c








  




 ! " c !,
c" 5
6"
#c
 #c
 #c

$%&'
($)
* //0c%c
." &02
"5
+,-
.   -
.  7
 -
. 
/%/%$012%/1 /%#/2)#)&#' 0#/8%08&)
3,$04," ,$#4," 54,"
 


p


p
 
 Financial Accounting System is to prepare financial reports that
provide information about firm¶s performance to external parties
Y  such as investors, creditors, and tax authorities. And to solve the
Financial Accounting is one of the most challenging courses in the common problem that encounters inaccurate results.
education. Due to the various effects of globalization, the
accounting strategies that applied in the businesses are the most $
*" %&"'"(
effective way to secure the financial resources. The financial
The following are the specific objectives of the study:
aspect of the business is the most important strength in all of the
type of businesses. Financial Accounting system in the businesses jY Speed and Data accessibility, to process
plays an essential role in helping the business leaders generate quickly and how easy is it to get the
necessary information.
their own decisions. And with the appropriate application of the
jY To have highly integrate data
accounting methods, the entire organization can be drive directly jY To spend less time in searching and
to the success of the business. retrieving of files.
jY Vood report distribution, if the MPCC need
Y  !"
# to have a certain piece of information to
make fully informed decision.
The proponents want to know the reasons of Mabuting Pastol jY Implement adaptable financial business
Credit Cooperative MPCC in using the old Manual System. The processes on a global scale
proponents conduct a study towards the topic because there are jY Improve user productivity through easy
some Company still uses manual Management System. reporting, querying, and data entry
The reasons for the development of the new system include such
as saving time, accuracy, reliability, and for the records to be safe +Y
 " !"
#
kept and to improve the current system by making it faster and The following are the Beneficiaries of our Proposed System:
more efficient way when handling transaction for their Investors. 
This study aims to change the current system that would be ("
accurate for Investors, Creditors and Cooperative. We are There will be less paperwork and there will be less time
consumed. Assessing the investors and creditors record will also
developing a Financial Accounting System under Business
be easier, faster, more precise and accurate.
Intelligence. It is developed to meet the needs of a broad general 
market. ,*#
Secure MPCC contracts and successfully manage investments,
$Y %&"'"( !"
# underpinning asset values. It will also make the establishment
more efficient in terms of providing faster and more efficient
$"")%&"'"( quality servicer

This study intends to develop a Financial Accounting System that

could cater all Transactions and provide the information that is

needed for sound economic decision making. The main purpose of

"("!" implication to the present study essential for the developed
Manage MPCC by human resource policies which encourage and system.
reward individual and unified effort and achievement, provide
training and personal development opportunities and create a
working environment in which staff can feel a real scene of job ))""
involve.
 Local literature comprises by some material such as
 books, magazines, and newspaper that are relevant to support and
 enriched the developed of system. In Manila Bulletin dated
 August 22, 2008, It said that Jollibee deploy BUSINESS
-Y
*",( INTELLIVENCE TECHN±L±V , because Jollibee is a
showcase of success strong in the fast food industry. They junked

*" their old system in favor of newly developed system using .net
platform. According to their executive, they are not happy and
±ur proposed system includes investor¶s savings, credits, several dissatisfied with our old system and replaced it with .net platform.
loan packages, including: livelihood, house renovation,
Since web application spreads incredibly throughout the
educational loan, scholarships. It also includes Balance sheets,
world, different areas of the business were uplifted into a higher
profit and loss account, Cash Flow statements and Ratio Analysis degree of advancement. This technology greatly has a profound
influence to mankind. It increases business competency, accuracy,
,( and productivity. To give explanation for the statement above in a
magazine entitled Computer World, Philippines Volume 14,
The proposed System uses Local Area Network (LAN), it is not Number 46, Valdez (2004) stated that,
capable of employee transactions such as payroll and inventory of â
 

 




 

the Cooperative supplies.    
  


  

 


.Y "  p",(
*"( ß updates the current information and save to
Database.
"! ß shows the information status of the customer, rooms,
reservation, checkedßin and checkedßout reports
")"" ± remove entries in Database

 ± allow editing the information of customer, rooms,
reservation and checkedß in status.
#(", ± is a set of interacting or interdependent system
components forming an integrated whole.
(," ± provides biographical information which will be

checking in.

