Question

IDENTIFY AND DISCUSS THE FOLLOWING ACRONYMS:

1.PICPA

2.IFAC

3.IASC

4.AFA

5.PFRS

6.GAAP

7.IFRS

8.ASC

9.FASB

10.PAS

Discuss the difference between GAAP and IFRS

Who are the key players in the development of Philippine GAAP? Explain their functions

Identify and Discuss the four main types of Accounting

Answer 1

Note : Acronyms are Written in the Attachment

Difference between GAAP and IFRS :

1) The primary difference between the two systems isthat GAAP is rules-based and IFRS is principles-based

2) Both GAAP and IFRS allow First In, First Out (FIFO), weighted-average cost, and specific identification methods for valuing inventories. However, GAAP also allows the Last In, First Out (LIFO) method, which is not allowed under IFRS.

3) Both methods allow inventories to be written down to market value. However, if the market value later increases, only IFRS allows the earlier write-down to be reversed. Under GAAP, reversal of earlier write-downs is prohibited. Inventory valuation may be more volatile under IFRS.

The key players in the development of Philippine GAAP:

ASC is composed of eight representatives from the profession, regulators, and preparers: four representatives from PICPA and one representative from the SEC, the Bangko Sentral ng Pilipinas, the Board of Accountancy, and the Financial Executives Institute of the Philippines

Four Main types  of Accounting:

1) Tax accounting : This field is concerned with the proper compliance with tax regulations, tax filings, and tax planning to reduce a company's tax burden in the future.

2) Mangement accounting : This field is concerned with the process of accumulating accounting information for internal operational reporting.

3) Cost accounting : Cost accounting involves the recordation, analysis, and reporting of costs to management

4) Financial accounting: This field is concerned with the aggregation of financial information into external reports.