Today is December 11, 2018

007 – Statement of Management’s Responsibility (SMR)

Bulletin No.

Subject Matter

Clarification/Details

007

Statement of Management’s Responsibility (SMR)

(1)   For issuers of securities to the public, the SMR shall be attached to both the consolidated financial statements and the parent company’s financial statements for filing with the Commission.

 

(2)   Paragraph (iv) of Part I (2)(B)(iv) of the Rule is also applicable to representative offices established in the Philippines. Thus, the SMR shall be signed by its local manager or chief representative in the Philippines.

 

(3)   If the financial statements for filing are comparative, the SMR has to be comparative, even if the independent auditors for the comparative periods are different.

 

The following is an illustration on how the last paragraph of the SMR may be worded in such a case:

 

 “(name of audit firm) and (indicate prior year auditor), the independent auditors appointed by the stockholders for the period December 31, 2011 and 2010, respectively, have examined the consolidated financial statements of the company in accordance with Philippine Standards on Auditing, and in their reports to the stockholders (or members), have expressed their opinion on the fairness of presentation upon completion of such examination.

 

(name of audit firm) and (indicate prior year auditor), the independent auditors appointed by the stockholders for the period December 31, 2011 and 2010, respectively, have examined the consolidated financial statements of the company in accordance with Philippine Standards on Auditing, and in their reports to the stockholders (or members), have expressed their opinion on the fairness of presentation upon completion of such examination.