\y Republic of the Philippines: Bi Professional Regulation Conumssion ay ie BOARD OF ACCOUNTANCY: September 24, 2012 MEMORANDUM To All schools, Colleges and Universities offering Bachelor of Science Accountancy (BSA) Program; Cenified Public Accountants (CPA) Review Centers and Examinees to the October , 2012 and subsequent CPA Lisensure Examinations Subject STANDARDS AND OTHER TOPICS COVERED IN THE OCTOBER, 2017 AND SUBSQUENT CPA LICENCURE EXAMINATION Further to the Memorandum of the Board of Accountancy dated May 10, 2012. for the coverage of the CPA Licensure examinations, please be informed that the following auditing and financial reporting standards will not be included in the October 11, 2012 CPA Licensure examinations However, those that are effective on January 1, 2013 and January 1, 2015 will be included effective with the Licensure Examinations in May, 2013 and May 2015 respectively. ‘Number Title Effectivi Pas 19 Employee Benefits (Revised) January 1, 2013 PAS 27 Separate Financial Statements January 1, 2013 PAS. 28 Investments in Associates and Joint Ventures January 1, 2013 Amendments toPAS 32 Offsetting Financial Assets and Financial Liabilities January 1, 2013 Amendments to PFRS 7 Di ing Financial Assets and Financial January 1, 2013 PERS 5 Financial Instruments January 1, 2015 PFRS 10 Cons January 1, 2013 PFRS 11 Joint Arrangements January 1, 2013 PERS 12 Disclosure of Interests in Other Entities January 1, 2013 PERS 13 Fair Value Measurement Janary 1, 2013 PIC TFRIC 20 Stripping Cast in the Production Phase of a Surface January 1,2013 Mine For your guidance. P-PAREDES ST, CORNER MORAYTASTAEET,SANPALOG, MANILA PHILIPPINESTo FROM SUBIECT DATE This is to inform you that the standards and other topics listed below will be included in the Board of Accountancy MEMORANDUM All Schools, Colleges, and Universities Offering Bachelor of Science in ‘Accountancy (BSA) Program; Certified Public Accountants (CPA) Review Centers; and Examines in the October 2012 and Subsequent CPA Licensure Examinations Board of Accountancy STANDARDS AND OTHER TOPICS COVERED IN THE OCTOBER 2012 AND SUBSEQUENT CPA LICENSURE EXAMINATIONS May 10, 2012 October 2012 and subsequent CPA Licensure Examinations. 4.0 Philippine Financial Reporting Standards and Related Interpretations 1.1 Philippine Accounting Standards (PAS) Effective as of December 31, 2011 Number pasa PAS 2 pas 7. Pas Pas, 10 pas) a Pas 32 PAS 16 pas 7 PAS 18 Pas 19 PAS 20 PAS 2 Pas 2B PAS 2a PAS 26 paso PAS 28 Pas 29 PAS Pas pas 33 PAS 34 Title Conceptual Framework for Financial Reporting 2020 Presentation of Financial Statements Inventories Statement of Cash Flows ‘Accounting Policies, Changes in Accounting Estimates, and Errors Events after the Reporting Perica Construction Contracts Income Taxes Property, Plant, and Equipment Leseer Revenue Employee Benefits Accounting for Government Grants and Disclosure of Government Assistance The Effects of Charges in Foreign Exchange Rates Borrowing Costs Related Party Disclosures Accounting and Reporting by Retirement Benefit Plans Consclidated and Separate Financial Statements Investment in Associates Financial Reporting in Hyperinfletionery Economics Interests in Joint Ventures Finan Eamings per Share Interim Financial Reporting Instrumente: PresentationPas Pas PAS Pas Pas Pas 36 7 38 39 40 a Impairment of Assets Provisions, Contingent Labities, and Contingent Assets Incangible Assets Financial Instruments: Recognition ané Measurement Investment Property Aariculture 12 Philippine Financial Reporting Standards (PFRS) Effective as of December 31, 2011, Number PRs. PRS. PRS. Pras. PAS. PRS. Pras Pras Title FirstTime Adoption of Philippine Financial Reporting Standards Share-Based Payment Business Combinations Insurance Contracts [Non-Current Assets Held for Sale and Discontinued Operations Exploration for ang Evaluation of Mineral Resources Financial Instruments: Disclosures Operating Segments 1.3 Philippine Interpretations Effective os of December 31, 2011 pretation Number Philippine inter FRC 1 wre 2 wc 4 WRC 5 rac 6 lrre 7 rac 9 FRc 0 IFAC 