The Securities and Exchange Commission (SEC), the Board of Accountancy (BOA) and Professional Regulation Commission (PRC), and the Bangko Sentral ng Pilipinas (BSP) have approved the adoption of new and revised accounting standards approved by the Accounting Standards Council (ASC) effective in 2005 (see related News Release “ASC Approves Issuance
of New and Revised Accounting Standards Effective in 2005”).

The Securities and Exchange Commission (SEC) announced in Circular Memorandum 19, series of 2004 (http://www.sec.gov.ph/circulars/cy,2004/sec-memo-19,s2004.pdf) the approval of the adoption in its rules and regulations of the new and revised Standards. The new Standards are effective for annual financial reporting periods beginning January 1, 2005 and for interim or quarterly reports beginning January 1, 2006. With respect to PAS 39, Financial Instruments: Recognition and Measurement, the SEC has also announced that comparative information for prior years is optional and that the status of conversion plan by the covered companies concerned must be discussed in their 2005 interim/quarterly reports.

The Board of Accountancy and Professional Regulation Commission has signed Resolutions approving the adoption of the new and revised Standards effective for annual reporting periods beginning on or after January 1, 2005.

The Monetary Board (MB) also announced its approval of the adoption of the new and revised Standards in the financial industry effective for annual financial statements for 2005 (http://www.bsp.gov.ph/news/2004-12/news-12232004c.htm). To give financial institutions effectively a full year to comply with the requirements of the Standards, the BSP has decided that
interim financial reports submitted to the BSP need not be immediately in compliance with the requirements of the Standards. Further, audited financial reports for comparative purposes need not be restated in so far as the provisions of PAS 32 and PAS 39 (on financial instruments) are concerned.