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THEORY OF ACCOUNTS C. Gonzaga


TOPIC: IASB/ KEY PLAYERS IN ACCOUNTANCY/PFRSs
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International Accounting Standards Board

The International Accounting Standards Board (IASB) is an independent, privately funded accounting standard-setter based in
London, England.

The IASB was founded on April 1, 2001 as the successor to the International Accounting Standards Committee (IASC). It is
responsible for developing International Financial Reporting Standards (the new name for International Accounting Standards issued
after 2001), and promoting the use and application of these standards.

Foundation. On January 25, 2001, the International Accounting Standards Foundation (IASF) was incorporated as a tax-exempt
organization in the US state of Delaware.[1] On February 6, 2001, the International Financial Reporting Standards Foundation was
also incorporated as a tax-exempt organization in Delaware.[2] The IFRS Foundation is the parent entity of the International
Accounting Standards Board (IASB), an independent accounting standard-setter based in London, England.[3]

On 1 March 2001, the IASB assumed accounting standard-setting responsibilities from its predecessor body, the International
Accounting Standards Committee (IASC). This was the culmination of a restructuring based on the recommendations of the report
Recommendations on Shaping IASC for the Future.

The IASB structure has the following main features: the IFRS Foundation is an independent organization having two main bodies,
the Trustees and the IASB, as well as a IFRS Advisory Council and the IFRS Interpretations Committee (formerly the IFRIC). The
IASC Foundation Trustees appoint the IASB members, exercise oversight and raise the funds needed, but the IASB has responsibility
for setting International Financial Reporting Standards (international accounting standards).

Members. The IASB has 15 Board members, each with one vote. They are selected as a group of experts with a mix of experience
of standard-setting, preparing and using accounts, and academic work. [4] At their January 2009 meeting the Trustees of the
Foundation concluded the first part of the second Constitution Review, announcing the creation of a Monitoring Board and the
expansion of the IASB to 16 members and giving more consideration to the geographical composition of the IASB.

The IFRS Interpretations Committee has 14 members. Its brief is to provide timely guidance on issues that arise in practice. [5]

A unanimous vote is not necessary in order for the publication of a Standard, exposure draft, or final "IFRIC" Interpretation. The
Board's 2008 Due Process manual stated that approval by nine of the members is required.[6]

The members (as of July 2011) are representatives from: Netherlands, UK, France, Sweden, USA, Germany, Japan, South Africa,
and China.

Due process

The IASB Handbook describes the consultative arrangements of the IASB. [6] The Board also publishes a brief guide on how standards
are developed.

Funding. The IFRS Foundation raises funds for the operation of the IASB.[9] Most contributors are banks and other companies
which use or have an interest in promoting international standards. In 2008, American companies gave 2.4m, more than those of
any other country. However, contributions fell in the wake of the financial crisis of 20072010, and a shortfall was reported in 2010.

LIST OF IFRS/IAS/ IFRIC/SIC (as of January 1, 2015) Date Page


IFRS 1 First-time Adoption of International Financial Reporting Standards 1 July 2009
IFRS 2 Share-based Payment 1 January 2005
IFRS 3 Business Combinations 1 July 2009
IFRS 4 Insurance Contracts 1 January 2005
IFRS 5 Non-current Assets Held for Sale and Discontinued Operations 1 January 2005
IFRS 6 Exploration for and Evaluation of Mineral Resources 1 January 2006
IFRS 7 Financial Instruments - Disclosures 1 January 2007
IFRS 8 Operating Segments 1 January 2009
IFRS 9 Financial Instruments 1 January 2015
IFRS 10 Consolidated Financial Statements 1 January 2013
IFRS 11 Joint Arrangements 1 January 2013
IFRS 12 Disclosure of Interests in Other Entities 1 January 2013
IFRS 13 Fair Value Measurement 1 January 2013
IFRS 14 Regulatory Deferral Accounts 1 January 2016
IFRS 15 Revenue from Contracts with Customers 1 January 2017
IFRS 16 Leases 1 January 1 2019

