October 29, 2018
SEC MEMORANDUM CIRCULAR NO. 14-18
| SUBJECT | : | Philippine Interpretation Committee Question and Answer (PIC Q&A) No. 2018-12 Implementation Issues Affecting Real Estate Industry |
WHEREAS, with the adoption of Philippine Financial Reporting Standard (PFRS) No. 15, Revenue from Contracts with Customers, effective for annual reporting periods beginning or after January 1, 2018, the Philippine Interpretation Committee (PIC) issued PIC Q&A No. 2016-04 — Application of PFRS 15, "Revenue from Contracts with Customers," on Sale of Residential Properties under Pre-completion Contracts, concluding that sale of residential properties under pre-completion stage meets the third criterion under Paragraph 35 (c) of PFRS 15;
WHEREAS, on 14 February 2018, the PIC issued PIC Q&A 2018-12, providing guidance on some implementation issues affecting the real estate industry due to changes brought about by the adoption of PFRS 15. Both PIC Q&As were subsequently approved by the Financial Reporting Standards Council (FRSC) on February 14, 2018, the Board of Accountancy (BOA) and Professional Regulation Commission (PRC) on May 18, 2018.
WHEREAS, the real estate industry through its various associations, raised several implementation issues with...
