Financial Crime World

PHILIPPINES: Financial Reporting Regulations Tighten Grip on Accountants

The Philippine government has introduced new regulations for financial reporting, aimed at ensuring transparency and accountability in the country’s financial sector.

New Requirements for Licensure

Effective May 2016, accountants seeking licensure must demonstrate a working knowledge of various financial accounting and reporting standards. The new regulations require candidates to be familiar with:

  • The nature and composition of accounts
  • Initial recognition, measurement, and valuation of assets and liabilities
  • Subsequent events and transactions
  • Financial reporting frameworks and processes

Examination Format

The examination will consist of 70 multiple-choice questions, testing candidates’ understanding of key concepts such as:

  • Development of financial reporting frameworks
  • Accounting processes
  • Conceptual framework
  • Presentation of financial statements
  • And more

Effective Communication Skills Required

Under the new regulations, accountants must also be able to communicate effectively on financial accounting matters. The knowledge required is that of an entry-level accountant who can address the fundamental requirements of various parties they will interact with professionally in the future.

Staying Up-to-Date with New Standards

The Financial Reporting Framework and Standard-Setting Bodies Regulation requires accountants to stay up-to-date with new standards and issuances, which must have been in effect for at least six months before being included in the examination.

Range of Topics Covered

In addition, the regulations cover a range of topics including:

  • Assets
  • Liabilities
  • Equity
  • Borrowing costs
  • Leases
  • Income tax
  • Employee benefits
  • Interim reporting
  • IFRS for small and medium-sized entities
  • Cash to accrual accounting

By implementing these new regulations, the Philippine government aims to ensure that accountants have a deep understanding of financial reporting standards and are equipped to provide accurate and transparent financial information.