Regulatory Alerts2020-12-17
SEC MC No. 34 s. 2020 — Deferral of PIC Q&A No. 2018-12 and IFRIC Agenda Decision for Real Estate Industry
The Securities and Exchange Commission issued Memorandum Circular No. 34 series of 2020 to grant the real estate industry a three-year deferral until December 31, 2023, for the implementation of specific accounting pronouncements. This relief extends previous deferrals regarding PIC Q&A No. 2018-12 and the IFRIC Agenda Decision on Over Time Transfer of Constructed Goods under PAS 23, addressing unresolved issues on significant financing components, land exclusion in percentage of completion calculations, and borrowing costs. Companies availing of this relief must disclose the modified basis of preparation in their financial statements and ensure auditors include an Emphasis of Matter paragraph highlighting the deviation from standard Philippine Financial Reporting Standards.