Exciting changes have come

February 2017

Exciting times in accounting in the Philippines Six Point Expanding Horizons Strategic Plan Future is NOW Globalization trends in our midst Major structural changes ongoing Forthcoming accounting learning and examination tracks New expanded Auditors Report Certificate of Compilation Services in Preparation of FS High Impact Regulatory Direction Empowering the SMP Inspection of offices of CPAs in PP Governance, Integrity and Ethics CPD directions Case Development Program Internship Program Stress Management Program Sectoral, CPA Tracker and IFAC Survey BoA Publications Inspection of schools Summit of Accounting Schools Stakeholders NFJPIA Collaboration Strengthening the professional & sectoral organization BoA Volunteer Program I am Accountant

Six point Expanding Horizons Strategic Plan

Our game plan to exceed global standards

More than 100 projects ongoing

Be involved

The future is now

Future trends of robotics, artificial intelligence, cloud hosting, technology tools and applications, data analytics, cyber security, sustainability and integrated reporting, Block chain, digitalization, XBRL reporting

Previous learning must be updated

Accountancy leaders should lead the revolution of change

Change in mindset and skills set are required

Do your share…read and learn and be ready

Globalization trends in our midst ASEAN MRA and the mobile accountant is coming

Bilateral MRAs soon to follow?

Global accountancy bodies and leaders in our doorsteps

Partnerships with ASEAN accountancy regulators

Assistance from global developmental partners

50th ASEAN celebration

WB ROSC

Major structural changes on going

Revisions in accountancy law

Forthcoming accounting learning tracks

New shift in CPA board examinations

Revisions in accountancy law

Revisions referred to Congress on August 2016

Over 20 proposals - Structural. Mandate of the Accountancy Regulatory Office and BoA. Practice of Accountancy. Accountancy Examination and Program Matters. Special Provisions. Penalties and Sanctions

Forthcoming accounting learning and examination tracks

Four Specialized accounting programs• BS Accountancy• BS Management Accounting• BS Internal Auditing• BS Accounting Information System

Forthcoming accounting learning and examination tracks

Two Level Licensure Examination1. Core Licensure Examination for

Certified Accountants

Forthcoming accounting learning and examination tracks

Two Level Licensure Examination2. Advanced Licensure Examination

for Certified PublicAccountant and Certified Professional

Accountants

New Expanded Auditors Report

New PSAs on Auditor Reporting Standards (including providing for information on Key Audit Matters for some audits) for audits of financial statements for periods ending on or after December 15, 2016 (BoAresolution 125-2016)

Intended to increase the transparency and enhance the information value of the auditors report

BoA has formed Task Force EAR

New Expanded Auditors Report

Mandate of Task Force EAR1. Establish a virtual “Help Desk” that will accept and respond queries

2. Maintain 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. Other matters: Revision of audit thresholds, Integrated reporting and Engagement with key

stakeholders

8. Submit a final report to BoA by May 30, 2017

Communication to the task force can be emailed to taskforceear@gmail.com.

Certification of compilation services in preparation of FS

BoA Resolution 3-2016, PSRS 4410, BIRRevenue Memorandum Circular 21-2016and 36-2016 prescribe that CPAs be accredited with BoA and to sign the Compilation Certificate

CPAs who still have to receive their accreditation document from the BoA can complete and sign the Certificate with the notation that their application is still pending approval in the PRC/BoA

Effective for 2016 financial statements and annual income tax returns that will be filed with the BIR for tax filing period in 2017.

Certification of compilation services in preparation of FS

Preparers of the FS should submit their company’s FS to the auditors not later than two months after the end of the accounting period.

These measures are intended to enhance the accountability of the preparers of the FS and tax returns and correspondingly the reliability of the documents

Auditors have the responsibility to report to BoA thoseCPAs/clients who did not comply with the requirements

New Excelsior RTC Manila TRO case # 16-137284 dated Dec 5, 2016

High impact regulatory directionsMake professional CPAs work better in an environment of fair competition, with ample opportunities and reasonable government regulations and make the erring CPAs change their behavior, leave the profession or be sternly sanctioned.

Collaboration among regulators Taxation of professional Audit thresholds discussion

QAR full steam ahead

Engagement reporting

Posting list of accredited CPAs

High impact regulatory directions

Project RepealMore collaboration with other regulators NOCLAR Schedule of fines and penalties Accreditation of Government CPAs Accreditation of Partners and

professional staff under injunction Renewal of license and accreditation

will be based on birth month

Empowering the SMPs

Facilitate the enhancement of practice management and quality assurance procedures and practices

Provide access to networking opportunities

Extend incentives on PRC and BoA transactions

Enhance the competitive environment

Run after erring CPAs

Inspection of offices of CPAs in PP

Prescribed in BoA Resolution 5-2016

Mandates the inspection of offices of CPAs in PP applying for accreditation

Inspection shall be conducted pursuant to a checklist

Inspector will determine the functionalityof the office and facilities

Streamlining of the process shall soon be implemented

Governance , Integrity and Ethics

Performance Governance System—what’s next

Integrity Initiative—next steps

Code of Ethics—to be updated

ISO certification of institutions

CPD directions

New law and regulations Republic Act No. 10912 PRC Resolution No.2016-990 BoA Resolution No. 358-2016

Gradual increase from 60 to 120 units

Shift from thematic to competency framework

Online CPD courses

Monitors and quizzes

Online monitoring of CPD units earned

Accountancy case program

Initiative to integrate case discussion method in ALL accountancy subjects

Development of local accountancy cases involving actual industry scenarios and issues

Securing leading foreign accounting cases

BoA Internship Program

The interns will undergo the following: (1) briefing, (2) training on BOA work, (3) training on BOA projects, (4) office administrative work, (5) external work, (6) public relations and information, (7) research and reporting, (8) posting in partner organizations; (9) interim and (10) final evaluation and debriefing, and (10) completion event

The IP of the BoA promises a challenging learning and training experience for the interns . They will get a chance to interact with the various stakeholders of the profession and will handle various activitiesin the course of their 200 or more hours internship in BoA.

