Title
SEC Online Submission for AFS Reports
Law
Sec Memorandum Circular No.2, S. 2005
Decision Date
Feb 17, 2005
Corporations are now permitted to submit their Audited Financial Statements online through the SEC's new electronic submission facility, enhancing efficiency and transparency in compliance with the Electronic Commerce Act.

Law Summary

Legal Basis and Regulatory Consistency

  • Implemented pursuant to Section 27 of Republic Act No. 8792 (Electronic Commerce Act) and Section 37 of its Implementing Rules and Regulations.
  • Aligns with government policy to utilize Information and Communication Technology (ICT) for efficient and transparent governance.

Procedures for Online Submission

  • Corporations choosing online submission must sign a Memorandum of Agreement (MOA) with the Securities and Exchange Commission (SEC).
  • After MOA signing, corporations must register for the online submission facility.
  • Corporations required to submit Financial Statements (F/S) diskette must use the SEC-provided F/S template.
  • SEC provides an online portal for submission of the F/S diskette data in addition to the AFS electronic document.

Provisions on Submission Formats

  • The AFS online submission involves electronic or soft copies equivalent to physical documents.
  • The F/S diskette submission uses a SEC-devised template available for download from the SEC Website's "Downloads" section.

Effect on Traditional Submission Methods

  • The Memorandum Circular governs exclusively online submissions for those opting in.
  • Corporations choosing to submit hard copies and diskettes under existing rules remain unaffected by this Circular.

Implementation and Effectivity

  • The Circular took effect 15 days after publication in a newspaper of general circulation or posting on the official SEC Website.
  • Ensures accessibility of information through web posting at //sec.gov.ph/.

Institutional Authority

  • Issued and signed by the Chairperson of the SEC, demonstrating authoritative backing and enforcement.
  • Reflects SEC's role in regulatory oversight and facilitation of corporate reporting requirements.

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