Digest of RMO 34-2014: On Clarifications of Certain Provisions of RMO No. 20-2013
See the Features Page for the clarifications of certain provisions of RMO No. 20-2013.
ASEAN Integration and the Mutual Recognition Arrangement on Accountancy Services
See the Features Page for the highlights of the ASEAN Integration and the related Mutual Recognition Arrangement on Accountancy Services.
Value Added Tax (VAT) Issues on Grants Contracts with the European Union
Most non-governmental organizations (NGOs) in the Philippines are registered with the Philippine tax authorities as non-VAT entities, which means, their revenues are VAT-exempt. In this legal framework, the VAT in the expenses they paid or incurred form part of their legitimate expenses already, being the end-user or beneficiary of such expenses. Moreover, VAT on expenses of non-VAT registered taxpayers are generally not refundable by Philippine tax authorities.
There were cases where funding agencies are not reimbursing or funding VAT paid or incurred on the expenses of their non-VAT registered partner NGOs in the Philippines, as stipulated in their project agreements. Philippine law on contracts, which is very clear on these matters, states that in cases where any provision of an agreement is contrary to the laws of the country concerned, the latter shall take precedence over said contract.
A Project or Segment Financial Statement is not a substitute for General Purpose Financial Statements
General purpose financial statements are financial statements that reflect the financial position and operations of an organization as a whole for a certain reporting period. These financial statements, which consist of a balance sheet, statement of operations, changes in capital/fund balances and cash flows and related notes thereto, are the ones being required by the BIR, SEC and other government regulatory agencies as well as other stakeholders of the organization.
A project or segment financial statements are those that reflect only the financial position and operations of a project, program or segment of an organization for a certain reporting period. These financial statements, which usually consist of statement of operations and changes in capital/fund balances, are the ones being required by the concerned donors and other stakeholders of the project.
Only general purpose financial statements should be submitted for purposes of applying for accreditation with LGUs and funding with the European Commission and other donor agencies.
SMEs and Public Accountability
See the Features page on how International Financial Reporting Standards (IFRS) define Small and Medium-sized Entities (SMEs) and Public Accountability.
The New Income Tax Exemptions for Individual Taxpayers and their Dependents
See the Features Page for the highlights of R.A. 9504.
The Retirement Pay Law (R.A 7641) Revisited
See the Features page for information on establishments covered and exempt from this law.
REC celebrates 25th Anniversary
Redor, Emerson & Co. (formerly Redor Gonzales Doliente & Co. or RGD) is calling on all its former colleagues to participate and be counted in celebrating its silver anniversary on September 7, 2007, 6:00 pm at the Alex's Grille, 29 Matalino St., Diliman, Quezon City. For confirmation of attendance and other particulars, please call Ms. Ning Salvador at telephone no. 722-6005 or email Mr. Sonny Redor at firstname.lastname@example.org.
Need to Dispose of your PLDT Shares of Stock?
See the Features page for more information on how to dispose of your PLDT shares of stock. The aforementioned article also includes the supporting documents needed aside from the step-by-step procedures.
EPR to ACPAPP Board
Emerson Redor, the firm's founding partner, was recently elected to the Board of the Association of CPAs in Public Practice (ACPAPP). He will serve a two-year term commencing January 2007.
Additional Requirements for Non-stock, non-profit Corporations and NGOs engaged in Microfinance Operations
Non-stock, non-profit corporations including NGOs should amend their Articles of Incorporation and state in the purpose clause that they shall conduct microfinance operations pursuant to R.A. 8425, otherwise known as the Social Reform and Poverty Alleviation Act. They shall likewise include this information in their General Information Sheets (GIS) being submitted to the SEC.
How to Apply for BIR Accreditation as Individual Tax Agent/Practitioner
See the Features page for more information in applying for a BIR accreditation as an individual tax agent or practitioner. The aforementioned article also includes the supporting documents needed aside from the step-by-step procedures.
Proposed Accounting and Financial Reporting Standards for NGOs
A proposed Financial Accounting Standards (FAS) for NGOs conforming with international accounting standards is now in the works using as framework the draft of the proposed FAS for NGOs which was initially undertaken by the Accountants for NGO Concerns (ANC). This is being spearheaded by the Task Force NGOs FAS. The task force was jointly organized in August, 2004 by the Philippine Council for NGOs Certification (PCNC) and the ANC.
Implementing Rules and Regulations of R.A. 9298 otherwise known as the Philippine Accountancy Act of 2004
Section 4-b of the implementing rules provides that any position in any business or company in the private sector which requires supervising the recording of financial transactions, preparation of financial statements, coordinating with the external auditors for the audit of such financial statements and other related functions shall be occupied only by a duly registered CPA; provided, that the business or company where the above position exists has a paid-up capital of at least five million pesos and/or an annual revenue of at least ten million pesos; provided further, that this provision shall apply only to persons to be employed after the effectivity of this Rules and Regulations; provided finally, that this provision shall not result to deprivation of the employment of incumbents to the position.