one national professional organization, resulting in economies of scale and a more unified front in presenting the accounting profession to the public it serves.

However, Chartered Accountants Ireland also emphasized that competition among PAOs can sometimes spur better service and innovation.
PAOs can face a number of challenges when trying to build a sustainable business model, especially in locating the resources to develop relevant and up-to-date education programs and Continuing Professional Development programs, and acquiring the necessary expertise. In two inspiring examples, participants heard first-hand accounts from the Institute of Singapore Chartered Accountants (ISCA) and Chartered Accountants Ireland. The ISCA started out in the 1960s—just as Singapore became an independent nation–with very few members and limited resources. As the the Singapore economy grew, ISCA evolved into an institute that is well respected on the world stage and serves as a role model for other PAOs in the region. In the case of Ireland – where there is competition among PAOs– Chartered Accountants Ireland managed to establish a world-class program, illustrating the importance of having a long-term vision, listening to the market, adapting to the economy and leveraging its members.

Ms. Samia Msadek, Practice Director, Governance Global Practice at the World Bank, stressed the importance of economic growth for the profession and urged accountants to be clear about their role and to be open to competition. “We need to prepare the profession for the future. Everybody has a choice: to be the victim or the creator. Let’s choose to be the creator. We can move the world forward with these global accounting standards if we reinvent ourselves as a profession,” she concluded.

pao

 


BOA AND COA DELEGATES ATTEND ISAR CONFERENCE IN GENEVA

BoA Chairman Joel Tan-Torres and Director Maria Fe Dinapo and State Auditor Emelita Cayetano from the Commission of Audit attended the 32nd session of the Intergovermental Working Group of Experts on International Standards of Accounting and Reporting (ISAR) of the United Nations Conference on Trade and Development  in the United Nations in Geneva, Switzerland from November 3 to 6, 2015.

Representatives from over 50 countries and various intergovernmental organizations gathered to discuss current developments and issues in the accountancy profession, including the International Public Sector Accounting Standards, audit of small and medium-sized enterprises, monitoring of compliance and enforcement, integrated and sustainability reporting, and others.  The Accounting Development Tool developed by ISAR was also presented for implementation of the countries in assessing the state of regulatory, institutional and human capacity for high quality financial and non-financial reporting.

 gen gen1 gen2

————————————————————————————————-

A VERY SUCCESSFUL USA VISIT

Upon the invitation of the International Public Sector Accounting Standards Board (IPSASB) and the Governmental Accounting Standards Board (GASB) to attend the inaugural Public Sector Standards Setters (PSSS) Forum, BoA Chairman Joel Tan-Torres attended the PSSS Forum in Connecticut, United States of America (USA) from March 14-15 , 2016.

While in the USA, Chairman Tan-Torres also attended the International Accounting Standard Board (IASB) meeting in New York on March 16; meetings with the Public Company Accounting Oversight Board from March 17 to 18; and a meeting with the American Institute of CPAs (AICPA) in New York on March 21; and a meeting with United Nations (UN) Under Secretary General Heidi Mendoza in New York on March 22.

In the PSSS Forum, Wilfredo Agito, Lourdes Castillo, and Luzvi Chatto of the Commission of Audit attended, together with about 100participants. Chairman Tan-Torres was able to network with officers of IPSASB, GASB, IFAC, and other public accountancy bodies of several countries.

“Learnings from this Forum included (1) updates on IPSASB projects on accounting for social benefits from government projects ; (2)discussions on sustainable reporting; (3) revenue performance reporting matters as prescribed in IPSAS 23; and, (4) public sector management and performance reporting, including tax expenditure methodology. The practical applications that may be put in place in the Philippines include (1) Accountability NOW initiative; (2) ideas for the implementation of the Tax Incentives Management and Transparency Act prescribed in RA 10708; (3) hiring of “fellow” and “interns” in the accountancy bodies,” said Chairman Tan-Torres.

In the IFAC/IASB meeting, Chairman Tan-Torres visited the IFAC Headquarters and met Mr. Adrian Lim, the membership staff in charge of the Asian region; Ms. Megan Hartman and Wayne Hartman, the IFAC and IFSASB persons respectively, in charge for the communications and social network of the two organizations.

