Regulatory Alerts2020-11-18
MC No. 32 s.2020 — Basis of Preparation of Audited Financial Statements for BSFIs
The Securities and Exchange Commission issued this circular to allow Bangko Sentral ng Pilipinas-supervised financial institutions to prepare audited financial statements using Philippine Financial Reporting Standards modified by specific COVID-19 regulatory reliefs. BSFIs must disclose the specific reliefs availed of and provide qualitative and quantitative impact disclosures in the notes to financial statements to ensure transparency. External auditors are required to reflect this modified compliance framework in their audit opinions and include an Emphasis of Matter paragraph regarding the basis of accounting used.
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