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Across the world, it is estimated that 90% of businesses are small and medium-sized entities. These smaller, less complex entities (LCEs) make a critical contribution to the global economy and comprise the great majority of audits globally. Currently, approximately 130 jurisdictions of the International Federation of Accountants (IFAC) have adopted or partially adopted the International Standards on Auditing (ISAs). The ISAs are designed to be applied to a wide variety of entities, including those whose nature and circumstances are simpler and more straightforward (i.e., LCEs) and those with complex structures and transactions. The International Auditing and Assurance Standards Board (IAASB) recognized that this complexity arising from the application of the ISAs may pose challenges in the audit of LCEs.

On Sept. 15, 2021, the House of Representatives approved on third and final reading House Bill No. 8942, otherwise known as the Ease of Paying Taxes (EOPT) Act.

As businesses prepare to welcome the last quarter of 2021 with hope and silver linings, COVID-19 pandemic-related uncertainties and challenges persist to evolve and disrupt the balance that businesses are trying to strike. The pandemic did not spare financial accounting and reporting of all corporate entities as well. It has further elevated the use of accounting judgements and estimates due to its fluid nature and limited experience in addressing its financial impact. The COVID-19 pandemic is the first economic crisis since the Philippine Financial Reporting Standard (PFRS) 9, Financial Instruments, was adopted and applied for the first time in 2018. PFRS 9 specifies how an entity should calculate expected credit loss (ECL), the estimated expected cash shortfalls on credit exposures such as receivables and other financial assets.

Having connections with a wide array of business partners can go a long way to help your business survive, expand, or even thrive. With work-from-home setups in place, the use of technology is bringing global businesses or entities together in a smaller circle. One way or another, you may find your company associating with a non-resident foreign corporation (NRFC).

In the earlier parts of this Commentary Series, I dwell on the more important reforms and actions that the government must do to make the lives of the Filipino people much better, achieve higher economic growth and improve public governance.

THE Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) No. 99-2021 to address some of the issues and concerns of taxpayers about the consolidated list of VAT-exempt products in RMC 81-2021 and the treatment of input VAT on said products prior to or upon the effectivity of its VAT exemption. This exemption is provided pursuant to the provisions of the Corporate Recovery and Tax Incentives for Enterprises (Create) Act, as implemented by RR No. 4-2021.

So much has transpired in the course of almost two years since the pandemic struck. The health crisis took global economies to a tumble and governments struggled to slowly get back on their feet. It’s a dire scenario that has left investors on a standstill, contemplating whether to continue planned investments or wait until things settle in the new normal. All matters considered, their investment woes are based on well-founded facts.

The digital economy continues to shape up as a significant aspect of commerce. The effects of the pandemic accelerated the paradigm shift towards digitalization and greatly altered the patterns of production and consumption of goods and services. Recently, a product of the digital age has been drawing a lot of interest — cryptocurrency. Once known only to tech-savvy people, cryptocurrencies are gaining traction and becoming more mainstream because of their perceived advantages and the income-earning opportunities they present.