IAS 1 Presentation of Financial Statements 1 January 2005


IAS 2 Inventories 1 January 2005
IAS 7 Statement of Cash Flows 1 January 1994
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IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors 1 January 2005
IAS 10 Events After the Reporting Period 1 January 2005
IAS 11 Construction Contracts 1 January 1995
IAS 12 Income Taxes 1 January 1998
IAS 16 Property, Plant and Equipment 1 January 2005
IAS 17 Leases 1 January 2005
IAS 18 Revenue 1 January 1995
IAS 19 Employee Benefits 1 January 2013
IAS 20 Accounting for Government Grants and Disclosure of Government Assistance 1 January 1984
IAS 21 The Effects of Changes in Foreign Exchange Rates 1 January 2005
IAS 23 Borrowing Costs 1 January 2009
IAS 24 Related Party Disclosures 1 January 2011
IAS 26 Accounting and Reporting by Retirement Benefit Plans 1 January 1988
IAS 27 Separate Financial Statements 1 January 2013
IAS 28 Investments in Associates and Joint Ventures 1 January 2013
IAS 29 Financial Reporting in Hyperinflationary Economies 1 January 2007
IAS 32 Financial Instruments - Presentation 1 January 2005
IAS 33 Earnings per Share 1 January 2005
IAS 34 Interim Financial Reporting 1 January 1999e Effective Date Page
IAS 36 Impairment of Assets 1 January 2004
IAS 37 Provisions, Contingent Liabilities and Contingent Assets 1 January 1999
IAS 38 Intangible Assets 31 March 2004
IAS 39 Financial Instruments - Recognition and Measurement 1 January 2005
IAS 40 Investment Property 1 January 2005
IAS 41 Agriculture 1 January 2003
IFRICs
Interpretation Name Effective Date Page
IFRIC 1 Changes in Existing Decommissioning, Restoration and Similar Liabilities 1 September 2004
IFRIC 2 Members Shares in Co-operative Entities and Similar Instruments 1 January 2005
IFRIC 4 Determining whether an Arrangement contains a Lease 1 January 2006
IFRIC 5 Rights to Interests arising from Decommissioning, Restoration and Environmental Rehabilitation
Funds 1 January 2006
IFRIC 6 Liabilities arising from Participation in a Specific Market - Waste Electrical and Electronic
Equipment 1 December 2005
IFRIC 7 Applying the Restatement Approach under IAS 29 Financial Reporting in Hyperinflationary
Economies 1 March 2006
IFRIC 9 Reassessment of Embedded Derivative 1 June 2006
IFRIC 10 Interim Financial Reporting and Impairment 1 November 2006
IFRIC 12 Service Concession Arrangements 1 January 2008
IFRIC 13 Customer Loyalty Programmes 1 July 2008
IFRIC 14 IAS 19 - The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their
Interaction 1 January 2008
IFRIC 15 Agreements for the Construction of Real Estate 1 January 2009
IFRIC 16 Hedges of a Net Investment in a Foreign Operation 1 October 2008
IFRIC 17 Distribution of Non-Cash Assets to Owners 1 July 2009
IFRIC 18 Transfers of Assets from Customers 1 July 2009
IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments 1 July 2010
IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine 1 January 2013
IFRIC 21 Levies 1 July 2014
SIC-7 Introduction of the Euro 1 June 1998
SIC-10 Government Assistance - No Specific Relation to Operating Activities 1 January 1998
SIC-15 Operating Leases - Incentives 1 January 1999
SIC-25 Income Taxes - Changes in the Tax Status of an Entity or its Shareholders 15 July 2000
SIC-27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease 31 December 2001
SIC-29 Service Concession Arrangements - Disclosure 31 December 2001
SIC-31 Revenue - Barter Transactions Involving Advertising Services 31 December 2001
SIC-32 Intangible Assets - Website Costs 25 March 2002
Superseded Standards and Effective Date Page
SUPERSEDED STANDARDS AND INTERPRETATIONS

IAS 19 Employee Benefits 1 January 1995


IAS 27 Consolidated and Separate Financial Statements 1 July 2009
IAS 28 Investments in Associates 1 January 2007
IAS 31 Interests in Joint Ventures 1 January 2005
SIC-12 Consolidation: Special Purpose Entities 1 July 1999
SIC-13 Jointly Controlled Entities - Non-Monetary Contributions by Venturers 1 January 1999

KEY PLAYERS IN ACCOUNTANCY: PHILIPPINE-SETTING

Republic Act 9298 (Philippine Accountancy Act of 2004)


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This is an Act regulating the practice of Accountancy in the Philippines.
Objectives: (1) The standardization and regulation of accounting education; (2) The examination of registration of CPAs; (3) The
supervision, control, and regulation of the practice of accountancy in the Philippines.