In the PCAOB meetings, Chairman Tan-Torres met about 10 senior officers of the PCAOB where insights and experiences were shared on the operations/history of the PCAOB, inspection activities, enforcement, audit selection and management, audit quality indicators.

” In addition to the lessons learned on those topics, other take aways include (1) Best practice Indian case on inspection control and compensation ; (2) benefits of use of e-working papers for auditors; (3) Whistle blower program; (4) risk profiling of auditors, to include FS restatements history , turnover of audit partners, level of audit fees; internal evaluation of Partners; (5) use of Business analysis; (6) best practices of Singapore, Netherlands and UK oversight bodies; and (7) conduct of parallel investigations amongst oversight auditors,” said Chairman Tan-Torres.

” I took advantage of the opportunity to invite PCAOB Chairman James Doty to visit the Philippines. We weree also invited to participate in the future forum or events of the PCAOB,” said Chairman Tan-Torres.

Chairman Tan-Torres was able to connect with Ms. Sue Coffey of the AICPA , who is in charge of the Peer review program of the institute. We will be exchanging information on the innovative measures being adopted in the peer review process.

In their meeting, UN Under Secretary General Mendoza and Chairman Tan-Torres discussed the opportunities for technical assistance, forum on forensic accounting, analytics and cyber security in the UN that the Philippines may be able to avail of.

Overall, the visit to the USA resulted in extended network, new learnings and pinpointing of opportunities for the BoA and the accountancy profession.

usa1 usa2 usa3

—————————————————————————————

AFA turnover ceremony of the presidency

19th ASEAN Federation of Accountants (AFA) President Estelita Aguirre turned over the presidency to Ms. Sonexay Silaphet of Lao PDR last February 2016 in  Vientine.  As AFA President from 2014 to 2015, Dean Aguirre was responsible for initiating various projects and increasing the membership in AFA.

Congratulations  Dean Lita for a job well done

pres pres1


THAILAND AND PHILIPPINE ACCOUNTANTS SHARE BEST PRACTICES

THAILAND AND PHILIPPINE ACCOUNTANTS SHARE BEST PRACTICES

The Philippine delegation headed by BOA ChairMAN Joel Tan- Torres, and Ms. Estelita Aguirre and Corazon Pangcog, both from PICPA, met the officers of the Federation of Accounting Professionals (FAP) of Thailand in Bangkok on January 28, 2016 after the conclusion of the 2nd ASEAN CPA Coordinating Committee. The FAP were led by Vilai Chattanrassamee and Krittiyya Arthivitawas. The two country delegations exchanged information and best practices on accountancy.

“We noted the similarities as well as the differences between our two accountancy professions and systems. One that stands out in our discussion is the similarity on the need for a CPA or accountant in both countries to sign a statement on the preparation of the financial statements. This requirement of Thailand is very similar to that of the BoA Resolution 3-2016 which we are now implementing in the Philippines,” said Chairman Tan-Torres.

thai thai1 thai2

 


CAPA CONVENTION DISCUSSES CURRENT ACCOUNTANCY ISSUES

The 19th Conference of the Confederation of Asian and Pacific Accountants (CAPA) opened in the COEX Convention Center in Seoul, Korea on October 28, 2015 with more than 1200 delegates attending.

BoA Chairman Joel Tan Torres attended the conference and listened to various speakers dwell on the most current accountancy issues and developments. The speakers included Olivia Kirtley, President of IFAC; Sujeewa Mudalige, the outgoing president of CAPA; Faye Chua, the Head of Business Insights of ACCA; Peter Docherty, the General Manager of Public Practice of CPA Australia; Gary Ptlugrath, the director of Public Policy and Regulation of IFAC, Heechooon Park, Chief Accountant and Deputy Governor of the Korean Financial Supervisory Services and others.

“Several matters affecting the profession that will be practical and relevant in the Philippines were discussed during the conference. The growing focus on governance and technology concerns, the regulatory thrust on key audit matters and liabilities of the auditors, the workings of the various regional regulatory and professional bodies are important take aways of the conference,” said Chairman Tan-Torres.

The second day of the CAPA Conference held in COEX Seoul Convention Center on October 29, 2015 focused on additonal important concerns of the accountancy profession.

