Regulatory Alerts1994-03-14
Instruction No. 94-08 of March 14, 1994, on the Accounting of Operations Related to Popular Savings Plans, as Amended by Instruction No. 2009-02 of June 19, 2009 (Consolidated Version)
The Banking Commission issued Instruction No. 94-08, consolidated with amendments from 2009, to mandate specific accounting treatments for Popular Savings Plans (PEP). It requires credit institutions to record PEP deposits under the 'Special Regime Savings Accounts' element in the SITUATION table and to classify accrued interest as an interest expense in the CPTE_RESU table. The instruction further specifies that unvested interest portions must be recorded as regularization accounts on the liability side of the SITUATION table and explicitly repeals the previous 1990 instructions.
Official Texts of the Banking Commission Instruction No. 94-08 of March 14, 1994 Amended by Instruction No. 2009-02 of June 19, 2009 Concerning the Accounting of Operations Related to Popular Savings Plans
Article 1 Deposits received under a Popular Savings Plan opened and managed by a credit institution shall be recorded in the element "Special Regime Savings Accounts" included in the SITUATION table.
Article 2 The amount of interest due by a credit institution to the subscriber of a Popular Savings Plan shall be recorded in the element "Popular Savings Plans" classified as interest expense in the CPTE_RESU table. The counterpart of these sums shall be credited to the element recording Popular Savings Plans. However, when contractual clauses provide, under the conditions described in Article 1-b) of the aforementioned Regulation No. 90-03, that a portion of the interest due will not become definitively vested until after a certain period, this portion shall be recorded as a debit to the income statement by crediting the element "Regularization Account" classified in the elements relating to "Securities Operations and Other Operations" on the liability side of the SITUATION table.
Article 3 This Instruction repeals and replaces Instruction No. 90-02 of April 1, 1990 of the Banking Commission, as amended by Instruction No. 90-05 of September 14, 1990.