FINANCIAL ACCOUNTING AND REPORTING

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

1.0 Development of Financial Reporting Framework, Standard-Setting Bodies and Regulation of the Accountancy
Profession
1.1 History, Development and Functions of the Standard-Setting Bodies
1.2 Regulation and Environment of the Accounting Profession in the Philippines
1.2.1 The Professional Regulatory Board of Accountancy
1.2.2 The accredited professional organization of professional accountants in the Philippines
1.2.3 Sectors of the practice of accountancy profession and the accreditation requirements
2.0 Conceptual Framework, Accounting Process and Presentation of Financial Statements
2.1 The Conceptual Framework for Financial Reporting
2.2 The Accounting Process
2.3 Presentation of the Financial Statements
2.3.1 General features
2.3.2 Statement of Financial Position
2.3.3 Statement of Comprehensive Income
2.3.4 Statement of Changes in Equity
2.3.5 Statement of Cash Flows
2.3.6 Notes to the Financial Statements
2.3.7 Computation and Disclosures of Earnings Per Share Information – Basic & Diluted EPS

3.0 Cash and other Financial Assets

3.1 Cash
3.2 Other Financial Assets (initial recognition, basis for classification, subsequent measurement, reclassification, and
presentation in the financial statements)
3.2.1 Financial assets at fair value through profit or loss
3.2.2 Financial assets at fair value through other comprehensive income
3.2.3 Financial assets at amortized cost
3.2.4 Investment in associates and joint venture
4.0 Non-financial Assets
4.1 Inventories
4.1.1 Nature
4.1.2 Capitalizable cost at initial recognition
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
4.2.1 Nature
4.2.2 Capitalizable cost at initial recognition
4.2.3 Borrowing costs
4.2.4 Subsequent expenditures
4.2.5 Subsequent measurement – Cost method & Revaluation
4.2.6 Impairment
4.2.7 Retirement and disposals
4.3 Investment property
4.4 Intangible assets
4.5 Biological assets
4.6 Non-current assets held for sale (or disposal group)
4.7 Prepaid expenses and other assets
5.0 Financial Liabilities
5.1 Classification of financial liabilities
5.2 Initial recognition
5.3 Debt issue cost
5.4 Measurement
5.5 Troubled debt restructuring
6.0 Non-financial liabilities, provisions, and contingencies
6.1 Liabilities arising from customer loyalty programs
6.2 Warranties and product guarantees
6.3 Other provisions and contingencies
6.4 Unearned revenues arising from contracts, gift certificates, and subscriptions

7.0 Shareholders’ Equity

7.1 Share capital transactions
7.2 Retained earnings
7.3 Cumulative other comprehensive income
7.4 Computation of book value per share
8.0 Other Topics
8.1 Share-based payment transactions
8.2 Leases
8.3 Income Tax
8.4 Employee benefits
8.5 Interim Reporting
8.6 Operating segments
9.0 Other Reporting Frameworks
9.1 Applicability and salient differences from PFRS of the following reporting frameworks
9.1.1 PFRS for SMEs
9.1.2 PFRS for Small Entities
9.1.3 Reporting for microenterprises
ADVANCED FINANCIAL ACCOUNTING AND REPORTING
This subject covers the candidates’ knowledge of the concepts and principles in advanced financial accounting and reporting and the application of these
accounting concepts including techniques and methodology to problems likely to be encountered in practice. Candidates should know and understand
problems involving accounting of special transactions and their effects and presentation in the financial statements including among others: accounting for
partnerships, corporate liquidation, joint arrangements, revenue recognition, home office, branch and agency transactions, business combinations, separate
and consolidated financial statements, foreign currency transactions and translations, not for-profit organizations, including government and cost
accounting. Also, a working knowledge of the standards related to these special topics on insurance contracts, service concession arrangement and
derivatives are expected of the candidates. The candidates must also be able to communicate effectively matters pertaining to these 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 level 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 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 syllabus for the subject is presented below.
1.0 Partnership Accounting
1.1 Nature, scope, and objectives
1.2 Formation
1.3 Operation/Dissolution/changes in ownership interest
1.4 Liquidation of partnership

