ion BasicyAccounting eas Ee2istieditiony ae Conceptual’ Outcome-26_|_Basic Financial Accounting and Reporting by Prof. WIN Ballade ACCOUNTANCY ACT OF 2004 Republic Act No. 9298, known as the Philippine Accountancy Act of 2004 was signed into law by President Gloria Macapagal-Arroyo on May 13, 2004. This law repealed Presidential Decree No. 692, the Revised Accountancy Law, which was enacted May 5, 1975. Some sections of the law are presented as follows: ‘Scope of Practice (Sec. 4) The practice of accountancy shall include, but not limited to, the following Practice of Public Accountancy = shall constitute in a person, be it his/her individual capacity, or a5 a partner or as a staff ‘member in an accounting or auditing firm, holding out himself/herself as one skilled in the knowledge, science end practice of accounting, and as a qualified person to render professional services asa certified public accountant (CPA; or offering or rendering, or both, to more than one lent on 2 fee basis or otherwise, services such as: ‘+ the auditor verification of financial transaction and accounting records; of * the preparation, signing, or certification for clients of reports of audit, balance sheet, and other financial, accounting and related schedules, exhibits statements or ‘reports which are to be used for publication or for credit purposes, or to be filed with a court or government agency, orto be used for any other purpose, or ‘the design, installation, and revsion.of accounting system; or the preparation of income tax returns when related to accounting procedures; of when he/she represents clients before government agencies on tax and other ‘matters related to accounting or renders professional assistance in matters relating ‘© accounting procedures and the recording and presentation of financial facts or data. Practice in Commerce and Industry ~ shall constitute in person involved in decision making requiring professional knowledge in the science of accounting, or when such employment or postion requires that the holder thereof ‘must be a certified public accountant. Practice in Education/Academe ~ shall constitute in a person in an educational institution which involve teaching of accounting, ‘auditing, management advisory services, finance, business law, taxation, and other technically ‘elated subjects: Provided, That members ofthe Integrated Bar of the Philippines may be allowed to teach business law and taxation subjects. Practice in Government ~ shall constitute in a person who holds, or is appointed to, a position in an accounting Professional group in government or in a government-owned and/or ~controlled corporation, including those performing proprietary functions, where decision making requires professionel‘Accounting and its Environment | 29 4s failed in the entire examination. Provided, That the Board may adopt its own internal procedures on the implementation of this provision. _ Report of Ratings (Sec. 17) The Board shall submit to the Commission the ratings obtained by each candidate within ten (10) calendar days after the examination, unless extended for just cause. Upon the release of the results of the examination, the Commission shall send by mailing the ‘ating received by each examinee at his/her given address using the mailing envelope submitted during the examination. Provided, That the report of rating may be distributed to the successful examinees during the mass oath taking as new registered CPAs. Fe ling Candidates to Take Refresher Course (Sec. 18) ‘Any candidate who fails in two (2) complete Certified Public Accountant Board Examinations shall be disqualified from taking another set of examinations unless he/she submits evidence to the satisfaction of the Board that he/she enrolled in and completed at least twenty-four (24) units of subject given in the licensure examination. Provided, That such réfresher course shall be offered only by an educational institution ranting @ degree of Bachelor of Science in Accountancy. Provided further, That the candidates shall have the option of taking the aforesaid subjects in the regular course offering or in a special refresher course duly accredited by the Board. For purposes of this Act, the examination in which the candidate was conditioned together with the removal examination on the subject in which he/she falled shall be counted as one complete examination. PROFESSIONAL ORGANIZATION Article IV, Section 30, Republic Act No. 9298, The Philippine Accountancy Act of 2004, provides that “all registered CPAs whose names appear in the roster of CPAs shall be united and integrated through their membership in a one and only registered and accredited national professional organization of registered and licensed CPAs, which shall be registered with the Securities and Exchange Commission as a nonprofit corporation and recognized by the Board of Accountancy subject to the approval of the Professional Regulation Commission.” ‘The Philippine