Financial statements and other financial reporting to

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financial statements and other financial reporting to help investors and other participants in the various capital markets of the world and other users of the information to make economic decisions. 2. To promote the use and rigorous application of those standards. 3. In fulfilling the objectives associated with 1 and 2, to take account of, as appropriate, the needs of a range of sizes and types of entities in diverse economic settings. 4. To promote and facilitate adoption of IFRS through convergence of national accounting standards and IFRS. At its first meeting in 2001, IASB adopted all outstanding IAS issued by the IASC as its own Standards. Those IAS continue to be in force to the extent that they are not amended or withdrawn by the IASB. New Standards issued by IASB are known as IFRS. When referring collectively to IFRS, that term includes both IAS and IFRS. 1.5 Standard-setting Due Process As part of its due process in developing new or revised Standards, the Board publishes an Exposure Draft of the proposed Standard for public comment in order to obtain the views of all interested parties. It also publishes a “Basis for Conclusions” to its Exposure Drafts and Standards to explain how it reached its conclusions and to give background information. When one or more Board members disagree with a Standard, the Board publishes those dissenting opinions with the Standard. To obtain advice on major projects, the Board often forms advisory committees or other specialist groups and may also hold public hearings and conduct field tests on proposed Standards.
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1.6 Philippine Financial Reporting Standards (PFRS) The Generally Accepted Accounting Principles (GAAP) in the Philippines is represented by the Philippine Financial Reporting Standards (PFRSs). PFRSs are Standards and Interpretations adopted by the Financial Reporting Standards Council (FRSC) . They comprise: a. Philippine Financial Reporting Standards (PFRS) b. Philippine Accounting Standards (PAS) c. Interpretations PFRSs are accompanied by guidance to assist entities in applying their requirements. Guidance that is an integral part of the PFRSs is mandatory while guidance that is not an integral part of the PFRSs does not contain requirements for financial statements. In the absence of a Standard or Interpretation that specifically applies to a transaction, management must use its judgment in developing and applying an accounting policy that results in information that is relevant and reliable: a. Requirements and guidance in PFRSs dealing with similar and related issues b. Conceptual Framework c. Most recent pronouncements of other standard-setting bodies d. Other accounting literature and accepted industry practices 1.7 Accounting Standard Setting Bodies and Other Relevant Organizations 1. Financial Reporting Standards Council (FRSC) - formerly known as Accounting Standards Council (ASC), the official accounting standard setting body in the Philippines created under RA 9298 by the PRC upon recommendation of BOA -
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  • Fall '15
  • Financial Accounting, International Financial Reporting Standards, international Accounting standards Board, Financial Reporting Standards

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