No. 125 Brgy.

San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@gmail.com

FINANCIAL ACCOUNTING AND REPORTING November 25, 2023

Reviewer: Brian Christian S. Villaluz, CPA, MBA

DEVELOPMENT OF FINANCIAL REPORTING FRAMEWORK/STANDARD-SETTING

BODIES/REGULATION OF THE ACCOUNTANCY PROFESSION

1. What is the chronological order in the evaluation of a typical accounting standard?

A. Exposure draft → Standard → Discussion paper
B. Exposure draft → Discussion paper → Standard
C. Standard → Discussion paper → Exposure draft
D. Discussion paper → Exposure draft → Standard

2. The IASB was formed:

A. To enforce IFRS in foreign countries.
B. To develop a single set of high quality IFRS.
C. To establish accounting standards for multinational entities.
D. To develop accounting standards for countries that do not have their own standard-
setting bodies.

3. The IASB publishes standards called:

A. International Accounting Standards
B. Financial Reporting Standards
C. International Financial Reporting Standards
D. Statement of Financial Accounting Standards

4. The accounting standards issued by the International Accounting Standards Committee

(IASC) are called:
A. International Financial Reporting Standards (IFRS)
B. International Accounting Standards (IAS)
C. Philippine Financial Reporting Standards (PFRS)
D. Philippine Accounting Standards (PAS)

5. Which of the following statements is incorrect about the IASB and IASC?
A. The IASB was formed to replace the IASC.
B. The accounting standards issued by the IASB were adopted by the IASC.
C. The accounting standards issued by the IASC were adopted by the IASB.
D. None of the foregoing.

6. IFRIC Interpretations issued by IASB:

A. Are considered authoritative and must be followed.
B. Cover newly identified financial reporting issues not specifically addressed.
C. Cover issues with conflicting interpretations.
D. All of these are true about IFRIC Interpretations.

7. Which of the following statements is incorrect about the IFRSIC (or IFRIC)?
A. IFRSIC is the current interpretative body of the IASB.
B. SIC was reconstituted as IFRIC.
C. The interpretations issued by IFRIC become part of IFRS once they are approved by
the IASB.
D. All these statements are correct about the IFRSIC (or IFRIC).

8. What is the accounting standard-setting body in the Philippines at the present time?
A. Accounting Standards Council
B. Auditing and Assurance Standards Council
C. Financial Reporting Standards Council
D. Philippine Accounting Standards Board

1|P a g e RSORIANO/BVILLALUZ/JBAUTISTA/JABIERA
 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@gmail.com

9. The Philippine accounting standard-setting body was established by the:

A. Board of Accountancy (BOA).
B. Professional Regulation Commission (PRC).
C. International Accounting Standards Board (IASB).
D. President of the Philippines.

10. Which of the following is correct about Financial Reporting Standards Council (FRSC)?
A. The FRSC replaces the Accounting Standards Council (ASC).
B. The FRSC’s main function is to establish generally accepted accounting principles in
the Philippines.
C. The FRSC was established to assist the Board of Accountancy in carrying out its
power and function in promulgating accounting standards in the Philippines.
D. All of these are correct about the FRSC.

11. Which of the following statements is/are true about the accounting standards issued by
the Financial Reporting Standards Council (FRSC)?
A. The accounting standards issued by the FRSC are called Philippine Accounting
Standards (PAS) and Philippine Financial Reporting Standards (PFRS).
B. The accounting standards issued by the FRSC constitute the highest hierarchy of
GAAP in the Philippines.
C. The accounting standards issued by the FRSC are based on the accounting standards
issued by the International Accounting Standards Board (IASB).
D. All of these are true about the accounting standards issued by the Financial Reporting
Standards Council (FRSC).

12. Philippine Interpretations Committee (PIC) was established by the:

A. Financial Reporting Standards Council (FRSC).
B. Professional Regulation Commission (PRC).
C. Board of Accountancy (BOA).
D. International Accounting Standards Board (IASB).

