SEC MEMO : No 8 Series of 2020 ADOPTION OF ACCOUNTING STANDARDS AND PHILIPPINE INTERPRETATIONS COMMITTEE QUESTIONS AND ANSWERS (PIC Q&As)

Here is the list of pronouncements and their effectivity dates as approved by the Commission last March 12, 2020

A. Accounting Standards.

Effective for annual periods beginning on or after January 1, 2019.

• Amendments to PAS 19, Plan Amendment, Curtailment or Settlement
• Annual Improvements to PFRSs 2015-2017 Cycle
• Philippine Interpretation IFRIC 23, Uncertainty over Income Tax Treatments

Effective for annual periods beginning on or after January 1,2020.

• Amendments to PFRS 3, Definition of a Business
• Amendments to PAS 1 and PAS 8, Definition of Material

Effective for annual periods beginning on or after January 1, 2021.

• PFRS 17, Insurance Contracts

B. PIC Q&A's

The consensus in this Q&A is effective from the date of the approval by the FRSC.(Mar 14, 2018)

• PIC Q&A No. 2018-01, PAS 8 - Voluntary changes in accounting policy
• PIC Q&A No. 2018-02, PAS 36-Non-controlling interests and goodwill impairment test
• PIC Q&A No. 2018-03, PFRS 13, PAS 16 and PAS 36-Fair value of property, plant and equipment and depreciated replacement cost
• PIC Q&A No. 2018-04, PAS 41 -Inability to measure fair value reliably for biological assets within the scope of PAS 41, Agriculture
• PIC Q&A No. 2018-05, PAS 37-Liability arising from maintenance requirement of an asset held under a lease
• PIC Q&A No. 2018-06, PAS 27-Cost of investment in subsidiaries in separate financial statements when pooling is applied in consolidated financial statements
• PIC Q&A No. 2018-07, PAS 27and PAS 28 -Cost of an associate, joint venture, or subsidiary in separate financial statements
• PIC Q&A No. 2018-08, PFRS 10 and PFRS 3-Accounting for the acquisition of a non-wholly owned subsidiary that is not a business
• PIC Q&A No. 2018-09, PAS 21-Classification of deposits and progress payments as monetary or non-monetary items
• PIC Q&A No. 2018-10, PAS 2-Scope of disclosure of inventory write-downs
• PIC Q&A No. 2018-11, Classification of land by real estate developer

The effective date of the amendments is included in the Q&As affected.

• PIC Q&A No. 2018-13, Conforming Changes to PIC Q&As –Cycle 2018
• PIC Guidance of Financial Reporting June 2018.

The effective date and transition provision of this Q&A follow those of PFRS 15 Appendix C, upon approval by the FRSC (Oct 10, 2018).

• PIC Q&A No. 2018–14, PFRS 15 -Accounting for Cancellation of Real Estate Sales

The consensus in this Q&A is effective from the date of approval of the FRSC (Oct 10, 2018) and should follow the provisions under PAS 8, Accounting Policies, Changes in Accounting Estimates and Errors

• PIC Q&A No. 2018–15, PAS 1-Classification of Advances to Contractors in the Nature of Prepayments: Current vs. Non-current

Download PDF MC No. 04 s.2020