Insights That Illuminate. Advice That Empowers.

The Philippines’ journey toward a robustly regulated yet innovative financial landscape took another significant step this month, as the Securities and Exchange Commission (SEC) approved the entry of local financial technology (fintech) firm Blockshoals Technologies, Inc. into its regulatory sandbox.

Blockshoals becomes the fourth entity to utilize the SEC’s StratBox—a facility designed to allow tech-focused firms to test novel products and services in a live, but strictly controlled, environment for a period of up to 24 months. The move signals the regulator's proactive approach to embracing disruptive technology, particularly in the burgeoning sector of virtual assets.

The Mechanism of Innovation

The approval, granted by the Commission En Banc on November 12, is consistent with the framework established under SEC Memorandum Circular No. 9, Series of 2024. This circular is the foundation for the StratBox, a program critical to balancing market innovation with the commission's core mandate of investor protection and market integrity.

A key feature of the StratBox is the ability for the SEC to grant regulatory relief. This means the Commission can temporarily modify or replace specific licensing, registration, or compliance requirements that would normally apply, allowing innovative business models to be safely trialed before a potential wider public rollout.

Blockshoals, a Philippine-based technology and infrastructure intermediary for virtual asset services, has partnered with a global crypto exchange to operationalize its StratBox proposal. This positioning suggests the testing will focus on critical infrastructure elements necessary for secure and compliant virtual asset transactions, a timely development given the increasing local and global interest in cryptocurrency and blockchain applications.

Diversifying the Digital Market

Blockshoals' entry introduces virtual asset infrastructure to the sandbox, diversifying the range of financial products being tested. Prior participants have already explored other high-growth areas:

• Two firms are currently testing services related to the offering of United States equities, broadening investment access for local Filipinos.
• One firm is focusing on the emerging field of tokenized real estate, a groundbreaking use case for blockchain technology in asset fractionalization.

In a recent statement, the SEC underscored its commitment to this strategic initiative: “The SEC continues to review other applications, and remains open to receiving more proposals for its regulatory sandbox, as part of the Commission’s commitment to advancing innovations in the capital market.”

By providing a structured pathway for testing technologies like those proposed by Blockshoals, the SEC ensures that innovation in the capital market is fostered responsibly, paving the way for a more competitive and technologically advanced financial future in the Philippines.

Reference: Information derived from the statement released by the Securities and Exchange Commission (SEC) regarding the StratBox approval for Blockshoals Technologies, Inc., as reported by the Philippine News Agency on November 18, 2025.

 The International Auditing and Assurance Standards Board (IAASB) has announced the release of the 2025 edition of its Handbook of International Quality Management, Auditing, Review, Other Assurance, and Related Services Pronouncements, a comprehensive resource that consolidates the latest global standards shaping the future of audit and assurance.

A Five-Volume Framework for Global Practice

The 2025 Handbook is structured into five volumes, each addressing critical dimensions of the profession:

• Volume 1: International Auditing Practice Notes (IAPNs), International Standards on Auditing (ISAs), and International Standards on Quality Management (ISQMs) — foundational guidance for audit quality and execution.
• Volume 2: ISA for Less Complex Entities (LCE) — a tailored standard designed to simplify audits for smaller organizations while maintaining rigor.
• Volume 3: International Standard on Sustainability Assurance (ISSA) 5000 — a groundbreaking standard that sets general requirements for sustainability assurance engagements, reflecting the growing importance of ESG reporting.
• Volume 4: ISAEs, ISREs, and ISRSs — standards governing assurance, review, and related services engagements.
• Volume 5: Framework for Audit Quality and International Framework for Assurance Engagements — conceptual guidance on the elements that foster a culture of audit quality worldwide.

Standards on the Horizon

The Handbook also includes several not-yet-effective standards, signaling the IAASB’s forward-looking approach:

• ISA 240 (Revised): Strengthening auditors’ responsibilities in detecting and responding to fraud.
• ISA 570 (Revised 2024): Updated guidance on going concern assessments, a critical area in today’s volatile economic climate.
• ISSA 5000: Establishing a global baseline for sustainability assurance, aligning with investor and stakeholder demands for credible ESG disclosures.

