SEC Adoption of Philippine Ficial Reporting Standards

The last batch of International Accounting Standards adopted includes IAS 19 (Employee Benefits), IAS 29 (Financial Reporting in Hyperinflationary Economies), IAS 30 (Disclosures in Financial Statements of Banks and Similar Financial Institutions), and IAS 41 (Agriculture).
These standards replace the older Philippine Accounting Standards and Statements of Financial Accounting Standards (SFAS) related to these subjects.

The December 22, 2004 memorandum includes the adoption of IASs as revised in 2003 which supersede older PAS and SFAS.
Key IAS adopted include IAS 1 (Presentation of Financial Statements), IAS 2 (Inventories), IAS 8 (Accounting Policies, Changes in Estimates and Errors), IAS 10 (Events after the Balance Sheet Date), IAS 16 (Property, Plant, and Equipment), IAS 17 (Leases), and IAS 21 (Effects of Changes in Foreign Exchange Rates).

Additional IASs adopted include IAS 24 (Related Party Disclosures), IAS 27 (Consolidated and Separate Financial Statements), IAS 28 (Investments in Associates), IAS 31 (Interests in Joint Ventures), IAS 32 (Financial Instruments: Disclosures and Presentation), IAS 33 (Earnings per Share), IAS 36 (Impairment of Assets), IAS 38 (Intangible Assets), IAS 39 (Financial Instruments: Recognition and Measurement), and IAS 40 (Investment Property).
These standards redefine reporting and disclosure requirements, replacing the corresponding PAS and SFAS to enhance transparency and consistency.

The memoranda adopt IFRS, replacing the previously used PFRS.
Key IFRSs adopted include IFRS 1 (First-time Adoption of PFRS), IFRS 2 (Share-Based Payment), IFRS 3 (Business Combinations), IFRS 4 (Insurance Contracts), and IFRS 5 (Non-current Assets Held for Sale and Discontinued Operations).
These new IFRS standards introduce updated rules on initial adoption, transaction accounting, and presentation.

The new and revised accounting standards are effective for annual financial reporting periods starting January 1, 2005.
For interim and quarterly reports, the standards become effective January 1, 2006.

Companies are given the option to present comparative information for prior years when adopting IAS 39.
Covered companies are required to discuss their conversion plan status in their interim or quarterly reports for the year 2005.

Copies of the new and revised accounting standards can be obtained at the offices of the Philippine Institute of Certified Public Accountants (PICPA).
The memorandum circular takes effect 15 days after its publication in a newspaper of general circulation.

The adoption is embodied in SEC Resolution No. 662, Series of 2004, and formalized through SEC Memorandum Circular No. 19, Series of 2004, signed by SEC Chairperson FE Barin on December 22, 2004.