Accounting Manual for Investment Fund Managers

THE COMMITTEE OF STANDARDS OF THE CENTRAL BANK OF RESERVE OF EL SALVADOR, CONSIDERING:
I. That Article 5 of the Investment Funds Law stipulates that the Superintendency of the Financial System is the administrative authority responsible for supervising Investment Fund Managers, their operations, and other participants regulated by the same.
II. That Article 6 of the Investment Funds Law assigns to the Central Bank of Reserve the issuance of the necessary Technical Standards to allow the application of said Law.
III. That Articles 25 letter b) and 91 of the Investment Funds Law establish that the accounting of Investment Fund Managers must be independent from the accounting of the Investment Funds they administer.
IV. That Article 31 of the Investment Funds Law defines that each Manager must publish in two newspapers of national circulation and on its website, its Financial Statements on June 30 and December 31 of each year; the latter accompanied by the external auditor's report.
V. That Article 99 letter c) of the Law on Supervision and Regulation of the Financial System establishes that the Committee of Standards of the Central Bank of Reserve is responsible for approving the Technical Standards for the elaboration, approval, presentation, and disclosure of the Financial Statements and supplementary information of the members of the financial system; the determination of accounting obligations and the principles according to which they must keep their accounting; and the establishment of criteria for the valuation of assets, liabilities, and the constitution of provisions and reserves for risks.

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

ACCOUNTING MANUAL FOR
INVESTMENT FUND MANAGERS

CONTENTS
CHAPTER I
GENERAL PROVISIONS
Comprises the general application provisions for the recognition, measurement, presentation, and disclosure of the operations of Investment Fund Managers.

CHAPTER II
ACCOUNTING FRAMEWORK
Comprises the accounting principles that Investment Fund Managers will apply to their own operations, which will be composed of sections indicating how to proceed for the accounting of regulated elements. Sections of the Chapter:
SECTION 1. Cash and Cash Equivalents
SECTION 2. Financial Instruments
SECTION 3. Derivative Financial Instruments
SECTION 4. Physical and Intangible Assets
SECTION 5. Specific Treatments Defined for the Presentation of Financial Statements
SECTION 6. Preparation and Publication of Financial Statements: Presentation and Disclosure

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
Models of Financial Statements.

CHAPTER VI
OTHER PROVISIONS AND VALIDITY

CHAPTER I
GENERAL PROVISIONS

INTRODUCTION
This "Accounting Manual for Investment Fund Managers," hereinafter the Manual, aims to define the set of standards that establish the procedures to be followed for the uniform and homogeneous recording of operations, preparation, and presentation of their Financial Statements, and the disclosure of their notes, thus constituting an essential tool for Investment Fund Managers, hereinafter Managers, for the integration of the Financial Statements, which must faithfully reflect the financial situation, results of operations, and management of the Managers, so that it becomes a useful instrument for the analysis of information and decision-making by administrators, shareholders, the Superintendency of the Financial System, hereinafter Superintendency; the Central Bank of Reserve of El Salvador, hereinafter Central Bank, investors, users of financial services, and the general public.

The Manual is based on basic concepts and principles whose purpose is to provide information that serves as a basis for decision-making and for which the following is required at a minimum:
a) Identify operations and events relevant to financial accounting; b) Formulate measurement criteria that allow the reasonable and logical recognition of the different elements of the Financial Statements; c) Record transactions using uniform policies; d) Classify information, incorporating financial data into a conceptual, logical, and useful framework; e) Present financial information periodically, so that it becomes an instrument of communication of financial accounting; and f) Interpret the information, which implies the explanation of the accounting process, uses, meanings, and limitations of the reports.

OBJECTIVES
2.1. General Objective
To provide a technical instrument for the uniform recognition, measurement, disclosure, and accounting presentation of economic events, based on accounting standards issued or accepted by the Central Bank.

2.2. Specific Objective
To have complete, timely, and homogeneous information on the financial and economic situation of the Managers, which contributes to decision-making by stakeholder groups.

SCOPE
The Manual consists of the General Provisions, the Accounting Framework, the Chart of Accounts, the Accounting Applications Manual, and the models of the Financial Statements.

Its application is mandatory for Investment Fund Managers authorized and supervised by the Superintendency for the management of their own operations as well as for the marketing of participation units of foreign investment funds.

PROCESS OF OPERATIONS AND ACCOUNTING SYSTEM
4.1. Processing of Accounting Operations
Managers subject to this Manual may process their accounting operations by the means they deem convenient, provided it allows for their analysis and supervision.
To this end, such Managers must present to the Superintendency, prior to the start of operations, the accounting information processing system they will use, for its respective verification and authorization. Likewise, when a change occurs in said system, they must present said change to the Superintendency. The documentary or electronic source of each accounting record must contain sufficient explanations about the operation being recorded.

4.2. Authorization and Modification of the Accounting System
The accounting system consists of the methods and records established to identify, analyze, classify, record, and report the transactions of the Managers.
It comprises:
a) The Chart of Accounts and Application Manual; b) Accounting records, supporting documents, and auxiliary records; c) The accounting processing involved from the initiation of a transaction until its inclusion in the Financial Statements; and d) The financial information process used to prepare the Manager's Financial Statements, including estimates and disclosures of important tables.

The minimum information to be detailed within the accounting system, for purposes of approval and modification, will be:

4.2.1. Description of the Accounting System
a) General information of the Manager: Legal Name or Denomination, Tax Identification Number (NIT), Taxpayer Registry Number (NRC), address, phone, and other relevant information; b) Data from the inscription of the deed of incorporation; c) Name and registration number of the external auditor; d) Accounting policies and procedures adopted, which consist of presenting the accounting policies and procedures the Manager will use, in accordance with the minimum disclosures required by this Manual and the applicable International Financial Reporting Standards; and e) Description of the notes to the Financial Statements to be prepared, in accordance with the minimum disclosures required by this Manual and Chart of Accounts for Investment Fund Managers and the applicable International Financial Reporting Standards.

4.2.2. Requirements of Accounting Records
a) Method of keeping accounting books. Legal accounting books will be kept in bound and paginated books, on separate paginated sheets, or other physical or electronic media; b) Nature of the system to be used. Description of the name and operating method of the computer system in which the accounting will be kept; c) Method of recording operations. Explain in what manner the operations will be recorded in the legalized accounting records; and d) Detail of auxiliary books to be kept and the method of recording operations in them.

4.2.3. Description of Computerized Information Systems
a) Design of the computerized accounting system. The content of this letter comprises a description of the method of recording, operating, and generating accounting records. b) Description of modules:
i. Name of the module;
ii. Implementation language;
iii. Objective of the module. General description of the main function of the specific accounting module;
iv. Main sub-modules with their respective explanation;

v. Reports issued by the module: on paper, screen, or magnetic files; and
vi. Indicate the name of the report, frequency of issuance, and its objective.
c) Description of databases:
i. Name of the database;
ii. Objective;
iii. Database manager with detailed version;
iv. Method of data capture: in this particular area, it must be specified whether the content of the database is generated by the system through automatic calculation or corresponds to information captured through the user;
v. Detailed description of fields including name, type, meaning, and use of the field; and
vi. Data dictionary.
d) Flowchart of modules and programs; the flowchart must show the data flow through the system and the interrelation between the steps of the process and the computer routines.

