MANILA, Philippines – The Securities and Exchange Commission (SEC) has extended the effectivity of financial statements to 180 days from 135 days.
Companies regularly submit their financial statements to the SEC.
According to Part II, Section 4 of the Securities and Regulation Code Rule 68, at the time a registration statement is to become effective, the financial information therein shall be as of a date within 135 days from effective date or such longer period which the Commission may allow upon favorable consideration of a written request of the registrant.
This provision further stated that the factors that could be considered in granting the request include the time constraints and the significant circumstances surrounding the given proposed issue.
However, due to requests from various companies, the SEC extended the effectivity of financial statements.
“This reform in financial reporting standard aims to address the recurring requests from companies for exemptive relief to extend the effectivity of their FS,” the SEC said.
SEC chairperson Teresita Herbosa said the move is also in line with the Asean standard for the age requirement for FS, which is 180 days.
“Accounting & auditing professionals, prospective issuers of securities and other concerned organizations are advised to take note of this new requirement,” the SEC added.
Given this new development, the SEC will no longer entertain requests for extension of the 180-day period.
The extension bodes well for companies because if a company files its financial report for the nine months ending in September, the validity of the FS can now last up to April or May instead of February or March previously.
This means the firms no longer have to wait for their next FS to be completed in April.