Thank you, 2011

This year imprinted a lot of lessons and learning to me. Let me take this chance to recall and thank the people and happenings that made my 2011 so memorable.

I started this year with a memorable encounter with Lolo Peter in January (http://jayolos.blogspot.com/2011/01/night-i-met-peter-at-shaw-boulevard.html). That encounter made me realize that I should always keep my feet on the ground  and that life is all about serving and sharing to those people in need. 

This is also the year when our family suddenly became homeless due to a road-widening notice from the government. The land where our house in Antipolo is situated is a government property and will be directly hit by the Marikina-Infanta Road Project. Being the breadwinner and “acting head” of the family, I was compelled to do the negotiations and look for solutions to our relocation problem. Thanks to the loan extended to me by my previous employer, I was able to relocate my family to a decent house in Cainta where we are currently renting now.

During the 2^nd quarter of the year, I saw myself crying for the first time inside UP Theatre as I watch my younger sister receiving her conferment and degree in UP. All my tears, pains and sacrifices of working for years have finally paid-off. It was really a heavenly feeling. She have just recently passed the board and she’s now sharing her knowledge in a premier and exclusive school for girls in Ortigas.

Professionally and career-wise, I consider this as “my year”. I proved my worth in the private company I was working for through conceptualizing, leading and managing numerous projects in controls and compliance. I also made major contributions in the operational and financial processes specifically in change management, IT systems and compliance. As a result, I was regarded as one of the top three performers in our Division despite my being new to the company.

However, despite my stellar performance in the corporate arena, I still decided to shift gears due to some reasons. I made a U-turn and decided to go back to my first love - audit (http://jayolos.blogspot.com/2011/06/traversing-u-turn.html). I’ve received numerous other job offers from multinational companies (read - 6 figure average monthly!) but I still decided to be demoted by going back to being an auditor! (I think I’m out of my mind). As they say, first love never dies.

I also became more active in professional circles such as Global Risk Community, IIA, GRC circles and CPA forum. I decided to be more involved in moderating and helping aspiring accountancy students and future CPAs in their pursuit of the CPA license by giving advices and some tutorial help in my lines of specialties together with my co-officers. Thank you PinoyCPA.com!

Healthwise, this year I discovered my hidden passion in combat sports especially boxing. Boxing gave me the required discipline, work-life balance and it helped me further my networking and public relation skills (note: I chose boxing training over the Toastmasters’ sessions lol) as I was able to know other young professionals and top executives from different companies in the Makati Central Business District. It was also my first time to fight a beautiful and brainy lady lawyer in a sparring session where I willingly submitted myself as a punching bag haha!

As mentioned above, this year is my year of “insanity” as a friend calls it. So, I would like to thank my newfound friends, colleagues and very supportive and understanding bosses in my new employer. Thank you for giving me this opportunity to re-experience and relive my passion. I’m looking forward to the end of this upcoming busy season! We can make it! =)

Much more to say about the events happened this year so let me get straight to thank all of you. Before 2011 come to a close, I would like to take this opportunity to thank you all, my blog readers and followers. Looking forward to another year of camaraderie and friendship with all of you!

Thank you and let’s all have a Happy new year!

Upuan at Kamangmangan

CSR project na naman ang inatupag ko kanina. Pero sa pagkakataong ito, medyo sosyalin ang dating. Ikaw ba naman ang gumastos nang malaki para sa isang tiket ng isang dulaang pagtatanghal sa isang primerang estalisyimento, casino, pugad ng mga sosyalero’t sosyalera, artista o kung anupamang maitatawag doon. Masaya naman. Magagaling ang mga artista gayundin ang paglalapat ng musika (Manila Philharmonic Orchestra ba naman eh). At ang bida, binigyan naman ng hustisya ang role na ginampanan. Yun nga lang, medyo nakakagutom sa sobrang tagal. Kaya pagkatapos, tinungo ko na ang kainan ni Ibarra sa labas at pinatikim ko ang aking dila ng mga putahe ni Maria Clara.

Pero hindi tungkol sa CSR, o sa palabas, o sa kung anong kinain kong putahe ni Maria Clara bilang hapunan ang pakay ko ngayon. Tungkol ito sa kamangmangan.

Layunin ng CSR project namin ang makapagbigay ng mga upuan sa mga beneficiary public schools nito. Madali akong nakaka-relate dahil produkto rin ako ng isang public school system mula elementarya hanggang hayskul. Makailang beses na bang nabutas ang pantalon ko noon dahil sa sira-sirang upuan na may mga nakausling pako na kung minalas-malas pa ay wala pang armrest o kung meron man, kailangan ko munang kiskisin ng papel de liha para mabura ang sandamakmak na “flames”, cp numbers, drawings, kodigo at kung anu-ano pang uri ng bandalismo. Maswerte pa ako sa lagay na yan dahil nasa pilot class naman ako lagi kaya medyo bago ang mga upuan namin at di kami crowded sa section. Salamat sa mga nag-donate na taumbayan (inuulit ko, TAUMBAYAN, at hindi si mayor, congressman, governor!) na nagbabayad ng buwis.

Balik tayo sa kamangmangan. Nakakatulong naman talaga sa pag-aaral ang pagkakaroon ng magagandang pasilidad sa mga paaralan. Good facilities promote fun and comfortable learning. Sabi nga ni BF dati “Kapag ang Metro Gwapo, Tao Ganado” na ibig sabihin, maaaring dahilan ng katamaran mo sa trabaho ay ang pangit mong boss.

Pero may tanong lang ako, mako-compensate kaya ng pagkakaroon ng upuan, maayos na silid-aralan, at kumpletong mga pasilidad ang bumababang kalidad ng edukasyon natin?