4.2.4. Security Measures
It will consist of an exposition of the measures to be taken internally to minimize the inherent risk existing for the different assets.

4.2.5. Additional Documentation
The following documentation must be attached in original and copy:
a) Source documentation to be used for the recording of operations including income notes, expense notes, journal vouchers, among others; b) Formats of main books, except for the books required by the Tax Code and its respective regulation; c) Formats of auxiliary books; d) Technical and operation manual of the computer system; and e) User manual of the computer system.

A photocopy of the payment receipt for the Commercial Registry of Company and Establishment must also be attached.
The Manager must incorporate and describe, in addition to the accounting system, other computer systems that affect the Manager's accounting records.

When the Manager, on a sufficiently reasoned and founded basis, decides to hire an independent company to handle its accounting, the Manager will define the profile of the company that will keep its records, which must be available to the Superintendency for its review; likewise, the Superintendency may conduct the respective inspection of the contracted company's computer systems to verify that they comply with the parameters established in this Manual and other applicable accounting provisions. This requirement will be applicable even when the accounting service is provided by a company within the same business group or financial conglomerate of the Manager, due to it being an outsourcing activity. Such company must ensure that it has the capacity to keep the Manager's accounting separately.

MODIFICATION OF THE MANUAL
The coding and openings established in this Manual must be respected in their entirety; therefore, no new elements, items, accounts, primary sub-accounts, and secondary sub-accounts different from those already established may be opened. Analytical sub-sub-accounts may be added after the ninth (9th) digit, provided they correspond to the nature of the account from which they originate and to the degree and detail they consider necessary for better recording and control of their operations.

When an operation or transaction originates that is not foreseen in this Manual, the Managers will communicate this to the Central Bank and the Superintendency, attaching the accounting criteria they intend to use. Along with the proposal for accounting treatment, as well as the accounts to be used, they will describe the transaction or event, indicating its quantitative impact on the Financial Statements and the reasons that, in the judgment of the competent administrative body, justify the proposed treatment.

The Superintendency will analyze what is proposed, and if the operation refers to a topic of application of the Accounting Manual, it will give a prompt response, sending a copy to the Central Bank; and if it is a topic of modification of the Manual, the proposed accounting application, if appropriate, will be approved by the Committee of Standards of the Central Bank.

Prior to the agreement of the Committee of Standards, the Managers must account for the operation or transaction temporarily in one of the "others" sub-accounts of the account proposed to be modified, and when the Central Bank agrees to approve the change to the Manual, the Manager must make the necessary adjustments, transferring the transaction from the account in which it was temporarily recorded to the corresponding approved one.

RESPONSIBILITIES
6.1. Accounting Records
The administration is responsible for the recording of the Manager's operations, from the preparation of vouchers, documents, records, and files of transactions, to the formulation of the Financial Statements and other reports for their corresponding analysis, interpretation, and corresponding accounting consolidation when applicable.

Therefore, it is the responsibility of the Administration the content of the Financial Statements, and it will be the responsibility of the Comptroller the technical preparation of the same.

The Manager must define the profiles that the personnel it hires to perform its accounting operations must meet, in order that the activities and operations it carries out are carried out efficiently and effectively.

6.2. Timeliness of Accounting Recording
The accounting of transactions will be carried out as they are effected, they will be recorded in chronological order and in the accounts whose title corresponds to their nature.

SENDING OF INFORMATION
7.1. Timeliness
The Manager will remit the corresponding information within the deadlines defined in this Manual. Lack of timeliness in sending will be sanctioned in accordance with what is established in the Law on Supervision and Regulation of the Financial System.

The Manager must designate a responsible official (as well as its respective substitute) to give timely compliance to the information requirements established in this Manual to be sent to the Superintendency.

7.2. Frequency
7.2.1. Monthly, Semi-Annual, and Annual Financial Information
The Manager must obligatorily present monthly financial information, which must be delivered to the Superintendency, within eight (8) business days, counted from the last day of the reported month.

When it comes to Trial Balances and information relating to the months of June and December of each year, Managers will remit electronically within thirty (30) calendar days following the month corresponding the definitive information. The foregoing does not mean that the provisional information of said months does not have to be presented within the stipulated deadline in the first paragraph.

The Manager must present its monthly, semi-annual, and annual Financial Statements to the Superintendency, in the formats, deadlines, periodicity, and under the grouping rules dictated in this Manual. These Financial Statements are the only valid for all effects, whether for approval in the General Shareholders' Meeting, inclusion in the annual report, and publication in the press or for any other type of dissemination in the country or abroad, with the exception of the Financial Statements that must be prepared for tax purposes, while there are fiscal criteria that differ from what is established in this Manual.

The semi-annual or annual Financial Statements, such as: Balance Sheet, Statement of Comprehensive Income, Statement of Changes in Equity, Statement of Cash Flows, and the notes thereto, that are sent to the Superintendency, must be presented obligatorily with the signatures of the Comptroller, President, or Legal Representative.

The Financial Statements described in the preceding paragraph, which correspond to the month of December, must be presented obligatorily with the aforementioned signatures as well as with the signature of the external auditor and their corresponding stamps.

The Manager must communicate to the Superintendency the names, signatures, and positions of the persons authorized to sign the Financial Statements, within the first fifteen (15) business days of the appointment being made.

Table No. 1. Frequency of Presentation of Financial Statements
Frequency Models Designation
Semi-Annual 1 Balance Sheet
Semi-Annual 2 Statement of Comprehensive Income Semi-Annual 3 Statement of Changes in Equity Semi-Annual 4 Statement of Cash Flows Semi-Annual Notes to the Financial Statements Monthly Trial Balance

From the previous table, the Trial Balance will be the only one that will be sent to the Superintendency through electronic means according to the mechanisms that it informs by means of circular.

7.3. Mechanisms
The Superintendency will send to the subjects of application of this Manual, with a copy to the Central Bank, the technical details related to the sending of the information requested in this Manual, within a maximum period of thirty (30) calendar days following the authorization of these Standards. The aforementioned requirements in no case imply adding accounts to those already established in this Manual or modifying it.

7.4. Procedures
The Financial Statements must be presented according to the provisions established in this Manual.
In order to guarantee that the sending of the Financial Statements is carried out free of arithmetic errors or in the structure of the file, the Manager must perform validations prior to its files, in the programs provided by the Superintendency.

The technical characteristics of the files, as well as the transmission medium and report, will be mandatory compliance by the Manager.

7.5. Level of Detail
The minimum accounting information to be sent to the Superintendency will comprise sub-accounts up to nine (9) digits; as established in Chapter III of the Chart of Accounts, numeral 1, Description of the coding method, without prejudice to norms requiring a greater level of detail.

CLOSURE OF THE ECONOMIC YEAR
The economic and accounting period will comprise from January 1 to December 31 of each year.
RECORDS
9.1. Accounting Books
The movement and balance of the accounts will be recorded in the main books and the sub-accounts in auxiliary books that are considered necessary.

The main books that must be legalized are the following:
a) Journal Book;

b) General Ledger; and c) Financial Statements Book.

