Philippine Financial Reporting Standards

December 22, 2004 SEC MEMORANDUM CIRCULAR NO. 19-04 SUBJECT : Philippine Financial Reporting Standards The Commission, in its Resolution No. 662, Series of 2004, approved the adoption in its rules and regulations of the following Philippine Financial Reporting Standards 1 (PFRS), as approved by the Accounting Standards Council: 1. Last Batch of IASs 2 PAS 3 IAS Title This will supersede PAS 19 IAS 19 Employee Benefits SFAS 24 PAS 29 IAS 29 Financial Reporting in - Hyperinflationary Economies PAS 30 IAS 30 Disclosures in the Financial SFAS 19 Statements of Banks and Similar Financial Institutions PAS 41 IAS 41 Agriculture - 2. International Accounting Standards (IASs), As Revised In 2003 PAS IAS Title This will supersede PAS 1 IAS 1 Presentation of Financial Statements SFAS 1 (rev) PAS 2 IAS 2 Inventories SFAS 4 (rev) PAS 8 IAS 8 Accounting Policies, Changes in SFAS 13 (rev) Accounting Estimates and Errors PAS 10 IAS 10 Events after the Balance Sheet Date SFAS 10/IAS10 PAS 16 IAS 16 Property, Plant and Equipment SFAS 16/IAS 16 PAS 17 IAS 17 Leases SFAS 17/IAS 17 PAS 21 IAS 21 The Effects of Changes in Foreign SFAS 21/IAS 21 Exchange Rates International Accounting Standards (IASs) As Revised 4 . . . PAS IAS Title This will supersede PAS 24 IAS 24 Related Party Disclosures SFAS 24/IAS 24 PAS 27 IAS 27 Consolidated and Separate Financial Statements SFAS 27/IAS 27 PAS 28 IAS 28 Investments in Associates SFAS 28/IAS 28 PAS 31 IAS 31 Interests in Joint Ventures SFAS 31/IAS 31 PAS 32 IAS 32 Financial Instruments: Disclosures - and Presentation PAS 33 IAS 33 Earnings per Share SFAS 29 PAS 36 IAS 36 Impairment of Assets SFAS 36/IAS 36 PAS 38 IAS 38 Intangible Assets SFAS 38/IAS 38 PAS 39 IAS 39 Financial Instruments: Recognition and Measurement SFAS 10 & 19A PAS-40 IAS-40 Investment Property - 3. International Financial Reporting Standards (IFRSs) PFRS IFRS Title This will supersede PFRS 1 IFRS 1 First-time Adoption of Philippine - Financial Reporting Standards PFRS 2 IFRS 2 Share Based Payment - PFRS 3 IFRS 3 Business Combinations SFAS 22/IAS 22 PFRS 4 IFRS 4 Insurance Contracts - PFRS 5 IFRS 5 Non-current Assets Held for Sale and Discontinued Operations SFAS 35/IAS 35 The foregoing accounting standards shall be effective for annual financial reporting periods beginning January 1, 2005 and for interim or quarterly reports beginning January 1, 2006. For purposes of PAS/IAS No. 39 on Financial Instruments: Recognition and Measurement: 1) Comparative information for prior years is optional; and 2) Status of conversion plan by the covered companies concerned must be discussed in their 2005 interim/quarterly reports. 2004cdasia Copies of these new/revised accounting standards will be available at the offices of the Philippine Institute of Certified Public Accountants (PICPA). This Memorandum Circular shall take effect fifteen (15) days following its publication in a newspaper of general circulation. STaHIC Issued this 22nd day of December 2004 at EDSA, Greenhills, Mandaluyong City. (SGD.) FE B. BARIN Chairperson Footnotes 1. Consisting of Philippine Accounting Standards 1 to 41 [these are adopted International Accounting Standards (IASs) as issued by the International Accounting Standards Committee (IASC)]; Philippine Financial Reporting Standards 1 to 5 (adopted International Financial Reporting Standards (IFRSs) as issued by the International Accounting Standards Board (IASB); and interpretations thereof. 2. International Accounting Standards as issued by the IASC, the predecessor of the IASB. The adoption of this last batch of IASs (Nos. 19, 29, 30 and 41), completes the Philippines' transition to international-based accounting standards. 3. Philippine Accounting Standards as re-named from Statements of Financial Reporting Standards (SFASs) by ASC to correspond better with the IASs issuance by the IASC. 4. As revised in year 2003 except IASs 36 and 38 which were revised in 2004.