2.0 Corporate Liquidation

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

3.0 Joint Arrangements (PFRS 11)

3.1 Joint Operations (Differentiate from business combination)
3.2 Joint Venture (equity method) (Differentiate from business combination)

4.0 Revenue Recognition (PFRS 15)

4.1 Revenue from Contracts with Customers
4.1.1 Five-Steps Model Framework
4.1.2 Other Revenue Recognition Issues
4.1.2.1 Right of return 4.1.2.7 Non-refundable upfront fees
4.1.2.2 Licensing / Royalties 4.1.2.8 Gift Cards
4.1.2.3 Consignment arrangements 4.1.2.9 Long – term Construction Contracts
4.1.2.4 Principal-agent relationships 4.1.2.10 Franchise Operations – Franchisor’s point of view
4.1.2.5 Repurchase arrangements 4.1.2.11 Accounting for Consignment Sales
4.1.2.6 Bill-and-hold arrangements
4.1.3 Financial Statement Presentation

5.0 Accounting for Home Office, Branch and Agency Transactions

5.1 Transactions on the books of the home office and the branch 5.3 Preparation of individual and combined financial statements
5.2 Reconciliation of reciprocal accounts 5.4 Accounting for agency transactions

6.0 Business Combination (PFRS 3)

6.1 Nature, scope, and characteristics
6.2 Statutory Merger and Consolidation/Acquisition of assets and liabilities (acquisition method)
6.3 Financial Statement Presentation

7.0 Separate Financial Statements (PAS 27)

7.1 Accounting for Investment in Subsidiaries, Associates and Joint Ventures
7.2 Accounting for dividends and related disclosure requirements
8.0 Consolidated Financial Statements (PFRS 10)
8.1 Consolidation procedures

9.0 Derivatives and Hedging Accounting (PFRS 9)

9.1 Accounting for Derivatives
9.2 Hedging Activities: Hedging Foreign Currency Exposures

10.0 Translation of Foreign Currency Financial Statements (PAS 21/ PAS 29)
10.1 Translation from the Functional Currency into the Presentation Currency (Closing/ Current Rate Method)
10.2 Translation into the Functional Currency (Remeasurement from a Foreign Currency Financial Statements to the Functional Currency)
10.3 Restatement of Financial Statements (Functional Currency of a Hyperinflationary Economy)

11.0 Not-for-Profit Organizations

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

12.0 Government Accounting – General Fund

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

13.0 Cost Accounting

13.1 System of Cost Accumulation or Costing System (Comparison between Actual Costing, Normal Costing and Standard Costing)
13.2 Job-order Costing System
13.3 Process Costing System
13.4 Backflush Costing System (JIT System)
13.5 Activity-Based Costing System (ABC System)
13.6 Accounting for Joint and By-Products
13.7 Service Cost Allocation

14.0 Other Special Topics (Basic Knowledge)

14.1 Accounting for insurance contracts by insurers (PFRS 17)
14.2 Service Concession Arrangement – Accounting for Build, Operate & Transfer (PFRIC 12)

MANAGEMENT SERVICES
The subject covers the candidates’ knowledge of the concepts, techniques, and methodology applicable to management accounting
and financial management. Candidates should know and understand the role of information in accounting, finance, and economics and
in the management processes of planning, controlling and decision-making. The candidates must have a working knowledge to comply
with the various management accounting and finance management activities. The candidates must also be able to communicate
effectively matters pertaining to the management accounting and financial management. 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 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 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
syllabus for the subject is presented below.

