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Reporting on Information Required by Revenue Regulations (RR) 15-2010 (Q&A)

The Auditing and Assurance Standards Council (AASC) has issued AASC Alert Series 002 of 2011, Q&A on RR 15-2010.  This alert was issued to answer common questions on reporting under RR 15-2011 as well as provide illustrative audit report as oppose to financial statement disclosure content. What is RR 15-2010, in the first place?

The Bureau of Internal Revenue (BIR) issued on November 25, 2010 Revenue Regulation (RR) 15-2010, Amending Certain Provisions of Revenue Regulations No. 21-2002, as Amended, Implementing Section 6 (H) of the Tax Code of 1997, Authorizing the Commissioner of Internal Revenue to Prescribe Additional Procedural and/or Documentary Requirements in Connection with the Preparation and Submission of Financial Statements Accompanying Income Tax Returns.

RR 15-2010 required that in addition to the disclosures mandated under the Philippine Financial Reporting Standards and/or Conventions, specific information regarding various taxes (RR 15-2010 Tax Information – see RR 15-2010, Section 2, items 1 to 9) should be included in the Notes to Financial Statements, that will accompany the income tax returns that will be submitted to the BIR.

AASC Alert Series 002 of 2011, Q&A on RR 15-2010 answers the following:

  1. Are RR 15-2010 disclosures required under Philippine Financial Reporting Standards (PFRS)?
  2. How should the disclosures required by RR 15-2010 be presented in the financial statements?
  3. Are the RR 15-2010 disclosures required to be presented in the consolidated financial statements?
  4. How should the auditor report on the RR 15-2010 disclosures?
  5. How would the “Report on the Supplementary Information required under RR 15-2010” be affected if the “Report on the Financial Statements” contains a qualified opinion?
  6. How would the “Report on the Supplementary Information required under RR 15-2010” be affected if the “Report on the Financial Statements” contains an adverse opinion or a disclaimer of opinion?
  7. Would the “Report on the Financial Statements” be affected if the supplementary information required under RR 15-2010 is not presented?

Illustrative Auditors’ Report are also presented under the Appendix of the Alert.

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Orlando Calundan is a Certified Public Accountant by profession, a blogger by passion, a lawyer by ambition, a giver by affection and a simple guy who wants to make a difference.