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Audit approach overview
Our audit approach will allow our client's accounting personnel to make the maximum contribution to the audit effort without compromising their ongoing responsibilities
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Annual and short period audit
At P&A Grant Thornton, we provide annual and short period financial statement audit services that go beyond the normal expectations of our clients. We believe strongly that our best work comes from combining outstanding technical expertise, knowledge and ability with exceptional client-focused service.
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Review engagement
A review involves limited investigation with a narrower scope than an audit, and is undertaken for the purpose of providing limited assurance that the management’s representations are in accordance with identified financial reporting standards. Our professionals recognize that in order to conduct a quality financial statement review, it is important to look beyond the accounting entries to the underlying activities and operations that give rise to them.
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Other Related Services
We make it a point to keep our clients abreast of the developments and updates relating to the growing complexities in the accounting world. We offer seminars and trainings on audit- and tax-related matters, such as updates on Accounting Standards, new pronouncements and Bureau of Internal Revenue (BIR) issuances, as well as other developments that affect our clients’ businesses.
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Tax advisory
With our knowledge of tax laws and audit procedures, we help safeguard the substantive and procedural rights of taxpayers and prevent unwarranted assessments.
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Tax compliance
We aim to minimize the impact of taxation, enabling you to maximize your potential savings and to expand your business.
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Corporate services
For clients that want to do business in the Philippines, we assist in determining the appropriate and tax-efficient operating business or investment vehicle and structure to address the objectives of the investor, as well as related incorporation issues.
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Tax education and advocacy
Our advocacy work focuses on clarifying the interpretation of laws and regulations, suggesting measures to increasingly ease tax compliance, and protecting taxpayer’s rights.
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Business risk services
Our business risk services cover a wide range of solutions that assist you in identifying, addressing and monitoring risks in your business. Such solutions include external quality assessments of your Internal Audit activities' conformance with standards as well as evaluating its readiness for such an external assessment.
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Business consulting services
Our business consulting services are aimed at addressing concerns in your operations, processes and systems. Using our extensive knowledge of various industries, we can take a close look at your business processes as we create solutions that can help you mitigate risks to meet your objectives, promote efficiency, and beef up controls.
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Transaction services
Transaction advisory includes all of our services specifically directed at assisting in investment, mergers and acquisitions, and financing transactions between and among businesses, lenders and governments. Such services include, among others, due diligence reviews, project feasibility studies, financial modelling, model audits and valuation.
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Forensic advisory
Our forensic advisory services include assessing your vulnerability to fraud and identifying fraud risk factors, and recommending practical solutions to eliminate the gaps. We also provide investigative services to detect and quantify fraud and corruption and to trace assets and data that may have been lost in a fraud event.
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Cyber advisory
Our focus is to help you identify and manage the cyber risks you might be facing within your organization. Our team can provide detailed, actionable insight that incorporates industry best practices and standards to strengthen your cybersecurity position and help you make informed decisions.
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ProActive Hotline
Providing support in preventing and detecting fraud by creating a safe and secure whistleblowing system to promote integrity and honesty in the organisation.
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Accounting services
At P&A Grant Thornton, we handle accounting services for several companies from a wide range of industries. Our approach is highly flexible. You may opt to outsource all your accounting functions, or pass on to us choice activities.
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Staff augmentation services
We offer Staff Augmentation services where our staff, under the direction and supervision of the company’s officers, perform accounting and accounting-related work.
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Payroll Processing
Payroll processing services are provided by P&A Grant Thornton Outsourcing Inc. More and more companies are beginning to realize the benefits of outsourcing their noncore activities, and the first to be outsourced is usually the payroll function. Payroll is easy to carve out from the rest of the business since it is usually independent of the other activities or functions within the Accounting Department.
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Our values
Grant Thornton prides itself on being a values-driven organisation and we have more than 38,500 people in over 130 countries who are passionately committed to these values.
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Global culture
Our people tell us that our global culture is one of the biggest attractions of a career with Grant Thornton.
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Learning & development
At Grant Thornton we believe learning and development opportunities allow you to perform at your best every day. And when you are at your best, we are the best at serving our clients
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Global talent mobility
One of the biggest attractions of a career with Grant Thornton is the opportunity to work on cross-border projects all over the world.
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Diversity
Diversity helps us meet the demands of a changing world. We value the fact that our people come from all walks of life and that this diversity of experience and perspective makes our organisation stronger as a result.
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In the community
Many Grant Thornton member firms provide a range of inspirational and generous services to the communities they serve.
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Fresh Graduates
Fresh Graduates
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Students
Whether you are starting your career as a graduate or school leaver, P&A Grant Thornton can give you a flying start. We are ambitious. Take the fact that we’re the world’s fastest-growing global accountancy organisation. For our people, that means access to a global organisation and the chance to collaborate with more than 40,000 colleagues around the world. And potentially work in different countries and experience other cultures.
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Experienced hires
P&A Grant Thornton offers something you can't find anywhere else. This is the opportunity to develop your ideas and thinking while having your efforts recognised from day one. We value the skills and knowledge you bring to Grant Thornton as an experienced professional and look forward to supporting you as you grow you career with our organisation.
