PRBOA Resolution No. 30 S. 2022 Revised LECPA Syllabi and TOS Effective October 2022
PRBOA Resolution No. 30 S. 2022 Revised LECPA Syllabi and TOS Effective October 2022
Resolution No. 30
Series of 2022
WHEREAS, the Board also issued Resolution No. 01 (s. 2019) amending the Syllabi and
the Tables of Specifications (TOS) of the aforementioned subjects in the LECPA to
broaden the coverage of topics and to provide detailed definition of sub-topics starting in
the May 2019 LECPA;
WHEREAS, the Board recognized the need to review the six (6) subjects in the LECPA
and their respective Syllabi and TOS, and make the corresponding revisions, if necessary,
in order to align the topics, sub-topics, and questions with the new curriculum of the
Bachelor of Science in Accountancy (BSA) Program as prescribed in Commission on
Higher Education Memorandum Order No. 27 (s. 2017) and to prepare the aspiring
professional accountants, who completed and graduated under the new curriculum in May
2022, for the October 2022 LECPA;
WHEREAS, the Board issued Resolution No. 90 (s. 2019) designating the National
Association of Certified Public Accountants in Education (NACPAE) to spearhead the
review of the six (6) subjects in the LECPA and their Syllabi and TOS vis-à-vis the new
BSA curriculum, in collaboration with the stakeholders;
WHEREAS, the Board, after thorough evaluation and discussion of the recommendations
of NACPAE as well as the subjects to be given for the October 2022 LECPA, is inclined to
adopt certain changes or modifications in the LECPA subjects as well as their Syllabi and
TOS.
1. Revert to the six (6) subjects in the LECPA, as embodied in Resolution No.
262 (s. 2015);
2. Rename the subject title “Management Advisory Services” to “Management
Services”; and
3. Adopt the revised Syllabi and TOS for the subjects in the LECPA, which shall
be applied starting October 2022 LECPA.
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REVERTING TO THE SIX (6) SUBJECTS IN THE LICENSURE EXAMINATION FOR
CERTIFIED PUBLIC ACCOUNTANTS (LECPA) UNDER BOARD RESOLUTION
NO. 262 (s. 2015); RENAMING OF THE SUBJECT TITLE “MANAGEMENT
ADVISORY SERVICES” TO “MANAGEMENT SERVICES”; AND ADOPTING THE
REVISED SYLLABI AND TABLES OF SPECIFICATIONS FOR THE SIX (6)
SUBJECTS IN THE LECPA STARTING OCTOBER 2022
This Resolution, together with the revised Syllabi and TOS (Annex A), shall take effect after
fifteen (15) days following its complete publication in the Official Gazette or in any
newspaper of general circulation in the Philippines.
Let a copy hereof be furnished the University of the Philippines Law Center and Philippine
Council of Deans and Educators in Business.
ATTESTED BY:
APPROVED:
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 candidates must also be able to communicate effectively matters pertaining to the financial
accounting 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.
4
THE LICENSURE EXAMINATION FOR CERTIFIED PUBLIC ACCOUNTANTS
(LECPA) SYLLABUS
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.
6
8.0 Consolidated Financial Statements (PFRS 10)
8.1 Consolidation procedures
8.1.1 Net income, dividends, amortization, and impairment of goodwill
8.1.2 With intercompany transactions (Inventories, land, and depreciable assets)
8.1.3 Determination of:
8.1.3.1 Net Income/ Other Comprehensive Income/ Equity
8.1.3.1.1 Attributable to Equity Holders of Parent/ Controlling or
Parent’s Interest
8.1.3.1.2 Non-controlling Interest
8.1.3.1.3 Consolidated/ Group
8.1.3.2 Retained Earnings/ Common Share / Dividends
8.1.3.2.1 Attributable to Equity Holders of Parent / Controlling or
Parent’s Interest/ Consolidated / Group
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)
8
THE LICENSURE EXAMINATION FOR CERTIFIED PUBLIC ACCOUNTANTS
(LECPA) SYLLABUS
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.
9
1.2.3.2 Direct material variance (quantity, price usage, purchase price,
mix and yield)
1.2.3.3 Direct labor variance (efficiency, rate, mix and yield)
1.2.3.4 Factory overhead variance – two-way method (controllable and
volume); three-way method (spending, variable efficiency, and
volume); four-way method (variable spending, fixed spending,
variable efficiency, and volume)
1.2.4 Variable vs. Absorption Costing
1.2.4.1 Distinction between product cost and period cost
1.2.4.2 Inventory costs between variable costing and absorption costing
1.2.4.3 Nature and treatment of fixed factory overhead costs
1.2.4.4 Reconciliation of operating income under variable costing and
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 (minimum transfer price, market-based
transfer price, cost-based transfer price and negotiated price)
1.3.2 Balanced scorecard
1.3.2.1 Nature and perspectives of balanced scorecard
1.3.2.2 Financial and non-financial performance measures (productivity,
cycle efficiency and throughput measures)
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 (make or buy, accept, or reject special order,
continue or drop/shutdown, sell or process further, 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)
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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)
12
THE LICENSURE EXAMINATION FOR CERTIFIED PUBLIC ACCOUNTANTS
(LECPA) SYLLABUS
AUDITING
This subject covers the candidates’ knowledge of the principles and concepts of auditing and
attestation and the practical application of these principles and concepts. There shall be two
parts of this subject: Theory on Auditing and Attestation Services and Auditing Practice.
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.
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.
13
1.1.1.2 Types of assurance engagements (audits, reviews,
other assurance engagements)
1.1.2 Introduction to auditing
1.1.2.1 Nature, philosophy, and objectives
1.1.2.2 Types of audit
1.1.2.2.1 According to nature of assertion/data
(financial statements audit, operational audit,
and compliance audit)
1.1.2.2.2 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
1.2.3.1 Essential planning requirements
1.2.3.1.1 Knowledge of the business
1.2.3.1.2 Preliminary analytical procedures
1.2.3.1.3 Materiality
1.2.3.1.4 Assessing and managing audit risks
1.2.3.1.5 Overall audit plan and audit program (experts, internal
auditor, other independent auditors)
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
1.3.2.1 Basic concepts and elements of internal control
1.3.2.2 Consideration of accounting and internal control systems
1.3.2.2.1 Understanding and documentation
1.3.2.2.2 Assessment of control risks
1.3.2.2.2.1 Test of controls
1.3.2.2.2.2 Documentation
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
1.5.1 Completing the audit and audit report preparation
1.5.1.1 Analytical procedures for overall review
1.5.1.2 Related party transactions
1.5.1.3 Subsequent events review
1.5.1.4 Assessment of ongoing concern assumption
1.5.1.5 Obtaining client’s representation letter
1.5.1.6 Evaluating findings, formulating an opinion, and drafting the audit
report
14
1.5.2 Post-audit responsibilities
1.5.2.1 Subsequent discovery of facts
1.5.2.2 Subsequent discovery of omitted procedures
1.6 Reports on Audited Financial Statements
1.6.1 The unqualified auditor’s report
1.6.2 Basic elements of the unqualified auditor’s report
1.6.3 Modified auditor’s report
1.6.3.1 Matters that do not affect the auditor’s opinion
1.6.3.2 Matters that do affect the auditor’s opinion
1.6.4 Report on comparatives
1.6.5 Key audit matters
1.7 Auditing in a Computerized Information Systems (CIS) Environment
1.7.1 Internal control in a CIS environment
1.7.1.1 Introduction
1.7.1.2 Impact of computers on accounting and internal control
systems
1.7.1.2.1 General Controls
1.7.1.2.2 Application controls
1.7.1.3 Unique characteristics of specific CIS
1.7.1.3.1 Stand alone
1.7.1.3.2 On-line
1.7.1.3.3 Database system
1.7.2 Basic approach to the audit of CIS environment
1.7.2.1 Introduction
1.7.2.2 Effects of computers on the audit process
1.7.2.3 Computer assisted audit techniques
1.7.2.4 Electronic commerce
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 in the
Philippines
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)
16
THE LICENSURE EXAMINATION FOR CERTIFIED PUBLIC ACCOUNTANTS
(LECPA) SYLLABUS
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.
