Accounting Manual for Investment Banks — BCR — SV

THE STANDARDS COMMITTEE OF THE CENTRAL RESERVE BANK OF EL SALVADOR,

CONSIDERING:
I. That Article 3, paragraph 3 of the Investment Banks Law establishes that, in accordance with the Law for the Supervision and Regulation of the Financial System, investment banks constituted in accordance with the Investment Banks Law shall have the status of members of the Financial System.
II. That Article 4, letter c) of the Law for the Supervision and Regulation of the Financial System establishes that the Superintendence of the Financial System has among its powers to carry out individual and consolidated supervision of the members of the financial system, as well as the supervision of other regulated subjects.
III. That Article 7 of the Law for the Supervision and Regulation of the Financial System establishes who are subject to the provisions of said Law and therefore to the supervision of the Superintendence of the Financial System.
IV. That Article 35, letter f) of the Law for the Supervision and Regulation of the Financial System establishes that it is the obligation of the supervised entities to adequately disclose the economic and financial reality, and to have the backing of their internal and external audits.
V. That Article 99, letter c) of the Law for the Supervision and Regulation of the Financial System establishes that it is the responsibility of the Standards Committee of the Central Reserve Bank to approve the Technical Standards for the preparation, presentation, and dissemination of Financial Statements and supplementary information of the members of the financial system; to determine the accounting obligations and the principles in accordance with which they must keep their accounts; and to establish criteria for the valuation of assets, liabilities, and the establishment of provisions and reserves for risks.

THEREFORE,

by virtue of the regulatory powers conferred by Article 99 of the Law for the Supervision and Regulation of the Financial System, AGREES to issue the following:

ACCOUNTING MANUAL FOR INVESTMENT BANKS

CONTENTS

CHAPTER I
GENERAL PROVISIONS
Comprises the general application provisions in the recording of the operations of the supervised financial entity and subject to this accounting framework.

CHAPTER II
ACCOUNTING FRAMEWORK
Comprises the accounting principles that entities will apply, which will be composed of sections indicating how to proceed for the accounting of regulated elements.

Sections of the Chapter:
SECTION I. Recognition of interest on active operations of credit risk.
SECTION II. Accounting reclassification of loans, contingencies, and suspension of interest recognition.
SECTION III. Write-off of impaired credit risk assets and subsequent recoveries.
SECTION IV. Recognition, measurement, and presentation of extraordinary assets.
SECTION V. Recognition of commissions on loans and contingent operations.
SECTION VI. Establishment of reserves for country risk.
SECTION VII. Specific treatments defined for the presentation of financial statements.
SECTION VIII. Preparation and publication of financial statements: presentation and disclosure.
SECTION IX: Financial Investments.
SECTION X: Cryptocurrencies

CHAPTER III
CHART OF ACCOUNTS
Comprises the list of accounts provided for the accounting of the respective operations.

CHAPTER IV
ACCOUNTING APPLICATIONS MANUAL
Comprises the description of the concept of the accounts and the main applications by which they will be affected.

CHAPTER V
FINANCIAL STATEMENTS
Includes the models of financial statements.

CHAPTER VI
OTHER PROVISIONS AND VALIDITY
Comprises provisions corresponding to sanctions, repeals, transitional aspects, unforeseen aspects, and validity.

CHAPTER I
GENERAL PROVISIONS

INTRODUCTION
This "Accounting Manual for Investment Banks," hereinafter the Manual, aims to present in a uniform and homogeneous manner the accounting recording of their operations. Thus constituting an essential tool for the integration of financial statements, which must faithfully reflect the financial situation, results of operations, and management of the entities, so that they constitute a useful instrument for the analysis of information and decision-making by administrators and shareholders, the Superintendence of the Financial System, hereinafter Superintendence; the Central Reserve Bank of El Salvador, hereinafter Central Bank, investors, users of financial services, and the general public. The accounting aspects contained in this Manual, for the recording of different types of operations related to the financial system that require prior authorization, do not constitute express authorization to carry out the operations referred to, and the entity subject to the application of this Accounting Manual must comply with the legal provisions and technical standards issued for such effect.
OBJECTIVES
2.1. General Objective
To provide a technical instrument for the uniform recognition, measurement, presentation, and disclosure of economic events, based on the financial and regulatory frameworks established by the Central Bank through its Standards Committee, as well as international best practices for banking operations.

2.2. Specific Objectives
To have complete, timely, and homogeneous information on the financial situation of the entity that contributes to decision-making by administrators, owners, supervisory and regulatory bodies, sophisticated investors, depositors, and other users of financial statements.

SCOPE
The Manual is composed of the General Provisions, Accounting Framework, Chart of Accounts, Accounting Applications Manual, and the Models of Financial Statements.

The subjects obliged to comply with the provisions established in this Manual are Investment Banks.

PROCESSING OF ACCOUNTING OPERATIONS
The entity subject to this Manual may process its accounting operations by the means it deems convenient, provided that it allows for their analysis and supervision. For this effect, said entity must request authorization from the Superintendence regarding the accounting information processing system it will use, when it begins operations or when there is a change in said system. The documentary or electronic source of each accounting record must contain sufficient explanations about the operation being recorded.
MODIFICATION OF THE MANUAL
The coding and openings established in this Manual must be respected in their entirety; therefore, no new elements, classifications, items, accounts, and subaccounts different from those already established may be opened. However, designations necessary from digit 11 onwards may be added, provided they correspond to the nature of the account from which they originate. When any operation or transaction not provided for in this Manual originates, the entity shall communicate this to the Central Bank, attaching the accounting criteria it intends to use, as well as the accounts to be used, describing the transaction or event and the reasons justifying the proposed treatment. Such communication shall be sent physically or by duly signed email by the responsible persons. The Central Bank will analyze the request and, if the proposed accounting application is appropriate and implies a modification of the Manual, the corresponding regulatory process for its approval will be activated. Prior to the modification of the Manual, the entity must account for the operation or transaction temporarily, in subaccounts corresponding to the item designations identified by the entity, and when the Central Bank approves the referred modification, the entity must reclassify the transaction to the accounts that have been approved for such effects.
RESPONSIBILITIES
6.1. Accounting Records
It is the responsibility of the Administration to record the operations of the entity, from the preparation of vouchers, documents, records, and files of transactions, to the formulation of financial statements and other reports for their corresponding analysis, interpretation, and accounting consolidation.

6.2. Timeliness of Accounting Records
Likewise, it is the responsibility of the administration to timely account for transactions, which will be recorded in accounts whose title corresponds to their nature.

6.3. The Accountant
It is the responsibility of the administration to hire the general accountant, who must be a professional in public accounting, with sufficient training, capacity, and experience, and must meet the requirements established in the Law Regulating the Practice of Accounting and be authorized by the Council for the Supervision of the Public Accounting and Audit Profession.

SUBMISSION OF INFORMATION
7.1. Timeliness
The Investment Bank will remit the corresponding financial information within the deadlines defined in this Manual. Lack of timeliness in the submission will be sanctioned in accordance with what is established in the Law for the Supervision and Regulation of the Financial System. The entity must designate an official responsible for timely compliance with the information requirements requested by the Superintendence, without prejudice to the responsibility that falls on the legal representative, the internal auditor, and the general accountant.

7.2. Frequency

7.2.1. Weekly Balances
Weekly financial position statements (cut off on Friday) will be prepared and delivered to the Superintendence, within the deadlines established in the Technical Standards for Submission and Collection of Information for the Accounting Statistical System of Investment Banks (NRP-91).

7.2.2. Monthly Financial Statements
The entity must obligatorily present monthly financial statements, which must be delivered to the Superintendence, within the deadlines established in the Technical Standards for Submission and Collection of Information for the Accounting Statistical System -91).

7.3. Mechanisms
The required financial information will be remitted to the Superintendence by the entity, through a digital network of information systems, modem, or any other data storage medium, according to the technical specifications contained in the Technical Standards for Submission and Collection of Information for the Accounting Statistical System of Investment Banks -91), without prejudice to paper supports that may be required according to circumstances.

7.4. Procedures
Financial statements must be remitted to the Superintendence according to the provisions established in this Manual.
In order to guarantee that the transmission of financial statements is carried out free of arithmetic errors or in the structure of the file sent, the entity must perform validations on its files prior to sending. The Superintendence will confirm the correct receipt of the information transmitted by the entity, through automatic validations in accordance with the corresponding regulatory framework.

7.5. Level of Detail
The minimum accounting information to be remitted to the Superintendence will comprise subaccounts up to 10 digits; without prejudice to norms that may require a greater level of detail.

ECONOMIC PERIOD
The economic and accounting period will comprise from January 1 to December 31 of each year.
ACCOUNTING RECORDS

9.1. Accounting Books
The movement and balance of accounts will be recorded in the main books and that of subaccounts in auxiliary books as deemed necessary.
The main books that must be legalized are those indicated by the Code of Commerce.
Accounting records must comply with what is established in Title II, of Book Two, of the Code of Commerce, insofar as applicable.
In particular, in the Book of Financial Statements, the Statement of Financial Position, the Statement of Comprehensive Income, the Statement of Cash Flows, the Statement of Changes in Equity, and the corresponding notes must be recorded, in accordance with what is established in Article 442 of the Code of Commerce and the International Financial Reporting Standards (IFRS). The figures recorded in this book must be presented in thousands of United States dollars.

9.2. Tax Books
Books of legal requirement must be kept, in accordance with current tax laws.

INTERNAL CONTROL APPLIED TO ACCOUNTING RECORDS
Accounting records must contain the necessary detail on the characteristics of assets, liabilities, equity, income, and expenses so that all the information contained in the different financial statements to be rendered can be clearly derived from them, which will maintain the necessary correlation both among themselves, when applicable, and with the accounting base. The entity must maintain at all times an auxiliary detail of each of the accounting subaccounts, when the nature of the accounts so requires. The entity will establish internal control systems directed to reasonably ensure the reliability of accounting records, as well as the correct integration of operations, in accordance with the internal accounting policies of each entity. Therefore, independent of the accounts specified to form the financial statements, the details deemed necessary for the preparation of the rest of the complementary informational statements will be established, developing an analytical accounting that provides sufficient information for the calculation of costs and returns of the different centers, products, business lines, or other aspects of interest for adequate management control.
RECORDING AND ARCHIVING OF ACCOUNTING DOCUMENTATION

Additionally, the entity is obliged to keep all administrative books required of it. The operations registered in them must be backed by sufficient documentation that proves the economic fact and comply with what is established in the Code of Commerce. Operations will be recorded as they are carried out, in such a way as to avoid unnecessary delays. The entity must archive the documentation backing its operations, using the means it considers, provided that such means have all security and control measures. The retention time will be in accordance with what is regulated in the corresponding laws.

CONCEPTUAL FRAMEWORK OF ACCOUNTING
12.1. Generally Accepted Accounting Principles and Standards
Accounting will be governed according to the following precedence:
a) Salvadoran legislation that establishes specific accounting treatments; b) Accounting Standards issued by the Central Bank through its Standards Committee; and c) International Financial Reporting Standards (IFRS), always adopting among the alternatives provided by these Standards the most prudent option and clearly revealing such situation in the notes to the financial statements, the above always provided that it does not contravene any provision contained in the Accounting Standards issued by the Standards Committee of the Central Bank. The entity will apply what is established in the Conceptual Framework of IFRS for the generation of general purpose financial information. The IFRS that the entity must apply are the standards and interpretations in Spanish version in force, which have been issued by the International Accounting Standards Board (IASB) and the International Sustainability Standards Board (ISSB) and which comprise:
a) International Financial Reporting Standards (IFRS); b) International Accounting Standards (IAS); c) CINIIF Interpretations; d) SIC Interpretations; and e) International Sustainability Reporting Standards. Subsequent to the validity of this Manual, when changes in IFRS are approved or in case of issuance of a new IFRS by the IASB or ISSB, the entity may adopt such changes or new standards, provided that they do not contradict what is stated in Salvadoran legislation that establishes specific accounting treatments or in the Accounting Standards issued by the Central Bank through its Standards Committee, these last two prevailing in case of conflicts.

12.2. Criteria for Accounting Recognition or Recognition of Elements
The initial recognition, subsequent measurement, presentation, and accounting disclosure of the elements of financial statements must be carried out following the provisions established in this Accounting Manual, in the regulatory framework or in IFRS, as applicable, attending to the type of transaction carried out. Based on the above, for the estimation of expected credit losses for the investment portfolio, the entity will use the expected credit losses methodology established in IFRS for financial instruments in the investment portfolio recorded at amortized cost and at fair value with changes in other comprehensive income. The entity, prior to contracting financial derivatives for purposes other than risk hedging, must request the appropriate authorization from the Central Bank to carry out this type of operations.

CHAPTER II
ACCOUNTING FRAMEWORK

SECTION I
RECOGNITION OF INTEREST ON ACTIVE OPERATIONS OF CREDIT RISK

OBJECTIVE
This Section aims to regulate the recognition of interest originated or incurred in active operations.
SCOPE
This Section applies to all active financial operations related to credit risk assets, which imply the incurrence of interest.
RECOGNITION
Interest receivable must be recognized daily.
The calculation of interest on active operations will be carried out from the day the resources are delivered to the user until one day before the repayment date, unless otherwise provided for the benefit of the debtor. Interest that, being in off-balance sheet accounts, passes to form part of interest receivable, is integrated into the capital of a new credit, or is paid with loans granted by the same financial institution, must also be accounted for as a deferred liability. Such liability will decrease only by cash recoveries. The creditor and its debtors may freely agree on the form of payment of interest that, being in off-balance sheet accounts, passes to form part of the asset.

SECTION II
ACCOUNTING RECLASSIFICATION OF LOANS, CONTINGENCIES, AND SUSPENSION OF INTEREST RECOGNITION

OBJECTIVE
This Section aims to regulate the transfer of loans from current portfolio to past-due portfolio, the conversion of a contingency into a loan, and the suspension of interest recognition originated on credit operations that are more than ninety days past due.

SCOPE
This Section applies to loans that are transferred to past-due portfolio, contingencies that convert into loans, and the suspension of interest recognition.
GENERAL RULES
A delinquency of more than ninety days of a installment or of the capital and interest balance will cause the capital to be classified as past-due portfolio. Delinquency may be of capital, of interest, or of both concepts.

For the purposes of this Section, extensions granted will not modify the delinquency status of the loan.

The timeframes for transfers established in this Section are maximums; therefore, the entity may reduce them.

Interest accrual on credit risk assets will be suspended in the following cases:
a) Credit operations with more than 90 days past due; and b) Active credit operations with amortization installments in arrears for more than 90 days.

In cases of suspension of interest accrual, the entity must maintain control of accrued interest in off-balance sheet accounts.

RECLASSIFICATION OF CREDIT RISK ASSETS

Only the principal will be transferred to the non-performing portfolio. The causes motivating the transfer are the following:
a) Installments or balance with arrears exceeding ninety days; b) Honored financial guarantees; c) Commercial letters of credit that fall within the scope of subsection five, literal c) of this numeral; and d) From the moment the entity's Board of Directors or the relevant authority decided to collect it through judicial means.

Capital may be reintegrated to the performing portfolio when it has no installments or balance with arrears exceeding ninety days, and from the time of its transfer, interest will be accrued accordingly.

When an entity makes payment due to default on a guarantee, surety, or letter of credit by a client, it must account for it as a non-performing loan until the document converting it into a loan is issued or until its total recovery.

The payment made by an issuer or confirming entity of a commercial letter of credit on behalf of a client, in the case where the payment is made prior to the client's amortization, must be accounted for in accordance with prior agreements existing between the entity and the client; as follows:
a) If the letter of credit were sight or term; applying the reimbursement in cash received from the client against the account receivable originated from the entity's settlement to the beneficiary at the moment it became due; b) If there were credit agreements for letters of credit between the parties, originating the respective loan operation by applying it against the account receivable; and c) In the event that the client fails to comply with the payment provided in literal a) and the indications in literal b) above do not apply, the entity will proceed as follows:
i. Recognizes an impairment expense against the net account receivable of liquid collateral received on the contract date;
ii. Recognizes a non-performing loan against the estimates for impairment losses (prudence reserves), provided there is certainty of recovering the disbursed amount; and
iii. When an entity makes payment due to default on a guarantee, surety, or letter of credit by a client, it must account for it as a non-performing loan until the document converting it into a loan is issued or until its total recovery.

If the entity makes the payment mentioned in the third and fourth subsections of this

Loans granted to pay at maturity must be considered non-performing for the purposes of this Section. Exceptions are those guaranteed with deposits in legal tender and easily liquidated assets, those granted for production, for the construction of real estate, and all those in which the source of payment of the original loan is linked to the completion of the work or project.

SECCIÓN III
WITHDRAWAL OF IMPAIRED CREDIT RISK ASSETS AND
SUBSEQUENT RECOVERIES

OBJECTIVE

The object of this Section is to regulate the withdrawal of credit risk assets from the Statement of Financial Position when they are considered totally impaired.

SCOPE

This Section applies to all credit risk assets that are completely impaired.

WITHDRAWAL OF CREDIT RISK ASSETS FROM THE STATEMENT OF FINANCIAL POSITION

All loans and accounts receivable that are completely impaired as of the date of the financial statements must be written off from the Statement of Financial Position; that is, assets whose expected contractual cash flows have been determined as unrecoverable.

Specific elements that regulatorily require the withdrawal of credit risk assets in the absence of an autonomous action by the entity and that must be recognized as losses are the following:
a) Loans, with real guarantee that have more than twenty-four months and those without real guarantee that have more than twelve months without reporting capital recoveries and that are not in the process of judicial execution; b) Credits that are in any of the following situations:
i. When there is a lack of executive document to initiate recovery through judicial means;
ii. When after twenty-four months of initiating the judicial action, it has not been possible to attach assets;
iii. In cases where a first-instance judgment has been issued in favor of the debtor;
iv. When there is no evidence that the debtor has acknowledged their debt in the last five years; and
v. When the criteria established by the entity in its policies for the withdrawal of credit risk assets from the Statement of Financial Position are met, which additionally must include the criteria indicated in the preceding romans.

c) Accounts receivable, when they are older than twelve (12) months or have not recorded movement in that period. Accounts receivable subject to write-off under this framework are those derived from operations with third parties not related to the entity or with entities of the same financial group.

The timeframes established in this section for the withdrawal of credit risk assets from the Statement of Financial Position are maximums; consequently, the entity may reduce them.

ACCOUNTING APPLICATION OF THE WITHDRAWAL OF CREDIT RISK ASSETS

Principal and interest balances of loans will be written off from the Statement of Financial Position by applying them against the established estimate for impairment loss (prudence reserve). Amounts for which no estimate for loss has been established will be written off by debiting the Accounts for Estimate for Impairment Loss of Financial Assets, on the date of withdrawal.

Accounts receivable must be written off entirely against the results accounts, by debiting expenses and crediting the account receivable.

REGISTRATION IN OFF-BALANCE SHEET ACCOUNTS

The amounts of credit risk assets that have been withdrawn from the Statement of Financial Position plus their corresponding interest must be controlled in the off-balance sheet accounts Write-off Assets, until their recovery is achieved or, failing that, maintained for the time established in their policies.

For any recovery of written-off assets, the corresponding accounting applications must be made.

RECOVERIES OF CREDIT RISK ASSETS

Cash recoveries of credit risk assets that were written off from the Statement of Financial Position in previous periods or in the current period due to impairment losses will be recognized as Other Operations Income.

In-kind recoveries of credit risk assets that were written off from the Statement of Financial Position in previous periods or in the current period due to impairment losses must be recognized in accordance with what is established in Section IV.

SECCIÓN IV
RECOGNITION, MEASUREMENT AND PRESENTATION OF EXTRAORDINARY ASSETS

OBJECTIVE

This Section aims to establish uniform practices for the recognition, measurement, and presentation of extraordinary assets.

SCOPE

This Section applies to the recognition of extraordinary assets other than financial instruments.

RECOGNITION

Extraordinary assets will be recognized when the entity acquires ownership rights over movable and immovable property, when such acquisition is carried out in any of the cases indicated in the laws applicable to them and will be evidenced by the pertinent legal documentation.

INITIAL MEASUREMENT

On the date of foreclosure, judicial award, purchase, or receipt of assets that have been leased under financial leases, the asset will be recognized as follows:
a) In cases of acquisition by foreclosure, the acquisition value will be that decided by the contracting parties, which must be established in the corresponding notarial instrument. The value thus determined is the one that will be recorded in the item GOODS RECEIVED IN PAYMENT OR AWARDED and the corresponding obligations charged to the debtor will be credited.

When the value recorded in the item GOODS RECEIVED IN PAYMENT OR AWARDED is greater than the balances that were charged to the debtor, the difference must be applied in the item OTHER OPERATIONS COSTS, ACCOUNT: OTHER COSTS. This accounting entry must be made on the same date that the acquisition value is recorded.

The balances charged to the debtor will be established taking into account the reference date of the foreclosure deed.

If after the previous accounting application, the recorded value of the asset is greater than its fair value, it must be adjusted to this latter value and

the resulting difference will be recorded in the item OTHER OPERATIONS COSTS, Account: OTHER COSTS. This accounting entry must be made on the same date that the acquisition value is recorded.

Taxes, duties, and professional fees necessary to acquire ownership of the goods must be added to the value of the asset, after the aforementioned accounting applications.

The agreement accepting the foreclosure must refer to all balances charged to the debtor, including interest that is registered in off-balance sheet accounts. b) In cases of judicial award, the value of the extraordinary asset will be the total debt registered in asset accounts, understood as the sum of the principal balance, interest registered in asset accounts, legal costs plus taxes, duties, and professional fees necessary to acquire ownership of the goods. The value thus determined is the one that will be recorded in the item GOODS RECEIVED IN PAYMENT OR AWARDED, separating into a sub-account the award value and into another the remaining balance charged to the debtor; and the corresponding obligations charged to the debtor will be credited. The acquisition value will be determined taking into account the date of the judicial award issued by the competent judge.

Interest that remains registered in off-balance sheet accounts shall not be counted as part of the value of the asset.

When the value determined according to the first paragraph of literal b) of this numeral is greater than the fair value, the difference must be applied in the item OTHER OPERATIONS COSTS, Account: OTHER COSTS. This accounting entry must be made on the same date that the acquisition value is recorded. c) In cases of sale and purchase, when the entity, to enforce credits in its favor or to secure its rights as a creditor, purchases movable and immovable property of any kind, the acquisition value will be determined by the sum of the value paid to the seller, plus taxes, duties, and notarial expenses to acquire ownership of the goods.

The value thus determined is the one that will be recorded in the item GOODS RECEIVED IN PAYMENT OR AWARDED.

When the fair value results in being less than the value paid for the acquisition, the asset must be accounted for at the fair value; the resulting difference will be

recorded in the item OTHER OPERATIONS COSTS, Account: OTHER COSTS. This accounting entry must be made on the same date that the acquisition value is recorded. d) For cancellation of financial lease contracts, in the event that the financial lessee does not exercise the purchase option or breaches the corresponding contract, the entity will recognize as extraordinary assets the goods that have been granted in Financial Lease, at the moment they are received by it, which must be documented with the sales deed of the asset (in the case of immovable property) or invoice or fiscal credit (in the case of movable property), the financial lease contract, and the cancellation of this contract. The initial recognition as an extraordinary asset will originate from the credit impairment of the Financial Lease contract and the balance charged to the financial lessee will be credited.

When the fair value of the asset acquired by cancellation of the financial lease results in being greater than the pending balance charged to the financial lessee, the resulting difference will be recorded in the item OTHER OPERATIONS INCOME, Account OTHER INCOME.

When the pending payment balance charged to the financial lessee results in being greater than the fair value of the asset, the difference must be applied in the item OTHER OPERATIONS COSTS, Account: OTHER COSTS. This accounting entry must be made on the same date that the settlement of the balance charged to the lessee is recorded.

In the different cases of acquisition of extraordinary assets, when a value lower than the fair value results, no profit shall be recorded for the acquisition.

CONSTITUTION OF RESERVES FOR HOLDING EXTRAORDINARY ASSETS

The entity must constitute a reserve for holding these assets for an amount equal to their value. The constitution will be carried out in accordance with the timeframes established in the corresponding legal frameworks.

The initial and subsequent constitution of reserves will affect Equity accounts, with Retained Earnings - Undistributed Profits - reserves to be constituted with the gradualness established by the corresponding legal frameworks.

In the case of transfer of reserves, the gradualness referred to in the previous paragraph will apply to complete the reserve of one hundred percent in the corresponding period.

Reserves that the financial entity has constituted as a result of loans granted that have originated extraordinary assets cannot be reversed, but must be transferred as reserves for these assets.

In no case shall the reserve that is transferred exceed the value of the extraordinary asset; if this were the case, the difference must be recognized as a release of provisions.

MAINTENANCE EXPENSES

The entity will not include in the book value of extraordinary assets items that comprise expenditures representing minor repairs and maintenance to keep the asset in acceptable conditions for use for any potential client who shows interest in purchasing them. Such expenditures will affect the results of the period in which they are incurred.

IMPAIRMENT LOSS OF EXTRAORDINARY ASSETS

When the entity becomes aware of the destruction of a good, it must constitute a provision equal to fifty percent of its value, if the good is insured; otherwise, the total loss must be recognized immediately.

Once the insurance is recovered, the entity must eliminate the provision and if such recovery is of a value lower than the book value, it must recognize the corresponding loss; otherwise, the profit.

Extraordinary assets will be written off when they are sold, transferred to fixed assets, suffer total loss due to impairment, or for any other valid cause of expropriation for these assets.

SALE OF EXTRAORDINARY ASSETS

The removal of an extraordinary asset due to sale will cause an increase in cash or in the loan portfolio, as applicable, and a decrease in the GOODS RECEIVED IN PAYMENT OR AWARDED account, by the corresponding book value.

If the sale is in cash, the difference resulting from comparing the cash amount received with the book value of the asset to be written off will generate a gain or loss that will be recognized in the period's results.

On the date of sale, if the transaction is carried out with financing by the same entity, in the case that there is a gain, it will be recognized in the period's results - Gain on Sale of Assets Goods received in payment simultaneously, the entity will apply an appropriation of profits by debiting results to be applied with credit - Income

The gain on the sale with financing will be released in the proportion that the capital financed by the entity is recovered.

Reserves that are constituted on the sold assets must be released on that date; therefore, in the case that the extraordinary asset had a provision constituted, it must be liquidated as income for reserve release, in the account OTHER INCOME Reversal of constituted provisions, charged to the corresponding account.

ACQUISITION BY THE ENTITY

When the entity transfers an extraordinary asset to fixed assets, prior authorization of the Superintendence based on what is established in the corresponding legal frameworks, it will be recorded in the corresponding properties and equipment account at the book value.

The reserve that it has constituted must be released as established in the last paragraph of the previous numeral.