The release of the 2025 Handbook underscores the IAASB’s role in harmonizing international audit and assurance practices. By addressing both traditional financial reporting and emerging areas such as sustainability, the Handbook equips practitioners with tools to navigate complexity, enhance trust, and deliver assurance that meets the evolving expectations of regulators, investors, and the public.

The Handbook is available for digital download in PDF format, with print copies accessible via the IAASB website. This dual availability ensures broad access for firms, regulators, academics, and professionals committed to maintaining high-quality audit and assurance practices.

The IAASB’s 2025 Handbook is more than a technical update—it is a strategic blueprint for the profession’s future. By embedding sustainability assurance alongside fraud and going concern revisions, the IAASB signals a decisive shift toward relevance, resilience, and responsibility in global auditing.

At C. P. C. Escaño & Co., Certified Public Accountants, we affirm our full commitment to upholding and complying with the standards set forth in the IAASB 2025 Handbook. These pronouncements form the foundation of our audit and assurance practices, guiding our approach to quality management, sustainability assurance, and stakeholder trust. By embedding these standards into our systems and engagements, we ensure that our work consistently reflects global best practices, regulatory alignment, and the highest level of professional integrity. 

In a bold move to enhance transparency and accountability, the Securities and Exchange Commission (SEC) is preparing to roll out a blockchain-based platform aimed at revolutionizing the authentication process for corporate filings. This initiative comes as part of the ongoing efforts to integrate advanced technologies into government processes, ensuring secure and immutable documentation for businesses and other stakeholders.

The SEC unveiled its plans on the "Blockchain-Based Digital Signing and Authentication of SEC Documents." The platform, named VERITAS (Verification of Electronic Records and Information Trust and Authentication System), will enable corporations to securely sign and authenticate their reports and other documents filed with the SEC using blockchain technology.

VERITAS is a blockchain-powered digital signature platform that leverages public-key cryptography to offer a higher level of security for SEC-related documents. It records all digital signing events on a decentralized ledger, ensuring that each document is timestamped, cryptographically verified, and immutable. This system aims to prevent document tampering and fraud, offering a robust solution for corporate filings.

SEC Chairman Francis Lim explained that the move to blockchain technology aligns with the Commission’s commitment to both security and digital transformation. “By integrating blockchain-based digital signing and authentication into our processes, we aim to strengthen the integrity and reliability of reports and documents submitted by corporations,” Lim said. He further emphasized that this initiative would not only enhance security but also reduce paperwork and processing time, streamlining SEC operations.

The SEC's proposed guidelines for the adoption of VERITAS aim to integrate this new platform into the existing electronic systems, such as eSECURE (the SEC's digital identity and credentialing system) and eSAP (the Electronic Submission Authentication Portal). These systems currently allow individuals to register their corporations online, eliminating the need for paper-based documentation or wet signatures.

With VERITAS, however, the SEC plans to move beyond the current reliance on one-time passwords for document authentication. The platform will introduce end-to-end encryption, multi-factor authentication, and cryptographic signing, which will require users to authenticate documents using their private keys. These measures ensure that only authorized individuals can sign documents, preventing unauthorized access or tampering.

To access VERITAS, users will need to create an account through eSECURE, where they will undergo a mandatory credentialing process. This includes submitting verified government-issued identification and completing a liveness detection protocol to ensure that the person requesting authentication is indeed the rightful individual.

VERITAS will be available to all individuals involved in SEC filings, including incorporators, directors, officers, authorized representatives, and anyone else submitting documents to the Commission. The platform will also cover various entities, such as corporations, partnerships, and other juridical entities registered with the SEC, as well as the SEC personnel involved in processing and verifying electronically submitted documents.

The documents eligible for digital signing and authentication through VERITAS include Articles of Incorporation, Certificates of Authentication, General Information Sheets, Board Resolutions, Financial Statements, and other filings requiring SEC approval.

One of the most significant benefits of this blockchain-based platform is the legal standing of digitally signed documents. According to Republic Act No. 8792, or the Electronic Commerce Act, documents signed and authenticated through VERITAS will hold the same legal weight as signed and notarized paper documents, unless the law explicitly demands physical notarization or another specific form of authentication.

This means that, once implemented, businesses can conduct their SEC transactions digitally, without needing to submit physical copies of documents, making the process faster and more efficient.