Scope of Practice of CPAs


(1) Practice of Public Accountancy; (2) Practice in Commerce and Industry; (3) Practice in Education/Academe; and, (4)
Practice in Government

Board of Accountancy (BOA)


The Professional Regulatory Board of Accountancy is under the supervision and control of the Professional Regulation Commission
(PRC), is composed of a Chariman 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 PRC from a list of five (5) nominees for each position submitted by the accredited
national professional organization of CPAs. The BOA shall elect a vice-chairman from among each member for a term of one (1)
year.

The Philippine Institute of Certified Public Accountants (P I C P A)

The Philippine Institute of Certified Accountants or PICPA is the accredited professional organization (APO) of CPAs by the
Professional Regulation Commission (PRC) and has been awarded twice as PRC most outstanding APO from among other
professional organizations. PICPA was founded in November 1929 by a group of illustrious pioneers in the accounting profession.

Mission of PICPA

To promote, uphold, and maintain high standards in the accountancy profession; to serve the best interest of the members and the
stakeholders; and to contribute to the attainment of the national and global goals.

These can be achieved through a responsive organizational structure, committed leadership, effective professional development
programs, strict implementation of professional ethics, promotion of high standards of accounting education, and advocacy of and
participation in relevant national concerns.

Financial Reporting Standards Council (FRSC)

The Financial Reporting Standards Council (FRSC) was established by the Board of Accountancy (BOA or the Board) in 2006 under
the Implementing Rules and Regulations of the Philippine Accountancy of Act of 2004 to assist the Board in carrying out its power
and function to promulgate accounting standards in the Philippines. The FRSCs main function is to establish generally accepted
accounting principles in the Philippines.

The FRSC is the successor of the Accounting Standards Council (ASC). The ASC was created in November 1981 by the Philippine
Institute of Certified Public Accountants (PICPA) to establish generally accepted accounting principles in the Philippines. The FRSC
carries on the decision made by the ASC to converge Philippine accounting standards with international accounting standards issued
by the International Accounting Standards Board (IASB).

The FRSC consists of a Chairman and members who are appointed by the BOA and include representatives from the Board of
Accountancy (BOA), Securities and Exchange Commission (SEC), Bangko Sentral ng Pilipinas (BSP), Financial Executives Institute
of the Philippines (FINEX), Commission on Audit (COA) and Philippine Institute of Certified Public Accountants (PICPA). The FRSC
has full discretion in developing and pursuing the technical agenda for setting accounting standards in the Philippines. Financial
support is received principally from the PICPA Foundation.

The FRSC monitors the technical activities of the IASB and invites comments on exposure drafts of proposed IFRSs as these are
issued by the IASB. When finalized, these are adopted as Philippine Financial Reporting Standards (PFRSs). The FRSC similarly
monitors issuances of the International Financial Reporting Interpretations Committee (IFRIC) of the IASB, which it adopts as
Philippine InterpretationsIFRIC. PFRSs and Philippine InterpretationsIFRIC approved for adoption are submitted to the BOA and
PRC for approval.

The FRSC formed the Philippine Interpretations Committee (PIC) in August 2006 to assist the FRSC in establishing and improving
financial reporting standards in the Philippines. The role of the PIC is principally to issue implementation guidance on PFRSs. The
PIC members are appointed by the FRSC and include accountants in public practice, the academe and regulatory bodies and users
of financial statements. The PIC replaced the Interpretations Committee created by the ASC in 2000.