In the event that the Manager considers it convenient and necessary, they may legalize the Daily Book and the General Ledger in a single Daily-General Book.

Accounting records must comply with what is established in the Commercial Code.

The figures entered in the main books and in the auxiliary books must be presented in absolute values including cents with two decimal places.

The Financial Statements entered in the respective Book must be presented in a comparative manner with the figures from the same period of the previous year.

9.2. Tax Books

The Manager must keep the books required by law, in accordance with the Law on Tax on the Transfer of Real Property and the Provision of Services, which must comply with what is established in the Tax Code and its respective implementing regulation.

The Tax Books are:
a) Purchase Registration Book; b) Sales to Taxpayer Registration Book; and c) Sales to Consumer Registration Book.

9.3. Administrative Books

The Manager must keep, legalize, and complete, in addition to the accounting and tax books, the administrative books required by the Commercial Code, as follows:
a) Minutes of the General Shareholders' Meeting Book; b) Board of Directors Minutes Book; and c) Shareholders Registration Book.

In the case of the minutes of the General Shareholders' Meeting and the Board of Directors, in addition to complying with what is stipulated in the Commercial Code, they must be entered in the corresponding Legal Books.

All of the above without prejudice to other legal records that may be required by regulations issued by the Central Bank or by another competent authority.

INTERNAL CONTROL APPLIED TO ACCOUNTING RECORDS

The Manager will establish internal control systems aimed at reasonably ensuring the reliability of accounting records, as well as the correct integration of operations.

The internal control system may contain aspects such as:
a) Accounting records with the necessary detail of the characteristics of assets, liabilities, equity, income, and expenses, so that all information contained in the different statements to be submitted can be clearly derived from them, which will maintain the necessary correlation both among themselves, when applicable, and with the accounting basis; b) Auxiliary detail of the composition of the balance of each of the accounting sub-accounts, in order to have an adequate integration of the records; c) Inventory or details of the different items, independent of the books of an obligatory nature required by Salvadoran legislation; and d) Independent of the accounts specified to form the Financial Statements, the details deemed necessary for the preparation of the rest of the complementary informative statements will be established, also developing an analytical accounting that provides sufficient information for the calculation of costs and returns of the different centers, business lines, or other aspects of interest for adequate management control.

REGISTRATION AND ARCHIVING OF ACCOUNTING DOCUMENTATION

The operations registered in the books mentioned in paragraph 9 must be backed by the corresponding documentation and comply with what is established in the Commercial Code. Such operations will be entered as they are carried out, without prejudice to the sanctions, fines, and others that the Managers may incur for such delays in accordance with applicable legal norms.

The Manager must archive the documentation backing its operations, in chronological order, including the Financial Statements prepared monthly and the Trial Balances.

The Manager is obliged to conserve the records of its business in general as well as its Financial Statements, according to the deadlines established in Art. 451 of the Commercial Code.

CONCEPTUAL FRAMEWORK OF ACCOUNTING

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; and

c) International Financial Reporting Standards, provided that they develop topics for which there is no Salvadoran regulation.

When the Manager applies International Financial Reporting Standards, they will use those issued by the International Accounting Standards Board (IASB), translated into Spanish, 2013 version, and in accordance with what is established in letter c) of this paragraph.

When international standards provide different treatments for the same economic event, the Manager will use the most prudent treatment among those established in said Standards.

When the IASB approves new IFRS or modifies the 2013 version, these cannot be applied by the Manager unless so indicated by the Central Bank.

Accounting will be developed applying the accounting criteria and fundamental characteristics indicated below:

12.1. Fair Presentation

Financial Statements must be drafted clearly, so that the information provided is understandable and useful for users in making their economic decisions, and must represent the fair image of the phenomena it intends to materialize, the equity, the financial situation, and the comprehensive results of the Manager, in accordance with legal and regulatory provisions.

The systematic and regular application of the requirements, principles, and accounting criteria included in the following subsections must lead to the Financial Statements representing the fair image of the equity, the financial situation, and the results of the Manager. To this effect, in the accounting of operations, attention will be paid to their economic reality and not only to their legal form.

When it is considered that compliance with the requirements, principles, and accounting criteria included in this Manual is not sufficient to represent the fair image, the complementary information necessary to achieve this objective will be provided in the notes to the Financial Statements.

In those exceptional cases where such compliance would be incompatible with the fair image that Financial Statements must provide, such application will be considered inappropriate.

In such cases, this circumstance will be sufficiently reasoned in the notes to the Financial Statements, and its influence on the equity, the financial situation, and the results of the Manager will be explained.

12.2. Requirements of the Information to be Included in Financial Statements

The information included in the Financial Statements must be relevant and reliable.

Information is relevant when it is useful for making economic decisions, that is, when it helps to evaluate past, present, or future events, or to confirm or correct evaluations made previously. In particular, to meet this requirement, Financial Statements must adequately show the risks to which the Manager is exposed.

Information is reliable when it is free from material errors and is neutral, that is, free from bias, and users can trust that it is the fair image of what it intends to represent.

A quality derived from reliability is completeness, which is achieved when financial information contains, in a complete manner, all data that can influence decision-making, without any omission of significant information.

Additionally, financial information must comply with the qualities of comparability and clarity.

Comparability is the quality that financial information has to be able to compare it over time. Information will be formulated with related criteria of identification, valuation, recording, and presentation that allow the possibility of comparing the financial situation, the results achieved, and the compliance with legal provisions of the Manager in different periods or with other similar Managers, with the aim of facilitating the analysis, evaluation, supervision, and audit of management and adequate accountability.

On the other hand, clarity implies that, based on a reasonable knowledge of economic activities, accounting, and corporate finance, users of Financial Statements, through a diligent examination of the information provided, can form judgments that facilitate decision-making.

12.3. Accounting Principles

The Manager's accounting and, in particular, the recording and valuation of the elements of the Financial Statements, will be developed by applying the accounting principles and fundamental hypotheses indicated below:

12.3.1. Going Concern

The management of the entity will be considered indefinite. Financial Statements must be prepared based on the going concern hypothesis. Consequently, the application of accounting principles will not be aimed at determining the value of equity for the purpose of its global or partial alienation nor the resulting amount in case of liquidation.

If Financial Statements are not prepared on the basis of going concern, such circumstance must be revealed along with the alternative criteria that have been used and the reasons why the Manager cannot be considered as a going concern. Such revelation will also take into account what is provided in the technical standard that will be issued on the merger and liquidation of Investment Fund Managers.

12.3.2. Accrual

The effects of transactions or economic events will be recorded when they occur, attributing to the fiscal year to which the annual Financial Statements refer, the expenses and income that affect it, regardless of the date of their payment or collection.

12.3.3. Uniformity

Once a criterion has been adopted in the application of Accounting Principles within the alternatives that, in their case, allow it, it must be maintained over time as long as the assumptions that motivated the choice of said criterion are not altered.

If for justified cause these change, the affected Financial Statements will be accompanied by an explanatory note that allows appreciating the origin of the new criteria and their quantitative and qualitative effect on equity, results, and total assets. Likewise, such changes and their effects will be recorded in the notes to the Financial Statements.