24
THE LICENSURE EXAMINATION FOR CERTIFIED PUBLIC ACCOUNTANTS
(LECPA) SYLLABUS
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.
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1.9 Organization and functions of the Bureau of Internal Revenue, Local Government
Tax Collecting Units, Board of Investments, Philippine Economic Zone Authority and
the Bases Conversion and Development Authority
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
9.4 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:
9.4.1 Royalties
9.4.2 Dividends
9.4.3 Interests
9.4.4 Capital gains
9.4.5 Business profits and other income items
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.
28
Table of Specifications
in FINANCIAL ACCOUNTING AND REPORTING
Effective October 2022 Licensure Examination for Certified Public Accountants (LECPA)
11
C. Cash and other Financial Assets 14.29% 10 2 5 3
1. Cash 4
1.1 Describe the nature and composition of cash 2 1 1
1.2 Prepare a bank reconciliation 1 1
1.3 Apply the accounting for petty cash fund 1 1
2. Other Financial Assets (initial recognition, basis for classification, 6
subsequent measurement, reclassification and presentation in the
financial statements)
2.1 Apply the recognition principles for financial assets at fair value 2 2
through profit or loss, recognition principles for financial assets at
fair value through other comprehensive income and recognition
principles for financial assets at amortized cost.
2.2 Measure trade and other receivables including valuation using 2 2
allowance for doubtful accounts and transfer of receivables
(pledging, assignment and factoring).
2.3 Measure other financial assets at amortized cost (including 1 1
investment in bonds).
2.4 Discuss investment in associates and joint venture 1 1
2
2.1 Describe the nature and determine capitalizable cost at initial 1 1
recognition; and measure borrowing costs
2.2 Identify subsequent expenditures and apply subsequent 2 2
measurement based on cost with consideration on depreciation,
depreciation methods and changes in useful life and depreciation
methods. 1 1
3
F. Non-financial liabilities, provisions and contingencies 5.71% 4 2 2
1. Non-financial liabilities, provisions and contingencies 4
1.1 Account for liabilities arising from customer loyalty programs 1 1
1.2 Illustrate warranties and product guarantees 1 1
1.3 Explain unearned revenues arising from contracts, gift
certificates, and subscriptions 1 1
1.4 Describe other provisions and contingencies
1 1
4
3.2 Compute and record the accounting for current income tax and
deferred income tax, deferred tax liability (asset) and current 1 1
income tax liability (asset) and illustrate financial statement
presentation and disclosure
4. Employee benefits 1
4.1 Describe the nature and classification, apply the recognition and
measurement of employee benefit costs under defined benefit 1
plan and defined contribution plan and illustrate the presentation 1
and disclosures
5. Interim Reporting 1
5.1 Describe the purpose and components of interim financial reports 1 1
and apply the recognition of income, expenses, assets and
liabilities for interim reporting
6. Operating segments 1
6.1 Identify operating segments and reporting segment information 1 1
TOTAL 100% 70 21 28 21
5
TABLE OF SPECIFICATIONS
in ADVANCED FINANCIAL ACCOUNTING AND REPORTING
Effective October 2022 Licensure Examination for Certified Public Accountants (LECPA)
6
Prepare the Statement of:
1. Affairs
2. Deficiency
3. Realization and liquidation 4.29% 3 1 1 1
2.4 Determine the order of priority of the claimants to the
company assets of a corporation subject to liquidation 1.42% 1 1
3.0 Joint Arrangements (PFRS 11) 5.71% 4 1 2 1
1. Joint Operation
3.1.1 Describe the nature and scope of joint operations
3.1.2 Differentiate Joint Operations from Business
Combinations
3.1.3 Apply the standards, principles, and methods in
accounting for joint operation transactions 2.87% 2 1 1
3.2 Joint Venture
3.2.1 Describe the nature and scope of joint ventures
3.2.2 Differentiate Joint Venture from Business
Combinations
3.2.3 Apply the standards, principles, and methods in
accounting for joint venture transactions 1.42% 1 1
3.3 Accounting for SMEs
1.42% 1 1
4.0 Revenue Recognition 14.29% 10 2 5 3
7
1. Recognize revenue from contracts with customers
4.1.1 Describe the Five-steps model framework 1.43% 1 1
4.1.2 Recognition of other revenues:
4.1.2.1 Right of return
4.1.2.2 Principal-agent relationships
4.1.2.3 Non-refundable upfront fees
4.1.2.4 Licensing/royalties
4.1.2.5 Repurchase arrangements
4.1.2.6 Gift cards
4.1.2.7 Consignment arrangements
4.1.2.8 Bill-and-Hold arrangements
4.1.2.9 Long-term Construction Contracts
4.1.2.9.1 Prepare journal entries and determine revenue,
costs, and gross profit under:
4.1.2.9.1.1 Over Time (Percentage
Of Completion Method)
4.1.2.9.1.2 Input method (Cost-to-
cost and Efforts-
expensed method)
4.1.2.9.1.3 Output method (Point in
time-Cost recovery
method/Zero-profit
approach)
8
4.1.2.9.2 Determine the amount of Contract Asset/Contract
Liabilities based on the performance obligation
4.1.2.10 Franchise Operations – Franchisor's point 7.14% 5 1 3 1
of view
4.1.2.10.1 Determine the amount of
revenue, costs, and gross profit
for:
4.1.2.10.1.1 Initial franchise fee
4.1.2.10.1.2 Continuing franchise
fee
4.1.2.11 Accounting for Consignment Sales 1.43% 1 1
4.1.2.11.1 Prepare journal entries to record
the sale of merchandise by the
consignee to third parties and its
remittance to the consignor
4.1.2.11.2 Solve for the value of ending
inventory
4.1.2.11.3 Examine the amount of the
consignor's cost of goods sold and
profit or loss
4.1.3 Solve for the amount to be presented in the Financial 1.43% 1 1
Statement
2.86% 2 2
9
6.2.4 Prepare journal entries in the books of the acquirer 5.71% 4 3 1
6.3 Ascertain the proper financial statement presentation of the
results of the business combination transaction
1.43% 1 1
7.0 Separate Financial Statement (PAS 27) 5.71% 4 1 2 1
1. Determine the carrying amount of Investment in
subsidiaries, associates, joint ventures and its effect on
the profit or loss applying the following methods:
7.1.1 At cost
7.1.2 Financial Instruments: Recognition and measurement
(PAS 39)
7.1.3 Financial instruments under PFRS 9 4.28% 3 1 1 1