13. Which of the following is correct about the Philippine Interpretations Committee (PIC)?
A. The PIC was established to develop authoritative interpretations of existing PAS and
PFRS and provide guidance on financial reporting issues not specifically addressed in
PAS and PFRS.
B. A PIC Interpretation becomes part of PFRS once they are approved by the FRSC.
C. IFRIC and SIC are the international counterparts of PIC.
D. All of these are correct about the PIC.

14. PFRSs collectively include:

A. PFRS corresponding to IFRS
B. PAS corresponding to IAS
C. Philippine Interpretations corresponding to IFRIC and SIC Interpretations and
Interpretations developed by PIC.
D. All of these are included in PFRSs.

15. Which of the following statements are correct regarding the accounting standard-setting
bodies?
A. The IFRS Foundation created another standard setting-board, the International
Sustainability Standards Board (ISSB) that sets IFRS Sustainability Disclosure
Standards on how a company discloses information in the financial statements about
sustainability-related factors that could create or erode its enterprise value in the short,
medium, and long term.
B. The BOA renamed the Financial Reporting Standards Council (FRSC) to Financial
and Sustainability Reporting Standards Council (FSRSC).
C. The Philippine Sustainability Reporting Committee (PSRC) was created by the
Financial and Sustainability Reporting Standards Council (FSRSC) to provide
technical support to the FSRSC in the adoption and issuance of guidelines and
standards of sustainability reporting in the Philippines.
D. All of these are correct.

2|P a g e RSORIANO/BVILLALUZ/JBAUTISTA/JABIERA
 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@gmail.com

16. The law regulating the practice of accountancy in the Philippines is the ______________
also known as the ________________.
A. R.A. 9298; Philippine Accountancy Act of 2004
B. R.A. 9298; Philippine Accountancy Law of 2004
C. R.A. 9892; Philippine Accountancy Act of 2004
D. R.A. 9892; Philippine Accountancy Law of 2004

17. It is the body authorized by law to promulgate rules and regulations affecting the practice
of the accountancy profession in the Philippines.
A. Board of Accountancy
B. Professional Regulation Commission
C. Philippine Institute of Certified Public Accountants
D. Financial Reporting Standards Council

18. The accredited professional organization of CPAs in the Philippines is the:

A. Financial Reporting Standards Council.
B. Philippine Institute of Certified Public Accountants.
C. Board of Accountancy.
D. Philippine Professional Organization of Certified Public Accountants.

19. A CPA can practice his or her profession in the following areas, except:
A. Public accountancy.
B. Commerce and industry.
C. Academe.
D. Government.
E. All of these are areas where a CPA can practice his or her profession.

20. A certificate of accreditation shall be issued to CPAs in public practice only when the CPA
has acquired a minimum of how many years of meaningful experience in any of the areas
of public practice?
A. 1 year
B. 2 years
C. 3 years
D. 5 years

21. The certificate of registration issued by the PRC to practice public accountancy is valid for
how many years?
A. 2 years
B. 3 years
C. 5 years
D. 6 years

22. How many CPD units are required for accreditation to practice the accountancy
profession?
A. 15 CPD units
B. 20 CPD units
C. 80 CPD units
D. 120 CPD units

23. How many CPD units are required for renewal of CPA license?
A. 15 CPD units
B. 20 CPD units
C. 80 CPD units
D. 120 CPD units

24. Renewal of CPA license takes place every how many years?
A. 1 year
B. 2 years
C. 3 years
D. 5 years

3|P a g e RSORIANO/BVILLALUZ/JBAUTISTA/JABIERA
 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@gmail.com

25. A CPA shall be permanently exempted from CPD requirements upon reaching the age of:
A. 60 years
B. 65 years
C. 70 years
D. In no case shall a CPA be permanently exempted from CPD requirements.

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