The Auditing and Assurance Standards Council (AASC) has issued AASC Alert Series 002 of 2011, Q&A on RR 15-2010. This alert was issued to answer common questions on reporting under RR 15-2011 as well as provide illustrative audit report as oppose to financial statement disclosure content. What is RR 15-2010, in the first place?
The Bureau of Internal Revenue (BIR) issued on November 25, 2010 Revenue Regulation (RR) 15-2010, Amending Certain Provisions of Revenue Regulations No. 21-2002, as Amended, Implementing Section 6 (H) of the Tax Code of 1997, Authorizing the Commissioner of Internal Revenue to Prescribe Additional Procedural and/or Documentary Requirements in Connection with the Preparation and Submission of Financial Statements Accompanying Income Tax Returns.
RR 15-2010 required that in addition to the disclosures mandated under the Philippine Financial Reporting Standards and/or Conventions, specific information regarding various taxes (RR 15-2010 Tax Information – see RR 15-2010, Section 2, items 1 to 9) should be included in the Notes to Financial Statements, that will accompany the income tax returns that will be submitted to the BIR.
AASC Alert Series 002 of 2011, Q&A on RR 15-2010 answers the following:
- Are RR 15-2010 disclosures required under Philippine Financial Reporting Standards (PFRS)?
- How should the disclosures required by RR 15-2010 be presented in the financial statements?
- Are the RR 15-2010 disclosures required to be presented in the consolidated financial statements?
- How should the auditor report on the RR 15-2010 disclosures?
- How would the “Report on the Supplementary Information required under RR 15-2010” be affected if the “Report on the Financial Statements” contains a qualified opinion?
- How would the “Report on the Supplementary Information required under RR 15-2010” be affected if the “Report on the Financial Statements” contains an adverse opinion or a disclaimer of opinion?
- Would the “Report on the Financial Statements” be affected if the supplementary information required under RR 15-2010 is not presented?
Illustrative Auditors’ Report are also presented under the Appendix of the Alert.