BoA Chairman Joel Tan-Torres listened to the presentation of such speakers as Arnold Schilder, Chairman of the IAASB; Chungwooh, member of the IASB; Nik Mohd Yusoff, Executive Director of the audit Oversight Board and Securities Commission of Malaysia; Gary Pflugratn, Director of Pyblic Policy and Regulation of IFAC; Gabriel Hayos, Vice President-Taxation of CPA Candada; Edward Karl, Vice President-Taxation of AICPA; Ucguri Suto, Chairperson Taxation and Legislation of JICPA; and others.

“The discussion dwelled on effective enforcement and administration of IFRS, integrated reporting, new audit report prescribed in ISA 701, the need for feedback on the consultation of draft papers of IFAC, the developments in tax, including BEPS and its various action plans and tax ethical standards,” said Chairman Joel Tan-Torres.

Prior to the Conference, IFAC President Olivia Kirtley discussed the IFAC’s 2016-2018 Strategic Plan during the CAPA meeting  in COEX Seoul on October 27, 2015. She also discussed the trends and implications in the accountancy profession, IFAC’s role in standard setting and regional cooperation.

BoA Chairman Joel Tan-Torres, AFA President Estelita Aguirre, PICPA Director Sonia Golez, and PICPA Past President Josefina Chua, who all attended the meeting,  discussed Philippine accountancy matters and the role of Filipina accountants with President Kirtley.

capa capa1 capa2

capa3


MORE INSIGHTS ON 2ND DAY OF CAPA CONFERENCE

The second day of the CAPA Conference held in COEX Seoul Convention Center on October 29, 2015 focused on additonal important concerns of the accountancy profession.

BoA Chairman Joel Tan-Torres listened to the presentation of such speakers as Arnold Schilder, Chairman of the IAASB; Chungwooh, member of the IASB; Nik Mohd Yusoff, Executive Director of the audit Oversight Board and Securities Commission of Malaysia; Gary Pflugratn, Director of Pyblic Policy and Regulation of IFAC; Gabriel Hayos, Vice President-Taxation of CPA Candada; Edward Karl, Vice President-Taxation of AICPA; Ucguri Suto, Chairperson Taxation and Legislation of JICPA; and others.

“The discussion dwelled on effective enforcement and administration of IFRS, integrated reporting, new audit report prescribed in ISA 701, the need for feedback on the consultation of draft papers of IFAC, the developments in tax, including BEPS and its various action plans and tax ethical standards,” said Chairman Joel Tan-Torres.

———————————————————

CAPA CONVENTION DISCUSSES CURRENT ACCOUNTANCY ISSUES

The 19th Conference of the Confederation of Asian and Pacific Accountants (CAPA) opened in the COEX Convention Center in Seoul, Korea on October 27, 2015 with more than 1200 delegates attending.

BoA Chairman attended the conference and listened to various speakers dwell on the most current accountancy issues and developments. The speakers included Olivia Kirtley, President of IFAC; Sujeewa Mudalige, the outgoing president of CAPA; Faye Chua, the Head of Business Insights of ACCA; Peter Docherty, the General Manager of Public Practice of CPA Australia; Gary Ptlugrath, the director of Public Policy and Regulation of IFAC, Heechooon Park, Chief Accountant and Deputy Governor of the Korean Financial Supervisory Services and others.

“I learned several matters affecting the profession that will be practical and relevant in the Philippines. The growing focus on governance and technology concerns, the regulatory thrust on key audit matters and liabilities of the auditors, the workings of the various regional regulatory and professional bodies are important take aways of the conference,” said Chairman Tan-Torres.

MEETING WITH IFAC PRESIDENT IN CAPA MEETING

iFAC President Olivia Kirtley discussed the IFAC’s 2016-2018 Strategic Plan during the CAPA meeting held in COEX Seoul on October 27, 2015. She also discussed the trends and implications in the accountancy profession, IFAC’s role in standard setting and regional cooperation.

BoA Chairman Joel Tan-Torres, AFA President Estelita Aguirre, PICPA Director Sonia Golez, and PICPA Past President Josefina Chua discussed Philippine accountancy matters and the role of Filipina accountants with President Kirtley.


