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PROFESSION
LIMITATION OF THE PRACTICE OF
ACCOUNTANCY IN THE PHILIPPINES
The Accounting Standards Council
defines Accounting as a service activity
Single practitioners or partnerships for the
whose function is to provide quantitative
practice of public accountancy shall be
information, primarily financial in nature,
registered certified public accountants in the
about economic entities, that is useful in
Philippines..
making economic decisions.
Public accountants usually offer the following Advisory services refer to services to
services: auditing, taxation, and advisory clients on matters of accounting, finance,
services. business policies, organization procedures,
product costs, distribution and many other
phases of business conduct and operations.
Advisory services also contemplate advices
on complex transactions like mergers and Government accounting encompasses the
acquisitions. process of analyzing, classifying,
summarizing and communicating all
Private Accounting transactions involving the receipt and
disposition of government funds and
Many accountants are employed in business property, and interpreting the results thereof.
entities in various capacity such as
accounting staff, chief accountant, internal Many accountants in the government are
auditor, and controller. employed in many branches and agencies of
the government, more particularly the
The major objective of the private accountant Bureau of Internal Revenue, Commission on
is to assist management in planning and Audit, Department of Budget and
controlling the entity’s operation. Their Management, Securities and Exchange
functions include: maintaining the records, Commission, and even in a police agency
preparing the financial reports, preparing the like the National Bureau of Investigation.
budgets, and controlling and allocating the
resources of the entity. CONTINUING PROFESSIONAL
DEVELOPMENT (CPD)
The private accountant also has the
responsibility for the determination of the Under Resolution 59 of the Board of
various tax exposures that the entity faces. Accountancy, the term Continuing
Professional Development is used in lieu of
Academe Continuing Professional Education.
Accountants who are in the academe are All certified public accountants shall abide by
employed in a Higher Education Institution the requirements, rules and regulations on
(HEI) offering Accountancy and Business continuing professional development to be
courses. They may also be involved in promulgated by the Board of Accountancy,
institutions providing review sessions for subject to the approval of the Professional
CPA licensure examinations. Regulation Commission in coordination with
the accredited national professional
Government accounting organization of certified public accountants
or any duly accredited educational
institutions.
the accreditation of CPA to practice the
Continuing professional development refers accountancy profession.
to the inculcation, assimilation and
acquisition of knowledge, skill, proficiency, Exemptions from CPD
and ethical and moral values after the initial
registration of the CPA. A CPA shall be permanently exempted
from CPD requirements upon reaching the
CPD credit units age of 65 years.
The CPD credit units refer to the CPD credit However, this exemption applied only to the
hours required for the renewal of CPA renewal of CPA license and not for the
license and accreditation of a CPA to purpose of accreditation to practice the
practice the accountancy profession every accountancy profession.
three years.
A CPA shall be temporarily exempted from
The total CPD credit units shall be 120 credit compliance with the CPD requirements
units for three years. under the following circumstances:
Under the new BOA resolution, the required The CPA is working or practicing the
120 units may be earned in any of the three profession or furthering studies
years preceding the year of application for abroad
accreditation. The exemption is for the duration of
the stay abroad
Excess credit units earned shall not be The CPA has been out of the country
carried over to the next three-year period, for at least two years immediately
except credit units earned for masteral and prior to the date of renewal of license
doctoral degrees. and accreditation.