July 2020

FAAS holds COVID-19 Accounting Considerations webinars  SGV, through its Financial Accounting Advisory Services (FAAS) team, conducted a series of webinars on COVID-19 accounting considerations on 22 May and 5 June. FAAS and Climate Change and Sustainability Services Partner Benjamin Villacorte hosted and moderated all sessions.     Speakers at the first session of the FAAS COVID-19 webinar  During the first session, Country Managing Partner Wilson Tan provided an overview of the pandemic’s effect on the country, such as supply chain disruption and high volatility in financial markets. Assurance Partner Peter Ventura discussed lease payments, proposed amendments to PFRS 16 and other lease modifications. FAAS Senior Director TJ Raagas explained the pandemic’s effects on financial instruments such as debt modifications, loan covenants and expected credit losses, among others. Assurance Partner Meynard Bonoen spoke on the impairment of assets. EY ASEAN FAAS Leader Aris “Bok” C. Malantic (ACM) discussed the challenges that enterprises face due to the pandemic and the steps that they can take to mitigate these risks. Speakers concluded the session with a panel discussion with SGV Vice Chair and Deputy Managing Partner Vivian C. Ruiz (VCR). During the discussion, VCR explained how companies can respond to the pandemic’s challenges across various areas now, next and beyond. She discussed business continuity and crisis planning, new business models, and the adoption of technologies and new ways of doing things as businesses transition to the new normal.  Speakers at the second session of the FAAS COVID-19 webinar  VCR began the webinar’s second session with an overview of the community quarantine measures implemented in the country and their effects on accounting considerations. Assurance Partner Dhonabee Señeres discussed financial presentations and financial statement disclosure considerations. Assurance Partner Ysmael Acosta explained the different types of employee benefits and their financial reporting considerations. FAAS Senior Director Anna Maria Rubi Diaz spoke on considerations in revenue recognition. ACM discussed the financial reporting challenges that entities face and the measures that they can implement to protect their organizations. The session concluded with a panel discussion.   The webinars helped equip participants to address the issues that the pandemic has created now, plan for what’s next, and think about their organization’s position in a world beyond the COVID-19 crisis. Over 2,200 financial and accounting executives participated in both webinars. The event’s organizing team included FAAS Senior Directors Anna Maria Rubi Diaz and Alexander Bughaw. 

AWO speaks at ISACA webinar   Consulting Partner Allan W. Ocho (AWO) led a webinar titled “How Risk and Assurance professionals can contribute to Building a Resilient Enterprise” for the ISACA Manila Chapter on 16 June. ISACA Manila is a professional organization composed of information security, assurance, risk management and governance professionals. Over 300 participants attended the webinar, including internal audit (IA), risk management, and compliance professionals.       AWO during the open forum of the ISACA webinar   AWO began the session with a discussion on enterprise resiliency and business continuity. He explained the role of risk and assurance professionals in building a resilient enterprise. He also discussed leading practices that IA and risk management professionals from different organizations are implementing to adapt to uncertainty. He then presented the EY Enterprise Resilience Tool which provides a methodical approach to crisis management, recovery and reinvention. He also discussed the different areas that organizations can focus on to reframe their future and strengthen their resilience.

FSO conducts Insurance webinar     The SGV Financial Services Organization (FSO) Insurance sector held a webinar titled “Impact of COVID-19 on Insurance Companies” on 3 June. The session provided valuable insights on the financial effects of the pandemic on the insurance industry. Financial Services Organization Consulting (FSO Consulting) and Government and Public Sector Partner Christian Lauron moderated the session. Participants included finance, risk, and actuarial professionals from various insurance companies.      Speakers at the FSO Insurance webinar  Strategy and Transactions Services Partner Marie Stephanie Tan-Hamed provided an overview of the local economic impact of the pandemic and discussed its effects on the financial services industry. FSO Senior Manager Redgienald Radam discussed the accounting considerations for financial instruments, including the classification, reclassification and impairment of financial assets under PAS 39 given the recent sharp decline in financial markets and the stressed economic environment, and the tainting rule applicable to held-to-maturity financial assets. He also explained the PFRS 9 requirements on business model assessment and the expected credit losses to consider in assessing the pandemic’s impact on insurers that adopted the standard prior to the pandemic. FSO Consulting Senior Manager Catherine Laigo discussed the impact of COVID-19 on financial and regulatory reporting, including the business area focus for insurance companies.  The webinar is the first among a series of webinars on the insurance industry conducted by the SGV FSO team. Those interested may contact Catherine R. Laigo at Catherine.R.Laigo@ph.ey.com or Mary Catherine M. Biliran at Mary.Catherine.M.Biliran@ph.ey.com.  

