Development of Financial Reporting Framework and Standard-Setting Bodies
Financial Accounting and Reporting
Standard – Setting Bodies
IASB
FASB
Based on London, UK
Based on Norwalk Connecticut, USA
Into existence on April 1, 2001
Into existence in 1973
Successor of International Accounting
Standards Committee (IASC)
Replaces Accounting Principles
Board (APB) and the Committee on
Accounting Procedure (CAP)
Deals with the development of International
Financial Reporting Standards (IFRS) and
promoting the application of
these standards
Caters to the development of
US Generally Accepted Accounting
Principles (GAAP) in the interest
of the public
16 members
5 members
Development of Financial Reporting Framework and Standard-Setting Bodies
Financial Accounting and Reporting
Standard – Setting Bodies
In September 2002,
IASB
FASB
Signed a Memorandum of Understanding between the FASB, and IASB.
The Agreement was a significant step towards the US formalizing
its commitment to the convergence of US GAAP and International
Financial Reporting Standards.
NORWALK AGREEMENT
Development of Financial Reporting Framework and Standard-Setting Bodies
Financial Accounting and Reporting
Standard – Setting Bodies
Objectives of IASB:
• to develop a single set of high quality, understandable, enforceable and
globally accepted financial reporting standards based on clearly
articulated principles.
• to promote the use and rigorous application of those standards;
• to take account of, as appropriate, the needs of a range of sizes and types
of entities in diverse economic settings;
• to promote and facilitate the adoption of IFRSs, being the standards and
interpretations issued by the IASB, through the convergence of national
accounting standards and IFRSs.
Development of Financial Reporting Framework and Standard-Setting Bodies
Financial Accounting and Reporting
Standard – Setting Bodies
Philippine Financial Reporting Standard Council (PFRSC)
FRSC
Senior Practitioner
2 Public Practice
2 Private Practice
2 Academe
2 Government
• established by the Professional Regulatory Commission under the
Implementing Rules and Regulations of the Philippine Accountancy of Act
of 2004 to assist the Board of Accountancy in carrying out its power and
function to promulgate accounting standards in the Philippines.
• The FRSC’s main function is to establish generally accepted accounting
principles in the Philippines.
• successor of the Accounting Standards Council (ASC)
• consists of a Chairman and 14 members who are appointed by the BOA
and include representatives from the following:
• 1 Board of Accountancy (BOA),
• 1 Securities and Exchange Commission (SEC),
• 1 Bangko Sentral ng Pilipinas (BSP),
• 1 Bureau of Internal Revenue (BIR),
• 1 Financial Executives Institute of the Philippines (FINEX),
• 1 Commission on Audit (COA)
• 8 Philippine Institute of Certified Public Accountants (PICPA).