tag:blogger.com,1999:blog-80261071568387645102024-03-03T04:02:09.649-08:00Copy and PasteEverything that would help students by copying and pasting...Unknownnoreply@blogger.comBlogger11125tag:blogger.com,1999:blog-8026107156838764510.post-29389753099996959692011-10-01T18:51:00.001-07:002011-10-01T18:51:47.416-07:00RULES AND REGULATIONS IMPLEMENTING REPUBLIC ACT NO. 9298 OTHERWISE KNOWN AS THE PHILIPPINE ACCOUNTANCY ACT OF 2004 AND FOR OTHER PURPOSES<p><b>RULES AND REGULATIONS IMPLEMENTING REPUBLIC ACT NO. 9298 <br />OTHERWISE KNOWN AS THE PHILIPPINE ACCOUNTANCY ACT OF 2004 <br />AND FOR OTHER PURPOSES</b></p> <p><b></b></p> <p><strong>RULE I - TITLE, DECLARATION OF POLICY, OBJECTIVE AND SCOPE OF PRACTICE</strong></p> <p><strong></strong></p> <p><b>SECTION 1 - Short Title </b>  This Rules and Regulations shall be known as THE RULES AND REGULATIONS IMPLEMENTING REPUBLIC ACT NO. 9298 otherwise known as the “PHILIPPINE ACCOUNTANCY ACT OF 2004”.   <a name="section2"></a></p> <p><b>SECTION 2 - Declaration of Policy</b>   The State recognizes the importance of accountants in nation building and development. Hence, it shall develop and nurture competent, virtuous, productive and well rounded professional accountants whose standards of practice and service shall be excellent, qualitative, world class and globally competitive through <table border="0" cellpadding="0"><tbody> <tr> <td valign="top" width="33"> <p>(a)</p> </td> <td width="437"> <p>Inviolable, honest, effective, and credible licensure examinations andb</p> </td> </tr> <tr> <td valign="top"> <p>(b)</p> </td> <td> <p>regulatory measures, programs and activities that foster their professional <br />growth and development.</p> </td> </tr> </tbody></table> </p> <p>This Rules and Regulations shall be interpreted, construed, and carried out in the light of <br />the above Declaration of Policy, which embodies the legislative intent in enacting the law.   <a name="section3"></a></p> <p><b>SECTION 3 - Objectives</b>   This Act shall provide for and govern: <table border="0" cellpadding="0"><tbody> <tr> <td valign="top" width="33"> <p>(a)</p> </td> <td width="437"> <p>The standardization and regulation of accounting education;</p> </td> </tr> <tr> <td valign="top"> <p>(b)</p> </td> <td> <p>The examination for registration of certified public accountants; and</p> </td> </tr> <tr> <td valign="top"> <p>(c)</p> </td> <td> <p>The supervision, control, and regulation of the practice of accountancy in the Philippines.</p> </td> </tr> </tbody></table> </p> <p><a name="section4"></a><b>SECTION 4 - Scope of Practice</b>   The practice of Accountancy shall include, but not limited, to the following: <table border="0" cellpadding="0"><tbody> <tr> <td valign="top" width="28"> <p>(a)</p> </td> <td width="531"> <p>Practice of Public Accountancy - shall constitute in a person, <table border="0" cellpadding="0"><tbody> <tr> <td valign="top" width="28"> <p>(i)</p> </td> <td width="456"> <p>be it his/her individual capacity, or as a partner or as a staff member in an accounting or auditing firm;</p> </td> </tr> <tr> <td valign="top"> <p>(ii)</p> </td> <td width="456"> <p>holding out himself/herself as one skilled in the knowledge, science <br />and practice of accounting, and as a qualified person to render <br />professional services as a certified public accountant, or offering or <br />rendering, or both, to more than one client on a fee basis or otherwise, services such as: <table border="0" cellpadding="0"><tbody> <tr> <td valign="top" width="10"> <p><b>::</b></p> </td> <td width="378"> <p>the audit or verification of financial transactions and accounting records; or</p> </td> </tr> <tr> <td valign="top" width="10"> <p><b>::</b></p> </td> <td width="378"> <p>the preparation, signing, or certification for clients of reports of audit, balance sheet, and other financial, accounting and related schedules, exhibits, statements or reports which are to be used by stockholders or for publication or for credit purposes, or to be filed with a court or government agency, or to be used for any other purpose; or</p> </td> </tr> <tr> <td valign="top" width="10"> <p><b>::</b></p> </td> <td width="378"> <p>the design, installation, review and revision of accounting systems and controls ; or the preparation and/or review of income tax returns when related to accounting and auditing procedures; or</p> </td> </tr> <tr> <td valign="top" width="10"> <p><b>::</b></p> </td> <td width="378"> <p>when he/she represents his/her clients before government agencies <br />on tax and other matters related to accounting; or</p> </td> </tr> <tr> <td valign="top" width="10"> <p><b>::</b></p> </td> <td width="378"> <p>renders professional assistance in matters relating to accounting procedures and the recording and presentation of financial facts or data </p> </td> </tr> </tbody></table> </p> </td> </tr> </tbody></table> </p> </td> </tr> <tr> <td valign="top"> <p>(b)</p> </td> <td width="531"> <p>Practice in Commerce and Industry - shall constitute in a person, <table border="0" cellpadding="0"><tbody> <tr> <td valign="top" width="28"> <p>(i)</p> </td> <td width="463"> <p>involved in decision making requiring professional knowledge in the <br />science of accounting, as well as the accounting aspects of finance and taxation, or</p> </td> </tr> <tr> <td valign="top"> <p>(ii)</p> </td> <td width="463"> <p>when he/she represents his/her employer before government agencies on tax and other matters related to accounting; or</p> </td> </tr> <tr> <td valign="top" width="28"> <p>(iii)</p> </td> <td width="463"> <p>when such employment or position requires that the holder thereof must be a certified public accountant. <br />In this connection, any position in any business or company in the private sector which requires supervising the recording of financial transactions, preparation of financial statements, coordinating with the external auditors for the audit of such financial statements and other related functions shall be occupied only by a duly registered CPA. Provided, That the business or company where the above position exists has a paid -up capital of at least Five Million Pesos (P5,000,000.00) and/or an annual revenue of at least Ten Million Pesos (P10,000,000.00). Provided Further, That this provision shall apply only to persons to be employed after the effectivity of this Rules and Regulations, Provided, Finally, That this provision shall not result to deprivation of the employment of incumbents to the position.</p> </td> </tr> </tbody></table> </p> </td> </tr> <tr> <td valign="top"> <p>(c)</p> </td> <td width="531"> <p>Practice in Education/Academe - shall constitute in a person, <table border="0" cellpadding="0"><tbody> <tr> <td valign="top" width="28"> <p>(i)</p> </td> <td width="462"> <p>in an educational institution which involve teaching of accounting, <br />auditing, management advisory services, accounting aspect of finance, business law, taxation, and other technically related subjects. <br />Provided, That members of the Integrated Bar of the Philippines may be allowed to teach business law and taxation subjects; Provided, Further, That the position of either the dean or the department chairman or its equivalent that supervises the Bachelors of Science in Accountancy program of an educational institution is deemed to be in practice of accountancy in the academe / education and therefore must be occupied only by a duly registered CPA. subsequent amendments;</p> </td> </tr> <tr> <td valign="top"> <p>(ii)</p> </td> <td width="462"> <p>when he/she represents his/her employer before government agencies on tax and other matters related to accounting; or</p> </td> </tr> <tr> <td valign="top" width="28"> <p>(iii)</p> </td> <td width="462"> <p>when such employment or position requires that the holder thereof must be a certified public accountant. <br />In this connection, any position in any business or company in the private sector which requires supervising the recording of financial transactions, preparation of financial statements, coordinating with the external auditors for the audit of such financial statements and other related functions shall be occupied only by a duly registered CPA. Provided, That the business or company where the above position exists has a paid -up capital of at least Five Million Pesos (P5,000,000.00) and/or an annual revenue of at least Ten Million Pesos (P10,000,000.00). Provided Further, That this provision shall apply only to persons to be employed after the effectivity of this Rules and Regulations, Provided, Finally, That this provision shall not result to deprivation of the employment of incumbents to the position.</p> </td> </tr> </tbody></table> </p> </td> </tr> <tr> <td valign="top"> </td> <td width="531"> </td> </tr> <tr> <td valign="top"> <p>(d)</p> </td> <td width="531"> <p>Practice in the Government- shall constitute in a person, <table border="0" cellpadding="0"><tbody> <tr> <td valign="top" width="28"> <p>(i)</p> </td> <td width="480"> <p>who holds, or is appointed to, a position in an accounting professional group in government or in a government-owned and/or controlled corporation, including those performing proprietary functions, where decision making requires professional knowledge in the science of accounting, or</p> </td> </tr> <tr> <td valign="top"> <p>(ii)</p> </td> <td width="480"> <p>where a civil service eligibility as a certified public accountant is a <br />prerequisite.</p> </td> </tr> </tbody></table> </p> </td> </tr> </tbody></table> </p> <p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgDf91wmEgdDiL9c-zdW6SZfYDiyBX6sKWOAHso4poHvlZt-tHOcckem90sOicWNOg8GRzGm0clBzsPL2xfzwFpJhyyr5ed0rFuFaqS9vu8IeX4ZZvwvYU_951rsePP3DLQQWRpvsMfiPG1/s1600-h/clip_image001%25255B3%25255D.gif"><img style="background-image: none; border-bottom: 0px; border-left: 0px; margin: 0px; padding-left: 0px; padding-right: 0px; display: inline; border-top: 0px; border-right: 0px; padding-top: 0px" title="clip_image001" border="0" alt="clip_image001" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhy0I4L9UISCsCy9bs_NFZPCAHdoL9vLhjdPzJU8uM1UOXaMIyac-dJKvNFuFuDvTgi5OMUtna046Idiqvfbh51vD1NXya_0lVWvClkocUPBUywG5PY_uSrOYvSQEOVhBNL2hIURBb01XlA/?imgmax=800" width="20" height="12" /></a><a href="http://www.prboa.com/web/accirr00.htm">back to menu </a></p> <p><a name="section4a"></a><b>SECTION 4 (A) - Definition of Terms</b>   As used in these rules and regulations, the following terms shall be understood to mean as follows: <table border="0" cellpadding="0"><tbody> <tr> <td valign="top" width="24"> <p>(a)</p> </td> <td width="567"> <p>Accredited National Professional Organization of Certified Public Accountants or APO – the integrated national professional organization of Certified Public Accountants accredited by the Board and the Commission;</p> </td> </tr> <tr> <td valign="top"> <p>(b)</p> </td> <td width="567"> <p>Act or RA No. 9298 – The Philippine Accountancy Act of 2004 and its subsequent amendments;</p> </td> </tr> <tr> <td valign="top"> <p>(c)</p> </td> <td width="567"> <p>Board or BOA – the Professional Regulatory Board of Accountancy of the <br />Philippines created under Republic Act No. 9298;</p> </td> </tr> <tr> <td valign="top" width="24"> <p>(d)</p> </td> <td width="567"> <p>Certified Public Accountant or CPA – a person who holds a valid Certificate of Registration and a valid Professional Identification Card issued by the Commission upon recommendation by the Board to those who have satisfactorily complied with all the legal and procedural requirements for such issuance, including in appropriate cases, having passed the CPA licensure examination.</p> </td> </tr> <tr> <td valign="top"> <p>(e)</p> </td> <td width="567"> <p>Certificate of Accreditation – a certificate under seal, issued by the Commission upon the recommendation by the Board pursuant to this revised rules and regulation, attesting that Individual CPAs, including the staff members thereof, Firms, including the sole proprietors and the staff members thereof and Partnerships of CPAs including the partners and the staff members thereof, are duly accredited to practice public accountancy in the Philippines.</p> </td> </tr> <tr> <td valign="top"> <p>(f)</p> </td> <td width="567"> <p>Certificate of Registration – a certificate under seal bearing a registration <br />number, issued to an individual, by the Commission, upon recommendation <br />by the Board, signifying that the individual has complied with all the legal and procedural requirements for such issuance including, in appropriate cases, having successfully passed the CPA licensure examination.</p> </td> </tr> <tr> <td valign="top" width="24"> <p>(g)</p> </td> <td width="567"> <p>Code of Ethics for Professional Accountants – the code of ethics approved <br />by the Commission in December, 2003 per its PRC Resolution No. 83, Series of 2003 and its subsequent amendments which contains the norms and principles governing the practice of the accountancy profession in the highest standards of ethical conduct.</p> </td> </tr> <tr> <td valign="top"> <p>(h)</p> </td> <td width="567"> <p>Commission or PRC – the Professional Regulation Commission of the Philippines created under Republic Act No. 8981.</p> </td> </tr> <tr> <td valign="top"> <p>(i)</p> </td> <td width="567"> <p>Firm – an organization engaged in the practice of public accountancy, consisting of a sole proprietor, either alone or with one or more staff member(s).</p> </td> </tr> <tr> <td valign="top" width="24"> <p>(j)</p> </td> <td width="567"> <p>Individual CPA – a certified public accountant engaged in the practice of public accountancy under his/her name, by himself/herself only or with one or more staff member(s).</p> </td> </tr> <tr> <td valign="top"> <p>(k)</p> </td> <td width="567"> <p>Implementing Rules and Regulations or IRR – rules and regulations implementing Republic Act No. 9298 otherwise known as the Philippine Accountancy Act of 2004.</p> </td> </tr> <tr> <td valign="top"> <p>(l)</p> </td> <td width="567"> <p>Partnership – a professional partnership engaged in the practice of public <br />accountancy which is formed in accordance with Philippine laws, either as a <br />general partnership or a limited liability partnership, and whether or not it is <br />registered as such with the Securities and Exchange Commission (SEC).</p> </td> </tr> <tr> <td valign="top" width="24"> <p>(m)</p> </td> <td width="567"> <p>Philippine Institute of Certified Public Accountant or PICPA – the integrated <br />national professional organization of Certified Public Accountants accredited by the Board and the Commission per PRC Accreditation No. 15 dated October 2, 1975.</p> </td> </tr> <tr> <td valign="top"> <p>(n)</p> </td> <td width="567"> <p>Professional Identification Card – a card with validity of three (3) years, bearing the registration number, date of issuance with an expiry date, due for periodic renewal, duly signed by the Chairperson of the Commission issued by the PRC to a registered CPA upon payment of the annual registration fees for three (3) years.</p> </td> </tr> <tr> <td valign="top" width="24"> <p>(o)</p> </td> <td width="567"> <p>Quality Review –- a study, appraisal, or review by the Board or its duly authorized representatives, of the quality of audit of financial statements through a review of the quality control measures instituted by an Individual CPA, Firm or Partnership of CPAs engaged in the practice of public accountancy to ascertain his/her/its compliance with prescribed professional, ethical and technical standards of public practice.</p> </td> </tr> <tr> <td valign="top" width="24"> <p>(p)</p> </td> <td width="567"> <p>Sector – is the area of practice of accountancy namely public accountancy, <br />commerce and industry, academe/education and government.</p> </td> </tr> <tr> <td valign="top"> <p>(q)</p> </td> <td width="567"> <p>Staff member – a CPA employed by an Individual CPA, Firm or Partnership <br />engaged in the practice of public accountancy as defined in Sec. 1(a) herein, <br />below the rank of the Individual CPA, sole proprietor or partner as the case <br />maybe.</p> </td> </tr> <tr> <td valign="top"> <p>(r)</p> </td> <td width="567"> <p>Syllabi – documents showing the outline embodying topics and concepts of <br />major subjects prescribed in specific course of study to serve as the basis for test questions in the CPA licensure examinations.</p> </td> </tr> </tbody></table> </p> <p><b>RULE II - PROFESSIONAL REGULATORY BOARD OF ACCOUNTANCY</b></p> <p><a name="section5"></a><b>SECTION 5 - The Professional Regulatory Board of Accountancy and its Composition</b>   The Board shall be composed of a chairman and six (6) members to be appointed by the President of the Philippines from a list of three (3) recommendees for each position and ranked by the Commission, from a list of five (5) nominees for each position submitted by the APO. The Board shall elect a vice-chairman from among its members for a term of one (1) year. The chairman shall preside in all meetings of the Board and in the event of a vacancy in the office of the chairman, the vice-chairman shall assume such duties and responsibilities until such time as a chairman is appointed. <br />The four (4) sectors in the practice of accountancy shall as much as possible be equitably represented in the Board. The Commission in consultation with the Board shall select three (3) nominees from those recommended by the APO and submit such list to the President for consideration.   <a name="section5a"></a></p> <p><b>SECTION 5 (A) - Time of submission of nomination to the Board by the APO</b>   The APO shall submit its nominations with complete documentation to the Commission not <br />later than (60) days prior to the expiry of the term of an incumbent chairman or member. <br />There should be adequate documentation to show the qualification and primary field of <br />professional activity of the nominee to enable the Commission to determine the competence of the nominee and the sector where he/she belongs. If the APO fails to submit its own nominee(s) to the Commission with the required documentations within the period provided herein, the Commission in consultation with the Board shall submit to the President a list of three (3) nominees for each vacant position.   </p> <p><a name="section6"></a></p> <p><b>SECTION 6 - Qualifications of Members of the Professional Regulatory Board of Accountancy</b>   A member of the Board shall, at the time of his/her appointment, possess the following qualifications: <table border="0" cellpadding="0"><tbody> <tr> <td valign="top" width="20"> <p>(a)</p> </td> <td width="527"> <p>Must be a natural-born citizen and a resident of the Philippines;</p> </td> </tr> <tr> <td valign="top"> <p>(b)</p> </td> <td width="527"> <p>Must be a duly registered Certified Public Accountant with at least ten (10) <br />years of work experience in any scope of practice of accountancy. He/shall be <br />nominated to represent a sector from which he/she has considerable and <br />meaningful professional experience.</p> </td> </tr> <tr> <td valign="top"> <p>(c)</p> </td> <td width="527"> <p>Must be of good moral character and must not have been convicted of crimes involving moral turpitude;</p> </td> </tr> <tr> <td valign="top"> <p>(d)</p> </td> <td width="527"> <p>Must not have any pecuniary interest, directly or indirectly, in any school, college, university or institution conferring an academic degree necessary for admission to the practice of accountancy or where review classes in preparation for the licensure examination are being offered or conducted, nor shall he/she be a member of the faculty or administration thereof at the time of his/her appointment to the Board;</p> </td> </tr> <tr> <td valign="top"> <p>(e)</p> </td> <td width="527"> <p>Must not be a Director or Officer of the APO at the time of his appointment;</p> </td> </tr> </tbody></table> </p> <p>Provided, That if the Chairman or any member of the Board is still in active practice of public accountancy or connected with any office in commerce and industry or in the government, he/she must go on leave during the pendency of any case involving himself/herself, his firm, partnership, company or government office, or inhibit himself/herself completely in all the stages of the proceedings thereof.   </p> <p><a name="section7"></a><b>SECTION 7 - Term of Office</b>   The Chairman and members of the Board shall hold office for a term of three (3) years. Any vacancy occurring within the term of a member shall be filled up for the unexpired portion of the term only. No person who has served two successive complete terms as chairman or member shall be eligible for reappointment as chairman or member until the lapse of one year. Appointment to fill up an unexpired term is not to be considered as a complete term. Provided, That no person shall serve in the Board for more than twelve (12) years.   </p> <p><a name="section8"></a></p> <p><b>SECTION 8 - Compensation and Allowances of the Board</b>   The chairman and members of the Board shall receive compensation and allowances comparable to that being received by the Chairman and members of existing regulatory boards under the Commission as provided for in the General Appropriations Act.   </p> <p><a name="section9"></a></p> <p><b>SECTION 9 - Powers and Functions of the Board</b>   The Board shall act as a collegial body and shall exercise the following specific powers, functions and responsibilities: <table border="0" cellpadding="0"><tbody> <tr> <td valign="top" width="24"> <p>(a)</p> </td> <td width="556"> <p>To prescribe and adopt the rules and regulations necessary for carrying out the provisions of this Act;</p> </td> </tr> <tr> <td valign="top"> <p>(b)</p> </td> <td width="556"> <p>To supervise the registration, licensure and practice of accountancy in the <br />Philippines;</p> </td> </tr> <tr> <td valign="top"> <p>(c)</p> </td> <td width="556"> <p>To administer oaths in connection with the administration of this Act;</p> </td> </tr> <tr> <td valign="top" width="24"> <p>(d)</p> </td> <td width="556"> <p>To issue, suspend, revoke, or reinstate the Certificate of Registration for the <br />practice of the accountancy profession;</p> </td> </tr> <tr> <td valign="top"> <p>(e)</p> </td> <td width="556"> <p>To adopt an official seal of the Board;</p> </td> </tr> <tr> <td valign="top"> <p>(f)</p> </td> <td width="556"> <p>To prescribe and/or adopt a Code of Ethics for the practice of accountancy;</p> </td> </tr> <tr> <td valign="top" width="24"> <p>(g)</p> </td> <td width="556"> <p>To monitor the conditions affecting the practice of accountancy and adopt <br />such measures, including promulgation of accounting and auditing standards, <br />rules and regulations and best practices as may be deemed proper for the <br />enhancement and maintenance of high professional, ethical, accounting and <br />auditing standards; Provided, That domestic accounting and auditing standards, rules and regulations shall include the international accounting and auditing standards, and generally accepted best practices;</p> </td> </tr> <tr> <td valign="top"> <p>(h)</p> </td> <td width="556"> <p>To conduct an oversight into the quality of audits of financial statements <br />through a review of the quality control measures instituted by auditors in order to ensure compliance with the accounting and auditing standards and <br />practices;</p> </td> </tr> <tr> <td valign="top"> <p>(i)</p> </td> <td width="556"> <p>To investigate violations of this act and the rules and regulations promulgated <br />hereunder and for this purpose, to issue summons, subpoena and subpoena ad testificandum and subpoena duces tecum to violators or witness thereof and compel their attendance to such investigation or hearings and the production of documents in connection therewith: Provided, That the Board upon approval of the Commission may, subject to such rules and regulations that may be promulgated to implement this section, delegate the fact-finding aspect of such investigations to the accredited national professional organization of certified public accountants; Provided Further, That the Board and/or the Commission may adopt their findings of fact as it may deem fit;</p> </td> </tr> <tr> <td valign="top" width="24"> <p>(j)</p> </td> <td width="556"> <p>The Board may, motu propio in its discretion, make such investigations as it <br />deems necessary to determine whether any person has violated any provisions <br />of this law, any accounting or auditing standard or rules duly promulgated by <br />the Board as part of the rules governing the practice of accountancy;</p> </td> </tr> <tr> <td valign="top"> <p>(k)</p> </td> <td width="556"> <p>To issue a cease or desist order to any person, association, partnership or <br />corporation engaged in violation of any provision of RA No. 9298, any <br />accounting or auditing standards or rules duly promulgated by the Board as <br />part of the rules governing the practice of accountancy in the Philippines;</p> </td> </tr> <tr> <td valign="top"> <p>(l)</p> </td> <td width="556"> <p>To punish for contempt of the Board, both direct and indirect, in accordance <br />with the pertinent provisions of and penalties prescribed by the Rules of <br />Court;</p> </td> </tr> <tr> <td valign="top" width="24"> <p>(m)</p> </td> <td width="556"> <p>To prepare, adopt, issue or amend the syllabi of the subjects for examinations <br />in consultation with the academe, determine and prepare questions for the <br />licensure examination which shall strictly be within the scope of the syllabi of <br />the subjects for examinations as well as administer, correct and release the <br />results of the licensure examinations; Provided, That the Board may, upon <br />prior approval by the Commission, engage the services of expert test writers, <br />who shall propose test questions for the CPA Licensure Examinations. Provided, Further, That the Board does not delegate its power and function to determine and prepare test questions for the CPA Licensure Examinations, <br />Provided, Finally, That the Board and the Commission shall institute adequate <br />controls over the processing and safekeeping of such test questions to ensure <br />the full integrity of the CPA Licensure Examinations;</p> </td> </tr> <tr> <td valign="top"> <p>(n)</p> </td> <td width="556"> <p>To ensure, in coordination with the Commission on Higher Education (CHED) or other authorized government offices, that all higher educational instruction and offering of accountancy, including accounting review centers and/or CPE providers offering accounting seminars, comply with the policies, standards and requirements of the course prescribed by CHED or other authorized government offices or CPE Council as the case may be in the areas of curriculum, faculty, library and facilities; Provided, That for the orderly implementation of this provision, the Board and the Commission may enter into a Memorandum of Agreement with CHED;</p> </td> </tr> <tr> <td valign="top" width="24"> <p>(o)</p> </td> <td width="556"> <p>To exercise such other powers as may be provided by law as well as those <br />which may be implied from, or which are necessary or incidental to the <br />carrying out of, the express powers granted to the Board to achieve the <br />objectives and purposes of RA No. 9298.</p> </td> </tr> </tbody></table> </p> <p>The policies, resolution, rules and regulations, issued or promulgated by the Board shall be subject to review and approval of the Commission.However,the Board ’s decisions, resolutions or orders rendered in administrative cases shall be subject to review only if on appeal.   </p> <p><a name="section9a"></a></p> <p><b>SECTION 9 (A) - Accounting and Auditing Standard Setting Council</b>   The Commission upon the recommendation of the Board shall within ninety (90) days from the effectivity of this IRR, create an accounting standard setting body to be known as the Financial Reporting Standards Council (FRSC) and an auditing standard setting body to 8 be known as the Auditing and Assurance Standards Council (AASC) to assist the Board in carrying out its powers and functions provided in Rule II, Section 7 (g) hereof; <br />The FRSC shall be composed of fifteen (15) members with a Chairman, who had been or presently a senior accounting practitioner in any of the scope of accounting practice and fourteen (14) representatives from the following: <table border="0" cellpadding="0"><tbody> <tr> <td valign="top" width="28"> <p>(a)</p> </td> <td width="371"> <p>Board of Accountancy</p> </td> <td width="170"> <p>1</p> </td> </tr> <tr> <td valign="top"> <p>(b)</p> </td> <td width="371"> <p>Securities and Exchange Commission</p> </td> <td width="170"> <p>1</p> </td> </tr> <tr> <td valign="top"> <p>(c)</p> </td> <td width="371"> <p>Bangko Sentral ng Pilipinas</p> </td> <td width="170"> <p>1</p> </td> </tr> <tr> <td valign="top" width="28"> <p>(d)</p> </td> <td width="371"> <p>Bureau of Internal Revenue</p> </td> <td width="170"> <p>1</p> </td> </tr> <tr> <td valign="top"> <p>(e)</p> </td> <td width="371"> <p>A major organization composed of <br />preparers and users of financial statements</p> </td> <td width="170"> <p>1</p> </td> </tr> <tr> <td valign="top"> <p>(f)</p> </td> <td width="371"> <p>Commission on Audit</p> </td> <td width="170"> <p>1</p> </td> </tr> <tr> <td valign="top" width="28"> <p>(g)</p> </td> <td width="371"> <p>Accredited National Professional Organization of CPAs <table border="0" cellpadding="0"><tbody> <tr> <td width="148"> <p>Public Practice</p> </td> <td width="46"> <p>2</p> </td> </tr> <tr> <td> <p>Commerce and Industry</p> </td> <td> <p>2</p> </td> </tr> <tr> <td> <p>Academe/Education</p> </td> <td> <p>2</p> </td> </tr> <tr> <td> <p>Government</p> </td> <td> <p>2</p> </td> </tr> </tbody></table> </p> </td> <td width="170"> <p>8</p> </td> </tr> <tr> <td valign="top"> </td> <td width="371"> <p><b>TOTAL</b></p> </td> <td width="170"> <p><b>14</b></p> </td> </tr> </tbody></table> </p> <p>The AASC shall be composed of fifteen (15) members with a Chairman, who had <br />been or presently a senior practitioner in public accountancy and fourteen (14) <br />representatives from the following: <table border="0" cellpadding="0"><tbody> <tr> <td valign="top" width="28"> <p>(a)</p> </td> <td width="365"> <p>Board of Accountancy</p> </td> <td width="226"> <p>1</p> </td> </tr> <tr> <td valign="top"> <p>(b)</p> </td> <td width="365"> <p>Securities and Exchange Commission</p> </td> <td width="226"> <p>1</p> </td> </tr> <tr> <td valign="top"> <p>(c)</p> </td> <td width="365"> <p>Bangko Sentral ng Pilipinas</p> </td> <td width="226"> <p>1</p> </td> </tr> <tr> <td valign="top" width="28"> <p>(d)</p> </td> <td width="365"> <p>Commission on Audit</p> </td> <td width="226"> <p>1</p> </td> </tr> <tr> <td valign="top"> <p>(e)</p> </td> <td width="365"> <p>An association or organization of CPAs in <br />active public practice of accountancy</p> </td> <td width="226"> <p>1</p> </td> </tr> <tr> <td valign="top"> <p>(f)</p> </td> <td width="365"> <p>Accredited National Professional Organization of CPAs <table border="0" cellpadding="0"><tbody> <tr> <td width="145"> <p>Public Practice</p> </td> <td width="45"> <p>6</p> </td> </tr> <tr> <td> <p>Commerce and Industry</p> </td> <td> <p>1</p> </td> </tr> <tr> <td> <p>Academe/Education</p> </td> <td> <p>1</p> </td> </tr> <tr> <td> <p>Government</p> </td> <td> <p>1</p> </td> </tr> </tbody></table> </p> </td> <td width="226"> <p>9</p> </td> </tr> <tr> <td valign="top"> </td> <td width="365"> <p><b>TOTAL</b></p> </td> <td width="226"> <p><b>14</b></p> </td> </tr> </tbody></table> </p> <p>The APO shall equitably distribute the representation of the Public Practice sector in the AASC among the big, medium and small practitioners.</p> <p>The Chairman and members of the FRSC and AASC shall be appointed by the Commission upon the recommendation of the Board in coordination with the APO. The FRSC and the AASC shall make an annual review of the composition of their respective councils and may recommend to the Board and the Commission a more suitable representation thereto as they may deem fit. The Chairman and the members of the FRSC and AASC shall have a term of three (3) years renewable for another term. Provided, That any existing accounting and auditing standards setting council shall continue to function as such until the creation of the FRSC and the AASC as provided herein. Provided, Further, That any member of any existing accounting and auditing standard setting council shall not be disqualified from being appointed to the FRSC or AASC as the case maybe for the terms provided herein.   </p> <p><a name="section9b"></a></p> <p><b>SECTION 9 (B) - Education Technical Council</b>   The Commission upon the recommendation of the Board shall within sixty (60) days from the effectivity of this IRR create an Education Technical Council (ETC) to assist the Board in carrying out its powers and functions provided in Rule II, Section 7 (n) hereof and to further assist the Board in the attainment of the objective of continuously upgrading the accountancy education in the Philippines to make the Filipino CPAs globally competitive. <br />The ETC shall be composed of seven (7) members with a Chairman, who had been or presently a senior accounting practitioner in the academe/education and six (6) representatives from the following: <table border="0" cellpadding="0"><tbody> <tr> <td valign="top" width="28"> <p>(a)</p> </td> <td width="290"> <p>Board of Accountancy</p> </td> <td width="236"> <p>1</p> </td> </tr> <tr> <td valign="top"> <p>(b)</p> </td> <td width="290"> <p>Accredited National Professional Organization of CPAs <table border="0" cellpadding="0"><tbody> <tr> <td width="145"> <p>Public Practice</p> </td> <td width="45"> <p>1</p> </td> </tr> <tr> <td> <p>Commerce and Industry</p> </td> <td> <p>1</p> </td> </tr> <tr> <td> <p>Academe/Education</p> </td> <td> <p>2</p> </td> </tr> <tr> <td> <p>Government</p> </td> <td> <p>1</p> </td> </tr> </tbody></table> </p> </td> <td width="236"> <p>5</p> </td> </tr> <tr> <td valign="top"> </td> <td width="290"> <p><b>TOTAL</b></p> </td> <td width="236"> <p><b>6</b></p> </td> </tr> </tbody></table> </p> <p>The APO shall equitably distribute the representation of the Academe/Education sector among the private and public schools offering the degree of Bachelors of Science in Accountancy.</p> <p>The Chairman and members of the ETC shall be appointed by the Commission upon the recommendation of the Board in coordination with the APO. The ETC shall make an annual review of the composition of the council and may recommend to the Board and the Commission a more suitable representation thereto as it may deem fit. The Chairman and the members of the ETC shall have a term of three (3) years renewable for another term.</p> <p>The ETC shall have the following functions: <table border="0" cellpadding="0"><tbody> <tr> <td valign="top" width="24"> <p>(a)</p> </td> <td width="541"> <p>determine a minimum standard curriculum for the study of accountancy <br />to be implemented in all schools offering accountancy as an undergraduate <br />degree;</p> </td> </tr> <tr> <td valign="top"> <p>(b)</p> </td> <td width="541"> <p>establish teaching standards, including the qualifications of members of the faculty of schools and colleges of accountancy;</p> </td> </tr> <tr> <td valign="top"> <p>(c)</p> </td> <td width="541"> <p>monitor the progress of the program on the study of accountancy and <br />undertaking measures for the attainment of a high quality of accountancy <br />education in the country;</p> </td> </tr> <tr> <td valign="top"> <p>(d)</p> </td> <td width="541"> <p>evaluate periodically the performance of educational institutions offering accountancy education.</p> </td> </tr> </tbody></table> </p> <p>The ETC shall render a report of its findings and recommendations on the foregoing activities to the Board. The Board shall review such report and if found to be meritorious, it shall forward the same to the Commission which shall make proper representation with the CHED for its appropriate consideration.   </p> <p><a name="section10"></a></p> <p><b>SECTION 10 - Administrative Supervision of the Board, Custodian of its Records, Secretariat and Support Services</b>   The Board shall be under the administrative supervision of the Commission. All records of the Board, including applications for examination, examination questions , answer sheets, and other records and documents pertaining to the CPA licensure examinations, and administrative and other investigative cases conducted by the Board shall be under the custody of the Commission. The Commission shall designate the Secretary of the Board and shall provide the secretariat and other support services to implement the provisions of this RA No. 9298.   <a name="section11"></a></p> <p><b>SECTION 11 - Grounds for Suspension or Removal of Members of the Board</b>   The President of the Philippines, upon the recommendation of the Commission, after giving the concerned member an opportunity to defend himself in a proper administrative investigation to be conducted by the Commission, may suspend or remove any member on the following grounds: <table border="0" cellpadding="0"><tbody> <tr> <td valign="top" width="27"> <p>(a)</p> </td> <td width="556"> <p>Neglect of duty or incompetence;</p> </td> </tr> <tr> <td valign="top"> <p>(b)</p> </td> <td width="556"> <p>Violation or tolerance of any violation of this Act and its implementing rules <br />and regulations or the Certified Public Accountant ’s Code of Ethics and the <br />technical and professional standards of practice for certified public accountants;</p> </td> </tr> <tr> <td valign="top"> <p>(c)</p> </td> <td width="556"> <p>Final judgment of crimes involving moral turpitude; and</p> </td> </tr> <tr> <td valign="top"> <p>(d)</p> </td> <td width="556"> <p>Manipulation or rigging of the certified public accountant ’s licensure <br />examination results, disclosure of secret and confidential information in the <br />examination questions prior to the conduct of the said examination or <br />tampering of grades.</p> </td> </tr> </tbody></table> </p> <p>The Commission in the conduct of the investigation shall be guided by the provisions of Republic Act No. 8981, otherwise known as the PRC Modernization Act of 2000, its implementing rules and regulations and their respective amendments.   </p> <p><a name="section12"></a></p> <p><b>SECTION 12 - Annual Report</b>   The Board shall, at the close of each calendar year, submit an annual report to the President of the Philippines through the Commission giving a detailed account of its proceedings and accomplishments during the year and making recommendations for the adoption of measures that will upgrade and improve the conditions affecting the practice of accountancy in the Philippines.</p> <p><b>RULE III - EXAMINATION, REGISTRATION AND LICENSURE</b></p> <p><b></b></p> <p><a name="section13"></a><b>SECTION 13 - The Certified Public Accountant Examinations</b>   All applicants for registration for the practice of accountancy shall be required to undergo a licensure examination to be given by the Board in such places and dates as the Commission may designate subject to compliance with the requirements prescribed by the Commission in <br />accordance with Republic Act No. 8981. The places/venues and dates of examinations <br />shall be included in the Schedule of Professional Licensure Examinations for the year issued by the Commission.   </p> <p><a name="section14"></a><b>SECTION 14 - Qualifications of Applicants for Examinations</b>   Any person applying for examination shall establish the following requisites to the satisfaction of the Board that he/she: <table border="0" cellpadding="0"><tbody> <tr> <td valign="top" width="21"> <p>(a)</p> </td> <td width="562"> <p>is a Filipino citizen;</p> </td> </tr> <tr> <td valign="top"> <p>(b)</p> </td> <td width="562"> <p>is of good moral character;</p> </td> </tr> <tr> <td valign="top"> <p>(c)</p> </td> <td width="562"> <p>is a holder of the degree of Bachelor of Science in Accountancy conferred by a school, college, academy or institute duly recognized and/or accredited by the CHED or other authorized government offices;</p> </td> </tr> <tr> <td valign="top"> <p>(d)</p> </td> <td width="562"> <p>has not been convicted of any criminal offense involving moral turpitude. <br />misrepresentation made in applying for registration or examination and shall</p> </td> </tr> </tbody></table> </p> <p>The following documents shall be submitted in support of the above requirements: <table border="0" cellpadding="0"><tbody> <tr> <td valign="top" width="28"> <p>(a)</p> </td> <td width="567"> <p>Certificate of Live Birth in National Statistics Office (NSO) Security Paper;</p> </td> </tr> <tr> <td valign="top"> <p>(b)</p> </td> <td width="567"> <p>Marriage Contract in NSO Security Paper for married female applicants;</p> </td> </tr> <tr> <td valign="top"> <p>(c)</p> </td> <td width="567"> <p>College diploma with indication therein of date of graduation and Special <br />Order Number unless it is not required;</p> </td> </tr> <tr> <td valign="top"> <p>(d)</p> </td> <td width="567"> <p>Baccalaureate Transcript of Records with indication therein of date of <br />graduation and Special Order Number unless it is not required;</p> </td> </tr> <tr> <td valign="top"> <p>(e)</p> </td> <td width="567"> <p>National Bureau of Investigation (NBI) Clearance;</p> </td> </tr> <tr> <td valign="top"> <p>(f)</p> </td> <td width="567"> <p>Other documents that the Board may require.