SEC Memorandum Circular No. 19 (2004)

(NAR) VOL. 16 NO. 1 / JANUARY - MARCH 2005

[ SEC MEMORANDUM CIRCULAR NO. 19, S. 2004, December 22, 2004 ]

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 [1] Standards (PFRS), as approved by the Accounting Standards Council: [2] 1. Last Batch of IASs PAS [3]IAS Title This will supersede IAS PAS19 Employee Benefits SFAS 24 19 PAS IAS Financial Reporting in — 29 29 Hyperinflationary Economies PAS IAS Disclosures in the Financial 30 30 Statements of Banks and Similar SFAS 19 Financial Institutions PAS IAS Agriculture — 41 41 2. International Accounting Standards (IASs), As Revised In 2003 PAS IAS Title This will supersede Presentation of Financial PAS 1 IAS 1 SFAS 1 (rev) Statements PAS 2 IAS 2 Inventories SFAS 4 (rev) Accounting Policies, PAS 8 IAS 8 Changes in Accounting Estimates and SFAS 13 (rev) Errors PAS IAS Events after the Balance SFAS 10/IAS10 10 10 Sheet Date PAS IAS Property, Plant and SFAS 16/IAS 16 16 16 Equipment PAS IAS Leases SFAS 17/IAS 17 17 17 PAS IAS The Effects of Changes in 21 21 Foreign Exchange Rates SFAS 21/IAS 21 [1] International Accounting Standards (IASs), As Revised . . .PAS IAS Title This will supersede PAS IAS Related Party Disclosures SFAS 24/IAS 24 24 24 PAS IAS Consolidated and Separate 27 27 Financial Statements SFAS 27/IAS 27 PAS IAS Investments in Associates SFAS 28/IAS 28 28 28 PAS IAS Interests in Joint Ventures SFAS 31/IAS 31 31 31 PAS IAS Financial Instruments: 32 32 Disclosures and Presentation — PAS IAS Earnings per Share SFAS 29 33 33 PAS IAS Impairment of Assets SFAS 36/IAS 36 36 36 PAS IAS Intangible Assets SFAS 38/IAS 38 38 38 PAS IAS Financial Instruments: 39 39 Recognition and SFAS 10 & 19A Measurement PAS IAS Investment Property — 40 40 3. International Financial Reporting Standards (IFRSs) PFRS IFRS Title This will supersede PFRS IFRS First-time Adoption of 1 1 Philippine Financial Reporting — Standards PFRS IFRS Share Based Payment — 2 2 PFRS IFRS Business Combinations SFAS 22/IAS 22 3 3 PFRS IFRS Insurance Contracts — 4 4 PFRS IFRS Non-current Assets Held for 5 5 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. 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. Adopted: 22 Dec. 2004

(SGD.) FE B. BARIN Chairperson [1] Consisting of Philippine Accounting Standards 1 to 41 (these are adopted International Accounting Standards (IASs) as issued by the International 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. [1] As revised in year 2003 except IASs 36 and 38 which were revised in 2004.