Institute of Certified Public Accountants (PicPA) is the integrated ‘national professional organization of CPAs in the Philippines accredited by the BOA and the PRC per PRC Certificate of Accreditation No. 1-APO-015 dated May 19, 2008. It was founded in 1929. PICPA is a registered non-stock corporation. The objectives of the Institute are as follows:30 | Basic Financial Accounting and Reporting by Prof. WIN Ballad 1+ To protect and enhance the credibility of the CPA certificate in the service of the public. + Tomaintain high standards in accounting education. + Toinstll ideals of professionalism, ethics and competence among accountants. ‘To foster unity and harmony among members. PICPA adheres to the highest ideals of professionalism and commitment to service and upholds such values as: integrity, professional excellence, innovation, discipline, teamwork, social responsibility and commitment. Changes are inevitable because of the effects of the Republic Act No. 9298, the ‘Accountancy Act of 2004 and its Implementing Rules and Regulations. The Amended By-Laws of PICPA (dated Nov. 26, 2005) provides that the PICPA organization shall be ‘composed of four (4) geographical areas covering the entire Philippine archipelago divided into Luzon, Visayas, Mindanao and National Capital Region (Metro Manila), represented by nine (9) regions and four (4) sectors. ‘The nine regions are Metro Manila, Northern Luzon, Central Luzon, Southern Tagalog, Bicol (author's nate: this is @ new region, per amendment), Eastern Visayas, Western Visayas, Northern Mindanao and Southern Mindanao. The sectors are Education/Academe, Public Practice, Commerce and Industry, and Government. PICPA is be governed by a National Board of Directors, composed of twenty-five (25) national directors, elected from the four (8) geographical areas representing the nine (9) tegions and the four (4) sectors of the profession. The total of 25 national directors Shall be comprised of: twenty-one (21) regional directors from the geographical areas ‘and four (4) sectoral directors. The amended by-laws provided for a change from calendar year to fiscal year basis starting July 1, 2006, [ACCOUNTING STANDARDS IN THE PHILIPPINES ‘Accounting Standards Council ‘On Nov. 18, 1981, the Philippine Institute of Certified Public Accountants (PICPA) created ‘the Accounting Standards Council (ASC) to establish and improve accounting standards that will be generally accepted in the Philippines. ‘The creation of the Council received the support of the following: the Securities and Exchange Commission (SEC) and the Central Bank of the Philippines (cB)—regulatory agencies where the financial statements are filed; the Professional Regulation ‘Commission (PRC) through the Board of Accountancy—which supervises CPAs and ‘auditors; and the Financial Executives Institute of the Philippines (FINEX)—which is the largest organization of financial executives who are responsible for the preparation of the financial statements. The ASC was composed of eight (8) members—four from PICPA including the designated Chairman; and one each from SEC, CB, PRC and FINEX.‘Accounting and its Environment | 31 The standards would generally be based on the following: existing practices in the Philippines; research or studies by the Council; locally or internationally available literature on the topic or subject; and statements, recommendations, studies or standards issued by other standard-setting bodies such as the International Accounting ‘Standards Board (1AS8) and the Financial Accounting Standards Board (FASB). The statements and interpretations issued by the Council represented represent generally accepted accounting principles in the Philippines. Accounting. principles become generally accepted if they have substantial authoritative support from the relevant parties interested in the financial statements—the preparers and users, ‘auditors and regulatory agencies. Financial Reporting Standards Council Per Section 9(A) of the Rules and Regulations Implementing Republic Act No. 9298 ‘otherwise known as the Philippine Accountancy Act of 2004, the Financial Reporting, Standards Council (FRSC) shall be the new accounting standard setting body. ‘The FRSC shall be composed of fifteen (15) members with a Chairman, who had been or presently a senior accounting practitioner in any of the scope of accounting practice and fourteen (14) representatives from the following: one each from the BOA, SEC, BSP, BIR, COA and 2 major organization composed of preparers and users of financial statements; and two representatives each from the accredited national professional organization of CCPAS in public practice, commerce and industry, education/academe and government. ‘CORE COMPETENCIES FRAMEWORK FOR ACCOUNTANTS In recent years, there has been a growing clamor for professional bodies and the ‘academe to bridge the gap between the requirements of the workplace and the academic preparation of our professionals. A