Tag: Suits The C-Suite

The nature of business today is very different from how it was just a few years ago. Technology, innovation and new consumption behaviors are driving disruption every day. Yet, some things – such as fraud, bribery and corruption – have remained constant. This was the main finding of the EY Global Fraud Survey 2018: Integrity in the spotlight, which focused on emerging markets.

It has barely been a week since the New Year and already we have seen or experienced changes. Why? Because we are living in an age of transformation.

The humble image evoked by the idea of a traditional, family-run business contrasts with the fact that they are considered economic powerhouses, or hold the potential to be, with the right foresight, planning, and management. Conglomerates and well-known franchises may have started out as mom-and-pop stores, before penetrating mainstream retail. And such a tale is not at all uncommon. A recent study from the Harvard Business School on family businesses noted that family firms account for two-thirds of all the businesses around the world. Additionally, 70-90% of global GDP is created by these institutions annually, and 85% of start-up companies even gain footing with capital investments using family money. In short, family businesses have prevailed and continue to do so in every sector and region, on a global scale.

In a previous article in this column, we spoke about how important it is for company leaders to become digital-enabled in today’s disruption-led competitive landscape. We discussed how digital age leaders are not only better equipped to meet emerging business challenges and changes in the competitive landscape, but are also delivering better financial performance for their companies.

In the first part of this article, we recalled that both private and public sectors must take the business of digital transformation an utmost priority if the country is to achieve both local and regional economic success. In particular for the public sector, government must spearhead efforts to create a digitally-inclusive, technologically-capable nation. Otherwise, digital innovations will fall short of mainstream adoption. This idea was touched on during the ASEAN Outlook Conference 2018.

In recent articles published in this column, we have highlighted the growing need for digital-ready leadership and the digital transformation of organizations. In today’s challenging environment, leaders must assume the main responsibility of fostering a company culture which is receptive to innovations in both internal methods and offered services.

SGV & Co. is the first professional services firm in the world to receive the Economic Dividends for Gender Equality (EDGE) Assess Certification. The EDGE certification was granted early this month.

In a world of constant disruption and innovation-led advances, organizations are increasingly leveraging technology to transform their business strategies. However, as revealed in the Global Leadership Forecast 2018 (a joint research project by EY, Development Dimensions International, Inc. and the Conference Board), many companies are unable to keep up with the pace. The forecast also mentions that 50% of the 2006 Fortune 500 companies no longer exist, while futurist speaker Thomas Frey projects that advances in robotics and artificial intelligence will impact over two billion jobs in the next decade. Given the inescapable technological trajectory that the world is on, organizations with digital-savvy leaders who are cognizant of the threats and opportunities brought about by technology are now outperforming competitors with less digitally-capable leaders.

The Regional Trial Court (RTC) of Makati released its decision on the petition of banks seeking the invalidation of Bureau of Internal Revenue (BIR) Revenue Regulations (RR) No. 4-2011, which prescribed the rules for the proper allocation of costs and expenses for banks and financial institutions, for income tax reporting purposes. The RTC ruled that RR No. 4-2011 is unconstitutional, and ordered a permanent injunction on its implementation.

Offsetting (or netting) may arise in business transactions where there is a debtor-creditor relationship. Considering that two parties can be both debtor and creditor of each other, offsetting can be resorted to in order to reduce, or even extinguish the liability, if the legal conditions are present and if the criteria under Philippine Financial Reporting Standards (PFRS) are met.

The Bureau of Internal Revenue (BIR) recently issued an advisory informing taxpayers that the Large Taxpayers Service and Assessment Service will continue to receive and process applications for Value Added Tax (VAT) zero rating on the sales of goods and services by suppliers of Registered Business Entities (RBEs), who were granted incentives by Investment Promotion Agencies (IPAs) under special laws. The said advisory also informed the taxpaying public that they need to follow the existing guidelines and procedures for these applications to be processed, which refer to Revenue Memorandum Order (RMO) No.7-2006 issued in 2006.

Innovations brought about by information and communication technology have dramatically changed how people behave and go about their daily tasks. As the number of computer-literate, digital individuals increases, the easier it becomes to exchange information and facilitate remote transactions.

