Republic of the Philippines Professional Regulation Commussian Professional Rogue Hard of Accountancy Resolution No. 114 Serias of 2018 ee’ AMENDMENTS TO RESOLUTION NOS. 2015-274 AND 2015-275 ON THE SYLLABI AND TABLES OF SPEGIFIGATIONS (TOS) OF THE SUBJECTS IN THE BOARD LICENSURE EXAMINATION FOR CERTIFIED PUBLIC: ACCOUNTANTS (BLECPA) WHEREAS, the Professional Regulatory Board of Accountancy (Board) issued Resolution No, 2018-262 preseribing the six (6) new subjects of the Board Licensure Examination for Coffied Public Aecountants (BLECPA), as fellows: Financial Accounting and Reporting: Advanced Financial Accounting and Reporting; Management Advisory Services; Ausiiting: ‘Taxation; and Regulatory Framework for Business Transaction; WHEREAS, the Board subsequently issued Resolution Nos, 201-274 and 2015-276 on the syllabi and Tables of Spectfications (TOS) of the six (6) new subjects of the BLECPA: “WHEREAS, the changes in the BLECPA subjects shall be initially applied in the May 2016 ‘schedule of tha licensure examination, WHEREAS, it was noted during stakeholders dialogue that the topies: (1) Code of Ethics for Professional Accountants in the Philippines; (2) Republic Act No. 9298, otherwise known as “Philippine Accountancy Act of 2004"; (3) and Etfectiva Communication to Stakenoiders —~were not reflected in the syllabi and TOS of the six (6) new subjects of the BLECPA; WHEREAS, the Board acknowledges the importance of these three (3) topics in determining the entry-level competence of new GPAs, and as such, should be made integral components af the BLEGPA: WHEREFORE, in view hereof, it is hereby RESOLVED that amendments be made ta the syllabi and TOS of the aforementioned subjects of the BLECPA, to reflect the following sshanges: 1} To include the topic Effective Gommunication to Stakeholders in all af the six (6) subjects of he BLECRA; and 2) To include the topics Code of Ethics for Professional Accountants in the Philippines, Republic Act No. 9298 or the Philppina Accountancy Act of 2004 and lis Implementing Rules and Regulations (Board Resolution No. 71, Series of 2004) in the subject Auditing, FURTHER RESOLVED, that the individual subjects in the BLECPA be composed af two (2) ‘parts with the corresponding percentage waights: Subject Theoretical PracticaliPractice! i: Competence Financial 30% 70% fecouning and | | Reporing | Advanced 30% | 70% Financial Accounting and Rleporting Management 30% L advisory Services | Auditing 50% Taxation 30% Regulatory Framework for 70% Business Sewage bens = P.O. BOX 2038, MANILA‘Shrvue svluas ano vadc tobe Soecent ns og FTE ‘his Resolution shall take effect immediately ater its publication in the Ciicial Gazette or in any newspaper of national circulation. Let a copy ofthe same be further furniched the U.P. |Law Center, Commission on Higher Educatian (CHED), all universitios and schools offering 8. &. in Accountancy, Beard, Office of the Scorctary to the Profeasional Regulatory Boards. Records and Management Division, Rating Division, Legal and Investigation Division, ail Reglanal Offices and such other offices for infarmation and guidance. ‘Done in the City of Manila, this 25thvay of Aci 2016. JOELL, TAN-TORRES Chairman GLORIA T. dives ze Vice Chairman Cftctchs GERARD 8. SANVICTORES ELISEO A AURELLADO \ Member Member omg Sua CONCORDIO SAOT lemnber Memibfer vt ie Member Attested by: Kihei vo Mac. ATTY, LOVELIKA T. BAUTISTA Officer-in-Charge Office the Secretary to the Professional Regulatory Boards APPROVED BY: Ar 724 TEOFILO S. PILANDO, JR. " chien jRveckf ‘te ANGELINE T. GHUA CHIACO ve Commissioner | Gommissioner 0.civ0.co1.cowPAB.ACE:D LAUD She TSRATCEDAALITEAILTSTABLE OF SPECIFICATIONS FINANCIAL ACCOUNTING AND REPORTING Toples/Outeomes Weight No.of ‘tems ‘Guallfictions Descriptors (U8 and L7) inowedge Sila, Values | Appiaton bgreeof independence (20%) | Rementorog (KSV) (008) (som) ‘cesaoding | Appiation | Mshog_| Eating | croton | ‘The examinees must be able t: ‘Development of Financial Reporting Framework and Standard Setting Buties, 2 ‘Regulation ofthe Accountancy Profeslon {Lt | dent the fet of te IASB othe FRSC ‘Accounting Process 2.1 Adjusting Enties 2.4.1. Apply accrual has for adjusting entes (acorual cr dolor) 22 Aecounting Cycle 2241, Muskate he accountng cycle Presentation of Financial Stalaments 3.1_| Conceptual Fremewor cribe the base objective of financial statements lative charactnstcs of nencie formation irqush the olen of franca salerments, “4 _Disingush Sania capita rom phys! canal ation of Financia Staternenis ecb ye eer oars ol real alone (OAL ‘2 Compute euert and nor-cuent assets 3 Compute urea bits and non-cument abies 234 _Gomgute profit coninving opertions. 