,*)#"" ± A person in the service of another under any
contract of hire.
,( ß a person for the performance or management
of administrative business operations.
 / A reservation in the tourism and hospitality
industries.
  
As Mr. Valdez emphasized, going web based is a widely
known strategic approach of many firms today. With regards to
this, our study aims to develop a new opportunity to the project in
order to be competent in the strategy of other companies that
already embraces the web as new communication tool. Nowadays
about 90% of the company¶s system are running in .net integrated
application and technology platform.
With relevance to the study, the developed system was
expected to be more efficient and competitive. Moreover Joel D.
Pinaroc (2005) wrote in his column in Manila Bulletin dated
August 22, 2005, entitled Toshiba partner optimist According to
Vicente C.Tantuico Jr. the executive vice president and chief
operating officer of Tricom,


     !""#$% $ 
 
  

!""&#

2")""
Various accounting education became part of the education.
Through the educational settings, the control in the financial
resources is placed in the hands of the accountants. Moreover,
they can assess the various difficulties that might involve in the

0
1 2 
 p
 p
 p
 accounting profession (McKinstry and Fletcher, 2002). The


p

 participation of the accounting system in the control of the
"'"3 ")")""
This part of the study comprised by some published materials
including books and magazines of some internationally acclaimed
authors which are significant to support the enhancement of the
study shall be discussed thoroughly on this part, well rounded
professionals and person who conducted with the relevant
resource can be the technology of control ( ayla, 2007). Every
accounting manager is given a chance to perform his function and
the same time with the level of control. Accounting, as a form of
transactions, also conceptualized the importance of the
relationship or interaction between the control and the trust
building. The accounting control being given by the managers is
under the organizational structure therewith having the potential
in safeguarding the organizations longßterm interests. As a
technology of control, the accounting enables the leaders or the
managers to commit themselves in giving decisions in relation to
 the calculations and presentation of accounts of the reports.
Through the deep understanding of the business corporate, the
control can be given which will result in positive behavioral
expectations. The performance of the manager depends on how
well he used the allocated resources in finishing the business
operation without any additional costs and in a given time
 O


- .$*!#*(&,
'

!""(#$
/
O

The strategic control functions in providing the information about
- *(&governs the standardization of accounting
the enterprise¶s financial and longßrun competitive performance,
different market conditions, the consumers taste and preferences,
and various technological innovations (Heeren, 2001). In the
relation of the technology, accounting professionals welcomes the
idea of the software that can help them in their everyday tasks.
Aside from the computers, the managerial accountants can use
/
O
different templates or database where they can easily access on
the recorded data. Meanwhile, the costing system can be used by
the financial manager to help them guide in thorough decision
making )
!""#$ PRACTICES IN THE PHILIPPINES 4 ,
***
YYYYYYYYYYYY
YYY
basis for Philippine accounting standards in 1996. Today¶s
governing legislative and institutional framework is
comprehensive. In common with the US model, arrangements
reflect a mixture of government intervention and selfßregulation.
The key legislative planks of the Philippine accounting and
auditing system are the ,
the  
, the ,
!""", and the . 
0

,
***. The ,
O


education, stipulates the examination process for CPA
registration, and regulates the practice of accountancy. The
Professional Regulation Commission (PRC), through the B±A,
administers the law. The SEC enforces the  
,
which governs the creation and operations of limited liability
corporations. The SEC also administers the ,
!""", which applies to companies listed on the Philippine Stock
Exchange. Among other things, the . 
0


DIAVN±STIC STUD ±F ACC±UNTINV AND AUDITINV
requires that tax agents (including CPAs) be accredited
by the Bureau of Internal Revenue (BIR). Financial reporting
Y
Y disclosure requirements are governed by both mandatory and
advisory sources. Mandatory sources include (i) the legal
This part of Documentation contains several studies requirements in the . 
0

