ACCOUNTING

Which statement is correct?

• The Board of Accountancy has the authority to establish the accounting framework to be used by companies under its jurisdiction.

• The Financial Reporting and Standards Council is required to have a chairman who had been or presently a senior practitioner in public accountancy.

• The Insurance Commission is represented in the Auditing and Assurance Standards Council.

• The Education Technical council was created to assist the Board of Accountancy in carrying out its power and function to implement the continuing professional education program.

Which statement is correct?

• The Bureau of Internal Revenue is represented in the AASC.

• The Insurance Commission is represented in the Philippine Interpretations Committee.

• The chairman of the FSRSC should have been or presently a senior practitioner in public accountancy.

• Bicol is a PICPA Geographical Area.

The following statements relate to IFRS and the IASB:

I. Use of a single, trusted accounting language lowers the cost of capital.
II. Members of the IASB are appointed initially for a term of five years.
III. The ISSB is intended to replace the IASB.
IV. IFRS is considered to be ‘principles-based’ and less detailed than U.S. GAAP.

• Only one statement is true.

• Only two statements are true.

• Only one statement is false.

• All the statements are true.

Which of the following statements reflects one of the benefits of adoption of IFRS standards by different countries?

• Earnings management is eliminated.

• Volatility of earnings calculated using IFRS is zero.

• Cost of capital is lower for firms.

• There are no economic consequences when firms switch to IFRS from existing GAAP.

Which of the following statements is/are true?

I. The IFRS Interpretations Committee is a forum for the IASB to consult with the outside world.
II. The IFRS Foundation produces IFRSs. The IFRS Foundation is overseen by the IASB.
III. One of the objectives of the IFRS Foundation is to bring about convergence of national accounting standards and IFRSs.

• I and II only

• I and III only

• III only

• None

Which statement is correct regarding PFRSs?

• Standards approved by the FSRSC include paragraphs in bold type and plain type, the latter having less authority.

• PFRSs apply six months from the date of publication in the official gazette.

• PFRSs may set out such requirements for transactions and events that arise mainly in specific industries.

• Implementation guidance released by the PIC and approved by the FSRSC is less authoritative than the PFRS to which it relates.

Which of the following is not a PICPA Region?

• 
  Metro Manila

• Southern Tagalog

• Northern Mindanao

• Southern Visayas

The process of establishing financial accounting standards

• Is a democratic process in that a majority of practicing accountants must agree with a standard before it becomes implemented.

• Is a legislative process based on rules promulgated by government agencies.

• Is based solely on economic analysis of the effects each standard will have if it is implemented.

• Is a social process which incorporates political actions of various interested user groups as well as professional research and logic.

Due process for projects of FSRSC normally includes the following, except

• Consideration of pronouncement of the IASB.

• Formation of a task force, when deemed necessary, to give advice to the FSRSC.

• Issuing for comment an exposure draft approved by at least eight members of the Council; comment period will be at least sixty days.

• Approval of a standard or an interpretation by all of the Council members.

The following statements relate to FSRSC:

I. Composed of fifteen members with a chairman.
II. Members serve for a term of three years.
III. It is under the supervision and administrative control of the PRC.
IV. Created to help meet the demand of international investors with global investment portfolios for high quality, transparent, reliable and comparable reporting by companies on climate and other environmental, social and governance matters.

• Only one statement is true.

• Only two statements are true.

• Only one statement is false.

• All the statements are false.