Regulatory Alerts2020-12-28
SEC Memorandum Circular No. 35 Series of 2020: Financial Reporting Relief in Light of Covid-19 Pandemic
The Securities and Exchange Commission granted financing companies, lending companies, and accredited microfinance NGOs relief to stagger the booking of credit loss provisions for five years to mitigate the impact of the COVID-19 pandemic. Entities opting for this relief must prepare audited financial statements using a modified industry-specific framework and include specific disclosures detailing the quantitative and qualitative impacts on their financial position. External auditors are required to reflect this modified basis of accounting in their audit opinions and include an Emphasis of Matter paragraph to highlight the deviation from standard Philippine Financial Reporting Standards.
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