Updated Rules on the Compilation Certificate for FS Preparations in the Philippines [INFOGRAPHICS]
The Board of Accountancy (BOA) issues Resolution No. 36-2019, repealing previous resolutions on the requirement of a compilation certificate for financial statement (FS) preparations in the Philippines.
BOA deemed the certification unnecessary and contrary to the purpose of Republic Act No. 11032, which aims to simplify requirements and procedures to expedite business and non-business related transactions in the government.
The following are the details of the updated resolutions relative to FS preparations:
Resolution No. 03 (s. 2016):
Under the updated version, all business establishments or issuers with gross sales or revenues exceeding ₱10 million are no longer required to submit Certificates of Compilation Services for FS preparations and notes thereto as prepared by duly accredited Certified Public Accountants*, other than the external auditor.
Resolution No. 68 (s. 2016)
External auditors are no longer required to monitor compliance of covered audit clients. The report to BOA any omission or non-compliance therewith, under penalties provided by law, is also revoked.
Resolution No. 115 (s. 2016)
The extension of the deadline for filing the application for accreditation and the covered period for the financial statements, as well as the review of the ₱10 million gross sales or revenue threshold, has been abolished.
Resolution No. 185 (s. 2017)
The clarificatory guidelines for the Compilation Certificate requirement have been deemed unnecessary and revoked from the current requirements for FS preparations.
*BOA requires Certified Public Accountants (CPAs) to prepare financial statements for registered businesses in the Philippines.
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