CFAS
Accounting is a service activity, its
function is to provide quantitative
information, primarily financial in
nature, about economic entities, that
is intended to be useful in making
economic decisions.
Accounting Standards Council
Accounting is the art of recording,
classifying and summarizing in a
significant manner and in terms of
money, transactions and events
which are in part at least of a financial
character and interpreting the results
thereof
American Institute of Certified Public Accountants
Accounting is the process of
identifying,
measuring
and
communicating
economic
information to permit informed
judgment and decision by users of
the information.
American Accounting Association
The accounting process is the recognition or
nonrecognition of business activities as “accountable”
events
Identifying
are emphasized and
recognized in accounting.
economic activities
involving the
entity only
Internal Transaction
resources are transformed into
products
Production
any sudden and
unanticipated loss from fire, flood,
earthquake
and
other
event
ordinarily termed as an act of God.
casualty loss
economic events involving one
entity and another entity.
External Transaction
accounting process assigns peso amounts to the
accountable economic transactions and events
Measuring
unit of measuring accountable economic transactions
philippine peso
process of preparing and distributing accounting
reports to potential users of accounting information.
communicating
universal language of business
accounting
process of systematically maintaining a record
of all economic business transactions after they have been identified and measured
recording
sorting or grouping of similar and interrelated economic transactions into their respective classes. It is accomplished by posting to the
ledger.
classifying
preparation of financial statements which include the statement of financial position, statement of financial performance, statement of
comprehensive income, statement of changes in equity, statement of cash flows and
notes to financial statements.
summarizing
law regulating the practice of accountancy in the Philippines.
Republic Act No. 9298
the body authorized by law to promulgate rules and regulations affecting the practice of the accountancy profession in
the Philippines.
Board of Accountacy
composed of individual practitioners, small accounting firms, and large multinational organizations that render independent and expert financial services to the public. It offer three kinds of services
Public Accounting
examination of financial statements by an independent certified public accountant
Auditing
service includes the preparation of annual income tax returns and determination of tax consequences of certain proposed business endeavors.
Taxation
used generally to refer to services to
clients on matters of accounting, finance,
management advisory services
maintaining the records, producing financial reports, preparing the budgets, and controlling and allocating the resources of the entity.
Private Accounting
highest accounting officer in an entity
controller
focuses on the custody and administration of public fund
government accounting
It raises and enhances the technical skill and
competence of the Certified Public Accountant
continuing professional development
the law mandating and strengthening the continuing professional development program for all regulated professions, including the accountancy profession.
Republict Act No. 10912
means which the information accumulated and processed in financial accounting is periodically communicated to users.
Financial Statement
PAS 1
presentation of financial statement
formal statement showing the three elements comprising financial position, namely assets, liabilities and equity.
statement of financial position
economic resources controlled by an entity as a result of past events.
assets
a present of obligation of an entity to transfer an economic resource as a result of past events
liability
is the residual interest in the assets of the entity after deducting all of its liabilities.
equity
this form sets for the three major sections in downward sequence of assets, liabilities and equity
report form
thr asset show on the left side and the liabilities and equity on the right side of the statement of financial statement
account form
an incom statement is a formal statement showing the financial performance of an entity for a given period of time.
statement of financial performance
it is the change in equity during a period resulting from transactions and other eventd, other than changes resulting from transactions with owners in term capacity as owners.
comprehensive income
the total of income less expenses, excluding the components of other comprehensive income.
profit or loss
comprises items of income and expenses including reclassification adjustment that are not recognized in profit or loss as rewuired or permitted by PFRS.
other comprehensive income
it provides narrative description or disaggregation of items presented in the fs in the info. about items that do not qualify for recognition.
notes to financial statement
PAS 7
statement of cash flows
provide information about cash
receipts and cash payment of an entity during a period.
statement of cash flows
comprises cash on hanf n demand deposits
cash
short-term highly liquid investment that are readily covertible to cash.
cash equivalents
privuded that investment normally qualifies as a cash equivalent only when it has a short maturity of three months or less from date of acquisition
PAS 7 PARAGRAPH 7
a basuc statement that shiws the movement in the elements or components of the shareholders' equity.
Statement of Changes in Equity
are the cashflows derived primarily from the principal revenue producing activities of an entity.
operating activities
are thr cashflows derived fron acquisition and disposal of long-tern assets and other investment not included in cash equivalent.
investing activities
are the cashflows derived from the equity capital and borrowings of the entity. Drawings - equity capital
financing activities
PAS 8
accounting policies, estimates and errors
are the specific principles, bases, conventions, rules and practices by an entity in preparing and presenting financial statement.
accounting policies
means that any resulting adjustment from the change in the acctg. policies shall be reported as an adjustment to the opening balance of retained earnings
retrospective application
means that the change is applied to transactions, other events and conditions from the date of change in estimate.
prospective application