ISFFA: The Next Generation by ISFFA SF

The Official Publication of ISFFA San Francisco Chapter

Summer 2012

ISFFA -SF Chapter

What’s Inside? SF Chapter Grand launching: A look Back

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ISFFA Spotlight

Audit Flash

For Profit...or Not?

Finance Matters

Tax Flash

Featured in this Issue:

Ma. Elenita B. Cabrera: One of Philippine’s most notable authors of Accounting books.

PWC Loida Joy Dualan: On ISFFA Spotlight’s “Ask and It Will be Given You”

Liza Gino Clairmont: ISFFA-SF ‘s Recipient of Roger CPA Review Gold scholarship

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Emily Enriquez-Patton President Shirley Bayani

TABLE OF CONTENTS

Vide President for Corporate Affairs and Communications

Ryan Dumbrique Vice President for Events and Information Technology Message from the President

Letter from the Editor

The Founders

Message From The Founders

ISFFA’s Mission and Vision

Why Join ISFFA? What’s In It For you?

Melissa Garcia Vice President for Membership and Student Relations

Lynmour Naira Vice President for Media and Public Affairs

Evelyn Torres Vice President for Finance

Rizza Velarde

Synopsis: A New Chapter Launch

Vice President for Operations Control and Oversight

Dr. Manuel Valle : Critical Reflection of a Filipino Immigrant Accountant

Mr. David Paraiso: Survival Guide in a Tough Economy

Riza Barron Maria Luisa Jarcia

Mr. Jeffrey Delgado: Maximizing Filipino’s Full Potential

From the Consulate General: Philippine Economy, An Update

Up Close and personal with Dr. Elenita B. Cabrera

ISFFA Programs at a glance...

ISFFan Journey: A partnership made in ISFFA

Snapshots: Looking back on the SF Chapter launch

ISFFA– SF Chapter Officers

Star Performance: Conducting a Video Interview with Style

ISFFA: Your One –Stop Shop

The ISFFAMentor and ISFFALeader

Mentors’ Circle: The first batch of ISFFA-SF Mentors

The panelists: Mapping your future

The panelists: Soft Skills and Business Etiquette in a Digital World

ISFFA Message Board

Spotted on the ISFFA Spotlight: “Ask and It will be given you”

Audit Flash: New Accounting Standards in 2012

Art Director

For Profit...Or Not?: ISFFA is a non-profit. What’s in a non-profit?

Fulbert Magno

Finance Matters: A Journey of a thousand miles begins with a first step

Tax Flash: The Obamacare Tax Provisions and You

Volunteer Staff

ISFFA San Francisco Chapter

Lynmour Naira Managing Editor

Emily Enriquez-Patton Rizza Velarde Melissa Garcia Shirley Bayani Evelyn Torres Section Editors

Amy Hill (Robert Half International) Contributor

Ryan Dumbrique

Photographer

ISFFAn: The Next Generation

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MESSAGE FROM THE PRESIDENT

n July 21, 2012 , Filipi-

nos from many walks of the accounting and finance industry brought Bay Area to our launch and committed to enrich our organization with different ideas , programs , curriculums, expertise, values & endless possibilities and call it, International Society of Filipinos in Finance and Accounting or “ISFFA " San Francisco . From LA to NY, we have carried out everything we could to make the Bay Area happen, all for the benefits of the Filipinos. We are fortunate that ISFFA San Francisco had a successful launch from the kind generosity and support of our community but it is worth noting that you are also fortunate that you have a great organization that will serve the Bay Area community with a wonderful mission and vision – for ISFFA empowers the Filipinos by elevating the stature of its Accounting and Finance professionals, not just in the US but in the global workforce. With your presence and support during this grand launch, we celebrated a momentous event of ISFFA's success today and in the future. Your attendance and continuous participation in our endeavours, make us feel better against all the hard work we put in to pull it through , all the challenges we encountered , all the doors slammed on our faces , phones hanged up on us or the thousand flyers we sent out , as we walk day by day to create an ISFFA awareness . As I start my term as president of the San Francisco chapter, I reflect ,steadfastly, on the wonderful mission and vision of the organization- to assist, educate, train and mentor emerging Filipino Finance and Accounting professionals . Therefore, at ISFFA, we aim that you find resources, get trained, maximize your full potential, stay connected and enroll yourselves to positive and life-changing programs on a regular basis, to enhance your leadership and career and achieve your personal and professional goals. I , together with the officers of San Francisco have found the initiative and courage to follow our heart and intuition, and we , together with you, will not rest on our laurels but will continue to strive towards even better goals for ISFFA, to get our presence and purpose across. This is a community service. Community service is an attitude and the reward is to have done it not for ourselves but for our future Filipino leaders. This is when I call you, Filipinos in Finance and Accounting, let us empower our career, our organization and our culture because the task of Filipino saving is in our hands. Emily Mai Enriquez-Patton ISFFA-SF Chapter President

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LETTER FROM THE EDITOR

Dear Readers, Welcome to the first edition of ISFFAn- The Next Generation presented to you by the International Society of Filipinos in Finance and Accounting (ISFFA) - San Francisco Chapter. Our first issue is especially dedicated to all those who, in one way or another, have helped and inspired us in bringing ISFFA’s third and newest Chapter to reality. Thus, you will find most of the pages filled with memories of what has transpired during the SF chapter’s launch and officers’ installation on July 21, 2012 . Moving forward, ISFFAn– The Next Generation (I-TNG) is a newsletter created to be a vehicle for promoting communication , research, information, activities and literacy among all of us-- the members, as well as those who support ISFFA’s goal of “Empowering tomorrow’s leaders today!” We hope to keep you abreast of new ideas and regulations that affect your day-to-day work activities, teach you new curriculum and literacy on technical and even non technical aspects , to provide you with sources and resources , to keep you informed of past and oncoming events organized by the organization which you are highly encouraged to join, and to introduce to you remarkable and inspiring people whom we meet during the course of our journey. As the newsletter’s managing editor, I wish to see I-TNG develop into a journal filled not only of pictures and bulletin of activities and messages but also a venue for more research, communication and informed learning. Therefore, I am encouraging you to submit your research notes, as well as opinions, technical reports, and short communications that would interest the general crowd of Finance and Accounting enthusiasts. Please email sf.isffa@gmail.com and attention to the Newsletter committee. Together, let’s Get involved, Get inspired, and Get empowered! Lynmour Naira Managing Editor

www. Isffa.org http://www.facebook.com/groups/isffasanfrancisco/ http://www.linkedin.com/groups/ISFFA-San-Francisco-Chapter/

Email: sf.isffa@gmail.com

THE FOUNDERS

President BENEL SE-LIBAN Principal, VASQUEZ & COMPANY LLP

Vice President, CPE ALEX GAHUMAN Manager, MCGLADREY & PULLIN LLP

Executive Vice President CASPER CALISIN Senior Manager, ERNST & YOUNG LLP

Secretary TONETTE SANTILLAN Audit Manager - National Credit Union Practice, MCGLADREY & PULLEN, LLP

Vice President, Sponsorships BONG BATINGANA Manager, KPMG LLP Vice President, Membership HOPE CUE Assistant Controller, WESTERN EMULSIONS, INC Vice President, Website MINEL DIAZ Audit Manager, ELECTRIC POWER RESEARCH INSTITUTE Vice President, Student Relations KATHY LAI Manager, KPMG LLP Vice President, Community Service ALBERT OCAMPO Manager, Financial Reporting - PIONEER ELECTRONICS, INC. Vice President, Newsletter AIREEN SUGUITAN Partner, BBLC, LLP Vice President, Conventions and Events NELLA ZIPAGANG Financial Accounting Supervisor, CITY OF CERRITOS

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Treasurer ELMER PASCUAL Manager, VASQUEZ & COMPANY LLP Associate Treasurer JEN BANGIT Director, Assistant Corporate Controller, HERBALIFE INTERNATIONAL Auditor LYN SALVADOR Senior Associate, BDO SEIDMAN LLP Public Relations Officer GRACE REYES Senior Associate, PRICEWATERHOUSECOOPERS LLP

Founding Advisors CARMELITA O’NEIL ADVISOR EMERITUS SUSAN LEGASPI EO ACCOUNTANCY GROUP

MESSAGE FROM THE FOUNDERS

Tomorrow!”

ongratulations to a very successful

launch of ISFFA in San Francisco and its newly elected officers. You have just empowered yourselves as our “Leaders of

On behalf of the Founding Board of Directors and National Board of Directors, I would like to extend a big welcome to all of you in our ISFFA family. We are honored and proud that you have chosen to join us in our journey to “Empower Tomorrow’s Leaders Today”. We are here to give you our full support. As the Founding President of ISFFA, I am truly grateful to ISFFA for teaching me how to be a leader of substance. I want to share with you the following life principles that I live by which I have learned throughout my journey with ISSFA. First, being a leader can be challenging but as long as you are focused on your mission to make a difference, you are confident with your capabilities, you are humble and honest, then, you will always be a winner. Second, try to understand your respective roles/expectations and develop proper communication so you will have an effective action plan in accomplishing the mission and programs of ISFFA without conflicts and misunderstanding. Third, “Service above Self” is your priority in everything you do and set aside your personal agenda. It is more rewarding to care for others. Finally, ISFFA is now your new family. It is a venue where you can share your talents, exchange ideas and improve yourself. Let ISFFA be the catalyst to inspire and be inspired, to teach and be taught, to mentor and be mentored and to empower and be empowered! The impressive launch of your chapter was just a beginning. May you continue to spread your wings and shine like stars. May you continue to share the good work of ISFFA; and consequently, elevate the stature of Filipino professionals in finance and accounting through education, mentorship and promoting our Filipino heritage and ideals. We look forward to see the wonderful plans of your chapter. Enjoy your exciting journey with ISFFA!

Maria Benel Se-Liban ISFFA– Founding President

ongratulations on the successful launch of ISFFA - San Francisco! As one of its founding advisers, I feel very proud to have witnessed the birth of another chapter in the relatively young life of ISFFA. At the event, I had the opportunity to meet many Filipino professionals who are determined to pursue the mission and vision of ISFFA - that is to assist, educate, train and mentor emerging professionals in accounting and finance. Along with the Los Angeles and New York chapters, the existence of ISFFA-SF will triple the power of ISFFA to accomplish its mission. As I gazed at the smiling faces of the young professionals who were enthusiastically listening to the wits and wisdom of the invited speakers who were very articulate and generous in imparting their knowledge and experience to the crowd, this quote from Leo Tolstoy came to mind: "The key to success in life is using the good thoughts of wise people". Your effort in connecting these seasoned professionals with your young members was a priceless experience for everybody. The biggest difference in meeting faceto-face versus reading self-help books is the privilege of asking questions and hearing the answers. Hopefully some of the young people will try to establish some kind of professional relationship with these successful people that can help them in shaping their career. In observing the exchange of ideas between the speakers and the audience I cannot help but compare that these emerging professionals are far luckier than I was at the start of my accounting career here in the United States some 39 years ago. There was no organization like ISFFA that helped and connected newly arrived immigrants like me with experienced and successful people to guide and assist me as I started my professional life in this country. My road to success was paved with a lot of challenges along the way.. So when I was invited to be involved in the formation of an organization that will provide moral and professional supports to new and emerging finance professionals, I agreed wholeheartedly, because I think such an organization can help to make it easier for this generation of young finance and accounting professionals to reach the top of the corporate ladder and realize their dreams much faster than how I did it. - hence the International Society of Filipinos in Finance and Accounting (ISFFA) was born! In closing, I would like to tell all the original founders of ISFFA - SF that you did not just form a chapter, but you also forged a lasting bond of friendship that will last a lifetime! Please continue the passion and the enthusiasm! More power to all of you! Mabuhay! Carmelita S. O'Neil ISFFA - Founding Adviser

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Mission Statement The International Society of Filipinos in Finance and Accounting (ISFFA) is a California nonprofit public benefit corporation whose primary goal is to assist, educate, train and mentor emerging professionals, both domestically as well as globally.

