THE SECURITIES and Trade Commission (SEC) is enabling an industry-distinct framework in reporting financial statements for banking companies and other entities controlled by the Bangko Sentral ng Pilipinas (BSP) in thought of reduction steps prolonged during the coronavirus pandemic.
In a assertion on Wednesday, the corporate regulator reported it has accepted SEC Memorandum Round No. 32, Series of 2020, which will allow banking institutions to pick whether or not to get ready their audited monetary statements employing an business-certain framework or the Philippine Fiscal Reporting Standards (PFRS), as would be permitted by the BSP.
An marketplace-unique framework would let banking companies to specify aid steps availed of through the period of time of the pandemic, and the extent of the impression on their fiscal statements, the SEC said. The regulator claimed this can ensure transparency in financial reporting.
Before this 12 months, the BSP rolled out reduction actions to banking institutions and economical establishments in light-weight of the problems by the coronavirus illness 2019 (COVID-19) pandemic.
Some of these are making it possible for the staggered scheduling of allowance for credit losses and the reclassification of financial debt securities beneath a fair value classification into amortized cost.
If it would not let an field-specific reporting framework, the SEC stated the aid offered by the BSP would be counted as deviations from the PFRS. If these have any content impression on the companies’ economical statements, they would need to have a certified belief by an external auditor.
“The marketplace-specific framework recognizes the requirement of the prudential accounting aid actions, as well as the other regulatory reliefs issued by the central financial institution, in countering or, at the very least, cushioning the impression of the COVID-19 outbreak on financial institutions and other economical establishments,” SEC Chairperson Emilio B. Aquino stated.
“These reliefs ended up intended to minimize the effect of losses that (economic establishments) could incur because of to publicity to debtors, industries and sectors seriously afflicted by the COVID-19 pandemic… For that reason, they intention to improve the potential of (monetary institutions) to proceed working and servicing the financing specifications of the typical community,” he extra.
For businesses that would not file any product effects from the BSP’s aid actions, the SEC explained they may well take note in their fiscal statements that the submitting is in total compliance with the PFRS. — D.A.Valdez