This includes the proposed changes or revisions in the Philippine CPA Board exam by the Board of Accountancy to the Professional Regulatory Commission. It is expected to take effect by May 2016.

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

2. 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.

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.

4. Old Subjects
• Theory of Accounts
• Practical Accounting Problems 1
• Practical Accounting Problems 2
• Management Services
• Auditing Theory
• Auditing Problems
• Business Law and Taxation

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.

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

7. Revised Subjects
• Financial Accounting and Reporting
• Advanced Accounting
• Management Accounting and Control
• Auditing
• Taxation
• Regulatory Framework for Business Transactions

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

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

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

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

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*

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 outcomes-based approached
in education.

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 seven-subject 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.

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 refresher’s course, the examinee will now be
subjected to the new six-subject format.

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).