Andres, Rebecca Paula F.

BSA 4 BLOCK 4

A152

How has the adoption of Philippine Accounting Standards

(PAS) 1 affected the financial reporting practices of Philippine companies?

Adoption of new accounting standards promotes the elimination of financial reporting

fraud as well as standardized and norms that are changing, altering, or being eliminated. It is a
drastic change aimed at improving financial reporting so that it is accurate, effective, efficient,
free of fraud, and widely accepted.

Discuss the key requirements of PAS 1 and their impact on the presentation of
financial statements, as well as the challenges faced by companies in complying
with these standards.

PAS 1 outlines the fundamental guidelines for presenting financial statements. Among
these are ensuring consistency in accounting practices, reporting major accounting judgments
and estimates, providing a true and fair representation of the company's financial status, and
providing comparative data. Compliance with these rules improves the dependability and
transparency of financial statements. Because of the complexities of the rules, businesses find it
difficult to comply with PAS. The regulations require detailed financial reporting, which can be
costly and time-consuming. Furthermore, it is difficult for businesses to find suitable employees
due to a scarcity of knowledgeable specialists who are familiar with the criteria. Accounting
standard changes and regulatory changes complicate matters even more for companies trying to
stay in compliance.