PRESENTATION

The entity must keep auxiliary records duly updated according to the following model:

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-XX/2025
NCF-12
ACCOUNTING MANUAL FOR INVESTMENT BANKS Approval: XX/09/2025 Validity: XX/10/2025

ENTITY: __________________________________________ Balances in thousands of United States dollars

Date
(1)
Description of the
Transaction
(2)
Approval
(3)
Location or
Address
(4)
Acquisition
Reserve
Constituted
(7)
Auction
(8)
Marketing
Management
(9)
Withdrawal
Form
(5)
Value
(6)
Cause
(10)
Price
(11)

Instructions
(1) Date of the transaction
(2) Description of the transaction, identifying the references of the former debtor (3) Number and date of the agreement of the JD or Committee that approved the acquisition, sale, conservation, or withdrawal due to destruction (4) Sufficient data to locate it (5) Purchase, foreclosure, award, or cancellation of Financial Lease contract (6) Acquisition value plus additions (7) The reserve is recorded in account 321003 (8) Date and base price of the last auction (9) Actions aimed at selling it (10) State the cause of the withdrawal, which can be sale, conservation, or destruction (11) Price of the sale of the extraordinary asset

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-08/2025
NCF-12
Validity: 15/10/2025

SECCIÓN V
RECOGNITION OF COMMISSIONS ON LOANS AND CONTINGENT OPERATIONS

OBJECTIVE

This Section aims to regulate the recognition of commissions that the entity charges in advance to its clients for the granting of loans, guarantees, sureties, warranties, and financial services, regardless of the name by which they are designated.

SCOPE

This Section applies to all active financial operations related to credit risk assets, which imply for the entity the accrual of commissions.

Commissions for services provided that, although related to an active operation, are autonomous from said operation, such as appraisals of goods to be received as collateral and others that are similar, as well as those derived from term operations of up to thirty days, are not within the scope of this Section.

RECOGNITION

Commissions derived from loan or contingent operations with a term of up to thirty days will be recognized as income in the corresponding results account, on the date they are collected or accrued.

The entity must register in the respective liability accounts all those provisions or cash collections made in the concept of commissions for the granting or other income different from interest, related to loans, net of direct costs for granting them. For the collection of these commissions, the entity must observe compliance with what is established in the Consumer Protection Law and its respective regulation.

The recognition of income from commissions will be made periodically according to the payment form originally established, using the effective interest method, which consists of determining the effective interest rate or the Internal Rate of Return (IRR), using as a negative flow the amount granted of the loan minus the granting commissions, net of their direct granting costs, and as positive flows, the same installment that was calculated under the nominal interest rate, in both cases excluding additional periodic commissions. The value of the commission to be recognized

Alameda Juan Pablo II, between 15 and 17 Norte Ave, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-08/2025
NCF-12
Validity: 15/10/2025 periodically will be the difference between the interest to be paid under the effective interest rate (APR) and the interest to be paid under the nominal interest rate. For the recognition of income from these loan commissions, the affected liability accounts will be debited and the respective income accounts credited. The entity must account with a credit to the respective liability accounts for all provisions or cash collections made as commissions for the granting of guarantees, bonds, warranties, and other services, net of direct costs for granting these. Whenever these commissions originate from legally authorized operations. The amortization of provisions will be made monthly, during the term stipulated for the contingent credit operation, with a credit to the corresponding income account. When loans are reclassified as non-performing, the commission charged for granting may continue to be amortized, recognized as income until the completion of their term. When loans are recognized as losses and removed from the asset accounts in accordance with Section III WITHDRAWAL OF ASSETS FROM NON-PERFORMING CREDIT RISKS AND SUBSEQUENT RECOVERIES, commissions charged for granting may be recognized as income. Deferred commissions from credits that are cancelled before the agreed maturity will also be recognized as income.

SECTION VI
CONSTITUTION OF COUNTRY RISK RESERVES

OBJECTIVE
This Section aims to establish criteria for the establishment of policies and procedures for the identification, review, and control of country risk in the activities of placing resources abroad; as well as to establish the calculation bases and timing for the constitution of accounting reserves to represent said risk.
SCOPE
This Section applies to the entity's assets or rights where the resources granted or committed are used abroad or where the source of payment is located outside El Salvador.

Country risk reserves are exempted for:
a) Deposits constituted to comply with the Liquidity Reserve; b) Placements on behalf of third parties that do not result in commitments for the entity; c) Equity investments and resource placements regulated in Article 23 of the Banking Law referenced in Article 71 of the Investment Banking Law; d) Operations guaranteed with funds in the same creditor entity, except for the uncovered portion of the risk; e) The portion of operations guaranteed by a joint debtor domiciled in the country of the creditor entity; and f) Securities and any other type of investment in instruments issued by Institutions with the status of Supranationals or International Organizations according to their constitutive agreement; as well as deposits made in said Institutions.

TERMS
For the purposes of this Section, the terms indicated below have the following meaning:
a) The risk assumed by maintaining or committing resources in a foreign country, due to eventual impediments to obtaining their recovery derived from adverse effects in the economic, social, political environment or by natural disasters occurring in the country where the source generating the counterparty's cash flows is located. Country risk comprises sovereign risk, political risk, and transfer risk. b) Sovereign risk: represented by the difficulties an entity might face to carry out recovery actions against the debtor, due to sovereignty reasons. c) Political risk: comprises all those human acts that make it difficult for debtors of a country to fulfill their obligations, for example: wars, civil unrest, terrorism, drug trafficking, legal provisions, and other similar events. d) Transfer risk: is the situation that prevents debtors of a country from fulfilling their obligations due to the scarcity of the currency in which the obligation is denominated or that can be accepted by the creditor.
ATTRIBUTION OF COUNTRY RISK
Country risk is attributable to the country where the debtor or payer is domiciled and from which the return on invested resources must be obtained. However, the risk of a country different from that of the debtor may be used in the following cases:

Alameda Juan Pablo II, between 15 and 17 Norte Ave, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-08/2025
NCF-12
Validity: 15/10/2025 a) The country risk of the parent company will be considered in the case of branches and subsidiaries, when the first of the aforementioned has the status of joint debtor; and b) The guarantor's country risk will be considered, when it has an investment-grade classification from one of the internationally recognized risk rating agencies.

POLICIES AND CRITERIA FOR COUNTRY RISK
It is the responsibility of the entity's highest administrative body to establish:
a) Policies regarding the use of resources in foreign assets, setting adequate diversification and imposing credit and investment limits by country; as well as policies related to the monitoring and control of country risk; b) An administrative unit responsible for the control and monitoring of country risk, formed by qualified personnel; c) Periodic evaluations, at least monthly, of country risk reserves, according to the methodology mentioned in this Section; and d) Reports that reveal and ensure that the country risk reserve is determined by an adequate technical evaluation and that there is permanent monitoring of its coverage. The guidelines and agreements of the highest administrative body on this matter must be duly expressed in the respective minutes book.
INFORMATION ON COUNTRY RISK
Every obligated entity must keep available to the internal audit unit, external audit, and Superintendence, information related to the country risk evaluation, in accordance with the policies of the previous subsection. To this end, it must keep the following information updated:
a) File for each country where the entity maintains placements in assets or commitments; b) Report containing relevant aspects and conclusions that determine the risk category of the country under evaluation; c) Organization manuals of the unit in charge of country risk and the relevant procedure manuals; d) The updated report for each country issued by internationally recognized risk rating agencies; and e) Any other information necessary to evidence the country risk classification.

Alameda Juan Pablo II, between 15 and 17 Norte Ave, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-08/2025
NCF-12
Validity: 15/10/2025
7. COUNTRY RISK EVALUATION
The entity that places or commits its resources in other countries will use, to determine the degree of country risk, the sovereign risk classifications of countries issued by internationally recognized risk rating agencies, for long-term obligations. Below, the country risk categories are established, the equivalences between the nomenclature of long-term obligations used by internationally recognized risk rating agencies, and the minimum reserve percentages that must be constituted for each category:

Categories | Standard & Poor | FITCH | MOODY'S | % Reserve --- | --- | --- | --- | ---

Countries with low risk | AAA | AAA | Aaa | 0%
| AA (+ -) | AA (+ -) | Aa (1,2,3) |
Countries with normal risk | A (+ -) | A (+ -) | A (1, 2, 3) | 0%
Countries with moderate risk | BBB (+ -) | BBB (+ -) | Baa (1, 2, 3) | 1%
| BB (+ -) | BB (+ -) | Ba (1, 2, 3) | 10% |
| --- | --- | --- | --- |
| B+ | B+ | B1 | 20% |
Countries with difficulties | B | B | B2 | 30%
| B - | B - | B 3 | 40% |
| --- | --- | --- | --- |
| CCC+ | CCC+ | Caa1 | 50% |
Doubtful countries | CCC | CCC | Caa2 | 60%
| CCC - | CCC - | Caa 3 | 70%
Countries with serious problems or unclassified. | CC | CC | Ca (2) | 100%
| C | C | C |
| --- | --- | --- |
| D | D | |

The qualifications considered to determine the country risk category must be the latest issued by the risk rating agencies.

USE OF INTERNAL MODELS
The entity may use internal measurement models to assign the risk classification of the countries where it operates; the resulting reserves cannot be lower than those established based on the previous subsection; the methodology must contain the following six categories:
a) Category 1: Countries with low risk
Countries with the lowest expectation of credit risk are located in this category. It is assigned only in case of punctual, exceptionally strong capacity to pay external financial commitments. This capacity is very unlikely to be affected by foreseeable events.

Alameda Juan Pablo II, between 15 and 17 Norte Ave, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-08/2025
NCF-12
Validity: 15/10/2025 b) Category 2: Countries with normal risk Countries showing a low expectation of credit risk are located in this category. It is assigned to cases of a strong, punctual capacity to pay external financial commitments. This capacity is somewhat more susceptible to adverse conditions and situations than in the immediately superior classification.

c) Category 3: Countries with moderate risk
Countries showing a low expectation of credit risk are located in this category. It is assigned to cases of an adequate, punctual capacity to pay external financial commitments. This capacity is susceptible to deterioration under adverse conditions and situations.

d) Category 4: Countries with difficulties
Countries showing a possibility of development or significant credit risk are located in this category. It is assigned to cases of moderate or insufficient capacity to pay external financial commitments. This capacity is contingent and sustained by the conditions of the economic environment.

e) Category 5: Doubtful countries
Countries in which the development of credit risk is very probable are located in this category. It is assigned to cases where the capacity for default is real and payment depends on the conditions of the economic environment.

f) Category 6: Countries with serious problems Countries that have defaulted on some or all of their obligations and the credit risk has materialized are located in this category. This capacity is totally dependent on the conditions of the economic environment.

MINIMUM ELEMENTS OF INTERNAL COUNTRY RISK EVALUATION MODELS
Internal models will include two analyses, the base analysis and the complementary analysis, in which the following elements must be considered to evaluate and classify country risk:

9.1 Base Analysis:
a) Analysis of the country's macroeconomic behavior regarding the existence or not of significant imbalances, for which the structure and economic performance, economic growth prospects, degree of fiscal flexibility, monetary stability, situation of the financial sector, macroeconomic policy, trade policy, direct investment policy, external liquidity, external debt, labor market, and dynamism of the private sector must be analyzed; b) Analyze the country's financial commitments regarding whether it complies or not:
i. With the payment of international financial obligations, and
ii. The payment of external debt service;
c) Consider whether the country has or does not have financing for foreign trade activities; and d) Any other that is considered convenient to include and has not been considered in the previous points.

9.2 Complementary Analysis
It will consider all other aspects of interest to examine the situation of each evaluated country, among them:
a) Timeliness, reliability, and sufficiency of available economic and financial information; b) Political and social stability; c) Compliance with regulations; d) Conflicts with other countries; e) Natural disaster; and f) Any other that is considered convenient to include and has not been considered in the previous points.

Classified countries must be downgraded to at least the category immediately below that resulting from the base analysis, when there are weaknesses or important disturbing factors derived from the complementary analysis.

TIME WHEN COUNTRIES MUST BE CLASSIFIED
Countries must be classified before the placement of resources is approved, and the country risk reserve must be constituted when the asset account has a balance under it, for which it must be assigned one of the categories indicated in numeral 7 of this Section. In case there is more than one classification, the one representing the highest level of risk will be considered. In case there are two equal classifications, the one that repeats most will be considered. If a country lacks a sovereign risk classification, it will be classified in category 6 referring to countries with serious problems, with a reserve requirement of 100%. When country risk is documented, the entity may change the classification and make the respective adjustments.

Alameda Juan Pablo II, between 15 and 17 Norte Ave, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-08/2025
NCF-12
Validity: 15/10/2025
11. CALCULATION OF RESERVES BY RISK CATEGORIES
Reserves by country risk classifications are independent of any other credit or banking risk reserve; therefore, they must be constituted on the uncovered risk, for which the gross value of the corresponding asset according to accounting records must be considered, minus balances backed by guarantees mentioned in the second subsection of this Section; in no case can the total sum of reserves be greater than the gross value of the affected asset.

VOLUNTARY RESERVES
The entity obligated to comply with this Section may voluntarily constitute additional country risk reserves, with no limitations other than its own will.
ACCOUNTING APPLICATIONS FOR THE CONSTITUTION OF RESERVES
The accounting of increases and release of the country risk reserve will be made at least once a month, as follows:
a) Increases will cause a debit in the income statement account for applying results from previous years and a credit in the restricted equity account for undistributable profits; and b) Decreases will cause a debit in the restricted equity account for undistributable profits and a credit in the income statement account for applying results from previous years. Increases or decreases will occur due to changes in risk categories, due to increases or decreases in the balances of the instruments subject to reserves, or due to corrections determined by the Superintendence or by external auditors.
COVERAGE AND FREQUENCIES OF EVALUATIONS
One hundred percent of placements in deposits, investments, loans, contingent operations, and any other balances representing country risk, must have its corresponding risk classification, for which the entity must keep perfectly identified all operations that require reservation according to this Section and must associate each one with the country to which the risk is attributed and with the other reserves constituted. The entity obligated to comply with this Section must keep its assets subject to country risk evaluated at all times; in case it has technological or operational limitations to comply with the above, it must communicate this to the Superintendence and request permission to update it once a month while the same limitations are overcome.

Alameda Juan Pablo II, between 15 and 17 Norte Ave, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-08/2025
NCF-12
Validity: 15/10/2025
15. SUMMARY OF ASSETS WITH COUNTRY RISK

The obligated entity must prepare at least monthly and keep available to the Superintendence the adjustments to the reserve due to changes in asset balances or country classifications, according to the following model:

Alameda Juan Pablo II, between 15 and 17 Norte Ave, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-XX/2025
NCF-12
ACCOUNTING MANUAL FOR INVESTMENT BANKS
Approval: XX/09/2025
Validity: XX/10/2025

ENTITY:__________________________________________ SUMMARY OF ASSETS SUBJECT TO COUNTRY RISK, AT _____________ (Balances in thousands of United States dollars)

A. Country Information | Country «X» | Country «Y» | Country «Z» | Observations --- | --- | --- | --- | --- A.1 Classification | | | | A.2 Risk Rating Agency | | | | A.3 Date of Classification | | | | A.4 Source | | | |

B. Balance Sheet Account Balances | Country «X» | Country «Y» | Country «Z» | Total | Observations --- | --- | --- | --- | --- | --- B.1 Entity empty line by line, all assets identified in the balance sheet and contingent items that imply resources granted or committed to be used abroad or where the source of payment is located outside El Salvador. | | | | | B.2 Sub-Total | | | | | B.3 Excluded balances, according to numeral 2 of this Section. | | | | | B.4 Total affected assets (B.2 - B.3) | | | | |

C. Determination of Reserve	Country «X»	Country «Y»	Country «Z»	Total	Observations
C.1 Required reserve percentage
C.2 Country risk reserve (B.4 X C.1)					C.3 Previous month balance

Notes: The country columns are established according to the needs of each entity A.3: The most recent classification must be considered; in any case, the date of issuance of the classification must not be delayed by more than six months. A.4: The source refers to the evidence supporting the rating, for example: website, magazine published by the Rating Agency, copy of the rating document, etc. B.3: These balances must be fully identified and duly justified. C.1: The percentage of the required reserve is in accordance with the table detailed in subsection 7 of the Section.

Name and signature of the responsible executive: _______________

Alameda Juan Pablo II, between 15 and 17 Norte Ave, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-08/2025
NCF-12
ACCOUNTING MANUAL FOR INVESTMENT BANKS Approval: 30/09/2025 Validity: 15/10/2025

SECTION VII
SPECIFIC TREATMENTS DEFINED FOR THE PRESENTATION OF FINANCIAL STATEMENTS

OBJECTIVE
This Section aims to establish the method of presentation of financial statements.
SCOPE
The methods that must be applied for the presentation of the Statement of Financial Position, the Statement of Comprehensive Income, and Cash Flows.
PRESENTATION OF ELEMENTS OF FINANCIAL STATEMENTS AND ACTIVITIES INTEGRATING THE STATEMENT OF CASH FLOWS

Presentation refers to the way of incorporating accounting information into the basic financial statements in such a way that said incorporation is uniform period after period, reliable, and relevant for a better reading and interpretation of the different elements of the financial statements. Below, the models or methods defined for the presentation of the elements of the financial statements are detailed.

Financial Statement | Presentation Method | Reasoning --- | --- | --- Statement of Financial Position | Assets and liabilities will be presented in the Statement of Financial Position according to their degree of liquidity. | This presentation method takes into consideration the ease of conversion into cash of assets and the exigibility of payment of liabilities. The use of this method is considered appropriate for financial institutions because information on expected dates of realization of assets and exigibility of liabilities is useful to evaluate the liquidity and solvency of the entity and is estimated to provide reliable and more relevant information than the current-non-current presentation, because the entity does not supply goods or provide services within a clearly identifiable operating cycle. Adopting this method does not exempt the entity from revealing amounts expected to be recovered or settled in a period less than or equal to one year after the date of the reported period and those to be recovered in a period greater than one year after the date of the reported period. Statement of Comprehensive Income and Other Comprehensive Income | Expenses will be accounted for applying the Method of Nature of Expenses and revealing additional items considered necessary for the adequate understanding of the entity's financial performance. | Taking into consideration the nature of financial entities, the presentation method of expenses by nature is considered to provide a reliable and more relevant presentation as it provides useful information on expenses that are materially representative of entities, while it can be easier to apply; it is complemented with a detail of expenses that contribute to a better understanding of the entity's financial performance. Cash Flows | Indirect Method | Of the methods allowed by IFRS for the preparation of the Statement of Cash Flows, the indirect method will be used.

SECTION VIII
PREPARATION AND PUBLICATION OF FINANCIAL STATEMENTS: PRESENTATION AND DISCLOSURE

OBJECTIVE
This Section aims to establish regulations and procedures that allow the preparation, presentation, and disclosure of basic financial statements in accordance with prudential requirements issued by the Committee for Standards of the Central Bank and IFRS, in order to provide users of financial statements with sufficient and timely financial information on the financial, economic, and legal situation of the entity.
SCOPE
This Section establishes the financial statement models and minimum requirements regarding their content, which the entity must use to present its financial information, as well as the minimum framework of notes that the entity must observe when making disclosures of relevant information for each line of the Statement of Financial Position, Statement of Comprehensive Income, and the other basic financial statements as appropriate.

REQUIREMENT AND CONTENT OF FINANCIAL STATEMENTS
The most relevant aspects to be considered in the presentation and disclosure of financial statements are:
a) Technical standards, fundamental assumptions, and qualitative characteristics: Financial statements must be prepared based on the accounting standards issued by the Central Reserve Bank Standards Committee and International Financial Reporting Standards (IFRS), to the extent applicable. b) Expression of figures: The figures in the financial statements and their notes must be expressed in thousands of dollars with one decimal place; c) Accounting origin of balances: The figures in the financial statements and their notes must originate from the general ledger balances as of the corresponding reference date, which must contain definitive figures; d) Amounts to be disclosed in financial statements: The amounts presented in the financial statements prepared by management must be those that meet the condition of being an asset, liability, equity, income, or expense; and e) Accounts with a nature contrary to the main account where they underlie:
When it is necessary to disclose valuation and adjustment accounts that have a nature different from the accounts where they underlie, for example: impairment estimates, accumulated depreciation, deferred taxes that net against the accounts that generate them within equity, etc., these must be presented in parentheses.
BASIC FINANCIAL STATEMENTS
The basic financial statements that must be prepared with reference to December 31 are: The Statement of Financial Position, the Statement of Comprehensive Income, the Statement of Changes in Equity, and the Statement of Cash Flows, according to models in Annexes Nos. 1, 2, 3, and 4, and their respective notes which include a summary of the most significant accounting policies and estimates and other explanatory information. Additionally, a Statement of Financial Position at the beginning of the first comparative period must be prepared when an entity applies an accounting policy retrospectively or performs a retrospective restatement of items in its financial statements, or when it reclassifies items in its financial statements. Financial statements must be presented in comparative form for the same previous period.

The notes present information regarding the bases for the preparation of financial statements and about accounting policies, supply narrative descriptions, and are an integral part of them; they contain additional, detailed information that complements the balances reflected in the financial statements. Regarding the preparation of financial statements and their notes, in no case should a note be omitted; in the case of no event, transaction, or balance existing, such situation must be expressed; however, for the purpose of publishing financial statements, notes to the financial statements must be published in cases where the event, transaction, or balance exists.

ADDITIONAL NOTES
The entity's Management may incorporate additional notes it deems appropriate. Likewise, it must incorporate the notes necessary to disclose matters required by IFRS, where applicable; for this purpose, the notes must be interspersed where they correspond. The regulation in the preceding paragraph is also applicable to Consolidated Financial Statements.
RESPONSIBLE PARTIES FOR PREPARING FINANCIAL STATEMENTS
The preparation of basic financial statements is the responsibility of the entity's management. Financial statements must be signed manually by the Legal Representative of the Investment Bank or a special attorney duly authorized for these purposes.
SUBMISSION OF FINANCIAL STATEMENTS
The financial statements to be published referring to March 31, June 30, and September 30, their notes, and the corresponding interim report from the external auditor as of June 30, must be submitted to the Superintendence by the entity's management, no later than five business days before publication. Along with the aforementioned financial statements, the certification of the agenda item from the board of directors meeting of the entity, where the publication and content of these were agreed upon, must be submitted.

The financial statements for the month of December, their notes, and the corresponding external auditor's opinion must be submitted to the Superintendence by the entity's management or equivalent administrative body, no later than five business days before the holding of that entity's general shareholders' meeting. Along with the aforementioned financial statements, the certification of the agenda item from the board of directors meeting of the entity, where the publication and content of these were agreed upon, must be submitted, as well as a report containing the draft distribution of earnings for the year, agreed upon by the board of directors. In case of modification of the earnings distribution agreement, this will be submitted five days before the holding of the general shareholders' meeting.

DISCLOSURE OF FINANCIAL STATEMENTS
The financial statements delivered to shareholders, those published in the annual report, and in general any disclosure of these, must include all basic financial statements, their notes in full, and the external auditor's opinion. Once the annual financial statements are approved by the general shareholders' meeting, they must be published once, within the first sixty calendar days of each year, in national circulation print media or another digital publication platform with greater or equal coverage, or on their website, in accordance with what is established in the current legal framework. These statements are: the Statement of Financial Position, the Statement of Comprehensive Income, the Statement of Changes in Equity, and the Statement of Cash Flows, which must be accompanied by their notes and the external auditor's opinion, who must be registered in the Register of External Auditors of the Superintendence. The publications of the financial statements referring to March 31, June 30, and September 30 must be carried out once at the latest in the month following the reference date in national circulation print media or another digital publication platform with greater or equal coverage, or on their website, in accordance with what is established in the current legal framework. These statements are the Statement of Financial Position and the Statement of Comprehensive Income, which must be accompanied by their notes, except for Notes regarding the Legal Reserve, Distributable Profit, and Income Tax. The financial statements corresponding to June 30 must be accompanied by the external auditor's interim report.
NOTES TO BASIC FINANCIAL STATEMENTS
The notes to the financial statements must be prepared based on legal, regulatory, and structural and disclosure requirements of IFRS applicable to each element of the financial statements, including the information detailed below:

Note 1. Entity Identification
The entity will describe as part of its identification the following information (that which corresponds according to the requirements made):
a) Name of the reporting entity; as well as changes relative to such information since the end of the previous period reported. b) Description of the nature of the financial statements c) Closing date of the period on which information is reported or the period covered by the financial statements. d) Legal form of the entity, country of incorporation, address of its registered office (or principal domicile where it develops its activities, if this is different from the registered office). e) Description of the nature of the entity's operations and main activities. f) Name of the direct controlling entity and of the ultimate controlling entity of the financial conglomerate. g) Duration of the entity's life if it is of limited life. h) Explanation of the fact that the owners of the entity or others have the power to modify the financial statements after disclosure.

Note 2. Bases of Preparation a) Declaration of compliance with International Financial Reporting Standards: The entity will make a declaration that the present financial statements have been prepared based on the Technical Standards issued by the Central Bank Standards Committee and International Financial Reporting Standards (IFRS), the former prevailing when there is a conflict with the latter. When IFRS present different options to record the same event, they will indicate that the most conservative one was adopted; b) Measurement bases: The entity will declare the measurement bases it has used to prepare its financial statements; c) Functional and presentation currency: The entity will declare the functional and presentation currency of the financial statements and the degree of rounding applied when presenting figures in said financial statements; d) Use of estimates and criteria: The entity will make a description of the estimates and accounting criteria used for the preparation of the financial statements and that affect the application of accounting policies and the amounts of assets, liabilities, income, and expenses reported, as well as what each estimate and applied criterion consists of; and e) Changes in accounting policies:
i. The entity will describe (identify) the areas in which accounting policies have changed; and
ii. The entity will describe what the new accounting policy consists of or what it is based on and the reason for the change, as well as what the previous accounting policy was based on or consisted of.

Note 3. Significant Accounting Policies
The entity will make a summary (description) of the significant accounting policies applied. Accounting policies are defined as the specific principles, bases, agreements, rules, and procedures adopted by the entity in the preparation and presentation of its financial statements.

In addition to the policies that the entity describes autonomously, it must add the following accounting policies:
a) Suspension of interest recognition in income.
The entity must describe the policy it applies to proceed with the suspension of the recognition of interest income. b) Estimation of loss for impairment of credit risk assets. The entity will describe the policy for establishing estimates of loss for impairment of the credit risk asset portfolio defined based on the technical standards issued by the regulatory body for such purposes. c) Reclassification of credit risk assets from current to past due. The entity will disclose the accounting policy it applies for the reclassification of credit risk assets from current to past due. d) Extraordinary assets. The entity will disclose the accounting policy established, for the initial and subsequent recognition of these assets, based on the legal framework or based on the technical standards established by the regulatory body. e) Derecognition of credit risk assets from the Statement of Financial Position. The entity will disclose the accounting policy established to derecognize credit risk assets from the Statement of Financial Position. f) Valuation of cryptocurrencies. The entity will disclose the accounting policy established for the valuation of cryptocurrencies.

Note 4. Investment Financial Instruments
This item represents securities and other investments in financial instruments acquired for speculative purposes or by disposition of the respective authorities; its disclosure will be carried out in accordance with what is established in this accounting framework and what is established in IFRS.

Note 5. Loans, Contingencies, and Their Provisions Gross Loan Portfolio US$ Gross Portfolio of Contingent Operations ____________ Total Risk Portfolio US$

Less: Provisions US$

Net Risk Portfolio US$

The movement of provisions in the reported period is as follows:
Loans Contingencies Total
Balances as of December 31, 2,00X US$ US$ US$
Plus: Establishment of reserves
Less: Release of reserves _________ __________ _________ Total US$ US$ US$ Sanitation reserves for "Contingencies" are presented in the "Various" liability item.
Coverage Rate ___%
The coverage rate is the quotient expressed as a percentage, resulting from dividing the amount of provisions by the amount of the asset.

