Accounting Alerts

PRC BOA issued Q&A on Resolution No. 3-2016 on Financial Statements Preparation

Regulations

January 27, 2016

This Accounting Alert is issued to provide additional information about the recently released summary of clarifications (through a question and answer [Q&A] format) on Board of Accountancy (BOA) Resolution No. 3-2016 dated January 19, 2016. The Q&A clarifies, among others, the following:

  • Financial reporting periods covered by the requirement to submit the Certificate 

The applicability of the rules with respect to reporting periods is as follows:

    • for reporting period ending June 30, 2016 and subsequent periods -- MANDATORY
    • for reporting period ended December 31, 2015 and subsequent periods ending May 30, 2016 -- OPTIONAL 
    • for reporting periods which end prior to December 31, 2015 -- NOT COVERED BY THE RESOLUTION
  • Deadline for applying for BOA accreditation for employed or contracted CPAs performing the compilation services

Deadline for BOA accreditation for employed or contracted CPAs performing the compilation services is not later than February 29, 2016. Completion of the Continuing Professional Development (CPD) requirements can be done not later than June 30, 2016 after signing an affidavit of undertaking to that effect.

Accreditation applications can be done through authorized representatives.

  • Regulatory reports covered by the new rules

The new rules do not apply to regulatory reports submitted to government offices and other regulatory agencies, other than those submitted to the Philippine Securities and Exchange Commission and the Bureau of Internal Revenue.

  • Income items that are included in the determination of the P10.0 million gross sales/revenues threshold

These include all receipts or revenues/sales from all sources reported in the financial statements, including, but not limited to, gross receipts or revenues/sales from operations, non-recurring activities, passive income and others.

  • Effectivity of the BOA Resolution 3-2016

The resolution takes effect on February 8, 2016 which is 15 days from its publication on January 24, 2016. 

See attached document for the copies of the BOA press release and the summary of the complete Q&A.

Questions about this communication should be referred to Mabel Comedia or Jerald Sanchez.