Regulatory Alerts2018-12-06 | CD-SIBOIF-1088-2-DIC6-2018Norm Reforming Articles 15, 16, 17 and Annex 1 of the Standard on Financing Granted by General Warehouses and Assets Acquired in Recovery
The Superintendence of Banks and Other Financial Institutions issued Resolution No. CD-SIBOIF-1088-2-DIC6-2018 to amend the regulatory framework for general warehouses regarding the valuation, provisioning, and accounting treatment of assets acquired in recovery. The reform mandates that warehouses apply International Financial Reporting Standards (IFRS), specifically IFRS 5 and IFRS 13, for classifying non-current assets held for sale and measuring fair value, while establishing strict mandatory provisioning percentages based on the age of movable and immovable assets. These provisions become effective for financial statements generated during the IFRS 1 transition period starting January 1, 2019, and officially enter into force upon notification.