Update on adoption of IFRSs in Philippines

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22 Oct 2007

We have modified our classification of the adoption of IFRS in Philippines in our table of Use of IFRSs by Jurisdiction.

In her presentation titled Conversion to IFRS: The Philippine Experience at the IASB's recent IFRS Conference in Singapore, Ms Fe Barin, Chairperson of the Philippines Securities and Exchange Commission, explained that IFRSs have been modified in a number of ways when they were adopted as Philippines Financial Reporting Standards (PFRSs). Consequently, entities complying with PFRSs will not necessarily be complying with IFRSs as adopted by the IASB. The following table is based on Ms Barin's Presentation:

Where are we now? ('Transition relief'):

  • Reduced segment reporting disclosures
  • Exemption from applying tainting rule for a specific set of financial instruments
  • Commodity derivative contracts of mining companies as of 1 January 2005 'grandfathered'
  • Insurance companies allowed to use another comprehensive set of accounting principles (also described as Philippine Financial Reporting Standards)
  • For banks, losses from sale of non-performing assets allowed to be amortised over a period of time
  • Some additional changes to IASB's pension, foreign exchange, and leases Standards
Where do we want to be five years from now?
  • Philippines PFRSs = IFRSs
    • Eliminate transition relief unless provided in the standard itself
    • Philippine financial statements fully compliant with IFRSs
      • No need for IFRS conversion [reconciliation]
  • Financial reports 'at par with the best in the IFRS world'

Click for Use of IFRSs by Jurisdiction



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