</p> </td> </tr> <tr> <td> </td> <td width="567"> </td> </tr> </tbody></table> </p> <p>The Board shall not renew a Professional Identification Card, or shall suspend, or revoke, any Certificate of Registration obtained by false swearing or by any misrepresentation made in applying for registration or examination and shall not renew nor grant registration to any applicant whose application contains such false evidence or information. <table border="0" cellpadding="0"><tbody> <tr> <td> </td> </tr> </tbody></table> </p> <p><a name="section15"></a><b>SECTION 15 - Scope of Examination</b>   The licensure examination for certified public accountants shall cover, but are not limited to, the following subjects: <table border="0" cellpadding="0"><tbody> <tr> <td valign="top" width="28"> <p>(a)</p> </td> <td width="432"> <p>Theory of Accounts</p> </td> </tr> <tr> <td valign="top"> <p>(b)</p> </td> <td> <p>Business Law and Taxation</p> </td> </tr> <tr> <td valign="top"> <p>(c)</p> </td> <td> <p>Management Services</p> </td> </tr> <tr> <td valign="top"> <p>(d)</p> </td> <td> <p>Auditing Theory</p> </td> </tr> <tr> <td valign="top"> <p>(e)</p> </td> <td> <p>Auditing Problems</p> </td> </tr> <tr> <td valign="top"> <p>(f)</p> </td> <td> <p>Practical Accounting Problems I</p> </td> </tr> <tr> <td valign="top"> <p>(g)</p> </td> <td> <p>Practical Accounting Problems II</p> </td> </tr> </tbody></table> </p> <p>The Board, subject to the approval of the Commission, may revise or exclude any of the subjects and their syllabi, and add new ones as the need arises. Provided, That the change shall not be more often than every three (3) years.   </p> <p><a name="section16"></a></p> <p><b>SECTION 16 - Rating in the Licensure Examination</b>   To be qualified as having passed the licensure examination for accountants, a candidate must obtain a general average of seventy- five percent (75%), with no grades lower than sixty- five percent (65%) in any given subject. In the event a candidate obtains the rating of seventy- five percent (75%) and above in at least a majority of subjects as provided for in this Act, he/she shall receive a conditional credit for the subjects passed; Provided, That a candidate shall take an examination in the remaining subjects within two years from the preceding examination; Provided, further, That if the candidate fails to obtain at least a general average of seventy-five percent (75%) and a rating of at least sixty-five percent (65%) in each of the subjects reexamined, he/she shall be considered as failed in the entire examination. Provided, That the Board may adopt its own internal procedures on the implementation of this provision.   </p> <p><a name="section17"></a></p> <p><b>SECTION 17 - Report of Ratings</b>   The Board shall submit to the Commission the ratings obtained by each candidate within ten (10) calendar days after the examination, unless extended for just cause. Upon the release of the results of the examination, the Commission shall send by mailing the rating received by each examinee at his/her given address using the mailing envelope submitted during the examination. Provided, That the report of rating may be distributed to the successful examinees during their mass oath taking as new registered CPAs.   </p> <p><a name="section18"></a></p> <p><b>SECTION 18 - Failing Candidates to Take Refresher Course</b>   Any candidate who fails in two (2) complete Certified Public Accountant Board Examinations shall be disqualified from taking another set of examinations unless he/she submits evidence to the satisfaction of the Board that he/she enrolled in and completed at least twenty- four (24) units of subjects given in the licensure examination. Provided, That such refresher course shall be offered only by an educational institution granting a degree of Bachelor of Science in Accountancy. Provided Further, That the candidates shall have the option of taking the aforesaid subjects in the regular course offering or in a special refresher course duly accredited by the Board. <br />For purposes of this Act, the examination in which the candidate was conditioned together with the removal examination on the subject in which he/she failed shall be counted as one complete examination.   </p> <p><a name="section19"></a><b></b></p> <p><b>SECTION 19 - Oath</b>   All successful candidates in the examination shall be required to take an oath of profession before any member of the Board or before any government official authorized by the Commission or any person authorized by law to administer oaths upon presentation of proof of his/her qualification, prior to entering upon the practice of the profession. An oath shall also be required for CPAs admitted in the practice of accountancy without examination under reciprocity or other international agreements.</p> <p><a name="section20"></a></p> <p><b>SECTION 20 - Issuance of Certificates of Registration and Professional Identification </b><b><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhFNRaWLWRrPHv8nT0aAC9ToMcG0qq4ab40dZqPsWeFfzEo-LH47YA_cxGpmsjjVM_jof5oZtEPpIZ1IMZrDCcBTKV3kBIOb3MzsrTnP1i0iFB3hODcheGBmlR-8Os4Z-sgBsAT4v2ZLlJU/s1600-h/clip_image003%25255B3%25255D.gif"><img style="background-image: none; border-bottom: 0px; border-left: 0px; padding-left: 0px; padding-right: 0px; display: inline; border-top: 0px; border-right: 0px; padding-top: 0px" title="clip_image003" border="0" alt="clip_image003" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiHJj5lL0Qn-fdxcRNsC6fwLUuhWYvXueNUrNwc3WBeVEUt1vbkVC1gsMjO-sq0R7jDSX351u3zx_RCjKpz1mvVAx_QxzTWmkX4AimGQMPiZ9PdQAHR9tNTPfGyHr4B3I0PSBsMNJI8qC3F/?imgmax=800" width="85" height="5" /></a>Card</b>   A Certificate of Registration shall be issued to examinees who pass the licensure examination, or are admitted without examination under reciprocity or other international agreements subject to payment of fees prescribed by the Commission. The Certificate of Registration shall bear the signature of the Chairperson of the Commission and the Chairman and Members of the Board, stamped with the official seal of the Commission and of the Board, indicating that the person named therein is entitled to the practice of the profession with all the privileges appurtenant thereto. The said certificate shall remain in full force and effect until withdrawn, suspended or revoked in accordance with RA No. 9298. <br />A Professional Identification Card bearing the registration number, date of issuance, expiry date, duly signed by the chairperson of the Commission, shall likewise be issued to every registrant. Provided, That the registrant has paid the prescribed fee for the annual registration for three (3) years; Provided, Further, That the reissuance or renewal of the said card shall be subject to payment of the annual registration fees for another and every after three (3) years thereafter.   </p> <p><a name="section21"></a></p> <p><b>SECTION 21 - Roster of Certified Public Accountants</b>   A roster showing the names and place of business of all registered certified public accountants shall be prepared and updated by the Board, and copies thereof shall be made available to any party as may be deemed necessary. Provided, That the Board upon approval of the <br />Commission may, subject to such rules and regulations that may be promulgated to implement this section, delegate the preparation of this roster to the APO; Provided, Further, That the Board and/or the Commission may adopt the APO ’s report as it may deem fit; Provided, Finally, That posting of the roster at the internet shall be deemed compliance with this requirement.   </p> <p><a name="section22"></a></p> <p><b>SECTION 22 - Indication of Certificate of Registration Identification Card and Professional Tax Receipt</b>   The certified public accountant shall be required to indicate the numbers of his/her Certificate of Registration and Professional Identification Card with its date of issuance and the duration of validity, including the Professional Tax Receipt Number which the City/Municipal Treasurer shall issue to the registered CPA upon presentation of his/her current professional identification card, on the documents he/she signs, uses or issues in connection with the practice of his/her profession.   <b></b></p> <p><a name="section23"></a></p> <p><b>SECTION 23 - Refusal to Issue Certificate of Registration and Professional Identification Card</b>   The Board shall not register and issue a Certificate of Registration and Professional Identification Card to any successful examinee convicted by a court of competent jurisdiction of a criminal offense involving moral turpitude or guilty of immoral and dishonorable conduct or to any person of unsound mind. In the event of refusal to issue certificate for any reason, the Board shall give the applicant a written statement setting forth the reasons for such action, which statement shall be incorporated in the record of the Board: Provided, That the Board shall not register either, any person who has falsely sworn or misrepresented himself/herself in his/her application for examination: Provided, Further, That registration shall not be refused and a name shall not be removed from the roster of CPAs on conviction for a political offense or for an offense which shall not, in the opinion of the Board, either from the nature of the offense or from the circumstances of the case , disqualify a person from practicing accountancy under RA No. 9298. Provided, Finally, That the Board in the written statement shall state the period for the deferment of the registration if the offense or act committed does not call for indefinite period and/or perpetual deprivation of the chance to register.   </p> <p><a name="section24"></a><b></b></p> <p><b>SECTION 24 - Suspension and Revocation of Certificates of Registration and Professional Identification Card and Cancellation of Special Permit</b>   The Board shall have the power,upon due notice and hearing,to suspend or revoke the practitioner’s Certificate of Registration and Professional Identification Card or suspend him/her from the practice of his/her profession or cancel his/her special permit for any of the causes or grounds mentioned under Section 23 of this Act or for any unprofessional or unethical conduct, malpractice, violation of any of the provisions of RA No. 9298 , and its implementing rules and regulations,the Certified Public Accountant ‘s Code of Ethics and the technical and professional standards of practice for certified public accountants. Provided, That the Board shall periodically examine the grounds for the suspension/revocation of the Certificate of Registration and Professional Identification Card and update these as necessary. The Board shall regularly recommend to the Commission an updated list of these grounds and provide the specific penalty for each of them. Provided, Further, That the rules on administrative investigation issued by the Commission shall govern the hearing or investigation of the case, subject to applicable provisions of RA No. 8981, RA No. 9298 and the Rules of Court. Provided, Finally, That the suspension/revocation of the Certificate of Registration and Professional Identification Card of the offending CPA under this provision shall not prejudice his/her prosecution for criminal liabilities and meted the penalties provided in Section 36 Article V of RA No. 9298, or under the Revised Penal Code.   </p> <p><a name="section25"></a></p> <p><b>SECTION 25 - Refusal to Issue Certificate of Registration and Professional Identification Card</b>   The Board may, after the expiration of two (2) years from the date of revocation of a Certificate of Registration and upon application and for reasons deemed proper and sufficient, and after being convinced of applicant ’s remorse and rehabilitation, reinstate the validity of a revoked certificate of registration and in so doing, may, in its discretion, exempt the applicant from taking another examination. <br />A new Certificate of Registration to replace lost, destroyed, or mutilated certificate may be issued, subject to the rules promulgated by the Board and the Commission, upon payment of the required fees. Provided, That the Board shall issue a resolution, subject to the approval by the Commission in granting a petition for reinstatement to the practice of accountancy.</p> <p><b>RULE IV - PRACTICE OF ACCOUNTANCY</b></p> <p><a name="section26"></a></p> <p><b>SECTION 26 - Prohibition in the Practice of Accountancy</b>   No person shall practice accountancy in this country, or use the title “Certified Public Accountant ”, or display or use any title,sign,card,advertisement,or other device to indicate such person practices or offers to practice accountancy, or is a certified public accountant, unless such person shall have received from the Board a Certificate of Registration and be issued a professional identification card or a valid temporary/special permit duly issued to him/her by the Board and the Commission.   </p> <p><a name="section27"></a></p> <p><b>SECTION 27 - Vested Rights: Certified Public Accountants Registered When This Law is Passed </b>  All certified public accountants registered at the time this law takes effect shall automatically be registered under the provisions hereof, subject however, to the provisions herein set forth as to future requirements. Certificates of Registration held by such persons in good standing shall have the same force and effect as though issued after the passage of this Act.   </p> <p><a name="section28"></a></p> <p><b>SECTION 28 - Limitation of the Practice of Public Accountancy</b>   Single practitioners and partners of partnership organized for the practice of public accountancy shall be registered certified public accountants in the Philippines; Provided, That from the effectivity of RA No. 9298, a Certificate of Accreditation shall be issued to certified <br />public accountants in public practice only upon showing, in accordance with rules and regulations promulgated by the Board and approved by the Commission, that such registrant has acquired a minimum of three (3) years meaningful experience in any of the areas of public practice including taxation; Provided, Further, That this requirement shall not apply to those already granted a certificate of accreditation prior to the effectivity of RA No. 9298. Provided, Finally, That partnership engaged in the practice of public accountancy may be carried on in the form of a general partnership (GP) or a limited liability partnership (LLP) organized in accordance with Philippines laws. The Securities and Exchange Commission shall not register any corporation organized for the practice of public accountancy.   </p> <p><a name="section28a"></a></p> <p><b>SECTION 28 (A) - Meaningful Experience</b>   A meaningful experience shall be considered as satisfactory compliance with the requirements of Section 28 of RA No. 9298 if it is earned in <table border="0" cellpadding="0"><tbody> <tr> <td valign="top" width="21"> <p>(a)</p> </td> <td width="580"> <p>commerce and industry and shall include significant involvement in general <br />accounting, budgeting, tax administration, internal auditing, liaison with <br />external auditors, representing his/her employer before government agencies <br />on tax and matters related to accounting or any other related functions; or</p> </td> </tr> <tr> <td valign="top"> <p>(b)</p> </td> <td width="580"> <p>academe/education and shall include teaching for at least three (3) trimesters <br />or two (2) semesters subjects in either financial accounting, business law and <br />tax, auditing problems, auditing theory, financial management and management services. Provided, That the accumulated teaching experience on these subjects shall not be less than three (3) school years; or</p> </td> </tr> <tr> <td valign="top"> <p>(c)</p> </td> <td width="580"> <p>government and shall include significant involvement in general accounting, <br />budgeting, tax administration, internal auditing, liaison with the Commission <br />on Audit or any other related functions; and</p> </td> </tr> <tr> <td valign="top"> <p>(d)</p> </td> <td width="580"> <p>public practice and shall include at least one year as audit assistant and at least two years as auditor in charge of audit engagement covering full audit functions of significant clients.</p> </td> </tr> </tbody></table> </p> <p><a name="section29"></a><b>SECTION 29 - Ownership of Working Papers</b>   All working papers, schedules and memoranda made by a certified public accountant and his staff in the course of an examination, including those prepared and submitted by the client, incident to or in the course of an examination, by such certified public accountant, except reports submitted by a certified public accountant to a client shall be treated confidential and privileged and remain the property of such certified public accountant in the absence of a written agreement between the certified public accountant and the client, to the contrary, unless such documents are required to be produced through subpoena issued by any court, <br />tribunal, or government regulatory or administrative body in accordance with Philippine <br />laws.   </p> <p><a name="section30"></a></p> <p><b>SECTION 30 - Accredited Professional Organization</b>   All registered certified public accountants whose names appear in the roster of certified public accountants shall be united and integrated through their membership in a one and only registered and accredited national professional organization of registered and licensed certified public accountants, which shall be registered with the Securities and Exchange Commission as a non- profit corporation and recognized by the Board, subject to the approval by the Commission. The members in the said integrated and accredited national professional organization shall receive benefits and privileges appurtenant thereto upon payment of required fees and dues. Membership in the integrated organization shall not be a bar to membership in any other association of certified public accountants. <br />The rules and regulations covering the accreditation of an Accredited National Professional Organization of CPAs, renewal of Certificate of Accreditation and its Suspension/Cancellation are stated in the attached sheets as Annex ‘A ” and made an integral part hereof.   </p> <p><a name="section31"></a></p> <p><b>SECTION 31 - Accreditation to Practice Public Accountancy</b>   Individual certified public accountants, firms and partnerships of certified public accountants engaged in the practice of public accountancy, including the partners and staff members thereof, shall register with the Commission and the Board, such registration to be renewed every three years, Provided, That subject to the approval of the Commission, the Board shall promulgate rules and regulations for the implementation of the registration requirements including the fees and penalties for violation thereof. <br />The rules and regulations covering the accreditation of individual CPAs, firms and partnerships for the practice of public accountancy, renewal of Certificate of Accreditation and its Suspension/Cancellation are stated in the attached sheets as Annex “B” and made an integral part hereof.   </p> <p><a name="section32"></a></p> <p><b>SECTION 32 - Continuing Professional Education (CPE) Program</b>   All certified public accountants who are considered in the practice of accountancy for the four (4) sectors as defined in Rule I, Section 4 hereof shall abide by the requirements, rules and regulations on continuing professional education to be promulgated by the Board, subject to the approval of the Commission, in coordination with the accredited national professional organization of certified public accountants and shall be offered by any duly accredited organization or educational institution. For this purpose, a CPE Council is hereby created to implement the CPE program. circle within and in the upper portion smaller circle shall be engraved the letters “CPA ”.the foreign applicant to practice <br />The rules and regulations covering the accreditation of CPE provider and the programs thereof, renewal of Certificate of Accreditation and its Suspension/Cancellation are stated in the attached sheets as Annex “C ” and made an integral part hereof.   </p> <p><a name="section33"></a></p> <p><b>SECTION 33 - Seal and Use of Seal</b>   All registered certified public accountants shall obtain and use a seal of a design prescribed by the Board bearing the registrant ’s name,registration number and title.The auditor ’s reports shall be stamped with said seal, indicating therein his/her current Professional Tax Receipt (PTR) number, date/place of payment when filed with government authorities or when used <br />professionally.   <a name="section34"></a></p> <p><b>SECTION 34 - Foreign Reciprocity</b>   Subjects or citizens of foreign countries may be allowed to practice Accountancy in the Philippines in accordance with the provisions of existing laws, international treaty obligations including mutual recognition agreements entered into by the Philippine government with other countries. A person who is not a citizen of the Philippines shall not be allowed to practice accountancy in the Philippines unless he/she can prove, in the manner provided by the rules of court that, by specific provision of law, the country of which he/she is a citizen, subject or national admits citizens of the Philippines to the practice of the same profession without restriction. <br />Provided, That a foreign CPA or its equivalent, who desires to practice accountancy in the Philippines through this reciprocity provision shall initiate the establishment of reciprocity between his country/state and the Philippines by presenting/submitting a letter or any document signed and under official seal by the appropriate official of his country/state requesting the Chairman of the Board to allow the foreign applicant to practice accountancy in the Philippines, that by express provision of the law of his country/state, Filipino CPAs are allowed to practice accountancy in his country/state on terms of strict and absolute equality with the citizens or subjects of said country or state including the unconditional recognition of prerequisite degrees issued by institutions of higher learning duly recognized or established by the Government of the Republic of the Philippines attaching/appending thereto an authentic or authenticated official copy of said law officially translated in the English language. Provided, Further, That if the letter/document and the copy of the law submitted by the applicant is satisfactory to the Board, the foreign applicant shall be allowed to practice accountancy in the Philippines by requiring him to file an application and by submitting the following documents that shall accompany the application: <table border="0" cellpadding="0"><tbody> <tr> <td valign="top" width="21"> <p>(a)</p> </td> <td width="604"> <p>The original or certified copy of any official documents issued by the Bureau of Immigration and Deportation allowing the applicant to enter and reside in the Philippines; persons:</p> </td> </tr> <tr> <td valign="top"> <p>(b)</p> </td> <td width="604"> <p>Present his passport for examination and for photocopying of pertinent <br />information about himself/herself;</p> </td> </tr> <tr> <td valign="top"> <p>(c)</p> </td> <td width="604"> <p>Original or authenticated copy of transcript of records or equivalent document of the course for licensure examination issued by the institution of higher learning where he/she studied, duly authorized or accredited by his/her country/state;</p> </td> </tr> <tr> <td valign="top"> <p>(d)</p> </td> <td width="604"> <p>Certificate of Registration or its equivalent stating that the foreign applicant <br />is duly registered or licensed CPA or its equivalent in his/her country/state;</p> </td> </tr> <tr> <td valign="top"> <p>(e)</p> </td> <td width="604"> <p>Other documents which may be required to be submitted by the Board;</p> </td> </tr> </tbody></table> </p> <p>Provided Finally, That if the foreign applicant desires to practice public accountancy in the Philippines he/she has to apply for accreditation to do so under the rules and regulations provided in Annex “B ” and made an integral part hereof.   </p> <p><a name="section35"></a></p> <p><b>SECTION 35 - Coverage of Temporary/Special Permits</b>   Special/temporary permit may be issued by the Board subject to the approval of the Commission and payment of the fees the latter has prescribed and charged thereof to the following persons: <table border="0" cellpadding="0"><tbody> <tr> <td valign="top" width="23"> <p>(a)</p> </td> <td width="650"> <p>A foreign certified public accountant called for consultation or for a specific <br />purpose which, in the judgment of the Board, is essential for the development of the country; Provided, That his/her practice shall be limited only for the particular work that he/she is being engaged; Provided, Further, That there is no Filipino certified public accountant qualified for such consultation or specific purposes;</p> </td> </tr> <tr> <td valign="top"> <p>(b)</p> </td> <td width="650"> <p>A foreign certified public accountant engaged as professor, lecturer or critic in <br />fields essential to accountancy education in the Philippines and his/her <br />engagement is confined to teaching only; and</p> </td> </tr> <tr> <td valign="top"> <p>(c)</p> </td> <td width="650"> <p>A foreign certified public accountant who is an internationally recognized <br />expert or with specialization in any branch of accountancy and his/her service is essential for the advancement of accountancy in the Philippines.</p> </td> </tr> </tbody></table> </p> <p>The procedures/documents for the registration and/or issuance of temporary/special permits to a foreign CPA or its equivalent are as follows: <table border="0" cellpadding="0"><tbody> <tr> <td valign="top" width="23"> <p>(a)</p> </td> <td width="584"> <p>A visa and work permit issued by appropriate government agencies;</p> </td> </tr> <tr> <td valign="top"> <p>(b)</p> </td> <td width="584"> <p>Within thirty (30) calendar days after his/her commission/appointment date, <br />the commissioning party shall secure an employment permit from the <br />Department of Labor and Employment. Thereafter, the commissioning party <br />shall secure the Temporary/Special Permit from the Board subject to the <br />approval by the Commission;</p> </td> </tr> <tr> <td valign="top"> <p>(c)</p> </td> <td width="584"> <p>In the absence of any bilateral agreement, the foreign national shall submit <br />documentary proof or evidence allowing Filipino CPAs to practice the profession in their home country without any limitation; profession.</p> </td> </tr> <tr> <td valign="top"> <p>(d)</p> </td> <td width="584"> <p>Sworn statement of the details of foreign applicant area of specialization <br />which must be consistent with his/her expertise; and</p> </td> </tr> <tr> <td valign="top"> <p>(e)</p> </td> <td width="584"> <p>Upon issuance of the Temporary/Special permit, the foreign national may <br />become a member of the APO subject to the rules and procedures of its <br />membership.</p> </td> </tr> </tbody></table> </p> <p><b>RULE V - PENAL AND FINAL PROVISIONS</b></p> <p><a name="section36"></a></p> <p><b>SECTION 36 - Penal Provision</b>   Any person who shall violate any of the provisions of RA No. 9298 or this Implementing Rules and Regulations as promulgated by the Board subject to the approval of the Commission, shall, upon conviction, be punished by a fine of not less than fifty thousand pesos (P50,000.00) or by imprisonment for a period not exceeding two (2) years or both.   </p> <p><a name="section37"></a></p> <p><b>SECTION 37 - Implementing Rules and Regulations</b>   Within ninety (90) days after the effectivity of RA No. 9298, the Board, subject to the approval of the Commission and in coordination with the APO, shall adopt and promulgate such rules and regulations to carry out the provisions of RA No. 9298 and which shall be <br />effective fifteen (15) days following their publication in the Official Gazette or in any major daily newspaper of general circulation.   </p> <p><a name="section38"></a></p> <p><b>SECTION 38 - Interpretation of RA No. 9298 and its Implementing Rules and Regulations</b>   Nothing in the RA No. 9298 and this Implementing Rules and Regulations shall be construed to effect or prevent the practice of any other legally recognized profession.   </p> <p><a name="section39"></a></p> <p><b>SECTION 39 - Enforcement of RA No. 9298 and its Implementing Rules and Regulations</b>   It shall be the primary duty of the Commission and the Board to effectively enforce the provisions of RA No. 9298 and this Implementing Rules and Regulations. All duly constituted law enforcement agencies and officers of national, provincial, city or municipal government or of any political subdivision thereof, shall, upon the call or request of the Commission or the Board, render assistance in enforcing the provisions of RA No. 9298 and this Implementing Rules and Regulations and to prosecute any person violating the provisions of the same. The Secretary of Justice or his duly designated representative shall act as legal adviser to the Commission and the Board and shall render legal assistance as may be necessary in carrying out the provisions of RA No. 9298 and this Implementing Rules and Regulations. <br />Any person may bring before the Commission, Board or the aforementioned officers of the law, cases of illegal practice or violations of RA No. 9298 and this Implementing Rules and Regulations committed by any person or party. <br />The Board shall assist the Commission in filing the appropriate charges through the concerned prosecution office in accordance with law and rules of court. Provided, That for the orderly implementation of this provision, the Commission and the Board may enter into a Memorandum of Agreement with each law enforcement agency and/or the Department of Justice providing for the procedures to be followed for the call or request for assistance. Provided, Further, That in the enforcement, implementation, and administration of the provision of RA No. 9298 and its IRR, the Rules and Regulations governing the regulation and practice of Professionals and the Rules and Regulations implementing the provisions of Republic Act No. 8981 shall be applicable thereto, insofar as the latter are not inconsistent with the former.   </p> <p><a name="section40"></a></p> <p><b>SECTION 40 - Funding Provision</b>   The chairperson of the Professional Regulation Commission shall immediately include in the Commission ’s programs the implementation of RA No. 9298 and this Implementing Rules and Regulations the funding of which shall be included in the annual General Appropriations Act. Provided, That the amount necessary to carry out the initial implementation of RA No. 9298 shall be charged against the current year ’s appropriation of the Commission.Thereafter,sums <br />as maybe necessary for the continued implementation of RA No. 9298 shall be included in the succeeding General Appropriations Act (GAA).   </p> <p><a name="section41"></a></p> <p><b>SECTION 41 - Transitory Provision</b>   The incumbent chairman and members of the Board shall continue to serve in their respective positions under the terms for which they have been appointed under Presidential Decree No. 692, without the need of new appointments. Provided, That the incumbent chairman and members of the Board shall not be disqualified for appointment in the Board for the terms allowed under RA No. 9298. Provided, Further, That such Board members shall undergo the process of nomination under Executive Order No. 496 Series of 1991. <br />All graduates with a Bachelor ’s Degree,major in Accounting shall be allowed to take the CPA Licensure Examination within two (2) years from the effectivity of RA No. 9298 (or until May, 2006) under the rules and regulations to be promulgated by the Board subject to the approval by the Commission.   </p> <p><a name="section42"></a></p> <p><b>SECTION 42 - Separability Clause</b>   If any clause, provision, paragraph or part of RA No. 9298 and this Implementing Rules and Regulations shall be declared unconstitutional or invalid, such judgment shall not affect, invalidate or impair any other part hereof, but shall be merely confined to the clause, provision, paragraph or part directly involved in the controversy in which such judgment has been rendered.   </p> <p><a name="section43"></a></p> <p><b>SECTION 43 - Repealing Clause</b>   Any rule and regulation or resolution or part/s thereof inconsistent with the provisions of this Implementing Rules and Regulations are hereby repealed or modified accordingly.   </p> <p><a name="section44"></a></p> <p><b>SECTION 44 - Effectivity</b>   This Implementing Rules and Regulations shall take effect after fifteen (15) days following its full and complete publication in the Official Gazette or in any major daily newspaper of general circulation.</p> <p><b>ANNEX A <br />RULES AND REGULATIONS IMPLEMENTING SECTION 30, ARTICLE IV OF <br />REPUBLIC ACT NO. 9298 OTHERWISE KNOWN AS THE PHILIPPINE <br />ACCOUNTANCY ACT OF 2004 COVERING THE ACCREDITATION OF AN <br />ACCREDITED NATIONAL PROFESSIONAL ORGANIZATION OF CPAs, <br />RENEWAL OF CERTIFICATE OF ACCREDITATION AND ITS <br />SUSPENSION/CANCELLATION.</b></p> <p><b></b></p> <p><b>1. STATUS OF THE PHILIPPINE INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS (PICPA)</b>   The PICPA which was recognized by the Commission, as the APO on October 2, 1975 per Accreditation No. 15, shall continue to enjoy its accreditation with the same number subject to compliance with the requirements prescribed herein.   </p> <p><b>2. CONDITIONS FOR THE CONTINUITY OF THE ACCREDITATION OF PICPA</b>   In order to maintain its recognition as the APO by the Commission, it must meet the following requirements: <table border="0" cellpadding="0"><tbody> <tr> <td valign="top" width="20"> <p>(a)</p> </td> <td width="587"> <p>It is established for the benefit and welfare of the CPAs, the advancement of their profession, and the attainment of other professional ends;</p> </td> </tr> <tr> <td valign="top"> <p>(b)</p> </td> <td width="587"> <p>Its membership is open to all registered CPAs without discrimination;</p> </td> </tr> <tr> <td valign="top"> <p>(c)</p> </td> <td width="587"> <p>Its membership shall include CPAs in all sectors namely, public practice, commerce and industry, academe/education and government;</p> </td> </tr> <tr> <td valign="top"> <p>(d)</p> </td> <td width="587"> <p>It shall have a creditable plan to enlist into active membership within three (3) years, at least a majority of the CPAs in the practice of accountancy as defined in Section 4, Rule I of this IRR;</p> </td> </tr> <tr> <td valign="top"> <p>(e)</p> </td> <td width="587"> <p>It shall have adequate chapters/regions in major areas in the Philippines to effectively attend to the needs of its members. Its national directors shall be elected in accordance with the provision of the Corporation Code of the Philippines and they should be representative of the sectors in the regions, consistent with the emphasis in RA No. 9298 on sectoral practice of accountancy. There should only be one (1) director coming from a firm/company and their affiliates. A director can only represent a sector in a region if he/she has been a member in good standing in such sector in the region for at least two (2) years at the time of his/her nomination; <br />There shall only be fifteen (15) national directors, unless there is a valid reason to have additional representation. The fifteen (15) national directors shall be apportioned according to sectors in the four geographic areas (eg. National Capital Region, Luzon, Visayas and Mindanao) based on the ratio of latest available number of members in good standing from those areas; <br />The PICPA shall adopt rules and regulations to implement this distribution of its national directors including the rotation of its president by sectors in each of the regions and accordingly amend its Articles of Incorporation and By-laws not later than ninety (90) days after the effectivity of this rules and regulations;</p> </td> </tr> <tr> <td valign="top"> <p>(f)</p> </td> <td width="587"> <p>It shall be judicious and prudent in the management of its financial resources and for this purpose its chapter/region/national office and their respective foundation shall keep proper books of accounts and submit audited annual financial statements thereof. The national office shall consolidate these financial statements on annual basis for submission to the Board and the Commission in accordance with the applicable accounting procedures;</p> </td> </tr> <tr> <td valign="top"> <p>(g)</p> </td> <td width="587"> <p>It shall have a full time career Executive Director who shall implement the policies promulgated by the PICPA Board of Directors and shall have direct supervision over the PICPA Secretariat;</p> </td> </tr> <tr> <td valign="top"> <p>(h)</p> </td> <td width="587"> <p>It is duly registered as a non-stock corporation or association by the Securities and Exchange Commission (SEC). It shall coordinate with the Board and the Commission any amendment to its articles of incorporation and by- laws or any execution of a new articles of incorporation and by- laws before filing them for registration at the SEC; and</p> </td> </tr> <tr> <td valign="top"> <p>(i)</p> </td> <td width="587"> <p>It has paid the prescribed accreditation fee.</p> </td> </tr> </tbody></table> </p> <p>In support of the above requirements, PICPA shall submit the following documents within ninety (90) days from the approval of this rules and regulations: <table border="0" cellpadding="0"><tbody> <tr> <td valign="top" width="22"> <p>(a)</p> </td> <td width="591"> <p>A notarized petition signed by the PICPA President stating, among others, that the organization was established for the benefit and for the advancement of the profession;</p> </td> </tr> <tr> <td valign="top"> <p>(b)</p> </td> <td width="591"> <p>List of its national directors and officers and a suitable organization chart (with job description of each officer) showing the working relationship of each director and officer;</p> </td> </tr> <tr> <td valign="top"> <p>(c)</p> </td> <td width="591"> <p>List of chapters and their respective members indicating their respective Certificate of Registration and dates of registration and their Professional Identification Card Numbers, dates of issuance and expiry;</p> </td> </tr> <tr> <td valign="top"> <p>(d)</p> </td> <td width="591"> <p>List of regions and their respective officers and the chapters and officers within each region;</p> </td> </tr> <tr> <td valign="top"> <p>(e)</p> </td> <td width="591"> <p>Original copy of the latest certificate of registration issued by the Securities and Exchange Commission (SEC) and the certification of registration of their foundations;</p> </td> </tr> <tr> <td valign="top"> <p>(f)</p> </td> <td width="591"> <p>Certified true copy by SEC of the PICPA ’s current Articles of Incorporation and By- laws;</p> </td> </tr> <tr> <td valign="top"> <p>(g)</p> </td> <td width="591"> <p>SEC certification of current registration and compliance with SEC rules; and</p> </td> </tr> <tr> <td valign="top"> <p>(h)</p> </td> <td width="591"> <p>Latest audited consolidated financial statements of the national office and the regions and chapters and their respective foundations. If the consolidated financial statements cannot be audited for any reason, the separate audited financial statements of the national office, regions and chapters and their respective foundations shall be submitted.</p> </td> </tr> </tbody></table> </p> <p>After PICPA satisfactorily meets the requirements for the continuity of its accreditation, the Commission upon recommendation by the Board shall issue a Resolution approving its re-accreditation and directing the issuance of the Certificate of Accreditation thereto upon payment of the prescribed accreditation fee.   </p> <p><b></b></p> <p><b>3. RENEWAL OF CERTIFICATE OF ACCREDITATION</b>   The PICPA shall renew its Certificate of Accreditation once every three years (3) years after the date of the Resolution granting the petition for re-accreditation and the issuance of the said certificate upon submission of the requirements enumerated Paragraph 2 hereof, a report on significant achievements as a corporate body in attaining the objectives of the organization, in the enhancement of the welfare of its members and the stature/prestige of the profession to be signed by Board Directors/Trustee and a proof of payment of the prescribed renewal fee.   </p> <p><b>4. CANCELLATION OF ACCREDITATION</b>   The PICPA certificate of accreditation shall be cancelled or suspended by the Commission upon recommendation by the Board after due hearing under any of the following grounds/causes: <table border="0" cellpadding="0"><tbody> <tr> <td valign="top" width="27"> <p>(a)</p> </td> <td width="610"> <p>It has ceased to possess any of the qualifications for accreditation.</p> </td> </tr> <tr> <td valign="top"> <p>(b)</p> </td> <td width="610"> <p>It no longer serves the best interest of the CPAs.</p> </td> </tr> <tr> <td valign="top"> <p>(c)</p> </td> <td width="610"> <p>It did not achieve its plan provided in paragraph 2 to enlist into active membership within three (3) years, majority of the CPAs in the practice of accountancy as defined in the Section 4, Rule I hereof or even if it achieves such plan but fails to sustain it over time such that its membership no longer represents a significant portion of the aforesaid CPAs in the practice of accountancy.</p> </td> </tr> <tr> <td valign="top"> <p>(d)</p> </td> <td width="610"> <p>It has committed acts inimical to its members and to the profession.</p> </td> </tr> <tr> <td valign="top"> <p>(e)</p> </td> <td width="610"> <p>It has not renewed its certificate of accreditation after a lapse of an unreasonable period for the date of its scheduled renewal.</p> </td> </tr> <tr> <td valign="top"> <p>(f)</p> </td> <td width="610"> <p>It has not submitted the required audited financial statements provided in Paragraph 2 thereof.</p> </td> </tr> </tbody></table> </p> <p><b></b></p> <p><b>5. EFFECT OF NON- RENEWAL, CANCELLATION OR SUSPENSION OF ACCREDITATION</b>   If PICPA ’s certificate of accreditation has been cancelled or not renewed or whose accreditation has been suspended, it cannot represent the accountancy profession during the period of suspension, cancellation or non-renewal of certificate.</p> <p><b>ANNEX B <br />RULES AND REGULATIONS IMPLEMENTING SECTION 31, ARTICLE IV OF <br />REPUBLIC ACT NO. 9298 OTHERWISE KNOWN AS THE PHILIPPINE <br />ACCOUNTANCY ACT OF 2004 COVERING THE ACCREDITATION OF <br />INDIVIDUAL CPAs, FIRMS AND PARTNERSHIPS OF CPAs ENGAGED IN THE PRACTICE OF PUBLIC ACCOUNTANCY</b></p> <p><b></b></p> <p><b>1. REGISTRATION</b> <table border="0" cellpadding="0"><tbody> <tr> <td valign="top" width="19"> <p>(a)</p> </td> <td width="630"> <p>Within ninety (90) days from the effective date of this revised rules and regulations, Individual CPAs, including staff members thereof, Firms, including the sole proprietors and staff members thereof and Partnerships of CPAs including the partners and staff members thereof who/which are not yet registered under the rules and regulations prescribed by Board Resolution No. 38, Series of 1990, as amended by Board Resolution No. 69 Series of 2002 shall register with the Board and the Commission in the manner provided for in Paragraph 1 (c) hereof. On the other hand, Individual CPAs, Firms and Partnership with current and valid registration under the said rules and regulation need to submit only the additional requirements provided in this revised rules and regulations within ninety (90) days from the effective date thereof. The registration shall be valid for a period of three (3) years and may be renewed every three (3) years on or before September 30 on the year of expiry upon compliance of the requirements provided in this revised rules and regulations. The registration of applicants approved during any month of the year shall expire on December 31 on the third year following its approval (i.e. if the application of registration of ABC and Company CPAs was approved on July 31, 2002, the registration shall expire on December 31, 2004 and therefore it shall file for renewal on or before September 30, 2004 for the three year period beginning January 1, 2005 and shall apply on or before September 30, 2007 for the next three (3) year period beginning January 1, 2008 and so forth).</p> </td> </tr> <tr> <td valign="top"> <p>(b)</p> </td> <td width="630"> <p>Individual CPAs, including staff members thereof, Firms, including the sole proprietors and staff members thereof and Partnerships of CPAs including the partners and staff members thereof organized after the effective date of this revised rules and regulations shall register with the Board and the Commission in the manner provided for in Paragraph 1 (c) hereof, and shall not commence the practice of public accountancy until a valid Certificate of Registration has been issued in accordance with Paragraph 1 (g) hereof.</p> </td> </tr> <tr> <td valign="top"> <p>(c)</p> </td> <td width="630"> <p>The application for registration shall be accomplished in the form prescribed by the Board, in triplicate, and duly signed by the applicant Individual CPA, sole proprietor of the applicant Firm or authorized partner of the applicant Partnership. The application for registration shall contain such information as maybe required by the Board including, but not limited to, the following matters: <table border="0" cellpadding="0"><tbody> <tr> <td valign="top" width="28"> <p>(i)</p> </td> <td width="491"> <p>Name of the Individual CPA, Firm or Partnership. In the case of an Individual CPA, he/she shall do business under his registered name with the Board and the Commission and as printed in his/her CPA cert (i.e.“Juan de la Cruz,CPA.”) In the case of Firms, they shall do business under their respective duly registered and authorized Firm name appearing in the registration documents issued by the Department of Trade and Industry (DTI) or any other proper government office(s) and such Firm name shall include the real name of the sole proprietor as printed in his CPA certificate (i.e. “Juan de la Cruz and Associates”) or other similar Firm names. In the case of registered Partnerships, they shall do business under their respective Partnership names as indicated in their current Articles of Partnership and certificates of registration issued by the Securities and Exchange Commission (SEC) or under the Partnership names as indicated in their current Articles of Partnership in case of unregistered partnerships (e.i. "Cruz, Isidro, Martin,and Company") or other similar Partnership names. <br />A CPA shall practice only under an individual, firm or partnership name allowed in accordance with Philippine laws and shall not include any fictitious name, indicates specialization or is misleading as to the type of organization (proprietorship or partnership). A partner surviving the death or withdrawal of all the other partners in a Partnership may continue to practice under the Partnership name for a period of not more than two (2) years after becoming a sole proprietor. (This means that on or before reaching the end of the two (2) year period, the resulting sole proprietor if he/she continues to practice under a proprietorship form of organization, shall change the old Partnership name to an Individual CPA or Firm name subject tothe provision of the first paragraph hereof). <br />Name (s) individual CPA, sole proprietor or partners together with a copy of his/her/their professional identification card(s) issued by the Board and the Commission.</p> </td> </tr> <tr> <td valign="top"> <p>(ii)</p> </td> <td width="491"> <p>Certified copy of the certificate of registration issued by the SEC together with the certified copy of the current Articles of Partnership for registered partnership, or the certified copy of the Articles of Partnership for unregistered partnership or certified copy of the certificate of registration of Firm name with the DTI or other proper government agencies.</p> </td> </tr> <tr> <td valign="top"> <p>(iii)</p> </td> <td width="491"> <p>Complete business and postal address, telephone and/or facsimile numbers, e- mail address, website of principal office including branch(es), sub-offices, if any.</p> </td> </tr> <tr> <td valign="top"> <p>(iv)</p> </td> <td width="491"> <p>Certified copies of all business permits issued by the local and/or national government.</p> </td> </tr> <tr> <td valign="top"> <p>(v)</p> </td> <td width="491"> <p>Certified copy of the document showing the correspondent relationship, membership or business dealings with foreign CPA firm(s), if any, including complete business and postal address, telephone and/or facsimile numbers, e- mail address and website thereof. The documents shall be comprehensive in scope to describe the nature of the correspondent relationship, membership or business dealings and to indicate the specific terms and conditions thereof including the specific obligation and rights of the foreign CPA over the Filipino CPA and vice-versa. Under no circumstances shall the correspondent relationship, membership or business dealings with foreign CPAs be a scheme for the foreign CPAs to engage in the practice of public accountancy in the Philippines who/which under the present laws are limited to Filipino CPAs (except the authorized foreign CPAs under Sections 34 and 35 of RA No. 9298 duly registered with the Board and the Commission). The Individual CPA, sole proprietor of the Firm and managing partner of the Partnership as the case maybe shall attach to the application for registration a sworn statement stating that: <table border="0" cellpadding="0"><tbody> <tr> <td valign="top" width="18"> <p><b>::</b></p> </td> <td width="469"> <p>the copy of the aforesaid document showing the correspondent relationship, membership, or business dealings with the foreign CPA is the faithful reproduction of its original copy,</p> </td> </tr> <tr> <td valign="top"> <p><b>::</b></p> </td> <td width="469"> <p>the foreign CPA is not directly or indirectly (through the Filipino CPA) engaged in the practice of public accountancy in the Philippines, except the authorized foreign CPAs under Sections 34 and 35 of RA No. 9298 and any proof of meaningful participation in, and effectiveness of such training.</p> </td> </tr> <tr> <td valign="top" width="18"> <p><b>::</b></p> </td> <td width="469"> <p>the rights and obligations of the parties in specific terms.</p> </td> </tr> </tbody></table> </p> </td> </tr> <tr> <td valign="top"> <p>(vi)</p> </td> <td width="491"> <p>Name(s) of staff member(s) who are CPAs together with a copy of his/her/their CPA Certificate(s) and professional identification card(s) issued by the Board and the Commission.</p> </td> </tr> <tr> <td valign="top"> <p>(vii)</p> </td> <td width="491"> <p>Change(s) if any, in the organization, structure and/or management of the Individual CPA, Firm or Partnership from the last registration.</p> </td> </tr> <tr> <td valign="top"> <p>(viii)</p> </td> <td width="491"> <p>Certified copy of the Code of Good Governance of the Individual CPAs, Firms or Partnerships if there is any. If there is no such code, the individual CPA, sole proprietorship or the partnership shall adopt the Code of Good Governance of Professionals issued by the Commission.</p> </td> </tr> <tr> <td valign="top"> <p>(ix)</p> </td> <td width="491"> <p>Copy of the internal quality review procedures being implemented to ensure compliance with the professional, ethical and technical standards required of the practice of public accountancy. If the Individual CPA, Firm or Partnership had undergone quality assurance review by the Board or its duly authorized representatives, or in any manner pursuant to Paragraphs 3 (a), (b) and (c) hereof, a certified copy of the report of such review shall be attached to the application for registration.</p> </td> </tr> <tr> <td valign="top"> <p>(x)</p> </td> <td width="491"> <p>Sworn statement by the Individual CPA, sole proprietor of the Firm and managing partner of the Partnership stating that the Individual CPA and staff member(s) thereof, the sole proprietor and staff member(s) of the Firm , and all the partners and staff member (s) of the Partnership as the case maybe, (a) had a meaningful participation in their respective internal quality review process and (b) had undergone adequate and effective training (from organizations duly accredited by the Board or by its duly authorized representatives), on all the current accounting and auditing standards, code of ethics, laws and their implementing rules and regulations, circulars, memoranda, their respective code of good governance and other related documents that are required in the practice of public accountancy to ensure professional, ethical and technical standards, supported with certified copies of certificate (s) of attendance or any proof of meaningful participation in, and proof of adequacy and effectiveness of such training.</p> </td> </tr> <tr> <td valign="top"> <p>(xi)</p> </td> <td width="491"> <p>In the case of an Individual CPA and Firm or Partnership of CPAs registering for the first time, the application of registration shall be accompanied with a sworn statement by the Individual CPA, sole proprietor of the Firm and managing partner of the Partnership stating that the Individual CPA, sole proprietor of the Firm, and all the partners of the Partnership has (have) at least three (3) years of meaningful experience in any of the areas of public practice including taxation as defined in Section 4 Rule 4 of the IRR and attach to the sworn statement , a detailed description of such work experience of the individual CPA, sole proprietor of the Firm and all the partners of the Partnership.</p> </td> </tr> <tr> <td valign="top"> <p>(xii)</p> </td> <td width="491"> <p>Sworn statement by the Individual CPA, sole proprietor of the Firm and managing partner of the Partnership stating that the Individual CPA and all his/her staff member(s), sole proprietor and all the staff member(s) of the Firm , and all partners and staff member (s) of the Partnership (a) are all of good moral character and (b) he/she or they had not been found guilty by a competent court and/or administrative body of any case involving moral turpitude and /or unethical practices and that neither anyone of them is a defendant in any case of similar nature pending before any competent court and/or administrative agencies supported by a certificate of clearance issued by the proper court, administrative or law enforcement agencies for the individual CPA, sole proprietor, and the partners/principals of the partnership as the case maybe. <br />If the Individual CPA or any of his/her staff member(s), or the sole proprietor or any of the staff member(s) of the Firm, or any of the partners or staff member(s) of the Partnership is a defendant in a case of such nature, the applicant Individual CPA, Firm or Partnership shall attach to the application for registration, a sworn statement by the Individual CPA, sole proprietor of the Firm or managing partner of the Partnership stating that the aforesaid defendant(s) has a valid and material defense and specify them as such accordingly in the sworn statement for the information and consideration by the Board and the Commission.</p> </td> </tr> </tbody></table> </p> </td> </tr> <tr> <td valign="top"> <p>(d)</p> </td> <td width="630"> <p>Any change with respect to the matter enumerated in Paragraph 1 (c) (vii) should be reported in writing to the Board, copy furnished the Commission, within sixty (60) days from such change. Renewals of Certificates of Registration shall indicate the changes that have taken place since the last registration.</p> </td> </tr> <tr> <td valign="top"> <p>(e)</p> </td> <td width="630"> <p>The Board shall duly authenticate all applications for registration received in proper form, and after having passed upon such applications, shall recommend to the Commission the approval or denial thereof not later than sixty (60) days after the receipt of the aforesaid applications in proper from (i.e. with complete and proper documentary requirements).</p> </td> </tr> <tr> <td valign="top"> <p>(f)</p> </td> <td width="630"> <p>The Individual CPA, Firm or Partnership of CPAs duly registered under these revised rules and regulations shall not have as its owner, sole proprietor, partner or any staff thereof, any foreign CPA unless he/she qualifies to practice in the Philippines under Sections 34 and 35 Article IV of RA No. 9298, and/or other relevant laws and bilateral and/or multilateral agreement or treaties.</p> </td> </tr> <tr> <td valign="top"> <p>(g)</p> </td> <td width="630"> <p>The Commission shall upon favorable recommendation of the Board, issue to the applicant the corresponding Certificate of Registration to practice public accountancy. Unless sooner revoked, cancelled or withdrawn, said Certificate of Registration shall be valid for three (3) years and subject to the provisions of Paragraph 1 (a) to (g) hereof, shall be renewable every three (3) years upon payment of the fees in accordance withParagraph 5 (a) hereof.</p> </td> </tr> </tbody></table> </p> <p><b>2. VOLUNTARY WITHDRAWAL OF REGISTRATION/REINSTATEMENT</b> <table border="0" cellpadding="0"><tbody> <tr> <td valign="top" width="21"> <p>(a)</p> </td> <td width="574"> <p>The Individual CPAs, including staff members thereof, sole proprietors and staff members thereof and Partnerships of CPAs including the partners and staff members thereof, duly registered to engage in the practice of public accountancy may voluntarily withdraw their registration by filing with the Board a petition in writing stating the reason(s) therefore. The petition should be duly authenticated and signed by the Individual CPA or any of his/her staff member, the sole proprietor or any of the staff members thereof or all the partners of the Partnership, or any of them or any of the staff member(s) thereof who are requesting for the voluntary withdrawal of registration </p> </td> </tr> <tr> <td valign="top"> <p>(b)</p> </td> <td width="574"> <p>At the expense of the petitioners, the Board shall publish or cause the publication of the request for withdrawal of registration once in a newspaper of general circulation in the principal place of business of the Individual CPA, Firm or Partnership. If there is no opposition to the petition, the Board shall recommend approval thereof to the Commission. Upon approval, the petitioner’s name shall be removed from the roll of Individual CPAs,Firms and Partnerships of duly registered practitioners of public accountancy and the petitioner shall be notified in writing of the withdrawal of the registration.</p> </td> </tr> <tr> <td valign="top"> <p>(c)</p> </td> <td width="574"> <p>Upon receipt from the Board of the written notice of the withdrawal of registration, the petitioner shall cease to engage in the practice of public accountancy.</p> </td> </tr> <tr> <td valign="top"> <p>(d)</p> </td> <td width="574"> <p>The Commission shall publish the list of Individual CPAs, including staff members thereof, Firms, including the sole proprietors and staff members thereof or Partnerships of CPAs including the partners and staff members thereof, whose registration has been cancelled or withdrawn and shall furnish copies of the list to the pertinent government regulatory agencies.</p> </td> </tr> <tr> <td valign="top"> <p>(e)</p> </td> <td width="574"> <p>The Individual CPAs, including any of the staff members thereof, Firms, including the sole proprietors and any of the staff members thereof or Partnerships of CPAs including any of the partners and staff members thereof, that had voluntarily withdrawn their registration, may register anew by filing an application in accordance with Paragraph 1 (a) to (g) hereof.</p> </td> </tr> </tbody></table> </p> <p><b>3. QUALITY REVIEW</b> <table border="0" cellpadding="0"><tbody> <tr> <td valign="top" width="19"> <p>(a)</p> </td> <td width="618"> <p>The Board shall require as a condition to registration or any renewal thereof for the Individual CPAs, Firms or Partnerships of CPAs to undergo quality review in such manner as the Board may specify, provided, however, that any such requirement shall include reasonable provisions for compliance by a registrant showing that he/she/it has undergone a satisfactory quality review performed for other purposes which is substantially equivalent to quality review and shall be made applicable to all Individual CPAs, Firms or Partnerships.</p> </td> </tr> <tr> <td valign="top"> <p>(b)</p> </td> <td width="618"> <p>There is hereby created a Quality Review Committee (QRC) to conduct an oversight into the quality of audit of financial statements through a review of the quality control measures instituted by Individual CPAs, Firms or Partnerships in order to ensure compliance with accounting and auditing standards and practices, pursuant to Section 9 (h), Rule II.</p> <p>The QRC shall be composed of seven (7) members with a chairman, who had been or presently a senior practitioner in public accountancy and six (6) representatives from the following: <table border="0" cellpadding="0"><tbody> <tr> <td valign="top" width="28"> <p>(a)</p> </td> <td width="290"> <p>Board of Accountancy</p> </td> <td width="54"> <p>1</p> </td> </tr> <tr> <td valign="top"> <p>(b)</p> </td> <td width="290"> <p>Accredited National Professional Organization of CPAs <table border="0" cellpadding="0"><tbody> <tr> <td width="145"> <p>Public Practice</p> </td> <td width="45"> <p>2</p> </td> </tr> <tr> <td> <p>Commerce and Industry</p> </td> <td> <p>1</p> </td> </tr> <tr> <td> <p>Academe/Education</p> </td> <td> <p>1</p> </td> </tr> <tr> <td> <p>Government</p> </td> <td> <p>1</p> </td> </tr> </tbody></table> </p> </td> <td> <p>5</p> </td> </tr> <tr> <td valign="top"> </td> <td width="290"> <p><b>TOTAL</b></p> </td> <td> <p><b>6</b></p> </td> </tr> </tbody></table> </p> <p>The Chairman and members of the QRC shall be appointed by the Commission upon the recommendation of the Board in coordination with the APO. The QRC shall make an annual review of the composition of the council and may recommend to the Board and the Commission a more suitable representation thereto as it may deem fit. The Chairman and the members of the QRC shall have a term of three (3) years renewable for another term.</p> </td> </tr> <tr> <td valign="top"> <p>(c)</p> </td> <td width="618"> <p>The QRC shall have the following functions: <table border="0" cellpadding="0"><tbody> <tr> <td valign="top" width="28"> <p>(i)</p> </td> <td width="563"> <p>Conduct quality review on applicants for registration to practice public accountancy and render a report which shall be attached to the application for registration;</p> </td> </tr> <tr> <td valign="top"> <p>(ii)</p> </td> <td width="563"> <p>Recommend to the Board the revocation of the Certificate of Registration and the professional identification card of an Individual CPA, including any of his/her staff members , Firms, including the sole proprietors and any of his/her staff members and Partnerships of CPAs including the partners and staff members thereof who has not observed the quality control measures and who has not complied with the standards of quality prescribed for the practice of public accountancy. In the event that the QRC cannot accomplish the aforesaid functions for any reason whatsoever, the Board or its duly authorized representatives may conduct the required quality review.</p> </td> </tr> </tbody></table> </p> </td> </tr> </tbody></table> </p> <p><b>4. DEATH OR DISABILITY OF AN INDIVIDUAL CPA AND DISSOLUTION OR LIQUIDATION OF A FIRM OR PARTNERSHIP OF CPAS</b>   The death or disability of an Individual CPA and/or the dissolution and liquidation of a Firm or Partnership of CPAs shall be reported to the Board by any designated staff member of the Individual CPA, the sole practitioner (or any designated staff member of the Firm in case of the unavailability of the sole practitioner) or managing partner of the Partnership (or any designated partner in case of the unavailability of the managing partner) not later than thirty (30) days from the date of such death, dissolution or liquidation. The report shall be made in the form of an affidavit (in the case of an Individual CPA or a Firm), or by furnishing the Board with a certified copy of the dissolution or liquidation papers filed with the SEC in the case of a Partnership. Failure to notify the Board of such death, dissolution or liquidation shall subject the designated staff member of an Individual CPA, sole proprietor or designated staff member of the Firm or managing partner or designated partner of the Partnership to the penalties provided herein. </p> <p><b>5. FEES AND PENALTIES</b> <table border="0" cellpadding="0"><tbody> <tr> <td valign="top" width="19"> <p>(a)</p> </td> <td width="630"> <p>Application for initial registration, renewal and request for reinstatement, shall be subject to the fee of One Thousand Pesos (P1,000.00) or to such an amount as the Commission may prescribe.</p> </td> </tr> <tr> <td valign="top"> <p>(b)</p> </td> <td width="630"> <p>Subject to review by the Commission and depending on the gravity of the offense(s), the Board shall suspend or revoke the CPA Certificate, Certificate of Registration and professional identification card of an Individual CPA, sole proprietor, partner or staff member as the case maybe who commits any act <br />that is violative of the Code of Ethics for Professional Accountants, Philippine Accountancy Act of 2004, these revised implementing rules and regulations, the circulars, rules, regulations or resolutions of the Board, Commission, SEC or any other regulatory agency(ies) or any act that does not comply with the professional, ethical and technical standards required of the practice of public accountancy, provided, that if the act or acts committed constitute(s) a criminal offense punishable under RA No. 9298 and its IRR, and/or other existing penal laws, the party or parties responsible shall be proceeded against criminally, independent of any action herein provided.</p> </td> </tr> <tr> <td valign="top"> <p>(c)</p> </td> <td width="630"> <p>Violations of these revised implementing rules and regulations shall include, but shall not be limited to the following acts by Individual CPAs, including staff members thereof, Firms, including the sole proprietors and staff members thereof and Partnerships of CPAs including the partners and staff members thereof: <table border="0" cellpadding="0"><tbody> <tr> <td valign="top" width="28"> <p>(i)</p> </td> <td width="466"> <p>Engaging in public accounting practice without first registering with the Board and the Commission;</p> </td> </tr> <tr> <td valign="top"> <p>(ii)</p> </td> <td width="466"> <p>Continuing to engage in the practice of public accountancy after the expiration of the registration;</p> </td> </tr> <tr> <td valign="top"> <p>(iii)</p> </td> <td width="466"> <p>Continuing to engage in the practice of public accountancy after suspension, revocation, or withdrawal of the registration;</p> </td> </tr> <tr> <td valign="top"> <p>(vi)</p> </td> <td width="466"> <p>Giving any false information, data, statistics, reports or other statement which tend to mislead, obstruct, or obscure the registration of a Individual CPA, Firm or Partnership of CPAs under these revised rules and regulations;</p> </td> </tr> <tr> <td valign="top"> <p>(v)</p> </td> <td width="466"> <p>Giving any misrepresentation to the effect that registration was secured when in truth and in fact , it was not secured;</p> </td> </tr> <tr> <td valign="top"> <p>(vi)</p> </td> <td width="466"> <p>Failure or refusal to undergo quality review specified in Paragraphs 3 (a), (b) and (c) hereof; and</p> </td> </tr> <tr> <td valign="top"> <p>(vii)</p> </td> <td width="466"> <p>Failure to comply with the requirements provided under Paragraph 1 (c), hereof.</p> </td> </tr> </tbody></table> </p> </td> </tr> <tr> <td valign="top"> <p>(d)</p> </td> <td width="630"> <p>The Commission shall publish the list of Individual CPAs, including staff members thereof, Firms, including the sole proprietors and staff members thereof or Partnerships of CPAs including the partners and staff members thereof, whose registration has been cancelled or withdrawn and shall furnish copies of the list to the pertinent government regulatory agencies.</p> </td> </tr> <tr> <td valign="top"> <p>(e)</p> </td> <td width="630"> <p>The Individual CPAs, including any of the staff members thereof, Firms, including the sole proprietors and any of the staff members thereof or Partnerships of CPAs including any of the partners and staff members thereof, that had voluntarily withdrawn their registration, may register anew by filing an application in accordance with Paragraph 1 (a) to (g) hereof.</p> </td> </tr> </tbody></table> </p> <p><b>6. REMISSION OF FINES OR LIFTING OF SANCTIONS IMPOSED</b>   Subject to the approval of the Commission, the Board may, for justifiable reasons, lift the sanctions imposed on Individual CPAs, and/or any staff member thereof, Firms including their sole proprietors and/or any staff members thereof or Partnerships including their partners and/or any staff members thereof; and</p> Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-8026107156838764510.post-40629377184211204782011-10-01T18:45:00.001-07:002011-10-01T18:45:35.843-07:00Republic Act No. 9298 (RA 9298)<p>Republic of the Philippines <br />Congress of the Philippines <br />Metro Manila</p> <p>Twelfth Congress <br />Third Regular Session</p> <p>Begun and held in Metro Manila, on Monday, the twenty-eight day of July, two thousand three.</p> <p><b>Republic Act No. 9298             May 13, 2004</b></p> <p><b></b></p> <p><b>AN ACT REGULATING THE PRACTICE OF ACCOUNTANCY IN THE PHILIPPINES, REPEALING FOR THE PURPOSE PRESIDENTIAL DECREE NO. 692, OTHERWISE KNOWN AS THE REVISED ACCOUNTANCY LAW, APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES</b></p> <p><i></i></p> <p><i>Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:</i></p> <p><i></i></p> <p><b>Section 1.</b> <b><i>Shorts Title</i>.</b> - This act shall be known as the "Philippine Accountancy Act of 2004"</p> <p><b>Section 2.</b> <b><i>Declaration of Policy</i>.</b> - The State recognizes the importance of accountants in nation building and development. Hence, it shall develop and nurture competent, virtuous, productive and well rounded professional accountants whose standard of practice and service shall be excellent, qualitative, world class and globally competitive though inviolable, honest, effective, and credible licensure examinations and though regulatory measures, programs and activities that foster their professional growth and development.</p> <p><b>Section 3.</b> <b><i>Objectives</i>.</b> - This Act shall provide and govern:</p> <p>The standardization and regulation of accounting education;</p> <p>The examination of registration of certified public accountants; and</p> <p>The supervision, control, and regulation of the practice of accountancy in the Philippines.</p> <p><b>Section 4.</b> <b><i>Scope of Practice</i>.</b> - The practice of accountancy shall include, but not limited to, the following:</p> <p>(a) Practice of Public Accountancy - shall constitute a person, be it his/her individual capacity, or as a staff member in an accounting or auditing firm, holding out himself/herself as one skilled in the knowledge, science and practice of accounting, and as a qualified person to render professional services as a certified public accountant; or offering or rendering, or both or more than one client on a fee basis or otherwise, services as such as the audit or verification of financial transaction and accounting records; or the preparation, signing, or certification for clients of reports of audit, balance sheet, and other financial, accounting and related schedules, exhibits, statement of reports which are to be used for publication or for credit purposes, or to be filed with a court or government agency, or to be used for any other purposes; or to design, installation, and revision of accounting system; or the preparation of income tax returns when related to accounting procedures; or when he/she represent clients before government agencies on tax and other matters relating to accounting or render professional assistance in matters relating to accounting procedures and the recording and presentation of financial facts or data.</p> <p>(b) Practice in Commerce and Industry - shall constitute in a person involved in decision making requiring professional knowledge in the science of accounting, or when such employment or position requires that the holder thereof must be a certified public accountant.</p> <p>(c) Practice in Education/Academe - shall constitute in a person in an educational institution which involve teaching of accounting, auditing, management advisory services, fiancé, business law, taxation and other technically related subject: Provided, That members of the Integrated Bar of the Philippines may be allowed to teach business law and taxation subjects.</p> <p>(d) Practice in Government - shall constitute in a person who holds, or is appointed to, a position in an accounting professional group in government or in an government-owned and/or controlled corporation, including those performing proprietary functions, where decision making requires professional knowledge in the science of accounting, or where a civil service eligibility as a certified public accountant is a prerequisite.</p> <p><b></b></p> <p><b>ARTICLE II</b></p> <p><b>PROFESSIONAL REGULATORY BOARD OF ACCOUNTANCY</b></p> <p><b></b></p> <p><b>Section 5.</b> <b><i>The Professional Regulatory Board of Accountancy and its Composition</i>.</b> - The Professional Regulatory Board of Accountancy, hereinafter referred to as Board, under the supervision and administrative control of the Professional Regulation Commission, hereinafter referred to as the Commission, shall be composed of a Chairman and six (6) members to be appointed by the President of the Philippines from a list of three (3) recommendees for each position and ranked by the Commission from a list of five (5) nominees for each position submitted by the accredited national professional organization of certified public accountant. The Board shall elect a vice-chairman from among each members for a term of one (1) year. The chairman shall preside in all meetings of the Boards and in the event of a vacancy in the office of the chairman, the vice-chairman shall assume such duties and responsibilities until such time as a chairman is appointed.</p> <p><b>Section 6.</b> <b><i>Qualifications of a members of the Professional Regulatory Board</i>.</b> - A member of the Board shall, at the time of his/her appointment, posses the following qualifications:</p> <p>Must be a natural-born citizen and a resident of the Philippines; </p> <p>Must be a duly registered Certified Public Accountant with at least ten (10) years of work experience in any scope of practice of accountancy; </p> <p>Must be a good moral character and must not have been convicted of crimes involving moral turpitude; and </p> <p>Must not have any pecuniary interest, directly or indirectly, in any school, college, university or institution conferring an academic degree necessary for admission to the practice of accountancy or where review classes in preparation for the licensure examination are being offered or conducted, nor shall he/she be a member of the faculty or administration thereof at a time of his/her appointment to the Board. </p> <p><b>Section 7.</b> <b><i>Term of Office</i>.</b> - The Chairman and Members of the Board shall hold office for a term of three (3) years. Any vacancy occurring within the term of a member shall be filled up for the unexpired portion of the term only. No person who has served two (2) successive complete terms shall be eligible for reappointment until the lapse of one (1) year. Appointment to fill up an expired term is not to be considered as a complete term.</p> <p><b>Section 8.</b> <b><i>Compensation and Allowances of the Board</i>.</b> - The chairman and the members of the Board shall receive compensation and allowances comparable to that being received by the chairman and members of existing regulatory boards under the Commission as provided for in the General Appropriate Act.</p> <p><b>Section 9.</b> <b><i>Powers and Functions of the Board</i>.</b> - The Board shall exercise the following specific powers, functions and responsibilities:</p> <p>To prescribed and adopt the rules and regulations necessary for carrying out the provisions of this Act; </p> <p>To supervise the registration, licensure and practice of accountancy in the Philippines; </p> <p>To administer oaths in connection with the administration of this Act; </p> <p>To issue, suspend, revoke, reinstate the Certificate of Registration for the practice of the accountancy profession; </p> <p>To adopt an official seal of the Board; </p> <p>To prescribe and/or adopt a Code of Ethics for the practice of accountancy; </p> <p>To monitor the conditions affecting the practice of accountancy and adopt such measures, including promulgation of accounting and auditing standards, rules and regulations and best practices as may be deemed proper for the enhancement and maintenance of high professional, ethical, accounting and auditing standards: That domestic accounting and auditing standards rules and regulations shall include the international accounting and auditing standards, and generally accepted best practices; </p> <p>To conduct an oversight into the quality of audits of financial statements though a review of the quality control measures instituted by auditors in order to ensure compliance with the accounting and auditing standards and practices, </p> <p>To investigate violations of this act and the rules and regulations promulgated hereunder and for the purpose, to issue summons, subpoena and subpoena ad testificandum and subpoena duces tecum to violator or witness thereof and compel their documents in connection therewith: Provided, That the Board upon approval of the Commission may, subject to such rules and regulations that may be promulgated to implement this section, delegate the fact-finding aspect of such investigations to the accredited national professional organization of certified public accountant: Provided, further, That the Board and/or the Commission may adopt their findings of fact as may be seems fit;</p> <p>The Board may, muto propio in its discretion, may such investigations as it deem necessary to determine whether any person has violated any provisions of this law, any accounting or auditing standard or rules duly promulgated by the Board as part of the rules governing the practice of accountancy; </p> <p>To issue a cease or desist order to any person, associations, partnership or corporation engaged in violation of any provision of this Act, any accounting or auditing standards or rules of duly promulgated by the Board as part of the rules governing the practice of accountancy in the Philippines; </p> <p>To punish for contempt of the Board, both direct and indirect, in accordance with the pertinent provision of and penalties prescribed by the Rules of Court; </p> <p>To prepare, adopt, issue or amend the syllabi of the subjects for examinations in consultation with the academe, determine and prepare questions for the licensure examination which shall strictly be within the scope of the syllabi of the subjects for examinations as well as administer, correct and release the result of the licensure examinations; </p> <p>To ensure the coordination with the Commission of the Higher Education (CHED) or other authorized government offices that all higher educational instruction and offering of accountancy comply with the policies, standards and requirements of the course prescribed by the CHED or other authorized government offices in the areas of curriculum, faculty, library and facilities; and </p> <p>To exercise such other powers as may be provided by law as well as those which may be implied from, or which are necessary or incidental to the carrying out of, the express powers granted to the Board to achieve the objectives and purposes of this Act. </p> <p>The policies resolution, rules and regulations issued or promulgated by the Board shall be subject to review and approval of the Commission. However, the Board's decisions, resolutions or orders rendered in the administrative cases shall be subject to review only if on appeal.</p> <p><b>Section 10.</b> <b><i>Administrative Supervisions of the Board, Custodian of its Records, Secretariat and Support Services</i>.</b> - The Board shall be under the administrative supervision of the Commission. All records of the Board, including applications for examination and administrative and other investigative cases conduced by the Board shall be under the custody of the Commission. The Commission shall designate the secretary of the Board and shall provide the secretariat and other support services to implement the provisions of this Act.</p> <p><b>Section 11.</b> <b><i>Grounds for Supervision or Removal of Members of the Board</i>.