While VERITAS will be an optional tool during its initial phase, the SEC may eventually mandate its use for specific filings or entities. This phased approach will give businesses time to adjust and adopt the new system before it becomes a requirement.

The Commission hopes that by integrating blockchain technology into its operations, it will not only improve security but also demonstrate the broader potential of blockchain for other government agencies.

The SEC’s adoption of VERITAS marks a significant step toward enhancing digital security, reducing bureaucratic hurdles, and embracing blockchain technology in government services. As the platform continues to evolve, it will serve as a model for other agencies and private entities to follow in the pursuit of secure, transparent, and efficient digital transactions.

This website does not claim ownership of the material and does not provide legal advice, opinions, or interpretations. For authoritative reference, please consult the Official Gazette or other official government publications.

SEC ALL SET TO ADOPT BLOCKCHAIN FOR AUTHENTICATION OF DIGITAL FILINGS - Securities and Exchange Commission
 

In today’s rapidly changing business environment, the ability of an organization to continue operating is more critical than ever. To strengthen public trust in audits and enhance transparency in financial reporting, the International Auditing and Assurance Standards Board (IAASB) has released ISA 570 (Revised 2024), Going Concern — a significantly updated standard that sharpens the auditor’s responsibility in evaluating whether a company can continue as a going concern.

The going concern principle assumes that a business will remain in operation and meet its obligations as they fall due. However, recent years have revealed how swiftly market, environmental, and economic disruptions can challenge this assumption.

ISA 570 (Revised 2024) responds to these realities by enhancing the auditor’s approach to evaluating management’s assessment of going concern. It ensures that auditors obtain sufficient and appropriate evidence, identify early warning signs, and communicate potential risks with greater transparency.

The revised standard introduces several important improvements aimed at improving audit quality and the reliability of financial information:

• Expanded Risk Assessment Procedures:
  Auditors must now perform a more detailed analysis of both internal and external factors that could cast significant doubt on a company’s ability to continue as a going concern. These include financial pressures, regulatory changes, economic shifts, or even cyber incidents.
  
• Stronger Evaluation of Management’s Assessment:
  Auditors are required to thoroughly evaluate the method, assumptions, and data used by management when assessing going concern. This ensures that judgments are reasonable, transparent, and based on reliable information.
  
• Enhanced Reporting and Transparency:
  The revised ISA 570 mandates clearer disclosures in the auditor’s report. If a material uncertainty exists, auditors must include a specific section explaining the nature of the uncertainty and its possible implications on the financial statements.
  
• Improved Communication with Governance Bodies:
  The new standard emphasizes timely and effective communication between auditors, management, and those charged with governance. This ensures that concerns about business viability are addressed early and adequately disclosed.
  
• Comprehensive Documentation:
  Auditors must maintain detailed documentation of the judgments made, procedures performed, and conclusions reached. This strengthens audit accountability and consistency across engagements.

ISA 570 (Revised 2024) marks a major step forward in ensuring that audits reflect not only financial results but also the long-term sustainability of organizations. It empowers auditors to act as early detectors of potential financial distress, ensuring that stakeholders are well-informed about the risks an entity faces.

By reinforcing professional skepticism and encouraging robust dialogue, the revised standard helps protect the public interest and rebuilds trust in financial reporting. It also aligns with global efforts to improve corporate governance and risk management practices.

ISA 570 (Revised 2024) takes effect for audits of financial statements for periods beginning on or after December 15, 2026.

Audit firms are encouraged to adopt the standard early to enhance their audit methodologies, update training programs, and strengthen quality control systems in preparation for full implementation.

To explore the full details of ISA 570 (Revised 2024), Going Concern, visit the International Auditing and Assurance Standards Board (IAASB) website for official resources and guidance materials.

The International Auditing and Assurance Standards Board (IAASB) has issued International Standard on Auditing (ISA) 240 (Revised), The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements. This revised standard enhances how auditors identify, assess, and respond to fraud risks, emphasizing the importance of professional skepticism, sound judgment, and transparency in financial reporting. It becomes effective for audits of financial statements for periods beginning on or after December 15, 2026.