Average Yield Rate ___%
The average yield rate is the percentage resulting from dividing the income from the loan portfolio (including interest and commissions) by the average balance of the gross loan portfolio for the reported period.

Loans with adjustable interest rates represent the % of the loan portfolio and loans with fixed interest rates the % Accrued interest on the loan portfolio and not recognized as results in the reported period amounts to US$___

Note 6. Pledged Portfolio
Resources have been obtained with the guarantee of the loan portfolio as described below:
a) Loans received from the Central Reserve Bank, for US$, which we have guaranteed with category _______ credits for an amount of US$________; as of the date, the loan balance plus interest is US$ ________ and the guarantee is US$. b) Issuance of investment certificates placed through the Stock Exchange, for US$, and accrued interest of US$ which we have guaranteed with category______ credits for an amount of US$___; such issuance matures on __ of of ___. The aforementioned credits are recorded in registers that allow their full identification, in order to respond to our creditors for the legal responsibilities derived from the respective contracts.

Note 7. Deferred Tax Assets and Liabilities
Declaration and detail of tax obligations, provisions, and composition of income tax, withholdings, perceptions, and advance payments, deferred taxes, and temporary differences, etc. Its disclosure must be made attending to the requirements described in IFRS.

Note 8. Effects of Income Tax on Items Constituting Other Comprehensive Income This disclosure must be made attending to the requirements described in IFRS.

Note 9. Extraordinary Assets
As of December 31, 2,0XX, the entity maintains balances for extraordinary assets valued at US$____________:
The movement of extraordinary assets, recorded during the reported period, is summarized below:
Value of Assets Value of Reserves
Balance as of December 31, 2,0XX US$ US$
Plus: Acquisitions
By Loans
By Financial Leasing Contracts

Less: Withdrawals ___________ ___________
Total US$ US$
Assets that have been acquired for more than four years amount to US$ _______, of which an amount of US$ ______, has been recognized as a loss in the fiscal year that ended on ____ and US$ _______, in the fiscal year that ended on ______, in accordance with what is established in article 72 of the Banks Law to which article 71 of the Investment Banks Law refers. The entity will disclose the following information:
a) A general description of extraordinary assets at the end of the period; and b) Summary (table) of extraordinary assets that were derecognized during the current period by sales, transfer to property and equipment, by destruction, in which the selling price, acquisition cost, result obtained, and release of profit appropriations upon derecognizing such assets are detailed.

Note 10. Cryptocurrency for Sale
The entity will disclose the following information:
a) A general description of the cryptocurrencies it holds for sale at the end of the period; b) Summary (table in which the type of cryptocurrency acquired, its acquisition cost, quantities sold, its selling price, and the profit or loss obtained are reflected), during the current period. c) Other information that the company considers pertinent to disclose. Additionally, it must include other disclosures required by IFRS.

Note 11. Physical and Intangible Assets
The movable and immovable property of the entity is detailed below:
Cost:
Buildings US$
Installations
Furniture and equipment
Remodeling and readjustments ___________
Less:
Accumulated Depreciation (__________)
Plus:
Land
Depreciable
Construction in progress ___________
Revaluations:
Buildings
Furniture and equipment ___________

Less:
Accumulated Depreciation
Of Revaluations (__________)
Land ___________

Total ==========

During the current fiscal year, the following revaluations were made: (The revalued asset or assets, their acquisition value, the appraisal performed, and the respective adjustment to depreciation must be described). The movement of fixed assets in the reported fiscal year was as follows:
Balance as of December 31, 20X1 US$
Plus: Acquisitions
Revaluations
Less: Withdrawals
Depreciation __________
Balance as of December 31, 20X2 US$ ========

The entity's intangibles are detailed below:
Cost:
Franchises US$
Licenses
Concessions
Software Programs
Websites
Other ___________
Less:
Accumulated Amortization (__________)
Plus:
Acquisitions
Franchises US$
Licenses
Concessions
Software Programs
Websites
Other ___________
Total ___________

Note 12. Cryptocurrencies
Investment Banks will disclose information about the amount of cryptocurrencies recognized as intangible assets, the increases or decreases in value. The entity must disclose other important and pertinent information for the better understanding of the users of the financial information. Additionally, it must include other disclosures required by IFRS.

Note 13. Derivative Financial Instruments
In the case that the entity acquires derivative financial instruments, it must prepare this note, describing the information as required by International Financial Reporting Standards (IFRS).

Note 14. Management of Financial and Operational Risks This disclosure must be made attending to the requirements described in IFRS.

Note 15. Financial Liabilities Held for Trading This disclosure must be made attending to the requirements described in IFRS.

Note 16. Deposits
The entity will disclose the following information:
Distribution of the entity's deposit portfolio:
a) Public Deposits US$ b) Deposits in other Investment Banks c) Deposits from other banks d) Deposits from state entities e) Restricted and inactive deposits ___________ Total US$

=========
The different classes of deposits of the entity are as follows:
a) Checking Account Deposits US$ b) Savings Account Deposits c) Time Deposits ___________ Total US$

==========

Average Cost of the Deposit Portfolio: _____%
The average cost rate of the deposit portfolio is the percentage that results from dividing [missing text in source regarding numerator], by the average balance of the deposit portfolio.

Note 17. Own-Emission Securities
The entity will disclose the following information:
a) Amount in the Statement of Financial Position of the issuances made, detailed by amount and date of issuance, agreed terms, and capital balance plus interest; b) Main terms and conditions under which the issuances have been made (for example, convertible obligations); and c) Other information required by IFRS and that the entity considers important and pertinent for the better understanding of the users of the financial information (for example: contractual rates, average effective interest cost incurred per issuance, guarantee granted, etc.). Additionally, it will disclose information on tokenized securities as follows:
a) Amount in the Statement of Financial Position of the issuances made, detailed by amount and date of issuance, agreed terms, and capital balance plus interest; b) Main terms and conditions under which the issuances have been made (for example, convertible obligations); c) Number of Tokens issued, placed, and pending placement; and d) Other information required by IFRS and that the entity considers important and pertinent for the better understanding of the users of the financial information (for example: contractual rates, average effective interest cost incurred per issuance, guarantee granted, etc.).

Note 18. Subordinated Loans

The entity shall disclose the following information:
a) Loan amounts by class, for example: from local financial entities, international financial entities, etc.; b) Interest rates at which the loans are contracted; c) Classification of the aforementioned loans into Current and Non-Current; d) Terms and conditions under which the loans were received; and e) Other information that the entity considers important and relevant for the best understanding of the users of the financial information.

Note 19. Legal Reserve
The entity shall describe the legal requirement established for the calculation of this reserve in the corresponding laws, the reserve constituted in the period reported, the total amount it reaches, the percentage amount reached with respect to share capital, and any other information that management considers pertinent for a better understanding of the users of the financial statements.

Note 20. Distributable Profit
The entity shall describe the legal requirement established in the corresponding laws, regarding the retention of profits after the legal reserve, then proceeding to establish the distributable profit according to the following table:

Concept	Current Year	Previous Year
Profit for the year	US$	US$
Less:
Legal Reserve	US$	US$
Available Profit	US$	US$
Plus:
Distributable profit from previous years	US$	US$
Less: Interest, commissions, and surcharges receivable	US$	US$
On deposits	US$	US$
On investments	US$	US$
On loans	US$	US$
On other assets	US$	US$
Distributable Profit	US$	US$

Note 21. Equity instruments measured at fair value with changes in other comprehensive income This disclosure must be made in accordance with the requirements described by IFRS.

Note 22. Equity or Net Worth Requirement
According to Article 24 of the Investment Banks Law, in order to constantly maintain their solvency, entities must present at all times the following ratios:
a) The ______% or more between their equity and the sum of their weighted assets. b) The 7% or more between the equity and their total obligations or liabilities with third parties, including contingent ones.

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-08/2025
NCF-12
ACCOUNTING MANUAL FOR INVESTMENT BANKS Approval: 30/09/2025 Validity: 15/10/2025 c) The 100% or more between the equity and the paid-in social capital referred to by the applicable laws respectively.

As of ______ of _____________ of 200X, the entity's situation is as shown by the following ratios:

Ratio	%
a) Equity to weighted assets	%
b) Equity to liabilities and contingencies	%
d) Equity to paid-in social capital	%

Note 23. Loss (gain) from impairment (reversal of impairment) of credit risk assets

The entity shall disclose the following information:
The amount of losses (gains) from impairment (reversal of impairment) for each class of credit risk asset, evidencing:
a) Increases in impairment, b) Amounts removed from the Statement of Financial Position in the period as a result of amounts considered uncollectible (loan or other credit risk asset for which no soundness reserves or loss estimates had been constituted); c) Recoveries on loans prior to their removal from the Statement of Financial Position d) Impairment reversals and others that contribute to establishing the total amount of impairment charges during the period.

Note 24. Transferred financial assets that do not meet the conditions for derecognition in full

This disclosure must be made in accordance with the requirements described by IFRS.

Note 25. Financial assets that are derecognized in full This disclosure must be made in accordance with the requirements described by IFRS.

Note 26. Pending Litigation
In the case of pending judicial and administrative litigation, of significant materiality, whether in favor of or against any of the consolidated entities, as well as the entity itself, they must be mentioned and their effect quantified, as required by International Financial Reporting Standards (IFRS).

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-08/2025
NCF-12
ACCOUNTING MANUAL FOR INVESTMENT BANKS Approval: 30/09/2025 Validity: 15/10/2025 Legal disputes in favor of or against the entity, brought before a judge to hear the case, as well as proceedings being heard by the Superintendence against the entities it supervises, are considered litigation.

Note 27. Expense (Income) from income tax
This disclosure must be made in accordance with the requirements described by IFRS.

Note 28. Related parties and relevant shareholders In accordance with the entity's legal framework, which establishes the conditions and requirements regarding related parties and transactions, the following additional information shall be disclosed:
a) Describe the requirements established in the legal framework for granting loans to related parties and whether the latter comply with the maximum financing allowed by said legal framework. Furthermore, in the case where the financing indicated at the date of the financial statements exceeds the permitted maximums, describe the regularization plan established; b) Describe the legal requirements established for granting loans to foreign subsidiaries and whether the maximum financing limit allowed for such entities has been complied with; c) Describe the legal requirements established for granting loans to national subsidiaries and whether the maximum financing limit allowed for such entities has been complied with; d) Additionally, the entity shall disclose the differences existing between the relevant legal framework and the disclosure framework required in this note regarding related parties; e) Mention that during the reported period the entity complied with or failed to comply (indicating the number of times) with the aforementioned related-party credit provisions; and f) Other legal and IFRS information that is relevant to the users of the Financial Statements.

Note 29. Limits on granting credit
The corresponding entity shall disclose the following information:
a) Describe the legal requirements established in the Investment Banks Law for the limit of financing for an individual or a group of persons with economic ties; b) A quantitative description of the compliance with the established legal limits, and

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-08/2025
NCF-12
ACCOUNTING MANUAL FOR INVESTMENT BANKS Approval: 30/09/2025 Validity: 15/10/2025 c) Describe whether it has complied with the legal requirements described in the previous letter and, in case of non-compliance with these, indicate the regularization plans established to correct the excesses.

Note 30. Contracts with related parties
In accordance with the legal framework applicable to the entity, it shall disclose the following:
a) Describe the legal requirements established in the Investment Banks Law for objecting to the celebration of contracts with related parties; b) A quantitative description of the amount of contracts celebrated, and c) Describe whether it has complied with the legal requirements described in the previous letter and, in case of non-compliance with these, indicate the number and amount of contracts objected to by the supervisory body.

Note 31. Operating segments
The entity must prepare this note describing segment information, considering the business segment as primary, as required by IFRS.

Note 32. Contingencies
As of the reference date of the financial statements, the so-called contingent operations are the following:
a) Letters of credit openings US$ b) Sureties, bonds, and guarantees c) Forward contracts _________ Less: Provision for risks US$_________ Total US$ ========

Note 33. Cryptocurrency Collateral

The entity shall disclose information on Cryptocurrency Collateral that backs the granting of credit to its clients, including amounts of collateral, type of cryptocurrency, and value fluctuations. Furthermore, the entity must disclose other important and relevant information for the best understanding of the users of the financial information.

Note 34. Risk Classification
The entity shall disclose the following information:
Describe the legal requirements established regarding the obtaining of a risk classification issued by a rating agency, indicating what the requirement consists of, the classification obtained, the reference date of the classification, as well as an explanation of what the obtained classification means and other information that the entity considers pertinent for a better understanding of the users of the financial statements.

Note 35. Scope of consolidation (Investments in subsidiary entities in consolidated financial statements) The entity must prepare this note as required by International Financial Reporting Standards.

Note 36. Acquisitions (business combinations) and sales (disposals of subsidiaries).
The entity must prepare this note as required by International Financial Reporting Standards.

Note 37. Relationships between active and passive operations in foreign currency According to what is established in the applicable legal frameworks regarding active and passive operations in foreign currency and in order to ensure that exchange rate risk remains within reasonable ranges, it has been established that the absolute difference between foreign currency assets and liabilities cannot exceed 20% of the equity.

As of ______ of _____________ of 200X, the entity complies with the cited provision by maintaining a ratio of _______% (or in case: did not comply by maintaining a ratio of _________%).

Note 38. Significant differences between International Financial Reporting Standards (IFRS) and Accounting Standards issued by the Committee of Standards of the Central Reserve Bank The entity shall disclose the following information:
Material and immaterial differences between International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles issued by the Committee of Standards of the Central Reserve Bank.

Note 39. Events occurring after the reporting period The entity must prepare this note as required by International Financial Reporting Standards.

Note 40. Relevant events
Relevant events are considered those quantifiable events that affect net profit or loss of the period by at least five percent. Aspects that have significance for the entity but cannot be revealed through figures in the financial statements due to their nature, or are not sufficiently exposed in other notes, must also be considered. Events occurring during the reported period or in subsequent periods, up to one day before the issuance of the financial statements, must be disclosed in this note.

SECTION IX
FINANCIAL INVESTMENTS

OBJECTIVE

This Section aims to regulate the recognition of investments made in government securities, as well as those made in financial derivatives.

SCOPE

This Section applies to investment operations made in securities of State entities as well as investments in financial derivatives.

RECOGNITION

3.1 State Investments

Securities issued or guaranteed by the Central Reserve Bank and by other State entities, payable with funds from the National Budget, must be considered without risk, for the purposes of this Section; consequently, the book value must be equal to the initial registration value established in the following paragraph.

When a financial entity acquires securities issued or guaranteed by the Central Reserve Bank of El Salvador or by other State entities, payable with funds from the National Budget, they must be accounted for at the acquisition cost net of brokerage fees, commissions, and other expenses related to the purchase. Brokerage fees, commissions, and any expense identified with the purchase of said

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-08/2025
NCF-12
ACCOUNTING MANUAL FOR INVESTMENT BANKS Approval: 30/09/2025 Validity: 15/10/2025 securities must be applied to the corresponding income statement account.
When securities are purchased between interest payment dates, the accrued interest from the date of the last payment to the date of purchase must not be part of the cost of these; therefore, they will be recorded as interest receivable. The foregoing applies only to investments made in government securities; for other investments, the provisions of International Financial Reporting Standards (IFRS) must be observed.

3.2 Financial Derivatives

When a financial entity enters into financial derivatives, it must observe the provisions established by the Central Bank and request the necessary authorization to carry out this type of operation. Furthermore, the entity must enter into negotiations of financial derivative instruments only if it fully understands how such instruments work; therefore, the entity must demonstrate that it has at least the internal capacity to value the intended instrument, observing at least the frequency of valuation, valuation methodology, formulas, parameters, and sources to be used; otherwise, it must not enter into negotiations of this type of instrument.

SECTION X
CRYPTOCURRENCIES

OBJECTIVE

This Section aims to regulate the recognition of acquisitions or holdings of cryptocurrencies by the entity in the normal course of its operations.

SCOPE

This Section applies to cryptocurrencies when they are held for sale in the normal course of the entity's operations, when authorized as a bitcoin service provider in accordance with the Investment Banks Law; in these circumstances, cryptocurrencies are inventory and therefore the provisions of International Financial Reporting Standards (IFRS) apply. Furthermore, it applies to the holding of cryptocurrencies when they are not intended for sale, and under these conditions, the entity recognizes them as Intangible Assets and therefore the provisions of International Financial Reporting Standards (IFRS) apply.

RECOGNITION

3.1 Inventory

Cryptocurrencies acquired to be used as inventory will be initially recognized at acquisition cost, which includes the purchase price plus any other costs directly attributable to their acquisition. The cost must be measured in the entity's functional currency. Subsequently, the entity must value the cryptocurrencies on the last day of each month at cost or net realizable value, whichever is lower. For this purpose, the provisions of International Financial Reporting Standards (IFRS) must be observed.

3.2 Intangible Assets

Holdings of cryptocurrencies as intangible assets will be initially measured at acquisition cost, which includes the purchase price plus any other costs directly attributable to the acquisition. Subsequently, they will be measured at fair value whenever there is an active market; the increase or decrease in the cryptocurrency as a result of a revaluation will be applied to sub-account 2 0201 , in the following manner:
a) Increases in the value of the cryptocurrency: will cause an increase in the value of the intangible asset and an increase in the sub-account . b) Decreases in the value of the cryptocurrency: will cause a decrease in the value of the intangible asset and a d c) Value changes recognized in equity as referred to in the previous letters are considered unrealized gains or losses and will be reclassified to income on the date the entity disposes of or sells the intangible asset. The entity must prepare an internal policy in which they will describe the methodology they implement for the valuation of cryptocurrencies, the criteria for carrying out such valuation, as well as supply and demand factors, the perceived utility of the asset, the utility of the currency, the source of information for measurement, among other factors, for the determination of the valuation of cryptocurrencies.

CHAPTER III
CHART OF ACCOUNTS

DESCRIPTION OF THE CODIFICATION METHOD
The chart of accounts contains the basic accounts required for the accounting recording of economic events that meet the conditions for recognition or, failing that, originate contingent rights or obligations, enable the entity to claim future rights, evidence ownership or justify the existence of certain rights or obligations, indicating the number and name of the element, the classification, the section, the account, and the sub-account. The chart includes the codes and accounts that by regulation must be reported periodically to the Superintendence; consequently, for its internal records, the entity may disaggregate within each sub-account the detail that best suits its needs. The chart of accounts is structured in elements identified by a digit, classifications identified by 2 digits, sections identified by 3 and 4 digits, accounts identified by 6 digits, and sub-accounts identified by 10 digits, which include the type of currency as exemplified below:

Element 1 ASSETS
Classification 11 ASSETS
Section 111 CASH AND CASH EQUIVALENTS
Section (characteristic) 1110 CASH AND CASH EQUIVALENTS
Account 1110.01 Cash
Sub-account 1110.01.01.01 Head Office LC
Sub-account 1101.01.01.02 Head Office FC

Element 2 LIABILITIES
Classification 21 LIABILITIES
Section 210 FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS (FVTPL)
Section (characteristic) 2100 HELD FOR TRADING
Account 2100.01 Held for trading other than derivatives Sub-account 2100.01.01.01 Debt instruments-LC Sub-account 2100.01.01.02 Debt instruments FC

Element 3 EQUITY
Classification 31 EQUITY
Section 311 SHARE CAPITAL
Section (characteristic) 3110 SUBSCRIBED SHARE CAPITAL
Account 3110.01 Subscribed capital
Sub-account 3110.01.01.01 Common shares
Sub-account 3110.01.02.01 Preferred shares

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-08/2025
NCF-12
ACCOUNTING MANUAL FOR INVESTMENT BANKS Approval: 30/09/2025 Validity: 15/10/2025 The level corresponds to the position occupied by the account within the account structure. To define the chart of accounts, a six-level structure has been established. The meaning of each of the levels is as follows:

Level	Meaning	Values
First	Account element in the Financial Statement	1. Assets
2. Liability
3. Equity
4. Contingent rights
5. Contingent commitments
6. Income
7. Costs
8. Expenses
9. Off-balance sheet accounts
Second	Account classification in the financial statement	11. Assets
12. Other assets
13. Physical and intangible assets
14. Intercompany balances
Third	Section	Collects a set of accounts associated with the previous level.
111 Cash and cash equivalents
112 Operations with repurchase agreement
113 Investment financial instruments
114 Loans
122 Goods received in payment or adjudicated
123 Inventory
124 Prepaid expenses
125 Accounts receivable
126 Investments in shares, rights, and participations
Fourth	Section (characteristic)	1110 Cash and cash equivalents
1121 Operations with repurchase agreement
1130 At fair value through profit or loss (FVTPL) 1131 At fair value through other comprehensive income (FVTOCI) 1132 Financial derivatives for hedges 1134 At amortized cost
Fifth	Account	Identifies the position of each account within each section.
Minimum value: 01
Maximum value: 99	1110 01 Cash
1110 02 Deposits at BCR
1110 03 Documents held by other banks
Sixth	Sub-account	Identifies the position of each sub-account within the accounts.
Minimum value: 01
Maximum value: 99	1110.01.01 01 Head Office LC
1110.01.02 01 Branches LC
1110.01.97 01 Other LC

The Chart of Accounts is presented in the Annex of this Accounting Manual, in which the codes and descriptions are detailed.

CHAPTER IV
ACCOUNTING APPLICATIONS MANUAL

SECTION I
ACCOUNTING APPLICATIONS MANUAL OF ASSETS

Element 1 ASSETS
Classification 11 ASSETS
Item 111 LIQUID RESOURCES
Item
(characteristic) 1110 LIQUID RESOURCES
The Liquid Resources item comprises cash resources, demand bank deposits, and restricted deposits.
Subaccounts corresponding to transit remittances must not show a balance at the end of each month.
Account 1110 01 CASH
This account must represent assets that, due to their liquidity, are immediately available. This account must represent monetary resources in both national and foreign currency, available in the treasuries and cash boxes of the central office and agencies, as well as fixed funds and local transit remittances, for the development of business operations. It is debited for the entry of cash, with credit to the accounts that serve as the counterpart, according to the nature of the operation that generates the increase in cash. It is credited for the exit of cash, with debit to the accounts that serve as the counterpart, according to the nature of the operation that generates the decrease. Account 1110 02 DEPOSITS AT THE CENTRAL BANK All balances of demand accounts that the institution maintains at the Central Bank, in national and foreign currency, which are owned by the institution, are recorded in this account. Pending checks for compensation must not be applied against them. Balances must be reconciled daily with the statements issued by the Central Bank; un-reconciled items are not admitted for more than thirty (30) days in cases where they must be regularized by the institution.

It is debited for the establishment of deposits, with credit to the accounts that serve as the counterpart, according to the nature of the operation that generates the increase. It is credited for the exit of Cash, with debit to the accounts that serve as the counterpart, according to the nature of the operation that generates the decrease. Account 1110 03 DOCUMENTS PAYABLE TO OTHER BANKS This account must represent the value of checks received from other banks while they are in their collection or Clearing House process. It is credited for the collection value, and it is credited for the return of checks to their respective drawers. Account 1110 04 DEPOSITS AT LOCAL BANKS This account must represent amounts of money deposited in domiciled banks. Bank overdrafts, when they occur, must be reclassified to the corresponding liability accounts. It is debited for the establishment of deposits, with credit to the accounts that serve as the counterpart, according to the nature of the operation that generates the opening, as well as increases thereto. It is credited for the exit of Cash, with debit to the accounts that serve as the counterpart, according to the nature of the operation that generates the disbursement. Account 1110 05 DEPOSITS AT INVESTMENT BANKS This account must represent amounts of money deposited in domiciled investment banks. Bank overdrafts, when they occur, must be reclassified to the corresponding liability accounts. It is debited for the establishment of deposits, with credit to the accounts that serve as the counterpart, according to the nature of the operation that generates the opening, as well as increases thereto.

It is credited for the exit of Cash, with debit to the accounts that serve as the counterpart, according to the nature of the operation that generates the disbursement.
Account 1110 06 DEPOSITS AT OTHER ENTITIES OF THE FINANCIAL SYSTEM This account must represent amounts of money deposited in other entities of the financial system such as Cooperative Banks or Savings and Credit Societies, both in local and foreign currency. Bank overdrafts, when they occur, must be reclassified to the corresponding liability accounts. It is debited for the establishment of deposits, with credit to the accounts that serve as the counterpart, according to the nature of the operation that generates the establishment, as well as increases thereto. It is credited for the exit of Cash, with debit to the accounts that serve as the counterpart, according to the nature of the operation that generates the disbursement. Account 1110 07 DEPOSITS AT FOREIGN BANKS This account must represent monetary deposits made in banks located outside the national territory. Bank overdrafts, when they occur, must be reclassified to the corresponding liability accounts. It is debited for the establishment of deposits, with credit to the accounts that serve as the counterpart, according to the nature of the operation that generates the collection. It is credited for the exit of Cash, with debit to the accounts that serve as the counterpart, according to the nature of the operation that generates the payment. The subaccount corresponding to transit remittances (amounts corresponding to values pending confirmation by the entities depositing the remitted resources) is credited once the transactions are confirmed by the pertinent entities, with debit to the corresponding foreign bank accounts. Only remittances pending confirmation for a period not exceeding fifteen (15) calendar days may be presented in this subaccount.