12.3.4. Prudence

It will prevail over any other principle in case of conflict. Care must be taken in the estimates and valuations to be made under conditions of uncertainty.

Prudence does not justify that the valuation of equity elements does not respond to the fair image that Financial Statements must reflect.

Likewise, benefits obtained up to the closing date of the fiscal year will be accounted for. On the contrary, all risks, originating in the fiscal year or in a previous one, must be taken into account as soon as they are known, even if they are only known between the closing date of the annual Financial Statements and the date on which they are formulated. In such cases, complete information will be given in the notes to the Financial Statements, without prejudice to its reflection, when a liability and an expense have been generated, in other documents comprising the annual Financial Statements.

Therefore, it is necessary to include a certain degree of caution in the exercise of judgments necessary to make the estimates required under conditions of uncertainty.

Amortizations and value corrections for impairment of assets must be taken into account, whether the fiscal year ends with a profit or a loss.

Exceptionally, if risks are known between the preparation and before the approval of the Financial Statements and significantly affect the fair image, the Financial Statements must be prepared again.

12.3.5. Non-compensation

Under no circumstances can items of assets and liabilities of the Balance Sheet, nor items of expenses and income of the Statement of Comprehensive Income, be offset, unless specifically permitted or required by IFRS, which must be reported to the Superintendency. When this happens, it must be revealed in a note to the Financial Statements.

12.3.6. Materiality

Each item that possesses sufficient relative importance must be presented separately in the Financial Statements. Items of insignificant amounts must appear grouped with others of similar nature or function, provided that they are not required to be presented separately.

The strict application of some of the accounting principles and criteria will be admitted when the relative importance in quantitative or qualitative terms of the variation that such fact produces is scarcely significant and, consequently, does not alter the expression of the fair image.

In cases of conflict between accounting principles, the one that best leads to the Financial Statements expressing the fair image of the equity, the financial situation, and the comprehensive results of the Manager shall prevail.

CHAPTER II
ACCOUNTING FRAMEWORK
SECTION 1
CASH AND CASH EQUIVALENTS

OBJECTIVE

This Section aims to establish the specific elements that help identify whether a financial asset meets the conditions to be presented in the Balance Sheet as cash or cash equivalents.

SCOPE

This Section applies to financial items that the Manager presents in its Balance Sheet as cash and cash equivalents.

DEFINITIONS

For the purposes of this Section, cash and cash equivalents are understood as follows:
a) Cash: cash on hand and demand bank deposits; and b) Cash Equivalents: short-term investments of high liquidity that are readily convertible to known amounts of cash, are subject to an insignificant risk of changes in value, and are held to meet short-term payment commitments. Their maturity is less than or equal to ninety (90) calendar days from the date of acquisition.

The criteria that define cash equivalents are as follows:
a) The investments are short-term; b) They are investments of high liquidity; c) They are readily convertible to known amounts of cash; d) They are subject to an insignificant risk of changes in value; and e) Financial instruments are held to meet short-term payment commitments rather than for investment purposes.

RECOGNITION

Cash and cash equivalent items will be recognized by the Manager in accordance with what is indicated in Section 2 "Financial Instruments".

MEASUREMENT

Cash will be measured at the date of its initial recognition at its fair value, that is, the cash amount received and subsequently at its amortized cost, understood as the initial amount plus yields minus amortizations, minus service charges or others that apply and that affect the initially recognized amount, either increasing or decreasing it.

Cash equivalents will be initially measured at their fair value plus, in the case of those measured subsequently at amortized cost, the transaction costs incurred on the date of their acquisition.

Subsequently, they will be measured based on amortized cost or fair value, whichever applies, taking into consideration the business model established by management for such instruments and the characteristics of their contractual cash flows.

On the other hand, financial items denominated in a foreign currency are converted at the prevailing buying exchange rate on the date of the Financial Statements. A foreign currency will be understood as a currency different from the Manager's functional currency.

PRESENTATION

Cash and cash equivalents are presented at their amounts representing their fair values or amortized costs, depending on the measurement applied to them.

SECTION 2
FINANCIAL INSTRUMENTS

OBJECTIVE

This Section aims to establish the financial criteria to be applied for the recognition, measurement, presentation, and disclosure of investments in financial instruments, both financial assets and financial liabilities.

SCOPE

This Section applies to investments in financial instruments other than the following:
a) Financial derivative instruments; b) Contracts and obligations arising from transactions with payments based on the value of shares; c) The rights and obligations of employers arising from employee benefit plans; d) Interests in subsidiaries, associates, or joint ventures; e) Rights and obligations arising from lease contracts; f) Rights and obligations arising from an insurance contract; and g) Loan commitments.

DEFINITIONS

For the purposes of this Section, the terms indicated below have the following meaning:

a) Financial Assets: any asset that is cash, an equity instrument of another entity, or implies a right to receive cash or another financial asset; or to exchange financial assets and liabilities with third parties under favorable conditions and any contract that can be settled with equity instruments; b) Conventional Purchase or Sale of a Financial Asset: is the purchase or sale of a financial asset under a contract or agreement, the terms of which require its delivery within the time generally established by regulation or convention in the relevant market where the transaction has taken place. The settlement of these contracts or agreements will be carried out gross, not allowing or requiring the net settlement of the change in value in the contract; c) Amortized Cost of a Financial Asset or Financial Liability: is the initial measure of said asset or liability minus principal repayments, plus or minus the accumulated amortization -calculated using the effective interest rate method- of any difference between the initial amount and the repayment value at maturity and minus any decrease in value or uncollectibility that has been recognized directly or through the use of a contra account; d) Financial Instrument: is any contract that gives rise to a financial asset in one entity and to a financial liability or an equity instrument in another entity; e) Trade Date Method: method consisting of recognizing or derecognizing a financial asset on the date that the Manager agrees to buy or sell it; f) Effective Interest Rate Method: is a method of calculating the amortized cost of a financial asset or liability or a group of financial assets or liabilities and of allocating financial income or expense over the relevant period; g) Financial Liability: is any liability that signifies a contractual obligation to deliver cash or another financial asset; or to exchange financial assets or liabilities with third parties under conditions that are potentially unfavorable and any contract that can be settled with equity instruments; h) Continuing Involvement in Assets: if a Manager does not transfer or retain substantially all the risks and rewards inherent in the ownership of a transferred asset and retains control over it, it will continue to recognize the transferred asset to the extent of its continuing involvement; i) Effective Interest Rate: is the discount rate that exactly discounts estimated future cash payments or receipts throughout the expected life of the financial instrument to the net carrying amount of the financial instrument, based on its contractual terms and without considering future credit loss risks; j) Ordered, Arranged, or Organized Transaction: is a transaction that assumes exposures in the market for a period prior to the measurement date, including usual and customary trading activities for transactions incorporating such assets or liabilities. The foregoing does not refer to a forced transaction such as a forced liquidation or a sale
under financial difficulties; and

k) Fair Value: is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, informed individuals who participate freely and independently, on the measurement date.

