FRSC Invites Comments on Proposals on Disclosures on State-Controlled Entities

The IASB published in 2007 (issued for comment by the FRSC in March 2007) a proposal to exempt state-controlled entities from providing disclosures about transactions with other state-controlled entities if specified conditions were met. However, respondents were concerned about the complexity of the proposals. The IASB has therefore modified its proposed exemption for state-controlled entities and is publishing this revised proposal today.

Unlike the original proposal, the revised exemption would not require state-controlled entities to assess the extent of state influence. It would exempt such entities from providing full details about transactions with other state-controlled entities and the state. Instead, (unlike the 2007 exposure draft) it would require general disclosures about the types and extent of significant transactions.

The FRSC Invitation to Comment and the IASB exposure draft may be downloaded from the Philippine Financial Reporting Standards (PFRS) website, within the PICPA website at www.picpa.com.ph. The exposure draft may also be downloaded from the IASB website at www.iasb.org.

The FRSC invites comments on the exposure draft by February 27, 2009.