Core Values At ISFFA, we live by a set of shared values and adhere to the highest ideals of professionalism and ethical behavior in the spirit of:  Integrity: We advocate the TRUTH and conduct ourselves at all times with utmost HONESTY.   Discipline: We strictly follow the code of Professional Responsibility and Conduct.   Commitment to Social Responsibility: We pledge to help and to strive to become vital members of society.   Solidarity: Together as ‘one body’, we will promote unity, harmony and teamwork.

Statements of fact and opinion are made by the authors alone and do not imply an opinion on the part of the officers and members of ISFFA. Articles in this publication contain information in summary form and are intended for general guidance only. They are not intended to be a substitute for detailed research nor the exercise of professional judgment. Neither ISFFA nor ISFFAn: The Next Generation can accept any responsibility for loss brought to any person acting or refraining from action as a result of any material in this publication. On any specific matter, reference should be made to an appropriate advisor.● Publication of an advertisement in the ISFFAn: The Next Generation does not constitute an endorsement of the product or service by ISFFA or ISFFAn: The Next Generation. ● Our apologies for any errors or omissions that may have occurred during the preparation of this publication. Please be assured that they are by no means intentional or personal. ****

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ISFFA: AN INTRODUCTION

By Susan Legazpi

ho came here today expecting to receive little in return for their effort? I asked the audience. I am Susan Legaspi, one of ISFFA’s two founding advisors and the former Chairman to the National Executive Board. I suspect that you are divided in two camps, half truly are expecting little or don’t know what to expect and the other half came with an expectation of making or reuniting with friends or associates and pure curiosity as to how ISFFA can benefit them. I assured everyone that it was natural and totally acceptable to engage in the time-honored American tradition of “quid pro quo” or “something for something.” ISFFA is founded on the principle of being your personal guide to success. But the definition of success varies depending on who you ask. It could mean the attainment of wealth, favor or eminence (by Webster Dictionary) or the accomplishment of day-to-day goals like reaching your weight loss goal or simply making a positive and healthy lifestyle change. Success does come in all shapes and sizes and we would be remiss to not embrace them all. Most often, success requires a conscious awareness to act upon a goal, with a feasible plan utilizing a sustainable strategy - although, good fortune often lends a subtle hand. The following are three of ISFFA’S positive and life-changing programs:. PROGRAMS THAT RECONNECT US TO OUR FILIPINO HERITAGE. As Filipinos, we are unique and apart Page 9

from other Asian Americans. Certain traits distinguish us from other Asian Americans such as, predominantly being Christian, being fluent in English, with strong Spanish and American influence. The 2010 census estimated that by 2011, the Filipino American (Fil-Am) population in the U.S. would be about 4 million. Of the ten largest groups of immigrants in the U.S., Filipino Americans have the highest rate of assimilation, meaning, we have been described as the most “Americanized” of the Asian American ethnicities. However, despite being the second largest ethnicity among Asian Americans and rank #1 in assimilation, FilAms have been described as the “invisible minority.” Fil-Ams embrace western ideals so completely and so positively that it often results in low cultural identification.

“Don’t wish something was easier, wish you were better. Don’t wish for less problems, wish for more skills. Don’t wish for less challenges, wish for more wisdom.” Additionally, statistics indicate Fil-Ams have one the highest educational attainment rates in the U.S. where about 48% of Fil-Ams over 25 years old possess a Bachelor's degree. The 2004 census shows FilAms as having over 90% high school graduation rate. As an ethnic group, we demonstrate high educational achievement rates. But for many different reasons, professionally, we have yet to have a sub-

stantial impact in the executive board rooms. As Filipinos continue to migrate to this country, they will experience any number of cultural blocks or shocks. ISFFA is designed to provide immigrant members with a psychological advantage through a strong support group allowing them to keep our heritage alive while still rising in the Boardrooms of America. PROFESSIONALLY BY IMPROVING MANAGEMENT, LEADERSHIP AND MENTORSHIP SKILLS; As leaders and mentors we must first believe in ourselves – believe that we have the power within ourselves to handle any kind of change because “people who have no faith in themselves have little faith in others.” Our philosophy is embedded in the “3 don’ts:” (1) “Don't wish something was easier, wish you were better.” (2) “Don't wish for less problems, wish for more skills.” (3) “Don't wish for less challenges, wish for more wisdom.” COMMUNITY SERVICE: TO STIR OUR AWARENESS OUTSIDE OURSELVES. One of life's greatest offerings is the ability to give without strings attached. Giving whether through contributions of goods or providing services is a means to feed our spirit. When we do something for someone who is struggling, we create goodwill and meaning in our own life as well as theirs. There is one string however, that will always remain attached. It's the thread that binds all mankind to one another – the string of love and care. Continued on page 19

SYNOPSIS: A NEW CHAPTER’S LAUNCH

fter months of scouring for Filipino professionals and students in the finance and accounting industries in the Bay Area, the International Society of Filipinos in Finance and Accounting (ISFFA) San Francisco Chapter has made a debut with a launch on July 21, 2012 at the Wedgewood Banquet Center in Burlingame. It was another milestone for ISFFA as the new chapter hosted a powerhouse and action-packed event showcasing the abundance of accounting and finance talents in the Bay Area. As registration and networking opened the day, the aisle to the banquet was turned into a gallery of ISFFA’s sponsors including CalCPA, AICPA, Philippine News, Ernst and Young, KPMG, Becker, Robert Half, Roger CPA Review, DeVry University, Asian Journal, Power ng Pinoy, Xoom, Moss Adams LLP, PwC, Seasons Market Place, ADP, Efotobox, Chase, and Bank of America who extended their generosity in supporting the Vendor’s Exhibit organization and sharing their resources. The program proper commenced with a solemn prayer led by ISFFA SF Chapter VP-Finance, Evy Torres, then a homage to the Philippine and American national anthems, followed by a video montage of messages from ISFFA founding advisors and ISFFA’s foundation and accomplishments through the years. ISFFA Founding President, Benel Se-Liban welcomed and congratulated everyone for attending the historical ISFFA launch in San Francisco. She said, “ Your attendance here today showed that you care…you care not only about yourself but for others… and you care in elevating the stature of Filipino professionals in finance and accounting. I commend our newly recruited officers for their amazing talents and leaderships in bringing ISFFA to you. ISFFA is here, for you to be inspired, to inspire and to “ Empower Tomorrow’s Leaders Today.” Susan Legaspi, EO Accountancy Group and one of ISFFA’s founding advisors, followed suit and recapitulated ISFFA’s core values and programs into three categories – reconnecting to our Filipino heritage; improving management, leadership and mentorship skills; and extending community service. Two other speakers, Dr. Manuel Valle and David Paraiso,

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By Shirley Bayani filled up the rest of the morning with their presentations about Developing Leadership Skills and the 2012 Job Market, respectively. Dr. Manuel Valle from the academe, shared his dissertation on the critical reflections of accounting professionals in the Bay Area while David Paraiso, Mentorship Director of the UCLA-PA Alumni, laid down a career development roadmap after the 2008 global financial meltdown, wrapping up the morning part of the program.

Newly-inducted ISFFA San Francisco officers (from left: Emily Enriquez, Shirley Bayani, Lynmour Naira, Ryan Dumbrique, Rizza Velarde, Melissa Garcia, Evelyn Torres) As guests were enjoying the buffet style lunch, they were entertained with the lovely voice of Cherelei Ramirez who was part of the cast of the Broadway musical, Ms. Saigon. The presence of Ms. Elenita Balatbat Cabrera, one of the Philippine’s most notable authors of accounting books, likewise stirred the crowd. One of the highlights of the event took place thereafter - the oath taking of the founding officers of the San Francisco chapter - who relentlessly Continued on next page

Key Note Speakers (from left: Manuel Valle, Jeffrey Delgado, David Paraiso). Excerpts on pages 12 to 14

SYNOPSIS: A NEW CHAPTER’S LAUNCH

“Congratulations to the officers of the International Society of Filipinos in Finance and Accounting (ISFFA) for what has already begun as a very successful outreach to your colleagues and the communities you continue to serve. Your dedication to serving the community by providing the services that will help others achieve financial literacy and stability personally and professionally is a very basic not readily addressed by our society. Professional organizations such as ISFFA also inspire our next generation to look to their vocation as a means of receiving benefits through their livelihood while providing a means of giving back to the community. Each of us has opportunities we did not achieve solely on our own and the ISFFA leadership clearly shows they have not forgotten their roots. Having this appreciation of achievements received through the help of others and outwardly giving back to those in need of opportunities, ISFFA exemplifies the model of true stewardship for the betterment of the lives of others. Continued success to ISFFA- Salamat!” - Dr. Jennifer Ong

Continued from previous page dedicated their time, talent and resources in putting together all the necessary elements to make the event possible. The oath taking was administered by Deputy Consul Alfonso Ver, Milpitas Mayor Jose Estevez and Dr. Jennifer Ong who wasted no time in giving their compelling talks on the importance of strong leadership qualities and their optimistic outlook on the political and economic landscape of Filipinos in the local, national and global arena. There was never was a dull moment especially when a world-class speaker, Jeffrey Delgado (HGI Advisor), stepped on the stage and pumped up everyone’s spirit with his highly energetic speech on how to positively impact the lives of others through empowerment and creating extraordinary lives to maximize life’s fullest potential. The excitement escalated even further as the Mapping the Future panelists; Daniel Raval (Liberty Tax) , Don Pintor (PwC), Rianne Suico (MossAdams, LLP), Cynthia Sanchez (Stanford U.) , James Diangson (BofA) and Timothy Lanigan (Devry) conquered the stage and navigated the audience through their roadmaps to becoming successful in their respective life and career. Then the Building Soft Skills and Business Etiquette in a digital age panelists;

Mapping the Future Panelists (from left: Daniel Raval, Don Pintor, Rianne Suico, Cynthia Sanchez, James Diangson, David Paraiso, and Tim Lanigan) Page 11