ISA 240 (Revised) outlines the auditor’s responsibilities in addressing the risk of material misstatement caused by fraud. While management and those charged with governance are primarily responsible for preventing and detecting fraud, auditors must evaluate whether such fraud could affect the financial statements.

The standard requires auditors to obtain reasonable assurance that financial statements are free from material misstatement—whether due to error or fraud. It also works in conjunction with other core standards such as ISA 200, ISA 220 (Revised), ISA 315 (Revised 2019), and ISA 330 to create a cohesive and reliable framework for auditing.

The revised standard introduces improvements that strengthen audit quality and fraud detection. These include:

• Professional Skepticism – Auditors are expected to maintain an alert, questioning mindset throughout the engagement, recognizing that fraud may be intentionally concealed.
  
• Stronger Fraud Risk Assessments – Auditors must assess risk factors such as incentives, opportunities, and rationalizations that could lead to fraud.
  
• Focus on Management Override of Controls – Special attention is given to journal entries, accounting estimates, and unusual transactions that could indicate manipulation.
  
• Improved Communication – Auditors are required to report suspected or identified fraud to management, those charged with governance, and regulators when appropriate.
  
• Enhanced Documentation – The standard emphasizes detailed documentation of the auditor’s assessments, procedures, and conclusions to support accountability and transparency.
  

The revision of ISA 240 responds to growing global concerns about fraud and the evolving complexity of financial reporting. It strengthens public trust in audits by promoting consistency, ethical conduct, and professional skepticism across engagements.

For auditors, this revision is a reminder to go beyond routine procedures and to apply deeper analysis, professional judgment, and critical thinking. For the public, it offers reassurance that auditors are taking stronger measures to detect fraud and uphold financial integrity.

ISA 240 (Revised) applies to audits of financial statements for periods beginning on or after December 15, 2026. Early adoption is encouraged for firms that wish to align their audit methodologies with the updated guidance. Firms are advised to:

• Review existing quality management and risk assessment procedures;
• Update internal training and documentation processes; and
• Strengthen communication channels with governance bodies and regulators.

Fraud undermines confidence in financial reporting and poses serious risks to organizations and investors alike. ISA 240 (Revised) reinforces the auditor’s vital role in identifying and responding to fraud, ensuring that every audit upholds the highest standards of transparency and accountability. This revised standard serves as a reminder that vigilance, integrity, and skepticism are essential tools in the ongoing fight against fraud.

To learn more about ISA 240 (Revised) and its implications for auditors and audit firms, visit the International Auditing and Assurance Standards Board (IAASB) official website or read the ISA 240 (Revised) below.

ISA 240 (Revised), The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements | IAASB 

The Department of Trade and Industry (DTI) has issued Department Administrative Order (DAO) No. 25-12, Series of 2025, to further strengthen the implementation of the 

E-Commerce Philippine Trustmark (TRUSTMARK), reinforcing consumer protection, transparency, and accountability in the rapidly growing online marketplace. This new order amends DAO No. 25-07 (2025) and emphasizes the mandatory registration of all online merchants, e-retailers, e-marketplaces, digital platforms, and third-party platforms operating in the Philippines, ensuring that all participants in e-commerce adhere to standardized practices that protect both sellers and consumers.

The TRUSTMARK is a visible seal of compliance that signals an online seller’s or platform’s commitment to fair, secure, and responsible online trade. Importantly, it is not a business permit or license, but rather a certification demonstrating adherence to established 

e-commerce standards and best practices. Its presence reassures consumers that the online business they are transacting with meets minimum requirements for security, transparency, and lawful conduct.

Key provisions of DAO 25-12 include:

• Mandatory Registration – All online sellers and platforms, regardless of size or reach, are required to register with the DTI E-Commerce Bureau. This ensures that every active participant in the digital marketplace is properly documented and accountable.
  
• Deadline for Registration – Applications must be submitted on or before September 30, 2025. Online businesses that have applied but are still awaiting approval must clearly indicate that their TRUSTMARK registration is in process, maintaining transparency with their customers.
  
• Fee Policy – While regular registration fees continue to apply as outlined in DAO 25-07, Barangay Micro Business Enterprises (BMBEs) are exempt from paying the initial application fee, supporting smaller businesses and encouraging their participation in formal e-commerce compliance.
  
