Accountants play a vital role in the field of commerce and industry, ensuring the company is financially stable and that reports provided for both internal and external users are timely, accurate, correct and fairly presented.
But in this complex world of business, only change is constant; this is due to numerous variables not only in the field of finance and accounting, but in other fields like the market, local and international trade, laws and regulation, technological advancement and even climate change.
Accountants, particularly those who prepare the financial statements (FS), must be equipped with suitable understanding of the company’s operations per se, and also of the way on how they will present these through figures. FS are very crucial because they reflect the company’s current operations and performance. One point to be considered in preparing these FS is the users’ convenience of using these FS as basis for making sound decisions, and for the regulatory agency to study the
performance of the economy.
FS preparers must continue to improve in coping up with the rapid changes, not only through passing the board exam and years of professional experience, but with proper education and training.
It is timely enough that the Board of Accountancy (BOA), held by former Internal Revenue Commissioner Joel Tan-Torres, passed BOA Resolution 03 Series of 2016 dated January 19, 2016, requiring FS preparers to be Certified Public Accountants (CPAs) accredited in commerce and industry. For those small and medium enterprises that cannot afford or maintain an accredited CPA as a member of their organization, the resolution allows accredited CPAs to be outsourced, provided that it is not the same CPA who will conduct the audit.
Only companies whose gross sales or revenues exceeding P10,000,000 for one accounting year are covered under this resolution, and that the accredited CPA will issue a Certificate of Compilation Services for the Preparation of FS as an additional attachment for submission of the
audited FS.
However, due to time constraints in the application for accreditation, only companies whose accounting period ends June 30, 2016 are mandated to prepare their financial statements by a BOA commerce and industry-accredited CPA.
This is a regulation and all companies affected must comply, but keep in mind that this is not an additional burden for us CPAs, but an opportunity to broaden our horizons and be accredited. Aside from CPAs in public practice, CPAs in education and academe are all moving toward accreditation; it’s also the time that commerce and industry uplift the standards of the accounting profession.
How to start? The Philippine Institute of Certified Public Accountants (Picpa) is providing seminars and training to our fellow CPAs, for them to earn the required number of hours or credits that must be completed for accreditation eligibility. Other organizations and auditing firms are also providing trainings and seminars with an array of topics from taxation, auditing,
compliance, ethics and financial-reporting standards.
It is also the time to meet with fellow accountants in the field of commerce and industry, to build your network and share your thoughts and professional experiences, which are very useful than doing it alone or within the organization only.
Other requirements such as certificate of employment from current employer, certificate of good standing from Picpa and a written detailed description of work experience, including sample drafts, are provided in the annex portion of the
BOA resolution.
CPAs in this sector must apply on or before February 29, 2016 and are given up to June 30, 2016 to complete the training
hours requirements.
Finally, it is our time CPAs in commerce and industry to feel proud, for our name and license is in a document certifying a company’s FS that has already become part of our everyday professional life.
Acct. Jeffrey Galang Salazar is a Certified Public Accountant and a Master in Business Administration degree holder. He is currently connected with Tong Hsing Electronics Phils Inc., Mold Parts Manufacturing Asia Inc. and Pamantasan ng Cabuyao—as part-time professor.