THE ACCOUNTANCY

PROFESSION
LECTURE
COURSE OUTLINE
1. The Accountancy Profession
2. Conceptual Framework – Financial Reporting and Assumptions
3. Conceptual Framework – Qualitative Characteristics and Constraints
4. Conceptual Framework – Elements of Financial Statements
5. Accounting Standards

PROJECT – video presentation

• General concept of standards
• duration - 5 to 10 mins
• .mp4 format
• Deadline January 31, 2019
INTRODUCTION:
ACCOUNTING DEFINED
What is Accounting?
Accounting is a service activity. The accounting function is to provide
quantitative information, primarily financial in nature, about economic
entities, that is intended to be useful in making economic decision.
(Accounting Standards Council)
INTRODUCTION:
ACCOUNTING DEFINED

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 a financial character and interpreting the results thereof.
(American Institute of Certified Public Accountants)
INTRODUCTION:
ACCOUNTING DEFINED

Accounting is the process of identifying, measuring and communicating

economic information to permit informed judgment and decision by users
of the information. (American Accounting Association)
INTRODUCTION:
OBJECTIVE OF ACCOUNTING

To provide quantitative financial information about a business that is useful

to statement users particularly owners and creditors in making economic
decisions.
THE ACCOUNTANCY PROFESSION
R.A. 9298 “Philippine Accountancy Act of 2004”
An Act Regulating The Practice Of Accountancy In The Philippines, Repealing For
The Purpose Presidential Decree No. 692, Otherwise Known As The Revised
Accountancy Law, Appropriating Funds Therefor And For Other Purpose
R.A. 10912 “Continuing Professional Development Law”
• CPD – inculcation and acquisition of advanced knowledge, skill, proficiency and
ethical and moral values after the initial registration of the CPA
R.A. 9298 “PHILIPPINE ACCOUNTANCY ACT OF 2004”
SCOPE OF PRACTICE
FOUR SECTOR
1. Public Practice
2. Commerce and Industry
3. Education/Academe
4. Government
R.A. 9298 “PHILIPPINE ACCOUNTANCY ACT OF 2004”
EXAMINATION, REGISTRATION AND LICENSURE
• To qualify to practice the accountancy profession, a person must:
a) Finish a degree in Bachelor of Science in Accountancy
b) Pass a very difficult government examination given by the Board of
Accountancy
Qualifications of Applicant
• is a Filipino citizen;
• is of good moral character;
• is a holder of the degree of Bachelor of Science in Accountancy; and
• has not been convicted of any criminal offence involving moral turpitude
R.A. 9298 “PHILIPPINE ACCOUNTANCY ACT OF 2004”
EXAMINATION, REGISTRATION AND LICENSURE
SCOPE OF EXAMINATION
1. Financial Accounting and Reporting,
2. Advanced Financial Accounting and Reporting,
3. Management Advisory Services,
4. Audit,
5. Taxation and
6. Regulatory Framework for Business Transactions
R.A. 9298 “PHILIPPINE ACCOUNTANCY ACT OF 2004”
EXAMINATION, REGISTRATION AND LICENSURE
RATING REQUIRED TO PASS
• general average of seventy five percent (75%), with no grade lower than
sixty-five percent (65%) in any given subject
In the event a candidate obtains the rating of seventy-five percent (75%) and above in at
least a majority of subjects as provided for in this Act, he/she shall receive a conditional
credit for the subjects passed: Provided, That a candidate shall take an examination in the
remaining subjects within two (2) years from preceding examination: Provided, further, That
if the candidate fails to obtain at least a general average of seventy-five percent (75%) and a
rating of at least sixty-five percent (65%) in each of the subjects reexamined, he/she shall be
considered as failed in the entire examination.
R.A. 9298 “PHILIPPINE ACCOUNTANCY ACT OF 2004”
IMPLEMENTING RULES AND REGULATIONS (IRR)
creates FINANCIAL REPORTING STANDARDS COUNCIL (FRSC)
• Replaces ASC (Accounting Standards Council)
• Evaluates the IAS and IFRS that shall be adopted in the Philippines
• The FRSC shall be composed of a chairman and 14 members from the ff:
(1) Professional Regulatory Board of Accountancy (BOA)
(1) Securities and Exchange Commission (SEC)
(1) Bangko Sentral ng Pilipinas (BSP)
(1) Bureau of Internal Revenue (BIR)
(1) A major organization composed of FS preparers and users
(1) Commission on Audit (COA)
(8) Accredited Professional Organization (APO)
R.A. 9298 “PHILIPPINE ACCOUNTANCY ACT OF 2004”
IMPLEMENTING RULES AND REGULATIONS (IRR)

PHILIPPINE INTERPRETATIONS COMMITTEE (PIC)

• Formed by FRSC in August 2006
• To assists the FRSC in establishing and improving financial reporting standards in
the Philippines
 PHIL
IFRS FOUNDATION ACCOUNTANCY
R.A. 9298
LAW

IASC
IASB ASC
FRSC

IAS
IFRS PAS
PAS & IFRS