competency-based approach to the preparation of professionals offers a systematic anid effective way of bridging this gap. ‘A competency-based approach to education is one where the competencies, and skill sets required of a newly admitted professional are identified through a formal process and are later validated by business and industry and subject matter experts. Such identified competencies (or learner outcomes) have predetermined performance measures for assessing skill acquisition. The government has undertaken efforts to Improve the entry-level qualification requirements for the Filipino CPAs by releasing the well-defined set of competencies, Core Competency Framework for Entry to the Philippine Accountancy Profession. The ‘core competencies for accountants identify the knowledge, skill, and professional values that hew CPAs need to have in order to successfully face the challenges of today's ‘changing environment and the future,Accounting and its Environment | 35 that business consciously apply ethical rules in its decision process to avoid potentially undesirable situations. Ethics will probably prescribe that child labor is wrong. Yet in some countries, children ‘are put to work at a young age, and often in poor working conditions. The children have rno choice and from our point of view, they are basically being exploited. Suppose now that a company purchases well-made, inexpensive products from a foreign company that uses child labor in poor working conditions. The good quality and low price helps the company stay competitive. But is it right to purchase the products? This is an ethical dilemma. Suppose the foreign nation does not prohibit child labor, and the other country does not prohibit these imports, It may be legal, but isit right? The child-labor situation has other complexities. Let’s assume that the purchase is wrong because children are being exploited; but, on one hand, the families of these children need their income for food and shelter. Is it still wrong? Under the circumstances, perhaps buying those products provides a greater good, Sometimes professionat or personal ethics may conflict with business ethics, From the business standpoint, staffs are paid to further their employers interests. But the staff also has professional and personal ethics to uphold. Here are some dificult sample situations: ‘* To remain competitive, 2 company decided to use cheaper lumber in the ladders it sells although this may, in some instances, cause injury. ‘© A staff is asked to take part in a clandestine investigation of the personal life of an employee. ‘© Asuperior directs a subordinate not to hire 2 qualified individual because he is “not his (superior’s) type”, © Ahuman resource manager must lay off a staff who desperately needs the income and the staff is without any good alternative job option. ‘¢ Having privileged or insider information which can surely help the trusted staff earn significant amount of money from the stack market. ‘There are no easy answers to ethical dilemmas. When we are attempting to solve an ethical dilemma, we follow a process of ethical reasoning. We look at the information available to us and draw conclusions based on that information in relation to our own ethical standards. An individual must have a well-developed conscience and must do what the conscience tell is right. Individual factors, organizational relationships and ‘opportunity interact to determine ethical decisions in business. In its simplest way, an ethical problem can be solved in three basic steps: analyze the consequences, analyze the actions, and make a decision. Sometimes when faced with limited information and therefore, without any alternatives, the “sleep-test ethics” can be help. In Defining Moments, by Joseph Badaracco Jr, sleep test is supposed to tell people whether or not they have made a morally sound decision. “A person who made a right choice can sleep soundly afterAccounting and its Environment |_37 Ethical Financial Reporting Ethics is especially important in preparing financial reports because users of these reports must depend on the good faith of the people involved in their preparation. Users have no other assurance that the reports are accurate and fully disclose all relevant facts. Imagine trying to carry on a business or invest money if you could not depend on the individuals you deal with to be honest. If managers, customers, investors, co-workers, and creditors all consistently lied, effective communication and economic activity would be impossible. Information would have no credibility. Corporate America’s long-buried losses, financial shell games, corrupt practices and secret self-dealings were suddenly exposed in media. Big names like Enron, WorldCom, Tyco, Qwest, Adelphia, Bernard L. Madoff Securities LUC, and others went down one after another. The common reason for these unprecedented business failures was fraudulent financial reporting, The intentional preparation