The Philippines has three financial reporting frameworks, namely the Philippine Financial Reporting Standards (PFRSs), the Philippine Financial Reporting Standard for Small and Medium-Sized Entities (PFRS for SMEs) and the Philippine Financial Reporting Standard for Small Entities (PFRS for SEs). The Securities and Exchange Commission has the authority to prescribe the financial reporting framework to be used by corporations in the Philippines. These general financial reporting requirements are set out in the Revised Securities Regulation Code (SRC) Rule 68. To access the Revised SRC Rule 68, click here.

For further details on any of the accounting framework, please click the relevant tab below.

  • PFRS
  • PFRS for SMEs
  • PFRS for SEs

About the PIC

The Philippines has adopted the International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board (IASB) as PFRSs. Unaccompanied IFRSs may be downloaded from the IASB website free of charge. Registration in the IASB website is required to access the IFRSs. To access the IASB website, click here.

Adopted to date

The Conceptual Framework for Financial Reporting (Effective date: January 1, 2020)

Philippine Financial Reporting Standards
Number Title Effective date
PFRS 1 (Revised) First-time Adoption of Philippine Financial Reporting Standards July 1, 2009
PFRS 2 Share-based Payment January 1, 2005
PFRS 3 (Revised) Business Combinations July 1, 2009
PFRS 4 Insurance Contracts January 1, 2005
PFRS 5 Non-current Assets Held for Sale and Discontinued Operations January 1, 2005
PFRS 6 Exploration for and Evaluation of Mineral Resources January 1, 2006
PFRS 7 Financial Instruments: Disclosures January 1, 2007
PFRS 8 Operating Segments January 1, 2009
PFRS 9 (2014) Financial Instruments January 1, 2018
PFRS 10 Consolidated Financial Statements January 1, 2013
PFRS 11 Joint Arrangements January 1, 2013
PFRS 12 Disclosure of Interests in Other Entities January 1, 2013
PFRS 13 Fair Value Measurement January 1, 2013
PFRS 14 Regulatory Deferral Accounts January 1, 2016
PFRS 15 Revenue from Contracts with Customers January 1, 2018
PFRS 16 Leases January 1, 2019
PFRS 17 Insurance Contracts January 1, 2025(a)
Philippine Accounting Standards
Number Title Effective date
PAS 1 (Revised) Presentation of Financial Statements January 1, 2009
PAS 2 Inventories January 1, 2005
PAS 7 Statement of Cash Flows January 1, 2005
PAS 8 Accounting Policies, Changes in Accounting Estimates and Errors January 1, 2005
PAS 10 Events after the Reporting Period January 1, 2005
PAS 12 Income Taxes January 1, 2005
PAS 16 Property, Plant and Equipment January 1, 2005
PAS 19 (Revised) Employee Benefits January 1, 2013
PAS 20 Accounting for Government Grants and Disclosure of Government Assistance January 1, 2005
PAS 21 The Effects of Changes in Foreign Exchange Rates January 1, 2005
PAS 23 (Revised) Borrowing Costs January 1, 2009
PAS 24 (Revised) Related Party Disclosures January 1, 2011
PAS 26 Accounting and Reporting by Retirement Benefit Plans January 1, 2005
PAS 27 (Amended) Separate Financial Statements January 1, 2013
PAS 28 (Amended) Investments in Associates and Joint Ventures January 1, 2013
PAS 29 Financial Reporting in Hyperinflationary Economies January 1, 2005
PAS 32 Financial Instruments: Presentation January 1, 2007
PAS 33 Earnings per Share January 1, 2005
PAS 34 Interim Financial Reporting January 1, 2005
PAS 36 Impairment of Assets January 1, 2005
PAS 37 Provisions, Contingent Liabilities and Contingent Assets January 1, 2005
PAS 38 Intangible Assets January 1, 2005
PAS 39 Financial Instruments: Recognition and Measurement January 1, 2005
PAS 40 Investment Property January 1, 2005
PAS 41 Agriculture January 1, 2005
Philippine Interpretations
Number Title Effective date
Philippine Interpretation IFRIC-1 Changes in Existing Decommissioning, Restoration and Similar Liabilities January 1, 2005
Philippine Interpretation IFRIC-2 Members’ Shares in Co-operative Entities and Similar Instruments January 1, 2005
Philippine Interpretation IFRIC-5 Rights to Interests arising from Decommissioning, Restoration and Environmental Rehabilitation Funds January 1, 2006
Philippine Interpretation IFRIC-6 Liabilities arising from Participating in a Specific Market—Waste Electrical and Electronic Equipment December 1, 2005
Philippine Interpretation IFRIC-7 Applying the Restatement Approach under PAS 29 Financial Reporting in Hyperinflationary Economies March 1, 2006
Philippine Interpretation IFRIC-10 Interim Financial Reporting and Impairment November 1, 2006
Philippine Interpretation IFRIC-12 Service Concession Arrangements January 1, 2008
Philippine Interpretation IFRIC-14 PAS 19—The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction January 1, 2008
Philippine Interpretation IFRIC-16 Hedges of a Net Investment in a Foreign Operation October 1, 2008
Philippine Interpretation IFRIC-17 Distributions of Non-cash Assets to Owners July 1, 2009
Philippine Interpretation IFRIC-19 Extinguishing Financial Liabilities with Equity Instruments July 1, 2010
Philippine Interpretation IFRIC-20 Stripping Costs in the Production Phase of a Surface Mine January 1, 2013
Philippine Interpretation IFRIC-21 Levies January 1, 2014
Philippine Interpretation IFRIC-22 Foreign Currency Transactions and Advance Consideration January 1, 2018
Philippine Interpretation IFRIC-23 Uncertainty over Income Tax Treatments January 1, 2019
Philippine Interpretation SIC-7 Introduction of the Euro January 1, 2005
Philippine Interpretation SIC-10 Government Assistance—No Specific Relation to Operating Activities January 1, 2005
Philippine Interpretation SIC-25 Income Taxes—Changes in the Tax Status of an Entity or its Shareholders January 1, 2005
Philippine Interpretation SIC-29 Service Concession Arrangements: Disclosures January 1, 2005
Philippine Interpretation SIC-32 Intangible Assets—Web Site Costs January 1, 2005

