CEBU CITY, Philippines – Amid the adverse impact of the COVID-19 on the operations of corporations, the Securities and Exchange Commission (SEC) has given companies affected by the crisis extended time to submit their annual and quarterly reports.
“The new coronavirus disease, COVID-19, has posed specific challenges to some Philippine companies in complying with certain reportorial requirements,” SEC chairperson Emilio Aquino noted in an emailed press release.
Aquino explained that the travel restrictions, suspension of business operations and other measures implemented to contain the spread of COVID-19 have kept companies, particularly those with operations in China and other affected territories, from gathering all information or documents necessary in the preparation and the subsequent audit of their annual financial statements.”
The commission will allow corporations with domestic operations to file until June 30 the required annual reports (SEC Form 17-A) or financial statements for the period ended December 31, 2019.
“For companies with domestic and foreign operations, the filing period is extended until June 30 or 60 days from the date of the lifting of travel restrictions by concerned government authorities, whichever comes later,” SEC added. “The filing period for the quarterly reports (SE Form 17-Q) of publicly listed companies and registered issuers of securities for 2020 will accordingly adjust.”
However, corporations whose preparation of financial statements or completion of statutory audits were not affected by the COVID-19 outbreak should still file their annual reports and/or annual financial statements for the year ended December 31, 2019, within the periods prescribed under existing rules and regulations.
To avail of more time to submit its reports, a publicly listed corporation should submit a written request to the Commission, through the Markets and Securities Regulation Department, at least five days before the deadline of filing.
The SEC added that it will continue to assess the impact of COVID-19 on the preparation of financial statements and on the completion of the statutory audits of companies. It would issue appropriate rules and regulations to address the concerns if needed./rcg