Name: Antonio A Barangan Jr section: BSAIS 1A

CONCEPTUAL FRAMEWORK AND ACCOUNTING STANDARDS (AE 14)LEARNING MATERIAL

Activating Prior Learning

In order to understand our topic, we have to see first your prior learning about accounting.
Your task is to write everything that comes into your mind when you hear the word
ACCOUNTING. Write them in the circles below.
Feedback

The items below will be checked and recorded as your seatwork and quiz. Do well and enjoy!

Choose the best answer among the choices.

1. What is the law regulating the practice of accountancy in the Philippines?

a. RA No.9298
c. RA No. 9928
b. RA No. 9198
d. RA No. 9892

2. What is the body authorized by law to promulgate rules and regulations affecting the
practice of the accountancy profession in the Philippines?
a. Board of Accountancy
b. Philippine Institute of Certified Public Accountants
c. Securities and Exchange Commission
d. Financial Reporting Standards Council

3. What are the three main areas in the practice of the accountancy profession?
a. Public accounting, private accounting, and managerial accounting

b. Auditing, taxation and managerial accounting

c. Financial accounting, managerial accounting and corporate accounting

d. Public accounting, private accounting and government accounting

4. Which statement is incorrect in relation to the practice of public accountancy?

a. Single practitioners for the practice of public accountancy shall be registered CPAs in the
Philippines

b. Partners of partnerships formed for the practice of public accountancy shall be registered
CPAs in the Philippines
c. The Securities and Exchange Commission can register any corporation organized for the
practice of public accountancy
d. All of these statements are incorrec

5. CPAs are licensed by

a. The PICPA
c. The city government
b. The SEC
d. State government

6. All of the following describe accounting, except

a. A service activity
b. An information system
c. A universal language of business
d. An exact science rather than an art

7. The important points made in the definition of accounting include all of the following except
a. Accounting information is quantitative
b. Accounting information is both quantitative and qualitative
c. Accounting information is financial in nature

d. Accounting information is useful in decision making

8. The accounting process is the recognition or nonrecognition of business activities as

accountable events
a. Identifying
c. Communicating

b. Measuring
d. Reporting

9. What are the events that affect the entity and in which other entities participate
a. Internal events
c. Current events
b. External events
d. Obligating events

10.GAAP is an abbreviation for

a. Generally authorized accounting procedures
b. Generally applied accounting procedures
c. Generally accepted auditing practices
d. Generally accepted accounting principles

11.What is the primary service of CPAs in public practice

a. Auditing

c. Taxation
b. Managerial Accounting
d. Controllership

12.Accountants employed in entities in various capacities as accounting staff, chief accountant

or controller are said to be engaged in
a. Public accounting
c. Government accounting
b. Private accounting
d. Financial Accounting

13.It is the area of the accountancy profession that encompasses the process of analyzing,
classifying, summarizing and communicating all transactions involving receipt and disposition of
government funds and property and interpreting the results thereof.
a. Internal auditing
c. Private accounting

b. External auditing
d. Government accounting

14.How many CPD units are required for accreditation to practice the accountancy profession?

a. 120 units
b. 100 units
c. 60 units
d. 15 units

15.How many CPD units are required for renewal of CPA license?
a. 120 units
b. 100 units

c. 60 units

d. 15 units
16.A CPA shall be permanently exempted from renewal of CPA license
a. At the age of 65 years
c. When practicing abroad
b. When working abroad
d. When studying abroad

17.This refers to the inculcation and acquisition of advanced knowledge, skill, proficiency, and
ethical and moral values after the initial registration of the CPA
a. Continuing Professional Development
b. Continuing Practical Development
c. Continuing Personal Development
d. Continuing Professional Discipline

18.What is the measuring component in the definition of accounting?

a. The recognition or nonrecognition of business activities as accountable events
b. The assigning of peso amounts to the accountable events
c. The preparation and distribution of accounting reports to users of accounting information
d. The preparation of audit report by CPAs

19.The communicating process of accounting includes all of the following except

a. Recording
b. Classifying
c. Summarizing

d. Interpreting

20.What is the overall objective of accounting?

a. To provide the information that the managers of an economic entity need to control the
operations
b. To provide information that the creditors can use in deciding whether to grant loans to an
entity
c. To measure the periodic income of the economic entity

d. To provide quantitative financial information about an entity that is useful in making

economic decision

Topic 2: THE INTERNATIONAL ACCOUNTING STANDARDS

Application:
Your task:
I.Arrange the following steps of IASB standard-setting process according to its proper order.
Write 1-12 to the spaces provided.

