SyCip Gorres Velayo & Co.

Last updated
SGV & Co.
FormerlyW. SyCip & Company
(1946-1947)
SyCip Velayo José & Company
(1947-1953)
Industry Professional services
Founded1946;77 years ago (1946) in Manila, Philippines
Founder Washington SyCip
Headquarters,
Philippines
Key people
Wilson P. Tan
(Chairman)
Website www.sgv.ph

SyCip Gorres Velayo & Company (branded as SGV & Company) is a Philippine multidisciplinary professional services firm.

Contents

As of 2014, SGV & Company has employed over 3,000 professionals from various disciplines, including Certified Public Accountants, legal professionals, economists, human resource professionals, engineers, statisticians, financial analysts, and other business and technical experts.

Since 1996, it has been the only ISO 9002-certified professional services firm in the country and became a member firm of Ernst & Young International on June 6, 2002.

History

Early years

SyCip, Gorres, Velayo, and Company was founded in 1946 by Washington SyCip in Manila, providing services to businesses recovering from the Second World War. SyCip's childhood friend, Alfredo M. Velayo, and Vicente O. José, an accountant with experience in tax work, were taken in as partners in 1947 to form SyCip, Velayo, José & Company. The firm managed their first overseas assignment the following year. [1]

Growth

The firm embarked on its first overseas engagement by working out a merger with Henry Hunter Bayne & Co. (HHB), which started its practice in the then-American controlled Philippine Islands in 1906. In 1953, Thomas Farnell, a senior partner of HHB, decided to return to the United States and sell his firm to Filipino accountants Arsenio Reyes and Ramón J. Gorres. After a series of negotiations between the two and SyCip, the firms merged to form SyCip, Gorres, Velayo & Company. [1]

In 1958, SGV & Company assumed the practice of British firm Fleming & Williamson, which was rated the second-largest accounting firm in the Philippines, and expanded further by establishing offices in Bacolod and Davao. [1]

In the 1960s, the SGV Group was established and it began correspondent relations with some of the leading western firms, among them Arthur Andersen & Co.; Ernst & Ernst; Haskins & Sells; and Ernst & Young. SGV partnered with Taiwanese public accounting firm, T.N. Soong & Co in 1964 through a technical cooperation agreement amidst the economic boom in Taiwan. [1]

In the 1970s the SGV Group gained accreditation from the World Bank and the Asian Development Bank. [1]

In 1985, SGV & Company became a member firm of Arthur Andersen & Co., S.C., one of the largest professional service organisations in the world. A year later, the firm opened its Manila Offshore Systems Development Center, with assistance from Andersen Consulting, and has provided computer software services to foreign clients through Andersen Consulting's global marketing network and resources.

Secession

In 1988 senior partner Benjamin Punongbayan left SGV with banker José Araullo to form Punongbayan & Araullo. Mario Mananghaya, another SGV partner, went on to establish former KPMG member, Laya Mananghaya & Company, later sold to a consortium owned by former SGV chairman Cesar Purisima in 2007, having grown the firm to the second or third biggest accounting firm in the country. [2]

Victorias Milling Corporation

In 2000, the country's local accountant's professional body reprimanded SGV, then an Andersen affiliate in the Philippines, in relation to its audit with Victorias Milling Company. SGV withdrew audit reports worth three years after it was found out that it certified them without checking, which were later determined to be fraudulent. [3]

Ernst & Young affiliation

SGV distanced itself from Arthur Andersen in 2002, after the latter became involved in the Enron scandal. [2] SGV & Company became a member practice of Ernst & Young on September 1, 2002. [4] Previously the Ernest & Young affiliate in the country was Punongbayan & Araullo. [2]

SGV 14

In 2008, a group dubbed as the SGV 14 led by then Vice Chairman Roman Felipe Reyes disputed the integration of SGV's local operations with Ernst & Young's international operation arguing the move was against the constitution since the local accounting industry is restricted to Filipinos. Reyes' group with Chairman David Balangue ousted by Cirilo Noel who became chairman in 2009. The SGV 14 settled for a "withdrawal package" agreement which include a non-compete clause baring them from working with SGV's competitors for several years. Reyes and 11 others of the group later established Reyes Tacandong & Co. which became an affiliate of RSM International. [2]

