Intermediate Accounting 1 A Research paper on Framework on Presentation of Financial Statements and its role to BSA students and accountants ABELEDA, Pauline Ellaine J. BURBOS, Marielle Mae JAVIER, Kristel Ann Joy M. MALLONGA, Jaydelynn A. MIRANDA, Alyzza Flor S. NICDAO, Allana Joyce L. BSA18-1A According to the Merriam-Webster Dictionary, a framework is a noun which has a definition of a basic conceptional structure (as of ideas) or a skeletal, openwork, or structural frame. Framework in every area of expertise or study just like in Accounting varies in each other. Talking about framework, specifically for accounting dealing with the preparation or presentation of financial statements, it has the Conceptual Framework for Financial reporting which is a complete, comprehensive and single document promulgated by the International Accounting Standards Board (IASB). The Conceptual Framework is a summary of the terms and concepts that underlie the preparation and presentation of financial statements for external users. In other words, it describes the concepts for general purpose financial reporting. Also, it is an attempt to provide an overall theoretical foundation for accounting. The Conceptual Framework is intended to guide standard-setters, preparers, and users of financial information in the preparation and presentation of financial statements. (Valix, Peralta, & Valix, 2019). As for the framework on the preparation of financial statements, according to the website, IASPlus from Deloitte, IAS 1 Presentation of Financial Statements sets out the overall requirements for financial statements, including how they should be structured, the minimum requirements for their content and overriding concepts such as going concern, the accrual basis of accounting and the current/non-current distinction. The standard requires a complete set of financial statements to comprise a statement of financial position, a statement of profit or loss and other comprehensive income, a statement of changes in equity and a statement of cash flows. In PAS 1 or Philippine Accounting Standard 1, for the frequency of reporting, the financial statements shall be presented at least annually. This will provide information about the financial position, financial performance and cash flows of an entity that is useful to a wide range of users in making economic decisions. (Valix, Peralta, & Valix, 2019). Just like the IAS 1, the PAS 1 shall be applied to all general-purpose financial statements prepared and presented in accordance with International Financial Reporting Standards (IFRSs). General purpose financial statements are those that are intended to meet the needs of users who are not in a position to demand reports tailored to meet their particular information needs. The Bachelor of Science in Accountancy (BSA) program is composed of subjects in accounting (financial, public, managerial), audit, administration, business laws, and taxation. Its primary focus is not limited to business subjects, but to other fields as well, such as banking and finance, government, social services, education, and more. The BSA students are the future accountants that will serve in the industry. They are the ones who will study the frameworks and standards of accounting. According to the bizfluent, Accounting standards provide day-to-day guidance to accountants to ensure the steady operation of the business. Thus, it will serve as guidance to the BSA students as well because after all, they are the accountants on the process. In addition, every person needs to systematically monitor or keep track of his personal finances – both his resources and obligations. Financial information is needed by individuals specifically accounting students. Accounting, which is a major course of the BSA students, involves the systematic recognition, measurement, reporting, and interpretation of data that are related to the financial activities of a nature or artificial person. Processing information in such a way that it will be useful to the user is the primary purpose of accounting. The accountants and accounting students use financial statements as a mean to communicate the status of an entity. Thus, Accounting is often called the language of business. Studying International Accounting Standards and Philippine Accounting Standards (IAS/PAS) will benefit them when they proceed in their studies and support them in finding decent jobs in the future. In other words, framework on presentation of financial statements is crucial to the development of the students’ future career because it will serve as a fundamental knowledge. It is recommended for the accounting students or accountants for it will accompany them in their chosen career path. Also, understanding the framework will bring consistency to accounting language, practices and statements, and will help them make educated financial analysis and decisions.