BOA Repealed Resolutions on FS Compilation Services

This Accounting Alert provides information about the issuance by the Board of Accountancy (BOA) of Resolution No. 36-2019 which repeals previous BOA Resolutions relative to its requirements on the compilation services for the preparation of financial statements and the notes thereto.

In the special meeting of BOA on March 6, 2019, it arrived at a consensus to revisit the Compilation Services requirement, taking into account the views of the other regulatory agencies, practitioners, and the industry.  Although intended to be attached to the audited financial statements, the Compilation Certificate was perceived to be an unnecessary requirement by some regulatory agencies and other stakeholders.  Further, the requirement was deemed contrary to the intent and purpose of RA No. 11032 or the Ease of Doing Business and Government Efficiency Service Delivery Act of 2018, which mandate the adoption of simplified requirements and procedures that will expedite business and non-business related transactions in government.

Based on the foregoing, along with other considerations, BOA resolved to repeal the previous resolutions on the Compilation Services requirements.

The following are details of the repealed resolutions:

  • Resolution No. 03 (s 2016) - required all business establishments / issuers with gross sales or revenues exceeding P10 million for a particular accounting year to submit Certificates of Compilation Services for the preparation of Financial Statements and notes thereto as prepared by duly accredited Certified Public Accountants, other than the external auditor
  • Resolution No. 68 (s 2016) - mandated the external auditors to monitor compliance by covered audit clients with the requirement to submit the Compilation Certificate and to report to BOA any omission or non-compliance therewith, under penalties provided by law
  • Resolution No. 115 (s 2016) - provided for the extension of the deadline in the filing of application for accreditation and the covered period for the financial statements, as well as the review of the P10 million gross sale/revenue threshold
  • Resolution No. 163 (s 2017) - deferred the implementation of the notification requirement for external auditors under Resolution No. 68 (s 2016) until further consultations
  • Resolution No. 185 (s 2017) - provided clarificatory guidelines for the effective implementation of the Compilation Certificate requirement

The Resolution [to repeal the previously issued resolutions] shall take effect after fifteen (15) days following its publication in the Official Gazette or in any newspaper of general circulation.


Attached is a copy of the BOA resolution.