Growth of Accounting (Prelim) Flashcards
It is the language of business has undergone through series of development and innovation
Accounting
Origins of Accounting are often traced in what and starting when?
Traced to the times of Sumer, in Mesopotamia, starting in the 4th millennium BCE
He is Archeologist of the German Institute of Archaeology that discovered 5300-year-old bone
Archeologist Dr. Gunter Dreyer
He is a Franciscan monk that founded accounting as a discipline and published a book entitled “Summa de Arithmetica, Geometria, Proportioni et Proportionalita,”
Luca Pacioli
It is the most commonly practiced and comprehensive discipline of accounting
Financial Accounting
It deals with the information needs of those internal to the business
Managerial Accounting
It is the measurement of recognition of the cost of services and products being manufactured by the firm
Cost of Accounting
It is the process of analyzing, measuring, recording, and distributing reports of all transactions
Government Accounting
This is an example of local governments and municipalities that must show a clear management of their funds using proper accounting
Government Accounting Manual (GAM)
It is a cluster of accounting standards and common industry usage that have been developed over many years
Generally Accepted Accounting Principles (GAAP)
It is an independent private sector body, with the objective of achieving uniformity in the accounting principles and was formed in 1973
International Accounting Standard Committee (IASC)
This is the approved standards of the IASC
International Accounting Standards (IAS)
It is an independent, private sector body that develops and approves IFRS and replaces the IASC
International Accounting Standards Board (IASB)
It is a set of standards intended to bring about greater transparency and a higher degree of comparability in the financial reporting process
International Financial Reporting Standards (IFRS)
It is the accounting standard-setting body created by the Professional Regulation Commission and to assist the Board in carrying out it’s power and functions provided
Financial Reporting Standards Council (FRSC)
This is the main function of FRSC
to establish and improve the accounting standards
This is the body authorized to establish and promulgate Generally Accepted Auditing Standards (GAAS)
Auditing and Assurance Standards Council (AASC)
What is the main objective of the AASC in adopting IAASB?
It is to attain uniformity of the local GAAS with the IAASB pronouncement s
It is a summary of terms and concepts that underlie the preparation and presentation of financial statements
Conceptual Framework
These are qualitative characteristics which related to the content or substance of financial information
Fundamental Qualitative Characteristics
This enables the financial information to make a difference in a decision made by users.
Relevance
This shows the information to be complete, neutral, and free from error
Faithful representation
These are qualitative characteristics which relate to the presentation or form of financial information
Enhancing Qualitative Characteristics
It enables the users to identify and understand similarities in, and difference among items
Comparability
It allows different knowledge and independent observes to reach consensus
Verifiability
This means that information is available to decision-makers
Timeliness
This requires financial information to be presented as clear, intelligible, and concise
Understandability
