Revenue Regulations No. 19-2011

BIR issued Revenue Regulations No. 19-2011 on December 9, 2011 prescribing the new Income Tax forms that will be used for Income Tax Filing covering and starting with Calendar Year 2011, modifying Revenue Memorandum Circular No. 57-2011.

RR19-2011

SEC i-Register

This blog had been receiving a lot of queries about on-line SEC registration.  However,  sad to say the SEC i-Register only offers reservation of your proposed company name or selected name for a non-stock or your desired name for a certain corporation for a particular industry.

SEC Registration Requirements for Stock Corporation

Here are the requirement that you need to prepare in connection with the registration of a stock corporation with the Philippine Securities and Exchange Commission (SEC).

1) COVER SHEET

2) NAME VERIFICATION SLIP

3) BANK CERTIFICATE OF DEPOSIT OF PAID-UP CAPITAL (notarized in the place executed)

4) ARTICLES OF INCORPORATION

5) TREASURER’S AFFIDAVIT

6) BY-LAWS

7) UNDERTAKING TO CHANGE NAME (not required if provided in the Articles of Incorporation)

HOWEVER, additional requirements such as: (1) Indorsement/clearance from other government agencies, if applicable (2) For corporations with foreign equity, submit proof of inward remittance by non-resident aliens and foreign corporate subscribers who    want to register their investment with BSP; (3) For corporations with more than 40% Foreign equity, submit SEC Form No. F – 100; (4) For corporations with Phil. Economic Zone Authority (PEZA), Subic Bay Metropolitan Authority (SBMA) or other economic zones application, attach Certificate of Authority or indorsement from said government agencies.

Of course, as of my last inquiry,  the cost associated with the registration are (1) Filing Fee:  1/5 of 1% of the Authorized Capital Stock but not less than Php1,000.00 (2) By Laws: Php510.00 and (3) Legal Research Fee:  1% of Filing Fee but not less than Php10.00.

The AASC alert and the RR 15-2010

A copy of alert from the Auditing and Assurance Standards Council (AASC) has been in my inbox a week ago and its only now that I find time to write for this blog about another topic. Anyhow, I am sharing you this alert for your information and reference. Find time to download and read this for it is so informative. The alert talks about the required information in compliance with RR 15-2010. It also talks about the disclosures required under the PFRS and RR-15 2010 and even the proper presentation of the  financial statements. Furthermore, and take note, you can find in the appendix of the AASC alert an illustrative Audito’s reports like the one below and other examples.

INDEPENDENT AUDITOR’S REPORT

The Board of Directors and Stockholders

Name of CompanyAddress

Report on the Financial Statements

We have audited the accompanying financial statements of [name of company], whichcomprise the statements of financial position as at December 31, 2010 and 2009, and thestatements of income, statements of comprehensive income, statements of changes inequity and statements of cash flows for the years then ended, and notes, comprising asummary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with Philippine Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud orerror.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudits. We conducted our audits in accordance with Philippine Standards on Auditing.Those standards require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether the financial statements are freefrom material misstatement.Page 6 of 14An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness ofthe entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements present fairly, in all material respects, thefinancial position of [name of company] as at December 31, 2010 and 2009, and its financial performance and its cash flows for the years then ended in accordance with Philippine Financial Reporting Standards.

Report on the Supplementary Information Required Under Revenue Regulations15-2010

Our audit was conducted for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplementary information on taxes, duties and license fees in Note X to the financial statements is presented for purposes of filing with theBureau of Internal Revenue and is not a required part of the basic financial statements.Such information is the responsibility of management. The information has beensubjected to the auditing procedures applied in our audit of the basic financial statements.In our opinion, the information is fairly stated in all material respects in relation to thebasic financial statements taken as whole.

Date of the Auditor’s Report

Auditor’s address

You can download the AASC alert in here AASC Alert 002 of 2011 – QA on RR 15-2010 03-11-11.

Think BIG!

I am not promoting this site, but I think it’s worth visiting and browsing.  The site is called “BIG” or “Breakthrough Innovation Grant“. The organizers of the site are inviting Entrepreneurs and Owners of Small and Medium Sized Businesses to simply submit an innovative business idea that will alleviate poverty in the Philippines.  Wow, this is amazing di ba?

Heto pa, according to the site the winner will be given U$20,000, in cold cash? or if we calculate this using an exchange rate of U$1:Php50, its a Php1.0M na tumatanginting!  And the thing is it is so simple -  all you have to do is to submit your innovative business ideas, take note, your proposals must be innovative, resourceful, scalable, and fit the particular needs of the Philippines to drive wealth creation plus it will serve as a as drivers for poverty alleviation and social improvement.

If you browse through the site, the entries’ tab, you will notice that there are already a quite a number of entries.  I have not gone reading the entries, but I think the participants posted good business ideas.  You may crunch an idea just by reading it.  Who knows? Copying is not evil, just put a sense on it.

One thing I noticed on the site, however, is that the criteria for judging for a certain project are too broad — it must be innovative, resourceful, scalable, and fit the particular needs of the Philippines to drive wealth creation.  There must be a certain-specific percentage of something or what not.  And the thing is, everyone, all the participants seems making their stuff on the top by the number of likes?

Anyhow, the finalists will be announced on April 1, 2011. So, pwede pa… go, submit if you have one.