Adoption of New and Revised Auditing Standards and Standards on Assurance Engagements and Other Related Services

December 9, 2016 SEC MEMORANDUM CIRCULAR NO. 21, S. 2016 SUBJECT : Adoption of New and Revised Auditing Standards and Standards on Assurance Engagements and Other Related Services The Commission, in its Resolution No. 847, Series of 2016, approved the adoption of the following new and revised auditing standards and standards on assurance engagements and other related services as part of SEC's rules and regulations on financial reporting: Title Brief Description Philippine Standard on Auditing The revised standard shall be effective for audits of (PSA) 610 (Revised), Using the financial statements for periods ending on or after Work of Internal Auditors and December 15, 2013, except for provisions Related Conforming Amendments highlighted (see copy of the standard) pertaining to the use of internal auditors to provide direct assistance, which is effective for audits of financial statements for periods ending on or after December 15, 2014. PSA 260 (Revised), The revised standard shall be effective for audits of Communication with Those financial statements for periods ending on or after Charged with Governance December 15, 2016. PSA 570 (Revised), Going The revised standard shall be for audits of financial Concern statements for periods ending on or after December 15, 2016. PSA 700 (Revised), Forming an The revised standard shall be effective for audits of Opinion and Reporting on financial statements for periods ending on or after Financial Statements December 15, 2016. PSA 701, Communicating Key The revised standard shall be effective for audits of Audit Matters in the Independent financial statements for periods ending on or after Auditor's Report December 15, 2016. PSA 705 (Revised), Modifications The revised standard shall be effective for audits of to the Opinion in the Independent financial statements for periods ending on or after Auditor's Reports December 15, 2016. PSA 706 (Revised), Emphasis of The revised standard shall be effective for audits of Matter Paragraphs and Other financial statements for periods ending on or after Matter Paragraphs in the December 15, 2016. Independent Auditor's Report PSA 720 (Revised), The Auditor's The revised standard shall be effective for audits of Responsibilities Relating to Other financial statements for periods ending on or after Information December 15, 2016. Philippine Standard on Assurance This PSAE shall be effective for assurance reports Engagements (PSAE) 3410, covering periods ending on or after September Assurance Engagements on 30, 2013. Greenhouse Gas Statements Philippine Standard on Related The revised PSRS shall be effective for compilation Services (PSRS) 4410 (Revised), engagement reported dated on or after July 1, 2013 Compilation Engagements Philippine Standard on Review The revised PSRE shall be effective for reviews of Engagements (PSRE) 2400 financial statements for periods ending on or after (Revised), Engagements to Review December 31, 2013. Historical Financial Statements All of the foregoing new and revised auditing standards and standards on assurance engagements and other related services have been adopted by the Auditing and Assurance Standards Council and approved by the Board of Accountancy and Professional Regulation Commission and published in the Official Gazette. ETHIDa Issued this 09 December 2016 at Pasay City, Philippines. (SGD.) TERESITA J. HERBOSA Chairperson