7.2 Determine the treatment of dividends and their related
disclosures in applying the accounting policies in the Investment of
subsidiaries, associates, and joint ventures 1.43% 1 1
8.0 Consolidated Financial Statements (PFRS 10) 7.14% 5 2 1 2
1. Determine the consolidation procedures and the amount
to be presented in the financial statements relating to:
8.1.1 Net income, dividends amortization, and impairment
of goodwill
8.1.2 Intercompany transactions (inventories, land, and
depreciable assets) 2.86% 2 2
8.1.3 Determine the amount of:
8.1.3.1 Net income, other comprehensive
income/equity
8.1.3.1.1 Attributable to equity holders of
parent/controlling or parent's
interest
8.1.3.1.2 Non-controlling interest
8.1.3.1.3 Consolidated/group
8.1.3.2 Retained Earnings / common
share/dividends attributable to
8.1.3.2.1 Equity Holders of Parent /
Controlling or Parent's Interest and, 4.28%
Consolidated/group
3 1 2
9.0 Derivatives and Hedging Accounting (PFRS 9) 5.71% 4 1 2 1
1. Identify the criteria for initial recognition, subsequent
measurement, and de-recognition of derivatives
9.1.1 Determine the number of derivatives to be recognized
in the financial statements and consideration of fair
value measurement to it
9.1.2 Identify the types of derivative and determine the
values of
9.1.2.1 Forwards and futures instruments
9.1.2.2 Options and swaps instruments 2.86% 2 1 1
10
9.2 Determine the impact or effect of hedging transactions in
the investor's point of view under:
9.2.1 Foreign currency forward contract
9.2.1.1 Hedges that does not require a hedge
accounting (Undesignated hedges)
9.2.1.1.1 Exposed Asset (import) or Liability
(export) position
9.2.1.1.2 Speculation
9.2.1.2 Hedges that requires hedge accounting:
9.2.1.2.1 Fair value hedge
9.2.1.2.1.1 Hedge of a firm
commitment (purchase or sale transaction)
9.2.1.2.2 Cash flow hedge
9.2.1.2.2.1 Hedge of a firm
commitment (purchase or sale transaction)
9.2.1.2.2.2 Hedge of a forecasted
transaction (purchase or sale transaction)
9.2.1.3 Hedge of a net investment in a foreign entity
2.85% 2 1 1
11
12.3 Identify the accounting policies under the Government
Accounting Manual (GAM)
12.4 Prepare Journal Entries (Books of National Government
Agency)
2.86% 2 1 1
13.0 Cost Accounting 14.29% 10 3 4 3
1. Describe the system of cost accumulation or costing
system
13.1.1 Differentiate actual costing, normal costing, and
standard costing 1.42% 1 1
13.2 Job Order Costing
13.2.1 Record transactions using a job order
costing procedures
13.2.2 Compute Cost of Goods Manufactured and Sold
13.2.3 Account for spoiled units and rework costs
13.2.4 Describe the cost accumulation procedures for
materials, labor, and overhead 2.86% 2 1 1
13.3 Process Costing System
13.3.1 Record transactions using a process
costing procedures
13.3.2 Determine cost of production under
13.3.2.1 FIFO
13.3.2.2 Weighted Average
13.3.3 Account for lost units in scraps, wastes, spoilages,
and reworks
13.3.3.1 Normal lost units-end of process
13.3.2.2 Abnormal lost units
13.3.4 Accumulate cost procedures for materials, labor, and
overhead 2.86% 2 1 1
12
13.6.1 Compute and allocate joint (common) costs at the
point of slit-off using:
13.6.1.1 Market (Sales) value method
13.6.1.1.1 Market Value at split-off point
approach
13.6.1.1.2 Hypothetical market value
approach or approximated net realizable value approach or net
realizable value method
13.6.1.1.3 Average unit (production
output) method
13.6.1.1.4 Weighted average method
13.6.1.2 Methods of allocating Joint cost to by-
products
13.6.1.2.1 No joint cost allocated to by-
product
13.6.1.2.2 With joint costs allocated to
by-product
13.6.1.3 Treatment of By-products
2.86% 2 1 1
13.7 Service Cost Allocation
13.7.1 Allocate service department costs using
13.7.1.1 Direct method
13.7.1.2 Step-down method
13.7.1.3 Reciprocal method 1.43% 1 1
14.0 Other Special Topics 2.86% 2 2
1. Accounting for insurance contracts by insurers (PFRS 17)
14.1.1 Identify the different types of insurance contracts
14.1.2 Apply changes in Accounting Policies
14.1.3 Recognize and measure insurance and reinsurance
contracts 1 1
1.43%
14.2 Accounting for the build, operate and transfer (IFRIC 12)
14.2.1 Recognition and measurement of build,
operate, and transfer arrangements
14.2.1.1 Determine the value of financial assets
14.2.1.2 Determine the value of intangible assets 1 1
TOTAL 100% 70 21 28 21
13
Table of Specifications
in Management Services
Effective October 2022 Licensure Examination for Certified Public Accountants (LECPA)
14
2.5.3 Determination of direct material variances
2.5.4 Determination of direct labor variances
2.5.5 Determination of factory overhead variances using two-way; three-way and
four-way methods
3. Management accounting concepts & techniques for performance measurement 11.4% 8 2 4 2
3.1 Identify and differentiate the different types of responsibility centers (i.e., profit center, cost 4 1 3
center, investment center) and determine the proper accounting of transactions affecting
each one. Determine the proper use of transfer pricing in measuring the performance of
business operations.
3.2 Identify and differentiate the four perspectives of the balanced scorecard and formulate 4 1 1 2
performance indicators to evaluate, monitor and improve business performance.
4. Management Accounting Concepts & Techniques for Decision Making 11.4% 8
4.1. Identify and use appropriate relevant costs in making analysis and business decision for 2
short-term non routine scenarios. Understand and apply the concept of opportunity costs
4.2. Determine the key elements of capital budgeting investment decisions (net investment, 2
operating cash flow and cost of capital) and evaluate the same using both discounted and
non-discounted cash flow techniques.
4.3. Application of approaches in analyzing alternative non-routine decisions (Alternatives 3
involving make or buy, accept or reject a special order, continue or shut-down, sell or
process further, product combinations and pricing decisions). 1
4.4. Application of probability analysis, decision tree diagram and linear programming.
B. Financial Management 35.7% 25 7 10 8
1. Identify and describe the nature, objectives, and scope of financial management in making 4.3% 3 1 1 1
business decisions.
