Client Advisory Letters

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.

Latest issue

Disclosure initiative: Improving the effectiveness of disclosure in financial reporting

06 May 2016

In December 2014, the International Accounting Standards Board (IASB) issued amendments to IAS 1, ‘Presentation of Financial Statements’. These amendments clarify guidance in IAS 1 on materiality and aggregation, the presentation of subtotals, the structure of financial statements and the disclosure of accounting policies. The amendments form a part of the IASB’s Disclosure Initiative, which explores how disclosures in International Financial Reporting Standards (IFRS) financial reporting can be improved.

Previous issues

Disclosure initiative: Improving the effectiveness of disclosure in financial reporting

In December 2014, the International Accounting Standards Board (IASB) issued amendments to IAS 1, ‘Presentation of Financial Statements’. These amendments clarify guidance in IAS 1 on materiality and aggregation, the presentation of subtotals, the structure of financial statements and the disclosure of accounting policies. The amendments form a part of the IASB’s Disclosure Initiative, which explores how disclosures in International Financial Reporting Standards (IFRS) financial reporting can be improved.

Amendments to IFRS 11, ‘Joint arrangements’ for acquisitions of interest in joint operations (CAL March 2016)

The International Accounting Standards Board has amended International Financial Reporting Standard (IFRS) 11, Joint Arrangements, to provide specific guidance on accounting for the acquisition of an interest in a joint operation (‘JO’) that is a business. The amendments address diversity in practice related to the accounting for these transactions.

New PFRSs for 2016 (CAL February 2016)

This series of articles will outline the new standards and interpretations under Philippine Financial Reporting Standards (PFRS) that will come into effect for 2016 year ends. Part one will cover Annual Improvements to PFRSs 2012-2014 Cycle.

IFRS 16 - Leases (CAL January 2016)

On 13 January 2016, the International Accounting Standards Board (IASB) finished its long-standing project on lease accounting and published IFRS 16, ‘Leases’, which replaces the current guidance in IAS 17. This will require far-reaching changes in accounting by lessees in particular.

IASB postpones effective date of amendments to IFRS 10 and IAS 28 (CAL December 2015)

The International Accounting Standards Board (IASB) has postponed the date when entities must change some aspects of how they account for transactions between investors and associates or joint ventures.

Shaping the future of insurance accounting (CAL November 2015)

According to the International Accounting Standards Board (IASB), “the insurance industry is an important and increasingly international industry and insurance contracts expose entities to long term and uncertain obligations.

Defined benefit plans: Amendments to PAS 19, ‘Employee contributions’ (CAL October 2015)

This amendment clarifies the application of PAS 19, ‘Employee contributions’ (2011) - referred to as ‘PAS 19R’, to plans that require employees or third parties to contribute towards the cost of benefits. The amendment does not affect the accounting for voluntary contributions.

Clarifying depreciation and amortization methods (CAL September 2015)

Over the years, there are questions on acceptable accounting methods for depreciation and amortization. IAS 16, Property, plant and equipment, and IAS 38, Intangible assets, define depreciation and amortization, respectively, as the systematic allocation of the cost of the asset after deducting its residual value over its expected useful life.

Amendments to the IFRS for SMEs - Client Advisory Letter August 2015 issue (CAL August 2015)

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 future of lease accounting (CAL July 2015)

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.