SEC ACCEPTS ELECTRONICALLY SIGNED ANNUAL FINANCIAL STATEMENTS

Due to renewed mobility restrictions in Metro Manila and adjacent provinces, the Securities and Exchange Commission (SEC) will allow corporations enrolled in its e-online submission tool (OST) to submit electronically signed annual financial statements (AFS).

In a notice issued on April 8, the SEC announced that electronically signed AFS for the period ended Dec. 31, 2020 and for other fiscal years ending this year would be accepted through the OST.

All stock corporations are mandated to file their AFS and other covered reports through the OST, pursuant to a recent SEC memorandum circular covering the schedule and filing of AFS, general information sheet and other covered reports. Meanwhile, nonstock corporations have the option to enroll and file reports through the OST until 2022.

Enrollment in the OST seeks to ensure that the AFS submitted by corporations are duly signed and officially submitted to the SEC only by authorized filers.

Notwithstanding this recent flexibility, the SEC requires the management and external auditors of corporations to ensure that the manually signed AFS will also be available upon its directive, pursuant to the exercise of its supervisory and investigative authority and visitorial power under the Securities Regulation Code and Revised Corporation Code of the Philippines.

Schedule

Corporations that may encounter errors in the enrollment and/or submission process through the OST may physically file their report by booking an appointment through the SEC express appointment system. In such cases, corporations would have to submit manually signed reports.

All stock corporations with fiscal year ending Dec. 31, including branch offices, representative offices, regional headquarters and regional operating headquarters of foreign corporations, shall enroll and file their AFS through the OST based on the last numerical digit of their SEC registration or license number in accordance with the following schedule: June 1-30-(1); July 1-31-(2); Aug. 1-31 (3 and 4); Sept. 1-30 (5 and 6); Oct. 1-31 (7 and 8); Nov. 1-30 (9 and 0).

Corporations also have the option to file ahead of the prescribed filing dates, also through the OST.

Those whose fiscal year ends on a date other than Dec. 31 should file their AFS within 120 days from the end of their fiscal year, while publicly listed companies and other issuers of securities should file their AFS within 105 days after the end of their fiscal years, according to the SEC.