In the Philippines, majority of the companies have December 31 fiscal accounting year end. This would mean majority of the accountants both in private and public practice are spending sleepless nights as they face the busiest season of the year – the April 15, 2015 Philippine Bureau of Internal Revenue (BIR) deadline.
Aside from the BIR deadline, all concerned professionals should also bear in mind the Philippines Securities and Exchange Commissions’ (SEC) schedule of Annual Financial Statements and General Information Sheet submissions.
Last December 9, 2014, SEC issued MC No. 23-2014 which provides the scheduled dates of the submission for the annual AFS this 2015 for companies with fiscal year ending December 31, 2014.
“To maintain an organized and orderly filing of annual financial statements (AFS) and General Information Sheet, the Commission, pursuant to its authority under the Corporation Code and Securities Regulation Code, adopt the following measures in the filing of the AFS of the companies whose fiscal year ends on December 31, 2014 and General Information Sheet.
All corporations, including branch offices, representative offices, regional headquarters and regional operating headquarters of foreign corporations, that file their AFS and GIS at the Commission’s Head Office in Mandaluyong City, Satellite Office, Davao, Cebu, Iloilo and Baguio Extension Offices shall, depending on the last numerical digit of their SEC registration or license number, be governed by the following schedule in the filing period for 2015:
April 13, 14, 15, 16, 17 : “1”, “2”
April 20, 21, 22, 23, 24 : “3”, “4”
April 27, 28, 29, 30 : “5”, “6”
May 4, 5, 6, 7, 8 : “7”, “8”
May 11, 12, 13, 14, 15 : “9”, “0”
The above schedules shall not apply to the following corporations:
- Those with fiscal year ends on a date other than December 31, 2014. ( AFS should be filed within 120 days after the fiscal year.)
- Those who are listed with Philippine Stock Exchange (PSE). (Entities should continue to observe the due date as mandated by PSE.)
- Those AFS are under the audit of Commission on Audit (COA). (Provided the affidavit signed by the President and Treasurer/CFO attesting to the fact that the company timely provided COA with the financial statements and supporting documents and that the audit of COA has just been concluded. There should also a letter from COA confirming the information provided in the affidavit.)
Based on the circular issued by the SEC, companies can file the AFS before April 13, 2015 regardless of the last digit of their registration number. If in case you are done with your annual audited financial statements and annual income tax returns in the Philippines by April 13, 2015, then, you better file it to avoid the rush and the long wait for your schedule. However, those companies who fail to meet the mandated schedule can file their AFS starting May 18, 2015 subject to penalties imposed by the SEC. In 2014, Philippines SEC has issued an exposure draft for public comments for the revised scale of fines as previously stated in SEC MC 8-2009 Scale of Fines for Non-compliance with the Financial Reporting Requirements of the Commission.
In addition, it would be helpful to check the following basic requirements of the annual audited financial statements (AFS) in the Philippines before filing the same to avoid further delays from the large volume of filers that are starting to pile up with the SEC:
- Check the Cover Sheet used in the AFS submission. The SEC has already prescribed a new a format and the use of the old one might affect the filing of the AFS.
- Check the Statement of Management’s Responsibility (SMR) signatories. SRC 68, as amended provides a clear guidance of the SMR’s signatories. Also make sure officers appearing in the SMR should tie-up with the GIS data.
- Submit AFS stamped “received” by the BIR or its authorized bank except for the consolidated financial statements.
- Check the additional schedules or report that should accompany the AFS as mandated by SEC such as schedule of receipts and disbursements for non-stock and non-profit organizations, sworn statement of the President and Treasurer for foundations, those companies with unrestricted earnings exceeding 100% of paid-in capital stock wherein a Reconciliation of Retained Earnings for Dividend Declaration should be submitted and other documents specifically required for some industries like under financing, mutual funds, investment houses and listed companies.
Being knowledgeable about the above deadline schedule and basic requirements is a must for us professional accountants to avoid our huge efforts in preparing the reports be put into waste at the end game.
By: Cecile S. Maglunob, CPA
(Disclaimer: This article is for general conceptual guidance only and is not a substitute for an expert opinion. Please contact us or your consultant for the specific details applicable to your circumstances. For comments, you may please send mail at firstname.lastname@example.org)