STANDARD SETTING BODIES
Can serve an individual capacity and
1. International Accounting Standard Board (IASB)
2. IFRS Interpretation Committee (IC)
3. Financial Reporting Standard Council (FRSC)
4. Philippine Interpretations Committee (PIC)
JUNE 29, 1973
 Forming of the International Accounting Standard
Committee (IASC)
MAY 4, 2000
 IASC restructures itself into full-time IASB
APRIL 1, 2001
 IASB was established
IASB MEMBERSHIP
 Shall consists of 14 board members of whom one
is appointed as chair and vice-chair
 The constitution requires 4 members from the
Asia/Oceania, 4 members from the Europe, 4
members from the Americas, 1 member from
Africa and 1 appointed from any areas
MAIN QUALIFICATION FOR MEMBERSHIP (IASB)
 Professional competence and practical experience
MAIN FUNCTIONS OF IASB
1. Full discretion in developing and pursuing its
technical agenda, subject to certain consultation
requirements with the Trustees and the public.
2. The preparation and issuing of IFRS (other than
interpretations) and exposure drafts following the
due process stipulated in the constitution.
3. The approval and issuing of Interpretations
develop by the IFRS Interpretations Committee.
IASB’s DUE PROCESS
1. Research Programme
2. Developing a proposal for publication
3. Redeliberation and finalization
4. Post-implementation reviews
ACCOUNTING INTERPRETATION
 Is a statement, issued by the accounting standard
bodies, classifying how existing accounting
standards should be applied
INTERPRETATION VS. STANDARD
 Accounting interpretation is intended to expand on
the concept laid out by accounting standard, a
common set of principles and procedures that
define the basis of financial accounting policies
and practices
HISTORY OF IFRIC
 Standing Interpretations Committee (SIC) to
International Financial Reporting Interpretations
Committee (IFRIC) to IFRS Interpretations
Committee
IFRS INTERPRETATIONS COMMITTEE (IC)
 Interpretative body of IASB
 The work with the board in supporting consistency
application of IFRS standards
IFRS IC MEMBERSHIP
 Comprises of 14 voting members, appointed
by the Trustees of the IFRS Foundation for
renewable terms of 3 years
IFRS IC QUALIFICATIONS
1. High level of technical expertise
2. To add to the diversity of IC in terms of
International Business
3. Have market experience in the practical
application of IFRS standards and analysis of
financial statements prepared in accordance with
IFRS standards
4.
demonstrates their independence
IFRS IC MAIN FUNCTIONS
1. Interpret the application of IFRS and provide
timely guidance on financial reporting issues not
specifically addressed in the IFRS, in the context
of IASB, and undertake other tasks at the request
of the IASB.
2. In carrying out its work above, having regard to
the IASB’s objective of working actively with
national standard-setters to bring about
convergence of national accounting standards
and IFRS to high quality solutions
3. Publish after clearance by the IASB draft
interpretations for public comment and consider
comment made within a reasonable period before
finalizing interpretation report to the IASB and
4. Obtain the approval of its members for final
interpretations.
FINANCIAL REPORTING STANDARDS COUNCIL
(FRSC)
 Created by the PRC
 To establish GAAP in the Philippines
 Consists of a chairman and members appointed
by the BOA
 Financial support is principally from PICPA
foundation
 IASC-IAS
 IASB-IFRS
 ASC-PAS
 FRSC-PFRS
FRSC MAIN FUNCTIONS
1. To establish GAAP in the Philippines
2. To promote the convergence of PAS with the IAS
3. Issues its standards through series of
pronouncement which includes the Philippine
Financial Reporting Standards (PFRS); Philippine
Accounting Standards (PAS) and the Philippine
Interpretations
PHILIPPINE INTERPRETATIONS COMMITTEE (PIC)
 Formed by the FRSC in August 2006 to assist
the FRSC in establishing and improving financial
reporting standards in the Philippines
ROLE OF THE PIC
 To issue implementation guidance on PFRS
 Shall deal with accounting issues of reasonably
widespread importance
PIC MEMBERS
 Consists of 15 representatives
 9 accounting firms
 1 Financial Executives Institute of the
Philippines (FINEX)
 1 Academe (with a designated alternate)
 1 Securities and Exchange Commission
(SEC)
 1 Bangko Sentral ng Pilipinas (BSP)
 1 Insurance Commission
 1 Board of Accountancy (BOA)
 Each member shall serve for a three-year term and
may be re-appointed.
