Part 2: Accounting Principle Flashcards
are those that are not specifically mentioned in the foregoing but are customarily used because of their general and long time acceptance within the accountancy profession
Implicit concepts and Principles
are standards and interpretation adopted by the Financial Reporting Standards Council
Philippine Financial Reporting Standard
It is tasked with regulating corporations, as well as, partnerships
Securities and Exchange Commission (SECs)
Is task in collecting national taxes and administering the provisions of the Tax code
Bureau of Internal Revenue (BIR)
It is tasked with regulating banks and other entities that have a banking function
Bangko Sentral ng Pilipinas
It is tasked with regulating cooperatives
Cooperative Development Authorities (CDA)
It prescribes accounting concepts meant to guide the accountant in preparing and presenting financial statements
Conceptual Framework of Financial Reporting
Are the trait that makes the information useful to users
Qualitative Characteristics
These refer to the essential characteristic information must have before it can be included in the financial statement
Fundamental qualitative information
It has the ability to affect the decision making of the users
Relevance
Users can use this as an input in making predictions of outcomes events
Predictive value
Users can confirm their past predictions
Confirmatory value
If omitting it or misstating it can influence the decision making of the user
Materiality
Information is faithfully represented if it is factual, meaning it represents the actual effects of the events that have taken place
Faithful representation
Information should be represented with sufficient details necessary for users to understand them
Completeness
