Archive for Economy
IFRS compliance: How far ahead (or behind) are we?
At present, there are approximately 117 nations that permit or require International Financial Reporting Standards (IFRS) for domestic listed companies, including listed companies in the European Union. Other countries, including Canada and India, are expected to transition to IFRS by 2011. Mexico plans to adopt IFRS for all listed companies starting in 2012. Some estimate that the number of countries requiring or accepting IFRS could grow to 150 in the next few years. Japan has introduced a roadmap for adoption that it will decide on in 2012 (with adoption planned for 2016). Still other countries have plans to converge (eliminate significant differences) with their national standards with IFRS. Having said this, it is becoming evident that the IFRS is rapidly gaining dominance as the global standard in the preparation of public company financial statements.
The IFRS, a set of accounting standards formulated by the International Accounting Standards Board (IASB) apply to the general purpose financial statements and other financial reporting by profit-oriented entities – those engaged in commercial, industrial, financial, and similar activities, regardless of their legal form. As IFRS becomes more widespread, CPAs, financial statement preparers and auditors will have to become informed and well-versed with the new rules and trends. Others, such as actuaries and valuation experts who are engaged by management to assist in measuring certain assets and liabilities, are not currently taught IFRS. To remedy this situation, they must be given comprehensive training and be lectured on the subject. This does not apply exclusively to auditors and accountants, but also to parties other than profit-oriented business entities who may also find IFRS appropriate.
In the Philippines, IFRS is being adopted locally as the Philippines Financial Reporting Standards (PFRS). This includes all applicable PFRS, Philippines Accounting Standards (PAS), Philippine Interpretations Committee (PIC)/Standing Interpretations Committee (SIC)/International Financial Reporting Interpretations Committee (IFRIC) Interpretations which have been approved by the Philippine Financial Reporting Standards Council (FRSC) and adopted by the Philippine Securities and Exchange Commission (SEC). PFRS and PAS are based on the IFRS and IAS issued by the IASB. Consequently, these changes have greatly affected the business community and its affiliated industries. This has elicited several reactions, some adverse, to the costs and effort required to comply with the new set of standards. Who is going to account for the cost needed in order to adopt these standards? How vast are its effects on smaller enterprises? Is it really worth it in the long run?
These questions and more will be addressed to in the 2nd Bookkeepers Congress, happening this May 6 and 7, 2010, at the SMX Convention Center. Entitled “Gearing the Bookkeeping Industry towards Global Competency”, the event is aiming to empower the bookkeeping industry towards becoming globally knowledgeable and thus professionalizing this industry which, as others might have overlooked, plays a vital role in the business industry. This event is that is beneficial not only for bookkeepers but also anyone and everyone involved in performing, monitoring and maintaining business and accounting process such as finance managers, finance officers, accountants, accounting managers, cost accountants, cost analysts, budget analysts, systems analysts, auditors, financial planners and finance, management and accounting students, among others.
Organized by Entrepreneurs Accounting Academy, this year’s featured speaker is international IFRS expert Bobbe Barnes, an educator and consultant with many years of professional experience in IFRS, US GAAP and certification training around the world. Along with other guest speakers Bureau of Internal Revenue (BIR) Commissioner Joel Tan –Torres, who will be speaking on “The Impact of PFRS Adoption on Philippine Taxation” and Rosalinda D. Evangelista, PhD., CPA, sought-after educator, consultant and speaker on the Philippine Reporting Standards (PFRS).
Don’t pass up on attending this event. Visit the official 2nd Bookkeepers Congress website for more details about this event, and register online here!
Strong remittance inflow to continue in aiding RP economy
Our overseas workers are known to make headlines wherever they’re designated. Dubbed as the country’s “new heroes”, what was previously seen in a less noble light is now seen as one of the key factors that help curb the economic crisis in the country. Of course, the silver lining that surrounds the “heroic” aspect is indispensable – (some OFWs being known for more infamous reasons) but objectively speaking, whether they grace the headlines with infamy or courageous acts of honesty and heroism, the fact remains that their remittances have proved to be a huge contribution to Philippine economy.
