LEGEND: New Add Move Change Delete LEGEND: New Add Move Change Delete

THE CPA LICENSURE EXAMINATION SYLLABUS THE CPA LICENSURE EXAMINATION SYLLABUS
FINANCIAL ACCOUNTING AND REPORTING FINANCIAL ACCOUNTING AND REPORTING

Effective October 2022 Examination Effective May 2019 Examination

This subject covers the candidates’ ability to demonstrate understanding and This subject covers the candidates’ ability to demonstrate understanding and application of
application of accounting principles and standards relating to: nature and composition accounting principles and standards relating to: nature and composition of accounts, initial
of accounts, initial recognition, measurement and valuation, subsequent events and recognition, measurement and valuation, subsequent events and transactions, subsequent
transactions, subsequent measurement and recognition of losses due to impairment measurement and recognition of losses due to impairment and other causes, related party
and other causes, related party transactions, financial statement presentation and transactions, financial statement presentation and disclosures.
disclosures.
The candidates must have a working knowledge in the application of the various financial The candidates must have a working knowledge in the application of the various financial
accounting and reporting standards relating to the above. accounting and reporting standards relating to the above.

The candidates must also be able to communicate effectively matters pertaining to the The candidates must also be able to communicate effectively matters pertaining to the
financial accounting work that will be handled. financial accounting work that will be handled.

The knowledge of the candidates in the competencies cited above is that of an entry The knowledge of the candidates in the competencies cited above is that of an entry level
level accountant who can address the fundamental requirements of the various parties accountant who can address the fundamental requirements of the various parties that the
that the candidates will be interacting professionally in the future. candidates will be interacting professionally in the future.

New laws, standards and other issuances which are effective as of the date of the Only new standards and other issuances shall be included in the examinations if these are
examination shall supersede the related topic listed in the syllabus and will be included in effect for at least six (6) months at the date of the examination.
in the examination, unless there is an advisory from the Board of Accountancy to the
contrary.

The examination shall have seventy (70) multiple choice questions. The examination shall have seventy (70) multiple choice questions.

The syllabus for the subject is presented below. The syllabus for the subject is presented below.
 LEGEND: New Add Move Change Delete LEGEND: New Add Move Change Delete

1.0 Development of Financial Reporting Framework, Standard-Setting Bodies 1.0 Development of Financial Reporting Framework, Standard-Setting Bodies,
and Regulation of the Accountancy Profession Regulation of the Accountancy Profession, Conceptual Framework of
Financial Statements and Accounting Process
1.1 Development of Financial Reporting Framework
1.1.1 Financial Reporting Framework
1.1.2 Components of the Framework
1.1 History, Development and Functions of the Standard-Setting Bodies 1.2 Standard-Setting Bodies
1.1.1 IASB 1.2.1 AASC
1.1.2 IFRIC and SIC 1.2.2 FRSC
1.1.3 FRSC 1.2.3 PIC
1.1.4 PIC
1.2 Regulation and Environment of the Accountancy Profession in the Philippines 1.3 Regulation of the Accountancy Profession
1.2.1 The Professional Regulatory Board of Accountancy 1.3.1 Regulators of the Profession
1.2.2 The accredited professional organization of professional accountants 1.3.2 Developments in the Accountancy Professions
in the Philippines 1.3.3 Compilation Services
1.2.3 Sectors of the practice of accountancy profession and the 1.3.4 Accreditation of CPA Professionals
accreditation requirements

2.0 Conceptual Framework, Accounting Process and Presentation of Financial

Statements
2.1 The Conceptual Framework for Financial Reporting 1.4 Conceptual Framework
2.1.1 Objective and status of the conceptual framework 1.4.1 Basic Objectives of Financial Statements
2.1.2 Qualitative characteristics of useful financial information 1.4.2 Qualitative Characteristics of Financial Statements
2.1.3 Definition of, recognition and derecognition criteria and measurement 1.4.3 Elements of Financial Statements
bases for the elements of financial statements 1.4.4 Financial Capital and Physical Capital
2.1.4 Concepts of capital and capital maintenance
2.2 The Accounting Process 1.5 Accounting Process
2.2.1 The steps in the accounting process 1.5.1 Adjusting Entries
2.2.2 The use of the special journals, general journal, subsidiary ledgers 1.5.2 Accounting Cycle
and general ledgers
2.2.3 Completing the accounting cycle, including use of worksheet,
adjusting entries, closing entries and reversing entries
 LEGEND: New Add Move Change Delete LEGEND: New Add Move Change Delete

2.3 Presentation of the Financial Statements 2.0 Presentation of Financial Statements

2.3.1 General features 2.1 Statement of Financial Position
2.3.2 Statement of Financial Position 2.2 Statement of Comprehensive Income
2.3.2.1 Definition of elements 2.3 Statement of Cash Flows
2.3.2.2 Classified Statement of Financial Position 2.4 Statement of Changes in Equity
2.3.3 Statement of Comprehensive Income 2.5 Notes to the Financial Statements
2.3.3.1 Nature of expense
2.3.3.2 Function of expense
2.3.3.3 Components of profit from continuing operations
2.3.3.4 Components of discontinued operations
2.3.4 Statement of Changes in Equity
2.3.5 Statement of Cash Flows
2.3.5.1 Sections of the statement of cash flows
2.3.5.2 Preparing cash flows from operations: direct and indirect
methods
2.3.6 Notes to the Financial Statements
2.3.7 Computation and Disclosures of Earnings Per Share Information
2.3.7.1 Basic EPS
2.3.7.2 Diluted EPS

3.0 Cash and other Financial Assets 3.0 Financial Assets

3.1 Cash 3.1 Cash and Cash Equivalents
3.1.1 Nature and composition of cash
3.1.2 Preparing the bank reconciliation
3.1.3 Accounting for petty cash fund
3.2 Other Financial Assets (initial recognition, basis for classification, subsequent 3.2 Loans and Receivables (Financial Assets at Amortized Cost)
measurement, reclassification and presentation in the financial statements) 3.3 Investments in Debt Instruments and Investments in Equity Instruments
3.2.1 Financial assets at fair value through profit or loss 3.3.1 Financial Assets at Fair Value through Profit or Loss (Except
3.2.2 Financial assets at fair value through other comprehensive income Derivatives)
3.2.3 Financial assets at amortized cost 3.3.2 Financial Assets at Fair Value through Other Comprehensive Income
3.2.3.1 Trade and other receivables 3.3.3 Financial Assets at Amortized Cost
3.2.3.1.1 Valuation using allowance for doubtful accounts 3.4 Investments in Associates (Equity Method of Accounting)
3.2.3.1.2 Transfer of receivables (pledging, assignment
and factoring)
3.2.3.2 Other financial assets at amortized cost (including
investment in bonds)
3.2.4 Investment in associates and joint venture
3.5 Basic Derivatives (Excluding Hedge Accounting) AFAR
3.5.1 Forwards
3.5.2 Futures
3.5.3 Interest Rate Swap
3.5.4 Call and Put Options
 LEGEND: New Add Move Change Delete LEGEND: New Add Move Change Delete

4.0 Non-financial Assets 4.0 Non-Financial Assets

4.1 Inventories 4.1 Inventories
4.1.1 Nature 4.1.1 Cost, Lower of Cost or Net Realizable Value
4.1.2 Capitalizable cost at initial recognition 4.1.2 Estimating Procedures
4.1.3 Inventory cost flow assumptions
4.1.4 Subsequent measurement at lower of cost or estimated selling price
less cost to complete and sell
4.1.5 Estimation procedures – gross profit and retail inventory method
4.2 Property, plant and equipment 4.2 Property, Plant and Equipment
4.2.1 Nature 4.2.1 Nature
4.2.2 Capitalizable cost at initial recognition 4.2.2 Recognition Principle
4.2.3 Borrowing costs 4.2.3 Initial Recognition Basis
4.2.4 Subsequent expenditures 4.2.4 Depreciation Methods
4.2.5 Subsequent measurement 4.2.5 Impairment
4.2.5.1 Cost method
4.2.5.1.1 Depreciation
4.2.5.1.2 Depreciation methods
4.2.5.1.3 Changes in useful life and depreciation methods
4.2.5.2 Revaluation
4.2.6 Impairment
4.2.7 Retirement and disposals
4.3 Investment property 4.3 Investment Property
4.3.1 Nature 4.3.1 Nature and Measurement Principle
4.3.2 Capitalizable cost at initial recognition
4.3.3 Measurement subsequent to initial recognition
4.3.3.1 Cost method
4.3.3.2 Fair value method
4.3.4 Derecognition and reclassification
4.4 Intangible assets 4.4 Intangibles
4.4.1 Nature 4.4.1 Nature and Recognition Principle
4.4.2 Capitalizable cost at initial recognition 4.4.2 Research and Development Expenditures
4.4.3 Subsequent expenditures 4.4.3 Subsequent Expenditures
4.4.4 Subsequent measurements 4.4.4 Amortization
4.4.4.1 Finite lives assets - amortization
4.4.4.2 Indefinite lives assets
4.4.5 Impairment
4.4.6 Derecognition
4.5 Biological assets 4.5 Biological Assets
4.5.1 Nature, distinction from bearer plants and agricultural produce 4.5.1 Nature and Recognition Principle
4.5.2 Capitalizable cost at initial recognition 4.5.2 After Initial Recognition
4.5.3 Subsequent measurement
 LEGEND: New Add Move Change Delete LEGEND: New Add Move Change Delete

4.6 Non-current assets held for sale (or disposal group) 4.6 Non-Current Assets Held for Sale
4.6.1 Nature – criteria for this classification 4.6.1 Classification Criteria
4.6.2 Capitalizable cost at initial recognition 4.6.2 Initial and Subsequent Measurement Principles
4.6.3 Measurement subsequent to initial recognition
4.6.4 Reclassification
4.6.5 Derecognition
4.7 Prepaid expenses and other assets
5.0 Liabilities
5.0 Financial Liabilities 5.1 Financial Liabilities
5.1 Classification of financial liabilities 5.1.1 Accounts Payable and Other Trade Payables
5.2 Initial recognition 5.1.1.1 Initial Recognition
5.3 Debt issue cost 5.1.1.2 Subsequent Measurement
5.4 Measurement using effective interest method 5.1.2 Debt Restructuring
5.5 Troubled debt restructuring 5.1.2.1 Nature and Forms
5.1.2.2 Principles of Derecognition
6.0 Non-financial liabilities, provisions and contingencies 5.2 Non-Financial Liabilities
6.1 Liabilities arising from customer loyalty programs 5.2.1 Premiums, Warranties, and Loyalty Programs
6.2 Warranties and product guarantees 5.2.2 Unearned Revenues for Gift Certificates and Subscriptions
6.3 Unearned revenues arising from contracts, gift certificates, and subscriptions 5.3 Provisions and Contingencies
6.4 Other provisions and contingencies 5.3.1 Recognition and Measurement Criteria

7.0 Shareholders’ Equity 6.0 Equity

7.1 Share capital transactions 6.1 Share Capital Transactions
7.1.1 Initial issuance, stock issuance cost 6.1.1 Share Capital (Nature, Recognition, and Measurement)
7.1.2 Treasury share transactions 6.1.2 Issuance and Retirement of Preference and Ordinary Shares
7.1.3 Retirement, conversion 6.1.3 Share Split, Treasury Shares and Other Equity Transactions
7.2 Retained earnings 6.1.4 Recapitalization and Quasi-Reorganization
7.2.1 Correction of prior period errors and change in accounting policies 6.2 Dividends
7.2.2 Dividends 6.3 Retained Earnings
7.2.3 Quasi reorganization and recapitalization 6.4 Other Comprehensive Income
7.3 Cumulative other comprehensive income 6.5 Book Value per Share and Earnings per Share To 2.3.7
7.4 Computation of book value per share 6.6 Share-based Payments To 8.1
 LEGEND: New Add Move Change Delete LEGEND: New Add Move Change Delete

8.0 Other Topics 7.0 Other Topics

8.1 Share-based payment transactions 7.1 Borrowing Costs To 4.2.3
8.1.1 Equity-settled 7.1.1 Nature
8.1.2 Cash-settled 7.1.2 Criteria for Capitalizing Borrowing Cost
8.1.3 Equity-settled with cash alternative
8.2 Leases 7.2 Leases
8.2.1 Books of Lessee 7.2.1 Operating Lease
8.2.1.1 Initial recognition of right-of-use asset and lease liability 7.2.2 Finance Lease
8.2.1.2 Subsequent measurement of right-of-use asset and lease
liability (including changes in estimate)
8.2.1.3 Financial statement presentation of right-of-use asset and
lease liability
8.2.1.4 Exemption to recognition and measurement principles
8.2.2 Books of Lessor
8.2.2.1 Direct finance lease
8.2.2.2 Manufacturer’s or dealer’s lease
8.2.2.3 Operating lease
8.2.3 Sale-leaseback
8.3 Income Tax 7.3 Income Tax
8.3.1 Accounting profit and taxable profit 7.3.1 Accounting Profit
8.3.2 Book basis and tax basis 7.3.2 Taxable Profit
8.3.3 Computation and accounting for current income tax and deferred
income tax, deferred tax liability (asset) and current income tax liability
(asset)
8.3.4 Financial statement presentation and disclosure
8.4 Employee benefits 7.4 Employee Benefits
8.4.1 Nature and classification 7.4.1 Defined Benefit Plan
8.4.2 Recognition and measurement of employee benefit costs under 7.4.2 Defined Benefit Liability or Asset
defined benefit plan and defined contribution plan
8.4.3 Presentation and disclosures
8.5 Interim Reporting 7.5 Interim Reporting
8.5.1 Purpose and components of interim financial reports 7.5.1 Purpose
8.5.2 Recognition of income, expenses, assets and liabilities for interim 7.5.2 Principles for Recognition
reporting
8.6 Operating segments 7.6 Segment Reporting
8.6.1 Identifying operating segments 7.6.1 Identification of Segments
8.6.2 Reporting segment information 7.6.2 Measurement of Segment Information
7.6.3 Disclosure
 LEGEND: New Add Move Change Delete LEGEND: New Add Move Change Delete

7.7 Cash to Accrual

7.7.1 Purpose
7.7.2 Single-Entry Computation of Profit
7.7.3 Reconciling Profit Using the Transaction Approach
7.7.4 Convert Cash Basis Revenues and Expenses to Accrual Basis
Revenues and Expenses

9.0 Other Reporting Frameworks 8.0 PFRS for Small and Medium Sized Entities / Micro Enterprises
9.1 Applicability and salient differences from PFRS of the following reporting 8.1 Reporting Requirements
frameworks 8.2 Peculiarities
9.1.1 PFRS for SMEs 8.3 Principles for Reporting Investments in Equity and Debt Securities
9.1.2 PFRS for Small Entities
9.1.3 Reporting for microenterprises
 LEGEND: New Add Move Change Delete LEGEND: New Add Move Change Delete

THE CPA LICENSURE EXAMINATION SYLLABUS THE CPA LICENSURE EXAMINATION SYLLABUS
ADVANCED FINANCIAL ACCOUNTING AND REPORTING ADVANCED FINANCIAL ACCOUNTING AND REPORTING

Effective October 2022 Examination Effective May 2019 Examination

This subject covers the candidates’ knowledge of the concepts and principles in This subject covers the candidates’ knowledge of the concepts and principles in advanced
advanced financial accounting and reporting and the application of these accounting financial accounting and reporting and the application of these accounting concepts
concepts including techniques and methodology to problems likely to be encountered in including techniques and methodology to problems likely to be encountered in practice.
practice. Candidates should know and understand problems involving accounting of Candidates should know and understand problems involving accounting of special
special transactions and their effects and presentation in the financial statements transactions and their effects and presentation in the financial statements including among
including among others: accounting for partnerships, corporate liquidation, joint others: accounting for partnerships, corporate liquidation, joint arrangements, revenue
arrangements, revenue recognition, home office, branch and agency transactions, recognition, home office and branch / principal and agency transactions, business
business combinations, separate and consolidated financial statements, foreign combinations and consolidations, foreign currency transactions and translations, not-for-
currency transactions and translations, not for-profit organizations, including government profit organizations, including government accounting and cost accounting and treatment
and cost accounting. Also, a working knowledge of the standards related to these and presentation of consolidated financial statements. Also, a working knowledge of the
special topics on insurance contracts, service concession arrangement and derivatives standards related to these special topics is expected of the candidates.
are expected of the candidates.