PHILIPPINE DELEGATION TO ATTEND THE KL CONFERENCE

The Philippines will be sending a delegation ot the MIA IFAC Forum on SMP in Kuala Lumpur on November 18, 2015. Upon invitation of the Malaysian Institute of Accountants to the Board of Accountancy to send a delegation to the said forum, the BoA announced for CPAs to submit their interest to participate on a complimentary basis. The following are the delegates to the MIA IFAC Forum:

  1. Atty. Samuel Padilla, Member of Board of Accountancy
  2. Hon. Concordio Quiasaot, Member of Board of Accountancy

3.. Marco Fernando L. Ng, Managing Partner of M.Ng & T.Lopez

  1. Maria Thessa R. Flores. Consultant of Arkipowerline Construction Services
  2. Elena C. Absalud , Finance Director of John Robert Powers Int’l Ltd.
  3. Rince Lyn Hicban, Manager of M.Ng & T.Lopez
  4. Teresita Dimaculangan, Managing Partner of DD & Co. CPAs
  5. Edgar Isada of E. Isada, CPAs

These delegates will just have to arrange their own flight and hotel accomodations for the Forum.

kl


 

ASEAN ACCOUNTANCY REGULATORS MEET IN KL

The 17th Meeting of the Professional Regulatory Authorities of the Mutual Recognition Arrangement (MRA) on Accountancy met in Kuala Lumpur on May 8, 2015. BoA Chairman Joel Tan-Torres and BoA member Gerardo Sanvictores attended the meeting.

During the meeting, the accountancy regulators from the 10 ASEAN member states exchanged ideas on how to proceed in the implementation of the MRA which will provide mobility on accountancy services in the ASEAN region

Chairman Tan-Torres said, “The ten ASEAN countries are all gearing up to implement the MRA.. Within this year, there will be measures that will be adopted that will pave the way for the accountants in our ASEAN region to take advantage of the opportunities that the MRA will provide. Watch out for these developments.”

kl

—————————————————————————————————————————————————

WORLD BANK (WB) AND BOA FOCUS ON AUDIT QUALITY ISSUES

The Board of Accountancy and the World Bank coordinated on several events focusing on audit quality issues for the various stakeholders in the public practice.

BoA Chairman Joel Tan-Torres and Bonnie Sirois, Financial Management Hub Leader based in WB in the Global City organized several meetings and briefings with government regulators, the quality or risk officers of various accounting firms, and CPAs in public practice. These were held in the PICPA Building in Mandaluyong City, the World Bank office, the Securities Exchange Commission, from April 17 to April 23, 2015.

Mr. Paul Hurks from NBA Netherlands and Jarett Decker, Senior Financial Management Specialist of the Centre for Financial Reporting Reform, The World Bank Group in Washington D.C., met with the various stakeholders of the accountancy profession. Discussions were made on such topics listed below:

  1. Effective Audit Quality Systems
  2. Capacity building for Quality Control
  3. Capacity building for Quality Assurance
  4. Best practices in Quality Assurance Review

world

——————————————————————————————————————————————————

ASEAN MRA IMPLEMENTATION PLANS DISCUSSED 

After the ASEAN Mutual Recognition Arrangement (MRA) was signed last November 2014, the representatives of the ten ASEAN Member States (AMS) met in Kuala Lumpur, Malaysia from May 4 to 5, 2015 to discuss the implementation and action plans to enhance pursue in the years to come.

BoA Chairman Joel Tan-Torres led the Philippine delegation of four which the ASEAN Aus Aid sponsored workshop held in Royale Chulan Hotel in Kuala Lumpur. BoA member. Gerard Sanvictores, Ms. Estelita Aguirre, president of the Asian Federation Association, and Ms. Corazon Pancog, project manager of the BoA were the other members of the delegation.

During the workshop meeting, over 25 delegates from the 10 AMS discussed matters to enhance the mobility of ASEAN professionals on accountancy services, including regional qualification benchmark, assessments, and important implementation aspects.

“The efforts continue to implement the ASEAN MRA in the soonest possible time. The beneficiaries of this implementation are in general, the economies of he different ASEAN countries, and,in particular, the accountancy profession of the AMS. Thus, in the Philippines, all Filipino accountants should welcome and prepare for these developments,” Chairman Tan-Torres commented.

