SEC Requires New Financial Statements
Byline: RYAN G. BORJA
The Securities and Exchange Commission (SEC) wants public corporation to adhere to the new statements of financial accounting standards required by the regulator when they file their annual financial report by April 15 this year.
By 2004, Philippine accounting and auditing standards shall be fully aligned with international standards, said the SEC as part of effort to promote transparency among the business sector and also in setting high standards of disclosure.
In a press briefing yesterday, SEC chairperson Lilia R. Bautista said the new rule becomes effective for audited financial statements covering the period beginning January 1, 2001 and for interim financial statements starting 2002.
"All data information shall be presented or restated to conform with the provisions of the aforementioned new accounting standards for comparability," said Bautista.
These requirements are as follows: a) framework for the preparation and presentation of financial statements, b) presentation of financial statements, c) inventories, d) cash flow statements and net profit or loss for the period, e) fundamental errors and changes in accounting policies, f) segment reporting, and g) interim financial reporting. …