Paano ang mga guro at ang kurikulum? Ito ang mga maituturing na “essentials” ng edukasyon. Kahit gaano pa kaganda ang mga pasilidad, kung mismong ang mga pinag-aaralan ay walang laman, walang sapat na edukasyong matutunghayan. “Substance over form” sigaw nung classmate ko dati noong Accounting 1&2.

Pero may substance nga ba? Halika tingnan natin kung may substance nga. Subaybayan natin ang isang buong araw ni “Jolina”.

Gigising siya sa umaga (syempre, alangan namang tanghali haler!), maliligo, magaayos ng sarili, mag-aalmusal at pagkatapos ay papasok na sa iskwela. Pagdating sa iskwela, late ang teacher nila ng mga 30 minuto. Nung dumating, may inilabas na Tupperware box na naglalaman ng mga kakainin tulad ng yema, boy bawang, espasol, at kapag may puhunan, tocino at longganisa. Bibigyan niya ng extra points ang mga bibili ng tinda niya. Kaya si Jolina, hala sige, bili na! Matatapos ang klase nila na sila Jolina ang nagtuturo este “nagrereport” kuno sa harapan ng leksyon na dapat sana’y sila ang tuturuan. Pero hayun si teacher, nasa likod, ka-text si manong hardinero. Ubos na yata talaga ang chalk allowance niya dahil di na siya nagsusulat sa pisara.

Recess na. Pila sila sa kantina para bumili ng makakain. Pizza pie na inaamag na; sopas, mami at champorado na mukhang pangatlong init na; at siopao na may tuldok sa taas pero walang laman sa loob. Si Jolina, di na kumain, busog na siya sa yema, espasol at kutsinta ng teacher kaya di na siya kumakain. Kasama na lang niya si Marvin – ang varsity ng basketball na boyfriend niya. May binulong si Marvin na ikinakilig ni Jolina.

Dumaan ang mga klase nila – Math, English, Science at Social Studies. Masipag magsulat si Jolina kaya sulat lang siya nang sulat sa notebook niyang “Star Circle”. Pero mas iniintindi pa niya kung paano kaya niya magagaya ang idol niya na nasa notebook cover niya na si KC Concepcion kesa sa mga lessons na isinulat niya. Pagdating tuloy ng exam, nangangabisado na lang siya.

Pag-uwi sa bahay, nood agad ng TV korenavola habang ka-text si Marvin. “e0w f3oWh” sagot naman ng kumag sa kanya. Di pa nakuntento nagbukas ng Facebook at Twitter. Nag-update ng mahabang status sa FB na ang sabi “Haaayzz” sabay post ng bagong picture na naka-pout ang lips at nakangiti. (ang labo mo ‘teh!)

Nagtataka lang ako kung bakit ganoon si Jolina. Nalaman ko na lang, lasenggero pala ang ama at sugarol at tsismosa ang ina (what a combination?) na ang tanging bilin lang sa kanya ay “Mag-asawa ka ng mayaman wag kang tutulad sa akin na nakapangasawa ng walang kwenta mong ama”.

Di nagtagal, sa kakahanap ng sense of belonginess at caring, si Jolina, biglang napa-barkada, laging si Marvin ang kasama hanggang isang araw, nalaman na lang ng buong campus na siya ay buntis na. Wala na tuloy umuupo sa bagong upuan na dating inuupuan niya.

***

Kamangmangan. Yan ang sugat ng ating lipunan. Isang sugat di pa naghihilom bagkus, lalong lumalala. Na habang tumatagal, nagkakaroon ng impeksyon at nakakahawa. Sa katunayan, ang impeksyong ito ay laganap na at unti-unti tayong binubulag at pinapahina.

So ano nga ba ang solusyon? May naiisip ka ba? Kasi wala akong maisip. At kung mag-iisip man ako at magsasabi ng solusyon, may makakaintindi pa kaya. Lalo na sa lipunan natin ngayon, di mo na mawari kung sino ang tunay na mangmang at nagmamang-maangan lamang.

Is a 47.69% passing rate good or bad?

Wow! I can’t believe I have no posts for the past two months here. Sorry guys, I’ve been been so busy lately. As we all know, this time of the year is the budget and planning season for most of the companies.

First of all, I would like to congratulate all our October 2011 Philippine CPA Exam passers! Cheers guys! I know you are still in cloud 9 up to now and your family and friends are so proud of you. You are the talk of town especially if you are among those topnotchers.

The recent passing rate is 47.69% or close to 50%. For a notorious exam like the CPA exams, this is a big feat. I remember during my time when the passing rate ranges only from 19% to 22% and in one instance, not so long ago (I have to stress this as my “young once” bosses and friends are looking at my blog haha), that the passing rate was only around 12% - 14%! Wow! Times are really changing nowadays.

Some attribute this significant jump in passing rates to the increasing demands for the accounting professionals here and abroad so the licensing authorities are pressured to increase the produce of new CPAs. Recent news is filled with the continued booming of the BPO sectors that demands the skills of professional accountants in their workforce. Investments continue to flow to the country and the region. New businesses are being established. Indeed, by the resiliency demonstrated by this part of the globe, we can say the sun shines at the eastern part of the globe – Asia.

Some observers are posing questions in terms of quality. Does it mean that the recent batch of CPAs are of lesser quality as compared to the other batches?

I’m just a bit concerned about the reverberating effects of this huge number of new CPAs in terms of their employment. I know of certain colleagues who have just recently passed the May 2011 exams (passing rate: 40.50%) who are still struggling to find work. Be it noted that, unlike before, CPAs now cannot just certify and sign financial statements right after passing the board. There are numerous accreditations needed in order for one to practice his or her license. Unless he or she is of an entrepreneur kind, there is no choice left for them but to revert to employment. And finding one good employment or employer is another story. 

