Regulatory Alerts2016-11-15
Instruction No. 028-11-2016 on Accounting for Received Commissions and Marginal Transaction Costs
The Governor of the Central Bank of West African States (BCEAO) issued Instruction No. 028-11-2016 to mandate that subject banks and financial institutions account for received commissions and marginal transaction costs by spreading them over the effective life of credit exposures. The directive requires institutions to apply either an actuarial or alternative linear/pro-rata method consistently, with specific rules governing commercial renegotiations, debtor-driven restructuring, and credit exposure transfers. Effective January 1, 2018, the instruction supersedes prior regulations and dictates how these costs are integrated into the balance sheet, reported as net interest income, and disclosed in financial statement notes.
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