2. Analyze and use financial data derived from financial statements in evaluating the 7.1% 5 1 3 1
performance of the management and make business decisions.
3. Apply different working capital (cash, receivables, inventory, and other short-term resources) 8.5% 6 1 3 2
management methods and techniques in making short-term business decisions.
4. Determine the key elements of capital budgeting investment decisions (net investment, 7.1% 5 1 2 2
operating cash flow and cost of capital) and evaluate the same using both discounted and non-
discounted cash flow techniques.
5. Apply the concept of risk and leverage. Understand and analyze situations involving the types 2.9% 2 1 1
of risks, measures of risks and degree of operating, financial and total leverage. Distinguish
the different types and measurement of risks and apply their relationships with the rate of
returns. Identify and apply various risk measurement models.
6. Utilize various techniques in managing capital structure and in dealing with long-term financing 2.9% 2 1 1
decisions. Identify and apply the basic concepts and tools of capital structure management
sources of intermediate and long-term financing and cost of capital
7. Understand the workings of the Philippine stock exchange and other houses. Understand the 2.9% 2 1 1
various types of financial markets (money market, capital market and derivatives market).
Apply valuation techniques for various types of derivatives (forwards, futures and options)
I. Economic Concepts Essential to Obtaining an Understanding of Entity’s Business and 7.2% 5 2 2 1
Industry
15
1. Identify and describe the basic concepts of macroeconomics that are relevant in making 4.3% 3 1 1 1
business decisions, and apply the concepts properly
2. Identify and describe the basic concepts of microeconomics that are relevant in making 2.9% 2 1 1
business decisions, and apply the concepts properly.
Total (for 70 items) 100% 70 21 28 21
16
Table of Specifications
in AUDITING
Effective October 2022 Licensure Examination for Certified Public Accountants (LECPA)
17
2.1 Explain the overview of the risk-based audit process 1 1
2.2 Illustrate and explain the pre-engagement 1 1
procedures
2.3 Explain the scope and purposes of audit planning 1 1
2.3.1 Identify and discuss the essential planning
procedures
2.3.1.1 Knowledge of the business
2.3.1.2 Preliminary analytical procedures
2.3.1.3 Materiality
2.3.1.4 Assessing and managing audit risks
2.3.1.5 Overall audit plan and audit program (experts,
internal auditor, other independent auditors)
2.4 Perform the direction, supervision, and review
1
1
3.1 Describe and discuss the industry, regulatory and other external 2 2
factors, including the applicable financial reporting framework
3.1.1 Describe the nature of the entity
3.1.2 Discuss the objectives and strategies and related
business risks
3.1.3 Describe and discuss the measurement and review of
the entity’s financial performance
3.2 Discuss and explain Internal Control
3.2.1 Identify and explain the basic concepts and elements of 1 1
internal control
3.2.2 Identify and discuss consideration of accounting and
internal control systems
3.2.2.1 Understanding and documentation
3.2.2.2 Assessment of control risks
3.2.2.2.1 Test controls
3.2.2.2.2 Documentation
3.3 Identify, discuss, and assess the risks of material misstatement
3.3.1 Fraud and errors 1 1
3.3.2 Risks assessment procedures
3.3.3 Discussion among the engagement team
3.3.4 Significant risks that require special audit consideration
3.3.5 Risks for which substantive procedures alone do not
provide sufficient appropriate audit evidence
3.3.6 Revision of risk assessment
18
3.4 Discuss and communicate the risks of material
misstatement with those charged with governance and
management 1 1
4. Audit Objectives, Procedures, Evidence and
7.1% 5
Documentation
4.1 Describe and discuss the nature and significance 1 1
4.2 Identify the evidential matters 1 1
4.3 Perform the audit procedures/techniques including 2 2
audit selection
4.4 Prepare audit working papers 1 1
5. Completing the Audit/Post-Audit Responsibilities 7.1% 5
5.1 Discuss the completion of the audit and audit 3 1 2
report preparation
5.1.1 Describe the analytical procedures for overall
review
5.1.2 Determine related party transactions
5.1.3 Discuss subsequent events review
5.1.4 Discuss the assessment of going concern
assumption
5.1.5 Explain how to obtain client’s representation
letter
5.1.6 Discuss and describe how to evaluate findings,
formulate an opinion, and draft the audit report
5.2 Identify and discuss post-audit responsibilities
5.2.1 Discuss subsequent discovery of facts
2 2
5.2.2 Discuss subsequent discovery of omitted procedures
6. Reports on Audited Financial Statements 5.7% 4
6.1 Illustrate an unqualified auditor’s report 1 1
6.2 Explain the basic elements of the unqualified auditor’s 1 1
report
6.3 Describe a modified auditor’s opinion report 1 1
6.3.1 Identify matters that do not affect the auditor’s
opinion
6.3.2 Identify matters that do affect the auditor’s
opinion
1
6.4 Prepare and discuss report on comparatives 1
6.5 Identify key audit matters
7. Auditing in a Computerized Information Systems (CIS)
4.2% 3
Environment
7.1 Describe and identify the Internal Control in a CIS environment 1
7.1.1 Introduction
7.1.2 Impact of computers on accounting and internal control
1
systems
7.1.2.1 General Controls
7.1.2.2 Application Controls
19
7.1.3 Unique characteristics of specific CIS
7.1.3.1 Stand alone
7.1.3.2 On-line
7.1.3.3 Database system
7.2 Discuss, describe, and identify the basic approach to the audit of
CIS environment 1 1
7.2.1 Introduction
7.2.2 Effects of computers on the audit process
7.2.3 Computer assisted audit techniques
7.2.4 Electronic commerce
7.3 Describe and discuss how to audit new technologies
1 1
20
B. AUDITING PRACTICE 50% 35 10 14 11
1. Governance, Ethics and Quality Management 7.1% 5
1.1 Discuss corporate governance 1 1
1.2 Identify and discuss the ethical standards and 1 1
responsibilities of professional accountants
1.3 Describe and discuss the system of quality 2 2
management
1.3.1 Elements of a system of quality
management
1.3.2 Leadership responsibilities
1.3.3 Ethical requirements
1.3.4 Acceptance and continuance
1.3.5 Human resources
1.3.6 Engagement performance
1.3.7 Monitoring
1.3.8 Documentation of the System of Quality
Management
1.4 Determine and discuss the regulatory requirements 1 1
related to the practice, accreditation, and regulation of
public accounting and auditing services
2. Planning the Audit and Performing Risk Assessment
Procedures 25.7% 18
21
2.5 Perform risk assessment procedures entity wide and business 1 1
process level
2.5.1 Identify and assess inherent risks
2.5.2 Identify objectives and key risks
2.5.3 Describe and explain internal control
2.5.4 Evaluate internal control
2.5.5 Communicate deficiencies in internal control
2.5.6 Conclude the risk assessment phase
TOTAL 100% 70 21 28 21
22
Table of Specifications
in REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS
Effective October 2022 Licensure Examination for Certified Public Accountants (LECPA)
Moderate
Difficulty Level Easy (30%) Difficult (30%)
(40%)
Bloom’s Taxonomy Remembering Understanding Applying Analyzing Evaluating Creating
Weight
No. of No. of
Topics and Outcome (in No. of Items No. of Items No. of Items No. of Items No. of Items
Items Items
Percent)
The examinees can perform the following competencies under each topic:
A. Law on Business Transactions 18% 18
1. . Obligations 6% 6 2 2 2
1.1 Describe obligations
1.1.1 Apply the sources of obligations and their concepts
1.1.3.1 Law
1.1.3.2 Contracts
1.1.3.3 Quasi-contracts
1.1.3.4 Delicts
1.1.3.5 Quasi-delicts
1.1.2. Compare and apply the kinds of Obligations
1.1.2.1. Pure/Conditional/Obligation with a Term
1.1.2.2. Solidary /Joint Obligations
1.1.2.3. Alternative/ Facultative Obligations
1.1.2.4. Divisible/ Indivisible Obligations
1.1.2.5. Obligation with a Penal Clause
1.1.3 Describe the specific circumstances affecting obligations in
general
1.1.3.1 Fortuitous Events
1.1.3.2 Fraud
1.1.3.3 Negligence
1.1.3.4 Delay
1.1.3.5 Breach of contract
1.1.4 Discuss the nature and effects of Obligations
1.1.4.1 Concurrent Obligations in obligations to give a
specific/determinate thing
1.1.4.2 Obligations to do or not to do
1.1.4.3 Remedies in case of non-performance
1.1.4.4 Damages
23
1.1.5 Distinguish the extinguishment of obligation with special emphasis
on
1.1.5.1 Payment of debts of money
1.1.5.2 Mercantile documents as means of payment
1.1.5.3 Apply the special forms or mode of payment
1.1.5.3.1 Dation in payment
1.1.5.3.2 Application of payments
1.1.5.3.3 Payment by cession
1.1.5.3.4 Tender of payment and consignation
1.1.5.4 Loss of the thing due, remission or condonation,
confusion, compensation and novation
2. Contracts 6% 6 2 2 2
2.1. General Provisions
2.1.1. Describe contracts
2.1.2. Discuss the classification of contracts
2.1.3. Identify the stages of contract
2.1.4. Relate the Freedom to contract (establish stipulations) and
limitation
2.1.5. Identify who are persons bound
2.2. Apply the essential requisites of contracts
2.2.1. Consent
2.2.2. Requisites
2.2.3. Capacitated persons
2.2.4. Vices of consent
2.2.5. Objects of contracts
2.2.6. Cause of considerations of contracts
2.3. Determine the forms of contracts
2.4. Discuss the reformation of instruments/contracts
2.5. Discuss the interpretation of contracts
2.6. Discuss and apply the defective contracts
2.6.1. Resistible
2.6.2. Voidable
2.6.3. Unenforceable
2.6.4. Void and inexistent
3 Sales 3% 3 1 1 1
Describe the nature, forms and requisites of sales
3.2. Distinguish earnest money from option money
3.3. Determine the rights/obligations of vendor and vendee
3.4. Describe the warranties of sales
3.4.1 . Express Warranties (in relation to consumer laws)
