Connect with us

Hi, what are you looking for?


SSS, GSIS, PhilHealth ordered to adopt PFRS 4 accounting norms on reserves

Finance Secretary Carlos G. Dominguez, III has ordered the government-run pension funds and health insurance agency to adopt the Philippine Financial Reporting Standards 4 (PFRS 4) accounting standard, particularly with regard to estimating their potential liabilities.

The Social Security System, the Government Service Insurance System (GSIS), and Philippine Health Insurance Corp. (PhilHealth) were instructed to estimate their social benefit liabilities in accordance with the standard by Mr. Dominguez, who is also the concurrent Chairman of the Social Security Commission.

In a speech Friday, Mr. Dominguez said social benefit liabilities represent the three institutions’ net legal obligation to pay specific, guaranteed amounts of money or benefits to their policyholders, which include both actual claims and the required reserve for future claims.

“The implementation of this directive will start with the 2020 financial reports of the SSS, the GSIS, and PhilHealth, which will show a combined total liability of P9.94 trillion after full compliance with PFRS 4,” the DoF said in a statement.

PFRS 4 is the current and interim accounting standard imposed on insurance entities in the Philippines. It is based on International Financial Reporting Standards (IFRS).

Under PFRS 4, when an insurance entity receives money from its clients and enters into a contract with them to provide benefits when certain events occur, it must set aside a reserve to cover its liabilities.

In this case, premiums, fees, and contributions that the institutions receive must be reported both as income and liability, the DoF said.

Mr. Dominguez said all three institutions “are still financially sound and can meet their obligations to their respective members.” — Luz Wendy T. Noble

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



UNSPLASH THE HOLIDAYS shouldn’t be used as an excuse to binge-eat, warned a dietitian.  Christmas is just around the corner and with it comes...


MANILA Electric Co. (Meralco) has secured a certificate of exemption from the Department of Energy (DoE) from the competitive selection process (CSP) for the...


UNSPLASH END-OF-LIFE CARE will benefit from conversations about spirituality and the limits of the human body, according to a priest.   “If we want to...


A SCENE from Giacomo Puccini’s opera Turandot in Turkey AFTER a two-year hiatus, live opera returns to the Main Theater of the Cultural Center...


CEBU AIR, Inc. (CEB) said recent leadership changes in the company form part of its succession planning as it seeks continued growth and to...


MASS HOUSING developer Ovialand, Inc. has secured a P600-million loan facility from Security Bank Corp. for its expansion plans. Ovialand said in a press...

You May Also Like


BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...


REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...


KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...


COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

Disclaimer: Respect, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.