SEC adopts PAS 101, Financial Reporting Standards

 

The Securities and Exchange Commission (SEC) on December 27, 2005 issued SEC Memorandum Circular No. 8 providing guidelines in adopting Philippine Accounting Standards (PAS) by Non-publicly Accountable Entities (NPAEs).  In its circular, it adopted PAS 101 which was approved by the Accounting Standards Council in October 2005.  PAS 101 allows NPAEs not to apply in its general purpose financial statements the new accounting standards that became effective in 2005 (26 in all).  It, however, allows NPAEs the option to also adopt any or all of the new 26 accounting standards in 2005.  For NAPAEs that choose to avail of the option not to adopt the 2005 PAS shall continue to apply the financial reporting standards as of December 31, 2004.