</b> - The President of the Philippines, upon the recommendation of the Commission, after the giving the concerned member an opportunity to defend himself in proper administrative investigation to be conducted by he Commission, may suspend or remove any member of the following grounds:</p> <p>Neglect of Duty or incompetence; </p> <p>Violation or tolerance of any violation of this Act and it's implementation rules and regulations or the Certified Public Accountant's Code of Ethics and the technical and professional standards of practice for certified public accountant; </p> <p>Final judgment of crimes involving moral turpitude; and </p> <p>Manipulation or rigging of the certified public accountant's licensure examination results, disclosure of secret and confidential information in the examination questions prior to the conduct of the said examination or tampering of grades. </p> <p><b>Section 12.</b> <b><i>Annual Report</i>.</b> - The Board shall, at the close of each calendar year, submit an annual report to the President of the Philippines though the Commission giving the detailed account of its proceedings and accomplishment during the year and making recommendations for the adoption of measures that will upgrade and improve the conditions affecting the practice of accountancy in the Philippines.</p> <p><b>ARTICLE III</b></p> <p><b>EXAMINATION, REGISTRATION AND LICENSURE</b></p> <p><b></b></p> <p><b>Section 13.</b> <b><i>The Certified Public Accountant Examinations</i>.</b> - All applicants for registration for the practice of accountancy shall be required to undergo a licensure examination to be given by the Board in such places and dates as the Commission may be designate subject to compliance with the requirements prescribed by the Commission in accordance with Republic Act No. 8981.</p> <p><b>Section 14.</b> <b><i>Qualifications of Applicant for Examinations</i>.</b> - Any person applying for examination shall establish the following requisites to the satisfaction of the Board that he/she:</p> <p>is a Filipino citizen; </p> <p>is of good moral character;</p> <p>is a holder of the degree of Bachelor of Science in Accountancy conferred by the school, college, academy or institute duly recognized and/or accredited by the CHED or other authorized government offices; and </p> <p>has not been convicted of any criminal offence involving moral turpitude. </p> <p><b>Section 15.</b> <b><i>Scope of Examination</i>.</b> - The licensure examination for certified public accountants shall cover, but are not limited to, the following subjects:</p> <p>Theory of Accounts </p> <p>Business Law and Taxation </p> <p>Management Services </p> <p>Auditing Theory </p> <p>Auditing Problems </p> <p>Practical Accounting Problem I </p> <p>Practical Accounting Problem II </p> <p>The Board, subject to the approval of the Commission, may revise or exclude any of the subjects and their syllabi, and add new ones as the need arises.</p> <p><b>Section 16.</b> <b><i>Rating in the Licensure Examination</i>.</b> - To be qualified as having passed the licensure examination for accountants, a candidate must obtain a general average of seventy five percent (75%), with no grade lower than sixty-five percent (65%) in any given subject. In the event a candidate obtains the rating of seventy-five percent (75%) and above in at least a majority of subjects as provided for in this Act, he/she shall receive a conditional credit for the subjects passed: Provided, That a candidate shall take an examination in the remaining subjects within two (2) years from preceding examination: Provided, further, That if the candidate fails to obtain at least a general average of seventy-five percent (75%) and a rating of at least sixty-five percent (65%) in each of the subjects reexamined, he/she shall be considered as failed in the entire examination.</p> <p><b>Section 17.</b> <b><i>Report of Rating</i>.</b> - The Board shall submit to the Commission the rating obtained by each candidate within ten (10) calendar days after the examination, unless extended for just cause. Upon the release of the results of the examination, the Commission shall send by mailing the rating received by each examinee at his/her given address using the mailing envelop submitted during the examination.</p> <p><b>Section 18.</b> <b><i>Failing Candidates to Take Refresher Course</i>.</b> - Any candidate who fails in two (2) complete Certified Public Accountant Board Examinations shall be disqualified from taking another set of examinations unless he/she submit evidence to the satisfaction of the Board that he/she enrolled in and completed at least twenty-four (24) units of subject given in the licensure examination.</p> <p>For purposes of this Act, the examination in which the candidate was conditioned together with the removal examination on the subject in which he/she failed shall be counted as one compete examination.</p> <p><b>Section 19.</b> <b><i>Oath</i>.</b> - All successful candidates in the examination shall required to take an oath of professional before any member of the Board or before any government official authorized of the Commission or any person authorized by law to administer oaths upon presentation of proof of his/her qualification, prior to entering upon the practice of the profession.</p> <p><b>Section 20.</b> <b><i>Issuance of Certificate of Registration and Professional Identification Card</i>.</b> - A certificate of registration shall be issued to examinees who pass the licensure examination subject to payment of fees prescribed by the Commission. The Certificate of Registration shall bear the signature of the chairperson of the Commission and the chairman and members of the Board, stamped with the official seal of the Commission and of the Board, indicating that the person named therein is entitled to the practice of the profession with all the privileges appurtenant thereto. The said certificate shall remain in full force and effect until withdrawn, suspended or revoked in accordance with this Act.</p> <p>A Professional Identification Card bearing the registration number date of issuance, expiry date, duly signed by the chairperson of the Commission, shall likewise be issued to every registrant renewable every three (3) years.</p> <p><b>Section 21.</b> <b><i>Roster of Certified Public Accountant</i>.</b> - A roster showing the names and place of business of all registered certified public accountants shall be prepared and updated by the Board, and copies thereof shall be made available to any party as may deemed necessary.</p> <p><b>Section 22.</b> <b><i>Indication of Certificate of Registration, Identification Card and Professional Tax Receipt</i>.</b> - The certified public Accountant shall be required to indicate his/her certificate of registration number and date of issuance, the duration of validity, including the Professional Tax Receipt number on the documents he/she signs, uses or issues in connection with the practice of his/her profession.</p> <p><b>Section 23.</b> <b><i>Refusal to Issue Certificate of Registration and Professional Identification Card</i>.</b> - The Board shall not register and issue a certificate of registration and professional identification Card to any successful examinee convicted by the court of competent jurisdiction of a criminal offence involving moral turpitude or guilty of immoral and dishonorable conduct to any person or unsound mind. In the event of refusal to issue certificate for any reason, the Board shall give the applicant a written statement setting forth the reasons for such action, which statement shall be incorporated in the record of the Board.</p> <p><b>Section 24. <i>Suspension and Revocation of Certificate of Registration and Professional Identification Card and Cancellation of Special Permit.</i></b> - The Board shall have the power, upon the notice and hearing, to suspend or revoke the practitioner's certificate of registration and professional identification card or suspend his/her from the practice of his/her profession or cancel his/her special permit for any of the causes or ground mentioned under Section 23 of this Act or any of the provisions of this Act, and its implementing rules and regulations, the certified Public Accountant's Code of Ethics and the technical and professional standards of practice for certified public accountants.</p> <p><b>Section 25.</b> <b><i>Reinstatement, Reissuance and Replacement of Revoked or Lost Certificates</i>.</b> - The Board may, after the expiration of two (2) years from the date of revocation of a certificate of registration and upon application and for reasons deemed proper and sufficient, reinstate the validity of a revoked certificate of registration and in so doing, may, in its discretion, exempt the applicant from taking another examination.</p> <p>A new certificate of registration to replace lost, destroyed, or mutilated certificate/license may be issued, subject to the rules and promulgated by the Board and the Commission, upon the payment of the required fees.</p> <p><b></b></p> <p><b>ARTICLE IV</b></p> <p><b>PRACTICE OF ACCOUNTANCY</b></p> <p><b></b></p> <p><b>Section 26.</b> <b><i>Prohibition in the Practice of Accountancy</i>.</b> - No person shall practice accountancy in this country, or use the title "Certified Public Accountant", or use the abbreviated title "CPA" or display or use any title, sign, card, advertisement or other device to indicate such person practices or offers to practice accountancy, or is a certified public accountant, unless such person shall have received from the Board a certificate of registration/Professional license and be issued a professional identification card or a valid temporary/special permit duly issued to him/her by the Board and the Commission.</p> <p><b>Section 27.</b> <b><i>Vested Rights</i>.</b> - Certified Public Accountants Registered When This Law is Passed. - All certified public accountants registered at the time this law takes effect shall automatically be registered under the provisions hereof, subject, however, to the provisions herein set forth as to future requirements. Certificate of Registration/Professional license held by such persons in good standing shall have the same license force and effect as though issued after the passage of this Act.</p> <p><b>Section 28.</b> <b><i>Limitation of the Practice of Public Accountancy</i>.</b> - Single practitioners and partnerships for the practice of public accountancy shall be registered certified public accountants in the Philippines: Provided, That from the effectivity of this Act, a certificate of accreditation shall be issued to certified public accountant in public practice only upon showing, in accordance with rules and regulations promulgated by the Board and approved by the Commission, that such registrant has acquired a minimum of three (3) years meaningful experience in any of the areas of public practice including taxation: Provide, further, that this requirement shall not apply to those already granted a certificate of accreditation prior to the effectivity of this Act. The Security and Exchange Commission shall not register any corporation organized for the practice of public accountancy.</p> <p><b>Section 29.</b> <b><i>Ownership of Working Papers</i>.</b> - All working papers, schedules and memoranda made by a certified public accountant and his staff in the course of an examination, including those prepared and submitted by the client, incident to or in the course of an examination, by such certified public accountant, except reports submitted by a certified public accountant to a client shall be treated confidential and privileged and remain the property of such certified public accountant in the absence of a written agreement between the certified public accountant and the client, to the contrary, unless such documents are required to be produced though subpoena issued by any court, tribunal, or government regulatory or administrative body.</p> <p><b>Section 30.</b> <b><i>Accredited Professional Organization</i>.</b> - All registered certified public accountants whose appear in the roster of certified public accountants shall be united and integrated though their membership in a one and only registered and accredited national professional organization of registered and licensed certified public accountants, which shall be registered with the Securities and Exchange Commission as a nonprofit corporation and recognized by the Board subject to the approval by the Commission. The members of the said integrated and accredited national professional organization shall receives benefits and privileges appurtenant thereto upon payment of required fees and dues. Membership in the integrated organization shall not be a bar to membership in any other association of certified public accountants.</p> <p><b>Section 31.</b> <b><i>Accreditation to Practice Public Accountancy</i>.</b> - Certified public accountants, firms and partnerships of certified public accountants, engaged in the practice of public accountancy, including partners and staff members thereof, shall registered with the Commission and the Board, such registration to be renewed every three (3) years: Provided, That subject to the approval of the Commission, the Board shall promulgate rules and regulations for the implementation of registration requirements including the fees and penalties for violation thereof.</p> <p><b>Section 32.</b> <b><i>Continuing Professional Education (CPE) Program</i>.</b> - All certified public accountants shall abide by the requirements, rules and regulations on continuing professional education to be promulgated by the Board, subject to the approval of the Commission, in coordination with the accredited national professional organization of certified public accountants or any duly accredited educational institutional. For this purpose, a CPE Council is hereby created to implement the CPE program.</p> <p><b>Section 33.</b> <b><i>Seal and Use of Seal</i>.</b> - All license certified public accountants shall obtain and use a seal of a design prescribed by the Board bearing the registrant's name, registration number and title. The auditors reports shall be stamped with the said seal, indicating therein his/her current Professional Tax Receipt (PTR) number, date/place of payment when filed with government authorities or when used professionally.</p> <p><b>Section 34.</b> <b><i>Foreign Reciprocity</i>.</b> - Subject or citizen of foreign countries may be allowed to practice accountancy in the Philippines in accordance with the provisions of existing laws, international treaty obligations including mutual recognition agreement entered into by the Philippines government with other countries. A person who is not a citizen of the Philippines shall not be allowed to practice accountancy in the Philippines unless he/she can prove, in the manner provided by the Rules of Court that, specific provision of law country of which he/she is a citizen, subject or national admits citizens of the Philippines to the practice of the same profession without restriction.</p> <p><b>Section 35.</b> <b><i>Coverage of Temporary/Special Permits</i>.</b> - Special/temporary permit may be issued by the Board subject to the approval of the Commission and payment of the fees the latter has prescribed and charged thereof to the following persons:</p> <p>A foreign certified public accountant called for consultation or for specific purpose which, in the judgment of the Board, is essential for the development of the country: Provided, That his/her practice shall be limited only for the particular work that he/she is being engaged: Provided, further, That there is no Filipino certified public accountant qualified for such consultation or specific purposes; </p> <p>A foreign certified public accountant engaged as professor, lecturer or critic in fields essential to accountancy education in the Philippines and his/her engagement is confined to teaching only; and </p> <p>A foreign certified public accountant who is an internationally recognized expect or with specialization in any branch of accountancy and his/her service is essential for the advancement of accountancy in the Philippines. </p> <p><b></b></p> <p><b>ARTICLE V</b></p> <p><b>PENAL AND FIINAL PROVISIONS</b></p> <p><b></b></p> <p><b>Section 36.</b> <b><i>Penal Provision</i>.</b> - Any person who shall violate any of the provisions of this Act or any of its implementing rules and regulations as promulgated by the Board subject to the approval of the Commission, shall upon conviction, be punished by a fine of not less than Fifty Thousand Pesos (50,000.00) or by imprisonment for a period not exceeding two (2) years or both.</p> <p><b>Section 37.</b> <b><i>Implementing Rules and Regulations</i>.</b> - Within Ninety (90) days after the effectivity of this Act, the Board, subject to the approval of the Commission and in coordination with the accredited national professional organization of certified public accountants, shall adopt and promulgate such rules and regulations to carry out the provisions of this Act and which shall be effective Fifteen (15) days following their publication in the Official Gazette or in any of the major daily newspaper of general circulation.</p> <p><b>Section 38.</b> <b><i>Interpretation of this Act</i>.</b> - Nothing in this Act shall be construed to effect or prevent the practice or any other legally recognized profession.</p> <p><b>Section 39.</b> <b><i>Enforcement of this Act</i>.</b> - It shall be primary duty of the Commission and the Board to effectivity enforce the provisions of this Act. All duly constituted law enforcement agencies and officers of national, provincial, city or municipal government or of any political subdivision thereof, shall upon the call or request of the Commission or the Board, render assistance in enforcing the provisions of this Act and to prosecute any person violating the provisions of the same. The Secretary of Justice or his duly designated representative shall act as legal adviser to the Commission and the Board and shall render legal assistance as may be necessary in carrying out the provisions of this Act.</p> <p>Any person may bring before the Commission, Board of the aforementioned officers of the law, cases of illegal practice or violations of this Act committed by any person or party.</p> <p>The Board shall assist the Commission in filing the appropriate charges though the concerned prosecution office in accordance with law and Rules of Court.</p> <p><b>Section 40.</b> <b><i>Funding Provision</i>.</b> - The chairperson of the Professional Regulation Commission shall immediately include the Commission's programs the implementation of this Act, the funding of which shall be included in the annual General Appropriations Act.</p> <p><b>Section 41.</b> <b><i>Transitory Provision</i>.</b> - The incumbent chairman and members of the Board shall continue to serve in their respective positions under the terms for they have been appointed under Presidential Decree No. 692, without the need of new appointments.</p> <p>All graduates with Bachelors Degree, Major in Accounting shall be allowed to take the CPA Licensure Examination within two (2) years from the effectivity of this Act under the rules and regulations to be promulgated by the Board subject to the approval by the Commission.</p> <p><b>Section 42.</b> <b><i>Separability Clause</i>.</b> - If any clause, provisions, paragraph or parts thereof shall be declared unconstitutional or invalid, such judgment shall not affect, invalidate or impair any other part hereof, but shall be merely confined to the clause, provisions, paragraph or part directly involved in the controversy in which such judgment has been rendered.</p> <p><b>Section 43.</b> <b><i>Repealing Clause</i>.</b> - Presidential Decree No. 692 is hereby repealed and all other laws, orders, rules and regulations or resolutions or part/s thereof inconsistent with the provisions of this Act are hereby repealed or modified accordingly.</p> <p><b></b></p> <p><b>Section 44.</b> <b><i>Effectivity</i>.</b> - This Act shall take effect after Fifteen (15) days following its publication in the Official Gazette or in any major daily newspaper of general circulation.</p> <p>Approved, <table border="0" cellspacing="0" cellpadding="0"><tbody> <tr> <td valign="top" width="50%"> <p><b>FRANKLIN DRILON</b> <br />President of the Senate</p> </td> <td valign="top" width="50%"> <p><b>JOSE DE VENECIA JR.</b> <br />Speaker of the House of Representatives</p> </td> </tr> </tbody></table> </p> <p>This Act which is consolidation of Senate Bill No. 2748 and House Bill No. 6678 was finally passed by the Senate and the House of the Representatives on February 6, 2004 and February 7, 2004, respectively. <table border="0" cellspacing="0" cellpadding="0"><tbody> <tr> <td valign="top" width="50%"> <p><b>OSCAR G. YABES</b> <br />Secretary of Senate</p> </td> <td valign="top" width="50%"> <p><b>ROBERTO P. NAZARENO</b> <br />Secretary General <br />House of Represenatives</p> </td> </tr> </tbody></table> </p> <p>Approved: May 13, 2004</p> <p><b>GLORIA MACAPAGAL-ARROYO</b> <br /><i>President of the Philippines</i></p> Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8026107156838764510.post-90906459017537492852011-10-01T18:34:00.001-07:002011-10-01T18:34:53.445-07:00Internet Marketing Full Lesson Handouts<p><b><font size="3" face="Arial">Part 1: Internet Marketing Fundamentals</font></b></p> <p><b><font size="3" face="Arial">Major Topics:</font></b></p> <p><font face="Arial"><font size="3"><b>A. </b>Introduction to Internet marketing</font></font></p> <p><font face="Arial"><font size="3"><b>B. </b>Internet Micro-Environment</font></font></p> <p><font face="Arial"><font size="3"><b>C. </b>Internet Macro-Environment</font></font></p> <p><b><font size="3" face="Arial">[A] An introduction to Internet marketing</font></b></p> <p><font face="Arial"><font size="3"><b>1. </b><b>Introduction – how significant is the Internet for marketing?</b></font></font></p> <p><b><font size="3" face="Arial">Customer journey</font></b></p> <p><font size="3" face="Arial">A description of modern multi-channel buyer behavior as consumers use different media to select suppliers, make purchases and gain customer support.</font></p> <p><font size="3" face="Arial">It explains how organizations can develop plans to manage all the different ways in which the Internet can be applied to support the marketing process. Let us look at two:</font></p> <p><font face="Arial"><font size="3">· <i>Customer-centric marketing</i></font></font></p> <p><font size="3" face="Arial">An approach to marketing based on detailed knowledge of customer behavior within the target audience which seeks to fulfill the individual needs and wants of customers.</font></p> <p><font face="Arial"><font size="3">· <i>Multi-channel marketing strategy </i></font></font></p> <p><font size="3" face="Arial">Defines how different marketing channels should integrate and support each other in terms of their proposition development and communications based on their relative merits for the customer and the company.</font></p> <p><b><font size="3" face="Arial">Marketing applications of Internet marketing</font></b></p> <p><b><font size="3" face="Arial"></font></b></p> <p><font size="3" face="Arial">Internet-based media offer a range of opportunities for marketing products and services across the purchase cycle. Companies such as easyJet and BP illustrate the applications of Internet marketing since they show how organizations can use online communications such as their web site, third-party web sites and e-mail marketing as:</font></p> <p><font size="3" face="Arial">- <b>An advertising medium.</b> For example, BP plc and its subsidiary companies, such as Castrol Limited, uses large-format display or interactive ads on media sites to create awareness of brands and products such as fuels and lubricants.</font></p> <p><font size="3" face="Arial">- <b>A direct-response medium. </b>For example, easyJet uses sponsored links when a user is researching a flight using a search engine to prompt them to directly visit the easyJet site by clicking through to it. Similarly the easyJet e-mail newsletter sent to customers can encourage them to click through to a web site to generate sales.</font></p> <p><font size="3" face="Arial">- <b>A platform for sales transactions.</b> For example, easyJet sells flights online to both consumers and business travelers.</font></p> <p><font size="3" face="Arial">- <b>A lead-generation method. </b>For example, when BP offers content to business car managers about selecting the best fuel for company cars in order to identify interest from a car fleet manager.</font></p> <p><font size="3" face="Arial">- <b>A distribution channel.</b> For example, for distributing digital products. This is often specific to companies with digital products to sell such as online music resellers such as Napster (www.napster.com) and Apple iTunes (www.itunes.com) or publishers of written or video content.</font></p> <p><font size="3" face="Arial">- <b>A customer service mechanism. </b>For example, customers serve themselves on easyJet.com by reviewing frequently asked questions.</font></p> <p><font size="3" face="Arial">- A relationship-building medium where a company can interact with its customers to better understand their needs and offer them relevant products and offers. For example, easyJet uses its e-mail newsletter and tailored alerts about special deals to help keep its customers and engage them in a dialogue to understand their needs through completing surveys and polls.</font></p> <p><font face="Arial"><font size="3"><b>2. </b><b>What is Internet marketing?</b></font></font></p> <p><font size="3" face="Arial">The use of the Internet and other digital media to support marketing has been granted a bewildering range of labels by both academics and professionals. In this section we review some of the different definitions to help explain the scope and applications of this new form of marketing. </font></p> <p><font size="3" face="Arial">Before we start by defining these terms, complete Activity 1.1 which considers the relative popularity of these terms.</font></p> <p><font size="3" face="Arial">What’s in a term – what do we call this <b>“e-thing”</b>?</font></p> <p><font face="Arial"><font size="3"><b>Purpose: </b>To illustrate how different marketers perceive Internet marketing.</font></font></p> <p><b><font size="3" face="Arial">Question</font></b></p> <p><font size="3" face="Arial">There are a range of terms used to describe Internet marketing – it is called different things by different people. It is important that within companies and between agency and client there is clarity on the scope of Internet marketing, so the next few sections explore alternative definitions.</font></p> <p><font size="3" face="Arial">One crude, but revealing method of assessing how commonly these terms are used, is to use the Google syntax which returns the number of pages which contain a particular phrase in their body or title. Type into Google the following phrases in double quotes or use intitle: “phrase” for these phrases and note the number of pages (at the top right hand of results page):</font></p> <p><b><font size="3" face="Arial">Phrase</font></b></p> <p><b><font size="3" face="Arial">“Internet marketing”</font></b></p> <p><b><font size="3" face="Arial">“E-marketing”</font></b></p> <p><b><font size="3" face="Arial">“Digital marketing”</font></b></p> <p><b><font size="3" face="Arial">“E-business”</font></b></p> <p><b><font size="3" face="Arial">“E-commerce”</font></b></p> <p><font face="Arial"><font size="3"><i>What, then, is Internet marketing?</i> <b>Internet marketing</b> can be simply defined as: <b>"Achieving marketing objectives through applying digital technologies."</b></font></font></p> <p><b><font size="3" face="Arial">Internet marketing</font></b></p> <p><i><font size="3" face="Arial">The application of the Internet and related digital technologies in conjunction with traditional communications to achieve marketing objectives.</font></i></p> <p><b><font size="3" face="Arial">E-marketing defined</font></b></p> <p><font size="3" face="Arial">The term ‘Internet marketing’ tends to refer to an external perspective of how the Internet can be used in conjunction with traditional media to acquire and deliver services to customers.</font></p> <p><b><font size="3" face="Arial">E-marketing</font></b></p> <p><font size="3" face="Arial">Achieving marketing objectives through use of electronic communications technology.</font></p> <p><font face="Arial"><font size="3"><b>Marketing</b> is the management process responsible for identifying, anticipating and satisfying customer requirements profitably.</font></font></p> <p><b><font size="3" face="Arial"></font></b></p> <p><font face="Arial"><font size="3"><b>Identifying</b> – the Internet can be used for marketing research to find out customers’ needs and wants.</font></font></p> <p><font face="Arial"><font size="3"><b>Anticipating</b> – the Internet provides an additional channel by which customers can access information and make purchases – understanding this demand is key to governing resource allocation to e-marketing.</font></font></p> <p><font face="Arial"><font size="3"><b>Satisfying </b>– a key success factor in e-marketing is achieving customer satisfaction through the electronic channel, which raises issues such as: is the site easy to use, does it perform adequately, what is the standard of associated customer service and how are physical products dispatched?</font></font></p> <p><b><font size="3" face="Arial">Digital marketing</font></b></p> <p><font size="3" face="Arial">This has a similar meaning to ‘electronic marketing’ – both describe the management and execution of marketing using electronic media such as the web, e-mail, interactive TV and wireless media in conjunction with digital data about customers’ characteristics and behavior. Digital marketing involves:</font></p> <p><font face="Arial"><font size="3">· <i>Applying these technologies which form online channels to market:</i></font></font></p> <p><font size="3" face="Arial">Web, e-mail, databases, plus mobile/wireless and digital TV.</font></p> <p><font face="Arial"><font size="3">· <i>To achieve these objectives:</i></font></font></p> <p><font size="3" face="Arial">Support marketing activities aimed at achieving profitable acquisition and retention of customers ... within a multi-channel buying process and customer lifecycle.</font></p> <p><font face="Arial"><font size="3">· <i>Through using these marketing tactics:</i></font></font></p> <p><font size="3" face="Arial">Recognizing the strategic importance of digital technologies and developing a planned approach to reach and migrate customers to online services through e-communications and traditional communications. Retention is achieved through improving our customer knowledge (of their profiles, behavior, value and loyalty drivers), then delivering integrated, targeted communications and online services that match their individual needs.</font></p> <p><font size="3" face="Arial">Let’s now look at each part of this description in more detail. The first part of the description illustrates the range of access platforms and communications tools that form the online channels which e-marketers use to build and develop relationships with customers. </font></p> <p><font size="3" face="Arial">The access platforms or hardware include PCs, PDAs, mobile phones and interactive digital TV and these deliver content and enable interaction through different online communication tools such as organization web sites, portals, search engines, blogs, e-mail, instant messaging and text messaging. Some also include traditional voice telephony as part of digital marketing.</font></p> <p><b><font size="3" face="Arial">Multi-channel marketing</font></b></p> <p><font size="3" face="Arial">Customer communications and product distribution are supported by a combination of digital and traditional channels at different points in the buying cycle.</font></p> <p><b><font size="3" face="Arial">Customer insight</font></b></p> <p><font size="3" face="Arial">Knowledge about customers’ needs characteristics, preferences and behaviors based on analysis of qualitative and quantitative data. Specific insights can be used to inform marketing tactics directed at groups of customers with shared characteristics.</font></p> <p><b><font size="3" face="Arial">E-commerce and e-business defined</font></b></p> <p><font size="3" face="Arial">The terms ‘e-commerce’ and ‘e-business’ are often used in a similar context to ‘Internet marketing’ but their scope is different. It is important for those managing digital technologies within any organizations to achieve clarity on the meaning of e-marketing, e-commerce and e-business to help define the scope of what they are trying to achieve! E<i>lectronic commerce (e-commerce) is often thought to simply refer to buying and selling using the Internet</i>; people immediately think of consumer retail purchases from companies such as Amazon.</font></p> <p><font size="3" face="Arial">Electronic commerce (e-commerce)</font></p> <p><font size="3" face="Arial">All financial and informational electronically mediated exchanges between an organization and its external stakeholders.</font></p> <p><font face="Arial"><font size="3"><b>Sell-side e-commerce</b> - E-commerce transactions between a supplier organization and its customers.<b></b></font></font></p> <p><font face="Arial"><font size="3"><b>Buy-side e-commerce</b> -<b> </b>E-commerce transactions between a purchasing organization and its suppliers.<b></b></font></font></p> <p><b><font size="3" face="Arial">Electronic business (e-business)</font></b></p> <p><font size="3" face="Arial">All electronically mediated information exchanges, both within an organization and with external stakeholders, supporting the range of business processes.</font></p> <p><b><font size="3" face="Arial">Business or consumer model?</font></b></p> <p><font size="3" face="Arial">· <b>Business-to-consumer (B2C)</b>. Commercial transactions between an organization and consumers.</font></p> <p><font size="3" face="Arial">· <b>Business-to-business (B2B)</b>. Commercial transactions between an organization and other organizations (inter-organizational marketing).</font></p> <p><font size="3" face="Arial">· <b>Consumer-to-consumer (C2C)</b>. Informational or financial transactions between consumers, but usually mediated through a business site. </font></p> <p><font size="3" face="Arial">· <b>Consumer-to-business (C2B)</b>. Consumers approach the business with an offer.</font></p> <p><font face="Arial"><font size="3"><b>3. </b><b>What benefits does the Internet provide for the marketer?</b></font></font></p> <p><font size="3" face="Arial">· Transactional e-commerce site</font></p> <p><font size="3" face="Arial">· Services-oriented relationship-building web site</font></p> <p><font size="3" face="Arial">· Brand-building site</font></p> <p><font size="3" face="Arial">· Portal or media site</font></p> <p><b><font size="3" face="Arial">The 5 S of Internet Marketing</font></b></p> <p><font face="Arial"><font size="3">· <i>Sell – Grow sales</i></font></font></p> <p><font size="3" face="Arial">Achieved through wider distribution to customers you can’t readily service offline or perhaps through a wider product range than in-store, or lower prices compared to other channels</font></p> <p><font face="Arial"><font size="3">· <i>Serve – Add value</i></font></font></p> <p><font size="3" face="Arial">Achieved through giving customers extra benefits online or inform product content on site development through online dialogue and feedback.</font></p> <p><font face="Arial"><font size="3">· <i>Speak – Get closer to customer</i></font></font></p> <p><font size="3" face="Arial">This is creating a two-way dialogue through web and e-mail forms and polls and conducting online market research through formal surveys and informally monitoring chat rooms to learn about them. Also speak through reaching them online through PR</font></p> <p><font face="Arial"><font size="3">· <i>Save – Save costs</i></font></font></p> <p><font size="3" face="Arial">Achieved through online e-mail communications, sales and service transactions to reduce staff, print and postage costs</font></p> <p><font face="Arial"><font size="3">· <i>Sizzle – Extend the brand online</i></font></font></p> <p><font face="Arial"><font size="3">Achieved through providing a new brand online proposition and new experience online while at the same time appearing familiar<i></i></font></font></p> <p><font size="3" face="Arial">A powerful method of evaluating the strategic marketing opportunities of using the Internet is to apply the strategic marketing grid of Ansoff (1957). </font></p> <p><font size="3" face="Arial">This shows how the Internet can potentially be used to achieve four strategic directions:</font></p> <p><font size="3" face="Arial">· <b>Market penetration. </b>The Internet can be used to sell more existing products into existing markets.</font></p> <p><font size="3" face="Arial">· <b>Market development.</b> Here the Internet is used to sell into new geographical markets, taking advantage of the low cost of advertising internationally without the necessity for a supporting sales infrastructure in the customers’ countries.</font></p> <p><font size="3" face="Arial">· <b>Product development. </b>New products or services are developed which can be delivered by the Internet. These are typically digital products.</font></p> <p><font size="3" face="Arial">· <b>Diversification. </b>In this sector, the Internet supports selling new products which are developed and sold into new markets.</font></p> <p><font face="Arial"><font size="3"><b>4. </b><b>A strategic approach to Internet marketing.</b></font></font></p> <p><font size="3" face="Arial">Some of the problems that we have commonly seen in organizations are:</font></p> <p><font size="3" face="Arial">- Unclear responsibilities for the many different Internet marketing</font></p> <p><font size="3" face="Arial">- No specific objectives are set for Internet marketing;</font></p> <p><font size="3" face="Arial">- Insufficient budget is allocated for Internet marketing as customer demand for online services is underestimated and competitors potentially gain market share through superior online activities;</font></p> <p><font size="3" face="Arial">- Budget is wasted as different parts of an organization experiment with using different tools or suppliers without achieving economies of scale;</font></p> <p><font size="3" face="Arial">- New online value propositions for customers are not developed since the Internet is treated as ‘just another channel to market’ without review of opportunities to offer improved, differentiated online services;</font></p> <p><font size="3" face="Arial">- Results from digital marketing are not measured or reviewed adequately, so actions cannot be taken to improve effectiveness;</font></p> <p><font size="3" face="Arial">- An experimental rather than planned approach is taken to using e-communications with poor integration between online and offline marketing communications.</font></p> <p><font size="3" face="Arial">The purpose of strategic Internet marketing activities:</font></p> <p><font face="Arial"><font size="3"><b>A. </b><b>Defining the online opportunity</b></font></font></p> <p><font size="3" face="Arial">1.<b> Set e-marketing objectives</b>: Companies need to set specific numerical objectives for their online channels and then resource to deliver these objectives. These objectives should be informed by and influence the business objectives and also the following activities:</font></p> <p><font size="3" face="Arial">1.a. <b>Evaluate e-marketing performance</b>: Applying web analytics tools to measure the contribution of leads, sales and brand involvement currently delivered by online communications such as search engine marketing, online advertising and email marketing in conjunction with the web site.</font></p> <p><font size="3" face="Arial">1.b. <b>Assess online marketplace</b>: Situation analysis reviewing the micro-environment (customers, competitors, intermediaries, suppliers and internal capabilities and resources) and the broader macro-environment, which influences strategy such as legal requirements and technology innovation. A Defining the online opportunity</font></p> <p><font face="Arial"><font size="3"><b>B. </b><b>Selecting the strategic approach</b></font></font></p> <p><font size="3" face="Arial">2. <b>Define e-marketing strategy</b>: Select appropriate strategies to achieve the objectives set at stage A1.</font></p> <p><font size="3" face="Arial">2a. <b>Define customer value proposition</b>: Define the value proposition available through the online channel and how it relates to the core proposition delivered by the company. Reviewing the marketing mix and brand values to evaluate how they can be improved online.