The full version of the ASEAN MRA is posted in the BoA website (www.boa.gov.com)MRA

—————————————————————————————————————————————————-

BoA ATTENDS FIRST MEETING OF ASEAN COORDINATING COMMITTEE

BoA Chairman Joel Tan-Torres and Hon. Gerard Sanvictores attended the first meeting of the ASEAN Chartered Professional Accountant Coordinating Committee (ACPACC) together with about 30 representatives from the nine other ASEAN countries. This was held in the Suntec Convention Center in Singapore on September 30, 2015.

Matters discussed in the meeting are the formation of the monitoring committees for the ASEAN MRA. the discussion of the list of regulate services across the region, the turnover of the Handbook on Core Competencies and Domestic Regulations in the Accountancy Services of the ASEAN countries.

“During the meeting, we presented what we have been doing in implementing the Mutual Recognition Arrangement (MRA) in the Philippines. We highlighted on the awareness and information campaigns that we have done to make the accountancy profession know the details and benefits of the MRA,” said Chairman Tan-Torres.

The representatives of the ten ASEAN countries agreed on a number of implementation activities to undertake and to report this to the ACPACC in the January 2016 meeting to be held in Thailand.

sing1

 

—————————————————————————————————————————————————–

ASEAN REGULATORS DISCUSS MRA IMPLEMENTATION

Representatives from the ten ASEAN countries gathered together from October 2 to 2, 2015 in Suntec Convention Center in Singapore to discuss the implementation details of the Mutual Recognition Arrangement (MRA) for Accountancy Services. The MRA was signed last November 2014 and provides for the mobility of the accountants of the ASEAN region.

The Philippines was represented in the Accountancy Workshop by BoA Chairman Joel Tan-Torres and Estelita Aguirre and Corazon Pangcog as the representatives of PICPA.

The Accountancy Workshop was organized ASEAN and Aus Aid. The facilitators fo the workshop were Patrick Corrigan, Gertt Karreman, and Mahalah Groves of ACCA.

sing3

—————————————————————————————————————————————————–

ATTEND THE MALAYSIA ACCOUNTANCY CONFERENCE FOR FREE

The Malaysia Institute of Accountants (MIA) has invited the Board of Accountancy to send a number of delegates to the MIA-IFAC Regional Small and Medium Size Practice Forum on November 18, 2015 at the Aloft Kuala Lumpur Central.

This forum will bring together regional and national accounting organizations and regulators to discuss the opportunities and challenges facing small and medium size practices.

“We have been invited by MIA to send some participants to this forum. There will be no conference fees for the Philippine delegates. However, those coming will have to shoulder their own plan fares and hotel accommodations.” said Chairman Joel Tan-Torres.

“We will be accepting about eight(8) applications for this forum on a first come first served basis. Those interested can accomplish the registration form and email to boa.secretariat@gmail.com with a resume of the applicant,” said Chairman Tan-Torres

mis


2nd ACPACC MEETING CONCLUDES 

The 2nd ASEAN CPA Coordinating Committee meeting held in Bangkok, Thailand closed on January 28, 2016 with certain decisions made by the 10 ASEAN countries on the implementation of their respective Mutual Recognition Arrangement on Accountancy Services (MRA). The Philippine delegation was headed by BOA Chairman Joel Tan- Torres, with Ms. Estelita Aguirre and Corazon Pangcog, both from PICPA. The meeting dwelled on various aspects of the MRA to fast track the activities to enhance the mobility of accountants to work in the various countries in the region. The items agreed upon included, among others, the finalization of the consultants report on the action plan on the implementation of the MRA, the establishment of the Monitoring Committee, the Secretariat of the ACPACC, finalization of the MRA Assessment Statements, creation of country websites, and the need to pursue promotional and information awareness activities on MRA.

“I also continued to pursue my recommendation of including in the ACPACC meeting other activities, including the holding of round table and best practice sharing among the 10 countries, the conduct of site visits to be organized by the host country, and pursuing special projects, such as the preparation of marketing of information awareness materials on MRA that can be used by all 10 ASEAN countries in promoting the MRA,” said Chairman Tan-Torres.

The next ACPACC meeting will be held in Laos on May 2016.

acp acp1 acp2


ACCOUNTANCY AGREEMENT DISCUSSED IN SINGAPORE

Board of Accountancy(BoA) Chairman Joel Tan-Torres and member Gerard Sanvictores attended the 82nd ASEAN Coordinating Committee on Services meeting in Suntec Convention Center in Singapore on September 30, 2015.

