INTRODUCTION TO ACCOUNTANCY PROFESSION & PREFACE TO

PFRS
The Accountancy Profession

 Definition of Accounting

(a) Accounting Standards Council (ASC)

(b) Committee on Accounting Terminology of the American Institute of Certified Public Accountants (CAT of AICPA)

(c) American Accounting Association (AAA)

 Under the definition given by AAA, it stated three (3) important aspects or components of the accounting process.

 Types of events and transactions

 The Accountancy Law

 The Accountancy Fields

Under RA 9298, the practice of accountancy is sub-classified into four (4) sectors:

 Preface to PFRS
The Philippine Financial Reporting Standards (PFRSs)
 What are IFRS! PFRS! GAAP?
 Scope of PFRS
 Structure of PFRS

STANDARD SETTING PROCESS (DUE PROCESS) (5)

STEP 1
STEP 2
STEP 3
STEP 4
STEP 5

Standard Setting Body

TABLE 1.1 (FRSC vs. IASB)
FRSC IASB
Setting
Successor
Pronouncement
Creator

TABLE 1.2 (FRSC vs ASC)

FRSC ASC

Creator

Pronouncement

Composition

COA

BOA

SEC

BSP

BIR

INSURANCE COMMISSION

MAJOR ORG OF FS PREPARERS & USERS

(FINEX)

PICPA (APO)

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