• Compliance Monitoring – TRUSTMARK holders are required to adhere to all relevant laws, including the Standards Law, the Consumer Act, and the Internet Transactions Act, among others. Regular compliance checks by DTI will ensure that online businesses maintain the required standards for secure, fair, and ethical commerce.
  
• Regulated Products – Sellers dealing with regulated goods and services must submit valid government-issued licenses or permits. This provision ensures that products requiring special authorization, such as food, health, or pharmaceutical items, meet government standards and are safe for public consumption.
  
• Effectivity – DAO 25-12 becomes effective 15 days after its publication in two newspapers of general circulation and its filing with the Office of the National Administrative Register (ONAR), giving businesses a clear timeline for compliance and public awareness.

In essence, DAO 25-12 strengthens the framework for safe and reliable online commerce in the Philippines, ensuring that all digital trade activities are registered, monitored, and compliant with consumer protection and trade laws. By enforcing these standards, the DTI aims to foster trust, accountability, and confidence in the growing e-commerce ecosystem, ultimately protecting consumers and supporting the responsible growth of online businesses across the country.

This website does not claim ownership of the material and does not provide legal advice, opinions, or interpretations. For authoritative reference, please consult the Official Gazette or other official government publications.

[CTC]+DAO+No.+25-12.PDF 

In an era where digital transformation is reshaping every aspect of governance and business, the field of auditing is also evolving. One of the most promising technologies driving this change is blockchain—a system that records data in secure, tamper-proof digital ledgers. With increasing concerns about corruption, data manipulation, and lack of transparency in both public and private institutions, blockchain is now being recognized as a potential cornerstone for a more transparent and accountable auditing system. This was highlighted in a recent Senate hearing led by Senator Bam Aquino, where lawmakers and experts discussed how blockchain technology could be used to promote transparency and accountability in government transactions through the proposed National Budget Blockchain Act.

What is Blockchain?

Blockchain works by creating a chain of records, or “blocks,” that are securely linked and distributed across multiple computers. Once information is entered, it cannot be altered without leaving a trace, ensuring data integrity. For auditors, this is a significant breakthrough. Instead of manually checking transactions or relying on potentially biased reports, auditors can access a real-time, immutable record of financial activities. This makes it much harder for fraudulent transactions or errors to go unnoticed.

One of the key advantages of blockchain is transparency. Every transaction recorded on a blockchain can be viewed and verified by authorized users, allowing both auditors and the public to see how funds are used. This transparency strengthens trust not only in financial reports but also in institutions themselves. In the public sector, it could mean that citizens would have the power to monitor how their taxes are being spent. In the private sector, it could reassure investors and stakeholders that companies are operating ethically and efficiently.

Beyond transparency, blockchain also improves efficiency. Traditional auditing often requires a long and tedious process of collecting, verifying, and cross-checking data. With blockchain, auditors can perform continuous auditing—monitoring transactions as they happen. This allows for quicker identification of discrepancies and more accurate financial assessments. It also reduces administrative workload and the possibility of human error.

Moreover, blockchain provides stronger security measures. Since each block of data is encrypted and linked to the previous one, any attempt to alter records would immediately be detected. This reduces the risk of data tampering and enhances the credibility of financial information. Auditors can rely on blockchain-based systems to verify the authenticity of records without depending entirely on intermediaries or 

third-party confirmations.

Challenges

However, adopting blockchain in auditing comes with challenges. It requires technical expertise, investment in digital infrastructure, and updated regulatory frameworks. Auditors must develop digital literacy to fully understand how blockchain systems operate, while institutions must ensure data privacy and compliance with ethical standards. Despite these hurdles, the benefits of integrating blockchain into audit practices outweigh the difficulties, especially in an age where information integrity and accountability are paramount.

Key Takeaways

The promise of blockchain lies in its ability to redefine the audit process—from one that relies on periodic reviews and manual verification to one that provides continuous assurance and public accountability. As technology advances, auditors have the opportunity to evolve with it, transforming their role from mere examiners of past transactions into real-time guardians of transparency. Blockchain does not only modernize auditing—it strengthens trust in the entire financial ecosystem.