3.4.2 lied Warranties
3.5. Discuss and apply installment sales
3.5.1. . Personal property – Recto Law
3.5.2. Real Property – Maceda Law
24
3.5.3. PD 957 / Condominium Act
3.6 Discuss the extinguishment of a contract of sale
3.6.1 Conventional Redemption
3.7 Apply Legal Redemption on sales
4 Credit Transactions 3% 3 1 1 1
4.1 Discuss and apply Pledge, Real Mortgage and Chattel Mortgage on:
4.1.1 Similarities
4.1.2 Requisites
4.1.3 Indivisibility
4.1.4 Pactum Commissorium
4.1.5 Third party pledgors/mortgagors
4.2 Describe the requirements to bind the parties and third persons
4.3 Identify the obligations and rights of pledgor and pledgee
4.4 Identify the obligations and rights of mortgagor and mortgagee
4.5 Apply the modes of extinguishment
B. Bouncing Checks 2% 2 1 1
1 Discuss and apply the requisites to be liable under BP 22
1.1 Checks without insufficient funds
1.2 Evidence of knowledge of insufficient funds
1.3 Duty of Drawer
1.4 Credit Construed
2 Compare Bouncing checks with Estafa (Art. 315 {2] (d)
C. Consumer Protection 2% 2 1 1
1. Explain the consumer product quality and safety
2. Illustrate the different deceptive sales acts and practices
3. Describe product service and warranty
4. Illustrate labelling and packaging
5. Apply consumer rights
5.1. Price Tag Act
5.2. Lemon Law
D. Financial Rehabilitation and Insolvency 5% 5 2 2 1
1. Discuss the definition of terms
2. Elaborate suspension of payments
3. Discuss and apply rehabilitation on:
3.1. Types
3.2. Commencement order
3.3. Stay or suspension order
3.4. Rehabilitation receiver
3.5. Management committee
3.6. Rehabilitation plan
3.7. Cram down effect
4. Discuss and apply liquidation on:
4.1. Types
25
4.2. Conversion of rehabilitation to liquidation proceedings
4.3. Liquidation order
4.4. Rights of secured creditors
4.5. Liquidator
4.6. Determination of claims
4.7. Liquidation of Plan
E. Philippine Competition Act 2% 2 1 1
1. Discuss the definition and scope of application
2. Elaborate and apply prohibited acts
2.1. Anti-competitive agreements
2.2. Abuse of dominant position
2.3. Prohibited mergers and acquisitions
2.4. Exceptions
3. Illustrate and apply covered transactions
3.1. Thresholds for compulsory notification
3.2. Notifying entity
3.3. Period of notifications
3.4. Exceptions
F. Government Procurement Law 2% 2 1 1
1. Explain the general principles
2. Discuss the scope and application
3. Discuss the definition of terms
4. Discuss and apply the procurement procedures
4.1. Preparation of bidding documents
4.2. Invitation to bid
4.3. Receipt and opening of bids
4.4. Bid evaluation
4.5. Post-qualification
4.6. Award, implementation and termination of the contract
5. Explain the Disclosure of relations
6. Demonstrate the alternative methods of procurement
G. Law on Business Organization 44% 44
1. Partnerships 6% 6 2 2 2
1.1. Describe the nature and distinguish it from corporation
1.1.1. Discuss the kinds of partnerships
1.1.2. Determine the formalities required
1.1.3. Discuss the rules of management
1.1.4. Determine the obligations of partners
1.1.4.1. To the partnership and to the partners
1.1.4.2. To third persons
1.1.4.3. Identify the rights of a partner
1.1.4.4. Illustrate the sharing of profits and losses
1.1.4.5. Explain the dissolution and winding up
26
1.1.4.6. Explain and apply limited partnership
1.1.5. Corporations 30% 30 9 12 9
1.1.5.1. Describe a corporation
1.1.5.2. Discuss the classes of corporations
1.1.5.3. Illustrate the nationality of corporations
1.1.5.3.1. Control test
1.1.5.3.2. Grandfather rule
1.1.5.4. Apply the doctrines on corporate juridical personality
1.1.5.4.1. Doctrine of separate juridical personality
1.1.5.4.1.1. Liability for tort and crimes
1.1.5.4.1.2. Recovery of damages
1.1.5.4.2. Doctrine of piercing the corporate veil
1.1.5.4.2.1. Grounds for application of doctrine
1.1.5.4.2.2. Test in determining applicability
1.1.5.5. Describe the capital structure
1.1.5.5.1. Number and qualifications of incorporators
1.1.5.5.2. Subscription requirements
1.1.5.5.3. Corporate term
1.1.5.5.4. Classification of shares
1.1.5.5.4.1. Preferred shares versus common
shares
1.1.5.5.4.2. Scope of voting rights subject to
classification
1.1.5.5.4.3. Founder's shares
1.1.5.5.4.4. Redeemable shares
1.1.5.5.4.5. Treasury shares
1.1.5.6. Discuss the process of incorporation and organization
1.1.5.6.1. Promoter
1.1.5.6.2. Subscription contract
1.1.5.6.3. Pre-incorporation subscription agreements
1.1.5.6.4. Consideration for stocks
1.1.5.6.5. Articles of Incorporation
1.1.5.6.5.1. Contents
1.1.5.6.5.2. Non-amendable items
1.1.5.6.6. Corporate name; limitations on use of corporate
name
1.1.5.6.7. Registration, incorporation and
commencement of corporate existence
1.1.5.6.8. Election of directors or trustees
1.1.5.6.9. Adoption of by-laws
1.1.5.6.9.1. Contents of by-laws
1.1.5.6.9.2. Binding effects
1.1.5.6.9.3. Amendments
1.1.5.6.10. Effects of non-use of corporate charter
27
1.1.5.7. Explain and discuss the corporate powers of corporations
1.1.5.7.1. General powers; theory of general capacity
1.1.5.7.2. Specific powers; theory of specific capacity
1.1.5.7.3. Power to extend or shorten corporate term
1.1.5.7.4. Power to increase or decrease capital stock or
incur, create, increase bonded indebtedness
1.1.5.7.5. Power to deny pre-emptive rights
1.1.5.7.6. Power to sell or dispose corporate assets
1.1.5.7.7. Power to acquire own shares
1.1.5.7.8. Power to invest corporate funds in another
corporation or business
1.1.5.7.9. Power to declare dividends
1.1.5.7.10.Power to enter into management contract
1.1.5.7.11.Ultra vires acts
1.1.5.7.12.Doctrine of individuality of subscription