The ASEAN Mutual Recognition Arrangement (MRA) was discussed by the accountancy regulators and representatives from the ten ASEAN countries. This MRA will facilitate the mobility of accountants to work in the ASEAN region.

sing1sing1sing2


CAMBODIA DELEGATION LEARNS FROM PRC AND BoA

A four man delegation from the National Accountancy Council of Cambodia visited the PRC on September 21, 2015. The delegation, headed by Deputy Secretary Bou Tharin, was given by a briefing by PRC and BoA on their practices and programs .

The PRC was headed by Commissioner Yolanda Reyes and the BoA was headed by Chairman Joel Tan-Torres.

“We are pleased to be able to brief our accountancy counterparts in Cambodia and to share our practices and experiences to help them upgrade their accountancy profession in Cambodia,” said Chairman Tan-Torres.

Earlier on September 20, 2015, the Cambodia delegation visited the PICPA in their office in Mandaluyong and were briefed on the structure and activities of PICPA and the FRSC.

cam cam1 cam2


PHILIPPINE  DELEGATION  ATTENDS  KL CONFERENCE

The Philippines  delegation attended the MIA-IFAC Regional Small and Medium Size Practice Forum on November 18, 2015 at the Aloft Kuala Lumpur Central.  Upon invitation of the Malaysian Institute of Accountants to the Board of Accountancy to send a delegation to the said forum, the BoA announced for CPAs to submit their interest to participate on a complimentary basis.  The following were the delegates to the MIA IFAC Forum:

  1. Atty. Samuel Padilla, Member of Board of Accountancy
  2. Hon. Concordio Quiasaot, Member of Board of Accountancy

3.. Marco Fernando L. Ng, Managing Partner of M.Ng & T.Lopez

  1. Maria Thessa R. Flores. Consultant of Arkipowerline Construction Services
  2. Elena C. Absalud , Finance Director of John Robert Powers Int’l Ltd.
  3. Rince Lyn Hicban, Manager of M.Ng & T.Lopez
  4. Teresita Dimaculangan, Managing Partner of DD & Co. CPAs
  5. Edgar Isada of E. Isada, CPAs
  6. Mr. Elmer Managing partner of Minerva & Company, CPAs,

kl


PICPA & AFA INVITES ALL TO ATTEND THE 19TH AFA CONFERENCE

The Asian Federation of Accountants (AFA), under President Estelita Aguirre and PICPA, under President Dominador Barrior will host the 19th AFA Conference in the  Asian Institute of Management on December 4, 2015. Speakers from the Philippines, headed by BoA Chairman Joel Tan-Torres and from the other countries will discuss such issues as:
In general, how are the SMEs and SMPs awareness and understanding of the ASEAN integration?

Are SMEs and accountants in the Philippine ready for the ASEAN integration (and the ASEAN Economic Community)?

What is the general level of involvement of the SMEs and SMPs on the ASEAN integration process?

What are the potential opportunities and challenges (including threats) that come with the ASEAN integration, particularly those that are relevant for the SMEs and SMPs? How relevant are these for those that are in the Philippine in particular?

What should the SMEs and SMPs do in order to maximize the opportunities that come with the integration? And what should (and could) they do in order to answer to these challenges?

How can the accountants in the Philippine close the gaps to compete with their ASEAN neighbours?

How the accountancy profession can supports the SMEs and SMPs in welcoming the ASEAN integration?

How the banks and SMEs can work together to achieve SMEs growth particularly in the ever changing environment caused by the integration?

 

Are Philippine banks well equipped to assess and finance SMEs and how does good financial reporting and IFRS help?

