SEC Notice

May 28, 2012 SEC NOTICE Notice is hereby given that the Commission en Banc in its meeting on 24 May 2012 resolved to adopt the following standards 1 and interpretation as part of its rules and regulations on financial reporting: Title Brief Description Effectivity Amendments to The amendments add an exception to the The amended standard PFRS 1: Government retrospective application of PFRSs. First- shall be applied for Loans time adopters are required to apply the annual periods requirements in PFRS 9, Financial beginning on or after Instruments (If PFRS 9 is not yet adopted, January 1, 2013. references to PFRS 9 in the amendments shall be read as references to PAS 39, Earlier application is Financial Instruments: Recognition and permitted. Measurement ) and PAS 20, Accounting for Government Grants and Disclosure of Government Assistance prospectively to government loans existing at the date of transition to PFRSs. A first-time adopter may apply the requirements of PFRS 9 and PAS 20 to government loans retrospectively if it has obtained the necessary information to do so. Amendments to The amendment involves the revision of the The amended standard PFRS 7: Disclosures required disclosures to include information shall be applied for Offsetting Financial that will enable users to evaluate the effect annual periods Assets and or potential effect of netting arrangements beginning on or after Financial Liabilities on an entity's financial position. January 1, 2013 and interim periods within An entity shall provide the disclosures those annual periods. required by the amendments retrospectively. Amendments to The amendments involve the following: The amended PFRS 9 and PFRS 7: standards shall be Mandatory Effective (a) Change of the original 01 January 2013 applied for annual Date of PFRS 9 and mandatory effective date of PFRS 9 to periods beginning on or Transition 01 January 2015; after January 1, 2015. Disclosures (b) Modification of the relief from restating Earlier application is prior periods; and permitted. (c) Additional required disclosures on transition from PAS 39, Financial instruments: Recognition and Measurement to PFRS 9. Amendments to This amendment provides an additional The amended standard PAS 32: Offsetting application guidance for offsetting in shall be applied for Financial Assets accordance with PAS 32. It clarifies the annual periods and Financial meaning of "currently has a legally beginning on or after Liabilities enforceable right of set-off" and that some January 1, 2014 and gross settlement systems may be should be applied considered equivalent to net settlement. retrospectively. Earlier application is permitted. IFRIC 20 Stripping This interpretation applies to waste removal This interpretation shall Costs in the costs that are incurred in surface mining be applied annual Production Phase of activity during the production phase of the periods beginning on or a Surface Mine mine ('production stripping costs') and after January 1, 2013 provides guidance on the recognition of prospectively. production stripping costs as an asset and measurement of the stripping activity asset. Earlier application is permitted. The foregoing standards and interpretation shall be applicable to corporations which are considered by the Commission as large corporations and/or publicly-accountable entities that are mandated to adopt the Philippine Financial Reporting Standards as their financial reporting framework. CAIHTE The International Accounting Standards Board provides access 1 through its website at www.ifrs.org , for the unaccompanied 2 standards and interpretations. Issued this 28th day of May 2012, 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. 1. The access is subject to registration requirements and copyright limitations. 2. These do not include illustrative examples, implementation guidance, and bases for conclusions.