What is a primary function of FRSC?

• A. Tax collection and audit oversight.
• B. Drafting corporate governance codes for banks.
• C. Converge Philippine Accounting Standards with IASB.
• D. Regulate the practice of accounting in universities.

Answer: (C)

FRSC’s primary function is to set and oversee accounting standards in the Philippines, ensuring alignment with international practice. Its main role is to converge Philippine Accounting Standards and Philippine Financial Reporting Standards with the standards of the International Accounting Standards Board, so financial statements from Philippine entities are comparable with IFRS-driven reports worldwide. This convergence enhances transparency, reliability, and cross-border investment.

Taxes and audit oversight are handled by other government bodies, not FRSC. Drafting corporate governance codes for banks falls under different regulators or committees, while regulating the practice of accounting in universities isn’t FRSC’s mandate.