The candidates must also be able to communicate effectively matters pertaining to these The candidates must also be able to communicate effectively matters pertaining to these
special accounting topics and the related work that will be handled. special accounting topics and the related work that will be handled.

The knowledge of the candidates in the competencies cited above is that of an entry The knowledge of the candidates in the competencies cited above is that of an entry level
level accountant who can address the fundamental requirements of the various parties accountant who can address the fundamental requirements of the various parties that the
that the candidates will be interacting professionally in the future. candidates will be interacting professionally in the future.

New laws, standards and other issuances which are effective as of the date of the Only new standards and other issuances shall be included in the examinations if these are
examination shall supersede the related topic listed in the syllabus and will be included in effect for at least six (6) months at the date of the examination.
in the examination, unless there is an advisory from the Board of Accountancy to the
contrary.

The examination shall have seventy (70) multiple choice questions. The examination shall have seventy (70) multiple choice questions.

The syllabus for the subject is presented below. The syllabus for the subject is presented below.
 LEGEND: New Add Move Change Delete LEGEND: New Add Move Change Delete

1.0 Partnership Accounting 1.0 Partnership Accounting

1.1 Nature, scope and objectives 1.1 Formation
1.1.1 Differentiate from single proprietorship and corporation accounting 1.2 Operations
1.1.2 Concepts, principles, rules, practices and procedures 1.3 Dissolution / changes in ownership interest
1.2 Formation 1.3.1 Admission of a new partner
1.2.1 Initial capital contribution 1.3.1.1 By purchase of interest
1.3 Operation / Dissolution / changes in ownership interest 1.3.1.2 By investment
1.3.1 Admission of a new partner 1.3.2 Withdrawal, retirement or death of a partner
1.3.1.1 By purchase of interest 1.3.3 Incorporation of a partnership
1.3.1.2 By investment 1.4 Liquidation
1.3.2 Withdrawal, retirement or death of a partner 1.4.1 Lump – sum method
1.3.3 Incorporation of a partnership 1.4.2 Installment method
1.4 Liquidation
1.4.1 Lump – sum method
1.4.2 Installment method

2.0 Corporate Liquidation 2.0 Corporate Liquidation

2.1 Statement of Affairs 2.1 Statement of Affairs
2.2 Statement of Deficiency 2.2 Statement of Deficiency
2.3 Statement of Realization and Liquidation 2.3 Statement of Realization and Liquidation
2.4 Determination of the order of priority of claimants of company assets subject 2.4 Determination of the order of priority of claimants of company assets subject
to liquidation to liquidation

3.0 Joint Arrangements (PFRS 11) 3.0 Joint Arrangements (PFRS 11)
3.1 Joint Operations 3.1 Joint Operations
3.1.1 Nature and scope 3.2 Joint Venture (Equity Method)
3.1.2 Differentiate from business combination 3.3 Accounting for SME FAR
3.1.3 Standards principles and methods
3.2 Joint Venture (equity method)
3.2.1 Nature and scope
3.2.2 Differentiate from business combination
3.2.3 Standards, principles and methods
 LEGEND: New Add Move Change Delete LEGEND: New Add Move Change Delete

4.0 Revenue Recognition (PFRS 15) 4.0 Revenue Recognition (PFRS 15)
4.1 Revenue from Contracts with Customers 4.1 Revenue from Contracts with Customers
4.1.1 Five-Steps Model Framework 4.1.1 Five-Steps Model Framework
4.1.2 Other Revenue Recognition Issues 4.1.1.1 Step 1: Identify the contract with the customer
4.1.2.1 Right of return 4.1.1.2 Step 2: Identify the performance obligations in the contract
4.1.2.2 Principal-agent relationships 4.1.1.3 Step 3: Determine the transaction price
4.1.2.3 Non-refundable upfront fees 4.1.1.4 Step 4: Allocate the transaction price to the performance
4.1.2.4 Licensing / Royalties obligations in the contracts
4.1.2.5 Repurchase arrangements 4.1.1.5 Step 5: Recognize revenue when (or as) the entity satisfies
4.1.2.6 Gift Cards a performance obligation
4.1.2.7 Consignment arrangements 4.1.2 Other Revenue Recognition Issues
4.1.2.8 Bill-and-hold arrangements 4.1.2.1 Sale with a right of return
4.1.2.9 Long – term Construction Contracts 4.1.2.2 Warranties FAR
4.1.2.9.1 Percentage of completion method 4.1.2.3 Principal versus agent considerations
4.1.2.9.1.1 Input method 4.1.2.4 Non-refundable upfront fees
4.1.2.9.1.2 Output method 4.1.2.5 Licensing
4.1.2.9.2 Contract Asset / Contract Liability 4.1.2.6 Repurchase arrangements
4.1.2.10 Franchise Operations – Franchisor’s point of view 4.1.2.7 Consignment arrangements
4.1.2.10.1 Journal entries and determination of revenue, 4.1.2.8 Bill-and-hold arrangements
cost, and gross profit 4.1.3 Financial Statement Presentation
4.1.2.10.1.1 Initial franchise fee 4.1.4 Accounting for SME FAR
4.1.2.10.1.2 Continuing franchise fee 4.2 Long – term Construction Contracts
4.1.2.11 Accounting for Consignment Sales 4.2.1 Journal entries and determination of revenue, costs and gross profit
4.1.2.11.1 Amount Remitted 4.2.1.1 Over Time
4.1.2.11.2 Ending Inventory Valuation 4.2.1.1.1 Input Method
4.1.2.11.3 Determination of Net Income 4.2.1.1.2 Output Method
4.1.3 Financial Statement Presentation 4.2.1.2 Point in Time
4.2.2 Gross amount due from / to customers
4.2.3 Financial Statement Presentation
4.2.4 Accounting for SME FAR
4.3 Franchise Operations – Franchisor’s point of view
4.3.1 Journal entries and determination of revenue, costs and gross profit
4.3.1.1 Initial Franchise Fee
4.3.1.2 Continuing Franchise Fee, Bargain Purchase Option, and
Commingled Revenue
4.3.1.3 Repossessed Franchise
4.3.1.4 Option to Purchase the Franchise Outlet
4.3.2 Financial Statement Presentation
4.3.3 Accounting for SME FAR
4.4 Consignment Sales
 LEGEND: New Add Move Change Delete LEGEND: New Add Move Change Delete

5.0 Accounting for Home Office, Branch and Agency Transactions 5.0 Accounting for Home Office, Branch and Agency Transactions
5.1 Transactions on the books of the home office and the branch 5.1 Transactions on the books of the home office and the branch
5.1.1 General Procedure 5.2 Reconciliation of reciprocal accounts
5.1.2 Special Procedure (inter - branch transfer of cash and merchandise at 5.3 Preparation of individual and combined financial statements
billed price) 5.4 Special procedures in home office and branch transactions (inter – branch
5.2 Reconciliation of reciprocal accounts transfer of cash and merchandise at cost or at billed price)
5.3 Preparation of individual and combined financial statements 5.5 Accounting for agency transactions
5.4 Accounting for agency transactions

6.0 Business Combination (PFRS 3) 6.0 Business Combination (PFRS 3)

6.1 Nature, scope and characteristics 6.1 Acquisition of assets and liabilities (acquisition method)
6.2 Statutory Merger and Consolidation / Acquisition of assets and liabilities 6.1.1 Determination of Consideration Transferred
(acquisition method) 6.1.2 Recognition of Acquired Assets and Liabilities
6.2.1 Determination of Consideration Transferred 6.1.3 Recognition and Measurement of Goodwill and Gain from a Bargain
6.2.2 Recognition of Acquired Assets and Liabilities Purchase
6.2.3 Recognition and Measurement of Goodwill and Gain from a Bargain 6.1.4 Journal Entries
Purchase 6.2 Financial Statement Presentation
6.2.4 Journal Entries 6.3 Accounting for SME FAR
6.3 Financial Statement Presentation

7.0 Separate Financial Statements (PAS 27) 7.0 Separate Financial Statements (PAS 27)
7.1 Accounting for Investment in Subsidiaries, Associates and Joint Ventures 7.1 Accounting for Investment in Subsidiary (At cost, In accordance with PFRS
7.1.1 At Cost 9, and Equity Method)
7.1.2 Financial Instruments: Recognition and Measurement (PAS 39) 7.2 Financial Statement Presentation
7.1.3 Financial Instruments in accordance with PFRS 9 7.3 Accounting for SME FAR
7.2 Accounting for dividends and related disclosure requirements
 LEGEND: New Add Move Change Delete LEGEND: New Add Move Change Delete

8.0 Consolidated Financial Statements (PFRS 10) 8.0 Consolidated Financial Statements (PFRS 10)
8.1 Consolidation procedures 8.1 Consolidated Financial Statement in Subsidiary
8.1.1 Net income, dividends, amortization and impairment of goodwill 8.1.1 Date of acquisition
8.1.2 With intercompany transactions (inventories, land and depreciable 8.1.2 Subsequent to date of acquisition (At cost, In accordance with PFRS
assets) 9, and Equity Method)
8.1.3 Determination of: 8.1.2.1 Net income, dividends, amortization and impairment of
8.1.3.1 Net Income / Other Comprehensive Income / Equity goodwill
8.1.3.1.1 Attributable to Equity Holders of Parent / 8.1.2.2 With intercompany transactions (inventories, land and
Controlling or Parent’s Interest depreciable assets)
8.1.3.1.2 Non-controlling Interest 8.1.3 Determination of:
8.1.3.1.3 Consolidated / Group 8.1.3.1 Net Income / Total Comprehensive Income / Equity
8.1.3.2 Retained Earnings / Common Share / Dividends 8.1.3.1.1 Attribution to Equity Holders of Parent
8.1.3.2.1 Attributable to Equity Holders of Parent / / Controlling or Parent’s Interest
Controlling or Parent’s Interest / Consolidated / 8.1.3.1.2 Non-controlling Interest
Group 8.1.3.1.3 Consolidated / Group
8.1.3.2 Retained Earnings / Common Share / Dividends
8.1.3.2.1 Attributable to Equity Holders of Parent /
Controlling or Parent’s Interest / Consolidated /
Group
8.2 Accounting for SME FAR
 LEGEND: New Add Move Change Delete LEGEND: New Add Move Change Delete

9.0 Derivatives and Hedging Accounting (PFRS 9) 9.0 Foreign Currency Transactions (PFRS 9)
9.1 Accounting for Derivatives 9.1 Without Hedging Activities (import, export, lending, and borrowing To 10.0
9.1.1 Recognition and Derivatives transactions)
9.1.2 Types of Derivatives 9.2 Hedging Activities: Hedging Foreign Currency Exposures
9.1.2.1 Forwards and Futures 9.2.1 Foreign Currency Forward Contacts
9.1.2.2 Options 9.2.1.1 Hedges where Hedge Accounting is Not Required
9.2 Hedging Activities: Hedging Foreign Currency Exposures (undesignated hedges)
9.2.1 Foreign Currency Forward Contracts 9.2.1.1.1 Exposed Asset (import) or Liability (export)
9.2.1.1 Hedges that does not requires a Hedge Accounting Position
(undesignated hedges) 9.2.1.1.2 Speculation
9.2.1.1.1 Exposed Asset (Import) or Liability (Export) 9.2.1.2 Hedges that requires a Hedge Accounting
Position 9.2.1.2.1 Fair value hedge
9.2.1.1.2 Speculation 9.2.1.2.1.1 Hedge of a Firm Commitment
9.2.1.2 Hedges that requires a Hedge Accounting: (purchase or sale transaction)
9.2.1.2.1 Fair value hedge 9.2.1.2.2 Cash flow hedge
9.2.1.2.1.1 Hedge of a Firm Commitment 9.2.1.2.2.1 Hedge of a Firm Commitment
(purchase or sale transaction) (purchase or sale transaction)
9.2.1.2.2 Cash flow hedge 9.2.1.2.2.2 Hedge of a Forecasted Transaction
9.2.1.2.2.1 Hedge of a Firm Commitment (purchase or sale transaction)
(purchase or sale transaction) 9.2.1.2.3 Hedge of a net investment in foreign entity
9.2.1.2.2.2 Hedge of a Forecasted Transaction 9.3 Accounting for SME FAR
(purchase or sale transaction)
9.2.1.2.2.3 Hedge of a net investment in foreign
entity

10.0 Translation of Foreign Currency Financial Statements (PAS 21 / PAS 29) 10.0 Translation of Foreign Currency Financial Statements (PAS 21 / PAS 29)
10.1 Translation from the Functional Currency into the Presentation Currency 10.1 Translation from the Functional Currency to the Presentation Currency
(Closing / Current Rate Method) (Closing / Current Rate Method)
10.2 Translation into the Functional Currency (Remeasurement from a Foreign 10.2 Remeasurement from a Foreign Currency to the Functional Currency
Currency Financial Statements to the Functional Currency) (Temporal Method)
10.3 Restatement of Financial Statements (Functional Currency of a 10.3 Restatement of Financial Statements
Hyperinflationary Economy)
 LEGEND: New Add Move Change Delete LEGEND: New Add Move Change Delete

11.0 Not-for-Profit Organizations 11.0 Not – for – profit organizations

11.1 Voluntary health and welfare organizations (VHWO) 11.1 Voluntary health and welfare organizations (VHWO)
11.2 Hospitals and other health care organizations 11.2 Hospitals and other health care organizations
11.3 Colleges and Universities 11.3 Colleges and universities
11.4 Other not-for-profit organizations such as churches, museums, fraternity, 11.4 Other not – for – profit organizations such as churches, museums, fraternity
association, etc. association, etc.