of misleading financial statements is called fraudulent financial reporting. These intentional acts are achieved through the manipulation of records, falsification of transactions or the intentional misapplication of various accounting principles to be able to obtain a loan, to meet earnings projections, or to increase the value of the company. To illustrate the gravity of the problem, in 2002, WorldCom, the second largest long- distance and Internet carrier in the U.S.A. became the subject of a Securities and Exchange Commission (SEC) investigationvand it was revealed that WorldCom overstated its earnings by USS3.8 billion. Enron, before its bankruptcy in late 2001, employed around 21,000 people and was one of the world’s leading electricity, natural gas, pulp and paper, and communications companies. It's the 7° largest company in the United States before the fiasco. It reported revenues of US$111 billion in 2000. Its collapse ‘caused over US$60 bilion in stock market losses. In June 2009, Bernard Madoff was sentenced to 150 years in prison for defrauding thousands of investors in one of the biggest frauds, another Ponai scheme, in American history. The extent of the fraud is estimated at USS50 billion Committing fraud is certainly an illegal act usually perpetrated by senior management. It shows that the people involved in these acts had failure in character, They created a culture of greed and indifference to the truth. They exhibited a serious lack of ethical ‘awareness and ethical conscience. New laws, regulations and standards were passed to address the problems. Ethics and corporate governance suddenly became the big thing. Business schools immediately faced the challenges squarely by revising and including business ethics and governance in their curriculum, Sarbanes-Oxley Act {In the United States of America, the Sarbanes-Oxley Act (or SOX), signed into law by President George W. Bush on July 30, 2002, is the most far-reaching attempt to protect38.1 Basic Financial Accounting and Reporting by Prof. WIN Ballada investors since President Franklin Delano Roosevelt's 1933 Securities Act following the Great Depression. The law applies to all companies that are required to file periodic reports with the US SEC. This Act is significant because of its international dimension, Around 1,500 non-US companies, including many of the world's largest, list their shares inthe us. SOX Is a legislation which resulted from the widespread disillusionment about corporate integrity. Some of the major provisions of SOX designed to restore public confidence are as follows: * The SEC is required to establish a fulltime five-member federal oversight board that will police the accounting industry. + Chief executive and financial officers are required to certify periodic financial Teports and are subject to criminal penalties for violations of securities reporting requirements, * Accounting firms are prohibited from providing many types of consulting services to the companies they audit. + Auditors must maintain financial documents and audit work papers fr 5 years. * Auditors and accountants can be imprisoned for up to twenty years for destroying. financial documents and wilful violations ofthe securities laws, + A public corporation must change its lead auditing firm every five years ‘There is added protection for whistle-blowers who report violations of the SOX. SOX shifts responsibility for financial probity and accuracy to the board’s audit committee. + It also requires appointment .of independent directors, Increased. financial statement disclosures, an internal code of ethics, among others, Code of Corporate Governance On April S, 2002, the Securities and Exchange Commission of the Philippines issued Memorandum Circular No. 2 otherwise known as the Code of Corporate Governance. ‘he Code of Ethics for Professional Accountants inthe Philippines was recently adopted from the revised Code of Ethics for Professional Accountants developed by international Federation of Accountants (IFAC) and will be effective June 30, 2008, These events usher in a new era in the relationship among business, government, the investing public ‘and other users of financial information, CODE OF ETHICS FOR PROFESSIONAL ACCOUNTANTS IN THE PHILIPPINES The Code of Ethics for Professional Accountants in the Philippines have been approved by the Board of Directors of the Philippine Institute of Certified Public Accountants (PICPA) and the same has been adopted by the Board of Accountancy (BOA) and finally approved by the Professional Regulation Commission (PRC) as part of the rules and regulations of the BOA for the practice of the accountancy profession, PICPA as a member of the International Federation of Accountants (IFAC) is committed fo the IFAC’s broad objective of developing and enhancing a coordinated worldwide‘Accounting and its Environment | 39 an ae ie as ‘accountancy profession with harmonized standards. In working toward