Accounting Standard-Setting Quiz

Financial Reporting Unit 1 Summary

• Unit 1 is a review of basic accounting concepts and financial reporting standards.
• The learning objectives include reviewing basic financial reporting concepts, identifying Philippine standard-setting bodies, and understanding the process for drafting accounting standards.
• The unit is expected to take four study hours, with three hours for reading and comprehension and one hour for assessments.
• Accounting is defined as a service activity providing quantitative information about economic entities for making economic decisions.
• Essential characteristics of accounting include providing quantitative information and facilitating informed judgment and decision-making.
• The American Institute of CPAs defines accounting as the art of recording, classifying, and summarizing financial transactions and events.
• The American Accounting Association defines accounting as the process of identifying, measuring, and communicating economic information for informed judgment.
• The unit provides a general overview of financial reporting and standard-setting bodies in the Philippines.
• The primary focus is on understanding the fundamental concepts and processes related to financial reporting and accounting standards.
• The unit is designed to refresh and reinforce the basic principles of accounting and financial reporting.
• The content covers the general political process of standard setting and the role of standard-setting bodies in the Philippines.
• The unit aims to equip learners with the knowledge and understanding of financial reporting standards and their significance in the accounting profession.