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Accounting and accounting rules in the Philippines

Accounting Rules

Tax Year
The fiscal year begins on 1 January and ends on 31 December of the same year. A different fiscal year may be used.
Accounting Standards
IFRS Standards adopted as Philippines Financial Reporting Standards (PFRS) are required both for domestic and foreign companies. SMEs need to file according to Philippines Financial Reporting Standard for SMEs (locally adopted version of IFRS for SMEs Standard without any modification).
Accounting Regulation Bodies
Accounting Reports
The general balance sheet and/or the declaration written under oath of the non holding of an annual meeting, and the financial statements.
The Philippine Tax Code mandates taxpayers to keep a journal and a ledger or their equivalents.
Publication Requirements
Companies must publish an annual financial report and submit it to the Securities and Exchange Commission (SEC). Corporations, companies, partnerships or persons whose gross quarterly sales, earnings, receipts or output exceed PHP 150,000 are required to have their books of accounts audited and examined yearly by an independent Certified Public Accountant and their income tax returns must be accompanied by audited financial statements.
Professional Accountancy Bodies
Certification and Auditing
Philippines Financial Reporting Standards Council (FRSC), established by the Board of Accountancy (a government agency) in 2006, establishes generally accepted accounting principles in the Philippines. The Philippine Securities and Exchange Commission (SEC) establishes the accounting framework to be used by companies that fall under its regulatory authority (most limited liability companies).
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Latest Update: July 2024