this objective, IFAC develops guidance on ethics for professional accountants. The International Federation of Accountants (IFAC) is an international body representing all the major accountancy bodies across the world. Its mission is to develop the high standards of professional accountants and enhance the quality of services they provide. {As a condition of its membership, PICPA is obliged to support the work of IFAC by informing its members of every pronouncement developed by IFAC, and to work towards implementation, when and to the extent possible, under local circumstances, of all these pronouncements. The Code of Ethics for Professional Accountants in the Philippines is based on the revised Code of Ethics for Professional Accountants developed by IFAC. Introduction to the Code ‘A distinguishing mark of the accountancy profession is its acceptance of the responsibility to act iri the public interest. Therefore, 2 professional accountant’s responsibility is not exclusively to satisfy the needs of an individual client or employer. In acting in the public interest a professional accountant should observe and comply with the ethical requirements of the Code. ‘A professional accountant is a defined as “an individual who holds a valid certificate issued by the Board of Accountancy (.e., Certified Public Accountant), whether he/she be in public practice, industry, commerce, the public sector or education.” The Code is in three parts. Part A establishes the fundamental principles of professional ethics for professional accountants and provides a conceptual framework for applying those principles. Parts B and C illustrate how the conceptual framework is to be applied in specific situations. Part B applies to professional accountants in public practice. Part C applies to professional accountants in business. Professional accountants in public practice may also find the guidance in Part C relevant to their particular circumstances. Fundamental Principles ‘A professional accountant is required to observe the following fundamental principles: Integrity A professional accountant should be straightforward and honest in all professional and business relationships. Integrity also implies fair dealing and truthfulness. ‘A professional accountant should not be associated with reports, returns, ‘communications or other information where they believe that the information:42 | Basie Financial Accounting and Reporting by Prof. WIN Bollada Of businesses, The accountant may be engaged in any of the following areas of competence: Public Practice ‘Accountants who render services on a fee basis and staff accountants employed by them are engaged in public practice. Public accountants, who practice individually or as members of public accounting firms, should be certified public accountants (CPAs). They offer their professional services to the public. Their work includes auditing, taxation and management advisory services, ‘Some public accountants pool their talents and work together in a single firm. Most Public accounting firms are called CPA firms since most of their professional employees are CPAs. Firms vary greatly in size. Some are small proprietorships and others are large partnerships. There are large global CPA firms with more than 1,000 partners. In the United States, some of the largest accounting firms (in alphabetical order) are as follows: Deloitte & Touche, Ernst & Young, KPMG, and PriceWaterhouse Coopers. Arthur Andersen & Co. is now history; she used to be the biggest but succumbed to Pressures brought about by a lot of financial fiascos including that of Enron, Sunbeam, ‘Waste Management and WorldCom. These firms employ only about 12 percent of the CPAs in the United States but they audit the financial statements of approximately 85 percent of the top corporations. In the Philippines, the biggest firm with eight offices across the country is Sycip Gorres Velayo & Co. (SGV & Co.) with over 1,800 professionals from various disciplines, SGV & Co. is a member practice of Ernst & Young Global. The other bigger firms are Punongbayan & Araullo, Laya Mananghaya & Co., C.L. Manabat & Co., Isla, Lipana & Co. (Joaquin Cunanan & Co,), Constantino, Guadalquiver & Co., Carlos J. Valdez & Co,, Alba Romeo & Co., Diaz Murillo Dalupan & Co. and Reyes Tacandong & Co. among others. ‘The top partners in these large accounting firms earn about the same amount as the top executives of other large businesses, Public accounting is the frequently traveled career ath because it offers excellent opportunities to gain multi-faceted business experience. 