Proposed Revisions in the Philippine CPA Exams

1. Proposed Revisions in the Philippine CPA Examinations Prepared by Ferdinand C.

Importado CPA, MBA Based on the Meet the Examiners August 20, 2015 University
Theater, University of the East, Manila

Contents
Background or rationale for the revision.
Old subjects (seven subjects).
Highlights of the revisions. Conceptual representation of the revisions. Proposed
revised subjects (six subjects). Suggested subject clustering. Observations on the
proposed revisions. Issues on the proposed revisions. Next steps for the Board of
Accountancy.
1. 3. Background The Philippine CPA Licensure Examination (PCPALE) has not been
changed over the past 40 years. On June 20, 2015, The Board of Accountancy (BOA)
proposed to the Professional Regulatory Commission (PRC) the revision of the PCPALE.
Section 15 of Republic Act 9298 (The Accountancy Law) allows amendments the
PCPALE by the BOA subject to the approval of the PRC. Effective May 2016.
2. 4. Old Subjects Theory of Accounts Practical Accounting Problems 1 Practical
Accounting Problems 2 Management Services Auditing Theory Auditing Problems
Business Law and Taxation
3. 5. Revisions Reduction of the subjects from 7 to 6 subjects. Merging auditing theory
and practice. Merging accounting theory and practice. Distributing Theory of
Accounts (TOA), Practical Accounting Problems 1 and 2 (Prac. 1 & 2) between Financial
Accounting and Reporting (FAR) and Advanced Accounting. Segregating Business Law
and Taxation (BLT) into Taxation and Regulatory Framework for Business Transactions.
Renaming Management Services (MS) to Management Accounting and Control.
4. 6. Conceptual Revisions Theory of accounts Practical Accounting Problems 1 Practical
Accounting Problems 2 Management Services Auditing Theory Auditing Problems
Business Law and Taxation Financial Accounting and Reporting Advanced Accounting
Management Accounting and Control Auditing Taxation Regulatory Framework for
Business Transactions
5. 7. Revised Subjects Financial Accounting and Reporting Advanced Accounting
Management Accounting and Control Auditing Taxation Regulatory Framework for
Business Transactions

6. 8. Suggested Subject Clustering Financial Accounting and Reporting Financial

Accounting Part I Accounting for assets Financial Accounting Part II
Accounting for liabilities and equity Financial Accounting Part III Financial
statements and other special topics
7. 9. Suggested Subject Clustering Advanced Accounting Advanced Financial
Accounting Part I Accounting for partnerships, corporations and revenue
recognition Advanced Financial Accounting Part II Accounting for agency, head
office and business combinations Advances Financial Accounting Part III
government accounting and other specialized industries
8. 10. Suggested Subject Clustering Management Accounting and Control
Management Accounting Part I and II Management Advisory Services Cost
Accounting Part I Job order costing Cost Accounting Part II Process costing
9. 11. Suggested Subject Clustering Auditing Auditing, assurance and attestation
(auditing theory) Auditing practice (auditing problem) Taxation Taxation I
Income taxation Taxation II Business and Transfer taxes
10. 12. Suggested Subject Clustering Regulatory Framework for Business
Transactions Law on obligations and contracts Law on partnerships and
corporations Negotiable instruments law Sales, agency and bailments Pertinent
provisions of SEC, BSP, COA, Insurance Commission, BOA*
11. 13. Observations on the Revisions 100% mapping (matching) All subjects
currently prescribed under the BSA Program will be covered by the new six
subjects. The previous seven subjects were just reclassified into the new six
subjects representing a rationalized and integrated version of the old for a better
linkage between theory and practice. This is in conformity with the new outcomesbased approached in education.
12. 14. Issues on the Revisions Who are conditional examinees? The Board of
Accountancy will issue clarificatory statements before October 2015. Re-take of
conditional examinees examinees who became conditional before May 2016 has 2
years (4 exams) to pass the exam using the old format (seven subjects). E.G.
Conditional on October 2015 has until October 2017 for completion using the sevensubject format. If the examinee fails to complete the conditioned subjects within
the time allotted, the examinee shall take the six-format subject on the next take of
the exam.
13. 15. Issues on the Revisions If the examinee fails to complete the conditioned
subjects within the time allotted, the examinee shall take the six-format subject on
the next take of the exam. E.G. Examinee was conditioned last May 2015. The
examinee has until May 2017 to complete the exam. If it turns out the examinee fails
on May 2017 upon taking the necessary refreshers course, the examinee will now be
subjected to the new six-subject format.

14. 16. Next Steps for BOA Prepare the PRC resolution for the revision. Finalize the
syllabus and Table of Specifications (TOS). Coordinate with the appropriate offices
in the PRC to implements the changes. Prepare testbank for the six subjects.
Address transitory requirements (existing testbank, conditioned exminees and
others). Conduct public awareness (CHED, Accounting schools and students,
JPIA, PICPA, review centers and others).