Basic Professional Values and Ethics
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Integrity – an accountant should be straightforward and honest.
Objectivity – should be fair and not allow prejudice or bias, conflict of interest or influence
of others to override objectivity.
Professional Competence and Due Care – should perform services with due care,
competence and diligence.
Confidentiality – should respect the confidentiality of information acquired during the
course of performing professional services and should not use or disclose any such
information without proper and specific authority unless there is a legal or professional
right or duty to disclose.
Professional Behavior – should act in a manner consistent with the good reputation of the
profession and refrain from any conduct which might bring discredit to the profession.
Technical Standards – should carry out professional services in accordance with the
relevant technical and professional standards.
Republic Act 9298
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Philippine Accountancy Act of 2004
MAY 13, 2004
Scope of Practice
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d.
Practice of public accountancy
Practice in commerce and industry
Practice in education/academe
Practice in Government
Other Non-assurance Services
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Management Advisory Services
o Providing advice and assistance concerning an entity’s organization, human
resources, finances, operations, IT systems, or other activities.
o Helping public companies implement effective internal control over financial
reporting in preparation for an integrated audit to performed by a different
public accounting firm.
Management Accounting
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Reports to managers within the organization for:
o Planning
o Directing and motivating
o Controlling
o Performance Evaluation
Emphasis is on future- oriented data needed in decision-making
Relevance is emphasized
Timeliness of information is required
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Detailed segment reports about departments, products, customers, and employees are
prepared.
Need not follow IFRS
Not mandatory
Financial Accounting
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Reports to various interested parties (internal and external)
o Owners
o Lenders
o Tax authorities
o Regulators
o Managers – internal
Emphasis is on summarize of financial consequences of past activities
Objectivity and verifiability of data are emphasized
Precision of information is required
Only summarized data for the entire organization are prepared.
Must follow IFRS
Mandatory for external reports.