12.0 Government Accounting – General Fund 12.0 Government Accounting – General Fund
12.1 Basic Concepts in Government Accounting 12.1 Basic Concepts in Government Accounting
12.2 Budget Process 12.2 Budget Process
12.3 Government Accounting Manual (GAM) 12.3 Journal Entries – Books of National Government Agency
12.4 Journal Entries – Books of National Government Agency

13.0 Cost Accounting 13.0 Cost Accounting

13.1 System of Cost Accumulation or Costing System 13.1 System of cost accumulation or costing system
13.1.1 Comparison between Actual Costing, Normal Costing and Standard 13.1.1 Comparison between actual costing, normal costing and standard
Costing costing
13.2 Job-order Costing System 13.2 Job – order costing system
13.2.1 Journal Entries 13.2.1 Cost accumulation procedures – materials, labor and overhead
13.2.2 Preparation of Statement of Goods Manufactured and Sold 13.2.2 Journal entries
13.2.3 Accounting for scrap, waste, spoilage and rework 13.2.3 Preparation of statement of goods manufactured and sold
13.2.4 Cost Accumulation Procedures – materials, labor and overhead 13.2.4 Accounting for scrap, waste, spoilage and rework
13.3 Process Costing System 13.3 Process costing system
13.3.1 Journal Entries 13.3.1 Cost accumulation procedures – materials, labor and overhead
13.3.2 Preparation of Cost of Production Report 13.3.2 Journal entries
13.3.2.1 First-in, first-out method 13.3.3 Preparation of cost of production report
13.3.2.2 Average method 13.3.3.1 First – in, first – out (FIFO) method
13.3.3 Accounting for Lost Units 13.3.3.2 Average method
13.3.3.1 Normal lost units – end of process 13.3.4 Accounting for lost units
13.3.3.2 Abnormal lost units 13.3.4.1 Normal lost units
13.3.4 Cost accumulation procedures – materials, labor and overhead 13.3.4.2 Abnormal lost units
13.4 Backflush Costing System (JIT System) 13.4 Backflush costing system (JIT system)
13.4.1 Journal Entries 13.4.1 Cost accumulation procedures – materials, labor and overhead
13.4.2 Cost accumulation procedures – materials, labor and overhead 13.4.2 Journal entries
 LEGEND: New Add Move Change Delete LEGEND: New Add Move Change Delete

13.5 Activity-Based Costing System (ABC System) 13.5 Service cost allocation
13.5.1 Allocation of Costs: Traditional Costing versus ABC System 13.5.1 Direct method
13.5.2 Determination of Total Product Cost: Traditional Costing 13.5.2 Step – down method
versus ABC System 13.5.3 Reciprocal method
13.5.3 Activity levels (unit-level, batch-level, product-level and facility level), 13.6 Activity – based costing system (ABC costing)
cost pools and activity drivers 13.6.1 Allocation of costs: Traditional costing versus ABC costing
13.5.4 Determination of cost pool rates and application of overhead costs 13.6.2 Determination of total product costs: Traditional costing versus
13.6 Accounting for Joint and By-Products ABC costing
13.6.1 Methods of allocating joint costs to products 13.7 Accounting for joint and by – products
13.6.1.1 Market (sales) Value Method 13.7.1 Methods of allocating joint cost to products
13.6.1.1.1 Market value at split-off point approach 13.7.1.1 Market (sales) value method:
13.6.1.1.2 Hypothetical market value approach or 13.7.1.1.1 Market value at split – off point approach
Approximated net realizable value approach or 13.7.1.1.2 Hypothetical Market Value Approach or
Net realizable value method Approximated Net Realizable Value
13.6.1.1.3 Average units (production output) method Approach or Net Realizable Value Method
13.6.1.1.4 Weighted average method 13.7.1.1.3 Average unit (production output) method
13.6.2 Methods of allocating joint costs to by-products 13.7.1.1.4 Weight average method
13.6.2.1 No joint costs allocated to by-products 13.7.2 Methods of allocating joint cost to by – products
13.6.2.2 With joint costs allocated to by-products 13.7.2.1 No joint cost allocated to by – product
13.6.3 Treatment of by-products 13.7.2.2 With joint costs allocated to by – product
13.7 Service Cost Allocation 13.7.3 Treatment of by - products
13.7.1 Direct method 13.8 Standard Costing (two-way variance excluding mix and yield variances) MS
13.7.2 Step-down method 13.8.1 Computation of Variances
13.7.3 Reciprocal method 13.8.2 Journal Entries and reporting

14.0 Other Special Topics (Basic Knowledge) 14.0 Other Special Topics (Basic Knowledge)
14.1 Accounting for insurance contracts by insurers (PFRS 17) 14.1 Accounting for insurance contracts by insurers (PFRS 4 / PFRS 17)
14.1.1 Types of Insurance Contracts 14.2 Accounting for build, operate & transfer (PFRIC 12)
14.1.2 Changes in Accounting Policies
14.1.3 Recognition and measurement of insurance and reinsurance contracts
14.2 Service Concession Arrangement – Accounting for Build, Operate & Transfer
(PFRIC 12)
14.2.1 Two Types of Service Concession Arrangement
14.2.1.1 Financial Asset
14.2.1.2 Intangible Asset
 LEGEND: New Add Move Change Delete LEGEND: New Add Move Change Delete

THE CPA LICENSURE EXAMINATION SYLLABUS THE CPA LICENSURE EXAMINATION SYLLABUS
MANAGEMENT SERVICES MANAGEMENT ADVISORY SERVICES

Effective October 2022 Examination Effective May 2019 Examination

The subject covers the candidates’ knowledge of the concepts, techniques and The subject covers the candidates’ knowledge of the concepts, techniques and
methodology applicable to management accounting and financial management. methodology applicable to management accounting, financial management and
Candidates should know and understand the role of information in accounting, finance management consultancy. Candidates should know and understand the role of information
and economics and in the management processes of planning, controlling and decision- in accounting, finance and economics in management consultancy and in management
making. processes of planning, controlling and decision-making.

The candidates must have a working knowledge to comply with the various management The candidates must have a working knowledge to comply with the various management
accounting and finance management activities. accounting and consultancy engagements.

The candidates must also be able to communicate effectively matters pertaining to the The candidates must also be able to communicate effectively matters pertaining to the
management accounting and financial management. management accounting and consultancy work that will be handled.

The knowledge of the candidates in the competencies cited above is that of an entry The knowledge of the candidates in the competencies cited above is that of an entry level
level accountant who can address the fundamental requirements of the various parties accountant who can address the fundamental requirements of the various parties that the
that the candidates will be interacting professionally in the future. candidates will be interacting professionally in the future.

New laws, standards and other issuances which are effective as of the date of the
examination shall supersede the related topic listed in the syllabus and will be included
in the examination, unless there is an advisory from the Board of Accountancy to the
contrary.

The examination shall have seventy (70) multiple choice questions. The examination shall have seventy (70) multiple choice questions.

The syllabus for the subject is presented below. The syllabus for the subject is presented below.
 LEGEND: New Add Move Change Delete LEGEND: New Add Move Change Delete

1.0 Management Accounting 1.0 Management Accounting

1.1 Objectives, role and scope of management accounting 1.1 Objectives, role and scope of management accounting
1.1.1 Basic management functions and concepts 1.1.1 Basic management functions and concepts
1.1.2 Distinction among management accounting, cost accounting and 1.1.2 Distinction among management accounting, cost accounting and
financial accounting financial accounting
1.1.3 Roles and activities of controller and treasurer 1.1.3 Role and activities of controller and treasurer
1.1.4 International certifications in management accounting 1.1.4 International certifications in management accounting
1.1.5 Global trends in management accounting
1.2 Management accounting concepts and techniques for planning & control 1.2 Management Accounting Concepts and Techniques for Planning & Control
1.2.1 Cost terms, concepts and behavior 1.2.1 Cost terms, concepts and behavior
1.2.1.1 Nature and classification of costs 1.2.1.1 Nature and classification of costs
1.2.1.2 Analysis of cost behavior (variable, fixed, semi-variable / 1.2.1.2 Analysis of cost behavior (variable, fixed, semi-variable /
mixed, step-cost) mixed, step-cost)
1.2.1.3 Splitting mixed cost (high-low, scatter graph, least-squares
1.2.1.3 Splitting mixed cost (high-low, scatter graph, least-squares
regressions) regressions)
1.2.1.4 Cost prediction techniques (correlation and regression,
learning curve)
1.2.2 Cost-volume profit (CVP) analysis 1.2.2 Cost-volume-profit (CVP) analysis
1.2.2.1 Uses, assumptions and limitations of CVP analysis 1.2.2.1 Uses, assumptions and limitations of CVP analysis
1.2.2.2 Factors affecting profit 1.2.2.2 Factors affecting profit
1.2.2.3 Breakeven point in unit sales and peso sales 1.2.2.3 Breakeven point in unit sales and peso sales
1.2.2.4 Required selling price, unit sales and peso sales to achieve 1.2.2.4 Required selling price, unit sales and peso sales to achieve
a target profit a target profit
1.2.2.5 Sensitivity analysis (including indifference point in unit sales 1.2.2.5 Sensitivity analysis (including indifference point in unit
and peso sales) sales and peso sales)
1.2.2.6 Use of sales mix in multi-product companies 1.2.2.6 Use of sales mix in multi-product companies
1.2.2.7 Concepts of margin of safety and degree of operating 1.2.2.7 Concepts of margin of safety and degree of operating
leverage leverage
1.2.2.8 Different scenarios using CVP analysis (indifference point,
step-fixed, multiple drivers)
1.2.3 Standard costing and variance analysis 1.2.3 Standard costing and variance analysis
1.2.3.1 Journal entries 1.2.3.1 Direct material variance (quantity, price usage, purchase
1.2.3.2 Direct material variance (quantity, price usage, purchase price, mix and yield)
price, mix and yield) 1.2.3.2 Direct labor variance (efficiency, rate, mix and yield)
1.2.3.3 Direct labor variance (efficiency, rate, mix and yield) 1.2.3.3 Factory overhead variance – two-way method (controllable
1.2.3.4 Factory overhead variance – two-way method (controllable and volume); three-way method (spending, variable
and volume); three-way method (spending, variable efficiency and volume); four-way method (variable
efficiency and volume); four-way method (variable spending, fixed spending, variable efficiency and volume)
spending, fixed spending, variable efficiency and volume)
LEGEND: New Add Move Change Delete LEGEND: New Add Move Change Delete

1.2.4 Variable vs. Absorption Costing 1.2.4 Variable costing and absorption costing
1.2.4.1 Distinction between product cost and period cost 1.2.4.1 Nature and treatment of fixed factory overhead costs
1.2.4.2 Inventory costs between variable costing and absorption 1.2.4.2 Distinction between product cost and period cost
costing 1.2.4.3 Inventory costs between variable costing and absorption
1.2.4.3 Nature and treatment of fixed factory overhead costs costing
1.2.4.4 Reconciliation of operating income under variable costing 1.2.4.4 Reconciliation of operating income under variable costing
and absorption costing and absorption costing
1.2.5 Financial planning and budgets 1.2.5 Financial planning and budgets
1.2.5.1 Definition and coverage of the budgeting process 1.2.5.1 Definition and coverage of the budgeting process
1.2.5.2 Master budget and its components (operating and financial 1.2.5.2 Master budget and its components (operating and financial
budgets) budgets)
1.2.5.3 Types of budgets (static, flexible, zero-based, continuous) 1.2.5.3 Types of budgets (static, flexible, zero-based, continuous)
1.2.5.4 Budget variance analysis (static and flexible) 1.2.5.4 Budget variance analysis (static and flexible)
1.2.6 Activity-based costing (ABC) and activity-based management (ABM)
1.2.6.1 Activity levels (unit-level, batch-level, product-level and AFAR
facility-level), cost pools and activity drivers
1.2.6.2 Determination of cost pool rates and application of
overhead costs
1.2.6.3 Traditional costing versus activity-based costing
1.2.6.4 Process value analysis (value-added activities and non- To 1.1.5
value-added activities)
1.2.7 Strategic cost management To 1.1.5
1.2.7.1 Total quality management
1.2.7.2 Just-in-time production system
1.2.7.3 Continuous improvement
1.2.7.4 Business process reengineering
1.2.7.5 Kaizen costing
1.2.7.6 Product life cycle costing
1.2.7.7 Target costing
LEGEND: New Add Move Change Delete LEGEND: New Add Move Change Delete

1.3 Management accounting concepts and techniques for performance 1.3 Management Accounting Concepts and Techniques for Performance
measurement Measurement
1.3.1 Responsibility accounting and transfer pricing 1.3.1 Responsibility accounting and transfer pricing
1.3.1.1 Concepts of decentralization, segment reporting, goal 1.3.1.1 Type of responsibility centers (cost, revenue, profit and
congruence and motivation investment centers)
1.3.1.2 Controllable and non-controllable costs, direct and common 1.3.1.2 Concepts of decentralization and segment reporting
costs 1.3.1.3 Controllable and non-controllable costs, direct and
1.3.1.3 Type of responsibility centers (cost, revenue, profit and common costs
investment centers) 1.3.1.4 Performance margin (manager versus segment
1.3.1.4 Preparation of segmented income statement performance)
1.3.1.5 Performance margin (manager vs. segment performance) 1.3.1.5 Preparation of ‘segmented’ income statement
1.3.1.6 Return on investment (ROI), residual income and economic 1.3.1.6 Return on investment (RoI), residual income and economic
value added (EVA) value added (EVA)
1.3.1.7 Rational and need for transfer price 1.3.1.7 Rational and need for transfer price
1.3.1.8 Transfer pricing schemes (minimum transfer price, market- 1.3.1.8 Transfer pricing schemes (minimum transfer price, market-
based transfer price, cost-based transfer price and based transfer price, cost-based transfer price and
negotiated price) negotiated price)
1.3.2 Balance scorecard 1.3.3 Balanced scorecard
1.3.2.1 Nature and perspectives of balanced scorecard 1.3.3.1 Nature and perspectives of balanced scorecard
1.3.2.2 Financial and non-financial performance measures 1.3.3.2 Financial and non-financial performance measures
(productivity, cycle efficiency and throughput measures)
1.4 Management Accounting Concepts and Techniques for Decision Making 1.4 Management Accounting Concepts and Techniques for Decision Making
1.4.1 Relevant costing and differential analysis 1.4.1 Quantitative techniques
1.4.1.1 Definition and identification of relevant costs 1.4.1.1 Regression and correlation analysis To 1.2.1.4
1.4.1.2 Concept of opportunity costs 1.4.1.2 Gantt chart
1.4.1.3 Approaches in analyzing alternatives in non-routing 1.4.1.3 Program evaluation review technique (PERT) – Critical
decisions (total and differential) Path Method (CPM)
1.4.1.4 Types of decisions (make or buy, accept or reject special 1.4.1.4 Probability analysis (expected value concept)
order, continue or drop / shutdown, sell or process further, 1.4.1.5 Decision tree diagram
best product combination, pricing decisions) 1.4.1.6 Learning curve To 1.2.1.4
1.4.1.5 Probability analysis (expected value concept) 1.4.1.7 Inventory models (carrying and ordering costs, EOQ To 2.2.2.5
1.4.1.6 Decision tree diagram model, safety stock, reorder point)
1.4.1.7 Linear programming (graphic method; algebraic method) 1.4.1.8 Linear programming (graphic method; algebraic method)
1.4.2 Relevant costing and differential analysis
1.4.2.1 Definition and identification of relevant costs
1.4.2.2 Concept of opportunity costs
1.4.2.3 Approaches in analyzing alternatives in non-routing
decisions (total and differential)
1.4.2.4 Types of decisions (make or buy, accept or reject special
order, continue or drop / shutdown, sell or process further,
best product combination, pricing decisions)
 LEGEND: New Add Move Change Delete LEGEND: New Add Move Change Delete

