Legal basis and standard adoption
- The SEC adopts Philippine Accounting Standard (IAS) 1, Presentation of Financial Statements (Revised 2007) as a Philippine Financial Reporting Standard.
- Adoption is grounded on SRC Rule 68 and implemented through SEC approval via Resolution No. 383, Series of 2007 dated October 19, 2007.
- The circular expressly provides that IAS 1 (Revised 2007) supersedes PAS 1 adopted in 2005.
- The circular requires entities to follow the adopted standard for the covered annual periods stated in the circular.
Policy, purpose, and key presentation changes
- The revision is intended to improve users’ ability to analyze and compare information in financial statements.
- The revision requires financial statement information to be aggregated based on shared characteristics.
- The revision introduces a statement of comprehensive income.
- The revision enables separate analysis of changes in equity from transactions with owners in their capacity as owners (such as dividends and share repurchases) and from non-owner changes (such as transactions with third parties).
- The revision gives preparers the option to present items of income and expense and components of other comprehensive income either:
- in a single statement of comprehensive income with subtotals, or
- in two separate statements consisting of a separate income statement followed by a statement of comprehensive income.
Date of application and transition rule
- Entities must apply the adopted PAS/IAS 1 (Revised 2007) for annual periods beginning on or after January 1, 2009.
- Earlier application of PAS/IAS 1 (Revised 2007) is permitted.
- If an entity applies the standard for an earlier period, the entity must disclose that fact.
Availability and access to the standard
- Copies of the revised standard are available at the offices of the Philippine Institute of Certified Public Accountants (PICPA).