Their internship will be credited for their academic requirements.

BoA Internship Program

Interns will receive a daily allowance that will be given at the end of each week. Interns will also receive an Intern Kit consisting of an intern identification card, customized shirt, folder, stationery kit, and BOA directory.

At the end of the IP, the intern will be evaluated and rated, and will receive a Certificate of Completion if the intern is able to satisfactorily complete the IP

Undergraduate student of MM accounting school belonging to the top 20%, familiarity with MS Office applications, proficient in communication, can work independently

Stress Management Program

A joint project between the BoA, The Board of Psychologistand their respective APOs

Intended to assist the examinees of CPA Board Examinations

Involves the briefing on stress management by psychologists of reviewees in CPA review centers and schools

Sectoral Surveys Three sectoral surveys (AE, PP, and CI) being conducted by the

BoA since 2015

Provided inputs to the various initiatives of the BoA, including the revisions of the Accountancy Law

PICPA and other organizersof events are encouraged toconduct the survey

Survey is accessible in

AE - https://www.surveymonkey.com/r/CPASurveyAE

PP - https://www.surveymonkey.com/r/CPASurveyPPC I - https://www.surveymonkey.com/r/CPASurveyCI

CPA Career tracking project14 November 2016

In collaboration with

We asked new CPAs from the last 5 batches

0% 20% 40% 60% 80% 100%

October batch: 273

Male: 242 Female: 357

July batch: 291

NCR:

48%

~76% of respondents’ schools are from NCR, Regions 3 and 4a

Profile: 4,076 respondents (as of 14 Nov 2016)

Central

Luzon: 12%

Calabarzon:

13%

Accumulated result of survey data as at 14 Nov 2016 on responses of Jul/Oct 2014, May/Oct 2015 and May 2016 CPA batches

Male: 36% Female: 64%

Jul 2014:

291

Oct 2014:

307

May 2015:

922

Oct 2015:

1,208

May 2016:

1,348

IFAC Surveys and Discussion Papers for comments

IAASB Public Survey to Inform Its Work Plan for 2017–2018 at http://www.surveygizmo.com/s3/2942908/fd0963388e87

IAASB Working Group Paper on Supporting Credibility and Trust in Emerging Forms of External Reporting: Ten Key Challenges for Assurance Engagements at http://www.ifac.org/publications-resources/discussion-paper-supporting-credibility-and-trust-emerging-forms-external

IAASB Discussion Paper, Exploring the Demand for Agreed-Upon Procedures Engagements and Other Services, and the Implications for the IAASB’s International Standards at http://www.ifac.org/publications-resources/discussion-paper-exploring-demand-agreed-upon-procedures-engagements-and?utm_medium=social&utm_source=facebook&utm_campaign=web_share#.WEGAAS42-OU.facebook

IFAC Surveys and Discussion Papers for comments

IFAC Global SMP Survey 2016 at http://ifac.global-smp-survey-2016.sgizmo.com/s3/

IAASB Consultation paper on Exploring the Growing Use of Technology in the Audit, with a Focus on Data Analytics at http://www.ifac.org/publications-resources/exploring-growing-use-technology-audit-focus-data-analytics#

Inspection of schools

Over 500 accounting schools

Over 300 have zero CPA exam passing percentage

BoA mandate to inspect quality of accounting education

Over 70 schools inspected in 2016

Rectification of deficiencies shall be thefocus in 2017

Summit of Accountancy School Stakeholders Gathering of stakeholders and decision makers of the

accountancy school sector

Information on developments must be disseminated

Key stakeholders must be able to respond ASAP

Exchange ideas on how to support each other New accountancy tracks Requirements of the industry Demands of the present and future

NFJPIA Collaboration Accountancy Team Extemporaneous Speaking

Tournament (AtTEST)

Happy Pencil Art Competition

Strengthening of professional & sectoral organization Advocacy of national and local issues

Strengthen governance practices Follow rules Transparency PGS---What’s next? BoA oversight

Train the trainors for CPD courses Become an accredited CPD provider E-news updates of members Expanded directory of members Networking and job/interns matching Permanent secretariat/office Assistance in transactions with regulatory offices Technical Help desk Dissemination of information and projects Financial sustainability Participation in surveys and global initiatives Secure CHED endorsement Adopt a chapter or sector organization More chapters and membership

BoA Volunteer Program

Be aware of what is happening

Communicate these to your colleagues

Volunteer

October batch: 258July batch: 289

NCR: 46.1%

For more information:

• http://www.prc.gov.ph

• http://boa.com.ph

• www.facebook.com/professional

regulatory board of accountancy

• boa.secretariat@gmail.com

October batch: 258July batch: 289

NCR: 46.1%

An exciting and inspiring video

I am AccountantView in YouTube at

https://www.youtube.com/watch?v=9VgtWslzGP8