THE PROFESSIONAL REGULATORY BOARD OF ACCOUNTANCY

RA9298 - Law that reguates the practice of the accountancy profession in the
Philippines
- gave the Board of Accountancy as the regulatory body

Five rules:
1: Title, Declaration of Policy, Objective and Scope of Practice
2: Professional Regulatory Board of Accountancy
3: Examination, Registration and Licensure
4: Practice of Accountancy
5: Penal and Final Provisions

BOA - the regulating body of the accountancy profession in the Philippines

- under the supervision of PRC
- composition: chairman + 6members appointed by the President which shall hold
office for a term of 3yrs renewable.

APO (PICPA) - 5 nominees for each position

PRC - 3 nominees in order for each position
President - appoint one in each position

*Vice chairman should be elected among its members for a term of one year; in case
of vacancy of chairman's responsibility, vice chairman replaces until a new
chairman is appointed.

*No person who served 2complete terms shall not be elected for another term until
the lapse of one year.

*No person shall serve in the Board for more than 12yrs.

Qualifications of the Members of the Board

Powers and Functions of the Board

> prescribe and adopt the rules and regulations necessary for carrying out the
provisions of RA9298
> To supervise the registration, licensure, and practice of accountancy in the
Phil.
> To administer oaths.
> To issue, suspend, revoke, reinstate COR for the practice of the accountancy
profession
> To adopt an official seal of the Board
> To prescribe and/or adopt a Code of Ethics for the practice of accountancy
>
>
>
>To investigare violations of RA9298
>To issue a cease or desits order to any person, associations, praterships, or cops
engaged in violation ofany provision of RA9298
> To punsih for contempot of the Board
> To adopt a syllabi
>

Ground
*Only the President of the Philippines has the authority to suspend or remove any
member of the Board.
THE SECTORS OF ACCOUNTANCY PROFESSION
1. Public Accountancy - practice of rendering accounting and auditing services to
one or more client on a fee basis
Services:
*Auditing - represents the attest function of CPAs
*Taxation - tax planning and tax compliance. No representation in tax
investigations
*Management Advisory Services - consulting services

Limitations:
*Corporation form of firms is not allowed.
*Certificate of accreditation is required for the practice. -3years of meaning ful
experience and 120 CPD units and accreditation fee.

2. Commeerce and Industry - employed in a position w/c involves decision making

requiring application of

Highset position:

3. Education or Academe - employed in an educational institution and teaches board

subjects and other technically-related subjects

4. Government - employed or appointed to a position in govt or GOCC w/c involves

decion making requiring professioal knowledge in the scoence of accounting or where
civil service eligibility as a CPa is a pre-requisite

THE ACCREDITED PROFESSIONAL ORGANIZATION

Philippine Instituet of CPAs - recognized as APO by the Commission on October 2,
1975 per Accreditation No. 15

Requirements:
> established for the benefit and welfare of the CPAs, advancement of theri
profession, and attainment of other professional ends
> membership is open to all registeted CPAs w/o discrimination
> membership shall include CPAs in all sectors
*Sectoral organizations: ACPAPP, ACPACI, NACPAE, GACPA
> shall have a creditable plan to enlist into active membership w/in 3yrs atleast
majority of the CPAs.
>have adequate chapters/regions in major areas in the Phlippines
*National directors shall be elected in accordance w/ the provision of the COrpo
Code of the Philippines.
*15 national directors apportioned to sectors in the four geograpgical areas (NCR,
Luzon, Visayas, Mindanao
>
>judicious and prudent in the mngt of its financial resouces and submit audited
annual FS
> shall have full time career Executive Director who shall implement the policies
promulgated by the PICPA Board of Directors and shall have direct supervision over
the PICPA Secretariat.
> duly registered as a non-stock corporation or association by the SEC
> paid the prescribed accreditation fee

*PICPA shall renew its COA once every 3yrs.