The Philippine Interpretations Committee (PIC)

The FRSC formed the Philippine Interpretations Committee (PIC) in August 2006 to assist the FRSC in establishing and improving
financial reporting standards in the Philippines. The role of the PIC is principally to issue implementation guidance on PFRSs. The
PIC members were appointed by the FRSC and include accountants in public practice, the academe and regulatory bodies and
users of financial statements. The PIC replaced the Interpretations Committee created by the ASC in 2000.

The Philippine Interpretations consist of:.

Philippine Interpretations - IFRIC. These correspond to Interpretations of the International Financial Reporting
Interpretations Committee (IFRIC) of the IASB.
Philippine Interpretations - SIC. These correspond to Interpretations of the Standing Interpretations Committee (SIC) of
the IASC.
PIC Q&As. These are Interpretations developed by the Philippine Interpretations Committee (PIC).

The Philippine Financial Reporting Standards (PFRS)


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Preface to Philippine Financial Reporting Standards

Conceptual Framework for Financial Reporting


Phase A: Objectives and qualitative characteristics (Effective Date 07/01/2011)

Philippine Financial Reporting Standards

Effective
PFRS Title
Date

PFRS 1 First-time Adoption of Philippine Financial Reporting Standards 01/01/05

Amendments to PFRS 1 and PAS 27: Cost of an Investment in a Subsidiary, Jointly


01/01/09
Controlled Entity or Associate

Severe Hyperinflation and Removal of Fixed Date of First-Time Adopters 07/01/11

PFRS 1
First-time Adoption of Philippine Financial Reporting Standards 07/01/09
(revised)

Amendments to PFRS 1: Additional Exemptions for First-time Adopters 01/01/10

Amendment to PFRS 1: Limited Exemption from Comparative PFRS 7 Disclosures for First-
07/01/10
time Adopters

PFRS 2 Share Based Payment 01/01/05

Amendments to PFRS 2: Vesting Conditions and Cancellations 01/01/09

Amendments to PFRS 2: Group Cash-settled Share-based Payment Transactions 01/01/10

PFRS 3 Business Combinations [superseded by PFRS 3 revised] 01/01/05

PFRS 3 (revised) Business Combinations 07/01/09

PFRS 4 Insurance Contracts 01/01/05

Amendments to PAS 39 and PFRS 4: Financial Guarantee Contracts 01/01/06

PFRS 5 Non-current Assets Held for Sale and Discontinued Operations 01/01/05

PFRS 6 Exploration for and Evaluation of Mineral Resources 01/01/06

PFRS 7 Financial Instruments: Disclosures 01/01/07

Amendments to PFRS 7: Transition 01/01/07

Amendments to PAS 39 and PFRS 7: Reclassification of Financial Assets 07/01/08

Amendments to PAS 39 and PFRS 7: Reclassification of Financial Assets - Effective Date


07/01/08
and Transition

Amendments to PFRS 7: Improving Disclosures about Financial Instruments 01/01/09

Limited Exemption from Comparative PFRS 7 01/01/10

Financial Instruments: Disclosures 07/01/11

PFRS 8 Operating Segments 01/01/09

PFRS 9 Financial Instruments 01/01/13

PFRS 10 Consolidated Financial Statements 01/01/13

PFRS 11 Joint Arrangements 01/01/13

PFRS 12 Disclosure of Interests in Other Entities 01/01/13

PFRS 13 Fair Value Measurement 01/01/13

Philippine Accounting Standards (PAS)

Effective
PAS Title Date

PAS 1 Presentation of Financial Statements [superseded by PAS 1 (revised)] 01/01/05

Amendment to PAS 1: Capital Disclosures 01/01/07

PAS 1 (revised) Presentation of Financial Statements 01/01/09

Amendments to PAS 32 and PAS 1: Puttable Financial Instruments and Obligations Arising
01/01/09
on Liquidation

Amendments to PAS 1: Presentation of Items of Other Comprehensive Income 07/01/12*

PAS 2 Inventories 01/01/05


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PAS 7 Cash Flow Statements 01/01/05