(a) On December 15, 2021, the FSRSC amended the mandatory effective date of PFRS 17 from January 1, 2023 to January 1, 2025. This is consistent with Circular Letter No. 2020-62 issued by the Insurance Commission which deferred the implementation of IFRS 17 by two (2) years after its effective date as decided by the IASB.

New Pronouncements

For more information about these new pronouncements, please visit the IASB website.

Philippine Financial Reporting Standards
Pronouncement Date adopted by FSRSC Effective for annual periods beginning on or after
Amendment to PFRS 17, Initial Application of PFRS 17 and PFRS 9 – Comparative Information December 15, 2021 January 1, 2025(a)
Amendments to PAS 12, Deferred Tax related to Assets and Liabilities from a Single Transaction June 9, 2021 January 1, 2023
Amendments to PFRS 16, Covid-19-Related Rent Concessions beyond 30 June 2021 April 14, 2021 April 1, 2021
Amendments to PAS 1 and PFRS Practice Statement 2, Disclosure Initiative – Accounting Policies April 14, 2021 January 1, 2023
Amendments to PAS 8, Definition of Accounting Estimates April 14, 2021 January 1, 2023
Amendments to PFRS 17, Insurance Contracts August 19, 2020 January 1, 2025(a)
Amendments to PFRS 3, Reference to the Conceptual Framework August 19, 2020 January 1, 2022
Amendments to PAS 16, Property, Plant and Equipment – Proceeds before Intended Use August 19, 2020 January 1, 2022
Amendments to PAS 37, Onerous Contracts – Cost of Fulfilling a Contract August 19, 2020 January 1, 2022
Annual Improvements to PFRS Standards 2018-2020 Cycle

  • Amendments to PFRS 1, Subsidiary as a first-time adopter
  • Amendments to PFRS 9, Fees in the ‘10 per cent’ test for derecognition of financial liabilities
  • Amendments to PFRS 16, Lease Incentives
  • Amendments to PAS 41, Taxation in fair value measurements
August 19, 2020 January 1, 2022
Amendments to PFRS 16, COVID-19-related Rent Concessions June 1, 2020 June 1, 2020
Amendments to PAS 1, Classification of Liabilities as Current or Non-current February 12, 2020 / August 19, 2020 January 1, 2023
Amendments to PFRS 3, Definition of a Business November 14, 2018 January 1, 2020
Amendments to PAS 1 and PAS 8, Definition of Material November 14, 2018 January 1, 2020
PFRS 17, Insurance Contracts March 14, 2018 January 1, 2025(a)
Annual Improvements to PFRSs 2015-2017 Cycle

  • Amendments to PFRS 3 and PFRS 11 – Previously held interest in a joint operation
  • Amendments to PAS 12 – Income tax consequences of payments on financial instruments classified as equity
  • Amendments to PAS 23 – Borrowing costs eligible for capitalization
March 14, 2018 January 1, 2019
Amendments to PAS 19, Plan Amendment, Curtailment or Settlement March 14, 2018 January 1, 2019
Amendments to PAS 28, Long-term Interests in Associates and Joint Ventures November 8, 2017 January 1, 2019
Amendments to PFRS 9, Prepayment Features with Negative Compensation November 8, 2017 January 1, 2019
Philippine Interpretation IFRIC-23, Uncertainty over Income Tax Treatments July 12, 2017 January 1, 2019
Philippine Interpretation IFRIC-22, Foreign Currency Transactions and Advance Consideration January 11, 2017 January 1, 2018
Amendments to PAS 40, Transfers of Investment Property January 11, 2017 January 1, 2018
Annual Improvements to PFRSs 2014 – 2016 Cycle

