REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE
SECURITIES AND EXCHANGE COMMISSION
SEC Building, EDSA, Greenhills, Mandaluyong City
FINANCIAL REPORTING BULLETINS
The Commission adopts in its rules fnancial reporting and auditing standards that are
based on international standards and best practices. To ensure consistency in the
implementation of the rules and to attain fair presentation and transparency of fnancial
statements, corporations and their accountants/auditors are mandated to faithfully observe
the requirements as provided in the SRC Rule 6, as amended, related Circulars and other
pronouncements of the Commission.
The bulletins are issued by the !"ce of the #eneral $ccountant to assist corporations and
their accountants/auditors in complying %ith their fnancial reporting obligations, and to
ensure consistency of implementation. These bulletins may include &i' clarifcations on
issues pertaining to the implementation of SRC Rule 6, as revised( &ii' responses to
frequently)as*ed questions during the submission of fnancial statements( &iii' vie%s
regarding accounting)related disclosure practices( and &iv' such other information that is
useful to attain consistency in the implementation of the fnancial reporting rules and
regulations of the Commission. +,cluded from coverage are matters not of general
application or those issues specifc to a particular company.
Bulleti
n No.
Date Subjet
Matte!
Cla!i"ation#Detail$
%%& &'
Feb!ua!(
)%&)
SRC Rule
'*+ a$
a,en-e-
.)%&&/
A--itional
o,0onent$
o1 "nanial
$tate,ent$
&-' The additional components that are submitted
%ith the company.s fnancial statements,
forming part thereof, should necessarily be
covered by the Statement of /anagement.s
Responsibility &S/R'. Thus, the frst paragraph
of the S/R must partly read The management
of (name of reporting company) is responsible for
the preparation and fair presentation of the fnancial
statements for the year (s) ended (date), including
the additional components attached therein x
x x.0
&1' The follo%ing additional components, if
applicable to the company, should be covered
by a legal matter paragraph in the $uditor.s
Report or a separate report of auditor on each
component2
i. Schedule of receipts and disbursements of
non)stoc* and non)proft organi3ations
&4art -, 5$'(
ii. Reconciliation of Retained +arnings
$vailable for 6ividend 6eclaration &4art -,
5C'(
iii. Tabular schedule of standards and
interpretations as of reporting date (for
large and/or publicly-accountable entities)(
iv. Supplementary schedules required by
$nne, 6)+ (for issuers of securities to the
public)(
v. $ map of the conglomerate or group of
companies %ithin %hich the reporting
entity belongs &4art -, 57' (for listed
companies and investment houses)
1
Bulleti
n No.
Date Subjet
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Cla!i"ation#Detail$
%%) &'
Feb!ua!(
)%&)
SRC Rule
'*+ a$
a,en-e-
.)%&&/
E,02a$i$ o1
Matte!
0a!a3!a02
1o!
o,0anie$
4it2 a0ital
-e"ien( 5
Pa!t I+
6.B.i7/
Request for $dditional #round for +,emption
8f, other than those specifc e,emptions
provided under subpar. &viii' items &a' to &c'
of 4art 8, par. 9.:&iv', the auditor believes
that the audit report on a company %ith
capital defciency does not %arrant an
emphasis matter paragraph, a confrmation
must be obtained from the Commission
through the submission of a position paper.
$ determination %ill be made by the
Commission %hether the circumstance/s
described in the position paper %ill qualify
under item &d' of the e,emption list ;i.e., such
other cases %hich the Commission may
consider as valid ground for considering the
company as a going concern<.
=or those availing of the e,emption based on
items &a' to &c' or pursuant to an additional
e,emption granted by the Commission, t2e
note$ to t2e "nanial $tate,ent$ $2oul-
inlu-e a -i$lo$u!e o1 t2e ba$i$ 1o! t2e
e8e,0tion.
>ordings of the +mphasis of /atter paragraph
The e,ternal auditor of a company %hich has
incurred a capital defciency, shall provide in the
audit report an emphasis paragraph indicating the
follo%ing information2
&a' The fact that the company has incurred a
capital defciency that raises an issue on its
going concern status(
&b' $ brief discussion of a concrete plan of the
company to address the capital defciency and
reference to the note to fnancial statements
that provides a complete disclosure of the said
plan(
./ A $tate,ent t2at t2e au-ito! on-ute-
$u9ient au-it 0!oe-u!e$ to 7e!i1( t2e
7ali-it( o1 t2e a1o!e,entione- 0lan.
?nder 4S$ @AB, e,ternal auditors are required to
perform additional procedures %hen materiality
uncertainty e,ists as to the ability of the
company to continue as a going concern. Thus,
in lieu of the statement under item &c' above,
the follo%ing provisions consistent %ith 4S$ @AB
provisions, may be indicated2 t2at t2e au-ito!
