CFAS Chapter 1

Question 1

What is the meaning of IASB

Answer 1

International Accounting Standards Board

Question 2

What is the meaning of IFRIC

Answer 2

IFRS Interpretations Committee

Question 3

What is the meaning of FSRSC?

Answer 3

Financial and Sustainability Reporting Standard Council

Question 4

What is the of PIC

Answer 4

Philippine Interpretations Committee

Question 5

What is the meaning of AASC?

Answer 5

Auditing and Assurance Standards Council

Question 6

What is the meaning of ETC

Answer 6

Education Technical Council

Question 7

They are responsible for public accountability and provides the link between the trustees and the public authorities

Answer 7

IFRS Foundation Monitoring Board

Question 8

They are responsible for the governance and oversight of the IFRS Foundation, the IASB and ISSB

Answer 8

IFRS Foundation Trustees

Question 9

What are the main responsibilities of the following: IASB, IFRIC and ISSB

Answer 9

IASB is the standard setting body
IFRIC is the interpretative body of IASB
ISSB is the responsible for the development and approval of IFRS sustainability disclosures standards

Question 10

What are the four basic steps in developing an accounting standard

Answer 10

Agenda Consultation, Research Program, Standard Setting Program and Maintenance Program

Question 11

What is basis that provide guidance on the full process in developing an accounting standard

Answer 11

Due Process Handbook

Question 12

What are the mandatory parts of an accounting standard

Answer 12

The principles and the related application guidance
The defined terms
Effective date and transition paragraphs

Question 13

What are the accounting standards adopted in the Philippines

Answer 13

Philippine Financial Reporting Standard (PFRS)
Philippine Accounting Standards (PAS)
Philippine Interpretations

Question 14

What are the two important functions of PRC-BOA

Answer 14

(1) to conduct and administer licensure examination to aspiring professionals
(2) To regulate and supervises the practice of the profession

Question 15

What is the law governing the accounting practice in the Philippines

Answer 15

RA 9298- the Philippine Accountancy Act of 2004

Question 16

What are the main responsibilities of the following: AASC, ETC and PIC

Answer 16

FSRSC is the accounting standard setting body in the Philippines
AASC is the auditing standard setting body in the Philippines
ETC is the responsible in the continuous upgrading of the accountancy education in the Philippines to make the Filipino CPAS globally competitive
PIC is the interpretative body of FSRSC

Question 17

Enumerate the members composing the FSRSC

Answer 17

Sixteen members with a chairman who had been or is presently a senior accounting practitioner and 15 representative from: BOA (1); SEC (1); BSP (1); BIR (1); COA (1); FINEX (1); Insurance Commission (1); PICPA (8) - Public Practice (2); Commerce and Industry (2); Academe (2) and Government (2). The Chair and members shall be appointed by commission upon the recommendation of the Board in coordination with APO

Question 18

Enumerate the members composing the AASC

Answer 18

Fifteen members with a chairman to be appointed by commission upon the recommendation of the Board in coordination with APO. The 14 representatives are as follows: BOA (1); BSP (1), COA (1), Association of CPA’s in Public Practice - 1; PICPA - Public Practice - 6; PICOA- Commeruand Industry - 1; PICPA- Academe- 1; PICPA- Government - 1

Question 19

Enumerate the members composing the ETC

Answer 19

Seven members with a chairman to be appointed by commission upon the recommendation of the Board in coordination with APO. The six members are composed of: BOA -1; PICPA -Public Practice - 1 ; PICPA - Commerce and Industry - 1; PICPA - Academe- 2; PICPA -Government - 1

Question 20

Enumerate the members composing the PIC

Answer 20

Membership in PIC shall be endorsed to and approved by the FSRSC. They are composed of fifteen representatives: Nine accounting Firm; FINEX (1); Academe- (1); SEC (1); BSP (1); Insurance Commission (1); BOA (1)

Question 21

The title of PAS 23 is

Answer 21

Borrowing cost

Question 22

PFRS 16 refers to

Answer 22

Leases

Question 23

What accounting standard is related to Intangible Assets

Answer 23

PAS 38

Question 24

It refers to the inculcation of advanced knowledge, skills and ethical values in a post-licensure specialization or an inter or multidisciplinary field of study, for the assimilation into professional practice, self-directed research and or life long learning.

Answer 24

CPD- Continuing Professional Development

Question 25

They are responsible in the accreditation of practitioners who audit publicly listed companies

Answer 25

SEC- Securities and Exchange Commission