Book 3 Flashcards
The Financial & Sustainability Reporting Standard Council (FSRSC)
- formerly known as FRSC
- accounting standard setting body of the Phil
- it issues the financial accounting and reporting standard for use in the Ph
- In year 2022, it take charge also of the sustainability reporting of business enterprises
3 Factors (ESG)
1. Environmental
2. Social
3. Governance factors
Financial Accounting and Reporting Standard - setting bodies
- International Accounting Standards Board (IASB)
- International Sustainability Standards Board (ISSB) - established Nov 2021
- Financial Accounting Standards Board (FASB)
- Philippine Financial & Sustainability Reporting Standards Council (PFSRSC) - formerly the FSRC
Auditing Standard Setting Bodies
- International Auditing and Assurance Standards Board (IAASB)
- Auditing and Assurance Standards Council (AASC)
Governance of CPA Professionals
Regulator - Professional Regulation Commission (PRC)
Board of Accountancy
- implementing arm of PRC in the regulation of Accountancy profession
- has the authority to promulgate rules and regulations
Securities and Exchange Commission (SEC)
responsible for regulating the securities industry in the Ph
Reporting Entities to SEC
- Large, publicly (listed)
- Assets - more than 350M
- Liabilities - more than 250M
- Full PFRS - Medium size
- Asset - more than 100M-350M
- Liabilities - more than 100M-250M
- PFRS for SME - Small entity
- Asset - 3M-100M
- Liabilities -3M-100M
- PFRS for SE - Micro entity
- Assets - Below 3M
- Liabilities - Below 3M
- Some other reporting framework (income tax reporting framework)
Other regulatory bodies
- Bangko Sentral ng Pilipinas (BSP)
- Insurance Commission (IC)
- Cooperative Development Authority (CDA)
- Bureau of Internal Revenue (BIR)
International Accounting Standards Board (IASB)
- independent, private sector that develops and approves IFRS
- preparation, issuance, of exposure drafts
International Sustainability Standards Board (ISSB)
- established in 2021-2022
- mandate in creation and development of sustainability related financial reporting standards
International Financial Interpretations Committee
- assist the IASB by providing guidance on the application and interpretation of IFRS
Financial Sustainability Reporting Standards Council (FSRSC)
- former known as FRSC
- it was established by PRC-BOA under Philippine Accountancy of Act 0f 2004
Purpose - to assist the IASB in carrying out its power and function to promulgate accounting standards in the Philippines
Composition - Appointed by BOA -Chairman and members include:
1. PICPA (2)
2. BOA
3. SEC
4. BSP
5. FINEX - Financial Executives Institutes of the Philippines
6. COA
7. BIR
8. IC
Responsibility of FSRSC - approval of PFRS, interpretations, related documents
Objectives of FRSC - to establish generally accepted accounting principle in the Philippines.
- enforceable accounting standard
- to promote and use application of those standard
- to work for PFRS with IFRS
FSRSC Standing Committees
- Philippine Interpretations Committee (PIC) - created in August 2006, to assist in establishing and improving financial reporting standards in the Philippines
- Philippine Sustainability Reporting Committee (PSRC) - created in 2022 by the FSRSC, to assist in establishing and improving reporting standards in the Philippines
Composition - 15 members
1. PICPA (4)
2. BOA
3. SEC
4. BSP
5. FINEX
6. COA
7. IC
8. CCC - Climate Change Commission
Recent Issuances by FSRSC
- PFRS 15 - revenue on contracts with customers
- PFRS 16 - leases
- PFRS 17 - insurance contracts
Conceptual Framework
system of interrelated basic concepts that prescribes objectives, limits, and other fundamentals of financial accounting and serves as a basis for developing and evaluating accounting principles and resolving accounting and reporting controversies
Purpose of IASB Conceptual Framework
- Assist the IASB to develop accounting standards
- Assist prepares to develop consistent accounting policies when:
- No standard applies to a particular transaction
- Standard allows a choice of accounting policy - Assist all parties to understand and interpret the Standards
Scope (2020) - The Framework Addresses
- Objectives of general purpose financial statements
- Qualitative characteristics of useful information
- Financial information and the reporting entity
- Elements of financial statements
- Recognition and de-recognition of the accounting elements
- Measurement of the accounting elements
- Presentation and disclosure
- Concepts of capital and capital maintenance
