March 2017 issue

17 Mar 2017

Click on the attachment below to read the March 2017 issue of the Tax brief: a monthly publication about developments in Philippine taxation.

もし工場長が企業経営者になったら 第8回

13 Mar 2017

もし工場長が企業経営者になったら 第8回:財務に対する客観視(7) - 会社の安全性 -

BIR clarifies: No changes on required documents for ITR filing

06 Mar 2017

This Tax Alert is issued to inform all concerned on the latest policies regarding the filing of Income Tax Returns.

2017年2月号

03 Mar 2017

2017年2月発行のジャパンデスクメールマガジンの過去記事です。

AASC Alert on Compilation Reports Required by BOA Resolution No. 03-2016

28 Feb 2017

AASC Alert on Compilation Reports Required by BOA Resolution No. 03-2016 On February 24, 2017, the Auditing and Assurance Standards Council (AASC) issued its AASC Alert Series 002 of 2017, Questions and Answers on Compilation Reports Required by Resolution 03-2016 of the Professional Regulatory Board of Accountancy (BOA), to provide guidance to practitioners in the Philippines in applying the requirements of BOA Resolution 03-2016, Requiring the Submission of Certification by the Responsible Certified Public Accountants (CPAs) on the Compilation Services for the Preparation of Financial Statements and Notes thereto. The Alert has been discussed with and agreed by the BOA and that the necessary BOA written confirmation on this is forthcoming. Backgroud BOA Resolution No. 03-2016, dated January 19, 2016, requires that the financial statements and notes thereto of an entity shall be prepared either by: the CPA employed by the organizations or the CPA contracted by the organizations to perform the compilation services. Resolution 03-2016 also requires the CPA who prepared the financial statements to prepare and sign a certificate on the preparation of financial statements in accordance with an applicable financial reporting framework. This certificate shall be attached to the audited financial statements that are submitted to the regulatory offices. The format of the certificate is prescribed in Annex A of the resolution. In another resolution, Resolution No. 70-2016, the BOA adopted, among other standards, Philippine Standard on Related Services (PSRS) 4410 (Revised), Compilation Engagements. PSRS 4410 (Revised) deals with the responsibilities of a practitioner (defined as a professional accountant in public practice) when engaged to: assist management with the preparation and presentation of historical financial information without obtaining any assurance on that information and report on the engagement in accordance with this PSRS. Question 1: What form of report should a practitioner issue in connection with the requirements of BOA Resolution 03-2016? When a practitioner is engaged to provide compilation services to an entity, the practitioner's association with the financial statements under PSRS 4410 (Revised) is communicated through a report in writing that includes the elements set forth in paragraph 40 of this PSRS. The report should contain an explicit assertion of the practitioner's compliance with this PSRS. This report shall be attached to the audited financial statements that will be filed with the regulatory offices. An illustrative practitioner's report for an engagement to compile financial statements using a general purpose financial reporting framework is provided in the Appendix of the AASC Alert (see attached). The Certificate in Annex A of BOA Resolution No. 03-2016 applies only to CPAs in commerce and industry who compiled the financial statements of their employer organization. This Certificate is not applicable to practitioners who were engaged to provide compilation services in accordance with PSRS 4410 (Revised) since CPAs in public practice are bound to comply with the reporting requirements of the standards on audit, review, other assurance and related services engagements. Question 2: When should the compilation report be dated? Paragraph 41 of PSRS 4410 (Revised) states that the practitioner shall date the report on the date the practitioner has completed the compilation engagement. Paragraph A62 of PSRS 4410 (Revised) explains that when completing the compilation engagement, the practitioner should appropriately consider the process that exists within the entity for the approval of the financial statements by management, or those charged with governance (TCWG). In our jurisdiction, there is an established process that management or TCWG are required to follow for the preparation and finalization of the financial statements of the entity. Therefore, the completion of the compilation engagement should not be earlier than the date of approval of the financial statements by management. Accordingly, the compilation report date should be the same as the approval date of the financial statements by management or TCWG. See attached copy of AASC Alert. ​P&A Accounting Alerts are issued to keep our clients updated with the latest developments in financial reporting. These are not intended to be a substitute for professional advise. If you would like to unsubscribe, or add a colleague or a friend to our mailing list, please let us know by return e-mail. For inquiries and suggestions on how the Accounting Alert may be even more useful to you, e-mail Mabel.Comedia@ph.gt.com or Jerald.Sanchez@ph.gt.com or call 988-2288.​