Account 1110 08 RESTRICTED DEPOSITS
This account must represent deposits that from their origin or during the validity of the account(s) have been restricted by contractual or implicit conditions that oblige the administration, for their compliance, to present them separately. It is debited with the liquid resources originating from the start as restricted and with those reclassified, and it is credited when the relevant restrictive conditions disappear, returning them to their original condition, or when they have been used to comply with the conditions that originated their reclassification. Item 112 OPERATIONS WITH REPURCHASE AGREEMENT Item (Characteristic) 1121 OPERATIONS WITH REPURCHASE AGREEMENT The accounts in this item record the amounts corresponding to the disbursed value of repo operations performed (i.e., the financed amount), when the entity acts as the repo provider or financier, committing to the resale of the acquired title as collateral on the maturity date of the contract. They are initially increased with the amount of the financed value. They are decreased by crediting them on the date the operation that gave rise to them is amortized. The accounts detail repo operations with the different entities that act as counterparties to these operations, i.e., the repo takers, and the subaccounts detail the entities issuing the reported financial instruments, as well as interest and other receivables generated by these operations. Account 1121 08 EXCHANGE OPERATIONS This account must represent the value of rights acquired through exchange transactions commonly known as repos. Item 113 INVESTMENT FINANCIAL INSTRUMENTS This item presents all investments in securities that are owned by the entity. Item (Characteristic) 1130 AT FAIR VALUE WITH CHANGES IN PROFIT OR LOSS (FVPL) Financial instruments measured at fair value whose changes in value are applied to profit or loss in accordance with the business model that management has established for the management of its portfolio are included in this item. Account 1130 01 HELD FOR TRADING DEBT INSTRUMENTS OTHER THAN DERIVATIVES This account must represent the value of instruments that are owned by the institution, which have the characteristic of being negotiable; that is, they can be freely transferred and, in addition, the institution has the intention to commercialize them. It is debited for the amounts corresponding to the fair value of debt instruments acquired by the entity. Transaction costs incurred in these operations are applied directly to profit or loss by debiting the corresponding expense account. The debits applied will be reconciled with the credits to the liquid resources used or liabilities acquired to effect the transaction. Adjustments for changes in fair value, upward or downward, of financial assets classified in these business models. Adjustments are applied with debit or credit to the subaccounts of accounts: 6110 02 or 7110 05, as applicable. Account 1130 02 HELD FOR TRADING DERIVATIVES This account is
affected by acquired financial derivative instruments that have not been designated as an effective accounting hedge instrument. The acquisition of these instruments must be consistent with the risk policies and classification of financial assets established by the entity's management. The subaccounts of this account are debited with the fair value of derivatives that are contracted, when they take the position of an asset, with credit to the subaccount The subaccounts of this account are credited with changes in fair value that imply a decrease in value, with debit to the subaccount or at maturity, provided they have a debit balance. Account 1130 03 DEBT INSTRUMENTS DESIGNATED AT FAIR VALUE WITH CHANGES IN PROFIT OR LOSS It is debited for financial instruments that are irrevocably designated in this category to eliminate or reduce measurement or recognition inconsistencies (accounting asymmetry) that would otherwise arise from the measurement of assets or liabilities or the recognition of gains and losses on the same on different bases. It is credited when the entity disposes of these financial instruments. Item (characteristic) 1131 AT FAIR VALUE WITH CHANGES IN OTHER COMPREHENSIVE INCOME (FVOCI) This item includes financial assets managed by the entity within a business model whose objective is achieved by obtaining contractual cash flows and selling financial assets; likewise, the contractual conditions of these financial assets give rise at specific dates to cash flows that are solely payments of principal and interest on the outstanding principal amounts. In each of the accounts comprising this item, subaccounts are included to present adjustments for fair value fluctuation and interest and other receivables generated by the financial instruments of this classification. Account 1131 01 DEBT REPRESENTATIVE INSTRUMENTS The subaccounts of this account are initially debited with the fair value plus transaction costs of acquired debt financial assets. It is credited when the financial assets are disposed of. Item (characteristic) 1132 FINANCIAL DERIVATIVES FOR HEDGING This item will include financial instruments designated for the hedge of specifically identified risks, which have the probability of impacting the entity's results as a consequence of variations in the fair value or in the cash flow of one or more concrete elements, or in a net investment in foreign currency, referred to as hedged items.

Account 1132 01 FAIR VALUE HEDGES
Fair value hedge covers the exposure to change in the fair value of a recognized asset or liability or a firm commitment to buy or sell an asset at a set price, or the exposure of a specific portion of such asset, liability, or firm commitment, which is attributable to a particular risk and which could affect the entity's results.

In fair value hedge, the gain or loss that arises from remeasuring the hedging instrument to fair value (in the case of a derivative) or the foreign currency component of a recorded amount (in the case of a non-derivative) is recognized immediately in the statement of other comprehensive income. At the same time, the recorded amount of a hedged item is adjusted by the gain or loss attributable to the hedged risk, if applicable, and will be recognized in the period's profit or loss. Any adjustment made to hedged items will be amortized through the profit or loss of the year if the hedged item is a financial instrument (or a component thereof) measured at amortized cost. Amortization will begin as soon as the hedged item ceases to be adjusted by hedge gains or losses or as soon as there is an adjustment to it. Amortization will be based on the effective interest rate, recalculated on the date amortization begins. In the case of a financial asset (or a component thereof) that is a hedged item and that is measured at fair value with changes in other comprehensive income, amortization is applied in the same way, but to the amount representing the previously recognized and applied accumulated gain or loss in other comprehensive income, instead of the book amount. However, when it concerns a hedge of the fair value exposure to interest rate risk of a portfolio of financial assets or financial liabilities (and only for this form of hedge) and amortization using a recalculated effective interest rate is impracticable, the adjustment will be amortized using a linear method. In all cases, the adjustments will be fully amortized by the maturity of the financial instrument or, in the case of a portfolio hedged only for interest rate risk, at the expiration of the interest review period. This account is debited for upward fluctuations in fair value with respect to the 02 It is credited for downward fluctuations in fair value with respect to the value as applicable. It is credited for the following reasons: discontinuation of hedge accounting when the hedge relationship (or a part of a hedge relationship) ceases to meet the required criteria (after taking into account any rebalancing of the hedge relationship, if applicable) this includes when the hedging instrument expires, is sold, resolved, or exercised, with debit to the corresponding accounts.

Account 1132 02 CASH FLOW HEDGES
Cash flow hedge covers the exposure to variation in cash flows that: i) Is attributable to a particular risk associated with a recognized asset or liability or with a forecasted transaction (future operation but not committed) and ii) Could affect the entity's results. The portion of the gain or loss on the hedging instrument, determined as an effective hedge, will be recognized directly in the equity account of other comprehensive income in the item as applicable, while the ineffective portion will be recognized in profit or loss either in the or in the subaccount as applicable, in the account that applies. The accumulated amount in the cash flow hedge reserve is accounted for as follows:
a) If a forecasted transaction subsequently covered gives rise to the recognition of a non-financial asset or a non-financial liability, or a forecasted transaction covered for a non-financial asset or non-financial liability becomes a firm commitment for which fair value hedge accounting applies, the entity shall eliminate that amount from the cash flow hedge reserve and include it directly in the initial cost or other amount of the asset or liability. b) For cash flow hedges other than those covered by a), that amount will be reclassified from the cash flow hedge reserve to the period's profit or loss as a reclassification adjustment in the same period or periods during which the expected future cash flows covered affect the period's profit or loss (for example, in the periods in which interest income or interest expense is recognized or when a forecasted sale takes place). c) If the hedge reserve is a loss and an entity expects that all or part of it will not be recovered in one or more future periods, the amount not expected to be recovered will be reclassified immediately to the period's profit or loss as a reclassification adjustment. When an entity discontinues this hedge accounting, it will account for the amount that has been accumulated in the cash flow hedge reserve as follows:
a) If it is expected that the future covered cash flows will still occur, that amount will be maintained in the cash flow hedge reserve until the future cash flows occur or until letter c) of the

paragraph above is applied. When the future cash flows occur, the paragraph established in the previous paragraph will be applied. b) If it ceases to be expected that the future covered cash flows will occur, that amount will be reclassified immediately from the cash flow hedge reserve to the period's profit or loss as a reclassification adjustment. It is debited for upward fluctuations in fair value with respect to the initial or the previously measured one, crediting the difference between the fair value and said previous measurement, in the items:
It is credited for downward fluctuations in fair value with respect to the initial or the previously measured one, debiting the difference between the previous measurement and the current fair value, in the item and account:
It is credited for the following reasons: discontinuation of hedge accounting when the hedge relationship (or a part of a hedge relationship) ceases to meet the required criteria (after taking into account any rebalancing of the hedge relationship, if applicable) this includes when the hedging instrument expires, is sold, resolved, or exercised, with debit to the corresponding accounts. Item (characteristic) 1134 AT AMORTIZED COST This item must represent the value of financial instruments that the entity has the intention and possibility of holding until maturity. This item includes financial instruments managed by the entity within a business model whose objective is achieved by obtaining contractual cash flows; likewise, the contractual conditions of these financial instruments give rise at specific dates to cash flows that are solely payments of principal and interest on the outstanding principal amounts. In each of the accounts in this item, subaccounts are included to present accrued interest or similar, established based on the contractual interest rate and calculated using the effective interest method, applying the effective interest rate to the gross book amount of each financial asset, except for:

a) Financial assets acquired with credit impairment. For these financial assets, the entity shall apply the effective interest rate adjusted for credit quality to the amortized cost of the financial asset from initial recognition; and b) Financial assets that are not financial assets acquired with credit impairment but that have subsequently become financial assets with credit impairment.

For these financial assets, the entity shall apply the effective interest rate to the amortized cost of the financial asset in subsequent reporting periods. An entity that, in a reporting period, calculates interest income by applying the effective interest method to the amortized cost of a financial asset in accordance with letter b) of the previous paragraph, shall calculate, in subsequent reporting periods, interest income by applying the effective interest rate to the gross carrying amount if the credit risk on the financial instrument improves, such that the financial asset no longer has credit impairment and the improvement can be objectively linked to an event that occurs after the requirements of letter b) of the previous paragraph were applied. (Such as an improvement in the credit rating of a borrower).

Additionally, subaccounts are included in each account for the recording of Impairment Adjustments, to include amounts established as expected credit loss on the portfolio of financial instruments subsequently measured at amortized cost after initial recognition, of financial assets subject to impairment review. These subaccounts shall be debited with the amounts established in each assessment in accordance with the expected loss model and credited for decreases in value arising from the same model.

The subaccount containing the impairment shall be credited for said value with a debit to the It shall be debited for collection, improvement in risk rating, or by removing the asset from the balance sheet, with a credit to the Other subaccount in the case of reversal of impairment or to the accounts in item 113 that correspond, in the case of removal from the balance sheet.

The application of balances in these impairment subaccounts is exempted for financial instruments issued or guaranteed by the Central Reserve Bank and by other State entities, payable with funds from the National Budget, which shall be considered risk-free for the purposes of these valuations; consequently, the book value must be equal to the initial registration value.

Account 1134 00 DEBT INSTRUMENTS WITH QUOTED PRICE This account shall be initially debited with the amount corresponding to fair value plus transaction costs incurred. Subsequently, these assets shall be measured at amortized cost. It shall be credited for principal amortizations and on their settlement date.

Account 1134 01 DEBT INSTRUMENTS WITHOUT QUOTED PRICE This account shall be initially debited with the amount corresponding to fair value plus transaction costs incurred. Subsequently, these assets shall be measured at amortized cost. It shall be credited for principal amortizations and on their settlement date.

Item
(characteristic) 1138 RESTRICTED FINANCIAL INSTRUMENTS This item shall show the balance of financial assets that have restriction conditions. The accounts in this item shall reveal separately the restricted balances and the balances corresponding to financial assets with the indicated conditions.

Item 114 LOANS
Item
(characteristic) 1141 LOANS AGREED FOR UP TO ONE YEAR TERM Accounts 1141 01/1141 08 LOANS TO STATE ENTITIES/LOANS TO INVESTMENT BANKS These accounts must show the current balances of capital, interest, and commissions, for loans granted to natural or legal persons whose term does not exceed one year, for different economic activities.

Subaccounts 1141 08-0401/0402 will record loans made to investment banks through the approved credit line.

When it comes to portfolio purchase, the entity must obtain all source documentation, including magnetic files, which it must keep in its main offices available to the Superintendency of the Financial System, so that it may exercise its supervisory powers when it deems appropriate.

In every portfolio sales contract, a clause must be included establishing the obligation described in the previous paragraph.

Account 1141 99 DISBURSEMENTS AND RECOVERIES TO BE APPLIED This account is of a transitional nature; consequently, its balance on the monthly balance sheet must be equal to zero. It must be used when, for technological or operational reasons, it is not possible to apply the corresponding account directly.

Item
(characteristic) 1142 LOANS AGREED FOR MORE THAN ONE YEAR TERM Accounts 1142 01/1142 08 LOANS TO STATE ENTITIES/LOANS TO INVESTMENT BANKS These accounts must represent the current balances of capital, interest, and commissions in both national and foreign currency, for loans granted to natural or legal persons, whose term is greater than one year, for different economic activities.

Additionally, financial leases of movable and immovable goods granted to natural or legal persons, oriented towards financing assets dedicated to productive activity, are recorded in these accounts.

Subaccounts 1142 04-0101/0102 will record loans agreed for more than one year term for local entities through an approved credit line.

In the case of loans with the credit line modality, all disbursements must have the same reference.

For the purposes of this Accounting Manual, refinanced and restructured credits shall be understood in accordance with the definitions established in the Standards for Classifying Credit Risk Assets and Establishing Sanitation Reserves for Investment Banks, which the Central Bank shall issue for such purposes through its Standards Committee.

Item
(characteristic) 1148 OVERDUE LOANS
Accounts 1148 01/1148 08 LOANS TO STATE ENTITIES/LOANS TO INVESTMENT BANKS These accounts must represent capital balances with delinquency greater than 90 calendar days.

The subaccounts of these accounts shall be affected by reclassifications made from the subaccounts of the accounts in items 1141 and 1142.

Account 1148 99 LOAN RECOVERIES IN JUDICIAL COLLECTION This account must represent the amounts of loan recoveries that are being collected judicially.
Its balance shall be credit, therefore, it shall be presented subtracting from the overdue portfolio.

Item 1149 PROVISION FOR UNCOLLECTABILITY OF LOANS Account 1149 01 PROVISION FOR UNCOLLECTABILITY OF LOANS The accounts in this item must represent provisions for specific risks, calculated based on the Standards for Classifying Credit Risk Assets and Establishing Sanitation Reserves for Investment Banks, which the Central Bank shall issue for such purposes through its Standards Committee. The provisions that provision.

Generic Accounting Applications
The accounting for increases and releases of the different sanitation reserves shall be made as follows:
a) Increases shall cause an increase in the corresponding expense account and a credit in the complementary asset account that records the reserves in question; and b) Decreases shall cause a debit in the complementary account and a credit in the income account designated for recording reserve releases.

Accounting Applications to Debtor Reserves
Reserves for debtor classification (Private company, housing, and consumption) must be established to cover risks derived from the characteristics of each debtor.

Increases in these reserves may occur due to an increase in risk, by reclassifying the debtor into a higher risk category, or by corrections determined by the Superintendency, external auditors, or internal auditors.

Decreases in these reserves may occur due to modification of the debtor's classification, decrease in risk, or by coverage of the guarantee.

These reserves may suffer decrements when loan balances are removed from the asset, according to the policies of each entity or by Technical Standards issued by the Central Bank through its Standards Committee.

Debits to the reserve for asset write-offs shall be made up to the reserved value of each loan; if the written-off value is higher than the established reserve, it shall be applied to the expense account that records write-offs of intermediation assets.

Accounting Applications to Voluntary Reserves
Voluntary sanitation reserves shall be increased or decreased when and by the amounts determined by each entity.

Accounting Applications to Restricted Voluntary Reserves Sanitation reserves that are released by reclassifying debtors attending to guarantee coverage may only be decreased with the authorization of the Superintendent.

Applications to other classes of reserves
The other classes of sanitation reserves not described in the previous classification shall be increased or decreased, in accordance with particular instructions issued by the Superintendency in each case.

Classification 12 OTHER ASSETS
Item 121 BALANCES BETWEEN COMPANIES
Item
(characteristic)
1210 BALANCES BETWEEN COMPANIES
Account 1210 00 BALANCES BETWEEN COMPANIES
The accounts in this item must represent pending settlement balances between the different companies linked to the entity, whether agencies, subsidiaries, national or foreign, and foreign banks; due to their transitional nature, balances with national agencies must be equal to zero at the end of each month.

Item 122 GOODS RECEIVED IN PAYMENT OR AWARDED
Item
(characteristic)
1220 GOODS RECEIVED IN PAYMENT OR AWARDED
Accounts 1220 01/1220 03
IMMOVABLE GOODS/FINANCIAL INSTRUMENTS
These accounts must represent the existence of goods whose ownership derives from judicial actions, voluntary assignment, purchase, etc., in substitution of loans, credits, or financial leases granted by the entity.

RECOGNITION, MEASUREMENT, AND PRESENTATION OF ASSETS The reclassification of extraordinary assets proceeds only with the authorization of the Superintendency, provided they meet the requirements contained in the penultimate paragraphs of Article 72 of the Banks Law, to which Article 71 of the Investment Banks Law refers; extraordinary assets represented by financial instruments shall not be subject to reclassification.

judicial award and the balances owed by the debtor; in the case of financial leases, it shall represent the difference between the value of the good and the pending payment balance owed by the financial lessee.

Account 1220 04 CONSTRUCTIONS IN PROGRESS
This account must represent expenditures made during the construction process of additions or improvements that extend the useful life of the asset or increase its value.

Item
(characteristic)
1230 INVENTORIES
Accounts 1230 01/1230 02 VOLATILE CRYPTOCURRENCIES/STABLE CRYPTOCURRENCIES This account must represent the holding of cryptocurrencies for sale in the normal course of operations as bitcoin service providers, in accordance with what is established in the Investment Banks Law. It shall be recognized in account 1230 01 Volatile Cryptocurrencies, initially at cost plus all other costs attributable to their acquisition.

Accounts 1230 03/1230 04 GOODS FOR SALE/GOODS FOR CONSUMPTION

These accounts must represent the acquisition cost of the different goods used for the development of business management, for example, stationery and supplies used by the business activity, and those that are sold to the public.

Item 124 PREPAID EXPENSES
Item
(characteristic) 1240 PREPAID EXPENSES
The accounts in this item collect disbursements incurred on goods and services that will be expensed over the accounting period or in subsequent periods and that meet the definition of an asset. The corresponding amounts shall be applied to the corresponding expense by applying the accounting policy that the entity has for such purposes.

The accounts in this item must represent the value of disbursements for the concepts corresponding to each account and subaccount of the item.

The accounts in this item must represent the proportional value of valid insurance premiums, and the other concepts corresponding to each account of the item.

Item 125 ACCOUNTS RECEIVABLE
Item
(characteristic) 1250 ACCOUNTS RECEIVABLE
The accounts in this item must represent accrued income that has not yet been paid by debtors, payment on behalf of others, advances, and other concepts that do not correspond to the accounts and subaccounts of the item.

It shall be debited for accrued benefits with a credit to the corresponding contra-accounts. It shall be credited for the recovery of benefits or when they are removed from the balance sheet due to established uncollectability.

Account 1250 04 SALES OF FINANCIAL ASSETS
This account records pending balances to be received in the sales of investment financial instruments on the trade date with a credit to the accounts in the item Its balance shall be credited on the settlement date with a debit to the accounts in the item

Account 1250 05 ACQUISITION

It represents the accounts receivable from the business affiliated with the acquiring entity for promissory notes sent for collection as a result of cardholder purchases. It is credited when the affiliated business receives payment from the acquiring business. The account shall always apply whenever an entity required to apply this Manual functions as an affiliated entity.

Account 1250 06 EXCHANGE
This account shall be increased by debiting it with the amounts corresponding to settlements made to affiliated businesses (when the entity acts as acquirer and is also the card issuer) for the cancellation of operations that cardholders from issuers other than the entity (outgoing operations), local or foreign, carried out in the affiliated business. The entity settles the net transactions of commissions, which are applied to the subaccount or crediting it at the moment the entity receives the pertinent reimbursements net of exchange commissions, which are applied to the subaccount

In the case where the acquiring entity and the issuing entity are different, then this account is debited for the amount of promissory notes that the acquiring entity has sent to the issuing entity. It is credited when the issuing entity sends the payment of the promissory notes net of the exchange commission, which is applied to the subaccount

Account 1250 07 ASSET MANAGEMENT
This account shall be affected by debiting it with balances owed by entities that act as asset managers of the entity; the indicated balances originate from claims filed by the entity's clients, for example, for payments made at the asset management entity and which have not been applied to the client's statement, which causes delinquency in payments, a situation that alerts the client to file a claim, with a credit to the claiming client's account. The account is credited with a debit to the account that receives the reimbursement of the pending application that gave rise to the balance.

Account 1250 08 COLLECTORS
This account shall be affected by debiting it with balances owed by entities that act as collectors for the entity's accounts (loans or other similar operations); the indicated balances originate from claims filed by the entity's clients, for example, for payments made at the collecting entity and which have not been applied to the client's statement, which causes delinquency in payments, a situation

that alerts the client to file a claim, with a credit to the claiming client's account. The account is credited with a debit to the account that receives the reimbursement of the pending application that gave rise to the balance.

Account 1250 09 DIVIDENDS
This account shall be affected by debiting it with the amounts of dividends decreed by the the corresponding subaccount. It is credited on the date when dividend settlements are received.

Subaccount 1250 99 0301 VAT Tax Credit
This subaccount is debited for the amounts of the tax on the transfer of movable goods and on the provision of services (VAT) paid on the purchase of movable goods or acquisition of services; it is also debited for the amounts corresponding to the percentage of VAT withheld by large taxpayers for sales made to them. Furthermore, it is debited for the amount received by large taxpayers for purchases made from them. It is credited monthly when the VAT settlement is made with a debit to the sub-subaccounts of sub 0 99 0201 VAT fiscal debit, for the amount to be paid to the tax authority.

In all cases, the breakdown of the sub-subaccounts shall be used to the extent that they are applicable to the entities using this Manual.

Item
(characteristic) 1251 TAXES
Account 1251 01 CURRENT INCOME TAX
Current fiscal assets, arising from the current or prior periods, must be measured by the amounts expected to be recovered from the tax authority, using the tax regulations and rates in effect on the balance sheet date.

This account is debited in the following circumstances:

Subaccount 1251 01 0101 Advance Payment
For the amounts of advance payment established on the amount of gross income of the monthly fiscal period to be declared with a credit to the subaccount

Subaccount 1251 01 0201 Withheld Tax

For the amounts of tax withheld by third parties with a credit to the financial asset affected by the withholding.

Subaccount 1251 01 0301 Remainder of Income Tax This account is affected by debit for the amount established as a remainder upon settlement.
This account represents a tax credit in favor of the taxpayer (the entity) for the excess of advance payment made, which may be deducted in subsequent fiscal periods; it is the result of the positive difference of a) the sum of the ac

Account 1251 02 DEFERRED INCOME TAX
It shall be initially debited for the amount of deferred tax assets computed, applying the current tax rates, on deductible temporary differences that at the date they are established increase fiscal income and whose future reversal will increase fiscal expenses, thereby decreasing future tax payable, with a credit to It shall be credited when the deductible temporary differences established in It shall be debited or credited, as appropriate, in subsequent reviews, generally at the end of the accounting year, when the administration makes the corresponding adjustments based on the temporary differences recorded in prior periods and those established in the current period.

It must be kept in mind that on some occasions deferred assets or deferred liabilities for temporary differences may affect equity accounts instead of income accounts; in such a case, the equity account shall be recorded net of the corresponding asset or liability; example: revaluations of property, plant, and equipment, fluctuations in the value of financial assets with changes in other comprehensive income, exchange differences established in the consolidation of businesses abroad, etc. Such a deferred tax asset or liability shall be reversed gradually as the asset or liability that affected equity is realized or removed from the balance sheet.

The criteria that gave rise to the recording of these assets must be evaluated at least on each annual closing date.

The entity must have a control record that allows for the reliable identification of assets or liabilities that generate temporary differences and the values corresponding to such differences, both for the current period and previous ones, which will facilitate appropriate reconciliations and disclosures regarding income and expenses from income taxes.

The carrying amount of deferred tax assets and liabilities may change, even when the amount of the corresponding temporary differences has not changed. This may happen, for example, as a result of:
a) A change in tax rates or tax laws; b) A reassessment of the recoverability of deferred tax assets; or c) A change in the expected manner of recovering the carrying amount of an asset.

The deferred tax corresponding to these changes shall be recognized in the statement of profit or loss except to the extent that it relates to items previously charged or credited directly to equity accounts.

The proposed treatment of income and expense from taxes, both current and deferred, is aligned with the financial framework; the effects of the application of the tax framework are not addressed here.

Item 1259 ESTIMATE OF LOSS FOR IMPAIRMENT
This item must represent the estimate of uncollectibility for the accounts in this item; its balance is a credit balance, consequently, it is presented reducing the item to which it belongs.

It is debited for reductions in impairment, occurring due to the improvement in the credit quality of the asset, reduction of the outstanding balance, or because the impaired asset is removed from the balance sheet.

Item 126 INVESTMENTS IN SHARES, RIGHTS AND PARTICIPATIONS Item 1260 INVESTMENTS IN SHARES, RIGHTS AND PARTICIPATIONS

The accounts in this item must represent the value of investments in companies permitted by the Laws, as well as memberships derived from financial activity.

The recognition process for assets entered into this grouping is subject to compliance with all measurement principles established in IFRS 3.

recognized in this grouping, when they first appear on the balance sheet as a result of a business combination where the entity is the acquirer, will be equivalent to the identifiable assets acquired and liabilities assumed at their fair values on the date of acquisition. For each business combination, the acquirer shall measure any non-controlling interest in the acquiree at fair value or at the proportionate share of the non-controlling interest in the identifiable net assets of the acquiree.

The recognition conditions defined by the accounting standard are as follows:
a) To meet the recognition conditions as part of the application of the acquisition method, the identifiable assets acquired and liabilities assumed must satisfy, on the acquisition date, the definitions of assets and liabilities in the Conceptual Framework for Financial Reporting; and b) Furthermore, to meet the conditions for recognition as part of the application of the acquisition method, the identifiable assets acquired and liabilities assumed must be part of what the acquirer and the acquiree (or their former owners) exchanged in the business combination transaction and not the result of separate transactions.

The exceptions established for the recognition of assets and liabilities acquired in a business combination will cause some items to be:
a) Accounted for applying additional recognition conditions to those defined in said standard or applying the requirements of other IFRSs, which will yield results different from those obtained by applying the conditions and the recognition principle; and b) Measured at amounts different from their fair values on the acquisition date.

The presentation of share investments held in the entity's books shall be as follows:

Separate Financial Statements
Investments in subsidiaries, joint ventures, and associates, in the entity's separate financial statements, shall be presented at cost or the equity method.

Accounting Application
The accounts in this grouping are debited for the amounts of consideration delivered for the acquisition of the subsidiary or joint venture, with a credit to the accounts supporting the delivery of the consideration.

Consolidated Financial Statements
In consolidated financial statements, share investments shall be presented as follows:
a) Subsidiaries, shall be presented consolidated, using the full consolidation method; and b) Joint ventures, which meet the condition of joint control, using the equity method.

Other aspects to consider a) From the date the jointly controlled entity becomes a subsidiary of the participant in the joint venture, it shall account for its participation using the full consolidation method in the consolidated financial statement and using the cost or equity method in the separate financial statement. b) Similarly, from the date the jointly controlled entity becomes an associate of the participant in the joint venture, it shall account for its participation using the equity method in the consolidated financial statement and using the cost or equity method in the separate financial statement.

Item
(feature) 1261 PURCHASED GOODWILL
Goodwill is an asset that represents future economic benefits arising from other assets acquired in a business combination that are not identified individually nor recognized separately.

Item 127 ASSETS HELD FOR SALE
Item
(feature) 1270 ASSETS HELD FOR SALE
Account 1270 01 LONG-TERM ASSETS

This account shall consist of long-term assets reclassified from a previous category to this category, because management has decided to recover them through a sale operation rather than through continuous use. These assets shall not be depreciated while classified in this category.

Assets are reclassified to this item when they are available for sale in their current condition, under the usual and customary terms for their sale, and the sale must be highly probable.

For the sale to be highly probable, management must be committed to a plan to sell the asset, and must have actively initiated a program to

find a buyer and complete the plan. Furthermore, the sale must be actively negotiated at a reasonable price, in relation to its current fair value. Likewise, it should be expected that the sale would qualify for full recognition within one year from the date of classification, and additionally, the actions required to complete the plan must indicate that there is no probability of significant changes to the plan or that it will be withdrawn.

