Rules on Financial Statement Preparation now for Comments

The Board of Accountancy (BoA) is asking for comments on the proposed rules on Financial Statements (FS) preparation and the requirement for the Certificate of FS preparation (“Certificate”). The draft resolution and rules on this are now posted in the BoA website and have been disseminated to the various sectoral organizations, including PICPA, ACPAPP, ACPACI and NACPAE.


The draft rules provide, among others, the following:

  1. Requirement of the attachment to the annual FS of a Certificate on the preparation of Financial Statements and notes to the Financial Statements
  2. The Certificate shall be prepared only for issuers which/who have gross sales or revenues exceeding ten million pesos (P10,000,000) for a particular accounting year
  3. The preparation of the FS and disclosure notes is a practice of accountancy in commerce and industry and shall be done only by Certified Public Accountants (“CPAs”)
  4. The reiteration of the rule that CPAs in public practice are prohibited from preparing or assisting in the preparation of FS and disclosure note of their clients which engaged them to render attest services for the same documents
  5. The CPAs in public practice who violate this prohibition rule shall be subject to stern sanctions by the Board of Accountancy
  6. The CPAs preparing the FS and the Certificate shall first be accredited with the Professional Regulatory Board of Accountancy after submitting the necessary application and complying with the Continuing Professional Development (CPD).
  7. These CPAs should apply for accreditation not later than December 31, 2015 and comply with the CPD requirements not later than June 30, 2016 after signing an affidavit of undertaking to that effect.

Comments on the proposed resolution can be submitted to not later than December 4, 2015.

Notice: This article is published in cooperation with the Board of Accountancy Secretariat and permission was obtained to post this article in this website.

Disclaimer: Opinions expressed in this article are that of the author and information provided are for general conceptual guidance for public information and are not substitute for expert advice. Contact for more information and if you want to avail professional services. Find us on Facebook!

The function of the Board of Accountancy is to supervise and regulate the practice of accountancy and to implement the provisions of Republic Act No. 9298, otherwise known as the Philippine Accounting Act of 2004. For more information, contact

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