</font></p> <p><font size="3" face="Arial">2b. <b>Define e-communications mix</b>: Selecting the offline and online communications tools to encourage usage of an organization’s online services and to generate leads and sales. Developing new outbound communications and event-triggered touch strategies to support customers through their relationship with the company.</font></p> <p><font face="Arial"><font size="3"><b>C. </b><b>Delivering results online</b></font></font></p> <p><font size="3" face="Arial">3.<b> Implement e-marketing plan</b>: This details the implementation of the strategy.</font></p> <p><font size="3" face="Arial">3a. <i>Implement customer experience:</i> Build the web site and create the e-mail marketing communications’ which form the online interactions customers make with a company. Create online customer relationship management capabilities to understand customers’ characteristics, needs and behaviors and to deliver targeted, personalized value.</font></p> <p><font size="3" face="Arial">3b. <i>Execute e-communications:</i> Managing the continuous online marketing communications such as search engine marketing, partnerships, sponsorships and affiliate arrangements and campaign-based e-marketing communications such as online advertising, e-mail marketing and micro-sites to encourage usage of the online service and to support customer acquisition and retention campaigns.</font></p> <p><font size="3" face="Arial">4. <b>Customer profiling</b>, monitoring and improving online activities and <b>maintaining the online activities</b>. Capturing profile and behavioral data on customer interactions with the company and summarizing and disseminating reports and alerts about performance compared with objectives in order to drive performance improvement.</font></p> <p><font face="Arial"><font size="3"><b>5. </b><b>How do Internet marketing communications differ from traditional marketing communications?</b></font></font></p> <p><font size="3" face="Arial">The six Is are useful since they highlight factors that apply to practical aspects of Internet marketing such as personalization, direct response and marketing research, but also strategic issues of industry restructuring and integrated channel communications.</font></p> <p><font face="Arial"><font size="3"><b>1. </b><b>Interactivity</b></font></font></p> <p><font size="3" face="Arial">· the customer initiates contact;</font></p> <p><font size="3" face="Arial">· the customer is seeking information (pull); it is a high-intensity medium – the marketer will have 100 per cent of the individual’s</font></p> <p><font size="3" face="Arial">· attention when he or she is viewing a web site;</font></p> <p><font size="3" face="Arial">· a company can gather and store the response of the individual;</font></p> <p><font size="3" face="Arial">· individual needs of the customer can be addressed and taken into account in future dialogues.</font></p> <p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh127NfHUfWApcPjHvzofa_0Mkd7x35RLIkygfGbY0JlWhThPr3sqlCZ56QJELZmf8VmiZirqsTWvcJVeudj2brqrM6UPavpWv0jKlmVB71HabkJWDRg0NVfdW98upWApBUL8gTNQfpSYrX/s1600-h/clip_image002%25255B4%25255D%25255B2%25255D.gif"><font size="3" face="Arial"><img style="background-image: none; border-right-width: 0px; margin: 0px; padding-left: 0px; padding-right: 0px; display: inline; border-top-width: 0px; border-bottom-width: 0px; border-left-width: 0px; padding-top: 0px" title="clip_image002[4]" border="0" alt="clip_image002[4]" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjvyb58yO5juVBjL47l3CQBMqdYOTF9YypitDA7Ee6_LoHPiarLIEoe7ERFHPU2FEJsxqZbCqFXFvj6L7e3yP4guhKhjrGL4bog8WFQV_OJmZ_Do9I5NQoAtfuC6V7VvXF7S0SVwsG7xzH_/?imgmax=800" width="244" height="154" /></font></a></p> <p><font size="3" face="Arial">Internet should be used to encourage two-way communications, which may be extensions of the direct-response approach. For example, FMCG suppliers such as Nestlé (www.nescafe.co.uk) use their web site as a method of generating interaction by providing incentives such as competitions and sales promotions to encourage the customer to respond with their names, addresses and profile information such as age and sex.</font></p> <p><font face="Arial"><font size="3"><i>Consumers can interact with the medium, firms can provide content to the medium, and in the most radical departure from traditional marketing environments, consumers can provide commercially-oriented content to the media</i>.</font></font></p> <p><font size="3" face="Arial">It has taken ten years of the growth in use of individual recommendations, auction sites, community sites and more recently blogs and podcasts for the full extent of this shift to become apparent.</font></p> <p><font face="Arial"><font size="3"><b>Podcasts: </b>Individuals and organizations post online media (audio and video), which can be viewed, in the appropriate players including the iPod which first sparked the growth in this technique.</font></font></p> <p><font face="Arial"><font size="3"><b>2. </b><b>Intelligence</b></font></font></p> <p><font size="3" face="Arial">The Internet can be used as a relatively low-cost method of collecting marketing research, particularly about customer perceptions of products and services. In the competitions referred to above, Nestlé are able to profile their customers’ characteristics on the basis of questionnaire response.</font></p> <p><font size="3" face="Arial">A wealth of marketing research information is also available from the web site itself. Marketers use the web analytics approaches to build their knowledge of customer preferences and behavior according to the types of sites and content, which they consume when online. Every time a web site visitor downloads content, this is recorded and analyzed as ‘site statistics’ in order to build up a picture of how consumers interact with the site.</font></p> <p><font face="Arial"><font size="3"><b>Web analytics:</b> Techniques used to assess and improve the contribution of e-marketing to a business, including reviewing traffic volume, referrals, clickstreams, online reach data, customer satisfaction surveys, leads and sales.</font></font></p> <p><font face="Arial"><font size="3"><b>3. </b><b>Individualization</b></font></font></p> <p><font size="3" face="Arial">Another important feature of the interactive marketing communications is that they can be tailored to the individual at relatively low costs, unlike in traditional media where the same message tends to be broadcast to everyone. Importantly, this individualization can be based on the intelligence collected about site visitors and then stored in a database and subsequently used to target and personalize communications to customers to achieve relevance in all media. The process of tailoring is also referred to as personalization – Amazon is the most widely known example where the customer is greeted by name on the web site and receives recommendations on site and in their e-mails based on previous purchases. This ability to deliver ‘sense and respond communications’ is another key feature of Internet marketing.</font></p> <p><b><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjz9q-yKyAqhokdKB4bsAoQP4hXPT7_BKAxfw4ZZKxXcpvSgtZKt8h3L65V9Ajaz7fL8i1xsae9niv1GPMCGdTYmsNxflNARrKPFdJQPghKQ2_vnPundwp1nG8d38iuq25GD8972NpAUkiB/s1600-h/clip_image004%25255B4%25255D%25255B2%25255D.gif"><font size="3" face="Arial"><img style="background-image: none; border-right-width: 0px; margin: 0px; padding-left: 0px; padding-right: 0px; display: inline; border-top-width: 0px; border-bottom-width: 0px; border-left-width: 0px; padding-top: 0px" title="clip_image004[4]" border="0" alt="clip_image004[4]" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEga2wwBStjDXD_mRFyPaiPvtzQ1BhRFnUnZ-sNEe8T_wulVBZBxt_PMxvoMPLK0T_SG0SIuOlcEGdZBzhiUIBZAZh9mV4sc-NUzY7xiwdJ_CF3JAUf9moxCBZUXctJmWPCiLVKQcABzCHbR/?imgmax=800" width="244" height="206" /></font></a></b></p> <p><font size="3" face="Arial">Summary of degree of individualization for: (a) <i>traditional media</i> (same message), (b) <i>new media</i> (unique messages and more information exchange between customers)</font></p> <p><b><font size="3" face="Arial"></font></b></p> <p><font face="Arial"><font size="3"><b>Personalization:</b> Delivering individualized content through web pages or e-mail.</font></font></p> <p><font face="Arial"><font size="3"><b>Sense and respond communications:</b> Customer behavior is monitored at an individual level and the marketer responds with communications tailored to the individual’s need.</font></font></p> <p><font size="3" face="Arial">Mass customization: Delivering customized content to groups of users through web pages or e-mail. Delivering customized content to groups of users through web pages or e-mail.</font></p> <p><font face="Arial"><font size="3"><b>4. </b><b>Integration</b></font></font></p> <p><font size="3" face="Arial">· <b>Outbound Internet-based communications:</b> The web site and e-mail marketing are used to send personalized communications to customers.</font></p> <p><font size="3" face="Arial">· <b>Inbound Internet-based communications:</b> Customers enquire through web-based form and e-mail.</font></p> <p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhEvHxNKqMjy4wClLdNJPv9Mj1iDkKlRaQp0fDnAeCPOKL1rHeS10TIXBVXicI7zDhY1VlDQyLfRBECxji9scnUhtrSteKqipOZI9ljS6pOa_YYVUDxXxYXbFtK4M-VwN1kXEc95ffH6iMR/s1600-h/clip_image006%25255B4%25255D%25255B2%25255D.gif"><font size="3" face="Arial"><img style="background-image: none; border-right-width: 0px; margin: 0px; padding-left: 0px; padding-right: 0px; display: inline; border-top-width: 0px; border-bottom-width: 0px; border-left-width: 0px; padding-top: 0px" title="clip_image006[4]" border="0" alt="clip_image006[4]" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh-oz_DR49Fju4Csismiuj1860rYKvo60Rj4gfxxUmQNbSeyYoFnHyNgS6PoNCJ3Uz6WNbuV6potRBrfPgbAlBVVnJSJzGMzpBMjiClnUbWkx3vg9aYGjauYkOZ-4esDRAQz_avCwpAtohQ/?imgmax=800" width="244" height="169" /></font></a></p> <p><font size="3" face="Arial">Channel requiring integration as part of integrated e-marketing strategy</font></p> <p><font size="3" face="Arial">Some practical examples of how the Internet can be used as an integrated communications tool as parts of supporting a multi-channel customer journey are the following:</font></p> <p><font size="3" face="Arial">· The Internet can be used as a direct-response tool, enabling customers to respond to offers and promotions publicized in other media.</font></p> <p><font size="3" face="Arial">· The web site can have a direct response or callback facility built into it. The Automobile Association has a feature where a customer service representative will contact a customer by phone when the customer fills in their name, phone number and a suitable time to ring.</font></p> <p><font size="3" face="Arial">· The Internet can be used to support the buying decision even if the purchase does not occur via the web site. For example, Dell has a prominent web-specific phone number on their web site that encourages customers to ring a representative in the call centre to place their order. This has the benefits that Dell is less likely to lose the business of customers who are anxious about the security of online ordering and Dell can track sales that result partly from the web site according to the number of callers on this line. Considering how a customer changes from one channel to another during the buying process, this is referred to as <b>mixed-mode buying</b>. It is a key aspect of devising online marketing communications since the customer should be supported in changing from one channel to another.</font></p> <p><font size="3" face="Arial">· Customer information delivered on the web site must be integrated with other databases of customer and order information such as those accessed via staff in the call centre to provide what Seybold (1999) calls a ‘360 degree view of the customer’.</font></p> <p><font size="3" face="Arial">· The Internet can be used to support customer service. For example easyJet (www.easyjet.com), which receives over half its orders electronically, encourages users to check a list of frequently asked questions (FAQ) compiled from previous customer enquiries before contacting customer support by phone.</font></p> <p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhacYByEwSE_J4t1eXAPBkEYaYHjuNFRjCRJMtiWbDdFGjKFQ-bzIqpl-6Cz-TIjl6Y7m3Ewk8fbQpdBCOSW6K_IHJAZFoM1Xw8hM8GFyR4A1mvek-f_IdAnWed7kPGkiXPSbq9U2aYp37e/s1600-h/clip_image008%25255B4%25255D%25255B2%25255D.gif"><font size="3" face="Arial"><img style="background-image: none; border-right-width: 0px; margin: 0px; padding-left: 0px; padding-right: 0px; display: inline; border-top-width: 0px; border-bottom-width: 0px; border-left-width: 0px; padding-top: 0px" title="clip_image008[4]" border="0" alt="clip_image008[4]" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg0t70QFV9SMTN_rSAymYdskqxaLMX7yzEfATu6BmkQfbvvidJnaGjioGlwFWJiqq_zaUsGshh4A4j2hSuuvFj19adFWibjdAuBWvdHKKFLuvWh-gLy_N2XTDYk3puhMdSnmvIqhekZhCjL/?imgmax=800" width="244" height="161" /></font></a></p> <p><font size="3" face="Arial">Channel requiring integration as part of integrated e-marketing strategy</font></p> <p><font face="Arial"><font size="3"><b>5. </b><b>Industry restructuring</b></font></font></p> <p><font size="3" face="Arial">· <b>Disintermediation:</b> The removal of intermediaries such as distributors or brokers that formerly linked a company to its customers.</font></p> <p><font size="3" face="Arial">· <b>Reintermediation:</b> The creation of new intermediaries between customers and suppliers providing services such as supplier search and product evaluation.</font></p> <p><font face="Arial"><font size="3">For the marketer defining their company’s communications strategy it becomes very important to consider the company’s representation on these intermediary sites by answering questions such as <b><i>Which intermediaries should we be represented on?</i> </b>and <b><i>How do our offerings compare to those of competitors in terms of features, benefits and price?</i></b></font></font></p> <p><font face="Arial"><font size="3"><b>6. </b><b>Independence of location</b></font></font></p> <p><font size="3" face="Arial">Electronic media also introduce the possibility of increasing the reach of company communications to the global market. This gives opportunities to sell into international markets that may not have been previously possible. The Internet makes it possible to sell to a country without a local sales or customer service force (although this may still be necessary for some products). In such situations and with the restructuring in conjunction with disintermediation and reintermediation, strategists also need to carefully consider channel conflicts that may arise. If a customer is buying direct from a company in another country rather than via the agent, this will marginalize the business of the local agent who may want some recompense for sales efforts or may look for a partnership with competitors.</font></p> <p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgRiOL_rnQb8EM2OB1qyoC9M4vEt0acavuWw7g2Cw7-U6ZlqOIbrEXOVsMOAKCZRgd41_VXRDSCLWVd1C_3eFmF6eL0wiGEUC6yxRFv8LSxRhSJAU8uxHK9WSelXGhHXJUl2QJbxLpLJi2K/s1600-h/clip_image010%25255B4%25255D%25255B2%25255D.gif"><font size="3" face="Arial"><img style="background-image: none; border-right-width: 0px; margin: 0px; padding-left: 0px; padding-right: 0px; display: inline; border-top-width: 0px; border-bottom-width: 0px; border-left-width: 0px; padding-top: 0px" title="clip_image010[4]" border="0" alt="clip_image010[4]" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi9m-wm8OQbCClftwzLezwOD_-LxMfPW6D8DGkpmV6X_V6SZx1Dbzy7eFXuo6KaCYMVpMv4ow800r2PiFdjwKgxlCyOYHAyGesBH3Dy2l8TH3XPwfquqfUXQcst6lWpGnvF3BJR_i12sJaE/?imgmax=800" width="244" height="140" /></font></a></p> <p><font size="3" face="Arial">An interpretation of the differences between the old and digital media</font></p> <p><font face="Arial"><font size="3"><b>6. </b><b>A short introduction to Internet technology.</b></font></font></p> <p><b><font size="3" face="Arial"></font></b></p> <p><font size="3" face="Arial">a. Internet and World Wide Web</font></p> <p><font size="3" face="Arial">· Marketers require a basic understanding of Internet technology in order to discuss the implementation of e-marketing with suppliers such as digital marketing agencies and with the internal IT team. </font></p> <p><font size="3" face="Arial">· The <b>Internet</b> has existed since the late 1960s when a limited number of computers were connected for military and research purposes in the United States to form the ARPAnet. </font></p> <p><font size="3" face="Arial">· Why then has the Internet only recently been widely adopted for business purposes? The recent dramatic growth in the use of the Internet has occurred because of the development of the World Wide Web. This became a commercial proposition in 1993 after development of the original concept by Tim Berners-Lee, a British scientist working at CERN in Switzerland in 1989. The World Wide Web changed the Internet from a difficult- to-use tool for academics and technicians to an easy-to-use tool for finding information for businesses and consumers.</font></p> <p><font face="Arial"><font size="3">· The <b>World Wide Web</b> is an interlinked publishing medium for displaying graphic and text information. This information is stored on web server computers and then accessed by users who run web browser programs such as Microsoft Internet Explorer, Apple Safari or Mozilla Firefox which display the information and allow users to select links to access other web sites. Promoting web site addresses is important to marketing communications. The technical name for web addresses is uniform or universal resource locators (URLs). URLs can be thought of as a standard method of addressing similar to postal codes that make it straightforward to find the name of a site. Web addresses are structured in a standard way as follows: <b><a href="http://www.domain-name.extension/filename.html">http://www.domain-name.extension/filename.html</a></b></font></font></p> <p><font size="3" face="Arial">· The <b>domain name</b> refers to the name of the web server and is usually selected to be the same as the name of the company, and the extension will indicate its type. The extension is also commonly known as the global top-level domain (gTLD). Note that gTLDs are currently under discussion and there are proposals for adding new types such as .store and .firm.</font></p> <p><font size="3" face="Arial">· Common gTLDs are:</font></p> <p><font size="3" face="Arial">o <b>.com</b> represents an international or American company such as (<b>www.travelocity.com</b>).</font></p> <p><font size="3" face="Arial">o <b>.co.uk</b> represents a company based in the UK such as (<b>www.thomascook.co.uk</b>).</font></p> <p><font size="3" face="Arial">o <b>.ac.uk </b>is a UK-based university (<b>www.derby.ac.uk</b>).</font></p> <p><font size="3" face="Arial">o <b>.org.uk</b> and <b>.org</b> are not-for-profit organizations (<b>www.greenpeace.org</b>).</font></p> <p><font size="3" face="Arial">o <b>.net </b>is a network provider such as (<b>www.demon.net</b>).</font></p> <p><font size="3" face="Arial">b. How Does Internet Work?</font></p> <p><font size="3" face="Arial">c. From the Internet to intranets and extranets</font></p> <p><b> <br /><font size="3" face="Arial"></font></b></p> <p><b><font size="3" face="Arial">[B] Internet Micro-Environment</font></b></p> <p><font size="3" face="Arial">All organizations operate within an environment that influences the way in which they conduct business. Organizations that monitor, understand and respond appropriately to changes in the environment have the greatest opportunities to compete effectively in the competitive marketplace. Understanding an organization’s environment is a key part of situation analysis for the Internet marketing strategy development process.</font></p> <p><font face="Arial"><font size="3"><b>Situation analysis</b>: Collection and review of information about an organization’s external environment and internal processes and resources in order to inform its strategies.</font></font></p> <p><font face="Arial"><font size="3"><b>Environmental scanning and analysis:</b> The process of continuously monitoring the environment and events and responding accordingly.</font></font></p> <p><b><font size="3" face="Arial">Different environment components</font></b></p> <p><font size="3" face="Arial">The Internet introduces new facets to the environment that must be considered by marketers since strategy development is strongly influenced by considering the environment the business operates in. Figure below illustrates the key elements of a business’s that will influence the organization.</font></p> <p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh3nNBe4iuy3wWOpWxDkYplYcyA_ienO37tewQlfG2yoKhJxB3faPP_EvmK2BamEw3N182cU8qGaMJDWJ-Av0Pt-w8ZOY1ooJ_JtZGcwcW6fFMfuFw6iIyRPQXaavkbOvDwU7flP15W2h_Z/s1600-h/clip_image012%25255B4%25255D%25255B2%25255D.gif"><font size="3" face="Arial"><img style="background-image: none; border-right-width: 0px; margin: 0px; padding-left: 0px; padding-right: 0px; display: inline; border-top-width: 0px; border-bottom-width: 0px; border-left-width: 0px; padding-top: 0px" title="clip_image012[4]" border="0" alt="clip_image012[4]" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgsjAmDyaRS20gRzMfU05vJeY3DW1Z4wL7emyQoIswP2j7G8rYOx5NDIay5zd10ZzNkQNI-4HGr-zTBHHq5_NoduMoJ96TjQnbpeOrSNVidwPjY4nlaGgSI-gX9SBcGc34mmiuCd_6MdSh8/?imgmax=800" width="244" height="147" /></font></a></p> <p><font size="3" face="Arial">Figure: The Internet marketing environment</font></p> <p><font size="3" face="Arial">The <b>micro-environment</b>, sometimes known as “the operating environment” is the immediate marketplace of an organization. For development of Internet marketing strategy, the most significant influences are arguably those of the micro-environment. This is shaped by the needs of customers and how services are provided to them through the competitors, intermediaries and upstream suppliers within the marketplace. The Internet and electronic communications have major implications for organizations and these must inform their Internet marketing strategy. We consider the changes to the micro-environment and their implications in this chapter.</font></p> <p><font size="3" face="Arial">The <b>macro-environment </b>is sometimes known as “the remote environment”, being provided by local and international conditions and legislation together with acceptable business practices. The Internet and electronic communications have also introduced major changes to the macro-environment. Reviewing the relevance of technological innovations to an organization is vital in providing opportunities for superior services to competitors and to changing the shape of the marketplace. Another significant macro-environment influence is legal, specific laws have been enacted to control online marketing and of course the influence of new technologies.</font></p> <p><font face="Arial"><font size="3"><b>Micro-environment:</b> Specific forces on an organization generated by its stakeholders.</font></font></p> <p><font face="Arial"><font size="3"><b>Macro-environment:</b> Broader forces affecting all organizations in the marketplace including social, technological, economic, political and legal aspects.</font></font></p> <p><font size="3" face="Arial">Table: Factors in the macro-environment and micro-environment of an organization and Internet marketing-related issues</font></p> <p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiKdf6xp3g4xI0IvoIn9bZ7094AYON7P_Hksk1GdT-uDPEAuKK1wZzE7s1-m4YTGLAK7nGN8PEqZ0Ud4Rdo8b6-ptNyfenhwWjm6b2z97udxDtIQdXsq9uv1XXe-H6ohvtBL6F2d7ilO1ya/s1600-h/clip_image014%25255B4%25255D%25255B2%25255D.gif"><font size="3" face="Arial"><img style="background-image: none; border-right-width: 0px; margin: 0px; padding-left: 0px; padding-right: 0px; display: inline; border-top-width: 0px; border-bottom-width: 0px; border-left-width: 0px; padding-top: 0px" title="clip_image014[4]" border="0" alt="clip_image014[4]" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgn2PdP9CQ7N8Dz1L7ITyp23ySaArqs2qUIdMDOi2e3LCNdJ2eIKFLLRCgIFbGgXM5LXj1Sku3mqukk8z9HB7SRHtuM4B6Ufb6fjgBvoEpN44lnr6r5r86Q5GUCwVa3chyq_u1GtdS3Hrbl/?imgmax=800" width="244" height="180" /></font></a></p> <p><font face="Arial"><font size="3"><b>1. </b><b>Marketplace</b></font></font></p> <p><font size="3" face="Arial">The operation of an organization’s marketplace comprises the interactions between all elements of the micro-environment. In this section we review the great range of changes that the Internet has brought to the marketplace. The issues we will review include:</font></p> <p><font size="3" face="Arial">· <b>Competitive forces.</b> How are the major external forces on an organization affected by the Internet?</font></p> <p><font size="3" face="Arial">· <b>From value chain to value network.</b> The value network concept describes a more dynamic version of the value chain with increased interaction between partners.</font></p> <p><font size="3" face="Arial">· <b>New channel structures.</b> What changes can occur to linkages to upstream and downstream partners in the supply chain? What is the role of new intermediaries?</font></p> <p><font size="3" face="Arial">· <b>Location of trading.</b> What are the options for location of trading online?</font></p> <p><font size="3" face="Arial">· <b>Commercial arrangements for transactions.</b> How are these changed?</font></p> <p><font size="3" face="Arial">· <b>New business and revenue models.</b> What business and revenue models can be adopted in the Internet marketplace?</font></p> <p><b><font size="3" face="Arial"></font></b></p> <p><b><font size="3" face="Arial">Competitive forces.</font></b></p> <p><font size="3" face="Arial">Intermediaries such as search engines, price comparison sites and even blogs often have a strong influence on the balance between the bargaining power of buyers and suppliers and tend to intensify rivalry between existing competitors.</font></p> <p><font size="3" face="Arial">Table: Impact of the Internet on the five competitive forces</font></p> <p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgzDzAtM0IV0CyinLnzemHKdv48mBZvsApkLJWFF_9V-F0Snd-7gVuqfHVzt-6JjeZDw0r_25HxBF_tP2lYFMgncwWJdyd1rytWkjg-Q4dp1Llabgh9D9QU8xSvbfSTtpGWRgC1FxsJrXfC/s1600-h/clip_image016%25255B4%25255D%25255B2%25255D.gif"><font size="3" face="Arial"><img style="background-image: none; border-right-width: 0px; margin: 0px; padding-left: 0px; padding-right: 0px; display: inline; border-top-width: 0px; border-bottom-width: 0px; border-left-width: 0px; padding-top: 0px" title="clip_image016[4]" border="0" alt="clip_image016[4]" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhxAOpxuqIBLGHRVXrzPvE2oQyPb0ktW4cRwuvIksaQm-_pZD5KC1JFozKg0ossBnd8mnZHqRdMp7WwYCwp9qnv-PHlf61wfi-oUXdfIvmNZtA8Mjxic6yZ7FijquFMszd5u38djWxSyhzA/?imgmax=800" width="244" height="146" /></font></a></p> <p><b><font size="3" face="Arial">Terms</font></b></p> <p><font size="3" face="Arial">· <b>Commoditization:</b> The process whereby product selection becomes more dependent on price than on differentiating features, benefits and value-added services.</font></p> <p><font size="3" face="Arial">· <b>Soft lock-in:</b> Electronic linkages between supplier and customer increase switching costs.</font></p> <p><font size="3" face="Arial">· <b>Internet EDI:</b> Use of electronic data interchange standards delivered across nonproprietary Internet protocol networks.</font></p> <p><font size="3" face="Arial">· <b>Business-to-business exchanges or marketplaces:</b> Virtual intermediaries with facilities to enable trading between buyers and sellers.</font></p> <p><b><font size="3" face="Arial"></font></b></p> <p><b><font size="3" face="Arial">Value creation and value chain analysis</font></b></p> <p><font size="3" face="Arial">How businesses create value within their markets is fundamental to their success. Digital technologies have a significant role in changing the balance of value creation within a market, so the extent of this change and how well it has been implemented must be evaluated as part of environment analysis. Value delivered is dependent on the difference between the consumer benefit created by the business and the costs incurred in producing or delivering the value as suggested by the figure.</font></p> <p><font size="3" face="Arial">You can see that arguably the biggest impact of the Internet is the capability to reduce costs through reducing intermediaries such as physical stores and also through changing the intangible benefits. Together, these combine to form the online value proposition. To pass on the reduced costs of dealing direct it will be necessary for retailers, banks and other companies to change their structure and accounting practices to isolate online channels as a separate profit centre.</font></p> <p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjAwhpBujS3VyUT_-YaTW2_R4wJK0vENn_cNhCM6eMcplm-ZGm6jTxaWD56SlElPSE_41FgZjdNCFqg0apeAkmAIwvFB8sk-UJ1Zvr7G5nvz__bBNaSqEHsoP5rXcuXKLF2tbR7URRLdw1x/s1600-h/clip_image018%25255B4%25255D%25255B2%25255D.gif"><font size="3" face="Arial"><img style="background-image: none; border-right-width: 0px; margin: 0px; padding-left: 0px; padding-right: 0px; display: inline; border-top-width: 0px; border-bottom-width: 0px; border-left-width: 0px; padding-top: 0px" title="clip_image018[4]" border="0" alt="clip_image018[4]" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgz55SOC3Y_syfHsnNj7taNVsRcdg6T_OtQ9r_RzI6iIP4VtW_c3SpHvL7LbkD-MrYAC-vPgwSxeme-doa-8g5lquPUqzXkrCqe6KqKr-kGEID1C0f0TeYDzO6dwSfKoXUOUQlOL7uuXRvW/?imgmax=800" width="244" height="151" /></font></a></p> <p><font size="3" face="Arial">Figure: Value Chain Model Creation</font></p> <p><font size="3" face="Arial">Michael Porter’s value chain (VC) is a well-established concept for considering key activities that an organization can perform or manage with the intention of creating value for customers (Porter, 1980). We can identify an internal value chain within the boundaries of an organization and an external value chain where activities are performed by partners. By analyzing the different parts of the value chain managers can redesign internal and external processes to improve their efficiency and effectiveness. </font></p> <p><font size="3" face="Arial">Traditional value chain analysis (Figure below) of the internal value chain distinguishes between primary activities which contribute directly to getting goods and services to the customer (such as inbound logistics, including procurement, manufacturing, marketing and delivery to buyers, support and servicing after sale) and support activities which provide the inputs and infrastructure that allow the primary activities to take place.</font></p> <p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj33AE4Gt07YabIPY3LcRKHaA5xKL9rUx9WmHYHj4JzHd80yFHubY7m3pnyP9UWF8wiH4aSDQ_-6NUgWL1JQpLQACihmKD3JFelR8W62kfeolkRgtFcshyphenhyphenB23kNxuAL0mXfoK7oRZUnMv_V/s1600-h/clip_image020%25255B4%25255D%25255B2%25255D.gif"><font size="3" face="Arial"><img style="background-image: none; border-right-width: 0px; margin: 0px; padding-left: 0px; padding-right: 0px; display: inline; border-top-width: 0px; border-bottom-width: 0px; border-left-width: 0px; padding-top: 0px" title="clip_image020[4]" border="0" alt="clip_image020[4]" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjn_OtdnEBHYTT3K5cibc6h4sXpHyQhQwp38oaVsHN5UAvhj840tFx-VRCI6cbYgmmPXTk8Q4JMDgue47C3aiFeK-ZH-jOtueX1Gz_O_CfoqKMpcfcs_PYcBJ7-ANvV3X9h8K63WV4TLMGi/?imgmax=800" width="244" height="144" /></font></a></p> <p><font size="3" face="Arial">Figure: Two alternative models of the value chain: (a) traditional value chain model, (b) revised value chain model</font></p> <p><font size="3" face="Arial">Value can be created for the customer by reducing costs of providing goods and services and adding benefits for customers:</font></p> <p><font size="3" face="Arial">· within each element of the value chain such as procurement, manufacture, sales and distribution;</font></p> <p><font size="3" face="Arial">· at the interface between elements of the value chain such as between sales and distribution.</font></p> <p><font size="3" face="Arial">In equation form this is:</font></p> <p><b><font size="3" face="Arial">Value = (Benefit of each VC activity – its cost) +</font></b></p> <p><b><font size="3" face="Arial">(Benefit of each interface between VC activities – its cost)</font></b></p> <p><font size="3" face="Arial">Understanding how Internet technologies can be used to process, transfer and share marketing-related information is vital to help Internet marketers evaluate and revise value chain activities. For example, if a grocery retailer shares information electronically with its suppliers about demand for its products, this can enhance the value chain of both parties since the cycle time for ordering can be reduced, resulting in lower inventory holding and hence lower costs for both. The retailer can also set up links between its online product catalogues and all appropriate comparison intermediaries for products using data transfer technologies such as XML. </font></p> <p><font size="3" face="Arial">Of course, the most obvious examples of value creation occur directly through the interface between the web site and the customer, for example <b>through detailed product information</b>, <b>product selection guides</b>, <b>personalized product recommendations</b> and <b>online customer support facilities</b> which involve reducing cost to serve and may have intangible benefits for the customer such as improved recommendations or decreasing the purchase time.</font></p> <p><b><font size="3" face="Arial">Restructuring the internal value chain</font></b></p> <p><font size="3" face="Arial">Traditional models of the value chain (such as Figure 2.5(a)) have been re-evaluated with the advent of global electronic communications. It can be suggested that there are some key weaknesses in the traditional value chain model:</font></p> <p><font size="3" face="Arial">· It is most applicable to manufacturing of physical products as opposed to services.</font></p> <p><font size="3" face="Arial">· It is a one-way chain involving pushing products to the customer; it does not highlight the importance of understanding customer needs through market research and responsiveness through innovation and new product development.</font></p> <p><font size="3" face="Arial">· The internal value chain does not emphasize the importance of value networks (although Porter (1980) did produce a diagram that indicated network relationships).</font></p> <p><font size="3" face="Arial">A revised form of the value chain has been suggested by Deise et al. (2000); an adaptation of this model is presented in Figure 2.5(b). This digital value chain starts with the market research process, emphasizing the importance of real-time environment scanning for decision making. For each of the different types of organization site introduced in Chapter 1, there are opportunities to create value by processing information in new ways: </font></p> <p><font size="3" face="Arial">1. Customer information collected on a <b>transactional e-commerce site</b> can develop greater understanding of the purchasing behavior of its target customers, which can also be analyzed in terms of demographic profiles through tracking online shopping preferences and sequences.</font></p> <p><font size="3" face="Arial">2. <b>Service-oriented relationship building sites</b> can collect information as part of creating a dialogue using profiling forms, feedback forms and forums on the site enabling their owners to better understand customer characteristics and purchasing behavior.</font></p> <p><font size="3" face="Arial">3. <b>Brand building</b> sites also have opportunities to collect information about the profiles and preferences of their site visitors or those in their target market using third-party sites.</font></p> <p><font size="3" face="Arial">4. <b>Portal or media sites</b> can potentially use visitors to contribute content. Think of the BBC web site, which now has feedback on its news, sport and entertainment sites, so adding value to its visitors. Even well-known media owner Rupert Murdoch has suggested that online newspapers consider recruiting bloggers to add value to their audiences (Murdoch, 2005).</font></p> <p><b><font size="3" face="Arial"></font></b></p> <p><b><font size="3" face="Arial">External value chains and value networks</font></b></p> <p><font size="3" face="Arial">Reduced time to market and increased customer responsiveness can be achieved through reviewing the efficiency of internal processes and how information systems are deployed. However, these goals are also achieved through consideration of how partners can be involved be part of the internal value chain of a company.</font></p> <p><font size="3" face="Arial">Since the 1980s there has been a tremendous increase in outsourcing of both core value-chain activities and support activities. As companies outsource more and more activities, management of the links between the company and its partners becomes more important. It describe value network management as:</font></p> <p><b><font size="3" face="Arial">The process of effectively deciding what to outsource in a constraint-based, real-time environment based on fluctuation.</font></b></p> <p><font size="3" face="Arial">Electronic communications have facilitated this shift to outsourcing, enabling the transfer of information necessary to create, manage and monitor partnerships. These links are not necessarily mediated directly through the company, but can take place through intermediaries known as value-chain integrators or directly between partners. </font></p> <p><font size="3" face="Arial">In addition to changes in the efficiency of value-chain activities, electronic commerce also has implications for whether these activities are achieved under external control or internal control. These changes have been referred to as value-chain disaggregation or deconstruction and value-chain re-aggregation or reconstruction. </font></p> <p><font size="3" face="Arial">Value-chain disaggregation can occur through deconstructing the primary activities of the value chain and then outsourcing as appropriate. Each of the elements can be approached in a new way, for instance by working differently with suppliers. In value-chain re-aggregation the value chain is streamlined to increase efficiency between each of the value-chain stages.</font></p> <p><font size="3" face="Arial">The value network offers a different perspective, which is intended to emphasize:</font></p> <p><font size="3" face="Arial">· <b>the electronic interconnections between partners and the organization and directly between partners</b> that potentially enable real-time information exchange between partners;</font></p> <p><font size="3" face="Arial">· <b>the dynamic nature of the network.</b> The network can be readily modified according to market conditions or in response to customer demands. New partners can readily be introduced into the network and others removed if they are not performing well;</font></p> <p><font size="3" face="Arial">· <b>different types of links can be formed between different types of partners.</b> For example, EDI links may be established with key suppliers, while e-mail links may suffice for less significant suppliers.</font></p> <p><font size="3" face="Arial">In the figure below, which is adapted from the model of Deise et al. (2000), shows some of the partners of a value network that characterizes partners as:</font></p> <p><font size="3" face="Arial">1. <b>supply-side partners</b> (upstream supply chain) such as suppliers, business-to-business exchanges, wholesalers and distributors;</font></p> <p><font size="3" face="Arial">2. <b>partners who fulfill primary or core value-chain activities.</b> The number of core value chain activities that will have been outsourced to third parties will vary with different companies and the degree of virtualization of an organization, which involves outsourcing non-core services;</font></p> <p><font size="3" face="Arial">3. <b>sell-side partners</b> (downstream supply chain) such as business-to-business exchanges, wholesalers, distributors and customers (not shown, since they are conceived as distinct from other partners);</font></p> <p><font size="3" face="Arial">4. <b>value-chain integrators or partners</b> who supply services that mediate the internal and external value chain. These companies typically provide the electronic infrastructure for a company and include strategic outsourcing partners, system integrators, ISPs and application service providers (ASPs).