An extension of the period required to complete the sale to a period greater than one year does not prevent the asset from being maintained in this item, if the delay is caused by events or circumstances beyond the entity's control, and there is sufficient evidence that the entity remains committed to its plan to sell the asset. Consequently, the entity shall be exempt from applying the one-year requirement in the following situations:
a) On the date the entity commits to a plan to sell a long-term asset, there is a reasonable expectation that third parties other than the buyer will impose conditions on the transfer of the asset that will extend the period necessary to complete the sale; and additionally:
i. The actions necessary to respond to those conditions cannot be initiated until after a firm purchase commitment has been obtained, and
ii. A firm purchase commitment is highly probable within one year.
b) The entity obtains a firm purchase commitment and, as a result, the buyer or other third parties have unexpectedly imposed conditions on the transfer of the long-term asset, which will extend the period required to complete the sale, and additionally:
i. Necessary actions have been taken in a timely manner to respond to the imposed conditions, and
ii. A favorable resolution of the factors causing the delay is expected.
c) During the initial one-year period, circumstances arise that were previously considered unlikely and, as a result, the long-term asset previously classified as held for sale has not been sold by the end of that period, and additionally:
i. During the initial one-year period, the entity undertook the necessary actions to respond to the change in circumstances,
ii. The long-term assets are being actively marketed at a reasonable price, given the change in circumstances, and
iii. The criteria established in subsections two and three of this description are met.

Account 1270 02 DISCONTINUED OPERATIONS

Share investments brought from item 126 because they are reclassified as discontinued activities, shall be recorded as follows:

Sub-account 1270 02 0101 Subsidiaries
In separate financial statements (in the case of reclassifications).
The entity shall record such investment at the lower of cost and net fair value of disposal costs.

Sub-account 1270 02 0201 Joint Ventures
They are presented in the consolidated balance sheet at the lower value resulting from applying the equity method and their net fair value of disposal costs.

Sub-account 1270 02 0301 Group of assets for disposal They shall be initially debited for the amount of assets reclassified from other categories to this category, which shall be recognized at the lower of their carrying amount and fair value less costs to sell.

In the case of entities under joint control and associated entities, they are recorded, from their acquisition at the net fair value of disposal costs.

It is initially recorded at the net fair value established for the subsidiary; this 1 01 Liabilities liabilities.

The income or expenses, after taxes, that these investments produce shall be presented separately within the statement of profit or loss.

In the case of assets other than share investments, consider the following:
They shall be initially debited for the amount of assets reclassified from other categories to this category or for the amount of assets acquired exclusively with the intention of selling them, on this same date it must be recognized at the lower of their carrying amount and fair value less costs to sell.

Subsequently, it shall be debited for gains originating from subsequent increases in fair value less costs to sell up to an amount that does not exceed the impairment recognized with the application of the regulations for these assets or with the previous regulation applicable to it, in the latter case, it could be the entity's internal policies or, in the absence thereof, the direct application of IAS 36, crediting the corresponding sub-account.

They shall be credited in the following circumstances:
For impairment losses arising from comparing the carrying amount with its fair value less costs to sell, debiting the accounts of the item (feature When disposed of, debiting the accounts of the item (feature

The entity shall measure the non-current asset that ceases to be classified as held for sale (or that ceases to form part of a group of assets for disposal classified as held for sale) at the lower of:
Its carrying amount before the asset (or group of assets for sale) was classified as held for sale, adjusted for any depreciation, amortization, or revaluation that would have been recognized if the asset (or group of assets for disposal) had not been classified as held for sale; and the recoverable amount on the date of the subsequent decision not to sell it.

Classification 13 PHYSICAL AND INTANGIBLE ASSETS Item 131 NON-DEPRECIABLE PROPERTIES Item 1310 NON-DEPRECIABLE PROPERTIES

The accounts in this item must represent the value of goods that by their nature are not subject to depreciation or because they are not being used temporarily.

Such assets are subject to the recognition of impairment loss whenever the carrying amount of the asset is greater than its recoverable amount.

Item 132 DEPRECIABLE PROPERTIES AND EQUIPMENT
Item
(feature) 1320 DEPRECIABLE

The accounts in this item must represent the value of goods that the entity uses for the development of its business. They must be goods that are subject to loss of value due to use or the action of time.

The entity shall value, upon initial recognition, all items of property and equipment at cost.

With respect to assets included in the accounts of this item and corresponding to assets acquired under operating lease contracts, these shall be recognized at the cost established in accordance with the corresponding technical regulations.

Subsequent to their recognition as an asset, any item of property and equipment, including financial leases incorporated in this item, shall be accounted for at its acquisition cost less accumulated depreciation and any amount of impairment loss.

Item
(feature) 1329 ACCUMULATED DEPRECIATION AND IMPAIRMENT (-) Account 1329 00 ACCUMULATED DEPRECIATION (-) Account 1329 02 ACCUMULATED IMPAIRMENT (-)

This item must represent the value of the depreciation of all depreciable goods; its balance is a credit balance, consequently, it is presented reducing the item to which it belongs.

In the case of renovations carried out on leased goods, they shall be amortized over a period not exceeding that corresponding to the lease contract or the useful life, whichever is shorter.

The account 1329 02 is credited with the amounts of impairment losses established with a debit to the accounts of the item (feature Impairment recording:
2 Impairment
2 Impairment sub-account

The new carrying amount of the asset after the reversal of an impairment loss shall not exceed the carrying amount that could have been obtained (net of depreciation) if no impairment loss had been recognized for the asset in previous periods.

Item 133 INTANGIBLES
Item
(feature) 1330 INTANGIBLES
Accounts 1330 01/1330 02 VOLATILE CRYPTOCURRENCIES/STABLE CRYPTOCURRENCIES

The value of cryptocurrencies other than Inventories shall be recorded when it is owned by the entity or when it proceeds from the execution of a guarantee.

Cryptocurrencies shall be initially recognized at acquisition cost, subsequently measured at their fair value whenever there is an active market. In case of increase or decrease derived from the revaluation of the cryptocurrency, it shall be recognized by debiting or crediting the value of the intangible and affecting the Surplus from Cryptocurrency Revaluation.

Accounts 1330 03/1330 97 FRANCHISES, LICENSES AND CONCESSIONS/OTHERS

The treatment for intangible assets is analogous to that defined for depreciable property and equipment assets.

The balance of the intangible account that presents software programs must be considered to establish the limit of investments in real estate and furniture, established in Article 65 of the Investment Banks Law.

Item
(feature) 1339 ACCUMULATED AMORTIZATION AND IMPAIRMENT (-) Account 1339 01 AMORTIZATION (-) Account 1339 02 ACCUMULATED IMPAIRMENT (-)

This item must represent the value of the amortization of intangible goods; its balance is a credit balance, consequently, it is presented reducing the item to which it belongs.

The account 1339 02 is credited with the amounts of impairment losses established with a debit to the accounts of the item (feature Impairment recording:
39 02 Impairment
3 Intangible Assets
39 02 Impairment sub-account 400 Intangibles

SECTION II

ACCOUNTING APPLICATION MANUAL FOR LIABILITIES
Element 2 LIABILITIES
Classification 21 LIABILITIES
Item 210
FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS (FVTPL)

This item includes all financial liabilities that the entity has the obligation to measure at fair value through profit or loss, as well as those that the entity has opted to designate at fair value through profit or loss.

It should be noted that international regulations establish for financial liabilities designated at fair value through profit or loss the condition of carrying gains or losses corresponding to credit risk to other comprehensive income, unless such treatment implies a accounting asymmetry.

All financial instruments aggregated in this item are characterized by the fact that their valuation will always be at fair value and any financial derivative instrument that ceases to meet the conditions to be maintained as a designated effective accounting hedge item shall be presented within this item.

In all accounts in this item, sub-accounts are included to present the amounts , sub-accounts that are debited when interest on related financial instruments is amortized, with a credit to the corresponding cash accounts or others if required.

Item
(feature) 2100 HELD FOR TRADING
Accounts 2100 01/
2100 03
HELD FOR TRADING OTHER THAN
DERIVATIVES/ DESIGNATED AT FAIR VALUE
THROUGH PROFIT OR LOSS

In these accounts, all financial instruments that have been acquired or issued, the latter in the case that the entity has authorization to be a market maker, shall be recognized, with the intention of trading them in the short term.

They are credited at their fair value on the date they are acquired or issued, in the case that their value is not zero and that value represents an obligation for the entity on that date, with a debit to the expense sub-accounts in which they record changes in the fair value of investment financial assets at fair value through profit or loss, in the case of acquisition; or in the case of the generation of the same.

In the case that the acquisition generates transaction costs, these shall be applied to 5 01 Costs

The accounts in this item shall be debited when the acquired or issued item is cancelled, settled, or extinguished, with a credit to the corresponding income and expense accounts and to the relevant cash accounts.

Account 2100 04 DERIVATIVES FOR ACCOUNTING HEDGE

In this account, financial instruments designated for the hedge of specifically identified risks, which may affect the results of the entity as a consequence of variations in the fair value or cash flow of one or more specific elements, or in a net investment in foreign currency, referred to as hedged items, shall be included.

Sub-accounts
2100 04 01 01 /
2100 04 01 02
Fair Value Hedges - ML / Fair Value Hedges ME

Fair value hedge covers the exposure to change in the fair value of a recognized asset or liability or a firm commitment to buy or sell an asset at a set price, or the exposure of a specific portion of such asset, liability, or firm commitment, which is attributable to a particular risk and which could affect the results of the entity.

In a fair value hedge, the gain or loss that arises from remeasuring the hedging instrument to fair value (in the case of a derivative) or the foreign currency component of a recorded amount (in the case of a non-derivative) is recognized in the period's result. At the same time, the recorded amount of a hedged item is adjusted by the gain or loss attributable to the hedged risk, if applicable, and shall be recognized in the period's result.

Any adjustment made to the hedged items shall be amortized through the result of the fiscal year if the hedged item is a financial instrument (or a component of it) measured at amortized cost.

Amortization shall begin as soon as the hedged item ceases to be adjusted for hedge gains or losses or as soon as there is an adjustment to it.

Amortization shall be based on the effective interest rate, recalculated on the date amortization begins.

However, when it concerns a fair value hedge of interest rate exposure of a portfolio of financial assets or financial liabilities (and only for this form of hedge) and amortization using a recalculated effective interest rate is impracticable, the adjustment shall be amortized using a linear method. In all cases, the adjustments shall be fully amortized by the maturity of the financial instrument or, in the case of a portfolio hedged only for interest rate risk, at the expiration of the interest review period.

This account shall be credited for upward fluctuations in fair value with respect to the initial or previously measured value, debiting the income statement accounts for the difference between the previous measurement and the current fair value to the corresponding subaccount.

02 Changes in the fair value of financial liabilities

This account shall be debited for downward fluctuations in fair value with respect to the corresponding subaccount.

Subaccounts
2100 04 02 01/
2100 04 02 02
Cash Flow Hedges-ML/ Cash Flow Hedges-ME

Cash flow hedging covers the exposure to variation in cash flows that:
a) Is attributable to a particular risk associated with a recognized asset or liability or with an anticipated transaction (future operation but not committed) and b) Could affect the entity's results. The portion of the gain or loss on the hedging instrument, determined as an effective hedge, shall be recognized directly in the equity account of other comprehensive income (characteristic feature) in the corresponding subaccount, while the ineffective portion shall be recognized in 08 Gains on ineffective amounts 01 Loss on ineffective amounts

The accumulated amount in the cash flow hedge reserve shall be accounted for as follows:
a) If an anticipated transaction covered subsequently results in the recognition of a non-financial asset or a non-financial liability, or an anticipated transaction covered for a non-financial asset or non-financial liability becomes a firm commitment for which fair value hedge accounting is applied, the entity shall remove that amount from the cash flow hedge reserve and include it directly in the initial cost or other amount of the asset or liability. b) For cash flow hedges other than those covered by a), this amount shall be reclassified from the cash flow hedge reserve to the period's income as a reclassification adjustment in the same period or periods during which the expected future cash flows covered affect the period's income (for example, in the periods when interest income or interest expense is recognized or when a anticipated sale occurs).

If the hedge reserve is a loss and an entity expects that all or part of it will not be recovered in one or more future periods, the amount not expected to be recovered shall be immediately reclassified to the period's income as a reclassification adjustment.

When an entity discontinues this hedge accounting, it shall account for the amount accumulated in the cash flow hedge reserve as follows:
a) If the expected future covered cash flows are still expected to occur, that amount shall be retained in the cash flow hedge reserve until the future cash flows occur or until the provision of the previous letter c) is applied. When the future cash flows occur, the provision in the previous paragraph shall apply. b) If it is no longer expected that the expected future covered cash flows will occur, that amount shall be immediately reclassified from the cash flow hedge reserve to the period's income as a reclassification adjustment.

This account shall be debited for downward fluctuations in fair value with respect to the initial or previously measured value, crediting the difference between the fair value and that previous measurement, in the accounts:
From the category (characteristic feature) corresponding subaccount, for the effective part and 6310 08 Gains on ineffective amounts

This account shall be credited for upward fluctuations in fair value with respect to the initial or previously measured value, debiting the difference between the previous measurement and the current fair value, in the accounts:
From the category (characteristic feature)
01 Loss on ineffective amounts

This account shall be debited for the following reasons: discontinuation of hedge accounting when the hedge relationship (or a part of a hedge relationship) ceases to meet the required criteria (after taking into account any rebalancing of the hedge relationship, if applicable), this includes when the hedging instrument expires, is sold, resolved, or exercised, with credit to the corresponding accounts.

Category 211 FINANCIAL LIABILITIES AT AMORTIZED COST

The initial recognition of liabilities in this category shall be measured at fair value, less transaction costs directly attributable to the acquisition of the liability.

Category
(characteristic) 2110 CHECKING DEPOSITS

The accounts in this category must represent the value of checking deposits and savings deposits.

This account is initially credited with the monetary amount received with a debit to the corresponding contra accounts.

This account is debited by the depositor's withdrawals with credit to the corresponding liquidity accounts or others if required.

The transaction cost incurred directly to generate the transaction is carried 5 01 transitional character, at the end of each month its balance must be equal to zero. They must be used when for technological or operational reasons it is not possible to apply the corresponding account directly.

Category
(characteristic) 2111 AGREED DEPOSITS UP TO ONE YEAR TERM

The accounts in this category must represent the value of agreed deposits to be returned on a pre-established date, backed by a certificate, receipt, or any other form of contract. The amount of these obligations must be equal to the nominal value of the issued contracts.

Category
(characteristic) 2112 AGREED DEPOSITS FOR MORE THAN ONE YEAR TERM

This category must represent the value of firm deposits (which do not allow partial withdrawals or withdrawals) backed by a receipt or deposit certificate, for terms greater than one year.

Category
(characteristic) 2113 NEGOTIABLE DEPOSIT CERTIFICATES

The accounts in this category must represent the value of agreed deposits to be returned on a pre-established date, backed by a certificate, receipt, or any other form of contract, with the characteristic that they may be negotiable. The amount of these obligations must be equal to the nominal value of the issued certificates.

This account is initially credited with the monetary amount received with a debit to the corresponding contra accounts.

This account is debited by the withdrawals of the certificate holders with credit to the corresponding liquidity accounts or others if required.

Category
(characteristic) 2114 RESTRICTED AND INACTIVE DEPOSITS

This category (characteristic) must represent the value of restricted deposits, given as collateral by their holders in favor of the entity, those seized by judicial action, and those inactive.

The accounts in this category shall be affected by deposits that are reclassified from categories (characteristic) 2110 to 2112. The reclassification shall take place for causes such as pledge of the deposit in favor of the entity, compliance with judicial orders, the deposit is seized or restricted, or since the last time the depositor showed awareness of the existence of the account, a period of time has elapsed that, in accordance with the entity's internal policies, meets the conditions for the information systems to classify it as an inactive deposit, reclassifying it to this category and other similar conditions.

This account is credited with the amount of reclassified deposits with a debit to the accounts of categories 2110 to 2112. This account shall be debited when the conditions that originated the reclassification of the deposit disappear, with credit to the accounts from which they were originally taken or others if required.

Category
(characteristic) 2115 OPERATIONS WITH REPURCHASE AGREEMENT

The accounts in this category (characteristic) shall be increased with the amounts representing the obligations assumed by the entity when acting as the reporting entity in repo operations. The amounts recorded in this account must represent the fair value of the operations on the date of the transaction, according to the rules established in the Commercial Code or those carried out in stock exchanges.

Category
(characteristic) 2116 AGREED LOANS UP TO ONE YEAR TERM

In this category, the obligations contracted by the entity with third parties, domiciled or non-domiciled, whether for business development, increased financing capacity, solvency adequacy, liquidity, or others, shall be recorded.

The obligations shall be initially recognized at their fair value, which will generally be equal to the contractual amount agreed less the transaction costs incurred, and subsequently measured at amortized cost using the effective interest rate method.

Account 2116 01 AMOUNT OWED TO THE BCR

This account must represent the value of obligations with the Central Bank, for loans received according to the concepts indicated in letters a), b), c), and d) of Article 49-A of the Organic Law of the Central Reserve Bank.

Account 2116 02 AMOUNT OWED TO STATE ENTITIES

This account must represent the value of obligations with state entities, which are not part of the Financial System.

Account 2116 03 AMOUNT OWED TO INVESTMENT BANKS

This account must represent the value of obligations with local investment banks, for loans obtained for the business activity.

Furthermore, this account must represent the value of obligations with other investment banks, for loans obtained for the normal development of the bank's activities, as established in Article 41 letter d) of the Investment Banks Law. In no case shall loans referred to in Article 78 of the Law be included in this account.

Account 2116 04 AMOUNT OWED TO BANKS

This account must represent the value of obligations with local banks, for loans obtained for the business activity.

Account 2116 05
AMOUNT OWED TO OTHER ENTITIES OF THE
FINANCIAL SYSTEM

This account must represent the value of obligations with other financial entities, for loans obtained for the business activity.

Account 2116 06 AMOUNT OWED TO FOREIGN ENTITIES

This account must represent the value of obligations contracted with foreign entities, for loans obtained to be placed in active operations.

Account 2116 07 OTHER LOANS

This Account must represent the value of obligations contracted with entities not included in the previous classifications.

Account 2116 08 AMOUNT OWED FOR LEASES

This account shall be increased by crediting it with the amounts representing the liabilities assumed for operational or financial leases entered into.

In initial recognition, this account shall be affected by the present value of leases that have not been paid on the commencement date of the lease.

Subsequently, the lease liability shall be measured as indicated by the corresponding technical standard.

Account 2116 09 LOANS CONVERTIBLE INTO SHARES

This account must represent the obligations contracted with other financial institutions, based on what is established in Article 47 of the Investment Banks Law, which refers to the application of Title IV of the Banks Law.

In these operations, the entity may incur the following obligations:
a) Deliver a cash amount equivalent to the debt amount plus contractual interest, in the event that the holder of the composite instrument does not exercise the option and provided that the entity is regularized, with prior authorization from the Superintendency;

b) Deliver a fixed number of ordinary shares, upon maturity of the composite instrument in exchange for the liability related to the principal, in the event that the holder of the instrument exercises the convertibility option.

The entity's contractual obligation to make future payments shall remain in effect until its extinction by conversion, maturity of the instrument, or some other transaction.

In all cases, an analysis of the transaction must be performed to demonstrate that it meets the conditions of a composite instrument or to rule them out. If the existence of a composite financial instrument is validated, the entity shall proceed in accordance with the applicable legislation and the corresponding technical standard.

On the date of initial recognition, the liability component is credited at its fair value, which is the present value of the future contractual cash flows, discounted at the interest rate the market applies at that time for instruments of similar credit status and that provide substantially the same cash flows, under the same terms, but without the conversion option. The corresponding amount for the component is also credited with a debit to the corresponding liquidity account. In the same initial recognition entry of the liability or in a separate one, the equity component is netted 05 category (characteristic consisting of the initial recognition of the equity component.

Subsequently, it is credited with the amount corresponding to the reversal of the financial effect of the discount that accumulates in the instrument, so that at the end of the contract, the book value reflects the contractual amount, subject to the conversion option.

This account is debited at the end of the debt term with credit to Liquidity accounts, in the event that the lender does not exercise the option and instead requires recovery in

Category
(characteristic)
2117 AGREED LOANS FOR MORE THAN ONE YEAR TERM

The accounts in this category (characteristic) must represent the value of obligations contracted for loans obtained for more than one year term, to be placed in active operations. The denominations of accounts 2117 01 to 2117 07 will be similar to the accounts of category (characteristic) 2116.

Account 2117 08 AMOUNT OWED FOR LEASES

This account shall be increased by crediting it with the amounts representing the liabilities assumed for operational or financial leases entered into.

In initial recognition, this account shall be affected by the present value of leases that have not been paid on the commencement date of the lease.

Subsequently, the lease liability shall be measured as indicated by the corresponding technical standard.

Category
(characteristic)
2118 AGREED LOANS FOR FIVE OR MORE YEARS TERM

The accounts in this category (characteristic) must represent the value of obligations contracted for loans agreed for five or more years term to be placed in active operations.

Account 2118 06 AMOUNT OWED TO FOREIGN ENTITIES

This account must represent the value of obligations contracted with foreign entities, for loans obtained for more than five years term, to be placed in active operations.

Account 2118 07 OTHER LOANS

This account must represent other obligations contracted by the entity with entities not included in the previous classification.

Account 2118 08 AMOUNT OWED FOR LEASES

This account shall be increased by crediting it with the amounts representing the liabilities assumed for financial leases entered into for five or more years term.

In initial recognition, this account shall be affected by the present value of leases that have not been paid on the commencement date of the lease.

Subsequently, the lease liability shall be measured as indicated by the corresponding international accounting standard.

Category
(characteristic)
2119 SUBORDINATED LOANS

Account 2119 01 SUBORDINATED DEBT FOR FIVE OR MORE YEARS

In this category (characteristic), all obligations acquired from counterparties that meet the conditions established by the corresponding legal or regulatory framework, that is, what is established in Article 25 of the Investment Banks Law, shall be recognized.

This account shall be initially credited with the amount of the benefit received less the direct transaction costs incurred for the contracting, with a debit to Liquidity accounts.

Subsequently, they are measured at amortized cost; that is, principal plus accumulated financial interest less payments made (capital and interest according to legal quotas).

Category 212 OWN ISSUANCE SECURITIES

Category
(characteristic)
2120 OWN ISSUANCE SECURITIES

This category (characteristic) must represent the value of obligations issued by the entity, with the objective of capturing resources for financial intermediation.

The balance of the category (characteristic) shall be integrated into the following accounts:

Account 2120 01 AGREED UP TO ONE YEAR TERM
Account 2120 02 TOKENIZED SECURITIES UP TO ONE YEAR TERM Account 2120 03 AGREED FOR MORE THAN ONE YEAR AND LESS THAN FIVE YEARS TERM Account 2120 04 AGREED FOR FIVE OR MORE YEARS TERM Account 2120 05 TOKENIZED SECURITIES FOR MORE THAN ONE YEAR TERM

These accounts are initially credited at their fair value, which is equal to the amount of the debt issued and placed less the direct transaction costs incurred in the issuance thereof.

Subsequently, they are measured in accordance with the corresponding technical regulations.

Category 213 DEMAND LIABILITIES

Category
(characteristic)
2130 DEMAND LIABILITIES

Account 2130 01 OWN CHECKS

This account represents the obligations contracted by the entity in the concept of cashier's checks or certified checks issued or others with similar characteristics, for

loan disbursements, for funds reserves required by third parties (the account holders) or for requests made by clients.

This account shall be credited when the checks are issued with a debit to Liquidity, deposit, or credit accounts, whichever applies. The liability to be recognized shall be equal to the amount ordered by the client or established by the entity, the latter concerning the amounts of loan disbursements. On this same date, if applicable, income shall be affected by the amount of 04 Other service commissions

This account shall be debited by the cancellation of the operations that originated the provision with credit to Liquidity, deposit, or other accounts, whichever applies.

Account 2130 02 CREDIT CARD LIABILITIES

This account must represent the values that the entity owes to establishments affiliated with the credit card system.

Account 2130 03 COLLECTIONS ON BEHALF OF OTHERS

In this account, all amounts corresponding to collections made by the entity on behalf of third parties shall be recorded with a credit. This account shall be debited on the date the entity reimburses the amounts corresponding to their holders.

In the event that this operation generates commissions, they shall be recognized in subaccount 09

Account 2130 04 CORRESPONDENT RELATIONSHIPS

In this account, all amounts corresponding to sales of traveler's checks (checks that the banking entity has received on consignment) made to third-party users and on behalf of other entities (the issuers of such instruments and which they cede to the banking entity on consignment) shall be recorded.

This account shall be debited on the date the entity reimburses the amounts corresponding to the holder entities. In the event that this operation generates commissions, they shall be recognized in subaccount 04 10

Account 2130 05 FUND TRANSFERS

This account represents the obligations incurred by the entity with third parties to transfer resources to beneficiaries designated by the client; as well as for funds received to be transferred. It is debited when the obligation is settled with a credit to Cash or other accounts as required. In the event that this operation generates commissions, they shall be recognized in sub 04 11.

Account 2130 06 CHECKS AND OTHER VALUES TO BE APPLIED Subaccount 2130 06 0000 Clearing House This subaccount is credited with checks received for collection and debited until compensation has been effected for the following concepts:
a) To apply to the corresponding operations; b) For the returns to the drawers of rejected checks.
The entity must maintain a record that identifies at all times the checks that form the balance of this account and the deposit or active operation to which it was applied.

Subaccount
2130 06 0001/
2130 06 0002
Documents Remitted to Foreign Banks ML/
Documents Remitted to Foreign Banks ME
This Subaccount is credited with documents received for collection, in the process of confirmation by foreign banks, and debited until a response has been received from the foreign bank, for the following concepts:
a) To apply to the corresponding operations; and b) For the return of documents to whom it may concern.

Classification 22 OTHER LIABILITIES
Item 221 BALANCES BETWEEN COMPANIES
Item
(characteristic) 2210 BALANCES BETWEEN COMPANIES Account 2210 00 BALANCES BETWEEN COMPANIES This item aggregates amounts owed between group entities (intragroup operations), which are generally part of the generation of synergy within the group, factors that facilitate or reduce operational costs by acting reciprocally in the receipt and settlement of transactions that are part of their daily activity and are pending settlement. It is credited for amounts in favor of other intra-group entities and on which there is an obligation to settle them gross or net in case there are offsettable accounts in item 21 and for which there is an agreement for net settlement. It is debited when the assumed obligations are settled with a credit to cash accounts. This item must represent pending settlement balances between the different branches, subsidiaries, and affiliates of the entity, both national and foreign, or foreign banks; due to their transient nature, balances with national branches at the end of each month must be equal to zero.

Item 222 ACCOUNTS PAYABLE
Item
(characteristic) 2220 ACCOUNTS PAYABLE
The accounts in this item must represent the obligations for the concepts described by each of the accounts and subaccounts.

Account 2220 02 DIVIDENDS AND PARTICIPATIONS
This account must represent the dividends agreed upon in favor of shareholders and the participation of employees in profits. Dividends and participations must be recorded on the date their distribution is approved by the General Meeting of Shareholders. It will be debited when the amounts are settled to shareholders with a credit to the accounts used for amortization.