BOARD OF ACCOUNTANCY (BOA) AND
ACCREDITED PROFESSIONAL ORGANIZATION
(APO)
MARCH 17, 1923
 The practice of accountancy in the Philippines was
first recognized
ACT NO. 3105
 An act regulating the practice of public accounting;
creating a board of accountancy; providing for
examination, for the granting of certificates and the
registration of certified public accountants; for the
suspension or revocation of certificates and for
other purposes
BOA MAIN FUNCTIONS
1. Prescribe admission requirements for CPA
candidates
2. Determine and prepare CPA Licensure
examinations
3. Continuous supervision and take measures in the
current accounting issues or updates
4. To take actions and decisions in administrative
cases concerning Certified Public Accountants
(CPAs)
5. Revoke or reissue certificates as deemed
necessary
CHANGES IN THE 1923 LAW
 Scope of the CPA examination
 The qualification to apply
 The rating required to pass
EXPANSION OF THE BOARD OF ACCOUNTANCY
1923
 3 members
 First BOA was composed of Chairman W.W.
Larkin, and Domingo Dikit and Felix
Tiongson, as members
1967
 6 members
 Chairman and 5 members—under RA 5166
(The Accountancy Act of 1967)
1975
 7 members
 Chairman and 6 members—under P.D 692
(The Revised Accountancy Law)
DEVELOPMENTS MADE BY BOA
1. Full computerization of the CPA licensure
examination
2. Upgrading of the quality of accounting education
3. Regulation of CPA firms and partnerships
4. Requirement of CPAs in civil service
5. Initiating the Expanding Horizon initiative in 2014,
with its Six Point Strategic Plan and over 110 on-
going projects
RA 9298
SECTION 5
 The BOA shall be composed of a Chairman and 6
members to be appointed by the President of the
Philippines from a list of 3 recommendees for each
position and ranked by the Commission from a list
of 5 nominees for each position submitted by the
accredited national professional organization of
certified public accountant.
 The Board shall elect a vice-chairman from among
each member for a term of 1 year
SECTION 6
 Qualifications of each member of the Board
 Must be a natural-born citizen and a resident
of the Philippines
 Duly registered CPA with at least 10 years of
work of experience in any scope of practice of
accountancy
 Good moral character and not convicted of
crimes involving moral turpitude
 Not directly connected with any school,
college, or university granting degrees that
may qualify graduates with such degrees for
admission to the Certified Public Accountant
examinations, or with Certified Public
Accountants Review School or Institute, nor
shall have any pecuniary interest in such
school, college, university or Certified Public
Accountant’s Review School or Institute
SECTION 7
 The Chairman and Members of the Board shall
hold office for a term of three (3) years. No person
who has served two (2) successive complete terms
shall be eligible for reappointment until the lapse of
one (1) year.