What do you think?

25 lessons from my 25 years

August 31, 2011. I have just officially turned 26. A new leaf of a new beginning is about to unfold. At this moment, I am in a state of nostalgia of the past 25 years of my life trying to recall all the memories and the lessons learned from the past 25 years of my existence. As a result, I come up with the 25 things I learned about life, love, friendship, failure and success for the past 25 years.

1.       A life without a purpose is like a gun without a bullet - it’s useless.

2.       There are no bad decisions. Only a failure to make one.

3.       All stories are love stories.

4.       Inferiority is a disease while superiority is hallucination.

5.       The world is initially black and white until one experienced to love and be loved.

6.       Big waves come from small scribbles.

7.       Success in business and in life depends more on your mental attitude than your mental capabilities.

8.       Friends come and go but their influences remain.

9.       A job is far different from a career.

10.   There is a world of difference between sound good reasons and reasons that sound good.

11.   Sell the sizzle not the steak.

12.   To gain one pound of success, be willing to eat tons of failure.

13.   Never ever say “I told you so”. Instead, ask them “How can I help?”

14.   If you can’t find a way, make one.

15.   Be not afraid.

16.   Algebra teaches us that in order to solve for “x”, we need to understand first “y”. The same is true in life.

17.   You are what you are not because of your upbringing, family, or affiliations but because of the choices you’ve made.

18.   Money is important but not essential. Dignity and integrity are.

19.   If you have the beauty, brains, money, and power, sleeping at night can be so difficult.

20.   Don’t just go with flow. Think first if you are in the right river.

21.   When in doubt, pray.

22.   In ascending the corporate ladder, building relationships is much important than building an arsenal of technical specialties.

23.   If you missed the train, wait for the next one. You may come late to your destination but you are still assured that you’ll get there.

24.   The world is full of disloyalty and deception. So be true to yourself.

25.   To love and be loved is the greatest achievement of life.

Apologies for the wrong grammar (if any). Attempting to rewrite every lesson learned from every experience is really hard.

Anyway, thanks for all your greetings!

Looking at the "Cloud"

(Sorry for the delay. Been busy lately. Here’s my article about cloud computing)

The increasing globalization has posed significant changes in the way we do business. As a result, process improvements led to automation, sophistication, and reduction of resources needed for business. One of these is the introduction of Cloud Computing.

The term cloud computing became the new buzzword when companies like Amazon.com, Google, HP, IBM, and Microsoft launched their cloud computing platforms that supports information processing and the delivery of services to their customers. It is defined by the National Institute of Science and Technology “as a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction”. Simply put, it refers to a “server-less” environment either on premise or on-demand by utilizing the web.

Why utilize the cloud?

The main driver towards the buy-in of cloud computing services by CFOs and CEOs is cost savings. In a cloud computing environment, there are no new infrastructure, no personnel training, no license cost, and no periodic maintenance cost (since it is server-less). Usually, cloud computing is subscription-based and pay-per-use service. An additional advantages of committing into a cloud computing service are agility, device and location independence, reliability in case of disaster, scalability, performance, security and maintenance.

Is there really cost savings?

However, CFOs and CEOs must be aware that the perceived savings from these cloud computing environments may not be fully realized because of the “hidden gotchas”. Jeff Muscarella, executive vice president of IT division of NPI, a spend-management consultancy says “six months-in, the CFO might be wondering where all the savings are”. According to him, there are six potential pitfalls that can make cloud cost pile up higher than expected:

1. Not taking full account of financial commitments on existing hardware. IT departments that have much of the responsibility for technology decisions and purchases may underappreciate the financial impact of committing to a cloud provider before existing physical equipment is fully depreciated. If that equipment cannot be repurposed, the ROI of moving computing workloads to the cloud may suffer.

2. Not factoring in your unique requirements when signing up for a cloud service. Most cloud offerings are fairly generic, as they are designed for the masses. For specialized needs, such as a retailer's need to comply with payment-card industry regulations, a company is likely to face additional charges. Be sure you understand such charges before signing a contract, says Muscarella.

3. Signing an agreement that doesn't account for seasonal or variable demands. In the contract, don't tie usage only to your baseline demands or you'll pay for it. If high-demand periods are not stipulated up front, there are likely to be costly up-charges when such periods happen.

4. Assuming you can move your apps to the cloud for free. Many software licenses prohibit the transfer of applications to a multitenant environment, but the provider may let you do it for a price. If you think you may want the flexibility, ask for such permission to be written into licenses at the time you're negotiating them.

5. Assuming an incumbent vendor's new cloud offering is best for you. Many providers have added cloud-based infrastructure to their traditional outsourcing and hosting services, but they're not motivated to give existing customers the lower price point that the cloud typically offers. "They're struggling with how to develop these new offerings without cannibalizing their existing revenue stream," says Muscarella. If you want to switch to a vendor's cloud services, do it at the end of the current contract term, when you can get negotiating leverage by soliciting other vendors.

6. Getting locked in to a cloud solution. Some cloud-services providers, notably Amazon, have a proprietary application program interface as opposed to a standardized interface, meaning you have to customize your data-backup programs for it. That could mean trouble in the future. "Once you have written a bunch of applications to the interface and invested in all the necessary customizations, it will be difficult — and expensive — to switch vendors," says Muscarella.

How secure is the cloud?

Data security and confidentiality have been the two major criticisms of the cloud computing environment.  Since cloud computing service providers essentially control and traffic a company’s data, a company usually cast doubts on the protection and privacy of its precious information. Most of the issues can be grouped into data access, data segregation, privacy, accountability, and account control. As we all know, the internet is a dangerous place where viruses, spam, and malicious sites exists. Not to mention the possibility of unscrupulous persons who might sell company information, including its employees information, to others.