2010s

As of 2010, SGV is headquartered in Makati, about ten branches across the Philippines. [5] As of December 2016, SGV & Company remains the biggest accounting firm in the Philippines, auditing about half of 304 publicly listed companies in the Philippine Stock Exchange. SGV has been receiving stiff competition from rival firms, KPMG R.G. Manabat & Co., Reyes Tacandong & Co., Isla Lipana & Co., and Navarro Amper & Co. all established by former partners of the SGV. [2]

Related Research Articles

Arthur Andersen was an American accounting firm based in Chicago that provided auditing, tax advising, consulting and other professional services to large corporations. By 2001, it had become one of the world's largest multinational corporations and was one of the "Big Five" accounting firms. The firm collapsed by mid-2002, as details of its questionable accounting practices for energy company Enron and telecommunications company Worldcom were revealed amid the two high-profile bankruptcies. The scandals were a factor in the enactment of the Sarbanes-Oxley Act of 2002.

The Big Four are the four largest professional services networks in the world: Deloitte, Ernst & Young (EY), KPMG, and PwC. They are the four largest global accounting networks as measured by revenue. The four are often grouped because they are comparable in size relative to the rest of the market, both in terms of revenue and workforce; they are considered equal in their ability to provide a wide scope of professional services to their clients; and, among those looking to start a career in professional services, particularly accounting, they are considered equally attractive networks to work in, because of the frequency with which these firms engage with Fortune 500 companies.

<span class="mw-page-title-main">Ernst & Young</span> Multinational professional services network based in England

Ernst & Young Global Limited, trade name EY, is a British multinational professional services partnership headquartered in London, England. EY is one of the largest professional services networks in the world. Along with Deloitte, KPMG and PwC, it is considered one of the Big Four accounting firms. It primarily provides assurance, tax, consulting and advisory services to its clients.

<span class="mw-page-title-main">KPMG</span> Multinational professional services and accounting company firm

KPMG International Limited is a multinational professional services network, and one of the Big Four accounting organizations, along with Ernst & Young (EY), Deloitte, and PwC. The name "KPMG" stands for "Klynveld Peat Marwick Goerdeler". The initialism was chosen when KMG merged with Peat Marwick in 1987.

<span class="mw-page-title-main">Financial audit</span> Type of audit

A financial audit is conducted to provide an opinion whether "financial statements" are stated in accordance with specified criteria. Normally, the criteria are international accounting standards, although auditors may conduct audits of financial statements prepared using the cash basis or some other basis of accounting appropriate for the organization. In providing an opinion whether financial statements are fairly stated in accordance with accounting standards, the auditor gathers evidence to determine whether the statements contain material errors or other misstatements.

Deloitte Touche Tohmatsu Limited, commonly referred to as Deloitte, is a British multinational professional services network headquartered in London, England. Deloitte is the largest professional services network by revenue and number of professionals in the world and is considered one of the Big Four accounting firms along with EY, KPMG and PwC.

Felipe Enrique "Henry" Lapuz Gozon, is a Filipino lawyer and the chairman and CEO of GMA Network Inc., one of the largest media networks in the Philippines.

<span class="mw-page-title-main">Washington SyCip</span> Filipino-American accountant

Washington Z. SyCip, PLH BOLk RNO1kl was a Chinese-Filipino-American accountant. He was the founder of the accounting firm EY SGV & Company and the Asian Institute of Management.

<span class="mw-page-title-main">Albino SyCip</span>

Albino Z. SyCip was a Chinese Filipino financier of Fujianese origin. He was known as the "Dean of Philippine Banking". He earned his law degree from the University of Michigan School of Law in Ann Arbor, Michigan.

<span class="mw-page-title-main">Victorino Mapa High School</span> Public with special science school in San Rafael St., San Miguel, Manila, Philippines

Victorino Mapa High School, situated in San Miguel, Manila, is one of the oldest public high schools in the city. It has produced a list of successful graduates in various fields since its foundation in 1923.

