Local adoption of IFRS S1 / S2 (ISSB Standards)
The Philippine SEC issued Memorandum Circular No. 16, s. 2025, adopting PFRS S1 and S2 (local versions of IFRS S1 and S2) with limited extra transition reliefs, including a two-year Scope 3 relief for all tiers. The largest listed companies start with FY2026, mid-sized listed companies with FY2027, and smaller listed companies, PDEx-only debt issuers and large non-listed companies with FY2028. Limited assurance over Scope 1 and 2 emissions follows two years after each tier starts.
- Enforcement
- Mandatory
- Effective date
- Tier 1 (PSE-listed, market cap above PHP 50bn as of 31 December 2025): FY beginning on or after 1 January 2026, reporting in 2027. Tier 2 (PSE-listed, market cap above PHP 3bn up to PHP 50bn): FY beginning on or after 1 January 2027, reporting in 2028. Tier 3 (PSE-listed with market cap of PHP 3bn or less; companies with debt securities listed only on PDEx; large non-listed entities with annual revenue above PHP 15bn): FY beginning on or after 1 January 2028, reporting in 2029. Limited assurance on Scope 1 and 2 required two years after each tier's first adoption.
- Covered entities
- Publicly listed companies (tiered by market capitalization), companies whose debt securities are listed only on PDEx, and large non-listed entities with annual revenue above PHP 15bn. Until their adoption year, listed companies continue to follow SEC MC No. 4, s. 2019.