INITIAL RECOGNITION
The Manager shall recognize a financial asset or a financial liability in its Balance Sheet only when it becomes a party to the contractual provisions of the instrument.
Conventional purchases or sales of financial assets shall be recognized applying the trade date method.
RECOGNITION OF FINANCIAL ASSETS APPLYING THE TRADE DATE METHOD
The trade date method requires that the Manager apply the following:
a) In the case of a purchase, to recognize the asset to be received and the liability to be paid for it on the trade date; and b) In the case of a sale, to derecognize the sold asset against the corresponding receivable account and recognize the gain or loss on the disposed asset on the trade date. Changes in the fair value of a financial asset sold conventionally are not recorded in the Financial Statements between the trade date and the settlement date, even if the entity applies settlement date accounting, because the seller's right regarding changes in fair value ceases on the trade date. Interest does not begin to accrue or be earned on the acquired asset and the corresponding liability until the settlement date, when the title is transferred.
CLASSIFICATION OF FINANCIAL ASSETS
The Manager must classify its financial assets on the date it first recognizes them, taking into account the following:
a) The basis or objective of the business model for managing financial assets; and b) The characteristics of the contractual cash flows of the financial asset.
Having determined the above, the Manager shall classify financial assets, according to their subsequent measurement, at amortized cost or at fair value, the latter taken from any of the sources established in paragraph 12 of this Section.

A financial asset shall be measured at amortized cost if both of the following conditions are met:
a) The asset is held within a business model whose objective is to hold assets to obtain contractual cash flows; and b) The contractual terms of the financial asset give rise, on specified dates, to cash flows that are solely payments of principal and interest on the principal amount outstanding.

CLASSIFICATION OF FINANCIAL LIABILITIES
The Manager must classify its financial liabilities, when first recognized, as subsequently measured at amortized cost, applying the effective interest rate method, except for the following financial liabilities:
a) Financial liabilities classified mandatorily at fair value with changes in profit or loss; subsequent to initial measurement, they shall be measured at their fair value; b) Financial liabilities that arise when the transfer of a financial asset does not qualify for derecognition; they shall be recognized at an amount equal to the consideration received; and c) Financial liabilities that arise from the continuing involvement in assets; they shall be measured on the basis that reflects the obligations that the Manager has retained or assumed. The associated liability is measured such that the net amount of the transferred asset and the net amount of the associated liability is:
i. The amortized cost of the rights and obligations retained by the Manager, if the asset is measured at amortized cost; or
ii. Equal to the fair value of the rights and obligations retained by the Manager, when measured independently, if the transferred asset is measured at fair value.
RECLASSIFICATION OF FINANCIAL ASSETS
When the Manager changes its business model or objective for managing its financial assets, it shall reclassify all affected financial assets in accordance with paragraph 6 of this Section. If the Manager reclassifies financial assets in accordance with the first paragraph of this paragraph, it shall apply such reclassification prospectively from the date on which it is performed. The Manager shall not restate gains, losses, or interest previously recognized. If, in accordance with the first paragraph of this paragraph, the Manager reclassifies a financial asset so that it is subsequently measured at fair value, this value shall be determined on the date of reclassification. Any gain or loss arising from differences between the previous book value and the fair value shall be recognized in profit or loss. If, in accordance with the first paragraph of this paragraph, the Manager reclassifies a financial asset so that it is subsequently measured at amortized cost, its fair value on the date of reclassification shall become its new book value. The date of reclassification of financial assets occurs on the first day of the next accounting period following that in which the Manager decided to change its business model.
INITIAL MEASUREMENT
When a financial asset or a financial liability is initially recognized, they shall be measured at their fair value.
When financial instruments are initially recorded at an amount different from fair value, transaction costs directly related to their acquisition shall be added to or subtracted from it, respectively. If it turns out that the fair value of the acquired financial asset or liability differs from the transaction price, then the Manager shall proceed to recognize the difference between the fair value on the date of initial recognition and the transaction price as follows:
a) If that fair value is obtained with a quoted price in an active market for an identical asset or liability or is based on methodologies that use only data from observable markets, the Manager shall recognize the difference as a gain or loss; and b) In other cases, to defer the difference between the fair value at the time of initial recognition and the transaction price. After initial recognition, the Manager shall recognize that deferred difference as a gain or loss only to the extent that it arises from a change in a factor, including time, that market participants would take into account when setting the price of the asset or liability. When subsequent measurement of the financial asset is at fair value with changes in other comprehensive income or amortized cost, transaction costs directly related to its acquisition shall be added. When subsequent measurement of the financial liability is at amortized cost, transaction costs directly related to the issuance or assumption of the financial liability shall be subtracted.

SUBSEQUENT MEASUREMENT OF FINANCIAL ASSETS
Financial assets that are subsequently measured at fair value after recognition shall be classified as:
a) Financial assets held for trading: comprises financial instruments acquired and managed within a business model that reflects active and frequent purchases and sales and whose purpose is to generate profits in the short term from price fluctuations or from trading margins. The effects of changes in fair value are taken directly to profit or loss; and b) Equity instruments with changes in fair value presented in other comprehensive income: these sub-category includes equity instruments that the entity has chosen on an irrevocable basis from initial recognition, to present subsequent changes in the fair value of those, which are within the scope of this Section and are not held for trading, in other comprehensive income. The amounts presented in other comprehensive income shall not be transferred subsequently to profit or loss. Realized gains or losses shall be transferred to profit or loss upon application. Financial assets for which the Manager has an objective, according to its business model, to recover its contractual cash flows of capital and interest, shall be subsequently measured at amortized cost after recognition, using the effective interest rate method.
SUBSEQUENT MEASUREMENT OF FINANCIAL LIABILITIES
The subsequent measurement of financial liabilities shall be carried out as defined in paragraph 7 of this Section.
OBTAINING FAIR VALUE
For the purpose of establishing the measurement of financial instruments, the Manager must obtain the respective prices from the following sources:
a) In the case of financial instruments from local issuers, the prices provided by a specialized agent in securities valuation; b) In the case of financial instruments from foreign issuers, the prices provided by a specialized agent in securities valuation or an international stock or financial information system recognized by the Superintendency; and c) Regarding financial instruments whose prices cannot be obtained from any of the sources cited above, the Manager may define its own methodology for valuing such instruments, which must be available at any time for the Superintendency.

For the purpose of recognition of international stock or financial information systems, this shall be carried out in accordance with the technical standards that the Central Bank dictates for such effect.

IMPAIRMENT OF INVESTMENTS CLASSIFIED AT AMORTIZED COST
13.1. Identification
The evaluation of these financial assets, for the purpose of identifying whether any impairment loss has occurred, shall be carried out as follows:
a) If the financial assets have a price provided by any of the sources cited in letters a) and b) of paragraph 12, that price shall be the fair value that will be compared with the book value, to determine if there is any impairment loss. If the instrument's price presents fluctuations that correspond only to normal market conditions, then the book value is not adjusted; and b) For financial assets for which it is not possible to obtain a price from the sources defined in letters a) and b) of the previous paragraph 12, the Manager must establish in its financial policies the necessary methodology to determine whether an impairment loss has occurred or is expected to occur based on the expectation of credit risk incorporated in such instruments, as well as the elements that allow determining the amount of the impairment loss incurred or expected or of the future flows that are expected to be recovered or lost. In any case, such policies must incorporate the obligation to evaluate financial assets held at amortized cost, whenever there is evidence or indications that some impairment has occurred in these assets or to perform at least an annual evaluation at the end of each accounting period, whichever occurs first, leaving duly documented as evidence that it has been performed and in compliance with the policies established by the Administration.

