ACCOUNTING STANDARDS FOR 2016

The three standards setting and interpretation organizations in the Philippines that recommend the standards, rules and interpretative pronouncements on accountancy and auditing have been busy in 2016.  These three organizations are the Financial Reporting Standards Council (FRSC), the Auditing and Assurance Standards Council (AASC), and the PHILIPPINE  Interpretation Council (PIC).  These are mandated under the Accountancy Law and the implementing rules to recommend to the Boart of Accountancy the standards and interpretation thereof for the BoA approval. The Chairman of the councils are Roberto Manabat for the AASC, David Balangue for the FRSC, and Wilson Tan for the  PIC.

In 2016, the following standards and pronouncements were recommended to and approved by the BoA, and subsequently published prior to effectivity.

BoA Resolution 69 dated March 23, 2016 (Published last July 18, 2016)

  • Effective date of amendments to PFRS 10, Consolidated Financial Statements and PAS 28, Investments in Associates and Joint Ventures
  • Philippine Interpretations Committee (PIC) Q&A No. 2015-01 Conforming Changes to PIC Q&As – Cycle 2015
  • PIC Guidance on Financial Reporting

BoA Resolution 124-2016 dated May 23, 2016  (Published in Official Gazette on September 12, 2016)

  • PFRS 16, Leases
  • Amendments to PAS 7, Disclosure Initiative
  • Amendments to PAS 12, Recognition of Deferred Tax Assets for Unrealized Losses

 Boa Resolution 154-2016  dated August 2016 (Published in the Official Gazette on October 10, 2016)

  • Amendments to  PFRS 10, PFRS 12 and PAS 28
  • Amendments to PAS 1
  • Philippine Interpretations Committee PIC Q&A:
  • PIC Financial Reporting Guidance on Addressing Common Pitfalls and Application issues on Cash Flows Statement.

BoA Resolution 125-2016 dated may 23, 2016   (Published in the Official Gazette on October 3, 2016)

  • PSA 700 (Revised), Forming an Opinion and Reporting on Financial Statements
  • PSA 701 (Revised), Communicating Key Audit Matters in the Independent Auditor’s Report
  • PSA 705 (Revised), Modifications to the Opinion in the Independent Auditor’s Report
  • PSA 706 (Revised), Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Report
  • PSA 720 (Revised), The Auditor’s Responsibilities Relating to Other Information
  • PSA 570 (Revised) Going Concern
  • PSA 260 (Revised) Communications with those charged with governance

BoA Resolution 70-2016 dated March 23, 2016  (Published in the Official Gazette on September 5, 2016)

  • PSA 610 (Revised) Using the Work of Internal Auditors and Related Working Arrangements
  • PSAE 3410 Assurance Statements on Greenhouse Financial Statements
  • PSRS 4410 (Revised) Compilation Engagements
  • PSRE 2410 (Revised) Engagements to Review Historical Financial Statements

Copies of these standards and interpretative pronouncements can be dowmloaded for the websites of the two councils (www.aasc.org.ph  and  http://www.picpa.com.ph/frsc.html?article=Philippine%20Financial%20Reporting%20Standards&page=FRSC&main_menu=PFRSs )