Accounting Alert Booklet - Compliance with New IFRSs by Philippine Companies

To Our Clients and Friends

The Accounting Standards Council recently approved 26 new accounting standards that are adopted from new International Financial Reporting Standards (IFRSs) and revised International Accounting Standards (IASs) issued by the International Accounting Standards Board. The new standards are effective in the Philippines beginning January 1, 2005, which is also the time when Philippine companies are required to transition to full IFRSs. The Securities and Exchange Commission and the Bangko Sentral ng Pilipinas have issued rules requiring companies under their jurisdiction to implement and comply with the new standards.

Many of the new accounting standards are difficult to understand, more so to apply. Companies will have to dedicate time and personnel to study the accounting standards to ensure proper and effective implementation.

To assist clients and friends of Punongbayan & Araullo in gaining an initial understanding of the new accounting standards, the Firm has prepared this Accounting Alert which presents, among other things, an overview of the new accounting requirements and issues that management should consider in transitioning to the IFRSs.

The Firm’s partners and staff shall be glad to assist you in understanding the new accounting standards and implementing their requirements in your respective organizations.