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Temporary SME standards in Philippines

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09 Jan 2006

The Philippines has adopted IFRSs in full as its national standards starting in 2005. However, on 22 December 2005, the Philippines Securities and Exchange Commission issued PAS 101 entitled Financial Reporting Standards For Non-Publicly Accountable Entities (NPAEs), as approved by the Accounting Standards Council, to provide temporary relief to qualified small and medium-sized entities from applying the new accounting standards.

Qualifying entities may choose instead to use the former Philippines Accounting Standards that were in effect in December 2004. That option will be available for 2005 through 2007 unless revoked earlier. The SEC indicated that it is taking this action in recognition of the IASB's SME Project. The SEC adopted the IASB's draft criteria for distinguishing publicly accountable entities from non-publicly accountable – publicly accountable if (a) publicly listed, (b) holds assets in a fiduciary capacity, (c) public utility, or (d) economically significant. For Philippines purposes, economic significance means total assets over Php 250 million (approximately US$ 5 million) or total liabilities over Php 150 million in 2004. Click for (PDF 151k).

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Correction list for hyphenation

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