Chapter 1 Flashcards
The Need for Financial Reporting
Caters to the common needs of a wide range of users
GENERAL PURPOSE FS
Cater to the specific needs of a specific sets of users
SPECIAL PURPOSE FS
Does not have direct access to FSs
EXTERNAL USERS
Has direct access to FSs
INTERNAL USERS
Directly affected by the FS
DIRECT USERS
Indirectly affected by the FS
INDIRECT USERS
Has direct financial interest over the entity
PRIMARY USER
All other user having no interest or stake over the entity
SECONDARY USER
Branches of accounting (5)
- Financial Accounting
- Management Accounting
- Cost Accounting
- Tax Accounting
- Government Accounting
Preparation of financial statements primarily for external users
Financial Accounting
Preparation of financial statements primarily for management use
Management Accounting
Common denominator between financial and management accounting
Cost Accounting
Preparation of FS based on NIRC
Tax Accounting
Analyzing, classifying, summarizing, and communicating all transactions involving the receipt and disposition of government funds and property, and interpreting the results thereof
Government Accounting
Independent examination of financial statements conducted by CPAs to render an opinion as to the fairness of the presentation of the FS
Auditing
Refers only to one phase of accounting, the recording phase
Bookkeeping
The process of recording, classifying, and summarizing financial transactions.
Accounting
Sectors of Accounting (4)
- Public
- Private
- Academe
- Government
Act that regulates accountancy in the Philippines
RA 9298 (Philippine Accountancy Act of 2004)
IFRS
INTERNATIONAL FINANCIAL REPORTING STANDARDS
PFRS
PHILIPPINE FINANCIAL REPORTING STANDARDS
IAS
INTERNATIONAL ACCOUNTING STANDARDS
SIC
STANDING INTERPRETATIONS COMMITTEE
IASB
INTERNATIONAL ACCOUNTING STANDARDS BOARD
IFRIC
INTERNATIONAL FINANCIAL REPORTING INTERPRETATIONS COMMITTEE
PICPA
PHILIPPINE INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
ASC
ACCOUNTING STANDARDS COUNCIL
SFAS
STATEMENTS OF FINANCIAL ACCOUNTING STANDARDS
IASC
INTERNATIONAL ACCOUNTING STANDARDS COMMITTEE
FASB
FINANCIAL ACCOUNTING STANDARDS BOARD
BOA
BOARD OF ACCOUNTANCY
FRSC
FINANCIAL REPORTING STANDARDS COUNCIL
PIC
PHILIPPINE INTERPRETATIONS COMMITTEE
PAS
PHILIPPINE ACCOUNTING STANDARDS
The “bible” of accountants
IFRS
Philippine’s version of IFFRS
PFRS
Succeeded SIC
IFRIC
Accredited professional organization of CPAs
PICPA
Organized ASC
PICPA
Establish and improve GAAP
ASC
Accounting standards developed by ASC
SFAS
Body that regulates the practice of accountancy in the Philippines
BOA
Established FRSC
BOA
Replaced and took over ASC
FRSC
Provides FRSC assistance in establishing and improving FS standards
PIC
Accounting standards adopted in the Philippines
PAS
