Mutual Recognition Arrangement for
Accountancy Services
Background and what CPAs should do to
Prepare for this
3A series release 1
December 2015
BoA Chairman Joel L. Tan-Torres
Accountancy Profession Profile
- Over 170,000 CPAs registered
- Over 520 accounting schools
- Over 132,000 enrolees to BSA each year
- Over 11,000 accountancy graduates each year
- Over
20,000 CPA examinees each year
July
batch: 289
October batch: 258
- About 7,000 CPA passers each year
- Over 5,800 CPAs in public practice
- Board of Accountancy is the regulator, educator, licensor, rule
maker, etc. all rolled into one
NCR: 46.1%
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Administers 3 Licensure examinations every year
Accredits CPAs in public practice and in education
Conducts inspections of schools & businesses establishments
Issues AAS & PFRS
Administers CPD Program
Accountancy Profession Profile
Functions of Board of Accountancy (continued):
• Issues STPs for foreign accountants to work in the
Philippines
July batch: 289
October batch: 258
• Oversees the investigation of erring accountants
• Oversees the APO and the 4 sectoral organizations
• Reviews the Accountancy Program with CHED
• Conducts the search for the most outstanding CPA and
NCR: 46.1%
APO
• Implements the ASEAN MRA for Accountancy Services
• Provides oversight over government accounting matters
• Attends to PRC matters
• Attends to international accounting activities
Background on the ASEAN Mutual
Recognition Arrangement (MRA) on
Accountancy Services
OBJECTIVES OF MRA
1. Facilitates mobility of accountants within ASEAN
2. Enhances exchange of information or networking
3. Promotes adoption of best practices on standards
and qualifications
4. Provides opportunities for capacity building and
training
Major events on the MRA
 Signing of the General Agreement on
Trade in Services in 1994
 Signing of the ASEAN Framework Agreement
on Services in 1995
 Convening of the ASEAN Coordinating
Committee on Services (to date has
concluded 82 meetings)
Time line of the MRA on Accountancy services
 2009 start of discussions
 Bi-annual meetings thereafter
 17th meeting of the Accountancy
Experts Group on May 2015 in
Cambodia
 Signing of the MRA by the 10 countries
last November 2014
 1st meeting of ASEAN CPA Coordinating
Committee last September 2015
Key Features of MRA on Accountancy services
 Follows template of 5 MRAs that have
earlier been approved and implemented
 Has undergone extensive discussion by the
Experts Group coming from the ten
ASEAN countries
 MRA has provisions to safeguard the interest
of the local practice
Basic Features of MRA on Accountancy services
 Objectives and Definition of Terms
 Scope (with limitation on independent auditor and
collaboration requirement)
 Qualifications and eligibility (first phase)
 Evaluation and assessment (second phase)
 Permit to practice in host country (third phase)
 Monitoring of practice (Last phase)
Basic Features of MRA on Accountancy services
 Provides for registration as ASEAN Accountant
(ACPA) in the ASEAN Accountant Register
 Various bodies involved in implementation:
 National accountancy body (PICPA)
 Professional Regulatory Authority (BoA)
 Monitoring Committee
 ASEAN Chartered Accountant Coordinating
Committee (ACPACC)
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Safeguards to protect the local public practice
 Limits practice to collaboration
 Does not allow public practice
 Does not allow practice in the form of partnership
or corporate form
 Requires similar competency, assessment, minimum
work experience, continuing professional
development requirements for foreign accountant
 Requires the issuance of STP
Moving forward
 Setting up Monitoring Committee, Secretariat
and Technical Working Group
 Finalization of Assessment Statement (AS)
 Conduct of awareness and information campaign to
have country CPAs to register for ASEAN CPAs (ACPA)
and registered Foreign Professional Accountant(RFPA)
 Training and development to prepare Filipino CPAs for
foreign accountants entry to the Philippines and
Filipino CPAs to ASEAN countries
ASEAN MRA
Development Roadmap Milestones
2016 Q4
2017 Q1
2017 Q4
2017 Q2
2017 Q3
2019 Q3
AAS approval by ACPACC
ACPA Application and Assessment
ACPACC Approval of ACPA applications
ACPA Register (National Country Level)
ACPA Register (ASEAN level)
RFPA registration
Food for thought
 Era of protectionism is over…liberalization is the
name of the game
 Filipino accountants have a comparative advantage
over their ASEAN neighbors
 However, Filipino accountants should be ready to
take advantage of opportunities and address the
threats
Food for thought
 Be aware…be informed…be prepared….MOVE
 BoA will provide leadership in efforts
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Information Campaign—social network, 3A series
Streamlining regulatory framework—Accountancy Curriculum, Licensure
Examination, CPD, QAR, Accreditation, Standards, Regulatory mechanisms
and structure
Emphasis on quality, governance, ethics, effective regulation
 PICPA and sectoral organizations should be pro-active
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Conduct CPD sessions on MRA, quality, governance, ethics, regulatory
Adopt KPIs for chapters to benchmark
Food for thought
 ALL ACCOUNTANTS SHOULD DO THEIR SHARE
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Have the initiative to know what are the developments in the
profession
Be involved in PICPA and sectoral organization initiatives
If sole practitioner, explore consolidation/merger opportunities
Be aware of local and ASEAN opportunities in various sectors
Grab these opportunities
Be aware of local and ASEAN threats in various sectors
Individually, as a sector, and as a profession, work hand and hand to
handle the threats and benefit from the opportunities