Revisions in the Board Licensure Examination for

Certified Public AccountantsPrepared by

Ferdinand C. Importado CPA, MBA

Contents

• Background or rationale for the revision.• Current subjects (seven subjects) and the revised

subjects (six subjects).• Highlights of the revisions.• Additional topics for Taxation and Regulatory

Framework for Business Transactions.• BOA Resolution 114 Series of 2016.• Table of Specifications.

Background

• The Philippine CPA Licensure Examination (PCPALE) has not been changed over the past 40 years.

• On June 20, 2015, The Board of Accountancy (BOA) proposed to the Professional Regulatory Commission (PRC) the revision of the PCPALE.

• Section 15 of Republic Act 9298 (The Accountancy Law) allows amendments the PCPALE by the BOA subject to the approval of the PRC.

• Effective May 2016.

Current Subjects

• Theory of Accounts• Practical Accounting Problems 1• Practical Accounting Problems 2• Management Services• Auditing Theory• Auditing Problems• Business Law and Taxation

Revised Subjects

• Financial Accounting and Reporting• Advanced Financial Accounting and Reporting• Management Advisory Services• Auditing• Taxation• Regulatory Framework for Business Transactions

Revisions

• Reduction of the subjects from 7 to 6 subjects.• Merging theory and practice (problems) Financial

Accounting and Reporting and Auditing. • Distributing Theory of Accounts (TOA), Practical

Accounting Problems 1 and 2 (Prac. 1 & 2) between Financial Accounting and Reporting (FAR) and Advanced Financial Accounting and Reporting (AFAR).

• Segregating Business Law and Taxation (BLT) into Taxation and Regulatory Framework for Business Transactions.

• Renaming Management Services (MS) to Management Advisory Services.

Conceptual RevisionsTheory of Accounts

Practical Accounting Problems 1

Practical Accounting Problems 2

Management Services

Auditing Theory

Auditing Problems

Business Law and Taxation

Financial Accounting and Reporting

Advanced Financial Accounting and Reporting

Management Advisory Services

Auditing

Taxation

Regulatory Framework for Business Transactions

Additional Topics for Taxation

• Taxation under the Local Government Code • Preferential Taxation

- Senior citizen Law, Magna Carta for Disabled Persons, Special Economic Zone Act, Omnibus Investments Code Book I of Executive Order 226, Barangay Micro Business Enterprises Act, Double Taxation Agreements

- Tariff and Customs Code

Additional Topics for Regulatory Framework for Business

Transactions• Insolvency Law

• Corporate Rehabilitation

• Bouncing Checks• Cooperatives

• PDIC Law

• Secrecy of Bank Deposits and Unclaimed

Balances Law • General Banking Law

• AMLA Law • The New Central Bank

Act • Intellectual Property

Law

BOA Resolution 114 Series of 2016

• Inclusion of the following topics in the Board Licensure Examination for Certified Public Accountants (BLECPA):

• Effective communication to stakeholders,• Code of Ethics for Professional Accountants in the Philippines,

• Philippine Accountancy Act of 2004,• Board Resolution No. 71 Series of 2004.

Weights in BLECPA

Subjects Theoretical Problem Solving

Financial Accounting and Reporting 30% 70%Advanced Financial Accounting and Reporting

30% 70%

Management Advisory Services 30% 70%Auditing 50% 50%Taxation 30% 70%Regulatory Framework for Business Transaction

70% 30%

Financial Accounting and Reporting

Topics Weight ItemsDevelopment of Financial Reporting Framework and Standard Setting Bodies, Regulation of the Accountancy Profession

2.86% 2

Accounting Process 2.86% 2Presentation of Financial Statements

14.28% 10

Financial Assets 14.28% 10Non-Financial Assets 21.43% 15Financial and Non-Financial Liabilities

10.00% 7

Financial Accounting and Reporting

Topics Weight ItemsEquity 14.28% 10Borrowing Costs, Leases , Income Tax and Employee Benefits 8.57% 6

Interim Reporting 2.86% 2Small and Medium-Sized Entities 5.71% 4Cash to Accrual 2.86% 2

100.00% 70

Advanced Financial Accounting and Reporting

Topics Weight ItemsPartnership Accounting 14.28% 10Corporate Liquidation 5.71% 4Joint Arrangements (PFRS 11) 5.71% 4Revenue Recognition 14.28% 10Accounting for Home Office, Branch and Agency Transactions 5.71% 4

Accounting for Business Combination (PFRS 3)

5.71% 4

Advanced Financial Accounting and Reporting

Topics Weight ItemsSeparate Financial Statement (PAS 27)

7.14% 5

Consolidated Financial Statements (PFRS 10 )

7.14% 5

Foreign Currency Transactions 5.71% 4Translation of Foreign Currency Financial Statements (PAS 21/PAS 29)

5.71% 4

Not – for – profit organizations 2.86% 2Government Accounting – General Fund

2.86% 2

Advanced Financial Accounting and Reporting

Topics Weight ItemsOther special Topics 2.87% 2Cost Accounting 14.28% 10

100.00% 70

Management Advisory Services

Topics Weight ItemsManagement Accounting 50.00% 35Financial Management 40.00% 48Management Consultancy 4.29% 3Economic Concepts essential to obtaining an understanding of entity’s business and industry

5.71% 4

100.00% 70

Auditing

Topics Weight ItemsAuditing Theory 50.00% 35Evidence Accumulation and Evaluation – Substantive Tests of Transactions and Balances

50.00% 35

100.00% 70

Taxation

Topics Weight ItemsPrinciples of Taxation 10.00% 7Tax Remedies 12.50% 9Income Taxation 20.00% 14Transfer Taxes 15.00% 10Value Added Tax (Vat And Percentage Tax)

17.50% 12

Taxation

Topics Weight ItemsTaxation Under The Local Government Code*

5.00% 4

Preferential Taxation* 10.00% 7Tariffs And Customs Code 5.00% 3Effective Communication to Stakeholders

5.00% 4

100.00% 70*Effective October 2017 Board Examinations

Regulatory Framework for Business Transactions

Topics Weight ItemsObligations 15.00% 15Contract 15.00% 15Sales 10.00% 10Pledge, Real Mortgage and Chattel Mortage 6.00% 6

Negotiable Instruments 9.00% 9Partnership 15.00% 15Corporations 30.00% 30

100.00% 100

Regulatory Framework for Business Transactions – October 2017

Topics Weight ItemsObligations 10.00% 10Contract 10.00% 10Sales 7.00% 7Pledge, Real Mortgage And Chattel Mortage 3.00% 3

Insolvency Law 5.00% 5Corporate Rehabilitation 5.00% 5Negotiable Instruments 4.00% 4

Regulatory Framework for Business Transactions – October 2017

Topics Weight ItemsBouncing Checks 3.00% 3Partnership 10.00% 10Corporations 20.00% 20Cooperatives 10.00% 10PDIC Law 3.00% 3Secrecy of Bank Deposits and Unclaimed Balances Law 2.00% 2

Regulatory Framework for Business Transactions – October 2017

Topics Weight ItemsGeneral Banking Law 2.00% 2AMLA Law 2.00% 2The New Central Bank Act 2.00% 2Intellectual Property Law (except provisions under Part 1 Intellectual Property Office)

2.00% 2

100.00% 100

Sources

Board of Accountancy presentationsFor the complete list of the syllabi and the tables of specifications, please proceed to http://boa.com.ph/cpa-exam/