SEC Relaxes the Requirements for Extension in the Filing of Annual Reports and/or Audited Financial Statements

This accounting alert circulates the notice by SEC on dispensing certain requirements in availing of the extension of filing of annual reports and/or audited financial statements.

Introduction

In light of the implementation of an enhanced community quarantine for the entire Luzon due to the COVID-19, the SEC, in its meeting held last March 18, 2020, resolved to dispense with the requirements on sworn certifications, both for publicly listed and non-publicly listed companies, as provided in SEC Memorandum Circular No. 5, series of 2020.

Dispensed Requirements

The SEC DISPENSES the following requirements:

  1. a sworn certification signed by the company’s president and treasurer to confirm that:
    (i) its financial year ended December 31, 2019;
    (ii) it has significant business operations or subsidiaries in China and/or other affected territories, including the Philippines; and,
    (iii) the timely completion of statutory audit of its financial statements as of December 31, 2019 has been affected by travel restrictions, suspension of business operations and/or other measures imposed by authorities or by the corporation in response to the COVID-19 outbreak.
  2. a sworn certification by its external auditor confirming:
    (i) that it has operations in China and/or other affected territories; and,
    (ii) the impact of the COVID-19 outbreak on the auditing of its financial statements.

Persisting Requirements

The SEC retains the requirements for publicly-listed companies to submit a written request to the SEC through the Markets and Securities Regulation Department for an extension of time not later than 5 days before the filing deadline. Further, these companies must also submit to the SEC an indicative date to convene the Annual Stockholders' Meeting.

Grant of Extension for Companies with Fiscal Year Ending November 30, 2019

The SEC, in its Notice, also resolved to grant the extension of filing of Annual Reports and/or Audited Financial Statements to companies with fiscal year ending November 30, 2019.



See attached SEC Notice for the details of this publication.