335 _Compute ravens, expenses, or profi oles from dieontaued operations "2.36 Compute cash fbas from opereing, ewesting a nancing ates \e 7 W357 Bai rs Fo using events ater he eparing Lp ang Gash Equivalent Assets Deserve he nau and esurtnen of ash 2nd cash equ “1.2. Resonelle bank balnce and book balanos of cash Loans and Receivables {Financial Asets al amorized Cast) 21 Desonbe fhe ature and classifcaton on he fnancil atari oF receiabies “TER Measure ae onsale and ong rookies. Invesiments in Debt Intnmerts apd investments in Egat insures 143.1. Wentiy the notureot financial asees included i te classifcaben Finance ‘Assets af Fat Vaue trough Profitor Lass [FS Fornulte enbiesioroeognon, measurement and disposal of Equty 45.1 Describe the base ur t aemtrig Sa 145.2 Formulate te base ena for recog, measurement! of derivatives ‘neenloies 5.1.1 Describe the ale of aventoties using the definition of AS 2 15.1.2 Compute the cas of inveniries bated on FIFO, weigted svewge, spect enon metas a5.13 Apply tho lower ofcast and pet realizable value fr messrerart ot ivenioses or costof goods sol imatng pracadures (average ralal inventory or ross pet in rnasuag invents shoige or loss hom catsbophe Property, Pint and Equipment of propety, plan! and equipment and the npiceble 8 fe tal recognise, measurement and [5.22 Deeermina he inti recognition basis foc PPE eoquired fr cash purchase, “exchange, deter paymorl, self constuction of canaton 1523 _ Apply at appropiate depreciation method to maasuze caryngvale ol reneny, plana eupren 524 Evalvale whetheron tem of PE is imacied, lavestment Property 531 Deserhe the natue of nvestnent properly 153.2 _Agpy to measunent principles appieabef inastnant propery Intangibies 54,1 Doscrite he nabue ofintangbe assets end the apsicable reagan pins formal recognition, measurement and erecogriion 542 _Apmly the pinciges for lasing expendiutesrelang to resexch ad development of niangble assets Aa Record subsequent expendises relating fo wang assets nd ‘compule amorzaion er earrying amount. Biological Assets 535.1 Describe tie nate ofbiiogcl assets and the applicable recognition principles for nal recogniion, measurement and dorecagniion 552. Accourtforbiokical assets a nial eeagnion Non cent Assets Held Sale 4 J HO[561 Analy he clerinclasiing te asets 0 Hed for Sao ond ental end seenuent measurement prices ies and Non-Franci! Liabilities 10% pial Linbites | Record accounts payable and other rade labs 16.1.2 _Agpythe pencils fori! ecogriinh and sutseavart measurement of shorsterm and ingterm fnencial abies 15.13 _Deeeribe the nate and tee forms of debt restructung, B14 _ ply the princes or derocognton of fnancal bites ial init mula eniresior premiums and warranties, ‘Megsuve unoarnet revenues for ait certfiates and sutsarissons Provisions and Contingencies 83.1 Deine cotingentisbites,comiogent eel, and provisions (623.2 _Aoply he recognition criteria for lables end assess the sets of uncertain relng fo provisions, contingent IsbIvse and cortingent assets. 5:33_Apoy mensurerent ciples Sr powsions ‘Share Capital Transactens 2.11_Desee be nate, cogiion, raasuoment of sae cap Recon recaptacaion and quest reorganization jens 1_Daecive tha cfizent types ofc, 7.2. Anaiyze te effecs of evdonds on assets, bails and equ Relained Earings yO Hee[ia _Descabe the nature cf vetsined earings 732 analy heals of igen, ptt, change in asman ina Pa sroreton opr pod 0s, recapitalization on rained aig. 7_| Other Comprehensive Income [41 ently te lamar thataflet oer canpreberse neame 75. | Book Value per Share and Earnings por Shave. 7.5.1 Describe the sigs 8 cof badk value per shar. ee Evaluate earings per share infrmaton (oeucngeivion of EFS 7.8. | Share-based Payments se Destr the nau and types of shar based pyeent tansaons 782 Fropre eit foregut) sete, cast-selte andaquly sod wih cosh | arnt skre ted payer asacios. Zorn Cost, Leases, nme Taxand Emplayt® Benes osm | 6 1 s | 8.1 Borrowing Costs 21 Describe the nakve ofborowing cons, ently he crea for ‘eapitaicing bosroving costs. _ B2 Leese 2.1 Apply exoaring stand apglabl fe opening ase £7 Aply accounting tandonsaplcabl o farce ests 03, | Income Tax ‘33:1 Detinguih accounting profi for taxable pot 1832 Meosure and record income tmx payable 133.3 _ Measure and xed detarred portion of income ts, 34 | Empioyee Bene. Bil} Measure employee bene ost under defined benef plan. “LAD Measure and decloe resuing defn bane ably (ase fe {interim Reporting 2eew | 2 4 1 sey ae ibe he pee wna atone isin pets. 1 92 | Apply the applicable pincples for recognition of revenue and expenses {orintri reporting uses. Ny 7 hh511% Deseribe simpifed repotng requirements applicable to SMES. Dace he peculari: in reporting property, clan and equipment. | invesiment propery, innpble esses, iological assets and asses het for | by an ent catapotonc 25 SHE ‘Appy the pricipos oe mporting ivestrenism equity ard debt secu applicable fo SMES Construct the fancial Satements of SMES | Aooly fective Commurication io stakeholders Anerual Describe the accrual bas of accouiing, denliyagils purpose Compt pot sed or sg-enty meted and recente wih ‘oli using tha ransactin aporoach, (Conver cash basis revewes an expenses ln accrual Basis revenues and eiponses 100%, Wit hy TOTALTABLE OF SPECIFICATIONS ADVANCED FINANCIAL ACCOUNTING AND REPORTING GUALFIGATON DESCRIPTORS WHOWLEDGE, SELLS, VALUES TAPFUCATION (50%) DEGREE OF WDEPENDENGE a ‘OUTCONESITOPICS. Na Weight | of toms Remembering Understanding Application eal, Evaluating | Creating ‘The examicees must be able to: Partnership Accounting 14.20% | 10 17 Nature Scope and Objecves 14-4 Desorite na natu scope and objecies of partersip accounting and conceptual -dffrentile rom single roptctorshig and corporation accounting 151.2 Waniy and describe the concepts. principles, muss, practices and procedures 72 ate of ais 414 Compute anount of setermen othe partners ater guatng the partnership unde (a) urnp-sur iquidation a (b} installment liquidation: 20 Corporate Liquidation 7m | 4 21 Determine te ovr of priory ofthe clamants ta the cammpany assets of corporation subject “Tlit Arsogemeats PERS 17) s7m | 4 1 Sot Operations 9 by & orDesert the nature and scope oot operations Dillteniste from Joint Venture and Sushess Combleators 41 Apply the standards, panciples ond methods in accouting for joint operations sraneactens scribe the natu and scape oft ventures erent irom Joint Operaions and Business Conbinetions ‘3 Apply fe stendards, principles and metnogs in sconuning for jin venture brarsactions Revenue Recognition 14208 17 staimert Saks 41.8 Deter point even region under nstalient sles, 4.1.2 Compute the grass pal rate and sconunt ar he realeed goss prot fr ach year of sales. ani he deferod goss account balance al the end of tre year 4.1.3. Determine ard compute the G of Repossession be recorded or recog 42 Long=term Consiucton Contracts PFRS 15 42.4 Prepare journal entries and revenue, costs and grass oft 42.2 Recre topropernncalsament pasate py the aplcabe PFS fandares 43 Franchise Operators — Franchises point of view -(AS.18 / FRS 15 43.1 Determine revenue, costs and grass profit and apply sxcounting techniques nd Procedures in processing franchise fee and relatad franchise transactions 43.2. Prepare joumal-enties fr franchise transactions 50 ‘Accounting for Home Oifice, Branch and Agency Transections ane 5.1. Compute and reancie recprocal accounts and prepare indfual and combined foaneil siatzments 52. Prepare joumalenties or ransactions cn the books ofthe Heme Ocean the Branch 53 Account fr sposal procoduraa ih ‘and branch transactans (Inter branch 571% ‘©1 Describe the nature soope and cheracterst 8.2 Determine costo acquistion af th acquirer,‘G3 Recoonize acquied assets and tables, compute gooduil organ From a Bargain purchase 748% | 5: 83 Dotemine nel come, other camprshersive income, and retained earningsiconmen socldidends atnbutabe to Equity Holters of ParentContaling or Parents Inert end, consolidate group: 8.4 _Ascertan the prper presentation ofthe consolidated fnancalstetements Foreign Currency Transactions stn | 4 ‘dentiy the applicable rate for foreign curency iransactons and hedging operations. 12 Determine the gn ors on oegncurteey wansactons ad espn operators 93 Asootan th goperfnancal sierent presentation on te oe curancy_ansactons and hedging opuatons. 10.0 Translation of Foreign Currency Financial Statements (PAS Z5/PAS 25) sin | 4 sm bw Funconal Cumency to ie preseniation Curency ‘fom Foreign Cunency ta the Functional Cirency ascertain the groper fnancal sisterenis (Functional curency is the cumency of 0 janet ad aeotTiaeia voporingnglatone of ioe organizations (VHO) other heath care organizations ‘Colleges and Universities Other rot for ~ prof rgeniaaon such a churches, musnoms, ratemiy ‘section, ae12.0 | Government Accoualing - General Fund pase | 2 1 a pfs Govan ASsoning and & DATOS ie (Books of Nana! Goverment gery) 73D | Other special Topics ale : = 1) acount far insurance contracts by Insurers (PFRS 4p 2 Aeccunt lr bul operate & rans (FRIC 12) 3 Acount and recré business taneacionsappvng be IFRS le SMES ly