Chapter 2 Accounting Concepts and Principles
Chapter 2 Accounting Concepts and Principles
ACCOUNTING
CONCEPTS AND
PRINCIPLES
LEARNING OBJECTIVES:
01
Securities and Exchange Commission (SEC) - The SEC is
tasked with regulating corporations, including
partnerships. The SEC requires corporations and
partnerships to file audited financial statements
03
Bangko Sentral ng Pilipinas (BSP) - The BSP is tasked in
regulating banks and other entities performing banking
functions. The BSP influences the selection and
application of accounting policies by these businesses.
02
Bureau of Internal Revenue (BIR) - The BIR is tasked in
collecting national taxes and administering the
provisions of the Tax Code. Although the provisions of
the Tax Code do not always reflect the goals of financial
reporting, they do at times influence the choice of
04
accounting methods and procedures. Cooperative Development Authority (CDA) - the CDA is
tasked in regulating cooperatives. The CDA influences
the selection and application of accounting policies by
cooperatives.
Qualitative Characteristics- are traits that determine wether an item of
information is useful to users.
I. Fundamental Qualitative Characteristics
Relevance (Predictive Value, Confirmatory Value, Materiality)
Faithful Representation (Completeness, Neutrality, Free from error)
II. Enhancing Qualitative Characteristics
Comparability
Verifiability
Timeliness
Understandability
Chapter 2: Accounting Concepts and Principles
The fundamental qualitative characteristics are the
characteristics that make information useful to users.