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• As mechanism to avoid confusion and discrepancy in financial statement preparation, accounting organizations in different countries worldwide agreed to have uniform standards. • Thus the creation of IASC, in June 1973 which was later replaced by the International Accounting Standards Board (IASB). • They issued International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS). • They also formed a committee known as Standing Interpretations Committee (SIC) which was responsible for providing interpretation and guidance to the accounting issuances. • SIC replaced as the International Financial Reporting Interpretations Committee (IFRIC) which pronounces SIC and IFRIC Interpretations. IFRS IAS IFRS SIC and IFRIC Interpretations Name of Standards/ Interpretations Numbers of Standards International Accounting Standards IAS 1-41 International Financial Reporting Standards IFRS 1-13 Interpretations Various Numbers • The birth of IASB in the global arena also resulted in the creation of Financial Reporting Standard Council (FRSC) in the Philippines in 2004. Philippine Accounting Organization Accounting Standards & Issuances Accounting Standards Council (ASC) PAS Financial Reporting Standards Council PFRS Interpretation Committee (IC) and Philippine Interpretations Committee (PIC) IC Interpretations and PIC Interpretations Name of Standards/ Interpretations Numbers of Standards Philippine Accounting Standards IAS 1-41 Philippine Financial Reporting Standards IFRS 1-13 Interpretations Various Numbers Financial Statements Philippine Financial Reporting Standards Conceptual Framework • Is a body of concepts, terms, and assumptions that set out the concepts that underlie the preparation and presentation of financial statements for external users. • It is used to set standards, enhance consistency across standards and provide benchmark for judgment. • In the absence of a specific standard or interpretations, Conceptual framework can be used. a.The Conceptual Framework serves as general guidelines in the preparation and presentation of financial statements in the absences of specific PFRS; b.The Conceptual Framework is not PFRS; c.The Conceptual Framework does not define standards for any particular measurement or disclosure issue; d.Nothing in the Conceptual Framework overrides any specific PFRS; e.In case of conflict between the CF and PFRS, the conditions and requirements for measurement and disclosure set by the latter will prevail over former.