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Questions and Answers
What was the main reason behind the Philippine ASC's decision to move away from FASB Financial Accounting Standards Board in 1997?
Which of the following organizations is NOT a supporter of IASB standards?
What is the main benefit of adopting International Accounting Standards in the Philippines?
What is the significance of SEC, Rule 48 in the context of IAS adoption in the Philippines?
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What is the primary driver of the increasing internalization of business in the Philippines?
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What is the primary objective of the Philippine ASC's adoption of International Accounting Standards?
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What is the role of IOSCO in the context of IAS adoption in the Philippines?
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What is the significance of the World Trade Organization's General Agreement on Trade in Services in the context of IAS adoption in the Philippines?
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What is the primary reason behind the Philippine ASC's move away from GATS?
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What is the significance of the improving quality of IAS in the context of IAS adoption in the Philippines?
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Study Notes
Conceptual Framework and Environment of Accounting Standards
- The IASB (International Accounting Standards Board) was established in 2001 to develop high-quality, understandable, enforceable, and global accounting standards.
IASB Structure
- The IASB structure is designed to support desirable attributes, including representativeness of the decision-making body, independence of its members, and technical expertise.
Monitoring Board
- The monitoring board is the overseeing segment of the IASB structure, serving as a mechanism for formal interaction between capital market authorities and the IFRS Foundation.
IFRS Foundation
- The IFRS Foundation is an independent, not-for-profit private sector organization working in the public interest, aiming to develop a single set of high-quality international financial reporting standards.
Accounting Standards
- Accounting standards are authoritative statements of how particular types of transactions and other events should be reflected in financial statements.
- Compliance with accounting standards is necessary for the fair presentation of financial statements.
International Financial Reporting Standards
- IFRS is a set of standards that require compliance with all existing standards to be considered IFRS-compliant.
- IFRIC (International Financial Reporting Interpretations Committee), IAS (International Accounting Standards), and SIC (Standard Industrial Classification) are related to IFRS.
Need for International Accounting Standards
- The need for international accounting standards arises from the need for comparability, which can be achieved through financial analysis, and the high preparation costs for financial reporting that are required for multinational companies.
Philippine ASC to IAS
- The Philippine ASC (Accounting Standards Council) moved from adopting FASB (Financial Accounting Standards Board) to International Accounting Standards in 1997.
- Considerations for this move include support from Philippine organizations, SEC Rule 48, and the increasing internationalization of business.
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Description
This quiz covers the conceptual framework and environment of accounting standards, including the purpose and establishment of the International Accounting Standards Board (IASB).