Account 2220 04 COMMISSIONS
This account will be initially credited with the amount of commissions incurred for the negotiation of transactions that have implied the recognition of economic consideration to receive the contracted service, with a debit to the corresponding accounts of the items (characteristic) requirement of the transaction performed. It is debited when the obligation is settled with a credit to the corresponding asset accounts.

Subaccounts 2220 04 05 01/
2220 04 05 02
For acquiring-ML/
For acquiring-ME

These subaccounts are credited for the amount of promissory notes (vouchers) received by the acquiring entity and that have been remitted by affiliated businesses in concept of sales made with credit cards. It is debited for the amount of the promissory notes when the acquiring entity remits payment to the affiliated businesses net of acquiring commissions, which will be recorded in the 6210 04 05

Subaccounts 2220 04 06 01/
2220 04 06 02
For interchange-ML/
For interchange-ME
These subaccounts are credited with the amounts (vouchers) that the acquiring entity (which is at the same time the same entity issuing the card) has received from the affiliated business with a debit to the corresponding credit accounts. The account is debited when the entity remits payment to the affiliated business net of the acquiring commission, which is credited 04 05 When the acquiring entity and the issuing entity are different, this subaccount is credited for the amounts of the promissory notes (vouchers) that the issuing entity has received from the acquiring entity in concept of purchases by its cardholders with a debit to the corresponding credit accounts. It is debited when the issuer remits payment to the acquiring business net of the commission 04 0600 Commissions of

Account 2220 05 ASSET MANAGEMENT
This account will be increased by crediting it with amounts recovered on behalf of third parties and that represent obligations to reimburse clients whose assets are under the administration of the entity. It is debited when the entity reimburses the amounts owed with a credit to cash or deposit accounts, whichever corresponds according to the method used for settlement. Generally, settlements will be applied net of the commissions generated by the administration of such assets, if so established in the administration contract.

Account 2220 06 ADVANCES FOR HOUSING RESERVATION This account will be affected by the amounts corresponding to advances that the entity has received in concept of housing reservations on projects financed by the same entity.

Account 2220 11 PURCHASES OF FINANCIAL INSTRUMENTS In this account, pending balances to be paid for the purchase of investment financial instruments on the negotiation date are recorded with a debit to the accounts Its balance will be debited on the settlement date with a credit to the accounts of item 11

Subaccount 2220 99 0201 Fiscal Debt - VAT
This account will be increased by crediting it for amounts charged in concept of VAT in transactions for the provision of services or sale of goods subject to the application 0 99 0301 Fiscal Credit-VAT subsubaccount of VAT payable. In the event that credits are greater than fiscal debts, the difference will be transferred to the subsubaccount of subaccount 1250 99 0301 Fiscal Credit-VAT

Item
(characteristic)
2221 TAXES
Account 2221 01 CURRENT INCOME TAX
The current tax corresponding to the present period and previous periods must be recognized as a payment obligation to the extent that it has not been settled.
Its operation is as follows:

Subaccount 2221 01 Payment on account
It is credited, initially, for the obligation of payment on account, with a debit to the subaccount 01 corresponding tax authorities.

Subaccount 2221 01 02 01 Tax on earnings of the exercise It is credited, initially and subsequently, at the end of each monthly period, for the amount of tax calculated based on the expenses and income of each monthly closing with a debit to the subaccount 01 account constituted throughout the accounting year is reversed with a debit at the end of the accounting period, crediting the subaccount 01 0100 Tax on profit

fiscal totals at the end of the period starting from zero.

At the end of the accounting period, it is credited for the definitive amount established in concept of tax on earnings (the amount recognized in this account is the computed applying the tax rate on fiscal earnings) with a debit to 01 This account is subsequently debited with a credit to subaccounts 01 0101 Payment 01 . The remaining credit balance from this netting will represent the tax on earnings pending payment, which will be settled with a credit to Cash accounts or another corresponding account. In the event that the remaining balance after netting is 01 0301 Remainder of

Account 2221 02 DEFERRED INCOME TAX
It will be credited, initially, for the amount of deferred taxes computed, applying the prevailing tax rates, on the taxable temporary differences that at the date they are constituted increase fiscal expenses, consequently reducing the tax to be paid; and whose future reversal will increase fiscal income consequently increasing, the taxes to be paid, with a debit to the subaccount 02 It will be debited in the following cases:
a) When the taxable temporary differences constituted in 05 b) In subsequent reviews, generally at the closing of the accounting year, when the administration makes the corresponding adjustments based on the temporary differences registered in previous periods and those established in the current period, if the result implies a downward adjustment. It must be noted that on some occasions deferred tax assets or deferred tax liabilities for temporary differences will affect equity accounts instead of income statement accounts; in such case, the equity account will be registered net of the corresponding asset or liability for tax; example: revaluations of property, plant and equipment, fluctuations in value of financial assets with changes in other comprehensive income, exchange differences established in the consolidation of businesses abroad, etc. Such deferred tax asset or liability

will be reversed gradually as the asset or liability that affected equity is realized or removed from the balance sheet.
The criteria that gave rise to the recording of these assets must be evaluated at least at each annual closing date.

Item 223 WITHHOLDINGS AND EMPLOYER CONTRIBUTIONS Item (characteristic) 2230 WITHHOLDINGS AND EMPLOYER CONTRIBUTIONS Account 2230 00 WITHHOLDINGS The accounts in this item must represent the value of withholdings made to the institution's personnel and third parties, for the different concepts described in the account and subaccount. This account is increased by crediting it with the amounts corresponding to all withholdings by Law or other cause that the entity has made in the tax period. It is debited when the obligations are settled to the corresponding holders.

Account 2230 02 EMPLOYER CONTRIBUTIONS
Represents the liability assumed by the entity in concept of statutory contributions that it must provide and that at the end of the monthly period are provisioned to be 02

Item 224 OTHER LIABILITIES
In this item, items with a variety of elements are included, which, independently, are generally not so relevant or if they are, it is not considered necessary to open a grouping just for them.

Item
(characteristic)
2240 PROVISIONS
The accounts in this item (characteristic) represent obligations registered by the entity in concept of future obligations; which are based on legal regulations, in the entity's internal policies or in specific requirements made by the corresponding technical accounting standard.

Account 2240 01 LABOR PROVISIONS
This account must represent the value of the different labor obligations, assumed by some or all of the following concepts: Estimation of indemnification

for dismissal, voluntary retirements, other benefits related to the termination of the employment relationship, etc., which, or are contemplated in the legal framework governing labor obligations or are an implicit assumption due to the entity's historical behavior with respect to them. It will be credited for the estimated amount of the assumed obligation with a debit to the account It will be debited when the provision is applied, by its payment, with a credit to Cash accounts, or by its recognition in accounts payable.

Account 2240 02 PROVISIONS FOR CONTINGENCIES
This account will represent the loss estimates for contingencies, according to the best estimate applied by the entity, in relation to, among others, lawsuits filed against the entity and for whose negative resolution, the entity considers probable (it is more likely to occur than not) an outflow of economic resources. It is credited for the estimate made with a debit to the subaccounts of the item (characteristic It will be debited when the provision is applied, by its payment, with a credit to Cash accounts, or by its recognition in accounts payable.

Account 2240 03 ONEROUS CONTRACTS
An onerous contract is one in which the inevitable costs of fulfilling the committed obligations are greater than the benefits expected to be received from it.
If the entity has an onerous contract, the final debt that derives from it must be recognized and measured as a provision.
02 Provisions for in case they are different.

Account 2240 04 RESTRUCTURING COSTS
Restructuring is a program of action, planned and controlled by the entity's administration, whose effect is a significant change in the scope of the

activity carried out by the entity; or the manner in which such activity is carried out.
02 Provisions for

Account 2240 05
OBLIGATIONS BY FINANCIAL GUARANTEE CONTRACTS
A financial guarantee contract is one that requires its issuer to make specified payments or reimbursements to its holder for a loss incurred due to non-compliance, by a specified debtor, of mandatory payments according to the original or modified terms of a debt instrument. The accounting for these contracts does not depend on their legal form. Financial guarantee contracts granted by the entity will be registered in this item. A contract of this nature is credited, initially, for the fair value of the instrument, which will generally be the amount of the commission or premium received by the issuer with a debit to Cash accounts or accounts receivable. Also, it is credited for the recognized increase in the obligation according to the evaluation performed with a debit to the subaccounts of account 7112 02 Constitution of loss estimates for guarantees, bonds, and others as appropriate. These obligations are debited for the accrual of the commission received for the guarantee contract, which will be recognized on a straight-line basis over the validity of the contract, with a credit to subaccount 03 Guarantees and It is debited in the event that the entity honors the contract to the beneficiary of this, with a credit to Cash. On this same date, the entity constitutes a loan overdue with a credit to the subaccounts of the item (characteristic established in the corresponding regulatory framework.

Account 2240 06 COMMITMENTS TO GRANT LOANS
The balance of this account represents commitments to grant loans at an interest rate lower than the market rate.
It will be initially recognized at its fair value plus transaction costs that are directly attributable to the generation of the liability.

Its subsequent valuation will be in accordance with the applicable technical accounting regulations.

Account 2240 07
CONTINGENT CONSIDERATION ORIGINATED BY
BUSINESS COMBINATIONS
The balance of this account represents an obligation of the acquiring entity to transfer additional assets or equity interests to the previous owners of a acquired as part of an exchange for control of it if certain future events occur or certain conditions are met. Its initial and subsequent recognition will be applied by the entity in accordance with the applicable technical accounting regulations.

Account 2240 08 LOYALTY PROGRAMS
This account will be affected by the fair value of the points for loyalty programs, which the entity grants to its clients, with a debit to the subaccount of the item (characteristic) It is debited when the client redeems the loyalty points against the corresponding account.

Account 2240 09 DEMOLITION COSTS
This account will be affected by the registration of estimated costs that originate in rented buildings, with a debit to the subaccount of the item (characteristic

Account 2240 99 OTHER PROVISIONS
This account will be affected by any other provision that meets the conditions for its recognition and that is not one of those cited above.

Item
(characteristic)
2241 LIABILITIES ASSOCIATED WITH ASSETS
The liabilities recognized in this item will be those associated with a group of long-term assets that have been disposed of for sale, so their measurement will be determined by their fair value. The liabilities classified in this item will be those resulting from applying the criteria defined in the item

Account 2241 01 LIABILITIES ASSOCIATED WITH ASSETS HELD FOR SALE It is credited, initially, for the fair value of the liabilities associated with the set of long-term assets held for sale. It is debited when the long-term assets to which they are associated are sold with a debit to cash and cash equivalents accounts or others if applicable. It is also credited if the liability accrues interest with a debit to the corresponding expense accounts.

Account 2241 02 LIABILITIES ASSOCIATED WITH CONTINUED FINANCIAL ASSETS This account represents the liabilities assumed by the entity in the transfer of financial assets in which the entity maintains a continued relationship with them, based on accounting policies derived from the corresponding technical standard.

Item
(characteristic)
2242
SHARE-BASED PAYMENTS
Account 2242 01 SHARE-BASED PAYMENTS
Share plans and share option plans are a common feature of the remuneration of key employees of an entity.
Share-based payment transactions, when agreed between the entity and its counterparties, must be limited to those transactions whose agreements are settled in cash. The fair value of these transactions will be established at each balance sheet date, as established by the corresponding technical accounting standard. This account will be credited for the fair value of the liability assumed, at the moment when the good or service is received (not when the contract is signed), with a debit to the account corresponding asset, for the asset or service received. 07 Payments officials or employees or another expense account, whichever corresponds, in case that it is a service received from third parties.

It will be credited at each balance sheet date, until its settlement, for the increase in the fair value of the assumed liability, applying the same process cited above.
It is debited on the date of exercise or cancellation of the option with a credit to the corresponding Cash account.

Item 225 DEFERRED LIABILITIES
Item
(characteristic) 2250 DEFERRED LIABILITIES
The accounts in this item present operations that in the future will allow the recognition of income; operations that have already generated an income, but the recognition of the same has been deferred because it was generated on an operation financed by the same entity. Interest that has been capitalized, reactivated, or paid with credits granted by the same entity.

Account 2250 04 UNACCRUED RECEIVED INCOME
This account must represent the value of received income that has not yet been accrued. Its amortization must be done as accrual occurs.
All provisions or cash collections made in concept of commissions for the granting, administration, or other income different from interest, related to loans, are recorded in this account, which are taken to results by applying the established regulatory framework; the accrued amounts are credited to the And any other concepts that on the date they are received do not meet the condition of an income. The account must be segregated into short, medium, and long-term loans. Short-term loans are considered up to one year; medium-term, more than one year and up to five years; and long-term, more than five years. If the sale of an asset is with financing and its value is greater than the gross book value of the asset, the difference must be registered in this account. commissions for deferred income, which will be recognized as accrued as the entity honors the loyalty points.

Account 2250 05 SUBVENTIONS

Alameda Juan Pablo II, between 15 and 17 North Avenue, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-08/2025
NCF-12
ACCOUNTING MANUAL FOR INVESTMENT BANKS Approval: 30/09/2025 Validity: 15/10/2025 Transfers of resources, subject to the fulfillment of future or past conditions imposed by the grantor of the subsidy, must be recorded in this account. For applications made in this account, the respective international accounting regulations must be consulted.

SECTION III
ACCOUNTING APPLICATIONS MANUAL FOR EQUITY

Element 3 EQUITY
Classification 31 EQUITY

This classification will recognize all items that meet the definition of equity, which is established as the residual interest in the assets of the entity after deducting all its liabilities. Equity can be subdivided, among others, into funds contributed by shareholders (in a corporation), undistributed earnings, specific reserves from earnings, and reserves for capital maintenance adjustments.

Item 311 SOCIAL CAPITAL
Item
(characteristic) 3110 SUBSCRIBED SOCIAL CAPITAL

This item (characteristic) records the total number of shares subscribed for the establishment of the social capital with which the entity is founded.
It is credited for the subscribed capital and for successive increases, with a debit to the corresponding Availability accounts in the case of cash contributions or to the [missing text] based on calls for payment by the competent authority.

Account 3110 01 SUBSCRIBED CAPITAL
This account represents the paid subscribed shares. It is credited with the subscription of shares.

Account 3110 02 UNPAID SUBSCRIBED CAPITAL
This account will initially be debited for the amounts corresponding to the subscription of unpaid social capital and subsequently credited for the amortized calls that are made based on the entity's constitution statutes or other applicable legal provisions, and it is also credited with the payments thereof.

Item 312 CAPITAL RESERVES
Item
(characteristic) 3120 CAPITAL RESERVES

Account 3120 01 RESERVES
This item must represent the value of capital reserves, according to the corresponding classification, and have been allocated to reserves in compliance with legal, statutory, or other provisions, as well as by the will of the shareholders. Regarding sub-account 3120 01 0100 Legal Reserve, its accounting must be performed at the end of the fiscal year. Capital reserves originate as an appropriation of the year's profits, and their constitution has a specific purpose, by legal mandate, by policies, or by the entity's internal statutes. They are credited for the amount designated annually as the specific reserve with a debit to accounts in item 3 [missing text].

Sub-account 3120 01 97 00 Other capital reserves In this account, other reserves constituted by the entity or originating from events other than those contributing to the formation of capital reserves will be credited. Such as reserves constituted by premiums on shares.

Item 313 RESULTS TO BE APPLIED
Item
(characteristic) 3130 RESULTS TO BE APPLIED

Account 3130 01 RESULTS OF PREVIOUS YEARS
Account 3130 02 CURRENT YEAR RESULTS

This item must represent the accumulated results generated in previous years, and the net result of the current year that have not been distributed or applied to another purpose. If there is an accumulated surplus balance and losses are recorded in another year or vice versa, they must be presented separately, without any compensation, unless the institution's shareholders decide to absorb the losses with the accumulated profits. These accounts are credited (debited) with the amounts representing the profits (losses) generated in previous periods or in the current year, for which the Administration has not yet made decisions regarding their final destination. They are credited (debited) with the net results obtained at the end of each accounting period with a debit (credit) to the results accounts, on the date these accounts are settled.

Item 314 SHARE PREMIUMS
Item
(characteristic) 3140 SHARE PREMIUMS

Account 3140 01 SHARE PREMIUMS
In this account, amounts received or delivered in excess of fair value in the sale or purchase, issuance, or cancellation of the entity's own shares are recognized.
It is credited for amounts received in excess of fair value for the sale or issuance of the entity's own shares with a debit to the relevant availability accounts.
It is debited for amounts delivered in excess of fair value for the purchase or cancellation of the entity's own shares with a credit to the relevant availability accounts.

Classification 32 RESTRICTED EQUITY

Item 321 UNDISTRIBUTABLE PROFITS
Item
(characteristic) 3210 UNDISTRIBUTABLE PROFITS

This item (characteristic) consists of items subject to some kind of restriction.

Account 3210 01 UNRECEIVED ACCRUED INCOME
This account must represent the value of profits from non-accrued income, as established in Article 29 of the Investment Banks Law; consequently, this balance must be equal to the accrued and unreceived income. The balance of this account can be constituted with profits from the last fiscal year or from previous years, if necessary. This account is credited for the amounts corresponding to financial products receivable at the end of the accounting period that have affected the results but have not yet been recovered in cash, gains from asset sales made with financing, and any other gain that has been accrued throughout the current period or in previous periods but that at the date of the financial statements [missing text] are not considered realized, meaning they have not been recovered in cash by that date, with a debit to the accounts in item 3 [missing text]. It is debited to the extent that the accrued income from the previous period is recovered in cash, throughout the accounting period or at the end thereof, in the latter case, settling the amounts transferred to this account at the end of the previous period and constituting the new amounts for the pending balances at the end of the closing fiscal year.

Account 3210 02 COUNTRY RISK RESERVES
In this account, provisions must be recorded for country risk, according to provisions issued by the Central Bank through its Standards Committee, and voluntary ones when the corresponding risk is not identified. It is credited with the amounts reclassified from item 3 Results by resources maintained or committed in some foreign country, due to eventual impediments to obtaining their recovery derived from adverse effects in the economic, social, political environment, or by natural disasters occurring in the country where the source generating the counterparty's fund flows is located; and which, according to the country's risk classification, are subject to the constitution of restrictive reserves whose purpose is to maintain appropriate solvency levels capable of supporting any financial risk in the cited investments.

Account 3210 03 EXTRAORDINARY ASSETS RESERVES
In this account, reserves constituted for extraordinary assets must be represented, as established in the respective legal frameworks.
This account will receive the amounts corresponding to the restriction of results to be applied in the concept of holding extraordinary assets. This restriction is carried out based on the legal provision requiring the recognition of these assets as a loss of one hundred percent of their value over their holding period in books, considering the maximum term indicated by the relevant legal framework. At the date of its constitution, it is done with a debit to the results to be applied recorded in item 3 [missing text]. Reserves are released when the entity transfers the asset or is authorized by the Superintendency to retain it.

Account 3210 04 RECOVERIES OF WRITT-OFF ASSETS

This account must represent the value of assets obtained in the concept of recoveries of assets that were written off in past fiscal years.
It is debited when the written-off assets that gave rise to it are realized (sold) with a credit to the results to be applied.
In this account, reclassifications of results to be applied to this account are recognized, in the concept of income recognized for recoveries of extraordinary assets in kind. It will be released when the asset is sold for cash or when the asset deteriorates by the amounts exceeding its fair value.

Account 3210 05 CAPITAL COMPONENTS ON CONVERTIBLE DEBT The amounts recognized in this account originate from the separation of the equity component of the instrument that incorporates a financial instrument of debt and another of equity conversion option. The equity component is determined by the difference between the total value of the convertible instrument and the amount determined as the fair value of the liability component. It is credited for the amount determined as the net equity component after taxes with a debit to the relevant availability accounts.

Account 3210 97 OTHERS
In this account, details of items that pass through other comprehensive income but are not within the detailed items can be added, and consequently, the incorporation of new concepts is required, which can be disaggregated at the sub-account level.

Item 322 DONATIONS
Item (characteristic) 3220 DONATIONS

In this item (characteristic), amounts received by the entity in the concept of donation are recognized. It is credited on the date the entity acquires control over the item received in the concept of donation, recording it at its fair value with a debit to the corresponding asset items. The value of these, when referring to goods, must be determined by an independent expert of the institution and those registered in the Register of Appraisers. The entry for this account will be preceded by the recording of the corresponding asset.

Item 323 OTHER COMPREHENSIVE INCOME
Item (characteristic) 3230 OTHER COMPREHENSIVE INCOME OF PREVIOUS YEARS

This item (characteristic) will receive with credit or debit, depending on the nature of the movement or item at the time of recognition, all those amounts that represent gains or losses on items whose valuation requires that gains or losses on them be recognized within equity. It will include the accumulated amounts, net of the tax effect, of adjustments made to assets and liabilities whose value changes are recorded, according to the standards of this title, in other comprehensive income. The balance of the item will present the amounts accumulated at the end of the fiscal year from previous years and reclassified from the item (characteristic [missing text]) whether elements that will not be reclassified to results or elements that will be reclassified to results. Consequently, these amounts will be accumulated from the current fiscal year and previous years while the items that gave rise to them remain within the balance sheet.

Account 3230 01 ELEMENTS THAT WILL NOT BE RECLASSIFIED TO RESULTS

In this account, the amounts accumulated at the end of the fiscal year throughout the same will be recorded; its balance includes the accumulated amounts from the current year and previous years while the items that gave rise to them remain within the balance sheet and that, in accordance with the financial information standard, are not considered reclassification adjustments.

Sub-account 3230 01 Revaluation Surplus
This sub-account will be increased by crediting it with the amounts of value revaluations performed on the entity's real estate assets or other types of assets subject to value revaluation. It will be debited when the established revaluation amounts are negative (amounts lower than those established previously) with a credit to the value of the affected asset (or to the asset value correction account, if applicable). On this same date, the value of the tax established in this account will be corrected.

Sub-account 3230 01 02 01 Fair Value Changes FVRCR attributable to changes in credit risk

This will include accumulated losses and gains recognized in other comprehensive income as a consequence of the credit risk inherent in liabilities measured at fair value with changes in results, provided that doing so does not imply the origin or expansion of an accounting asymmetry, a condition that, if considered as the cause for bringing the gains or losses on the mentioned risk to the period's results, must be documented.

Sub-account 3230 01 03 01 Fair Value Changes of the Term of an Option of a Covered Item Related to a Transaction

This sub-account will be affected when the covered item gives rise to the recognition of a non-financial asset or non-financial liability or a firm commitment for a non-financial asset or a non-financial liability for which fair value hedge accounting is applied, and in which the time value component has not been included as part of the hedging item.

Sub-account 3230 01 04 01 Fair Value Changes of the Term Element of Forward Contracts of a Covered Item Related to a Transaction

This sub-account will be affected when the covered item gives rise to the recognition of a non-financial asset or non-financial liability or a firm commitment for a non-financial asset or a non-financial liability for which fair value hedge accounting is applied, and in which the term element has not been included as part of the hedging item.

Sub-account 3230 01 05 01 Actuarial Gain (Loss) on Post-Employment Benefits

This will include actuarial losses and gains recognized in other comprehensive income as a consequence of new measurements or updates of the defined net benefits recognized in other comprehensive income. These new updates of the aforementioned post-employment benefits granted to employees cannot be reclassified to period results in subsequent fiscal years.

Account 3230 02 ELEMENTS THAT WILL BE RECLASSIFIED TO RESULTS

Sub-account 3230 02 01 01 Foreign Business Conversion Differences

This sub-account is credited or debited with gains or losses originating from the conversion of foreign businesses (that operate in a currency different from the reporting entity's business currency) when converting the assets and liabilities of that business to the reporting entity's business currency (the parent). The gains or losses from conversion differences recognized in this account will be reclassified to the period's result when the disposal of the foreign business is carried out. When there is a designation of a net investment hedge, the following will apply in this account:
a) The part of the gain or loss in the hedging instrument that is considered to be an effective hedge will be recognized in this sub-account; and b) The ineffective part will be recognized in the period's result. The accumulated gain or loss of the hedging instrument related to the effective part of the hedge that has been accumulated in this sub-account will be reclassified from equity to the period's result as a reclassification adjustment at the time of the disposal or partial disposal of the foreign business.

Sub-account 3230 02 02 01 Cryptocurrency Revaluation Surplus

This sub-account is credited or debited with gains or losses originating from the revaluation of cryptocurrencies.
The gains or losses from the withdrawal of cryptocurrencies will be reclassified to the period's result when the sale or disposal of the cryptocurrency is carried out.

Sub-account 3230 02 03 01 Cash Flow Hedge Reserve

This sub-account will be affected with credits or debits as appropriate, for changes in the fair value of items designated as accounting hedges in a cash flow hedge. The applications made to this item must be net of taxes. The accumulated amount in this sub-account will be affected as follows:
a) If a subsequent covered planned transaction gives rise to the recognition of a non-financial asset or a non-financial liability, or a planned covered transaction for a non-financial asset or a non-financial liability becomes a firm commitment for which fair value hedge accounting is applied, the entity will eliminate that amount from the cash flow hedge reserve and include it directly in the initial cost or other amount of the asset or liability. b) For cash flow hedges other than those covered by a), this amount will be reclassified from the cash flow hedge reserve to the period's result as a reclassification adjustment, in the same period or periods during which the expected future cash flows covered affect the period's result (for example, in the periods when interest income or interest expense is recognized or when a planned sale takes place). However, if that amount is a loss and an entity expects that all or part of it will not be recovered in one or more future periods, the amount not expected to be recovered will be immediately reclassified to the period's result as a reclassification adjustment. In the case of cash flow hedges, the portion of the gain or loss in the hedging instrument, which derives from the change in the fair value of the hedged item, and which is determined as an effective hedge, is what will be recognized in this account. The ineffective portion in the hedging instrument will be recognized in the [missing text] according to the nature of the change in the fair value of the hedged item (for this type of hedges, when the change in fair value of the hedged item exceeds that of the hedging item, no ineffective amounts are established, 100% of the change in fair value of the hedging item is recognized in this account).

Sub-account 3230 02 04 01 Fair Value Changes of Debt Instruments at FV with OCI Changes

This will collect the changes in fair value of financial instruments measured at FVOCI.

Sub-account 3230 02 05 01 Fair Value Changes of the Term of an Option of a Covered Item Related to a Transaction

The amounts will be reclassified to the period's income when the hedged item does not result in the recognition of a financial asset or non-financial liability, nor in a firm commitment for a non-financial asset or non-financial liability for which fair value hedge accounting is applied. Such reclassification is considered a reclassification adjustment in the same period or periods during which the expected future covered cash flows affect the period's income (for example, when a planned sale takes place).

Subaccount 3230 02 06 01 Changes in the FV of the TV of an option of a hedged item related to a time period In this subaccount, changes in the fair value of the time value of an option that covers a hedged item related to a time period will be accumulated, and if this change relates to the hedged item, this amount will be amortized systematically and rationally over the period during which the hedge adjustment for the option's intrinsic value could affect the period's income.

Subaccount 3230 02 07 01 Changes in the FV of the ETCTPC related to a transaction This subaccount will be affected when the hedged item results in the recognition of a non-financial asset or non-financial liability or a firm commitment for a non-financial asset or non-financial liability for which fair value hedge accounting is applied.