As the world moves further into the digital age, the integration of blockchain into auditing is not just an innovation—it is a necessity. By embracing this technology, auditors can ensure that every financial transaction is not only recorded but also verified and trusted. Blockchain may well become the foundation of a more transparent, accountable, and ethical financial world.

Disclaimer: This article draws from discussions presented during a Senate hearing on the proposed National Budget Blockchain Act, led by Senator Bam Aquino.

EXPLAINER: Ano ang blockchain at paano nito mababantayan ang paggasta ng pamahalaan? 

The Auditing and Assurance Standards Council (AASC) has approved the adoption of the International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements and Conforming Amendments to Other International Standards Arising from ISSA 5000, as Philippine Standard on Sustainability Assurance 5000 (PSSA 5000), General Requirements for Sustainability Assurance Engagements and Conforming Amendments to Other International Standards Arising from PSSA 5000.

Adoption:

On January 27, 2025, the AASC formally adopted ISSA 5000, issued by the International Auditing and Assurance Standards Board (IAASB) in November 2024, as PSSA 5000. This move aligns Philippine standards with global practices, reinforcing transparency, accountability, and consistency in sustainability reporting.

Effective Date:

PSSA 5000 becomes effective for sustainability assurance engagements on information reported for periods beginning on or after December 15, 2026, or as at a specific date on or after that time. Earlier application is permitted.

Objectives:

The objectives of a sustainability assurance engagement under PSSA 5000 are:

1. To obtain reasonable or limited assurance about whether the sustainability information is free from material misstatement.
2. To express a written conclusion report on the sustainability information that conveys a reasonable or limited assurance conclusion, and describes the basis for the conclusion; and
3. To communicate further as required by the standard.

When reasonable or limited assurance cannot be obtained and a qualified conclusion in the practitioner’s assurance report is insufficient, practitioners are required by the standard to disclaim a conclusion or withdraw from the engagement. 

• It applies to all assurance engagements on sustainability information, regardless of how the information is presented.
• It deals with both reasonable and limited assurance engagements, unless otherwise stated. 
• It is an overarching standard that includes requirements and application material for all elements of a sustainability assurance engagement.
• It applies only to attestation engagements, not direct engagements. 
• It does not address sustainability information included in the entity’s financial statements, practitioners must apply the International Standards on Auditing (ISA).
• It acknowledges that sustainability information may be presented together with the audited financial statements which are treated as “other information”. 
• The standard is scalable, intended for assurance engagements on sustainability information for entities of all sizes and complexities. However, the requirements of this ISSA are intended to be applied in the context of the nature and circumstances of the engagement.

Read more here:  Auditing and Assurance Standards Council (AASC)

Disclaimer: This article is for informational purposes only. For official guidance, please refer to the Auditing and Assurance Standards Council (AASC) website. 

AI transforms audits by facilitating deeper insights, quicker data processing, and better risk detection. However, human judgment, ethics, and critical thinking are still necessary despite its power.

In June 2025, a global roundtable co-hosted by International Association for Accounting Education and Research (IAAER), the International Auditing and Assurance Standards Board (IAASB), the South African Independent Regulatory Board for Auditors, and IFAC gathered regulators, educators, and professionals to tackle one urgent question: How should auditors be prepared for a technology-driven future? 

Find out here:  Embracing the AI Frontier: Rethinking Auditor Skills and Education | IFAC 

Disclaimer: The above document is shared for informational purposes only. All rights and authority remain with the International Federation of Accountants.

Republic Act No. 12252 (Amending RA 7652 – Investors’ Lease Act) signed on September 3, 2025, expands and strengthens the rules governing land leases by foreign investors in the Philippines. The law allows lease terms of up to 99 years, provides for mandatory registration of contracts, and imposes stricter compliance measures to ensure the integrity of long-term lease agreements.

