1. DIALOGUE ON THE REVISION OF THE ACCOUNTANCY LAW

2. OUTLINE AND PRINCIPLES * Developments in the local and global community *Survey and Feedback Results *Concept of special law vs general law Legislation provides more permanence compared to IRR *Principle of later law prevailing *Proposed Revisions * Consultations in Luzon, Visayas and Mindanao *Next steps and timetable

3. PROPOSED REVISIONS 1.Structural 2.Mandate of the ARO and BoA 3.Practice of Accountancy 4.Accountancy Examination Matters 5.Special Provisions 6.Penalties and Sanctions

4. 1. STRUCTURAL A. 3 Categories of Audit threshold B. Practice of accountancy under a limited partnership arrangement C. Accredited Professional Organization D. Strengthening of AASC, FSRC and Accountancy Education Council Coordinator: GBS

5. 2. MANDATE OF ARO AND BOA A. Creation of Accounting Regulatory Office reporting to the DOF B.Delineation of mandates between ARO and the BoA C.Prescribing the mandate of QAR solely to the ARO, with the authority of the ARO to enter into MOA with other regulators D. Only BoA and ARO can accredit the CPAs and the practice of accountancy E. QAR fees to be collected from auditors or FS issuers F. Special fund for collected fees G. Responsibility of issuing exclusive accounting standards and rules, including that of government Coordinator: JLT

6. 3. PRACTICE OF ACCOUNTANCY A. Definition of practice of accountancy in light of three new accountancy programs B.Need for accreditation (not necessarily licensing) for accountants of three new accountancy programs C.Need for oversight over the “Specialized accountancy certification bodies” D.Allowing public practice to foreign accountants pursuant to Mutual Recognition Arrangement and/or reciprocity Cooordinator: ASV

7. 4. ACCOUNTANCY EXAMINATION AND PROGRAM MATTERS A.Preparation of questions in data bank can be outsourced B.Foreign nationals who graduate from accounting schools in the Philippines can take the CPA Board examination under reciprocity arrangements C.Qualification of accounting teachers D.Inseetion of three new accounting tracks/programs Coordinator: GTB and EAA

8. 5. SPECIAL PROVISIONS A. Incentives for consolidation of SMPs B.Exemption of SMEs from accountancy regulatory rules C.Whistleblower program D. Title of Acct. and Certified Accountant Coordinator: CSQ

9. 6. PENALTIES AND SANCTIONS A.Penalties/sanctions can be imposed on all those who violate the provisions of the accountancy law B. More comprehensive sanctions provisions Coordinator: SBP

10. Subsequent Activities and schedule A.Conduct Dialogues LocationDate Metro ManilaPICPA ShawApril 20, June 2, June 16 VisayasDumaguete, CebuMay 13, June 10 MindanaoDavaoMay 27, June 18 LuzonSan FernandoMay 4 or 5 Separate FGDs willbe held on variousdates

11. Subsequent Activities and Schedule B. Finalize the list of revisions June 7 C.Draft package list of recommendations June 30 D.Submit recommendations to interested sponsors in Senate and House of Representatives (Congress opens on July 25) July 2016

12. October batch: 258July batch: 289 NCR: 46.1% For more information, inputs and comments : http://boa.com.ph www.facebook.com/professional regulatory board of accountancywww.facebook.com/professional boa.secretariat@gmail.com