Bennie Lou Quevedo-Burris (Whittier Trust), Rick Gutierrez (WuHoover & Co.), Ty Kaprelian (Becker), Ame Ponce (Ernst & Young) and Arnold Pedrigal (Power ng Pinoy) shared some tools in developing leadership and communication to achieve success in the digital age. The event concluded with closing remarks from the LA Chapter President, Rey Puentenegra and the newly inducted San Francisco Chapter President, Emily “Mai” Enriquez who shared their inspiring journeys as leaders of each chapter. Emily Enriquez captivated the audience with her fervent sharing of the challenges and rewards in leading the formation of a new chapter; and her appeal for support to take the organization to greater heights. The event was hosted by Michi Valeriano and co-hosted by Susan Legaspi and Soc Padua, ISFFA Executive Directors. ISFFA is thankful to all those who participated including the volunteers who shared their time and to contributors who shared their resources to make such a wonderful event. ISFFA SF officers shared one voice that the path to greatness is rough but through everyone’s continuous commitment and support, this road of endless possibilities leads to ISFFA as it occupies the Bay Area. *****

Building Soft Skills and Business Etiquette Panelists (from left: Arnold Pedrigal, Bennie Lou Quevedo-Burris, Ame Ponce, Rick Gutierrez, and Ty Kaprelian)

[Excerpts from the July 21, 2012 speech, at the ISFFA SF Chapter Grand Opening, of Professor Manuel B. Valle about his dissertation entitled, “The Critical Reflections of Filipino Immigrant Accountants in the San Francisco Bay Area.” (A copyrighted 2005 dissertation required and completed for his doctoral degree from the University of San Francisco)]

“What are some of the critical reflections of Filipino immigrant accountants on their work experiences in the United States compared to those in the Philippines?” This question was one of several questions addressed in a participatory research study where Dr. Manuel Valle was the principal researcher. His group listened and analyzed the experiences and challenges encountered by eight Filipino Accountants (four females, and four males) who, from 1965 onwards, immigrated to the United States, specifically in the San Francisco bay area. The participatory research benefited from the reflections of the participants led them to offer the following specific recommendations to Filipino Accountants immigrating to the United States. Since all companies here in the United States are using computerized accounting systems, try to master the most commonly used computerized system. Learn the new technology in the workplace, communicate effectively, and be a good observer.

Dr. Manuel Valle talks about his dissertation during ISFFA SF Launch

“Thank you so much for giving me the privilege to help our ISFFA organization, our fellow Filipinos, and our society as a whole. I had utmost gratification when I found that in ISFFA we have fellow Filipinos whose hearts and minds are proactively helping fellow Filipinos, just like my fellow Filipino group in the San Francisco Bay Area. I hope and pray that our ISFFA group, continue to grow by proactively helping and showing our younger Filipinos these best practices that we have so that we go forth and multiply and help sustain a strong Philippine society not only in the USA but globally, which could only be achieved by the principles of inclusion (as opposed to exclusion) and positiveness (as opposed to negativeness).”

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Do not be shy to seek advice from friends and relatives about the work environment and style in the U.S. The Filipino American community is supportive and readily accessible to new immigrants from the homeland. Make use of its resources. Seek professional recognition. It is true that accounting training in the Philippines is based on U.S. textbooks and therefore the same. The problem is getting recognition in the U.S. as professional accountants. Breaking the culture of silence. Filipino professional accountants maybe hesitant to speak up because of their accent or lack of communication skills. The fact that their supervisors often are non-accountants gives them a chance to voice their opinion and do the right things according to GAAP or Gov’t GAAP or GAAS.

Competing in a diverse environment. His or her ability to speak English should put him or her in an advantageous position. However, talking to other Filipino immigrant accountants in the vernacular (Tagalog or other Filipino dialect – Ed.) may be excluding those around who can hear. Training in communication skills, teamwork and leadership are important attributes to acquire. Climbing the career ladder. Going back to “square-one” may be a necessary evil (when you just arrived in the US-Ed.) , just to get a job that might Continued on page 18 DR. MANUEL B. VALLE, Ed.D., , is a professor of MPA finance and accounting at the California State University, East Bay (CSUEB) in Hayward, California. He has a doctorate in International and Cultural Education with special concentration in accounting from the University of San Francisco and a Master’s degree in Public Administration from California State University East Bay, wherein he was awarded the “Pi Alpha Alpha National Honor Society Award” for graduating with top honors. He earned his Bachelor’s degree in Commerce with a major in Accounting from the Far Eastern University in Manila and a minor in Mathematics from the University of California in Berkeley. He worked for Coopers and Lybrand, International CPAs, one of the Big Six CPA firms in the USA, where he audited global companies such as Bank of America, Delta Air, among others. He also worked as Principal Accountant of City & County of San Francisco Fire Department for eight (8) years until he was promoted as Head Accountant of Parks, Port, and Treasurer/Tax Collector departments where he worked for fourteen (14) years. Dr. Valle is married to Lilian M. Tamayo, a nurse, and they have two sons, Joselito and Joseph.

SURVIVAL GUIDE IN A TOUGH ECONOMY

s of July 2012, the US Bureau of Labor Statistics reports that National unemployment rate is 8.3%. California unemployment rate is a little higher at 10.7% or about 1.9 million unemployed. Although there has been an evident improvement in the numbers, a decrease of 1.2% or about 227,000 compared from July 2011, a great number of people are still unemployed and finding it difficult to look for a job, and worse some of them have been unemployed for 6 months or longer. Mr. David Paraiso cited some of the challenges being faced by today’s FilAm students and graduates seeking careers or jobs, based on the context of having a life equivalent or better than our parents or people from previous generations: 1. Affordability and quality of education- Higher education is directly corDAVID PARAISO has been in mentorship, consulting and project management roles for 25 years. He is currently Director of Mentorship UCLA-PA Alumni, directly spearheading initiatives that will address the gaps outlined in this write-up; Group Lead - MCUMC Learning Programs, and active member of several mentorship programs. He was an Adjunct Professor specializing in HIPAA/Healthcare, Electronic Commerce, CALS, EDI, XML, and Business Process Engineering programs at various institutions, such as UCLA, UC-Irvine, UC-Berkeley, XML Institute/UC-Santa Cruz, U.S. President Council on Integrity and Efficiency on Information Technology, U.S. Federal Audit Executive Council (Office of Inspectors General), Data Interchange Standards Association (DISA), EC Institute and the Electronic Commerce Resource Centers, and others. He conducts Continuing Medical Education (CME) courses for physicians, nurses, lawyers and other healthcare practitioners.

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related with better chances at landing a better job; 2. Stricter credit rating- personal stability; 3. Affordability of homes- some employers would look for signs of family stability and/or some sort of normalcy; 4. Health Issues - ailments prevents us from exerting our best, or delivering our utmost in any given job; 5. Bubble jobs- these jobs are those that either will not be there, or there will be so few of them by the time the student graduates; or jobs that might be there but not economically viable and sustainable to support a family. Example of these kinds of jobs is mostly temporary jobs such as typing, or other clerical jobs. 6. Less jobs to go around- several million jobs were lost in the 2008 global financial meltdown. A lot of those jobs will not come back. It is still true that there will be less jobs even after or during the economic recovery; 7. Compromised governance at national and local levels 8. Others- Family and community cultures have a direct impact in landing and keeping a stable job. In the 60’s and 70’s, capturing 1st tier positions in 1st tier companies are the norm for a good number of Fil-Ams. With very few exceptions, starting in the 80’s, this started declining for both U.S. –trained and Philippinetrained Fil-Ams. Although there are still Filipino families that still produce globally competitive professionals, there are also families who don’t achieve that level. Our culture itself have challenges because, in reality even though the next generation speaks English well, as a community we are very insular compared to other Asian cultures like the South Korean, Chinese, and Vietnamese who have move forward and have left us behind. In his book “Job Market: Survival Guide in 2012 & Beyond”, he listed a collection of the best practices and lessons learned in planning, and implementing various strategies of pre-

Mr David Paraiso tackles job market during ISFFA SF Launch

“It was a privilege and honor to be provided with the opportunity in sharing perspectives and thoughts during the ISFFA Conference in Burlingame, CA, last 7/21/2012. Many thanks to the ISFFA Leadership!” paring for, as well as keeping and transitioning from jobs to other jobs in several industries.  Conduct due diligence- before you enroll in a program, make sure there will be jobs for you by the time you graduate;  Cradle to Grave- a strategy whereby you emphasized core values, and you don’t take “shortcuts”. Take courses that may be expensive today but it is something whereby you would surely doing later on, as well as profitable at the same time. Like for instance, some courses in Liberal Arts are easy courses to take and pass but there are not a lot of jobs thereafter, as oppose to courses in Engineering or Healthcare where you spend a lot of time solving Physics and Math problems but they improve your chances landContinued on page 25

MAXIMIZING FILIPINOS FULL POTENTIAL... [The following is an excerpt from Jeffrey Delgado’s speech The following are major areas that determine our sucon maximizing life’s full potential, delivered at the ISFFA- cess! SF launching on July 21, 2012.– Ed.]  Habits-Having the right habits in all areas of your The world is a little bit different than it was ten life! years ago. We are experiencing high problem about  Beliefs - having the faith that you can achieve all you things that the young generations are seeing such as want to achieve! foreclosures and financial issues. We have to make  “No Limits” mentality- If you are going to think anyan impact to change that, and there is no better time way, think BIG! to start than today, to show our “tomorrow’s lead-  Working Smart & Aggressive-Having a solid plan ers” that the world is a better place to live in. In doand implementing that plan! ing so, it is inevitable to go through some adversi-  Feeding your MIND-Leaders are READERS! Be ties. What process do we have to go through to enacareful what you feed your mind! Garbage in... Garble us to empower and maximize Filipino’s full pobage out! tential?  Balance-Ability to balance your life priorities ~ Living life out of balance is one of biggest challenges we First, maximize your full potential. To empower othwill encounter! ers, you need to be empowered yourself. Inherent to being a  High Tolerance for FAILURE-Realize that the most Filipino is being a leader. As leaders, most of us think deep successful people failed more than most! It is not down inside us that we have the capacity to help others. We how many times you fall... it is how many times you think that there’s more to us than what others can see. Howcan get up! "I failed over and over again in my life... ever, the action that we take about helping the next generaand that is why, I SUCCEED" ~ Michael Jordan tion is more critical than merely thinking or dreaming about ***** it. We have to take initiative to make major moves towards helping the next generation. Jeffrey Delgado, a 15-year veteran in the financial serThen, help others maximize their full potential. Peo- vices industry, defines success not by monetary value, ple who recognizes you as their leader or mentor will follow but by the motto: “Whoever is happiest wins!” He said, what you say or do, sometimes, even without thinking. They “Life is short, however well you do financially or what might be skeptic but because you, as their mentor or leader, you believed you achieved in life, the most important say or do it, they would follow you believing you are leading aspect of life is how happy you feel about who you are . them in the right direction. Therefore it is important that as You can have a lot of money, you can have all the leaders, we have to be very careful that we lead people in the things you want in life, but if you’re unhappy—it right way. doesn’t really matter.” In making a major impact on the next generation of people, there are 3 major pillars to create extraordinary results: 1. Clarity. We are in a world of too many choices which makes it difficult for people to know what they really want. Apart from not being sure of what they want, sometimes they don’t know what the next level is going to be. We must help others to be “crystal clear” of what they want in their life, and identify the path or direction they want to take. 2. Tools & Strategies. Once you have determined what they want, next thing to do is help them identify the necessary tools and strategies to get to the next level. These include training one must take, e.g. college education in line with the profession they want; and meeting with the right people to mentor and guide them in every step of the way. 3. Fully Engaged/Immersion. In whatever you do, you must immerse yourself in it. Whether in business, health, personal or spiritual relationship, you must be fully engaged and passionate about that mission. Likewise, in helping other’s attain their goal, you must get them engaged by engaging yourself in leading or inspiring them to focus in their mission.

