Conglomerate San Miguel Corp. (SMC) has been fined by the Securities and Exchange Commission (SEC) for a misstatement reflected in its unaudited consolidated financial statement as of June 30.
SMC said that based on the SEC’s Office of the General Accountant (OGA), the misstatement pertains to the incorrect classification of cash outflow related to the acquisition of property, plant and equipment under operating activities instead of under investing activities, as provided under Philippine Accounting Standards PAS 7, statement of cash flows.
The assessment was made in connection with the evaluation by the OGA of the financial statement of the company in relation with the public offering of the 266.67 million Series 2 preferred shares with an oversubscription option of up to 133.33 million Series 2 preferred shares.
The OGA gave SMC a conditional clearance to proceed with the offering and was directed to submit its unaudited consolidated financial statement as of June 30, as amended to reflect the findings of the OGA.
It was also directed to update the financial information, particularly the cash flow-related information in the prospectus in relation to the public offering.
SMC was imposed a penalty of P1 million.
‘The corporation will comply with the directive of the OGA and pay the penalty,’ SMC said.