1.0 Management Accounting

1.1 Objectives, role, and scope of management accounting
1.1.1 Basic management functions and concepts
1.1.2 Distinction among management accounting, cost accounting and financial accounting
1.1.3 Roles and activities of controller and treasurer
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
1.2.1 Cost terms, concepts, and behavior
1.2.1.1 Nature and classification of costs
1.2.1.2 Analysis of cost behavior (variable, fixed, semi- variable/mixed, step-cost)
1.2.1.3 Splitting mixed cost (high-low, scatter graph, least-squares regressions)
1.2.1.4 Cost prediction techniques (correlation, regression analysis and learning curves)
1.2.2 Cost-volume profit (CVP) analysis
1.2.3 Standard costing and variance analysis
1.2.4 Variable vs. Absorption Costing
1.2.5 Financial planning and budgets
1.2.5.1 Definition and coverage of the budgeting process
1.2.5.2 Master budget and its components (operating and financial budgets)
1.2.5.3 Types of budgets (static, flexible, zero-based, continuous)
1.2.5.4 Budget variance analysis (static and flexible)
1.3 Management accounting concepts and techniques for performance measurement
1.3.1 Responsibility accounting and transfer pricing
1.3.1.1 Concepts of decentralization, segment reporting, goal congruence and motivation
1.3.1.2 Controllable and non-controllable costs, direct and common costs
1.3.1.3 Type of responsibility centers (cost, revenue, profit, and investment centers)
1.3.1.4 Preparation of segmented income statement
1.3.1.5 Performance margin (manager vs. segment performance)
1.3.1.6 Return on investment (ROI), residual income and economic value added (EVA)
1.3.1.7 Rational and need for transfer price
1.3.1.8 Transfer pricing schemes
1.3.2 Balanced scorecard
1.4 Management Accounting Concepts and Techniques for Decision Making
1.4.1 Relevant costing and differential analysis
1.4.1.1 Definition and identification of relevant costs
1.4.1.2 Concept of opportunity costs
1.4.1.3 Approaches in analyzing alternatives in non-routing decisions (total and differential)
1.4.1.4 Types of decisions (incremental analysis, best product combination, pricing decisions)
1.4.1.5 Probability analysis (expected value concept)
1.4.1.6 Decision tree diagram
1.4.1.7 Linear programming (graphic method; algebraic method)

2.0 Financial Management

2.1 Objectives 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 decisions
2.2 Financial Management Concepts and Techniques for Planning, Control & Decision Making
2.2.1 Financial statement analysis
2.2.1.1 Vertical analysis (common-size financial statements)
2.2.1.2 Horizontal analysis (trend percentages and index analysis)
2.2.1.3 Cash flow analysis (interpretation of cash flows including free cash flow concept)
2.2.1.4 Gross profit variance analysis (price, cost, and volume factors)
2.2.1.5 Financial ratios
2.2.1.6 Financial forecasting using additional funds needed (AFN)
2.2.2 Working capital management
2.2.3 Capital budgeting
2.2.3.1 Capital investment decision factors
2.2.3.2 Non-discounted capital budgeting techniques
2.2.3.3 Discounted capital budgeting techniques
2.2.3.4 Project screening, project ranking and capital rationing
2.2.3.5 Sensitivity analysis
2.2.4 Risks and leverage
2.2.5 Capital structure and long-term financing decision
2.2.6 Financial markets – Money markets & Capital market

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

THEORY ON AUDITING AND ATTESTATION SERVICES

This part covers the candidates’ conceptual knowledge and understanding of auditing and attestation services performed by professional accountants.
Candidates should know and understand auditing and attestation services, with emphasis to: independent audits of financial statements or against related
standards, assertions or applicable criteria; professional, ethical, quality management and governance responsibilities; the use of risk-based audit process
in planning, responding to risks and reporting thereon. 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.

AUDITING PRACTICE
This part covers the candidate’s proficiency in applying risk-based audit and quality management standards, techniques, and procedures to a typical
independent audit of a medium-sized service, trading or manufacturing concern, that use either a manual or automated business process, or a
combination of both. Candidates shall be able to assess risk, develop a plan and perform an audit, analyze data for possible errors and irregularities or
nonconformance to standards, assertions or criteria, perform root cause analysis, perform other procedures, obtain evidence and formulate adjusting
entries, prepare audit working papers, communicate results of audit, prepare audit reports, and complete the audit. 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 competencies cited above. Entry level professional accountants should be able to address
the fundamental requirements of the various parties that the candidates will be interacting professionally in the future. The candidates must also be able to
communicate effectively such matters pertaining to the audit work. 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 syllabus for the subject is presented below.

