Proposed Revisions in the

Philippine CPA Examinations

Prepared by
Ferdinand C. Importado CPA, MBA
Based on the
Meet the Examiners
August 20, 2015
University Theater, University of the East, Manila

Contents
Background or rationale for the revision.
Old subjects (seven subjects).
Highlights of the revisions.
Conceptual representation of the revisions.
Proposed revised subjects (six subjects).
Suggested subject clustering.
Observations on the proposed revisions.
Issues on the proposed revisions.
Next steps for the Board of Accountancy.

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.

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

Revisions
Reduction of the subjects from 7 to 6 subjects.
Merging auditing theory and practice.
Merging accounting theory and practice.
Distributing Theory of Accounts (TOA), Practical Accounting Problems
1 and 2 (Prac. 1 & 2) between Financial Accounting and Reporting (FAR)
and Advanced Accounting.
Segregating Business Law and Taxation (BLT) into Taxation and
Regulatory Framework for Business Transactions.
Renaming Management Services (MS) to Management Accounting and
Control.

Conceptual Revisions
Theory of accounts

Financial Accounting and

Reporting

Practical Accounting Problems 1

Advanced Accounting

Practical Accounting Problems 2

Management Services

Management Accounting and

Control

Auditing Theory

Auditing

Auditing Problems

Taxation

Business Law and Taxation

Regulatory Framework for

Business Transactions

Revised Subjects
Financial Accounting and Reporting
Advanced Accounting
Management Accounting and Control
Auditing
Taxation
Regulatory Framework for Business Transactions

Suggested Subject Clustering

Financial Accounting and Reporting
Financial Accounting Part I Accounting for assets
Financial Accounting Part II Accounting for liabilities and
equity
Financial Accounting Part III Financial statements and
other special topics

Suggested Subject Clustering

Advanced Accounting
Advanced Financial Accounting Part I Accounting for
partnerships, corporations and revenue recognition
Advanced Financial Accounting Part II Accounting for
agency, head office and business combinations
Advances Financial Accounting Part III government
accounting and other specialized industries

Suggested Subject Clustering

Management Accounting and Control
Management Accounting Part I and II
Management Advisory Services
Cost Accounting Part I Job order costing
Cost Accounting Part II Process costing

Suggested Subject Clustering

Auditing
Auditing, assurance and attestation (auditing theory)
Auditing practice (auditing problem)
Taxation
Taxation I Income taxation
Taxation II Business and Transfer taxes

Suggested Subject Clustering

Regulatory Framework for Business Transactions
Law on obligations and contracts
Law on partnerships and corporations
Negotiable instruments law
Sales, agency and bailments
Pertinent provisions of SEC, BSP, COA, Insurance
Commission, BOA*

Observations on the Revisions

100% mapping (matching) All subjects currently prescribed
under the BSA Program will be covered by the new six subjects.
The previous seven subjects were just reclassified into the new
six subjects representing a rationalized and integrated version
of the old for a better linkage between theory and practice.
This is in conformity with the new outcomes-based approached
in education.

Issues on the Revisions

Who are conditional examinees? The Board of Accountancy
will issue clarificatory statements before October 2015.
Re-take of conditional examinees examinees who became
conditional before May 2016 has 2 years (4 exams) to pass the
exam using the old format (seven subjects).
E.G. Conditional on October 2015 has until October 2017
for completion using the seven-subject format.
If the examinee fails to complete the conditioned subjects
within the time allotted, the examinee shall take the six-format
subject on the next take of the exam.

Issues on the Revisions

If the examinee fails to complete the conditioned subjects
within the time allotted, the examinee shall take the six-format
subject on the next take of the exam.
E.G. Examinee was conditioned last May 2015. The
examinee has until May 2017 to complete the exam. If it
turns out the examinee fails on May 2017 upon taking the
necessary refreshers course, the examinee will now be
subjected to the new six-subject format.

Next Steps for BOA

Prepare the PRC resolution for the revision.
Finalize the syllabus and Table of Specifications (TOS).
Coordinate with the appropriate offices in the PRC to implements the
changes.
Prepare testbank for the six subjects.
Address transitory requirements (existing testbank, conditioned exminees
and others).
Conduct public awareness (CHED, Accounting schools and students,
JPIA, PICPA, review centers and others).