SEC MEMORANDUM CIRCULAR NO. 5, S. OF 2007

: The SEC approved it through Resolution No. 383, Series of 2007, dated October 19, 2007.
: The SEC adopted it as a Philippine Financial Reporting Standard under SRC Rule 68.
: It supersedes PAS 1 adopted in 2005.
: To improve users’ ability to analyze and compare information given in financial statements.
: Information in the financial statements must be aggregated based on shared characteristics.
: A statement of comprehensive income is introduced to distinguish changes resulting from transactions with owners (in their capacity as owners) versus those from non-owners (e.g., transactions with third parties).
: Examples include dividends and share repurchases.
: Transactions with third parties are cited as examples of non-owner changes.
: Preparers may present these either (1) in a single statement of comprehensive income with subtotals, or (2) in two separate statements (a separate income statement followed by a statement of comprehensive income).
: For annual periods beginning on or after January 1, 2009.
: Yes. Earlier application is permitted.
: The entity must disclose the fact that it applied the standard earlier.
: Copies are available at the offices of the Philippine Institute of Certified Public Accountants (PICPA).
: It takes effect fifteen (15) days following its publication in two (2) newspapers of general circulation.
: It was signed by (SGD.) FE B. BARIN, Chairperson.