Standards and superseded counterparts
- “Last Batch of IASs” includes the following PAS/IAS pairs and supersessions:
- PAS 19 / IAS 19 (Employee Benefits) supersedes SFAS 24.
- PAS 29 / IAS 29 (Financial Reporting in Hyperinflationary Economies) supersedes PAS 30 and SFAS 19.
- PAS 41 / IAS 41 (Agriculture) supersedes PAS 41 reference to SFAS 19 as stated in the supersession table.
- PAS 30 / IAS 30 (Disclosures in the Financial Statements of Banks and Similar Financial Institutions) supersedes SFAS 19.
- “International Accounting Standards (IASs), As Revised in 2003” adopts the IAS list shown under the PAS numbering system, each with the specified supersession, including:
- PAS 1 / IAS 1 (Presentation of Financial Statements) supersedes SFAS 1 (rev).
- PAS 2 / IAS 2 (Inventories) supersedes SFAS 4 (rev).
- PAS 8 / IAS 8 (Accounting Policies, Changes in Accounting Estimates and Errors) supersedes SFAS 13 (rev).
- PAS 10 / IAS 10 (Events after the Balance Sheet Date) supersedes SFAS 10/IAS10 notation as stated in the SEC table.
- PAS 16 / IAS 16 (Property, Plant and Equipment) supersedes SFAS 16/IAS16 notation as stated in the SEC table.
- “International Financial Reporting Standards (IFRSs)” are adopted as PFRS 1 to PFRS 5, each superseding the stated SFAS/IAS provisions in the SEC table:
- PFRS 1 / IFRS 1 (First-time Adoption of Philippine Financial Reporting Standards) is adopted.
- PFRS 2 / IFRS 2 (Share Based Payment) is adopted.
- PFRS 3 / IFRS 3 (Business Combinations) supersedes SFAS 22 / IAS 22 as stated in the SEC table.
- PFRS 4 / IFRS 4 (Insurance Contracts) is adopted.
- PFRS 5 / IFRS 5 (Non-current Assets Held for Sale and Discontinued Operations) is adopted, superseding SFAS 35 / IAS 35 as stated in the SEC table.
Effective dates for annual and interim reporting
- The adopted accounting standards are effective for annual financial reporting periods beginning January 1, 2005.
- The adopted accounting standards are effective for interim or quarterly reports beginning January 1, 2006.
Special rules for PAS/IAS 39 conversion
- For purposes of PAS/IAS No. 39 (Financial Instruments: Recognition and Measurement), the following rules apply:
- 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.
Availability of the standards
- Copies of the new/revised accounting standards are made available at the offices of the Philippine Institute of Certified Public Accountants (PICPA).
Publication and effectivity timeline
- The memorandum circular takes effect fifteen (15) days following its publication in a newspaper of general circulation.
- The memorandum circular is adopted on 22 Dec. 2004, with signature by (SGD.) FE B. BARIN, Chairperson.
Coverage of adopted standards set
- The adopted set consists of Philippine Accounting Standards 1 to 41, which correspond to International Accounting Standards as issued by the International Standards Committee (IASC).
- The adopted set includes Philippine Financial Reporting Standards 1 to 5, which correspond to International Financial Reporting Standards as issued by the International Accounting Standards Board (IASB).
- The adopted set includes interpretations to the extent included in the referenced standard set described in the memorandum circular’s adoption note.
- The IAS components are identified as having year-of-revision structure: IASs are revised in 2003, except IASs 36 and 38, which were revised in 2004.