1.1.5.7.13.Doctrine of equality of shares
1.1.5.7.14.Trust fund doctrine
1.1.5.8. Discuss and explain the rights of stockholders and
members
1.1.6. Fundamental rights of a stockholder
1.1.6.1. Participation in management
1.1.6.1.1. Proxy
1.1.6.1.2. Voting trust
1.1.6.1.3. Cases when stockholders' action is required
1.1.6.1.4. Manner of voting
1.1.6.1.4.1. Proprietary rights
1.1.6.1.4.1.1. Appraisal right
1.1.6.1.4.1.2. Right to inspect
1.1.6.1.4.1.3. Preemptive right
1.1.6.1.4.1.4. Right to vote
1.1.6.1.4.1.5. Right to dividends
1.1.6.1.4.2. Remedial rights
1.1.6.1.4.2.1. Individual suit
1.1.6.1.4.2.2. Representative suit
1.1.6.1.4.2.3. Derivative suit
1.1.6.1.4.3. Obligations of a stockholder
1.1.6.1.4.4. Meetings
1.1.6.1.4.4.1. Regular or special
1.1.6.1.4.4.2. Notice of meetings
1.1.6.1.4.4.3. Place and time of
meetings
1.1.6.1.4.4.4. Quorum
1.1.6.1.4.4.5. Minutes and
agenda of meetings
28
1.1.6.1.4.4.6. Remote
communication
1.1.6.2. Discuss and explain the role of the Board of directors and
trustees
1.1.6.2.1.1. Repository of corporate powers
1.1.6.2.1.2. Tenure, qualifications and disqualifications of
directors
1.1.6.2.2. Corporations vested with public interest
1.1.6.2.3. Independent directors
1.1.6.2.4. Elections
1.1.6.2.5. Removal
1.1.6.2.6. Filling of vacancies
1.1.6.2.7. Compensation
1.1.6.2.8. Disloyalty
1.1.6.2.8.1. Business judgment rule
1.1.6.2.8.2. Solidary liabilities for
damages
1.1.6.2.9. Personal liabilities
1.1.6.2.10. Responsibility for crimes
1.1.6.2.11. Special fact doctrine
1.1.6.2.12. Inside information
1.1.6.2.13. Contracts
1.1.6.2.14.Between corporations with interlocking
directors
1.1.6.2.15. Executive and other special committees
1.1.6.2.16. Meetings
1.1.6.2.16.1.1. Regular or special
1.1.6.2.16.1.2. Who presides?
1.1.6.2.16.1.3. Quorum
1.1.6.2.16.1.4. Remote
communication
1.1.6.2.16.1.5. Rule on abstention
1.1.6.3. Describe the capital affairs of corporations
1.1.6.3.1. Certificate of stock
1.1.6.3.2. Watered stocks
1.1.6.3.3. Payment of balance of subscription
1.1.6.3.4. Sale of delinquent shares
1.1.6.3.5. Alienation of shares
1.1.6.3.6. Elaborate and identify corporate books and records
1.1.6.3.6.1. Records to be kept at principal office
1.1.6.3.6.2. Right to inspect corporate records
1.1.6.3.6.3. Effect of refusal to inspect corporate
records
1.1.6.4. Apply the modes and methods of dissolution and liquidation
29
1.1.6.4.1. Modes of dissolution
1.1.6.4.2. Methods of liquidation
1.1.6.5. Distinguish how other corporations operate
1.1.6.5.1. Non-stock corporations
1.1.6.5.2. Educational corporations
1.1.6.5.3. Religious corporations
1.1.6.5.4. Illustrate and apply how one person corporations is
organized/operate
1.1.6.5.4.1. Excepted corporations
1.1.6.5.4.2. Capital stock requirement
1.1.6.5.4.3. Articles of incorporation and by-laws
1.1.6.5.4.4. Corporate name
1.1.6.5.4.5. Corporate structure and officers
1.1.6.5.4.6. Nominee
1.1.6.5.4.6.1. Liability
1.1.6.5.4.6.2. Conversion of corporation to one
person corporations and vice-versa
1.1.6.5.5. Describe and apply how foreign corporations are
organized/operate
1.1.6.5.5.1. Bases of authority over foreign
corporations
1.1.6.5.5.2. Necessity of a license to do business
1.1.6.5.5.3. Personality to sue
1.1.6.5.5.4. Suability of foreign corporations
1.1.6.5.5.5. Instances when unlicensed foreign
corporations may be allowed to sue
(isolated transactions)
1.1.6.5.5.6. Grounds for revocation of license
1.1.6.6. Merger and consolidation
1.1.6.6.1. Discuss the definition and concept
1.1.6.6.2. Distinguish: constituent and consolidated
corporation
1.1.6.6.3. Illustrate the plan of merger or consolidation
1.1.6.6.4. Illustrate the articles of merger or consolidation
1.1.6.6.5. Discuss the procedure, effectivity, limitations and
effects
1.1.6.7. Investigations, offenses, and penalties
1.1.6.7.1. Explain the authority of Commissioner
1.1.6.7.1.1. Investigation and prosecution of
offenses
1.1.6.7.1.2. Contempt
1.1.6.7.2. Determine the sanctions for violations
1.1.6.7.2.1.1.1. Administrative sanctions
1.1.6.7.2.1.1.2. Prohibited Acts
30
1.1.6.7.2.1.1.3. Penalties
1.1.6.7.3. Identify who are liable
1.1.6.7.4. Explain the authority of the Securities and Exchange
Commission
1.1.6.8. Discuss and apply the principles and concepts of Corporate
Governance for:
1.1.6.8.1. Publicly-listed companies
1.1.6.8.2. Public companies and registered issuers
1.1.6.9. Discuss and Elaborate Securities on aspect of:
1.1.6.9.1. Kinds of securities
1.1.6.9.2. Procedure for registration of securities
1.1.6.9.3. Prohibition on fraud, manipulation and insider trading
1.1.6.9.4. Protection of shareholder interests
1.1.6.10. Apply the provisions of the Securities Regulation Code (SRC)
Rule 68 on:
1.1.6.10.1. General Financial Reporting requirements
1.1.6.10.1.1. Application and definition of terms
1.1.6.10.1.2. Guides to financial statements
preparation
1.1.6.10.1.2.1. Financial reporting
framework
1.1.6.10.1.2.2. Responsibility for
financial statements
1.1.6.10.1.2.3. Qualifications and reports of
independent auditors
1.1.6.11. Apply SEC Issuances
1.1.6.11.1. Memo Circulars
1.1.6.11.2. Opinions
1.1.7. Insurance 3% 3 1 1 1
1.1.7.1. Explain the concept of insurance
1.1.7.2. Explain the elements of an insurance contract
1.1.7.3. Discuss the characteristics and nature of insurance contracts
1.1.7.4. Discuss the classes of insurance
1.1.7.5. Describe variable contracts
1.1.7.6. Define and apply insurable interest
1.1.7.7. Illustrate the perfection of the contract of insurance
1.1.7.8. Apply rescission of insurance contracts
1.1.7.9. Discuss claims settlement and subrogation
1.1.8. Cooperatives 5% 5 2 2 1
1.1.8.1. Describe the organization and registration of cooperatives
