02 Preface to PFRS

Question 1

Set out recognition, measurement, presentation and disclosure requirements dealing with transactions and events important in the preparation and presentation of FS

Answer 1

Philippine Financial Reporting Standards

Question 2

PFRS are __________-based, not __________-based.

Answer 2

Principle-based; rule-based

Question 3

PFRS applies to _____________ entities that are preparing ____________________.

Answer 3

Profit-oriented; general-purpose FS

Question 4

What are the two types of paragraphs in a PFRS and which has more authority?

Answer 4

bold-type - main principles
plain-type - supporting principles

both have equal authority

Question 5

What is the structure of PFRS?

Answer 5

Title
Objective
Scope
Paragraphs

Question 6

What are the standard-setting bodies in the Philippines and internationally?

Answer 6

FSRSC;
IASB

Question 7

What are the pronouncements of the standard-setting bodies in the Philippines and internationally?

Answer 7

PFRS;
IFRS

Question 8

What are the predecessors of the standard-setting bodies in the Philippines and internationally?

Answer 8

ASC;
IASC

Question 9

Controlling body of the organization composed of a board of trustees, appointing technical groups and advisory groups

Answer 9

IFRS Foundation

Question 9

The Trustees of the IFRS Foundation are accountable to the ______________ who appointed them.

Answer 9

Monitoring Board

Question 9

Who created the standard-setting bodies in the Philippines and internationally?

Answer 9

PRC (specifically PRBOA);
IFRS Foundation

Question 10

Groups that create standards

Answer 10

Technical groups

Question 11

Has the sole responsibility of establishing and reviewing IFRS

Answer 11

IASB

Question 12

How many members does IASB have and what is the term of office?

Answer 12

14 members, 3 to 5 years initial term

Question 13

What is the relation between appointed chairman and Chief Executive of IFRS Foundation?

Answer 13

appointed chairman of IASB automatically becomes chief executive of IFRS Foundation

Question 14

Responsible for developing interpretations for approval by the IASB

Answer 14

IFRS Interpretations Committee

Question 15

Part of technical groups tha are considered as expert task forces for individual agenda projects of IASB

Answer 15

Working groups

Question 16

Formal advisory body to the IASB and Trustees, advising on agenda and priorities

Answer 16

IFRS Advisory Council

Question 17

Advises on the technical standard-setting activities of the IASB

Answer 17

Accounting Standards Advisory Forum

Question 18

Are members of ASC allowed to be part of FSRSC?

Answer 18

Yes

Question 19

Enumerate for FSRSC and ASC:
Creators
Pronouncement
Composition

Answer 19

Creator: PR BOA; PICPA
Pronouncement: PFRS; PAS
Composition: 1 chairman and 15 members; 8 members including chairman

Question 20

What is included in PFRS?

Answer 20

PFRS, PAS, Phil. Interpretations

Question 21

Who issues Philippine Interpretations and who created that body?

Answer 21

PIC formed by FSRSC

Question 22

What is the term of FSRSC?

Answer 22

3 years, renewable

Question 23

What are the requirements to be the chairman of FSRSC?

Answer 23

Senior practitioner

Question 24

Where do the members of FSRSC and ASC come from?

Answer 24

FSRSC:
COA
BIR
SEC
BOA
BSP
FINEX
IC
PICPA (8 - 2 each)

ASC:
SEC
BOA
BSP
FINEX
PICPA (4 - 1 each)

Question 25

What are the steps of the standard-setting bodies?

Answer 25

1. Consider pronouncements of IASB
2. Formation of task force to give advice to FSRSC
3. Issue exposure draft approved by majority of FSRSC (comment period for at least 60 days or if less, at least 30 days)
4. Consider all comments and prepare comment letter to IASB
5. Approve by majority of members

Question 26

Standard-setting is a _________ process.

Answer 26

Social