Second part of a series

The Professional Accountancy Regulatory Board (BOA) has initiated public hearings on a legislative proposal for “Strengthening the Practice of Accountancy in the Philippines, Amending the Law of the Republic 9298”. RA 9298 is the Accounting Law of 2004 which was enacted over 17 years ago on May 13, 2004. It is really high time that an update be made on the law that governs the accounting profession which has suffered. major changes and developments in recent years.

The BOA began its public consultative hearings on March 26, 2021 (https://www.facebook.com/picpa.nat/videos/445931786688841). The draft of the proposed changes can be downloaded from http://picpa.com.ph/attachment/3222021164349634.pdf. The National Association of CPS in Education followed this initiative by hosting an online public stakeholder meeting on May 18, 2021. To be released on June 1, 2021, another online public forum is being hosted by the National Federation of Junior Philippine Institute of Accountants.

There are approximately 17 proposed revisions to RA 9298. These cover a range of proposed changes, ranging from the definition of accounting practice, regulatory reform, the powers and authority of the BOA, the scope of CPA licensing exams, communication of results and disclosure of board exam results, integration of the accounting profession and professional organizations, accreditation of CPAs, continuing professional development, budget support, agencies standards and qualifications to obtain a CPA license with the requirement of “diverse” experience.

On the basis of the two public consultations in which I participated and the numerous publications on the social networks of the actors of the accountancy, a certain number of comments on improvement of the various proposals were raised, of which the last one listed above on the ” obtaining the CPA permit. This is the most controversial proposal, where many of them have expressed their concerns.

Before focusing on the individual provisions, I maintain that the primary justification for the search for modifications is to achieve results where the various stakeholders in the profession will move towards the requirements of the present and the near future. Key stakeholders include regulators, headed by the Professional Regulation Commission, BOA and the Higher Education Commission; CPAs in various sectors of public practice, commerce and industry, academia and government; and accounting schools and students. Peripheral bodies, such as accountants and auditing schools, should also be taken into account in formulating revisions to the accounting law.

The changes should allow these stakeholders to meet the expectations and demands of those who engage with CPAs and stakeholders in the profession. These include government, employers and businesses, and the general public. As Filipino CPAs have engaged and work for business communities in various parts of the world, the revised accounting law to be passed should ensure that our CPAs will be world-class in terms of professional and social skills and abilities.

To be continued.

Joel L. Tan-Torres is the Dean of the Virata School of Business at the University of the Philippines. Previously he was Commissioner of the Bureau of Internal Revenue, Chairman of the Professional Regulatory Board of Accountancy and Partner of Reyes Tacandong & Co. and SyCip Gorres and Velayo & Co. He is a Chartered Accountant who won number 1 in the May 1979 CPA Board Examination.

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