The Growth of the Accounting Profession in the Philippines

*Benjamin D. de la Cruz

The accounting profession is one of the most rapidly progressing professions in the Philippines today. It showed a tremendous growth in 45 years after given formal recognition by the Government in 1923. The growth is evidenced by an ever increasing membership and spe­cialized services. It would be wrong, however, to assume that account­ancy in the country is of recent development, for according to histori­cal notes it existed centuries back. Pioneers in the profession believe it was employed in its crudest form in business dealings of our pre-Spanish rulers, traders and property owners. Later when the Span­iards came, a new and more systematic form was introduced. The sin­gle-entry system of bookkeeping which is more or less scientific was practiced by the Spaniards with some Filipino participation.

In 1898 the double-entry system became popular. It replaced the old Spanish single-entry. The transition began after the Philippines were ceded to the United States by Spain in December of 1898. The new system which gained wide acceptance in the United States and subsequently in the Philippines was refined from the Italian system by the British practitioners, who greatly influenced accounting prac­tice in the Far East. It is significant to note that Philippine account­ing practice varies slightly from other far eastern countries, due to its having American influence aside from British.

Commercial Schools

It was in 1916 that the present accounting and bookkeeping forms in use developed. It was the college of Liberal Arts of the University of the Philippines that started giving economic courses with some accountancy. Then followed the Jose Rizal College and soon other universities and colleges starred offering business courses. New business schools began to rise as trade, commerce and agricul­ture grew with a corresponding demand for the service of book­keepers and individuals skilled in commercial arithmetic. In later years, bookkeepers and individuals skilled in commercial arithmetic multiplied, but still they were not called professionals. Though they were regularly employed in commercial houses, they were not considered as engaged in the practice of accounting as a profession. Although there were some professional English, Scottish and American accountant immigrants who engaged in the practice of accounting profession here still they did not share a common standard as to the scope of subject and responsibility with respect to practice. They were even known or referred to in various titles, such as public ac­countants, chartered accountants, certified public accountants, "contadores publicos autorizados," "auditores autorizados," "peritos mercantiles" and others.


In 1923 the Philippine government formally recognized ac­counting as a profession. The sixth Philippines Legislature gave official recognition by passing Act No. 3105 on March 17, 1923. The law created the Board of Accountancy vested with authority to promulgate rules and regulations, to set professional standards for the accounting profession practice and to issue certified public accountant certificates to those who have qualified in accordance with the requirements of the law either by a waiver of the certified public accountant examination or after passing the same. The Board is composed of chairman and two members. The first Board of Accountancy was composed of Chairman W. W. Larkin, who worked out for the passage of the law, Domingo T. Dikit and Felix Tiongson, members.

PICPA Formed

Six years after the passage of the Accountancy Act, a group of 50 CPAs, mostly practitioners, organized the Philippines Institute of Certified Public Accountants (PICPA) to promote and maintain high professional and ethical standards among CPAs and to encourage cordial relations among them. W. W. Larkin became the first pres­ident of the Institute. The years that followed saw the growth of the Institute parallel to the growth of the profession as evidenced by the: yearly increase in membership and establishment of provincial chapters throughout the country. Conferences, seminars and meet­ings were held in Manila and in the different chapters.

In 1957 under the initiative of the Institute, the First Far East
Conference of Accountants was held in Manila with representatives from various far eastern countries attending. The conference laid the grounds for future conferences and congresses which were sub­sequently held abroad and the Institute, being the sole national or­ganization of accountants, represented the country. Others who headed the Institute through all this years were: Jaime Hernandez, Francisco Dalupan, Enrique Caguiat, Santiago de la Cruz, Washing­ton Sycip, Prisco Evangelista, Belen E. Gutierrez, Artemio Tulio, Jose Torres, J. S. Zulueta, Gregorio Licaros, Pascasio S. Banana, Alfredo Velayo, Ranulto Tulio, Francisco Gonzalez IV, Eduardo Villanueva, Cesar Bocaling, Arsenio Narciso, Tomas G. Mapa, Jesus Casino and Arsenio Maralit.

The R. A. No. 5166

Several amendatory legislations to the Accountancy Act (1923) were passed. Noteworthy were Acts Nos. 3264 (1925), 3302 (1926), 3401 (1927), Commonwealth Act No. 342 (1938) and Republic Act No. 546 (1956).

Last year on August 4, 1967 a new accountancy law was passed by Congress. This is Republic Act No. 5166. The new law created the Board of Accounting Education empowered to prescribe necessary collegiate courses and employment or apprenticeship requirements for admission to the CPA examination. The membership of the Board of Accountancy was increased from three to six. The subjects of the CPA examination were also increased from four to six, the additional subjects being taxation and management services. Other provisions are geared towards meeting the needs and challenge of the accounting profession.

In conclusion, accounting profession today, although recognized only 45 years ago, has attained progress parallel to that of the othci professions in the country and also has gained the confidence and respect of all sectors of Philippine community. It faces a bright future with the passage of the new Accountancy Act, and having a strong and vigilant association such as the PICPA.

In the words of President Marcos "the accounting profession has contributed so much to the attainment of economic progress. Its role in the conduct of commerce and industry has expanded with the years. Its membership has enlarged and its services have broadened."

*Benjamin D. de la Cruz is a BSC – Accounting Senior Student

Business Forum: A Quarterly Published by the Institute of Accounts, Business, and Finance
Far Eastern University Manila

Volume 1 Number 1 March 1968