A publication about developments in Philippine taxation. The contents usually include latest Republic Acts, Bureau of Internal Revenue issuances, Customs regulations, Court decisions, BSP circulars, SEC circulars, Department of Justice opinions and Executive Orders relevant to Tax practice.
In July 2009, the International Accounting Standards Board (IASB) issued the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs) in response to strong international support from the world’s national accounting standardsetters for the IASB to develop global standards for SMEs.
The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) (‘the Boards’) have proposed to require all leases to be reported on balance sheet. The impact on lessee financial reporting, asset financing, IT, systems and controls could be substantial.
Prior to 2014, IAS 41, Agriculture, required all ‘bearer’ biological assets and the produce growing on the bearer plant (or ‘consumable’) related to agricultural activity to be measured generally at fair value less cost to sell. This is based on the principle that the biological transformation of biological assets is best reflected by fair value measurement. IAS 41 further defines biological transformation as “the processes of growth, degeneration, production, and procreation that cause qualitative or quantitative changes in a biological asset”.
Investments in other entities would include investments in subsidiaries, associates and joint ventures. Under PAS 27 – Separate Financial Statements (FS), the current applicable standard, these investments should be accounted for atcost, or in accordance with PFRS 9, as long as an entity would apply the same accounting for each category of investments.
Why PAS 19? Philippine Accounting Standard (PAS) 19 applies to all types of employee benefits, although it is in the area of accounting for defined benefit pension plans that PAS 19 results in most complexity.
The global economic power shift away from established advanced economies in North America, Western Europe and Japan will continue over the next 35 years – despite a projected slowdown in Chinese growth after around 2020.
One of the new interpretations that came into effect for 2014 is IFRIC 21 ‘Levies’. It was published by the IFRS Interpretations Committee (IC) in May 2013 to address diversity in practice in the recognition of the liability to pay a levy.
Updates, reiterations and clarifications on selected topics
Amid yuletide celebrations, Philippine entities are busy closing their books of accounts for 2014. We take this opportunity to point out some key issues that are worthy to remember.