Deferment of the Implementation of IFRS Interpretations Committee Agenda Decision on Over Time Transfer of Constructed Goods [PAS 23-Borrowing Cost] for Real Estate Industry

February 21, 2020SEC MEMORANDUM CIRCULAR NO. 04-20SUBJECT:Deferment of the Implementation of IFRS Interpretations Committee ("IFRIC") Agenda Decision on Over Time Transfer of Constructed Goods [Philippine Accounting Standards (PAS) 23-Borrowing Cost] for Real Estate Industry WHEREAS, on 15 August 2017, the Commission approved the adoption of PFRS No. 15, Revenue from Contracts with Customers, effective for annual reporting periods beginning on or after January 1, 2018, as part of its financial reporting rules. WHEREAS, the IFRIC in its Agenda Decision dated March 2019, concluded that the principles and requirements in PAS 23 provide an adequate basis for an entity to determine whether to capitalize borrowing costs in the fact pattern described therein.WHEREAS, the Real Estate Industry raised implementation issues and requested to defer the implementation of the IFRIC interpretations to thoroughly study the possible impact to the operation and financial reporting of real estate companies.WHEREAS, the Commission took note of the significant impact and difficulties faced by the Real Estate Industry in immediately implementing the said pronouncement.NOW, THEREFORE, the Commission en banc, in its meeting held...