1.1.8.2. Describe the administration of cooperatives
1.1.8.3. Determine the responsibilities, rights, assurance and privileges
of cooperatives
31
1.1.8.4. Describe and identify the memberships
1.1.8.5. Determine the capital, property of funds
1.1.8.6. Apply the audit, inquiry and members’ tight to examine
1.1.8.7. Apply and compute the allocation and distribution of funds
1.1.8.8. Distinguish the types and categories of cooperatives
1.1.8.9. Explain the merger and consolidation of cooperatives
1.1.8.10. Explain the dissolution of cooperatives
H. Law on Other Business Transactions 25% 25
1. PDIC Law 2% 2 1 1
1.1. Describe the insurable deposits
1.2. Compute the maximum liability
1.3. Identify the requirements for claims
2. Secrecy of Bank Deposits 2% 2 1 1
2.1. Explain the purpose
2.2. Illustrate the Prohibited acts
2.3. Discuss the types of deposits covered
2.4. Apply the exceptions
2.5. Explain garnishment of deposits including foreign deposits
3. Truth in Lending Act 2% 2 1 1
3.1. Describe the purpose
3.2. Illustrate the obligation of creditors to persons to whom credit is extended
3.3. Compare covered and excluded transactions
3.4. Describe the consequences of non-compliance with obligation
4. AMLA Law 6% 6 2 2 2
4.1. Discuss the purpose, policies and principles
4.2. Discuss the definition of terms
4.3. Illustrate unlawful activities
4.4. Determine who are covered persons
4.5. Describe money laundering, terrorism and financing and asset forfeiture
4.6. Apply and illustrate preventive measures and obligations of covered
persons
4.6.1. Prohibited accounts
4.6.2. Customer due diligence
4.7. Explain and apply beneficial ownership
4.8. Identify the record keeping requirements
4.8.1. Discuss safe harbor
5. Intellectual Property Law (except provisions under Part 1 2% 2 1 1
5.1. Discuss Patents
5.2. Discuss Trademark, Service Marks and Trade Names
5.3. Discuss Copyright
6. Data Privacy Act 3% 3 1 1 1
6.1. Discuss definitions
6.2. Discuss the scope of application
6.3. Describe the data privacy principles
32
6.4. Illustrate processing of personal data
6.5. Identify the security measures for protection of personal data
6.6. Determine the rights of data subject
6.7. Apply data breach notification
6.8. Discus outsourcing and subcontracting agreements
6.9. Determine registration and compliance requirements
7. Electronic Commerce Act 2% 2 1 1
7.1. Discuss the principles
7.2. Describe the application
7.3. Discuss the definition of terms
7.4. Apply the legal recognition and communication of electronic data
messages and electronic documents
7.5. Discuss the electronic commerce in carriage of goods
7.6. Explain the electronic transactions in government
8. Ease of Doing Business and Efficient Delivery of Government Service
2% 2 1 1
Delivery Act
8.1. Explain the policy, construction and interpretation
8.2. Discuss the definition of terms
8.3. Discuss the coverage and scope
8.4. Explain reengineering of systems and procedures
8.5. Elaborate Citizen’s charter
8.6. Illustrate accessing government services
8.7. Describe the streamlined procedures for the issuances of permits and
licenses
8.8. Identify the violations, jurisdiction, penalties, and immunity
9. Labor Law 2% 2 1 1
9.1. Explain and apply labor standards on the aspect of:
9.1.1. Basic pay
9.1.2. Overtime premium
9.1.3. Night shift differential
9.1.4. Holiday premium
9.1.5. 13th month pay
9.1.6. Leaves
9.1.7. Service incentive leave
9.1.8. Maternity leave
9.1.9. Paternity leave
9.1.10. Parental leave for solo parent
10. Social Security Law 2% 2 1 1
10.1. Discuss the definition of terms
10.2. Explain the scope and coverage
10.3. Illustrate pension, retirement and other benefits
10.4. Discuss the exemptions from tax, legal process and lien
10.5. Compute employee’s and employer’s contributions
10.6. Compute contributions from self-employed member
33
10.7. Determine the remittance of contributions
10.8. Describes the method of collection and payment
10.9. Identity the employment records and reports
10.10. Describe the penal clauses
TOTAL 100% 100 30 40 30
34
Table of Specifications
Taxation
Effective October 2022 Licensure Examination for Certified Public Accountants (LECPA)
35
10. Describe, analyze and apply specific provisions of other special laws relating to income
taxation
10.1 Describe, analyze and apply specific provisions of other special laws relating to
income taxation
10.2 Magna Carta for Disabled Persons (RA 7277)
10.3 Barangay Micro Business Enterprises (BMBEs) Act (RA 9178)
11. Differentiate and reconcile differences between tax rules and accounting rules (e.g.,
PFRS or other frameworks)
11.1 Identify and understand the differences between tax rules and accounting rules
11.2 Reconcile accounting income to taxable income
12. Analyze and determine tax implications of transactions by applying the tax rules and
regulations, and formulate sound tax planning strategies within legal and ethical bounds
to efficiently manage tax liabilities
D. TRANSFER TAXES 17.14% 12 1 7 2 2
1. Describe, analyze and compute estate tax
1.1 Describe the principles, concepts involving estate taxation
1.2 Identify the classification of decedents
1.3 Identify and analyze the items to be included and/or excluded in determining gross
estate
1.4 Identify and analyze the allowable deductions from gross estate
1.5 Analyze and compute tax due and determine tax credits, if applicable
1.6 Apply tax return preparation and filing and tax payment requirements
1.7 Determine compliance requirements
1.8 Analyze and determine tax implications of transactions by applying the tax rules
and regulations, and formulate sound tax planning strategies within legal and ethical