2.0 Financial Management 2.0 Financial Management

2.1 Objectives and scope of financial management 2.1 Objectives and Scope of Financial Management
2.1.1 Nature, purpose and scope of financial management 2.1.1 Nature, purpose and scope of financial management
2.1.2 Role of financial managers in investment, operating and financing 2.1.2 Role of financial managers in investment, operating and financing
decisions decisions
2.2 Financial Management Concepts and Techniques for Planning, Control & 2.2 Financial Management Concepts and Techniques for Planning, Control &
Decision Making Decision Making
2.2.1 Financial statement analysis 2.2.1 Financial statement analysis
2.2.1.1 Vertical analysis (common-size financial statements) 2.2.1.1 Vertical analysis (common-size financial statements)
2.2.1.2 Horizontal analysis (trend percentages and index analysis) 2.2.1.2 Horizontal analysis (trend percentages and index analysis)
2.2.1.3 Cash flow analysis (interpretation of cash flows including 2.2.1.3 Cash flow analysis (interpretation of cash flows including
free cash flow concept) free cash flow concept)
2.2.1.4 Gross profit variance analysis (price, cost and volume 2.2.1.4 Gross profit variance analysis (price, cost and volume
factors) factors)
2.2.1.5 Financial ratios (liquidity, solvency, activity, profitability, 2.2.1.5 Financial ratios (liquidity, solvency, activity, profitability,
growth and other ratios; Du Pont model) growth and other ratios; Du Pont model)
2.2.1.6 Financial forecasting using additional funds needed (AFN) 2.2.1.6 Financial forecasting using additional funds needed (AFN)
2.2.2 Working capital management 2.2.2 Working capital finance
2.2.2.1 Concepts and significance of working capital management 2.2.2.1 Concepts and significance of working capital management
2.2.2.2 Working capital investment and financing policies 2.2.2.2 Working capital investment and financing policies
(conservative, aggressive and the hedging / moderate (conservative vs. aggressive)
approach) 2.2.2.3 Cash and marketable securities management (cash
2.2.2.3 Cash and marketable securities management (cash conversion cycle, optimal cash balance, collection and
conversion cycle, optimal cash balance, collection and disbursement float, cash management system)
disbursement float, cash management system) 2.2.2.4 Receivables management (average balance of and
2.2.2.4 Receivables management (average balance of and investment in accounts receivable, incremental analysis
investment in accounts receivable, incremental analysis and evaluation of discount, collection and credit policies)
and evaluation of discount, collection and credit policies) 2.2.2.5 Inventory management (carrying, ordering and stock-out
2.2.2.5 Inventory management (carrying, ordering and stock-out costs, inventory control system including EOQ model,
costs, inventory control system including EOQ model, safety stock, reorder point)
safety stock, reorder point) 2.2.2.6 Sources of short-term funds (trade credit, bank loans,
2.2.2.6 Sources of short-term funds (trade credit, bank loans, commercial papers, receivable factoring)
commercial papers, receivable factoring, credit lines and 2.2.2.7 Estimating cost of short-term funds (annual cost of trade
revolving credit) credit, effective and nominal annual rate of short-term
2.2.2.7 Estimating cost of short-term funds (annual cost of trade funds)
credit, effective and nominal annual rate of short-term
funds)
LEGEND: New Add Move Change Delete LEGEND: New Add Move Change Delete

2.2.3 Capital budgeting 2.2.3 Capital budgeting

2.2.3.1 Capital investment decision factors (net investment for 2.2.3.1 Capital investment decision factors (net investment for
decision making, cost of capital, cash and accrual net decision making, cost of capital, cash and accrual net
returns) returns)
2.2.3.2 Non-discounted capital budgeting techniques (payback 2.2.3.2 Non-discounted capital budgeting techniques (payback
period, accounting rate of return on original and average period, accounting rate of return on original and average
investment, bail- out payback and payback reciprocal) investment, bail-out payback and payback reciprocal)
2.2.3.3 Discounted capital budgeting techniques (net present 2.2.3.3 Discounted capital budgeting techniques (net present
value, internal rate of return, profitability index, equivalent value, internal rate of return, profitability index, equivalent
annual annuity, fisher rate / NPV point of difference) annual annuity, fisher rate / NPV point of indifference)
2.2.3.4 Project screening, project ranking and capital rationing 2.2.3.4 Project screening, project ranking and capital rationing
(independent and mutually exclusive capital investment (independent and mutually exclusive capital investment
projects) projects)
2.2.3.5 Sensitivity analysis (effects of changes in project cash flow, 2.2.3.5 Sensitivity analysis (effects of changes in project cash flow,
tax rates and other assumptions) tax rates and other assumptions)
2.2.4 Risks and leverage 2.2.4 Investments, risks and rates of returns
2.2.4.1 Types of risks (business / operating, financing) 2.2.4.1 Types of risks (business / operating, financing)
2.2.4.2 Measures of risks (coefficient of variation and standard 2.2.4.2 Measures of risks (coefficient of variation and standard
deviation) deviation)
2.2.4.3 Degree of operating, financial and total leverage 2.2.4.3 Degree of operating, financial and total leverage
2.2.4.4 Derivatives (forwards, futures, swaps and options)
2.2.4.5 Investment models (Black Scholes, CAPM) To 2.2.5.3
2.2.4.6 Capital markets, the Philippine Stock Exchange and other To 2.2.6
foreign bourses
2.2.4.7 Types of investment products and their characteristics To 2.2.6
2.2.5 Capital structure and long-term financing decision 2.2.5 Capital structure and long-term financing decision
2.2.5.1 Basic concepts and tools of capital structure management 2.2.5.1 Basic concepts and tools of capital structure management
2.2.5.2 Sources of intermediate and long-term financing (including 2.2.5.2 Sources of intermediate and long-term financing (including
hybrid financing) hybrid financing)
2.2.5.3 Cost of capital (cost of long-term debt, cost of preferred 2.2.5.3 Cost of capital (cost of long-term debt, cost of preferred
shares, cost of equity, weighted average cost of capital, shares, cost of equity, weighted average cost of capital,
marginal cost of capital) marginal cost of capital)
 LEGEND: New Add Move Change Delete LEGEND: New Add Move Change Delete

2.2.6 Financial markets

2.2.6.1 Money markets
2.2.6.1.1 Types of money market instruments
2.2.6.2 Capital markets
2.2.6.2.1 Fixed income market
2.2.6.2.1.1 Types / examples of fixed income
instruments
2.2.6.2.1.2 Basic valuation
2.2.6.2.2 Stock market
2.2.6.2.2.1 Types / examples of equity
instruments
2.2.6.2.2.2 Basic valuation

3.0 Management Consultancy

3.1 Management Consultancy Practice by Certified Public Accounting (CPAs)
3.1.1 Nature of management consultancy engagements
3.1.2 Professional attributes of management consultants
3.1.3 Areas, stages and management of management consultancy
engagements
3.1.4 IFAC & Philippine Code of Ethics for the Accountancy Profession
3.1.5 NOCLAR provisions and implications
3.2 Project Feasibility Studies
3.2.1 Nature, purpose and components (economic / marketing, technical
and financial)
3.2.2 Analysis of project revenue and costs under specific assumptions
3.2.3 Preparation of projected financial statements
3.2.4 Analysis of financial projections

3.0 Economic concepts essential to obtaining an understanding of entity’s 4.0 Economic Concepts essential to obtaining an understanding of entity’s
business and industry business and industry
3.1 Macroeconomics (national economic issues and measures of economic 4.1 Macroeconomics (national economic issues and measures of economic
performance such as GDP, Business cycle; unemployment and inflation; performance such as GDP; unemployment and inflation; fiscal and
fiscal and monetary policies; international trade and foreign exchange rates) monetary policies; international trade and foreign exchange rates)
3.2 Microeconomics (concept of and factors affecting supply; concept of and 4.2 Microeconomics (concept of and factors affecting supply; concept of and
factors affecting demand; market equilibrium; price elasticity of demand; factors affecting demand; market equilibrium; price elasticity of demand;
market structure; production and cost functions) market structure; production and cost functions)
 LEGEND: New Add Move Change Delete LEGEND: New Add Move Change Delete

THE CPA LICENSURE EXAMINATION SYLLABUS THE CPA LICENSURE EXAMINATION SYLLABUS
AUDITING AUDITING

Effective October 2022 Examination Effective May 2019 Examination

This subject covers the candidates’ knowledge of the principles and concepts of This subject covers the candidates’ knowledge of the principles and concepts of auditing
auditing and attestation and the practical application of these principles and concepts. and the practical application of these principles and concepts. There shall be two parts of
There shall be two parts of this subject: Theory on Auditing and Attestation Services this subject: Auditing Theory and Auditing Problems.
and Auditing Practice.

THEORY ON AUDITING AND ATTESTATION SERVICES AUDITING THEORY

This part covers the candidates’ conceptual knowledge and understanding of auditing This part covers the candidates' conceptual knowledge and understanding of assurance
and attestation services performed by professional accountants. Candidates should and related services performed by professional accountants. Candidates should know and
know and understand auditing and attestation services, with emphasis to: independent understand the nature of assurance and related services particularly independent audits of
audits of financial statements or against related standards, assertions or applicable financial statements, the responsibilities of professional accountants, the audit process,
criteria; professional, ethical, quality management and governance responsibilities; the audit objectives, evidence, procedures, auditing standards, and the elements of the
use of risk-based audit process in planning, responding to risks and reporting thereon. independent auditors' report. In all the areas included, the candidate shall apply the
Philippine Standards on Auditing (PSA) and other regulatory laws and regulations in effect
In all the areas included, the candidate shall apply the appropriate standards on at the time of examination.
auditing and attestation, quality management, ethical and governance standards, and
other regulatory laws and regulations, issued by Philippine and professional standard-
setting and regulatory bodies in effect at the time of examination.

AUDITING PRACTICE AUDITING PROBLEM

This part covers the candidate’s proficiency in applying risk-based audit and quality This part covers the candidate’s proficiency in applying audit standards, techniques, and
management standards, techniques, and procedures to a typical independent audit of a procedures to a typical independent audit of a medium-sized service, trading or
medium-sized service, trading or manufacturing concern, that use either a manual or manufacturing concern. Candidate shall be able to plan and perform an audit, analyze data
automated business process, or a combination of both. for possible errors and irregularities, formulate adjusting entries, resolve audit issues,
prepare audit working papers and complete the audit including the preparation of the audit
Candidates shall be able to assess risk, develop a plan and perform an audit, analyze report. In all the areas included, the candidate shall apply the Philippine Standards on
data for possible errors and irregularities or nonconformance to standards, assertions or Auditing (PSA) and other regulatory laws and regulations in effect at the time of
criteria, perform root cause analysis, perform other procedures, obtain evidence and examination.
formulate adjusting entries, prepare audit working papers, communicate results of audit,
prepare audit reports, and complete the audit.
 LEGEND: New Add Move Change Delete LEGEND: New Add Move Change Delete

In all the areas included, the candidate shall apply the appropriate standards on
auditing and attestation, quality management, ethical and governance standards, and
other regulatory laws and regulations, issued by Philippine and professional standard-
setting and regulatory bodies in effect at the time of examination.
Candidates should be able to demonstrate awareness- or proficient-level knowledge of The knowledge of the candidates in the competencies cited above is that of an entry level
the competencies cited above. Entry level professional accountants should be able to accountant who can address the fundamental requirements of the various parties that the
address the fundamental requirements of the various parties that the candidates will be candidates will be interacting professionally in the future.
interacting professionally in the future.

The candidates must also be able to communicate effectively such matters pertaining to The candidates must also be able to communicate effectively matters pertaining to the audit
the audit work. work that will be handled.
New laws, standards and other issuances which are effective as of the date of the Only new laws, implementing rules and regulations, jurisprudences and other issuances
examination shall supersede the related topic listed in the syllabus and will be included shall be included in the examinations if these are in effect for at least six (6) months at the
in the examination, unless there is an advisory from the Board of Accountancy to the date of the examination.
contrary.
The examination shall have seventy (70) multiple choice questions. The examination shall have seventy (70) multiple choice questions.
The syllabus for the subject is presented below. The syllabus for the subject is presented below.