On Dec. 19, 2017, President Rodrigo R. Duterte signed into law Republic Act No. 10963, or the Tax Reform for Acceleration and Inclusion (TRAIN) Act. In a speech made after the signing, the President said the TRAIN Act “is the administration’s biggest Christmas gift to the Filipino people, as 99% of the taxpayers will benefit from the simpler, fairer and more effective tax system.”

Traditionally, banks operating in emerging markets (EMs), including the Philippines, did not consider financially excluded individuals as profitable target customer segments. These financially-excluded sectors included micro and small to medium enterprises (MSMEs).

Controversies continue to surround the Tax Reform for Acceleration and Inclusion (TRAIN) Law. Members from both the public and private sectors blame it for the steady rise in inflation, the now weekly increase in fuel and oil prices, and a record currency depreciation that left the peso at its weakest in over 11 years.

Embracing the Automatic Exchange of Information (AEoI), whether in the form of FATCA and/or CRS, affects stakeholders ranging from the government and businesses down to the ordinary consumers of financial products and services. As such, the uncertainties arising from the supposed implementation are definitely not in line with the goal of maintaining a stable financial and investing environment – something that the Philippines needs in order to sustain growth in the years to come.

(First of two parts) IN 2015, the ASEAN Economic Community (AEC) Blueprint 2025 was adopted as part of the ASEAN 2025: Forging Ahead Together plan....

THE TRAIN law is expected to make significant changes to the tax incentives of PEZA registered enterprises. With the enactment of the Tax Reform for...

LIKE its fast-moving namesake, the effects of the TRAIN (Tax Reform for Acceleration and Inclusion) Law or Republic Act. No. 10963 continue to have impact on professionals and entrepreneurs.

The variety of transfer taxes is quite confusing. The amendments introduced by the Tax Reform for Acceleration and Inclusion (TRAIN) Law or Republic Act No. 10963 now provide much clearer rules for taxpayers.

Financial Technology (Fintech) companies combine technology and innovative business models to enable, enhance and disrupt financial services. They are dramatically changing the financial services industry landscape in all parts of the world. Blockchain, cryptocurrencies, app-based alternative finance and open-banking are amongst the biggest disruptive themes introduced by these companies.

A recent report by Etventure, Digital Transformation 2018 highlighted that “Digitalization is getting to all parts of our lives and it is deeply disrupting how companies do and therefore structure their business. Most companies (55%) will need to change their business models due to digitalization in the upcoming years. However, the wide majority (62%) of companies state that the knowledge and capability to manage digitalization is not sufficiently available.”

Companies around the world are now understanding that the talent paradigm is shifting. There is, in fact, a continuous war for talent worldwide, with a pressing need for businesses to develop a skills strategy that looks at both the need to operate the business in a cost-efficient matter, while redefining the business model at the same time.

2018 is looking to be a busy year as far as financial reporting changes are concerned. There will be two major new standards adopted this year -- one for revenue recognition and another one for financial instruments. Furthermore, it is in 2018 that the International Accounting Standards Board (IASB), the accounting standard-setting body, issued a revised version of the Conceptual Framework for Financial Reporting.

A mentor once said, to create value in an organization, the following must be present: strong leadership, strong partnerships that break organizational boundaries, and a perfect opportunity to exploit. In this article, we would like to discuss how a strong partnership between the CFO and the CEO can help companies adapt to the continually changing business landscape.

According to the World Bank’s June 2018 Global Economic Prospects report, the Philippines is the 10^th fastest-growing economy in the world, stimulated by rising consumption, sustained remittance inflows, stable investment, improved government spending and accommodative monetary policy. These were key considerations for some recent mergers and acquisitions (M&A) deals characterized as defensive, synergy-driven, and horizontally and vertically integrated. These recent deals are leading some parent companies to further penetrate the existing market and to also enter into new markets. What this trend tells us is that strategically, companies are doing it because they need to grow and survive over the medium- to long-term.

