Standard-Setting Bodies

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Questions and Answers

What is the primary role of the International Accounting Standards Board (IASB)?

To provide financial consulting services to businesses.

To enforce tax regulations across different countries.

To audit financial statements of global corporations.

To establish accounting standards internationally. (correct)

Which of the following is NOT a learning outcome associated with the chapter on the financial reporting framework?

Identifying regulatory agencies involved in crafting IFRS.

Gaining proficiency in answering financial accounting theory questions.

Knowledge about the operational procedures of financial audits. (correct)

Understanding the regulations of the accountancy profession.

The IASB consists of members with a diverse set of backgrounds. Which experience is NOT typically part of their composition?

Preparing and using financial reports.

Auditing financial statements.

Conducting market research for financial products. (correct)

Setting accounting standards.

In relation to the development of IFRS, the Philippines has a specific approach. What aspect is crucial in their adoption?

Gradual integration into local accounting practices. Signup and view all the answers

Which of the following best describes the purpose of regulatory agencies involved in financial reporting?

To ensure compliance with various local and international accounting standards. Signup and view all the answers

What was the original name of the IFRS Foundation before its name change in 2010?

International Accounting Standards Foundation Signup and view all the answers

What is a significant characteristic of the group of experts that comprise the IASB?

They include a mix of practical experience in accounting and financial reporting. Signup and view all the answers

What is the maximum number of members that can be appointed to the Professional Regulatory Board of Accountancy (PRBOA)?

6 Signup and view all the answers

How many board members does the IASB typically have as of December 1, 2016?

14 Signup and view all the answers

Which of the following is NOT a qualification for a member of the PRBOA?

Must have prior experience in teaching accountancy Signup and view all the answers

What is NOT a responsibility of the IASB?

Regulating the accountancy profession. Signup and view all the answers

What year was the Philippine Institute of Certified Accountants (PICPA) founded?

1929 Signup and view all the answers

What is the main objective of the IFRS Foundation?

To create a single set of high-quality financial standards Signup and view all the answers

Which statement best captures the expectations of accountants regarding IFRS and financial reporting?

Accountants must adapt to IFRS while adhering to local regulations. Signup and view all the answers

What is the term of office for the Chairman and Members of the PRBOA?

3 years Signup and view all the answers

Which committee assists the IASB by providing guidance on IFRS application?

International Financial Reporting Interpretations Committee Signup and view all the answers

Which of the following is NOT one of the objectives of the PICPA?

To promote international trade practices Signup and view all the answers

What happens in case of a vacancy in the office of the chairman of the PRBOA?

The vice-chairman assumes duties until a new chairman is appointed. Signup and view all the answers

When was the International Financial Reporting Interpretations Committee (IFRIC) reconstituted?

December 1, 2001 Signup and view all the answers

In what frequency must certified public accountants renew their registration with the Commission?

Every three years Signup and view all the answers

What is NOT a duty of the IFRIC?

Mandate changes in national accounting standards Signup and view all the answers

Which of the following disqualifies a candidate from being appointed to the PRBOA?

Possessing a pecuniary interest in institutions offering accountancy programs Signup and view all the answers

Which geographical group does NOT belong to the accountancy profession in the Philippines?

Samar Signup and view all the answers

What is required for a certificate of accreditation to be issued to a certified public accountant in public practice?

Acquire three years of meaningful experience Signup and view all the answers

Which body is responsible for setting IFRS Standards?

International Accounting Standards Board Signup and view all the answers

What is the condition regarding previous terms for those appointed to the PRBOA?

They are ineligible for reappointment for one year after two complete terms. Signup and view all the answers

When was the IFRS Foundation officially renamed from the IASF?

July 1, 2010 Signup and view all the answers

Who elects the vice-chairman of the PRBOA?

The members of the Board Signup and view all the answers

For how long must a member of the PRBOA have work experience in accountancy before being appointed?

10 years Signup and view all the answers

What role does the Board play in relation to the Certificate of Registration for accountants?

It can suspend, revoke, or reinstate the Certificate of Registration. Signup and view all the answers

Which of the following is a responsibility of the Board concerning accountancy ethics?

To prescribe and/or adopt a Code of Ethics for the practice of accountancy. Signup and view all the answers

What is one of the powers of the Board related to misconduct in the accountancy profession?

To issue a cease or desist order for violations of the Act. Signup and view all the answers

What is required for membership in the integrated national professional organization for accountants?

Approval from the Board and payment of required fees. Signup and view all the answers

Which of the following is NOT a specific power of the Board under the Philippine Accountancy Act?

To prepare budgets for accounting firms. Signup and view all the answers

What authority does the Board have regarding the conduct of licensure examinations for CPAs?

To design the syllabus and administer the examinations. Signup and view all the answers

Which statement reflects the nature of the integration of certified public accountants in the Philippines according to Section 30 of RA 9298?

There is one accredited national organization for all accountants. Signup and view all the answers

What responsibility does the Board have in relation to accountancy practice conditions?

To monitor the practice conditions affecting accountancy. Signup and view all the answers

Study Notes

International Accounting Standards Board (IASB)

Independent group of experts responsible for developing International Financial Reporting Standards (IFRS)
Founded in 2001, succeeding the International Accounting Standards Committee (IASC)
Fourteen (14) board members, including a Chair and a Vice-Chair.

The IFRS Foundation

Formerly known as the International Accounting Standards Foundation (IASF)
Responsible for developing a single set of high-quality IFRS
Oversees the IASB

The International Financial Reporting Interpretations Committee (IFRIC)

Assists the IASB by providing guidance on the application and interpretation of IFRS
Replaces the Standing Interpretations Committee (SIC)
Publishes draft interpretations for public comment and finalizes Interpretations with IASB approval

The Professional Regulatory Board of Accountancy (PRBOA)

Composed of a Chairman and six (6) members appointed by the President of the Philippines
Board members must be natural-born citizens, residents of the Philippines, and hold a CPA license with at least ten (10) years of experience.
Board members serve three (3) year terms.

Powers and Functions of the PRBOA

Prescribe and adopt rules and regulations for the practice of accountancy.
Supervise the registration, licensure, and practice of accountancy.
Investigate violations of the Philippine Accountancy Act of 2004 (RA 9298)
Administer the Licensure Exam for CPAs (LECPA)
Protect the Certificate of Certified Public Accountant granted by the Republic of the Philippines.

The Philippine Institute of Certified Public Accountants (PICPA)

Accredited professional organization (APO) of CPAs by the Professional Regulation Commission (PRC)
Aims to promote and maintain high professional and ethical standards, advance the science of accounting, develop and improve accountancy education, and encourage cordial relations among accountants.
Divided into four sectors: Commerce and Industry, Public Practice, Government, and Education/Academe.
Divided into four geographical groupings: Luzon, Visayas, Mindanao, and National Capital Region.

Accreditation to Practice Public Accountancy

Certified public accountants, firms, and partnerships engaged in public accountancy must register with the Commission and the Board every three (3) years.
Single practitioners and partnerships require a certificate of accreditation after demonstrating three (3) years of meaningful experience in any area of public practice, including taxation.

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Description

This quiz covers the key components of the International Accounting Standards Board (IASB), the IFRS Foundation, and the International Financial Reporting Interpretations Committee (IFRIC). Learn about their roles, responsibilities, and structure. Perfect for those studying international financial reporting standards.