SEC issued notice to Pre-need Companies

On its meeting dated February 7, 2006, the Securities and Exchange Commission (SEC) issued a notice to Pre-need companies, mentioning the requirements to be submitted by the latter.

1.  Audited financial statements (AFS) based on the existing Pre-need Uniform Chart of Accounts (PNUCA) but using all effective Philippine Accounting Standards (PAS)/Philippine Financial Reporting Standards (PFRS), with certain exceptions; and

2.  Pro-forma financial statements using all effective PAS/PFRS, as certified correct by the President and Chief Finance Officer of each company, and supported by a supplemental report from the external auditor.

Pursuant to paragraph (1)(b)(iv) of SRC Rule 68, the above pronouncement by the SEC shall form part of the GAAP.  The opinion of external auditors on the audited financial statements for the period ended December 31, 2005, which shall be submitted on or before April 15, 2006 by the pre-need companies shall not be qualified on the basis of non-compliance with PAS 39 and PFRS 4.