Philippine Interpretations Committee Question and Answer (PIC Q&A) Nos. 2018-12-H and 2018-14

February 8, 2019SEC MEMORANDUM CIRCULAR NO. 03-19SUBJECT:Philippine Interpretations Committee Question and Answer (PIC Q&A) Nos. 2018-12-H and 2018-14 WHEREAS, on 15 August 2017, the Commission approved the adoption of Philippine Financial Reporting Standard (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, on 31 January 2018 and 27 June 2018, respectively, the PIC issued the following guidance on some implementation issues affecting the real estate industries brought about by the adoption of PFRS 15:1. PIC Q&A 2018-12-H, Accounting for Common Usage Service Area (CUSA) Charges. Approved by Financial Reporting Standards Council (FRSC) and Professional Regulation Commission (PRC) and Board of Accountancy (BOA) on 14 February 2018 and 18 May 2018, respectively;2. PIC Q&A 2018-14, Accounting for Cancellation of Real Estate Sales. (Approved by FRSC on 10 October 2018. The pronouncement is still pending for approval by the PRC and BOA).WHEREAS, the real estate industry raised implementation issues and requested to defer the implementation of the above...