Accounting Alerts

SEC MC No. 21-2023 - Amended Guidelines on Asset Valuations for SEC-accredited Appraisal Companies or PSOs

This Accounting Alert is issued to circulate Securities and Exchange Commission (SEC) Memorandum Circular (MC) No. 21-2023 dated November 14, 2023.

Background

Based on Annex A of the 12th Foreign Investment Negative List (issued on June 27, 2022), no foreigners are allowed to practice profession in the Philippines, which include among others, Real Estate Services, unless their home country allows Filipinos to be admitted to the practice of said profession.

Most of the accredited appraisal companies and Professional Services Organization (PSO) have been requesting extension on the submission of Annual Report (AR) from the April 15 deadline since the audited financial statements, which some data in the AR are derived from, are not yet available, either the audit of their respective external auditors has not been completed or the submission of said financial statements to the Commission is not yet due.

In view of the foregoing, in order to update the foreign ownership requirement and submission date of the AR of the said Circular, the Commission resolved to approve the revision of SEC MC No. 2-2014 by amending the provisions on Paragraph 3 of Items II and III and Paragraph I of Item IV, as follows:

"II. Accreditation

i. The criteria for accreditation shall be the following:

III. Operational Requirements

All appraisal companies or PSOs accredited by the Commission shall comply with the following operational requirements:

3. An accredited appraisal company or PSO shall maintain the following prescribed qualifications:

i. It is compliant with the ownership requirement under the prevailing Foreign Investment Negative Listand it is managed and operated by licensed appraisers or valuation specialists.

IV. Reporting Requirements

1. All accredited appraisal companies or PSOs shall submit within one hundred thirty-five (135) daysfrom the end of its fiscal year, an annual report under SEC Form AC-AR duly signed by its Chief Executive Officer and Chief Finance Officer, or Managing Partner, as the case may be."

This MC is hereby issued to effect the subject amendments.

Effectivity

This MC shall take effect after its publication in two (2) newspapers of general circulation.

 

See attached SEC MC No. 21-2023 for further details.