PHILIPPINE INTERPRETATIONS COMMITTEE (PIC)

QUESTIONS AND ANSWERS (Q&As)

Q&A No. 2018-13

Conforming Changes to PIC Q&As – Cycle 2018

Introduction

This Q&A No. 2018-13 sets out the changes (i.e., amendments or withdrawal) to certain PIC
Q&As. These changes are made as a consequence of the issuance of new Philippine Financial
Reporting Standards (PFRSs) that become effective starting January 1, 2018 and other relevant
developments. The consequential amendments are set out in the same section as the
amended PIC Q&As attached to this Q&A No. 2018-13. In addition, a marked-up copy of the
amended PIC Q&A showing the changes made (i.e., new text is underlined and deleted text is
struck through) is attached as an appendix to the amended PIC Q&A.

The effective date of the amendments is included in the affected Q&As.

PIC Q&As Amended

The following table summarizes the changes made to the amended PIC Q&As:

PIC Q&As Amended Amendments

PIC Q&A No. 2009-01: Framework 4.1 and
PAS 1.25 - Financial statements prepared on
a basis other than going concern
References to PAS 39 have been updated to
PFRS 9, Financial Instruments
Updated to include PFRS for Small Entities
as one of the financial reporting frameworks
in the Philippines

PIC Q&A No. 2010-02: PAS 1R.16 – Basis of Updated to include PFRS for Small Entities
preparation of financial statements as one of the financial reporting frameworks
in the Philippines

PIC Q&A No. 2011-03: Accounting for Inter- Updated to comply with the provisions of
company Loans PFRS 9

PIC Q&A No. 2011-04: PAS 32.37-38 – Reference to PAS 39 has been updated to
Costs of Public Offering of Shares PFRS 9
 PIC Q&As Amended Amendments

PIC Q&A No. 2011-05: PFRS 1.D1-D8 – Updated to include PFRS for Small Entities
Fair Value or Revaluation as Deemed Cost as one of the financial reporting frameworks
in the Philippines

Reference to PAS 39 has been updated to

PFRS 9

PIC Q&A No. 2012-01: PFRS 3.2 – Updated to comply with the provisions of
Application of the Pooling of Interests Method PFRS 9
for Business Combinations of Entities under
Common Control in Consolidated Financial
Statements

PIC Q&A No. 2016-02: PAS 32 and PAS 38 Reference to PAS 39 has been updated to
– Accounting Treatment of Club Shares Held PFRS 9
by an Entity

PIC Q&A No. 2016-03: Accounting for Updated definition of revenue based on the
Common Areas and the Related Subsequent provisions of PFRS 15, Revenue from
Costs by Condominium Corporations Contracts with Customers

PIC Q&A No. 2017-05: PFRS 7 – Frequently Updated to comply with the provisions of
asked questions on the disclosure PFRS 9
requirements of financial instruments under
PFRS 7, Financial Instruments: Disclosures

PIC Q&A No. 2018-07: PAS 27 and PAS 28 Updated to comply with the provisions of
- Cost of an associate, joint venture, or PFRS 9
subsidiary in separate financial statements

PIC Q&A Withdrawn

The following table summarizes the basis and effective date of withdrawal of Q&As affected by
new PFRSs:

PIC Q&A Withdrawn Basis for Withdrawal

PIC Q&A No. 2006-01: PAS 18, Appendix, This PIC Q&A is considered withdrawn
paragraph 9 – Revenue recognition for sales starting January 1, 2018, which is the
of property units under pre-completion effective date of PFRS 15.
contracts

Date approved by PIC: June 27, 2018

(Original signed)

PIC Members

Wilson P. Tan, Chairman

Emmanuel Y. Artiza Ma. Gracia F. Casals-Diaz

Chase M. Sarmiento Zaldy D. Aguirre

Wilfredo A. Baltazar Ferdinand George A. Florendo

Gloria T. Baysa Jose Emmanuel U. Hilado

Rosario S. Bernaldo Lyn I. Javier

Ma. Isabel E. Comedia Arnel Onesimo O. Uy

Jerome Antonio B. Constantino Lovely M. Del Amen

Date approved by FRSC: October 10, 2018