Instruction No. 002/05-CSBF on the Conditions for Periodic and Annual Accounting Closure and the Publication of Financial Documents by Credit Institutions

INSTRUCTION N°002/05-CSBF on the Conditions for Periodic and Annual Accounting Closure, and the Publication of Financial Documents by Credit Institutions.

INSTRUCTION N°002/05-CSBF on the Conditions for Periodic and Annual Accounting Closure, and the Publication of Financial Documents by Credit Institutions.

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The Banking and Financial Supervision Commission (CSBF) of the Republic of MADAGASCAR, Pursuant to Articles 41 and 42 of Law No. 95 030 dated February 22, 1996, concerning the activity and supervision of credit institutions, whereby it is the responsibility of the CSBF to establish by instruction the rules relating to the accounting plan for credit institutions, the conditions for periodic and annual closure of their accounts, the publication of their financial documents and other information intended for both supervisory authorities and the public, Having regard to Instruction No. 001/05-CSBF dated June 1, 2005 on the Accounting Plan for Credit Institutions - PCEC 2005, H E R E B Y D E C I D E S

Article 1. - Licensed credit institutions authorized to conduct banking operations in Madagascar shall submit three (3) copies, of which two (2) to the Central Bank and one (1) copy to the General Secretariat of the CSBF, the periodic financial statements and year-end documents specified in Annex 1, prepared as of the last business day of the month or period. These documents are prepared in accordance with the provisions of Instruction No. 001/05-CSBF dated June 1, 2005, and transmitted according to the periodicity and modalities set forth in Annex 2. Credit institutions shall submit to the General Secretariat of the CSBF their year-end accounting statements, in the forms provided by PCEC 2005, no later than one month before their presentation to the General Assembly of their shareholders or members, along with all reports related to these documents prepared by statutory auditors, bodies acting in their stead, and, where applicable, external auditors. Within fifteen days of receiving these documents, the Secretary General shall acknowledge receipt to the institution or notify it of any observations. In case of serious reservations, the Commission shall rule within one (01) month from receipt of the documents. The Secretary General's letter or the Commission's decision shall be communicated to the General Assembly. Approved annual accounts must reach the General Secretariat of the CSBF no later than April 30 of the following fiscal year.

Article 2. - The annual accounts of credit institutions must be published in the Official Journal and in at least two of the main national press organs under the heading "Legal Announcements". This publication, which must include the general report of the statutory auditors (or acting body) on the fairness and regularity of the information provided, must take place within forty-five (45) days from the approval of the accounts by the competent body. Publishable accounts are presented in the form defined in Annex 3. The headings of standard statements are served by simply aggregating the balances from the detailed year-end financial statements; they may be subdivided, at the initiative of the institutions, to ensure better public information. These documents are kept available for clients and generally for third parties. For mutual financial institutions and non-mutual credit institutions specializing in microfinance, publication is carried out by mandate to the professional association of which they are members. For institutions organized in solidarity networks, publication may cover only the consolidated financial statements. The publication will note when the opinion of a statutory auditor for an institution or network contains a reservation. Each institution remains free to carry out additional individual publications. Credit institutions shall submit to the Commission's General Secretariat copies of the publications made under this article, as well as the special report of the statutory auditors.

Article 3. - Failure to comply with the provisions of this instruction shall result in the application of sanctions set forth in Articles 49 and/or 52 of Law No. 95 030 dated February 22, 1996. Article 4. - Credit institutions newly subject to the banking law, already active but not yet licensed, must submit in support of their licensing application financial statements prepared in accordance with these provisions. These provisions repeal all contrary provisions of the same subject matter.

Done in Antananarivo, on June 1, 2005. For the Banking and Financial Supervision Commission, The President, Gaston E. RAVELOJAONA.

MODALITIES FOR PREPARATION AND TRANSMISSION OF PERIODIC SITUATIONS AND ANNEX STATEMENTS

Regime for all categories of institutions	Specific regime for institutions exclusively licensed for microfinance operations (With central body)	Specific regime for institutions exclusively licensed for microfinance operations (Without central body)
Credit institutions other than microfinance institutions
Periodicity	Every month	Every month for network institutions whose total from the last approved balance sheet exceeds 50 billion. <br> Every month for institutions whose total from the last approved balance sheet exceeds 50 billion.
At the end of each civil quarter for network institutions whose total from the last approved balance sheet is between 10 and 50 billion.	At the end of each civil semester for the overall network situation and synthesis statements serving as situations for institutions whose total from the last approved balance sheet is below 10 billion.	These provisions apply to the central body for its own operations. <br> At the end of each civil quarter for institutions whose total from the last approved balance sheet is between 10 and 50 billion. <br> At the end of each civil semester for institutions whose total from the last approved balance sheet is below 10 billion.
Closing Date	Last business day of the month	Last business day of the month or period (i.e., March 31, June 30, September 30, and December 31 for quarterly periodicity; June 30 and December 31 for semi-annual periodicity, or the last business day preceding these dates).
Specific provisions for accounts closed on December 31	If final accounts can be prepared and transmitted within the deadlines for sending periodic statements, only year-end documents are sent to the Commission's General Secretariat. <br> Otherwise, a provisional statement must be communicated to the General Secretariat.
Transmission method to CSBF General Secretariat	Direct	Direct by the central body for the overall semi-annual situation and synthesis statements. <br> Via the central body for required monthly or quarterly statements.
Transmission deadlines	25 days after the closing date	45 days after the closing date in case of monthly or quarterly periodicity. <br> Two months in case of semi-annual periodicity.

