Guidelines on the Filing of Functional Currency FS

SEC issues Memorandum Circular No.1, Series of 2006 

In its meeting dated January 10, 2006, the Philippine Securities and Exchange Commission (SEC) resolved to issue SEC Memorandum Circular No. 1, Series 2006, to guide companies whose functional currency (i.e., the currency of the primary economic environment in which the company operates) is other than the Philippine peso.

As stated in the Circular, a company that files for the first time a functional currency financial statement (FS) for statutory purposes shall notify SEC that it shall file such FS, with an assessment that supports the determination of its functional currency. The notification shall be filed within 45 days after the end of the year in which the company intends to initially present a functional currency FS.