IFRS 9 is an International Financial Reporting Standard (IFRS) promulgated by the International Accounting Standards Board on July 24, 2014. It addresses the accounting for financial instruments and features three main topics: classification and measurement of financial instruments; impairment of financial assets; and hedge accounting. It became effective on Jan. 1, 2018 and has replaced International Accounting Standards (IAS) 39 Financial Instruments: Recognition and Measurement and all previous versions of IFRS 9. In this article, IFRS 9 is referred to as a “science” because of its systematically organized body of information and measurements on specific topics.

IFRS 9 is an International Financial Reporting Standard (IFRS) promulgated by the International Accounting Standards Board on July 24, 2014. It addresses the accounting for financial instruments and features three main topics: classification and measurement of financial instruments; impairment of financial assets; and hedge accounting. It became effective on Jan. 1, 2018 and replaced International Accounting Standards (IAS) 39 Financial Instruments: Recognition and Measurement and all previous versions of IFRS 9. In this article, IFRS 9 is referred to as a “science” because of its systematically organized body of information and measurements on specific topics.

IFRS 9 is an International Financial Reporting Standard (IFRS) promulgated by the International Accounting Standards Board on July 24, 2014. It addresses the accounting for financial instruments and features three main topics: classification and measurement of financial instruments; impairment of financial assets; and hedge accounting. It will become effective in 2018 and replaces International Accounting Standards (IAS) 39 Financial Instruments: Recognition and Measurement and all previous versions of IFRS 9. In this article, IFRS 9 is referred to as a “science” because of its systematically organized body of information and measurements on specific topics.

We constantly hear about how globalization and the rapid advances in technology are disrupting every single industry in the world. We can see this new paradigm happening as well in the global automotive sector where the line between automotive and technology has already started to blur. This has produced a new ecosystem with new rules for success. However, we should note that the change drivers in the automotive sector go further than just technology.

IFRS 9 is an International Financial Reporting Standard (IFRS) promulgated by the International Accounting Standards Board on July 24, 2014. It addresses the accounting for financial instruments and features three main topics: classification and measurement of financial instruments; impairment of financial assets; and hedge accounting. It will become effective in 2018 and replaces International Accounting Standards (IAS) 39 Financial Instruments: Recognition and Measurement and all previous versions of IFRS 9. In this article, IFRS 9 is referred to as a “science” because of its systematically organized body of information and measurements on specific topics.

(First of two parts) IFRS 9 is an International Financial Reporting Standard (IFRS) promulgated by the International Accounting Standards Board on July 24, 2014. It...

In recent years, tax authorities around the world have been embracing digital methods of tax administration. Through new legislation, regulations and other initiatives focusing...

In 2005, the Philippines adopted the International Financial Reporting Standards (IFRS) -- renamed Philippine Financial Reporting Standards (PFRS) -- in order to make financial...

The concept of integrity -- as a distinct corporate value and not mere lip service -- has been identified as a vital part of...

(Second of two parts) In the first part of this article, we offered the context and background of the Zero Dropout Education Scheme (ZeDrEs or...

(First of two parts) What is the value of P1,500? Of P3,000? For “Raf” of Sta. Cruz, Marinduque, it was the means by which his...

Among the less talked about provisions of Republic Act No. 10963 or the TRAIN Law are perhaps the amendments to Section 237 of the...

Given the rapid changes in technology today, doing business the traditional way is not an option for companies seeking to survive, particularly those in...

In the World Bank’s January 2018 Global Economic Prospects report, the Philippines was expected to post a steady 6.7% growth this year and in...

The Philippines is thought to be a bit ahead in gender parity in the region. According to the Global Gender Gap Index, the Philippines...

For almost all countries in the Association of Southeast Asian Nations (ASEAN), small and medium-sized enterprises (SMEs) are the primary engines for economic growth...

Klaus Schwab, founder and executive chairman of the World Economic Forum (WEF), said: “we stand on the brink of a technological revolution that will...

Statistically speaking, women make up more than half of the world’s population and arguably, may have the best ideas in the workplace. If not,...

(Second of two parts) In last week’s article, we introduced “digital” as the hot buzzword for businesses in the private sector, but not as much...