0e!1o!,e- au-it 0!oe-u!e$ to e7aluate
,ana3e,ent:$ 0lan$ 1o! $u2 1utu!e
ation$ a$ to li;eli2oo- to i,0!o7e t2e
$ituation an- a$ to 1ea$ibilit( un-e! t2e
i!u,$tane$.
%%6 &'
SRC Rule
8nformation required under par. &-'&$'&ii' and &-'
2
Bulleti
n No.
Date Subjet
Matte!
Cla!i"ation#Detail$
Feb!ua!(
)%&)
'*+ a$
a,en-e-
.)%&&/
Di$lo$u!e$
o1
!eei7able$#
0a(able$
4it2 !elate-
0a!tie$
eli,inate-
-u!in3
on$oli-atio
n .Anne8
'*5D/
&='&ii' on receivables/payables %ith related
parties that are eliminated during consolidation,
may be incorporated in the applicable schedules
under $nne, 6)+ of 4art 88.
The subCect information need not be
comparative. 8t shall cover only to those
transactions eliminated at the reporting entity.s
level.
This disclosure requirement is applicable only to
issuers of securities to the public, companies
listed in an e,change and public companies as
provided under 4art 88 of the Rule.
%%< &'
Feb!ua!(
)%&)
Co,0anie$
not o7e!e-
Un-e!
SRC Rule '*
The fnancial statements of companies not
covered by SRC Rule 6 should be accompanied
by a certifcation under oath by the company.s
Treasurer or Chief =inance !"cer. Such =S
should have at least a Statement of =inancial
4osition &:alance Sheet' or a Statement of =und
:alance, 8ncome Statement &or a Statement of
Receipts and 6isbursements' and applicable
e,planatory notes.
%%= &'
Feb!ua!(
)%&)
Co,0anie$
4it2 no
o0e!ation
but a!e
o7e!e-
un-e!
SRC Rule '*
8f no operation only for one &-' year2 a
complete set of audited fnancial statements
must be submitted by the company despite its
non)operation
8f no operation for the last t%o &1' years2 The
8ncome Statement need D!T be included in the
audited fnancial statements
%%'
(as
revise
d)
)< >anua!(
)%&6
(The original
F! "o# $
%as dated
&$ February
'(&')
De0o$it$ 1o!
Futu!e
Sub$!i0tion
$
Setion )).6 o1 PFRS 1o! SME$ an- 0a!. && o1
PAS 6), =inancial 8nstruments2 4resentation, defnes
an equity instrument as Eany contract that evidences
a residual interest in the assets of an entity after
deducting all of its liabilities.0 The standards provide
that Ea contract that %ill be settled by the entity
delivering a f,ed number of its o%n equity
instruments in e,change for a f,ed amount of cash or
another fnancial asset is an equity instrument.0
?nder Setion 6' o1 t2e Co!0o!ation Co-e o1 t2e
P2ili00ine$ &ECode0', a corporation has the po%er to
issue or sell stoc*s to subscribers in accordance %ith
the Code. The requirements for the issuance of
shares are provided under Section 9 of the Code
%hich provides, as follo%s2
?SEC. 6*. Po4e! to in!ea$e o! -e!ea$e
a0ital $to;@ inu!+ !eate o! in!ea$e
bon-e- in-ebte-ne$$. A Do corporation shall
increase or decrease its capital stoc* or incur,
create or increase any bonded indebtedness
unless approved by a maCority vote of the board
of directors and, at a stoc*holdersF meeting duly
called for the purpose, t%o)thirds &1/9' of the
outstanding capital stoc* shall favor the
increase or diminution of the capital stoc*, or
the incurring, creating or increasing of any
bonded indebtedness. >ritten notice of the
proposed increase or diminution of the capital
3
Bulleti
n No.
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Cla!i"ation#Detail$
stoc* or of the incurring, creating, or increasing
of any bonded indebtedness and of the time and
place of the stoc*holdersF meeting at %hich the
proposed increase or diminution of the capital
stoc* or the incurring or increasing of any
bonded indebtedness is to be considered, must
be addressed to each stoc*holder at his place of
residence as sho%n on the boo*s of the
corporation and deposited to the addressee in
the post o"ce %ith postage prepaid, or served
personally.
$ certifcate in duplicate must be signed by a
maCority of the directors of the corporation and
countersigned by the chairman and the
secretary of the stoc*holdersF meeting, setting
forth2
, , , , , ,
$ny increase or decrease in the capital stoc* or
the incurring, creating or increasing of any
bonded indebtedness shall require prior
approval of the Securities and +,change
Commission.0
Considering the requirements of the Corporation Code
on increase in authori3ed capital stoc* and 4$S 91 or
Section 11.9 of 4=RS for S/+s defning an equity
instrument as Eany contract that evidences a residual
interest in the assets of an entity after deducting all of
its liabilities,0 it can be held that the contract or
agreement bet%een the corporation and its
contracting party &i.e., a stoc*holder or an investor'
must create a right in favor of that party to claim over
the residual interest in the net assets of the
corporation. Such right could only arise %hen there
are :oard of 6irectors. and stoc*holders. approvals
and, most importantly, regulatory imprimatur over the
increase in capital stoc*.
