This course is a study of the accounting function, its role in society, and the theory that provides the foundation for modern financial accounting. It deals with the conceptual framework for financial reporting, the Philippine Financial Reporting Standards, the Philippine Accounting Standards, and how these standards affect financial accounting and reporting for business entities. This course explains the standard-setting process, the authority attached to the standards, and the body authorized to promulgate them. It is also designed to discuss the recognition, measurement and derecognition principles as well as the pertinent disclosure requirements of the standards. The discussion focuses on the currently effective pronouncements by Financial Reporting Standards Council, Accounting Standards Council, and Philippine Interpretations Committee.