Regulatory Alerts2018-01-10
SEC Memorandum Circular No. 1 s.2018: Adoption of Revised Auditing Standards and Amendments to Accounting Standards
The Securities and Exchange Commission of the Philippines issued this circular to formally adopt revised auditing standards and amendments to existing accounting standards into its rules and regulations. The document mandates compliance with specific Philippine Standards on Auditing, including PSAs 800, 805, and 810, which became effective for audit periods ending on or after December 15, 2016. Additionally, it requires entities to apply amendments to PAS 40, PFRS 1, PFRS 12, PAS 28, and IFRIC-22 for annual periods beginning on or after January 1, 2017 or 2018.
[Logo: Securities and Exchange Commission PHILIPPINES]
SEC Memorandum Circular No. 1 Series of 2018
SUBJECT : ADOPTION OF REVISED AUDITING STANDARDS AND AMENDMENTS TO EXISTING ACCOUNTING STANDARDS, AND INTERPRETATIONS
The Commission, in its meeting held on 09 January 2018, approved the adoption of the following pronouncements as part of SEC's rules and regulations on financial reporting:
A. Revised Auditing Standards
| Title | Brief Description |
|---|---|
| Philippine Standards on Auditing 800 (Revised), Special Considerations-Audits of Financial Statements Prepared in Accordance with Special Purpose Framework and Conforming Amendments to PSA 700 (Revised) Forming an Opinion and Reporting on Financial Statements | This PSA is effective for audits of financial statements for periods ending on or after December 15, 2016. PSA 800 (Revised) (2016) supersedes PSA 800 (2009). However, this PSA does not override the requirements of the other PSAs. This PSA does not also purport to deal with all special considerations that may be relevant in the circumstances of the engagement. |
| Philippine Standards on Auditing 805 (Revised), Special Considerations-Audits of Single Financial Statements and Specific Elements, Accounts or Items of a Financial Statements (2016) | This PSA is effective for audits of financial statements for periods ending on or after December 15, 2016. PSA 805 (Revised) (2016) supersedes PSA 805 (2009). |
| Philippine Standards on Auditing 810 (Revised), Engagements to Report on Summary Financial Statements (2016) | This PSA is effective for audits of financial statements for periods ending on or after December 15, 2016. PSA 810 (Revised) (2016) supersedes PSA 810 (2009). |
✉ PICC Secretariat Building, Pasay City | ☎ (+632) 818-6120 / (+632) 818-9763 www.sec.gov.ph | inquiry@sec.gov.ph
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B. Amendments to Existing Accounting Standards, and Interpretations
| Title | Brief Description |
|---|---|
| Transfers of Investment Property (Amendments to PAS 40) | An entity shall apply these amendments for annual periods beginning on or after January 1, 2018. Early adoption of the amendment is permitted. |
| Philippine Interpretation IFRIC-22, Foreign Currency Transactions and Advance Consideration | An entity shall apply this interpretation for annual periods beginning on or after January 1, 2018. Earlier application is permitted. |
| Annual Improvements to Philippine PFRSs 2014-2016 Cycle | The amendments to PFRS 12 are effective for annual periods beginning on or after January 1, 2017 whereas the amendments to PFRS 1 and PAS 28 are effective for annual periods beginning on or after January 1, 2018. |
All of the foregoing pronouncements have been adopted by the Auditing and Assurance Standards Council and Philippine Financial Reporting Standards Council and approved by the Board of Accountancy and Professional Regulation Commission and published in the Official Gazette.
Issued this 09 day of January 2018 at Pasay City, Philippines.
For the Commission:
[Signature] TERESITA J. HERBOSA Chairperson JAN 10 2018
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