Adoption of Certain Standards as Part of SEC Rules and Regulations

January 14, 2011 SEC NOTICE Notice is hereby given that the Commission En Banc in its meeting of 13 January 2011 resolved to adopt the following standards 1 as part of its rules and regulations: Title Brief Description Effectivity PFRS 9 The first version of IFRS 9 which only Annual periods beginning Financial Instruments : covers financial assets was issued by the on or after January 1, Recognition and International Accounting Standards 2013 Measurement Board (IASB) in November 2009 and was adopted by the Commission on 06 May Entities are permitted to 2010 apply the new requirements on financial This latest version of IFRS 9 as issued by liabilities in earlier periods, the IASB in October 2010 now also however, if they do, they covers the requirements on financial must also apply the liabilities. The existing amortized cost requirements that relate to measurement for most liabilities under financial assets. IAS 39 was adopted by the IASB in this standard except some changes on fair Considering the timing of value option to address the issue of own the issuance by the IASB credit risk. of the IFRS 9 on financial liabilities and its adoption As a new requirement in this standard, by the Commission, an an entity choosing to measure a liability entity early adopting the at fair value shall present the portion of requirements of PFRS 9 on the change in its fair value due to financial assets may elect changes in the entity's own credit risk in not to apply the changes the other comprehensive income (OCI) on financial liabilities. section of the income statement, rather than within profit or loss. DCAHcT The Conceptual This version of the Conceptual Framework Framework for includes the first two chapters as a result Financial Reporting of IASB's first phase of the conceptual 2010 framework project: Chapter 1 The objective of financial reporting Chapter 3 Qualitative characteristics of useful financial information Amendment to The amendment provides the same relief Annual periods beginning PFRS 1: Limited to first-time adopters as was given to on or after July 1, 2010. Exemption from current users of PFRSs upon adoption of Comparative PFRS 7 the Amendment to PFRS 7. Earlier application is Disclosures for permitted as long as an First-time Adopters entity discloses the fact that the amendment has been early adopted. Amendments to The amendments require the disclosure Annual periods beginning PFRS 7: Disclosures- of information that enables the users of on or after July 1, 2011 . Transfers of financial statements: Financial Assets If an entity applies the To understand the relationship amendments from an between transferred financial assets earlier date, it shall that are derecognized in their entirety disclose that fact. An and the associated liabilities; entity need not provide the disclosures required To evaluate the nature of, and risks by those amendments for associated with, the entity's any period presented continuing involvement in that begins before the de-recognized financial assets. date of initial application of the amendments. Improvements to The improvements involve omnibus Unless otherwise stated in PFRS 2010: A amendments to the following standards the particular amended Collection of and interpretation: standard or interpretation, Amendments to the effectivity of the Seven International PFRS 1 First-time Adoption of amendments shall be Financial Reporting PFRS 1 for annual periods Standards (IFRSs) PFRS 3 Business Combinations 2 beginning on or after PFRS 7 Financial Instruments: 01 January 2011 . Disclosures 3 PAS 1 Presentation of Financial Early application is Statements 4 permitted in all cases. PAS 27 Consolidated and Separate Financial Statements 5 PAS 34 Interim Financial Reporting 6 IFRIC 13 Customer Loyalty Programmes 7 Amendments to IFRIC The amendment to IFRIC 14 requires Entities shall apply the 14: Prepayments of a entities that are subject to minimum amendment for annual Minimum Funding funding requirement to treat the benefit periods beginning on or Requirement of an early payment as an asset. after 01 January 2011 . Earlier application is permitted. The foregoing standards and interpretation shall be applicable to corporations which are considered by the Commission as publicly accountable entities and are mandated to adopt the Philippine Financial Reporting Standards as their financial reporting framework. The International Accounting Standards Board provides access 1 through its website at www.ifrs.org. for the unaccompanied 2 standards and interpretations. Issued this 14th day of January 2011, at Mandaluyong City, Philippines. IDEHCa For the Commission: (SGD.) FE B. BARIN Chairperson Footnotes 1. These are being adopted from the International Financial Reporting Standards issued by the International Accounting Standards Board. 1. The amendments pertain to accounting policy changes in the year of adoption; revaluation basis as deemed cost; use of deemed cost for operations subject to rate regulation. 2. The amendments pertain to transition requirements for contingent consideration from a business combination that occurred before the effective date of the revised IFRS; measurement of non-controlling interests; Un-replaced and voluntarily replaced share-based payment awards. 3. The revision involves mere clarification of disclosures. 4. The revision involves mere clarification on the statement of changes in equity. 5. The revision involves transition requirements for amendments made as a result of IAS 27 (as amended in 2008) to IAS 21, IAS 28 and IAS 31. 6. The subject of the amendment is the significant events and transactions. 7. The subject of amendment is the fair value of award credit. 1. The access is subject to registration requirements and copyright limitations. 2. These do not include illustrative examples, implementation guidance, and bases for conclusions.