</font></p> <p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi8u-cx86CX-BWRegtLHBvTgeOh-FV50mvvaLa_9_PmTQbvioBOXOkBg1gDO-fAsPyMYZSwDcHmL9958U5hRdBUTHrtx4p0ouNYnl5uXkSHW_210mKFNylfzwtR9zKaRAV49Cz1SK707OZj/s1600-h/clip_image022%25255B4%25255D%25255B2%25255D.gif"><font size="3" face="Arial"><img style="background-image: none; border-right-width: 0px; margin: 0px; padding-left: 0px; padding-right: 0px; display: inline; border-top-width: 0px; border-bottom-width: 0px; border-left-width: 0px; padding-top: 0px" title="clip_image022[4]" border="0" alt="clip_image022[4]" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEikN-7E2Ys018aO-wrfP3A5vG0uiWLfAbdbxpfOduQqFO7nDivZWV62liX-VRoUHqtLDt3zaaEkyt5ZgXVgENOwaHlAkSmzl0z1R8vMsV8e1t4nyaEsAoMh0K3LtVchGnajfSnkJ-m7SaMn/?imgmax=800" width="244" height="170" /></font></a></p> <p><font size="3" face="Arial">Figure: Members of the value network of an organization</font></p> <p><b><font size="3" face="Arial">New channel structures</font></b></p> <p><font size="3" face="Arial">Channel structures describe the way a manufacturer or selling organization delivers products and services to its customers. The distribution channel will consist of one or more intermediaries such as wholesalers and retailers. For example, a music company is unlikely to distribute its CDs directly to retailers, but will use wholesalers which have a large warehouse of titles that are then distributed to individual branches according to demand. A company selling business products may have a longer distribution channel involving more intermediaries.</font></p> <p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjV3OAwct2VQt3KMsOrCbM1yNl65KQjsxCMMhhyphenhyphenCKTTy1xCzPW1Fjc_NlcWuRxTwX63XYwiA9iRWEfnBxmdz5jaDrgSqy6rgcaidIHnIqrbcN2g8ZLVgPXtZ2YHXG7_VDNwSvsA2DdVsO94/s1600-h/clip_image024%25255B4%25255D%25255B2%25255D.gif"><font size="3" face="Arial"><img style="background-image: none; border-right-width: 0px; margin: 0px; padding-left: 0px; padding-right: 0px; display: inline; border-top-width: 0px; border-bottom-width: 0px; border-left-width: 0px; padding-top: 0px" title="clip_image024[4]" border="0" alt="clip_image024[4]" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiedP2jXgC7fps9MivBbvfd9guZxefuO19rLglPuS0gGi0GWadWbM7PzmexW5TfUEm01n7ORdtK8QnL6SR4H4X7zpj3ODoL2YG3lmbfP9zF4mY446_FCVAS7tRiJhZv0OUDYSuvgMi3-QXV/?imgmax=800" width="244" height="90" /></font></a></p> <p><font size="3" face="Arial">Figure: Disintermediation of a consumer distribution channel showing: (a) the </font></p> <p><font size="3" face="Arial">original situation, (b) disintermediation omitting the wholesaler, and </font></p> <p><font size="3" face="Arial">(c) disintermediation omitting both wholesaler and retailer</font></p> <p><b><font size="3" face="Arial">Terms</font></b></p> <p><font size="3" face="Arial">· <b>Channel structure:</b> The configuration of partners in a distribution channel.</font></p> <p><font size="3" face="Arial">· <b>Disintermediation:</b> The removal of intermediaries such as distributors or brokers that formerly linked a company to its customers.</font></p> <p><font size="3" face="Arial">· <b>Reintermediation:</b> The creation of new intermediaries between customers and suppliers providing services such as supplier search and product evaluation.</font></p> <p><font size="3" face="Arial">· <b>Countermediation:</b> Creation of a new intermediary by an established company.</font></p> <p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgqSxiTNTkvqRAFVuv1R0StcI6d7uPjadyTtTZODU7klq8atbfdZeO5VRH9ONehYwa9CGVgmyEfDqZaI2FKRl_cuboR_AE6SIra2badEHNj5H-qag3gW-gl2G_5aAeVqgAKxvGa2dxcpGrF/s1600-h/clip_image026%25255B4%25255D%25255B2%25255D.gif"><font size="3" face="Arial"><img style="background-image: none; border-right-width: 0px; margin: 0px; padding-left: 0px; padding-right: 0px; display: inline; border-top-width: 0px; border-bottom-width: 0px; border-left-width: 0px; padding-top: 0px" title="clip_image026[4]" border="0" alt="clip_image026[4]" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjFdXBhE0PO9PCPnzykZAWdmO-g9wPpUpaiQJc4nRFtsG-SyDg0GekJbux3VzMS35WolVusovuP1zF3vBFZGlXO73f37lVXOUdC5y6ur-JMxRgKl8ur7dpe7cmHGusJ961ZLTYfIJxEmCF-/?imgmax=800" width="244" height="118" /></font></a></p> <p><font size="3" face="Arial">Figure: From (a) original situation to (b) disintermediation or (c) reintermediation or countermediation</font></p> <p><font size="3" face="Arial">A channel chain is similar – it shows different customer journeys for customers with different channel preferences. It can be used to assess the current and future importance of these different customer journeys. An example of a channel chain is shown in figure below.</font></p> <p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhHHuBFi2crzcF64-GF-0hRsWujqz9m5hP0KfRNscojA4ZBq6drtGdfmwtbqJXpsCVy8SRnCJrZrf-KsX5sefE8Yj2DrpdXbhXB_uun14gf43ECx0RQ8hDmOHs8Q0xANLuZvkdd5Y34jhvL/s1600-h/clip_image028%25255B4%25255D%25255B2%25255D.gif"><font size="3" face="Arial"><img style="background-image: none; border-right-width: 0px; margin: 0px; padding-left: 0px; padding-right: 0px; display: inline; border-top-width: 0px; border-bottom-width: 0px; border-left-width: 0px; padding-top: 0px" title="clip_image028[4]" border="0" alt="clip_image028[4]" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh5RCVi74msDC7Q8XP379InzWp7gY5aLu9xNcB2pbRW9rknE7zyf9Yx-6Yth89D2STSqNZjc0bzAF4ff9qI0UT4wJHeOH1HkpZu0hcudZW02Bdo0skIBsOW861ya3JQqFEGobJzxrayttvv/?imgmax=800" width="244" height="115" /></font></a></p> <p><font size="3" face="Arial">Figure: Example of a channel chain map for consumers selecting an estate agent to sell their property</font></p> <p><b><font size="3" face="Arial">Location of trading in marketplace</font></b></p> <p><font size="3" face="Arial">While traditional marketplaces have a physical location, Internet-based markets have no physical presence – it is a virtual marketplace. Rayport and Sviokla (1996) used this distinction to coin the new term electronic marketspace. This has implications for the way in which the relationships between the different actors in the marketplace occur. </font></p> <p><font face="Arial"><font size="3">The new electronic marketspace has many alternative virtual locations where an organization needs to position itself to communicate and sell to its customers. Thus, one tactical marketing question is <b>“What representation do we have on the Internet?”</b></font></font></p> <p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjVwz3oS4vMLVQdGsHUGAxu6tJ0LcJyAeZGtbF11PcSW51IIWsGKpKbevPyrmgDWejy2zgC7fcteb98OYi9Ya5XtkZBnYohxCgeJjXmu-lQNdVGuSCSmW5HLIx4hv4QtVBz4becI2bqmdVx/s1600-h/clip_image030%25255B4%25255D%25255B2%25255D.gif"><font size="3" face="Arial"><img style="background-image: none; border-right-width: 0px; margin: 0px; padding-left: 0px; padding-right: 0px; display: inline; border-top-width: 0px; border-bottom-width: 0px; border-left-width: 0px; padding-top: 0px" title="clip_image030[4]" border="0" alt="clip_image030[4]" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEheN8I1-X6iqQnjBVpVHbaF16vcqJPJgRcGd3NSVk-W7hmGSjip0DBs_gBQRsWWIAWL9-H4AcKmPHpV5-xo05zU6IubyMOj9K6iSqnjua-pJnrm_9b8HHC3P5nXFljlZ5PlUhbfkawDtZZp/?imgmax=800" width="244" height="134" /></font></a></p> <p><font size="3" face="Arial">Figure: Different types of online trading location</font></p> <p><font size="3" face="Arial">A particular aspect of representation that needs to be reviewed is the different types of marketplace location. They identify three key online locations for promotion of services and for performing ecommerce transactions with customers (Figure above).</font></p> <p><font size="3" face="Arial">The three options are:</font></p> <p><font size="3" face="Arial">§ <b>Supplier-controlled sites</b> (sell-side at supplier site, one supplier to many customers). This is the main web site of the company and is where the majority of transactions take place. Most e-tailers such as Amazon (www.amazon.com) or Dell (www.dell.com) fall into this category.</font></p> <p><font size="3" face="Arial">§ <b>Buyer-controlled sites</b> (buy-side at buyer site, many suppliers to one customer). These are intermediaries that have been set up so that it is the buyer that initiates the market-making. This can occur through procurement posting where a purchaser specifies what they wish to purchase, it is sent by e-mail to suppliers registered on the system and then offers are awaited. </font></p> <p><font size="3" face="Arial">§ <b>Neutral sites or intermediaries</b> (neutral location – many suppliers to many customers). For consumers evaluator intermediaries that enable price and product comparison have become commonplace as we have seen. B2B intermediaries are known as trading exchanges, marketplaces or hubs. </font></p> <p><b><font size="3" face="Arial">Commercial arrangement for transactions</font></b></p> <p><font size="3" face="Arial">Markets can also be considered from another perspective – that of the type of commercial arrangement that is used to agree a sale and price between the buyer and supplier. The main alternative commercial arrangements are shown in Table below that each of these commercial arrangements is similar to a traditional arrangement. Although the mechanism cannot be considered to have changed, the relative importance of these different options has changed with the Internet. </font></p> <p><font size="3" face="Arial">Table: Commercial mechanisms and online transactions</font></p> <p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjymv7Vtx0bUjhwzqScdhLdYd81gjAkNpi-vhfEo8kkSGXM9iCBx4M-OINPsEq5j-Y6rEqS_G4qHNVPCyOE0lq_UGKEWxoUMBdTDNQygkvfILo9h1_-Hg0rcrhYF8qZY3w5DTRPKbMH1DNg/s1600-h/clip_image032%25255B4%25255D%25255B2%25255D.gif"><font size="3" face="Arial"><img style="background-image: none; border-right-width: 0px; margin: 0px; padding-left: 0px; padding-right: 0px; display: inline; border-top-width: 0px; border-bottom-width: 0px; border-left-width: 0px; padding-top: 0px" title="clip_image032[4]" border="0" alt="clip_image032[4]" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgg7cCaasiPjuXUXgqd3P4TxnTlGkLgm0gn9w6Dgfuf-z7GRbmvq7-lAyc3sUydPirlcTT3mTWPOAkG9ioM3IX1d1DFfGALuGM1Tc3VJgcO1o12nnJCpEZ6Exatfg9BFgMB_phP-3zqGPt2/?imgmax=800" width="244" height="128" /></font></a></p> <p><font size="3" face="Arial">Owing to the ability to rapidly publish new offers and prices, auction has become an important means of selling on the Internet. A turnover of billions of dollars has been achieved by eBay from consumers offering items ranging from cars to antiques. Many airlines have successfully trialed auctions to sell seats remaining on an aircraft just before a flight.</font></p> <p><b><font size="3" face="Arial">Business models in e-commerce</font></b></p> <p><font size="3" face="Arial">A consideration of the different business models made available through e-commerce is of particular importance to both existing and start-up companies. It points out that existing businesses need to use the Internet to build on current business models while at the same time experimenting with new business models. </font></p> <p><font size="3" face="Arial">New business models may be important to gain a competitive advantage over existing competitors and at the same time head off similar business models created by new entrants. For start-ups or dot-coms the viability of a business model will be crucial to funding from venture capitalists. But what is a business model? Timmers (1999) defines a ‘business model’ as:</font></p> <p><b><font size="3" face="Arial">An architecture for product, service and information flows, including a description of the various business actors and their roles; and a description of the potential benefits for the various business actors; and a description of the sources of revenue.</font></b></p> <p><font size="3" face="Arial">It can be suggested that a business model for e-commerce requires consideration of the marketplace from several different perspectives:</font></p> <p><font size="3" face="Arial">· Does the company operate in the B2B or B2C arena, or a combination?</font></p> <p><font size="3" face="Arial">· How is the company positioned in the value chain between customers and suppliers?</font></p> <p><font size="3" face="Arial">· What is its value proposition and for which target customers?</font></p> <p><font size="3" face="Arial">· What are the specific revenue models that will generate different income streams?</font></p> <p><font size="3" face="Arial">· What is its representation in the physical and virtual world, i.e. high-street presence, online only, intermediary, mixture?</font></p> <p><font size="3" face="Arial">Timmers (1999) identifies no less than eleven different types of business model that can be facilitated by the web as follows:</font></p> <p><font size="3" face="Arial">1. <b>e-shop</b> – marketing of a company or shop via the web;</font></p> <p><font size="3" face="Arial">2. e-procurement – electronic tendering and procurement of goods and services;</font></p> <p><font size="3" face="Arial">3. <b>e-mall</b> – a collection of e-shops such as BarclaySquare (www.barclays-square.com);</font></p> <p><font size="3" face="Arial">4. <b>e-auctions</b> – these can be for B2C, e.g. eBay (www.ebay.com), or B2B, e.g. QXL (www.qxl.com);</font></p> <p><font size="3" face="Arial">5. <b>virtual communities</b> – these can be B2C communities such as Habbo Hotel for teenagers (www.habbo.com) or B2B communities such as Clearlybusiness (www.clearlybusiness.com/community) which are both important for their potential in e-marketing </font></p> <p><font size="3" face="Arial">6. <b>collaboration platforms</b> – these enable collaboration between businesses or individuals, e.g. E-groups (www.egroups.com), now part of Yahoo! (www.yahoo.com) services;</font></p> <p><font size="3" face="Arial">7. <b>third-party marketplaces</b> – marketplaces are intermediaries that facilitate online trading by putting buyers and sellers in contact. They are sometimes also referred to as ‘exchanges’ or ‘hubs’;</font></p> <p><font size="3" face="Arial">8. <b>value-chain integrators</b> – offer a range of services across the value chain;</font></p> <p><font size="3" face="Arial">9. value-chain service providers – specialise in providing functions for a specific part of the value chain such as the logistics company UPS (www.ups.com); </font></p> <p><font size="3" face="Arial">10. <b>information</b> brokerage – providing information for consumers and businesses, often to assist in making the buying decision or for business operations or leisure;</font></p> <p><font size="3" face="Arial">11. <b>trust and other services</b> – examples of trust services include Internet Shopping is Safe (ISIS) (www.imrg.org/isis) or TRUSTe (www.truste.org) which authenticate the quality of service and privacy protection provided by companies trading on the web. </font></p> <p><font size="3" face="Arial">Figure below suggests a different perspective for reviewing alternative business models. There are three different perspectives from which a business model can be viewed. Any individual organization can operate in different categories, as the examples below show, but most will focus on a single category for each perspective. Such a categorization of business models can be used as a tool for formulating e-business strategy.</font></p> <p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi3M5Lp_V_jgqyvaz2ofhQSmzyN8TWxtwYJixyu3IdPAvHH49uexJufJDR1LEDbNKIfqhS6JEBvUko7gqzNkpRAyxBGTMI7_LVhU2Nuvi1_tumYMwSEWY3k2kblhIufR_qlH5iYh97nKYlT/s1600-h/clip_image034%25255B4%25255D%25255B2%25255D.gif"><font size="3" face="Arial"><img style="background-image: none; border-right-width: 0px; margin: 0px; padding-left: 0px; padding-right: 0px; display: inline; border-top-width: 0px; border-bottom-width: 0px; border-left-width: 0px; padding-top: 0px" title="clip_image034[4]" border="0" alt="clip_image034[4]" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhlqscuEC5Sv7_MdHo1ubtX88JdZ6XKFCUHwqXDLwLN__-HhqXubvNjsfVAgqJ60ODwd8M-qOF2dzyNiib12PJSZ7jGwycW45VmoljS3hmO2QMQ2643HVs5RnYdjoX52XAKwa7uDGjIM3mq/?imgmax=800" width="244" height="173" /></font></a></p> <p><font size="3" face="Arial">Figure: Alternative perspectives on business models</font></p> <p><font size="3" face="Arial">The three perspectives, with examples are:</font></p> <p><font size="3" face="Arial">1. <b>Marketplace position perspective.</b> The book publisher is the manufacturer, Amazon is a retailer and MSN is a retailer, marketplace intermediary and media owner.</font></p> <p><font size="3" face="Arial">2. <b>Revenue model perspective.</b> The book publisher can use the web to sell direct and MSN and Amazon can take commission-based sales. Yahoo! also has advertising as a revenue model.</font></p> <p><font size="3" face="Arial">3. <b>Commercial model perspective.</b> All three companies offer fixed-price sales, but in its place as a marketplace intermediary, MSN also offers other alternatives.</font></p> <p><font size="3" face="Arial">Michael Porter (2001) urges caution against overemphasis on new business or revenue models and attacks those who have suggested that the Internet invalidates his well-known strategy models. He says:</font></p> <p><i><font size="3" face="Arial">Many have assumed that the Internet changes everything, rendering all the old rules about companies and competition obsolete. That may be a natural reaction, but it is a dangerous one . . . [companies have taken] decisions that have eroded the attractiveness of their industries and undermined their own competitive advantages. </font></i></p> <p><font size="3" face="Arial">He gives the example of some industries using the Internet to change the basis of competition away from quality, features and service and towards price, making it harder for anyone in their industries to turn a profit.</font></p> <p><b><font size="3" face="Arial">Revenue models</font></b></p> <p><font size="3" face="Arial">Revenue models specifically describe different techniques for generation of income. The main revenue models are shown in the second column of Figure above. For existing companies, revenue models have been based upon the income from sales of products or services. This may be either for selling direct from the manufacturer or supplier of the service or through an intermediary that will take a cut of the selling price. Both of these revenue models are, of course, still crucial in online trading. There may, however, be options for other methods of generating revenue: perhaps a manufacturer may be able to sell advertising space or sell digital services that were not previously possible.</font></p> <p><font face="Arial"><font size="3"><b>Revenue models:</b> Describe methods of generating income for an organization.</font></font></p> <p><font face="Arial"><font size="3"><b>2. </b><b>Customer</b></font></font></p> <p><font size="3" face="Arial">Situation analysis related to customers is very important to setting realistic objectives estimates for online customers and developing appropriate propositions for customers online. Customer-related analysis can be divided into two. First, understanding the potential and actual volume of visitors to a site (demand analysis) and the extent to which they convert to outcomes on the site such as leads and sales (conversion modeling). Secondly, we need to understand the needs, characteristics and buyer behavior of online customers, often collectively referred to as customer insight.</font></p> <p><b><font size="3" face="Arial"></font></b></p> <p><b><font size="3" face="Arial">Demand analysis and conversion modeling</font></b></p> <p><font size="3" face="Arial">It is essential for Internet marketing and e-marketing managers to understand the current levels and trends in usage of the Internet for different services and the factors that affect how many people actively use these services. This evaluation process is demand analysis. If customer usage of online media is evaluated for customers in a target market, companies can identify the opportunity for influencing and delivering sales online. </font></p> <p><font size="3" face="Arial">They can also understand the drivers to usage and barriers to increased usage and so encourage adoption of online channels by emphasizing the benefits in their communications and explaining why some of the barriers may not be valid. For example, marketing communications can be used to explain the value proposition and reduce fears of complexity and security. Surveys reported in the social factors section of the next chapter show that the following are important factors in governing adoption of the Internet:</font></p> <p><font size="3" face="Arial">1. Cost of access.</font></p> <p><font size="3" face="Arial">2. Value proposition.</font></p> <p><font size="3" face="Arial">3. Perception of ease of use.</font></p> <p><font size="3" face="Arial">4. Perception of security.</font></p> <p><b><font size="3" face="Arial">Terms:</font></b></p> <p><font size="3" face="Arial">· <b>Customer insight:</b> Knowledge about customers’ needs, characteristics, preferences and behaviors based on analysis of qualitative and quantitative data. Specific insights can be used to inform marketing tactics directed at groups of customers with shared characteristics.</font></p> <p><font size="3" face="Arial">· <b>Demand analysis:</b> Quantitative determination of the potential usage and business value achieved from online customers of an organization. Qualitative analysis of perceptions of online channels is also assessed.</font></p> <p><font size="3" face="Arial">· <b>Conversion marketing:</b> Using marketing communications to maximize conversion of potential customers to actual customers.</font></p> <p><font size="3" face="Arial">· <b>Clickstream:</b> The sequence of clicks made by a visitor to the site to make a purchase.</font></p> <p><b><font size="3" face="Arial"></font></b></p> <p><b><font size="3" face="Arial">Assessing demand for e-commerce services</font></b></p> <p><font size="3" face="Arial">To set realistic strategic objectives such as leads or sales levels for online revenue contributions for digital channels, e-marketing managers need to assess the level of customer Internet access and activity for different markets and the online market share that a particular organization has achieved. For each customer segment and for each digital channel such as Internet, interactive digital TV or mobile we need to work to assess the volume and share of customers who:</font></p> <p><font size="3" face="Arial">1. Have access to the digital channel;</font></p> <p><font size="3" face="Arial">2. Are influenced by using the digital channel but purchase using another channel as part of the multi-channel buyer behavior;</font></p> <p><font size="3" face="Arial">3. Purchase using the digital channel.</font></p> <p><font size="3" face="Arial">This can be simplified to the ratios: ‘Access : Choose : Buy’. This information can be gathered as secondary research by the researcher by accessing published research for different sectors. Primary research can be used to better understand these characteristics in the target market.</font></p> <p><b><font size="3" face="Arial">Conversion models</font></b></p> <p><font size="3" face="Arial">As part of situation analysis and objective setting, experienced online marketers build conversion or waterfall models of the efficiency of their web marketing. Using this approach, the total online demand for a service in a particular market can be estimated and then the success of the company in achieving a share of this market determined. Conversion marketing tactics can then be create as many potential site visitors into actual visitors and then convert these into leads, customers and repeat visitors. A widely quoted conceptual measurement framework based on the industrial marketing concepts of purchasing decision processes and hierarchy of effects models, which can be applied for conversion marketing. The model assesses efficiency of offline and online communications in drawing the prospect through different stages of the buying decision. The main measures defined in the model are the following ratios:</font></p> <p><font size="3" face="Arial">· <b>Awareness efficiency:</b> target web-users/all web-users.</font></p> <p><font size="3" face="Arial">· <b>Locatability or attractability efficiency:</b> number of individual visits/number of seekers.</font></p> <p><font size="3" face="Arial">· <b>Contact efficiency:</b> number of active visitors/number of visits.</font></p> <p><font size="3" face="Arial">· <b>Conversion efficiency:</b> number of purchases/number of active visits.</font></p> <p><font size="3" face="Arial">· <b>Retention efficiency:</b> number of repurchases/number of purchases.</font></p> <p><b><font size="3" face="Arial">Evaluating demand levels</font></b></p> <p><font size="3" face="Arial">We will now review each of the following three factors that affect demand for e-commerce services in a little more detail, starting with consumers in the B2C marketplace.</font></p> <p><font size="3" face="Arial">1. Internet access</font></p> <p><font size="3" face="Arial">2. Consumers influenced by using the online channel</font></p> <p><font size="3" face="Arial">3. Purchased online</font></p> <p><b><font size="3" face="Arial">Customer characteristics</font></b></p> <p><font size="3" face="Arial">Understanding the nature of customers is fundamental to marketing practice and it is equally important online. A further technique that can be used as part of situation analysis is customer scenario and persona analysis, which is an online technique for user- or customer-centric web site design. </font></p> <p><font size="3" face="Arial">This is an extension of the traditional marketing approach of psychographic segmentation. See the box ‘Psychographic segmentation for transactional e-commerce’ for an example of this type of segmentation applied to online purchase behavior. Which profile do you fit?</font></p> <p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEifdO7UEiIJI-vNvLY_xL4m06wjLSoz1bEt_UPSlZqAFNF6R0EekrWGDHkEj5i0GUMEAJttn4Dht89T1ZnKMQgGmS0ODLgqe2wr-O4JhDGl8fJ_TF21ZC60UGZ5S7aGrwJ5qQKFn-hLiHfF/s1600-h/clip_image036%25255B4%25255D%25255B2%25255D.gif"><font size="3" face="Arial"><img style="background-image: none; border-right-width: 0px; padding-left: 0px; padding-right: 0px; display: inline; border-top-width: 0px; border-bottom-width: 0px; border-left-width: 0px; padding-top: 0px" title="clip_image036[4]" border="0" alt="clip_image036[4]" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjOvac2Ceq2aLkrEcHmrOudHT9jAb_oCo2MDRVk91occbvvi3htr4cEkXixxYQocuheTZ_80Z4MJHEQ4ht3_7DmuMyideaEX2WKJCoKqOA_AAvDK2WjlUeRuGPXQvjXUpfm3qemNaU9Utd6/?imgmax=800" width="244" height="212" /></font></a></p> <p><b><font size="3" face="Arial"></font></b></p> <p><b><font size="3" face="Arial">Terms:</font></b></p> <p><font size="3" face="Arial">· <b>Psychographic segmentation:</b> A breakdown of customers according to different characteristics. </font></p> <p><font size="3" face="Arial">· <b>Demographic characteristics:</b> Variations in attributes of the populations such as age, sex and social class.</font></p> <p><b><font size="3" face="Arial"></font></b></p> <p><b><font size="3" face="Arial">Demographic characteristics</font></b></p> <p><font size="3" face="Arial">Within each country, adoption of the Internet also varies significantly according to individual demographic characteristics such as sex, age and social class or income. This analysis is important as part of the segmentation of different groups within a target market. Since these factors will vary throughout each country there will also be regional differences. Access is usually much higher in capital cities. </font></p> <p><font size="3" face="Arial">From Activity 2.5 it can be seen that the stereotype of the typical Internet user as male, around 30 years of age and with high disposable income no longer holds true. Many females and more senior ‘silver surfers’ are also active.</font></p> <p><font size="3" face="Arial">To fully understand online customer access we also need to consider the user’s access location, access device and ‘webographics’, all of which are significant for segmentation and constraints on site design. ‘Webographics’ is a term coined by Grossnickle and Raskin (2001). According to these authors webographics includes:</font></p> <p><font size="3" face="Arial">· <b>Usage location.</b> In most countries, many users access either from home or from work, with home being the more common location. Work access places constraint on Internet marketers since firewalls will not permit some plug-ins or rich e-mail to be accepted.</font></p> <p><font size="3" face="Arial">· <b>Access device.</b> For example, browser type, screen resolution and computer platform (available from web analytics services as described in Chapter 9), digital TV or mobile phone access.</font></p> <p><font size="3" face="Arial">· <b>Connection speed</b> – dial-up or different choice of broadband speed.</font></p> <p><font size="3" face="Arial">· <b>ISP</b> – a portal-based ISP such as AOL or Wanadoo, or an ISP which does not provide any additional content.</font></p> <p><font size="3" face="Arial">· <b>Experience level</b> – length of time using the web and their familiarity with online purchase.</font></p> <p><font size="3" face="Arial">· <b>Usage type</b> – mode of usage, for example, work, social, entertainment.</font></p> <p><font size="3" face="Arial">· <b>Usage level</b> – frequency of use and length of sessions giving total usage level in minutes per month.</font></p> <p><b><font size="3" face="Arial">Online demand for business services</font></b></p> <p><font size="3" face="Arial">We now turn our attention to how we assess online customer demand and characteristics for business services. The B2B market is more complex than that for B2C in that variation in online demand or research in the buying process will occur according to different types of organization and people within the buying unit in the organization. We need to profile business demand according to:</font></p> <p><b><font size="3" face="Arial">Variation in organization characteristics</font></b></p> <p><font size="3" face="Arial">· size of company (employees or turnover)</font></p> <p><font size="3" face="Arial">· industry sector and products</font></p> <p><font size="3" face="Arial">· organization type (private, public, government, not-for-profit)</font></p> <p><font size="3" face="Arial">· application of service (which business activities do purchased products and services support?)</font></p> <p><font size="3" face="Arial">· country and region.</font></p> <p><b><font size="3" face="Arial">Individual role</font></b></p> <p><font size="3" face="Arial">· role and responsibility from job title, function or number of staff managed</font></p> <p><font size="3" face="Arial">· role in buying decision (purchasing influence)</font></p> <p><font size="3" face="Arial">· department</font></p> <p><font size="3" face="Arial">· product interest</font></p> <p><font size="3" face="Arial">· demographics: age, sex and possibly social group.</font></p> <p><font size="3" face="Arial">For generating demand estimates, we can also profile business users of the Internet in a similar way to consumers by assessing the following three factors.</font></p> <p><font size="3" face="Arial">1. The percentage of companies with access</font></p> <p><font size="3" face="Arial">2. Influenced online</font></p> <p><font size="3" face="Arial">3. Purchase online</font></p> <p><font face="Arial"><font size="3"><b>3. </b>Online Buyer Behavior</font></font></p> <p><font face="Arial"><font size="3"><b>4. </b>Competitors</font></font></p> <p><font face="Arial"><font size="3"><b>5. </b>Suppliers</font></font></p> <p><font face="Arial"><font size="3"><b>6. </b>Intermediaries</font></font></p> <p><font size="3" face="Arial"></font></p> Unknownnoreply@blogger.com2tag:blogger.com,1999:blog-8026107156838764510.post-43177854370853526412009-03-12T21:57:00.000-07:002009-03-12T22:10:52.333-07:00Three Rats by WILFRIDO MA. GUERRROTHREE RATS<br />-WILFRIDO MA. GUERRRO<br /><br />CHARACTERS:<br /> Gonzalo<br /> Nita (his wife)<br /> Adrian (his best friend)<br /><br />PLACE: -- Forbes Park, a suburb near Manila<br />SCENE: <br /> The living room. A coffee-table in front of the sofa. On left side, a large balcony through which the street lights pour in. On a table near the balcony are a telephone and a lamp. A floor-lamp beside the sofa. Magazines on the tables. The room re¬veals the refined taste of the owners.<br /><br />TIME: Evening, about nine o'clock. August. <br /> GONZALO is seated on the sofa, reading the paper. GONZALO is tall, with a compelling personality. About twenty-seven, he possesses a warm and attractive charm, except for his piercing eyes which can flash with contempt when the occasion demands. He wears a well-cut suit, and a flashing red tie. He speaks with a low cares¬sing voice. <br /> NITA, his wife, comes in with a large tray, with a pot of coffee and two cups, etc. NITA is an attractive woman of nineteen. She is rather short, with laughing eyes and a gentle voice. Her ex¬pression is innocent, and there is a subtle air of adolescence about her. She wears a striking evening gown. <br /><br />NITA: Here's the coffee, Gonzalo. (She sets the tray on the table.) <br /><br />GONZALO: (Without lifting his eyes from the paper) Is it hot? <br /><br />NITA: (Laughing) -- Boiling. (She pours a cup and gives it to him.) Here. (He takes his cup, slowly sips it, without taking his eyes off the paper.) You must be tired from your trip to Baguio. <br /><br />GONZALO: Not at all, Nita. <br /><br />NITA Two whole weeks. Long enough for me. I was – lonely. <br /><br />GONZALO Were you? (Looks at her briefly.) <br /><br />NITA Of course, Gonzalo. I forgot to tell you. I dismissed the maid this morning. I couldn't stand her insolent ways.<br /><br />GONZALO. Cora insolent? I never noticed it She was quite efficient, it seems to me -- and we've had her for a good many years <br /><br />NITA. (Laughing again). No, Gonzalo, remember? We got her when we were married-- and we have been married only seven months (She sits beside her husband and puts her arm around him). Do you know that the prices of canned goods have gone up?-- And it took me a long time before I could find the right pair of shoes to go with this dress.. Luckily I found what I wanted at Rustan's. By the way, Menchu came this. afternoon and brought me the towels<br /><br />GONZALO. Hmm? <br /><br />NITA. You aren't listening, Gonzalo. <br /><br />GONZALO. Who did you say came? <br /><br />NITA. Menchu. I had her initial the new towels They turned out to be perfectly charming. Your initials are in blue.<br /><br />GONZALO. You said somebody came this afternoon? <br /><br />NITA. (Laughing long). Yes, Menchu, the woman who does the embroidery. <br /><br />GONZALO. Ah yes. Sorry, Nita. Who else?<br /> <br />NITA. No one else, Gonzalo. (She starts imperceptibly, a flitting across her face. But all this Gonzalo does not notice. Suddenly he puts dawn the paper and stares at her dress, NITA sits, inexplicably tense.) <br /><br />GONZALO. Nita. <br /><br />NITA. (With a slight trembling of the voice).. Yes? <br /><br />GONZALO. How come? <br /><br />NITA. What do you mean? <br /><br />GONZALO. What are you all dressed up for?. (NITA relaxes and laughs again)<br /> <br />NITA. Like it? <br /><br />GONZALO. Exquisite. <br /><br />NITA. I'm glad it's to your taste. I’m merely trying it on for the big day tomorrow.<br /> <br />GONZALO. Tomorrow? <br /><br />NITA. You haven't forgotten, Gonzalo?<br /><br />GONZALO. Frankly-- it escapes my memory. <br /><br />NITA. Our wedding sort-- of-- anniversary. <br /><br />GONZALO. Our first anniversary? <br /><br />NITA. (Bursting out Laughing.) No, no, Gonzalo We've been married only seven months. We decided, during out honeymoon -- remember? -- to celebrate our anniversary every month of our marriage. <br /><br />GONZALO Ah, this beautiful forgetful memory of mine. <br /><br />NITA (Playfully) Yes, I know it has been getting worse lately. Two weeks ago, before you went up to Baguio, we decided to go out and celebrate at the Jai-Alai that's where we met for the first time-- a year ago. <br /><br />GONZALO. Or like it, definitely. <br /><br />NITA. (Mockingly, but hurt). Well, I am flattered. Husbands are so hard to please these days. <br /><br />GONZALO. Where did we celebrate last month? <br /><br />NITA. We went to Hilton. <br /><br />GONZALO. And the month before that? <br /><br />NITA. May I refresh your failing memory? The month before last we had supper at Bon Vivant-- and the previous month we went to La Parrilla and afterwards to Manila Hotel for dancing. <br /><br />GONZALO. The first month? <br /><br />NITA. We went, to that panciteria on Carvajal street. <br /><br />GONZALO. Couldn't we go tomorrow to another panciteria and just have siopao and arroz caldo? <br /><br />NITA. Oh no, Gonzalo! I want to show off my beautiful dress! <br /><br />GONZALO: As you wish, Nita. Know something? <br /><br />NITA What? <br /><br />GONZALO. You look as beautiful and as young as that night we met. <br /><br />NITA, But, Gonzalo, do you expect me to turn into an old hag so soon? <br /><br />GONZALO. I must buy you a present then. What would you like? <br /><br />NITA. How much can you afford? <br /><br />GONZALO. The sky's the limit-- <br /><br />NITA. Is business that good?' <br /><br />GONZALO. I closed a big deal in Baguio¬ <br /><br />NITA I saw a diamond bracelet at Estrella del Sur that simply took my breath away. <br /><br />GONZALO. How much? <br /><br />NITA. A bargain, practically. <br /><br />GONZALO. How much of a bargain?<br /><br />NITA. Ten thousand (GONZALO gives a low whistle. NITA laughs too. She stands up.) That's too much, I know. I was only kidding. But you did' say the sky's the limit, so¬— <br /><br />GONZALO. You heard right, Nita. Buy it. <br /><br />NITA. (Embracing him) -- Oh Gonzalo, thanks! I'm a lucky wo¬man to have such a wonderful husband, (GONZALO smiles briefly, but there is irony in his smile. NITA starts putting the cups on the tray.) <br /><br />GONZALO. Nita, did a man come this afternoon? <br /><br />NITA. (Stiffening imperceptibly). A man? why-- no. <br /><br />GONZALO. I mean-- I sent a man to fix the TV set. <br /><br />NITA. No, nobody came-- aside from Menchu. But there's nothing wrong with our TV, Gonzalo. I was watching my favorite program half an hour ago. (GONZALO, aware that his wife it staring at him, tries to laugh it off.) <br /><br />GONZALO. I'm sorry-- an agent was selling me a new TV set this morning-- and I thought I had bought it-- oh, what am I saying? This splendid memory of mine, Nita<br /> <br />NITA. (Smiling). And you at the decrepit age of twenty-- seven. GONZALO. (Changing the subject). The coffee still warm? <br /><br />NITA. (Touching the pot). It is (She fills up his cup again. GONZALO has sat down... As he drinks his coffee, NITA, her back to him, is arranging the tray. <br /><br />GONZALO takes out a piece of paper and unfolds it. NITA turns and sees it.) What's that, Gonzalo? <br /><br />GONZALO.. (Quietly). Cyanide. <br /><br /> NITA. Cyanide? <br /><br />GONZALO. Potassium cyanide. <br /><br />NITA. Is it dangerous? <br /><br />GONZALO. It should be. People are known to commit murder or suicide-- with it. <br /><br />NITA. Is it that fatal? <br /><br />GONZALO. Those are the rumors. <br /><br />NITA. (Alarmed). Why do you carry it around with you? <br /><br />GONZALO. Oh-- just as a joke. <br /><br />NITA. Gonzalo! Carrying poison around isn't a joke. <br /><br />GONZALO. Well, it isn't the kind of a joke the average person would indulge in, but, Nita, don't bother your pretty little head about it. Cyanide is sold in drugstores, and you wouldn't order closing the drugstores because of it, would you? <br /><br />NITA. (Sitting beside him). Why, in heaven's name, do you have that poison with you? <br /><br />GONZALO: It isn't just ordinary poison-- it's an unusual one. I use it in my business. Cyanide is a necessary ingredient in the plating process. We couldn't do without it. <br /><br />NITA. I understand now, Gonzalo. But I still think you should throw it away. (Taking two or three crystals of cyanide, GONZALO drops them inside the cup. NITA gasps softly.) Gonzalo! <br /><br />GONZALO; Will you stop worrying? You can throw it away later <br /><br />NITA. But the cup-- <br /><br />GONZALO You can throw away the cup and the cyanide together. <br /><br />NITA But the cup is from my favorite coffee set. Adrian gave it to us. <br /><br />GONZALO He did? <br /><br />NITA It was his wedding present.... Oh Gonzalo, your memory! <br /><br />GONZALO I can always buy you another. <br /><br />NITA You wouldn't find another like it, even if you looked all over town. <br /><br />GONZALO One set is as good as another. <br /><br />NITA (Softly but with a strained tone). No, it isn't, Gonzalo. The sentimental value -- <br /><br />GONZALO. People attach too much importance to sentimental value. One should attach himself to nothing and to nobody. (NITA looks at him, aghast) <br /><br />NITA (Slowly and softly, as if afraid to contradict him). How can you say that, Gonzalo? Attach oneself to nothing and to nobody. Don't I mean anything to you? And Adrian -- your best friend -- you've always been so attached to him. <br />(GONZALO stares at her briefly, smiles feebly, and goes to her.) <br /><br />GONZALO Sorry Nita, Business worries and all that sort of thing. You know how deeply attached I am to you. <br /><br />NITA And to Adrian. <br /><br />GONZALO And to Adrian. <br /><br />NITA The doctor told you time and time again to take good care of your hyperthyroid. You refuse to take Lugol. He also told you to avoid any emotional strain. <br /><br />GONZALO I know, Nita, I know. All this irritability and my high-- strung condition -- <br /><br />NITA (With a conciliatory tone). You should have taken a good rest in Baguio, instead of rushing about with your business-- <br /><br />GONZALO I did try to rest up there, but something unexpected came up -- I got through with my business sooner than I expected. <br />NITA Something unexpected? Something serious? <br /><br />GONZALO No, nothing important really. (Changing his tone.) By the way, has Adrian been around? <br /><br />NITA Not since you left two weeks ago. <br /><br />GONZALO Does he know I am back? <br /><br />NITA How could he? You arrived only a few hours ago. <br /><br />GONZALO Nita, please bring me some whisky, please. <br />(NITA picks up her cup and puts it in the tray.) <br /><br />GONZALO (Laughingly). You know what your cousin Chita once said at a party? She said that Filipinos who have bars in their homes are cheap imitators of Hollywood and the American ways, and -- guess what else she said? <br /><br />GONZALO; What? <br /><br />NITA. She said drinking in one's home is a sign of decadence. Can you imagine her insolence? <br /><br />GONZALO. Perhaps she's right, Nita. Perhaps we're becoming decadent (GONZALO still holds the cup with cyanide in it; NITA puts Out her hand to get the cup, when the telephone Tint'. NITA grows slightly tense. She puts down the tray and is about to answer the telephone, but GONZALO rises abruptly, still holding the cup, and goes to the table.) -- Hello?