1.0 Theory on Auditing and Attestation Services

1.1 Fundamentals of Auditing and Assurance Services
1.1.1 Nature, objective, and elements
1.1.2 Types of assurance engagements (audits, reviews, other assurance engagements)
1.1.3 Types of audit
1.1.3.1.1 According to nature of assertion/data (financial statements audit, operational audit, and compliance audit)
1.1.3.1.2 According to types of auditor (external independent financial statements audit, internal audit, and government
audit)
1.2 The Risk-based Financial Statement Audit – Client Acceptance, Audit Planning, Supervision and Monitoring
1.2.1 Overview of the risk-based audit process
1.2.2 Pre-engagement procedures
1.2.3 Scope and purposes of audit planning
1.2.4 Direction, supervision, and review
1.3 Understanding the Entity and its Environment including its Internal Control and Assessing the Risks of Material Misstatement
1.3.1 Industry, regulatory and other external factors, including the applicable financial reporting framework
1.3.1.1 Nature of the entity
1.3.1.2 Objectives and strategies and related business risks
1.3.1.3 Measurement and review of the entity’s financial performance
1.3.2 Internal Control
1.3.3 Assessing the risks of material misstatement
1.3.3.1 Fraud and errors
1.3.3.2 Risk assessment procedures
1.3.3.3 Discussion among the engagement team
1.3.3.4 Significant risks that require special audit consideration
1.3.3.5 Risks for which substantive procedures alone do not provide sufficient appropriate audit evidence
1.3.3.6 Revision of risk assessment
1.3.4 Communicating with those charged with governance and management
1.4 Audit Objectives, Procedures, Evidences and Documentation
1.4.1 Nature and significance
1.4.2 Evidential matters
1.4.3 Audit procedures/techniques, including audit selection
1.4.4 Audit working papers
1.5 Completing the Audit/Post-Audit Responsibilities
1.6 Reports on Audited Financial Statements
1.7 Auditing in a Computerized Information Systems (CIS) Environment
1.7.1 Internal control in a CIS environment
1.7.2 Basic approach to the audit of CIS environment
1.7.3 Auditing new technologies
1.8 Attestation Services
1.8.1 Procedures and reports on special purpose audit engagements
1.8.1.1 General considerations
1.8.1.2 Audit of financial statements prepared in accordance with comprehensive basis of accounting other than GAAP
1.8.1.3 Audit of a component of financial statements
1.8.1.4 Reports on compliance with contractual agreements
1.8.1.5 Reports on summarized financial statements
1.8.2 Attestation and related services
1.8.2.1 Examination of prospective financial information
1.8.2.2 Engagements to review financial statements
1.8.2.3 Engagements to perform agreed-upon procedures regarding financial information
1.8.2.4 Engagements to prepare or compile financial information
1.8.2.5 Service organization controls and the service auditor’s report
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)
2.0 Auditing Practice
2.1 Governance, Ethics and Quality Management
2.1.1 Corporate governance
2.1.2 Ethical standards and responsibilities of professional accountants
2.1.3 System of quality management
2.1.4 Regulatory requirements related to the practice, accreditation and regulation of public accounting and auditing services
2.2 Planning the Audit and Performing Risk Assessment Procedures
2.2.1 Risk-based audit – overview
2.2.2 Risk assessment – overview
2.2.3 Preliminary activities – Engagement acceptance and continuance
2.2.4 Planning the audit
2.2.5 Performing risk assessment procedures – entity wide and business process level
2.3 Risks Response
2.4 Audit Communication and Reporting
2.4.1 Reporting –overview
2.4.2 Evaluating audit evidence
2.4.3 Communicating results
2.4.4 Preparing the audit report
2.4.5 Monitoring and closing the engagement

REGULATORY FRAMEWORK for BUSINESS TRANSACTIONS

This subject covers the candidates’ knowledge of the regulatory framework governing business transactions and business
organizations/associations, and of business laws including their legal implications. Candidates should know and understand the pertinent
legal provisions, general principles, concepts, and underlying philosophy of the laws applicable to commerce and business. The
candidates must have sufficient knowledge to 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 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 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 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 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 in the examination, unless there is an
advisory from the Board of Accountancy to the contrary. The examination shall have one hundred (100) multiple choice questions. The
syllabus for the subject is presented below.