8n vie% of the foregoing, an entity shall classify a
contract to deliver its o%n equity instruments under
equity as a separate account &e.g., 6eposit for Stoc*
Subscription' from E!utstanding Capital Stoc*0 if and
only if, all of the follo%ing elements are present as of
end of the reporting period2
&-' T2e uni$$ue- aut2o!iBe- a0ital $to; o1 t2e
entit( i$ in$u9ient to o7e! t2e a,ount o1
$2a!e$ in-iate- in t2e ont!at@
&1' T2e!e i$ Boa!- o1 Di!eto!$: a00!o7al on t2e
0!o0o$e- in!ea$e in aut2o!iBe- a0ital
$to; .1o! 42i2 a -e0o$it 4a$ !eei7e- b(
t2e o!0o!ation/@
&9' T2e!e i$ $to;2ol-e!$: a00!o7al o1 $ai-
0!o0o$e- in!ea$e@ an-
&5' T2e a00liation 1o! t2e a00!o7al o1 t2e
0!o0o$e- in!ea$e 2a$ been "le- 4it2 t2e
Co,,i$$ion.
8t is understood from the foregoing that there is a
subscription agreement %hich, among other things,
states that the corporation is not contractually obliged
to return the consideration received and that the
corporation is obliged to deliver a f,ed number of its
o%n shares of stoc* for a f,ed amount of cash or
property paid or to be paid by the contracting party.
4
Bulleti
n No.
Date Subjet
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Cla!i"ation#Detail$
8n its fnancial statements for the reporting period, the
corporation shall disclose at a minimum the follo%ing
information %ith respect to the subCect transaction,
among other things2
&a' the value received and nature of such
consideration &%hether cash or noncash and if
noncash, the basis of measurement'(
&b' the relationship %ith the contracting party &i.e.,
stoc*holder, investor, or other related party
&indicate relationship'(
&c' the treatment used in the recognition of the
transaction &%hether as an equity or a liability'
and the reason for such recognition(
&d' if the transaction has been recogni3ed as an
equity, the fact that the corporation has met all
the conditions required for such recognition as at
the end of the reporting period &disclose relevant
dates of approvals and fling'(
&e' information about the increase in the authori3ed
capital stoc* &i.e., old and ne% authori3ed capital
stoc*, number of shares, par value per share,
etc.'( and
&f' if the approval is obtained subsequently before
the issuance of the fnancial statements, the date
of the Commission.s approval.
$ll companies that adopted either 4=RS for S/+s or
the full 4=RS as their fnancial reporting frame%or*
should have observed the strict defnition of equity
instruments under Section 11.9 or 4$S 91 that have
been eGective since B- Hanuary 1B-B and B- Hanuary
1BB@, respectively.
%%C 6 A0!il
)%&)
State,ent o1
Mana3e,ent
:$
Re$0on$ibilit
(
.SMR/
&-' =or issuers of securities to the public, the S/R
shall be attached to both the consolidated
fnancial statements and the parent
company.s fnancial statements for fling %ith
the Commission.
&1' 4aragraph &iv' of 4art 8 &1'&:'&iv' of the Rule is
also applicable to representative o"ces
established in the 4hilippines. Thus, the S/R
shall be signed by its local manager or chief
representative in the 4hilippines.
&9' 8f the fnancial statements for fling are
comparative, the S/R has to be comparative,
even if the independent auditors for the
comparative periods are diGerent.
The follo%ing is an illustration on ho% the last
paragraph of the S/R may be %orded in such
a case2
E(name of audit frm) and (indicate
prior year auditor), the independent
auditors appointed by the stoc)holders
for the period *ecember +&, '(&& and
'(&(, respectively, have examined the
consolidated fnancial statements of
the company in accordance %ith
5
Bulleti
n No.
Date Subjet
Matte!
Cla!i"ation#Detail$
,hilippine -tandards on .uditing, and in
their reports to the stoc)holders (or
members), have expressed their
opinion on the fairness of presentation
upon completion of such examination#0
%%* 6 A0!il
)%&)
S,all an-
Me-iu,5
$iBe- Entitie$
.SME$/
?nder 4art 8 &1'&$'&ii'&b' of the Rule, certain types
of S/+s may be e,empted from the mandatory
adoption of the 4hilippine =inancial Reporting
Standard &4=RS' for S/+s and may instead apply,
at their option, full 4=RS. S/+s that availed of
the e,emption and applied the full 4=RS are not
considered as large and/or publicly)accountable
entities, and therefore are not required to fle the
tabular schedule of all eGective standards and
interpretations under the 4=RS as of year)end, as
required under 4art 8 &5'&H' of the Rule.