efecve commuricaben ocala, ie recites 429% | 10 1 1 5 2 Compal Cost of Goads Manufactured and Sold ‘Aceounlfor spoiled units and wore costs ‘Alocale service department cost ost Syston Determine cust of production under FIFO and Weighied Average Method: coou fr spolege fost unt) both for nara and abnor pologe Apply ist intima costing sytem ‘Compu aut of rata be backfushed fron RIP to ited goods Frepat the journal entries | 4 Activity Costing System 144.1 Apply Beil Based costing Sytom Compe total manufacturing cost and cue per uniting ABC Compal and locale jon (common) costs af he point of splot ‘Accoutl for costs ater salt of Deter tnal cost and groox profi (Compu and account for by-products reper journal atniae 1 Casing ‘Cormpute Direct Matera, Dect Labor and Factory overhead using Standard Costing 14.82 Account forthe Variance of hoped vs Aetual Cost of Dict Materials, Labor and TAFacto Ovaiiead 1483 Prepare journal eniies using standard costing TOTAL wo | 70 a ATABLE OF SPECIFICATIONS MANAGEMENT ADVISORY SERVICES = (QUALIFICATION DESCRIPTORS WNNOWLEDGE, SKILLS, VALUES | APPLICATION | DEGREE OF INDEPENDENCE (G05 | (50%) (2058) No. TOPICSIOUTCOMES sweigit | ‘ot | Remembering | Understanding | Application | Analycirg | Evaluating | croating ‘The examinees mustbe able fo 1 t TO | Management Accounting z & a es |i a 14 Describe the objectives, rola and scope of managemet 5 - a 2 1 3 2 1 4 a 1 2 2 ¥ 1 a 1 3 1 1 1 3 1 1 1 {3 Bategenest seouring Soacipls WT WAigaae fr performance measurement hem GAR Sy1 raed iri be AT es of ac decison ly the dscaurled cash flow method and the IRR. mathod in determining cash Baws and in making business dacisions conceming capil expantures, Financial Managemant e| i B ily and desiibe the nature, objectives and candidate shall apaly the Phibppine Standards on Auditing (PSA) and ether eegulatory laws. end regulations in effect al the tne texan, AvomTNs PROBLEM \\. Tie patos canst potency in yng suc sets, ectnigs, a grocers to apa inert audit of « medium-sized serves, rading or manulacturing concem, Candidate shall be able to plan and perform an aud, analyze dala fr possible eros and inegulariies, formulate adustng enties. rasche audi issues, prepare atslit working Papers and complete the audt melusing te preparation af the aut epat_In al the areas incited, the canditate shal apply the Philippine Standsrs on Auiting (PSA) and otner regulatory Laws: and requations i effect at he tne of examinaton “The knawlege of the candidates inthe competencies cited above és that of an entry level accountant wo can acres the fundamental requirements ofthe various parties thatthe candidates wile interacting professional inthe future The andiatos must also be able ta communicate efectvey matters pertaining tate avd work that il be handled Only now standards, leturpeetaons and other esuancas shall be inched inthe examinations these are in effec for atleast sir (6) months st he date of th examination, il a Sate ai s ae SS 1D fundamen of Auding ad Assurance Sarvs Ss 1 Ineducton fo assuranee engagemits 1.11 Nature, bjctive and etoments 1.12 Types of assurance angapemarts (aut, reves, citer sssurance engages) 113 Assurance senie vis-a-vis atest saveas 1.2. Inboduction o euding 4.2.4 Nature, philosophy, and objectives 42.2 Types ofaudit 122.1 Aocording to nature of esserionidata (inancial statements audit operatonal audit. compiiance ui) 1222 According to types of auditor (extemal Indapindent fancal salements aut, intemal sua, government au) 1.22. Philppine Accouruney Low and is iplementing Rakes and Regulators 1.2.24 Gade of Ethie for Professional Accountants inthe Philipaines 1.225 Ettectve communications to sioehoers 2.0 The Financial Stetements Audit Client Acoeplance, Aut Planing, Superson and Monitoring 2.1 Overview ofthe aut process. 22 Pre-eagagement procotures30. Se 40 23 Scope and puposes ofa planning 2.1 Essen planning requremenis 23.1.1. Knowledge of tho business 2312 Prelimanary analyteal procedures 2313 Materiaiy 23.14 Assessing and managing aud sks 73.1 5 Overall auitplen and eu pragram fexpens, internal auctor, aber independent ausrs) 2.4 Direction, supervision and review Understanding the Entty and ts Enviroment Including its Intemsl Control and Assessing the Rises of Matera Msslatoment 31 Industry, epulatony and other extemal factors, incising te appiesble nancial reporting ftarmawo, 3.4.1 Nature ofthe ensiy 3.41.2 Onjecties and statogis and relatod business risks 5.1.3. Measurement and review of the enty’s nancial pertomance 3.2 Internal cari 3.2.1 Base concepts and elements of intemal contol 3.22 Consideration of