THE Securities and Exchange Commission (SEC) is easing financial reporting requirements for smaller businesses while advancing sustainability disclosure standards as part of efforts to align Philippine corporate reporting with international practices.
The reforms were highlighted during the 43rd session of the United Nations Conference on Trade and Development (Unctad) Intergovernmental Working Group of Experts on International Standards of Accounting and Reporting (ISAR), held from Sept. 30 to Oct. 2 in Geneva, Switzerland.
SEC Commissioner Rogelio Quevedo and Atty. Joseph Anthony Perez represented the Philippines at the annual forum, which brought together regulators, policymakers, standard-setters and reporting experts to discuss financial and sustainability reporting, particularly the needs of micro, small and medium-sized enterprises (MSMEs).
During the opening panel discussion, Quevedo cited SEC Memorandum Circular 4, Series of 2026, which raised the audit threshold for corporations and allowed smaller entities to submit certified financial statements instead of audited financial statements, reducing compliance costs and administrative burdens for micro entities.
“Financial reporting requirements should be proportionate to the size, nature, and complexity of an entity, while still providing users with information that is relevant and useful for decision-making,” Quevedo said.
He also emphasized the need to connect financial and sustainability reporting.
“Connected reporting helps investors and other users understand how sustainability-related risks and opportunities affect a company’s financial position, performance, cash flows, access to financing, cost of capital, and long-term resilience,” Quevedo said.
Meanwhile, Perez presented the Philippines’ sustainability disclosure reforms during a session on MSME reporting needs and the connectivity of financial and sustainability reporting.
He discussed the adoption of Philippine Financial Reporting Standards (PFRS) S1 and S2 and the country’s sustainability reporting roadmap, which provides for a phased approach to implementation based on reporting entities’ readiness.
The framework begins with larger publicly listed companies before gradually expanding coverage to other entities, taking into account differences in their capacity to comply with sustainability disclosure requirements.
Perez also underscored the importance of sustained capacity-building to help companies implement the new reporting requirements and strengthen the links between sustainability disclosures and financial information.
The Unctad-ISAR session focused on addressing MSME reporting needs and improving the connectivity of financial and sustainability reporting to support transparency, sustainable finance and economic resilience.
The SEC said its participation reflects its continuing efforts to align Philippine corporate reporting practices with international standards and promote transparency, accountability and sustainable economic growth.
