The Monetary Board approved on 22 January 2009 the issuance of a simplified report format of the Financial Reporting Package (FRP) specifically designed for rural and cooperative banks (RBs/Coop Banks) that engage only in transactions that are within their generally authorized activities.
The simplified report has been designed for and can be used only by RBs/Coop Banks that have no transactions in the foreign currency deposit unit (FCDU) and derivatives activities. On the other hand, RBs/Coop Banks with financial allied subsidiaries as well as those which have or intend to engage in FCDU or derivatives transactions are required under said issuance to continue to accomplish the FRP report format issued under Circular No. 512 dated 3 February 2006, as amended.
The simplified FRP report format reduces the number of schedules required in the FRP issued under Circular No. 512, as amended, by sixty-one percent (61%). It also blocks cells pertaining to transactions in the FCDU and certain transactions in the Foreign Regular books and/or with non-resident counterparties.
The Monetary Board emphasized that the simplified FRP report format provides for a substantial simplification of the reportorial requirement without compromising the information that would be needed by the BSP in conducting its supervisory mandate. This is in line with the on-going report rationalization program of the BSP which streamlines the information and data required of supervised financial institutions while continuing to generate more relevant and timely statistics.
Both the simplified FRP report format and that issued under Circular No. 512, as amended, will be on parallel run with the General Ledger - Consolidated Statement of Condition and Consolidated Statement of Income and Expense for the end March 2009 and end June 2009 reports. Meanwhile, live implementation will start with the end September 2009 report.
The FRP is composed of the balance sheet, income statement and detailed schedules of selected accounts. It is designed to align the Manual of Accounts for banks and the corresponding BSP reportorial requirements with the provisions of the Philippine Financial Reporting Standards and Philippine Accounting Standards.