The Monetary Board (MB) approved on 19 January 2006 the new Financial Reporting Package (FRP), which amends the Manual of Accounts (MOA) and revises the reportorial requirements for banks to align the same with the provisions of the Philippine Financial Reporting Standards (PFRS)/Philippine Accounting Standards (PAS).
The new FRP was designed so as to integrate to the greatest extent possible the requirements of the PFRS/PAS and the Basel 2 capital adequacy framework. It is also deemed to enhance the off-site surveillance of the BSP on its supervised entities.
The FRP is divided into five sections, namely: (1) General Instructions, which describe the overall reporting requirements; (2) Structure of the FRP (3) Revised Manual of Accounts; (4) Line Item Instructions for the Balance Sheet, Income Statement and Supporting Schedules; and (5) Report Formats for solo and consolidated reports.
Solo reports shall comprise of the head office plus its branches while the consolidated reports shall comprise of the parent bank plus its financial allied subsidiaries, excluding insurance subsidiaries. The consolidated financial statements would complement BSP’s thrust of consolidated approach to supervision.
The new reportorial requirements shall become effective starting with the December 31, 2006 month-end/quarter-end reports. Pilot runs for the FRP shall be conducted on a quarterly basis which shall commence for the quarter-ending December 31, 2005. During the pilot run period, banks shall be required to continue to submit the existing Consolidated Statement of Condition (CSOC) and Consolidated Statement of Income and Expense (CSIE) until advised otherwise.
The new FRP provides the reporting infrastructure to support the earlier issuances of the BSP on the adoption of PFRS/PAS. The BSP announced its adoption of the said standards effective the annual financial reporting period beginning 1 January 2005 in its Memorandum to All Banks and Other BSP Supervised Financial Institutions dated 11 January 2005.