1.0 Theory on Auditing and Attestation Services AUDITING THEORY

1.1 Fundamentals of Auditing and Assurance Services 1.0 Fundamentals of Auditing and Assurance Services
1.1.1 Introduction to assurance engagements 1.1 Introduction to assurance engagements
1.1.1.1 Nature, objective and elements 1.1.1 Nature, objective and elements
1.1.1.2 Types of assurance engagements (audits, reviews, other 1.1.2 Types of assurance engagements (audits, reviews, other assurance
assurance engagements) engagements)
1.1.2 Introduction to auditing 1.1.3 Assurance service vis-à-vis attestation services
1.1.2.1 Nature, philosophy, and objectives 1.2 Introduction to auditing
1.1.2.2 Types of audit 1.2.1 Nature, philosophy, and objectives
1.1.2.2.1 According to nature of assertion / data (financial 1.2.2 Types of audit
statements audit, operational audit, and 1.2.2.1 According to nature of assertion / data (financial statements
compliance audit) audit, operational audit, and compliance audit)
1.1.2.2.2 According to types of auditor (external 1.2.2.2 According to types of auditor (external independent
independent financial statements audit, internal financial statements audit, internal audit, and government
audit, and government audit) audit)
LEGEND: New Add Move Change Delete LEGEND: New Add Move Change Delete

1.2 The Risk-based Financial Statement Audit – Client Acceptance, Audit 2.0 The Financial Statements Audit - Client Acceptance, Audit Planning,
Planning, Supervision and Monitoring Supervision and Monitoring
1.2.1 Overview of the risk-based audit process 2.1 Overview of the audit process
1.2.2 Pre-engagement procedures 2.2 Pre-engagement procedures
1.2.3 Scope and purposes of audit planning 2.3 Scope and purposes of audit planning
1.2.3.1 Essential planning requirements 2.3.1 Essential planning requirements
1.2.3.1.1 Knowledge of the business 2.3.1.1 Knowledge of the business
1.2.3.1.2 Preliminary analytical procedures 2.3.1.2 Preliminary analytical procedures
1.2.3.1.3 Materiality 2.3.1.3 Materiality
1.2.3.1.4 Assessing and managing audit risks 2.3.1.4 Assessing and managing audit risks
1.2.3.1.5 Overall audit plan and audit program (experts, 2.3.1.5 Overall audit plan and audit program (experts, internal
internal auditor, other independent auditors) auditor, other independent auditors)
1.2.4 Direction, supervision and review 2.4 Direction, supervision and review

1.3 Understanding the Entity and its Environment including its Internal Control 3.0 Understanding the Entity and its Environment Including its Internal Control
and Assessing the Risks of Material Misstatement and Assessing the Risks of Material Misstatement
1.3.1 Industry, regulatory and other external factors, including the 3.1 Industry, regulatory and other external factors, including the applicable
applicable financial reporting framework financial reporting framework
1.3.1.1 Nature of the entity 3.1.1 Nature of the entity
1.3.1.2 Objectives and strategies and related business risks 3.1.2 Objectives and strategies and related business risks
1.3.1.3 Measurement and review of the entity’s financial 3.1.3 Measurement and review of the entity’s financial performance
performance 3.2 Internal control
1.3.2 Internal Control 3.2.1 Basic concepts and elements of internal control
1.3.2.1 Basic concepts and elements of internal control 3.2.2 Consideration of accounting and internal control systems
1.3.2.2 Consideration of accounting and internal control systems 3.2.2.1 Understanding and documentation
1.3.2.2.1 Understanding and documentation 3.2.2.2 Assessment of control risks
1.3.2.2.2 Assessment of control risks 3.2.2.2.1 Test of controls
1.3.2.2.2.1 Test of controls 3.2.2.2.2 Documentation
1.3.2.2.2.2 Documentation 3.3 Assessing the risks of material misstatement
1.3.3 Assessing the risks of material misstatement 3.3.1 Fraud and errors
1.3.3.1 Fraud and errors 3.3.2 Risk assessment procedures
1.3.3.2 Risk assessment procedures 3.3.3 Discussion among the engagement team
1.3.3.3 Discussion among the engagement team 3.3.4 Significant risks that require special audit consideration
1.3.3.4 Significant risks that require special audit consideration 3.3.5 Risks for which substantive procedures alone do not provide
1.3.3.5 Risks for which substantive procedures alone do not provide sufficient appropriate audit evidence
sufficient appropriate audit evidence 3.3.6 Revision of risk assessment
1.3.3.6 Revision of risk assessment 3.4 Communicating with those charged with governance and management
1.3.4 Communicating with those charged with governance and
management
LEGEND: New Add Move Change Delete LEGEND: New Add Move Change Delete

1.4 Audit Objectives, Procedures, Evidences and Documentation 4.0 Audit Objectives, Procedures, Evidences and Documentation
1.4.1 Nature and significance 4.1 Nature and significance
1.4.2 Evidential matters 4.2 Evidential matters
1.4.3 Audit procedures / techniques, including audit selection 4.3 Audit procedures / techniques
1.4.4 Audit working papers 4.4 Audit working papers

1.5 Completing the Audit / Post-Audit Responsibilities 5.0 Completing the Audit / Post-Audit Responsibilities
1.5.1 Complete the audit and audit report preparation 5.1 Completing the audit and audit report preparation
1.5.1.1 Analytical procedure for overall review 5.1.1 Analytical procedures for overall review
1.5.1.2 Related party transactions 5.1.2 Related party transactions
1.5.1.3 Subsequent events review 5.1.3 Subsequent events review
1.5.1.4 Assessment of ongoing concern assumption 5.1.4 Assessment of going concern assumption
1.5.1.5 Obtaining client’s representation letter 5.1.5 Obtaining client’s representation letter
1.5.1.6 Evaluating findings, formulating an opinion and drafting the 5.1.6 Evaluating findings, formulating an opinion and drafting the audit
audit report report
1.5.2 Post-audit responsibilities 5.2 Post-audit responsibilities
1.5.2.1 Subsequent discovery of facts 5.2.1 Subsequent discovery of facts
1.5.2.2 Subsequent discovery of omitted procedures 5.2.2 Subsequent discovery of omitted procedures

1.6 Reports on Audited Financial Statements 6.0 Reports on Audited Financial Statements
1.6.1 The unqualified auditor’s report 6.1 The unqualified auditor’s report
1.6.2 Basic elements of the unqualified auditor’s report 6.2 Basic elements of the unqualified auditor’s report
1.6.3 Modified auditor’s report 6.3 Modified auditor’s report
1.6.3.1 Matters that do not affect the auditor’s opinion 6.3.1 Matters that do not affect the auditor’s opinion
1.6.3.2 Matters that do affect the auditor’s opinion 6.3.2 Matters that do affect the auditor’s opinion
1.6.4 Report on comparatives 6.4 Report on comparatives
1.6.5 Key audit matters
LEGEND: New Add Move Change Delete LEGEND: New Add Move Change Delete

1.7 Auditing in a Computerized Information Systems (CIS) Environment 7.0 Auditing in a Computerized Information Systems (CIS) Environment
1.7.1 Internal control in a CIS environment 7.1 Internal control in a CIS environment
1.7.1.1 Introduction 7.1.1 Introduction
1.7.1.2 Impact of computers on accounting and internal control 7.1.2 Impact of computers on accounting and internal control systems
systems 7.1.2.1 General controls
1.7.1.2.1 General Controls 7.1.2.2 Application controls
1.7.1.2.2 Application controls 7.1.3 Unique characteristics of specific CIS
1.7.1.3 Unique characteristics of specific CIS 7.1.3.1 Stand alone
1.7.1.3.1 Stand alone 7.1.3.2 On-line
1.7.1.3.2 On-line 7.1.3.3 Database system
1.7.1.3.3 Database system 7.2 Basic approach to the audit of CIS environment
1.7.2 Basic approach to the audit of CIS environment 7.2.1 Introduction
1.7.2.1 Introduction 7.2.2 Effects of computers on the audit process
1.7.2.2 Effects of computers on the audit process 7.2.3 Computer assisted audit techniques
1.7.2.3 Computer assisted audit techniques
1.7.2.4 Electronic commerce
1.7.3 Auditing new technologies

1.8 Attestation Services 8.0 Other Assurance and Non-assurance Services

1.8.1 Procedures and reports on special purpose audit engagements 8.1 Procedures and reports on special purpose audit engagements
1.8.1.1 General considerations 8.1.1 General considerations
1.8.1.2 Audit of financial statements prepared in accordance with 8.1.2 Audit of financial statements prepared in accordance with a
comprehensive basis of accounting other than GAAP in the comprehensive basis of accounting other than GAAP in the
Philippines Philippines
1.8.1.3 Audit of a component of financial statements 8.1.3 Audit of a component of financial statements
1.8.1.4 Reports on compliance with contractual agreements 8.1.4 Reports on compliance with contractual agreements
1.8.1.5 Reports on summarized financial statements 8.1.5 Reports on summarized financial statements
1.8.2 Attestation and related services 8.2 Non-audit engagements: procedures and reports
1.8.2.1 Examination of prospective financial information 8.2.1 Examination of prospective financial information
1.8.2.2 Engagements to review financial statements 8.2.2 Engagements to review financial statements
1.8.2.3 Engagements to perform agreed-upon procedures regarding 8.3 Non-assurance engagements
financial information 8.3.1 Engagements to perform agreed-upon procedures regarding
1.8.2.4 Engagements to prepare or compile financial information financial information
1.8.2.5 Service organization controls and the service auditor’s report 8.3.2 Engagements to compile financial information
1.8.2.6 Engagements performed in accordance with other criteria
1.8.3 The role of CPAs in rendering other services (aside from auditing and
attestation)
 LEGEND: New Add Move Change Delete LEGEND: New Add Move Change Delete

2.0 Auditing Practice AUDITING PROBLEM

2.1 Governance, Ethics and Quality Management 1.0 Evidence Accumulation and Evaluation – Substantive Tests of Transactions
2.1.1 Corporate governance and Balances
2.1.2 Ethical standards and responsibilities of professional accountants 1.1 Audit of the revenue and receipt cycle
2.1.3 System of quality management 1.1.1 Audit of sales and revenue transactions
2.1.3.1 Elements of a system of quality management 1.1.2 Audit of receivable balances
2.1.3.2 Leadership responsibilities 1.2 Audit of expenditure and disbursement cycle
2.1.3.3 Ethical requirements 1.2.1 Audit of acquisitions and purchases
2.1.3.4 Acceptance and continuance 1.2.2 Audit of payroll transactions
2.1.3.5 Human resources 1.2.3 Audit of inventory balances
2.1.3.6 Engagement performance 1.2.4 Audit of trade payable balances
2.1.3.7 Monitoring 1.2.5 Audit of prepaid expenses and accrued liabilities
2.1.3.8 Documentation of the System of Quality Management 1.3 Audit of production cycle
2.1.4 Regulatory requirements related to the practice, accreditation and 1.3.1 Audit of conversion activities
regulation of public accounting and auditing services 1.3.2 Audit of inventory balances: work-in-process and finished goods
2.2 Planning the Audit and Performing Risk Assessment Procedures 1.3.3 Audit of cost of goods sold balance
2.2.1 Risk-based audit – overview 1.4 Audit of the financing cycle
2.2.2 Risk assessment – overview 1.4.1 Audit of financing cycle transactions
2.2.3 Preliminary activities 1.4.2 Audit of non-trade liability balances
2.2.3.1 Engagement acceptance and continuance 1.4.3 Audit of interest expense and finance cost balances
2.2.4 Planning the audit 1.4.4 Audit of equity accounts
2.2.4.1 Overall audit strategy 1.5 Audit of investing cycle
2.2.4.2 Determining and using materiality 1.5.1 Audit of investing transactions
2.2.4.3 Audit team discussions 1.5.2 Audit of investment account balances
2.2.4.4 Understanding and auditing business processes 1.5.3 Audit of property, plant and equipment account balances
2.2.4.4.1 Order to cash 1.5.4 Audit of intangible account balances
2.2.4.4.2 Purchase to pay 1.6 Audit of cash balances
2.2.4.4.3 Plan to inventory 1.6.1 Audit of cash receipt transactions balance
2.2.4.4.4 Hire to retire 1.6.2 Audit of cash disbursement transactions balance
2.2.4.4.5 Acquire to retire
2.2.4.4.6 Record to report
2.2.4.4.7 Close, consolidate and report
2.2.4.4.8 Financial planning and analysis
2.2.4.4.9 Other business processes
2.2.5 Performing risk assessment procedures – entity wide and business
process level
2.2.5.1 Identification and assessment of inherent risks
2.2.5.2 Identifying objectives and key risks
2.2.5.3 Understanding internal control
2.2.5.4 Evaluating internal control
2.2.5.5 Communicating deficiencies in internal control
2.2.5.6 Concluding the risk assessment phase
LEGEND: New Add Move Change Delete LEGEND: New Add Move Change Delete

2.3 Risks Response

2.3.1 Risk response – overview
2.3.2 Developing the risk-based audit plan
2.3.3 Determining the extent of testing
2.3.4 Documenting work performed
2.3.4.1 Preparation of audit working papers
2.3.4.2 Preparation of analysis worksheets
2.3.4.3 Formulation of adjusting and correcting entries
2.3.5 Written representations
2.3.6 Engagement supervision and consultation
2.4 Audit Communication and Reporting
2.4.1 Reporting – overview
2.4.2 Evaluating audit evidence
2.4.3 Communicating results
2.4.3.1 Criteria and quality of communications
2.4.3.2 Disseminating results
2.4.3.3 Communicating with those charged with governance
2.4.4 Preparing the audit report
2.4.4.1 Modifications to the auditor’s report
2.4.4.2 Emphasis of matter and other matter paragraphs
2.4.4.3 Comparative information
2.4.5 Monitoring and closing the engagement
 LEGEND: New Add Move Change Delete LEGEND: New Add Move Change Delete

THE CPA LICENSURE EXAMINATION SYLLABUS THE CPA LICENSURE EXAMINATION SYLLABUS
REGULATORY FRAMEWORK for BUSINESS TRANSACTIONS REGULATORY FRAMEWORK for BUSINESS
TRANSACTIONS
Effective October 2022 Examination
Effective May 2019 Examination
This subject covers the candidates’ knowledge of the regulatory framework governing
business transactions and business organizations / associations, and of business laws This subject covers the candidates’ knowledge of the regulatory framework governing
including their legal implications. Candidates should know and understand the pertinent business transactions and business organizations / associations, and of business laws
legal provisions, general principles, concepts, and underlying philosophy of the laws including their legal implications. Candidates should know and understand the pertinent
applicable to commerce and business. The candidates must have sufficient knowledge legal provisions, general principles, concepts, and underlying philosophy of the laws
to enable them to recognize the legal implications of business situations or transactions applicable to commerce and business. The candidates must have sufficient knowledge to
and to know when to seek legal counsel or recommend that it be sought. enable them to recognize the legal implications of business situations or transactions and
to know when to seek legal counsel or recommend that it be sought.
The candidates must have a working knowledge to apply the various regulatory
framework measures and the pertinent provisions of the law relative to particular The candidates must have a working knowledge to apply the various regulatory framework
business scenarios. measures and the pertinent provisions of the law relative to particular business scenarios.

The candidates must also be familiar with clients’ rights and remedies, with the handling
of disputes on regulatory issues. They must know the various regulatory offices that The candidates must also be familiar with clients’ rights and remedies, with the handling of
they will be interacting with and the basic regulations that they will derive benefits from. disputes on regulatory issues. They must know the various regulatory offices that they will
be interacting with and the basic regulations that they will derive benefits from.
The candidates must also be able to communicate effectively matters pertaining to the
regulatory work that will be handled. The candidates must also be able to communicate effectively matters pertaining to the
regulatory work that will be handled.
The knowledge of the candidates in the competencies cited above is that of an entry
level accountant who can address the fundamental requirements of the various parties The knowledge of the candidates in the competencies cited above is that of an entry level
that the candidates will be interacting professionally in the future. accountant who can address the fundamental requirements of the various parties that the
candidates will be interacting professionally in the future.
New laws, standards and other issuances which are effective as of the date of the
examination shall supersede the related topic listed in the syllabus and will be included Only new laws, implementing rules and regulations, jurisprudences and other issuances
in the examination, unless there is an advisory from the Board of Accountancy to the shall be included in the examinations if these are in effect for at least six (6) months at the
contrary. date of the examination.