  • Amendment to PFRS 1 – Deletion of short-term exemptions for first-time adopters
  • Amendment to PFRS 12 – Clarification of the scope of the standard
  • Amendment to PAS 28 – Measuring an associate or joint venture at fair value
January 11, 2017 Amendment to PFRS 12 – January 1, 2017

Amendments to PFRS 1 and PAS 28 – January 1, 2018

Amendments to PFRS 15, Clarifications to PFRS 15 December 7, 2016 January 1, 2018
PFRS 15, Revenue from Contracts with Customers December 7, 2016 January 1, 2018
Amendments to PFRS 4, Applying PFRS 9, Financial Instruments with PFRS 4, Insurance Contracts October 12, 2016 January 1, 2018
Amendments to PFRS 2, Classification and Measurement of Share-based Payment Transactions September 14, 2016 January 1, 2018
Amendments to PAS 12, Recognition of Deferred Tax Assets for Unrealized Losses February 17, 2016 January 1, 2017
Amendments to PAS 7, Disclosure Initiative February 17, 2016 January 1, 2017
PFRS 16, Leases February 17, 2016 January 1, 2019
Amendments to PAS 1, Disclosure Initiative February 11, 2015 January 1, 2016
Amendments to PFRS 10, PFRS 12 and PAS 28, Investment Entities: Applying the Consolidation Exception February 11, 2015 January 1, 2016
Annual Improvements to PFRSs 2012 – 2014 Cycle

  • Amendment to PFRS 5: Changes in methods of disposal
  • Amendment to PFRS 7: Servicing contracts
  • Amendment to PFRS 7: Applicability of the amendments to PFRS 7 to condensed interim financial statements
  • Amendment to PAS 19: Discount rate: regional market issue
  • Amendment to PAS 34: Disclosure of information ‘elsewhere in the interim financial report’
October 8, 2014 January 1, 2016
Amendments to PFRS 10 and PAS 28, Sale or Contribution of Assets between an Investor and its Associate or Joint Venture October 8, 2014 Deferred(c)
PFRS 9, Financial Instruments (2014) September 10, 2014 January 1, 2018(b)
Amendments to PAS 27, Equity Method in Separate Financial Statements September 10, 2014 January 1, 2016
Amendments to PAS 16 and PAS 41, Agriculture: Bearer Plants July 9, 2014 January 1, 2016
Amendments to PAS 16 and PAS 38, Clarification of Acceptable Methods of Depreciation and Amortization July 9, 2014 January 1, 2016
PFRS 14, Regulatory Deferral Accounts July 9, 2014 January 1, 2016
Amendments to PFRS 11, Accounting for Acquisitions of Interests in Joint Operations July 9, 2014 January 1, 2016
PFRS 9, Financial Instruments (Hedge Accounting and amendments to PFRS 9, PFRS 7 and PAS 39) December 17, 2013 No mandatory effective date(b)
Annual Improvements to PFRSs 2011 – 2013 Cycle

  • Amendment to PFRS 3: Scope exceptions for joint ventures
  • Amendment to PFRS 13: Portfolio exception
  • Amendment to PAS 40: Clarifying the interrelationship between PFRS 3 and PAS 40 when classifying property as investment property or owner-occupied property
December 17, 2013 July 1, 2014
Annual Improvements to PFRSs 2010 – 2012 Cycle

  • Amendment to PFRS 2: Definition of vesting condition
  • Amendment to PFRS 3: Accounting for contingent consideration in a business combination
  • Amendment to PFRS 8: Aggregation of operating segments
  • Amendment to PFRS 8: Reconciliation of the total of the reportable segments’ assets to the entity’s assets
  • Amendment to PAS 16: Revaluation method – proportionate restatement of accumulated depreciation
  • Amendment to PAS 24: Key management personnel
  • Amendment to PAS 38: Revaluation method – proportionate restatement of accumulated amortization
December 17, 2013 July 1, 2014
Amendments to PAS 19, Defined Benefit Plans: Employee Contributions December 17, 2013 July 1, 2014

(a) On December 15, 2021, the FSRSC amended the mandatory effective date of PFRS 17 from January 1, 2023 to January 1, 2025. This is consistent with Circular Letter No. 2020-62 issued by the Insurance Commission which deferred the implementation of IFRS 17 by two (2) years after its effective date as decided by the IASB.

