BCA 001 –Accounting Plus

Chapter 2:
The Profession and Accounting Framework
(Part 1)
Chapter 2:
The Profession and Accounting Framework (Part 1)

Learning Objectives:

 L0 1- Know and appreciate the accountancy

profession.

 LO 2-Identify and understand important provisions

contained in R.A. 9298.

2
 Chapter 2:
The Profession and Accounting Framework (Part 2)

Learning Objectives:
 L0 3- To know the nature of the Conceptual
Framework and understand its purpose.

 LO4- Identify the qualitative characteristics of

accounting information.
 LO 5- To identify the elements directly related to the
measurement of financial position and financial
performance.
3
 Review
Chapter 1 :Accounting and Its Environment (Part 2)
L0 1 Know and appreciate the accountancy profession

Accountancy Profession
Role of the Accountancy Profession
promotes, develops and supports accountants worldwide.

protects the quality and integrity of accountants in their

application of standards.

Accountancy needs to be a profession, which means that by

“good accountants,” it means individuals who are not only
competent, but who behave ethically.

5
L0 1

Accountancy Profession
Characteristics of the Profession
1. It has a standard of education.
It provides a broad range of specific skills, knowledge and
expertise within the various aspects of accounting services that
is achieved though formal education.
2. Admission to the profession is controlled.
The profession is legally recognized thru a licensure
examination and is mandated by a recognized accountancy
body (BOA) that ensures that they are subject to the
disciplinary powers of that body. 6
L0 1

Accountancy Profession
3. Compliant with ethical values required by the Code of Ethics
and Accountancy Law.
A number of values need to be held by a professional
accountant, including integrity, accountability, reliability, ethics,
moral reasoning, honesty, trustworthiness and confidentiality.
4. Commitment to on-going professional development
These developments will continue to broaden their professional skills,
obtain further qualifications within the industry, or any other
professional achievements. It is crucial that professional accountants
are committed to improve their skills on a continuous basis.
CPD can be achieved thru formal learning, informal learning, self-directed
7
learning, online learning activities and professional work experience.
 L0 2 Identify and understand important provisions contained in R.A. 9298.

LAW Republic Act No. 9298

Article I., Section 1: SHORT TITLE

a

This Act shall be known as the

“The Philippine Accountancy Act of 2004”
An Act Regulating the Practice of Accountancy
in the Philippines, Repealing for the purpose
P.D. No. 692, otherwise known as the revised
accountancy law, appropriating funds therefor
and for other purposes. 8
 L0 3 Identify and understand important provisions contained in R.A. 9298.

LAW Republic Act No. 9298

Article I., Section 3: OBJECTIVES

This Act shall provide and govern:

• The standardization and regulation of accounting education.
• The examination of registration of certified public accountants;
and
• The supervision, control, and regulation of the practice of
accountancy in the Philippines.

9
 L0 3

LAW Republic Act No. 9298

Article I., Section 4: SCOPE OF PRACTICE

The practice of accountancy shall include, but not limited to the following (a-d):

(a). Public Practice -shall constitute a person, be it his/her

individual capacity, or as a staff member in an accounting or
auditing firm, holding out himself/herself as one skilled in the
knowledge, science and practice of accounting, and as a qualified
person to render professional services as a certified public
accountant, or offering or rendering, or both, to more than one client
on a fee basis.
10
 L0 3

LAW Republic Act No. 9298

Article I., Section 4: SCOPE OF PRACTICE

(b). Practice in Commerce and (c) Practice in Education/Academe -
Industry - shall constitute in a shall constitute in a person in an
person involved in decision making educational institution which involve
requiring professional knowledge in teaching of accounting, auditing,
the science of accounting, or when management advisory services, fiancé,
such employment or position business law, taxation and other
requires that the holder thereof must technically related subjects.
be a certified public accountant.

11
 L0 3

LAW Republic Act No. 9298

Article 1., Section 4: SCOPE OF PRACTICE

(d) Practice in Government - shall constitute in a person who holds,
or is appointed to, a position in an accounting professional group in
government or in an government-owned and/or controlled
corporation, including those performing proprietary functions, where
decision making requires professional knowledge in the science of
accounting, or where a civil service eligibility as a certified public
accountant is a prerequisite.