IT experts have been arguing on the robustness of the security, accessibility, privacy and control of the cloud services. Others argue that on-premise cloud service is more vulnerable than the on-demand ones. Most of them claim they have built-in controls and has the capability to sustain it amidst the emerging challenges in the computing industry today.

How can we audit the cloud?

As an auditor, I personally experienced some difficulties in looking for procedures to audit the “cloud”. Unlike the typical and traditional ITGC audits, having a cloud service environment poses a disruption of linkage towards auditing the application level automated controls. Even Automated GRC Solutions is futile when it comes to monitoring the cloud as these solutions cannot connect and extract data from the cloud. What we can actually see is the input and output but not on how the processing is being performed. While cloud services argue that they only extract data residing in the ERPs, the auditors find it difficult to validate if the extracted data are really complete, accurate, and secure.

But since cloud computing falls on the category of a service provider, most resort to the procedures on auditing standards related to the audit of Service Organizations. Most providers obtain SAS 70 Type II certification by an independent auditor. But even this has been criticized on the premise of usually non-disclosure of standards used by the auditor and the auditee which may not be the same as the standards being looked upon by the user of the certification.

In summary, after all the arguments we raised, one this is for sure – cloud computing is making a significant change in the business landscape of this century. Companies, executives, stakeholders, auditors, consumers and clients and the general public must be alert on these kinds of development as it will surely affect their day-to-day activities as well as their precious information. 

Traversing the U-Turn

It’s been two years since I left one of the Big 4 as an audit senior.  But it feels like I left something in that CPA factory that I want to get back.

I left two years ago for a number of reasons.  I want a fair manager. I want to have a clear and defined work schedule like 8 to 5 or 9 to 6. I want to experience going to bed as early as 9PM every night.  I want to get rid of “sleepcomputing” which means calculating income tax payable in my dreams. Not to mention “sleep meetings” or when I speak while sleeping murmuring something like “Na-post na ba ung mga CAJE? Na-book na ba ung mga adjustments?”.  I want the idea of having my own cubicle without a messy desk filled with working papers and drafts of financial statements and audit reports. I want to experience a hassle-free, relaxed and smooth-sailing second week of April  -  before April 15. I need money to pay my bills. Simply put, I want the so-called “life”.

So I left public accounting and joined the bandwagon of “emancipated ones” and entered a multinational bank as an analyst for its Financial Planning and Analysis team or FP&A. FP&A is a sexy term so I thought it might suit a sexy guy like me (This is my blog! I have authority to say anything lol). And it did but only on the orientation day. The next days suddenly became a hell for me. I find routine accounting and finance works pretty boring. Everything is automated! And all I have to do is to extract or download data and “copy and paste” them into an Excel template where I extend only the formula in each cell after another series of “copy-paste” to generate the journal entries for posting to another application system.  I don’t even know what those numbers represent, or even the entries I post. I felt like I dropped my brain somewhere along Paseo de Roxas and I don’t mind of looking for it because I was able to survive for weeks without it anyway. The only best thing that I look forward everyday is having a cup of Bistro Deli’s brewed coffee and choco butternut doughnuts for breakfast (why mind of eating transfat if it’s the only thing that keeps me sane?!).

Then, after experiencing a life-changing retreat at Mt. Banahaw with Frank Regis as our facilitator, I rediscovered the purpose of my life. I am not meant to be an analyst or even an accountant. I still like doing audit and assurance and even consulting. Hence, I resigned after six months and joined a pharmaceutical giant as a risk and internal control professional.

Risk and Compliance is another sexy term. I was involved in a pioneering Governance, Risk, and Compliance (GRC) automation project in the country. The compensation and benefits are really really great! Everything went well as I was able to apply my expertise in risk and control. I introduced best practice tools, I crafted a Control Self-Assessment Program and a Risk Awareness Campaign program. I facilitated trainings and workshops for process owners and I was also able to practice the writer in me via articles posted in the Company intranet and publications, and drafting/co-authoring/reviewing policies and procedures for the Company.  If not for my Big 4 experience, I wouldn’t be able to create everything from scratch.

You might be asking why the hell I still want to get out of my current work. Here’s the big picture: My work is superb, benefits are good, gym and boxing classes are free (this is a big opportunity cost for me lol), lots of bonuses and others. But I need to tell you I am three levels below the appropriate position or level in terms of my knowledge and skill set. I am receiving only half of my market value salary.  I am the youngest employee there in my 20’s while they are in their late 40’s and 50’s yet I patiently answers their naïve questions like “why do we need to test the design of a control?” and directs them on what to do (and they call themselves managers and directors).  Now I understand why external consultants didn’t have a hard time winning an engagement with these kind of companies.

You know, the unpleasant reality in large private companies is there is the limited and snail-paced career growth. Learning stops and trainings comes in a leap year-like manner.  You need to patiently wait for years and years until your boss retires, resigns or transfers to another department. But that itself is not an assurance because the trend nowadays is to replace them with outsiders from other companies.  In fact, there are employees who are stuck in their staff positions for 5, 10, 15 or 20 years or more.  Politics oftentimes serves as a great catalyst for climbing the corporate ladder and if you don’t belong to the so called “fraternity” forget about getting inside the inner circle of VP’s and C-level executives.  

If you are a CPA and you learned that the Finance Department (which is composed mostly of CPA’s) is the lowest paid (one reason is because it’s only a support service department), you might feel like you are a victim of your college professor who tortured you in every quiz and departmental exam during college. You didn’t took and passed the notorious CPA exam just to later on learn that those guys who play billiards during office hours at the company gym are the owners of top of the line cars parked outside the building. You dread yourself reconciling the balances, processing their transactions, payroll and month-end reports, while knowing that you can’t even buy a second-hand car in the profit share you received.

