2 Flashcards
MODIFIED TRUE OR FALSE (INTERNATIONAL SCENE—IFRS FOUNDATION AND IASB)
The IASB, with the acceptance of these organizations, is a global phenomenon in order to achieve greater transparency and a higher degree of comparability in financial reporting
IFRS
Philippine Scene
The development of generally accepted accounting principles is formalized through the Financial Reporting Standards Council (FRSC), which replaces the Accounting Standards Council(ASC).
TRUE
Adoption of International Financial Reporting Standards
In July 2005, the Philippines adopted the Philippine Financial Reporting Standards, which are fully converged with the Accounting Standards Council(ASC)
International Financial Reporting Standards
Philippine Regulatory Commission (PRC) performs two important functions:
• conducts and administers licensure examinations to aspiring professionals, and
• regulates and supervises the practice of the professions exercised in partnership with the forty-three (43) Professional Regulatory Boards (PRBs) in the fields of health, business, education, social sciences, engineering and technology
TRUE
The Board of Accountancy (BOA) is a leg of PRC that regulates the accountancy profession in the Philippines.
TRUE
Financial Reporting Standards Council (FRSC)
The FRSC was established by the Professional Regulatory Commission (PRC) to assist the Board of Accountancy (BOA) in carrying out its power and function to promulgate accounting standards in the Philippines. The FRSC’s main function is to establish generally accepted accounting principles in the Philippines
TRUE
The FRSC monitors the technical activities of the IASB and invites comments on exposure drafts of proposed IFRSs as the IASB issues these.. When finalized, these are adopted as Philippine Financial Reporting Standards (PFRSs).
TRUE
The FRSC similarly monitors issuances of the International Financial Reporting Interpretations Committee (IFRIC) of the IASB, which it adopts as Philippine Interpretations–IFRIC. PFRSs and Philippine Interpretations–IFRIC approved for adoption are submitted to the BOA and PRC for approval
TRUE
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
TRUE
The PIC members are appointed by the FRSC and include accountants in public practice, the academe and regulatory bodies and users of financial statements
TRUE