13.2. Causes
As established in paragraph 13.1, impairment losses of a financial asset measured at amortized cost shall be integrated by:
a) The impairment loss originating from objective evidence of events that have occurred after the initial recognition of the asset and that indicate that an impairment loss has occurred; plus b) The amount of expected losses in the portfolio, which exceeds the amount constituted according to the previous letter, whose estimates shall be based on the qualitative and quantitative criteria incorporated in the methodology that the Manager has developed for the calculation of such loss estimates.

The estimates recognized in the Balance Sheet must be equal to or greater than the expected losses and these cannot be less than the incurred losses.

13.3. Examples
Regarding letter a) of paragraph 13.2, examples of events that indicate or may indicate that a value loss has occurred are the following:
a) Financial difficulties of the issuer or the obligor; b) Defaults on contractual clauses, such as non-payment or delays in the payment of interest or principal; c) Concessions or advantages granted by the entity to the debtor, who is the issuer of the instrument under evaluation, for economic or legal reasons related to the financial difficulties of the latter, which it would not have granted otherwise; d) Increased probability that the debtor falls into a situation of insolvency or liquidation or in any other situation of financial reorganization; e) The disappearance of an active market for the financial instruments in question, due to financial difficulties; and f) Observable data indicates that there is a measurable decrease in the estimated future cash flows in a group of financial instruments since the initial recognition of those, although the decrease cannot yet be identified with individual assets of that group of assets. If in a subsequent period, the amount of the impairment loss decreases and such decrement can be objectively related to an event occurring after the accounting recognition of the impairment, it must be reversed. The reversal shall not result in a book value of the financial asset that exceeds the amortized cost that would have been determined if no impairment loss had been accounted for on the date of reversal. The amount of the reversal shall be recognized in the result of the period.

DERECOGNITION OF FINANCIAL ASSETS
The Manager shall derecognize a financial asset, or a portion thereof, when the contractual rights to cash flows expire or the financial asset is transferred and the transfer meets the requirements for derecognition. It shall be considered that the Manager has transferred a financial asset if it has transferred or retained the contractual rights to receive cash flows from a financial asset, but assumes the contractual obligation to pay them to one or more buyers of the transferred asset. In the latter case, it shall be assumed that the Manager has transferred the asset if the following three conditions are met:
a) The Manager is not obligated to pay any amount to eventual buyers, unless it collects equivalent amounts from the original asset. Short-term advances made by the Manager, with the right to recover the total amount plus interest at market rates, do not violate this condition; b) The Manager is prohibited, according to the terms of the transfer contract, from selling or pledging the original asset, except as security for payment of the cash flows committed to eventual buyers; and c) The Manager is obligated to remit, without significant delay, any cash flow that it collects on behalf of the eventual buyers. Furthermore, the Manager is not authorized to reinvest the cash flows. Upon derecognizing a financial asset in its entirety, the difference between the book value determined on the date the financial asset is derecognized and the sum of the benefits received, including any new financial asset obtained, less any new liability assumed, shall be recognized in profit or loss. If the transferred asset is part of a larger financial asset and the transferred part meets the requirements for derecognition in its entirety, the original book value of the larger financial asset shall be distributed between the part that continues to be recognized and the part that has been derecognized, based on the relative fair values of said parts on the date of the transfer. The difference between:
a) The book value measured on the date of derecognition attributable to the part that has been derecognized; and b) The consideration received for the part derecognized, including new assets obtained less new liabilities assumed, shall be recognized in the result of the period.
FINANCIAL ASSETS MANAGED UNDER A BUSINESS MODEL OF ACTIVE AND FREQUENT PURCHASES AND SALES
15.1. Special Conditions
Financial assets under a business model that reflects active and frequent purchases and sales and whose purpose is to generate profits in the short term from price fluctuations or from trading margins, must meet the basic requirements described below:
a) There must be a clearly documented trading strategy for financial assets, approved by the competent authority, in accordance with the Manager's policies; b) There must be clearly defined policies and procedures for active position management, to ensure that:
i. Positions are managed by a trading team;
ii. Limits are set on positions and monitored to verify their adequacy; and
iii. The personnel in charge of trading must have autonomy to take or manage positions within the agreed limits and respecting the agreed strategy;
c) Positions must be valued daily; consequently, the classification of financial assets in this model requires that they have price quotes in an active market; d) The Manager must indicate which of the sources provided in paragraph 12 is the provider of the market price and in case that the same source provides a diversity of prices on the same instrument, the Manager must indicate which price of the available ones it has taken; e) The Manager must include in its risk management policy the sources provided in paragraph 12, the one applied, for the determination of prices of its investment portfolio. In the case that the same source used provides various prices for the same instrument, the Manager must define, within the indicated policies, the prices it will use to establish the value of the portfolio and the reasons that have defined such selection; f) The Manager will incorporate in its financial or risk management policies the criteria that will define whether a price fluctuation in the market is normal or not; g) The Board of Directors shall be informed of the positions held as an integral part of the risk management process; h) Active monitoring of positions with reference to market information sources shall be carried out; and l) Monitoring of the volume of operations and of the positions expired in the Manager's trading portfolio shall be carried out.

15.2. Recording of Changes in Fair Value
Any gain or loss arising from a change in fair value shall be included in the net gain or loss of the period. Book applications shall be made on each Balance Sheet date or at least monthly, whichever occurs first.

15.3. Exchange Differences
Gains or losses arising from exchange rate differences on monetary or non-monetary financial assets and that are denominated in foreign currency and that have not been

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CNBCR-13/2015
NDMC-04
ACCOUNTING MANUAL FOR INVESTMENT FUND MANAGERS Approval: 12/08/2015 Validity: 01/09/2015 designated as hedging instruments in a cash flow hedge or a net investment hedge, shall be recognized in the period's results.

FINANCIAL ASSETS AT FAIR VALUE WITH CHANGES IN OTHER COMPREHENSIVE INCOME
Financial assets classified in this subcategory are equity instruments that the entity has irrevocably elected, from initial recognition, to present subsequent changes in fair value of such instruments in other comprehensive income. Dividends from these investments shall be recognized in results when the entity's right to receive the dividend payment is established, unless they, evidently, represent a partial recovery of the investment cost.

16.1. Exchange Differences
The gain or loss from exchange rates recognized in equity instruments that the entity irrevocably elects to present changes in other comprehensive income shall also be presented in said account.

FINANCIAL ASSETS MANAGED UNDER A BUSINESS MODEL WHOSE PURPOSE IS TO RECOVER CONTRACTUAL CAPITAL AND INTEREST FLOWS FROM THEM

17.1. Recording of Gains or Losses of Financial Assets Measured at Amortized Cost
Changes in the value of financial assets managed under a business model whose objective is to recover contractual capital and interest flows shall not be recognized, unless they indicate that the asset has been impaired and such effect requires correction of the book value. Additionally, the book value of the financial asset shall be affected by the amount of expected loss established by the Manager that exceeds the amount of incurred loss. For those financial assets measured at amortized cost, a gain or loss shall be recognized in the net results of the period through the amortization process, for impairment which will include expected loss estimates constituted, when they cause derecognition or when they are reclassified according to the first clause of paragraph 8 of this Section.

