BoA Resolutions

 CPD FREQUENTLY ASKED QUESTIONS 

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IRR OF RA 1091, CPD ACT OF 2016 – PRC RESOLUTION NO. 2017-1032

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INCREASING THE MINIMUM CPD UNITS FROM 60 TO 120 CREDIT UNITS OVER A 3-YEAR COMPLIANCE PERIOD AND CHANGING THEMATIC AREAS TO COMPETENCE AREAS – BOA RESOLUTION NO. 358-2016

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THE CPD LAW OF 2016 – REPUBLIC ACT NO. 10912

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AMENDMENTS TO THE REVISED GUIDELINES ON THE CONTINUING PROFESSIONAL DEVELOPMENT PROGRAM FOR ALL REGISTERED AND LICENSED PROFESSIONAL – PRC RESOLUTION NO. 2016-990

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ISSUANCE AND PROMULGATION OF THE NEW TABLES OF SPECIFICATION (TOS) OF THE SUBJECTS IN THE BOARD LICENSURE EXAMINATION FOR CERTIFIED PUBLIC ACCOUNTANTS (BLECPA) – BOA Resolution No. 275-2015

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Resolution No. 263 Series of 2015- Adoption of the IFAC 2013 Code of Ethics for Professional Accountants as “The Code of Ethics for Professional Accountants in the Philippines”, and prescribing amendments therefor

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BoA Resolutions 2016

 

BOA- RESOLUTION

 

Status

 

 

REQUIRING THE SUBMISSION OF ENGAGEMENT REPORTS BY INDIVIDUAL CERTIFIED PUBLIC ACCOUNTANT, FIRMS AND PARTNERSHIPS OF CERTIFIED PUBLIC ACCOUNTANTS ENGAGED IN THE PRACTICE OF PUBLIC ACCOUNTANCY

 

 

Resolution # 2 – docketed January 13, 2016

 

 

 

REQUIRING THE SUBMISSION OF CERTIFICATE BY THE

RESPONSIBLE CERTIFIED PUBLIC ACCOUNTANTS ON THE COMPILATION SERVICES FOR THE PREPARATION OF FINANCIAL STATEMENTS AND NOTES THERETO

 

 

Resolution # 3-

Published- January 24, 2016- Philippine Star

 

Effectivity- February  9, 2016

 

 

IMPOSITION OF A MORATORIUM ON THE IMPLEMENTATION OF THE CONTINUING PROFESSIONAL DEVELOPMENT (CPD) REQUIREMENT FOR THE ACCREDITATION OF ACCOUNTING TEACHERS UNTIL JULY 31, 2016

 

 

Resolution # 1- docketed January 13, 2016

 

Published- March 14, 2016

 

Effectivity- March 30, 2016

 

 

ENFORCING THE REGISTRATION AND ACCREDITATION REQUIREMENT FOR all PARTNERS AND CERTIFIED Public Accountant (cpa) STAFF MEMBERS

iN PARTNERSHIPS AND FIRMS ENGAGED IN THE PUBLIC PRACTICE OF ACCOUNTANCY

 

 

Resolution # 295- docketed December 29, 2015

 

Published- April 4, 2016

 

Effectivity- April 20, 2016

 

 

 

ADOPTION OF THE IFAC 2013 CODE OF ETHICS FOR PROFESSIONAL ACCOUNTANTS AS “THE CODE OF ETHICS FOR PROFESSIONAL ACCOUNTANTS IN THE PHILIPPINES”, AND PRESCRIBING AMENDMENTS THEREFORE

 

 

Resolution # 263- docketed December 18, 2015

 

Published- March 21, 2016

 

Effectivity- April 6, 2016

 

 

ADOPTION OF THE REVISED RULES AND REGULATIONS FOR THE CONDUCT BY THE PROFESSIONAL REGULATORY BOARD OF ACCOUNTANCY OF OVERSIGHT INTO THE QUALITY OF AUDITS OF FINANCIAL STATEMENTS AND OPERATIONS OF CPA PRACTITIONERS

 

 

Resolution # 244- docketed December 4, 2015

 

Published – February 22, 2016

 

Effectivity- March 9, 2016

 

 

PRESCRIBING ADDITIONAL REQUIREMENTS FOR THE INITIAL APPLICATIONS FOR AND RENEWAL OF REGISTRATION OR ACCREDITATION OF INDIVIDUAL CERTIFIED PUBLIC ACCOUNTANT, FIRMS AND PARTNERSHIPS OF CERTIFIED PUBLIC ACCOUNTANTS ENGAGED IN THE PRACTICE OF PUBLIC ACCOUNTANCY, AMENDING FOR THE PURPOSE “ANNEX B” OF RESOLUTION NO. 71, SERIES OF 2004, OR THE RULES AND REGULATIONS IMPLEMENTING REPUBLIC ACT NO. 9298, OTHERWISE KNOWN AS THE PHILIPPINE ACCOUNTANCY ACT OF 2004, AND FOR OTHER PURPOSES

