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 and Program 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. Strengthening of AASC, FSRC and Accountancy Education Council Coordinator: GBS

5. 2. MANDATE OF ARO AND BOA A. Creation of Accounting Regulatory Office B.Delineation of mandates between ARO and the BoA C.Increase in the number of BoA members D.Prescribing the mandate of QAR solely to the ARO, with the authority of the ARO to enter into MOA with other regulators E. Only BoA and ARO can accredit the CPAs and the practice of accountancy F. QAR fees to be collected from auditors or FS issuers G. Special fund for collected fees H. 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.Oversight over the “Specialized accountancy certification bodies” C. Allowing public practice to foreign accountants pursuant to Mutual Recognition Arrangement and/or reciprocity Cooordinator: ASV

7. 4. ACCOUNTANCY EXAMINATION AND PROGRAM MATTERS A.Provision of two tiered CPA examination 1.First Tier Certified Accountant examination of core subjects 2.Second Tier of Certified Public/Professional Accountant examination of specialize subject for each of the 4 accounting program tracks 3. The CPA examination is optional and requires three years of meaningful work experience B.Preparation of questions in data bank can be outsourced C.Foreign nationals who graduate from accounting schools in the Philippines can take the CPA Board examination under reciprocity arrangements D.Insertion of pertinent provisions with reference to the three new accounting tracks/programs, ie. Qualification of accounting teachers, qualification to take CA and CPA examination/s 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. E.Mandatory membership of CPAs in Audit Com F.CA/CPA requirement for government internal auditors and preparers of FS D.Other Government CPA matters 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 C. Disclosure of regulatory findings Coordinator: SBP

10. Subsequent Activities and schedule A.Conduct Dialogues LocationDate Metro ManilaPICPA ShawApril 20, June 2, June 15 VisayasDumaguete, CebuMay 13, June 10, 24 MindanaoDavao, CDOMay 27, July 12 LuzonSan Fernando Baguio, Legazpi May 5 *Separate FGDs *Various discussions during the AWC held on variousdates

11. Subsequent Activities and Schedule B. Finalize the list of revisions July 2015 C.Draft package list of recommendations July 2015 D.Submit recommendations to interested sponsors in Senate and House of Representatives (Congress opens on July 25) August 2016 E. Legislative process August 2016 onwards

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