Philippine Securities and Exchange Commission consults on exempting more micro enterprises from audited financial statements after Department of Finance approval

The Philippine Securities and Exchange Commission has released for public comment draft amendments to Revised Securities Regulation Code Rule 68 that would allow more micro enterprises to file certified, rather than audited, financial statements. Following Department of Finance approval, the proposal would raise the audit exemption threshold for both stock and nonstock corporations to total assets or liabilities not exceeding PHP 3 million, from the current PHP 600,000. Corporations within the threshold would submit financial statements certified under oath by the president and the treasurer or chief financial officer as authorised by the board, with the certifying officers assuming full responsibility for accuracy and completeness and facing penalties for incomplete, inaccurate, false or misleading filings under the Securities Regulation Code and the Revised Corporation Code. The higher threshold would not apply to entities in Groups A, B and C under Revised SRC Rule 68 or other corporations treated as vested with public interest, and the SEC would retain authority to require audited financial statements when needed for investor protection, regulatory enforcement or the public interest. The SEC aims to apply the PHP 3 million threshold to financial statements covering fiscal years ending on or after December 31, 2025. Comments on the proposed amendments are due by December 24.