%%D 6 A0!il
)%&)
Mi!o
Entitie$
&-' ?nder S+CFs Dotice of 8mplementation
#uidelines on 4=RS for S/+s dated =ebruary
I, 1B-B, micro entities have the option to use
any of these bases of accounting in the
preparation of their fnancial statements2 &a'
full 4=RS, &b' 4=RS for S/+s, or &c' another
acceptable basis of accounting.
?nder 4art 8 &1'&$'&iii' of the Rule, micro
entities have the option to use as their
fnancial reporting frame%or* the income ta,
basis, accounting standards in eGect as of
6ecember 9-, 1BB5 or 4=RS for S/+s.
/icro entities %hich have previously adopted
full 4=RSs in accordance %ith S+C.s Dotice of
8mplementation #uidelines on 4=RS for S/+s
dated =ebruary I, 1B-B are allo%ed to
continue the use of full 4=RS. Devertheless,
micro entities may also choose to change
their fnancial reporting frame%or* to one of
the options made available under the Rule.
Such change should be accounted for in
accordance %ith 4$S , .ccounting ,olicies,
/hanges in .ccounting 0stimates and 0rrors#
&1' /icro entities are not required to disclose in
the notes to the fnancial statements their
rationale for choosing a particular fnancial
reporting frame%or* available to them.
&9' /icro entities that continue to use full 4=RS
are not required to fle the tabular schedule of
all the eGective standards and interpretations
under the 4=RS as of year)end as required
under 4art 8 &5'&H' of the Rule.
%&% 6 A0!il
)%&)
Entitie$ in
t2e 0!oe$$
o1 "lin3 t2ei!
"nanial
=inancial statements to be fled by entities for the
purpose of issuing any class of instruments
&%hether shares of stoc* or bonds' in a public
mar*et are required to comply %ith the provisions
6
Bulleti
n No.
Date Subjet
Matte!
Cla!i"ation#Detail$
$tate,ent$
1o! t2e
0u!0o$e o1
i$$uin3 an(
la$$ o1
in$t!u,ent$
.42et2e!
$2a!e$ o1
$to; o!
bon-$/ in a
0ubli
,a!;et
of 4art 88 of the Rule, including $nne,es 6)6 and
6)+. Ji*e%ise, the follo%ing documents are to
be fled %ith the fnancial statements, as required
by 4art 8, Section 5 of the Rule2
(1 8ssuers of securities to the public and stoc*
corporations %ith unrestricted retained
earnings in e,cess of -BBK of paid)in capital
stoc* ) $ Reconciliation of Retained +arnings
$vailable for 6ividend 6eclaration %hich
shall present the prescribed adCustments as
indicated in $nne, 6)C of this Rule.
&1' Jisted companies and investment houses
that are part of a conglomerate or group of
companies ) $ map sho%ing the
relationships bet%een and among the
companies and its ultimate parent company,
middle parent, subsidiaries or co)
subsidiaries, and associates.
&9' Jarge and/or publicly)accountable entities )
$ schedule, in table format, sho%ing in the
frst column a list of all the eGective
standards and interpretations under the
4=RS as of year)end, and an indication
opposite each in the second column on
%hether it is L$doptedL. LDot adoptedL or
LDot applicableL.
The above components should be covered by an
auditor.s report.
%&& 6 A0!il
)%&)
Non5$to;
an- non5
0!o"t
o!3aniBation
$
The provisions of 4art 8 &9'&iv'&v' of the Rule,
regarding capital defciency, shall not be
applicable to non)stoc* and non)proft orga)
ni3ations %ith negative fund balance.
%&) 6 A0!il
)%&)
Anne8 '*5E E
S2e-ule A.
Finanial
A$$et$
.I$$ue!$ o1
Seu!itie$ to
t2e Publi/
The schedule shall be applicable for $vailable)=or)
Sale &$=S', =air Malue through 4roft or Joss
&=M4J' and 7eld)to)/aturity &7T/' investments.
Joans and Receivables shall be included in the
schedule only if the information requirements are
applicable.
=or e,ample, trade receivables of a reporting
entity need not be included in this Schedule $ but
Jong)term Commercial 4apers classifed under
Joans and Receivables shall be included.
Bulleti
n No.
Date Subjet
Matte!
Cla!i"ation#Detail$
&6 )< >anua!(
)%&6
P!e$entation
o1 Relate-
Pa!t(
Di$lo$u!e$
4hilippine $ccounting Standard &4$S' 15 provides that
an entity should disclose information about the
transactions and outstanding balances necessary for
an understanding of the potential eGect of the
relationship on the fnancial statements
-
. $t a
!
minimum, the disclosures shall include2
&a' the amount of the transactions(
&b' the amount of outstanding balances and their
terms and conditions, including %hether they
are secured, and the nature of the consideration
to be provided in settlement, and details of any
guarantees given or received(
&c' provisions for doubtful debts related to the
amount of outstanding balances(
&d' the e,pense recogni3ed during the period in
respect of bad or doubtful debts due from
related parties.
