ACCOUNTING

FUNDAMENTA
Nature and Purpose
LS AND
Presented by: May Anne M. Arabit, CPA, MBA

COURSE OUTLINE

Introduction
Nature, Definition and
Purpose of Accounting
Users of Financial
Accounting Information
Forms of Business
Organization

Presented by: May Anne M. Arabit, CPA, MBA

COURSE OUTLINE
Types of Business
Operations
Accounting Concepts and
Principles
The Steps in the
Accounting
Interpretation of
Financial
Results
Presented
by: May Anne
M. Arabit, CPA, MBA

DEFINITION
Accounting is the art
of recording,
classifying and
summarizing in a
significant manner
and in terms of
money, transactions
and events which are
in part at least of
financial character
and interpreting
Presented
by: May Anne the
M. Arabit, CPA, MBA

DEFINITION

Accounting is a service
activity. Its function is
to provide quantitative
information, primarily
financial in nature
about economic entities
that is intended to be
useful in making
economic decision.

Presented by: May Anne M. Arabit, CPA, MBA

DEFINITION

Accounting is the
process of identifying,
measuring, and
communicating
economic information
to permit informed
judgments and
decisions by users of
the information.

Presented by: May Anne M. Arabit, CPA, MBA

IMPORTANT POINTS

INFORMATION
SYSTEM
Presented by: May Anne M. Arabit, CPA, MBA

IMPORTANT ACTIVITIES

Identifying recognition and nonrecognition of accountable events

Measuring process of determining
monetary amounts at which the elements
of financial statements are to be
recognized and carried in the financial
statements
Communicating preparing and
distributing accounting reports to potential
users of accounting information

Presented by: May Anne M. Arabit, CPA, MBA

BASIC PURPOSE OF
ACCOUNTING

The basic purpose of accounting

is
to
provide
quantitative
information about a business,
that is useful to statement users
particularly
owners
and
creditors, in making economic
decisions.

Presented by: May Anne M. Arabit, CPA, MBA

THE ACCOUNTANCY
PROFESSION
PRIVATE
ACCOUNTING

PUBLIC
ACCOUNTING

GOVERNMENT
ACCOUNTING

EDUCATION/
ACADEME

FINANCIAL
ACCOUNTING
INTERNAL
AUDITING
TAX ACCOUNTING
COST
ACCOUNTING
BUDGETING

EXTERNAL
AUDITING
TAX SERVICES
MANAGEMENT
ADVISORY
SERVICES

BIR
COA
DBM
DOF

ACCOUNTING
TAXATION
OTHER BUSINESS
SUBJECTS

Presented by: May Anne M. Arabit,

CPA

AUDITING
THE
PRACTICE OF TAXATION
PUBLIC
ACCOUNTANC MAS
Y

Presented by: May Anne M. Arabit,

CPA

THE REGULATORY BODIES

OF ACCOUNTING

Professional Regulation
Commission (PRC)
ACPAE
Board of Accountancy (BOA) ACPACI
ACPAPP
Philippine Institute of Certified
Public Accountants (PICPA) GACPA
Accounting Standards Council
(ASC)
Financial Reporting Standards
Council (FRSC)
Presented by: May Anne M. Arabit,
CPA

BASIC
ACCOUNTING
PRINCIPLES

Presented by: May Anne M. Arabit, CPA, MBA

THE
GENERALLY
ACCEPTED
ACCOUNTING
PRINCIPLE
Presented by: May Anne M. Arabit, CPA, MBA

Accounting Assumptions
IMPLICIT
ASSUMPTION

UNDERLYING
ASSUMPTION

TIME
PERIODS
MONETARY
UNIT

GOING
Presented by: May Anne M. Arabit, CPA, MBA

Accounting Assumptions

Accounting
Entity

Going concern

Monetary unit

Time Periods

Presented by: May Anne M. Arabit, CPA, MBA

IN YOUR OWN
POINT OF
VIEW, WHAT
DOES
ACCOUNTING
Presented by: May Anne M. Arabit,
CPA, MBA

Big yellow worksheets; several huge

notebooks; brain-whacking theories;
gazillions of numbers; numerous
account titles; struggling calculator;
statements to finish; life-long
practice; thick books to read; rushing
late night work; ugly eye bags;
unbalanced financial reports; accuracy
problems; unhealthy lifestyle;
constant lack of sleep; nosebleed
exams; heart-stopping results. Name
it! Everything is in here. People may
call it Accounting. But to us, we call
Presented by: May Anne M. Arabit,
CPA, MBA

ANG PAGMAMAHAL NG
ISANG CPA

Ang pagmamahal ng isang CPA

ay hindi nagde-DEPRECIATE.
RELIABLE regardless of the face and
looks dahil ang prinsipyo nito ay
laging SUBSTANCE OVER FORM.
COMPLETE, yung tipong wala ka ng
hahanapin pa kasi marunong
magADJUST.
Presented by: May Anne M. Arabit,
CPA, MBA

ANG PAGMAMAHAL NG
ISANG CPA

Nagbibigay ng ALLOWANCE at sa
lahat ng ginagawa nya, yung mahal
nya ang
laging PREFERRED... laging inuuna.
Palaging meron appropriate
DISCLOSURE
para ipakita sa buong mundo ang
tunay na pagmamahal.
Presented by: May Anne M. Arabit,
CPA, MBA

ANG PAGMAMAHAL NG
ISANG CPA

Kung may samaan ng loob, naraWRITEOFF kaagad, kung me

tampuhan, nao-OFFSET ng
pagmamahal.
Yung mga nakaraan, iyakan at
lambingan, nake-CARRY FORWARD sa
next FISCAL YEAR.
Presented by: May Anne M. Arabit,
CPA, MBA

ANG PAGMAMAHAL NG
ISANG CPA

Ang pagmamahal ng isang CPA, it

keeps no RECORDS of wrong
dahil merong REVERSAL of
forgiveness at CORRECTING ENTRY
kung kailangan.
Kung meron man fortuitous event
dahil
sa third party, anjan parin ang
pusong
nakahandang mag-AUDIT dahil ang
Presented by: May Anne M. Arabit,
CPA, MBA

ANG PAGMAMAHAL NG
ISANG CPA

Sumusunod sila sa IFRS at

SARBANES-OXLEY act pagdating sa
lambingan dahil ang bawat isa ay
marunong tumupad sa sinumpaang...
none will commit the ACTS
DISCREDITABLE to the PROFESSION.

Presented by: May Anne M. Arabit,

CPA, MBA

ANG PAGMAMAHAL NG
ISANG CPA

Ang bawat detalye ng suyuan at

tagpuan ay nakaRECORD sa
WORKSHEET ng diary at handang
ipahayag for the sake of
TRANSPARENCY.
Kahit wala ng pera ang bawat isa,
they
still say that the FINANCIAL
STATEMENTS PRESENTS FAIRLY at
FREE OF MATERIAL MISSTATEMENT.
Presented by: May Anne M. Arabit,
CPA, MBA

ANG PAGMAMAHAL NG
ISANG CPA

Higit sa lahat... GOING CONCERN

kung
magmahal... panghabang buhay

Presented by: May Anne M. Arabit,

CPA, MBA