SEC launches accounting standards website

The Securities and Exchange Commission, together with the Asian Development Bank and several accounting profession groups, launched yesterday the accounting standards website as part of its efforts to improve the quality of financial reporting in the Philippines.

The Philippine Institute of Certified Public Accountants (PICPA) and the Board of Accountancy also helped in coming out with the website. The project was conceptualized in October 2002 under the auspices of a steering committee headed by SEC Associate Commissioner Joselia Poblador.

Supported by a grant from the ADB, the website highlights the transition from the old US-based accounting standards to the now more acceptable international accounting standards.

The website features comprehensive information on the basis for the country’s adoption of the international accounting standards (IAS), the different agencies and organizations involved, the accounting standards and their schedule of adoption, the pertinent exposure drafts, as well as the training sessions and materials in relation to the standards.

The SEC, as a member of the International Organization of Securities Commissions (IOSCO) is bound by an agreement to adopt IAS in order to ensure high quality, transparent financial reporting with full disclosure as a means to promote credibility and efficiency in the capital markets. Its adoption of these standards is likewise in line with its advocacy for good corporate governance. SEC launches move totally to the IAS.

PICA, on the other hand, is a member of the International Accouting Standards Council (IASC), which is committed to support the work of the IASC and to encourage compliance with the IAS.

The move to the use of IAS was due to the onset of cross-border securities trading, investments and similar transactions worldwide. This emphasized the need to use common standards and rules in the presentation of financial reports. These reports disclose information used not only by corporate management but also by the public in making investment decisions.

The SEC said the availability of such information is fundamental to the efficient operations of capital markets. – Zinnia dela Peña