OFW remittances played a huge role in saving the economy of amidst the worldwide economic recession. “Healthy remittances and government spending are expected to support the Philippine economy,” Jong Wah Lee, ADB chief economist told in a briefing. ADB also maintained its growth forecast of 3.3 percent for this year.
Metrobank also stated in its latest Economic Weather Report that the said the robust growth in remittances would boost the peso and the domestic economy. “Remittances, which could post double-digit growth this year, amid better economic conditions, would give support to the peso,” the lender said. While remittances generally help promote economic development by giving access to financial services for the sender and recipient, the country still faces many economic challenges left over by the series of typhoons from last year.
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Intimidated by number-heavy financial spreadsheets and reports? EAA’s Financial Analysis Tools & Techniques Seminar is becoming increasingly vital in equipping business decision-makers with the proper knowledge needed to interpret business situations and apply financial principles. In just one intensive day of training, you’ll become fully versed in the financial analysis tools and techniques you need to properly assess business risks and opportunities. Click here to register or find out more about the seminar.
Economic growth in developing countries looking brighter than expected this year
As opposed to bleaker previous economic forecasts made in the last quarter of 2009, the International Monetary Fund (IMF) yesterday released a new and more optimistic forecast of economic activities for this year. In its reports, the IMF stated that recovery in advanced economies “is still expected to be weak by historical standards, with real output remaining below its pre-crisis level until late 2011,” but emerging and developing countries will have relatively more vigorous activities due to strong internal demands. The IMF also expects inflation rates to be kept at a minimum in most economies due to excess capacity.
Some of these countries in particular include Southeast nations such as Thailand, Indonesia and the Philippines. According to a study conducted by the Asian Development Bank (ADB), “prospects for 2010 look relatively good in the Philippines with domestic factors such as rebuilding work in the wake of two devastating typhoons in 2009, and national elections, likely to fuel growth”.
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Want to know the factors that control your costs? Or for consumers, do you wish to have a better grasp of the real deal between costing and pricing? Attend our Costing & Pricing Seminar and find out how commodity pricing is determined, or for business decision-makers, check to see if your prices are within the normal market range. Sign up here to explore the various costing and pricing methods, and see how it affects your business and consequently, your budget.
The 2nd Bookkeepers Congress 2010: Gearing the Bookkeeping Industry towards Global Competency
Calling all bookkeepers, finance managers, finance officers, accountants, accounting managers, cost accountants, cost analysts, budget analysts, systems analysts, auditors, financial planners and students in finance, management and accounting: the countdown to The 2nd Bookkeepers Congress begins now!
Following the response to the need for adequate training for all those concerned with and involved in the bookkeeping/accounting process, the Entrepreneurs Accounting Academy proudly presents the 2nd Bookkeepers Congress, which will be held on May 6-7, 2010, at the SMX Convention Center. This 2-day event themed “Gearing the Bookkeeping Industry towards Global Competency”, aims to create a venue where not only bookkeepers, but also accounting/finance professionals and students, can be kept abreast with the latest news, trends and significant changes in the industry.
This year, we anticipate an exciting and productive congress as its objectives are focused on the following:
- Discussing the International Financial Reporting Standards (IFRS) and their most recent developments in detail, as well as the impact of these changes on Sarbanes Oxley (SOX) Compliance
- The implications of IFRS adoption on the Philippine taxation system
- Updates from SEC on the adoption of IFRS
- Emphasizing the importance of having bookkeepers become well-versed in and knowledgeable with these updates in order to become globally competitive
In order to achieve that, we have invited one of the world’s leading IFRS experts, Ms. Bobbe M. Barnes, an educator and consultant with many years of professional experience in IFRS, US GAAP and certification training around the world, to be the event’s main speaker (click here to view Bobbe Barnes’ complete profile).
Become a part of this historical event! Visit the official website, Bookkeeperscongress.com to find out the most convenient ways on which you can register.
Some things entrepreneurs (or would-be entrepreneurs) might want to know about this year
Whether you’ve been in the business or entrepreneurship industry for years, or have just started toying with the idea of putting up a business as another (or sole) source of income, knowing the financial and economic trends could become a factor to how well your business could do this year.