PRESENTATION
Items shall be presented according to their economic form rather than their legal form, and for identification, they are grouped into concepts enabled for recording within the Account Catalog developed for this purpose. An asset and a financial liability shall be offset, so that they are presented in the Balance Sheet at their net amount, only when the Manager:
a) Has the currently enforceable legal right to offset the recognized amounts; and b) Intends to settle the net amount, or to realize the asset and cancel the liability simultaneously.
In the accounting of a transfer of a financial asset that does not meet the conditions for derecognition, the Manager shall not offset the transferred asset with the associated liability.

SECTION 3
FINANCIAL DERIVATIVE INSTRUMENTS

OBJECTIVE
This Section aims to establish accounting criteria to be applied for the recognition, measurement, presentation, and disclosure of financial derivative instrument contracts acquired by the Manager that have the exclusive purpose of risk management through hedging accounting.
SCOPE
This Section applies to financial derivative instrument contracts acquired for risk management purposes and whose underlying assets are of interest rate type, exchange rate type, debt financial instruments, equity instruments, among others. Basic financial derivative instruments that may be used to fulfill what is stipulated in this Section are, for example:
a) Forward contracts; b) Futures contracts; c) Basic options contracts; and d) Financial swaps or interest rate or currency swaps.

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-13/2015
NDMC-04
ACCOUNTING MANUAL FOR INVESTMENT FUND MANAGERS Approval: 12/08/2015 Validity: 01/09/2015 Furthermore, such instruments are acquired for the purpose of managing financial risks; it is foreseen that they, at retrospective evaluation dates, might cease to meet the essential requirements for designation as a financial risk hedging item, which will not imply that they are withdrawn from the scope of this Section.

DEFINITION
A derivative is a financial instrument that presents the following characteristics:
a) Its value changes in response to changes in an observable market variable, such as interest rate, exchange rate, price of a financial instrument, or a market index, including credit ratings; b) Its net initial investment is zero or very small in relation to other contracts with similar response to changes in market conditions; and c) It is settled at a future date.
BASIC CRITERIA TO BE OBSERVED FOR ACQUIRING FINANCIAL DERIVATIVE INSTRUMENTS
The Manager must enter into a negotiation of financial derivative instruments only if it knows one hundred percent the functioning of the instruments and has the necessary means for their recognition, valuation, measurement, and capacity to ensure compliance with the criterion taken to value the instrument to be acquired. If the foregoing is not met, it shall not enter into negotiations of such instruments. The verification of the valuations of the instruments must be performed by the acquiring Manager. To ensure compliance with this criterion, the provision in the previous clause must be met, such that the price provided by the instrument issuer can be verified internally through the application of independent financial tools. Financial derivative instruments must be acquired solely for the management of financial risks, and Managers must implement strict risk management policies that explicitly indicate the types of instruments to be contracted in accordance with the provisions of this Section and for what purposes they will be acquired, which cannot be for purposes other than mitigating their assumed risks. Financial derivative instruments must be acquired only if the Manager proves, for the purposes of managing its risks, that the risk exposure intended to be covered is appropriately compensated by the value changes of the intended hedging item; for this purpose, the Manager must establish a methodology that allows it to develop the relevant evaluation, through which to conclude whether the intended operation meets or does not meet hedging objectives. Such methodology shall be available to the Superintendency for verification of its compliance.

RECOGNITION
The Manager must recognize the contract of a financial derivative instrument on the date it becomes part of the contractual agreements of the acquired instrument. On the contract date, the Manager shall recognize either a financial asset or a financial liability. The amount thereof shall be subject to the conditions under which the transaction was contracted. Generally, on the recognition date, the value of these contracts will be zero unless the transaction corresponds to a derivative that gives rise to an option or the originated contract was acquired under conditions within the stock market or an unorganized market according to the underlying fixed to establish the value of the instrument.
INITIAL MEASUREMENT
Financial derivative instrument contracts shall be initially measured at their fair value, which, unless evidence to the contrary exists, shall be the transaction price. Transaction costs attributable to the acquisition of these instruments shall be applied to the period's results on the contracting date. See Section 2 “Financial Instruments” for further expansion on initial measurement. The nominal (notional) amount of these contracts, when it exists, i.e., the amount established to measure the costs or benefits to be paid or received by the transaction, shall be incorporated from the contract date into off-balance sheet accounts known as order accounts, established for such purposes.
SUBSEQUENT MEASUREMENT
The contract shall be subsequently measured at its fair value, which shall be established by the acquiring Manager of the instrument, either by using valuation models that use as a source the basic inputs, which for the type of instrument being valued are appropriate, either according to market practice, where they are issued, or according to the practice developed by the Manager, which must demonstrate that it is at least equal to or more conservative than that originated by the contract issuer. When the case arises that the Manager's valuation is higher than the counterparty's, the lower measurement shall be taken. In the case that the derivative instrument was acquired in an unorganized market (OTC), the Manager must submit to the Superintendency the methodology applied to establish the fair value for verification and inform whenever it is modified. Such methodology shall

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-13/2015
NDMC-04
ACCOUNTING MANUAL FOR INVESTMENT FUND MANAGERS Approval: 12/08/2015 Validity: 01/09/2015 contain the relevant detail that allows understanding of how the values affecting the Balance Sheet books and the Manager's results have been obtained, and must be incorporated into the Manager's risk management policies. For the case of instruments acquired in unorganized markets (OTC), the lower price established between the issuer's price and the price determined by the institution shall be considered. If the prices of the acquired products were available in any of the sources cited in paragraph 12 of Section 2, the Manager shall take them from said paragraph and document the source of information used to determine the fair value on the measurement date. For these contracts, the frequency of measurement shall be according to the availability of information.

RECOGNITION OF INCOME AND/OR EXPENSES
Value changes occurring between the previous and current measurement dates, in financial derivative instruments, shall affect the period's results, either as an expense or as income, depending on the instrument's price position and the Manager's position within the contract, which could leave the Manager in a position of realized or unrealized losses or gains. What is established in the first clause of this paragraph shall be so always that gains or losses are computed on financial derivative instruments measured at fair value; i.e., active or passive derivatives held for trading because they have ceased to meet the conditions to be used as risk management instruments and the Manager has not made a new designation.
DERECOGNITION
The Manager shall derecognize the fair values of financial derivative instruments on the contract termination date or on the instrument exercise date, whichever occurs first. On the indicated dates, the Manager shall pay or collect the amounts pending to its charge or in its favor, or exercise the positions closed on that date, in the case where the transaction corresponds to a purchased option and it ends with intrinsic value.
PRESENTATION
Financial derivative instruments shall be presented in the Balance Sheet, according to the rights and obligations they represent on the date of the Financial Statements. Active and passive balances originating based on the behavior of the underlying assets used to establish the cost or benefit of such contracts shall not be offset among them.

