The Financial Reporting Standards Council (FRSC) of the Philippines is the regulatory body task with the establishment of generally accepted accounting principles in the Philippines.
The FRSC is the successor of the Accounting Standards Council (ASC). The ASC was created in November 1981 by the Philippine Institute of Certified Public Accountants (PICPA) to establish generally accepted accounting principles in the Philippines. The FRSC carries on the decision made by the ASC to converge Philippine accounting standards with international accounting standards issued by the International Accounting Standards Board (IASB).
Currently, Philippines through the Securities and Exchange Commission allows 3 financial reporting framework to be used depending on the type and sizes of entities as follows:
Each of the 3 types of entities described above follows different applicable financial reporting framework in accordance with the Securities Regulation Code (SRC) Rule 68, As amended and promulgated by SEC.
- Philippine Financial Reporting Standards (PFRS)
- Philippine Financial Reporting Standards for Small and Medium-sized Entities (PFRS for SMEs)
- Other (income tax basis, accounting standards in effect as of December 31, 2004 or PFRS for SMEs).
Accounting Standards in the Philippines are adopted from the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB). Philippine Financial Reporting Standards (PFRS) are issued by the Financial Reporting Standard Council (FRSC).