SECTION 9 (Powers, functions and responsibilities)
 To prescribed and adopt the rules and regulations
necessary for carrying out the provisions of this
Act;
 To supervise the registration, licensure and
practice of accountancy in the Philippines
 To administer oaths in connection with the
administration of this Act
 To issue, suspend, revoke, reinstate the
Certificate of Registration for the practice of
the accountancy profession
 To adopt an official seal of the Board
 To prescribe and/or adopt a Code of Ethics for
the practice of accountancy
 To monitor the conditions affecting the
practice of accountancy and adopt such
measures, including promulgation of
accounting and auditing standards, rules and
 To conduct an oversight into the quality of
audits of financial statements though a review
of the quality control measures instituted by
auditors in order to ensure compliance with
the accounting and auditing standards and
practices
 To investigate violations of the Act and the
IRR
 To make such investigations as it deems
necessary to determine whether any person
has violated any provision of the Act, any
accounting and auditing standard or rules duly
promulgated by the Board as part of the rules
governing the practice of accountancy
 To issue a cease or desist order to any
person, associations, partnership or
corporation engaged in violation of any
provision of this Act, any accounting or
auditing standards or rules of duly
promulgated by the Board as part of the rules
governing the practice of accountancy in the
Philippines
 To punish for contempt of the Board, both
direct and indirect, in accordance with the
pertinent provision of and penalties prescribed
by the Rules of Court
 To prepare, adopt, issue or amend the syllabi
of the subjects for examinations in
consultation with the academe, determine and
prepare questions for the licensure
examination which shall strictly be within the
scope of the syllabi of the subjects for
examinations as well as administer, correct
and release the result of the licensure
examinations
 To ensure the coordination with the
Commission of the Higher Education (CHED)
or other authorized government offices that all
 higher educational instruction and offering of
accountancy comply with the policies,
standards and requirements of the course
prescribed by the CHED or other authorized
government offices in the areas of curriculum,
faculty, library and facilities; and
 To exercise such other powers as may be
provided by law as well as those which may
be implied from, or which are necessary or
incidental to the carrying out of, the express
powers granted to the Board to achieve the
objectives and purposes of this Act.
SECTION 11 (Suspension/remove of any member)
 Neglect of Duty or incompetence
 Violation or tolerance of any violation of this
Act and its implementation rules and
regulations or the Certified Public
Accountant's Code of Ethics and the
technical and professional standards of
practice for certified public accountant
 Final judgment of crimes involving moral
turpitude; and
 Manipulation or rigging of the certified public
accountant’s licensure examination results,
disclosure of secret and confidential
information in the examination questions
prior to the conduct of the said examination
or tampering of grades
ACCREDITED PROFESSIONAL ORGANIZATION
(APO)
 refers to the single national organization
endorsed by the Board and approved by the
Commission to represent a given profession
pursuant to the provision of the respective
professional regulatory laws
PHILIPPINE INSTITUTE OF CERTIFIED PUBLIC
ACCOUNTANTS (PICPA)
 is the accredited professional organization of
Certified Public Accountants in compliance
with Sec. 30 of RA 9298
 It was first founded on November 1929 by a
Group of illustrious pioneers in the
accounting profession
 The organization was first accredited under
the Philippine Regulation Commission (PRC)
on October 2, 1973, upon receiving the
certificate of Accreditation no. 6, which was
issued by then PRC Chairman Eric Nubla
 PICPA is an active member of the
International Federation of Accountants
(IFAC), the Confederation of ASIAN and
Pacific Accountants (CAPA), and the ASEAN
Federation of Accountants (AFA)
FUNCTIONS OF PICPA
1. To promote and maintain high professional
and ethical standards among accountants
2. To promote the science of accounting
3. To develop and improve accountancy
education
4. To encourage cordial relations among
accountants
5. To protect the Certificate of Certified Public
Accountant granted by the Republic of the
Philippines
SCOPE OF PRACTICE OF ACCOUNTANCY
PRACTICE OF PUBLIC ACCOUNTANCY
 shall constitute in a person, be it his/her
individual capacity, or as a partner or as a
staff member in an accounting or auditing
firm, holding out himself/herself as one
skilled in the knowledge, science and
practice of accounting, and as a qualified
person to render professional services as a
certified public accountant.