1
4$S 15 also provides that the said disclosures shall be
made separately for each of the follo%ing categories2
&a' the parent( &b' entities %ith Coint control or
signifcant inNuence over the entity( &c' subsidiaries(
&d' associates( &e' Coint ventures in %hich the entity is
a venture( &f' *ey management personnel of the entity
or its parent( and &g' other related parties.
9

To attain the obCective of 4$S 15 of providing an
understanding of the potential eGect of the
relationship on the fnancial statements, the follo%ing
requirements under the said standard must be
observed by corporations2
-. The required disclosures on transactions and
outstanding balances shall be made separately for
each of the follo%ing categories2 &a' the parent( &b'
entities %ith Coint control or signifcant inNuence
over the entity( &c' subsidiaries( &d' associates( &e'
Coint ventures in %hich the entity is a venture( &f'
*ey management personnel of the entity or its
parent( and &g' other related parties.
1. =or each of said category, the follo%ing information
shall be provided2
&a' the amount of the transactions(
&b' the amount of outstanding balances and their
terms and conditions, including %hether they
are secured, and the nature of the
consideration to be provided in settlement, and
details of any guarantees given or received(
&c' provisions for doubtful debts related to the
amount of outstanding balances(
&d' the e,pense recogni3ed during the period in
respect of bad or doubtful debts due from
related parties.
9. The presentation shall be made in columnar format
according to the above categories and disclosure
items.
Bulleti
n No.
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&< )< >anua!(
)%&6
P!e$entation
Reoniliation
o1 Retaine-
Ea!nin3$
?nder paragraph 5&C' of SRC Rule 6, as amended,
issuers of securities to the public, and stoc* corporations
%ith unrestricted retained earnings in e,cess of -BBK of
paid)in capital stoc*, are mandated to submit %ith their
audited fnancial statements a econciliation of
etained 0arnings .vailable for *ividend *eclaration
%hich should present the prescribed adCustments as
1
"aragra#h 1! o$ "AS 24%
2
"aragra#h 1! o$ "AS 24%
3
"aragra#h 1& o$ "AS 24%
&
indicated in $nne, 6)C of the Rule.
The amount of retained earnings of a company should
be based on its separate &Estand alone0' fnancial
statements and not on its consolidated fnancial
statements if it is a parent company. This is because
the retained earnings based on the consolidated
fnancial statements include surplus of the subsidiaries
%hich are not yet actual earnings of the parent unless
released by the subsidiaries in the form of dividends.
The reconciliation of retained earnings of the parent
company shall ho%ever, be submitted %ith the
consolidated fnancial statements pursuant to SRC
Rule 6, as amended.
To avoid inconsistencies in the balances, the
Reconciliation should be presented as follo%s2
8tems $mount
Una00!o0!iate- Retaine- Ea!nin3$+
be3innin3
4 , , ,
A-ju$t,ent$F
(see ad1ustments in previous year2s
econciliation)
, , ,
Una00!o0!iate- Retaine- Ea!nin3$+ a$
a-ju$te-+ be3innin3
4 , , ,
Net Ino,e ba$e- on t2e 1ae o1 AFS
Le$$F Non5atual#un!ealiBe- ino,e
net o1 ta8
+quity in net income of
associate/Coint venture
?nreali3ed foreign e,change gain )
net &e,cept those attributable to
Cash and Cash +quivalents'
?nreali3ed actuarial gain
=air value adCustment &/1/ gains'
=air value adCustment of 8nvestment
4roperty resulting to gain $dCustment
due to deviation from 4=RS/#$$4)
gain
!ther unreali3ed gains or
adCustments to the retained earnings
as a result of certain transactions
accounted for under the 4=RS
A--F Non5atual lo$$e$
6epreciation on revaluation
increment &after ta,'
$dCustment due to deviation from
4=RS/#$$4 O loss
Joss on fair value adCustment of
investment property &after ta,'
Net Ino,e Atual#RealiBe-
4 , , ,
Una00!o0!iate- Retaine- Ea!nin3$+ a$
a-ju$te-+ en-in3
4 , , ,
Bulleti
n No.
Date Subjet
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Cla!i"ation#Detail$
&= )< >anua!(
)%&6
A00!o0!iation
o1 Retaine-
Ea!nin3$ 1o!
Bu$ine$$
E80an$ion
4$S - prescribes that the notes to fnancial statements
of corporations shall disclose among others,
information that is relevant to an understanding of the
fnancial statements.
