- Accounting Alerts
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2019
2019
- SEC Extends Deadline for Annual and Quarterly Reports for...
- Deferral of IFRIC Agenda Decision on Over Time Transfer of Constructed Goods (PAS 23) for Real Estate Industry
- Implementation of IFRS 17, Insurance Contracts
- Amendments to Regulations on Financial Audit of Banks and Non-Bank Financial Institutions
- Navigating the Changes to IFRS 2020
- SEC Memorandum Circular No. 2 - 2020 Filing of Annual Financial Statements and General Information Sheet
- IASB issues Classification of Liabilities as Current or Non-current (Amendments to IAS 1)
- GTI IFRS News Q4 2019
- Insights into PFRS 3: Definition of a Business
- IASB issues Interest Rate Benchmark Reform
- Insights into PFRS 16: Presentation and Disclosure
- Insights into PFRS 16: Lease Payments
- Insurance Commission's Guidelines on Lease Accounting for Insurance and Reinsurance Companies
- GTI IFRS News Q1 2019
- Application Deferral of PIC Q&A 2018-H and 2018-14
- Sustainability Reporting Guidelines for Publicly-Listed Companies
- Insights into PFRS 16: Sale and Leaseback Accounting
- Insights into PFRS 16: Transition Choices
- Use of the New General Information Sheet (GIS) Form
- 2019 Filing of Annual FS and GIS
- Navigating the Changes to IFRS 18
- Insights into PFRS 3: Definition of a Business
- GTI IFRS News Q2 2019
- Rules on Material Related Party Transactions for Publicly-listed Companies
- BOA Repealed Resolutions on FS Compilation Services
- GTI IFRS News Q3 2019
- 2019
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2020
2020
- SEC Notice on the Opening of SEC Express System and SEC Express Nationwide Submission
- Insurance Commission Circular Letters: Regulatory Reliefs, Online Submission of Reports, and Deferral of IFRS 17 Implementation
- COVID-19 Accounting Implications for CFOs: Impairment of Intangible Assets and Goodwill
- IASB Issues Narrow Scope Amendments to IFRS Standards
- Procedures in the Filing of Audited Financial Statements and General Information Sheet after the Enhanced Community Quarantine
- Extension of Deadline for the Submission of 2020 Annual and Quarterly Reports and AFS of Companies with Fiscal Year Ended January 31 to April 30, 2020
- Understanding the Impact of COVID-19 on 2020 Deferred Tax Provisions
- IASB Proposes Relief for Rent Concessions During the COVID-19 Pandemic
- Extension of Period to File the General or Special Form for Financial Statements and Guidelines on Submission by Electronic Mail
- Treatment of Net Unrealized Losses in the EFCDU/FCDU Book for Purposes of Determining Compliance with the EFCDU/FCDU Asset Cover Requirement
- Guidelines on Reclassification of Debt Securities Measured at Fair Value to the Amortized Cost Category for Prudential Reporting to the BSP
- Reporting the Impact of COVID-19 to your Business
- Guidelines on Filing SEC Form 17-LC and 17-C Report
- COVID-19: Financial Reporting and Disclosures
- Reduction in Reserve Requirements
- COVID-19 Outbreak: Accounting Implications
- Guidelines for Filing of Reports through Electronic Mail with the SEC during ECQ Period
- Application of IFRS 9 in Light of the Coronavirus Uncertainty
- [UPDATE] Regulatory Relief for Entities Regulated by the Insurance Commission
- Guidelines on Submission by Electronic Mail of Required Forms and Documents and Recognition of Electronic Signature
- Guidelines for the Filing of General Information Sheet (GIS) During the COVID-19 Outbreak and Enhanced Community Quarantine
- Additional Operational Relief for BSFIs Affected by Measures to Manage the Coronavirus Disease (COVID-19) Situation and its Health and Safety Risks
- Alternative Means of Filing Reports, Communications and Other Documents with the SEC
- SEC Relaxes the Requirements for Extension in the Filing of Annual Reports and/or Audited Financial Statements
- Guidelines Covering the Conduct of Business in the Insurance Commission During the Community Quarantine Period
- SEC Issues Guidelines on the Participation in Regular and Special Meetings through Remote Means of Communication
- Regulatory Relief for...