When I told these things to my superior he can’t but help to ask “Ang galing mo talaga. Paano mo nalaman agad yang mga yan?” which I answered, “Sir, auditor po ako. I know the control environment component of COSO by heart at malakas ang aking pakiramdam”.  Then he gave-up on brainwashing me in order to retract my resignation.

So I tendered my resignation and it shook our Boss’s cranium. Of course that reaction is expected because he will be handicapped after 30 days. It’s the middle of the year and performance evaluation is due at the end of the current month and it might affect his rating. But I promised to exit gracefully by completing all the scheduled deliverables up to the effective date of my resignation. People who attended my training and workshop didn’t even have a clue that I have already tendered my resignation because of my lively performance at the podium two days later.

Last week, as I was looking for copies of the financial reports I produced last 2009 (I am set for a partner interview in a Big 4 firm), I saw one small blue booklet which I used during my college and review school days. I browsed over its brownish pages and one small note caught my attention and made me bit my lips in an attempt to refrain from falling a tear. It read,

“Jay Olos, CPA, CIA, CFE, CMA, MBA,

Chairman, Olos, Olos & Co., CPAs”

I remember writing it while reviewing an Auditing Theory handout at PRTC Library sometime in 2006. It reminded me of my goal and my ambition. It reminded me of the interview question thrown at me by an HR Manager which I confidently answered “I wanna be a partner”. And it reminded me that it’s the right time to get back on track while the potential salary drop in my current compensation won’t hurt so much.

Some might be asking right now if I am out of my mind to go back to a job that demands meter-breaking stress levels. Well, maybe yes, I’m out of my mind and that’s made me distinct. The distinction I have as a CPA is my only weapon to rise above the rest of the working class just like other professionals do. Doctors have patients, teachers have students, lawyers appear on courts, engineers and architects builds buildings and infrastructures and even licensed personal trainers have gym clients.  So am I as a CPA, I should have my clients too. I wanna be my own boss with unlimited income potential.  I view it not as stereotyping but rather a pure professional calling. Yes, I am one of the 2% who had the calling to stay on one of the world’s toughest yet underpaid jobs.

I’m into a crossroad again, walking slowly as I think about the entirety of my career as of date.  I’ve been through all phases of accounting careers – finance, internal audit and risk management, public, and private. Having experienced both worlds gave me a realization of which career path to take.  

I have decided. I’m gonna make a U-turn.

I am the Boss, I am the Generation Y

In one of our conferences, one senior executive commented during our forum, “Bakit kaya ang mga bata ngayon masyadong nagmamadali?” When I heard that question, I want to give the answer right away but my conscience told me otherwise. I thought answering that question will surely result into a blah-blah! (story-telling) of their struggles and experiences which will result in giving me an unsolicited advice like “Hijo, marami ka pang kakaining bigas. Darating ka rin doon.”

I really hate comparing the past with the present.

So I glanced at all other yuppies inside the room. Looking at their eyes, I sensed we all felt the same at that moment. Indeed, we are the Generation Y. So in response to this senior executive, I am writing this blog entry.

Generation Y is the big chunk of the current workforce around the globe which is currently around 76 million and still counting. We are the young 20-something fresh faces arriving to work with our flip flops on, listening our iPods, and juggling emails and online social networking sites through our iPhones and Blackberrys while waiting at the train stations or just anywhere else.

We put emphasis on work-life balance. We are not afraid to challenge the status quo. We are not afraid of authorities (in fact, we question them most of the time). No we are not pasaway. It’s just that we were raised by our parents (the baby boomers and Gen X who are both deprived of the good things in life due to the war conflicts and labor-intensive set-up) by giving us anything we need (from soccer and ballet summer workshops up to attending the best schools they could afford).

We are not suckers to “loyalty program” of our employers and less likely to respond in a traditional command-and-control type of management. We speak our minds and we are likely to be engaged in environment where creativity and non-traditional thinking thrives.

The lessons learned from the past such as the financial crises, Enron and Worldcom scandals, the dot com-burst, and massive layoffs induces us to play smart with our finances and makes us less likely to stay in one job and in one employer. We purchased insurance plans, stocks, mutual funds and saves a portion of our salary for early retirement. We are daring to build new ventures and engage into business or entrepreneurship after some years of employment.

We hold the key to information in this era – the Information Age. We believe in our self-worth and value which makes us outspoken in catalyzing change in the companies we work for. We are multi-taskers so please don’t give us that same old routinary job if you want to retain us.

It is sometimes uneasy working side-by-side and sometimes directing grumpy and close-minded 50-year olds.

If you want to hire and retain us, be sure that you have something that will entice us. I’ll give you a clue, we like to work in a friendly, relaxed, expressive and open-minded atmosphere. We want recognition for all our efforts and if we feel we are unrewarded by our current employers, we know someone else will so we can instantly clear our desks and pack-up our things.

However, I would say we need continuous guidance. Our moods, ways and feelings are impacted by what we see, hear and read in media (mostly TV and Internet). I believe we still need the wisdom of the elders when it comes to love, relationships and personal success.

Much more to say, but the bottomline is - whether you like it or not, we are the force that keeps this world from moving. We are inevitable. Employers and older workers must understand us and adapt to our ways and means.

Because we’ll be the bosses of the very near future. 