5 The IASB is required to carry out a public consultation on its agenda every three years, the
first of which was required to begin no later than June 30, 2011

12 A Standard is approved by at least 9 votes of the IASB and any dissenting opinions are
included in the published standard

10All comments received within the comment period on discussion documents and
exposure drafts are considered and discussed in open meetings

6 An advisory group is formed (generally called a ‘working group’) to advise the IASB and its
staff on the project

1 Staff are asked to identify and review the issues associated with a potential agenda topic and
to consider the application of the Framework to the issues

4 The IFRS Foundation Trustees and the IFRS Advisory Council are consulted about the topics
and priorities in the IASB’s agenda

9 A basis for conclusions is published within the exposure draft

2 National accounting requirements and practices are studied and views about the issues are
exchanged with national standard-setters

7 A discussion document is published for public comment

3 Staff are asked to identify and review the issues associated with a potential agenda
topic and to consider the application of the Framework to the issues

8 An exposure draft approved by at least 9 votes of the IASB is published for public

11 The desirability of holding a public hearing and of conducting field-tests is considered

Feedback
I.Multiple Choice: Answer the following questions by encircling the correct answer.

1. The International Accounting Standards Board was formed

A. To enforce IFRS in foreign countries

B.To develop a single set of high quality IFRS

c. To establish accounting standards for multinational entities
d. To develop accounting standards for countries that do not have their own standard-setting
bodies

2. The International Accounting Standards Board

a. Was the predecessor to the IASB

b. Can overrule the USA GAAP when their policies disagree

c. Promotes the use of high-quality and understandable global accounting standards
d. Has its headquarters in Geneva

3. The IASB declared that the merits of proposed standards are assessed
a. From a position of neutrality
b. From a position of materiality
c. Based on possible impact on behavior
d. Based on arguments of lobbyist

4. The standard-setting process includes in the correct order

a. Exposure draft, research, discussion paper and accounting standard
b. Research, exposure draft, discussion paper and accounting standard
c. Research, discussion paper, exposure drafts and accounting standard
d. Discussion paper, research, exposure draft and accounting standard

5. The IASB employs a due process system which

a. Is an efficient system for collecting dues from members
b. Enables interested parties to express their views on issues under consideration
c. Identifies the accounting issues that are the most important
d. Requires that all CPAs must receive a copy of IFRS

6. What is due process in standard-setting by IASB?

a. IASB operates in full view of the public
b. Public hearings are held on proposed standards
c. Interested parties can make their views known
d. All of these are part of due process in standard-setting.

7. The standards published by IASB are called

a. International Accounting Standards

b. Financial Reporting Standards
c. International Financial Reporting Standards
d. Statement of Financial Accounting Standards

8. What is a possible danger if politics plays too big a role in developing IFRS?
a. Financial reporting standards are not truly generally accepted
b. Individuals may influence the standards
c. User groups become active
d. The IASB delegates its authority to elected officials

9. Accounting standard-setting
a. Can be described as a political process which reflects political actions of various interested
user groups as well as a product ofresearch and logic
b. Is based solely on research and empirical findings
c. Is a legalistic process
d. Is democratic in the sense that a majority of accountants must agree with a standard before
it becomes enforceable

10.IFRIC Interpretations issued by IASB

a. Are considered authoritative and must be followed

b. Cover newly identified financial reporting issues not specifically addressed
c. Cover issues where unsatisfactory or conflicting interpretations have developed
d. All of these are true about IFRIC interpretations

II.Identification. Identify the term described in each item. Write your answer in the space
provided before each item.

IASB1 AND IFRS1. These are standards published by IASB in a series of

pronouncements.
PFRSC2. It is the accounting standard setting body created by the Professional Regulation
Commission to assist the Board of Accountancy.
IASB3. It is an independent private sector body whose objective is to achieve convergence in
the accounting principles that are used by businesses and other organizations for financial
reporting around the world.
IFRS4. This committee is the interpretative body of the IASB.
PFRS5. These are the terms used for the approved statement of the FRSC.
________6. These accounting standards constitute the ____________ of generally accepted
accounting principles in the Philippines.

IASC. 7.What do you call the predecessor accounting body of IASB?

PICPA8. What do you call the predecessor accounting body of FRSC?

17 members9. The FRSC is composed of how many members?

Monitoring board10. A function in the IASB structure whose primary purpose is to
serve as mechanism for formal interaction between capital market
authorities and the IFRS Foundation.

Student’s Reflection on Learning

This part of the module will be a time for you to look back, and reflect on what you have
learned from this unit. Though, this will not be checked and recorded, I would appreciate if you
will do this wholeheartedly and with all seriousness

Answer the following questions and put your answers in the space provided.

1. Did you learn what you expected to learn? If yes, what made you successful with this unit of
instruction?
Yes, I've learn things that new to me and it may help me to continue and achieve mg goals.

2. What did you learn that was unexpected and how did it change your perspective about the
course.

I didn't expect that i will learn lots of knowledge in this unit. With the help of Google it's easy
for ne to understand more and helps me widen my way of thinking.