PAS 8 Accounting Policies, Changes in Accounting Estimates and Errors 01/01/05

PAS 10 Events after the Balance Sheet Date 01/01/05

PAS 11 Construction Contracts 01/01/05

PAS 12 Income Taxes 01/01/05

Deferred Tax: Recovery of Underlying Assets 07/01/11

PAS 14 Segment Reporting [superseded by PFRS 8] 01/01/05

PAS 16 Property, Plant and Equipment 01/01/05

PAS 17 Leases 01/01/05

PAS 18 Revenue 01/01/05

PAS 19 Employee Benefits 01/01/05

Amendments to PAS 19: Actuarial Gains and Losses, Group Plans and Disclosures 01/01/06

PAS 19 (amended) Employee Benefits 01/01/13

PAS 20 Accounting for Government Grants and Disclosure of Government Assistance 01/01/05

PAS 21 The Effects of Changes in Foreign Exchange Rates 01/01/05

Amendment: Net Investment in a Foreign Operation 01/01/06

PAS 23 Borrowing Costs 01/01/05

PAS 23 (revised) Borrowing Costs 01/01/09

PAS 24 Related Party Disclosures 01/01/05

PAS 24 (revised) Related Party Disclosures 01/01/11

PAS 26 Accounting and Reporting by Retirement Benefit Plans 01/01/05

PAS 27 Consolidated and Separate Financial Statements [superseded by PAS 27 (revised)] 01/01/05

PAS 27 (revised) Consolidated and Separate Financial Statements 07/01/09

Amendments to PFRS 1 and PAS 27: Cost of an Investment in a Subsidiary, Jointly


01/01/09
Controlled Entity or Associate

PAS 27 (amended) Separate Financial Statements 01/01/13

PAS 28 Investments in Associates 01/01/05

PAS 28 (amended) Investments in Associates and Joint Ventures 01/01/13

PAS 29 Financial Reporting in Hyperinflationary Economies 01/01/05

Disclosures in the Financial Statements of Banks and Similar Financial Institutions


PAS 30 01/01/05
[superseded by PFRS 7]

PAS 31 Interests in Joint Ventures 01/01/05

PAS 32 Financial Instruments: Disclosures and Presentation 01/01/05

Financial Instruments: Presentation 01/01/07

Amendments to PAS 32 and PAS 1: Puttable Financial Instruments and Obligations Arising
01/01/09
on Liquidation

Amendment to PAS 32: Classification of Rights Issues 02/01/10

PAS 33 Earnings per Share 01/01/05

PAS 34 Interim Financial Reporting 01/01/05

PAS 36 Impairment of Assets 01/01/05

PAS 37 Provisions, Contingent Liabilities and Contingent Assets 01/01/05

PAS 38 Intangible Assets 01/01/05

PAS 39 Financial Instruments: Recognition and Measurement 01/01/05

Amendments to PAS 39: Transition and Initial Recognition of Financial Assets and
01/01/05
Financial Liabilities

Amendments to PAS 39: Cash Flow Hedge Accounting of Forecast Intragroup Transactions 01/01/06

Amendments to PAS 39: The Fair Value Option 01/01/06

Amendments to PAS 39 and PFRS 4: Financial Guarantee Contracts 01/01/06


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Amendments to PAS 39 and PFRS 7: Reclassification of Financial Assets 07/01/08

Amendments to PAS 39 and PFRS 7: Reclassification of Financial Assets Effective Date


07/01/08
and Transition

Amendments to Philippine Interpretation IFRIC9 and PAS 39: Embedded Derivatives 06/30/09

Amendment to PAS 39: Eligible Hedged Items 07/01/09

PAS 40 Investment Property 01/01/05

PAS 41 Agriculture 01/01/05

Financial Reporting Standards for Non-publicly Accountable Entities [superseded by PFRS


PAS 101 01/01/05
for SMEs]

Amendment to PAS 101: Change in Effective Date 01/01/05

Effective
Annual Improvements to PFRSs
Date

Improvements to PFRSs (approved 2008)

Amendments to PAS 1, PAS 16, PAS 19, PAS 20, PAS 23, PAS 27, PAS 28, PAS 29, PAS 31, PAS 36, PAS 38,
01/01/09
PAS 39, PAS 40, PAS 41

Amendments to PFRS 5 07/01/09

Improvements to PFRSs (approved 2009)