-- Adrian (NITA becomes apprehensive.) Well-- talk about the devil! Nita and I were just talking about you. (NITA pretends to busy herself with the tray, but she is listening.) Oh, I arrived a few hours ago. Where are you now? In the drugstore across the street? Well, drop over. When? Right now-- No, no, Nita and I are still awake. I'll give you exactly one minute. (He promptly puts down the receiver. GONZALO has left the cup on the table.) <br /><br />NITA. What did he want? <br /><br />GONZALO. Nothing. He said he was calling from the drugstore. How did he know I was back? <br /><br />NITA. He probably heard about it. <br /><br />GONZALO. (After a brief pause.) Naturally. <br /><br />NITA. (Taking the tray). I'll get the whisky-- (She goes out. GONZALO sits immobile. His eyes turn to the table where the fatal cup lies. He stands up, picks up the cup, and puts it down again. He goes to the balcony, waves his hand at someone he has seen. NITA comes in with a tray.) <br /><br /> GONZALO. Adrian is here! <br /> (NITA sets the tray on the low table, as ADRIAN comes in. ADRIAN is twenty4ive, with a boyish personality. He wears a pair of brown pants and a light-colored coat. He carries his clothes indifferently. He smokes incessantly. His voice is slightly high-pitched but pleasant. He goes to GONZALO and shakes hands). <br /><br />ADRIAN. When did you get back? <br /><br />GONZALO. Didn't you know I was back? <br /><br />ADRIAN. (flushing). Why-- er-- yes. I missed you, Gonzalo. (Turning to NITA.) Hello, Nita. Stepping. out? <br /><br />NITA. (Pointing to her dress). Oh, this? No, just trying it on (GONZALO has motioned ADRIAN to sit down.) <br /><br />GONZALO. Whisky, Adrian? <br /><br />ADRIAN. You know. I never touch it. <br /><br />NITA. How about some coffee? <br /><br />ADRIAN. I don't mind. (NITA goes out.) <br /><br />GONZALO. Where have you been hiding yourself? <br /><br />ADRIAN. I've been very busy lately. <br /><br />GONZALO You and your restless nature. You have passed the bar exams. Why don't you get settled once and for all? <br /><br />ADRIAN I will Gonzalo, I will. <br /><br />GONZALO What did you call me up for just now. Adrian? <br /> (ADRIAN hesitates briefly.) <br /><br />ADRIAN Er -- my cigaret case. The plating. finished? <br /><br />GONZALO. It was ready before I left for Baguio. I have it here with me. (Takes cigaret case from his pocket.) You'll hardly recognize it. It looks like new. <br /><br />ADRIAN. This was a present from you-- our college graduation, re¬member? <br /><br />GONZALO Yes, I remember. the saleslady told me it was gold, -- but it turned out to be only gold plated. <br /><br />ADRIAN Youtre looking fine, Gonzalo. <br /><br />GONZALO Frankly, I lost a few pounds. (GONZALO goes near the balcony, lights a cigaret.) By the way, Adrian, were you here this afternoon? <br /><br />ADRIAN. Yes, Gonzalo. <br /><br />GONZALO. At what time? <br /><br />ADRIAN. I came at about two, but the maid told me Nita was asleep, so I left. I thought perhaps you had already arrived from Baguio. Didn't the maid tell you? <br /><br />GONZALO. (Picking up the cup and setting it down). Oh yes she told me. (NITA comes in with the coffee tray, but has forgotten to bring in cups. She puts it down on the coffee ta¬ble. ADRIAN feels the pot.) <br /><br />ADRIAN. Ouch! Boiling! <br /><br />NITA. Gonzalo likes it that way. <br /><br />ADRIAN. I'll wait till it cools off a little. <br /><br />GONZALO. (Filling up his glass with more whisky). As you wish. (NITA sits beside GONZALO.) <br /><br />NITA. You know what your friend Gonzalo said a while ago? <br /><br />ADRIAN. Not unless you tell me-- <br /><br />NITA. He said, and I quote: "One should attach himself to nothing and to nobody." <br /><br />ADRIAN. Did you really, Gonzalo? <br /><br />GONZALO. I don't remember. <br /><br />NITA Imagine Gonzalo talking like that, when he talked so much -- about you before we got married. In fact, once or twice we had a quarrel because he insisted on repeating "Adrian said this and Adrian said that and Adrian and I did this-- " (Pause) How. old were you when you became friends?' <br /><br />ADRIAN.. I was about ten then. <br /><br />GONZALO. Adrian and I went to grade school together. <br /><br />NITA. You managed to be classmates all the time? <br /><br />GONZALO. We managed. <br /><br />NITA. But aren't you older? <br /><br />GONZALO. By tad years. Once, in seventh grade, the. teacher in¬sisted on putting us <br />in separate sections. <br /><br />ADRIAN. The teacher thought I was smarter and should be in Sec¬tion A. <br /><br />GONZALO. But Adrian went to the principal's office and pleaded-- <br /><br />ADRIAN I won. We both stayed in the same section. <br /><br />NITA. Section A? <br /><br />ADRIAN. No, Section C. (They laugh.) <br /><br />GONZALO. Adrian looked so boyish then-- he was considered the best-looking in school-- that I used to tease him by calling him Baby- Face. <br /><br />NITA. He still retains much of that baby-like expression, doesn't he? (They laugh again. GONZALO grows serious.) <br /><br />GONZALO. Adrian had a characteristic then. <br /><br />ADRIAN. Yeah? What was that? <br /><br />GONZALO. Mind you, I am not saying you still have it-- besides, it wasn't anything usual. <br /><br />NITA. A characteristic? <br /><br />GONZALO. Adrian was seldom satisfied with what he had. Once-- in high school-- <br /><br />NITA. I see your memory is still good, Gonzalo. <br /><br />GONZALO. (Quietly). Yes, strange how oftentimes our memory vividly relives incidents hidden in our past-- <br /><br />ADRIAN. Go ahead. You were saying-- <br /><br />GONZALO. Well, my mother gave me, on my birthday, a linen suit. Adrian liked it so much he insisted on borrowing it every Sunday. He had other suits, but he fell in love with this particular one. <br /><br />NITA. What happened? <br /><br />GONZALO. I finally gave it to him. <br /><br />ADRIAN. (Laughing). I don't recall that incident. <br /><br />GONZALO. And on another occasion Nita. Guess what I found this afternoon, while looking over some papers? Some pictures of our wedding. <br /><br />GONZALO. (Suddenly). Not becoming sentimental at so early a stage of our marriage, are you, Nita? <br /><br />NITA. I. know, but Adrian was best man-- and he looked so funny in one of the pictures. He was staring at me, while you, Gonzalo, were looking somewhere else. <br /><br />ADRIAN. Let me see it. I haven't seen any of the wedding pictures <br /><br />NITA. I'll get them. (NITA goes out. GONZALO walks over to the table, picks-up the poisoned cup and places is on the low table in of the sofa.) <br /><br />ADRIAN. Gonzalo- I'm glad you're back. (GONZALO looks at ADRIAN for a brief moment. With the usual clairvoyance of old friends being able to read each others expression, GONZALO goes to ADRIAN and puts his arm around him.) <br /><br />GONZALO. What's wrong? <br /><br />ADRIAN. I-er-I'm in trouble again. <br /><br />GONZALO; Financial? (ADRIAN nods sheepishly.) How much is it this time? <br /><br />ADRIAN. Quite a sum. <br /><br />GONZALO. One thousand? <br /><br />ADRIAN. Two and a half. (GONZALO takes out his check book and pen, and sits down.) <br /><br />GONZALO. Poker? <br /><br />ADRIAN. Races and Jai-Alai. (GONZALO writes out the amount.) <br /><br /> GONZALO. (Giving him the check). You haven't changed, Adrian. (After a pause.) No woman trouble? <br /><br />ADRIAN. (Taking the check). Thanks. You know I've never had much use for women. <br /><br />GONZALO. It's about time you started looking for someone to settle down with. <br /><br />ADRIAN. If I find the right girl- <br /><br />GONZALO. And your idea of the right woman? <br /><br />ADRIAN. You know what my idea of the right girl- <br /><br />GONZALO. I still remember it. "She must be serious and intelligent-she must be a virgin and-" <br /><br />ADRIAN. Can you find a woman like that nowadays? <br /><br />GONZALO. There aren't many, I admit, but if you look hard enough- (NITA comes in.) <br /><br />NITA. Here it is. (Both men look at the picture, and then burst out laughing). <br /><br />ADRIAN. Gonzalo looked scared or something. <br /><br />GONZALO. I was. The last words in the ritual "-till death do us part' were still <br />ringing in my ears-and the doctor had just told me I might live up to seventy. (NITA laughs long and loud.) <br /><br />NITA. Look who's talking? I hope to live up to eighty myself. <br /><br />GONZALO. (As he pours himself another drink). You know, Adrian was always an <br />idealist. That's why he hasn't married yet. He's twenty-four <br /><br />ADRIAN. Twenty-five. <br /><br />NITA. I like the cold-blooded callousness with which men reveal their age <br /><br />GONZALO. I remember. during our college days-- Adrian fell in love once. When he <br />found out the girl had a regular boy friend, he gave her up. <br /><br />NITA. But if the girl was engaged- <br /><br />GONZALO. She wasn't. And even if she were that doesn't stop most men from going after her. <br /><br />NITA. Men's tremendous conceit. And you still have those ideals, Adrian? <br /><br />GONZALO. Adrian will never change. <br /><br />NITA. Don't rush him. He'll give up those ideals yet. <br /><br />GONZALO. (Brusquely). Why? (Caught by the suddenness, NITA stops.) <br /><br />NITA. Well, people-sometimes-alter their ideals as they grow older, don't they? <br /><br /> GONZALO. (Softening his tone). You're right. People shouldn't hold on to their original ideals, too long. (Taking the bottle again.) Want a drink, Adrian? <br /><br />ADRIAN. But I don't drink. <br /><br />NITA. Just try once, Adrian. <br /><br />ADRIAN. All right. (ADRIAN takes the drink. As he puts back the glass on the table, the newspaper falls off the low table.) <br /><br />GONZALO. (Picking up the newspaper and tossing it on a chair). Have you read this afternoon's paper? <br /><br />ADRIAN. Haven't had time. <br /><br />GONZALO. There's an interesting item on the front page. <br /><br />NITA. What about? <br /><br />GONZALO. About a murder last night. <br /><br />NITA. I shudder at the mere sound of the word "murder" <br /><br />GONZALO. (Laughing briefly). You never can tell, Nita. Some¬day you or I might be a witness to one. <br /><br />NITA. Oh, not me! <br /><br />GONZALO. Suppose we’re walking along the Escolta, and some-body sticks a knife into or shoots somebody? Shall we dose our eyes and pretend we didn't see it? <br /><br />NITA. That would be different. But I know I’ll be careful not to be around when a <br />crime takes place. <br /><br />ADRIAN. What was last night's case? <br /><br />GONZALO. (Glancing at the paper). You know Mr. and Mrs. Tito Viterbo? <br /><br />ADRIAN. The prominent attorney, isn't he? <br /><br />NITA. Not the Viterbo married to Mila Revilla? <br /><br />GONZALO. You know her? <br /><br />NITA. Very well. Mila and I were classmates in the same convent school, the Annunciata. <br /><br />GONZALO. A very religious woman, according to the paper.- She never missed going to <br />Quiapo church every Friday afternoon-you know, the Nazarene. <br /><br />NITA. She was the most religious girl in our class. <br /><br />GONZALO. The papers say she used to meet her lover in Quiapo church. <br /><br />NITA. Did anything happen to Mila? <br /><br />GONZALO. It seems Tito Viterbo's best friend was having an af¬fair with Tito's wife. <br /><br />NITA. I can't believe it of Mila. <br /><br />ADRIAN. Mr. Viterbo killed his friend? <br /><br />GONZALO. No, he killed his wife; <br /><br />NITA. Poor Mila. <br /><br />ADRIAN. Unfortunate husband. <br /><br />GONZALO: (Laughing). Unfortunate, my eye! Stupid rather! <br /><br /> ADRIAN. But why? <br /><br />NITA. Gonzalo, how can you be so callous? After all, he had the right to kill her. <br /><br />GONZALO. Because she was unfaithful to him? Decades ago that might have been <br />justified-but in an enlightened age like-ours, killing a faithless wife or her lover <br />speaks none too highly of the husbandts sense of proportion. <br /><br />ADRIAN. (Shocked). What an idea, Gonzalo! <br /><br />GONZALO. To kill the wife because she is unfaithful is for the husband to admit that <br />he has lost her-and if you lose some-thing or somebody. don't you think that it's <br />most probably through your own carelessness? The sense of possession is strong in <br />every love. <br /><br />ADRIAN. Granted. in another generation. when material things were few and <br />expensive, one could understand the fierce desire to possess and hold on to <br />something. <br /><br />NITA. Gonzalo, you can't confuse love with the material. <br /><br />GONZALO. I am not confusing them. True love isn't a material thing. It's intangible, <br />spiritual~ capable of touching the stars, reaching the infinite, embracing God! <br /><br />NITA. Poetry, Gonzalo. <br /><br />ADRIAN. No, Nita. Truth. <br /><br />GONZALO (Smiling). But not all marriages are born of love. <br /><br />ADRIAN. Of what then? <br /><br />GONZALO. Of passion. And if it is passion in your marriage, to lose the object of <br />your passion need not-should not-necessarily be tragic. <br /><br />ADRIAN. What would you have had Mr. Viterbo do, then? <br /><br />GONZALO Forgiven his wife.. <br /><br />ADRIAN. But Mr. Viterbo's wife was guilty of breaking- <br /><br />GONZALO. The fourth commandment- <br /><br />NITA. The sixth, Gonzalo. <br /><br />GONZALO. (Laughing). Right. "Thou shalt not commit adul¬tery." Ah, but I know the <br />ninth. 'Thou shalt not covet thy neighbor's wife." <br /><br />NITA. Splendid. Your memory is improving. <br /><br />GONZALO. (As he pours himself another dnnk). There's one word that has disappeared <br />from the vocabulary of the moderns. <br /><br />NITA. What word? <br /><br />GONZALO. The word adultery. The moderns have such a revolt¬ing dread of such an <br />ugly, repulsive, old-fashioned word that they have substituted for it, "So-and-so is <br />having an affair with-or is in love with somebody else," and similar, charming, <br />harmless phrases. But the word adultery itself they. avoid and abhor. To the <br />moderns, adultery doesn't exist any more. <br /><br />NITA. Your narrow views surprise me, Gonzalo. <br /><br />ADRIAN. Levity aside, if ! had my way I'd have a name for Mr. Viterbo's wife and her <br />lover. <br /><br />GONZALO. And that is- <br /><br />ADRIAN. I'd call them a couple of rats. <br /><br />GONZALO. (Laughing uproariously). That's interesting, Adrian. Why, in heaven's <br />name? <br /><br />ADRIAN. Adultery is punishable by law, don't you know? <br /><br />GONZALO. If I may be permitted to stretch the point further, I'd prefer to call the <br />three of them rats. <br /><br />NITA. Why include the poor husband? <br /><br />GONZALO. For breaking the fifth commandment-"Thou shalt not kill." (They all break <br />into laughter. GONZALO again takes the bottle.) Another, Adrian? <br /><br />ADRIAN. If you don't mind, I'd like some coffee. <br /><br />NITA. Oh, I forgot to bring in new cups. <br /><br />GONZALO. (Stopping her as she is about to go). Don't bother, <br /><br />NITA. Here's one. <br /><br />NITA. But you used that cup before. <br /><br />ADRIAN. I don't mind. <br /><br />NITA. (Staring at him-realizing it is the fatal cup). Gonzalo, that cup-- <br /><br />ADRIAN. I don't believe in germs, Nita. <br /><br />NITA. (Alarmed). It isn't that- <br /><br />GONZALO. Adrian is right, Nita. One cup is as good- (NITA utters a muffled scream. <br />GONZALO goes to her and holds her arm firmly, cruelly. NITA winces.) <br /><br />ADRIAN. Is she ill? <br /><br />GONZALO. If you call expecting a baby- <br /><br />NITA. No! (But NITA, still feeling the pressure of GONZALO'S hand on her, remains <br />speechless.) <br /><br />ADRIAN. Well, congratulations! <br /><br />GONZALO. It's too early to tell.. She'll be all right Women insist on deluding <br />themselves that they can be the equal. of men. When they are pregnant, they wake up <br />from their trance. (NITA, struck with terror, falls in a chair. GONZALO takes the <br />pot, and, making it seem accidental, spills some' coffee on ADRIAN's clothes) How <br />stupid of me! <br /><br />GONZALO. Go inside and wipe it off. (ADRIAN stands up and walks toward the door. <br />NITA tries to follow.) <br /><br />NITA. I'll 'get you a clean towel. <br /><br />GONZALO (Looking at her steadily). Adrian knows his way around. He's like one of the <br />family. There's a clean towel in the bathroom. (ADRIAN goes out. NITA springs up <br />from the chair and runs to GONZALO.) <br /><br />NITA. What are you trying to do? <br /><br />GONZALO. What are you talking about? <br /><br />NITA. The cup, Gonzalo, the cup!, (He looks at her, without saying -a word.) Throw <br />it away, throw it away! (GONZALO pushes her away, roughly.) <br /><br />GONZALO. Shut up, you bitch! <br /><br />NITA. Don't do it, don't! (GONZALO lights a cigaret, sits calmly.) <br /><br />GONZALO. So no one came this afternoon. Adrian admitted he did. <br /><br />NITA. No! <br /><br />GONZALO, (Ignoring her interruptions). But he made one slight -mistake: he said he <br />had told the maid he had come. But he doesn’t know you dismissed her this morning. <br /><br />NITA. N~, no! <br /><br />GONZALO. That's why you dismissed Cora. She knew 'and you were afraid she was going <br />to talk. Adrian has been coming here every afternoon for the last two weeks. I had . <br />my suspi¬cions-that's why I went up to Baguio. I could have~ come hack in a day or <br />two-but I wanted to give you and-Adrian the satisfaction of a last romantic, evil <br />fling! (NITA throws herself on his knees.) <br /><br />NITA. Gonzalo-Gonzalo! <br /><br />GONZALO. Both of you pretending, deceiving, lying behind my back!- (NITA breaks into <br />sobs.) <br /><br />NITA. True, true! And I'm so ashamed! <br /><br />GONZALO. (Contemptuously). Ashamed? (Gently.) You know the meaning of the word? <br /><br />NITA. I don't know why I did it, I don't know! <br /><br />GONZALO. Now you know-and it's too late. <br /><br />NITA (Pleadingly). What are you going to do? <br /><br />GONZALO. Destroy him <br /><br />¬NITA. Adrian? <br /><br />GONZALO. You're quite psychic, beloved. <br /><br />NITA. Let Adrian go! <br /><br />GONZALO. Because my love for him is deeper-him I must destroy <br /><br />NITA. But not this way-not this callous way! Give him an even chance! <br /><br />GONZALO. For a rat like him? <br /><br />NITA. If you must destroy, destroy me then! Spare Adrian! <br /><br />GONZALO. (Softly). He means that much to you, my dear? <br /><br />NITA. No, no-not now-not any more! But there must be some pity left in you! <br /><br />GONZALO. There is-a tiny bit-but my pity isn't for Adrian. I’m reserving it for you. <br /><br />NITA. Destroy me then-I'm just as guilty! <br /><br />GONZALO. No, Nita, I cannot destroy you. I'll let you live-but I'll let you <br />breathe, eat, and sleep~ every second of your cursed life-with that ugly word <br />adulteress in your heart! <br /><br />NITA. I'd rather die! I'd rather be destroyed! <br /><br />GONZALO. You must live, my dearest Nita. Dying is so easy. And why die when there's <br />so much ahead of you? <br /><br />NITA. (Brokenly). There's nothing-nothing-ahead, or me-now. <br /><br />GONZALO. Your feelings are a matter of indifference' to me. Soon you're going to <br />witness a crime. You're going to see your beloved-and my beloved friend-Adrian-die <br />the death of a rat <br /><br />NITA. I won't stand it. I won't! I won't! I can't! (GONZALO stands up smiling.) <br /><br />GONZALO. You're going to stay here and not utter a single word or make the least <br />gesture. (His tone dripping with venom.) Even though you aren’t a very intelligent <br />woman I think you understand my words. (Bending over.) Come, my dear, allow me to <br />take you to this chair. You need, a rest. (GONZALO for¬cibly raises NITA up. She <br />sinks, exhausted and terrified, into a chain Presently ADRIAN comes in.) <br />Everything all right, Adrian? <br /><br />ADRIAN. It was nothing. It won't show. <br /><br />GONZALO. (Pouring). Take your coffee. <br /><br />ADRIAN. Sorry. I must be getting along. <br /><br />GONZALO. Take your coffee first. <br /><br />ADRIAN. (After a brief hesitation). All right.(Seeing NITA) she feeling worse? <br /><br />GONZALO. Nothing serious. <br /><br />ADRIAN. She should go in and rest, don't you think? <br /><br />GONZALO. She will, presently. <br /><br /><br />ADRIAN. (Taking the cup). This coffee is still hot. (NITA wakes up from her trance <br />and watches GONZALO'S actions. ADRIAN takes some sugar and stirs it.)<br /><br />GONZALO. Still warm? <br /><br />ADRIAN. Just right. (As he is about to drink it, NITA stands up.) <br /><br /><br />NITA. Oh Adrian, I'm sure it's cold now- <br /><br />ADRIAN. Don't bother, Nita- <br /><br />GONZALO. (To NITA). Stop being so fussy- <br /><br />NITA. Are you sure, Adrian? <br /><br />ADRIAN. Sure. (He gulps down tire drink. NITA covers her mouth with her hand. <br />Frightened, site rushes out.) <br /><br />GONZALO. Poor Nita. Sometimes, Adrian, I think you're better off as a bachelor. <br /><br />ADRIAN. Well, well! A while ago you were advising me to get mar¬ried. <br /><br />GONZALO. You should, Adrian, you should. <br /><br />ADRIAN. I'm not prepared-to settle down yet. <br /><br />GONZALO. Aren't you afraid to die a bachelor? <br /><br />ADRIAN. (Laughing). I expect to live a little longer, Gonzalo. <br /><br />GONZALO. A little longer is right. (ADRIAN'S face slowly begins to get red. He <br />feels a giddiness in his head-- he presses his temples.) <br /><br />ADRIAN. My head- <br /><br />GONZALO. What's wrong? <br /><br />ADRIAN. Don't know-my head-never felt like this- <br /><br />GONZALO. Sit down. (ADRIAN sits on the sofa.) You'll feel better. <br /><br />ADRIAN. (Touching his throat). My throat-- can't breathe¬ <br /><br />GONZALO. An aspirin will do you good. <br /><br />ADRIAN. The coffee-- could it be-- <br /><br />GONZALO. (Picking up the cup and smelling it). No, I don't think so. Probably the <br />effect of the whisky eh Adrian? <br /><br />ADRIAN. (Laughing dryly). Yes-first time, you know. <br /><br />GONZALO. By the way, will the two thousand and a half be enough? I could lend you <br />more. <br /><br />ADRIAN. (Taking out the check from his pocket). Thanks, Gon¬zalo Always the <br />wonderful friend. <br /><br />GONZALO. Friendship is unto the grave- <br /><br />ADRIAN. And beyond it. <br /><br />GONZALO. Yes-even beyond it. <br /><br />ADRIAN. I sometimes-wonder-what I would do-or where-I would be-without you. Gonzalo. <br /><br />GONZALO. (Affectionately). Aw, shut up, Baby Face. <br /><br />ADRIAN You haven't-called me-Baby Face since Our high school days- (ADRIAN'S eyes <br />start to protrude-they become staring and wide open the pupils dilated and <br />immobile.) <br /><br />GONZALO. Lie down -- you're just tired. The light must be bother¬ing you (GONZALO <br />turns off all the lights, leaving the scene in complete darkness, except for some <br />light streaming through the balcony from the street.) <br /><br />GONZALO. Just rest, Adrian. <br /><br />ADRIAN. No, no-I must-tell you-something-GONZALO. Not now. Tomorrow. <br /><br />ADRIAN. (Terror in his voice). Now!-very important-very-(ADRIAN begins to gasp and <br />moan softly. Then silence.) <br /><br />GONZALO. I attach myself to nothing and to nobody. <br /><br /> (As ADRIAN continues moaning, GONZALO lights a cigaret. A long <br />silence, Then-ADRIAN falls noisily upsetting the coffee table, breaking the cup and <br />glasses. Simultaneously, we hear a long, shrill, agonizing, terrifying scream <br />outside.) <br /><br />NITA. (Outside-- unspeakable terror in her voice). Adrian-Adrian! ADRIAN!! (Her <br />words are followed by heartrending sobs which keep on till the final curtain. <br />GONZALO throws his cigaret away, goes to ADRIAN, gets the check, tears it up. Slowly <br />he goes to the telephone and dials.) <br /><br />GONZALO. (Quietly and deliberately). Hello? Police Department? If you care to come <br />to 60 Banaba St., Forbes Park, you'll find three rats- (pause) yes, yes, that's what <br />I just said-three rats. <br /><br /> <br /><br /> (As we hear NITA hysterically sobbing her heart out, the curtain falls)<br /><br /><br />NOTE: You can download the file here:<br /><br /><a href="http://www.plunder.com/-download-e4562d8699.htm">Three Rats by WILFRIDO MA. GUERRRO</a>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8026107156838764510.post-49789237258362750932009-01-19T04:10:00.000-08:002009-01-19T04:13:54.959-08:00Advocators of Management<span style="font-weight:bold;">1. Henri Fayol</span><br /><br /><span style="font-weight:bold;">Contributions:</span><br /><br />- Fayol has been described as the father of modern operational management theory.<br /><br />- One of the most influential contributors to modern concepts of management, having proposed that there are five primary functions of management: (1) planning, (2) organizing, (3) commanding, (4) coordinating, and (5) controlling<br /><br />- Pioneer of the 14 principles of management. Namely:<br /><br />• Specialization of labor. Specializing encourages continuous improvement in skills and the development of improvements in methods.<br />• Authority. The right to give orders and the power to exact obedience.<br />• Discipline. No slacking, bending of rules.<br />• Unity of command. Each employee has one and only one boss.<br />• Unity of direction. A single mind generates a single plan and all play their part in that plan.<br />• Subordination of Individual Interests. When at work, only work things should be pursued or thought about.<br />• Remuneration. Employees receive fair payment for services, not what the company can get away with.<br />• Centralization. Consolidation of management functions. Decisions are made from the top.<br />• Scalar Chain (line of authority). Formal chain of command running from top to bottom of the organization, like military<br />• Order. All materials and personnel have a prescribed place, and they must remain there.<br />• Equity. Equality of treatment (but not necessarily identical treatment)<br />• Personnel Tenure. Limited turnover of personnel. Lifetime employment for good workers.<br />• Initiative. Thinking out a plan and do what it takes to make it happen.<br />• Esprit de corps. Harmony, cohesion among personnel.<br /><br /><br /><span style="font-weight:bold;">2. Frederick Winslow Taylor</span><br /><br /><span style="font-weight:bold;">Contributions:</span><br /><br /> Father of Scientific management<br /><br /> Proponent of Scientific Management Principle<br /><br /> Was one of the first management consultants<br /><br /><span style="font-weight:bold;">Scientific Management Principles</span><br /><br />• Replace rule-of-thumb work methods with methods based on a scientific study of the tasks.<br />• Scientifically select, train, and develop each employee rather than passively leaving them to train themselves.<br />• Provide "Detailed instruction and supervision of each worker in the performance of that worker's discrete task" <br />• Divide work nearly equally between managers and workers, so that the managers apply scientific management principles to planning the work and the workers actually perform the tasks.<br /><br /><span style="font-weight:bold;">3. Max Weber</span><br /><br /><span style="font-weight:bold;">Contributions:</span><br /><br /> One of the founders of the modern study of sociology and public administration<br /><br /> Proposed the Beaucracy Theory which arose by sub-dividing the functions that the owner-managers originally did themselves such as supervision, personell selection, accounting and financial management, record keeping, job design, and planning.<br /><br /><br /><br /><span style="font-weight:bold;">4. Douglas McGregor</span><br /><br /><span style="font-weight:bold;">Contributions:</span><br /><br /> Proponent of theory X and Y<br /><br /><span style="font-weight:bold;">Theory X & Y</span><br /><br />• Theory X - In this theory, management assumes employees are inherently lazy and will avoid work if they can. Because of this, workers need to be closely supervised and comprehensive systems of controls developed. According to this theory, employees will show little ambition without good incentive program and will avoid responsibility whenever they can.<br /><br />• Theory Y - In this theory management assumes employees may be ambitious, self-motivated, anxious to accept greater responsibility, and exercise self-direction, autonomy and empowerment. It is believed in this theory that employees enjoy their mental and physical work duties. There is a chance for greater productivity by giving employees the freedom to perform at the best of their abilities without being forced to abide by rules.<br /><br /><br /><span style="font-weight:bold;">5. Frank and Lillian Gilbreth</span><br /><br /><span style="font-weight:bold;">Contributions:</span><br /><br /> Proponents of Laws of Human motion<br /><br /> Proponent of concept of Therblig<br /><br /><span style="font-weight:bold;">Therblig Concept</span><br /><br />• Search<br />• Find<br />• Select<br />• Grasp<br />• Hold<br />• Position<br />• Assemble<br />• Use<br />• Disassemble<br />• Inspect<br />• Transport loaded<br />• Transport unloaded<br />• Pre-position for next operation<br />• Release load<br />• Unavoidable delay<br />• Avoidable delay<br />• Plan<br />• Rest to overcome fatigueUnknownnoreply@blogger.com0tag:blogger.com,1999:blog-8026107156838764510.post-48561370570076563542009-01-19T04:05:00.001-08:002009-01-19T04:09:27.452-08:00The Decameron - The Third Day, the Tenth NovelThis was of course discussed in most literature subjects and sometimes its kinda hard to find over the internet so i will post it in this blog..Enjoy reading the story!<br /><br /><span style="font-weight:bold;">The Decameron - The Third Day, the Tenth Novel</span><br /><br />By Giovanni Boccaccio<br /><br />Alibech turns hermit, and a monk, Rustico, teaches her to put the Devil in Hell. Afterwards she is brought home, and married to Neerbale. <br /><br />Dioneus listened attentively to the Queen’s discourse, and when she had done and he knew that only he remained to complete the day’s entertainment, without trifling away the time or awaiting a command from the Queen, thus he began. <br /><br />Gracious ladies, it may be you have not heard how the Devil is put in Hell. Therefore, and since it will not be far off the subject of this day’s discourse, I will tell it you. Perhaps, hearing it, you may the better understand that albeit Love more affects gay palaces and luxurious bowers than the cabins of the poor, yet he by no means disdains to manifest his power even in the depths of the forest, on stark mountains and in the caves of the desert; and thus we must acknowledge that all things wheresoever they be are subject to him. <br /><br />Coming, then, to my story, I must tell you that in Capsa, a city of Barbary, there dwelt aforetime a very rich man, who had among several children a little daughter, fair and of a docile temper, whose name was Alibech. <br /><br />This girl, a heathen in a place where many were Christian, used often to hear her neighbours extol the Christian faith and devotion to the service of God; wherefore she asked one of them how God could best be served and with the least hindrance. She was told that they best served Him who removed themselves farthest from the things of the world, as in particular the hermits who had withdrawn from the city to the wilds of Thebais. <br /><br />The simple maiden, aged perhaps some fourteen years, moved rather by a childish whim than any real vocation, set out on the morrow alone and telling nobody to walk into the desert. So firmly was she resolved that after several days of hardship she reached the wilderness of Thebais. From afar she descried a little hut, and coming up to it, found there a holy man. Amazed to see such a one there, he asked what she came to seek. Her answer was that, aspiring towards God, she came thither to serve Him, and in the hope of finding a teacher to that end. <br /><br />The pious hermit, seeing her so young and fair, was afraid lest the Devil might ensnare him; so he praised her intent, and giving her roots, wild apples and dates to eat and a draught of water, said: “Daughter, not far from here there dwells a holy man such as thou seekest: a fitter man than I. Go thou to him.” And he put her on the way. <br /><br />The second hermit advised her as the first; and faring farther she came to the cell of a young hermit, a very pious and righteous man, whose name was Rustico. To him she repeated her mission. Willing to put his resolution to so great a test, he forebore to send her away, and took her into his cell. At nightfall he made her a bed of palm-leaves, and bade her lie down to rest. <br /><br />Temptations did not long delay an assault on his constancy; and finding it much beyond his strength to withstand them, he soon gave up the battle, and confessed himself worsted. So putting away all saintly thoughts, prayers and mortifications, he let his mind dwell on the freshness and beauty of his companion. From this he passed to thinking of the best means of bringing her to his desires without giving her cause to suspect him of lewdness. Therefore, satisfying himself by a few questions that she had never had carnal knowledge of a man, and was indeed as innocent as she seemed, he thought of a plan to enjoy her under colour of serving God. He began expounding to her the Devil’s enmity to the Almighty, and went on to impress upon her that the most acceptable service she could render to God would be to put the Devil in Hell, whereto the Lord had condemned him. <br /><br />The little maid asked him how this might be done. “Thou shalt soon learn,” replied Rustico, “only do as thou seest me do.” Thereupon he took off what few clothes he wore, and stood stark naked; and as soon as the girl had done likewise he fell on his knees as though to pray, and made her kneel face to face with him. <br /><br />This done, Rustico’s desire was more than ever inflamed at the sight of her beauty, and the resurrection of the flesh came to pass. Seeing this, and not knowing what it meant, Alibech asked: “Rustico, what is it thou hast that thrusts itself out in front, and that I have not?” “My daughter,” quoth Rustico, “it is that same Devil of whom I have been telling thee. Dost thou mark him? Behold, he gives me such sore trouble that I can hardly bear it.” <br /><br />“The Lord be praised!” said she; “for now I see that I am more blessed than thou in that I have not this Devil.” <br /><br />Rustico retorted: “Thou sayest truly; but thou hast another thing that I have not, and hast it in place of this.” <br /><br />“What is that?” says Alibech. <br /><br />To this Rustico replied: “Thou hast Hell; and will tell thee my belief that God gave it thee for the health of my soul. For, if thou wilt take pity on me for the troubling of this Devil, and suffer me to put him in Hell, thou wilt comfort me extremely, and at the same time please and serve God in the highest measure; to which end, as thou sayest, thou art come hither.” <br /><br />All unsuspecting, the girl answered. him: “My father, since I have this Hell, let the thing be done when thou desirest it.” <br /><br />Then Rustico said: “Bless thee, my dear daughter; let us go at once and put him in his place, that I may be at peace.” <br /><br />So saying, he laid her on one of their rough beds, and set about showing her how to shut the accursed one in his prison. The girl, who until then had no experience of putting devils in Hell, felt some pain at this first trial of it; which made her say to Rustico: “Father, this Devil must indeed be wicked, and in very sooth an enemy of God, for he hurts Hell itself, let alone other things, when he is put back in it.” <br /><br />“My daughter,” said Rustico, “it will not always be so.” And to make sure of it, before either of them moved from the bed they put him in six times, after which the Devil hung his head and was glad to let them be. <br /><br />But in the succeeding days he rose up many times; and the girl, always disposing herself to subdue him, began to take pleasure in the exercise, and to say such things as: “I see now the truth of what the good folk in Capsa told me, that serving God is a delight; for I never remember doing anything that gave me as much joy and pleasure as this putting the Devil in Hell. So I think the people who spend their time otherwise than in serving God must be very foolish.” <br /><br />Often she would come to Rustico and say: “Father, I came hither to serve God, not to stand idle. Let us go put the Devil in Hell.” And once, when it had been done, she asked: “Rustico, why does he want to get out of Hell? If only he would stay there as willingly as Hell takes him in and holds him, he would never want to come out at all.” By thus constantly egging him on and exhorting him to God’s service the girl so preyed upon Rustico that he shivered with cold when another man would have sweated. He had perforce to tell her that it was not just to punish the Devil by putting him in Hell save when he had lifted his head in pride; and that by God’s mercy they had so chastened him that he only implored Heaven to be left in peace. Thus for a time he silenced her. <br /><br />But she, finding that Rustico did not call on her to put the Devil in Hell, said one day: “Even though your Devil is punished and no longer troubles you, my Hell gives me no peace. You will do a charity if with your Devil you will quiet the raging of my Hell, as with my Hell I tamed the pride of your Devil To these demands Rustico on a diet of herbs and water could ill respond; and he told her that to appease Hell would need too many devils, none the less he would do all that in him lay. At times he could satisfy her, but so seldom that it was like feeding an elephant with peas. Therefore the girl thought she was not serving God as well as she would like, and she grumbled most of the time. <br /><br />Whilst things stood thus amiss between Rustico’s Devil and Alibech’s Hell, for overmuch eagerness of the one part and too little performance of the other, a fire broke out in Capsa and burned the father of Alibech with his children and every one of his kin, so that Alibech became the sole heiress to his goods. Whereupon a certain Neerbale, a young man who had wasted his patrimony in high living, sought for Alibech in the belief that she was alive, and succeeded in finding her before the Court had declared her father’s goods forfeit as being without an owner. Much to the relief of Rustico and against the girl’s will, Neerbale brought her back to Capsa and married her, so becoming entitled in her right to a large fortune. <br /><br />One day, when as yet Neerbale had not lain with her, some of her women asked how she had served God in the desert. She replied that she had served Him by putting the Devil in Hell, and that Neerbale had committed a grievous sin in taking her from such pious work. Then they asked: “How is the Devil put in Hell?” To which the girl answered with words and gestures showing how it had been done. The women laughed so heartily that they have not done laughing yet, and said to her: “Grieve not, my child; that is done as well here. Neerbale will serve God right well with thee in this way.” <br /><br />As one repeated the words to another throughout the town, it became a familiar saying that the most acceptable of all services to God is to put the Devil in Hell. The saying has crossed the sea and become current among us, as it still is. <br /><br />Wherefore, young ladies, I beseech you if you would deserve Heaven’s grace, lend yourselves to the putting of the Devil in Hell; for it is a thing beloved of God, pleasing to the participants, and one from which much good comes and ensues. <br /><br />A thousand times and more were the chaste ladies moved to laughter by Dioneus’s novel, so much were his phrases to their liking. And the Queen perceiving that as his tale was ended, her office had expired, took the crown of laurel from her head and graciously placed it on the head of Philostratus, saying: “Now we shall see whether the wolf will rule the sheep better than the sheep ruled the wolves.” At this Philostratus laughed, and retorted: “If I had my way, the wolves would have taught the sheep to put the Devil in Hell, no less well than Rustico taught Alibech. Since we did not, call us not wolves, for ye were no sheep. Howbeit, I will reign as best I may, seeing ye have laid the trust on me.” <br /><br />Neiphila cried out: “Mark this, Philostratus; in trying to teach us you might have had such a lesson as Masetto di Lamporechio had of the nuns, and recovered your speech just as your bare bones had learned to whistle without a master.” Finding himself thus evenly matched, Philostratus ceased his pleasantries; and beginning to consider on the charge committed to his care, called the Master of the houshold, to know in what estate all matters were, because where any defect appeared, every thing might be the sooner remedied, for the better satisfaction of the company, during the time of his authority. Then returning backe to the assembly, thus he began. Lovely Ladies, I would have you to know, that since the time of ability in me, to distinguish betweene good and evill, I have alwayes bene subject (perhaps by the meanes of some beauty heere among us) to the proud and imperious dominion of love, with expression of all duty, humility, and most intimate desire to please yet all hath prooved to no purpose, but still I have bin rejected for some other, whereby my condition hath falne from ill to worse, and so still it is likely, even to the houre: of my death. In which respect, it best pleaseth me, that our conferences to morrow, shall extend to no other argument, bit only such cases as are most conformable to my calamity, namely of such, whose love hath had unhappy ending, because I await no other issue of mine; nor willingly would I be called by any other name, but only, the miserable and unfortunate Lover. <br /><br />Having thus spoken, he arose againe; granting leave to the rest, to recreate themselves till supper time. The Garden was very faire and spacious, affoording, large limits for their severall walkes; the Sun being already so low descended, that it could not be offensive to any one, the Connies, Kids, and young Hindes skipping every where about them, to their no meane, pleasure and contentment, Dioneus and Fiammetta, sate singing together, of Messire Guiglielmo, and the Lady of Vertur. Philomena and Pamphilus playing at the Chesse, all sporting themselves as best they pleased. But the houre of Supper being come, and the Tables covered about the faire fountaine, they sate downe and supt in most loving manner. Then Philostratus, not to swerve from the course which had beene observed by the Queenes before him, so soone as the Tables were taken away, gave commaund that Madam Lauretta should beginne the dance, and likewise to sing a Song. My gracious Lord (quoth she) I can skill of no other Songs, but onely a peece of mine owne, which I have already learned by heart, and may well beseeme this assembly: if you please to allow of that, I am ready to performe it with all obedience. Lady, replyed the King, you your selfe being so faire and lovely, so needs must be whatsoever commeth from you, therefore let us heare such as you have. Madam Lauretta, giving enstruction to the Chorus prepared, and began in this manner.