Accounting and Auditing Standards
his chapter describes the accounting and auditing standards that
govern the preparation of external financial reports and the audit of
those reports. It comprises 12 sections, as follows:
Part One: Accounting Standards
1 – Introduction – reviews the historical development of Philippine
2 – Accounting Standards Council (ASC) – outlines the role, com-
position, and activities of the ASC, which is the primary ac-
counting standard setting body.
3 – Accounting Standard Setting Process – describes the accounting
standard setting process.
4 – Statements of Financial Accounting Standards – describes Philip-
pine accounting standards.
5 – Conformity with International Accounting Standards– examines
differences between Philippine accounting standards and IASs.
6 – Public Sector Accounting Standards – discusses developments in
public sector accounting standards.
7 – Taxation Reporting Requirements – reviews the impact of taxa-
tion requirements on financial reporting practices.
Part Two: Auditing Standards
8 – Introduction – describes the historical development of Philippine
9 – Auditing Standards and Practices Council (ASPC) – outlines the
role, composition, and activities of the ASPC, which is the pri-
mary auditing standard setting body.
10 – Auditing Standards – describes Philippine auditing standards.
11 – Comparison with International Standards on Auditing – exam-
ines differences with International auditing pronouncements.
12 – Issue Synopsis: Accounting and Auditing Standards – summarizes
the issues identified in this chapter.
In 1949, PICPA began issuing accounting standards in the form of ac-
counting bulletins—compliance was voluntary. In 1979, the PICPA
DIAGNOSTIC STUDY OF ACCOUNTING AND AUDITING PRACTICES IN THE PHILIPPINES
Committee on Accounting Research and Special Studies issued a report
on the state of financial acco