The night I met Peter at Shaw Boulevard

Enero 5, 2011, bandang 7:30 ng gabi – habang hinihintay ko mag-red ang stoplight para makatawid ako ng Shaw Blvd. patungong San Miguel Avenue, napansin ko na may matandang nakaupo sa tabi ng poste ng Meralco dalawang hakbang ang layo mula sa kinatatayuan kong sidewalk sa tapat ng BPI Sheridan Branch. Sa sulok ng aking paningin, nakita ko siyang tumayo at unti-unting lumapit sa akin. Mahaba ang kanyang puting balbas. Suot niya ay maputik, patung-patong na damit na sa pinakaibabaw ay kulay dilaw na sweat shirt. Marumi rin ang kanyang pantalon na sinusuportahan ng sirang belt at isang sumbrebrong tila napulot lang niya noong araw ng pasko mula sa mga stuff toys. May bitbit siyang sira-sirang bag at payong na kulay blue.

Di maitatangging mukha siyang ermitanyo o pulubi.

Nang makalapit na siya sa akin, akala ko’y mamalimos siya. “Pwede ba magtanong?”, wika niya. Sa aking pandinig, sa tingin ko hindi siya taga-rito sa Maynila dahil sa punto ng kanyang pananagalog.

“Ano po yon?”, tanong ko.

“Saan ba sakayan papuntang Jenny's? Papunta ako ng DSWD sa Cainta kapitolyo. Sabi sakin sa Quiapo may jeep papunta sa Cainta kapitolyo”, paliwanag niya sa akin.

“Sa Cainta Municipal Hall po ba? Doon po ang sakayan nun”, itinuro ko ang direksyon kung saan may mga bus na dumadaan patungong Cainta. Nung makita niyang malayo ang aking tinuturo, tila nanghina siya. Tinanong ko siya ulit, “Taga-saan po kayo ‘tay?”

“Bohol”, sagot niya

“Bakit po kayo nandito sa Maynila?”, usisa ko.

“Nilalakad ko ang retirement pension ko. Punta ko DSWD makahingi man lamang pampagamot. Kay..may sakit ako anak. Almoranas. Masakit”, paliwanag niya. Naalala ko bigla ang nanay ni Boss ko na namatay sa sakit na colo-rectal cancer. Nagsimula lang daw yun sa almoranas. Sa tingin ko sa matandang kaharap ko, mukhang malubha na ang lagay niya. Na-curious ako sa sinasabi niyang retirement o pension kaya…

“Ano pong trabaho nyo dati?”, tanong ko

“Principal ako sa isang elementary school sa Bohol noon. Ikaw? Saan ka nag-trabaho?”, sagot niya sa akin. Ang tagal ko bago makasagot. Bigla kasi akong namangha. Principal! Isang guro ang kaharap ko.

“Accountant po ako. Dyan po ako nagtatrabaho”, sabay turo sa direksyon patungong United Street.

“Accountant?! CPA ka?” usisa niya.

“Opo”, sagot ko.

“Wow! Malaki ang sweldo mo. CPA eh. Laki yan”, nakangiti siya sa akin.

“’Ah hindi naman ‘tay. Sapat lang din. ‘Tay, gabi na po. Sarado na po ang DSWD o ang Cainta kapitolyo. May matutuluyan po ba kayo dito?”

“Pwede ako sa francia. Cogeo”. Malapit lang sa inuuwian ko sa Cogeo ang lugar na yon. Atubili akong magbigay ng direksyon sa kanya dahil hindi nga niya alam ang lugar ng Maynila. May kaibigan pala siyang naninirahan sa Penafrancia. Niyaya ko siyang sumabay na lang sa akin dahil madadaanan ko naman yung lugar na yun at maaari ko pa siyang ihatid tutal mababaw pa naman ang gabi. Tumanggi siya. Wala daw siyang dalang pera. Nakangiti niyang itinanong kung magkano ang pamasahe hanggang francia. Singkwenta pesos. Napaatras siya. Saktong singkwenta lang pala ang pera niya. Tapos kinabukasan, pupunta pa siya sa Cainta at mamasahe ulit. Umupo siya. Sinundan ko siya. Sobrang naawa ako eh. Sabi ko sagot ko na pamasahe niya at bibigyan ko na rin siya ng pamasahe para bukas. Pero ayaw talaga niya dahil mas gusto na lang daw niya magpahinga na dahil iniinda niya ang sakit na nararamdaman niya.

“’Tay, huling tanong po. Gusto nyo po bang sumabay sa akin? Sa Cogeo po ako umuuwi. Ihahatid ko po kayo sa francia”, tanong ko. Tumanggi pa rin siya.  Tinuro nya ang direksyon papuntang Starmall. May waiting shed naman daw sa malapit sa overpass sa banda na yun at doon na lang siya matutulog.  Desidido talaga siya na doon na lamang.

Kaya’t nagdesisyon na akong umalis. Pero bago ako umalis, may isiniksik ako sa palad niya na magagamit niyang pamasahe at pambili pangkain na rin. Nagpaalam na ako.

“Sandali lang. Anong pangalan mo?”, tanong niya sa akin.

“Jay po. Jay Olos po”, pakilala ko.

“Ah Deng… Deng Olos. Salamat… pagpapalain ka ni Hesus. Di kita kakalimutan Deng Olos”, kimi ngunit nakangiti niyang sambit sa akin.

“Jay po. J-A-Y. Jay Olos. Kayo po ‘tay, ano pong pangalan nyo”, pagtutuwid ko sa aking pangalan. Napag-alaman kong mahina na rin ang pandinig niya. Bago siya nakasagot, inipinakita niya sa akin ang kanyang Senior Citizens ID na suot suot niya.

