Philippine Interpretations Committee (PIC) pronouncements include the PIC Questions and Answers (PIC Q&As), the Financial Reporting Guidance (FRG), and Others.

  • PIC Q&A
  • FRG
  • Others

About the PIC

The main product of the work of the PIC is the PIC Questions and Answers (Q&As). These PIC Q&As make reference to the related paragraphs in the Philippine Financial Reporting Standards (PFRSs). The issues and the background of such are discussed thoroughly, ending with a consensus that lead to their resolution and, hence, a clearer guidance in the implementation of the standards.

PIC Q&A Compilation (June 2024)

The latest compilation of existing PIC Q&As (as of June 2024) can be accessed here.

List of PIC Q&As issued:

2024

PIC Q&A No. 2024-01 Accounting for Experience Refund or No-Claims Bonus
PIC Q&A No. 2024-02 Conforming Changes to PIC Q&As - Cycle 2024
PIC Q&A No. 2024-03 Allocation of Transaction Price for Bundled Contracts under PFRS 15

2023

PIC Q&A No. 2023-01 Conforming Changes to PIC Q&As - Cycle 2023
PIC Q&A No. 2023-02 Certain topics under PFRS 17, Insurance Contracts

2022

PIC Q&A No. 2022-01 Use of Going Concern Basis by an Absorbed Entity in a Merger Transaction (PAS 1, Presentation of Financial Statements)
PIC Q&A No. 2022-02 Disclosure of Accounting Principles (Amendments to IAS 1 and IFRS Practice Statement 2)
PIC Q&A No. 2022-03 Conforming Changes to PIC Q&As Cycle 2022
PIC Q&A No. 2022-04 PFRS 9 Business Model Assessment Practical Issues
PIC Q&A No. 2022-05 Accounting by a Representative Office of Remittances from its Foreign Head Office

2020

PIC Q&A No. 2020-01 Conforming Changes to PIC Q&As – Cycle 2020
PIC Q&A No. 2020-02 Conclusion on PIC QA 2018-12E: On certain materials delivered on site but not yet installed
PIC Q&A No. 2020-03 Q&A No. 2018-12-D: STEP 3 – On the accounting of the difference when the percentage of completion is ahead of the buyer’s payment
PIC Q&A No. 2020-04 PFRS 15 – Step 3 – Requires an Entity to Determine the Transaction Price for the Contract (Addendum to PIC Q&A 2018-12-D)
PIC Q&A No. 2020-05 PFRS 15 – Accounting for Cancellation of Real Estate Sales (Supersedes PIC Q&A 2018-14)
PIC Q&A No. 2020-06 PFRS 16 Accounting for payments between and among lessors and lessees
PIC Q&A No. 2020-07 PAS 12 – Accounting for the Proposed Changes in Income Tax Rates under the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE) Bill

2019

PIC Q&A No. 2019-01 (amended August 2022) Accounting for service charges under PFRS 15, Revenue from Contracts with Customers
PIC Q&A No. 2019-02 Accounting for cryptographic assets
PIC Q&A No. 2019-03 Revenue recognition guidance for sugar millers
PIC Q&A No. 2019-04 Conforming Changes to PIC Q&As – Cycle 2019
PIC Q&A No. 2019-06 Accounting for step acquisition of a subsidiary in a parent’s separate financial statements
PIC Q&A No. 2019-07 Classification of Members’ Capital Contributions of Non-Stock Savings and Loan Associations (NSSLA)
PIC Q&A No. 2019-08 Accounting for Asset Retirement or Restoration Obligation with the Adoption of PFRS 16, Leases
PIC Q&A No. 2019-09 Accounting for Prepaid Rent or Rent Liability Arising from Straight-lining under PAS 17 on Transition to PFRS 16 and the Related Deferred Tax Effects
PIC Q&A No. 2019-10 Accounting for variable payments with rent review
PIC Q&A No. 2019-11 Determining the current portion of an amortizing loan/lease liability
PIC Q&A No. 2019-12 Determining the lease term under PFRS 16, Leases
PIC Q&A No. 2019-13 Determining the lease term of leases that are renewable subject to mutual agreement of the lessor and the lessee

