The Securities and Exchange Commission en banc agreed to extend the effectivity of financial statements to 180 days from the current 135 days to align rules with the Association of Southeast Asian Nations standard.
“This reform in financial reporting standard aims to address the recurring requests from companies for exemptive relief to extend the effectivity of their FS. This is also in line with the Asean standard for the age requirement for FS which is 180 days,” SEC said.
“Accounting and auditing professionals, prospective issuers of securities and other concerned organizations are advised to take note of this new requirement. With the approval…, the Commission will no longer entertain further request for extension of the 180-day period,” the SEC added.
The Securities Regulation Code provided that for a registration statement to become effective, the financial information should as of a date within 135 days or such longer period which the commission may allow upon favorable consideration of a written request of the registrant.
“The factors that may considered in granting the request include the time constraints and the significant circumstances surrounding the given proposed issue,” the code said.
Several companies, especially those planning to conduct initial public offerings and experiencing difficulty in securing regulatory approvals, have asked for an extension of the effectivity of their financial statements.
The SEC said the new directive was effective immediately.
The SEC in August also amended some of the provisions of the Securities Regulation Code.