DESPITE the onslaught of the coronavirus disease 2019 (Covid-19) pandemic, which affected global economies, Southeast Asia remains home to some of the growing economies expected to recover the fastest. The region is still considered to be a hotbed for foreign investments. Home to countries including Brunei, Cambodia, Indonesia, Laos, Malaysia and the Philippines, economic experts and analysts see great potential for the region to become an economic powerhouse in Asia despite the setbacks brought by the health crisis.
The industry that Southeast Asia particularly excels at is digital communications. E-commerce, telecommunications, and technology research and development are among the areas that the region is well-known for around the world. One manifestation is the boom of online platforms during the pandemic as businesses cater to increased consumer demand in the Southeast Asian retail market.
The region has a fast-developing real estate and property industry brimming with opportunities despite strict legal constraints and health restrictions due to the pandemic. In fact, there are ongoing efforts from Southeast Asian governments to approve and enhance existing legislations on real estate and property laws. One developing aspect of the property market are REITs (real estate investment trusts). REITs are companies that own or finance income-producing real estate across a range of property sectors. These real estate companies are required to meet certain requirements set by regulators to qualify as REITs. Most of these firms trade on major stock exchanges and offer various benefits to investors.
REITs in Southeast Asia
Singapore is currently leading the trading of REITs in Southeast Asia,as the country has established itself as a hub for these companies for two decades with over 42 listed REITs.
Although the Singaporean REITs market suffered an initial blow because of the effects of the Covid-19 outbreak, it has recently reopened to resume global expansion. Another Southeast Asian country with an established REIT market is Indonesia, which currently has three listed REITs. Its REIT industry is obviously still very young compared to Singapore’s, as Indonesian legislators have yet to attract more entities by offering attractive investments.
REITs in the Philippines
Like Indonesia, the Philippines has just established its REITs market even though the government has approved the REIT law over a decade ago. When the law was approved, companies were hesitant to dabble in the REITs industry due to high friction costs, minimum public ownership requirements and high taxes. In an attempt to revitalize the market, the current administration amended the implementing rules and tax laws to help companies in their REIT formation and consequently, to boost the REITs sector.
For a company to qualify as an REIT in the Philippines, at least 75 percent of deposited property must be income-generating and at least 90 percent of distributable income must be paid out as cash dividends to investors. The company must also be listed in the Philippine Stock Exchange. This new regulatory framework was created to fit current realities at the Philippine property industry and to attract capable real estate companies.
Infusing fresh stimulus to the old framework led to companies becoming more confident in rolling out investments. The first REIT under Ayala Land was listed in 2020, while the second REIT under Double Dragon debuted at the Philippine Stock Exchange this month. Subsequently, there are reports of other leading real estate companies planning to list their REITs on the Philippine Stock Exchange. These REIT listings give business experts hope, as REITs are seen as one of the catalysts for recovery and growth of the Philippine economy.
Opportunities for companies and investors
REITs are usually made up of income-generating properties such as apartments, offices, malls, warehouses and hotels. However, companies that generate income from utilities, toll roads, airports and hospitals can also establish REITs. Among the main incentives for asset owners transferring their income-generating assets to REITs is income tax benefit.
Distributable income paid as cash dividends by REITs are exempted from corporate income tax. This will ultimately increase returns since the Philippines has an income tax rate of 30 percent (25 percent under Create). Besides tax savings, property owners will be able to liquidate the value of their properties, leading to an opportunity to raise capital that can be used for other investment opportunities.
On the flipside, investors should consider buying REITs since they offer passive income outside of conventional financial products such as time deposits or bonds. The dividend yields of REITs are also mostly higher compared to the yields of time deposits and bonds. Moreover, some of the benefits REIT investors can enjoy is owning income-generating assets without the need to shell out huge capital. Some of these assets include rental escalation or tariff hikes, higher occupancy rates or growing demand, capital appreciation, leverage and diversification.
Because REITs are publicly listed and traded, they are liquid and are easily sold. This makes it unique from physical investments, venture capital and private investments, where there are binding contracts and guidelines that must be followed.
Future of the property market
It is only a matter of time before we see significant progress in the property sector. Even with the pandemic affecting the industry, experts are still optimistic on recovery and expansion. Several mergers and consolidations are also projected to further stabilize the sector. Although we anticipate more companies establishing REITs, government regulators can start driving attraction by actively amplifying and improving the benefits that come with it. Monitoring the property market and being aware of key players, as well as seeking advice from credible business advisors will also help investors make more informed decisions.
If real estate and property companies play their cards right in establishing REITs, the Philippines can anticipate faster economic recovery. Business experts predict that infrastructure investments will be the primary force that will drive economic recovery. REIT investments have the potential to generate large amounts of capital,which will fund more real estate projects that can help usher long term growth. Private entities and government regulators must work together to help unlock the potential of REITs for the future of the Philippine economy.
Atty. Lea Roque is a principal for Tax Advisory and Compliance at P&A Grant Thornton. P&A Grant Thornton is one of the leading audit, tax, advisory and outsourcing firms in the Philippines with 23 partners and more than 900 staff members. We’d like to hear from you! Tweet us: @GrantThorntonPH, like us on Facebook: P&A Grant Thornton, and email your comments to anton.ng@ph.gt.com or pagrantthornton@ph.gt.com. For more information, visit our website: www.grantthornton.com.ph
As published in The Manila Times, dated 31 March 2021