In an article called “The entrepreneur’s gut feel for 2010” by Ned Roberto and Ardy Roberto for Inquirer.net, they discuss some scenarios that will most likely happen to the business sector that will affect both sellers and consumers. One such scenario is that from a wide perspective, money will continue to flow in from OFWs all over the world as opposed to what the World Bank predicted for this year, says economist Bernardo Villegas. In fact, there’s even an increase in remittances. Why? Because among all the workers laid off in a number of countries around the world due to the recession, Filipino OFWs are not among them.
Another piece of good news is that Banks are reporting that Filipinos are becoming more “savings savvy”. There has been a noticeable double-digit growth in savings deposits, which is indeed a good sign for us Filipinos who have previously been dubbed as one of the worst savers in Asia. On the spending side, ironically, trends point towards an increase of sales in luxury products this year. Particularly “feel-good” products will most likely be popular among middle class consumers, such as those affected by the recent flooding brought about by Pepeng and Ondoy. Concerts and movies are also predicted to make a comeback this year, so for music and film aficionados, this year looks promising (especially for those involved in this industry, sales are going to look pretty bright for them in this aspect).
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Are there some business ideas brewing in your head but not equipped with the necessary tools on how to get started? Entrepreneurs Accounting Academy is eager to help you out – register for our Entrepreneurship Seminar which we will be offering for free. All you have to take care of is a fee of 500Php (for snacks, lunch and training kit), and you will be receiving a comprehensive yet practical guide towards a booming career in entrepreneurship. In this seminar, you will be informed about all the necessary requirements needed to start up, manage and turn your business idea into an income-generating enterprise. Click here to register and find out more about this seminar.
Be in command of your own cash flow in 2010
Good news for entrepreneurs –expert economists foresee a more notable economic recovery for the country this year. Although the economic curve might not be as steep as the those in the past, it is undoubtedly looking much brighter than the one seen in 2009.
A good entrepreneur knows that positive business returns aren’t exclusively dependent on economic trends, but also heavily dependent on good business management. Having cash readily on hand is just one step of the process, but steering it towards becoming an income-generating tool requires proper execution, sound decision-making skills and effective cash flow management. Having a positive cash flow enables businesses to be sustained not only on a short-term basis, but to prosper and expand its potentials.
For both entrepreneurs and consumers, are you looking for new, creative ways to make your money work better for you this year? Entrepreneurs Accounting Academy is eager to help you out with its Cash Flow Management Seminar, which will help you understand both the constant elements and the changing dynamics of cash flow management. Ready to equip yourself with the skills and knowledge needed for a more prosperous year ahead? Click here to find out more!
Consumer prices seen to rise in 2010
Jan. 5 – Consumer price in the Philippines has reached its peak after eight straight months, with inflation progressing in the last month of 2009 particularly in commodities such as oil and food costs. Since the Philippines depends mainly on its imports of oil, the 60% increase within a span of twelve months is not surprising.
Experts, however, show pessimism about the Philippines’ economic recovery which appeared to be slow, and it is anticipated to retain this pacing until the third quarter of this year. The inflation rates have placed some pressure on the central bank to start raising interest rates from its low records in order to control inflationary pressures. However, consumers will be relieved to know that interest rates will be the last thing to change this year, according to Diwa Guinigundoi the central bank deputy governor. The central bank is also keeping watch of the increasing interest rates in order to control the accelerating inflation especially with energy and food prices continue to rise.
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Are your margins what you think they are? Are price wars an imminent threat to your organizations revenues and profit? How do we design our systems in such a way that we maintain a balance between our prices and our costs relative to market levels? For consumers, is the best price the best choice? Entrepreneurs Accounting Academy invites you to register for our comprehensive Costing & Pricing Seminar, which would answer these questions and give you practical strategies in costing and pricing methods.
Philippine economy to bounce back in 2010
Now that the holidays are over, its time to get back in the game and take a look at what lies ahead in the year 2010. With the combination of the various tragedies, calamities and atrocities that have taken place in the Philippines last year, Filipinos approach the New Year with either open arms and a sigh of relief, or fear and skepticism.
