A study of the impact of PFRS adoption on publicly-listed food and beverage companies

• Main Authors: Dimayuga, Julie Anne L., Macadangdang, Mary Grace B., Navarra, Ellie Chris C., Tantiansu, Mysue L.
• Format: text
• Language: English
• Published: Animo Repository 2006
• Subjects: Financial statements > Standards > Philippines; Food industry and trade > Philippines; Beverage industry > Philippines; Accounting
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/14171
• Institution: De La Salle University

Philippine Financial Reporting Standards (PFRS) govern the preparation of financial statements in the Philippines. These standards foster greater transparency, comparability, and consistency. Because of this, the researchers acknowledge the importance of a study that will focus on standards and their effects to businesses. Since many are interested in the effects of PFRS especially on the profitability of the companies, the subject of this research is to measure the impact of PFRS adoption to listed companies belongings to the food and beverage industry with a calendar year as their reporting period. The conduct of the study was divided into two, using surveys and interviews as primary sources of data and, analysis of the 2004 and 2005 annual reports as secondary sources of data. The group surveyed and interviewed the companies regarding the change programs they implemented for the adoption of PFRS. Generally, the companies employed outside expertise, changed their performance indicators but they did not modify their accounting information system as part of their compliance. The analysis part of this study includes the computation of financial ratios from the 2004 and 2004 restated balances and the use of Analysis of Variance to interpret the results. PFRS adoption resulted to changes in the account balances and financial ratios of the companies. However, the changes are insignificant as proven by the results of one-way ANOVA. The results of the two-way ANOVA indicated that there is no interaction between the companies and the changes in the financial ratios. As a whole, it could be concluded that even if the impact may not be that evident on the financials, the qualitative aspect should be highlighted.