accouring and infernal contel sysiers 3221 Understanding and doeumentaton 3222 Assessment of conta risks 32221 Test of conte 32222 Documentation 3 Asuessing the risks of material misstatement 331 Fraud and eros 33.2 Risk assessment procedures 333 Discussion among the engagement teem 3.48 Sgnibeant risks that requis special aud caneiBeration 3.35 Risks forwhich substantve prosedures stone donot provde euficent appropiate audt evience 336 Ravisionof sk assessment 34 Commuricating wit those charged with governance and management Audit Objectives, Procedures, Evidences and Documentation 44 Nature and significance 4.2 Evidential matters: TA tt process ecrigus \ +44-Aua working papers 50 Cont hud Pos Aut Responsiics 8 = ce) 5:1 Completing tbe auc and auttepor preparation S$ 5711. Anayicalpocadures for overal review 54.2 Relaied party rassacions 513. Subsequent evens evew 5:14. Assessment of gang concem assumption 545 Obtaining clon’ oprosantaion ate 5.1.6 EvalisingSrelngs, formulating an opin ans seeing the aud repert 52 Postauci esponsbites 52.1 Sumequent discover of facts 522 Suequert discovery of omited procedures FReparts on Aut Financial Statements 4. The ungualifed audios report 8.2. Basic elemenis of he unqualfied auto’ report 63 Wotited autitors report 163.1. Mattars that do not afiet the auditors opinion 63.2 Mattos that do lect the auditors onion 6. Reporton comperatives 7.0. Audiing in @ Computerized Infomation Systems (GIS) Enrranment7 Inemnal contin & IS erweonment 74 Infreduction 7.42. Impactef computers on apcounting and intemal conro syste 7121 General contis 74.22. Appication controls 713 Unque charactaistes of specie 18. TA Stand alone TAZ Ondine 71.3. Database system 7.2 Basic approach tothe aud of CIS environment 7.241 Inreduction 7.22. Etec of computes onthe audit process 7.23. Computer assisted cuit techniques 8.0 Othe Assurance and Non assurance Services 411° Procedures and epaiscn special purse aut engagements BT General consort 8.1.2 Aust of nancial ststements prepared in accaranes witha eompeahencive basis of aecounting eter than GAAP inthe Pilppines 8113 Auttofacomponet of nancial statoments 8.14 Reports on corpiance wih conectual agreements 815 Regors on sunmarzedfancial siemens (82. Non audit engagements: proecues and repos 52:1" Examination of prospective tarot niomaten 8.22. Engagomants to revew faancal statements 83. Non assuarce engagements 83.1 Engagerants te parm agreed-soon procedures regarding franca infrmation 83.2 Engagements o comple tari nformaten AUDITING PROBLEM 1.0 Eidence Accumulation and Evaluation ~ Substanive Tests of Transactions and Balances 1 Ault the revenue ond recep cycle 441 Aud af sles and revenue transactions 11.2 Audt ofreceivable balances 11.3. Audtofcash receipt ransactions/ cash balance se nines amore 3 1.2.1 Audit of acquisitions end purchases 41.2.2 Audit of payrof irensactons 1.2.3 Audit of cash disbursement transactions:/ cash balance peer 1.2.5. Auctatrede payable balences Ee tems he 13, Aur of production cycle 13.1 Auditof conversion acihites 13.2 Audio iveniony balences: work-improoess and fished goods 13 Audio costof goods sol talance 14 Aust ofthe faancing ele 144 uct of nascing eels wansaetons 162. Audit rondradelabilty balances 143 Aust of mterest expense and fhance cot balances 1.44 Aust of equty accounts 15. Aut ctinvestng ele 1.1 Audit investing transactions= YS t \ 152 Audiol investment account bakances 1153 Audit of propzty, plant and-equipment account balances 115. Audit of intangible account balances 1 BAuuit of eash botanees SD weB THE CPALICENSURE EXAMINATION SYLLABUS TAXATION Effecive May 2016 Examination “This sobject covers tne cardidtes know of he pincpkes wd anceps a nanan! the prac appt ese Ppincipies and concepts. Carcidates are expecta to know the National inernal Reven vs Code (NRC) prousions on income tat, businass tanes (vate added and percentane taxes), estate tax, donor's tax, the Tarif and Cusloms Code. Local Government Code on ical lates; preferential tx oF tax exemption provisions and taxes pertaining 0 santo ctirens and persons with disabity, Board of Inesiments, PEZA, BMBE, various Tax Treaties and otter special aws and issuances thal ay be legsiated the future. The candidates must be familiar wih Swe Implementing Rules and Regulations, iar, 95 and oiher issuances pertinent {0 the iplementafon of the various taxation laws earier specified. The candidates ‘haul know the taxation principles inthe decisions of the Court ol Tax Appeats, Cout al Appeals and Supreme Cour ‘The candidates must have 2 woeking knowledge to comply with te various taxation