2018

PIC Q&A No. 2018-01 PAS 8 – Voluntary changes in accounting policy
PIC Q&A No. 2018-02 PAS 36 – Non-controlling interests and goodwill impairment test
PIC Q&A No. 2018-03 PFRS 13, PAS 16 and PAS 36 – Fair value of property, plant and equipment and depreciated replacement cost
PIC Q&A No. 2018-04 PAS 41 – Inability to measure fair value reliably for biological assets within the scope of PAS 41, Agriculture
PIC Q&A No. 2018-05 PAS 37 – Liability arising from maintenance requirement of an asset held under a lease
PIC Q&A No. 2018-06 PAS 27 – Cost of investment in subsidiaries in separate financial statements when pooling is applied in consolidated financial statements
PIC Q&A No. 2018-07 PAS 27 and PAS 28 – Cost of an associate, joint venture, or subsidiary in separate financial statements [Amended by PIC Q&A No. 2018-13]
PIC Q&A No. 2018-08 PFRS 10 and PFRS 3 – Accounting for the acquisition of a non-wholly owned subsidiary that is not a business
PIC Q&A No. 2018-09 PAS 21 – Classification of deposits and progress payments as monetary or nonmonetary items
PIC Q&A No. 2018-10 PAS 2 – Scope of disclosure of inventory write-downs
PIC Q&A No. 2018-11 Classification of land by real estate developer
PIC Q&A No. 2018-12 PFRS 15 implementation issues affecting the real estate industry
PIC Q&A No. 2018-13 Conforming Changes to PIC Q&As – Cycle 2018
PIC Q&A No. 2018-14 PFRS 15 – Accounting for Cancellation of Real Estate Sales (Withdrawn by PIC Q&A No. 2020-05)
PIC Q&A No. 2018-15 PAS 1- Classification of Advances to Contractors in the Nature of Prepayments: Current vs. Non-current
PIC Q&A No. 2018-16 PFRS 13 – Level of fair value hierarchy of government securities using Bloomberg’s standard rule on fair value hierarchy

2017

PIC Q&A No. 2017-01 Conforming Changes to PIC Q&As – Cycle 2017
PIC Q&A No. 2017-02 PAS 2 and PAS 16 – Capitalization of operating lease cost as part of construction costs of a building
PIC Q&A No. 2017-03 PAS 28 – Elimination of profits and losses resulting from transactions between associates and/or joint ventures
PIC Q&A No. 2017-04 PAS 24 – Related party relationships between parents, subsidiary, associate and non-controlling shareholder
PIC Q&A No. 2017-05 PFRS 7 – Frequently asked questions on the disclosure requirements of financial instruments under PFRS 7, Financial Instruments: Disclosures [Amended by PIC Q&A No. 2018-13]
PIC Q&A No. 2017-06 PAS 2, 16 and 40 – Accounting for collector’s items
PIC Q&A No. 2017-07 PFRS 10 – Accounting for reciprocal holdings in associates and joint ventures
PIC Q&A No. 2017-08 PFRS 10 – Requirement to prepare consolidated financial statements where an entity disposes of its single investment in a subsidiary, associate or joint venture
PIC Q&A No. 2017-09 PAS 17 and Philippine Interpretation SIC-15 – Accounting for payments between and among lessors and lessees [withdrawn by PIC Q&A No. 2020-06]
PIC Q&A No. 2017-10 PAS 40 – Separation of property and classification as investment property
PIC Q&A No. 2017-11 PFRS 10 and PAS 32 – Transaction costs incurred to acquire outstanding non-controlling interest or to sell non-controlling interest without a loss of control
PIC Q&A No. 2017-12 Subsequent Treatment of Equity Component Arising from Intercompany Loans

2016

PIC Q&A No. 2016-01 Conforming Changes to PIC Q&As – Cycle 2016
PIC Q&A No. 2016-02 PAS 32 and PAS 38 – Accounting Treatment of Club Shares Held by an Entity [Amended by PIC Q&A No. 2018-13]
PIC Q&A No. 2016-03 Accounting for Common Areas and the Related Subsequent Costs by Condominium Corporations [Amended by PIC Q&A No. 2018-13]
PIC Q&A No. 2016-04 Application of PFRS 15 “Revenue from Contracts with Customers” on Sale of Residential Properties under Pre-completion Contracts

2015

PIC Q&A No. 2015-01 Conforming Changes to PIC Q&As – Cycle 2015

2013

PIC Q&A No. 2013-01 Applicability of SMEIG Final Q&As on the application of IFRS for SMEs to Philippine SMEs [Withdrawn by PIC Q&A No. 2017-01]
PIC Q&A No. 2013-02 Conforming Changes to PIC Q&As – Cycle 2013
PIC Q&A No. 2013-03 PAS 19 – Accounting for Employee Benefits under a Defined Contribution Plan subject to Requirements of Republic Act (RA) 7641, The Philippine Retirement Law
PIC Q&A No. 2013-03 (Revised) PAS 19 – Accounting for Employee Benefits under a Defined Contribution Plan subject to Requirements of Republic Act (RA) 7641, The Philippine Retirement Law