Amendments to PFRS 2, PAS 38, Philippine Interpretation IFRIC9, Philippine Interpretation IFRIC16 07/01/09

Amendments to PFRS 5, PFRS 8, PAS 1, PAS 7, PAS 17, PAS 36, PAS 39 01/01/10

Amendment to PAS 18, Appendix

Improvements to PFRSs (approved 2010)*

Amendments to PFRS 3, PAS 1, Transition requirements for amendments to PAS 21, PAS 28 and PAS 31 made
07/01/10
as a result of PAS 27 (revised)

Amendments to PFRS 1, PFRS 7, PAS 34, Philippine Interpretation IFRIC13 01/01/11


PHILIPPINE FINANCIAL REPORTING STANDARD
FOR SMALL AND MEDIUM-SIZED ENTITIES (PFRS for SMEs)
(*effective January 1, 2010)
PREFACE
SECTIONS

1 SMALL AND MEDIUM-SIZED ENTITIES

2 CONCEPTS AND PERVASIVE PRINCIPLES

3 FINANCIAL STATEMENT PRESENTATION

4 STATEMENT OF FINANCIAL POSITION

5 STATEMENT OF COMPREHENSIVE INCOME AND INCOME STATEMENT

6 STATEMENT OF CHANGES IN EQUITY AND STATEMENT OF INCOME


AND RETAINED EARNINGS

7 STATEMENT OF CASH FLOWS

8 NOTES TO THE FINANCIAL STATEMENTS

9 CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

10 ACCOUNTING POLICIES, ESTIMATES AND ERRORS

11 BASIC FINANCIAL INSTRUMENTS

12 OTHER FINANCIAL INSTRUMENTS ISSUES

13 INVENTORIES

14 INVESTMENTS IN ASSOCIATES

15 INVESTMENTS IN JOINT VENTURES

16 INVESTMENT PROPERTY

17 PROPERTY, PLANT AND EQUIPMENT


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18 INTANGIBLE ASSETS OTHER THAN GOODWILL

19 BUSINESS COMBINATIONS AND GOODWILL

20 LEASES

21 PROVISIONS AND CONTINGENCIES


Appendix - Guidance on recognising and measuring provisions

22 LIABILITIES AND EQUITY


Appendix - Example of the issuers accounting for convertible debt

23 REVENUE
Appendix - Examples of revenue recognition under the principles in Section 23

24 GOVERNMENT GRANTS

25 BORROWING COSTS

26 SHARE-BASED PAYMENT

27 IMPAIRMENT OF ASSETS

28 EMPLOYEE BENEFITS

29 INCOME TAX

30 FOREIGN CURRENCY TRANSLATION

31 HYPERINFLATION

32 EVENTS AFTER THE END OF THE REPORTING PERIOD

33 RELATED PARTY DISCLOSURES

34 SPECIALISED ACTIVITIES

35 TRANSITION TO THE IFRS FOR SMES

PHILIPPINE INTERPRETATIONS - SIC

Effective
No. Title
Date

Philippine
Introduction of the Euro 01/01/05
Interpretation SIC7

Philippine
Government Assistance - No Specific Relation to Operating Activities 01/01/05
Interpretation SIC10

Philippine
Consolidation - Special Purpose Entities 01/01/05
Interpretation SIC12

Amendment to SIC - 12: Scope of SIC 12 01/01/05

Philippine
Jointly Controlled Entities - Non-Monetary Contributions by Ventures 01/01/05
Interpretation SIC13

Philippine
Operating Leases - Incentives 01/01/05
Interpretation SIC15

Philippine Income Taxes - Recovery of Revalued Non-Depreciable Assets (superseded by


01/01/05
Interpretation SIC21 Amendment to IAS 12: Deferred Tax: Recovery of underlying assets effective 07/01/11)

Philippine
Income Taxes - Changes in Tax Status of an Enterprise or its Shareholders 01/01/05
Interpretation SIC25

Philippine
Evaluating the Substance of Transactions Involving the Legal Form of a Lease 01/01/05
Interpretation SIC27

Philippine
Disclosure - Service Concession Arrangements 01/01/05
Interpretation SIC29