measures, Complance includes, emang thers, computation of ta lables, accorpishing tx retume and forms, valent of tx icant bens, submission oF tax elated requistory and registraonrequiements arc dealing wih te varous ofices involved in tation, The candidates must so be femiiar with te taxpayer rights end remedies, hending disputes on tax issues, hrowing the Sg er ane een ere ee merece Se The candidates must aso beable to communicate effectively mats paaining tothe taxation work hat wl be Randle Tha knowedge ofthe candidates in te compotoncies cud above is thal of an erty level accountant whos can acess the ‘fundamental requirements of the varous partes that he candies walbe Interacing professionally ithe faure, ‘Only new ams, enplementng nes and reguiatos,jursprudences and other issuances shall be included in he examinations if tiene are in effect for at east sik (6) months athe date of he exenaton, $ Tax res shall be providedin he exarinafin when cendidates are requres to compute taxes The examination shall have savenly (70) mutplecheice questions. The sylahus for tho subjects presented below. xe \ FOS PRINCIPLES OF TAXATION MS Ti Mra spe casa ten neces 12) Pinsotsund i gar 7 Linttos on be pou oan 14 Taxation vs. xaveitariee 18 Stusiplece of taxation 16 Double taxation 17 Legislation oftax laws 18 Impacto taxes in nation building 19 Ethealtaxcemplianee ane admiration "140 Orgenzation ofthe Bureau of Internal Revenue, Bureau of Customs, Local Goverrnent Tax Calcting Units, Boart af mestmeats, Bhlppine Feannmic Fone Authoty 20 TAX REMEDIES 21 Remoties of the goverment 24.1 Definition. scope, preseripive period 24.2 Administrative remedies21.3 Judicial actions 214 Addons o Tax (Surcharge, interest, Compromise penalty) 215 Other sanctions (Criminal penaltes, Closure of Business, Collection of Delinquent Taces) 21.6 Powers ofthe Bureau o Internal Revenue 22 Remedies ofthe taxpayer 22.1 Definition, scope, prescriptive paid 22.2 Taxpayers ighis 29% Administration ramedios (Protesting of Assassment, Racounyy of sucess or ennnscusly pad taxes, Request forthe comaronise, abatement or refund sr credo taxes, Request or ning) 224 uci remedies 23. Expanded juiedicton ofthe Courtot Tax Appeals 3.0 INCOME TAX 34 Taxpayer ond tacbose 341 Individuals 31.2 Corportions 313 Partnerships. 314 dointventues 318 Estates and tuste 318 Co-ganerships S17 Tacexamptinariduats and erganizatens 32 Gross income 321 tncusions in he goss income 322 — Exclusionslexemotions rom grass income 323 nea from compensation 3.24 Income fom business 3.25 — Passiveincame subject to final wthholing tax 328 Capi gains 3.3 Deductions irom gross income 33.1 lemized deductions 33.2 tems not deductible 23.3 Optional standard deduction 134 Deductions alowed under sportal iam CAE 34 Accounting periods \ 35 Accounting methods \ 35.1 Reconcllaton ofineame unde PERS and income under tax accountng \._ 38) Texrumprearaton ating ant amen 381 Mana ing 38.2 Bletronic ling and E-submission 3.63 Large taxpayers and nonarge taxpayers 3.84 Income tax creas 365. Verwe and ime of fing of tax returns 188 Venue anditime of payment 38.7 Medes of payment 358 User tax tables 3.68 Accomplishing of verious income tax returns and fos 7 Withholding taxes (at source, expanded ar cectable witolding tx, fal withnoding taxes and witholding tax ‘on government gayments) 371 Time of withholding 4.7.2 Income payments subject whaling373 3nd 318 318 317 318 379 a8 31 382 383 a4 ‘Yearend wiholing of tax and requirements ‘enue and ime offing of withoiing tax retusa Yerwe and ime of payment [Nodes of payrent “Time of payment Use of ax tables ad rates ‘Use of varus withelcing tax tums and forms ‘Complance Requiernents ‘Administras roqurerans (eptraton, issuance of recaps, pining of eoepts} ‘Aliachmens tothe income tax return, including CPA certificate, pec NIRC requirerent Keeping of books of accounts and records, including epor ofrwentories Presoigive gerd of mainan books el aeceunts and ebher seenunting mecrds 4.0 TRANSFER TAX. 41) Estetetan ALY Gross estate 41.2 Deductions afowed io esiale 413° Taxcretit 44 Venue and time offing af taxrotuns 415 416 Ang As cer 42a 425 426 sar 428 429 4.2.10 4.10 42 Donorstax 424 422 a 423 ‘Venue and time of payment ‘Mec of payment Use of tx tables Acceanglising of te rlurne an forme Aachen othe tax return Admins requrements Grass git Exemptions Tax ralasin goneral and whan the dans i & tanger erie arsine igo te ets Venue aad Bee of payment Modes of payment Use oft tables Accomplishing of tat returns an fms Attachments othe tax return ministrative requireriens ss VALUE ADDED TAX (VAT AND