SGV may refer to:

<span class="mw-page-title-main">Legal management (academic discipline)</span> Academic discipline on law and management

Legal management or paralegal studies is an academic, vocational, and professional discipline that is a hybrid between the study of law and management. Often, alumni of legal management programmes pursue a professional degree in law such as Juris Doctor (JD) or Bachelor of Laws (LL.B.) while some profess as paralegals, law clerks, political analysts, politicians, public administrators, entrepreneurs, business executives, or pursue careers in the academe.

The University of Santo Tomas College of Commerce and Business Administration is the business school of the University of Santo Tomas in Manila, Philippines. The college offers programs in Financial Management, Marketing Management, Human Resources Development Management, Business Economics, and Entrepreneurship. The college is one of the first business schools in the Philippines.

<span class="mw-page-title-main">Manny Villar</span> President of the Senate of the Philippines from 2006 to 2008

Manuel Bamba Villar Jr. is a Filipino businessman and former politician. He previously served as senator from 2001 to 2013 and as the President of the Senate of the Philippines from 2006 to 2008. Before his stint in the senate, he represented the district of Las Piñas–Muntinlupa from 1992 to 1998, and Las Piñas's at-large district from 1998 to 2001. He also became the speaker of the House of Representatives from 1998 to 2000; in this term, he presided over the impeachment of President Joseph Estrada. From 2019 to 2022, Forbes magazine named Villar as the richest individual in the Philippines, with an estimated net worth of $8.3 billion.

<span class="mw-page-title-main">Cesar Purisima</span>

Cesar Antonio Velasquez Purisima is a Filipino accountant and financial expert. He was the Secretary of Finance of the Republic of the Philippines under the administration of President Benigno S. Aquino III. He also served as the chair of the Cabinet Economic Development Cluster and member of the Monetary Board of the Bangko Sentral ng Pilipinas. Purisima is a multi-awarded finance minister, recognized 7 times in 6 consecutive years by various international institutions for turning the Philippine economy around and restoring investor confidence.

An accounting network or accounting association is a professional services network whose principal purpose is to provide members resources to assist the clients around the world and hence reduce the uncertainty by bringing together a greater number of resources to work on a problem. The networks and associations operate independently of the independent members. The largest accounting networks are known as the Big Four.

Roberto Velayo Ongpin was a Filipino businessman who served as the Minister of Commerce and Industry during the Marcos administration. His younger brother Jaime served as the Minister of Finance of the Philippines under Marcos's successor, President Corazon Aquino.

<span class="mw-page-title-main">Jesli Lapus</span> Filipino politician

Jesli Aquino Lapus is a former Congressman of Tarlac, former Secretary of Education and uncle of President Benigno Aquino III.

<span class="mw-page-title-main">Washington SyCip Park</span>

<span class="mw-page-title-main">Legarda Elementary School</span> Public elementary school in Sampaloc, Manila, Philippines

The Legarda Elementary School is a public elementary school located in Sampaloc in the City of Manila. Built in 1922, the school is notable for its main school building that has managed to retain its pre-war architecture, making its building the oldest surviving campus in Manila.

References

  1. 1 2 3 4 5 "SVG & Co. History - About Us". Ernest & Young. Retrieved 9 October 2017.
  2. 1 2 3 4 5 Rimando, Lala (8 October 2017). "The SGV that Washington SyCip left behind". Rappler. Retrieved 9 October 2017.
  3. Backman, Michael, 1967- (2003). Big in Asia : 25 strategies for business success. Butler, Charlotte. Houndmills, Basingstoke, Hampshire: Palgrave Macmillan. ISBN   1403914486. OCLC   54092966.{{cite book}}: CS1 maint: multiple names: authors list (link)
  4. "SEC Filing Amkor".
  5. "SyCip Gorres Velayo and Company". Hoover's. Hoover's, Inc. Archived from the original on 7 March 2010. Retrieved 9 October 2017.