=or corporations %ith e,cess retained earnings, their
fnancial statements must contain relevant information
'
in connection %ith Section 59 of the Corporation Code
&the ECode0' %hich provides in part2
Stoc* corporations are prohibited from
retaining surplus profts in e,cess of one
hundred &-BBK' percent of their paid)in
capital stoc*, e,cept2
a. %hen justifed by defnite
corporate expansion projects or
programs approved by the
board of directors( or
b. %hen the corporation is prohibited
under any loan agreement %ith any
fnancial institution or creditor,
%hether local or foreign, from
declaring dividends %ithout its
consent, and such consent has not
yet been secured( or
c. %hen it can be clearly sho%n that
such retention is necessary under
special circumstances obtaining in
the corporation, such as %hen there
is need for special reserve for
probable contingencies.0 &emphasis,
ours'
The above provisions indicate that the retention for
e,pansion proCects must be defnite and approved by
the :oard of 6irectors.
4ursuant to 4$S -, the follo%ing disclosures are
relevant to provide an understanding on the impact of
the retention of earnings on the fnancial statements
and thus, must be provided therein2
&. Detail$ o1 t2e e80an$ion .e.3.+ -e$!i0tion o1
t2e 0!ojet+ ti,eline/ to !en-e! t2e 0!ojet
-e"nite@
). T2e -ate o1 t2e a00!o7al b( t2e Boa!- o1
Di!eto!$ o1 t2e 0!ojet.
Bulleti
n No.
Date Subjet
Matte!
Cla!i"ation#Detail$
&' )< >anua!(
)%&6
Li$t o1
EGeti7e
Stan-a!-$ an-
Inte!0!etation
$ .a$ o1
Dee,be! 6&+
)%&)/
?nder paragraph 5&H' of SRC Rule 6, as amended, large
and/or publicly)accountable entities are required to
submit %ith their audited fnancial statements a
schedule, in table format, sho%ing in the frst column a
list of all the eGective standards and interpretations
under the 4=RS as of year)end, and an indication
opposite each in the second column on %hether it is
E$dopted3, E"ot adopted3 or "ot applicable3.
To comply %ith the said requirement, the follo%ing list
must be accomplished, audited by the company.s
e,ternal auditor and submitted %ith annual fnancial
1(
statements2
COMPANH NAME
PHILIPPINE FINANCIAL REPORTING STANDARDS AND
INTERPRETATIONS
EGeti7e a$ o1 Dee,be! 6&+ )%&)
A-o0te
-
Not
A-o0te
-
Not
A00liable
F!a,e4o!; 1o! t2e P!e0a!ation an- P!e$entation o1
Finanial State,ent$
Conceptual =rame%or* 4hase $2 !bCectives and qualitative
characteristics
PFRS$ P!atie State,ent Mana3e,ent Co,,enta!(
P2ili00ine Finanial Re0o!tin3 Stan-a!-$
PFRS &
.Re7i$e-/
=irst)time $doption of 4hilippine =inancial Reporting
Standards
$mendments to 4=RS - and 4$S 1A2 Cost of an
8nvestment in a Subsidiary, Hointly Controlled +ntity or
$ssociate
$mendments to 4=RS -2 $dditional +,emptions for
=irst)time $dopters
$mendment to 4=RS -2 Jimited +,emption from
Comparative 4=RS A 6isclosures for =irst)time
$dopters
$mendments to 4=RS -2 Severe 7yperinNation and
Removal of =i,ed 6ate for =irst)time $dopters
$mendments to 4=RS -2 #overnment Joans
PFRS ) Share)based 4ayment
$mendments to 4=RS 12 Mesting Conditions and
Cancellations
$mendments to 4=RS 12 #roup Cash)settled Share)
based 4ayment Transactions
PFRS 6
.Re7i$e-/
:usiness Combinations
PFRS < 8nsurance Contracts
$mendments to 4$S 9I and 4=RS 52 =inancial
#uarantee Contracts
PFRS = Don)current $ssets 7eld for Sale and 6iscontinued
!perations
PFRS ' +,ploration for and +valuation of /ineral Resources
PFRS C =inancial 8nstruments2 6isclosures
$mendments to 4=RS A2 Transition
$mendments to 4$S 9I and 4=RS A2 Reclassifcation of
=inancial $ssets
$mendments to 4$S 9I and 4=RS A2 Reclassifcation of
=inancial $ssets ) +Gective 6ate and Transition
$mendments to 4=RS A2 8mproving 6isclosures about
=inancial 8nstruments
$mendments to 4=RS A2 6isclosures ) Transfers of
=inancial $ssets
$mendments to 4=RS A2 6isclosures O !Gsetting
=inancial $ssets and =inancial Jiabilities
$mendments to 4=RS A2 /andatory +Gective 6ate of
4=RS I and Transition 6isclosures