PRACTICE AND COMMERCE INDUSTRY
 shall constitute in a person involved in
decision making requiring professional
knowledge in the science of accounting, or
when such employment or position requires
that the holder thereof must be a certified
public accountant
PRACTICE IN EDUCATION/ACADEME
 shall constitute in a person in an
educational institution which involve
teaching of accounting, auditing,
management advisory services, finances,
business law, taxation and other technically
related subjects: Provided that members of
the integrated Bar of the Philippines maybe
allowed to teach business law and taxation
subjects
PRACTICE IN GOVERNMENT
 shall constitute in a person who holds or is
appointed to, a position in an accounting
professional group in government or in a
government-owned and/or controlled
corporation including those performing
proprietary functions, where decision
making requires professional knowledge in
the science in accounting, or where a civil
service eligibility as a certified public
accountant is a prerequisite
4 SECTORS OF PICPA
GOVERNMENT ASSOCIATION OF CERTIFIED
PUBLIC ACCOUNTANT (GACPA)
 It is the first sectoral organization of CPAs in
the country established in 1972.
 The members of this association are
composed of CPA’s who are working under
government agencies.
 It is registered under the SEC
Purposes of GACPA:
a. To promote and maintain high professional
standing, among CPAs in government
service
b. To develop and improve the accounting,
auditing, internal auditing, budgeting, fiscal
administration, and management education
and practices in government offices
c. To foster cordial, harmonious and fruitful
relationships among its members
d. To continually maintain high ideals of
competence, ethical conduct, integrity and
civic consciousness
e. To participate in matters involving public
issues affecting the profession
f. To assist the members in their desire for
growth and help improve their working status
and welfare
g. To elevate the standards of accounting
education
 h. To protect and enhance the integrity of the NATIONAL ASSOCIATION OF CERTIFIED
certificate of registration of Certified Public PUBLIC ACCOUNTANTS IN EDUCATION
Accountants (NACPAE)
i. To provide mutual benefits to members in  The NACPAE is the sectoral organization
good standing representing the Certified Public
Accountants devoted to nurturing future
Membership Qualifications in GACPA: CPAs through passionately teaching
 Membership is open to Certified Public accounting subjects.
Accountants who are employed in every  The association provide the needs of
branch, agency subdivision and accounting teachers, promote their cause,
instrumentality of the government including advance their purpose, and advocate a
every government-owned or controlled better quality of life for them and a better
corporation quality of accounting education for the
 A minimum amount of Two Thousand aspiring CPAs and to uphold
Pesos (P2,000.00) shall be collected as professionalism inside and outside the
application fee which shall be sent together classroom.
with the duly accomplished application form
Membership Qualification in NACPAE:
ASSOCIATION OF CERTIFIED PUBLIC  Membership to NACPAE is renewed and
ACCOUNTANTS IN COMMERCE AND INDUSTRY updated every fiscal year starting July.
(ACPACI)  Annual membership fee is P600
 It is the sectoral organization representing EFFECTIVE July 9, 2021.
the Certified Public Accountants working
under various private industries or
corporations
 CPA’s who work as Comptrollers, Finance
Officers, Top Executives and other positions
may venture in Commerce & Industry

Purposes of ACPACI:
a. Promote advancement of the accounting
profession in the field of Commerce and
Industry through research, seminars,
discussions and dynamic exchange of
knowledge amongst its members
b. Assist members in addressing common
problems in accounting, information
systems, business finance, administration
and management
c. Promote high professionalism and
adherence to established ethical standards
in the performance of services and
responsibilities
d. Maintain effective liaison with the members
of other sectoral organizations
e. Assist and cooperate with the Board of
Accountancy in the attainment of its
objectives

Membership Qualifications in ACPACI:

 There are two (2) ways to apply for ACPACI
membership--- via online or through manual
application.  In both cases, you need to pay
the annual membership fee of P1,500

ASSOCIATION OF CERTIFIED PUBLIC

ACCOUNTANTS IN PUBLIC PRACTICE
(ACPAPP)
 sectoral organization representing the
Certified Public Accountants working in
his/her individual capacity as a partner or as
a staff member in an accounting or audit
firm; or is working as a sole practitioner
rendering services related to practice of
accounting to its clients on a fee basis or
otherwise
 The ACPAPP Foundation aims to have
competent Filipino CPAs in public practice
who are committed to provide, with integrity,
services that meet the expectations of
clients and stakeholders