• 1993 – RA 7652 (Investors’ Lease Act) was enacted, limiting leases to 50 years, renewable for 25 years
• September 3, 2025 – RA 12252 signed into law by President Ferdinand Marcos Jr.
• September 4,  2025 – Law published in the Official Gazette
• Effectivity – 15 days after publication
• Within 90 days – DTI (through BOI) and LRA to issue Implementing Rules and Regulations (IRR)

• Lease Term Extended – Foreign investors may now lease private lands for up to 99 years, subject to national security considerations.
• Registration Requirement – Lease and sublease contracts must be registered with the Registry of Deeds and annotated on land titles; registration is the operative act binding contracts against third parties.
• Investment Timeline – Projects must commence within 3 years from signing the lease, or incentives may be revoked.
• Subleasing Allowed – Permitted with lessor’s consent, subject to registration and compliance with lease conditions.
• Tourism Investments – Lease of private land limited to projects with minimum USD 5 million investment, with 70% infused within 3 years.
• Penalties – Violations carry fines of ₱1 million–₱10 million and/or imprisonment of 6 months–6 years.

• Reinforces the Philippines’ competitiveness by aligning with international norms (99-year leases).
• Provides greater stability and legal certainty for foreign investors in industries such as manufacturing, tourism, agriculture, and eco-conservation.
• Strengthens government oversight by requiring registration, annotation, and compliance monitoring.
• Creates stronger safeguards for public interest, especially in areas tied to national security and critical infrastructure.

• Foreign Investors – Gain access to longer, more secure lease arrangements, encouraging large-scale, long-term projects.
• Local Landowners – Benefit from clearer protections, binding registration, and regulated sublease agreements.
• Regulators (DTI, BOI, LRA, FIRB) – Strengthened authority to enforce compliance, revoke incentives, and safeguard against misuse.

RA 12252 is a landmark reform that liberalizes land leasing while balancing investor security and national interest. It provides a stronger framework for attracting foreign investments and ensuring compliance with Philippine laws.

Disclaimer:  The document and information below are sourced from the Official Gazette of the Republic of the Philippines and are shared solely for educational and informational purposes. No modifications have been made to the original publication. All rights and authority remain with the Government of the Philippines.

This website does not claim ownership of the material and does not provide legal advice, opinions, or interpretations. For authoritative reference, please consult the Official Gazette or other official government publications.

SRV

As auditors prepare for the current audit season, it’s timely to revisit the Auditing and Assurance Standards Council’s (AASC) guidance to practitioners on the proper referencing of accounting standards in independent auditors’ reports. 

Earlier this year, through Alert No. 001, Series of 2025, the AASC outlined the changes in the naming convention of locally adopted accounting and sustainability standards in the Philippines. 

Key Updates on Naming Conventions

Following its official announcement earlier this year, the Philippine Financial and Sustainability Reporting Standards Council (PFSRSC) has reaffirmed—via its website—that locally adopted standards shall now be formally referred to as:

• “IFRS Accounting Standards” now “PFRS Accounting Standards”
• “IFRS Sustainability Disclosure Standards” now “PFRS Sustainability Disclosure Standards”
• “IFRS for SMEs Accounting Standard” now “PFRS for SMEs Accounting Standard”

What This Means for Auditors

The AASC emphasizes that external auditors engaged in audits under the Philippine Standards on Auditing must update references in their independent auditors’ report to reflect these changes:

• Opinion section (second paragraph):  Financial statements must be stated as prepared in accordance with the Philippine Financial Reporting Standards (PFRS) Accounting Standards.
• Responsibilities of Management and Those Charged with Governance (first paragraph): Management’s responsibility should likewise be stated in accordance with PFRS Accounting Standards.

This guidance applies only to entities using PFRS Accounting Standards in preparing their financial statements.

External Auditors are also advised to consider other aspects of the audit engagements such as:

• Letter of engagement
• Management letters of comments and recommendations
• Management (and/or where appropriate, those charged with governance) representation letter

Background Information

The changes were made in relation to the updates made by the IFRS Foundation trademark guidelines, which affect references to the International Accounting Standards and International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB). 

• Issued by the IASB ➝ IFRS Accounting Standards
• Issued by International Sustainability Standards Board ➝ IFRS Sustainability Disclosure Standards

The Alert was approved during the AASC’s regular meeting on February 24, 2025. Notably, the AASC’s action aligns with global developments, as the International Auditing and Assurance Standards Board issued similar guidance in December 2023 through its IASB Liaison Working Group, promoting consistency between Philippine and international auditing practices.

 Source:  AASC-Alert-No.-001-s2025-Changes-to-the-Naming-Convention-of-Accounting-Standards.pdf 

HJA