Philippine
Revenue - Barter Transactions Involving Advertising Services 01/01/05
Interpretation SIC31

Philippine
Intangible Assets - Web Site Costs 01/01/05
Interpretation SIC32

MULTIPLE CHOICE
1. The legal basis of the Philippine Accountancy Act of 2004
a. RA 9298 b. PD 692 c. Senate Bill No. 2748 d. House Bill No. 6678

2. The Philippine Accountancy Act of 2004 became a law in what particular month of 2004?
a. February b. March c. April d. May
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3. The body mandated by law promulgates rules and regulations affecting the practice of Accountancy.
a. Professionals Regulation Commission (PRC)
b. Professional Regulatory Board of Accountancy (BoA)
c. Philippine Institute of Certified Public Accountants (PICPA)
d. Accounting Standards Council (ASC)

4. A body created by PICPA to formalize the accounting standards-setting function and establish generally accepted
accounting principles in the Philippines.
a. Accounting Standards Council (ASC)
b. Associations of CPAs in Education (ACPAE)
c. Association of CPAs in public Practice (ACPAPP)
d. Professional Regulatory Board of Accountancy (BoA)

5. The accounting Standards Council was created on November 18 of what year?


a. 1980 b. 1981 c. 1982 d. 1983

6. The number of members (including the chairman) in the Accounting Standards Council.
a. 5 b. 8 c. 9 d. 10

7. One of the following is not a member of the Accounting Standards Council


a. Bureau of Internal Revenue (BIR)
b. Philippine Institute of Certified Public accountants (PICPA)
c. Securities and Exchange Commission (SEC)
d. Bangko Sentral ng Pilipinas (BSP)

8. According to the Implementing Rules and Regulations (IRR) of the Philippine Accountancy Act of 2004, the
Accounting Standards Council (ASC) was replaced by the
a. Auditing and Assurance Standards Council (AASC)
b. Financial Reporting Standards Council (FRSC)
c. Education Technical Council (ETC)
d. PICPA Education Task Force

9. The number of members (including the chairman) in the Financial Reporting Standards Council.
a. 12 b. 13 c. 14 d. 15

10. One of the following is not a member of the Financial Reporting Standards Council.
a. Commission on Audit (CoA)
b. Bureau of Internal Revenue (BIR)
c. Professional Regulatory Board of Accountancy (BoA)
d. Financial Executives Institute of the Philippines (FINEX)

11. Under the IRR, the chairman and members of FRSC shall have a renewable term of how many years?
a. 2 b. 3 c. 4 d. 5

12. These arte standards and interpretations adopted by the Financial Reporting Standards Council. They
compromise (a) Philippine Financial Reporting Standards (PFRS), (b) Philippine Accounting Standards (PAS),
and (c) Interpretations of PFRS and PAS.
a. Philippine Financial reporting Standards (PFRS)
b. Philippine Accounting Standards (PAS)
c. Interpretations of PFRS
d. Interpretations of PAS

13. Final concurrence of a duly approved Philippine Financial Reporting Standards (PFRS) rest with
a. Professionals Regulations Commission (PRC)
b. Financial Reporting Standards Council (FRSC)
c. Philippine Institute of certified Public Accountants (PICPA)
d. Government Association of Certified public Accountants (GACPA)

14. There are four (4) sectors of the accountancy profession in the Philippines. The branch of accounting related with
the sector Association of CPAs in Commerce and Industry (ACPACI) is
a. Public accounting b. Private accounting c. Government accounting d. Accounting education

15. It is an independent private sector body formed in 1973, with the objective of achieving uniformity the accounting
principles that are used by business and other organizations for financial reporting around the world.
a. International Accounting Standards Committee (IASC)
b. International Accounting Standards Board (IASB)
c. Financial Accounting Standards Board (FASB)
d. World trade Organization (WTO)

16. Under the 2001 IASC organizational structure, one of the following is not associated with the IASC.
a. Standards Advisory Council (SAC)
b. International financial Reporting Interpretation Committee (IFRIC)
c. International Accounting Standards Board (IASB)
d. Financial Reporting Standards Council (FRSC)
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17. The exact IASC counterpart that drafts and approves International Financial Reporting Standards (IFRSC) under
the new organizational framework of its 2001 constitution is the
a. IAS Foundation
b. IAS Board (IASB)
c. Standards Advisory Council (SAC)
d. International Financial Interpretations Committee (IFRIC)

