Background

Philippine Financial and Sustainability Reporting Standards Council (FSRSC) was established in 2004 to assist the Board of Accountancy in carrying out its power and function to promulgate accounting standards in the Philippines. The FSRSC role was expanded in 2022 to include the adoption of sustainability disclosure standards. The Philippine Sustainability Reporting Committee (PSRC) is responsible for this task.

Accounting Standards

The Philippines has adopted IFRS Accounting Standards as Philippine Financial Reporting Standards (PFRSs). The PFRS 17 Insurance Contracts has been deferred from 1 January 2023 to be effective for reporting periods beginning on or after 1 January 2025.

Additionally, the Central Bank and the Securities and Exchange Commission permit some options and temporary reliefs, which are considered a deviation from the requirements of PFRSs. Financial statements prepared applying any of the reliefs are considered prepared in accordance with an industry-specific compliance framework and not PFRSs.

Sustainability Disclosure Standards

In March 2024, the Philippine Financial and Sustainability Reporting Standards Council approved PFRS S1 and PFRS S2 which are aligned with IFRS S1 and S2.

*The information above has been translated and compiled from publicly available sources, including the official websites of relevant institutions and the website of IFRS.