|THE ACCOUNTANCY PROFESSION|

ASC – a service activity. (Overall objective)

CAT AICPA – art of recording, classifying, summarizing – 3 important activities.
AAA SBAT – process of identifying, measuring and communicating – includes
PH Accountancy Act of 2004 – RA No. 9298 – regulates the practice of accountancy.
BOA – authorized by law to promulgate rules and regulations affecting the practice.
Certification of Accreditation – issued to CPA – subj to BOA & PRC – required to
acquire minimum of 3 year meaningful experience in any areas including taxation.
3 main areas: 1. Public Accounting. (Auditing, Taxation & MAS)
2. Private Accounting.
3. Government Accounting. (Accounting Staff, Chief
Accountant, Internal Auditor,
(BIR, COA, BDM, Controller)
SEC & NBI)

Continuing Professional Education (mandatory) – promulgated by BOA.

– Approval by PRC.
Renewal of CPA License & Accreditation of a CPA for 3 years.
Total CPE cu required: 120 units for 3 years.
Minimum per year: 15 cu.
Excess in 1 year: carried over to subsequent years for 3 years only.
Except: cu earned for masteral and doctoral degree.
Exceptions: 65 years – permanently exempted from CPE req. (renewal of CPA license)
Working abroad – temporarily exempted from CPE req. (been out for at least 2
years immediately prior to the date of renewal)
Accounting is constructive in nature VS Auditing analytical in nature
Accounting is conceptual and why VS Bookeeping is procedural and how.
Financial Accounting focuses on general purpose reports. Intended for internal and
external users. Managerial Accounting is for internal users only.
Comparability and Uniformity – result of high-quality accounting standards.

ASC now FRSC – GAAP Establish & improve accounting standards.

Composed of 15 officials.
IC now PIC PAS & PFRS PFRS = IFRS 1 Chairman – who had been or
PAS = IAS Presently a senior accounting
PIC = IFRIC & SIC Practitioner.
(any member of ASC shall not be
IASC now IASB – CFFR disqualified from being appointed to
the FRSC)

IAS IFRS – global phenomenon, 1 – BOA, COA, BIR, SEC, BSP & FINEX
bring about greater transparency 2 (each sectors of accounting practice)
& degree of comparability. – Public practice, Commerce &
Industry, Academe and Government.

Achieve uniformity in accounting principles