18. Which of the following correctly describes the Standards Advisory Council Based on the 2001 IASC structure?
a. It is an independent, not-for-profit foundation based in the United States, whose trustees appoint members of
the IASBA, SAC and IFRIC
b. It is responsible for developing and issuing new international standards to be known as International Financial
Reporting Standards (IFRS)
c. It is to advise the IASB on what particular topics or accounting issues the Board should be looking at.
d. It is to come up with guidelines known as Interpretations for FS users in case new problems arise and /or
existing standards are being interpreted in unsatisfactory or conflicting ways.

19. Which of the following statements relating to the FRSC and standard setting process in the Philippines is (are)
true?
I. Members of the FRSC who are recommended by PICPA as the representatives of the four sectors of
the accountancy profession should be CPAs.
II. The Financial Reporting Standards Council (FRSC), Board of Accountancy (BoA), the Philippine
Institute of CPAs (PICPA), the Philippine Interpretations Committee (PIC), the Professional
Regulations Commission (PRC) are all involved in the standard setting process, PRC as the final
approving authority.
III. Members of the accountancy profession may participate in the accounting standard setting process
by responding to invitations to comment on the Exposure Drafts issued by the accounting standard-
setters.

a. I is true b. I and II are true c. I and III are true d. I, II, and III are true.

20. As an assistance to the FRSC and the Philippine accountancy profession and the public it serves, which of the
following should the Philippine Interpretations Committee (PIC) consider issuing an interpretation?
I. Newly identified financial reporting issues in the Philippines not specifically addressed in PFRSs.
II. Narrow, industry-specific issues.
III. Philippine accounting and reporting issues where unsatisfactory or conflicting interpretations have
developed, or seem likely to develop.

a. I and II only b. II and III only c. I and III only d. I, II, and III.

21. Which of the following is NOT part of the financial reporting standard setting process in the Philippines?
a. Creation of a task force by the standard setting body to study the proposed accounting standard.
b. Distribution of the Exposure Draft for comment to CPA professionals and other interested parties.
c. Approval by the Financial Reporting Standards Council (FRSC) and eventually by the Professional
Regulations Commission (PRC).
d. Publication in the PRC Official Gazette and in a newspaper of general circulation.

22. Which one of the following bodies is responsible for reviewing accounting issues that are likely to receive
divergent or unacceptable treatment in the absence of authoritative guidance, with a view to reaching consensus
as to the appropriate accounting treatment?
a. International Financial Reporting Interpretations Committee (IFRIC)
b. Standard Advisory Council (SAC)
c. International Accounting Standards Board (IASB)
d. International Accounting Standards Committee Foundation (IASC Foundation)

23. The Association of Realtors in the Philippines is seeking permission to use PAS 11 Construction Contracts rather
than PAS 18, Revenue Recognition, in accounting for the selling transactions of small condominium builders. The
body responsible for addressing this accounting issue to reach a consensus as to the appropriate accounting
treatment is the
a. IFRIC b. FRSC c. PIC d. IASB

24. What is due process in the context of standard setting at the IASB?
a. Interested parties can make their views known.
b. IASB and FASB operates in full view of the public.
c. Public hearings are held on proposed accounting standards.
d. All of the above.

25. The following published documents are part of the due process system used by the IASB in the evolution of a
typical IASB Standard
1. Exposure Draft 2. IASB Standard 3. Discussion Paper
The chronological order in which these items are released is as follows:

a. 1,3,2 b. 1,2,3 c. 3,1,2 d. 2,3,1


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26. The purpose of the International Accounting Standards Board is to
a. Arbitrate accounting dispute between auditors and international companies.
b. Develop a single set of high-quality IFRS.
c. Issue enforceable standards which regulate the financial accounting and reporting of multinational
corporations.
d. Develop a uniform currency in which the financial transactions of companies throughout the world would be
measured.

TOA-2-14 IASB/PFRSC-001