Regulatory Alerts2024-06-05 | NCF-04Technical Standards for the Recognition and Accounting Registration of Commissions on Loans of Insurance Companies
The Technical Standards Committee of the Central Reserve Bank of El Salvador issued these norms to establish accounting criteria for the recognition and registration of commissions charged by insurance companies on loans. The regulations require entities to recognize 30% of loan commissions as income upon collection and amortize the remaining balance monthly over the loan's duration based on its term. These standards apply to domestic insurance companies, foreign branches, and cooperative associations, replacing previous regulations to ensure accurate financial reporting.
Share