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JK&C LIBRARYSEC Memorandum Circular No. 2, s. 2004

Document Number
SEC Memorandum Circular No. 2, s. 2004
Date Issued
2004-01-02
Status
Current

Overview

SEC Memorandum Circular No. 2, series of 2004, concerns the adoption of the Statements of Financial Accounting Standards for financial reporting purposes.
The circular provides guidance on the use and application of the Statements of Financial Accounting Standards in the preparation and presentation of financial statements by entities covered by the regulatory requirements of the Securities and Exchange Commission.
The adoption of these standards supports consistency and uniformity in financial reporting and accounting practices.

Full Text

Overview

Document Number
SEC Memorandum Circular No. 2, s. 2004
Date Issued
January 2, 2004
Status
Current

SEC Memorandum Circular No. 2, series of 2004, concerns the adoption of the Statements of Financial Accounting Standards for financial reporting purposes. The circular provides guidance on the use and application of the Statements of Financial Accounting Standards in the preparation and presentation of financial statements by entities covered by the regulatory requirements of the Securities and Exchange Commission. The adoption of these standards supports consistency and uniformity in financial reporting and accounting practices.

Short Title / Subject

Adoption of the Statements of Financial Accounting Standards

Full Text

Republic of the Philippines

SECURITIES AND EXCHANGE COMMISSION

SEC Building, EDSA, Greenhills 

Mandaluyong City

SEC MEMORANDUM CIRCULAR NO. 2

Series of 2004

SUBJECT:          ADOPTION OF THE STATEMENTS OF FINANCIAL ACCOUNTING STANDARDS

          The Commission, in its Resolution No. 23 Series of 2004 dated January 15, 2004, approved the adoption in its rules and regulations of the following Statements of Financial Accounting Standards (SFAS), as approved by the Professional Regulation Commission through the Board of Accountancy after the same were approved by the Accounting Standards Council:

SFAS/IAS  No.

Title

12

Income Taxes

Establishes rules that will:

-     Accrue deferred tax asset or liability for nearly all taxable differences

-     Accrue unused tax losses and tax credits if it is probable that they will be realized

-     Use tax rates expected at settlement

17

Leases

Establishes rules that:

-     Lessee should capitalize a finance lease at the lower of the fair value and the present value of the minimum lease payments

-      Rental payments should be split into (i) a reduction of liability, and (ii) a finance charge designed to reduce in line with the liability.

-       Lessee should expense operating lease payments Require enhanced disclosures by lessees, including disclosure of rental expenses, sublease rentals, and a description of leasing arrangements.

-           Require enhanced disclosures by lessors, such as disclosure about future minimum rentals and amounts of contingent rentals included in net profit or loss.

26         Accounting and Reporting by Retirement Benefit Plan Establishes separate standards for reporting by defined benefit plans and by defined contribution plans.

These are all effective for financial reporting periods beginning January 1, 2004. 

Copies thereof are available at the offices of the Philippine Institute of Certified Public Accountants (PICPA).

          This Memorandum Circular shall take effect fifteen (15) days following its publication in a newspaper of general circulation.

Issued this 22 day of January 2004 at EDSA, Greenhills, Mandaluyong City.

LILIA R. BAUTISTA

Chairperson     

Official PDF

2004MCno02.pdf

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Source

Official URL: https://www.sec.gov.ph/mc-2004/sec-memorandum-circular-no-02-11/#gsc.tab=0

Citation

Securities and Exchange Commission (SEC), Memorandum Circular, SEC Memorandum Circular No. 2, s. 2004, SEC Memorandum Circular No. 2, s. 2004, 2004-01-02

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Source

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Citation

Securities and Exchange Commission (SEC), Memorandum Circular, SEC Memorandum Circular No. 2, s. 2004, SEC Memorandum Circular No. 2, s. 2004, 2004-01-02