Subaccount 3230 02 08 01 Changes in the FV of the ETCTPC related to a time period In this subaccount, changes in the fair value of the time value of an option that covers a hedged item related to a time period will be accumulated, and if this change relates to the hedged item, this amount will be amortized systematically and rationally over the period during which the hedge adjustment for the option's intrinsic value could affect the period's income.

Subaccount 3230 02 09 01 Expected credit losses financial instruments FVOCI This subaccount will be affected by the applications of the estimation that, in accordance with IFRS, must be calculated for financial instruments at fair value with changes in other comprehensive income; its balance will decrease by reclassifications to the income accounts that correspond.

Item
(characteristic) 3231
OTHER COMPREHENSIVE INCOME OF THE CURRENT
YEAR
This item (characteristic) will record amounts representing gains or losses on items whose valuation requires that gains or losses on them be recognized within equity in other comprehensive income.

The accounts and subaccounts that make up this item (characteristic) will have a denomination similar to those that make up the item (characteristic

SECTION IV
ACCOUNTING APPLICATION MANUAL FOR CONTINGENCIES Element 4 CONTINGENT RIGHTS Classification 41 FINANCIAL GUARANTEES GRANTED At the date of constitution or opening of these contracts, their fair values must be recognized in the balance sheet, which are usually, at inception unless evidence to the contrary exists, the amount of commissions generated by the issuance. Furthermore, as the liability assumed by the guarantor increases, the entity must affect the 04 0400 Item 411 LETTERS OF CREDIT Item (characteristic) 4110 LETTERS OF CREDIT This item must represent the value of rights for letters of credit issued by the entity, on behalf of its clients, and those issued by other financial entities in favor of the entity on behalf of local exporters.

The accounts in this item record the nominal amounts of confirmed letters of credit (export letters of credit) as well as those issued (import letters of credit).

Account 4110 01
UNNEGOTIATED IMPORT LETTERS OF CREDIT
In this account, the nominal amounts for which the entity has issued letters of credit, promises to pay third parties for the purchase of goods made by the entity's client (the applicant for the opening of the letter of credit), are recognized.

Account 4110 03 EXPORT LETTERS OF CREDIT
In this account, the amounts of letters of credit issued by the entity from abroad and which the entity has informed and confirmed to the local exporter are recognized. It is debited for the amounts of the informed and confirmed letter(s).

Item 412 GUARANTEES AND BONDS
Item
(characteristic) 4120 GUARANTEES AND BONDS
The accounts in this item must represent potential rights, for the granting of guarantees, bonds, or securities in favor of third parties and at the request of clients.

Bonds in favor of any person may be removed from accounting when:
a) The beneficiary party has issued the corresponding settlement, a situation that must be demonstrated reliably by the entity. b) The Intermediary has obtained written confirmation from the beneficiary and the original contract with a seal or other mark, indicating the release of liabilities for the entity; c) In the case of bid bonds or guarantees, the entity demanding the products or services has communicated the corresponding award, which must be convincingly demonstrated by the entity; and d) Three years of prescription established in Article 1550 of the Commercial Code have elapsed, and additionally, the entity's legal representative must issue a sworn declaration in a notarial instrument, stating that the bond contracts have not been extended, as well as present a certificate issued by the corresponding court, stating that no judicial action has been filed against the entity in the last three months, derived from the respective contract.

Item 413 OPERATIONS WITH FINANCIAL DERIVATIVE INSTRUMENTS In the accounts of this item, the nominal or notional amounts of

contracts for financial derivative instruments purchased (acquired) or issued by the entity will be recorded.

Item
(characteristic)
4130 OPERATIONS WITH FINANCIAL DERIVATIVE INSTRUMENTS

Account 4130 01 PURCHASED (ACQUIRED) DERIVATIVE CONTRACTS This account records with debit the notional (nominal) amounts of contracts related to financial derivative instruments that the entity has acquired from third parties, for the purpose of using them as instruments for managing financial risks.

SECTION V
ACCOUNTING APPLICATION MANUAL FOR CONTINGENT COMMITMENTS Element 5 CONTINGENT COMMITMENTS Classification 51 COMMITMENTS AND CONTINGENCIES

Item 511 OBLIGATIONS FOR LETTERS OF CREDIT
Item
(characteristic)
5110 OBLIGATIONS FOR LETTERS OF CREDIT
The accounts in this item must represent the commitments undertaken by the local entity with its correspondents, for letters of credit openings ordered by its clients; as well as the entity's commitments, in favor of its local clients.

The accounts in this item must represent the commitments undertaken by local banks or financial institutions with their correspondents, for letters of credit openings ordered by their clients; as well as the entity's commitments, in favor of its local clients. Furthermore, they must represent the contingent obligations undertaken by the entity when it acts as guarantor or accrediting party for its clients.

Item 512 CONTINGENCIES FOR GUARANTEES AND BONDS Item (characteristic) 5120 CONTINGENCIES FOR GUARANTEES AND BONDS The accounts in this item must represent the contingent obligations undertaken by the entity when it acts as guarantor or accrediting party for its clients.

Item 513 OPERATIONS WITH FINANCIAL DERIVATIVE INSTRUMENTS

Item
(characteristic)
5130 OPERATIONS WITH FINANCIAL DERIVATIVE INSTRUMENTS

These accounts record with credit the notional (nominal) amounts of contracts related to financial derivative instruments that the entity has acquired from third parties, for the purpose of using them as instruments for managing financial risks.

Item 514 OPEN JUDICIAL PROCEEDINGS AGAINST THE ENTITY Item (characteristic) 5140 OPEN JUDICIAL PROCEEDINGS AGAINST THE ENTITY The accounts in this item must represent the contingent obligations of the entity when judicial proceedings are opened against it by clients or other entities for causes inherent to its intermediation activity.

SECTION VI
ACCOUNTING APPLICATION MANUAL FOR INCOME
Element 6 INCOME
Classification 61 FINANCIAL INCOME

Item 611 FINANCIAL INCOME
Item
(characteristic)
6110 FINANCIAL INCOME
In the accounts of this item, income accrued from the different items included in their account denominations is recorded, which include interest, commissions, and other concepts of returns from financial services provided by the entity.

The commissions that entities charge must comply with what is established in the Consumer Protection Law and its respective regulation.

Account 6110 01 LOAN PORTFOLIO
This account must represent the income accrued and received during the year for concepts of interest, commissions, and other financial returns from the loan portfolio.

A debit to an overdrawn current account is not considered payment.

Account 6110 02 INVESTMENT FINANCIAL INSTRUMENTS This account must represent the interest and other products accrued during the year for concepts of interest, commissions, and other financial returns generated by the assets included in the Investment Financial Instruments portfolio.

The following concepts will be broken down in the accounts:

Subaccount 6110 02 01 00 Held for trading debt instruments other than derivatives Subaccount 6110 02 02 00 Held for trading derivatives Subaccount 6110 02 03 00 Debt Designated at Fair Value with changes in income Subaccount 6110 02 04 00 Debt-representative instruments Subaccount 6110 02 05 00 Debt instruments with and without quoted prices Subaccount 6110 02 06 00 Other assets at amortized cost

Sub-subaccounts must be included in the subaccounts to record income for concepts of interest, gains from changes in the fair value of said financial instruments, gains from reversal of impairment of financial assets, gains from sales of financial investments, and gains from ineffective amounts in hedging operations.

Its balance will be the result of applying cash recoveries and the corresponding provisions.

Account 6110 03 OPERATIONS WITH REPURCHASE AGREEMENTS This account must represent the income obtained in the negotiation of repos and stock market operations. This account must be credited until the cycle of each particular transaction has been closed.

Account 6110 04 INTEREST ON DEPOSITS
This account must represent the interest accrued on deposits in the Central Bank and other entities.

Cash recoveries and the corresponding provisions will be applied to it. A debit to an overdrawn current account will not be considered payment.

Item
(characteristic)
6111 GAIN FROM CHANGES IN FV OF FINANCIAL
ASSETS AND FINANCIAL LIABILITIES

Account 6111 01
CHANGES IN FV OF INVESTMENT FINANCIAL ASSETS AT FAIR VALUE WITH CHANGES IN INCOME The accounts in this item are credited for upward changes in the fair value of financial assets and for downward changes in the fair value of financial liabilities.

This account will be credited with upward fair value changes of financial assets that are held within a business model whose purpose is to continuously manage the investment portfolio in order to obtain gains from short-term margin.

Account 6111 02 CHANGES IN FV OF FINANCIAL LIABILITIES AT FV WITH CHANGES IN INCOME This account will be credited with downward fair value changes of financial liabilities that are held within a business model whose purpose is to continuously manage the investment portfolio in order to obtain gains from short-term margin.

Account 6111 03 CHANGES IN FV OF ITEMS DESIGNATED FOR HEDGE ACCOUNTING This account will be affected by changes in the fair value of financial items designated as hedge accounting items in a fair value hedge. It will be credited with changes in the fair value of the hedge accounting item that give rise to an asset or increase the amount of the asset or decrease the value of the financial liability established in the previous evaluation. The amount credited is that corresponding to the change in fair value that equals the effective amount of the hedge.

Account 6111 04 CHANGES IN FV OF ITEMS DESIGNATED AS HEDGED ITEMS This account will be affected by changes in the fair value of financial items designated as hedged items in a fair value hedge accounting. If the hedged item is an asset item, this account will be increased by upward changes in that hedged item. If the hedged item is a liability item, this account will be credited with downward changes in that hedged item.

Account 6111 05 GAINS FROM CHANGES IN FV OF THE TV OF AN OPTION

The subaccounts into which these accounts are disaggregated will be affected by the amounts of 02 0501 Changes in the fair value of the time 02 0601 Changes in the fair value of the time value of an option of a hedged item Accounting records that must be made when the hedged item does not result in the recognition of a financial asset or non-financial liability, nor in a firm commitment for a non-financial asset or non-financial liability for which fair value hedge accounting is applied. Such reclassification is considered a reclassification adjustment in the same period or periods during which the expected future covered cash flows affect the period's income (for example, when a planned sale takes place).

Account 6111 06
GAINS FROM CHANGES IN FV OF THE TV OF AN
ELEMENT AT TERM OF FORWARD CONTRACTS OF A HEDGED ITEM This account 02 0701 Changes in the fair value of the element at term of forward contracts of a 02 0801 Changes in the fair value of the element at term of forward contracts of a hedged item does not result in the recognition of a financial asset or non-financial liability, nor in a firm commitment for a non-financial asset or non-financial liability for which fair value hedge accounting is applied. Such reclassification is considered a reclassification adjustment in the same period or periods during which the expected future covered cash flows affect the period's income (for example, when a planned sale takes place).

Item
(characteristic) 6112 GAIN FROM REVERSAL OF IMPAIRMENT OF FINANCIAL ASSETS

Account 6112 01
REVERSAL OF IMPAIRMENT OF FINANCIAL
ASSETS OTHER THAN CREDIT RISK ASSETS (CRA)
In the accounts of this item, gains resulting from the reversal of value impairment losses of financial assets will be recorded.

This account will be affected by amounts corresponding to reversals of value impairment applied to financial instruments that in previous evaluations suffered

deterioration in their credit quality which caused the recognition of impairment losses for such instruments. At the date this account is affected, there will be evidence that the financial instrument has recovered part (or all) of its lost value; consequently, these value increases will affect this account with a debit to the account of the affected financial instrument or to the value adjustment account of the same, the latter in case the instrument's value is not affected directly.

The reversal of the impairment loss for these assets will not result in a book amount for the financial asset that exceeds the amortized cost that would have been determined if the impairment loss had not been accounted for at the reversal date.

Account 6112 02
REVERSAL OF ESTIMATES FOR UNCOLLECTABLE LOSSES OF CREDIT RISK ASSETS (CRA) This account will be affected by amounts corresponding to reversals of value impairment applied to financial instruments classified within the Loan groups

deterioration in their credit quality which caused the recognition of impairment losses for such instruments.

At the date this account is affected, there will be evidence that the financial instrument has recovered part (or all) of its lost value; consequently, these increases uncollectability of loans (- value (- can be originated by a reduction in the risk amount of previously impaired financial assets or by total cancellation thereof by the debtor.

Item
(characteristic) 6113 GAIN FROM SALE OF FINANCIAL INVESTMENTS

Account 6113 01 GAIN FROM SALE OF FINANCIAL ASSETS MEASURED AT AMORTIZED COST In this item, gains from the sale of financial instruments will be recorded. This account will be credited with the amounts corresponding to the gain obtained from the sale of financial instruments on the date it is carried out. With a debit to the corresponding availability account.

Item
(characteristic) 6114 GAIN FROM SALE OF CRYPTOCURRENCIES MEASURED AT FV

Account 6114 01 GAIN FROM SALE OF CRYPTOCURRENCIES MEASURED AT FV

In this account, the gains that the entity obtains from the sale of cryptocurrencies registered as intangible assets will be recognized, on the date it is carried out.

Classification 62 OTHER FINANCIAL INCOME

Item 621 OTHER FINANCIAL INCOME
Item
(characteristic)
6210 OTHER FINANCIAL INCOME
In this item, gains generated from operations that do not represent the business lines that are the main purpose of the entity will be recognized.

Account 6210 01 FOREIGN CURRENCY OPERATIONS
Account related to the purchase-sale of foreign currency:
It is credited for gains in the purchase-sale of currency different from the entity's functional currency with a debit to the accounts of item 111 Availability.

The account in this item related to exchange rate fluctuations of monetary items denominated in foreign currency:
It is credited with amounts accrued for gains obtained from the conversion, at the purchase exchange rate, of the functional currency, at the closing date of the financial statements. With a debit to the monetary asset and liability items affected by the conversion.

Assets from upward changes and liabilities from downward changes.

Account 6210 02 LETTERS OF CREDIT
This account will be affected by crediting it with amounts implying commissions accrued for openings, granting, or confirmation of letters of credit with a debit 02 Commissions

Account 6210 03 GUARANTEES AND BONDS
The subaccounts of this account must represent the income accrued from contingent nature transactions, such as commissions and other services provided to clients.

Cash recoveries and the corresponding provisions will be applied to it.

Account 6210 04 FEES FOR OTHER SERVICES
The subaccounts of this account record fees for the different concepts indicated in each of them. It is credited with a debit to the corresponding receivable accounts or to cash if performed in that manner.

Subaccount 6210 04 0500 Fees for acquiring
This subaccount is affected with a credit for the fees that the acquiring entity has earned on the promissory notes that affiliated businesses have submitted to the

Subaccount 6210 04 0600 Exchange fees
This subaccount will be credited with the amounts corresponding to fees earned for participation in the commission for sales processed on a POS terminal of an acquiring entity that is different from the entity, when the latter acts as the issuer. It is credited for the commission charged by the issuer entity to the acquirer in the exchange process of the promissory notes for operations carried out by cardholders in businesses affiliated with the acquiring entity.

Classification 63 INCOME FROM OTHER OPERATIONS Item 631 INCOME FROM OTHER OPERATIONS Item (Classification) 6310 INCOME FROM OTHER OPERATIONS

Account 6310 01 RECOVERY OF LOANS AND INTERESTS This account must represent the recovery of loans and interests that have been written off (charged off) in previous periods and the releases of restructuring reserves constituted in previous periods.

Account 6310 02 GAIN ON SALE OF ASSETS
Gains obtained from the sale of the assets detailed in the subaccounts that make it up will be recognized in this account.
This account must represent the profit obtained from the sale of property and equipment, extraordinary assets, discontinued operations, intangibles, and cryptocurrencies.

Account 6310 03 INCOME FROM ASSET EXPLOITATION This account will be affected by crediting it with the flows generated for the entity by assets that, being its property and available for sale, have resources capable of generating flows by themselves (example of real estate given for rent, farms generating agricultural production, or others).

Account 6310 04 DIVIDENDS
In separate financial statements, the amounts corresponding to dividends decreed by the entities in which investments in shares are held are recorded.
Dividends received from subsidiaries and interests in joint ventures and applied in these accounts are debited for elimination as an intra-group transaction when consolidated financial statements are prepared with a credit to the equity account affected by the invested entity.

Account 6310 05 INCOME FROM TEMPORARY DIFFERENCES OF TAXES ON PROFITS Temporary income from taxes on profits must be recorded in this account, as mentioned in the International Accounting Standards.

Account 6310 06 SUBSIDIES
This account must represent the recognition of income based on the income method, established in the International Accounting Standard (IAS-20).

Account 6310 07
GAINS GENERATED BY ENTITIES
REGISTERED UNDER THE EQUITY METHOD
Applies when the financial statements of the entity are consolidated, when it is a controlling entity.
In this account, the gains generated by investments in shares obtained in joint ventures will be recorded, which are recorded in the consolidated financial statement applying the equity method.

It is credited with the gains recognized under the equity method at the close of 01 Joint investments in the subaccounts to which it applies.

Account 6310 08 GAINS FROM INEFFECTIVE AMOUNTS IN HEDGE OPERATIONS Subaccount 6310 08 0100 Hedge items This account will be affected by crediting it with the ineffective amounts that imply a gain and that arise in a hedge relationship, any of those established in the account catalog. In addition, it will be affected with the amounts that represent ineffective amounts that imply a gain and that come from a hedged item, in this last case, only from a hedged item in a fair value hedge relationship.

Account 6310 09 GAIN FROM REVERSALS OF IMPAIRMENT OF ASSET VALUE The subaccounts of this account record increases in fair value, when a loss for impairment of value of the extraordinary assets held for sale, property and equipment, intangible assets, and investments in shares had previously been recognized with a debit to the corresponding asset accounts.

Subaccount 6310 09 0100 Investments in shares
This subaccount will be affected with the amounts that represent a reversal of impairment losses that were recognized previously and that, at the date of the financial statements, there is evidence that the events that generated that loss have disappeared and consequently the recoverable amount of the investment has increased at the balance date.

Subaccount 6310 09 0200 Property and equipment The reversal of the impairment of investment property that is valued at cost will be done observing the rules established for property and equipment.

Account 6310 99 OTHER INCOME
This account must represent the income obtained, which does not correspond to the banking business and which is not found in the preceding classification.

SECTION VII
ACCOUNTING APPLICATION MANUAL OF COSTS
Element 7 COSTS
Classification 71 FINANCIAL COSTS
Item 711 FINANCIAL COSTS
Item
(characteristics) 7110 COSTS OF FINANCIAL LIABILITIES The accounts of this item must represent the financial costs of the period, such as interest and commissions generated by the liabilities of the institution. In general, it represents the cost incurred by the institution for the financing of its operations and for the benefit accrued to depositors.

Account 7110 01 DEPOSITS
This account must represent the interest and any other benefit accrued to depositors.

Account 7110 02 LOANS FOR THIRD PARTIES
This account must represent the interest and commissions accrued on loans obtained to place them in active credit operations.

Account 7110 03 LOANS TO COVER CASH DEFICIT
This account must represent the interest accrued on loans obtained from the Central Bank, to cover temporary or structural liquidity deficiencies. These loans are those recorded in accounts 2116 01 Owed to BCR and 2117 01 Owed to BCR.

Account 7110 04 OWN ISSUANCE TITLES
This account must represent the interest accrued on tokenized titles, bonds, mortgage certificates, and others issued with the object of capturing resources to be placed in active credit operations.

Account 7110 05
FINANCIAL LIABILITIES AT FAIR VALUE WITH CHANGES IN PROFIT OR LOSS Effective interest expenses incurred on financial liabilities are recorded with a credit to the accounts of the item (characteristic 01 Held for trading

recognize separately the interest on financial liabilities classified at fair value, on the contrary, it would be expected that they were accumulated within the instrument that originated them as part of the fair value. On the other hand, revaluations corresponding to derivative financial instruments directly affect the main account, that is, the capital account, not the interest account.

Account 7110 06 OPERATIONS WITH REPURCHASE AGREEMENTS Account 7110 07 CONVERTIBLE OBLIGATIONS INTO SHARES Account 7110 08 SUBORDINATED LOANS Account 7110 09 LEASES Effective interest expenses incurred for financial obligations assumed by the entity are recorded with a credit to the interest subaccounts of the loan portfolio accounts.

Account 7110 10 FEES FOR FINANCIAL GUARANTEES RECEIVED This account will be debited with the amounts that the entity has disbursed for amortized fees for financial guarantees constituted in favor of the entity.

Account 7110 11 CREDIT CARD FEES
This account must represent the financial costs for credit card commissions incurred by the entity for the representation of a credit card issuer brand, as well as the membership fee.

Account 7110 12 FEES FOR OTHER FINANCIAL LIABILITIES This account must represent the costs incurred in intermediation operations not included in the previous classifications.

Item
(characteristic)
7111 LOSS FROM CHANGES IN FAIR VALUE OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES The accounts of this item are debited for downward changes in the fair value of financial assets and for upward changes in the fair value of financial liabilities.

Account 7111 01 CHANGES IN FAIR VALUE OF INVESTMENT FINANCIAL ASSETS AT FAIR VALUE WITH CHANGES IN PROFIT OR LOSS

This account will be affected by debiting it with the downward fair value changes of financial assets held within a business model whose purpose is to continuously manage the investment portfolio in order to obtain gains from margin in the short term.

Account 7111 02 CHANGES IN FAIR VALUE OF FINANCIAL LIABILITIES AT FAIR VALUE WITH CHANGES IN PROFIT OR LOSS This account will be affected by debiting it with the upward fair value changes of financial liabilities held within a business model whose purpose is to continuously manage the investment portfolio in order to obtain gains from margin in the short term.

Account 7111 03 CHANGES IN FAIR VALUE OF ITEMS DESIGNATED FOR HEDGE ACCOUNTING This account will be affected with the fair value changes of financial items designated as hedge accounting items in a fair value hedge. If the fair value changes in the hedge accounting item give rise to a financial liability or increase the amount of the liability or decrease the value of the financial asset established in the previous evaluation, this account will be debited for the amount of the change in fair value that is equivalent to the effective amount of the hedge.

Account 7111 04 CHANGES IN FAIR VALUE OF ITEMS DESIGNATED AS HEDGED ITEMS This account will be affected with the fair value changes of financial items designated as hedged items in a fair value hedge accounting. If the hedged item is an asset item, this account will be increased by debiting it with the downward changes of that hedged item. If the hedged item is a liability item, this account will be increased by debiting it with the upward changes of that hedged item.

Account 7111 05 LOSSES FROM CHANGES IN THE FAIR VALUE OF THE TIME VALUE OF AN OPTION Subaccount 7111 05 0100 Losses from changes in the fair value of the time value of an option of a hedged item related to a transaction Subaccount 7111 05 0200 Losses from changes in the fair value of the time value of an option of a hedged item related to a period of time These subaccounts will be affected with the amounts that are reclassified from subaccount 01 0301 Changes in the fair value of the time value of an option of a hedged item 02 0601 Changes in the fair value

of the time value of an option of a hedged item related to a period of hedge does not give rise to the recognition of a non-financial asset or non-financial liability, nor to a firm commitment for a non-financial asset or a non-financial liability for which fair value hedge accounting is applied.

Account 7111 06
LOSSES FROM CHANGES IN THE FAIR VALUE OF THE TIME VALUE OF A FORWARD ELEMENT OF FORWARD CONTRACTS OF A HEDGED ITEM Subaccount 7111 06 0100 Losses from changes in the fair value of the time value of a forward element of forward contracts of a hedged item related to a transaction This subaccount 01 0401 Changes in the fair value of the forward element of forward contracts 02 0701 Changes in the fair value of the forward element of forward contracts of a hedged item give rise to the recognition of a non-financial asset or non-financial liability, nor to a firm commitment for a non-financial asset or a non-financial liability for which fair value hedge accounting is applied. Such reclassification is considered a reclassification adjustment in the same period or periods during which the expected future cash flows covered affect the period's result (for example, when a planned sale takes place)

Subaccount 7111 06 0200
Losses from changes in the fair value of the time value of a forward element of forward contracts of a hedged item related to a period of time The balance of this subaccount represents the amounts amortized systematically and rationally over the period during which the hedge adjustment for the value 02 0801 Changes in the fair value of the forward element of forward contracts of a

Item
(characteristic)
7112 LOSSES FROM IMPAIRMENT OF FINANCIAL ASSETS Account 7112 01 IMPAIRMENT OF FINANCIAL ASSETS OTHER THAN CREDIT RISK ASSETS (CRA) This account will be affected with the amounts corresponding to impairment losses identified on financial instruments measured at amortized cost and

which are incorporated into the accounts of the item At the date this account is affected, there must be relevant evidence that the financial instrument has been impaired in part (or all) of its book value.

Account 7112 02
CONSTITUTION OF LOSS ESTIMATES FOR
GUARANTEES, BONDS, AND OTHERS
This account must represent the value of the reserve constituted in the period for the recognition of losses.

Account 7112 03
CONSTITUTION OF LOSS ESTIMATES FOR
WRITE-OFFS OF GUARANTEES, BONDS, AND OTHERS
This account must represent the value of the reserve for write-offs for the recognition of losses.

Item
(characteristic)
7113 LOSS FROM SALE OF FINANCIAL INVESTMENTS
Account 7113 01 LOSS FROM SALE OF FINANCIAL ASSETS MEASURED AT AMORTIZED COST This account will be affected by debiting it with the amounts corresponding to the loss obtained from the sale of financial instruments on the date it is carried out. With a credit to the corresponding asset account.

Item
(characteristic) 7114 LOSS FROM SALE OF CRYPTOCURRENCIES MEASURED AT FAIR VALUE Account 7114 01 LOSS FROM SALE OF CRYPTOCURRENCIES MEASURED AT FAIR VALUE The account of this item is debited for the loss obtained from the sale or disposal of cryptocurrencies on the date it is carried out.

Item
(characteristic)
7115 OTHER FINANCIAL COSTS
This item will be affected with the amounts corresponding to other financial costs generated by events other than those considered, which have not been identified specific accounts in which to recognize them, and in addition, they do not fit into any of the other classifications stated to recognize the different types of financial costs that the entity may generate.

Account 7115 01 TRANSACTIONAL COSTS
This account will be affected with the transactional costs incurred by the entity in the acquisition of financial instruments whose subsequent measurement is at fair value with changes in profit or loss.

Account 7115 02 COST OF SALE
This account will be affected with the costs incurred by the entity with the purpose of disposing of assets. Examples of these are commissions paid to securities brokers, real estate brokers, etc.

Account 7115 03 OTHERS
This account is debited for any other financial costs incurred other than those indicated above with a credit to the asset or financial liability accounts that have been used as the contra account of the operation.