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Top: Jeffrey speaking at the ISFFA-SF launching Left: With Milpitas Mayor Jose Esteves, whom he cited as “one example of what young Filipinos would want to be in the future“.

PHILIPPINE ECONOMY: AN UPDATE [During the ISFFA- San Francisco Chapter launching and installation of officers, Deputy Consul General Alfonso A. Ver of the Philippine Consulate General in San Francisco took the opportunity to share some positive economic developments in the Philippines which may be of interest to the ISFFA community- Ed.]

he following is a snapshot of the latest economic indicators about the Philippines.*

The Philippine economy grew 6.4 percent in the first quarter of this year, which is among the highest in the region. That makes it 53 consecutive quarters of positive GDP growth since 1999. Our Gross International Reserves at 76 billion US Dollars are at record levels, and can cover up to 11 months’ worth of the country’s imports, more than double the level considered healthy by international standards. This puts the Philippines among the top 20 countries in the world in terms of GIR. We are now a creditor nation to the International Monetary Fund. We made $1 billion credit fund available to the IMF to be used in addressing the financial crisis in Europe. We had the strongest performing stock market in Asia in 2011. Philippine stock barometer breached the 5,000 mark for the first time in history, rising 4.1 percent in 2011. Also, in May 2012, Moody’s revised their outlook on the Philippines from ‘stable’ to ‘positive’ under the Ba2 rating, following similar ratings upgrades by Fitch and Standard & Poor’s over the past two years. The latest good news is that the Global Trade Enabling Report released last month by the World Economic Forum saw the Philippines improved its ranking by 20 places to No. 72, from No. 92 in 2010. The WEF also raised the Philippines’ Global Competitiveness Index by 10 notches from 85 to 75 in 2011. HSBC, in its latest “The World in 2050” report this year, notes the striking rise of the Philippines, which is set to become the world’s 16th-largest economy, up 27 places from today. On the other hand, Goldman Sachs predicts the Philippines to be the 18th largest in 2050. Any which way you look at this, our economy will grow in a big way. World Bank already considers the Philippines as the leading services exporter in the world. International financial services firm Morgan Stanley has selected the peso as its latest “top pick” currency, citing the favorable economic conditions and significant dollar liquidity of the Philippines. In its latest report on currencies, Morgan Stanley told its yield-seeking clients that the Philippine peso has so far outperformed other emerging market currencies and was likely to keep appreciating against the dollar over the near term. The New Straits Times (Malaysia) report dated 5 July 2011 cited the Philippines as the best global Business Process Outsourcing destination; a top global electronics assembly hub; the world's fourth largest shipbuilder; the world's Page 16

next mining power; Asia’s trusted logistics support center; abundant managerial talents; highly skilled, reliable, English-speaking workforce; liberalized investment and incentives policies; and home to many world-class resorts. Merchandise exports broke records in 2010, growing 34% to $51.4 billion. Service exports hit an all-time high of $11 billion, anchored on the strength of Business Process Outsourcing sector that directly employs 640,000. Remittances from the ranks of 9 million Filipinos overseas reached $23 billion in 2011. Annual inflation rate as of January 2012 is pegged at 3.9 per cent, well within the government target of 3% - 5% for the year. Foreign investments in 2011 increased by 22.12% to $8.6 billion. Top sectors include manufacturing, electricity, gas, air-conditioning supply; real estate; mining and quarrying; and transportation and storage. Top sources of investments are Japan, Netherlands, South Korea and US. The Philippines has the 12th largest population in the world and the second biggest in ASEAN, indicating a sustained source of talent and also a very attractive ready domestic market for investors in the manufacturing services. The 2012 Global English Corporation Report” ranked the Philippines as the world’s best country in business English proficiency. Results showed that from 76 represented countries worldwide, only the Philippines attained a score above 7.0, "a BEI level within range of a high proficiency that indicates an ability to take an active role in business discussions and perform relatively complex tasks." For the Korean investor, this translates into a shorter training period for Filipino workers who can immediately take on the job with minor supervision, who can multi-task, and who display a high sense of motivation and a keen sense of responsibility. Politically, continued positive perception towards the Aquino administration is contributing to a relatively benign situation and strengthening investor confidence – both domestic and overseas. Economically, we continue to grow despite the lingering financial crisis that plagues Europe, and which has affected other countries with economic exposure to that region. Demographically, we have a large population that offers huge market potential and a pool of talented and highly motivated workforce. We believe that we have the right ingredients for success. We believe that we can get back to where we once were, because we believe in ourselves as a resilient, dynamic and highly talented people. We are bullish about the investment prospects for the PhilContinued on page 27

UP CLOSE AND PERSONAL WITH... DEAN MA. ELENITA B. CABRERA BBA, MBA, CPA, CMA Dean Cabrera graduated Magna Cum Laude from the University of the East with a degree of Bachelor of Business Administration, major in Accounting and was one of the topnotchers when she passed the CPA Licensure Board Examination. She earned her Master in Business Administration from the University of the Philippines and is a candidate for Doctor of Education at the University of the East. She is a holder of a Certificate in Management Accounting from the Institute of Certified Management Accountants of Victoria, Australia. Dean Cabrera worked with SGV and Co. as Staff Auditor and taught Financial Accounting, Financial Management, Management Advisory Services, Auditing Theory and Practice in various collegiate and post-graduate schools. She is the author of a number of textbooks in Auditing, Financial Accounting, Financial Management, Management Accounting, and Management Consultancy. Dean Cabrera has published and presented a number of technical papers and served as resource speaker in international conferences. She has developed and implemented the training program on IFRSs, ISAs and Effective Teaching Techniques for accounting teachers and practitioners nationwide. She previously held the position of Dean of the College of Business Administration at the Lyceum of the Philippines and was the recipient of numerous Professorial Chairs. A former Vice Chairman of the Professional Regulatory Board of Accountancy, Dean Cabrera was the BOA representative to the Philippine Financial Reporting Standards Council and the Philippine Interpretations Committee. She was appointed as the Chairman of the PRC CPE Council for Accountancy and Chairman of the CHED Technical Committee for Accountancy Education. She also served as a World Bank Project Consultant on the creation of an Accounting Oversight Board in the Philippines. For her dedicated service to the profession, PICPA gave her due recognition as Outstanding CPA in Education in 1990 and Honorary Life Membership in 2006. She was a former PICPA National Director and Chairman of the Metro Manila Regional Council. Presently, Dean Cabrera is actively involved as speaker, resource person and discussant in various PICPA, PAMA, CPA Sectoral Organizations such as ACPAPP, ACPACI, ACPAE and GACPA, and PACSB sponsored conventions, seminars, conferences, training programs and workshops. A business and academic consultant, she devotes her time in writing more books and enjoying the company of her family particularly her grandchildren. ***** Page 17

To live up to its primary goal which is to assist, educate, train and mentor emerging professionals and students, ISFFA established positive and life-changing programs that are highly integrated to its mission and vision. Below is the list of ISFFA’s ongoing commitment to its members and supporters. Unlock your leader potential. ISFFALeader highlights self-awareness tools and activities that will enhance each individual’s leadership capabilities. Training workshops, presentations and seminars will enable members to develop and mature professionally and allow them to reach their highest potential as leaders of the community. They will learn strategies for continuous development through peer assessment, group discussions, selfreflection, small group activities and personal coaching. The program aims to develop leadership skills based upon each member’s unique personality and cultural background. Build relationships. ISFFAMentor is designed to connect an emerging Filipino Accounting and Finance professional with an established volunteer professional in a mentoring relationship. This program allows emerging professional access the mentor’s professional, leadership and business expertise to help them develop, grow in their professional and personal pursuits. Expand your knowledge. ISFFA provides assistance to individuals, students or professional who require funds for further education but do not have enough resources to support their pursuits. Scholarships and discounted review programs will be provided to deserving students and members with the assistance of its sponsors and partners. Currently, ISFFA is partnered with American Institute of Certified Public Accountants (AICPA), Roger CPA Review,

Critical Reflection...Continued from page 12 still pay better than what accountants get paid in the Philippines. However, one should not stay in “square-one” too long and there should be some rapid progression after getting the job. The PC environment. In this computer age and PC environment, competence is all that matters and one should be more careful about pulling the “race” issue. Perception of discrimination may be different from reality. Entrepreneurial Employees. Like the comment from Flory, (one of the respondents in the research-Ed.) , Filipino immigrant accountants should add value to themselves and their employers by reading new accounting textbooks. They should observe other jobs courageously but not arrogantly or shy. This is to get the big picture and not confine Page 18

Becker Professional Education and DeVry University for this purpose. Set an example. The organization has been a devoted partner with various communities here and abroad. Community Service program is active in helping victims of calamities, participating in medical missions to the underserved communities, as well as partnering with various nonprofits in raising funds for charitable endeavors. Promote your profession. ISFFA hosts a variety of annual Continuing Professional Education seminars or workshops. For the low income, fees are waived for such training. This program reinforces the high ideals of technical competence, ethical conduct and integrity allowing our members to succeed as integral members of management. Become acquainted and involved. ISFFA’s Orientation program assists newly-arrived Filipinos and other immigrants to assimilate in the community by providing assistance through: language translation, housing, improving job skills, employment, as well as assistance with other basic social and cultural needs. The program is designed to provide new immigrants with a psychological advantage through the promotion of a socially friendly and responsive environment. THE TIME IS NOW. Join ISFFA.! Be heard, get ahead and become the best version of yourself. *****

oneself to the small part of accounting that they are doing. In this way, they can move up the ladder more effectively. As a Filipino immigrant accountant himself, Dr. Valle empathized with the participants. When he immigrated to the United States, he also experienced being pushed back to “square one” by being demoted to Accounting Clerk from his previous job as Chief Accountant of HI Cement Corporation in Manila. He had discovered through the study that other Filipino accountants also experienced the same demotion and emotional impact. He learned from the respondent-Filipino Accountants the importance of GRATEFULNESS, FREEDOM, FAITH and the principles of INCLUSION, EQUALITY and HUMILITY. *****

ISFFAn JOURNEY

combination of an effective review course and a person’s determination and sheer passion makes a successful CPA. The CPA Examination is designed to gauge and ensure the competence of a licensee thus; making it one of the most important exams an accounting professional would ever take. A CPA certificate, on the other hand, is a valuable addition to one’s resume in many fields—when applying for a position, raise or promotion, this credential from any of the states makes one’s resume stand out above others. Therefore, it is essential to choose the best CPA Exam Review course that will motivate, prepare and keep an examinee focused on this ultimate goal of getting a good score. ISSFA is much honoured as Roger CPA Review graced the San Francisco Chapter launch on July 21, 2o12. Roger CPA Review works with all the bay area campuses and firms and has a pass rate of 86%. Their students’ high rate of success is accredited to their highly-motivating lectures using the “The Roger Method™” of instruction paired with their industry leading materials. And to show their support to ISSFA’s core objectives, Roger CPA Review donated a Gold Scholarship. The Roger CPA Review Gold Scholarship, valued at $1,000, is good for any three of their course formats: In-Class, Online, or USB. The course includes 100 hours of lecture by Roger Philipp, CPA, along with textbooks, homework books, practice software, and customer support.