***************
PREFACE TO PFRS

NATURE, SCOPE AND STRUCTURE OF PFRS

Philippine Finanacial Reporting standards
- are GAAP
-set out recognition, measurement, presentation, and requirements dealing w/
transactions and events that are important in the prepartion and presentation of
financial statements
- on the eyes of non-accountants, PFRS are the laws of accounting
-guideline; principle based rather than rule based

Scope of PFRS
- apply to all profit-oriented, entities regardless of ownership, prapring general
purpose FS (ie. external FS)
- Special purpose reports are outside the scope

Structure of PFRS
1.Title of PFRS
2.Objective
3.Scope
*Any limitation of the scope of PFRS is already stated and made clear in the
standard itself.
4.Paragraphs (have equal auithority)
>Bold type - indicate main principles
>Plain type - indicate supporting principles

STANDARD SETTING BODIES

Financial Sustainability and Reporting Standards Council
- standard setting body in the Philippines
- Sucessor of ASC
*any mem,ber of ASC is not disqualified from being appointed to FSRSC.
- pronouncements: PFRS
- Creator: technically PRC (BOA)

International Accounting Standards Board (IASB)

- standard setting body internationally
- successor of IASC
- Pronouncements: IFRS
- Creator: IFRS foundation

Monitorung Board >IFRS Foundation> IASB

IFRS Foundation:
- Controlling body of the organization composed of board of trustees
- appoints the technical groups and advisory groups
- raises fund for the whole organization

Monitoring Board
- Trustees are publicly accountable to teh Monitoruing Board
- appoints the trustees of the IFRS
- assures public accountability of the IFRS foundation

IASB
- the heart of the organization as it has the sole responsibility of establishing
and reviewing IFRS
- has 14 members that are appointed by the trustees w/ initial term of 3-5urs
- appointed chairman automatically becomes a Chief Executive of IFRS Foundation

IFRS Interpretations Committee (old name: International financial Reporting

Interpretations committee)
- responsible to develop interpretations for approval by the IASB
*the nature of interpretaions has the same authority as the IFRs; guiding
principles; create clearer guidelines on certain areas na hindi natamaan ng isang
specific na IFRS
- directly reporting to IASB

Working Groups are part of the technical groups of the organization and are
considered as the part of expert task force for individual agenda projects of IASB

IFRS Advisory Council

- formal advosoyr bidy to the IASB and the Trustees of the IFRS Foundation
- advises on agenda and priorities; create advises and recommendations

Accounting standard Advisory Forum (ASAF)

-advises on the technical-setting activities of the IASB

FSRSC
- Creator: PRC-BOA
-pronouncements: PFRS
*PFRS is collectively known as PFRS, PAS and Philippine Interpretations.
*Interpretations are principally issued by the Philippine Interpretations Committee
(PIC) which was formed by FSRSC in 2006. PIC members are appointed by FSRSC
-composition: Chairman + 15members
*chairman and all the members of FSRSC are appointed by PRC upon recommendation of
BOA in coordination w/ APO, w/ a term of 3yrs and are renewable for another term.
*FSRSC members srves on a part-time basis w/o compensation; only honorarium for the
hours spent during meetings.
*The chairman should be a senior practitioner in any scope of accounting practice

**FSRSC was established by PRC under the Implementing Rules and Regulations of the
Philippine Accountancy Act of 2004. FSRSC establishes generally accepted accounting
principles in the Philippines. The Chairman and members of the FRSC are appointed
by PRC.

ASC
-Creator: PICPA
- pronouncements: PAS
- composition: 8 members including chairman

FSRSC vs. ASC

STANDARD SETTING PROCESS

PFRS are developed through a due process that is also a social process because it
involves accountants and various interested parties and individuals.

Due process
1. Consideration of pronouncements of the IASB
2. Formation of a task force when deemed necessary to give advice to FSRSC
3. Issuing for comment an exposure draft approved by a majority of the FSRSC
members; comment period will be atleast 60days unless a shorte period (not less
than 30days) is considered appropriate by the FSRSC.
4. Consideration of all comments receievd within the comment period and when
appropriate, preparing a comment letter to the IASB.
5. Approval of a standard or an interpretation by a majority of the FSRSC members.

***
IFRS is a global phenomenon with an objective of creating a uniform accounting
standard across the globe.