Accounting Standards Get a Boost: Earlier Application Permitted

Simplifying Accounting Practices and Enhancing Transparency

The Philippine Financial Reporting Standards (PFRS) Council has announced revisions to several key standards, aimed at simplifying accounting practices and enhancing transparency in financial reporting.

Effective January 1, 2011, the revised PAS 24 will require entities to provide clearer disclosures about transactions and balances with related parties. The new standard simplifies the definition of a “related party” and provides a partial exemption for government-related entities.

Revised PAS 27 (Revised) on Consolidated and Separate Financial Statements

Taking effect July 1, 2009, the revised PAS 27 allows earlier adoption and supersedes the existing PAS 27. The new standard clarifies the cost of an investment in a subsidiary, jointly controlled entity, or associate.

Amendments to PAS 27

Effective January 1, 2009, with earlier application permitted, the amendments to PAS 27 clarify the cost of an investment in a subsidiary, jointly controlled entity, or associate.

Other Notable Revisions

PAS 28 (Amended) on Investments in Associates and Joint Ventures: Effective January 1, 2013
PAS 29 on Financial Reporting in Hyperinflationary Economies: Remains effective as of January 1, 2005

“We encourage all entities to take advantage of these revisions and adopt them at their earliest convenience,” said [Name], Chairman of the PFRS Council. “These revised standards aim to improve the quality and transparency of financial reporting, making it easier for investors and stakeholders to make informed decisions.”

Convergence with International Accounting Standards

The PFRS Council is committed to promoting convergence with international accounting standards and ensuring that Philippine accounting practices are in line with best global practices.

Key Dates

PAS 24 (Revised): Effective January 1, 2011
PAS 27 (Revised): Effective July 1, 2009
Amendments to PAS 27: Effective January 1, 2009
PAS 28 (Amended): Effective January 1, 2013
PAS 29: Remains effective as of January 1, 2005

About the PFRS Council

The Philippine Financial Reporting Standards (PFRS) Council is an independent body established to promote high-quality financial reporting in the Philippines. The council is responsible for developing and issuing accounting standards and guidelines that are relevant to Philippine businesses and stakeholders.