MODALITIES FOR PREPARATION AND DISPATCH OF INCOME STATEMENTS

Regime for all categories of institutions	Specific regime for institutions exclusively licensed for microfinance operations (With central body)	Specific regime for institutions exclusively licensed for microfinance operations (Without central body)
Credit institutions other than microfinance institutions
Periodicity	At the end of each civil quarter for institutions whose total from the last approved balance sheet is equal to or exceeds 100 billion.	At the end of each civil semester for other institutions. <br> At the end of each civil quarter, for network institutions and for the central body for its own operations, whose total from the last approved balance sheet is equal to or exceeds 50 billion. <br> At the end of each civil semester for overall network results and synthesis statement of individual affiliated institutions' results.
Closing Date	Last business day of the period (i.e., March 31, June 30, September 30, and December 31 for quarterly periodicity; June 30 and December 31 for semi-annual periodicity, or the last business day preceding these dates).	Last business day of the period (i.e., March 31, June 30, September 30, and December 31 for quarterly periodicity; June 30 and December 31 for semi-annual periodicity, or the last business day preceding these dates).
Body responsible for transmission	General Management	Central body
Transmission deadlines	25 days after the closing date	45 days after the closing date in case of quarterly periodicity. <br> Two months in case of semi-annual periodicity.

MODALITIES FOR PREPARATION AND DISPATCH OF YEAR-END DOCUMENTS

Regime for all categories of institutions	Specific regime for institutions exclusively licensed for microfinance operations (With central body)	Specific regime for institutions exclusively licensed for microfinance operations (Without central body)
Credit institutions other than microfinance institutions
Closing Date	Last business day of December.	Last business day of December.
Dispatch modalities	Dispatch of year-end documents to the General Secretariat no later than one month before examination by the General Assembly.	Dispatch of year-end documents to the General Secretariat no later than one month before examination by the General Assembly.
Transmission deadline	Dispatch of the Minutes of the General Assembly and, if applicable, amended accounts by it, on April 30 at the latest following the closed fiscal year.	Dispatch by the central body of the Minutes of the General Assemblies of network institutions and, if applicable, amended accounts by them, on April 30 at the latest following the closed fiscal year.
Transmission method to CSBF General Secretariat	Direct	Direct by the central body for accounts of the entire network. <br> Via the central body for required individual statements.

RECAPITULATION OF ACCOUNTING STATEMENTS TO BE COMMUNICATED Regime for all categories of credit institutions other than microfinance institutions

PERIODICITY	Monthly	Quarterly	Semi-annual	Annual
References of accounting statements	CB 101 Accounting Situation <br> CB 102 Economic Support Statement (in Ariary, in foreign currency) <br> CB 103 Appendix to Economic Support Statement (in Ariary, in foreign currency) <br> CB 104 Information Statement	N.B. : if total from last approved balance sheet is equal to or exceeds 100 billion: <br> CB 201 Detailed Income Statement	N.B. : if total from last approved balance sheet is below 100 billion: <br> CB 201 Detailed Income Statement	CB 101 Detailed Balance Sheet <br> CB 102 Economic Support Statement (in Ariary, in foreign currency) <br> CB 103 Appendix to Economic Support Statement (in Ariary, in foreign currency) <br> CB 104 Various Information Statement <br> CB 104 bis Various Information Statement (continued)
Closing Dates	Last business day of each month	Last business day of each civil quarter	Last business day of each civil semester	Last business day of December.
Deadlines and dispatch modalities	25 days after closing date	25 days after closing date	25 days after closing date	April 30 at the latest following the closed fiscal year. <br> Presentation to CSBF General Secretariat one month before the General Assembly.
N.B. : For each declaration periodicity: communicate prudential compliance control statements CB 301 to 307 defined in Annex 1.

RECAPITULATION OF ACCOUNTING STATEMENTS TO BE COMMUNICATED Regime for microfinance institutions - with central body