The examination shall have one hundred (100) multiple choice questions.
The examination shall have one hundred (100) multiple choice questions.
The syllabus for the subject is presented below.
The syllabus for the subject is presented below.
 LEGEND: New Add Move Change Delete LEGEND: New Add Move Change Delete

1.0 Law on Business Transactions 1.0 LAW ON BUSINESS TRANSACTIONS

1.1 Obligations 1.1 Obligations
1.1.1 Definition 1.1.1 Sources of obligations and their concepts
1.1.2 Sources of obligations and their concepts 1.1.1.1 Law
1.1.2.1 Law 1.1.1.2 Contracts
1.1.2.2 Contracts 1.1.1.3 Quasi-contracts
1.1.2.3 Quasi-contracts 1.1.1.4 Delicts
1.1.2.4 Delicts 1.1.1.5 Quasi-delicts
1.1.2.5 Quasi-delicts 1.1.2 Kinds of obligations in general under the Civil Code
1.1.3 Kinds of Obligations 1.1.3 Specific circumstances affecting obligations in general
1.1.3.1 Pure / Conditional / Obligation with a Term 1.1.3.1 Fortuitous events
1.1.3.2 Solidary / Joint Obligations 1.1.3.2 Fraud
1.1.3.3 Alternative / Facultative Obligations 1.1.3.3 Negligence
1.1.3.4 Divisible / Indivisible Obligations 1.1.3.4 Delay
1.1.3.5 Obligation with a Penal Clause 1.1.3.5 Breach of contract
1.1.4 Specific circumstances affecting obligations in general 1.1.4 Duties of obligor in obligation to do or not to do
1.1.4.1 Fortuitous Events 1.1.5 Extinguishment of obligation with special emphasis on
1.1.4.2 Fraud 1.1.5.1 Payment of debts of money
1.1.4.3 Negligence 1.1.5.2 Mercantile documents as means of payment
1.1.4.4 Delay 1.1.5.3 Special forms or modes of payment
1.1.4.5 Breach of contract 1.1.5.4 Remission or condonation, confusion, compensation and
1.1.5 Nature and Effects of Obligations novation
1.1.5.1 Concurrent Obligations in obligations to give a specific / 1.1.5.5 Effect of insolvency and bankruptcy on extinguishment of
determinate thing obligation
1.1.5.2 Obligations to do or not to do
1.1.5.3 Remedies in case of non-performance
1.1.5.4 Damages
1.1.6 Extinguishment of obligation with special emphasis on
1.1.6.1 Payment of debts of money
1.1.6.2 Mercantile documents as means of payment
1.1.6.3 Special forms or mode of payment
1.1.6.3.1 Dation in payment
1.1.6.3.2 Application of payments
1.1.6.3.3 Payment by cession
1.1.6.3.4 Tender of payment and consignation
1.1.6.4 Loss of the thing due, remission or condonation,
confusion, compensation and novation
LEGEND: New Add Move Change Delete LEGEND: New Add Move Change Delete

1.2 Contracts 1.2 Contracts

1.2.1 General Provisions 1.2.1 Concepts and classification
1.2.1.1 Definition 1.2.2 Elements and stages
1.2.1.2 Classification 1.2.3 Freedom from contract and limitation
1.2.1.3 Stages of contract 1.2.4 Persons bound
1.2.1.4 Freedom to contract (establish stipulations) and limitation 1.2.5 Consent
1.2.1.5 Persons bound 1.2.5.1 Capacitated persons
1.2.2 Essential requisites 1.2.5.2 Requisites
1.2.2.1 Consent 1.2.5.3 Vices of consent
1.2.2.1.1 Requisites 1.2.6 Objects of contracts and considerations of contracts
1.2.2.1.2 Capacitated persons 1.2.7 Formalities of contracts
1.2.2.1.3 Vices of consent 1.2.8 Interpretation and reformation of contract
1.2.2.2 Objects of contracts 1.2.9 Defective contracts
1.2.2.3 Cause or considerations of contracts 1.2.9.1 Rescissible
1.2.3 Forms of contracts 1.2.9.2 Voidable
1.2.4 Reformation of instruments / contracts 1.2.9.3 Unenforceable
1.2.5 Interpretation of contracts 1.2.9.4 Void
1.2.6 Defective contracts
1.2.6.1 Resistible
1.2.6.2 Voidable
1.2.6.3 Unenforceable
1.2.6.4 Void and inexistent
1.3 Sales 1.3 Sales
1.3.1 Nature, forms and requisites 1.3.1 Nature, forms and requisites
1.3.2 Earnest money as distinguished from option money 1.3.2 Earnest money as distinguished from option money
1.3.3 Rights / obligations of vendor and vendee 1.3.3 Rights / obligations of vendor and vendee
1.3.4 Warranties 1.3.4 Warranties (in relation to consumer laws)
1.3.4.1 Express Warranties (in relation to consumer laws) 1.3.5 Installment sales
1.3.4.2 Implied Warranties 1.3.5.1 Personal property – Recto Law
1.3.5 Installment sales 1.3.5.2 Real Property – Maceda Law
1.3.5.1 Personal property – Recto Law 1.3.5.3 PD 957 / Condominium Act
1.3.5.2 Real Property – Maceda Law
1.3.5.3 PD 957 / Condominium Act
1.3.6 Extinguishment of a contract of sale
1.3.6.1 Conventional Redemption
1.3.7 Legal Redemption
 LEGEND: New Add Move Change Delete LEGEND: New Add Move Change Delete

1.4 Credit Transactions 2.0 LAW ON CREDIT TRANSACTIONS

1.4.1 Pledge, Real Mortgage and Chattel Mortgage 2.1 Pledge, Real Mortgage and Chattel Mortgage
1.4.1.1 Similarities 2.1.1 Nature and requisites
1.4.1.2 Requisites 2.1.2 Requirements to bind the parties and third persons
1.4.1.3 Indivisibility 2.1.3 Obligations and rights of pledgor and pledgee
1.4.1.4 Pactum Commissorium 2.1.4 Obligations and rights of mortgagor and mortgagee and effect of
1.4.1.5 Third party pledgors / mortgagors pactum commissorium
1.4.2 Requirements to bind the parties and third persons 2.1.5 Modes of extinguishment
1.4.3 Obligations and rights of pledgor and pledgee
1.4.4 Obligations and rights of mortgagor and mortgagee
1.4.5 Modes of extinguishment

2.0 Bouncing Checks 3.0 NEGOTIABLE INSTRUMENTS AND BOUNCING CHECKS LAW
2.1 Requisites to be liable under BP 22 3.1 Negotiable Instruments
2.1.1 Checks without insufficient funds 3.1.1 Negotiability of instrument
2.1.2 Evidence of knowledge of insufficient funds 3.1.2 Abnormal negotiable instruments
2.1.3 Duty of Drawer 3.1.3 Incomplete but delivered instruments
2.1.4 Credit Construed 3.1.4 Incomplete and undelivered instruments
2.2 Comparison with Estafa (Art. 315 [2] (d)) 3.1.5 Complete but undelivered instruments
3.1.6 Instruments with forged signature
3.2 Bouncing Checks
3.2.1 Checks without insufficient funds
3.2.2 Evidence of knowledge of insufficient funds
3.2.3 Duty of Drawee
3.2.4 Credit Construed

3.0 Consumer Protection

3.1 Consumer Product Quality and Safety
3.2 Deceptive Sales Acts and Practices
3.3 Product Service and Warranty
3.4 Labelling and Packaging
3.5 Consumer Rights
3.5.1 Price Tag Act
3.5.2 Lemon Law
 LEGEND: New Add Move Change Delete LEGEND: New Add Move Change Delete

4.0 Financial Rehabilitation and Insolvency

4.1 Definition of Terms
4.2 Suspension of payments
4.3 Rehabilitation
4.3.1 Types
4.3.2 Commencement order
4.3.3 Stay or suspension order
4.3.4 Rehabilitation receiver
4.3.5 Management committee
4.3.6 Rehabilitation plan
4.3.7 Cram down effect
4.4 Liquidation
4.4.1 Types
4.4.2 Conversion of rehabilitation to liquidation proceedings
4.4.3 Liquidation order
4.4.4 Rights of secured creditors
4.4.5 Liquidator
4.4.6 Determination of claims
4.4.7 Liquidation of Plan

5.0 Philippine Competition Act

5.1 Definition and scope of application
5.2 Prohibited acts
5.2.1 Anti-competitive agreements
5.2.2 Abuse of dominant position
5.2.3 Prohibited mergers and acquisitions
5.2.4 Exceptions
5.3 Covered transactions
5.3.1 Thresholds for compulsory notification
5.3.2 Notifying entity
5.3.3 Period of notifications
5.3.4 Exceptions
 LEGEND: New Add Move Change Delete LEGEND: New Add Move Change Delete

6.0 Government Procurement Law

6.1 General principles
6.2 Scope and application
6.3 Definition of terms
6.4 Procurement procedures
6.4.1 Preparation of bidding documents
6.4.2 Invitation to bid
6.4.3 Receipt and opening of bids
6.4.4 Bid evaluation
6.4.5 Post-qualification
6.4.6 Award, implementation and termination of the contract
6.5 Disclosure of relations
6.6 Alternative methods of procurement

7.0 Law on Business Organizations 4.0 LAW ON BUSINESS ASSOCIATIONS

7.1 Partnerships 4.1 Partnership
7.1.1 Nature and as distinguished from corporation 4.1.1 Nature and as distinguished from corporation
7.1.2 Kinds of partnerships 4.1.2 Elements and kinds
7.1.3 Formalities required 4.1.3 Formalities required
7.1.4 Rules of management 4.1.4 Rules of management
7.1.5 Obligations of partners 4.1.5 Distribution of profits and losses
7.1.5.1 To the partnership and to the partners 4.1.6 Sharing of losses and liabilities
7.1.5.2 To third persons 4.1.7 Modes and retirement requirements
7.1.6 Rights of a partner 4.1.8 Limited partnership
7.1.7 Sharing of profits and losses
7.1.8 Dissolution and winding up
7.1.9 Limited Partnership
LEGEND: New Add Move Change Delete LEGEND: New Add Move Change Delete

7.2 Corporations 4.2 Corporations

7.2.1 Definition of corporation 4.2.1 Nature and classes of corporation
7.2.2 Classes of corporations 4.2.2 Incorporation and organization of Private Corporation
7.2.3 Nationality of corporations 4.2.3 Powers of a corporation
7.2.3.1 Control test 4.2.3.1 Expressed
7.2.3.2 Grandfather rule 4.2.3.2 Implied
7.2.4 Corporate juridical personality 4.2.3.3 Incidental
7.2.4.1 Doctrine of separate juridical personality 4.2.4 Board of Directors / Corporate Officers
7.2.4.1.1 Liability for tort and crimes 4.2.4.1 Qualifications
7.2.4.1.2 Recovery of damages 4.2.4.2 Election and removal
7.2.4.2 Doctrine of piercing the corporate veil 4.2.4.3 Powers and fiduciary duties
7.2.4.2.1 Grounds for application of doctrine 4.2.5 Classes of stocks
7.2.4.2.2 Test in determining applicability 4.2.5.1 Concepts
7.2.5 Capital structure 4.2.5.2 Subscriptions
7.2.5.1 Number and qualifications of incorporators 4.2.6 Powers, duties, rights and obligations of stockholders
7.2.5.2 Subscription requirements 4.2.7 Majority and minority control
7.2.5.3 Corporate term 4.2.8 By Laws
7.2.5.4 Classification of shares 4.2.9 Meetings
7.2.5.4.1 Preferred shares versus common shares 4.2.10 Corporate reorganization
7.2.5.4.2 Scope of voting rights subject to classification 4.2.10.1 Mergers
7.2.5.4.3 Founder’s shares 4.2.10.2 Consolidations
7.2.5.4.4 Redeemable shares 4.2.10.3 Other business combinations
7.2.5.4.5 Treasury shares 4.2.11 Non-stock corporation
7.2.6 Incorporation and organization 4.2.12 Modes of dissolution and liquidation
7.2.6.1 Promoter 4.2.12.1 Retirement Requirements
7.2.6.2 Subscription contract 4.2.13 Foreign corporations
7.2.6.3 Pre-incorporation subscription agreements 4.2.13.1 License to do business
7.2.6.4 Consideration for stocks 4.2.13.1.1 Purpose of the license
7.2.6.5 Articles of Incorporation 4.2.13.1.2 Requirements for application / issuance of
7.2.6.5.1 Contents license
7.2.6.5.2 Non-amendable items 4.2.13.1.3 Consequence of doing business without a
7.2.6.6 Corporate name; limitations on use of corporate name license
7.2.6.7 Registration, incorporation and commencement of 4.2.13.2 Definition and rights of foreign corporations
corporate existence 4.2.13.3 Suspension or revocation of license
7.2.6.8 Election of directors or trustees 4.2.14 Kinds and availability of corporate books
7.2.6.9 Adoption of by-laws
7.2.6.9.1 Contents of by-laws
7.2.6.9.2 Binding effects
7.2.6.9.3 Amendments
7.2.6.10 Effects of non-use of corporate charter
LEGEND: New Add Move Change Delete LEGEND: New Add Move Change Delete

7.2.7 Corporate powers

7.2.7.1 General powers; theory of general capacity
7.2.7.2 Specific powers; theory of specific capacity
7.2.7.3 Power to extend or shorten corporate term
7.2.7.4 Power to increase or decrease capital stock or incur,
create, increase bonded indebtedness
7.2.7.5 Power to deny pre-emptive rights
7.2.7.6 Power to sell or dispose corporate assets
7.2.7.7 Power to acquire own shares
7.2.7.8 Power to invest corporate funds in another corporation or
business
7.2.7.9 Power to declare dividends
7.2.7.10 Power to enter into management contract
7.2.7.11 Ultra vires acts
7.2.7.12 Doctrine of individuality of subscription
7.2.7.13 Doctrine of equality of shares
7.2.7.14 Trust fund doctrine
7.2.8 Stockholders and members
7.2.8.1 Fundamental rights of a stockholder
7.2.8.2 Participation in management
7.2.8.2.1 Proxy
7.2.8.2.2 Voting trust
7.2.8.2.3 Cases when stockholders’ action is required
7.2.8.2.4 Manner of voting
7.2.8.3 Proprietary rights
7.2.8.3.1 Appraisal right
7.2.8.3.2 Right to inspect
7.2.8.3.3 Preemptive right
7.2.8.3.4 Right to vote
7.2.8.3.5 Right to dividends
7.2.8.4 Remedial rights
7.2.8.4.1 Individual suit
7.2.8.4.2 Representative suit
7.2.8.4.3 Derivative suit
7.2.8.5 Obligations of a stockholder
7.2.8.6 Meetings
7.2.8.6.1 Regular or special
7.2.8.6.2 Notice of meetings
7.2.8.6.3 Place and time of meetings
7.2.8.6.4 Quorum
7.2.8.6.5 Minutes and agenda of meetings
7.2.8.6.6 Remote communication
LEGEND: New Add Move Change Delete LEGEND: New Add Move Change Delete