,
***; (ii)
concerning documentary works of other graduates, coßstudents, Statements of Financial Accounting Standards (SFASs) issued by
and both local and international professionals with the same study Accounting Standards Council (ASC); and (iii) rules and
in order to enrich further, their background about the developed regulations issued by the SEC governing the form and content of
system. financial statements. The Bangko Sentral ng Pilipinas (Central
Bank of the Philippines) prescribes disclosures
 for financial institutions. All companies with quarterly sales
)
"( exceeding P100,000 ($2,000) must have their financial statements
 audited and signed by a CPA. SEC rules require listed companies
This part comprise by some Local studies, which is relevant to file quarterly reports within 45 days of the quarterßend
to the study. Technology has taken a big leap forward in 21st o
12
 3    
-
%$  $***$'
century, with computer programs, electronics upgrading by the 4, 
4
4' 
41', 
O



month & even by the day. Technology has influenced & greatly 

$O

O

simplified almost in every aspect of a student¶s life today. It is
O
 
%
$!+#$$+"+5+!($†
amazing what technology has done to our society and how
dependent we have become on it. Having computers in the
2"
"(
workplace has enable the business to our more efficiently and has This part covers the studies of some and foreign
contributed in having on all around. better businesses, using professionals that are valuable for the system. It allows the
computers cut down our work time, we don¶t have to write proponent to recognize some documentation and researches that
everything out by hands or type out on typewriters. This increase are beneficial in the development of our Proposed System.
in usage of computer proves that computers have affected every
aspect of our lives and have become one of the necessities. Many 2.2.2.1 O Y
 Y
YY
Y
developers have contributed to such an advancement and

YYO YY
widespread of computer technology.
The Philippine accounting and auditing system is directly
influenced by US and, more recently, international arrangements
and practices. The O


O*!+created the Board of accounting practices across countries. Investment professionals
Accountancy (B±A) and gave it the authority to issue certified
public accountant (CPA) certificates. Six years later, the
Philippine Institute of Certified Public Accountants (PICPA) was
established within the private sector to represent professional
interests.Many of the larger Philippine companies were
subsidiaries or branches of American companies and their
accounting reflected United States (US) practices. Even after
independence in 1946, the US maintained close trade and
investment links. Philippine accounting and auditing moved away
from US influences towards international practices in the 1990s.
For instance, the International Accounting Standard became the

Y
Accounting Standards Committee (IASC) and the International
±rganization of Securities Commissions (I±SC±) have devoted
considerable effort to standardization or harmonization of
claim that accounting differences may impede international
capital flows (Choi and Levich, 1991). This study examines the
relation between accounting numbers and firm market values in
six Asian countries with diverse accounting practices: Indonesia,
Korea, Malaysia, the Philippines, Taiwan, and Thailand. We focus
on the incremental and relative explanatory power of book value
and residual earnings. Because accounting systems differ across
the six countries, we examine whether those differences are
related to the valuation usefulness of accounting measures. ±ur
objective is to provide evidence on the value relevance of
accounting numbers from different accounting systems. Such
evidence should inform the current debate over international
accounting standards and practices.±ur analysis follows a model
developed by Preinreich (1938), Edwards and Bell (1961), and
Peasnell (1982) and formalized by ±hlson (1991, 1995) and
Feltham and ±hlson (1995) sometimes termed the Residual
Earnings (Income) model. The model formally states a simple
concept: firm value is a function of book value and future residual
earnings.A key aspect of the model is that its valuation accuracy
does not depend on a particular set of ``good'' accounting
revaluations. Korea is also the only country not to use the equity
method for affiliated companies. Thus, the earnings of Korean
firms do not include the earnings of affiliated firms. Philippine
firms, however, amortize both goodwill and asset revaluations to
income. Recall that violations of clean surplus accounting occur
when income does not reflect changes in equity value. Thus,
violations of clean surplus bias empirical calculations of residual
earnings. Therefore, we expect the explanatory power of residual
earnings will be highest for Philippine firms and least for Korean
procedures. The only requirement on accounting procedures is and Taiwan firms. (,$6  
,