By Ryan Dumbrique document preparation for management, operations and audit; comprehensive financial analysis – trend, variance, forecasting, and budgeting; and development and implementation of cross-departmental policies and procedures. Her work encompasses a wide variety of industries – bank, government, healthcare, computer and software to name a few. A natural brains and beauty, Liza was once a runner up in Binibining Pilipinas (an annual national beauty pageant in the Philippines). She received her Bachelor’s in Philosophy minor in Business Administration and Economics from University of the Philippines (UP), one of the top notch schools in the Philippines. Because of her passion in Finance and Accounting, she completed Masters in Finance from Kaplan University in 2011 and is now on her way to finishing her Masters degree in Accounting. Her eagerness to expand her knowledge in Finance and Accounting made her a deserving recipient of the scholarship. ISFFA is very excited for Liza and hoping that this opportunity will help her in obtaining her CPA license in the near future. All the best for Liza and Roger CPA Review!

Liza Gino Clairmont couldn’t help but express her sincere gratitude as she received the said grant. “The Roger CPA Review Gold Scholarship is greatly appreciated. I intend to take the CPA exam and the scholarship will definitely help with my review. I can only pray to be as accomplished like all the other ISFFA officers,” affirmed Liza. Aside from being a proud ISFFAn, Liza is a Portfolio Accountant at Carmel Partners, a full-service real estate company. She has more than ten years of professional working experience in the field of Finance and Accounting and specializes in strategic process flow analysis, flowcharting and

ISFFA SF Officers awards the scholarship to a deserving ISFFAn (From left: Rizza Velarde, Liza Clairmont, Melissa Garcia, Ryan Dumbrique)

Why Join?...Continued from page 9 ISFFA invites you to share in a world that welcomes and supports everyone.

sional association, it can be: YOUR family, YOUR charity, YOUR support group, YOUR employment agency, YOUR training organization, YOUR social networking group.

One moment is all it takes to change your life forever. One presentation, One conversation, One idea. One step, One decision.

I invite you to make ISFFA a part of your LIFE. I ask for your commitment. ISFFA has a sustainable plan and a strategy. I invite you to be our partner in moving forward.

ISFFA’S core values of high integrity, strong values and ideals, professionalism, and brotherhood encourages and motivates all of us to be the best we can be… It is important to understand that ISFFA is NOT merely a profesPage 19

As Anthony Robbins said, “It's in your moments of decision that your destiny is shaped.” *****

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SNAPSHOTS: LOOKING BACK AT THE SF CHAPTER LAUNCH

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2012-2014 ISFFA—SF OFFICERS

izza Velarde is a Senior Manager at Ernst & Young’s Core Assurance practice specializing in Life Sciences and Employee Benefit Plans . She has more than 10 years of experience in financial statement audits of both public and nonpublic companies and domestic and global operations , including, biotech companies, venture capital funds, manufacturing and telecommunication companies. She has broad experience in addressing various complex technical accounting issues, which includes but not limited to valuations, SEC and SOX compliance, business combinations, revenue recognition and financial instruments. She received her Bachelor of Science in Accountancy degree with honors from Philippine School of Business Administration and is a Certified Public Accountant in the State of California and in the Philippines. Rizza is gifted with an arcadian persona that matches her global skill-set and experience needed to handle Operations and Oversight.

yn is currently the Chief Accounting Officer of Asia Pacific Viadeo Operations (dba APVO Corporation). She has been primarily involved in setting up and managing Accounting Information Systems, Internal Controls, Treasury and Human Resources. Her industry experience includes banking, microfinance, advertising, digital and newspaper publishing, construction, retail merchandising, business process outsourcing, Tax, Legal and Management advisory services. Lyn earned her Bachelor of Science degree in Accountancy from Saint Louis University and CPA license in the Philippines. Lyn joins ISFFA with a load of free-spirited, fervent ideas, radiating intensity and wide media influence and exposure appropriate for her position .

Certified Public Accountant tional companies such as P Gamble . After graduating delivering her inspiring grad ler Graduate School of DeVr ered the graduates to find th and move forward , she fou cided to become an entrep consulting firm out of her b nority business owners that es . After years of exposures bility, and Technical Account Control , Tax , Non –Profit , ing services , she wants to ta accounting and entrepreneu ing potential business advanc ness planning, project man business development. She graduate studies in Finance a is driven to learn more. Mai ern hero and not a passive v this role.

yan is an Accountant at Pall ForteBio Corporation, a Division of Pall Life Sciences. He specializes in financial statement close , general ledger and account reconciliation and analysis,. His work includes a wide variety of industries namely biotechnology, manufacturing, pharmaceuticals and business process outsourcing. He received his degree in Bachelor of Science in Accountancy from University of Santo Tomas, Philippines . He is a candidate member of American Institute of Certified Bookkeepers and California Society of Certified Public Accountants. Ryan has the creativity and resourcefulness that ISFFA needs to develop the activities, design the graphics and fidget with the technical stuff.

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2012-2014 ISFFAâ&#x20AC;&#x201C; SF OFFICERS

fter graduating from De La Salle University in the Philippines with BS in Accountancy, she obtained her Philippineâ&#x20AC;&#x2122;s and worked for top multinawC Philippines and Procter & as a Summa Cum Laude and duation Keynote Speech at Kelry University, which empowhe courage , follow their heart und the paradigm shift and depreneur , set up her own CPA business plan, which helps mit are facing financial challengs in Brand , Controlling Profitating , Auditing, SOX, Internal Operations and other Consultake the successful route in tax urship and is currently explorcements that specialize in businagement , investments and e is currently pursuing postat University of Berkeley, as she i decided to be the proactive modvictim in her story that lead her to

hirley has been involved with some start- up companies in Silicon Valley, particularly in corporate finance matters and business formation. She is currently involved in the business management of a Silicon Valley based company servicing children with special needs, property management, real estate development projects. Shirley started her career as a financial auditor in the Philippines before she moved to a securities company where she handled cash account and treasury management positions. She passed the CPA board exam in the Philippines and in California. She has a degree in Bachelor of Science in Accountancy and has completed Personal Financial Planning Program at the UCSC . Shirley adds up her meticulous pencil-sharp writing skills with her lengthy corporate campaigns necessary to jumpstart this role.

vy currently works as a Senior Accountant at De Guzman and Associates. She has extensive knowledge in audit, accounting and tax services in the manufacturing, retail and service industries. In the Philippines, started her career as an Auditor at SGV and Co and worked as an Accountant at Zilog Electronics, thereafter. She received her Bachelor of Science in Commerce , Major in Accounting, With Honors from Far Eastern University, Philippines. Evy is a brilliant, number-crunching, accounting and auditing person in non-profit organizations that makes her appropriate for the role as a Vice President of Finance.

elissa is currently the SOX and Financial Governance Manager at Kaiser Foundation Health Plan, Inc and Hospitals and has more than ten years of professional working experience in the field of accounting. She specializes in financial audit, Sarbanes-Oxley Compliance, business process improvement reviews, consulting engagements, compliance and due diligence reviews for public , private , domestic and multinational companies of various sizes . She received her degree in Bachelor of Science in Accountancy from the Polytechnic University of the Philippines and is a Certified Public Accountant in the State of California and in the Philippines. Aside from her sagacious mind, Melissa has a magnetic warmth and friendly personality that can attract potential members.

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CAREER PATH make the experience more “natural.” For example, ensure there is ample natural light at your location and that it’s directed onto your face, rather than from behind you, reducing shadows and glare.

By Amy Hill of Robert Half International

iven the expense of flying in remotely located candidates for in-person interviews, more companies are conducting video interviews using Skype and similar technology. Internet-based videoconferencing tools allow employers to reach out to candidates virtually anywhere in the world easily and cost-effectively. While use of the technology is becoming increasingly commonplace in business, for many hiring managers, this is still unfamiliar territory. Setting the stage for a positive video interview experience for both you and the candidate requires some planning and practice. Here are some tips for delivering a star performance: Don’t let go of best “offline” practices. Videoconferencing services like Skype allow you to schedule a meeting from almost anywhere — your home computer, your cubicle, even from a smartphone or tablet computer. However, no matter where you conduct an interview, don’t let your surroundings interfere with maintaining a professional atmosphere. For instance, if you’re working from home, dress as you would if you were conducting a formal, faceto-face interview with a candidate — after all, that’s what you’re doing, albeit virtually. Also, if you’re doing the video interview from your employer’s office, remember that your webcam is the candidate’s window into the company. Take care to select a location that is tidy, quiet and free of distractions. To ensure privacy, you may want to consider reserving a conference room. Let your colleagues know you’ll be interviewing a potential hire and must not be disturbed — just as you would if you were meeting the candidate in person.

Also, avoid leaning into the webcam because it can create visual distortion for your audience. However, look directly into the webcam, and not at the screen, when speaking to the candidate. In a face-to-face interview, maintaining eye contact is essential to making a positive connection with a potential hire — and it’s no different in a video interview. Account for technical difficulties and time delays. Videoconferencing is a convenient but imperfect technology. Its effectiveness depends on the speed of your broadband or DSL connections and how much network traffic is being carried on both your company’s and candidate’s systems at the time. Even under the best of conditions, delays and “choppiness” in video and voice are common; work around these issues by speaking slowly and trying not to move around too much. Allow for a second or two of “dead air” to pass after a candidate finishes speaking before you deliver your next question or comment (think of TV news anchors conducting interviews via satellite). This will help to avoid awkward and confusing overlaps in the conversation. If you’ve never conducted an interview via videoconference, don’t risk making a poor impression by jumping into the process cold turkey. Practicing with a colleague can help you to build confidence and polish your skills before your debut. And always be prepared to rise above technical problems: Keep the candidate’s contact information handy just in case you have to grab an old-school tool, the phone, to complete your conversation. This article is provided courtesy of Robert Half International, parent company of Accountemps, Robert Half Finance & Accounting and Robert Half Management Resources. Robert Half is the world’s first and largest specialized staffing firm placing accounting and finance professionals on a temporary, full-time and project basis. Follow Robert Half on Twitter at twitter.com/roberthalf.

Treat your small screen like the big screen. When preparing to conduct a video interview, approach the process like a film or TV director and think about how to

Survival Guide...Continued from page 13 ing a job;  Aggressively build and enhance your core-values and support infrastructure. This is the essence of “cradle to grave” strategy.  Organize, participate, and collaborate with organizations that add and enhance value based on the “cradle to grave” strategy.

