Wednesday, January 1, 2014
PHL CO-OPS STILL HAS NO FINANCIAL REPORTING FORMAT OF ITS OWN?
I chanced upon a discussion thread in one of the Facebook groups (PICPA) where Coop Phils happened to be a fortunate member. After all, accounting is a very important aspect of cooperatives' operations, just like any other business.
A good and useful activity of this group, is that a member is free to ask a question, or raise an issue for discussion. And other members are just willing to assist by way of responding and sharing their accounting expertise and experience, in answer to the question or to address the issue raised.
The question that I chanced upon (and which I later shared to Coop Phils members) is whether cooperatives in the Philippines are using "full IFRS," "IFRS SME," and the like in their accounting practice.
Ms. Minette Ilagan-Ame, who happens to chair the PICPA Committee on Cooperatives, nailed the question on its head. She said local cooperatives, big or small, do not use IFRS, nor IFRS SME, as they are supposed to adopt a reporting framework of their own. She hastened to add that CDA-proposed framework is also based on IFRS.
In the meantime that this is not yet adopted and implemented, she also informed that "..the suggested opinion of CDA is "in accordance with financial reporting standards applicable to cooperatives in the Philippines taking into consideration cooperative laws, rules and regulations..."
It was sometime in late 2012, if I remember correctly, that the Cooperative Development Authority (CDA) presented the "exposure draft" for this new financial reporting format for Philippine cooperatives.
I think this was presented during the Luzon Convergence of Cooperatives, held at Club Filipino, Greenhills, San Juan in 2012 and also during that year's PICPA's convention and Cooperative Forum, held in Hotel Intercontinental in Makati City.
So, it appears timely to ask: Whatever happened to this proposed new financial reporting format for cooperatives, the consultations for which were also held by CDA?
Maybe cooperatives will find out the answer soon, once CDA Chairman, Dr. Emmanuel Santiaguel makes his annual New Year's message, accomplishment report and plans for 2014. Hopefully. (END).