PERCENTAGE TAK) 51 Velie aed tex 54 512 5d ay 818 518 5A 518 54.9 ‘Output VAT Inpua VAT VAT tax cradts Refund ot excess put VAT \erwe and tine o ing of dona tax retums Verve andtime of payment Modes of payment Accomplishing of tax returns and farms AMtochments tothe fax retun the62 5.1.10. lnveicing, and Accounting requirements Percentage tax 521 Texbese and tax ries 5.2.2 Venue and tie cling of tax returns 524 Verue andtmecet payment 524 Modes ofpayment 525 sel rales 526 ecneplihing of ae tatuens ae foes 6.0 TAXATIONUNDER THE LOCAL GOVERNMENT CODE" ea 62 63 6a ‘Scape ard ifr ypes of eal aes (Lied to Res proper ta, ea business tx) Tex bose and ian rates Yue and time offing of tax returns Venue end tine of payment 70 PREFERENTIAL TAXATION" a2 ae 74 75 SenigeCtizens Law” 74.4 Exemption from income tax of qualied seniorcizens 7.12 Texincentivs for ualfled esabishmentsseling goods and services to senor tizens Moga Gata fr Disabled Persons" 724 Taxincentives for ualifed esabishments sing goods and series to senor siizens Specie Economic Zane Act” 73.1 olcy andthe Phippine Economie Zone Authorty (PEZA) 73.2 Regitaton ofimestments 13.3 Fisealineontives lo PEZAregistaed eccromic one enepises (Omnibus investments Code (Beok 1 of Executive Order 228) Ti Policy and the Board of investment (801) 742 Prelered aressof investment 743 investments rorty Pan 144 Repiseten of mestrents 745 Fiscal incentives 0 BO) registered enterpises Barangay Micro Business Enterprises (ENEES) Ac* 751 Revista of Bes 75.2 Fiscal inoentves to BMBEs (ous Taxation Agreements OTA)" 16.1 Nature and pupose of DTAS 1.82 Manner ef giving reli rom double taxation 78.3 Provedut for avalimentoftax treaty benefits eae ese ‘AND CUSTOMS CODE 81 Functansofthe Bureau of Custos 82 83 Ba 8s 86 Functions ofthe Tait Commission Nisture of taf and custors dutles ‘Basi of assessment of duly ‘Docume aque or inpariton of goods acumonls required lor export af gacds 9.0 EFFECTIVE COMMUNICATION TO STAKEHOLDERS “Yo be effective October 2017 board examination OAS‘THE CPA LICENSURE EXAMINATION SYLLABUS. REGULATORY FRAMEWORK for BUSINESS TRANSACTIONS Effective May 2016 Exemination ‘This eubjct covers the candidates’ knowledge of th regulatory framework governing businoss rancscions and businase crganizalionstassociaions, and of business laws including thei legal impicalons, Candidates should know and understand the pertnent legal provisions, general principles, concepts, and urderyingphlosophy ofthe lews applicable ta commerce and business, The candidates must have sufficient knowledge fo enable ther fo recognize the legal implcations of business stations ortransaetone ane know whan to Seak loge eeungel or racammen halt be e2ugh ‘The canddates must have a working knowledge to apply the various reguiaxy flamawork measures and the pertinnt prowisions of the law relative o particular business scenarios ‘The candidates must also be failiar wih cients! rights and rameds, wit the handing of dsputes on requatoy issues ‘They must know the vaious regulary ofces thet thy wil be ineratng wih and the basic regulations that they wil derive beni from ‘The candidates must also be able to eammunicata aHectively mater pertaining to the regulatory work at willbe handle, ‘The knowledge ofthe candhates in the competences cited atove 6 that of an enty level accountant who can address the fursdamertl requirements of he various partes that the crates wil be interacting profesionaly nthe future Only now laws, implementing niles andl egultions,jursprudences and other issuances shal be incded in he exarinatons ifthase ae in effec for atleast sx (6) months atthe dat of he examinabon, ‘Te examination stall have ene hunsted (100) mutipie eho questions ‘The sylatus for the subjects presented below 110 LAWN BUSINESS TRANSACTIONS 41 Obligations 11.1 Soures ofbigatons and thelrconets wat Law 1112 Contaxts 1113) Qussscontracts 1118 Dalits 1115 Quassdetcts 12 Kinds of obigaons in genera under the Gil Code 13 Spoof croumstances alecing obligations n general 13.1 Porous events 132° Fraud 133° Negigence 134 Delay 135 Breach of eonvact 14 Dates of otigrin abigtion to door not to do 155 Extngustment of obligation wih special emphasis on 15.1 Paymentof debs of money 159 tnrcantin docimants 2s means of payment 153 Spacal forms rides of payment 154 Remissonor eendenaton,confsion,cormpersation and novation 155 Efecto insolvency and bankuptey en exinguishment ef obipaton 20 Contracts at Concests and classification *22° Elements and tages 23 Freedom tom eoataet and lntation 24 Persons bound 25 Consent 251 Capactated persons 252 — Reguisies 253 