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*****

  

Be an informed and savvy citizen; actively monitor and participate in the governance of your community. Participate in the election process; support the best candidates and policy makers, noble causes and conditions that promote good governance. Participate in mentoring pilots. *****

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Thank you for your continued support of ISFFA and your efforts in our mission with empowering tomorrow's leaders today. ISFFA is pleased to share that Becker Professional Education and Roger CPA Review are offering ISFFA members a $300 discount and $500 discount off on their CPA Exam Review courses respectively. This offer is available to ISFFA members only. If you need more information about the discount offering, please contact sf.isffa@gmail.com. Become a member and take advantage of this great offer..

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MEMBER’S CORNER

By Melissa Garcia

Membership

in ISFFA is far more than participating to a professional organization. ISFFA is your one-stop source of professional, personal and career development that will give you access to the tools, information and network you need to drive your full potential as a professional. Some of membership perks and benefits include the following: Opportunities         

Scholarship, Mentorship, and Internship Opportunities Access to Assistance Programs for Higher Education Participate in fund-raising events Career Advancement Opportunities Local Chapter Networking Events, Receptions and Programs Access to Job Opportunities Professional and Student Career Fair & Expo Continuing Professional Education Courses Professional Student Leadership Programs

Personal Development  Assistance in transitioning from Philippine lifestyle to the U.S.  Leadership Skills  Presentations and Public Speaking  Mentoring  Team Building  Community Service Professional Development 

Management Skills

 

Continuing Professional Education Diversity Awareness and Training

Philippine Economy...Continued from page 16 We are bullish about the investment prospects for the Philippines. We hope you would share the same optimism and take the decision to locate your business in the Philippines. We say, invest in your future, invest in the Philippines now. (From the Remarks by H.E. LUIS CRUZ, Philippine Ambassador to Seoul, Korea, during the Federation of Korean Industries Business Dinner with ASEAN Ambassadors, Lotte Hotel, 16 July 2011) ***** Page 27

Business Development  Business Mixers  Marketing Channel  Resource Portal

UPCOMING MEMBERS’ ORIENTATION After its successful launch in San Francisco, ISFFA SF will hold its first Membership Orientation Meeting on September 22, 2012 for new, existing and prospective members. As promised during the launch, ISFFA is dedicated to providing the greatest value and service to existing and potential members and is committed to understand what members are looking for in the Organization and help them get a sense of the ISFFA community. This orientation will offer an overview of the Organization’s programs , events and initiatives , give members an opportunity to connect with the San Francisco officers and other members of the organization , discover the mission and vision of the group, hand over the identification card of the members and explore their benefits and help them understand how the organization and the committees function. ISFFA will also provide a forum where members will get a chance to contribute ideas , develop activities and assert their needs that will add value to the organization on its primary goal of assisting, educating, training and mentoring emerging accounting students and professionals (both domestically as well as globally). There is no fee to attend but please RSVP by sending email to Sf.isffa@gmail.com or calling Melissa 415-3122920 or Ryan 408-823-6570. SEE YOU THERE!!

THE ISFFAMentor AND THE ISFFALeader Experience Real Empowerment through ISFFAMentor and ISFFALeader Programs

he development of emerging professionals is the cornerstone of ISFFA’s mission. ISFFA Leader and ISFFA Mentors will definitely help ISFFA achieve this mission. ISFFA Leader is designed to provide customized training to our members to enable them to develop and mature professionally and to allow them to achieve their greatest potential. ISFFA Leader will provide requisite leadership trainings, workshops, presentations and seminars that are customized to the membership needs. Our customized programs will teach strategies for continuous development through Peer Assessment, Group Discussions, Self-Reflection, Small Group Activities and Personal Coaching. And because of our focus on development planning, which ties program experiences to the context of your workplace, every program will be

unique to each of the program participants. ISFFA Leader is for the newly graduate professional and to mid- to senior-level professionals.

counting access to more experienced individuals who can give them personal guidance and direction on issues affecting their professional career.

The training will develop a sense of self-awareness that will lead to ISFFA Mentor connects emerging change in their organizations. Set professionals with distinguished menclear achievators whom we handble goals, picked from various build and fields and industries. ISFFA Leader and Mentor will maintain proThese mentors will procreate a new breed of successful ductive relavide coaching and leaders and most specially, it tionships, counseling to emerging leverage dif- will bring out the best in you. Be professionals through part of this wonderful program ferences in regular interactions. and together, we will inspire other people, ISFFA aims to develop and empower. This is for us! resolve conin its members, clear flicts, and sense of self awareness, consistently promote self-confidence and exude take positive actions. professional presence in the early stage of their career - qualities we believe in ISFFA will complement their ISFFA Mentor, on the other hand, technical competence and accelerate will complement the ISFFA Leader the achievement of their goals. Program by providing emerging professionals in the Finance and Ac-

What our Mentors and Mentees say about ISFFA Leader and ISFFA Mentor... “Having personally experienced the value of having several mentors throughout my professional career. I strongly believe that this program will provide tangible benefits to our members. To mentors, this is a great way to give back and to share the wealth of our professional experience. To the mentees, having someone to guide you through your professional journey is absolutely valuable. ” Cecile Galvez, Mentor “I think it is important for students like us to receive feedback from professionals with the work experience in the field we are interested in. ISFFA leadership and mentorship program will definitely Page 28

help us in achieving that goal.” Heriel Alvarez, Mentee “ISFFAMentor Program will not only get students like me a chance to network with other professionals but it opens the door for opportunities such as gaining knowledge on how to communicate effectively and eventually build successful working relationships. “ Irene Albia, Mentee “I believe that it is very important to have an inspiration in this very challenging and dynamic profession. On top

of the high demands of the job in terms of technical knowledge and experience, we also have to surpass challenges related to cultural differences, diverse work styles or even language barriers sometimes. I feel that I would have never gone this far without the help and guidance of my very own mentors at work or even within my Filipino community. As my own way of imparting to my fellow Filipinos what I have learned, I am very excited to participate in this mentoring program.” Rasel Manlapaz, Mentor

*****

MENTORS CIRCLE

BAY AREAâ&#x20AC;&#x2122;s FIRST BATCH OF MENTORS ISFFA needs people like YOU! JULIE ADAMS Agent New York Life Insurance Company

RICK GUTIERREZ Partner WuHoover Resources

AME PONCE Recruiting Leader US Assurance,West Sub Area Ernst & Young LLP

MARIA TERESA PALMA Chief Financial Officer AyalaFil Co.

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RIANNE SUICO Senior Manager Health Care Services Group Moss Adams LLP

TIMOTHY LANIGAN Admissions Supervisor DeVry University

BENNIE LOU BURRIS AVP/Trust Admin Officer Whittier Trust Company

CYNTHIA SANCHEZ Associate Director Geballe Laboratory for Advance Materials Stanford University

GILBERT CABRERA VP, Finance Corporate Risk Management Safeway, Inc.

DANIEL RAVAL Franchisee Liberty Tax Service Professor Devry & USC Sta Cruz

EDCELYN PUJOL Financial Advisor Northwestern Mutual Financial

GRACE ANDRADE Project Financial Consultant, AVP Wells Fargo Bank

THE PANELISTS: MAPPING YOUR FUTURE The “Mapping Your Future” panelists who shared success stories and insights on how higher education , mentorship, continuing education, and culture have contributed in mapping the future and optimizing career opportunities.

“Small businesses are the driving force of the economy, moving in the right direction.” “Banks are pushing lending to small businesses.” James Diangson “Conduct your due diligence; aggressively build and enhance your core values and support infrastructure.” David Paraiso

“It doesn’t matter where you came from. Map your future… I have gone a long way from the Southern Mindanao mountains...” Don Pintor “To understand success, understand failure; Adapt, overcome, and improvise.” Tim Lanigan “Ask not what the company can do for you but what you can do for the company. Maintain integrity, be customer- oriented and maintain balance in life.” Danny Raval

“Be positive…take ownership and be accountable for everything you do.” “Have passion, love what you do.” Cynthia Sanchez

“Have grace under pressure and be accountable for what you do.’ “Look at life and what you got ahead of you.” Rianne Suico Page 30

THE PANELISTS: SOFT SKILLS AND BUSINESS ETIQUETTE Great leadership and communication skills , and maintaining good business etiquette in a digital world, are the tools the following panelists have shared. It's undeniable that they have served as backbone of the industries not only as successful professionals but also as advocates in promoting these qualities.

ARNOLD PEDRIGAL Arnold is a recipient of the 2007 Telly Awards for Video Excellence for his work on a promotional video for non-profit organization in San Francisco produced in 2006. Arnold is also one of the cofounders of Fremont Film Forum founded in 2008.

BENNIE-LOU QUEVEDO-BURRIS Bennie is a donor, volunteer, and served as Executive Board Member for various non-profit humanitarian organizations that serve local and international causes. 100 Most Influential Filipina/American in the USA 2011 - Awardeeâ&#x20AC;?

TY KAPRELIAN Ty helps educate students and uncertified staff about the CPA Exam and Beckerâ&#x20AC;&#x2122;s CPA Test Preparation Course. Ty has developed a variety of skills in the area of marketing communication, program development and event and employee management.

AME PONCE Ame Ponce has been with Ernst & Young for 9 years and is currently the US Assurance Leader for Experienced Recruiting. She also has dual responsibilities as she is the West Sub Area Recruiting Leader across all service lines for Ernst & Young.

RICK GUTIERREZ Rick actively participates in various Accounting/Finance Alliances, nonprofit organizations and various Asian networking groups as speaker/mentor/advisor. He is a Board of Director for Asian Business League of San Francisco, Advisor to NA@AP, Board and Conference Co- Chair for Ascend Northern California, and an Advisor to UC Berkeley and SFSU Ascend student Organization.

