The Institute of Certified Public Accountants of Kenya

QUESTION 1

ICPAK

NATURE OF ICPAK

The Institute of Certified Public Accountants of Kenya (ICPAK) was set up in 1978. The Institute is an individual from the Pan-African Federation of Accountants (PAFA) and the International Federation of Accountants (IFAC), the worldwide umbrella body for the bookkeeping calling. The Vision of the Institute is 'A world class proficient bookkeeping organization', while the Mission is 'To create and advance globally perceived bookkeeping calling that maintains open enthusiasm through powerful control, research and development'.

The Institute is guided by the accompanying center esteems: Credibility, Professionalism and Accountability. The Institute draws its command from the Accountants Act (no 15 of 2008). The Act endorses the accompanying as the elements of the Institute:

• To advance benchmarks of expert ability and practice among individuals from the Institute
• To advance research into the subject of bookkeeping and fund and related issues, and the production of books, periodicals, diaries and articles in association therewith;
• To advance the global acknowledgment of the Institute.
• To prompt the Examination Board on issues identifying with examinations guidelines and strategies;
• To exhort the Minister on issues identifying with monetary responsibility in all parts of the economy;
• To do some other capacities endorsed for it under any of alternate arrangements of this Act or some other composed law and
• To do anything accidental or helpful for the execution of any of the previous capacities.

Role of ICPAK

The Accountants Act No 15, 2008 endorses the accompanying as the elements of the Institute:

• To advance gauges of expert ability and practice among individuals from the Institute
• To advance research into the subject of bookkeeping and back and related issues, and the production of books, periodicals, diaries and articles in association therewith;
• To advance the worldwide acknowledgment of the Institute.
• To exhort the Examination Board on issues identifying with examinations norms and strategies;
• To prompt the Minister on issues identifying with monetary responsibility in all divisions of the economy;
• To complete some other capacities recommended for it under any of alternate arrangements of this Act or some other composed law and
• To do anything coincidental or helpful for the execution of any of the former capacities.

Nature of IFAC

IFAC is the overall association for the bookkeeping calling. Established in 1977, the association is contained 164 individuals and partners in 125 nations and purviews, speaking to additional than 2.5 million bookkeepers utilized out in the open practice, industry and trade, government, and academe.

Role of IFAC

IFAC's part is triple: to build up and elevate adherence to great global models, to encourage coordinated effort and collaboration with part bodies, and to fill in as representative for the worldwide calling on applicable open approach issues. IFAC's part is triple: to set up and elevate adherence to amazing universal measures, to encourage coordinated effort and participation with part bodies, and to fill in as representative for the worldwide calling on important open approach issues.

IFAC's sheets set the accompanying principles:

• International Standards on Auditing, Affirmation Engagements and Related Administrations

• International Standards on Quality Control

• International Code of Ethics for Proficient Accountants

• International Education Standards

• International Public Sector Bookkeeping Standards

Nature of IASB

IASB was previously known as the International Accounting Standards Committee (IASC) until April 2001, when it became the IASB. The International Accounting Standards Board (IASB) is an autonomous, private-part body that creates and endorses International Financial Reporting Standards (IFRSs). The IASB works under the oversight of the IFRS Foundation. The IASB was framed in 2001 to supplant the International Accounting Standards Committee. As of now, the IASB has 14 individuals.

Role of IASB

Under the IFRS Foundation Constitution, the IASB has finish obligation regarding every specialized matter of the IFRS Foundation including:

• full circumspection in creating and seeking after its specialized motivation, subject to certain conference prerequisites with the Trustees and people in general the planning and issuing of IFRSs (other than Interpretations) and presentation drafts, following the due procedure stipulated in the Constitution the endorsement and issuing of Interpretations created by the IFRS Interpretations Committee.

B.) Importance of Accounting Standards

• Acknowledgment: How resources, liabilities, incomes, and costs are perceived on monetary proclamations

• Estimation: How benefits and misfortunes are measured and provided details regarding money related proclamations
• Introduction: How data should be exhibited on money related proclamations
• Divulgence: What data should be shared on money related proclamations

Question 2

1. List and explain at least 10 accounting concepts and principles

• Accounting Relevance

Data ought to be significant to the basic leadership needs of the client. Data is important on the off chance that it helps clients of the budgetary proclamations in foreseeing future patterns of the business (Predictive Value) or affirming or revising any past expectations they have influenced (Confirmatory To esteem). Same snippet of data which helps clients in affirming their past expectations may likewise be useful in shaping future conjectures.

• Reliability Concept

Data is solid if a client can rely on it to be tangibly exact and in the event that it reliably speaks to the data that it indicates to display. Noteworthy errors or oversights in monetary proclamations diminish the unwavering quality of data contained in them. Reliability of money related data is upgraded by the utilization of following bookkeeping ideas and standards:

• Impartiality
• Unwavering Representation
• Reasonability
• Fulfillment
• Single Economic Entity Concept

• Matching Principle & Concept

Matching Principle requires that expenses incurred by an organization must be charged to the income statement in the accounting period in which the revenue, to which those expenses relate, is earned.