bounds to efficiently manage tax liabilities
2. Describe, analyze and compute donor’s tax
2.1 Describe the principles, concepts involving donor’s taxation
2.2 Identify and analyze transfers which may be considered a donation
2.3 Identify the classification of donors
2.4 Determine, analyze and compute net gifts/donations
2.5 Analyze and compute tax due and determine tax credits, if applicable
2.6 Apply tax return preparation and filing and tax payment requirements
2.7 Determine compliance requirements
2.8 Analyze and determine tax implications of transactions by applying the tax rules
and regulations, and formulate sound tax planning strategies within legal and ethical
bounds to efficiently manage tax liabilities
E. BUSINESS TAXES 17.14% 12 1 6 2 3
1. Describe, analyze and compute value-added tax
1.1 Describe the nature and characteristics of value-added tax
1.2 Analyze and determine persons subject to value-added tax
1.3 Analyze and determine transactions subject to 12%, 0% and withholding VAT
and/or exempt from value-added tax
1.4 Identify and analyze sources of input tax
36
1.5 Analyze and compute value-added tax payable or excess input tax credits and
determine tax credits, if applicable
1.6 Describe and apply the process for claiming input VAT refund
1.7 Apply tax return preparation and filing and tax payment requirements
1.8 Determine compliance requirements
1.9 Analyze and determine tax implications of transactions by applying the tax rules
and regulations, and formulate sound tax planning strategies within legal and ethical
bounds to efficiently manage tax liabilities
2. Describe, analyze and compute percentage tax
2.1 Describe the nature and characteristics of percentage tax
2.2 Analyze and determine persons subject to percentage tax
2.3 Analyze and determine transactions subject to and/or exempt from percentage tax
2.4 Analyze and compute percentage tax due, and determine tax credits, if applicable
2.5 Apply tax return preparation and filing and tax payment requirements
2.6 Determine compliance requirements
2.7 Analyze and determine tax implications of transactions by applying the tax rules
and regulations, and formulate sound tax planning strategies within legal and ethical
bounds to efficiently manage tax liabilities
3. Describe, analyze and apply specific provisions of other special laws relating to business
taxation
3.1 Senior Citizen’s Law (RA 7432)
3.2 Magna Carta for Disabled Persons (RA 7277)
F. EXCISE TAX 2.85% 2 1 1
1. Describe the nature and characteristics of excise tax
2. Identify and analyze transactions subject to and/or exempt from excise tax
3. Determine and compute for the tax base and tax due
4. Apply tax return preparation and filing and tax payment requirements
5. Determine compliance requirements
6. Analyze and determine tax implications of transactions by applying the tax rules and
regulations, and formulate sound tax planning strategies within legal and ethical bounds
to efficiently manage tax liabilities
G. DOCUMENTARY STAMP TAX 2.85% 2 1 1
1. Describe the nature and characteristics of documentary stamp tax
2. Identify and analyze transactions subject to and/or exempt from documentary stamp tax
3. Determine and compute for the tax base and tax due
4. Apply tax return preparation and filing and tax payment requirements
5. Determine compliance requirements
6. Analyze and determine tax implications of transactions by applying the tax rules and
regulations, and formulate sound tax planning strategies within legal and ethical bounds
to efficiently manage tax liabilities
H. TAXATION UNDER THE LOCAL GOVERNMENT CODE (Local Government Taxation and
Real Property Taxation under the Local Government Code) 5.73% 4 1 2 1
1. Describe the fundamental principles, scope of taxing power of local government units
(LGUs)
37
2. Describe and apply the scope and different types of local taxes (limited to real property
tax, local tax imposed by provinces, municipalities and cities, and barangays)
3. Identify the tax base and tax rates
4. Determine the venue and time of payment
5. Evaluate and apply the remedies available to the government and the taxpayer
6. Analyze and determine tax implications of transactions by applying the tax rules and
regulations, and formulate sound tax planning strategies within legal and ethical bounds
to efficiently manage tax liabilities
I. PREFERENTIAL TAXATION 11.43% 8 2 3 3
1. Describe, analyze and apply Special Economic Zone Act for purposes of determining tax
liabilities and tax incentives
1.1 Calculation of income tax (5% GIT, ITH incentives, regular income tax)
1.2 Other tax incentives (VAT/OPT, excise tax, DST, local taxes)
2. Describe, analyze and apply Bases Conversion and Development Act (BCDA) for
purposes of determining tax liabilities and tax incentives
2.9 Calculation of income tax (5% GIT, ITH incentives, regular income tax)
2.10 Other tax incentives (VAT/OPT, excise tax, DST, local taxes)
3. Describe, analyze and apply the Omnibus Investments Code for purposes of determining
tax liabilities and tax incentives
3.1 Calculation of income tax (ITH incentives, regular income tax)
3.2 Other tax incentives (VAT/OPT, excise tax, DST, local taxes)
4. Describe, analyze and apply the 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:
4.1.1 Royalties
4.1.2 Dividends
4.1.3 Interest
4.1.4 Capital gains
4.1.5 Business profits and other income items
5. Analyze and determine tax implications of transactions by applying the tax rules and
regulations, and formulate sound tax planning strategies within legal and ethical bounds
to efficiently manage tax liabilities
TOTAL 100% 70 21 28 21
38