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Sunday, February 22, 2015

Reviewer in Inventories by PRTC (2011 Edition)

The accounting principles and concepts in the accounting for inventories are covered by the Philippine Accounting Standards (PAS) 2 Inventories. The main focus of the Standard is to require entities to measure their inventories at the lower of cost or net realizable value (NRV). Once again, the accounting concept of conservatism is emphasized here.

Furthermore, the Standard also provides rulings as to the initial measurement (which should be at cost) and the subsequent measurement of inventories. There are various acceptable methods of determining cost and these includes Specific Identification, First-in First-Out (FIFO) and the Weighted Average Cost.

If you want to access the detailed content of IAS 2, you can visit the official website of the IFRS foundation through . On the other hand, if you are the type of person who hates detailed content and wants to access directly the main points provided by this Standard, you can browse which is updated regularly by Deloitte Global Services Limited which is a member of Deloitte Touche Tohmatsu Limited.

Anyway, provided in the link below is a scanned copy of the review material used during our CPA Review Sessions. The material is outlined as follows:

1. TOA.1205 Lecture Notes - which provides summarized content of the PAS 2 Inventories.
2. TOA.1205B Practice Drill - which provides multiple choice questions tailored based on the outlined flow of IAS 2.
3. TOA.1205CD Classroom Drill - which provides multiple choice questions that are usually covered during the actual CPA Board Examinations.

Friday, February 20, 2015

CPAs increasing role in public trust

While the world is getting smaller due to advancements in information technology, the global role of CPAs is also getting wider and bigger.

This was thoroughly discussed during the World Congress of Accountants (WCOA) 2014 that was held on November 10-13, 2014 in Rome, Italy.

One paper discussed was entitled "Fighting Corruption and Fraud: the Role for Professional Accountants" that greatly emphasizes the public value of accountants and their role in fighting corruption and enhancing transparency in using public resources.

According to a survey report entitled "The accountancy profession's role in creating public value" published by the Association of Chartered Certified Accountants (ACCA), CPAs are ranked as number 2 (medical professionals being number 1) in terms of putting value to the public.

Additionally, the profession's practice which includes the standard-setting process has a powerful impact on the stability of financial markets throughout the world. They have essential roles to play in the development and application of consistent global professional and ethical standards, in promoting good corporate governance, and supporting economic development through access to finance.

It is apparent that CPAs today are facing several pressures and issues from the complex business world, thus CPAs must increase their value through constant learning and regular stretching of their skillset and knowledge.

The business world is changing rapidly; consequently, the CPAs must adapt to these changes by improving their skills from time to time.

All Rights Reserved @philippinecpareview

Saturday, February 7, 2015

Reviewer in Income Taxes, Leases and Employee Benefits by PRTC (

This material came from the Professional Training and Review Center (PRTC), Inc. that was used during the May 2012 review sessions. Although, it is already 2015-- you can still use these materials since the basic concepts and principles in financial accounting that had been taught few years ago are still applicable today and even for the years to come.

This material was authored by Mr. Rommel M. Valdez, CPA; one of the respected reviewers here in the Philippines. Mr. Valdez is a seasoned educator, a CPA Professional focusing in the Education Sector of the Philippine Accounting Practice. He was one of the authors in various reviewers and textbooks in auditing theory and theory of accounts. He was also a former CPA Reviewer of the CPA Review (CPAR) School of the Philippines, one of the most prestigious CPA review institutions here in the Philippines.

These topics (Income Taxes, Leases and Employee Benefits) are just few of the difficult topics that are quite challenging both for the accountancy students and CPA Reviewees to grasp and master. Anyway, the key here is PRACTICE, PRACTICE, PRACTICE. If you really want to beat the difficult CPA Review Examinations, you need to master every concept through the use of various study techniques and skills. There are lot of available materials throughout the world wide web and you can use them for your own advantage.

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