BSP CIRCULAR NO. 225-00, February 03, 2000

[ BSP CIRCULAR NO. 225-00, February 03, 2000 ]

AMORTIZATION TO THE FOREIGN INVESTMENT RULES UNDER CB CIRCULAR NO. 1389

The Monetary Board, in its Resolution No. 71 dated January 21, 2000, decided to allow the amortization of goodwill up to a maximum period of forty years as an additional incentive for mergers/consolidation, purchase or acquisitions of majority or all of the outstanding shares of stocks of a bank under Circular No. 172, which is consistent with the generally accepted accounting principles for intangible assets under Accounting Standards Council's SFAS No. 9, provided that the 40 years is a maximum period and unless there are compelling reasons to extend for this long, the amortization period shall not be longer than 10 years.

This Circular shall take effect immediately.

Adopted: 3 Feb. 2000

(SGD.) AMANDO M. TETANGCO, JR.

Officer-In-Charge