12 IFAC FRC FRC 16 FRC 7 RC 1B ieic 33 se 27 sic 10 sc om sic 3 se se oon - sic 5 se om - sie 28 sic 31 sic 82 Title CChangesin Existing Decomrrissioning. Restoration, and Similar Lablties ‘Members’ hares in Co-operative Enttiesand Similar Instruments Determining Whether an Ariangement Contzinsa Lease Rights to Interests Arising from Decommissioning, Restoration and Environmental Rehabilitation Funds Labitties Arising from Participating in a Spectfc Market ~ Waste Electrical and Electronic Equipment ‘Applying the Restatement Agproach under PAS 29 Financial Reporting i Hyperinfltionary Economies Reassessment of Embedded Derivatives Interim Financial Reporting and impairment Service Concession Arrangements Customer Loyaty Programmes PAS 19 The Limiton a Cefined Benefit Asset, Minimum Funding Requirements ‘and ther interaction Hedges ofa Net Investment in aForeign Operation Distrioutions of Non-Cash Assets to Owners Transfers of Assets from Customers ‘Extinguishing Financial Uabilties with Equty instruments Introduction ofthe Euro Governmant Assistance ~ No Spacific Relation te Operating Activities Consolidation ~ Special-Purpose Entities Jointly Controlled Entities ~ Nom Monetary Contributions by Venturers Operating Leases ~Incentives Income Taxes ~ Recovery of Revalued Non-Depreciable Assets Income Taxes ~ Changes in the Tax Status ofan Entity ots Shareholders Evaluating the Substance of Transactions Involving the Legal Form of a Lease ‘Service Concession Arrangements: Disclosures Revenue Barter Transactions involving Advertising Services Intangible Assess - Web Site Costs1.4 Other Standards Adopted as of December 31, 2011 with Subsequent Application amendments to PAS 2 Amandments to PAS 12 Pas Pas Pas Amendments te PAS 32 Amendments to PERS? Peas PRS Pers PRs PRS Philppne 8 2 28 8 20 a 2 a Number Interpretation \FRIc20 20 Philippine standards on quality Control (PSC), ‘Agplicable to Annual Tite Perod Beginning On alter presentation of tems of Other Comprehensive income say 2, 2012 Deferred Tax Recovery of Underlying Assets January 3, 2012 Empayee Benefts Revsed) January 3.2033, Separate Finanell Statements Jansary 1, 2013 Investments in Associates and loin Ventures Janaary 3, 2013, Offsecting Franca Assets ana Financ Lilies January 1, 2018 Disclosures Transfer of Franca Assets duly 32032 Decleurae - OfeottingFinancialAeeoe ad Fnarcil naar) 3, 2028, Uapiltes Fnancalinsruments January 1, 2015. Consolidated Financal Statements Jansary 1, 2013, sont arrangements January 1, 2013 Daclosure of interest In Ober Enttles Jonvery 3, 2033 Fair Value Measurement January 2.2013, ‘Swipping Costs nthe Production Phase of Surface Mine January 3, 2013 hillppine Standards on Auditing (PSAs), Philippine Auditing Practice Statements (PAPSS), Philippine Standards on Review Engagements (PSREs), Philippine Standards on Assurance Engagements (PSAES), Philippine ‘Standards on Related Services (PSRSs), and their Related Frameworks Psa Psa psa Psa Psa Number 220 200 20 20 230 Redraftes - Rewsed and Redrafted Redratted Redraites —- Redratted —- Tite International Auciting and Assurance Standards Board ~ Interim Terms of Reference Preface tothe international Standards on Qualty Contro}, Auciting, Review, Other Assurance and Related Services and Pre'ace to Philippine Standards on Quality Control, Auditing, Rewew, Othe: Assurance and Related Services Philippine Framework for Assurance Engagements Glossary of Terms (December 2002) Quality Control for Firms that Perform Audits and Reviews of Financial Statements, and Other Assurance and Related Services Engagements Framewort of Philipaine Standards on Auditing ‘Overall Objectives of the independent Auditor anc the ‘Conduct of an Audit in Accordance with Phiippine Standards ‘on Audting Agreeing the Terme of Aud Engagements ‘Quality Control for an Audit of Firancal Statements ‘Aucit DocumentationPsA Psa PsA sa PsA 5A PsA Psa Psa PsA PsA PSA PSA PSA PsA Psa PsA PsA PsA PSA PSA PsA PsA oN PSA PSA PSA PsA PsA PSA PSA 240 20 260 265 315 320 330 450 501 505 310 520 sto 550 550 370 580 600 10 20 700 705 76 no 70 05 a10 