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ISFFA MESSAGE BOARD

!!! IONS ULAT T A c R a Su CONG .....for F S h A nc ISFF nd Lau ul Gra the ll cessf a o dos t u K . .. ple be ing d peo n a s . r .. e ne Offic ell Do Job W a Barron hind. Riz !!!!! Bravo

TO ALL OFFICERS : CONGRATULATIONS FOR A JO B WELL DONE! This successf ul event made me inspired to conti nue my professional accounting jou rney. -Malou Jarcia

It was nice meeting you today and thank you for the wonderful ISFFA event -Fernel Andong

On behalf of Pr owave Media, the producer of Po wer ng Pinoy TV ,I would like to th ank ISFFA for making us part of your Grand Launch Event last Saturday. Congratulations to the SF Chapte r officers and to the entire ISFF A. More power to you all - Arnold Pedriga l

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Thank you for including me in this event, I really enjoyed myself. I’d be glad to join as a mentor. -James Diangson

Sounds likeit was a great success and I’m glad we were able to be a part of it even though we couldn’t physically be there. Looking forward to working with ISFFA on future projects -Ali Roberts

the me at having you r o e f tulat you a k r n g a n h o a T st c g such . I mu r havin o ISFFA d f o o m f The ur tea vent. and yo e d e as rganiz yone w well-o d ever n a like to t ld a e I wou , was gr ly t s of ice. La ident very n e Pres h t nd h wit rea a meet Bay A e h re I t e in as wh ISSFA fy are i t elp. n h e id t and r o p maybe p su Adams rther -Julie can fu

I t is my p leas witn ure ess t and gran shar o d an e yo d ful l aunc very suc ur h. M cess to y ore our powe chap r ter -Soc Padu a

Thanks again for a fun day. Congratulations on your launch and more power to your organization! -Michi Valeriano

Congratulations again! Thanks to you and your team for inviting me and honoring me with the certificates of appreciation! More power to you and SF ISFFA!! -Bennie Lou Burris

Congratulations on your induction as officers into ISFFA! ADP is very excited that we were able to be a part of Saturday's launching of the San Francisco Chapter and I want to extend our thanks for inviting us to participate. We can discuss about how we partner with the local accountant community. -Nicolay Jordan

Happy birthday ISFFA SF! :) All the best! -Erwin Bonilla

Happy Launching!!! -Prosy Dela Cruz

Hope all is well! Great meeting Benel , Emily and the ISFFA officers in SF. As discussed, you can count on my support in helping the organization succeed in the Bay Area and nationally. -Don Pintor

It w a

sa turn great Suc out. ces sfu I -Re ndeed! l y Pu !! ent ene gra

I'm g lad to hear the e that vent was a and r succe egret ss I atten d. I w could not ish yo tinue u con d suc cess ing t in hel he Fi p l ipino nity o comm f fina unce p rofes siona ls. -Loid a Dua la n

Very nice ev ent on Satur day. Let's hope you get the particip ation you need. i wante d to say mor e, but the time elemen t was small. T hi s could be a very good to ol for most of anyone in terested. -Tim Laniga n

I’m so proud of the organization that you are part of. I would love to be part of the mentoring program. -Grace Andrade

The Even coul tw d ju s t im as very num agin well be e th that r of ho e de organiz u Even ed r tails t. G s comm I done i and topi reat sp tted in ice l t he e c s a s c ocat k , tal hed uling ion, ente ers wit g h d o r o h spon elev sors d Filipin osts an ant d o and surp food, im risin g gu pressive e - Jo nabe sts. l Per ez

SPOTTED… ON THE ISFFA SPOTLIGHT

By Emily “Mai” Enriquez-Patton the shortest pathways towards partnership.

eep searching and you will find .

Keep knocking on all the corporate blocks and the door will be opened for you. Loida Joy Dualan, one of the few Filipino PWC partners, put in long hours and hard work to earn her Master’s Degree at Cal Poly Pomona. She focused on IT because she wanted to continue to leverage her finance knowledge and experience to better understand the IT systems enabling the financial processes and controls. At ARCO, as with many companies, communication between the IT department and the Finance and Accounting department was strained and ineffective. There was a need for people who understood and could speak both IT jargon and Finance/ Accounting terminology with both teams. She made it her goal to be the intermediary between the two organizations and from then on, her career was set for PARTNERDOM. Knock and the door will be opened. Then, at PWC, she continued to take the road less travelled. When most of her colleagues were excited by the internet and technology companies, she chose the path less travelled and focused in the Energy and Utilities Industry. Hence, she knocked this door out , wisdom came out , experience built up, mastery flourished which prepared her career to one of

Ask and it shall be given you. “ Just ask . Two results , either you do get it or you don’t “ Joy believes that if you need something from the Corporate world, you need to ask for it and you might just get what you ask for.

… you have to reach and build a rapport by connecting with the people you meet.

However, you have to demonstrate your capabilities and confidence. Before asking, she gave her best time away for free by acting as a manager when she was just a first year associate. Stop tweeting and start talking . “Asians /Filipinos are still getting over the hurdles in self -advertising “. No one is going to be the greatest

cheerleader for your product than you are , no matter how good your products are . You need to make people aware of you and your abilities. She calls it “self- advertising with respect” . Told her “With your soft voice, I could never imagine that you would actually bang your hand in the corporate jungle’s battlefield – the boardroom” . She said , “oh it happens .With a lot of men in the room that love to talk about themselves, you have to be assertive but also diplomatic to do everything you need to be in a very strong position or be in equal footing” ” Conclusively, she added “you have to reach and build a rapport by connecting with the people you meet. Don’t just dive into the business talk too soon” With this, we are developing a voice and content and more importantly building relationships. “Just the best version of ourselves”, I quipped. *****

Loida Joy Dualan Partner, PricewaterhouseCoopers LLP Internal Control Specialist at Arco Products Company California State Polytechnic University USC – Marshall School of Business ISFFA SF President “Emily Enriquez-Patton” with ISFFA pioneer supporter “Loida Joy Dualan” Page 34

AUDIT FLASH

By Rizza Velarde

ccounting standards are revised from time to time in keeping with the changes taking place in the business field. Standard setting body has been busy updating and improving these accounting standards to cope with these changes. With that in mind we created this Audit flash to share with you the news from these standardsetters to help keep you up to date with all the changes that m i g h t affect your company or your client. Below is a list of some newly effective pronouncements in 2012 that could affect your Company or your clients. This is not a comprehensive list, but it highlights the updates on each of the standards. Accounting Standards Update (ASU) 2011-05 and ASU 2011-12-Comprehensive Income(Accounting Standards Codification (ASC) 220), Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income •Effective date: Public company effective date: Fiscal years, and interim periods within those years, beginning after 15 December 2011. Nonpublic company: Fiscal years ending after 15 December 2012, and interim and annual periods thereafter. • For annual periods, companies are required to present the components of net income and other comprehensive income, and a total for comprehensive income, either in a single continuous statement or in two consecutive statements. For interim periods, companies are required to report a total for comprehensive income in a single continuous statement or in two consecutive statements. ASU 2011-04 - Fair value measurements (ASC 820), Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements •Effective date: Public company: Interim and annual periods beginning a ft er 15 D e c em b e r 2 0 11 . Nonpublic company: Annual periods beginning after 15 December 2011. • The guidance is applied prospectively with any resulting measurement changes reflected as a change in accounting estimate. Key clarifications and changes to ASC 820 include: a) The use of a blockage factor is not permitted for any fair value measurement. Blockage factors were previously prohibited only for Level 1 measurements. b) The concepts of “highest and best use” and “valuation premise” are relevant only for no nf i na nc i al a ss et s . F in a nc ia l i nst ru m en ts may be measured based on the company’s net exposure to

a particular risk if certain criteria are met. c) Several new disclosures are required, many of which focus on providing additional information about the Company’s Level 3 measurements, including (1) quantitative information about the significant unobservable inputs used in the measurement, (2) a qualitative discussion about the sensitivity of recurring measurements to changes in the unobservable inputs disclosed and (3) a description of the valuation processes used by the company. ASU 2011-08 - Goodwill and Other (ASC 350), Testing Goodwill for Impairment • Effective date: Annual and interim goodwill impairment tests performed for fiscal years beginning after 15 December 2011. • The standard gives entities the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, the Company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company must proceed to the two-step impairment test. Otherwise, the Company may elect not to perform the current-year quantitative analysis. ASU 2010-28 - Intangibles — Goodwill and Other (ASC 350), When to Perform Step 2 of the Goodwill Impairment Test for Reporting Units with Zero or Negative Carrying Amounts • Effective date: Public entities: effective for fiscal years, and interim periods within those years, beginning after 15 December 2010. Nonpublic entities: effective for fiscal years, and interim periods within those years, beginning after 15 D e c e m b e r 2 0 1 1 . • The amendments in this ASU 2010-28 modify Step 1 of the goodwill impairment test for reporting units with zero or negative carrying amounts. For those reporting units, an entity is required to perform Step 2 of the goodwill impairment test if it is more likely than not that a goodwill impairment exists. In determining whether it is more l i kely tha n not that a goo dwill impairment exists, an etity should consider whether there a r e a n y a d ve r s e q u a l i t a t i v e factors indicating that an impairment may exist. The qualitative factors are consistent with the existing guidance and examples in paragraph ASC 350-20-35-30, which requires that goodwill of a reporting unit be tested for impairment beContinued on page 36

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FOR PROFIT….OR NOT?

ISFFA is a NonProfit. What’s in a NONPROFIT? By Evelyn Torres

ver wonder what the phrase “tax-exempt under Internal Revenue Code section 501( c )(3) is all about? To qualify for tax-exempt status, the organization must be organized and operated exclusively for an “exempt” purpose. This means that the organization must satisfy the organizational test and operational test to be granted tax exemption. The organizational test is met if the articles of incorporation limits its purpose to one or more of the “exempt” purposes. Exempt purposes are religious, charitable, scientific, testing for public safety, literary, education, fostering national and international sports competition, or the prevention of cruelty to children or animals. The operational test requires the organization to be engaged primarily in activities which accomplish one or more of the exempt purposes. Most nonprofit organizations were formed to do “public service” or to provide assistance to segments of the community that are outside of the general scope of the government. The most common legal form for these organizations is the public benefit corporation.

Because of its tax-exempt status, it is important for a nonprofit organization to maintain an efficient and accurate fiscal management. The goal in establishing internal controls over fiscal management of the nonprofit organization is to prevent error, fraud, theft or mismanagement. The organization’s directors and officers play a key role in establishing internal controls of the organization through their approval of the policies and procedures that determine the fiscal management system. In addition to keeping financial records, the organization is required to file reports to various government agencies, namely: Federal information return to IRS (Form 990), California return for tax-exempt organization to the Franchise Tax Board (Form 199), Registration/Renewal Fee report to the Attorney General’s Registry of Charitable Trusts (RRF-1). The directors and officers of a nonprofit public benefit corporation are responsible for conducting the organization’s affairs and for exercising the powers of the corporation. Most directors and officers of nonprofit organizations serve on a volunteer basis, and do not receive compensation, other than reimbursements for actual expenses. In general, directors and officers are not personally liable for debts or obligations of the corporation. However, the director may be held personally liable to repay damages to the corporation itself where he has breached his duty of care or loyalty to the corporation. More information about nonprofit organizations can be obtained from the offices of California Attorney General Registry of Charitable Trusts and BBB Wise Giving Alliance. *****

Audit Flash...Continued from page 35 t ween annual t est s if an event occurs occurred. All other acquisition-related costs should be or circumstances change that would more likely than not c h a r g e d to expense as incurred. reduce the fair value of a reporting unit below its carrying a m o u n t . This section is intended to keep readers informed of recent developments in accounting, but ASU 2010-26, Financial Services — Insurance is not intended to be all inclusive. Readers should refer to (ASC 944), Accounting for Costs Associated with t h e original publications in question Acquiring or Renewing Insurance Contracts before making decisions on the basis of the updates/ • Effective date: Effective for fiscal years and interim peri- developments summarized above. Refer to ods within those fiscal y e a r s www.fasb.org for more information. beginning after 15 December 2011. • The guidance specifies that certain costs incurred in the ***** successful acquisition of new and renewal contracts should be capitalized. Those costs include incremental direct costs of contract acquisition that result directly from and are essential to the contract transaction(s) and would not have been incurred by the insurance entity had the contract transaction(s) not Page 36

FINANCE MATTERS

By Shirley Bayani

As officers of the organization, we share ideas on how being one of the officers of a new organization can actually empower us. Focusing on the mission and vision of ISFFA, “Empowering Tomorrows’ Leaders Today”, we assess where we are and where we would like to be. One of the best benefits of joining the organization is having direct access to people who can be instrumental to the success of the members and the organization.These people, having come forward to unselfishly share their technical skills and wisdom, help us establish a strong footing. We can learn new things not only in a formal learning environment but more importantly, by being open to new ideas in the real world, especially in Silicon Valley, a place rich in ideas, talents and resources. We would like to share these lessons as a reminder to us of the mission and vision of the organization from the directions our coaches have shared, thus far. We understand that not everything is handed to us on a silver platter; we have to do our homework to have an in-depth understanding towards effective application. This article provides a general overview of these lessons, which serve as guide and reminders to the members and leaders of the organization. Practice Inclusion Inclusion is the word that is hard to ignore as several of our mentors and guests have stressed its value. Here is an excerpt on a report on inclusion: “The 1998 Richard and Alice Netter Labor-Management-Public Interest Seminar, sponsored by Cornell University ILR and the National Conference for Community and Justice brought together organizational leaders, workplace practitioners and trainer/educators from public, private and non-profit organizations as well as  academia to explore the Page 37

question: What will an inclusive organization look like when it's achieved? Diversity and inclusion are terms frequently used together. For the purpose of the Netter Seminar, diversity describes the spectrum of human similarities and differences. Inclusion, on the other hand, describes the way an organization configures opportunity, interaction, communication, information and decisionmaking to utilize the potential of diversity. Achieving inclusion means creating the structures, policies and practices in organizational life that recognize more than one view and signal the importance of learning from differences. Inclusion refers to the systemic nature of an organization. Inclusion is not necessarily limited to the way an organization deals with employees; it may refer to interactions with customers and clients, partners, vendors, suppliers, and subcontractors as well.

