Compliance with IAS

The Philippine Financial Reporting Standards (PFRS)/Philippine Accounting Standards (PAS) are the new set of Generally Accepted Accounting Principles (GAAP) issued by the Accounting Standards Council (ASC) to govern the preparation of financial statements. These standards are patterned after the revised International Financial Reporting Standards (IFRS) and International Accounting Standards (IAS) issued by the International Accounting Standards Board (IASB).

The Bangko Sentral ng Pilipinas (BSP) pronounced its adoption of the PFRS/PAS effective the annual financial statements beginning 1 January 2005 in its Memorandum to All Banks and Other BSP Supervised Financial Institutions dated 11 January 2005. The adoption of the new set of standards is aimed at promoting fairness, transparency and accuracy in financial reporting.

The BSP in its Circular No. 494 dated 20 September 2005, emphasized that as a general rule, financial institutions shall comply in all respect with the provisions of PFRS/PAS in preparing both their audited financial statements and the financial statements for prudential reporting.

The only instances where a different accounting treatment is prescribed for prudential reporting (reports submitted to BSP) are: (1) in preparing consolidated financial statements, only financial allied subsidiaries, except subsidiary insurance companies, shall be consolidated on a line-by-line basis; and (2) in setting the allowance for probable losses on loans, the BSP prescribed valuation reserves shall be complied with. The accounting treatment for prudential reporting aims to ensure that the financial statements provide a suitable basis for measuring banking risks and banking ratios.

NEWS RELEASES

• 9 May 2008 - BSP Approves Financial Reporting Package for Trust Institutions
• 16 January 2007 - BSP Exempts Reclassification of Foreign Currency Denominated Philippine National Government (NG) / BSP Bonds from “Tainting” Rule
• 2 January 2007 - Adoption of PFRS/PAS has Minimal Impact on Universal/Commercial Banking Industry
• 15 March 2006 - BSP Amends Accounting Guidelines for Appraisal Increment and ROPA
• 27 January 2006 - Guidelines on Banks' Participation in the Domestic Debt Exchange Offer of the Republic of the Philippines
• 20 January 2006 - BSP to Issue New Financial Reporting Package for Banks
• 23 December 2005 - Amendments to the Accounting Guidelines on the Sale of NPAs to SPVs and Qualified Individuals for Housing
• 23 August 2005 - BSP Sets Guidelines in Adopting PFRS/PAS
• 23 December 2004 - BSP to Adopt IAS by 2005
• 23 December 2004 - BSP Amends Rules on Accounting for Investments in Securities

REGULATIONS

Reportorial Requirements

• Circular No. 609 dated 26 May 2008 - Financial Reporting Package for Trust Institutions
• Memorandum No. M-2008-012 dated 14 March 2008 - Amendments to the Financial Reporting Package and Additional Reporting Guidelines
• Circular No. 601 dated 13 February 2008 - Amendments to Foreign Currency Cover Requirements Under Circular No. 1389, as amended, and Other Related Regulations Under the Manual of Regulations for Banks and Revised Report on Foreign Currency Cover
• Memorandum No. M-2008-005 dated 4 February 2008 - Guidelines on the Submission of the Disclosure Statement on SPV Transactions
• Memorandum No. M-2007-044 dated 27 December 2007 - Frequently Asked Questions (FAQs) on the Financial Reporting Package (FRP)
• Circular No. 576 dated 8 August 2007 - Amendments to Subsection X162.9 of the Manual of Regulations for Banks on the Publication/Posting of Balance Sheet
• Circular No. 568 dated 8 May 2007 - Amendments to Circular No. 512 on the Financial Reporting Package
  
• Circular No. 512 dated 3 February 2006 - Issuance of the new Financial Reporting Package (FRP) for banks in line with the adoption of the Philippine Financial Reporting Standards (PFRS) and Philippine Accounting Standards (PAS)
• Memorandum to All Banks and Non-Bank Financial Institutions with Quasi-Banking Functions dated 02 December 2005 - Amendments to the Accounting Guidelines on the Sale of NPAs to SPV and to Qualified Individuals for Housing Under the SPV Act of 2002
• Memorandum to All Banks and Other BSP Supervised Financial Institutions dated 23 November 2005 - Re-classification of investment in debt and equity securities between categories
• Circular No. 494 dated 20 September 2005 - Guidelines on the Adoption of Philippine Financial Reporting Standards and Philippine Accounting Standards
• Circular No. 476 dated 16 February 2005 - Revised rules and regulations to govern accounting for investments in debt and equity securities
• Memorandum to All Banks and Other BSP Supervised Financial Institutions dated 11 January 2005 - Adoption of the Accounting Standards Council (ASC) approved Philippine Accounting Standards (PAS) and Philippine Financial Reporting Standards (PFRS) based on the International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB)

Accounting Guidelines

• Memorandum No. M-2008-010 dated 7 March 2008 - Guidelines on the Accounting Treatment for Investments in CLNs and Other Structured Products
• Circular No. 572 dated 21 June 2007 - Guidelines in Accounting for Government Grants with Nil or Low Interest Rates
• Circular No. 558 dated 22 January 2007 - Guidelines on Foreign Currency Denominated Philippine National Government (NG)/BSP Bonds/Debt Securities Booked Under Held to Maturity (HTM) Category
• Circular No. 555 dated 12 January 2007 - Amendment to Circular No. 520 on the Timing of Booking of Real and Other Properties Acquired (ROPA)
• Circular No. 546 dated 21 September 2006 - Participation in the Global Bond Offering of the Republic of the Philippines
• Circular No. 520 dated 20 March 2006 - Amendments to Circular No. 494 on the Accounting for Appraisal Increment Reserves and Real and Other Properties Acquired
• Circular No. 509 dated 1 February 2006 - Participation in the Domestic Debt Exchange Offer of the Republic of the Philippines
• Circular No. 506 dated 23 December 2005 - Amendments to Circular Nos. 360 and 466 on the Capital/ Accounting Treatment of Certain Financial Instruments