 

 

Resolution # 5 – docketed

 

January 28, 2016

 

Published- June 20, 2016-07-01

 

Effectivity-July 06, 2016

 

PRESCRIBING THE APPLICATION FORMS FOR THE: (1) ACCREDITATION OF CERTIFIED PUBLIC ACCOUNTANTS (CPAs) IN PUBLIC PRACTICE (INITIAL AND RENEWAL); (2) ACCREDITATION OF ACCOUNTING TEACHERS (INITIAL AND RENEWAL) AND (3) ACCREDITATION OF CPA’S IN COMMERCE AND INDUSTRY PRACTICE

 

 

Resolution 6, Series of 2016

Docketed February 5, 2016

 

Forms further revised per Resolution 92, Series of 2016.

 

 

AMENDING RESOLUTION NO. 03, SERIES OF 2016, ENTITLED “REQUIREMENT FOR THE SUBMISSION OF CERTIFICATE BY THE RESPONSIBLE CERTIFIED PUBLIC ACCOUNTANTS ON THE COMPILATION SERVICES FOR THE PREPARATION OF FINANCIAL STATEMENTS AND NOTES THERETO”, MANDATING EXTERNAL AUDITORS TO MONITOR COMPLIANCE THERETO, AND FOR OTHER PURPOSES

 

 

Resolution # 68- docketed

March  21, 2016

 

Published- March 23, 2016

 

Effectivity- April 8, 2016

 

 

Further amended by Resolution No. 115, Series of 2016 on the extension of deadline and review of the 10 M threshold)

 

 

PRESCRIBING REVISED APPLICATION FORMS, DOCUMENTARY REQUIREMENTS, AND NEW FEES FOR THE ACCREDITATION OF CERTIFIED PUBLIC ACCOUNTANTS (CPAs) IN: a) PUBLIC PRACTICE (FIRMS AND INDIVIDUAL PARTNER AND STAFF MEMBER) b) EDUCATION PRACTICE (ACCOUNTING TEACHER) AND c) COMMERCE AND INDUSTRY PRACTICE

 

 

Resolution # 92- docketed

December 28, 2015

 

Published at Philippine Star on April 6, 2016

 

 

EXTENDING THE DEADLINE IN THE FILING OF APPLICATIONS FOR ACCREDITATION OF CERTIFIED PUBLIC ACCOUNTANTS (CPAS) IN COMMERCE AND INDUSTRY PRACTICE AND THE COVERED PERIOD OF THE FINANCIAL STATEMENTS SUBJECT TO THE CERTIFICATE ON THE COMPILATION SERVICES REQUIREMENT, AND PROVIDING FOR THE REVIEW OF THE TEN MILLION PESO (P10,000,000.00) THRESHOLD AS SET UNDER RESOLUTION NO. 2016-03 AND 2016-68

 

 

Resolution # 115- docketed

April 25, 2016

 

Published at Philippine Star on April 27, 2016

 

 

Published FRSC

BoA Resolution 69 dated March 23, 2016 (Published last July 18, 2016)

  • Effective date of amendments to PFRS 10, Consolidated Financial Statements and PAS 28, Investments in Associates and Joint Ventures
  • Philippine Interpretations Committee (PIC) Q&A No. 2015-01 Conforming Changes to PIC Q&As – Cycle 2015
  • PIC Guidance on Financial Reporting

BoA Resolution 124-2016 dated May 23, 2016  (Published in Official Gazette on September 12, 2016)

  • PFRS 16, Leases
  • Amendments to PAS 7, Disclosure Initiative
  • Amendments to PAS 12, Recognition of Deferred Tax Assets for Unrealized Losses

 Boa Resolution 154,  dated August 2016 (Published in the Official Gazette on October 10, 2016)

  • Amendments to  PFRS 10, PFRS 12 and PAS 28
  • Amendments to PAS 1
  • Philippine Interpretations Committee PIC Q&A:
  • PIC Financial Reporting Guidance on Addressing Common Pitfalls and Application issues on Cash Flows Statement.