Vices of consent 28 Objects of contacts 27 Gonsideralors of eantracts 28 Formaities of contacts 29 Interpretation and etarmation af contrat 210 Gefectve coriracs 2.40.1 Rescissible 2.402 Voidaale 2.403. Unenforceable 2404 Void 30 Sales 21 Nature forms and requisitas 32 Eamest money as distinguished from option mony 33. Rightsotigsions of vendor and ventee 34 Warranties (in selaon to consumer ans} 35 instalment soles. $51 Personal propery — Rec Law 252 —_RealProgery —Mazeda Law 353 P0957 /Conderinuen Act 40° LAWONCREDIT TRANSACTIONS 4.1 Pledge, Rea! Mortgage and Chat! Morgage 44.7 Nature and equstes 412 Requirements to bind the partes and third persons 4.43 Oblgatons and iis of pledaor and pledge 4444 Oblgatons and ighs of mextgagorand mrlgapee 4.1.5 Effect of pec commissonum 418 Modes of exingushient 42 nohency Law * 4.21 Definition of insolvency XN 122 Sucpensin ofzayments 423 Voluntary insolvency 424 Involuntary insolvency 43° Corporate Rehailtalion * 431 Defngen of Terms 432. StayOner 433 Recover 434 Rehabilaion Pan Ze 435 Conlans af Patton and ober ypes of Rahabitatons 50 NEGOTIABLE INSTRUMENTS AND BOUNCING CHEGKS LAW $1 Negotiable instruments 5.1.1 Negotiablity of instrument 512. Abnomal regoitleIsrments 5:13 Income bil david netents 5:14 Incomplete and undebvred netumnts 515 Complete bu undehered stuart 5.1.8 _nseumens wih forged sgnatuce 52 Bouncing Chucks * 521 Checks itn iacientunds 5.2.3 Evidence of knowledge of insufficient funds. OAE523 Duly of Drawee 523. Credit Constued LAW ON BUSINESS ASSOCIATIONS. 61 Pariership 6.1.1 Natu andas dstrgushed tom corporation 612 Elements and kinds 613 Formals requied 814 Rules of marapemont 615 Ostrtuion of pots and ioeses 6.18 Sharing ofoses and iaiitos 617 odes and rettement rogers 618 Limted patnestip 62 Corporations 6.21 Natu and classes of comoraton 622 corporation and organization ol Pivale Corporation 823 Powersaf acorparation 5231 Expessed 8232 ingles 8233 incon 624 Board of DiectorsiCorporate Oticors 6241 Qualifications 6242 Election and removal 6243 Pomers ane foucory dues 625 Glasses stocks 8251 Conzopts 8252 _Sutscrptons 6.28 Powers, des, igits and oblgations of scktoters 827. Mjony and monty conti 628 Bylaws 828 Meoings 8210 Corporal rergerizaon 52101 Morgers 82102 Consoidaons 62103 Gtherbusiness combinations 6211 Nenstock coporaion 6212 Medes ofssouton and iquidation 152.124 Rethemant Raquremests 8213 Foreign 62131 License odo business 821311 pose atthe leeres 82132 Requiements tr appieatonissuance often 62.133 Consequence of doing business weno afeense 62:14 _Dafinion and igh of reign corporations 62.15 _Defnitonc dongbusness and is eatin to fog invests 6216 Purpose and quaifcatons of Resident agent 82417 Suits aginst foreign corporations 52.18 Suspension orrencaion of ense 5219 Wibdrnal fom business 6220 Kinds and aval of expoale Becks 6221 Secures Reguston Cose 62.271 Kinds of securities 82.212 Protection of vestors, prvale tender ofr and insider Trading 82.213 SEC Oreulas andissvances 62.214 Code of Carporate Gavemance 62.215 Fig of Genera information Sheet 62.228 Filing of Annual Avied Financial Stalements Be,63 Cooperatives 631 Organzaton and Repstration of Cooperatives 632 Administration 6.33 Responses, Rights and Privieges of Cooperatives 534 Capital Property of Funds 6.35 Ault Inquiry and Mambers Right1o Exarine 6.36 Alucation and Distribution of Funds 537 — Typesand Catagories of Cooperatives 638 Merger and Consolidation of Cooperatives 639 Diseoluion of Cooperatives 7.0 Lawon other Business: 71 POG Low" Tid insurable deposits 742 Maximum bly 713. Requirements for Claims 7.2 Secrecy of Bark Deposits and Unclaimed Balaness Law" 73. General Banking Law* 7341 Defiiton of Banks 732 toons 7321 S6L 7322 DOSR| TA ANLALaw* 78.1 Covered transactions 74.2. Suspiesus transactions 7.43 Regortoal Requrerent 7.8 ThaNew Canta Bank Act * 7.5.1 Legal tender power aver cons and note isactions 752. Gorseratorstip 7.5.3 Recetvership and Closures 7.6 Inieletival Propery Law (except provisions under Pan 4 (llc! Property Oe) * 784 The Law on Pater 752 The Law on Tradomad, Sones Mais and Trade Nama 183 The Law on Conyight % Effective October 2017 CPA Board Exam MA vores. \3 1. Tha fotowing tems canbe incorporated inthe sytabus of Partnership and Corporation: 2 Secumias Regulaton Code 1b SEC Crear and issuances ©. Cooperatives 2 The insohency Law and Coporata Rahabision canbe incorparaied inthe sylabus a lege & Mongoge ‘L. Tha Bouncing Checks Law and Banking Laws canbe fught nthe Negotiable Instruments Law 4 Infelectzl Property Law can be discussed in Financial Reporting fe: letangible Assets