PCPA case studies
PCPA · Put your knowledge to work in context.
The PCPA designation is a professional certification in accounting and related advisory work. Because the acronym is used by more than one credential program, the first practical step for any candidate is confirming which certifying body's PCPA you are pursuing and downloading that body's current candidate handbook, since the syllabus, assessment structure, and administrative rules differ between programs. The PCPA case studies are 5 cases and about 2,970 words.
1Revenue Recognition Judgements on a Construction Contract
enters into a P10,000,000 fixed-price contract to construct a warehouse over 18 months. The contract includes a P500,000 bonus if completed within 15 months and a P1,000,000 penalty if delayed beyond 20 months.
589 words, about 3 min2Going Concern and a Subsequent Event After the Audit Report Date
Greenfield Manufacturing has a current ratio of 0.8, a P50 million loan due in 9 months, and a covenant breach at year-end. Management has a non-binding letter of intent from a bank for refinancing dated 15 days after year-end and a signed contract to sell a warehouse for P20 million, expected to close in 4 months.
561 words, about 3 min3Tax Assessment, Defective Waiver, and Unaccredited Supplier
Pinecrest Trading, a domestic corporation, received a Letter of Authority on 10 January 2024 for taxable year 2021. The BIR issued a Preliminary Assessment Notice on 5 August 2024 and a Formal Letter of Demand on 20 October 2024.
634 words, about 3 min4Capital Budgeting with Foreign Exchange and Covenant Constraints
A Philippine manufacturer is considering a P120 million investment in a new production line for export. The project has a 5-year life, no salvage value, and is expected to generate annual after-tax operating cash flows of P35 million at current exchange rates (P56 = USD 1).
565 words, about 3 min5Independence Threats at a Publicly Listed Audit Client
Santos & Reyes, a CPA firm, audits Horizon Bank, a publicly listed company with total assets of P50 billion. The audit partner, Maria Santos, has a brother who is Horizon's Chief Financial Officer.
621 words, about 3 min