BOA Chairman Joel L. Tan-Torres Mutual Recognition Arrangement On Accountancy Services

OBJECTIVES OF MRA 1. Facilitates mobility of accountants within ASEAN 2. Enhances exchange of information or networking 3. Promotes adoption of best practices on standards and qualifications 4. Provides opportunities for capacity building and training

Major events on the MRA  Signing of the General Agreement on Trade in Services in 1994  Signing of the ASEAN Framework Agreement on Services in 1995  Convening of the ASEAN Coordinating Committee on Services (to date has concluded 81 meetings)

Time line of the MRA on Accountancy services  2009 start of discussions  Bi-annual meetings thereafter  16 th meeting of the Accountancy Experts Group on January 2015 in Cambodia  Signing of the MRA by the 10 countries last November 2014

Key Features of MRA on Accountancy services  Follows template of 5 MRAs that have earlier been approved and implemented  Has undergone extensive discussion by the Experts Group coming from the ten ASEAN countries  MRA has provisions to safeguard the interest of the local practice

Basic Features of MRA on Accountancy services  Objectives and Definition of Terms  Scope (with limitation on independent auditor and collaboration requirement)  Qualifications and eligibility (first phase)  Evaluation and assessment (second phase)  Permit to practice in host country (third phase)  Monitoring of practice (Last phase)

Basic Features of MRA on Accountancy services  Provides for registration as ASEAN Accountant in the ASEAN Accountant Register  Various bodies involved in phases  National accountancy body  Professional Regulatory Authority  Monitoring Committee  ASEAN Chartered Accountant Coordinating Committee

Safeguards to protect the local public practice  Limits practice to collaboration  Does not allow public practice  Does not allow practice in the form of partnership or corporate form  Requires similar competency, assessment, minimum work experience, continuing professional development requirements for foreign accountant  Requires the issuance of STP

Moving forward  Issuance of IRR  Setting up the organizational structure  Conduct awareness campaign  Training and development to anticipate and contend with competition`

ASEAN MRA Development Roadmap