- SEC Extends Deadline for Annual and Quarterly Reports for Companies affected by Covid-19
- Guidelines on Preventative Measures Against...
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Insurance Commission Circular Letters: Regulatory Reliefs, Online Submission of Reports, and Deferral of IFRS 17 Implementation
This Accounting Alert is issued to summarize recent circular letters (CLs) issued by the Insurance Commission (IC) from May 14 to May 18, 2020.
CL No. 2020-58: Regulatory Relief on the Admittance of Premiums Receivable due to the COVID-19 Pandemic
Covered entities: All non-life insurance and professional reinsurance companies
Effectivity: Applied to annual and quarterly financial reports for the year 2020, unless extended or changed as deemed necessary by the IC.
The IC issued CL No. 2020-58 on May 14, 2020 to relax the admittance rule over premium receivables in view of the delays in collection of premiums from policyholders due to the COVID-19 pandemic. The basis for admitting Premium Receivable account (direct agents, general agents and insurance brokers) for all non-life insurance and professional reinsurance companies shall be adjusted from 90 days to 180 days from the date of issuance of the policies.
CL No. 2020-59: Online Submission of Annual Statements (AS), Audited Financial Statements (AFS) and Attachments
Covered entities: All insurance and professional reinsurance companies, mutual benefit associations, pre-need companies, health maintenance organizations and insurance and/or reinsurance brokers
Effectivity: Shall take effect immediately
The IC issued CL No. 2020-59 on May 14, 2020 requiring all regulated companies to submit their AS, AFS and attachments for the reporting periods starting 2019 onwards through electronic means. These companies are also advised to send the said documents in a compressed and password-protected file. Notwithstanding this new requirement, the IC may also require a company to submit and likewise, examine the original hard copy of the electronically submitted documents. The IC has released updated checklists together with the CL for guidance of each of the regulated entities.
CL No. 2020-60: Regulatory Relief on Networth Requirements and Guidelines on the Implementation of Amended Risk-based Capital (RBC2) Framework for Calendar Year 2020
Covered entities: All insurance and professional reinsurance companies
Effectivity: Shall take effect immediately
The IC, through CL No. 2020-60 issued on May 15, 2020, promulgated the following guidelines:
1. All insurance companies already compliant with the networth requirements as of December 31, 2019 under Section 194 of the Amended Insurance Code before the declaration of ECQ and adversely affected by the crisis are:
a. relieved from the quarterly compliance of the networth requirements of P900,000,000; and,
b. required to comply with the CL 2016-68 (Amended Risk-based Capital Framework) and revised regulatory intervention (RBC ratio)
2. All insurance companies which are not compliant before the declaration of the ECQ are required to make fulfill their respective commitments to the IC to put up additional funds to cover the networth deficiency before availing the relief as discussed in (1) above.
3. Submission of 2020 RBC2 reports for the following periods shall be required.
CL No. 2020-62: Deferral of IFRS 17 Implementation
Covered entities: All insurance and professional reinsurance companies
Effectivity: Shall take effect immediately
On March 17, 2020, the International Accounting Standards Board (IASB) has decided to further defer the effective date of IFRS 17, Insurance Contracts to annual reporting periods beginning on or after January 1, 2023. In view of this, the IC, through CL No. 2020-62 issued on May 18, 2020, amended provisions under Section 1 of CL No. 2018-69, Deferral of Implementation of IFRS 17 - Insurance Contracts and deferred the implementation of IFRS 17 for life and non-life insurance industries by two (2) years after its effective date as decided by the IASB.
See attached Circular Letters for further details.