PFRS * !perating Segments
PFRS D =inancial 8nstruments
$mendments to 4=RS I2 /andatory +Gective 6ate of
4=RS I and Transition 6isclosures
11
PHILIPPINE FINANCIAL REPORTING STANDARDS AND
INTERPRETATIONS
EGeti7e a$ o1 Dee,be! 6&+ )%&)
A-o0te
-
Not
A-o0te
-
Not
A00liable
PFRS &% Consolidated =inancial Statements
PFRS && Hoint $rrangements
PFRS &) 6isclosure of 8nterests in !ther +ntities
PFRS &6 =air Malue /easurement
P2ili00ine Aountin3 Stan-a!-$
PAS &
.Re7i$e-/
4resentation of =inancial Statements
$mendment to 4$S -2 Capital 6isclosures
$mendments to 4$S 91 and 4$S -2 4uttable =inancial
8nstruments and !bligations $rising on Jiquidation
$mendments to 4$S -2 4resentation of 8tems of !ther
Comprehensive 8ncome
PAS ) 8nventories
PAS C Statement of Cash =lo%s
PAS * $ccounting 4olicies, Changes in $ccounting +stimates
and +rrors
PAS &% +vents after the :alance Sheet 6ate
PAS && Construction Contracts
PAS &) 8ncome Ta,es
$mendment to 4$S -1 ) 6eferred Ta,2 Recovery of
?nderlying $ssets
PAS &' 4roperty, 4lant and +quipment
PAS &C Jeases
PAS &* Revenue
PAS &D +mployee :enefts
$mendments to 4$S -I2 $ctuarial #ains and Josses,
#roup 4lans and 6isclosures
PAS &D
.A,en-e
-/
+mployee :enefts
PAS )% $ccounting for #overnment #rants and 6isclosure of
#overnment $ssistance
PAS )& The +Gects of Changes in =oreign +,change Rates
$mendment2 Det 8nvestment in a =oreign !peration
PAS )6
.Re7i$e-/
:orro%ing Costs
PAS )<
.Re7i$e-/
Related 4arty 6isclosures
PAS )' $ccounting and Reporting by Retirement :eneft 4lans
PAS )C
.A,en-e
-/
Separate =inancial Statements
PAS )*
.A,en-e
-/
8nvestments in $ssociates and Hoint Mentures
PAS )D =inancial Reporting in 7yperinNationary +conomies
PAS 6& 8nterests in Hoint Mentures
PAS 6) =inancial 8nstruments2 6isclosure and 4resentation
$mendments to 4$S 91 and 4$S -2 4uttable =inancial
8nstruments and !bligations $rising on Jiquidation
$mendment to 4$S 912 Classifcation of Rights 8ssues
$mendments to 4$S 912 !Gsetting =inancial $ssets
and =inancial Jiabilities
12
PHILIPPINE FINANCIAL REPORTING STANDARDS AND
INTERPRETATIONS
EGeti7e a$ o1 Dee,be! 6&+ )%&)
A-o0te
-
Not
A-o0te
-
Not
A00liable
PAS 66 +arnings per Share
PAS 6< 8nterim =inancial Reporting
PAS 6' 8mpairment of $ssets
PAS 6C 4rovisions, Contingent Jiabilities and Contingent
$ssets
PAS 6* 8ntangible $ssets
PAS 6D =inancial 8nstruments2 Recognition and /easurement
$mendments to 4$S 9I2 Transition and 8nitial
Recognition of =inancial $ssets and =inancial Jiabilities
$mendments to 4$S 9I2 Cash =lo% 7edge $ccounting
of =orecast 8ntragroup Transactions
$mendments to 4$S 9I2 The =air Malue !ption
$mendments to 4$S 9I and 4=RS 52 =inancial
#uarantee Contracts
$mendments to 4$S 9I and 4=RS A2 Reclassifcation of
=inancial $ssets
$mendments to 4$S 9I and 4=RS A2 Reclassifcation of
=inancial $ssets O +Gective 6ate and Transition
$mendments to 4hilippine 8nterpretation 8=R8COI and
4$S 9I2 +mbedded 6erivatives
$mendment to 4$S 9I2 +ligible 7edged 8tems
PAS <% 8nvestment 4roperty
PAS <& $griculture
P2ili00ine Inte!0!etation$
IFRIC & Changes in +,isting 6ecommissioning, Restoration
and Similar Jiabilities
IFRIC ) /embersF Share in Co)operative +ntities and Similar
8nstruments
IFRIC < 6etermining >hether an $rrangement Contains a
Jease
IFRIC = Rights to 8nterests arising from 6ecommissioning,
Restoration and +nvironmental Rehabilitation =unds
IFRIC ' Jiabilities arising from 4articipating in a Specifc
/ar*et ) >aste +lectrical and +lectronic +quipment
IFRIC C $pplying the Restatement $pproach under 4$S 1I
=inancial Reporting in 7yperinNationary +conomies
IFRIC * -cope of ,F- '
IFRIC D Reassessment of +mbedded 6erivatives
$mendments to 4hilippine 8nterpretation 8=R8COI and
4$S 9I2 +mbedded 6erivatives
IFRIC &% 4nterim Financial eporting and 4mpairment
IFRIC && 4=RS 1) #roup and Treasury Share Transactions
IFRIC &) Service Concession $rrangements
IFRIC &6 Customer Joyalty 4rogrammes
IFRIC &< The Jimit on a 6efned :eneft $sset, /inimum