The program for the Conference is shown below.
07.30 – 08.30 Registration
08.30 – 08.40 Opening remarks Dean Estelita C. Aguirre (President, AFA)
08.40 – 08.50 Welcome message Mr. Dominador A. Barrion (PICPA President)
08.50 – 09.10 Message Accountancy regulator BOA Hon. Joel Tan-Torres
09.10 – 09.15 Intro of keynote speaker Atty. Josefe Sorrera-Ty Secretary General,
09.15 – 09.45 Keynote Speech Mr. Guntur Sugiyarto (Senior Economist, Economics and Research Development, Asian Development Bank)
09.45 – 10.00 Coffee break
10.00 – 10.15 AFA and it’s Activities on SMEs and SMPs Mr Aucky Pratama
10.15 – 11.00 Maximizing Opportunities of Accountants from the ASEAN
Integration Ms. Lucia Real Martin (Director of Emerging Markets, ACCA)
11.00 – 12.15 Panel Discussion 1
ASEAN Integration: Boon or Bane for SMEs and SMPs
Panellists:
Mr. Sonexay Silaphet (Deputy President, AFA, Laos)
Hon. Gerard B. Sanvictores (Member, BOA)
Atty. Alexander B. Cabrera (Chair and CEO, Isla Lipana PwC)
Mr.Win TIn (Myanmar Institute of CPAs)
Moderator:
Dr. Cesar A. Mansibang (Vice President for Operation, PICPA)
12.15 – 13.00 Lunch break
13.00 – 13.40 IFRS for SMEs in ASEAN Countries: Impacts on SMEs and
SMPs Ms. J. Adrienne A. Abarca Partner Assurance, SGV)
13.40 – 14.20 SMPs and the New Auditor’s Report Dr. Nurmazilah Dato
Mahzan (Deputy CEO, MIA)
14.20 – 15.00 ASEAN Integrationa: Specific Tax Issues and Reforms:Atty.
Benedicta Du-Baladad (Managing Partner and CEO,BDB Law)
15.00 – 15.20 Coffee Break
15.20 – 15.50 UNCTAD-ISAR Paper on Monitoring Compliance Mr. Gerard Ee
(President, ISCA)
15.50 – 17.00 Panel Discussion 2
Quality Assurance Review: Challenges, Opportunities and Benefits in
Adoption and Implementation
Panellists:
Hon. Joel Tan-Torres (Chairman, BOA)
Mr. Gerard Ee (President, ISCA)
Ms. Ma. Victoria C. Espano (Chair and CEO, P&A Grant
Thornton)
Moderator:
Mr. Mark Campbell (Head of International Capacity Building,
ICAEW)
This one-day conference will bring together regional and global experts, regulators, accountancy organizations, policy makers, standard-setters, small medium industries, and more importantly accountants in the Philippines to discuss the effects of the ASEAN integration on the ASEAN SMEs and SMPs.
The conference will also look at adoption and implementation of quality assurance as a vital component for the profession in successfully welcoming the ASEAN integration.

afa


The BoA Group with Lauren Pang of Candy Pencil Project in Kuala Lumpur on October 18, 2015. The Candy Pencl Project is involved in educating children with use of drawing tools and supporting the education of visually impaired children through Braille materials. Chairman Joel Tan-Torres, Vice Chair Gloria Baysa, and Hon. Eliseo Aurellado hold some of the katsa bag “art works” done by the children being supported by the Candy Pencil Project. Lauren Peng will be in the Annual National Convention in Puerto Princesa in November 2015 and will be selling these “art works” for a good cause. Let us support her and her Manila project.

kl

——————————————————————————————————————————————————

FULL DAY FOR NACPAE KL CONVENTION DELEGATES

It was an activity filled first day of the 2nd Mid-Year Teachers Conference held in Sunway Putra Hotel in Kuala Lumpur, Malaysia for the more than 100 delegates from NACPAE. The conference organized by NACPAE headed by its president Omar Ampongan and Vice President Antonio Dayag will be from October 19 to 21, 2015.

BoA Chairman Joel Tan-Torres, Vice Chair Gloria Baysa and Hon. Eliseo Aurellado attended the conference and presented the BoA plans and activities and important accountancy education issues in the evening program of October 19. The activities held earlier on October 19 included the courtesy call to Philippine Ambassador Eduardo Malaya, Benchmarking and research presentations in the University of Kuala Lumpur and University of Malaya and other activities in Sunway Putra Hotel.

“The delegates to the conference learned a lot from the speakers from Malaysia and the Philippines. The university officials of Malaysia and the officers of NACPAE started discussion on possible collaborations, including an student or faculty exchange program. Ambassador Malaya also challenged the Filipino accountants to take advantage of the opportunities that have and will arise with the ASEAN Integration. He mentioned that there will be a need for more than 30,000 accountants n Malaysia in the next few years which the Filipino CPA can take advantage of,” said Chairman Joel Tan-Torres.

kl kl1 kl2