Sunday, February 22, 2015

Leaflets Series: Reviewer in Inventories

The accounting principles and concepts in the accounting for inventories are covered by the Philippine Accounting Standards (PAS) 2 Inventories. The main focus of the Standard is to require entities to measure their inventories at the lower of cost or net realizable value (NRV). Once again, the accounting concept of conservatism is emphasized here.

Furthermore, the Standard also provides rulings as to the initial measurement (which should be at cost) and the subsequent measurement of inventories. There are various acceptable methods of determining cost and these includes Specific Identification, First-in First-Out (FIFO) and the Weighted Average Cost.

If you want to access the detailed content of IAS 2, you can visit the official website of the IFRS foundation through www.ifrs.org . On the other hand, if you are the type of person who hates detailed content and wants to access directly the main points provided by this Standard, you can browse www.iasplus.com which is updated regularly by Deloitte Global Services Limited which is a member of Deloitte Touche Tohmatsu Limited.

Anyway, provided in the link below is a scanned copy of the review material used during our CPA Review Sessions. The material is outlined as follows:

1. TOA.1205 Lecture Notes - which provides summarized content of the PAS 2 Inventories.
2. TOA.1205B Practice Drill - which provides multiple choice questions tailored based on the outlined flow of IAS 2.
3. TOA.1205CD Classroom Drill - which provides multiple choice questions that are usually covered during the actual CPA Board Examinations.

Friday, February 20, 2015

CPAs increasing role in public trust

While the world is getting smaller due to advancements in information technology, the global role of CPAs is also getting wider and bigger.

This was throughly discussed during the World Congress of Accountants (WCOA) 2014 that was held on November 10-13, 2014 in Rome, Italy.

One paper discussed was entitled "Fighting Corruption and Fraud: the Role for Professional Accountants" that greatly emphasizes the public value of accountants and their role in fighting corruption and enhancing transparency in using public resources.

According to a survey report entitled "The accountancy profession's role in creating public value" published by the Association of Chartered Certified Accountants (ACCA), CPAs are ranked as number 2 (medical professionals being number 1) in terms of putting value to the public.

Additionally, the profession's practice which includes the standard-setting process has a powerful impact on the stability of financial markets throughout the world. They have essential roles to play in the development and application of consistent global professional and ethical standards, in promoting good corporate governance, and supporting economic development through access to finance.

While it is quite true that CPAs today are facing several pressures and issues from the complex business world-- the professionals has to increase their value through constant learning and regular stretching of their skillset and knowledge.

The business world is changing rapidly; consequently, the CPAs must adapt to these changes by improving their skills from time to time.

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