John Lloyd de Los Reyes

BA- MA 101

ACTIVITY 2 - FINAL TERM

Accounting is now one of the fastest growing occupations in the Philippines. It saw great
development within 98 years following its initial recognition by the government in 1923. An ever-
increasing membership and specialized services testifies to the organization's expansion. However,
it would be incorrect to think that accounting in the country is a modern development, as historical
records show that it existed centuries before. Pioneers in the profession think it was used in its most
basic form by our pre-Spanish monarchs, tradesmen, and landowners. When the Spaniards arrived,
they brought a new and more methodical form. The Spaniards used a more or less scientific single-
entry accounting system, with some Filipino involvement. The double-entry method gained
popularity in 1898. It took the place of the ancient Spanish single-entry. The shift began in
December 1898, when Spain surrendered the Philippines to the United States. The new method,
which achieved widespread adoption in the United States and, later, the Philippines, was improved
from the Italian system by British practitioners, who had a significant impact on the accounting
practice in the Far East. It is worth noting that Philippine accounting practice differs significantly from
that of other far eastern countries due to the Western influence aside from the British.

The current accounting and bookkeeping forms were designed in 1916. The University of the
Philippines' College of Liberal Arts was the first to provide economic courses with some accounting.
Then came the Jose Rizal College, and soon after that, other higher education institutions began to
offer business courses. As trade, commerce, and agriculture expanded, so did the necessity for
accountants and those knowledgeable in commercial mathematics. In following years, the number
of bookkeepers and people competent in business mathematics increased, although they were still
not referred to as professionals. Despite the fact that they were frequently employed in business
houses, they were not recognized to be involved in the practice of accounting as a profession.
Although there were a few professional English, Scottish, and American accountant immigrants who
practiced accounting here, they did not share a similar standard in terms of the extent of topic and
responsibilities in practice. Public accountants, chartered accountants, certified public accountants,
"contadores publicos autorizados," "auditores autorizados," "peritos mercantiles," and other titles
were given to them. Accounting was first acknowledged as a profession by the Philippine
government in 1923. On March 17, 1923, the sixth Philippine Legislature granted formal recognition
by adopting Act No. 3105. The law established the Board of Accountancy, which was given the
authority to promulgate rules and regulations, set professional standards for accounting profession
practice, and issue certified public accountant certificates to those who were able to qualify in
accordance with the law's requirements, through either a waiver of the certified public accountant
examination or by passing it. The Board is made up of the chairman and two additional members.
The first Board of Accountancy was made up of members Domingo T. Dikit and Felix Tiongson, as
well as Chairman W. W. Larkin, who fought hard to get the law passed.

Six years after the Accountancy Act was passed, a group of 50 CPAs, mainly professionals, formed
the Philippines Institute of Certified Public Accountants (PICPA) to promote and maintain high
standards of professional conduct among CPAs and to foster friendly connections among them. W.
W. Larkin was the Institute's first president. The Institute grew alongside the profession in the years
that followed, as indicated by yearly membership growth and the development of provincial chapters
around the country. Conferences, seminars, and meetings were conducted in Manila as well as at
the other chapters. Under the Institute's initiative, the First Far East Conference of Accountants was
conducted in Manila in 1957, with delegates from several far eastern countries in attendance. The
conference provided the groundwork for subsequent conferences and congresses, which were later
conducted overseas, and the Institute, as the country's sole national accounting organization,
represented the country. This included: Jaime Hernandez, Francisco Dalupan, Enrique Caguiat,
Santiago de la Cruz, Washington Sycip, Prisco Evangelista, Belen E. Gutierrez, Artemio Tulio, Jose
Torres, J. S. Zulueta, Gregorio Licaros, Pascasio S. Banana, Alfredo Velayo, Ranulto Tulio,
Francisco Gonzalez IV, Eduardo Villanueva, and Cesar Bocaling,

Several amendatory legislations to the Accountancy Act (1923) were passed. Notable acts were
Nos. 3264 (1925), 3302 (1926), 3401 (1927), Commonwealth Act No. 342 (1938) and Republic Act
No. 546 (1956). The congress established a new accounting legislation on August 4, 1967. Republic
Act No. 5166 is the legislation in question. The new law established the Board of Accounting
Education, which is entitled to impose required college courses as well as job or apprenticeship
requirements for CPA examination entrance. The Board of Accountancy was expanded from three
to six members. The number of subjects on the CPA test was also expanded from four to six, with
taxes and management services included as new subjects. Other provisions are aimed at satisfying
the accounting profession's demands and challenges. In conclusion, despite being recognized just
98 years ago, the accounting profession has made progress comparable to that of other professions
in the nation, and also won the appreciation and trust of all segments of the Philippine community.
With the enactment of the new Accountancy Act and the presence of a powerful and diligent
organization such as the PICPA, it has a bright future.

From 43 registered accountants in 1923 to hundreds of thousands now, the number of Certified
Public Accountants has expanded dramatically. With the world's expanding need to comprehend
business language comes an increased demand for accountants who are required to know and
explain the data in financial accounts. The Philippine accounting legislation recognizes the value of
accountants in nation-building and growth. Accountancy legislation amendments demonstrate how
the accounting profession continues to evolve and progress, and further adjustments are predicted
in the future.

REFERENCES:

 BusinessMirror. (2018, March 18). Accountancy then and now.

https://businessmirror.com.ph/2018/03/18/accountancy-then-and-now/
 de la Cruz, B. (2021, December 19). The Growth of the Accounting Profession in the
Philippines. Guru. http://bendelacruz.blogspot.com/2008/03/growth-of-accounting-profession-
in.html
 Tan-Torres, J. L. (2018, March 7). 95 years of invaluable service. The Manila Times.
https://www.manilatimes.net/2018/03/08/opinion/analysis/95-years-of-invaluable-
service/384747