ASEAN Integration and MRA on

Accountancy Services: Boon or

Bane?

BOA Chairman Joel L. Tan-Torres

OBJECTIVES OF MRA
1. Facilitates mobility of accountants within ASEAN
2. Enhances exchange of information or networking
3. Promotes adoption of best practices on standards
and qualifications
4. Provides opportunities for capacity building and
training
Major events on the MRA

 Signing of the General Agreement on

Trade in Services in 1994
 Signing of the ASEAN Framework Agreement
on Services in 1995
 Convening of the ASEAN Coordinating
Committee on Services (to date has
concluded 82 meetings)
Time line of the MRA on Accountancy services

 2009 start of discussions

 Bi-annual meetings thereafter
 17th meeting of the Accountancy
Experts Group on May 2015 in
Cambodia
 Signing of the MRA by the 10 countries
last November 2014
 1st meeting of ASEAN CPA Coordinating
Committee last September 2015
Key Features of MRA on Accountancy services

 Follows template of 5 MRAs that have

earlier been approved and implemented
 Has undergone extensive discussion by the
Experts Group coming from the ten
ASEAN countries
 MRA has provisions to safeguard the interest
of the local practice
Basic Features of MRA on Accountancy services

 Objectives and Definition of Terms

 Scope (with limitation on independent auditor and
collaboration requirement)
 Qualifications and eligibility (first phase)
 Evaluation and assessment (second phase)
 Permit to practice in host country (third phase)
 Monitoring of practice (Last phase)
Basic Features of MRA on Accountancy services

 Provides for registration as ASEAN Accountant

(ACPA)I n the ASEAN Accountant Register
 Various bodies involved in inplementation:
 National accountancy body (PICPA)
 Professional Regulatory Authority (BoA)
 Monitoring Committee
 ASEAN Chartered Accountant Coordinating
Committee


Safeguards to protect the local public practice

 Limits practice to collaboration

 Does not allow public practice
 Does not allow practice in the form of partnership
or corporate form
 Requires similar competency, assessment, minimum
work experience, continuing professional
development requirements for foreign accountant
 Requires the issuance of STP
Moving forward

 Setting up Monitoring Committee, Secretariat

and Technical Working Group
 Finalization of Assessment Statement
 Conduct of awareness and information campaign
 Training and development to prepare for foreign
accountants entry to the Philippines and Filipino
CPAs to ASEAN countries
 ASEAN MRA
Development Roadmap
Food for thought

 Era of protectionism is over…liberalization is the

name of the game
 Filipino accountants have a comparative advantage
over their ASEAN neighbors
 However, Filipino accountants should be ready to
take advantage of opportunities and address the
threats
Food for thought

 Be aware…be informed…be prepared….MOVE

 BoA will provide leadership in efforts
 Information Campaign—social network, 3A series
 Streamlining regulatory framework—Accountancy Curriculum, Licensure
Examination, CPD, QAR, Accreditation, Standards, Regulatory mechanisms
and structure
 Emphasis on quality, governance, ethics, effective regulation
 PICPA and sectoral organizations should be pro-active
 Conduct CPD sessions on MRA, quality, governance, ethics, regulatory
 Adopt KPIs for chapters to benchmark
Food for thought

 ALL ACCOUNTANTS SHOULD DO THEIR SHARE

 Have the initiative to know what are the developments in the
profession
 Be involved in PICPA and sectoral organization initiatives
 If sole practitioner, explore consolidation/merger opportunities
 Be aware of local and ASEAN opportunities in various sectors
 Grab these opportunities
 Be aware of local and ASEAN threats in various sectors
 Individually, as a sector, and as a profession, cooperate to handle the
threats and benefit from the opportunities