In the economic aspect at least, Filipinos can look forward to a year that seems to bring promising improvements. According to National Economic Development Authority (NEDA) Director Dennis Arroyo, the country is heading for rebound by 2010 even assuming that the global recession lingers, with election-related spending mainly feeding growth.
According to Arroyo, some of the undertakings expected to bear fruit in 2010 include the following:
- Completion of infrastructure projects constructed starting 2007, particularly the North Luzon Expressway, Subic-Clark-Tarlac Expressway and new Metro Rail Transits (MRTs).
- Benefits of the FIELDS project of the Department of Agriculture meant to improve agricultural productivity. (FIELDS stands for Fertilizer, Irrigation and other rural infrastructure, education and extension work, Loans, Dryers and other post-harvest facilities, and Seeds)
- A boom in several industries such as offshoring and outsourcing, real estate, tourism, mining, renewable energy and retirement estates.
- An increase in demand for overseas Filipino workers (OFWs) due to demographics of the aging population around the world like Canada, Korea, Japan, Singapore and the United States.
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Entrepreneurs Accounting Academy wishes everyone a Happy and prosperous New Year! With the holidays over, we’re back in business with our training and seminar offers. EAA will be holding a Budgeting and Forecasting Seminar, which is a course aimed at delegates who are, or soon will be, actively involved in budgeting and who want to understand how to make this management tool work to best effect in their organization. What better way to start than year than by planning and managing your resources? Click here to sign up or know more about this highly informative and interactive seminar.
Making major business decisions? Do the math first.
Toying with the idea of starting up your own business in the coming year but clueless about the financial viability of your business plan? Or for current business owners, are you pondering on making changes in your current business setup to either increase income or to offset losses?
Among the many details that entrepreneurs need to flesh out in order to keep the business running smoothly, Financial Analysis is one of the key aspects needed when making major decisions. Especially in today’s highly competitive business environment, it is vital to be well-versed in analyzing your financial statements and reports.
Entrepreneurs Accounting Academy offers a seminar on Financial Analysis Tools and Techniques. In just one intensive day of training, you’ll become fully versed in the financial analysis tools and techniques you need to properly assess business risks and opportunities. Never again will you be intimidated by financial spreadsheets and reports!
Calling all aspiring bookkeepers: The accounting and finance industry needs YOU
In any business organization – whether it’s a massive corporation or a modestly-sized start-up business, having a systematic and organized financial tracking isn’t an option to keep things running smoothly – it’s a MUST. Not everyone is willing or too eager to deal with the responsibility of having to handle all the numbers and figures involved in recording and archiving financial transactions, but learning the process isn’t impossible. Bookkeeping, or this process that deals with organizing all the details of financial transaction records, is the prerequisite of having a problem-free accounting track record within a company. Bookkeepers file all transaction records: receipts, canceled checks, sales, purchases, cash disbursements, etc. and make sure that your books remain organized and balanced before turning the records over to the accountant who generates monthly financial statements.
Here in the Philippines, accountants and bookkeepers are listed under the most in demand jobs category, according to a survey conducted by the Department of Labor and Employment (DOLE) in 2007. In USA, UK, Australia & Canada the salary of a bookkeeper ranges from $ 26,627 to $ 39,217 annually. That is Php 1.2 million to Php 1.8 million a year. Certified Bookkeepers (CB’s) are to bookkeeping what CPA’s are to accounting: the elite of the profession, with high chances of upward mobility within a business organization.
Entrepreneurs Accounting Academy offers a Bookkeeping Course which will equip the students with the technical knowledge and skills necessary to perform different accounting functions and processes, including the identification and recording of business transactions, preparation, analysis and communication of financial information for business decision making. Graduates of this course will be ready to assume an entry-level position in the field of accounting, finance and general administration found in any type of organization, whether from private, government or non-government organization, or from retail, service or manufacturing industry. This course is has a TESDA-accredited Level III National Certification which is recognized locally and internationally. The normal course duration is one (1) year under the Trimestral Program but can be finished within five (5) months under our Fast Track Program. Enroll now and invest in a good future in the field of finance and accounting, and discover the career opportunities that lie ahead.
