Under SEC's Notice of
Implementation Guidelines on PFRS for SMEs dated February 9,
2010, micro entities have the option to use any of these bases
of accounting in the preparation of their financial statements:
(a) full PFRS, (b) PFRS for SMEs, or (c) another acceptable
basis of accounting.
Under Part I (2)(A)(iii) of the Rule, micro entities have the
option to use as their financial reporting framework the income
tax basis, accounting standards in effect as of December 31,
2004 or PFRS for SMEs.
Micro entities which have previously adopted full PFRSs in
accordance with SEC’s Notice of Implementation Guidelines on
PFRS for SMEs dated February 9, 2010 are allowed to continue the
use of full PFRS. Nevertheless, micro entities may also choose
to change their financial reporting framework to one of the
options made available under the Rule. Such change should be
accounted for in accordance with PAS 8, Accounting Policies,
Changes in Accounting Estimates and Errors.
Micro entities are
not required to disclose in the notes to the financial
statements their rationale for choosing a particular financial
reporting framework available to them.
Micro entities that
continue to use full PFRS are not required to file the tabular
schedule of all the effective standards and interpretations
under the PFRS as of year-end as required under Part I (4)(J) of