In August 2020, the IFRS Foundation published the revised Due Process Handbook, which clarified the authority of agenda decisions issued by the IFRS Interpretations Committee (IFRIC) and their role in supporting consistent application of IFRS Standards. The authority of agenda decisions is derived from the IFRS Accounting Standards themselves. Accordingly, an entity is required to apply the applicable IFRS Accounting Standard(s), reflecting the explanatory material in an agenda decision (subject to it having sufficient time to implement that accounting).

As background, agenda decisions are published when the Interpretations Committee decides that a standard-setting project should not be added to the work plan. In many cases, agenda decisions include explanatory material that explains how the applicable principles and requirements in IFRS Accounting Standards apply to the transaction or fact pattern described in the agenda decision.

For further information about the revised Due Process Handbook and the authority of agenda decisions, please refer to this link.

At present, the Philippine Interpretations Committee (PIC) considers the IFRIC agenda decisions deemed relevant to the Philippine business environment, and these are compiled and updated annually through the Financial Reporting Guidance (FRG) issued as of June of each year.  Accordingly, a reporting entity is required to apply PFRS reflecting the explanatory material in the relevant agenda decision(s) contained in the FRG.