QuestionsQuestions (LTO MEMORANDUM CIRCULAR NO. AHS-2008-953)
The SEC, through Resolution No. 662, Series of 2004, approved the adoption in its rules and regulations of the specified PFRS as approved by the Accounting Standards Council.
They are approved by the Accounting Standards Council, and the standards consist of IASs (as issued by the IASC, predecessor of the IASB), IFRSs (as issued by the IASB), and the Philippine Financial Reporting Standards (PFRS).
The “Last Batch of IASs” includes PAS 19 (IAS 19) Employee Benefits; PAS 29 (IAS 29) Hyperinflationary Economies; PAS 30 (IAS 30) Disclosures in Financial Statements of Banks and Similar Institutions; and PAS 41 (IAS 41) Agriculture.
PAS 19 (IAS 19) supersedes SFAS 24; for example, PAS 19 corresponds to Employee Benefits which will supersede SFAS 24.
It lists IASs revised in 2003 and shows their corresponding PAS equivalents, including the superseding of older SFAS versions. Example: PAS 1 (IAS 1) Presentation of Financial Statements supersedes SFAS 1 (rev).
PAS 2 (IAS 2) Inventories supersedes SFAS 4 (rev) (as shown in the table).
They shall be effective for annual financial reporting periods beginning January 1, 2005.
They shall be effective for interim or quarterly reports beginning January 1, 2006.
Comparative information for prior years is optional.
The status of the conversion plan by the covered companies must be discussed in their 2005 interim/quarterly reports.
It states that the standards include Philippine Financial Reporting Standards (PFRS) corresponding to IFRSs (e.g., PFRS 1 supersedes IFRS 1; PFRS 2 supersedes IFRS 2).
PFRS 3 supersedes IFRS 3 and covers Business Combinations.
Copies will be available at the offices of the Philippine Institute of Certified Public Accountants (PICPA).
It takes effect fifteen (15) days following its publication in a newspaper of general circulation.
It mentions that PAS 1 to 41 are adopted IASs issued by the IASC; PFRS 1 to 5 are adopted IFRSs issued by the IASB; and it also references interpretations.
It ties the requirement to the companies’ 2005 interim/quarterly reports.