CFAS them at the time of their acquisition.

IDENTIFICATION HISTORICAL COST

1. The standard-setting body who 9. Refers to the ability of the business to

issues the International Financial raise cash to meet unexpected cash
Reporting Standards requirements.

INTERNATIONAL ACCOUNTING STANDARDS LIQUIDITY

BOARD (IASB)
10. Those responsible for the
2. The standard-setting organization who issues the preparation and presentation of
financial statements.
U.S. GAAP

FINANCIAL ACCOUNTING STANDARDS BOARD REPORTING ENTITY

(FASB)
11. The standard that sets out the requirements
3. The process of identifying, for the presentation of the cash flow statement and
measuring, and communicating economic related disclosures
information to permit informed judgment
and decision by users of the information. INTERNATIONAL ACCOUNTING
STANDARD 7
ACCOUNTING
12. Portray the financial effects of transactions
4. This was created to issue and other events by grouping them into broad
implementing guidelines on PFRS. classes according to their economic
characteristics.
PHILIPPINE INTERPRETATION COMMITTEE
(PIC) FINANCIAL STATEMENTS

5. The amount of time that is expected to 13. Result if an asset is sold more than book
value.
elapse until an asset is realized or otherwise
converted into cash
GAIN / GAIN ON

OPERATING CYCLE/NORMAL OPERATING

14. One of its recognition criteria is that it
CYCLE
is probable that the future economic events
will flow to the enterprise.
6. The financial report that shows the
reporting entity’s economic resources and claims
ASSET
STATEMENT OF FINANCIAL POSITION
15. Under this concept a profit is earned
only if the physical productive capacity (or
7. The financial report that shows the
operating capability) of the entity (or the
changes due to events and transactions other
resources or funds needed to achieve that
than financial performance such as the issue of
capacity) at the end of the period exceeds the
equity instruments and distributions of cash or
physical productive capacity at the beginning of
other assets to shareholders
the period, after excluding any distributions to,
and contributions from, owners during the
STATEMENT OF CHANGES IN EQUITY period.

8. This is used when assets are recorded at

the amount of cash or cash equivalents or the
fair value of the consideration given to acquire
PHYSICAL CAPITAL MAINTENANCE 9.
are decreases in economic benefits
1. provide financial reporting information to a during the accounting period in the form
wide variety of users. of outflows or depletions of assets or
incurrence of liabilities that result in
GENERAL-PURPOSE FINANCIAL STATEMENTS decreases in equity other than those
relating to distributions to equity
2. As part of the objective of general-purpose participants.
financial reporting, an is adopted.
This means that companies are viewed as
*Income- encompasses both revenue and gain inflow of
separate and distinct from their owners. economic resources.
Revenue + gain = Income
Revenue- came from normal course of business.
ENTITY PERSPECTIVE Gain- came from incidental or peripheral transaction, not
normal course of business.

3. Accounting standards set out the recognition,

DISPOSAL / GAIN ON SALE
10. The conceptual framework specifically
, presentation and
mentions one underlying assumption, namely,
requirements of transactions and events that
are important in financial statements.
GOING CONCERN ASSUMPTION
MEASUREMENT, DISCLOSURE
11. The four sectors of accountancy under PICPA are:
4. The creation of FRSC in 2004 replaced the
PUBLIC PRACTICE, COMMERCE AND
. INDUSTRY, EDUCATION AND
GOVERNME NT
ACCOUNTING STANDARDS COUNCIL (ASC)

12. One constraint on useful financial reporting is that

5. The objective of the is to establish
costs should be justified by the of the reported
generally accepted accounting principles
financial information.
in the Philippines.

BENEFITS
FINANCIAL REPORTING STANDARDS COUNCIL
(FRSC)
Assets that are carried at the amount of cash or size
6. sets out the concepts that of an item and its effect on decisions
underlie the preparation and presentation of
financial statements for external users. 13.

CONCEPTUAL FRAMEWORK 14.

7. If there are any conflict in the framework

and IFRS, the___prevails.

INTERNATIONAL FINANCIAL REPORTING

STANDARDS (IFRS)

8.
is a resource controlled by the enterprise as a
result of past events and from which future
economic events are expected to flow to the
enterprise.

ASSET