Item 712
CONSTITUTION OF LOSS ESTIMATES FOR
RESTRUCTURING OF CREDIT RISK ASSETS (CRA)

Item
(characteristics) 7120
CONSTITUTION OF LOSS ESTIMATES FOR
RESTRUCTURING OF CREDIT RISK ASSETS (CRA)

Account 7120 00 RESTRUCTURING OF CREDIT RISK ASSETS This item must represent the value of loss estimates constituted during the accounting period. It will be debited for increases to the estimates and credited for decreases to the estimates constituted in the current period. This account will be affected by debiting it with the amounts corresponding to impairment losses established applying the corresponding regulations on the assets brability In the case of applications to this account for impairment of financial guarantee contracts, the amount applied to this account will increase the liability of the 05 Obligations for financial guarantee contracts

Item 713
CONSTITUTION OF LOSS ESTIMATES FOR
WRITE-OFFS OF CREDIT RISK ASSETS (CRA)

Item
(characteristics) 7130
CONSTITUTION OF LOSS ESTIMATES FOR
WRITE-OFFS OF CREDIT RISK ASSETS (CRA)

Account 7130 00 WRITE-OFFS OF CREDIT RISK ASSETS This item must represent the value of write-offs (charge-offs) of intermediation assets.
This account will be affected by debiting it with the amounts corresponding to impairment losses established applying the corresponding regulations on the assets brability In the case of applications to this account for impairment of financial guarantee contracts, the amount applied to this account will increase the liability of the 05

Classification 72 COSTS FROM OTHER OPERATIONS
Item 721 COSTS FROM OTHER OPERATIONS
Item
(characteristic)
7210 FEES FOR OTHER SERVICES
This item will be affected with the amounts disbursed by the entity for the payment of fees for services received.

Account 7210 01 FOR ASSET MANAGEMENT
This account will be debited with the amounts corresponding to the commissions incurred by the entity for costs for assets ceded in administration to third parties or for the requirement of other services, with a credit to the accounts of item 220 Account

Account 7210 02 SERVICE PROVISION
This account will be debited with the amounts corresponding to commissions for other services received with a credit to the corresponding availability account or to 04

Item
(characteristic)
7211 LOSSES GENERATED BY ENTITIES REGISTERED
UNDER THE EQUITY METHOD
This item applies when the financial statements of the entity are consolidated, when it is a controlling entity.

In this item, the losses generated by investments in shares held in joint ventures will be recorded, which are applied to the consolidated financial statement applying the equity method. It is debited with the losses recognized under the equity method at the close of the period with a credit to the subaccounts of account 01 Joint investments to which it applies.

Item
(characteristic)
7212 LOSSES FROM FOREIGN CURRENCY OPERATIONS
In this item, losses incurred in purchase and sale operations and in exchange rate fluctuations that arise in assets and liabilities denominated in foreign currency are recorded, as well as losses that originate from the conversion of businesses abroad. The accounts of this item related to the purchase and sale of foreign currency:
It is debited for losses in the purchase and sale of currency other than the entity's functional currency with a credit to the accounts of item 111 Availability.
In the case of exchange rate fluctuations of monetary items denominated in foreign currency:
It is debited with the amounts incurred for losses from the conversion, at the purchase exchange rate, of the functional currency, at the date of close of the financial statements. With a credit to the monetary asset and liability items affected by the conversion. The assets for downward changes and the liabilities for upward changes.

Item
(characteristic)
7213 LOSS FROM INEFFECTIVE AMOUNTS IN HEDGE OPERATIONS Account 7213 01 LOSS FROM INEFFECTIVE AMOUNTS IN HEDGE OPERATIONS This account will be affected by debiting it with the ineffective amounts that imply a loss and that arise in a hedge relationship, any of those established in the account catalog. In addition, it will be affected with the amounts that represent ineffective values that imply a loss and that come from a hedged item, in this last case, only from a hedged item in a fair value hedge relationship.

Item
(characteristic)
7214 LOSS FROM IMPAIRMENT OF ASSET VALUE

For assets treated in this category, it is considered that an impairment loss has occurred on the asset when its recoverable amount (the higher of fair value less costs to sell and its value in use, the latter being the present value, applying an appropriate discount rate, of the cash flows both to be received and paid out by the entity and derived from the continuous use of the asset and its final disposal) is less than its book value; therefore, the latter is reduced to the recoverable amount of the evaluated asset.

Account 7214 01 EXTRAORDINARY ASSETS
This account is affected for impairment losses, as appropriate.

Account 7214 02 PROPERTY AND EQUIPMENT
It is affected with a debit for the amounts of impairment losses established with a credit to the accounts of the impaired items or to account 39 01 through a contra account.

Account 7214 03 INTANGIBLE ASSETS
It is affected with a debit crediting the accounts of the item, whether the loss is applied directly to the affected assets or to account 39 01, when the loss is applied through a contra account.

Account 7214 04 EQUITY INVESTMENTS
This account is affected by debiting it with impairment losses with a credit to the accounts of the item, whether it directly affects the asset account or the respective revaluation sub-accounts. The impairment amount affecting this account is that incurred in the subsidiaries that consolidate into the consolidated financial statements, applying the equity method. In the case of Goodwill, it is affected by debiting it with impairment losses with a credit to the accounts of the item. For this item, an evaluation of the assets of the subsidiaries that have consolidated into the consolidated financial statements must be performed (identifying the cash-generating unit(s) to which such goodwill has been assigned); any impairment loss identified in those assets (cash-generating unit(s)) first affects the purchased goodwill and then, any remaining impairment loss is applied to the identifiable assets proportionally to their book value within the generating unit.

Account 7214 05 CRYPTOCURRENCIES
It is affected with a debit crediting the respective cryptocurrency accounts, whichever applies, from 1230 Inventories.

Category
(characteristic)
7215 LOSS ON SALE OF ASSETS

Account 7215 01 LONG-TERM ASSETS
Account 7215 02 ASSETS RECEIVED IN PAYMENT OR AWARDED Account 7215 04 CRYPTOCURRENCIES The accounts in this category must represent the value of losses caused by the sale of long-term asset goods, extraordinary assets, and cryptocurrencies. In the contrary case, if the sale value is less than the book value of the good or the net realizable value, the difference must be recorded in this account.

Category 729 COSTS FROM ASSET OPERATION

Category
(characteristic)
7299 COSTS FROM ASSET OPERATION
Costs incurred by the entity for various concepts such as asset operation costs, costs for credit card plastics, and any other costs of a similar nature are recorded in this category with a credit to accounts in category 111 Cash and Cash Equivalents or another asset account as appropriate.

SECTION VIII
ACCOUNTING APPLICATION MANUAL FOR ADMINISTRATIVE EXPENSES Element 8 EXPENSES Classification 81 ADMINISTRATIVE EXPENSES Category 811 EXPENSES FOR OFFICERS AND EMPLOYEES

Category
(characteristic) 8110 EXPENSES FOR OFFICERS AND EMPLOYEES This category must represent expenses for concepts of ordinary and extraordinary salaries, paid to the institution's personnel.

This category is debited for expenses incurred for items such as remuneration, staff benefits, board expenses, payments based on share value, and other officer and employee expenses with a credit to accounts in category 111 Cash and Cash Equivalents or to accounts in category 2220 Accounts Payable or others, as appropriate.

Account 8110 01 REMUNERATIONS
This account must represent expenses for concepts of ordinary and extraordinary salaries, paid to the institution's personnel.
Only what is paid to personnel for the provision of their services should be considered salary, that is, what is accrued during vacations, indemnities, and other similar situations must be recorded in the corresponding accounts.

Account 8110 02 STAFF BENEFITS
This account must represent the value of benefits paid to personnel, as described in the sub-accounts.

Account 8110 03 INDEMNITIES AND BENEFITS FOR STAFF RETIREMENT This account must represent the value of indemnities paid to personnel or the value of the provision for indemnities, as appropriate, based on the accounting policy adopted.

Account 8110 04 BOARD EXPENSES
This account must represent the expenses generated by the institution's board of directors, according to the sub-account detail.

Account 8110 05 OTHER OFFICER AND EMPLOYEE EXPENSES This account must represent the value of various expenses attributable to personnel, according to the sub-account detail.

Account 8110 06 PENSIONS AND RETIREMENTS
This account must represent the value of estimates for concepts of pensions and retirements, made in accordance with each institution's policies.

Account 8110 07 SHARE-BASED PAYMENTS
This account must represent the value of payments based on share value that have been agreed upon for the provision of services, in the case that the service is received from officers or employees.

Category 812 GENERAL EXPENSES

Category
(characteristic)
8120 GENERAL EXPENSES
The accounts in this category must represent the expenses incurred by the entity according to the detail of accounts and sub-accounts.
These accounts must be affected by the disbursements and provisions that correspond.
It is debited for expenses incurred for items such as consumption of materials, repair and maintenance of property and equipment, repair and maintenance of investment properties, services, and taxes; with a credit to accounts in category 111 Cash and Cash Equivalents, the accounts of the categories (characteristic) account.

Category 813 DEPRECIATION AND AMORTIZATION

Category
(characteristic)
8130 DEPRECIATION AND AMORTIZATION
The accounts in this category must represent the loss of value of the goods that make up physical and intangible assets, whether by depreciation or amortization.
The sub-accounts of this category are debited for the amounts recognized as depreciation or amortization expense based on the systematic distribution assigned to the goods incorporated in each of the cited accounts; with a credit to the accounts in the categories and accumulated impairment.

Category 814 PROVISIONS

Category
(characteristic) 8140 PROVISIONS
The accounts in this category represent obligations registered by the entity for future obligations; which are based on legal regulations, internal entity policies, or specific requirements made by the corresponding technical standard, with application in the category (characteristic).

Category 815 INCOME TAX
All concepts related to income tax, both current and deferred, and likewise both income and expenses for this concept, are applied in this category.

Category
(characteristic)
8150 EXPENSE FOR INCOME TAX

Account 8150 01 CURRENT INCOME TAX
This account is affected by debiting it with the amounts corresponding to the fiscal taxes of the period, that is, the taxes resulting from applying the tax rate to the fiscal profit.

Account 8150 02 CONSTITUTION OF TEMPORARY DIFFERENCES (DEBIT BALANCE) This account will be affected with a debit for the amounts corresponding to the constitution of deferred tax liabilities that originate from applying the tax rate to the constitutive taxable temporary differences. This account increases fiscal expenses on the date of its constitution, consequently reducing the current taxes payable to the tax authority.

Account 8150 03 REVERSAL OF DEDUCTIBLE TEMPORARY DIFFERENCES (DEBIT BALANCE) This account will be affected with a debit for the amounts corresponding to the reversal of deferred tax assets that originate from applying the tax rate to the reversed deductible temporary differences. This account increases fiscal expenses on the date of its reversal, consequently reducing the current taxes payable to the tax authority.

Account 8150 04 CONSTITUTION OF DEDUCTIBLE TEMPORARY DIFFERENCES (CREDIT BALANCE) This account will be affected with a credit for the amounts corresponding to the constitution of deferred tax assets that originate from applying the tax rate to the constitutive deductible temporary differences. This account increases fiscal income on the date of its constitution, consequently increasing the current taxes payable to the tax authority.

Account 8150 05 REVERSAL OF TAXABLE TEMPORARY DIFFERENCES (CREDIT BALANCE) This account will be affected with a credit for the amounts corresponding to the reversal of deferred tax liabilities that originate from applying the tax rate to the reversed taxable temporary differences. This account increases fiscal income on the date of its reversal, consequently increasing the current taxes payable to the tax authority.

The net amount of this category 8150 is equivalent to the income tax established on financial or accounting profits, that is, accounting profits multiplied by the tax rate.

SECTION IX
ACCOUNTING APPLICATION MANUAL FOR OFF-BALANCE SHEET ACCOUNTS Element 9 OFF-BALANCE SHEET ACCOUNTS Classification 91 FINANCIAL INFORMATION Category 911 RIGHTS AND OBLIGATIONS FOR CREDITS

Category
(characteristic) 9110 RIGHTS AND OBLIGATIONS FOR CREDITS

Account 9110 01 AVAILABILITY FOR OBTAINED CREDITS In this account, the amounts of credit lines contracted firmly by the entity are recorded, which are reduced as the entity makes use of them.

Account 9110 02 DEMANDABILITY FOR GRANTED CREDITS This account must represent the value of approved loans, pending disbursement, and the availability of clients by credit line contracts.

Category 912 ASSETS IN ADMINISTRATION
This category must represent the value of funds in the entity's possession, received with the characteristics of a commercial mandate.
In the accounts of this category, the amounts, both of capital and interest of the assets received in administration by the entity, will be included. The amounts included here will be those received in administration less the amortizations that are carried out to their holders based on the payments received.

These amounts will be distinct from those corresponding to recoveries and settlements carried out, which will be recorded in the cash and accounts payable accounts corresponding while settlement does not occur. The control of these values must be kept in accounting records, as demanded by the circumstances.

Category 913 GUARANTEE FUNDS

Category
(characteristic)
9130 GUARANTEE FUNDS
The accounts belonging to this category must represent the value of each fund received to guarantee credit operations.
For the control of these funds, accounting records must be established as demanded by the circumstances.

Category 914
INTERESTS ON DOUBTFUL LOANS

Category
(characteristic)
9140
INTERESTS ON DOUBTFUL LOANS
This category must represent the value of interests that accrue on loans with a delay of more than ninety (90) days or that determine other norms issued by the Central Bank through its Norms Committee.

Category 915 PLEDGED LOAN PORTFOLIO

Category
(characteristic) 9150 PLEDGED LOAN PORTFOLIO
In the accounts of this category, the entity must register the entity's portfolio that is guaranteeing obligations to its account and in favor of the Central Bank, Other entities of the Financial System, foreign entities, in favor of third parties, or for the issuance of debentures. In the accounts of this category, the amounts of assets that the entity has ceded as collateral for various causes, such as restricted portfolio for purposes of using it as collateral for debt issuance, will be recorded. The pledge does not imply the withdrawal of the asset from the balance sheet.

Category 916 BALANCES DUE FROM DEBTORS

Category
(characteristic) 9160 BALANCES DUE FROM DEBTORS

Account 9160 00 BALANCES DUE FROM DEBTORS
In the sub-accounts of this account, balances that remain pending payment for obligations of debtors who have partially cancelled to the institution, through extraordinary assets received in payment or awarded, must be registered.

Category 917 CRYPTOCURRENCY COLLATERAL

Category
(characteristic) 9170 CRYPTOCURRENCY COLLATERAL

Account 9170 00 VALUATION OF CRYPTOCURRENCIES
In the sub-accounts of this category, guarantees received in cryptocurrencies, as well as the price fluctuation generated by its valuation, will be registered.

Classification 92 INVENTORY IN THE VAULT
In this classification, the different documents that support operations, which are under own custody or on behalf of third parties and others, are registered.

Category
(characteristic)
9210 LOAN AND CREDIT DOCUMENTS
The accounts in this category must register the instruments that back different loans and credits granted by the entity.

Category
(characteristic)
9211 OPEN JUDICIAL PROCEEDINGS
In this category, the contingent amounts that could favor the entity, due to open judicial proceedings by the entity against third parties; and from which the probability of some monetary settlement in favor arises, will be registered.

Category
(characteristic)
9212 OPEN JUDICIAL PROCEEDINGS AGAINST THE
ENTITY
The accounts in this category must register the amounts that represent contingent liabilities, events that according to the knowledge the entity has of them, on the date of the financial statements, it is not probable that there is a present obligation due to them and the possibility that a resource outflow occurs due to them is not remote.

Category 922 FINANCIAL INSTRUMENTS AND OTHER
DOCUMENTS
The accounts in this category must represent the value of the documents, in the entity's possession, according to the detail of accounts and sub-accounts.
In the accounts, the documents that support the entity's operations carried out with financial investments are registered.

Category 923 INVESTMENT FINANCIAL INSTRUMENTS

Category
(characteristic)
9230 AT FAIR VALUE WITH CHANGES IN
PROFIT OR LOSS (FVTPL)
The accounts in this category must represent the nominal value of the registered documents, plus the value of the coupons in existence.

Category 924 WRITTEN-OFF ASSETS

Category
(characteristic)
9240 WRITTEN-OFF ASSETS
In the accounts of this category, the amounts corresponding to credits and investments written off from assets for various causes will be registered. The amounts to be registered are those corresponding to capital and interest of the withdrawn operations.

Annex No.1
CHAPTER V
FINANCIAL STATEMENTS
NAME OF THE PUBLISHING ENTITY
Statement of Financial Position
Balances as of December 31 (current year) and of (previous year) (Expressed in thousands of United States dollars) Note 1/ (Current Year) (Previous Year) ASSET Cash and cash equivalents (111, 112 and all those items that the entity, in accordance with its policies, defines as cash equivalents)

Investment financial instruments (net) (1130, 1131, 1134) At Fair Value Through Profit or Loss At Fair Value Through Other Comprehensive Income (FVTOCI) At Amortized Cost Financial Derivatives for Hedges (1132) Restricted Financial Instruments (1138) Loan Portfolio (net) (114) Loans current for one year term Loans current for more than one year term Overdue Loans (Estimate for impairment loss) Accounts Receivable (net) (125) Physical and Intangible Assets (net) (13) Extraordinary Assets (net) (122) Long-term Assets Held for Sale (127) Equity Investments (Net) (126) Other Assets (121, 123, 124) Total Assets LIABILITY Financial Liabilities at Fair Value Through Profit or Loss (net) (210001, 210002, 210003)

Hedge Derivatives (210004)
Financial Liabilities at Amortized Cost (net) (211) Deposits (2110, 2111, 2112, 2113, 2114) Repurchase Agreement Operations (2115) Loans (2116, 2117, 2118) Own-Emission Securities (212001, 212002, 212003, 212004, 212005) Convertible Bonds into Shares Loans Convertible into Shares up to one year term (211609)

Demand Obligations (213)

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-08/2025
NCF-12
ACCOUNTING MANUAL FOR INVESTMENT BANKS Approval: 30/09/2025 Validity: 15/10/2025 Note 1/ (Current Year) (Previous Year) Accounts Payable (222, 223) Provisions (2240) Other Liabilities (221, 2241, 2242, 225) Subordinated Loans (2119) Total Liabilities EQUITY Share Capital (311) Reserves (312) Of capital Other reserves Results to Apply (313) Profits (Losses) of previous periods Profits (Losses) of the current period Share Premiums (314) Restricted Equity Undistributable Profits (321) Donations (322) Accumulated Other Comprehensive Income (3230, 3231) Items that will not be reclassified to profit or loss Items that will be reclassified to profit or loss Non-controlling Interests Total Equity Total Liability and Equity 1/ In the Financial Statements, reference will be made to the note number. As appropriate for each element of the Financial Statements.

Annex No.2
NAME OF THE PUBLISHING ENTITY
Statement of Comprehensive Income
Years ended December 31 of (current year) and of (previous year) Expressed in thousands of United States dollars Note 1/ (Current Year) (Previous Year) Interest Income Financial Assets at Fair Value Through Profit or Loss (6110 02 0100, 6110 02 0200, 6110 02 0300) Financial Assets at Fair Value Through Other Comprehensive Income (6110 02 0400) Financial Assets at Amortized Cost (6110 02 0500, 6110 02 0600, 6110 03 0100, 611004) Loan Portfolio (6110 01 0100) Other Interest Income (6110 03 0200, 6210 01 0300) (Interest Expenses) (Deposits) (7110 01) (Financial Liabilities at Fair Value Through Profit or Loss) (7110 05) (Own-Emission Securities) (7110 04 0100, 7110 04 0200) (Loans) (7110 02 0100, 7110 03 0100) (Other Interest Expenses) (7110 06 0100, 711007, 7110 08 0100, 7110 09) NET INTEREST INCOME Gain (Loss) from changes in fair value of financial assets and liabilities, Net (6111, 7111) Gain (Loss) from impairment of financial assets other than credit risk assets, Net (6112 01, 7112 01) Gain (Loss) from impairment of credit risk financial assets, Net (6112 02, 7120) Gain or (Loss) from reversal of (impairment) of extraordinary assets, Net (6310 09 0300, 7214 01) Gain (Loss) from reversal of (impairment) of property and equipment, Net (6310 09 0200, 7214 02) Gain (Loss) from reversal of (impairment) of other assets, Net (6310 09 0100, 6310 09 0400-(7214 03, 7214 04)) INTEREST INCOME, AFTER CHARGES FOR IMPAIRMENT Commission and Fee Income (6110 01 0200/6110 01 0700, 6210 01 0200, 6210 03 0100, 6210 04, 6210 05) (Commission and Fee Expenses) (7110 02 0200, 7110 03 0200, 7110 06 02 00, 7110 08 0200, 7110 10, 7110 12, 7210) NET COMMISSION AND FEE INCOME Gains (Losses) from sales or disposal of financial instruments at amortized cost, net (6113 01, 7113 01) Gains (Losses) from sales or disposal of cryptocurrencies, net (6114 01, 7114 01) Gain (Loss) from sales of assets and Discontinued Operations (6310 02, 7215) Gains (losses) generated by entities registered under the equity method (6310 07, 7211)

Note
1/
(Current Year)
(Previous Year)
Other financial income (expenses) (6210 01 0100, 6210 01 0400, 6210 01 0500, 6210 02, 6210 03 9700, 6310 01, 6310 03/6310 06, 6310 08, 6310 99), (7110 04 0900, 7112 03, 7112 03, 7114, 7115, 7212, 7213, 7299) TOTAL NET INCOME (Administrative expenses) (8110) (Expenses for officials and employees) (8120) (Depreciation and amortization expenses) (8130) (Provision expenses) (8140) INCOME (LOSS) BEFORE TAX Income tax expenses (8150) INCOME (LOSS) FOR THE PERIOD OTHER COMPREHENSIVE INCOME Items that will not be reclassified to profit or loss Revaluation surplus Changes in fair value of financial liabilities at fair value through profit or loss attributable to changes in credit risk Changes in the fair value of the time value of an option of a hedged item related to a transaction Changes in the fair value of the time element of forward contracts of a hedged item related to a transaction Taxes on items that will not be reclassified to profit or loss Items that will be reclassified to profit or loss Foreign exchange differences from foreign operations Revaluation surplus of cryptocurrencies Cash flow hedge reserve Changes in fair value of debt instruments at fair value through Other Comprehensive Income. Changes in the fair value of the time value of an option of a hedged item related to a transaction Changes in the fair value of the time value of an option of a hedged item related to a period of time Changes in the fair value of the time element of forward contracts of a hedged item related to a transaction Changes in the fair value of the time element of forward contracts of a hedged item related to a period of time Taxes on items that will be reclassified to profit or loss TOTAL COMPREHENSIVE INCOME FOR THE PERIOD Earnings per Share from continuing operations attributable to the parent's shareholders during the year (expressed in ___per share):
Basic
Diluted
Earnings per Share from discontinued operations attributable to the parent's shareholders during the year (expressed in ___per share):
Basic
Diluted
1/ In the Financial Statements, reference will be made to the note number. As appropriate for each element of the Financial Statements.

NAME OF THE PUBLISHING ENTITY Annex No. 3
Statement of Changes in Equity
Years ended December 31, (current year) and (previous year) (Expressed in thousands of United States dollars)

SOURCES OF CHANGES IN EQUITY
Notes
1/
Share
Capital
Capital
Reserves
Other
Reserves
Results to be
Applied
Undistributable
Profits
Donations
Other
Comprehensive
Income
Previous
Periods
Other
Comprehensive
Income of the Period
Non-controlling shareholder interests
Total
Equity
Balance at January 1, 20xx US$ XX US$ XX US$ XX US$ XX US$ XX US$ XX US$ XX US$ XX US$ XX US$ XX Effect of corrections of errors Effect of changes in accounting policies Restated balance Issuance of shares Dividends Other Comprehensive Income:
Increases in items that will not be reclassified to profit or loss Decreases in items that will not be reclassified to profit or loss Increase in items that will be reclassified to profit or loss Reclassifications to profit or loss Other increases or (-) decreases in equity Balance at December 31, 20xx US$ XX US$ XX US$ XX US$ XX US$ XX US$ XX US$ XX US$ XX US$ XX US$ XX

1/ The details will be included in the notes to the Financial Statements, in accordance with the IFRS structure.
SOURCES OF CHANGES IN EQUITY
Notes
1/
Share
Capital
Capital
Reserves
Other
Reserves
Results to be
Applied
Undistributable
Profits
Donations
Other
Comprehensive
Income
Previous
Periods
Other
Comprehensive
Income of the Period
Non-controlling shareholder interests
Total
Equity
Balance at January 1,
20xx
Effect of corrections of errors
Effect of changes in accounting policies
Restated balance
Issuance of shares
Dividends
Other Comprehensive Income:
Increases in items that will not be reclassified to profit or loss Decreases in items that will not be reclassified to profit or loss Increase in items that will be reclassified to profit or loss Reclassifications to profit or loss Other increases or (-) decreases in equity Balance at December 31, 20xx US$ XX US$ XX US$ XX US$ XX US$ XX US$ XX US$ XX US$ XX US$ XX US$ XX

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-08/2025
NCF-12
ACCOUNTING MANUAL FOR INVESTMENT BANKS Approval: 30/09/2025 Effective: 15/10/2025
Annex No. 4
NAME OF THE PUBLISHING ENTITY
Statement of Cash Flows
Years ended December 31, (current year) and (previous year) (Expressed in thousands of United States dollars)

Note
1/
(Current Year)
(Previous Year)
A. Cash flows from operating activities:
Net income for the period
Adjustments to reconcile net income with cash from operating activities:
Reserves for credit risk asset impairments
Reserves for impairment of other assets
Share in associates
Depreciations
Amortizations
Gains/losses on sale and/or retirement of extraordinary assets Gains/losses on sale and/or retirement of physical assets Gains/losses on sale of Cryptocurrency Inventory Minority interest share Interest and commissions receivable Interest and commissions payable Changes in asset accounts:
(Increases) decreases in Loans
(Increases) decreases in Inventory (Cryptocurrencies) (Increases) decreases in Accounts receivable Sales of Extraordinary Assets (Increases) decreases in other assets Changes in liability accounts:
Increases (decreases) in Deposits
Increases (decreases) in Own-issued Securities Increases (decreases) in Payable Obligations Increases (decreases) in Accounts payable Increases (decreases) Other liabilities Net cash used in operating activities B. Cash flows from investing activities (Increases) decreases in Financial investment instruments Acquisition of subsidiaries net of cash acquired Disposal of subsidiaries net of cash disposed Acquisition of physical assets Income from sale of physical assets Acquisition of intangibles (Increase) decreases in Cryptocurrency Holdings Income from sale of intangible assets Acquisition of interest in joint ventures

Note
1/
(Current Year)
(Previous Year)
Proceeds from sale of interest in joint ventures Net cash (used in) provided by investing activities
C. Cash flows from financing activities
Increases in share capital
Decreases in share capital
Loans received
Loan repayments
Placement of Own-issued Securities
Placement of Tokenized Securities
Cancellation of own-issued securities
Cancellation of Tokenized Securities
Increases (decreases) in Repurchase agreements Payment of finance leases Payment of dividends Other financing activities Net cash provided (used) in financing activities Net Increase (Decrease) in cash and cash equivalents Cash and Cash Equivalents at January 1 Net cash provided (used) by operating activities Net cash provided (used) by investing activities Net cash provided (used) by financing activities Effect of exchange rate fluctuations on cash and cash equivalents held Cash and cash equivalents at December 31 1/ In the Financial Statements, reference will be made to the note number. As appropriate for each element of the Financial Statements.

SANCTIONS

Non-compliance with the provisions contained in this Manual shall be sanctioned in accordance with what is established in the Financial System Supervision and Regulation Law.

UNFORESEEN ASPECTS

Aspects not foreseen in regulatory matters in this Accounting Manual shall be resolved by the Central Bank through its Standards Committee.

EFFECTIVE DATE
This Accounting Manual for Investment Banks shall enter into effect starting on October 15, two thousand twenty-five.