Question & AnswerQ&A (BOARD OF ACCOUNTANCY PRC Resolution NO. 11, S. OF 2000)
The resolution adopts the amendment of the Accounting Standards Council (ASC) to the Statement of Financial Accounting Standards (SFAS) No. 19 concerning accounting for investments in debt and marketable equity securities of banks as part of the rules and regulations for the practice of accountancy in the Philippines.
The amendment to ASC SFAS No. 19, embodied in SFAS No. 19A, was approved by the Accounting Standards Council on December 20, 1999.
In Resolution No. 19, Series of 1997, the Board adopted the original Statement of Financial Accounting Standards No. 19 as part of the rules and regulations for the practice of accountancy.
Because the amendments aligned the provisions of ASC SFAS No. 19 with the provisions of BSP Circular No. 161, which is based on FASB Statement No. 115 issued by the US Financial Accounting Standards Board regarding accounting for investments in debt and equity securities.
The ASC SFAS No. 19 amendments were made to align with BSP Circular No. 161, which provides regulatory guidelines issued by the Bangko Sentral ng Pilipinas for accounting for investments in debt and equity securities of banks.
The resolution and its annex shall take effect fifteen (15) days after their publication in the Official Gazette or in a newspaper of general circulation in the Philippines, whichever is earlier.
The resolution was adopted by the Board chaired by Antonieta Fortuna-Ibe, with members Eugene Mateo, Violeta V. Vicente, Ruperto P. Somera, Liwayway F. Gener, Solita V. Delantar, and John S. Bala, attested by Carlos G. Almelor, and approved by Commission Chairman Hermogenes P. Pobre and Associate Commissioners Alfonso G. Abad and Avelina De La Rea-Tan.
Incorporating ASC SFAS No. 19A ensures that the accounting practice for investments in debt and marketable equity securities of banks conforms with updated and internationally aligned financial accounting standards, thereby promoting consistent and accurate financial reporting among accountants in the Philippines.
The full text of the annex entitled 'Statement of Financial Accounting Standards No. 19A' is available at the Office of the National Administrative Register, U.P. Law Center, Diliman, Quezon City.
The Board exercises its regulatory authority to adopt and amend accounting standards and rules to align with national and international accounting requirements, ensuring the competence and professionalism of the accountancy practice in the Philippines as mandated by law and the Professional Regulatory Boards.