Adoption of Standards and Interpretations

August 17, 2016 SEC NOTICE Notice is hereby given that the Commission en Banc in its meeting on 11 August 2016 resolved to adopt the following new standard, amendments to the existing standards 1 and interpretations as part of SEC's rules and regulations on financial reporting: Title Brief Description Amendments to Philippine The amended standard shall be applied for annual periods Accounting Standard (PAS) 16 beginning on or after January 1, 2016 prospectively . Earlier and PAS 38, Clarification of application is permitted. Acceptable Methods of Depreciation and Amortization Amendments to PAS 16 and PAS The amended standard shall be applied for annual periods 41, Agriculture: Bearer Plants beginning on or after January 1, 2016 retrospectively. Earlier application is permitted. Amendments to PAS 19, Defined The amended standard shall be applied for annual periods Benefit Plans: Employee beginning on or after July 1, 2014 retrospectively. Earlier Contributions application is permitted. Amendments to PAS 27, Equity The amended standard shall be applied for annual periods Method in Separate Financial beginning on or after January 1, 2016 retrospectively. Statements Earlier application is permitted. Philippine Financial Reporting The standard shall be applied for annual periods beginning Standard (PFRS) 9, Financial on or after January 1, 2018 . Earlier application is Instruments (2014) permitted. PFRS 9 (2014) supersedes PFRS 9 (2009), PFRS 9 (2010), PFRS 9 (2013) and Philippine Interpretation IFRIC-9, Reassessment of Embedded Derivatives. However, for annual periods beginning before January 1, 2018, an entity may elect to apply those earlier versions of PFRS 9 instead of applying this standard if, and only if, the entity's relevant date of initial application is before February 1, 2015. PFRS 9, Financial Instruments An entity may elect to early adopt the requirements in (Hedge Accounting and PFRS 9 for presentation of gains and losses on financial amendments to PFRS 9, PFRS 7 liabilities designated at fair value through profit or loss and PAS 39) without applying the other requirements in PFRS 9. Entities are no longer required to apply PFRS 9 on January 1, 2015 but may choose to apply PFRS 9 immediately. This standard supersedes PFRS 9 adopted in May 2010 (classification and measurement requirements for financial assets), PFRS 9 adopted in November 2010 (classification and measurement requirements for financial liabilities) and Philippine Interpretation International Financial Reporting Interpretations Committee (IFRIC)-9, Reassessment of Embedded Derivative. However, an entity may elect to apply PFRS 9 adopted in May 2010 or PFRS 9 adopted in November 2010 instead of applying this standard. Amendments to PFRS 10 and PAS The amended standard shall be applied prospectively to 28, Sale or Contribution of Assets transactions occurring in annual periods beginning on or between an Investor and its after January 1, 2016 . Earlier application is permitted. Associate or Joint Venture Amendment to PFRS 11, The amended standard shall be applied for annual periods Accounting for Acquisitions of beginning on or after January 1, 2016 prospectively . Earlier Interest in Joint Operations application is permitted. PFRS 14, Regulatory Deferral An entity shall apply this standard if its first annual PFRS Accounts financial statements are for a period beginning on or after January 1, 2016 . Earlier application is permitted. Annual Improvements to PFRSs The effective date of each amendment is included in the 2010-2012 Cycle PFRSs affected. Annual Improvements to PFRSs The effective date of each amendment is included in the 2011-2013 Cycle PFRSs affected. Annual Improvements to PFRSs The amendments shall be effective for annual period 2012-2014 Cycle beginning on or after January 1, 2016 . Earlier application is permitted. 2015 Amendments to the PFRS for The amended standard shall be applied for annual period SMEs beginning on or after January 1, 2017 . Earlier application is permitted. Philippine Interpretations PIC Q&A No. 2013-02: Conforming Changes to PIC Committee (PIC) Q&A Q&As-Cycle 2013 The effective date of the amendments is included in the Q&A's affected. Revised PIC Q&A No. 2013-03: PAS 19 Accounting for Employee Benefits under a Defined Contribution Plan subject to Requirements of Republic Act 7641, The Philippine Retirement Law (RA 7641) The consensus in this Q&A is effective for annual financial statements with period beginning January 1, 2014 and should be applied retrospectively following the provisions of PAS 8, Accounting Policies, Changes in Accounting Estimates and Errors. All of the foregoing new standard, amendment to the existing standards, and interpretations have been adopted by the Philippine Financial Reporting Standards Council and Philippine Interpretations Committee, approved by the Board of Accountancy and Professional Regulation Commission on various dates and published in the Official Gazette on various dates. aDSIHc Issued this 17th day of August 2016 at Mandaluyong City, Philippines. For the Commission: (SGD.) TERESITA J. HERBOSA Chairperson Footnotes 1. These are being adopted from the International Financial Reporting Standards issued by the International Accounting Standards Board.