BoA Resolution 125-2016 dated may 23, 2016   (Published in the Official Gazette on October 3, 2016)

 

  • PSA 700 (Revised), Forming an Opinion and Reporting on Financial Statements
  • PSA 701 (Revised), Communicating Key Audit Matters in the Independent Auditor’s Report
  • PSA 705 (Revised), Modifications to the Opinion in the Independent Auditor’s Report
  • PSA 706 (Revised), Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Report
  • PSA 720 (Revised), The Auditor’s Responsibilities Relating to Other Information
  • PSA 570 (Revised) Going Concern
  • PSA 260 (Revised) Communications with those charged with governance

 

BoA Resolution 70-2016 dated March 23, 2016  (Published in the Official Gazette on September 5, 2016)

  • PSA 610 (Revised) Using the Work of Internal Auditors and Related Working Arrangements
  • PSAE 3410 Assurance Statements on Greenhouse Financial Statements
  • PSRS 4410 (Revised) Compilation Engagements
  • PSRE 2410 (Revised) Engagements to Review Historical Financial Statements

 

 

 

 

ACCOUNTING STANDARDS FOR 2016

The three standards setting and interpretation organizations in the Philippines that recommend the standards, rules and interpretative pronouncements on accountancy and auditing have been busy in 2016.  These three organizations are the Financial Reporting Standards Council (FRSC), the Auditing and Assurance Standards Council (AASC), and the PHILIPPINE  Interpretation Council (PIC).  These are mandated under the Accountancy Law and the implementing rules to recommend to the Boart of Accountancy the standards and interpretation thereof for the BoA approval. The Chairman of the councils are Roberto Manabat for the AASC, David Balangue for the FRSC, and Wilson Tan for the  PIC.

In 2016, the following standards and pronouncements were recommended to and approved by the BoA, and subsequently published prior to effectivity.

BoA Resolution 69 dated March 23, 2016 (Published last July 18, 2016)

  • Effective date of amendments to PFRS 10, Consolidated Financial Statements and PAS 28, Investments in Associates and Joint Ventures
  • Philippine Interpretations Committee (PIC) Q&A No. 2015-01 Conforming Changes to PIC Q&As – Cycle 2015
  • PIC Guidance on Financial Reporting

BoA Resolution 124-2016 dated May 23, 2016  (Published in Official Gazette on September 12, 2016)

  • PFRS 16, Leases
  • Amendments to PAS 7, Disclosure Initiative
  • Amendments to PAS 12, Recognition of Deferred Tax Assets for Unrealized Losses

 Boa Resolution 154-2016  dated August 2016 (Published in the Official Gazette on October 10, 2016)

  • Amendments to  PFRS 10, PFRS 12 and PAS 28
  • Amendments to PAS 1
  • Philippine Interpretations Committee PIC Q&A:
  • PIC Financial Reporting Guidance on Addressing Common Pitfalls and Application issues on Cash Flows Statement.

BoA Resolution 125-2016 dated may 23, 2016   (Published in the Official Gazette on October 3, 2016)

  • PSA 700 (Revised), Forming an Opinion and Reporting on Financial Statements
  • PSA 701 (Revised), Communicating Key Audit Matters in the Independent Auditor’s Report
  • PSA 705 (Revised), Modifications to the Opinion in the Independent Auditor’s Report
  • PSA 706 (Revised), Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Report
  • PSA 720 (Revised), The Auditor’s Responsibilities Relating to Other Information
  • PSA 570 (Revised) Going Concern
  • PSA 260 (Revised) Communications with those charged with governance

BoA Resolution 70-2016 dated March 23, 2016  (Published in the Official Gazette on September 5, 2016)

  • PSA 610 (Revised) Using the Work of Internal Auditors and Related Working Arrangements
  • PSAE 3410 Assurance Statements on Greenhouse Financial Statements
  • PSRS 4410 (Revised) Compilation Engagements
  • PSRE 2410 (Revised) Engagements to Review Historical Financial Statements

Copies of these standards and interpretative pronouncements can be dowmloaded for the websites of the two councils (www.aasc.org.ph  and  http://www.picpa.com.ph/frsc.html?article=Philippine%20Financial%20Reporting%20Standards&page=FRSC&main_menu=PFRSs )


NEW AUDITING RULES AND PROCEDURES TAKE EFFECT

The Board of Accountancy (“BoA”) and the accountancy profession recently implemented a number of major auditing standards and procedures pursuant to BoA Resolution 125-2016.

Among others, these include PSA 700 (Revised), Forming an Opinion and Reporting on Financial Statements : PSA 701 (Revised), Communicating Key Audit Matters in the Independent Auditor’s Report; PSA 705 (Revised), Modifications to the Opinion in the Independent Auditor’s Report; PSA 706 (Revised), Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Report; PSA 720 (Revised), The Auditor’s Responsibilities Relating to Other Information and, PSA 570 (Revised) Going Concern.