“Peter Pelegrino”

Nag-red ang stoplight. Tumigil ang mga dumaraang sasakyan at tumawid ako patungo sa kanto ng Lourdes School. Habang nilalakad ko ang San Miguel Ave. sa tapat ng One San Miguel Avenue building, bigla kong naramdaman ang kirot sa kaliwang paa ko na sanhi ng cramps ko kanina habang nasa gym ako. Naisip ko, wala pa ang sakit na to kumpara sa sakit na iniinda ni Lolo Peter. Nasa isip ko pa rin siya habang naglalakad ako. Isang retired teacher at principal mula sa Bohol. Naglalakad ng retirement benefits niya sa Maynila. Walang pera. Walang matutuluyan. Edukadong pulubi. Nanghihina. Naisip ko na hindi pa rin sasapat ang binigay ko sa kanya. Paano ko masisigurong ibibili niya ng pagkain yon? Baka kasi ipunin lang niya para sa pamasahe niya. Hindi! Narararamdaman ko na kelangan niya ng higit na tulong.

Nang mapalingon ako sa kanan, natanaw ko ang Jollibee Hanston Square branch. Nakaramdam ako ng gutom. Simula na kasi ng diet at exercise ko nung araw na yun. Naisip  ko si Lolo Peter. Di pa rin siya kumakain. Nagdesisyon ako – kakain kami! Dali-dali akong bumalik sa kinaroroonan niya. Natagpuan ko siyang nakaupo at nakayuko na tila hapung-hapo sa maghapong paglalakad at pagtitiis ng gutom. Naawa ako sa aking nakita. Nag-withdaw ako sa ATM. Dadagdagan ko ang ibinigay ko sa kanya para maging sapat na para makasakay siya ng barko pauwi sa Bohol.

“’Tay, halika kain tayo,” bungad ko sa kanya. Hinawakan ko siya sa balikat. Nahihiya siyang napangiti.

“Saan tayo kakain”, tanong niya.

“Diyan na lang sa Jollibee”, sagot ko.

“Jollibee!”, animo’y isang bata siya sa kanyang reaksyon. Bumabalik na rin pala siya sa pagkabata. Inakay ko siya patawid at tinungo naming ang Jollibee Hanston. Inaalalayan ko siya. Mabagal siya maglakad. Halatang may iniindang masakit sa isang parte ng katawan. Pinagtitinginan na kami ng mga tao na may iba-ibang reaksyon. May mga nandidiri pa sa nadadaanan namin pero wala akong pakialam sa kanila. Mas tao ko pang maituturing ang kasama kong kakain ngayong gabi. 

Walang masama sa pagtulong. Pagkakataon ko ito para masuklian ang mga itinuro sa akin ng aking mga naging guro na pinagkakautangan ko ng lahat ng nalalaman ko ngayon. Si Lolo Peter ay isang guro. Ang gagawin kong ito ay isa lamang pagtanaw ng utang na loob. Pagkat noong ako’y uhaw at gutom sa karunungan, silang mga guro ang bumusog sa akin. Ngayon, isa na akong propesyunal na may nakilalang isang gurong nagugutom at nangangailangan ng tulong. Bilang ganti, siya naman ang bubusugin ko.

One-piece fried chicken with rice, pineapple juice at peach mango pie. Habang kumakain kami, napansin kong di niya masyadong kinain ang fried chicken. Panay ang inom niya ng pineapple juice. Ibabaon na lang daw niya iyon para may makain pa rin siya bukas. Biglang nanahimik ang mga maiingay na call center agents na nasa katabing table nang marinig nila ang sinabi niyang yon.

Marami kaming napagkwentuhan. Siya si Peter Pelegrino. Tubong Mabini, Bohol. Dating school principal. BS in Elementary Education graduate mula sa Divine Word College sa Tagbilaran at may Master’s degree pa sa Filipino. Kaya naman pala magaling siyang managalog. 70-anyos. May isang anak na nasa Bohol. Dumating sa Maynila noong March 2010 upang lakarin ang nausyaming retirement benefits na pinangako ng mga nakaraang pamahalaan. Nag-file ng candidacy para sa pagka-Pangulo noong nakaraang eleksyon at isa sa mga idineklarang nuisance candidates. Fluent mag-English. Magaling ang diction niya. Relihiyoso. Masayahin. Positibo ang pananaw sa buhay. Mabait. Simple. “Ang swerte ng mapapangasawa iho. Gwapo, macho, maputi. May pusong ginto. Siguradong maraming magkakagustong babae sayo”… Bolero rin pala siya. Hahaha!

Nagtawanan kami. Subalit sa loob ko’y nahahabag ako. Habang iniikot-ikot ko ang tinidor sa spaghetti na kinakain ko, unti-unting namamasa ang mga mata ko. Bakit ba kelangang maghirap ng mga taong tulad niya na ginugol ang buhay sa paghubog ng mga bagong henerasyon? Nasaan ang mga pangako ng mga nagdaang administrasyon?

Sana lahat ng tao tulad niya. Humanga ako sa kanyang pagiging positibo. Kahit na naghihirap na siya at tila pulubing natutulog kung saan-saan sa mga lansangan ng Maynila, naniniwala pa rin siya na matatapuan rin niya ang hinahanap niya. Kahit na unti-unti ay itinutulak na siya ng kanyang karamdaman patungo sa kanyang dapit-hapon. Sabi niya “God did not create death. There is no death. If man chooses to be kind and righteous, his name will be forever written in the book of life”. Humanga ako talaga.

“Hindi lahat ay katulad mo. Ang ibang tao, masyadong mataas ang tingin sa sarili dahil sa nakatapos sila at may mga magagandang trabaho kaya di ka pinapansin. Jay, nakasulat na sa aklat ng buhay ang pangalan mo. Mabuti kang tao. Hinipo ka ng Diyos para tulungan ako. Pagpapalain ka Niya”, nakatitig siya sa aking mga mata habang sinasabi niya ang mga salitang ito na hindi ko makakalimutan. Ayokong maramdaman niya na naiiyak ako. Kaya’t inilabas ko na lang ang cellphone ko at piniktyuran ko ang aming mga sarili.

