INTERNATIONAL ACCOUNTING STANDARDS COMMITTEE

The International Accounting Standards Committee, or IASC

is an independent private sector body, with the objective of
achieving uniformity in the accounting principles which are
used by business and other organizations for financial
reporting around the world.
It was formed in June 1973 through an agreement made by
professional accountancy bodies from Australia, Canada,
France, Germany, Japan, Mexico, the Netherlands, the
United Kingdom and Ireland, and the United States of
America. The IASC is headquartered in London, United
Kingdom.
Objectives of IASC
a. To formulate and publish in the public interest
accounting standards to be observed in the presentation of
financial statements and to promote their worldwide
acceptance and observance.

b. To work generally for the improvement and

harmonization of regulations, accounting standards and
procedures relating to the presentation of financial
statements.

INTERNATIONAL ACCOUNTING STANDARDS BOARD

The International Accounting Standards Board or IASB now
replaces the International Accounting Standards Committee
or IASC.
The IASB publishes standards in a series of pronouncements
called international Tinancia1 Reporting Standards or IFRS.
However, the IASB has adopted the body of standards issued
by the IASC.
The pronouncements of the IASG continue to be designated as
"International Accounting Standards" or IAS.
The IASB standard setting process includes in the correct
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accounting standard.
Move toward IFRS
In developing accounting standards that will be generally
accepted in the Philippines, standards issued by other
standard setting bodies such as the USA Financial Accounting
Standards Board (FASB) and the IASB are considered.
In the past years, most of the Philippine standards issued
are based on American accounting standards.

At p r e s e n t , t h e F R S C h a s a d o p t e d i n t h e i r e n t i r e t y a l l
Intern'ational Acco unting Standards and International
Financial Reporting Standards.

The move toward IFRS is essential to achieve the goal of one

uniform and globally accepted financial reporting standards.

The Philippines is fully compliant with IFRS effective

January 2005, a process which was started back in 1997 in
moving from USA GAAP to IFRS.

The following factors are considered in. deciding to move

totally to international accounting standards:
a. Support of international accounting standards
by
Philippine organizations, such as the Philippine SEC,
Board of Accountancy and PICPA.
b. Increasing internalization of business which
has
heightened interest in a common language for financial
reporting.
c, Improvement of international accounting standards or
removal of free choices of accounting treatments.
d. Increasing recognition of international accounting
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 standards by the World Bank, Asian Development Bank'
and World Trade Organization.
Philippine Financial Reporting Standards
The Financial Reporting Standards Council issues standards
in a series of pronouncements called "Philippine Financial
Reporting Standards" or PFRS.

The Philippine Financial Reporting Standards collectively

include all of the following:

a. Philippine Financial Reporting Standards

which
correspond to International Financial Reporting
Standards.

The Philippine Financial Reporting Standards are

numbered the same as their counterpart in International
Financial Reporting Standards.

b. Philippine Accounting Standards which correspond

to
International Accounting Standards.

The Philippine Accounting Standards are numbered the

same as their counterpart in International Accounting
Standards.

c. Philippine Interpretations which correspond

to
Interpretations of the IFRIC and the Standing
Interpretations Committee, and Interpretations
developed by the Philippine Interpretations Committee.

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