AMENDING SECTIONS 10 AND 20 OF THE CODE OF ETHICS FOR CERTIFIED PUBLIC ACCOUNTANTS (CPAS) (RE: RULES ON ADVERTISING AND SOLICITATION)

WHEREAS, Certified Public Accountants (CPAs) are expected to be in
the forefront of the developments in information technology because of
their key role in business which the Philippine government had given
much emphasis on to the extent that it is planning to; liberalize the
practice of accountancy ahead of the other professions;

WHEREAS, the Board of Accountancy had promulgated a Code of Ethics
for CPAs in March 1978, which provides, among others, rules on
advertising and solicitation;

WHEREAS, the Board of Accountancy recognized the need for Filipino
CPAs to prepare for the aforesaid liberalization such that in November
1999 it resolved to allow CPAs to develop and maintain a web site in the
internet but limited it to two (2) pages with a specified font, and to
contain only individual or firm name, address, phone, fax, and/or e-mail
address, and name of partners/principals without any self-laudatory
statements designed to solicit clients, provided that the rules
prohibiting any form of advertising in print and broadcast media shall
continue to be observed except those allowed under the provisions of PRC
Resolution No. 96-432 dated June 7, 1996;

WHEREAS, the Board of Accountancy continued to study this matter
more critically and in its subsequent meetings in December 1999 and
January, February, and March 2000, it deliberated at great length on the
advantages and disadvantages of these restrictions, and after careful
and due consideration, the Board agreed that it is not necessary to
impose any restriction on the length, font, and content of the web site
for CPAs, provided it does not contain self-laudatory statements
designed to solicit clients, and provided that the rules prohibiting any
form of advertising in print and broadcast media shall continue to be
observed except those allowed under the provisions of PRC Resolution No.
96-432 dated June 7, 1996;

NOW, THEREFORE, the Board RESOLVED as it hereby RESOLVES to amend
Section 10 and Section 20 of the Code of Ethics of CPAs which was
promulgated in March 1978 to read, respectively, as follows:

“Section 10.        Advertising

A CPA shall not advertise, or cause or allow to be advertised, his
professional attainments or services, except in stating qualifications
in applications for employment. However, publication of authorship of
books, technical reports and studies, lectures or papers delivered in
conferences and seminars, and similar activities which are beneficial to
the profession as a whole are not considered advertising. Moreover,
development and maintenance of a web site in the Internet, as provided
for in Section 20, shall not be considered as advertising either.

“Section 20.        Solicitation and Advertising

“A CPA in public accounting shall not seek to obtain clients by solicitation.

“Advertising is a form of solicitation. Publication of an
announcement is permitted only for opening of a new office, change in
partners, change in office location or telephone number(s), or
reorganization of firm or practice; provided it contains basic
information essential to the announcement and is of reasonable size.

“Announcement of any of the above information may also be made to
clients and to individuals other than clients with whom professional
contacts are maintained.

“Listing of firm name in lobby directory of an office building and
entrance door solely for the purpose of enabling interested parties to
locate an office is permissible but must be in good taste and modest in
size.

“The stationery of firm should be in keeping with the dignity of
the profession and should not mention any specialty. It may include the
firm name, address, telephone number, tax account number, names of
partners, and membership in professional societies.

“Listing in a telephone, business, or other directory may appear
in the alphabetic section and/or in the business (yellow page) section
under the CPA classification. It shall not be in bold type or in box or
other display form.

“Firm publication or brochures may be distributed to clients and
to individuals other than clients with whom professional contacts are
maintained.

“A CPA’s press and other media releases or announcements
or newspaper supplements, or other similar publications, or other
commemorative media, or the holding of media covered events undertaken
only to commemorate their anniversaries in public practice by informing
the public of their achievements or accomplishments in contributing
towards nation building and in international understanding, goodwill, or
relationship or enhancing the image or standards of the accounting
profession is not violative of the foregoing rules on advertising and
solicitation provided that such announcements or undertakings contains
only factual matters without detailed listing of services provided
further that such undertaking is done only every five years of
celebration.

“A CPA may develop and maintain a web site in the
Internet in such suitable length and style which may also include any or
all of the foregoing announcements, press releases, publications and
such other necessary and factual information like firm’s name,
partners/principal’s name and brief description of their educational
attainment, brief listing of services, postal address, telephone, fax
and e-mail addresses, and such web site is not violative of the
foregoing rules on advertising and solicitation provided it does not
contain self-laudatory statements designed to solicit clients.

“A CPA in public accounting must display in conspicuous
space in its main office, in all its branches and in its web site the
Certificate of the Securities and Exchange Commission registering its
Article of Partnership, the current Certificate of the Department of
Trade and Industry registering the name of the partnership or the firm
the current Certificate of the Board of Accountancy and the Professional
Regulation Commission accrediting the partnership of the firms, the
current Certificate of the Board of Accountancy and the Professional
Regulation Commission accrediting the partnership or the firm and all
the other licenses, permits, or certificates hereinafter required by
law, rules or regulations on a CPA in public accounting.”

This Resolution shall take effect after fifteen (15) days following
its publication in the Official Gazette or in a newspaper of general
circulation in the Philippines, whichever comes earlier.

Adopted: 19 July 2000

(SGD.) ANTONIETA FORTUNA-IBE Chairman
(SGD.) EUGENE T. MATEO Vice-Chairman
(SGD.) MA. VIOLETA V. VICENTE Member	(SGD.) RUPERTO P. SOMERA Member
(SGD.) LIWAYWAY F. GENER Member	(SGD.) JOHN S. BALA Member
Attested:
(SGD.) CARLOS G. ALMELOR Secretary, Professional Regulatory Boards
Approved:
(SGD.) HERMOGENES P. POBRE Commission Chairman
(SGD.) ALFONSO G. ABAD Associate Commissioner	(SGD.) AVELINA DE LA REA TAN Associate Commissioner