1.0 Law on Business Transactions

1.1 Obligations
1.1.1 Sources of obligations and their concepts
1.1.2 Kinds of Obligations
1.1.3 Specific circumstances affecting obligations in general
1.1.4 Nature and Effects of Obligations
1.1.5 Extinguishment of obligation with special emphasis on
1.2 Contracts
1.2.1 Essential requisites
1.2.2 Forms of contracts
 1.2.3 Reformation of instruments/contracts
1.2.4 Interpretation of contracts
1.2.5 Defective contracts
1.3 Sales
1.3.1 Nature, forms, and requisites
1.3.2 Earnest money as distinguished from option money
1.3.3 Rights/obligations of vendor and vendee
1.3.4 Warranties
1.3.5 Installment sales
1.3.6 Extinguishment of a contract of sale
1.3.7 Legal Redemption
1.4 Credit Transactions
1.4.1 Pledge, Real Mortgage and Chattel Mortgage
1.4.2 Requirements to bind the parties and third persons
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

2.1 Requisites to be liable under BP 22 2.2 Comparison with Estafa (Art. 315 {2] (d)

3.0 Consumer Protection

3.1 Consumer Product Quality and Safety 3.4 Labelling and Packaging
3.2 Deceptive Sales Acts and Practices 3.5 Consumer Rights
3.3 Product Service and Warranty

4.0 Financial Rehabilitation and Insolvency

4.1 Suspension of payments 4.2 Rehabilitation 4.3 Liquidation

5.0 Philippine Competition Act

5.0 Prohibited acts 5.1 Covered transactions

6.0 Government Procurement Law

6.1 General principles 6.4 Procurement procedures
6.2 Scope and application 6.5 Disclosure of relations
6.3 Definition of terms 6.6 Alternative methods of procurement

7.0 Law on Business Organizations

7.1 Partnerships
7.1.1 Nature and as distinguished from corporation 7.1.4 Kinds of partnerships 7.1. 7Formalities
required
7.1.2 Rules of management 7.1. 5 Obligations of partners 7.1.8 Rights of a partner
7.1.3 Sharing of profits and losses 7.1.6 Dissolution and winding up 7.1. 9Limited Partnership
7.2 Corporations
7.2.1 Classes of corporations 7.2.9 Capital affairs
7.2.2 Nationality of corporations 7.2.10 Dissolution and liquidation
7.2.3 Corporate juridical personality 7.2.11 Other corporations
7.2.4 Capital structure 7.2.12 Merger and consolidation
7.2.5 Incorporation and organization 7.2.13 Corporate Governance
7.2.6 Corporate powers 7.2.14 Securities
7.2.7 Stockholders and members 7.2.15 Securities Regulation Code (SRC) Rule 68
7.2.8 Board of directors and trustees 7.2.16 SEC Issuances
7.3 Insurance
7.4 Cooperatives