2$7

#
clean surplus accounting, that is, book value of equity changes
only with income or loss and net capital investments and
withdrawals (dividends) by owners. In addition, empirical
Y
applications of the model to finite horizons are potentially
affected by bias in the
accounting system. Therefore, comparisons across countries with
different accounting practices are one way to investigate the value
relevance of different accounting practices. Across the six
countries, accounting systems vary in their faithfulness to clean
surplus accounting and in the extent to which they exhibit bias
(conservatism). Hence, it is possible that accounting values from
some of the countries may provide better estimates of firm value
than accounting values from the other countries. Therefore, the
usefulness of accounting for firm valuation may differ across
countries as well. ±n the other hand, the accounting standards
developed in these countries may be partly based on International
Accounting Standards (IAS) or US VAAP. This would tend to
make accounting procedures and their value relevance similar.
Saudagaran and Diga (1997) report that of our six countries, only
Korea has not adopted some or all of IAS. We investigate the
value relevance of different accounting practices using an
empirical model that regresses current book value and current
residual earnings on market prices. In contrast, the residual
income model is based on expected residual earnings.
Considerable prior research, as discussed in the next section,
examines the contemporaneous relation between accounting and
market values. In this study, we examine that relation for six
Asian countries. However, our interest is in the relation between
accounting practices and the value relevance of accounting
numbers. We focus on differences in accounting procedures
across the six countries that affect book value and residual
earnings.1 the accounting procedures selected: accounting for
goodwill, asset revaluations, leases, research and development
(R&D) expenditures, and the equity method of accounting for
affiliated companies each may be categorized in terms of
faithfulness to clean surplus and extent of conservatism. We
address the implications of these accounting procedures for the
value relevance of accounting information. Philippine firms, for
example, record goodwill and revalue assets, 446 THE
INTERNATI±NAL J±URNAL ±F ACC±UNTINV Vol. 35, No.
4, 2000 but firms in Taiwan do neither. This means that book
values in the Philippines will reflect market values of assets more
closely than in Taiwan. Therefore, we expect the explanatory
power of book value will be greater for Philippine firms than for
Taiwanese firms. As another example, only Indonesian and
Malaysian firms capitalize leases and R&D expenditures and use
the equity method for affiliated companies. These are less
conservative accounting practices than alternatives used in other
counties. We find accounting in Korea and Taiwan to be least
faithful to clean surplus accounting. Korea does not capitalize
2.2.2.2 O YYO YY
Y
The accounting systems in all six countries have developed
relatively recently. The six accounting systems differ on some
dimensions but are similar on others. Two dimensions
that we examine are (1) the model on which the accounting
systems are based and (2) the type of standard setting body. Table
1 shows these characteristics for the six countries. IAS was the
primary basis for accounting standards in Indonesia, Malaysia,
and Thailand (although Thailand has also been influenced by US
VAAP). US VAAP, on the other hand, was the primary basis in
the Philippines and Taiwan (although Philippine VAAP is
secondarily based on tax law). Korean accounting standards are
unique in that they are based on Korean tax law that, like tax law
in all countries, emphasizes cash realization. Different accounting
models may lead to differences in the value relevance of the
resulting accounting numbers. We have no prior expectations
concerning the relative value relevance of IAS versus US VAAP.
It is likely, however, that tax law is more susceptible
to political influence than other accounting bases. To the extent
that such political influence might serve to make accounting less
informative, Korean accounting may be less value relevant
because it is based on tax law. The standard setting bodies in four
of the six countries are independent of the government. In Korea
and Taiwan, however, standard setting is not independent. Where
standard setting is influenced or controlled by government there is
greater potential for political influence in the standards setting
process. As where accounting follows tax law, this may lead to
lower value relevance of accounting numbers.YWe analyzed the
accounting standards and practices for each country using a
varietyof sources including Akathaporn (1995), Vraham and
Wang (1995), and publicationsfrom the AICPA (1989, 1990,
1992), CIFAR (1995), Deloitte Touche Tohmatsu International
(1995a,b, 1996a,b, 1997), Price Waterhouse (1995a,b,
1996a,b,c,d), and Mathew Bender & Co.(1996). Under the
residual earnings model the only crucial accounting characteristics
are unbiased accounting and clean surplus accounting.
Conservative accounting practices are biased since value changes
are reflected asymmetrically, value declines are recognized more
quickly than value increases. The clean surplus relation (CSR)
allows book value of equity to change only with
income or loss and net capital investments and withdrawals
(dividends) by owners. CSR is violated if changes in book value
can byßpass income. We focus our analysis on the effects of
accounting differences on book value and on residual (abnormal)
earnings, the accounting arguments in the residual earnings
model. However, accounting differences affect valuation only
when they are violations of unbiased accounting or clean surplus
goodwill and asset revaluations are amortized to equity according accounting.o'0


%
 O

$+&.$
to tax law. Taiwan does not capitalize goodwill nor allow asset !"""†
p

  


The Financial Accounting System is one of the most portable and
all inclusive packages on the market today. With our exclusive
system, our system will perform in many different
operating systems, from one to an unlimited number of users, and
successfully handle hundreds of thousands of loans. ±n top of
that, you can upgrade at any time without reßentering the data; just
switch the system manager.