Development of Financial Reporting Framework, Standard-Setting Bodies and

Regulation of the Accountancy Profession

History, Development, and Functions of the Standard-Setting Bodies

1. IASB
a. International Accounting Standards Board (IASB)
b. Independent, private-sector body that develops and approves International
Financial Reporting Standard (IFRS)
c. Formed in 2001 to replace the International Accounting Standards Committee
(IASC)
d. 14 members
e. IASB has complete responsibility for all financial reporting-related technical
matters of the IFRS Foundation including:
i. Full discretion in developing and pursuing its technical agenda, subject to
certain consultation requirements with the Trustees and the public
ii. The preparation and issuing of IFRSs (other than Interpretations) and
exposure drafts following the due process stipulated in the Constitution
iii. The approval and issuing of interpretations developed by the IFRS
Interpretations Committee
f. https://www.iasplus.com/en/resources/ifrsf/iasb-ifrs-ic/iasb
2. IFRIC and SIC
a. IFRS Interpretations Committee (IFRIC)
b. Previously the International Financial Reporting Interpretations Committee,
IFRIC, and are issued after approval by the International Accounting Standards
Board IASB)
c. Established in March 2002 by the Trustees of the International Accounting
Standards Committee Foundation
d. Role is to provide timely guidance on newly identified financial reporting issues
not specifically addressed in International Financial Reporting Standards (IFRSs)
or issues where unsatisfactory or conflicting interpretations have developed, or
seem likely to develop
e. Promotes the rigorous and uniform application of the IFRSs
f. http://www.actuaries.org/CTTEES_INSACC/Documents/IFRIC_Review.pdf
g. Standard Interpretations Committee (SIC) is currently known as IFRS
Interpretations Committee (IFRIC)
3. FRSC
a. The Financial Reporting Standards Council (FRSC) was established by
the Professional Regulatory Commission under the Implementing Rules and
Regulations of the Philippine Accountancy of Act of 2004 to assist the Board of
Accountancy in carrying out its power and function to promulgate accounting
standards in the Philippines.
b. FRSC’s main function is to establish generally accepted accounting principles in
the Philippines.
 c. The FRSC is the successor of the Accounting Standards Council (ASC).
d. The FRSC consists of who a Chairman and members  are appointed by the BOA
and include representatives from the Board of Accountancy (BOA), Securities
and Exchange Commission (SEC), Bangko Sentral ng Pilipinas (BSP), Financial
Executives Institute of the Philippines (FINEX), Commission on Audit (COA)
and Philippine Institute of Certified Public Accountants (PICPA).
e. https://picpa.com.ph/frsc/
4. PIC
a. The FRSC formed the Philippine Interpretations Committee (PIC) in August 2006
to assist the FRSC in establishing and improving financial reporting standards in
the Philippines.
b. The role of the PIC is principally to issue implementation guidance on PFRSs.
c. The PIC members are appointed by the FRSC and include accountants in public
practice, the academe and regulatory bodies and users of financial statements.
d. The PIC replaced the Interpretations Committee created by the ASC in 2000.
e. https://picpa.com.ph/frsc/