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unacceptance of audited finacial statement

Post by jan_00026 on Fri Nov 25, 2011 1:56 pm

Would anybody explain the requirements below under financial statement:

"Audited financial statements, showing, among others, the prospective total and current
assets and liabilities, stamped "received" by the BIR or its duly accredited and
authorized institutions, for the preceding calendar year which should not be earlier than
two (2) years from the date of submission;

****************
We attended an infra bidding this month and after the reading our technical documents under the financial statement, an argument occur and the BAC said that we need to file an MR (motion for reconsideration);..note that as one of the bidder we attached only the our audited financial statement of year ended of December 2010..however on our Income Statement & Cash Flow, year 2010 and 2009 is there.. Would this be acceptable or not..pls advise..thanks in advance

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Re: unacceptance of audited finacial statement

Post by engrjhez® on Fri Nov 25, 2011 2:50 pm

jan_00026 wrote:Would anybody explain the requirements below under financial statement:

"Audited financial statements, showing, among others, the prospective total and current
assets and liabilities, stamped "received" by the BIR or its duly accredited and
authorized institutions, for the preceding calendar year which should not be earlier than
two (2) years from the date of submission; x x x

To illustrate the meaning of this, let us use two (2) scenarios:

Scenario 1: Bidding on February 2011. Since the AFS for 2010 is not yet due for filing (April 15, 2011), the AFS of 2009 ("stamped received" 2010) may be submitted. Those who filed early may also submit the 2010 AFS.

Scenario 2: Bidding on September 2011. Since the AFS for 2010 must have been filed already (April 15, 2011), the AFS of 2010 ("stamped received" 2011) shall be submitted.

Smile
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Re: unacceptance of audited finacial statement

Post by jan_00026 on Fri Nov 25, 2011 4:51 pm

sir thanks for your prompt reply..so if that's the case i believe that our attached AFS of 2010 in our technical component is acceptable..even if we did not attached the AFS of 2009?..pls advise what would be the right answer why the BAC is searching for AFS 2009 though we already submitted the AFS of 2010...

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Re: unacceptance of audited finacial statement

Post by sunriser431 on Sat Nov 26, 2011 8:48 am

jan_00026 wrote:sir thanks for your prompt reply..so if that's the case i believe that our attached AFS of 2010 in our technical component is acceptable..even if we did not attached the AFS of 2009?..pls advise what would be the right answer why the BAC is searching for AFS 2009 though we already submitted the AFS of 2010...
Have you verified Section 111 of the Bid data sheet ITB clause 12.1(a) of the PBDs? maybe the BAC have additional instructions for the bidders to follow. But generally bidders are required to submit one (latest) AFS. bounce
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Re: unacceptance of audited finacial statement

Post by jan_00026 on Mon Nov 28, 2011 2:33 pm

@sunsirer431..sir, thank you for replying..I checked the BDS and there's no additional reqmts..so why is the BAC looking for our AFS 2009 though we already submitted the latest AFS?..is there any valid reason for that?

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Re: unacceptance of audited finacial statement

Post by engrjhez® on Tue Nov 29, 2011 9:17 am

jan_00026 wrote:....I checked the BDS and there's no additional reqmts..so why is the BAC looking for our AFS 2009 though we already submitted the latest AFS?..is there any valid reason for that?

The reason why AFS is required is to make the necessary checking of NFCC computation. You will extract from it current assets and current liabilities. So even if the 2009 AFS will be submitted in addition to 2010 AFS, it will not make any significant change on the status of the bidder's eligibility.

A different scenario is required for NGO/CSO participation where AFS for the past three (3) years is required. But on your case, the most recent AFS will suffice. I can see no valid reason in requiring both 2009 and 2010 AFS at the same time. Smile

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Re: unacceptance of audited finacial statement

Post by accounting on Tue Nov 29, 2011 10:43 am

an audited financial statement per experience covers two period for comparison and decision making purpose. so that the 2010 AFS should be presented and covers two periods (2009 and 2010) and it should be a complete set of AFS to be submitted in the financial proposal ( auditor's report, BS,IS, CF, CE, NOtes, Responsibility statement) all must be stamped received by BIR. now if the 2010 AFS you submitted includes all of these and the presentation of FS is in the comparative form then you don't need to submitted the 2009 AFS.
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Re: unacceptance of audited finacial statement

Post by joyie on Fri Jul 20, 2012 11:26 am

accounting wrote:an audited financial statement per experience covers two period for comparison and decision making purpose. so that the 2010 AFS should be presented and covers two periods (2009 and 2010) and it should be a complete set of AFS to be submitted in the financial proposal ( auditor's report, BS,IS, CF, CE, NOtes, Responsibility statement) all must be stamped received by BIR. now if the 2010 AFS you submitted includes all of these and the presentation of FS is in the comparative form then you don't need to submitted the 2009 AFS.

As in our case, our Accountant is also looking for a complete set of AFS, as you have mentioned. Is it really required to submit the complete set of FS, or is it acceptable if a Supplier only submitted the Balance Sheet showing their current assets & liabilities to compute the Net Financial Contracting Capacity (NFCC) of the supplier for a particular contract?

Another query/clarification, is it required to look for the BOA (Board of Accountants) No. of an Accountant who audited the financial statements of a supplier? What if there is no "BOA", is it acceptable?
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Re: unacceptance of audited finacial statement

Post by regina avelino on Mon Jul 23, 2012 9:20 am

The BOA number is indicated together with other details of the accountant in its audit opinion. there should be a BOA number because this will tell us the the accountant is sanctions to conduct practice public accounting. Without this, the he/she cannot render opinion as well.

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Re: unacceptance of audited finacial statement

Post by joyie on Thu Jul 26, 2012 12:05 pm

What if the Accountant of a particular Supplier have no BOA, would it still be acceptable?
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Re: unacceptance of audited finacial statement

Post by regina avelino on Thu Jul 26, 2012 2:40 pm

No person shall practice public accountancy unless the person is a CPA and has received accreditation from the BOA. Since the audit of FS for purposes of participating in government bidding is considered practice of public accountancy, CPA rendering opinion through audited FS must be BOA accredited. FS audited by CPAs not accredited by the BOA is violation of Sections 23.1(a)(v) and 24.1(a)(v) of the revised IRR of RA 9184. Then the bidder submitting an audited FS rendered by a non-BOA accredited CPA must be disqualified.

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Re: unacceptance of audited finacial statement

Post by sunriser431 on Fri Jul 27, 2012 4:07 pm

joyie wrote:What if the Accountant of a particular Supplier have no BOA, would it still be acceptable?
For your guidance. Follow the LINK Good luck . bounce
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Re: unacceptance of audited finacial statement

Post by joyie on Wed Aug 01, 2012 10:09 pm

To regina avelino & sunriser431, thank you so much for your replies... Smile
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Re: unacceptance of audited finacial statement

Post by sunriser431 on Fri Aug 10, 2012 12:22 am

joyie wrote:To regina avelino & sunriser431, thank you so much for your replies... Smile
as always cheers
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