SGV honors retiring partner

SGV partners honored retiring Assurance Partner Josephine H. Estomo (JHE) on 19 June with a program that was webcast from the Washington SyCip Development Center. Assurance Leader Martin Guantes and Talent Leader Julie Mateo hosted the program, with some members of SGV’s leadership also physically present and observing proper social distancing. Other partners virtually participated in the celebration from their own offices or their homes.

WPT, JHE and ARB during the retirement program

Country Managing Partner Wilson P. Tan (WPT) delivered the opening remarks and commended JHE’s outstanding contributions to the Firm, emphasizing her efforts in strengthening client relationships and developing the skills of generations of SGVeans.

Consulting Partner Leonardo J. Matignas prepared a video musical number and Assurance Partners Albert R. Bon (ARB), Shane D. Tanguin (SDT) and KC S. Catalan (KSC) shared their heartfelt messages for JHE. Assurance Partners Dhonabee Señeres, Jennifer Ticlao, Wanessa Salvador, John Villa, ARB, SDT and KSC presented a special video featuring JHE’s SGV journey with her colleagues, friends and staff.

JHE’s token of appreciation

Alumni Partners Pong Villamayor, Vic Ibe, Mar Aguas and Cynthia Manlapig also prepared messages for her. Chairman Itos Cruz delivered the closing remarks and emphasized her remarkable stewardship that has helped nurture SGV’s current and future leaders.

In honor of her 39 years of invaluable service to the Firm, JHE was presented with a token of appreciation – a sculpture titled A New Chapter. It depicts a woman reading a book under a tree, in her constant pursuit of new knowledge. The program concluded with a message from JHE who expressed her gratitude to SGV, her staff and colleagues.

Best wishes on your retirement, JHE!

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.

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
 

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

FSO ConsultingholdsClusterQuizNight

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.  

SGV leads BCCP webinar on business disruption

SGV Partners held a webinar on addressing business disruption for
the British Chamber of Commerce Philippines (BCCP) on 18 May. The webinar
discussed enterprise resiliency, economic transmission stimulus, and tax and
economic measures. Participants included representatives from member companies
of the BCCP and other executives from the business sector.

Consulting Partner and ASEAN Finance Fields of Play Leader Kaye S. Macaisa (KSM) presented recommended areas that enterprises can focus on for more effective COVID-19 crisis management. She shared tips on how enterprises and other businesses can sustain business continuity, build their resilience, and prepare for the future after the pandemic.

KSM, CGL and CCO presenting at the BCCP webinar

Financial
Services Consulting and Government and Public Sector Partner Christian G.
Lauron (CGL) discussed the bank stimulus transmission framework and its impact
on citizens, small businesses and corporations in the Philippines. Tax Partner
Cheryl C. Ong (CCO) spoke on tax and economic measures under the Bayanihan to
Heal as One Act (Republic Act No. 11469). She explained the measures
that the members of the business sector may qualify for and avail themselves of
under the Act.  

The
event’s organizing team included Global Compliance and Reporting
(GCR) Partners Aaron C. Escartin (ACE) and Maricris U. See (MUS). ACE was also
the moderator of the webinar.

For
more information about BCCP webinars and events, please email info@britcham.org.ph.

SGV JBS joins ASEAN tax briefing

SGV’s Japan Business Services (JBS) team participated in an EY ASEAN tax webinar titled “Navigating COVID-19: Now. Next. Beyond.” on 27 May. Conducted in Japanese, the webinar discussed the tax implications of the pandemic in various countries. Over 400 Japanese executives and tax professionals from Japan and from ASEAN member states attended the briefing. JBS and Tax Associate Director Hiroshi Nakagawa presented the latest Philippine tax, finance and legal changes due to the COVID-19 pandemic, such as ECQ-related BIR issuances on tax exemptions, extended statutory deadlines, and tax audit and controversy measures. Hiro also gave a brief overview of the stimulus packages of various government organizations, including the Social Security System (SSS), Philippine Health Insurance Corporation (PhilHealth) and the Pag-IBIG Home Development Mutual Fund (HDMF). He also explained the government’s social amelioration program (SAP) and small business wage subsidy, including moratorium on loan payments and rent concessions for MSMEs.  

Title slide of the presentation at the SGV JBS webinar

Hiro also explained the salient features of the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE). He emphasized the Act’s corporate tax rate reduction and extension period. 

FSO conducts BCM COVID-19 webinar

The SGV Financial Services Organization Banking and Capital Markets (FSO BCM) sector conducted a webinar titled “Impact of COVID-19 on significant PFRS requirements” on 15 May. The session provided relevant and helpful insights on the impact of the COVID-19 outbreak on significant PFRS 9 – Financial Instruments requirements. Financial Services Consulting and Government and Public Sector Partner Christian G. Lauron (CGL) moderated the session. Speakers included FSO Senior Director Redgienald Radam, FSO Senior Director Deofel Gil Usuquen and CGL. Nearly 300 finance, risk management, internal audit and compliance professionals from different financial institutions attended the webinar .

Speakers at the FSO BCM webinar

Speakers
discussed the application of expected credit loss (ECL) requirements that
incorporate the effects of the pandemic and the various government relief
programs in the measurement of ECL, accounting for forbearance and debt
modifications and related disclosure requirements on ECL. The session also
covered recently issued BSP guidelines on the reclassification of financial
assets under PFRS 9. The speakers also discussed fair value measurement in
volatile and uncertain markets.

The webinar is the first in a series conducted
by SGV FSO. The succeeding webinars will cover related topics on insurance,
health and pension, wealth and asset management, and the banking and capital
markets sectors. Those interested in
attending may contact Redgienald Radam at Redgienald.G.Radam@ph.ey.com or Mary
Catherine Biliran at Mary.Catherine.M.Biliran@ph.ey.com.

TFM leads PICPA tax webinar

Tax Partner Thyrza F. Marbas (TFM) led a tax briefing hosted by the Philippine Institute of Certified Public Accountants (PICPA) on 18 May. TFM discussed the latest Philippine Economic Zone Authority (PEZA) and Philippine Board of Investments (BOI) issuances, including relevant court cases.

PICPA tax webinar invitation

She also discussed tax reform packages, particularly the Corporate Income Tax and Incentives Rationalization Act (CITIRA) [HB No. 4157] and the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE). She explained their salient provisions and impact on PEZA- and BOI-registered companies .