(b) In November 2009, the IASB issued IFRS 9 (2009), which covers the classification and measurement requirements of financial assets and was adopted by FSRSC as PFRS 9 (2009) on March 8, 2010. In October 2010, the IASB finalized the classification and measurement requirements of financial liabilities and issued IFRS 9 (2010), which was adopted by FSRSC on November 24, 2010 as PFRS 9 (2010). In December 2011, the IASB deferred the mandatory effective date of IFRS 9 from January 1, 2013 to January 1, 2015. The FSRSC followed suit on December 28, 2011. In November 2013, the IASB introduced the new hedge accounting model, removed January 1, 2015 as the mandatory effective date of IFRS 9 and issued IFRS 9 (2013), which the FSRSC adopted as PFRS 9 (2013) on December 17, 2013. In July 2014, the IASB finalized the impairment phase of IFRS 9, introduced limited amendments to the classification and measurement model of financial assets and issued IFRS 9 (2014). IFRS 9 (2014) was adopted by FSRSC as PFRS 9 (2014) on September 10, 2014.

(c) On January 13, 2016, the FSRSC decided to postpone the original effective date of January 1, 2016 of the said amendments until the IASB has completed its broader review of the research project on equity accounting that may result in the simplification of accounting for such transactions and of other aspects of accounting for associates and joint ventures.

Stakeholders

The Philippines has adopted the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs) issued by the IASB as PFRS for SMEs. IFRS for SMEs may be downloaded from the IASB website. Registration in the IASB website is required to access the IFRS for SMEs. To access the IASB website, click here.

PFRS for SMEs consists of the following sections:

  • Section 1 - Small and Medium-sized Entities
  • Section 2 - Concepts and Pervasive Principles
  • Section 3 - Financial Statement Presentation
  • Section 4 - Statement of Financial Position
  • Section 5 - Statement of Comprehensive Income and Income Statement
  • Section 6 - Statement of Changes In Equity and Statement of Income and Retained Earnings
  • Section 7 - Statement of Cash Flows
  • Section 8 - Notes to the Financial Statements
  • Section 9 - Consolidated and Separate Financial Statements
  • Section 10 - Accounting Policies, Estimates and Errors
  • Section 11 - Basic Financial Instruments
  • Section 12 - Other Financial Instruments Issues
  • Section 13 - Inventories
  • Section 14 - Investments in Associates
  • Section 15 - Investments in Joint Ventures
  • Section 16 - Investment Property
  • Section 17 - Property, Plant and Equipment
  • Section 18 - Intangible Assets other than Goodwill
  • Section 19 - Business Combinations and Goodwill
  • Section 20 - Leases
  • Section 21 - Provisions and Contingencies
  • Section 22 - Liabilities and Equity
  • Section 23 - Revenue
  • Section 24 - Government Grants
  • Section 25 - Borrowing Costs
  • Section 26 - Share-based Payment
  • Section 27 - Impairment of Assets
  • Section 28 - Employee Benefits
  • Section 29 - Income Tax
  • Section 30 - Foreign Currency Translation
  • Section 31 - Hyperinflation
  • Section 32 - Events after the end of the Reporting Period
  • Section 33 - Related Party Disclosures
  • Section 34 - Specialized Activities
  • Section 35 - Transition to the PFRS for SMEs

Stakeholders

On December 13, 2017, the FSRSC approved the adoption of PFRS for Small Entities effective for annual periods beginning on or after January 1, 2019. PFRS for SEs can be accessed here.

PFRS for SEs consists of the following sections:

  • Section 1 - Scope of the Framework
  • Section 2 - Concepts and Pervasive Principles
  • Section 3 - Financial Statement Presentation
  • Section 4 - Subsidiaries
  • Section 5 - Accounting Policies, Estimates and Errors
  • Section 6 - Basic Financial Instruments
  • Section 7 - Other Financial Instruments
  • Section 8 - Inventories
  • Section 9 - Investments in Associates
  • Section 10 - Joint Arrangements
  • Section 11 - Investment Property
  • Section 12 - Property, Plant and Equipment
  • Section 13 - Intangible Assets Other than Goodwill
  • Section 14 - Business Combinations and Goodwill
  • Section 15 - Leases
  • Section 16 - Provisions and Contingencies
  • Section 17 - Equity
  • Section 18 - Revenue
  • Section 19 - Borrowing Costs
  • Section 20 - Share-based payment
  • Section 21 - Impairment of Assets
  • Section 22 - Employee Benefits
  • Section 23 - Income Tax
  • Section 24 - Foreign Currency Translation
  • Section 25 - Events after the End of the Reporting Period
  • Section 26 - Related Party Disclosures
  • Section 27 - Biological Assets
  • Section 28 - Government Grants
  • Section 29 - Transition to the Framework