't is normal to hear of managers, executives and even supervisors becoming a large corporation's chief executive or financial officer. Sample Entry-level jobs: Audit Staff, Tax Staff, Management Services/Consulting Staff; Middle-level positions: Audit Manager, Tax Manager, Consulting Manager; Advanced positions: Partner, Senior Partner, Senior Consultant/Financial Advisor. Commerce and industry Accountants employed in this area vary widely in their scope of activities and responsibilities. Sample Entry-level jobs: Financial: Accounting and Reporting Staff, Management Accounting Staff, Tax Accounting Staff, Internal Audit Staff, Financial Analyst, Budget Analyst, Credit Analyst, Cost Accountant; Midale-level positions: Comptroller, Senior44 | Basie Financial Accounting and Reporting by Prof. WIN Ballada ‘The main branches of accounting and their brief descriptions are discussed as follows: Auditing Auditing is the accountancy profession's most significant service to the public. An external audit is the independent examination that ensures the fairness and reliability of ‘the reports that management submits to users outside the business entity. The result of the examinations is embodied in the independent auditor's report. Once the required financial statements have been prepared by management, they have to be evaluated in order to ensure that they do not present a distorted picture. External auditors are appointed from outside the organization. The external auditor's job is to protect the interests of the users of the financial statements. By contrast, internal auditors are employees of the company. They are appointed by, and answer to, ‘the company’s management though they work independently of the accounting and other departments. They ensure the accuracy of business records, uncover internal control problems and identify operational difficulties. To differentiate further, internal auditors perform routine tasks and undertake detailed ‘checking of the company’s accounting procedures, whereas external auditors are likely to go in for much more selective testing. Nonetheless, they usually work very closely together, although the distinction made between them stil remains important: Bookkeeping ‘ Bookkeeping is a mechanical task, involving the collection of basic financial data. The data are first entered in the accounting records or the books of accounts, and then extracted, classified and summarized in the form of income statement, balance sheet and cash flows statement. This process normally takes place once a month. An income statement shows whether the business has made a profit or loss during the period, ie. it ‘measures how well the business has done. A balance sheet lists what the entity owns (its assets), and what it owes (its liabilities) as at the end of the period, The cash flows statement presents the cash inflows and outflows of the business during the period ‘The bookkeeping procedures usually end when the basic data have been entered in the ‘books of accounts and the accuracy of each entry has been tested, At that stage, the accounting function takes over. Accounting tends to be used as a generic term covering almost anything to do with the collection and use of basic financial data. It should, however, be more properly applied to the use to which the data are put once they have been extracted from the books of accounts. Bookkeeping is a routine operation, while accounting requires the ability to examine a problem using both financial and non- financial data.Accounting and its Environment | 45 ——— Cost Bookkeeping, Costing, and Cost Accounting, Cost bookkeeping is the process that involves the recording of cost data in books of accounts. Itis, therefore, similar to bookkeeping except that data are recorded in very much greater detail. Cost accounting makes use of those data once they have been extracted from the cost books in providing information for managerial planning and control. Accountants are now discouraged from using the term ‘costing’ unless it is qualified in some way, ie. by referring to some branch of costing (such as standard costing), but even so you will stil find the term ‘costing’ in general use. The difference between bookkeeping per se and cost bookkeeping is largely one of degree of detail. A cost accounting system contains a great deal more data, and thus ‘once the data are summarized there is much more information available to the management of the company. Cost accounting deals with the collection, allocation, and control of the cost of producing specific goods and services. This accumulation and explanation of actual and prospective cost data is important to control current ‘operations and to plan for the future. Cost accounting now forms one of the main sub- branches of management accounting Financial Accounting Financial accounting is focused on the recording of business transactions and the periodic preparation of reports on financial position and results of operations. Financial accountants accord importance to generally accepted accounting principles. Financial accounting is the more specific term applied to the preparation and subsequent publication of highly summarized financial information. The information supplied is usually for the benefit of the owners of an entity, but it can also be used by management for planning and control