2012_0322 Accounting and Auditing News (New SEC Issuances)

8/12/2019 2012_0322 Accounting and Auditing News (New SEC Issuances)

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PhilippinesTechnical Research

Accounting & Auditing News

ew SEC Issuances

The Philippine Securities and Exchange Commission (SEC) approved on March 7, 2013 the amendment of the provision of the SRC Rule 68 (As

Amended) Part I, paragraphs 4 (A) & (B) and the issuance of SEC Financial Reporting Bulletin No. 17. Brief discussions of these new SEC issuances are

presented below:

SEC Memorandum Circular No. 4 Series of 2013, Amendm ent of Part 1, Paragraphs 4(A) & (B) of SRC Rule 68, as Amended

This SEC Memo supersedes the provision regarding the schedules and documents required to be attached to the audited financial statements of Non-

stock and non-profit organization (para. 4(A) of the SRC Rule 68 part I) and of Foundations (para. 4(B) of the SRC Rule 68 part I). This requires additional

schedules and documents and includes a format of the Schedule of Contributions/Donations.

SEC Financial Reporting Bulletin (FRP) No. 017, Newly Regis tered Corporat ion

This FRP clarifies that submission of Annual Financial Statements (AFS) is applicable to all corporations and organizations registered with the SEC as of

the fiscal year, including those newly incorporated during the said year.

In addition, this FRP clarifies that corporations with fiscal year of December 31 that were registered during the last preceding year, regardless of the date of

incorporation, must submit their AFS in accordance with the Annual Schedule of Filing of Financial Statements indicated in the applicable Circular of the

Commission (for 2012 AFS, SEC Memorandum Circular No. 7, Series of 2012 is applicable). For those with fiscal year other than 31 December, their first

AFS shall be due within 120 days after the end of their fiscal year.

Please contact the Technical Research Group at +63 2 581 9000 local 9088 / 9078 or [email protected] questions regarding this publication.

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Source: http://www.sec.gov.ph/accountantsinfo/frb_17.html

Financial Reporting Bulletin

Bulletin

No. Date Subject Matter Clarification/Details017 07 March

2013Newly-registered

CorporationsUnder Section 141 of the Corporation Code, every corporation, domestic or

foreign, lawfully doing business in the Philippines shall submit to the Securities

and Exchange Commission an annual report of its operations, together with

a financial statement of its assets and liabilities, certified by any independent

certified public accountant in appropriate cases, covering the preceding

fiscal year and such other requirements as the Securities and Exchange

Commission may require. Such report shall be submitted within such period as

may be prescribed by the Securities and Exchange Commission.A threshold for the submission of the said audited financial statements is

indicated in Section 75 of the Code, as follows:SEC. 75. Right to financial statements. Within ten (10) days

from receipt of a written request of any stockholder or member,

the corporation shall furnish to him its most recent financial

statement, which shall include a balance sheet as of the end of

the last taxable year and a profit or loss statement for said

taxable year, showing in reasonable detail its assets and liabilities

and the result of its operations.At the regular meeting of stockholders or members, the board of

directors or trustees shall present to such stockholders or

members a financial report of the operations of the corporation

for the preceding year, which shall include financial statements,

duly signed and certified by an independent certified public

accountant.

However, if the paid-up capital of the corporation is less than

P50,000.00 the financial statements may be certified under oath

by the treasurer or any responsible officer of the corporation. Except for the above limitation on the coverage of entities whose financial report

must be audited, the provisions of the Corporation Code do not grant any

exemption from the required submission of annual financial statements (AFS). The

filing requirement is applicable to all corporations and organizations registered

with the Commission as of the fiscal year end including those newly incorporated

during the said year.Corporations with fiscal year of 31 December that were registered during the last

preceding year, regardless of the date of incorporation, must submit their AFS in

accordance with the Annual Schedule of Filing of Financial Statements indicated

in the applicable Circular of the Commission (for 2012 AFS, SEC Memorandum

Circular No. 7, Series of 2012 is applicable). For those with fiscal year other than 31

December, their first AFS shall be due within 120 days after the end of their fiscal

year.
http://www.sec.gov.ph/accountantsinfo/frb_17.htmlhttp://www.sec.gov.ph/accountantsinfo/frb_17.htmlhttp://www.sec.gov.ph/accountantsinfo/frb_17.html


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Republic of the PhilippinesDepartment of Finance

Securities and Exchange CommissionSEC Building, EDSA, Greenhills, Mandaluyong City

SEC MEMORANDUM CIRCULAR NO. 4----

Series of 2013

To: ALL NON-STOCK AND NON-PROFIT ORGANIZATIONS/ FOUNDATIONS

Re: AMENDMENT OF PART I, PARAGRAPHS 4(A) & (B) OF SRC RULE 68, AS AMENDED

To provide relevant information to users of financial statements of Non-Stock and

