Just recently, January 14, 2019, The Capital Markets Integrity Corporation (CMIC) have released a memo that sets out reminders for all trading participants (TP) about filing income tax returns and financial statements for this year. We are all aware that there are certain penalties imposed on late filings and we don’t want that to happen.
For the information of all trading participants, we have listed in this article, CMIC’s Guidelines on The Submission of 2018 Audited Financial Statements:
1. Every Trading Participant (“TP”) shall file its Annual Audited Financial Statements (“AAFS”) for the year 2018 to the Securities and Exchange Commission (“Commission”) and the CMIC in accordance with the schedule prescribed in SEC Memorandum Circular No. 1, series of 2019.
2. Only external auditors classified as “A” or “B” by the Commission are allowed to audit TPs. AAFS audited by non-accredited external auditors will be deemed not submitted.
3. Unless the TP notifies the Commission otherwise and receives written approval to change the date, 31st of December of each year shall be considered the close of its fiscal year.
4. The 2018 Audited Financial Report shall contain the following:
a. Statement of Management’s Responsibility;
b. Statement of Financial Condition;
c. Statement of Comprehensive Income;
d. Statement of Cash flows;
e. Statement of Changes in Stockholder’s Equity;
f. Statement of Changes in Liabilities Subordinated to Claims of General Creditors;
g. Computation of Risk-Based Capital Adequacy Requirement/Ratio (top sheet only);
h. Information relating to the Possession or Control Requirements;
i. Computation for Determination of Reserve Requirements;
j. Report describing any material inadequacies found to exist or found to have existed since the date of the previous audit; and,
k. Results of Monthly Securities Count Conducted as of the date of the balance sheet statements in the AAFS.
5. For the details regarding the submission of the AAFS, you may refer to Article IX Section 3 of the CMIC Rules.
As we aim to promote financial reporting awareness, through this article we aim to remind you of the near-ending Financial Reporting Season, we hope that you find it helpful.
In pursuit of our advocacy in helping other companies in their financial reporting requirements, we highly recommend the use of asset valuation to ensure the accuracy of financial reports. If you would like to know more about valuation and how it can save a chunk of your precious time, effort, and resources in preparing for your Audited Financial Statement, click here.
Today, you’ve only got exactly a month before the last day of filing your Audited Financial Statement. Take note of the necessary requirements and most of all, don’t forget to get your assets valued!
Don’t let the deadline beat you, #BeatApril15!
