SEC Requirements for a Quasi-reorganization

A company or an entity in financial distress or difficulty may be permitted by the Securities and Exchange Commission (SEC) to undergo a quasi-reorganization and in the process may be allowed to revalue its property, plant and equipment if their current value is substantially more than their cost. 

Quasi-reorganization must be approved by the SEC and consider the requirements as follows:

1. An independent expert or specialist is needed if the result of the quasi-reorganization is the revaluation of property, plant and equipment.

2. The increase in the value of the property, plant and equipment is credited to "revaluation surplus".

3. The adjustments concerning "Other" assets shall be made through the retained earnings.

4. The resulting deficit from the quasi-reorganization is offset against the revaluation surplus.

5. Retained earnings subsequent to quasi-reorganization shall be restricted to the extent of the deficit wiped out during the reorganization and cannot be declared as dividend.

6. Losses subsequent to quasi-reorganization cannot be charged to the remaining revaluation surplus.

7. The quasi-reorganization shall be disclosed for at least 3 years.

"Preservation of Books of Accounts and Other Accounting Records"

The bureau just recently issued the Revenue Regulations No. 5-2014 amending Revenue Regulations No. 17-2013 dealing with the "Preservation of Books of Accounts and Other Accounting Records" as follows:

"SECTION 2. RETENTION PERIODS. - All taxpayers are required to preserve their books of accounts, including subsidiary books and other accounting records, for a period of ten (10) years reckoned from the day following the deadline in filing a return, or if filed after the deadline, from the date of the filing of the return, for the taxable year when the last entry was made in the books of accounts: Provided that, within the first five (5) years reckoned from the day following the deadline in filing a return, or if filed after the deadline, from the date of the filing of the return, for the taxable year when the last entry was made in the books of accounts, the taxpayer shall retain hardcopies of the books of accounts, including subsidiary books and and other accounting records in an electronic storage system which complies with the requirements set forth under Section 2-A hereof.

Please refer http://www.bir.gov.ph/images/bir_files/internal_communications_1/RR%205-2014/RR%205-2014.pdf of the full text of the Revenue Regulations No. 5-2014.

Professional Regulation Commission (PRC) announces that 1,107 out of 5,540 passed the July 2014 Certified Public Accountant (CPA) Licensure Examination

After three working days, the PRC released the results that 1,107 out of 5,540 passed the Certified Public Accountant Licensure Examination given by the Board of Accountancy in the cities of Manila, Baguio, Cagayan De Oro, Cebu, Davao, Iloilo and Legazpi last July 2014.

The successful examinees who garnered the ten (10) highest places in the July 2014

Certified Public Accountant Licensure Examination are the following: 

RANK NAME SCHOOL RATING(%)

1 ROMMEL RHINO CATUDIO EDUSMA ASIAN DEVELOPMENT FOUNDATION COLLEGE 94.57 

2 JOANNA MARIE LIM BARROZO SAN BEDA COLLEGE OF ALABANG,INC.(ST.BENEDICT COLL) 93.43 

3 RAY HAMODI BALAGBIS NGALOT UNIVERSITY OF SAN CARLOS 92.43 

4 ORVILE PERDON RABINO ADVENTIST UNIVERSITY OF THE PHILIPPINES 92.00 

5 JOSCEL BARRIO DELOS CIELOS XAVIER UNIVERSITY 91.57 

6 JAMAICA PEREZ ENGLIS UNIVERSITY OF SAN CARLOS 91.43 

7 KEN LESTER TANTIADO GUILLEN POLYTECHNIC UNIVERSITY OF THE PHILIPPINES-MAIN-STA. MESA 91.29 

 DANN KARLO ALFARO MANZANO SAN BEDA COLLEGE 91.29 

8 EROS DELA ROSA HERRERA SAN BEDA COLLEGE OF ALABANG,INC.(ST.BENEDICT COLL) 91.14 

 THOMAS ZACHARY PINEDA SARIGUMBA UNIVERSITY OF SAN CARLOS 91.14 

9 JO-ANN HERRERA MERCADO POLYTECHNIC UNIVERSITY OF THE PHILIPPINES-STO. TOMAS 90.86 

10 LYNDON GIGANTO ASIS SOUTHWESTERN UNIVERSITY 90.43 

 ADRIAN CAGUETE ENRIQUEZ SAN BEDA COLLEGE 90.43 

Reference: http://www.prc.gov.ph/news/?id=794