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8026107156838764510.post-78304955752704724652008-07-30T05:58:00.000-07:002008-07-30T06:28:13.584-07:002008 President Gloria-Macapagal Arroyo's State of the Nation Address (SONA)sa mga naghahanap ng kopya ng SONA ni Madam President, eto na po. Ilalagay ko dito. I download niyo na lang kasi naka PDF format ito. Bawal ito I Copy at Paste sa word. Maraming highlights itong SONA ni Madam President at ang pinakagusto ko sa lahat ay ang 0.50 peso per text to all networks!! Yehey!! Mas mura..Pero sana dapat 20 peso unlitxt to all networks nalang ung inimplement niya..Hehehe..<br /><br /><span style="font-weight:bold;">Download PDF Reader HERE:</span> <a href="http://www.foxitsoftware.com/pdf/reader_2/down_reader.htm">FOXIT Reader</a><br /><br /><span style="font-weight:bold;">President Gloria - Macapagal Arroyo's Sate of the Nation Address as of JUly 28, 2008:</span><br /><br /><a href=" http://www.plunder.com/sona-2008-download-152844.htm ">SONA 2008</a><br /><br />Credits: <br /><a href="www.gov.ph/sona/">www.gov.ph</a>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8026107156838764510.post-62759329761080699512008-07-18T20:42:00.000-07:002008-07-18T20:51:01.458-07:00[Pagkilala] Walang PanginoonWalang Panginoon:<br />HAZEL MANITI<br />1. Animas – pagtunog ng kampana sa simbahan sa gabi para sa mga patay<br />2. Batingaw – kampana<br />3. Ningas – alab, liyab, apoy<br />4. Belasyon – kasayahan, pagsasaya<br />5. Pithaya – pita, hangad, layon<br />6. Nakapagpalubag – pagpapalamig ng damdamin<br />7. Nagsimpan – nag-alay, nagtanim<br />8. Inaalagat - hinahangad, linulunggati<br />9. Palasak – laganap, popular<br />10. Lamo – balsa, bangkilas, timbulan<br />11. Matimo – tumagos<br />12. Agunyas – payapang pagtunog ng kampana ng simbahan para sa mga patay<br />13. Susuong – pagsalunga, pagsungsong<br />14. Subyang – salubsob<br />15. Pag- upasala – mura, tuligsa, lait, alipusta, insult<br />16. Kabalintunaan – kabalighuan<br />17. Mahamig- makuha<br />18. Nakapugal – nakatali<br />19. Pulinas – leggings<br />20. Gora – sombrero<br />21. Rebolber – baril<br />22. Kinapupugalan – kinatatalian<br />23. Aasbaran – tatadtaran<br />24. Sinibad - kinaskas, hagibis<br />25. Pagkasikwat - pagkaalsa<br />26. Palahaw – malakas na sigaw, hiyawan, palakat, pananangis<br />27. Pusalian – maduming tubug sa kanal<br />PRETAN TABAG<br />1. Pagkuyom –pagkimkim<br />2. Subyang – uri ng tinik<br />3. Belasyon – pagdiriwang, kasiyahan<br />4. Palahaw – sigaw dahil sa pagkatakot o pagkabigla<br />5. Pithaya – pita, nais, ibig<br />6. Takipan at talinduwa – pagsasabwatan<br />7. Inaalagata – binibigyan ng labis na pansin<br />8. Pusalian – putikan<br />9. Pagkampay – paggalaw<br />10. Pagsikad – pagtadyak<br />11. Magtiim – magtikom (ng bibig)<br />12. Matimo – mabaon<br />13. Palihan – pandayan<br />14. Pag-upasala – pag-insulto<br />15. Palatak – tunog na likha ng dila<br />16. Aasbaran – hindi tatantanan<br />17. Sinibad – humagibis<br /><br /><br />CREDITS:<br />• Hazel<br />• PretanUnknownnoreply@blogger.com5tag:blogger.com,1999:blog-8026107156838764510.post-68172685225347124282008-07-16T05:01:00.000-07:002008-07-16T05:03:08.980-07:00[Vocabulary Words] Tagalog Words<p class="ListParagraph" style="text-indent: -0.25in;"><!--[if !supportLists]--><span style="font-family: Symbol;">·<span style="font-family: "Times New Roman"; font-style: normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-size-adjust: none; font-stretch: normal;"> </span></span><!--[endif]-->Ningas - apoy</p> <p class="ListParagraph" style="text-indent: -0.25in;"><!--[if !supportLists]--><span style="font-family: Symbol;">·<span style="font-family: "Times New Roman"; font-style: normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-size-adjust: none; font-stretch: normal;"> </span></span><!--[endif]-->Krusipiho - krus</p> <p class="ListParagraph" style="text-indent: -0.25in;"><!--[if !supportLists]--><span style="font-family: Symbol;">·<span style="font-family: "Times New Roman"; font-style: normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-size-adjust: none; font-stretch: normal;"> </span></span><!--[endif]-->Pagkakilanlan - pagkakakilala</p> <p class="ListParagraph" style="text-indent: -0.25in;"><!--[if !supportLists]--><span style="font-family: Symbol;">·<span style="font-family: "Times New Roman"; font-style: normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-size-adjust: none; font-stretch: normal;"> </span></span><!--[endif]-->Tinabangan - tinulugan</p> <p class="ListParagraph" style="text-indent: -0.25in;"><!--[if !supportLists]--><span style="font-family: Symbol;">·<span style="font-family: "Times New Roman"; font-style: normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-size-adjust: none; font-stretch: normal;"> </span></span><!--[endif]-->Paris - parehas</p> <p class="ListParagraph" style="text-indent: -0.25in;"><!--[if !supportLists]--><span style="font-family: Symbol;">·<span style="font-family: "Times New Roman"; font-style: normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-size-adjust: none; font-stretch: normal;"> </span></span><!--[endif]-->Matimpi -<span style=""> </span>milihim</p> <p class="ListParagraph" style="text-indent: -0.25in;"><!--[if !supportLists]--><span style="font-family: Symbol;">·<span style="font-family: "Times New Roman"; font-style: normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-size-adjust: none; font-stretch: normal;"> </span></span><!--[endif]-->Nagsipanhik – umakyat, nagsidala</p> <p class="ListParagraph" style="text-indent: -0.25in;"><!--[if !supportLists]--><span style="font-family: Symbol;">·<span style="font-family: "Times New Roman"; font-style: normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-size-adjust: none; font-stretch: normal;"> </span></span><!--[endif]-->Nasalat – naubos, nagkulang</p> <p class="ListParagraph" style="text-indent: -0.25in;"><!--[if !supportLists]--><span style="font-family: Symbol;">·<span style="font-family: "Times New Roman"; font-style: normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-size-adjust: none; font-stretch: normal;"> </span></span><!--[endif]-->Maligalig - magulo</p> <p class="ListParagraph" style="text-indent: -0.25in;"><!--[if !supportLists]--><span style="font-family: Symbol;">·<span style="font-family: "Times New Roman"; font-style: normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-size-adjust: none; font-stretch: normal;"> </span></span><!--[endif]-->Humuhubo - nahuhubadan</p> <p class="ListParagraph" style="text-indent: -0.25in;"><!--[if !supportLists]--><span style="font-family: Symbol;">·<span style="font-family: "Times New Roman"; font-style: normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-size-adjust: none; font-stretch: normal;"> </span></span><!--[endif]-->Panangis – pagluluksa </p> <p class="ListParagraph" style="text-indent: -0.25in;"><!--[if !supportLists]--><span style="font-family: Symbol;">·<span style="font-family: "Times New Roman"; font-style: normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-size-adjust: none; font-stretch: normal;"> </span></span><!--[endif]-->Pulutong – pangkat, grupo</p> <p class="ListParagraph" style="text-indent: -0.25in;"><!--[if !supportLists]--><span style="font-family: Symbol;">·<span style="font-family: "Times New Roman"; font-style: normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-size-adjust: none; font-stretch: normal;"> </span></span><!--[endif]-->Pumipintig – tumitibok</p> <p class="ListParagraph" style="text-indent: -0.25in;"><!--[if !supportLists]--><span style="font-family: Symbol;">·<span style="font-family: "Times New Roman"; font-style: normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-size-adjust: none; font-stretch: normal;"> </span></span><!--[endif]-->Bumalikwas – mabilis na umikot o humarap sa kabilang direksyon</p> <p class="ListParagraph" style="text-indent: -0.25in;"><!--[if !supportLists]--><span style="font-family: Symbol;">·<span style="font-family: "Times New Roman"; font-style: normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-size-adjust: none; font-stretch: normal;"> </span></span><!--[endif]-->Siniil – tinalo</p> <p class="ListParagraph" style="text-indent: -0.25in;"><!--[if !supportLists]--><span style="font-family: Symbol;">·<span style="font-family: "Times New Roman"; font-style: normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-size-adjust: none; font-stretch: normal;"> </span></span><!--[endif]-->Inungkat – ipinasok sa usapan</p> <span style="font-size: 11pt; font-family: Calibri;">Makisuno - makisuyo</span>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8026107156838764510.post-32393655410033672232008-07-10T05:27:00.000-07:002008-07-10T05:29:35.852-07:00[Tula] Ang Halik ni Florentino Collantes<div style="text-align: center;"><span style="font-family:courier new;"><em><span style="font-weight: bold;">ANG HALIK</span></em></span><br /><span style="font-family:courier new;"><em></em></span>Ni Florentino Collantes<br /><br />May nangagsasabing ang halik ng tao<br />Ay isang pagkaing lutong paraiso<br />Anang iba naman ay lutong impyerno<br />Ewan ko kung alin dito ang totoo,<br />Marahil sa langgam ang tao natuto<br />Sapagkat una na ang hayop na ito.<br /><br />At tayong Pilipino sa Kastila lamang<br />Umano natuto ng paghahalikan<br />Sa Amerikano tayo nasanay<br />Ng gawang paghalik kahit sa lansangan.<br /><br />Datapwat sa aking ganang pagkabatid<br />Tayo’y may sarili’t katutubong halik<br />May halik Pilipino may halik Ingles<br />May halik Kastila at may halik Intsik.<br /><br />Ang halik ng Intsik ay pahigup-laway<br />Pisngi’y ginagawang mangkok ng linugaw<br />Parang humuhithit sa kwako ng apyan<br />Parang pumapangos ng tubong sinambay<br /><br />Ang halik ng Ingles ay pasipsip-suso<br />Dikdikan ng labi’t ngudnguran ng nguso<br />Datapwa ang atin, ang halik Pilipino<br />Ay hinid pasipsip ni hindi pasupsop<br />Kung hindi pasiil, paamoy, pasinghot.<br /><br />Ang halik ay bugtong na kataka-taka<br />Pabango ng puso at ng kaluluwa<br />Sa iisang tao ay walang halaga<br />Ngunit pulot gata kapag sa dalawa.<br /><br />Ang halik ay mahal,banal at dakila<br />Ngunit nahihingi kung sa munting bata<br />Ito’y ninanakaw ng mga binata<br />Ngunit binibili ng mga matanda.<br /><br />Ang halik sa sanggol isang kautangan<br />Sa mutyang kasuyo ito’y karapatan<br />Tanda ng pag-ibig, ng damdaming banal<br />Ngunit balatkayo ng pusong tulisan.<br /><br />Ang halik sa sinta pag-asang sariwa<br />Sa mutyang asawa’y pagsintang dakila<br />Datapwat sa isang dalagang matanda<br />Ang halik ay isang pagkakawanggawa. </div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8026107156838764510.post-45990205862050971242008-07-10T05:16:00.000-07:002008-07-10T05:18:21.738-07:00[Maikling Kwento] Walang Panginoon ni Deogracis Rosario<p class="MsoNormal" style="margin: 0in 0in 0pt; text-align: center;" align="center"><strong><span style="font-family:Arial,Helvetica,sans-serif;"><span style="font-size:85%;">inisip ko na maraming maghahanap nito sa Filipino kaya pinost ko nalang dito..<br /></span></span></strong></p><p class="MsoNormal" style="margin: 0in 0in 0pt; text-align: center;" align="center"><strong><span style="font-family:Arial,Helvetica,sans-serif;"><span style="font-size:85%;"><br /></span></span></strong></p><p class="MsoNormal" style="margin: 0in 0in 0pt; text-align: center;" align="center"><strong><span style="font-family:Arial,Helvetica,sans-serif;"><span style="font-size:85%;">WALANG PANGINOON<o:p></o:p></span></span></strong></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-align: center;" align="center"><span style="font-family:Arial,Helvetica,sans-serif;"><span style="font-size:85%;">ni Deogracias Rosario</span></span></p><p class="MsoNormal" style="margin: 0in 0in 0pt; text-align: center;" align="center"><br /><span style="font-family:Arial,Helvetica,sans-serif;"><span style="font-size:85%;"><o:p></o:p></span></span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;"><o:p></o:p></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;"><span style=";font-family:Arial,Helvetica,sans-serif;font-size:85%;" >Nang makita ni Marcos sa kanilang lumang orasan na ang mahabang hintuturo ay malapit nang sumapit sa ika-12 samantalang nakapako na sa ika-8 ang maikling daliri, hindi niya malaman kung saan siya magtutungo. Isiniksik niya ang kanyang ulo kahi't saan. Saka ang dalawa niyang hintuturo ay ipinapasak sa mga butas ng kanyang tainga. Ayaw niyang marinig ang animas. Ayaw niyang mapakinggan ang malungkot na palo ng bakal sa malaking kampanang tanso sa kampanaryo ng simbahan sa kanilang bayan. Gayon man, kahi't saan siya magsiksik, kahi't saan siya magtago, kahi't na anong gawin niyang pagpapasak sa kanyang tainga ay lalong nanunuot sa kanyang pandinig ang malungkot na tinig ng batingaw.</span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in; text-align: justify;"><span style=";font-family:Arial,Helvetica,sans-serif;font-size:85%;" >"Tapos na ba?" Tapos... ang sunud-sunod namang itinutugon ng kanyang ina na paniwalang-paniwala hindi nga niya naririnig ang malungkot na animas.</span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in; text-align: justify;"><span style=";font-family:Arial,Helvetica,sans-serif;font-size:85%;" >"Ngunit, Marcos…" ang baling uli ng matandang babae sa anak. "Bakit ayaw mong marinig ang oras na ukol sa kaluluwa? Iya'y nagpapagunita sa mga tao na dapat mag-ukol ng dalangin sa ikaluluwalhati ng mga kaluluwang nasa kabilang buhay. Una-una'y ang iyong ama, ikalawa'y ang kapatid mong panganay, ikatlo'y ang kapatid mong bunso, saka… saka si Anita." Ang huling pangalan ay binigkas na marahan at madalang ng matandang babae.</span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in; text-align: justify;"><span style=";font-family:Arial,Helvetica,sans-serif;font-size:85%;" >Si Marcos ay hindi kumibo. Samantalang pinapangaralan siya ng kanyang ina, ang mga mata niyang galling sa pagkapikit kaya't nanlabo pa't walang ilaw ay dahan-dahang sinisiputan ng ningas, saka manlilisik at mag-aapoy.</span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in; text-align: justify;"><span style=";font-family:Arial,Helvetica,sans-serif;font-size:85%;" >Hindi rin siya sumasagot. Hindi rin siya nagsasalita. Subali't sa kanyang sarili, sa kanyang dibdib, sa kanyang kaluluwa ay may pangungusap, may nagsasalita.</span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in; text-align: justify;"><span style=";font-family:Arial,Helvetica,sans-serif;font-size:85%;" >"Dahil din sa kanila, lalung-lalo na kay Anita, ayaw kong marinig ang malungkot na tunog ng batingaw," ang sinasabi ni Marcos sa sarili. Kinagat niya ang kanyang labi hanggang sa dumugo upang huwag ipahalata sa ina ang pagkuyom ng kanyang damdamin.</span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in; text-align: justify;"><span style=";font-family:Arial,Helvetica,sans-serif;font-size:85%;" >Akala ng ina'y nahuhulaan niya kung ano ang nasa loob ni Marcos. Sa wari ng matanda ay nababasa niya sa mga mata ng anak ang lihim ng puso nito. Naiisip niyang kaya nalulungkot si Marcos ay sapagka't hindi pa natatagalang namatay si Anita. Ang magandang anak ni Don Teong, mayamang may-ari ng lupa nilang binubuwisan. Nalalaman ng ina ni Marcos na lahat ng pagsisikap nito sa bukid, lahat ng pag-iimpok na ginagawa upang maging isang ulirang anakpawis ay ukol kay Anita. At siya'y namatay! Naramdaman din ng ina ni Marcos kung gaano kakirot ngang maging malungkutin ang kanyang anak. Ito ay kanyang ibig libangin. Ito ay nais niyang aliwin. Kung maaari sana'y mabunutan niya ng tinik na subyang sa dibdib ang kanyang anak.</span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in; text-align: justify;"><span style=";font-family:Arial,Helvetica,sans-serif;font-size:85%;" >"Lumakad ka na Marcos, sa kubo nina Bastian. Tila may belasyon sila, o, baka kailanganin ang mabuting mang-aawit at manunugtog ng gitara," ang sabi ng ina. "Walang pagsalang masasayahan ka roon."</span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in; text-align: justify;"><span style=";font-family:Arial,Helvetica,sans-serif;font-size:85%;" >"Si Inang naman," ang naibulalas na lamang ni Marcos. Iyan lamang ang kanyang nasasabi nang malakas. Sa kanyang sarili'y naidugtong niya na hindi masusukat ng kanyang ina kung gaano ang pait para sa kanya ang pagkamatay ni Anita, palibhasa'y lingid sa kaalaman ng matanda ang tunay na nangyari sa pagkamatay nito.</span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in; text-align: justify;"><span style=";font-family:Arial,Helvetica,sans-serif;font-size:85%;" >Kung nalalaman lamang ni Inang ang lahat, ang nasasabi niya uli sa kanyang sarili samantalang minamasdan niya ang isang ulilang bituin sa may tapat ng libingan ng kanilang bayan, na ipinapalagay niyang kaluluwa ni Anita, "disi'y hindi ako itataboy sa kasayahan."</span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in; text-align: justify;"><span style=";font-family:Arial,Helvetica,sans-serif;font-size:85%;" >Pinag-uusapan pa lamang ng mag-ina nang umagang yaon ang malaki nilang kapalaran sapagka't mabuti ang lagay ng tanim nilang palay nang isang utusan sa bahay-pamahalaan ang dumating taglay ang utos ng hukumang sila'y pinaaalis sa kanilang lupang kinatatayuan. Sinasamsam<span style=""> </span>ni Don Teong na ama ni Anita ang lahat ng lupa nilang sinasaka.</span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in; text-align: justify;"><span style=";font-family:Arial,Helvetica,sans-serif;font-size:85%;" >"Inang, matalim ba ang itak ko?" ang unang naitanong ng anak sa ina matapos matunghayan ang utos ng hukuman.</span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in; text-align: justify;"><span style=";font-family:Arial,Helvetica,sans-serif;font-size:85%;" >"Anak ko!" ang palahaw na pananangis ng matandang babae, sabay lapit sa leeg ng anak. "Bakit ka mag-iisip nang gayon, sa tayo na lamang dalawa ang nabubuhay sa daigdig?"</span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in; text-align: justify;"><span style=";font-family:Arial,Helvetica,sans-serif;font-size:85%;" >Ang tinig ng matanda ay nakapagpalubag ng kalooban ng binata. Gayon man, sa harap ng bagong pithaya ng may-ari ng lupang kanilang binubuwisan, ay isa-isang nagbabalik sa alaala niya ang malungkot na kasaysayan ng kanilang lupang sinasaka.</span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in; text-align: justify;"><span style=";font-family:Arial,Helvetica,sans-serif;font-size:85%;" >Ang sabi'y talagang sa kanunu-nunuan ng kanyang ama ang naturang lupa. Walang sino mang sumisingil sa kanila ng buwis at walang sinumang nakikialam sa anumang maging bunga ng kanilang mga tanim, maging mais o tubo, o kaya'y maging anuman sa mga gulay na tanim nila sa bakuran.</span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in; text-align: justify;"><span style=";font-family:Arial,Helvetica,sans-serif;font-size:85%;" >Subali't nang bata pa ang kanyang ama ay may nagsukat ng lupa sa sinsabing kanila. Palibhasa'y wala silang maibabayad sa manananggol, ang pamahalaan ay nagkulang ng malasakit sa kanilang karalitaan upang tangkilikin ang kanilang katwiran at karapatan. Sa wakas ay napilit silang mamuwisan nang di nila makuhang umalis doon.</span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in; text-align: justify;"><span style=";font-family:Arial,Helvetica,sans-serif;font-size:85%;" >Noong bata pa si Marcos, ang bayad nila'y isang salapi lamang isang taon sa bawat ektarya ng lupang kanilang sinasaka. Subalit nagtatagal, unti-unti na silang nababaon sa pagkakautang sa maylupa dahil sa mga kasunduang ipinapasok sa pana-panahon, ..:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" /><st1:city st="on"><st1:place st="on">gaya</st1:place></st1:city> ng takipan at talinduwa.</span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in; text-align: justify;"><span style=";font-family:Arial,Helvetica,sans-serif;font-size:85%;" >Kaya namatay ang ama ni Marcos ay dahil sa malaking sama ng loob kay Don Teong. Ang kapatid niya'y namatay din sa paglilingkod sa bahay nito, at higit sa lahat, nalaman niyang kaya namatay si Anita ay sapagka't natutop ng ama nakipagtagpo minsan sa kanya sa loob ng halamanan, isang gabing maliwanag ang buwan.</span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in; text-align: justify;"><span style=";font-family:Arial,Helvetica,sans-serif;font-size:85%;" >Saka ngayo'y paalisin naman sila sa kanilang bahay at lupang binubuwisan?</span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in; text-align: justify;"><span style=";font-family:Arial,Helvetica,sans-serif;font-size:85%;" >Si Anita ay lihim na naging kasintahan ni Marcos, mahigit nang isang taon noon. Sapul nang dumating si Anita sa kanilang bayan buhat sa pag-aaral sa isang kolehiyo ng mga madre sa Maynila, si Marcos ay nagsimpan na ng malaking pag-ibig sa kanya. Alam ni Marcos ang kanyang kalagayan na halos ay lumaki sa ibabaw ng kalabaw at sa pagtikin sa kanilang damo sa ilog.</span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in; text-align: justify;"><span style=";font-family:Arial,Helvetica,sans-serif;font-size:85%;" >Si Marcos ay natapos lamang ng katesismo sa iskuwelahan na silong ng kumbento sa kanilang bayan at natutong sumulat sa pisara ng malaking numero. Nguni't gayon man, nagsikap siyang idilat ang kanyang mga mata sa liwanag ng kabihasnan at pagkaunlad. Katutubo kay Marcos ang hilig sa pagkatuto sapagaka't sa pag-anib niya sa mga samahang pambayan ay natuklasan niyang walang mabuting paaralan kundi ang pahayagan. Walang aklat, walang pahayagan at lingguhan sa sariling wika na hindi binabasa ni Marcos, kahi't manghiram lamang kung wala na siyang ibili. Nagbasa rin siya ng nobela at ibang akdang natutuhan niya sa wikang Tagalog o kaya'y salinwikang nito.</span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in; text-align: justify;"><span style=";font-family:Arial,Helvetica,sans-serif;font-size:85%;" >Lalo na nang magsimpan siya ng pag-ibig kay Anita, wala siyang inaalagata sa kanyang buhay kundi ang baling araw ay maging karapat-dapat sa mga kamay ng anak ni Don Teong na may-ari ng lupa nilang sinasaka. Isa pa'y bukod sa naniniwala siya sa kasabihan, "Ang lahat ng tao, kahi't hindi magkakakulay ay sadyang magkakapantay," tinatanggap din niya ang palasak ng kawikaang "Ang katapat ng langit ay pusalian." Dahil diyan kaya kahi't bahagya ay hindi siya nag-atubili ng pagsisimpan ng pag-ibig kay Anita.</span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in; text-align: justify;"><span style=";font-family:Arial,Helvetica,sans-serif;font-size:85%;" >At naiibig naman siya ng anak ni Don Teong. Bakit hindi siya maiibig? Minsan si Anita ay namangka sa kanilang ilog, gumiwang ang bangka at nahulog sa tubig. Si Marcos noon ay nasa lamo at lihim niyang sinusundan ang bakas sa tubig ni Anita. Nang makita niya ang malaking sakuna ay lumundag siya sa ilog ata sa pamamagitan ng langoy na hampas-tikin ay inabot niya si Anita na kumakamot sa ilalim ng ilog. Matapos niyang kalawitin ng kaliwa niyang bisiig sa may baba ang dalaga ay bigla niyang isinikdaw ang dalawa niyang paa sa ilalim kaya't pumaibabaw sila, at sa tulong ng pagkampay ng kanyang kamay at pagsikad ng dalawa niyang paa ay nakasapit sila sa pampang.</span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in; text-align: justify;"><span style=";font-family:Arial,Helvetica,sans-serif;font-size:85%;" >"Marcos, matagal na naman kitang iniibig," ang pagtatapat ni Anita sa binata, makaraan ang may ilang buwan buhat nang siya'y mailigtas.</span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in; text-align: justify;"><span style=";font-family:Arial,Helvetica,sans-serif;font-size:85%;" >Tatlumpung araw ang taning sa mag-ina upang lisanin ang lupang gayong ang sabi ay ari ng kanilang ninuno at binubuwisan na nila at sinasamsam pa ngayon. At saka silang mag-ina ay itinataboy. Sino ang hindi magdadalang-poot sa gayong kabuktutan.</span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in; text-align: justify;"><span style=";font-family:Arial,Helvetica,sans-serif;font-size:85%;" >Dahil sa kanyang ina, natutong magtiim si Marcos ng kanyang mga bagang. Kinagat niya ang kanyang mga labi upang huwag mabulalas ang kanyang galit. Kinuyom niya ang kanyang mga kamay hanggang matimo sa palad niya ang kanyang mga kuko.</span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in; text-align: justify;"><span style=";font-family:Arial,Helvetica,sans-serif;font-size:85%;" >Isang takipsilim nang marinig niya sa kampanaryo ng kanilang simbahan ang malungkot na agunyas. Una muna ang malaking kampana saka sumunod ang maliit. Bang! Teng! Bang! Teng! Babae<span style=""> </span>ang nalagutan ng hinihinga. Maliit naman ang kanilang bayan upang malihim pa kung sino ang binawian ng buhay. Wala siyang nalalaman na may sakit kundi si Anita. Dahil sa pagkatutop sa kanila isang gabi, ang dalaga ay sinaktang mabuti ng ayon sa nagbalita kay Marcos ay mata lamang ang walang latay.</span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in; text-align: justify;"><span style=";font-family:Arial,Helvetica,sans-serif;font-size:85%;" >Buhat noon ay nagkasakit na si Anita. Araw-araw ay tumatanggap si Marcos ng balita. At nang tangkain niyang dumalaw minsan ay hinarang siya ni Don Teong na may hawak na rebolber. Susuong din <st1:city st="on"><st1:place st="on">sana</st1:place></st1:city> si Marcos, subalit nagdalawang-loob siya. Maaaring maging dahilan iyon ng bigla pang pagkamatay ng kanyang iniibig, bukod sa magiging subyang sa kanyang ina kung siya ay mawawala.</span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in; text-align: justify;"><span style=";font-family:Arial,Helvetica,sans-serif;font-size:85%;" >Ang huling dagok na ito sa kanya ni Don Teong ay isinaman na lamang niya sa talaan ng pagmamalupit sa kanya ng mayamang may-ari ng lupa nilang binubuwisan, pag-agaw ng lupa sa kanila. At saka noo'y pagtatangka pa sa kanyang buhay. Pinakahuli nga ang pagkamatay nang tuluyan ni Anita, na ayon sa balita niya'y nalagutan ng hiningang siya ang tinatawag. Saka nitong huli ay pagpapaalis sa kanilang lupang kinagisnan at pinagyaman sa tulo ng kanilang pawis na mag-anak.</span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in; text-align: justify;"><span style=";font-family:Arial,Helvetica,sans-serif;font-size:85%;" >Ngunit si Marcos, isang manggagawang hubog sa palihan ng bagong panahon, lumaki ang puso sa mga pagtitiis. Naging maluwag nga ang kanyang dibdib sa pagtanggap ng pang-aapi ng may-lupa. Hanggang noong bago mamatay si Anita, akala niya'y maaari pa siyang makalunok ng bagong pag-upasala ng itinuturing niyang panginoon. Datapwat nang tanggapin niya ang utos ng hukuman na pinaalis sila roon, talagang nagdilim ang kanyang isip. Noon pa'y naisip na niyang gawing batas ang kanyang kamay, yamang hindi na niya matatamo ang katarungan sa hukuman ng mga tao.</span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in; text-align: justify;"><span style=";font-family:Arial,Helvetica,sans-serif;font-size:85%;" >"Huminahon ka anak ko," ang sabi ng kanyang ina. "Hindi natutulog ang Bathala sa mga maliliit. Magtiis tayo."</span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in; text-align: justify;"><span style=";font-family:Arial,Helvetica,sans-serif;font-size:85%;" >Hindi niya itinuloy ang paghanap sa kanyang itak na matalas. Pagkakain niya ng agahan, nilibang niya ang kanyang ina saka lumabas sa bukid. <st1:city st="on"><st1:place st="on">Gaya</st1:place></st1:city> rin ng dati'y sinakyan niya ang kanyang kalabaw na lalong mahal niya sa lahat sa limang alaga niya. Lumabas siya sa bukid at hinampas niya ng tanaw ang karagatan ng namumulang ginto. Pagdaramdam at panghihinayang ang ngumatngat sa kanyang puso. Gaanong pagod ang kanyang pinuhunan upang ang palay nila'y magbungang mabuti? Saka ngayo'y pakikinabangan at matutungo lamang sa ibang kamay.</span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in; text-align: justify;"><span style=";font-family:Arial,Helvetica,sans-serif;font-size:85%;" >Napapalatak si Marcos sa ibabaw ng kanyang kalabaw. Ibig mang pagdiliman ang isip kung nagugunita ang utos ng hukuman, ang alaala naman ng kanyang ina'y walang iniwan sa bahagharing sumusugpo sa nagbabalang unos. Dadalawa na lamang sila sa daigdig at ayaw niyang pabayaan ang kanyang ina; ipinangako niyang hahandugan ng kaligayahan ang nalalabing buhay nito, bago malagutan ng hininga ang kanyang ama.</span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in; text-align: justify;"><span style=";font-family:Arial,Helvetica,sans-serif;font-size:85%;" >Dahil nga sa kanyang ina, kaya naisip niya ang kabutihan kung sila'y magsasarili: "Tutungo sa hilaga at kukuha ng homestad. Kakasundo ng mga bagong magsasaka; <st1:city st="on">paris</st1:city> ni Don Teong, kailangang magkaroon din ako ng gayak <st1:city st="on"><st1:place st="on">paris</st1:place></st1:city> niya."</span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in; text-align: justify;"><span style=";font-family:Arial,Helvetica,sans-serif;font-size:85%;" >Kabalintunaan man ang sinabi ng anak ay hindi na nag-usisa ang ina palibhasa'y nababatid niyang sa dibdib ng binata ay may isang halimaw na natutulog na hindi dapat gambalain upang huwag magising. Wala siyang nalalaman kundi tuwing takipsilim, kung nakaligpit na ang mga tao sa nayon ang buong kagayakan ay isinusuot ng kanyang anak saka lumalabas sa bukid. May dalawang linggong gayon nang gayon ang ginagawa, hanggang isang araw ay tawagan siya ng pansin ng matanda.</span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in; text-align: justify;"><span style=";font-family:Arial,Helvetica,sans-serif;font-size:85%;" >"Marcos," sabi ng matanda. "Dalawang lingo na lamang ang natitira sa ating taning ay hindi mo ginagawa ang pakikipagtuos kay Don Teong… kung may magiging sukli man lamang tayo sa ating ani ngayon?"</span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in; text-align: justify;"><span style=";font-family:Arial,Helvetica,sans-serif;font-size:85%;" >"Huwag ka pong mabahala, Inang," sabi ng mabait na anak. "Nalaglag po ang dahon sa kanyang kapanahunan."</span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in; text-align: justify;"><span style=";font-family:Arial,Helvetica,sans-serif;font-size:85%;" >Talinghaga na naman ang sinabi ni Marcos. Gayon man may nagunita siyang isang bagay na ibig niyang malaman sa anak.</span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in; text-align: justify;"><span style=";font-family:Arial,Helvetica,sans-serif;font-size:85%;" >"Bakit hindi mo iniuwi ang kalabaw sa bakuran?" Tinutukoy niya ang kalabaw na mahal na mahal sa lahat ni Marcos.</span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in; text-align: justify;"><span style=";font-family:Arial,Helvetica,sans-serif;font-size:85%;" >Maaaring magpakahinahon si Marcos, subali't ang huling kapasiyahan ni Don Teong ay namukaw ng lahat ng kanyang pagtitimpi. Ayaw niyang gumamit ng dahas, subalit…</span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in; text-align: justify;"><span style=";font-family:Arial,Helvetica,sans-serif;font-size:85%;" >Nagunita niya ang sinabi ni Rizal. "Walang mang-aalipin kung walang magpapaalipin." Napailing siya sa harap ng gayong masaklap na katotohanan. Patung-patong na ang ginagawang pamamaslang sa kanya ni Don Teong – takalang dapat nang kalusin. Nagunita rin ni Marcos ang marami pang ibang kasama, katulad din niya, na sa kamay ng mayamang si Don Teong ay walang iniwan sa mga leeg na manok na unti-unting sinasakal hanggang makitil ang hininga sa hangad na mahamig na lahat ang kayamanang gayong minana sa kanilang mga ninuno ay iba ngayon ang may-ari at nagbubuwis pa.</span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in; text-align: justify;"><span style=";font-family:Arial,Helvetica,sans-serif;font-size:85%;" >"Kailangang maputol ang kalupitang ito!" Ang tila pagsumpa sa harap ng katalagahang ginawa ni Marcos.</span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in; text-align: justify;"><span style=";font-family:Arial,Helvetica,sans-serif;font-size:85%;" >"Bakit ka bumili ng pulinas, gora, suwiter, at latigo, anak ko?" ang tanong ng matanda kay Marcos, isang araw na dumating siyang pagod na pagod sa naturang dala-dalahan.</span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in; text-align: justify;"><span style=";font-family:Arial,Helvetica,sans-serif;font-size:85%;" >"Inihahanda ko po iyon sa pagiging panginoon natin, <st1:city st="on"><st1:place st="on">paris</st1:place></st1:city> ni Don Teong," ang nakatawang sagot ng anak. "Kung tayo po'y nakaalis na rito, tayo'y magiging malaya," ang tila wala sa loob na tugon ng anak.</span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in; text-align: justify;"><span style=";font-family:Arial,Helvetica,sans-serif;font-size:85%;" >Ang totoo, ang naturang kalabaw ni Marcos ay nakapugal sa hanggahan ng lupang sarili ni Don Teong. Kung takipsilim ay isinusuot na lahat ni Marcos ang pulinas, ang gora, at ang suwiter, saka dala ang latigong katulad ng pamalo ni Don Teong. Pagdating niya sa pook na kinapupugalan ay saka aasbaran ng palo ang kalabaw hanggang sa ito'y umuungol na ang alingawngaw ay abot hanggang sa kalagitnaan ng bayan. Kung dumating siya'y dinaratnan niya ang kanyang inang matuwid ang pagkakaluhod sa harap ng isang maitim na Santo Kristo sa kanilang silid na naiilawan ng isang malaking kandila.</span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in; text-align: justify;"><span style=";font-family:Arial,Helvetica,sans-serif;font-size:85%;" >"Salamat, anak ko, at dumating ka," ang sasabihin na lamang ng matanda. "Akala ko'y napahamak ka na."</span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in; text-align: justify;"><span style=";font-family:Arial,Helvetica,sans-serif;font-size:85%;" >Si Don Teong ay may ugaling maglibot tuwing hapon sa paligid-ligid ng kanyang lupa. Ang ipinanganganib ng ina ni Marcos ay baka magkasalubong ito at ang kanilang panginoon, ay hindi makapagpigil ang isa't isa. Nalalaman din ng matandang babae na laging may dalang rebolber sa baywang ang mayamang asendero buhat nang magkaroon ng alitan dahil sa lupa, kaya lagi niyang inaalaala ang pag-alis-alis ni Marcos.</span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in; text-align: justify;"><span style=";font-family:Arial,Helvetica,sans-serif;font-size:85%;" >Subalit isang hapon, samantalang payapang inihahanda ng mag-ina ang kanilang pag-alis, walang iniwan sa putok ng bulkan ang balitang kumalat sa bayan na si Don Teong ay namatay sa pagkasuwag ng kalabaw. Sinabi ng mga nakakita na pagkakita pa lamang ng kalabaw kay Don Teong ay tila may sinumpang galit sapagka't bigla na lamang sinibad ang matanda at nasapol ang kalamnan ng sikmura ng matulis na sungay ng hayop. Pagkasikwat sa katawan ng asendero ay tumilapon pa sa itaas at paglagpak ay sinalo naman ng kabilang sungay.</span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in; text-align: justify;"><span style=";font-family:Arial,Helvetica,sans-serif;font-size:85%;" >Ang katawan ni Don Teong ay halos lasug-lasog nang iuwi sa bayan, wasak ang suwiter sa katawan at saka ang pulinas. Kumilos agad ang maykapangyarihan upang gumawa ng kailangan pagsisiyasat subali't ang lahat ng matuwid ay nawalan ng halaga sa hindi kumikilos na ayos ng kalabaw na animo'y wala sa loob ang ginawa niyang napakalaking pagkakasala.</span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in; text-align: justify;"><span style=";font-family:Arial,Helvetica,sans-serif;font-size:85%;" >Nang malamang kay Marcos ang kalabaw, bawat isa'y nagkatinginan. Hindi nila malaman kung papaanong ang poot ni Marcos kay Don Teong ay nagtungo sa alaga niyang hayop.</span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in; text-align: justify;"><span style=";font-family:Arial,Helvetica,sans-serif;font-size:85%;" >Si Marcos ay nakatingin din sa orasan nang gabing yaon. Tatlong minuto na lamang ang kulang sa ika-8 ng gabi. Hindi siya gumagalaw,<span style=""> </span>hindi siya nababahala.</span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in; text-align: justify;"><span style=";font-family:Arial,Helvetica,sans-serif;font-size:85%;" >Tumugtog ang animas. Hindi na <st1:city st="on"><st1:place st="on">gaya</st1:place></st1:city> ng dating ayaw niyang marinig ito. Sa halip na idalangin, ang kaluluwa ng mga namatay, ang naisip niya'y ang matapang niyang kalabaw.</span></p> <p class="MsoNormal" style="margin: 0in 0in 0pt; text-indent: 0.5in; text-align: justify;"><span style=";font-family:Arial,Helvetica,sans-serif;font-size:85%;" >"Mapalad na hayop na walang panginoon," ang kanyang naibulong.</span></p>Unknownnoreply@blogger.com37