These are intended to increase the transparency and enhance the information value of the auditors report

The new standards took effect for audits of financial statements for periods ending on or after December 15, 2016. The changes prescribed in the new rules are the most in recent years in terms of number and impact on the format and content of the auditors report. The more than 6,500 CPAs and auditing partnership firms are all expected to comply with these new rules as they provide their audit services.

“We would like that the stakeholders that will be affected by these standards and procedures are aware of these and should be able to implement and adopt these properly. Towards this end, the BoA has decided to form a Task Force on the Expanded Auditors Report (Task Force EAR). This Task Force EAR shall be mandated to help in the dissemination of information and implementation of the new standards and procedures, said BoA Chairman Joel Tan-Torres.

The Task Force EAR will focus on:

  1. Establish a virtual “Help Desk” that will accept and respond queries
    2. Create and maintain a website that will provide information and links to established resources
    3. Conduct briefings to stakeholders
    4. Produce materials (flyers, video, etc.) for dissemination
    5. Address implementation and interpretation issues and prescribe resolutions to the BoA for their final action
    6. Monitor the awareness and implementation by online surveys; getting feedback from stakeholder groups during their events and the CPD events ; etc.
    7. Submit a final report to BoA by May 30, 2017

Representatives from the auditing firms and sectoral organization would comprise the Task Force EAR. Invitations will be sent to the big accounting firms, identified sectoral organizations and selected SMPs to nominate their representatives to the Task Force. The Chairman of BoA will head the Task Force.

You can provide inputs to the BoA who can be considered the representative/s from the SMP. Submit the name/s, contact information and short description of your recommendee/s to boa.secretariat@gmail.com.


BOA RESOLUTION 124-2016 PROVIDES EFFECTIVITY OF SEPTEMBER 27, 2016 OF MORE ACCOUNTING AND AUDITING RULES AND PROCEDURES.

The new guidelines indicated in the resolution will be published in boa.com.ph next week


PRC ISSUES NEW CPD GUIDELINES

The Professional Regulations Commission issued Resolution 990-2016 providing for updated rules on the Continuing Professional Development (CPD) program that all regulatory boards will have to implement. This was published in the Official Gazette last July 21, 2016 and becomes effective on August 21, 2016.

The resolution provides rules and application forms on the accreditation of CPD providers, the requirement of CPD monitors for quality assurance, the guidelines on self-directed or life long learning, new registration fees. It also provides that the CPD requirements for CPAs shall be 120 units for a three year period.

The resolution can be downloaded from the PRC and BoA website at boa.com.ph

cpd CPD1 cpd2


BOA GUIDELINES PROVIDE ADDITIONAL RULES ON CPA ACCREDITATION AND CERTIFICATE OF COMPILATION SERVICES

The BoA issued Resolution 68-2016 prescribing additional rules on the CPA in Commerce and Industry Accreditation and the preparation of the Certificate of Compilation Services prescribed in BoA Resolution 03-2016.

The more important guidelines include the extension of the deadline for the submission by the CPA of their accreditations for accreditation to April 30, 2016; the imposition of the deadline for filing of accreditation applications of one month from date of hiring/severance, in the case of new CPAs being employed and CPAs being separated; the provision of a deadline of two months from the end of the accounting period for the completion of the preparation of the Financial Statements for submission to the external auditor; the responsibility of the external auditor to advise the BoA of violations of their client/s on the requirements of the various resolutions within a month after the completion of the audit engagement, and the provision of penalties for certain violations of the guidelines.

BoA Resolution No 68-2016 was published in the Philippine Star on March 23, 2016

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BIR CLAR

STATUS OF RESOLUTIONS

BoA Resolution No. 2015-295 : Resolution Requiring the Accreditation of all Partners

BoA Resolution No. 2016-03 : Resolution Requiring Certificate by the CPA

BoA Resolution No. 2016-02 : Resolution Requiring the Submission of Engagement Reports

BoA Resolution No. 2015-274 : PROMULGATION OF NEW SYLLABI FOR THE SUBJECTS IN THE BOARD LICENSURE EXAMINATION FOR CPA’s

BoA Resolution No. 2015-275 : PROMULGATION OF THE TABLES OF SPECIFICATIONS (TOS) FOR THE SUBJECTS IN THE BOARD LICENSURE EXAMINATION FOR ACCOUNTANCY 

BoA Resolution No. 2016-01 : IMPOSITION OF A MORATORIUM ON THE IMPLEMENTATION OF THE CPD REQUIREMENT FOR THE ACCREDITATION OF ACCOUNTING TEACHERS UNTIL JULY 31, 2016