TFM leads NordCham Tax webinar    Tax Partner Thyrza F. Marbas (TFM) conducted a tax webinar for the Nordic Chamber of Commerce Philippines (NordCham) titled “Let’s Talk about CREATE” on 2 June. The webinar aimed to orient participants on the salient features of the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE).     TFM presenting at the NordCham tax webinar  TFM discussed the bill’s recent developments in Congress and provided an overview of the corporate income tax rates and average duration of incentives among ASEAN countries. She also explained the bill’s significant provisions in comparison with the existing provisions and the Senate and House versions of the Corporate Income Tax and Incentives Rationalization Act (CITIRA).     Mr. Svenningsen and participants at the NordCham tax webinar with TFM and other members of the SGV Tax Team  NordCham Executive Director Jesper Svenningsen moderated the webinar and welcomed participants who included executives and representatives from the private and public sectors. The event’s organizing team included SGV Tax Leader Fame delos Santos and Tax Senior Director Gecel Codera-Ong. 

FSO BCM holds second leg of webinar series    The SGV Financial Services Organization Banking and Capital Markets (FSO BCM) sector conducted the second part of the FSO BCM Webcast Series titled “Planning for the Complexities of an Uncertain Future: Stress Testing and Stimulus Transmission Framework” on 1 June. The session presented pandemic scenarios in banks’ stress-testing exercises that could help financial institutions understand the pandemic’s level of impact on their asset quality, profitability, capital levels and liquidity, and the tactical and strategic planning considerations for financial institutions.   Financial Services Organization Consulting (FSO Consulting) and Government and Public Sector (GPS) Partner Christian Lauron welcomed participants composed of finance, risk management, internal audit and compliance professionals from different financial institutions. He also presented the current key themes in the BCM sector and the stimulus transmission framework and its monetary, regulatory, and fiscal policies and actions. FSO Consulting Senior Manager Janice Joy Agati discussed the global and local policy responses to the pandemic.     Speakers at the FSO BCM webinar  FSO and Tax Partner Allan Exclamador discussed the salient features of the Bayanihan to Heal as One Act (Republic Act No. 11469) and other pending legislation, including their tax and economic implications. FSO Consulting Manager Saldy Cabarubias demonstrated how to use the stress testing method to analyze the impact of COVID-19 on risks faced by the banks. He also discussed scenario modelling according to industry, geographical and value chain perspectives. FSO Consulting and GPS Senior Manager Christian Edmund Chua shared the tactical and strategic planning considerations for the restart, recovery and reconfiguration phases of the economy.     The webinar is among a series of webinars conducted by the SGV FSO team. The succeeding webinars will cover related topics on the insurance, health and pension, wealth and asset management, and BCM sectors. Those interested may contact Mary Catherine M. Biliran at Mary.Catherine.M.Biliran@ph.ey.com.   

FSO Consulting holds Cluster Quiz Night  SGV’s Financial Services Organization Consulting (FSO Consulting) Team recently conducted its first- ever online quiz night. The activity aimed to bring the team closer together virtually and strengthen the team members’ relationship during the quarantine through fun games.    The team was divided into six groups and answered general-knowledge trivia questions. The quiz consisted of three rounds with questions about a wide range of categories such as pop culture, mathematics and analogy. The game used a right-minus-wrong point system.      Members of the FSO Consulting Team during the cluster quiz night   The quiz night’s organizing team included FSO Consulting Associates Patricia Bernadas, Abegail Verdadero, Ronnie Anasco, Rafael III Estrellas, and Senior Associates Jacqueline Lim, Larisa Jane Salaysay, and Sophia Manelle Uy. FSO Consulting Partners Christian Lauron and Francis Lumbres also attended the quiz night.    The two-hour activity concluded with members of the top three teams receiving cash prizes. Consolation prizes were also given to the other teams because, as quipped, “Sa FSO Consulting, lahat panalo!” Members of the FSO Consulting Team can look forward to more fun and exciting virtual activities soon.