Accounting practices and standards have evolved greatly over the years. Even certified Public Accountants (CPA) Standards in the Philippines have become competitive enough to meet the needs and demands of a global market.

History of CPA Standards

According to history, Philippine accounting practices dates back before the coming of the Spanish conquerors. Back then, Filipino entrepreneurs were already preparing accounting records based on cash receipts, debts incurred and payments. Soon, accounting practices of other countries shaped the accepted standards. Foreign who influenced us were the Americans, who came during the latter part of the 1800s. The American visiting forces established the both the formal public educational system and helped in formalizing of the various professional sectors.

As soon as US-owned businesses were established in the country (between 1920 and 1930), American standards in accounting practices were finally used. It was followed by the Accountancy Act of 1923 which created the Board of Accountancy in the Philippines (BOA). This government body has and continues to issue the certifications for CPAs.

Until the middle of the 1900s, CPA standards still mirrored those of the US accountancy standards. It was only in during the 1990s, when Philippine accounting and auditing standards begun to follow International Accounting Standards (IAS).

Standards followed by CPAs in the Philippines

Since the Philippines always followed US accountancy standards, the transition to international standards has been easy - especially if you compare the transitional stages of accountancy practices with the other nations in Asia. In a span of three years, the Philippines? transition from US accountancy standards to IAS became complete. With other Asian countries, the transitory period is still ongoing.

According to IAS and GAAP standards, CPAs in the Philippines are one of the best financial practitioners in the world.

These days, the standards followed by CPAs in the Philippines are multi-partied. These are standards from: ASC (Accounting Standards Council), BOA (Board of Accountancy), GAAP (Generally Accepted Accounting Principles), IAS (International Accounting Standards), PICPA (Philippine Institute of Certified Public Accountants), and the US FASB (Financial Accounting Standard Boards).

At Kanati Inc.

Here at Kanati Inc., our workforce is comprised of fully trained accountants who are well-versed with all the established accounting standards. Our trained professionals perform such accounting tasks like payroll; account reconciliation and settlement; billing and invoicing; financial reporting and bookkeeping.

The Spanish-American War began in Cuba in 1898 and soon reached the Philippines when Commodore George Dewey defeated the Spanish squadron at Manila Bay. Aguinaldo declared the independence of the Philippines on June 12, 1898, and was proclaimed head of state. As a result of its defeat, Spain was forced to officially cede the Philippines, together with Cuba (made an independent country, the US in charge of foreign affairs), Guam and Puerto Rico to the United States. In 1899 the First Philippine Republic was proclaimed in Malolos, Bulacan but was later dissolved by the US forces, leading to the Philippine-American War between the United States and the Philippine revolutionaries, which continued the violence of the previous years. The US proclaimed the war ended when Aguinaldo was captured by American troops on March 23, 1901, but the struggle continued until 1913 claiming the lives of over a million Filipinos