REVIEW MATERIAL 2023, ‘CONCEPTUAL FRAMEWORK AND ACCOUNTING STANDARDS Srlincreces tg aeget or decroare in liability that results in ineromes in oauity SAhOr 2 cise ‘The ctntement of cach flows ia generally claccified into operating, financing, and rvcoting aoe vies, What Giamelttnton is the receists fram cobew ot ioroparty bial. Gna eauiorment and Other productive assets ls under? ©. Operabng activins = investing actrtoe Wich accounting principle ie being observed when an gecountant charges te Expenses @ cost iat contributed to ravenite Curing a pene? 5 Estimates sotling price less estimates cost of comptenon ana estmated © Exumated Zomng Price plus estimates cost of completion and esumated This principte justifies the use of accruaia and deferrats: 2. Corporate Form 5. Consistency & Going Concern The financial statements that are prepared for the entity are separate and distinct 5 Going concer principta 2. Matching principle Economic entity assumption 3. Accounting parted assumption ‘The purpose of the International Financial Reporting Standards is to a. Issue enforceable standards which regulate the nnancial accounting ana b Devatop' 6 uniteen currency intiioh tha financial trananations 6 anda throughout the world would be measured. ¢ Promote uniiarm accounting standards among counties of the world. @. Arirate GecounUng disputes bemween Gudilors and internabonal entlles. iment poccuniineg fem ree of mech ig tient smniherainen reposting to, @. Management 5 Regulatory nodes @. Creditors and investors Many accountanta are employed in entities in various capacity aa accounting staff, chief accountant or contralier These accountants are said io be engaged in © Government secounting = To provide the information thel the managers of an economic entity need {contol its operation. 5 Te peovade indonesia? tie ciodiions flan eGcinaenas aciay linia Ueeipe deciding whather to make adawtonal loans to the enuty. To manaure the porindic income of the soanomic entity, S. To previge quantiative nancial informaton AOU an entity tat ts users 41 Financial aecounting is concarned with 5. Speciauzed teporis for ventory management anti Convel. Sts pee eps Seg ep ee ‘ofmarket position 12. His the body authorized by law to promulgate rules and reguiations affecting the 5. Philippine institute of Certibed Public Accountant ©. Financial Reporing Standards Counc26.8 complete Set of nancial statements includes all, except 5. Sistement of Changes in Eaulty 9. Emwronmental reports 27. Whtot ie the objective of Financial statermenta? abaity 2. Te provide information abou! the financial position, fhanciat performance, ste repens Samaria nlotintnipedinies exrvcediampen ihe il pyaar aren 28.Which ctatomont inciesies = going concern? 2. Management intends to iguidats the entity. 5: Mareterent fale nc euiste Eetercanve tus ss oecme te coatiitionn't sear 12 pan a eam rcicarhe sng ce 29.An smtty te permitted fo depart om a paticae stander Hf at conan are Eo Mien mondgement sonciescs that compliance with the standard would and & Vihon ine Gonceptual Framework for Financia! Reporting prohintis such G1 When the departure from the standard i necessary to achieve f 2 Sorters ies Win the, process of capltning for inctusion in the Gnancial staterens art Hern thet 2 Frecognmon © Clossityieg | ste 2. An tem no longer meets the Gennition of an asset or Wat 5. The entity loses conirol of the asset & The entity no longer hes a present cbiigation for the Mabiity. se 99. Which in(ara) Gortect concerhing the FRSC? my. “The FRSC replaces ine ASC as the stancard setting Rady in the Primppines Only statement 1 ss tue 5. Gniy statement 2 te tra 35. Statement 1- Compensation includes post-employment Henents on penait of a paren of the enmy in respect orehe ently, Statement 2! Gompenention idiidiée anciall anouilly comiibulion paldiby the ony 5, The discovery of fraud of errors that show financial statements were 6. Ail the following expendiures shall be expensed when incisrred. accept 2. Startup costs 5. Advertising and promotion costs ©. Business relocation or reorganization casts 6 Payment in advance of delivery goods or the rendering of services 37-8 patent is an example of which general category of intangible asset? 2. Technology-based © Artistic related 3, Contract-based ‘d. Bank overdrafts that can be offset.