Non-Profit Organizations and Foundations under SRC Rule 68, as amended, the

Commission En Bane at its meeting held on 07 March 2013, approved the amendment of

Part I, Paragraphs 4(A)&(B) of SRC Rule 68, as amended. The provisions of the saidRule as hereinafter cited shall now read as follows:

"4. OTHER DOCUMENTS TO BE FILED WITH THE FINANCIAL STATEMENTS

The following documents shall be filed with the annual audited financial statementsand in the interim financial statements, if required herein:

A. Non-stock and non-profit organizations

A sworn statement of the organization's President and Treasurer on

the accuracy and completeness of the following schedules:

i. Schedule of Receipts or Income Other Than Contributions and

Donations. This schedule shall provide the nature and amount ofeach item;

ii. Schedule of Contributions and Donations that is prepared in

accordance with the prescribed form per Annex "A"; and

iii. Schedule of Disbursements according to sources and activities.This schedule shall provide the nature and amount of each item.

If material in amount (10% or more of. the total), the details of

such disbursement shall likewise be indicated.

B. Foundations

A sworn statement of the organization's President and Treasurer onthe accuracy and completeness of the following schedules:

i. Schedule of Sources of Funds Other Than Contributions and

Donations. This schedule shall provide the nature and amount ofeach item;

ii. Schedule of Contributions and Donations that is prepared in

accordance with the prescribed form per Annex "A"; and


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iii. Schedule of Disbursements according to sources and activities.

This schedule shall provide the nature and amount of each item.

If material in amount (10% or more of the total), the details ofsuch disbursement shall likewise be indicated.

iv. Schedule of application of funds with the following information on

activities accomplished, on-going and planned:

(a) Complete name, address and contact number of project

officer-in- charge; and(b) Complete address and contact number of project office.

v. As supporting documents to the above information, copies of the

certifications from the Office of the Mayor or the Head of either

the Department of Social Welfare and Development. or

Department of Health, on the existence of the subject program or

activity in the locality on which it exercises jurisdiction.

For purposes of the above requirements, contributions or donations

reportable on the Schedule per paragraphs A(ii) and B(ii) shall be grants,bequests, devises, and gifts of money or property, amounting to

P100,000.00 or more from each contributor or donor. A contributor ordonor includes individuals, partnerships, corporations, associations,trusts and organizations."

The old provisions of Part I, Paragraphs 4(A)&(B) of SRC Rule 68, as amended, are

hereby deleted.

This Circular shall cover annual financial statements for the period ended December 31,

2012 and onwards.

March _7 _, 2013. Mandaluyong City, Philippines.

;'.7'--

TERESITA J. HERBOSA

Chairperson


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Annex "A"

Page 1 of 2

SCHEDULE OF CONTRIBUTIONS/DONATIONS

Name of Foundation/Organization

For the year ended

I ea[tif I Contributors/Donors 1

SEC Registration No.

(a)

No.

2

3

4

5

6

7

8

9

10

(b) (c)

Name and address Nationalitt

(d)

Total Contributions

P .

P .

P .

P .

P .

P .

P .

P .

P .

P .

(e)

Type of Contribution3

Cash ~Noncash

(Complete Part /I i there is

a noncash contribution)

Cash ~Noncash .



Cash aNoncash(Complete Part /I i t ere is


Cash ~Noncash



~~~~ash Q(Complete Part /I i~re is


Cash DNoncash D

(Complete Part /I if there is


Cash ~Noncash


a noncash contribution!

Cash aNoncash

(Complete Part /I i t ere is


Cash RNoncash



Cash RNoncash



11 Others (aggregate of all contributionswhich are individually below P100,000.00)- by nationality

P .CashNoncash B

1A contributor or donor includes individuals, partnerships, corporations, associations, trusts and organizations.

2 If supranational organization, indicate place of principal office or domicile.

3Contributions or donations reportable on the Schedule are contributions, donations, grants, bequests, devises, and gifts of

money or property, amounting to P100,OOO.OO or more from each contributor or donor.


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Name of Foundation/Organization

For the year ended

1

~ .arta l I Noncash Proeerty

Page 2 of 2

SEC Registration No.

(a) (b) (c) (d)

No. Description of n on cas h p ro per ty g iv en Fai r Mar ket Val u e Date received

from (or estimate)

Part

I

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Si gned under oath by the fo l lowi ng:

Sign atu re _

Pr i nted Name of Presi dent

Sig n ed th is __ day o f _

Sig n atu re _ Prin ted Nam e o f Treas u rer _

Documents

2012_0322 Accounting and Auditing News (New SEC Issuances)