Amendment of Circular 249 re: Inclusion of additional accounts on taxable and Non-Taxable Deposits, Deferred Income Tax and Restructured Loans/ Development Incentive Loans

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MAYNILA, PILIPINAS

SUPERVISION AND EXAMINATION SECTOR OFFICE OF THE DEPUTY GOVERNOR

CIRCULAr LEttEr

TO : ALL RURAL/COOPERATiVE/MICROFINANCE (RURAL) BANKS

Icooperative/rural microfinance (rural) banks is hereby amended to further include the following: Manual of Accounts, revised reportorial requirements and other related reports (Manual of Unified Reports -- Generai Ledger/Subsidiary Ledger) of rural Circular No. 249 dated June 26, 2000 which implemented the Updated

A. Taxable and Non-Taxable Deposit Liabilities

tax-exempt under R.A. No. 8424 (Tax Reform Act of 1997) and deposit accounts of foundations, charitable institutions, provident funds, pension funds and government agencies which are qualified to be tax-exernpt under existing laws. Banks shall record separately deposit accounts of individuals which are

Banks shall aiso record separately the interest expense on these deposits.

B. Deferred Income Tax

properly define its source, the following sub-accounts are created: To enhance the monitoring of the account Deferred Income Tax and to

Ailowance for Probable Losses - Deferred Income Tax Deferred Income Tax - Timing Differences Deferred income Tax - Net Operating Loss Carry-Over (NOLCO) Deferred Income Tax - Minimum Corporate Income Tax (MCiT)

C. Restructured Loans and Development Incentive Loans

incentive Loans are also created to eliminate variances resulting from cross Loanable Funds Generated Which Were Set Aside for Agrarian Reform Credit verification of balances reflected in the quarterly Report on the Utilization of Condition as follows: and Other Agriculturai Credit against the Monthiy Consolidated Statement of Additional sub-accounts for Restructured Loans and Development

MAG-IMPOK SA BANGKO

Restructured Agrarian Reform /Other Agricultural Credit Loans

Items in Litigation -- Restructured Agrarian Reform/Other Agricuitural Past Due Restructured Development Incentive Loans Restructured Development incentive Loans Past Due Restructured Agrarian Reform/Other Agricuitural Credit Loans

Items in Litigation -- Restructured Development Incentive Loans Credit Loans

June 26, 2000, shali be disclosed in the following reports: Accordingly, the foregoing amendments to Circuiar No. 249 dated

A. Consolidated Statement of Condition (CSOC)

2. Schedule 2 page 3 -- Annex B 1. Main Report - Annex A

B. Consolidated Statement of income and Exoenses (cSIE) - Annex C

D. Manuai of the Unified Reports (GL/SL) C. Analysis of Undivided Profits and Surplus (Free) Accounts -- Annex D SCHAD Template (Additional information Schedule) -- Annex H SCHAD Data Structure -- Annex 1 Manual of Accounts -- Annex E General Ledger Template -- Annex F Deposit Liabilities Subsidiary Ledger (SL) -- Data Structure -- Annex G

Schedule 2, CSIE and Analysis of Undivided Profits and Surplus (Free)) Accounts, as revised, starting with reports as of end March 20o3. All rural/cooperative/microfinance (rural) banks shall submit the csOc

October 2, 2002, shall be available upon request from SRs0, 1sth floor Multi- Storey Building. A. Mabini St., Manila., or at telephone nos. 525-5234. required under Circular Letters dated May 15, 2002, September 25, 2002 and Tempiates of the revised reports as well as the additional Schedules

NESTOR A. ESPENILLA Sector-In-Charge

NC 2002

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