Philippines Technical Research

Accounting & Auditing News New 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, Amendment 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 Nonstock 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 Registered Corporation 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 e-mail phtr@deloitte.com for questions regarding this publication.

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Financial Reporting Bulletin

Bulletin No. 017 Date Subject Matter Clarification/Details

07 March 2013

Newly-registered Corporations

Under 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.

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

Republic of the Philippines

Department of Finance

Securities and Exchange Commission

SEC Building, EDSA, Greenhills, Mandaluyong City

SEC MEMORANDUM Series of 2013

To: Re:

CIRCULAR NO.

4 ----

ALL NON-STOCK AND NON-PROFIT ORGANIZATIONS/ FOUNDATIONS 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 said Rule 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 statements and 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 of each 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 on the 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 of each 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. 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 or donor includes individuals, partnerships, corporations, associations, trusts and organizations." The old provisions hereby deleted. of Part I, Paragraphs 4(A)&(B) of SRC Rule 68, as amended, are

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

Annex "A"
Page 1 of 2 SCHEDULE Name of Foundation/Organization For the year ended OF CONTRIBUTIONS/DONATIONS SEC Registration No.

I ea[tif I Contributors/Donors
(a) No. (b) Name and address

1 (c) Nationalitt (d) Total Contributions (e) Type of Contribution3

Cash ~ Noncash (Complete Part /I i there is a noncash contribution) Cash ~ Noncash . (Complete Part /I i there is a noncash contribution) Cash Noncash (Complete Part /I i t ere is a noncash contribution) Cash ~ Noncash (Complete Part /I i there is a noncash contribution)

2 P .

3 P .

a
D

4 P .

5 P .

~~~~ash (Complete Part /I i~re is a noncash contribution) Cash Noncash (Complete Part /I if there is a noncash contribution)

7 P .

Cash ~ Noncash (Complete Part /I i there is a noncash contribution! Cash Noncash (Complete Part /I i t ere is a noncash contribution! Cash Noncash (Complete Part /I i t ere is a noncash contribution! Cash Noncash (Complete Part /I i t ere is a noncash contribution! Cash Noncash

8 P .

a
R
R
B

9 P .

10 P .

11

Others (aggregate of all contributions which are individually below P100,000.00) - by nationality

A contributor or donor includes individuals, partnerships, corporations, associations, trusts and organizations. If supranational organization, indicate place of principal office or domicile. 3 Contributions 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.
1 2

Page 2 of 2
Name of Foundation/Organization For the year ended SEC Registration No.

~.artal I Noncash
(a) No. from Part Description

Proeerty (b) of noncash property given (c) Fair Market Val ue (or estimate) (d) Date received

I
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Signed under oath by the following: Signature Printed Name of President Signed this __ day of _ _ Signature Printed Name of Treasurer _ _