Philippine SEC folds IFRS 18, 19 and the ISSB sustainability standards into its rulebook
The Securities and Exchange Commission of the Philippines has issued Memorandum Circular No. 22, incorporating the latest batch of International Accounting Standards Board (IASB) and International Sustainability Standards Board (ISSB) pronouncements into its financial reporting rules. The Commission approved the adoption on 14 July.
The circular introduces a substantial number of international standards into the Philippine Financial Reporting Standards (PFRS). They include IFRS 18 on the presentation and disclosure of financial statements, IFRS 19 on subsidiaries without public accountability, and, as endorsed by the Philippine Sustainability Reporting Committee, IFRS S1 and IFRS S2 on sustainability and climate disclosures. It also brings in amendments to IFRS 9, 7 and 17, several updated Philippine Interpretations Committee Q&As, and the revised IFRS Practice Statement 1 on management commentary.
Progress on sustainability disclosures has been building over recent months: the Commission published PFRS S1 and S2 for consultation in September 2025, modelled closely on the ISSB’s IFRS S1 and S2. It proposed a phased roadmap, with the largest listed firms applying the new standards from FY2026 and other companies following through to FY2028, and transition reliefs softening the early going. The Commission then adopted the two standards in December. This latest circular is an important administrative step that puts the whole suite of financial and sustainability standards formally within the SEC’s rulebook.
Read the circular here.