Bago kami maghiwalay, biniro ko siya. ‘Wag ‘ka ko siyang mag-alala dahil kapag naging Presidente ako, hahanapin ko siya. Susuportahan daw niya ako at ikakampanya sa Bohol at sa buong Pilipinas pa. Nangako naman siya na kapag nakuha na niya ang pension niya, pupunta raw siya ng Cogeo at hahanapin ako. Sabi ko wag na lang dahil araw-araw naman akong dumadaan sa Shaw Blvd. Doon na lang niya ako ulit hanapin. Tumawa siya nang malakas.

Naghiwalay na kami. Habang naglalakad ako, panay ang panalangin ko sa Diyos na sana ay ‘wag niyang pababayaan si Peter at ang mga tulad niya. Sana ay pahalagahan ng mga tao ang mga tulad niya. Sana imbis na sa kung anu-anong walang katuturang paggastos inilalaan ng mga tao ang mga yaman nila, maglaan na lamang sila para sa pagtulong sa mga tulad ni Peter na nangangailangan.

At sana kapag naabot ko na ang aking pangarap, mahanap ko pa rin siya upang tuparin ang kanyang munting kahilingan.

Calendar Year 2010 Financial Reporting Must Have’s

Happy New Year everyone! This will be my first blog entry for this year of the rabbit. I hope you find this article useful and sensible J

It's a new year which means accountants are now beginning their year-end closing and reporting cycle. Auditors are also busy preparing their year-end audit work. For sure, many multinationals are now busy preparing their reporting packages especially those with tight-deadline such as within this week (I can relate. The sweet life of audit work is still fresh LOL)

For local statutory reporting purposes, April 15 is the tax deadline. The financial statements along with the required reportorial requirements (e.g., Annual Income Tax Return) are to be received by the Bureau of Internal Revenue (BIR). The Philippine Securities and Exchange Commission (SEC) requires companies to submit financial reports 120 calendar days after the end of fiscal year. Be it noted that the SEC will only accept those financial reports duly stamped as "received" by the BIR.

But before that, let’s try to recall the numerous updates that we need to know before preparing our financial reports and submitting it to these government offices.

PFRS for SMEs

The local accounting scene introduced its own version of Standards for Small and Medium Enterprises (SMEs) last 2009. SMEs are those companies with total assets of between P3 million to P350 million or total liabilities ranging from P3 million to P250 million.  The Philippine Financial Reporting Standards (PFRS) for SMEs is made in response to a set of rules applicable to SMEs as the full PFRS applicable to large companies does not fit-in to those SMEs.

The said stand-alone standard for SMEs features changes such as:

·         Investment properties must be measured at fair value and not at cost.

·         Property, plant and equipment must be measured at cost less any accumulated depreciation and accumulated impairment losses. There is no option to revalue the property, plant and equipment assets.

·         Intangible assets must be measured at cost less accumulated amortization and accumulated impairment losses. They cannot be revalued.

·         For employee benefits, actuarial gains and losses must be recognized in full in the income statement.

·         Research and development costs must be expensed as incurred and must have a finite useful life. Otherwise a useful life of 10 years is assumed.

·         Borrowing cost is expensed out.

RR No. 15-2010

The BIR issued last November 17, 2010 RR No. 15-2010 entitled “Amending Certain Provisions of Revenue Regulations No. 21-2002, as Amended, Implementing Section 6 (H) of the Tax Code of 1997, Authorizing the Commissioner of Internal Revenue to Prescribe Additional Procedural and/or Documentary Requirements in Connection with the Preparation and Submission of Financial Statements Accompanying the Returns”.

The Section 2 of RR No. 21-02 has been amended as follows:

1. the amount of Value-Added Tax (VAT) output tax declared during the year, as well as the account title and amounts upon which the same was based. If there are zero-rated and/or exempt sales and receipts, a statement to that effect and the legal basis therefore;

2. the amount of VAT input taxes claimed broken down into:

a. beginning of the year;

b. current year’s domestic purchases and payments for:

i. goods for resale, manufacture or further processing;

ii. goods other than for resale or manufacture;

iii. capital goods subject to amortization;

iv. capital goods not subject to amortization;

v. services lodged under cost of goods sold; and

vi. services lodged under other accounts.

c. claims for tax credit/refund and other adjustments; and

d. balance at the end of the year.

3. the landed cost of imports and the amount of customs duties and tariff fees paid or accrued thereon;

4. the amount of excise taxes, classified per major product category, paid on locally produced excisable items and imported excisable items;

5. documentary stamp tax on loan instruments, shares of stock and other transactions subject thereto;

6. all other taxes, local and national, including real estate taxes, license and permit fees lodged under the Taxes and Licenses account, both under the Cost of Sales and Operating Expense accounts;

7. the amount of withholding taxes categorized into:

a. tax on compensation and benefits;

b. creditable withholding tax; and

c. final withholding tax.

8. periods covered and the amounts of deficiency tax assessments, whether protested or not; as well as

9. tax cases and the amounts involved that are under preliminary investigation, litigation and/or prosecution in courts or bodies outside the BIR.

Take note that the disclosures required above are in addition to the existing required disclosures under the PFRS.  However, many companies and tax practitioners find the said RR lacking of clear guidance. According to them, there are many gray areas for BIR’s clarification.

So many changes, right? Oh well, good thing I am not an external auditor anymore (what a relief! Haha)

May we all have a prosperous new year!