purposes. It will also be of interest to other parties, eg. employees and creditors . inancial Management Financial management is a relatively new branch of accounting that has grown rapidly over the last 30 years. Financial managers are responsible for setting financial objectives, making plans based on those objectives, obtaining the finance needed to achieve the plans, and generally safeguarding all the financial resources of the entity. Financial managers are much more heavily involved in the management of the entity than is generally the case with either financial or management accountants. It should also be noted that the financial manager draws on a much wider range of disciplines (such as economics and mathematics) and relies more extensively on non-financial data than does the more traditional accountant. Management Accounting ‘Management accounting incorporates cost accounting data and adapts them for specific decisions which management may be called upon to make. A management accounting46 |. Basic Financi | Accounting and Reporting by Prof. WIN Bollada system incorporates all types of financial and non-financial information from a wide range of sources. Taxation Tax accounting includes the preparation of tax returns and the consideration of the tax consequences of proposed business transactions or alternative courses of action. As typically known, accountants involved in tax work are responsible for computing the amount of tax payable by both business entities and individuals but their work is really more complex. Accountants with this specialization aim to comply with existing tax statutes but are also in constant legal search for ways to minimize tax payments, It is not necessary for either companies or individuals to pay more tax than is lawfully due. If ‘tax experts attempt to reduce their clients’ tax liabilities strictly in accordance with the law, this is known as ‘tax avoidance’. Tax avoidance is a perfectly legitimate exercise, bbut tax evasion (the non-declaration of sources of income on which tax might be due) is a very serious offense. Government Accounting It is concerned with the identification of the sources and uses of resources consistent with the provisions of city, municipal, provincial or national laws. The government collects and spends huge amount of public funds annually so itis necessary that there is proper custody and disposition of these funds. ACADEMICIANS, STUDENTS AND EDUCATORS ALLIANCE (ASEAN Party List) Academicians, Students and Educators Alliance, Inc. (ASEAN Inc.) is a non-stock, non-profit corporation organized and registered with the Securities and Exchange Commission (SEC). Its Chairman and 1st Nominee is Prof. WIN Ballada, CPA, cBE, MBA. ASEAN Inc. is a sectoral party for purposes of Participating in the Party List System of Representation under Republic Act No. 7941. ‘ASEAN Party List seeks to represent the students, out-of-school youth and professionals to champion~ Principled and Competent Leadership. Integrity in Public Service. ‘Quality Basic, TechVoc and College Education. Faculty and Student Development and Support Thru Scholarships and Subsidies, Tax Reform. Ease of Doing Business. Inclusive Growth. ‘The logo of ASEAN inc, resembles a waving flag with the letters ASEAN emblazoned prominently. The sun provides illumination and lights the way. It also represents the intensity of the ideals of the organization. The people in the middle of the sun signifies that the interests of the sectors being represented are foremost in the heart of theAccounting and its Environment | 47 nH leaders of the organization. The stars express the high aspirations of the érganization ‘The colors red, yellow and blue were used. ‘As provided for under Article Il of its Constitution and By-Laws, the follov and objectives: “Section 2. Objectives. The party commits itself to the attainment ofthe following objectives: 12. To bring together the academicians, students, educators and other related sectors to ‘champion quality education forall. 'b. To improve the social and economic welfare of professionals, students and the related ‘marginalized sectors by providing a comprehensive and progressive program for thelr sustainable development. & To foster research ond publishing activities that will bring forth new knowledge, Jnnovetive ideas and quality educational materials to as many users. 4. Topromote principled and competent leadership, and integrity in public service. 