8.0 Law on Other Business Transactions

8.1 PDIC Law 8.4 Secrecy of Bank Deposits 8.7 Truth in Lending Act
8.2 AMLA Law 8.5 Intellectual Property Law 8.8 Data Privacy Act
8.3 Electronic Commerce Act 8.6 Ease of Doing Business 8.9 Labor Law
TAXATION
This subject covers the candidates’ knowledge of the principles and concepts of taxation and the practical application of these principles and concepts.
Candidates are expected to know the provisions of the National Internal Revenue Code (NIRC) as amended, BIR Issuances (such as but not limited to
Revenue Regulations, Revenue Memorandum Circulars, Revenue Rulings) on income tax, business taxes (value-added and percentage taxes), estate tax,
donor’s tax, excise tax, and documentary stamp tax, organization and functions of the Bureau of Internal Revenue (BIR), tax remedies, compliance
requirements, and statutory offenses and penalties; Local Government Code on local taxation; and preferential tax or tax exemption provisions and taxes
pertaining to senior citizens and persons with disability, Board of Investments, Philippine Economic Zone Authority (PEZA), Bases Conversion Development
Act (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 measures. Compliance includes, among others,
computation of tax liabilities, accomplishing tax returns and forms, availment of tax incentive benefits, submission of tax related regulatory and registration
requirements and dealing with the various offices involved in taxation. 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 basic tax planning to derive the benefits of the tax laws and incentives.
The candidates must also be able to communicate effectively matters pertaining to the taxation 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 that the candidates will
be interacting professionally in the future. New laws, implementing rules and regulations, jurisprudences, 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. Graduated tax rates, excise tax rates, documentary stamp tax rates, local business tax rates, and real property tax
rates (including assessment levels of real properties) shall be provided in the examination when candidates are required to compute taxes. The examination
shall have seventy (70) multiple choice questions. The syllabus for the subject is presented below.

1.0 Principles of Taxation

1.1 Nature, scope, classification, and essential characteristics 1.5 Double taxation
1.2 Principles of taxation 1.6 Legislation of tax laws
1.3 Tax evasion vs. tax avoidance 1.7 Impact of taxes in nation building
1.4 Situs/place of taxation 1.8 Ethical tax compliance and administration
1.9 Organization and functions of the BIR, Local Government Tax Collecting Units, BOI, PEZA and the Bases Conversion and Development
Authority

2.0 Tax Remedies

2.1 Tax remedies of the government 2.2 Remedies of the taxpayer

3.0 Income Taxation

3.1 The taxpayer and tax base
3.2 Gross income
 3.3 Deductions from gross income
3.4 Accounting periods
3.5 Accounting methods
3.6 Tax due and determine tax credits, if applicable
3.7 Tax return preparation and filing and tax payments
3.8 Withholding taxes
3.9 Compliance requirements
3.10 Specific provisions of other special laws relating to income taxation
3.11 Differences between tax rules and accounting rules (e.g., PFRS or other frameworks)
3.12 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

4.0 Transfer Taxes

4.1 Estate tax
4.2 Donor’s tax

5.0 Business Taxes

5.1 Value-added tax
5.2 Percentage tax
5.3 Specific provisions of other special laws relating to business taxation – Senior Citizen’s Law & Magna Carta for Disabled Persons

6.0 Documentary Stamp Tax

6.1 Nature and characteristics of documentary stamp tax
6.2 Transactions subject to and/or exempt from documentary stamp tax
6.3 Tax base and tax due
6.4 Tax return preparation and filing and tax payments
6.5 Compliance requirements
6.6 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

7.0 Excise Tax

7.1 Nature and characteristics of excise tax
7.2 Transactions subject to and/or exempt from excise tax
7.3 Tax base and tax due
7.4 Tax return preparation and filing and tax payments
7.5 Compliance requirements
7.6 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

8.0 Taxation Under the Local Government Code (Local Government Taxation and Real Property Taxation under the Local Government
Code)
8.1 Fundamental principles, scope of taxing power of local government units (LGUs)
8.2 Scope and different types of local taxes (limited to real property tax, local tax imposed by provinces, municipalities and cities, and
barangays)
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

9.1 Special Economic Zone Act for purposes of determining tax liabilities and tax incentives
9.2 Bases Conversion and Development Act (BCDA) for purposes of determining tax liabilities and tax incentives
9.3 Omnibus Investments Code for purposes of determining tax liabilities and tax incentives
9.4 Basic principles of tax treaty and specific provisions of Double Taxation Agreement (DTA) models (e.g. OECD Model Tax Convention,
UN Model Double Taxation Convention and United States Model Income Tax Convention) in determining the tax implications of various
income items of non-residents, such as:
9.5 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.