2012

PIC Q&A No. 2012-01 PFRS 3.2 – Application of the Pooling of Interests Method for Business Combinations of Entities under Common Control in Consolidated Financial Statements [Amended by PIC Q&A No. 2015-01 and PIC Q&A No. 2018-13]
PIC Q&A No. 2012-02 Cost of a new building constructed on the site of a previous building

2011

PIC Q&A No. 2011-01 PAS 1 – Requirements for a Third Statement of Financial Position [Withdrawn by PIC Q&A No. 2013-02]
PIC Q&A No. 2011-02 PFRS 3.2 – Common Control Business Combinations
PIC Q&A No. 2011-03 Accounting for Inter-company Loans [Amended by PIC Q&A No. 2015-01 and PIC Q&A No. 2018-13]
PIC Q&A No. 2011-04 PAS 32.37-38 – Costs of Public Offering of Shares [Amended by PIC Q&A No. 2018-13]
PIC Q&A No. 2011-05 PFRS 1.D1-D8 – Fair Value or Revaluation as Deemed Cost [Amended by PIC Q&A No. 2016-01 and PIC Q&A No. 2018-13]
PIC Q&A No. 2011-06 Acquisition of investment properties – asset acquisition or business combination? [Withdrawn by PIC Q&A 2020-01]

2010

PIC Q&A No. 2010-01 PAS 39.AG71-72 – Rate used in determining the fair value of government securities [Withdrawn by PIC Q&A No. 2013-02]
PIC Q&A No. 2010-02 PAS 1R.16 – Basis of preparation of financial statements [Amended by PIC Q&A No. 2017-01 and PIC Q&A No. 2018-13]
PIC Q&A No. 2010-03 Current/non-current classification of a callable term loan

2009

PIC Q&A No. 2009-01 Framework, paragraph 23 and PAS 1.23 – Financial statements prepared on a basis other than going concern [Amended by PIC Q&A No. 2013-02 and PIC Q&A No. 2018-13]
PIC Q&A No. 2009-02 PAS 39.AG71-72: Rate used in determining the fair value of government securities in the Philippines [Superseded by PIC Q&A No. 2010-01]

2008

PIC Q&A No. 2008-01 PAS 19.78 – Rate used in discounting post-employment benefit obligations [Superseded by PIC Q&A No. 2008-01 (Revised)]
PIC Q&A No. 2008-01 (Revised) PAS 19.78 – Rate used in discounting post-employment benefit obligations [Amended by PIC Q&A No. 2016-01]
PIC Q&A No. 2008-02 PAS 20.43 – Accounting for government loans with low interest rates under the amendments to PAS 20 [Withdrawn by PIC Q&A No. 2016-01]

2007

PIC Q&A No. 2007-01 PAS 1.103(a) – Basis of preparation of financial statements if an entity has not applied PFRSs in full [Superseded by PIC Q&A No. 2010-02]
PIC Q&A No. 2007-02 PAS 20.24.37 and PAS 39.43 – Accounting for government loans with low interest rates [See PIC Q&A  No. 2008-02]
PIC Q&A No. 2007-03 PAS 40.27 – Valuation of bank real and other properties acquired (ROPA)
PIC Q&A No. 2007-04 PAS 101.7 – Application of criteria for a qualifying NPAE [Withdrawn by PIC Q&A No. 2013-02]

2006

PIC Q&A No. 2006-01 PAS 18, Appendix, paragraph 9 – Revenue recognition for sales of property units under pre-completion contracts [Withdrawn by PIC Q&A No. 2018-13]
PIC Q&A No. 2006-02 PAS 27.10(d) – Clarification of criteria for exemption from presenting consolidated financial statements [Amended by PIC Q&A No. 2013-02 and PIC Q&A No. 2017-01]

FRG

The FRG publication contains guidance on recurring financial reporting issues which is, in large part, based on the final decisions and rejection notices of the IFRS Interpretations Committee (IFRIC). The FRG as of June 2024 can be accessed here

Others

Other PIC pronouncemens include PIC Q&As on emerging issues, guidance on common pitfalls and application issues, and letters to industry sectors and professional organizations about implementation issues of PFRSs.

Pronouncement Date adopted/approved by the FSRSC
February 11, 2015
February 11, 2015
  • PIC Letters to the real Estate Industry on PFRS 15 implementation issues

Annexes:

 February 11, 2015