2. To influence policy formulation, work with concerned agencies and pursue the ‘enactment of legislative measures that will push for the realization of the agenda of the organization for ts constituents Ff To serve as an effective instrument for educational, professional and national development.” are its goals, Last May 9, 2016 National Elections, ASEAN garnered 125,069 votes (not enough to win a seat; required votes = 235,000). ASEAN fought a clean fight and intend to do the same for #ASEANPartyList2019, ASEAN will WIN the next time, in May 13, 2019, with more ‘time and more active volunteer campaigners. ASEAN can be your advocate in the House of Representatives. Please refer to the inside front cover and the first two pages of this book for other details about ASEAN Party List. For periodic-updates, join the new FB Group and add Members: www.facebook.com/groups/ASEANparty PHILIPPINE ASSOCIATION OF COLLEGIATE SCHOOLS OF BUSINESS (PACSB) {In 1960, the Industrial Development Center of Manila and the International Cooperation ‘Administration (now Agency for International Development of the United States State Department) initiated the organization of a team of deans of business schools in the Philippines. Officially designated as the Philippine Schools of Management and Business ‘Administration Study Team, the group left in 1961 for an observation tour covering 12 universities and 11 corporations and foundations concerned with business education in the US.A. The team focused their observations on curriculum development, school- industry relations, general school administration and faculty qualifications and relations. Upon its return, the expedition team invited representatives from other business schools and formed an Executive Committee which was later expanded and formalized Into the Philippine Association of Collegiate Schools of Business (PACSB). PACSB was formally organized on July 21, 1962 with Dr. Santiago F. Dela Cruz as Founding President. In 2012, PACSB celebrated its 50 years of existence. Joining Dr. Dela Cruz as past presidents are: Dean Belen Enrile-Gutierrez; Dean Pascasio S. Banaria; Dean Sotero48 | Basic Financial Accounting and Reporting by Prof. WIN Ballado D. Lopez; Dean Felimon V. De Las Alas; Dean Cleatilde G. Protomartir; Fr. Emmanuel Ma. R. Balcruz, OSB; Dean Jose L. Papa; Dean Mercedes M. Leuterio; Dean lose Baltazar; Dr. Mariano M. Lerin; Fr. Dionisio C. Cachero, OAR; Dean Leonida T. Africa; Dr. Remedios §. Ching; Dean Victorino Frias; Dr. Arlyn S. Villanueva; Dr. Vicente K. Fabella; Dr. Reynaldo S. Bautista and Dr. Amado L, Magsino. This discussion on PACSB is significant because it educates the business students on the effective and efficient efforts of the PACSB to continuously improve business education inthe Philippines. The PACSB is always at the forefront of the following developmental activities: conduct of seminars for faculty development; provisions of consultancy and other services to member Schools; spearheading curiculum changes and revisions and upgrading rules and standards for business education; conduct of dialogues with government agencles (e.g the Professional Regulation Commission, the Commission on Higher Education (CHED)}; linkages with businesses, industries, associations, agencies and institutions concerned with business ‘education; scholarship and research grants for faculty members of business schools; student involvement in surveys monitoring performance of government agencies and annual conferences {for business schools nationwide. PACSB maintains close working relationships with the following: Technical Panel for Business and Industry of CHED, Philippine Stock Exchange (PSE), Financial Executives Institute of the Philippines (FINEX), Philippine Marketing Association (PMA), Bankers Association of the Philippines (BAP), Philippine eLearning Society, Bureau of Internal Revenue (BIR), Civil Service Commission (CSC), Philippine Institute of Certified Public Accountants (PICPA\, Phillpine Couneil for Management, Junior Achievement of the Philippines, International Federation for Business Education, and Fund for Assistance to Private Fducation (FAPE), PHILIPPINE COUNCIL OF DEANS AND EDUCATORS IN BUSINESS (PCDEB) 'n 2002, the Philippine Council of Deans and Educators in Business (PCDEB) was organized. During the 1* National Assembly of PCDEB held on October 18-19, 2001 at ‘the Manila Midtown Hotel, the Deans elected the charter officers and directors with Dr. Conrado E. Ifigo, Jr. of the Lyceum of the Philippines University, formerly with Centro Escolar University-Manila as its Charter President. This council of deans of Philippine business schools realized the need of organizing an association of all business school deans and educators, ‘These business educators have taken the challenge of advancing the quality of business education. Through the years, the following proactive programs and strategic plans ‘were implemented by PCDEB: *+ initiated the Annual Search for Outstanding Business Educators in the Philippines in collaboration with Petron Foundation, Inc. asits major sponsor, * participated as charter member of the Philippine Movement for Good Governance with the vision of advocating good governance and responsible citizenship, "+ _ established linkages with the Management Association of the Philippines, Personal Management Association of the Philippines, Philippine Council of Management and, Philippine institute of Certified Accountants;