Resrafied Rodrafted Revised and Resrafted Redrafted Redratted Rewsed and Redrattes Rodratted Revsed and Redratted Revsed and Redrafted Redratted Redratted Revised and Resratted Redrafted Redratted Redrated Revised and Redrafted Revised and Resrafted Retrafted Resrafted Revisee ard Resraftes Revised and Redraftes Redrated Revies and Redrattes Redraftes Revised ard Redrattes Revsed ard Redrattes Rearattes Redraited Revised and Redratted Revsee ard Redratted Revised ard Redratted ‘The Auditor's Responsibilities Relating to Fraud in an Aut of Financial Statements Consideration of Laws and Regulations in an Audit of Financial Statements Communication with Those Charged with Governance Communicating Deficiencies in interral Control to Those Charged with Governance and Management Plannirg an Audit of Financial Statements Identifying and Assessing the Risks of Material IMisstatements Through Understanding the Entity and Its Environment Materialityn Planning and Performing an Audit ‘The Ausitor's Responses to Assessed Risks Audit Considerations Relating to an Entity Using a Service Organization Evavvation of Misstatements ldentified during the Aueit Audit Evidence ‘Aust Evidence ~ Specific Considerations for Selected items External Contemations Internal Audit Engagements ~ Opening Balances Analytical Procedures Audit Sampling Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures Relates Parties Subsequent Events Going Concern Written Representations ‘Special Considerations ~ Audits of Group Financlal Statements (Including the Work of Component Auditors) Using the Work of Internal Aveitors Using the Work of an Auditor's oer Forming an Opinion and Reoorting on Financial Statements Modifcationsto the Opinion in the Independent Auditor's Report Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor's Report ‘Comparative Information ~ Corresponding Figures and ‘Comparative Financial Statements The Auditer’s Responsibility in Relation to Other Information In Documents Containing Audited Financial Staternents Special Considerations ~ Audit: of Financial Statements Prepared in Accordance with Special Pursose Framework: Special Considerations ~ Audits of Single Financial Statements and Specific Elements, Accounts or items af a Financial Statement Engagements to Report on Summary Financial StatementsPaps PAS PAS PAPS PAPS Paps Paps ApS Paps Paps Paes sre PSRE Pore SRE PsA Psae Psat srs srs 1000 1000P 1002 1003P 2004 005 1006 010 a012 1013 so1a 2400 2410 2400 2810 3402 +2000 3400 ‘4400 a0 Revied Revised Revised ‘Amendments ‘Amendments Revised Inter-Bank Confirmation Procedures uct Evidence ~Practical Problems in Audi of Financial Statements ‘The Ausitor’ Report on General Purpose Finarcial Statements Prepared in Accordance witha Phitppne Financial Reporting Framework other than PFRS Guidance on Dealing with Reports Required by the SEC Relating to increase in Authorized Capital Stock of a Corporation ‘The Relationship Between Bangko Sentral ng Plipinas (BSP) and Banks’ Exernal Aucitors ‘The Special Consideration in the Audr of Small Entities Aucits ofthe Financial statements of Banks ‘The Consideration of vironmental Matters in the Audit of Financial Statements ‘Auditing Derivative Financial Instruments Electronic Commerce ~ Effect on the Audit of Financial Statements Reporting by Aucitors on Compliance with International Financial Reporting Standards Engagements to Review Financial Statements Review of Interim Financial Information Performed by the Independent Austor ofthe Entity {Engagements to Review Firancia statements Review of Interim Financial Information Performed by the Independent Auditor of the Entity Assurance Reports on Controls ata Service Organisation Assurance Engagements Other Than Audits or Reviews of Historical Financial Statements ‘The Examination of Prospective Financial Information Engagements to Perform Agreed-Upon Procedures Regarding Financial information Engagements to Compile Flaarcal Information Other topics covered in previous BOA memoranda that are not covered in this memorandum remain to be unchanged and effective.