SEC Guidelines and Deadline for Filing Financial Statements in 2017

Section 141 of the Corporation Code of the Philippines requires a Corporation, lawfully doing business in the Philippines, to submit to the Securities and Exchange Commission (SEC) an annual report of its operations, together with a financial statement of its assets and liabilities covering the preceding fiscal year. The report shall be submitted within the prescribed period to SEC.

To be of help to businesses and corporations in the Philippines, below are the summary of guidelines and deadlines for the year 2017:

GUIDELINES

Before filing their Annual Financial Statements (AFS) to SEC, corporations should make sure that their AFS are complete and have the following as attachments (4 sets):

1. Cover Sheet for AFS as mandated by SEC.
2. AFS must first have the stamped “RECEIVED” by the Bureau of Internal Revenue (BIR) or its authorized banks.
3. Auditor’s Report
4. Statement of Management Responsibility for Financial Statements
5. Audited Financial Statements
   • Statement of Financial Position (Balance Sheet)
   • Statement of Comprehensive Income (Income Statement)
   • Statement of Changes in Equity
   • Statement of Cash Flows
   • Notes to Financial Statement
   • Compiler’s Certificate

DEADLINE

Securities and Exchange Commission (SEC) issues memorandum circulars annually with regards to the schedule of filing Annual Financial Statements (FS). This schedule started in the year 2008 when the commission noticed that corporations are filing FS either close to the last day of filing or the deadline itself. This rushed filing caused chaos in the SEC premises compelling the Commission to devise the staggered deadlines based on the last digit of the Corporation’s Registration Number.

This year, SEC issued SEC Memorandum Circular No. 2 Series of 2017 prescribing the following deadlines and schedule of filing:

1. Corporations whose fiscal year ended last December 31, 2016:

Note: SEC is allowing corporation to file before April 17 regardless of their Registration number.

2. Corporations whose fiscal year ends on a date other than Dec 31, 2016 shall comply with their original filing schedule which is within 120 days from the end of their fiscal year.

3. Corporations who are categorized under the following shall comply with their original filing schedule which is within 105 days from the end of their fiscal year:

• Securities are listed on the Philippine Stock Exchange (PSE)
• Securities are registered but not listed in PSE
• Public companies

Corporations whose AFS are being audited by the Commission on Audit (COA) are also not covered by this memo as long as the following documents are attached to their AFS:

• an Affidavit signed by the President and the Treasurer (or Chief Finance Officer, where applicable) attesting to the fact that the supporting documents and that the audit of COA has just been concluded; and
• a letter from COA confirming the information provided in the above Affidavit.

Take note that late filings will still be accepted but will be subjected to penalties computed from the date of the last day of the required filing schedule.

But did you know that you can now file the Company’s AFS and General Information Sheet (GIS) without going personally to SEC?

How? Through SEC Express Nationwide Submission (SENS)

SEC Express Nationwide Submission

SEC started introducing SENS in March 2016. Through this option with a fee, filers can simply send their documents to SEC through a designated courier. All they need to do is to log on www.secexpress.ph/sens and fill in the online application form.

On a personal note, Companies should be in the practice of filing AFS earlier than the deadlines for BIR and SEC especially if it’s for a group of companies. Long queues will be prevented, cost of transportation and manpower allotted will be lessened. Earlier is always better if not the best.