|THE ACCOUNTANCY PROFESSION|
ASC – a service activity. (Overall objective)
CAT AICPA – art of recording, classifying, summarizing – 3 important activities.
AAA SBAT – process of identifying, measuring and communicating – includes
PH Accountancy Act of 2004 – RA No. 9298 – regulates the practice of accountancy.
BOA – authorized by law to promulgate rules and regulations affecting the practice.
Certification of Accreditation – issued to CPA – subj to BOA & PRC – required to
acquire minimum of 3 year meaningful experience in any areas including taxation.
3 main areas: 1. Public Accounting.
(Auditing, Taxation & MAS)
2. Private Accounting.
(Accounting Staff, Chief
3. Government Accounting.
(BIR, COA, BDM,
SEC & NBI)
Accountant, Internal Auditor,
Controller)
Continuing Professional Education (mandatory) – promulgated by BOA.
– Approval by PRC.
Renewal of CPA License & Accreditation of a CPA for 3 years.
Total CPE cu required: 120 units for 3 years.
Minimum per year: 15 cu.
Excess in 1 year: carried over to subsequent years for 3 years only.
Except: cu earned for masteral and doctoral degree.
Exceptions: 65 years – permanently exempted from CPE req. (renewal of CPA license)
Working abroad – temporarily exempted from CPE req. (been out for at least 2
years immediately prior to the date of renewal)
Accounting is constructive in nature VS Auditing analytical in nature
Accounting is conceptual and why VS Bookeeping is procedural and how.
Financial Accounting focuses on general purpose reports. Intended for internal and
external users. Managerial Accounting is for internal users only.
Comparability and Uniformity – result of high-quality accounting standards.
ASC now FRSC – GAAP
IC now PIC
Establish & improve accounting standards.
PAS & PFRS
PFRS = IFRS
PAS = IAS
PIC = IFRIC & SIC
IASC now IASB – CFFR
IAS
IFRS – global phenomenon,
bring about greater transparency
& degree of comparability.
Achieve uniformity in accounting principles
Composed of 15 officials.
1 Chairman – who had been or
Presently a senior accounting
Practitioner.
(any member of ASC shall not be
disqualified from being appointed to
the FRSC)
1 – BOA, COA, BIR, SEC, BSP & FINEX
2 (each sectors of accounting practice)
– Public practice, Commerce &
Industry, Academe and Government.