PERIODICITY	Monthly	Quarterly	Semi-annual	Annual
Declaration thresholds for accounting situations	For each network institution whose total from last approved balance sheet exceeds 50 billion:	For each network institution whose total from last approved balance sheet is between 10 and 50 billion:	For each network institution whose total from last approved balance sheet is below 10 billion:	For each network institution.
References of accounting statements to be communicated by each institution	CB 101 Accounting Situation <br> CB 102 Economic Support Statement (in Ariary, in foreign currency) <br> CB 103 Appendix to Economic Support Statement (in Ariary, in foreign currency) <br> CB 104 Various Information Statement <br> CB 104 bis Various Information Statement (continued) <br> N.B. : provisions applicable to central body for its own operations, to groups of solidary institutions.	CB 101 Accounting Situation <br> CB 102 Economic Support Statement (in Ariary, in foreign currency) <br> CB 103 Appendix to Economic Support Statement (in Ariary, in foreign currency) <br> CB 104 Various Information Statement <br> CB 104 bis Various Information Statement (continued) <br> N.B. : provisions applicable to central body for its own operations, to groups of solidary institutions.	CB 101 Accounting Situation <br> CB 102 Economic Support Statement (in Ariary, in foreign currency) <br> CB 103 Appendix to Economic Support Statement (in Ariary, in foreign currency) <br> CB 104 Various Information Statement <br> CB 104 bis Various Information Statement (continued) <br> N.B. : provisions applicable to central body for its own operations, to groups of solidary institutions.	CB 101 Detailed Balance Sheet <br> CB 102 Economic Support Statement (in Ariary, in foreign currency) <br> CB 103 Appendix to Economic Support Statement (in Ariary, in foreign currency) <br> CB 104 Various Information Statement <br> CB 104 bis Various Information Statement (continued) <br> N.B. : provisions applicable to central body for its own operations, to groups of solidary institutions.
References of accounting statements to be communicated for the entire network	CB 105 Synthesis of Balance Sheets for overall network situation. <br> N.B. : For each declaration periodicity: communicate prudential compliance control statements CB 301 to 307 defined in Annex 1.	(Same as Monthly)	(Same as Monthly)	(Same as Monthly)

RECAPITULATION OF ACCOUNTING STATEMENTS TO BE COMMUNICATED Regime for microfinance institutions - with central body (continued)

PERIODICITY	Monthly	Quarterly	Semi-annual	Annual
Declaration thresholds for income statement	For each network institution whose total from last approved balance sheet exceeds 50 billion:	For each network institution whose total from last approved balance sheet is below or equal to 50 billion:	For each network institution.
References of accounting statements to be communicated by each institution	CB 201 Detailed Income Statement <br> N.B. : provisions applicable to central body for its own operations, to groups of solidary institutions.	CB 201 Detailed Income Statement <br> N.B. : provisions applicable to central body for its own operations, to groups of solidary institutions.	CB 201 Detailed Income Statement <br> N.B. : provisions applicable to central body for its own operations, to groups of solidary institutions.
References of accounting statements to be communicated for the entire network	CB 202 Synthesis of Income Statements for the entire network. <br> N.B. : For each declaration periodicity: communicate prudential compliance control statements CB 301 to 307 defined in Annex 1.	(Same as Monthly)	(Same as Monthly)
Closing Dates	Last business day of each month. <br> 45 days after closing date.	Last business day of each civil quarter. <br> 45 days after closing date.	Last business day of each civil semester. <br> 45 days after closing date, except for income statement: 60 days.	Last business day of December. <br> April 30 at the latest following closed fiscal year. Presentation to CSBF General Secretariat one month before General Assembly.

RECAPITULATION OF ACCOUNTING STATEMENTS TO BE COMMUNICATED Regime for microfinance institutions - without central body

PERIODICITY	Monthly	Quarterly	Semi-annual	Annual
Declaration thresholds for accounting situations	If total from last approved balance sheet exceeds 50 billion: <br> CB 101 Accounting Situation <br> CB 102 Economic Support Statement (in Ariary, in foreign currency) <br> CB 103 Appendix to Economic Support Statement (in Ariary, in foreign currency) <br> CB 104 Various Information Statement <br> CB 104 bis Various Information Statement (continued)	If total from last approved balance sheet is between 10 and 50 billion: <br> (Same statements)	If total from last approved balance sheet is below 10 billion: <br> (Same statements)	No threshold. <br> CB 101 Detailed Balance Sheet <br> CB 102 Economic Support Statement (in Ariary, in foreign currency) <br> CB 103 Appendix to Economic Support Statement (in Ariary, in foreign currency) <br> CB 104 Various Information Statement <br> CB 104 bis Various Information Statement (continued)
N.B. : For each declaration periodicity: communicate prudential compliance control statements CB 301 to 307 defined in Annex 1.

RECAPITULATION OF ACCOUNTING STATEMENTS TO BE COMMUNICATED Regime for microfinance institutions - without central body (continued)

PERIODICITY	Monthly	Quarterly	Semi-annual	Annual
Declaration thresholds for income statement	If total from last approved balance sheet exceeds 50 billion: <br> CB 201 Detailed Income Statement	If total from last approved balance sheet is below or equal to 50 billion: <br> CB 201 Detailed Income Statement	No threshold. <br> CB 201 Detailed Income Statement
Closing Dates	Last business day of each month. <br> 45 days after closing date.	Last business day of each civil quarter. <br> 45 days after closing date.	Last business day of each civil semester. <br> 45 days after closing date, except for income statement: 60 days.	Last business day of December. <br> April 30 at the latest following closed fiscal year. Presentation to CSBF General Secretariat one month before General Assembly.