SEC reportorial requirements simplified for micro businesses

The Securities and Exchange Commission (SEC) is moving to simplify the reportorial requirements of micro enterprises.

- By RICHMOND MERCURIO

The SEC said it has secured the nod of the Department of Finance (DOF) to exempt micro enterprises from submitting audited financial statements.

The commission in October recommended to the DOF the exemption of more companies from the mandatory submission of audited financial statements to relieve financial pressures on micro, small and medium enterprises (MSMEs), reduce incidents of rubber-stamp audits and simplify compliance obligations.

The DOF approved the adjustment of the audit threshold, confirming that such a policy aligns with the government’s effort to stimulate economic growth, while ensuring strong compliance monitoring and accountability of certifying officers.

The SEC is authorized to revise the prescribed audit threshold, subject to the approval of the DOF.