Established in 1981 as mandated by Executive Order No. 640-A, the Academy has been able to forge an alliance among the various guilds of the movie industry. Serving as the umbrella organization, the Film Academy oversees the welfare of the guilds thru an assortment of subsidies, projects and opportunities that would bring about the upgrading of the knowledge and expertise of the guild members.
The principal function of the Academy is to give awards in recognition of the artistic and technical excellence of the performances and to accentuate the value of quality works of the people behind the outstanding films shown during the year. The Annual Luna Awards is intended to provide the necessary motivation in enhancing the craftmanship of movie industry workers that will eventually uplift the quality of local films.
The Academy also assists in the staging and managing of the annual Metro Manila Film Festival from which proceeds the Film Academy gets a share. Delegates to foreign film festivals are primarily sent thru the intercession of the Academy. The Academy also spearheads the collaboration of the movie industry with government agencies in order to gain opportunities for the guilds and its members.