Beginning with its 2010 financial statements, ADFIAP, as recommended by its external auditors, SGV & Co./Ernst & Young, will adopt the International Financial Reporting Standard (IFRS)-aligned Philipine Financial Reporting Standards for Small and Medium-sized Entities (PFRS for SMEs) for its financial reporting.
In 2009, ADFIAP qualified as a Non-Publicly Accountable Entity (NPAE) under Philippine Accounting Standards (PAS) 101 and prepared its financial statements in accordance with generally accepted accounting principles (GAAP) in the Philippines applicable to NPAE. However, the PAS 101 has been replaced with the PFRS for SMEs which has been approved for adoption by the Philippine Financial Reporting Standards Council on October 13, 2009 and by the Philippine Securities and Exchange Commission (SEC) on December 3, 2009. ADFIAP is registered with the SEC.
The new financial reporting is aimed at simplifying the accounting requirements as well as in reducing the cost and effort in producing the financial statements of the Association.