BoA Resolution No. 2015-263 : ADOPTION OF THE 2013 INTERNATIONAL CODE OF ETHICS OF THE INTERNATIONAL FEDERATION OF ACCOUNTANTS (IFAC) AS THE CODE OF ETHICS FOR PROFESSIONAL ACCOUNTANTS IN THE PHILIPPINES AND INSTITUTING CHANGES THEREIN

BoA Resolution No. 2015-262 : RESOLUTION TO REVISE THE SUBJECTS AND ISSUE OF THE SYLLABI LICENSURE EXAMINATION FOR CPAs 

BoA Resolution No. 2015-244 : ADOPTION OF THE REVISED RULES AND REGULATIONS FOR THE CONDUCT BY THE PROFESSIONAL REGULATORY BOARD OF ACCOUNTANCY OF OVERSIGHT INTO THE QUALITY OF AUDITS OF FINANCIAL STATEMENTS AND OPERATIONS OF CPA PRACTITIONERS

BoA Resolution No. 2016-05 : RESOLUTION PRESCRIBING ADDITIONAL REQUIREMENTS FOR INITIAL APPLICATIONS FOR AND RENEWAL OF REGISTRATION OR ACCREDITATION OF INDIVIDUAL CPA, FIRMS, AND PARTNERSHIP OF CPA ENGAGED IN THE PRACTICE OF PUBLIC ACCOUNTANCY, (office visitation, quality assurance checklist, Certificate of PICPA membership in good standing)

RULES ON FS PREPARATION FOR COMMENTS

The Board of Accountancy (BoA) is asking for comments on the proposed rules on Financial Statements (FS) preparation and the requirement for the Certificate of FS preparation (“Certificate”).   The draft resolution and rules on this are now posted in the BoA website and have been disseminated to  the various sectoral organizations, including PICPA, ACPAPP, ACPACI and NACPAE.

The draft rules provide, among others, the following:

  1. Requirement of the attachment to the annual FS of a Certificate on the preparation of Financial Statements and notes to the Financial Statements
  2. The Certificate shall be prepared only for issuers which/who have gross sales or revenues exceeding ten million pesos (P10,000,000) for a particular accounting year
  3. The preparation of the FS and disclosure notes is  a practice of accountancy in commerce and industry and shall be done only by  Certified Public Accountants (“CPAs”)
  4. The reiteration of the rule that CPAs in public practice are prohibited from preparing or assisting in the preparation of FS and disclosure note of their clients which engaged them to render attest services for the same documents
  5. The CPAs in public practice who violate this prohibition rule shall be subject to stern sanctions by the Board of Accountancy
  6. The CPAs preparing the FS and the Certificate shall first be accredited with the Professional Regulatory Board of Accountancy after submitting the necessary application and complying with the Continuing Professional Development (CPD).
  7. These CPAs should apply for accreditation not later than December 31, 2015 and comply with the CPD requirements not later than June 30, 2016 after signing an affidavit of undertaking to that effect.

Comments on the proposed resolution can be submitted to boa.secretariat@gmail.com   not later than December 4, 2015.

DRAFT  RULES ON ACCREDITATION FOR COMMENTS

The Board of Accountancy (BoA) is asking for comments on the proposed rules on accreditation of partners and staff of firms and partnerships.   The draft resolution and rules on this are now posted in the BoA website and have been disseminated to  the various sectoral organizations, including PICPA and ACPAPP.

Section 31 of Republic Act (RA) 9298 provides that individual certified public accountants, firms and partnerships of certified public accountants engaged in the practice of public accountancy, including the partners and staff members thereof, shall register with the Commission and the BoA, such registration to be renewed every three years.  Ass presently implemented, the partners and CPA staff members of partnerships and firms are not being registered or accredited.  This provision of law will now be implemented.

In the implementation, all partners and CPA staff members in partnerships and firms have until December 31, 2015 to file their accreditation forms in the Professional Regulatory Commission, and to complete all the Continuing Professional Development (CPD) requirements in the checklist until March 31, 2016. Those who have yet to complete their CPD requirements are given until March 31, 2016 to complete these and  have to submit the Affidavit of Undertaking together with their accreditation form

Comments on the proposed resolution can be submitted to boa.secretariat@gmail.com   not later than February 29, 2016.

DOWNLOAD DRAFT RESOLUTION HERE

Download Accreditation of Partners

comments

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Extension of Accreditation Resolution

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ADOPTION OF THE RULES AND REGULATIONS ON ADVERTISING FOR THE PHILIPPINE ACCOUNTANCY PROFESSION

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