7.2.9 Board of directors and trustees

7.2.9.1 Repository of corporate powers
7.2.9.2 Tenure, qualifications and disqualifications of directors
7.2.9.3 Corporations vested with public interest
7.2.9.4 Independent directors
7.2.9.5 Elections
7.2.9.6 Removal
7.2.9.7 Filling of vacancies
7.2.9.8 Compensation
7.2.9.9 Disloyalty
7.2.9.9.1 Business judgment rule
7.2.9.9.2 Solidary liabilities for damages
7.2.9.10 Personal liabilities
7.2.9.11 Responsibility for crimes
7.2.9.12 Special fact doctrine
7.2.9.13 Inside information
7.2.9.14 Contracts
7.2.9.15 Between corporations with interlocking directors
7.2.9.16 Executive and other special committees
7.2.9.17 Meetings
7.2.9.17.1 Regular or special
7.2.9.17.2 Who presides?
7.2.9.17.3 Quorum
7.2.9.17.4 Remote communication
7.2.9.17.5 Rule on abstention
7.2.10 Capital affairs
7.2.10.1 Certificate of stock
7.2.10.2 Watered stocks
7.2.10.3 Payment of balance of subscription
7.2.10.4 Sale of delinquent shares
7.2.10.5 Alienation of shares
7.2.10.6 Corporate books and records
7.2.10.6.1 Records to be kept at principal office
7.2.10.6.2 Right to inspect corporate records
7.2.10.6.3 Effect of refusal to inspect corporate records
7.2.11 Dissolution and liquidation
7.2.11.1 Modes of dissolution
7.2.11.2 Methods of liquidation
LEGEND: New Add Move Change Delete LEGEND: New Add Move Change Delete

7.2.12 Other corporations

7.2.12.1 Non-stock corporations
7.2.12.2 Educational corporations
7.2.12.3 Religious corporations
7.2.12.4 One person corporations
7.2.12.4.1 Excepted corporations
7.2.12.4.2 Capital stock requirement
7.2.12.4.3 Articles of incorporation and by-laws
7.2.12.4.4 Corporate name
7.2.12.4.5 Corporate structure and officers
7.2.12.4.6 Nominee
7.2.12.4.7 Liability
7.2.12.4.8 Conversion of corporation to one person
corporations and vice-versa
7.2.12.5 Foreign corporations
7.2.12.5.1 Bases of authority over foreign corporations
7.2.12.5.2 Necessity of a license to do business
7.2.12.5.3 Personality to sue
7.2.12.5.4 Suability of foreign corporations
7.2.12.5.5 Instances when unlicensed foreign
corporations may be allowed to sue
(isolated transactions)
7.2.12.5.6 Grounds for revocation of license
7.2.13 Merger and consolidation
7.2.13.1 Definition and concept
7.2.13.2 Distinguish: constituent and consolidated corporation
7.2.13.3 Plan of merger or consolidation
7.2.13.4 Articles of merger or consolidation
7.2.13.5 Procedure, effectivity, limitations and effects
7.2.14 Investigations, offenses, and penalties
7.2.14.1 Authority of Commissioner
7.2.14.1.1 Investigation and prosecution of offenses
7.2.14.1.2 Contempt
7.2.14.2 Sanctions for violations
7.2.14.2.1 Administrative sanctions
7.2.14.2.2 Prohibited Acts
7.2.14.2.3 Penalties
7.2.14.3 Who are liable?
7.2.14.4 Authority of the Securities and Exchange Commission
LEGEND: New Add Move Change Delete LEGEND: New Add Move Change Delete

7.2.15 Corporate Governance 4.2.15 Securities Regulation Code

7.2.15.1 Publicly-listed companies 4.2.15.1 Registration of securities
7.2.15.2 Public companies and registered issuers 4.2.15.2 Shareholders’ interests
7.2.16 Securities 4.2.15.3 Prohibition on fraud, manipulation, private tender offer
7.2.16.1 Kinds of securities and insider trading
7.2.16.2 Procedure for registration of securities 4.2.15.4 Exchanges and other securities trading markets
7.2.16.3 Prohibition on fraud, manipulation and insider trading 4.2.16 Code of Corporate Governance
7.2.16.4 Protection of shareholder interests 4.2.17 Securities Regulation Code (SRC) Rule 68, as amended
7.2.17 Securities Regulation Code (SRC) Rule 68 4.2.18 SEC Circulars and Issuances
7.2.17.1 General Financial Reporting requirements 4.2.18.1 Filing of General Information Sheet
7.2.17.1.1 Application and definition of terms 4.2.18.2 Filing of Annual Audited Financial Statements
7.2.17.1.2 Guides to financial statements preparation 4.2.18.3 Filing of Articles of Incorporation, By-laws and its
7.2.17.1.2.1 Financial reporting framework amendments and Secondary License
7.2.17.1.2.2 Responsibility for financial Fines and Penalties
statements
7.2.17.1.3 Qualifications and reports of independent
auditors
7.2.18 SEC Issuances
7.2.18.1 Memo Circulars
7.2.18.2 Opinions
7.3 Insurance
7.3.1 Concept of insurance
7.3.2 Elements of an insurance contract
7.3.3 Characteristics and nature of insurance contracts
7.3.4 Classes
7.3.5 Variable contracts
7.3.6 Insurable interest
7.3.7 Perfection of the contract of insurance
7.3.8 Rescission of insurance contracts
7.3.9 Claims settlement and subrogation
7.4 Cooperatives 4.3 Cooperatives
7.4.1 Organization and Registration of Cooperatives 4.3.1 Organization and Registration of Cooperatives
7.4.2 Administration 4.3.2 Administration
7.4.3 Responsibilities, Rights and Privileges of Cooperatives 4.3.3 Responsibilities, Rights and Privileges of Cooperatives
7.4.4 Membership 4.3.4 Membership
7.4.5 Capital, Property of Funds 4.3.5 Capital, Property of Funds
7.4.6 Audit, Inquiry and Members’ Right to Examine 4.3.6 Audit, Inquiry and Members’ Right to Examine
7.4.7 Allocation and Distribution of Funds 4.3.7 Allocation and Distribution of Funds
7.4.8 Types and Categories of Cooperatives 4.3.8 Types and Categories of Cooperatives
7.4.9 Merger and Consolidation of Cooperatives 4.3.9 Merger and Consolidation of Cooperatives
7.4.10 Dissolution of Cooperatives 4.3.10 Dissolution of Cooperatives
 LEGEND: New Add Move Change Delete LEGEND: New Add Move Change Delete

8.0 Law on Other Business Transactions 5.0 LAW ON OTHER BUSINESS TRANSACTIONS
8.1 PDIC Law 5.1 PDIC Law
8.1.1 Insurable deposits 5.1.1 Insurable Deposits
8.1.2 Maximum liability 5.1.2 Maximum Liability
8.1.3 Requirements for Claims 5.1.3 Requirements for Claims
8.2 Secrecy of Bank Deposits 5.2 Secrecy of Bank Deposits and Unclaimed Balances Law
8.2.1 Purpose
8.2.2 Prohibited acts
8.2.3 Deposits covered
8.2.4 Exceptions
8.2.5 Garnishment of deposits including foreign deposits
8.3 Truth in Lending Act
8.3.1 Purpose
8.3.2 Obligation of creditors to persons to whom credit is extended
8.3.3 Covered and excluded transactions
8.3.4 Consequences of non-compliance with obligation
8.4 AMLA Law 5.3 AMLA Law
8.4.1 Purpose, policies and principles 5.3.1 Definition of Terms
8.4.2 Definition of terms 5.3.2 Unlawful Activities
8.4.3 Unlawful activities 5.3.3 Covered Institutions / Persons and Covered Transactions
8.4.4 Covered persons 5.3.4 Suspicious Transactions
8.4.5 Money laundering, terrorism and financing and asset forfeiture 5.3.5 Record Keeping Requirements
8.4.6 Preventive measures and obligations of covered persons 5.3.6 Powers of AMLC
8.4.6.1 Prohibited accounts 5.3.7 Reporting Requirements
8.4.6.2 Customer due diligence
8.4.7 Beneficial ownership
8.4.8 Record keeping requirements
8.4.9 Safe Harbor
8.5 Intellectual Property Law (except provisions under Part 1) 5.4 Intellectual Property Law (except provisions under Part 1)
8.5.1 Patents 5.4.1 The Law on Patents
8.5.2 Trademark, Service Marks and Trade Names 5.4.2 The Law on Trademark, Service Marks and Trade Names
8.5.3 Copyright 5.4.3 The Law on Copyright
8.6 Data Privacy Act 5.5 Data Privacy Act
8.6.1 Definitions 5.5.1 General Provisions and National Privacy Commission
8.6.2 Scope of application 5.5.2 Processing and Security of Personal Information
8.6.3 Data Privacy Principles 5.5.3 Rights of the Data Subject
8.6.4 Processing of personal data 5.5.4 Accountability for Transfer of Information
8.6.5 Security measures for protection of personal data 5.5.5 Security of Sensitive Personal Information in Government
8.6.6 Rights of Data Subject 5.5.6 Penalties
8.6.7 Data breach notification
8.6.8 Outsourcing and subcontracting agreements
8.6.9 Registration and compliance requirements
LEGEND: New Add Move Change Delete LEGEND: New Add Move Change Delete

8.7 Electronic Commerce Act 5.6 Electronic Commerce Act

8.7.1 Principles 5.6.1 General Provisions
8.7.2 Application 5.6.2 Legal Recognition and Communication of Electronic Data
8.7.3 Definition of terms Messages and Electronic Documents
8.7.4 Legal recognition and communication of electronic data messages 5.6.3 Electronic Commerce in Carriage of Goods and Electronic
and electronic documents Transactions in Government
8.7.5 Electronic commerce in carriage of goods
8.7.6 Electronic transactions in government
8.8 Ease of Doing Business and Efficient Delivery of Government Service 5.7 Ease of Doing Business and Efficient Delivery of Government Services Law
Delivery Act 5.7.1 Coverage and Definition of Terms
8.8.1 Policy, construction and interpretation 5.7.2 Accessing Government Services and Automatic Approval or
8.8.2 Definition of terms Extension of Permits and Licenses
8.8.3 Coverage and scope 5.7.3 Streamlined Procedures for the Issuance of Local Business
8.8.4 Reengineering of systems and procedures Licenses, Clearance, and Permits
8.8.5 Citizen’s charter
8.8.6 Accessing government services
8.8.7 Streamlined procedures for the issuances of permits and licenses
8.8.8 Violations, jurisdiction, penalties, and immunity
8.9 Labor Law
8.9.1 Labor Standards
8.9.1.1 Basic pay
8.9.1.2 Overtime premium
8.9.1.3 Night shift differential
8.9.1.4 Holiday premium
8.9.1.5 13th month pay
8.9.1.6 Leaves
8.9.1.7 Service incentive leave
8.9.1.8 Maternity leave
8.9.1.9 Paternity leave
8.9.1.10 Parental leave for solo parent
8.10 Social Security Law
8.10.1 Definitions
8.10.2 Scope and Coverage
8.10.3 Pension, Retirement and other benefits
8.10.4 Exemptions from tax, legal process and lien
8.10.5 Employee’s and employer’s contributions
8.10.6 Contributions from self-employed member
8.10.7 Remittance of contributions
8.10.8 Method of collection and payment
8.10.9 Employment records and reports
8.10.10 Penal Clauses
 LEGEND: New Add Move Change Delete LEGEND: New Add Move Change Delete

THE CPA LICENSURE EXAMINATION SYLLABUS THE CPA LICENSURE EXAMINATION SYLLABUS
TAXATION TAXATION

Effective October 2022 Examination Effective May 2019 Examination

This subject covers the candidates’ knowledge of the principles and concepts of This subject covers the candidates’ knowledge of the principles and concepts of taxation
taxation and the practical application of these principles and concepts. Candidates are and the practical application of these principles and concepts. Candidates are expected to
expected to know the provisions of the National Internal Revenue Code (NIRC) as know the National Internal Revenue Code (NIRC) provisions on income tax, business
amended, BIR Issuances (such as but not limited to Revenue Regulations, Revenue taxes (value-added and percentage taxes), estate tax, donor’s tax, the Tariff and Customs
Memorandum Circulars, Revenue Rulings) on income tax, business taxes (value-added Code, Local Government Code on local taxes, preferential tax or tax exemption provisions
and percentage taxes), estate tax, donor’s tax, excise tax, and documentary stamp tax, and taxes pertaining to senior citizens and persons with disability, Board of Investments,
organization and functions of the Bureau of Internal Revenue (BIR), tax remedies, PEZA, BMBE, various Tax Treaties and other special laws and issuances that may be
compliance requirements, and statutory offenses and penalties; Local Government legislated in the future. The candidates must be familiar with the Implementing Rules and
Code on local taxation; and preferential tax or tax exemption provisions and taxes Regulations, circulars, rulings and other issuances pertinent to the implementation of the
pertaining to senior citizens and persons with disability, Board of Investments, various taxation laws earlier specified. The candidates should know the taxation principles
Philippine Economic Zone Authority (PEZA), Bases Conversion Development Act in the decisions of the Court of Tax Appeals, Court of Appeals and Supreme Court.
(BCDA), Barangay Micro Business Enterprises (BMBE), various Tax Treaties and other
special laws and issuances that may be legislated in the future. The candidates must be
familiar with the Implementing Rules and Regulations, circulars, rulings and other
issuances pertinent to the implementation of the various taxation laws earlier specified.
The candidates should know the taxation principles in the decisions of the Court of Tax
Appeals, Court of Appeals and Supreme Court.

The candidates must have a working knowledge to comply with the various taxation The candidates must have a working knowledge to comply with the various taxation
measures. Compliance includes, among others, computation of tax liabilities, measures. Compliance includes, among others, computation of tax liabilities,
accomplishing tax returns and forms, availment of tax incentive benefits, submission of accomplishing tax returns and forms, availment of tax incentive benefits, submission of tax
tax related regulatory and registration requirements and dealing with the various offices related regulatory and registration requirements and dealing with the various offices
involved in taxation. involved in taxation.

The candidates must also be familiar with the taxpayer rights and remedies, handling The candidates must also be familiar with the taxpayer rights and remedies, handling
disputes on tax issues, knowing the various tax offices that they will be interacting and disputes on tax issues, knowing the various tax offices that they will be interacting and
basic tax planning to derive the benefits of the tax laws and incentives. basic tax planning to derive the benefits of the tax laws and incentives.
 LEGEND: New Add Move Change Delete LEGEND: New Add Move Change Delete

The candidates must also be able to communicate effectively matters pertaining to the The candidates must also be able to communicate effectively matters pertaining to the
taxation work that will be handled. taxation work that will be handled.

The knowledge of the candidates in the competencies cited above is that of an entry The knowledge of the candidates in the competencies cited above is that of an entry level
level accountant who can address the fundamental requirements of the various parties accountant who can address the fundamental requirements of the various parties that the
that the candidates will be interacting professionally in the future. candidates will be interacting professionally in the future.

New laws, implementing rules and regulations, jurisprudences, standards and other Only new laws, implementing rules and regulations, jurisprudences and other issuances
issuances which are effective as of the date of the examination shall supersede the shall be included in the examinations if these are in effect for at least six (6) months at the
related topic listed in the syllabus and will be included in the examination, unless there date of the examination.
is an advisory from the Board of Accountancy to the contrary.

