Introduction to Accounting

• Definition:

  ASC - service activity
• Definition:

  CAT of AICPA - art of recording, classifying, summarizing
• Definition:

  AAA - process of identifying, measuring, communicating
• RA 9298 - Philippine Accountancy Act of 2004
• PFRS is principle-based rather than rules-based.
• Local standard setting body: FRSC by BOA (2006)
• International standard setting body: IASB by IFRS Foundation (2001)
• FRSC members: Chairman + 15 members - COA BOA SEC BSP BIR IC FINEX PICPA8
• ASC (predecessor): Chairman + 7 members - No COA BIR IC + PICPA4
• Interpretations are authoritative guidance.
• STANDARD- SETTING PROCESS

  1. Consider lASB Pronouncements
  2. Formation of task force; if necessary, to give FRS advice
  3. Issue exposure draft at least 60 days (30 if appropriate)
  4. Consider all comments; if appropriate, comment letter to lASB
  5. Approval of majority of FRSC members (9 members)
• IFRIC is an interpretative committee that interprets the application of standards when there is no clear answer or when it is not obvious how to apply them.
• The IFRIC has issued 28 interpretations since its formation on January 1, 2000.
• IASB issues pronouncements such as standards, amendments, and interpretations.
• FRSC → FSRSC = Financial and Sustainability Standards Council