=unding Requirements and their 8nteraction
$mendments to 4hilippine 8nterpretations 8=R8C) -5,
4repayments of a /inimum =unding Requirement
IFRIC &' 7edges of a Det 8nvestment in a =oreign !peration
IFRIC &C 6istributions of Don)cash $ssets to !%ners
IFRIC &* Transfers of $ssets from Customers
IFRIC &D +,tinguishing =inancial Jiabilities %ith +quity
13
PHILIPPINE FINANCIAL REPORTING STANDARDS AND
INTERPRETATIONS
EGeti7e a$ o1 Dee,be! 6&+ )%&)
A-o0te
-
Not
A-o0te
-
Not
A00liable
8nstruments
IFRIC )% Stripping Costs in the 4roduction 4hase of a Surface
/ine
SIC5C 8ntroduction of the +uro
SIC5&% #overnment $ssistance ) Do Specifc Relation to
!perating $ctivities
SIC5&) Consolidation ) Special 4urpose +ntities
$mendment to S8C ) -12 Scope of S8C -1
SIC5&6 Hointly Controlled +ntities ) Don)/onetary
Contributions by Menturers
SIC5&= !perating Jeases ) 8ncentives
SIC5)& 8ncome Ta,es ) Recovery of Revalued Don)6epreciable
$ssets
SIC5)= 8ncome Ta,es ) Changes in the Ta, Status of an +ntity
or its Shareholders
SIC5)C +valuating the Substance of Transactions 8nvolving
the Jegal =orm of a Jease
SIC5)D Service Concession $rrangements2 6isclosures.
SIC56& Revenue ) :arter Transactions 8nvolving $dvertising
Services
SIC56) 8ntangible $ssets ) >eb Site Costs
14
Bulleti
n No.
Date Subjet
Matte!
Cla!i"ation#Detail$
%&C %C Ma!2
)%&6
Ne4l(5
!e3i$te!e-
Co!0o!ation$

?nder Section -5- of the Corporation Code, every corporation, domestic
or foreign, la%fully doing business in the 4hilippines shall submit to the
Securities and +,change Commission an annual report of its operations,
together %ith a fnancial statement of its assets and liabilities, certifed
by any independent certifed public accountant in appropriate cases,
covering the preceding fscal year and such other requirements as the
Securities and +,change Commission may require. Such report shall be
submitted %ithin such period as may be prescribed by the Securities and
+,change Commission.

$ threshold for the submission of the said audited fnancial statements is
indicated in Section A@ of the Code, as follo%s2

ES+C. A@. ight to fnancial statements# 5 >ithin ten &-B'
days from receipt of a %ritten request of any stoc*holder or
member, the corporation shall furnish to him its most recent
fnancial statement, %hich shall include a balance sheet as
of the end of the last ta,able year and a proft or loss
statement for said ta,able year, sho%ing in reasonable
detail its assets and liabilities and the result of its
operations.

$t the regular meeting of stoc*holders or members, the
board of directors or trustees shall present to such
stoc*holders or members a fnancial report of the operations
of the corporation for the preceding year, %hich shall
include fnancial statements, duly signed and certifed by an
independent certifed public accountant.

7o%ever, if the paid)up capital of the corporation is less
than 4@B,BBB.BB the fnancial statements may be certifed
under oath by the treasurer or any responsible o"cer of the
corporation.0

+,cept for the above limitation on the coverage of entities %hose fnancial
report must be audited, the provisions of the Corporation Code do not grant
any e,emption from the required submission of annual fnancial statements
&$=S'. The fling requirement is applicable to all corporations and
organi3ations registered %ith the Commission as of the fscal year end
including those ne%ly incorporated during the said year.

Corporations %ith fscal year of 9- 6ecember that %ere registered during the
last preceding year, regardless of the date of incorporation, must submit
their $=S in accordance %ith the $nnual Schedule of =iling of =inancial
Statements indicated in the applicable Circular of the Commission &for 1B-1
$=S, S+C /emorandum Circular Do. A, Series of 1B-1 is applicable'. =or those
%ith fscal year other than 9- 6ecember, their frst $=S shall be due %ithin
-1B days after the end of their fscal year.0
15