Graduated tax rates, excise tax rates, documentary stamp tax rates, local business tax Tax rates shall be provided in the examination when candidates are required to compute
rates, and real property tax rates (including assessment levels of real properties) shall taxes.
be provided in the examination when candidates are required to compute taxes.

The examination shall have seventy (70) multiple choice questions. The examination shall have seventy (70) multiple choice questions.

The syllabus for the subject is presented below. The syllabus for the subject is presented below.

1.0 Principles of Taxation 1.0 PRINCIPLES OF TAXATION

1.1 Nature, scope, classification, and essential characteristics 1.1 Nature, scope, classification, and essential characteristics
1.2 Principles of taxation 1.2 Principles of sound tax system
1.3 Tax evasion vs. tax avoidance 1.3 Limitations on the power of taxation
1.4 Situs / place of taxation 1.4 Tax evasion vs. tax avoidance
1.5 Double taxation 1.5 Situs / place of taxation
1.6 Legislation of tax laws 1.6 Double taxation
1.7 Impact of taxes in nation building 1.7 Legislation of tax laws
1.8 Ethical tax compliance and administration 1.8 Impact of taxes in nation building
1.9 Organization and functions of the Bureau of Internal Revenue, Local 1.9 Ethical tax compliance and administration
Government Tax Collecting Units, Board of Investments, Philippine Economic 1.10 Organization of the Bureau of Internal Revenue, Bureau of Customs, Local
Zone Authority and the Bases Conversion and Development Authority Government Tax Collecting Units, Board of Investments, Philippine
Economic Zone Authority
 LEGEND: New Add Move Change Delete LEGEND: New Add Move Change Delete

2.0 Tax Remedies 2.0 TAX REMEDIES

2.1 Tax remedies of the government 2.1 Remedies of the government
2.2 Remedies of the taxpayer 2.1.1 Definition, scope, prescriptive period
2.1.2 Administrative remedies
2.1.3 Judicial actions
2.1.4 Additions to Tax (surcharge, interest, compromise penalty)
2.1.5 Other sanctions (criminal penalties, closure of business, collection of
delinquent taxes)
2.1.6 Powers of the Bureau of Internal Revenue
2.2 Remedies of the taxpayer
2.2.1 Definition, scope, prescriptive period
2.2.2 Taxpayers rights
2.2.3 Administrative remedies (protesting of assessment, recovery of
excess or erroneously paid taxes, request for the compromise,
abatement or refund or credit of taxes, request for rulings)
2.2.4 Judicial remedies
2.3 Expanded jurisdiction of the Court of Tax Appeals

3.0 Income Taxation 3.0 INCOME TAX

3.1 The taxpayer and tax base 3.1 Taxpayer and tax base
3.2 Gross income 3.1.1 Individuals
3.3 Deductions from gross income 3.1.2 Corporations
3.4 Accounting periods 3.1.3 Partnerships
3.5 Accounting methods 3.1.4 Joint ventures
3.6 Tax due and determine tax credits, if applicable 3.1.5 Estates and trusts
3.7 Tax return preparation and filing and tax payments 3.1.6 Co-ownerships
3.8 Withholding taxes (at source, expanded or creditable withholding tax, final 3.1.7 Tax exempt individuals and organizations
withholding taxes and withholding tax on government payments) 3.2 Gross income
3.9 Compliance requirements 3.2.1 Inclusions in the gross income
3.10 Specific provisions of other special laws relating to income taxation 3.2.2 Exclusions / exemptions from gross income
3.10.1 Senior Citizen’s Law (RA 7432) 3.2.3 Income from compensation
3.10.2 Magna Carta for Disabled Persons (RA 7277) 3.2.4 Income from business
3.10.3 Barangay Micro Business Enterprises (BMBEs) Act (RA 9178) 3.2.5 Passive income subject to final withholding tax
3.11 Differences between tax rules and accounting rules (e.g., PFRS or other 3.2.6 Capital gains
frameworks) 3.3 Deductions from gross income
3.11.1 The differences between tax rules and accounting rule 3.3.1 Itemized deductions
3.11.2 Accounting income to taxable income 3.3.2 Items not deductible
3.12 Tax implications of transactions applying the tax rules and regulations, and 3.3.3 Optional standard deduction
sound tax planning strategies within legal and ethical bounds to efficiently 3.3.4 Deductions allowed under special laws
manage tax liabilities
LEGEND: New Add Move Change Delete LEGEND: New Add Move Change Delete

3.4 Accounting periods

3.5 Accounting methods
3.5.1 Reconciliation of income under PFRS and income under Tax
Accounting
3.6 Tax return preparation and filing and tax payments
3.6.1 Manual filing
3.6.2 Electronic filing and E-submission
3.6.3 Large taxpayers and non-large taxpayers
3.6.4 Income tax credits
3.6.5 Venue and time of filing of tax returns
3.6.6 Venue and time of payment
3.6.7 Modes of payment
3.6.8 Use of tax tables
3.6.9 Accomplishing of various income tax returns and forms
3.7 Withholding taxes (at source, expanded or creditable withholding tax, final
withholding taxes and withholding tax on government payments)
3.7.1 Time of withholding
3.7.2 Income payments subject to withholding
3.7.3 Year-end withholding of tax and requirements
3.7.4 Venue and time of filing of withholding tax returns
3.7.5 Venue and time of payment
3.7.6 Modes of payment
3.7.7 Time of payment
3.7.8 Use of tax tables and rates
3.7.9 Use of various withholding tax returns and forms
3.8 Compliance Requirements
3.8.1 Administrative requirements (registration, issuance of receipts,
printing of receipts)
3.8.2 Attachments to the income tax return, including CPA certificate, per
NIRC requirement
3.8.3 Keeping of books of accounts and records, including report of
inventories
3.8.4 Prescriptive period of maintain books of accounts and other
accounting records
 LEGEND: New Add Move Change Delete LEGEND: New Add Move Change Delete

4.0 Transfer Taxes 4.0 TRANSFER TAX

4.1 Estate tax 4.1 Estate tax
4.1.1 Principles, concepts involving donor’s taxation 4.1.1 Gross estate
4.1.2 Transfers which may be considered a donation 4.1.2 Deductions allowed to estate
4.1.3 Classification of donors 4.1.3 Tax credit
4.1.4 Net gifts / donations 4.1.4 Venue and time of filing of tax returns
4.1.5 Tax due and tax credits, if applicable 4.1.5 Venue and time of payment
4.1.6 Tax return preparation and filing and tax payments 4.1.6 Modes of payment
4.1.7 Compliance requirements 4.1.7 Use of tax tables
4.1.8 Tax implications of transactions applying the tax rules and regulations, 4.1.8 Accomplishing of tax returns and forms
and sound tax planning strategies within legal and ethical bounds to 4.1.9 Attachments to the tax return
efficiently manage tax liabilities 4.1.10 Administrative requirements
4.2 Donor’s tax 4.2 Donor’s tax
4.2.1 Principles, concepts involving donor’s taxation 4.2.1 Gross gift
4.2.2 Transfers which may be considered a donation 4.2.2 Exemptions
4.2.3 Classification of donors 4.2.3 Tax rates in general and when the donee is a stranger
4.2.4 Net gifts / donations 4.2.4 Venue and time of filing of tax returns
4.2.5 Tax due and tax credits, if applicable 4.2.5 Venue and time of payment
4.2.6 Tax return preparation and filing and tax payments 4.2.6 Modes of payment
4.2.7 Compliance requirements 4.2.7 Use of tax tables
4.2.8 Tax implications of transactions applying the tax rules and regulations, 4.2.8 Accomplishing of tax returns and forms
and sound tax planning strategies within legal and ethical bounds to 4.2.9 Attachments to the tax return
efficiently manage tax liabilities 4.2.10 Administrative requirements

5.0 Business Taxes 5.0 VALUE ADDED TAX (VAT) AND PERCENTAGE TAX
5.1 Value-added tax 5.1 Value added tax
5.1.1 Nature and characteristics of value-added tax 5.1.1 Output VAT
5.1.2 Persons subject to value-added tax 5.1.2 Input VAT
5.1.3 Transactions subject to 12%, 0% and withholding VAT and / or 5.1.3 VAT tax credits
exempt from value-added tax 5.1.4 Refund of excess input VAT
5.1.4 Sources of input tax 5.1.5 Venue and time of filing of tax returns
5.1.5 Value-added tax payable or excess input tax credits and tax credits, if 5.1.6 Venue and time of payment
applicable 5.1.7 Modes of payment
5.1.6 Process for claiming input VAT refund 5.1.8 Accomplishing of tax returns and forms
5.1.7 Tax return preparation and filing and tax payments 5.1.9 Attachments to the tax return
5.1.8 Compliance requirements 5.1.10 Invoicing, and Accounting requirements
5.1.9 Tax implications of transactions applying the tax rules and regulations,
and sound tax planning strategies within legal and ethical bounds to
efficiently manage tax liabilities
 LEGEND: New Add Move Change Delete LEGEND: New Add Move Change Delete

5.2 Percentage tax 5.2 Percentage tax

5.2.1 Nature and characteristics of percentage tax 5.2.1 Tax base and tax rates
5.2.2 Persons subject to percentage tax 5.2.2 Venue and time of filing of tax returns
5.2.3 Transactions subject to and / or exempt from percentage tax 5.2.3 Venue and time of payment
5.2.4 Percentage tax due, and tax credits, if applicable 5.2.4 Modes of payment
5.2.5 Tax return preparation and filing and tax payments 5.2.5 Use of tax rates
5.2.6 Compliance requirements 5.2.6 Accomplishing of tax returns and
5.2.7 Tax implications of transactions applying the tax rules and regulations, forms
and sound tax planning strategies within legal and ethical bounds to
efficiently manage tax liabilities
5.3 Specific provisions of other special laws relating to business taxation
5.3.1 Senior Citizen’s Law (RA 7432)
5.3.2 Magna Carta for Disabled Persons (RA 7277)

6.0 Documentary Stamp Tax 6.0 EXCISE TAX

6.1 Nature and characteristics of documentary stamp tax 6.1 Describe, Analyze and Compute Excise Tax
6.2 Transactions subject to and / or exempt from documentary stamp tax 6.1.1 Concept
6.3 Tax base and tax due 6.1.2 Applicability
6.4 Tax return preparation and filing and tax payments 6.1.3 Classification of Excisable Materials andRates
6.5 Compliance requirements 6.1.4 Specific Tax
6.6 Tax implications of transactions applying the tax rules and regulations, and 6.1.5 Ad Valorem Tax
sound tax planning strategies within legal and ethical bounds to efficiently 6.1.6 Coverage
manage tax liabilities 6.1.7 Time of Payment

7.0 Excise Tax 7.0 DOCUMENTARY STAMP TAX

7.1 Nature and characteristics of excise tax 7.1 Describe, Analyze and Compute Stamp Tax (Limited to
7.2 Transactions subject to and / or exempt from excise tax Documentary of Stocks, Sales, Debt Shares of Sale)
7.3 Tax base and tax due Instruments and Deeds
7.4 Tax return preparation and filing and tax payments 7.1.1 Definition
7.5 Compliance requirements 7.1.2 Coverage and Exemptions
7.6 Tax implications of transactions applying the tax rules and regulations, and 7.1.3 Tax Base Rates
sound tax planning strategies within legal and ethical bounds to efficiently 7.1.4 Time and Manner of Payment
manage tax liabilities
 LEGEND: New Add Move Change Delete LEGEND: New Add Move Change Delete

8.0 Taxation Under the Local Government Code (Local Government Taxation and 8.0 TAXATION UNDER THE LOCAL GOVERNMENT CODE
Real Property Taxation under the Local Government Code) 8.1 Scope and different types of local taxes (Limited to Real Property Tax, Local
8.1 Fundamental principles, scope of taxing power of local government units Business Tax)
(LGUs) 8.2 Tax base and tax rates
8.2 Scope and different types of local taxes (limited to real property tax, local tax 8.3 Venue and time of filing of tax returns
imposed by provinces, municipalities and cities, and barangays) 8.4 Venue and time of payment
8.3 Tax base and tax rates
8.4 Venue and time of payment
8.5 Remedies available to the government and the taxpayer
8.6 Tax implications of transactions applying the tax rules and regulations, and
sound tax planning strategies within legal and ethical bounds to efficiently
manage tax liabilities

9.0 Preferential Taxation 9.0 PREFERENTIAL TAXATION

9.1 Special Economic Zone Act for purposes of determining tax liabilities and tax 9.1 Senior Citizens Law To 3.10.1
incentives 9.1.1 Exemption from income tax of qualified senior citizens To 5.3.1
9.1.1 Income tax (5% GIT, ITH incentives, regular income tax) 9.1.2 Tax incentives for qualified establishments selling goods and
9.1.2 Other tax incentives (VAT / OPT, excise tax, DST, local taxes) services to senior citizens
9.2 Bases Conversion and Development Act (BCDA) for purposes of determining 9.2 Magna Carta for Disabled Persons To 3.10.2
tax liabilities and tax incentives 9.2.1 Tax incentives for qualified establishments selling goods and To 5.3.2
9.2.1 Income tax (5% GIT, ITH incentives, regular income tax) services to disabled persons
9.2.2 Other tax incentives (VAT / OPT, excise tax, DST, local taxes) 9.3 Special Economic Zone Act
9.3 Omnibus Investments Code for purposes of determining tax liabilities and tax 9.3.1 Policy and the Philippine Economic Zone Authority (PEZA)
incentives 9.3.2 Registration of investments
9.3.1 Income tax (ITH incentives, regular income tax) 9.3.3 Fiscal incentives to PEZA-registered economic zone enterprises
9.3.2 Other tax incentives (VAT / OPT, excise tax, DST, local taxes) 9.4 Omnibus Investments Code (Book 1 of Executive Order 226)
9.4 Basic principles of tax treaty and specific provisions of Double Taxation 9.4.1 Policy and the Board of Investment (BOI)
Agreement (DTA) models (e.g. OECD Model Tax Convention, UN Model 9.4.2 Preferred areas of investment
Double Taxation Convention and United State Model Income Tax 9.4.3 Investments priority plan
Convention) in determining the tax implications of various income items of 9.4.4 Registration of investments
non-residents, such as: 9.4.5 Fiscal incentives to BOI registered enterprises
9.4.1 Royalties 9.5 Barangay Micro Business Enterprises (BMBEs) Act To 3.10.3
9.4.2 Dividends 9.5.1 Registration of BMBEs
9.4.3 Interests 9.5.2 Fiscal Incentives to BMBEs
9.4.4 Capital gains 9.6 Double Taxation Agreements (DTAs)
9.4.5 Business profits and other items 9.6.1 Nature and purpose of DTAs
9.5 Tax implications of transactions applying the tax rules and regulations, and 9.6.2 Manner of giving relief from double taxation
sound tax planning strategies within legal and ethical bounds to efficiently 9.6.3 Procedure for availment of tax treaty benefits
manage tax liabilities