12
 L0 3

LAW Republic Act No. 9298

Article II., Section 5:THE PROFESSIONAL REGULATORY
BOARD OF ACCOUNTANCY (BOA) AND ITS COMPOSITION
The professional regulatory Board of Accountancy shall be composed:
1 Chairman
six (6) members to be appointed by the President of the Philippines
from a list of three (3) recommendees for each position and ranked
by the Commission from a list of five (5) nominees for each position
submitted by the accredited national professional organization of
certified public accountant.

The board shall elect a vice-chairman from among its members for a term
of one (1) year meetings of the board and in the event of a vacancy in the 13
office of the chairman.
 L0 2

LAW Republic Act No. 9298

Article II., Section 6: QUALIFICATION OF MEMBERS
OF THE PROFESSIONAL REGULATORY BOARD
A member at the time or his/ her appointment possess the following qualifications:
Must be a natural-born citizen and a resident of the Philippines;
Must be a duly registered Certified Public Accountant with at least ten
(10) years of work experience in any scope of practice of accountancy;
Must be a good moral character and must not have been convicted of
crimes involving moral turpitude; and
Must not have any pecuniary interest, directly or indirectly, in any school,
college or university.
 L0 2

LAW Republic Act No. 9298

Article III., Section 14: QUALIFICATIONS OF

APPLICANTS FOR EXAMINATIONS
Is a Filipino citizen
Is of good moral character
Is a holder of degree of Bachelor of Science in Accountancy
(BSA)
Has not been convicted of any criminal offence involving moral
turpitude.
15
 L0 2

LAW Republic Act No. 9298

Article III., Section 15: SCOPE OF EXAMINATION

Per Standard Per Revised (June 20, 2015)
1. Theory of Accounts 1. Financial Accounting &
Reporting (FAR)
2. Practical Accounting Problems I
2. Advance Financial Accounting
3. Practical Accounting Problems II & Reporting (FAR)
4. Management Services 3. Management Advisory Services
5. Auditing Theory 4. Auditing
5. Taxation
6. Auditing Problems
6. Regulatory Framework for
7. Business Law and Taxation 16
Business Transactions
 L0 2

LAW Republic Act No. 9298

Article III., Section 16: RATING IN THE LICENSURE

EXAMINATION
To be qualified as having passed the licensure examination;
a candidate must obtain a general average of seventy five percent
(75%), with no grade lower than sixty-five percent (65%) in any given
subject.

in the event a candidate obtains the rating of seventy-five percent

(75%) and above in at least a majority of subjects as provided for in
this Act, he/she shall receive a conditional credit for the subjects
passed:
17
 L0 2

LAW Republic Act No. 9298

Article III., Section 16: RATING IN THE LICENSURE

EXAMINATION
Provided, That a candidate shall take an examination in the
remaining subjects within two (2) years from preceding
examination:
Provided, further, that if the candidate fails to obtain at least a
general average of seventy-five percent (75%) and a rating of at
least sixty-five percent (65%) in each of the subjects reexamined,
he/she shall be considered as failed in the entire examination.
18
 L0 2

LAW Republic Act No. 9298

Article III., Section 16: RATING IN THE LICENSURE
EXAMINATION
Summary:
General YES YES NO NO
Average > 75%
No Grades YES No but majority of YES NO
Lower than 65% subjects is > 75%
RESULTS PASSED CONDITIONAL FAILED FAILED

19
 L0 2

LAW Republic Act No. 9298

Article III., Section 18: FAILING CANDIDATES TO

TAKE REFRESHER COURSE
Any candidate who fails in two (2) complete Certified Public Accountant
Board Examinations shall be disqualified from taking another set of
examinations unless he/she submit evidence to the satisfaction of the Board
that he/she enrolled in and completed at least twenty-four (24) units of
subject given in the licensure examination.
For purposes of this Act, the examination in which the candidate was
conditioned together with the removal examination on the subject in which
he/she failed shall be counted as one compete examination.
20
“
“It does not matter how
slowly you go as long as you
do not stop” -Anonymous

21
Thank you and God bless!
Next Topic

 L0 3- To know the nature of the Conceptual

Framework and understand its purpose.

 LO4- Identify the qualitative characteristics of

accounting information.
 LO 5- To identify the elements directly related to the
measurement of financial position and financial
performance. 23
References:

Textbook:
Basic Accounting, Made Easy, Ballada, (2018, 2019, 2020) Sampaloc, Manila
Websites:

▪ Republic Act No. 9298 | Official Gazette of the Republic of the Philippines

24
For questions and
concerns
[email protected]

https://www.facebook.com/ascelllow

25