Community Relationship” At ISFFA, we have taken and we will take further steps to utilize practices that reflect inclusion. Empowerment through major participation in the industry known as the Silicon Valley Participation and benefiting from emergence of various high technology enterprises, universities and other non-profit organizations in the Silicon Valley industry is one way to have a major participation. 

A good example of a group of finance and business professionals empowering not only its members but also the rest of the working professionals are those venture capital firms. As a finance and accounting organization, we at ISSFA can motivate groups of finance, accounting and business people in a way that goes beyond employment as a method of empowerment. Entrepreneurship does empower! This is part of the engine that runs Silicon Valley.



Another good example is Hewlett Packard Foundation that continually gets and gives. A fund should be managed and invested successfully to ensure the longevity of the organization. Most importantly, if this fund is automated in such a way that solicitation becomes automatic, such fund can be designed as an investment fund for an objective yield to finance the activities of the organization. A good example is Stanford University receiving donations from alumni. The success of individuals supported by the organization and their "payback" shall be to continue to make the organiza-

The participants identified the following attributes or qualities necessary for an organization to be inclusive: · Demonstrated Commitment to Diversity · Holistic View of the Members and the Organization · Access to Opportunity · Accommodation for Diverse Physical & Developmental Abilities · Equitable Systems for Recognition, Acknowledgement & Reward · Shared Accountability and Responsibility · 360° Communication and Information Sharing · Demonstrated Commitment to Continuous Learning · Participatory Work Organization and Work Process · Recognition of Organizational Culture and Process · Collaborative Conflict Resolution Processes · Demonstrated Commitment to



Continued on page 41

TAX FLASH

By Evelyn Torres and Emily Enriquez-Patton ither as an individual or business owner, you maybe

affected by Obamacare (aka Affordable Care Act or Healthcare Law). Although the purpose of this federal health reform legislation is to assure that all Americans have access to affordable health insurance, what does Obamacare mean for your taxes? IRS has issued proposed and/or final guidance that are already in effect or will take effect next year. ISFFA provides you the outline of some of the health insurance reforms and related tax provisions you need to make informed choices about your health entwined with the tax consequences. These are some of the tax provisions that have a direct impact on individual taxpayers. Health Flexible Spending Arrangements. Effective Jan. 1, 2011, the cost of an over-the-counter medicine or drug cannot be reimbursed from Flexible Spending Arrangements (FSAs) or health reimbursement arrangements unless a prescription is obtained. The change does not affect insulin, even if purchased without a prescription, or other health care expenses such as medical devices, eye glasses, contact lenses, co-pays and deductibles. This standard applies only to purchases made on or after Jan. 1, 2011. A similar rule went into effect on Jan. 1, 2011, for Health Savings Accounts (HSAs), and Archer Medical Savings Accounts (Archer MSAs). In addition, starting in 2013, there are new rules about the amount that can be contributed to an FSA. Health Insurance Premium Tax Credit. Starting in 2014, individuals and families can take a new premium tax credit to help them afford health insurance coverage purchased through an Affordable Insurance Exchange. Exchanges will operate in every state and the District of Columbia. The premium tax credit is refundable so taxpayers who have little or no income tax liability can still benefit. The credit also can be paid in advance to a taxpayer’s insurance company to help cover the cost of premiums. Health Coverage for Older Children. Health coverage for an employee's children under 27 years of age is now generally tax-free to the employee. This expanded health care tax benefit applies to various work place and retiree health plans. These changes immediately allow employers with cafeteria plans –– plans that allow employees to choose from a menu of tax-free benefit options and cash or taxable benefits –– to permit employees to begin making pre-tax contributions to pay for this expanded benefit. This also applies to self-employed individuals who qualify for the self-employed health insurance deduction on their federal income tax return.

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Group Health Plan Requirements. The Affordable Care Act establishes a number of new requirements for group health plans. Interim guidance on changes to the nondiscrimination requirements for group health plans can be found in Notice 2011-1, which provides that employers will not be subject to penalties until after additional guidance is issued. Medicare Part D Coverage Gap “donut hole” Rebate. The Affordable Care Act provides a one-time $250 rebate in 2010 to assist Medicare Part D recipients who have reached their Medicare drug plan’s coverage gap. This payment is not taxable. This payment is not made by the IRS. Furthermore, some tax provisions that affect businesses and organizations may indirectly impact individual tax Continued on page 42

REACHING OUT TYPHOON SOALA AND HABAGAT FLOOD RELIEF DRIVE " A devastating typhoon â&#x20AC;&#x153; Saolaâ&#x20AC;? and Habagat flood hit Philippines recently, leaving thousands of our kababayans homeless, helpless and killed by this catastrophe. The International Society of Filipinos in Finance and Accounting in partnership with Gawad Kalinga and Ancop USA is calling on its members and supporters to respond to the recent tragedy in our country. Let us all help our fellow kababayans and share our blessings. ISFFA is accepting CASH donations, in any amount, for the benefits of the typhoon and flood victims. All contributions are 100% taxd eductible as ISFFA is a tax exempt organization under IRC code 501(c) (3). For more information , call Lyn Naira at 650-228-9440(SF) or Rey Puentenegra at 213-247-8753(LA). Please make your checks payable to ISFFA (Typhoon Saola and Habagat Flood Relief Drive) and send it to the following addresses: Los Angeles Community : ISFFA 801 S Grand Ave., Suite 400 Los Angeles, CA 90017 San Francisco Community: ISFFA PO Box 716 Pacifica, CA 94044 MARAMING SALAMAT PO!

JOB RESOURCES FAIR On Tuesday, September 18, 2012, from 11am3:30pm at Hayward City Hall, 777 B Street, Hayward, The Seventh Step Foundation, Inc., along with other Alameda County nonprofit organizations are hosting a Job Resources Fair for single mothers, people with disabilities, at-risk youth, English-language learners, as well as veteran's and ex-convicts looking to return to the workforce. Attendees will be able to receive on site services including resume updating, financial literacy, web-based application training, and education on the various resources available to job seekers. Organizers welcome and encourage all local businesses that are hiring to attend. The event is co-sponsored by the Alameda County Commission on the Status of Women, Eden Youth Center, the Community Resources for Independent Living, Abode Services, Community Partners, the Regional Occupational Program among others. The location is at Hayward City Hall, 777 B Street, Hayward. For more information, contact Dr. Jennifer Ong at drjenniferong@gmail.com or (510)521-0551.

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A Journey...Continued from page 37 tion prosper. The lack of resources and funds is the natural killer of individuals and organizations and as the support and funds dwindle, the intensity of interest flutters. Unless thereâ&#x20AC;&#x2122;s a big uncle and aunt to continue to contribute to the effort, there will always be a need for resources and funds - begging is a closer description. The continuing effort to solicit donors and supporters shall create such a load of various source of funds and information. As a new organization, ISFFA commits to seek long-term partnership with supporters and members to be able to support and fund its programs and projects and most importantly, its people. Understand principles

basic

financial

According to SOLAR (Sun Lifeâ&#x20AC;&#x2122;s Study of Lifestyle, Attitudes and Rela-

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tionships â&#x20AC;&#x201C; a research sponsored by Sun Life Financial-Philippines), 86% of Filipinos are concerned with inflation but 67% think savings and time deposits are the best way to beat inflation. 76% are concerned about paying for health treatment yet only 35% rely on health insurance. Out of 100 Filipinos who are at age 65, 45 are dependent on relatives, 30 are dependent on charity 23 are still working and only 2 are financially independent. The ability to understand basic financial principles and manage finances is a fundamental skill that should be taught early but it is never early or too late for anyone to understand and apply them. ISFFA commits to focus on economics, accounting and financial management curricula and literacy in the organization. Conclusion: The integration of inclusion, empowerment through major participation

in the industry and consideration of basic financial principles that are relevant to the needs of the members and the community in the policy and practice of ISFFA can contribute to the empowerment of the members and the industry. This is where the journey begins and the journey starts now. *****

Tax Flash...Continued from page 38

payers, namely: Small Business Health Care Tax Credit, Proposed Medical Device Excise Tax, CO-OP program for Qualified Nonprofit Health Insurance Issuers, Additional Requirements for TaxExempt Hospitals, Annual Fee on Branded Prescription Pharmaceutical Manufacturers and Importers, Modification of Section 833 Treatment of Certain Health Organizations, Medical Loss Ratio, Limitation on Deduction for Compensation Paid by Certain Health Insurance Providers, Employer Shared Responsibility Payment. For additional information, tips, fact sheets, questions and answers, see Affordable Care Act Tax Provisions page at www.irs.gov *****

Special Thanks to the following: CONTRIBUTORS Casper Calisin Janet Tan Bennie Lou Quevedo-Burris New Your Life Insurance Company Carmelita O’neal VuQo VOLUNTEERS Joel Ryan Ang Roman Macapagal Fulbert Magno Fernando Enrile Flevie Reynoso Elvirlee Villanueva Riza Barron Maria Luisa Jarcia Christina Regala Nancy Wong Ghia Policarpio Judy De Dios

Our heartfelt gratitude to our sponsors: Page 2 4 8 15 17 20 20 20 24 26

Page CALCPA Ernst & Young LLC Bank of America AICPA DeVry University Moss Adams Robert Half International ADP KPMG Xoom

27 32 38 40 40 40 41 41 42 44

WuHoover Resources Roger CPA Review Season’s Marketplace Becker Professional Education Efotobox JP Morgan Chase Asian Journal Prowave Media Pricewaterhousecoopers Philippine News

ISFFA IN THE NEWS