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 Replaces Accounting Principles

Standards Committee (IASC) Board (APB) and the Committee on
Accounting Procedure (CAP)

Deals with the development of International Caters to the development of

Financial Reporting Standards (IFRS) and US Generally Accepted Accounting
promoting the application of Principles (GAAP) in the interest
these standards 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 • 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
Senior Practitioner
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),
2 Public Practice • 1 Securities and Exchange Commission (SEC),
2 Private Practice • 1 Bangko Sentral ng Pilipinas (BSP),
2 Academe • 1 Bureau of Internal Revenue (BIR),
2 Government • 1 Financial Executives Institute of the Philippines (FINEX),
• 1 Commission on Audit (COA)
• 8 Philippine Institute of Certified Public Accountants (PICPA).