The Financial Reporting Standards Council (FRSC), the successor body to the Accounting Standards Council, approved the adoption as part of Philippine Financial Reporting Standards of Philippine Interpretation IFRIC–10, Interim Financial Reporting and Impairment.

Philippine Interpretation IFRIC–10 addresses the apparent conflict between the requirements of PAS 34, Interim Financial Reporting, and those in other standards – PAS 36, Impairment of Assets, and PAS 39, Financial Instruments: Recognition and Measurement – on the recognition and reversal in financial statements of impairment losses on goodwill and certain financial assets.

The Interpretation states that any such impairment losses recognized in an interim financial statement must not be reversed in subsequent interim or annual financial statements. The Interpretation shall be applied for annual periods beginning on or after November 1, 2006.

The Interpretation has been forwarded to the Board of Accountancy and Professional Regulation
Commission for approval.