MANILA, Philippines - The Bangko Sentral ng Pilipinas (BSP) on Tuesday said its policy-making arm, the Monetary Board, has approved the deferment of the mandatory effectivity date of the Philippine Financial Reporting Standards 9 (PFRS 9) Financial Instruments by another two years to 2015 after the additional issuance and amendments recently to the International Financial Reporting Standards (IFRS).
BSP said the deferment indicates its "commitment to continuously align existing regulations with globally accepted standards (as well) as promote fairness, transparency and comparability in financial reporting through the adoption of IFRS/International Accounting Standards." The effectivity date was previously set on January 1, 2013.
The BSP is also granting regulatory relief to the early adopters of the new accounting standards for 2012 and 2014 to reflect the impact of their early adoption in their books.
The transition relief will give banks and other BSP-supervised financial institutions more time to assess the implications of adopting PFRS 9 on their accounting and information systems, ahead of the mandatory deadline of January 1, 2013.
BSP Circular No. 708 or the classification and measurement of financial assets under PFRS 9, has been expanded to include the classification and measurement of both financial assets and financial liabilities, in keeping with the provisions of PFRS 9.
Banks and other BSP-supervised financial institutions are given the option of adopting the provisions of PFRS 9 (or 2009 version) on financial assets or PFRS 9 (2010) on both financial assets and financial liabilities, prior to its mandatory effectivity date of January 1, 2015.
As an incentive, the BSP has approved the grant of regulatory relief to 2012 and 2014 early adopters, which will allow banks enough time to assess the implications of adopting PFRS 9 on their accounting and …