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CFAS Group Task

The document outlines the classification boundaries for corporations in the Philippines based on asset size, employee count, and public interest as per regulations from the SEC, DTI, and PSE for 2025-2026. It categorizes enterprises into micro, small, medium, and large based on total assets and employee numbers, defines listed companies by their trading on the PSE, and specifies regulated companies under government supervision. Additionally, it details large corporations' definitions and tax implications based on their financial metrics.

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Nelson Fellone Jr.
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5 views2 pages

CFAS Group Task

The document outlines the classification boundaries for corporations in the Philippines based on asset size, employee count, and public interest as per regulations from the SEC, DTI, and PSE for 2025-2026. It categorizes enterprises into micro, small, medium, and large based on total assets and employee numbers, defines listed companies by their trading on the PSE, and specifies regulated companies under government supervision. Additionally, it details large corporations' definitions and tax implications based on their financial metrics.

Uploaded by

Nelson Fellone Jr.
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Conceptual Framework and Accounting Standards BSA 1-2 ​

Members: Chua, Yiseng A., Fellone, Nelson Jr. B., Lubo, Jhenny Rose A.
Zamora, Athena Faye ​
​
Assignment: Determine the boundaries for classifying a large corporation, listed
companies, regulated companies, and SMEs. ​
​
Based on regulations from the Securities and Exchange Commission (SEC), Department
of Trade and Industry (DTI), and the Philippine Stock Exchange (PSE) for 2025-2026,
the boundaries for classifying corporations in the Philippines are primarily determined by
asset size, employee count, and public interest.

1. Small, Medium, and Large Enterprises (MSMEs)


Under Republic Act No. 9501 (Magna Carta for MSMEs), enterprises are classified
based on total assets (excluding land) and employee size.
Philippine Commission on Women (PCW)

Micro: Assets not more than ₱3,000,000; Employees: Less than 10.
Small: Assets ₱3,000,001 to ₱15,000,000; Employees: 10 to 99.
Medium: Assets ₱15,000,001 to ₱100,000,000; Employees: 100 to 199.
Large Corporation: Assets exceeding ₱100,000,000 and/or 200 or more employees.
Philippine News Agency

2. Listed Companies
Listed companies are entities whose shares are traded on the Philippine Stock
Exchange (PSE). They are classified for trading purposes based on their primary
business activity. Philippine Stock Exchange

Sector Classification: Companies are assigned to sectors (e.g., Financials, Industrial,


Holding Firms, Property, Services, Mining and Oil) based on the business activity
that generates 60% or more of their revenue.
Sustainability Reporting: Effective 2026, the SEC classifies Listed Companies into
tiers based on market capitalization for reporting sustainability standards (PFRS S1 and
S2):
Tier 1: Market capitalization > ₱50 billion (reporting starts 2027).
Tier 2: Market capitalization ₱3 billion to ₱50 billion (reporting starts 2028).
Tier 3: Market capitalization ≤ ₱3 billion (reporting starts 2029).
3. Regulated Companies
These are companies supervised by specific government agencies (e.g., SEC, Bangko
Sentral ng Pilipinas - BSP) due to their industry or public interest status.
Baker McKenzie Resource Hub

BSP Supervised Financial Institutions (BSFIs): Includes banks, non-bank financial


institutions, quasi-banks, and electronic money issuers.
SEC-Regulated Entities: Corporations with public interest (e.g., public utilities, listed
companies, financial institutions) must comply with stricter reporting rules, such as using
full PFRS.

Audit Threshold (General): As of Dec 31, 2025, corporations with total assets or liabilities
exceeding ₱3,000,000 must file audited financial statements (AFS).
Large Non-Listed Entities (LNLs): Specific entities with annual revenue > ₱15 billion are
subjected to higher, public-company-level reporting standards starting 2028.

4. Large Corporations (Specific Contexts)


General Definition: Assets > ₱100M.
Large Non-Listed (LNLs): Revenue > ₱15B (for 2026 Sustainability Reporting).
Tax Purposes: Corporations with net taxable income > ₱5 million or total assets > ₱100
million (excluding land) are subject to standard 25% corporate income tax, while smaller,
qualifying domestic corporations may pay 20%.​
​

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