SECTION 4
PHYSICAL AND INTANGIBLE ASSETS

OBJECTIVE
This Section aims to regulate the recognition, measurement, and presentation of Properties, Plant and Equipment, Intangible Assets, as well as Investment Properties.
SCOPE
This Section applies to all transactions related to Properties, Plant and Equipment, Intangible Assets, and Investment Properties.
CRITERIA FOR ACCOUNTING OF PROPERTIES AND EQUIPMENT
Properties and Equipment are integrated by tangible goods that have been acquired or constructed to be used in the Manager's business.
RECOGNITION
A fixed asset shall only be recognized as an asset if and only if:
a) It is probable that future economic benefits derived from it will be obtained; and b) The cost of the asset can be measured reliably.
INITIAL MEASUREMENT
These assets shall be initially measured at cost, which includes their acquisition price, import tariffs, non-recoverable indirect taxes, and costs directly related to the process of preparing the asset, in terms of physical location and condition, so that it can operate in the manner intended by the Manager, less any discount. Additionally, an initial estimate of the costs of dismantling or removing the asset, as well as the rehabilitation of the place where it is located, if this corresponds to a future obligation for the Manager, shall be included.

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-13/2015
NDMC-04
ACCOUNTING MANUAL FOR INVESTMENT FUND MANAGERS Approval: 12/08/2015 Validity: 01/09/2015 When expenditures are made to replace one or more components of Properties and Equipment, these amounts shall be included as part of the cost of the Properties and Equipment to be replaced, at the same time, the component being replaced shall be derecognized.

SUBSEQUENT MEASUREMENT
These assets shall be subsequently measured applying the Cost Model, which implies that the asset shall be recorded in books at its cost less accumulated depreciation and the accumulated amount of impairment losses. Subsequent expenditures after initial recognition of properties and equipment are capitalized only when it is probable that future economic benefits related to the expenditure will flow to the Manager.
DEPRECIATION
Depreciation shall begin when the asset is available for use, i.e., when it is in the location and conditions necessary to operate in the manner intended by management, and using the depreciation method that best reflects the consumption patterns of the asset's benefits. Depreciation amounts shall be recognized as expenses in each accounting period. The depreciation method must be reviewed and/or modified if it no longer reflects the expected pattern of consumption of benefits of the assets. Nevertheless, any change in the depreciation method must be accounted for prospectively. Continuous repairs and maintenance are recorded as expenses in results when incurred.
IMPAIRMENT
For the purposes of recognizing impairment, the provisions established in the relevant international standard guide shall be considered.
DERECOGNITION
The derecognition of assets constituting Properties and Equipment shall be carried out when the following conditions occur:
a) Disposal of the asset; and b) Future economic benefits from its use are not expected.

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-13/2015
NDMC-04
ACCOUNTING MANUAL FOR INVESTMENT FUND MANAGERS Approval: 12/08/2015 Validity: 01/09/2015 Upon the removal of these assets from the books, gains or losses may arise, which shall be recognized in the results of the period when they occur.

CRITERIA FOR ACCOUNTING OF INVESTMENT PROPERTIES
Investment Properties are those held to obtain gains, capital appreciation, or both, instead of:
a) Their use in the production or supply of goods or services; b) Use for administrative purposes; or c) Sale in the ordinary course of operations.
Investment Properties shall be land and buildings considered in whole or in part. The Manager may have this type of property only when it comes from debt-for-equity swaps or judicial adjudications, or when it has the ability to sell a property from Properties, Plant and Equipment.
RECOGNITION
Investment Properties shall be recognized as assets when:
a) It is probable that future economic benefits associated with such Investment Properties will flow to the Manager; and b) The cost can be measured reliably.
INITIAL MEASUREMENT
Investment Properties shall be initially measured at acquisition cost plus direct transactional costs associated.
Investment Property transactional costs shall include expenditures directly attributable to the Property and include, for example, professional fees for legal services, transfer taxes on properties if applicable, and other costs associated with the transaction. When expenditures are made to replace one or more components of Investment Properties, these amounts shall be included as part of the cost of the Investment Properties to be replaced, at the same time, the component being replaced shall be derecognized.
SUBSEQUENT MEASUREMENT
After initial recognition, all Investment Properties shall be measured using the cost model, applying the same criteria established for Properties and Equipment, until the Manager has the same or begins the transformation to sell it in the ordinary course of its activity. Third-party compensations for Investment Properties that have impaired their value, have been lost, or abandoned, shall be recognized in the period's result when such compensations are enforceable.
TRANSFERS AND DERECOGNITION
Transfers to, or from, Investment Property shall be made when there is a change in its use, which has been evidenced by: the start of occupation by the owner, in the case of a transfer of an Investment Property to a facility occupied by the Manager; the end of occupation by the Manager, in the case of the transfer of a facility occupied by the Manager to an Investment Property. Investment Properties shall be removed from the Balance Sheet upon disposal or when Investment Properties are permanently withdrawn from use, reclassified into another category of assets, and no future economic benefits are expected from their disposal. The loss or gain resulting from the withdrawal or disposal of an Investment Property shall be determined as the difference between the net proceeds of the transaction and the book value of the asset, and shall be recognized in the period's result when the withdrawal or disposal takes place.
CRITERIA FOR ACCOUNTING OF INTANGIBLE ASSETS
The recognition, measurement, presentation, and disclosure of intangible assets shall apply the criteria established according to the guidelines provided by the International Accounting Standard for these purposes. Additionally, the following shall be considered:
An intangible asset shall be initially measured at cost, which comprises:
a) Acquisition price, including import tariffs and non-recoverable taxes; and b) Any cost directly attributable to preparing the asset for its intended use.
The intangible asset shall be subsequently measured at cost less accumulated amortization and accumulated impairment losses; except in the case of purchased goodwill.
Purchased goodwill in a business combination, after its initial recognition, shall not be subject to amortization; instead, at least at the close of each accounting period, it shall be evaluated for the purpose of establishing or ruling out that an impairment loss on it has occurred.

PRESENTATION
Investment Properties shall be presented in the Balance Sheet, according to the rights they represent as of the date of the Financial Statements under the account of Property and Depreciable Equipment. Likewise, properties that are not depreciated shall be presented in the Balance Sheet in the sub-group of Non-Depreciable Properties, and Properties, Plant and Equipment that are subject to depreciation shall be presented under the account of Property and Depreciable Equipment, and intangible assets in the account of Intangibles.

SECTION 5
SPECIFIC TREATMENTS DEFINED FOR THE PRESENTATION OF FINANCIAL STATEMENTS

OBJECTIVE
This Section aims to establish the method of presentation of the Financial Statements and the measurement or settlement of items that have alternative measurement or settlement models.
SCOPE
This Section establishes the methods that must be applied by the Manager for the presentation of the Balance Sheet, the Statement of Comprehensive Income, and the Statement of Cash Flows.
PRESENTATION OF ELEMENTS OF FINANCIAL STATEMENTS AND ACTIVITIES THAT INTEGRATE THE STATEMENT OF CASH FLOWS.
Presentation refers to the way accounting information is incorporated into the basic Financial Statements, so 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	Comments
Balance Sheet	Assets and liabilities shall be presented according to their term type and whether they are current or non-current.	This presentation method takes into consideration the ease of conversion into cash of assets and the exigibility of payment of liabilities, presenting them both as current or non-current. The use of this method is considered appropriate for the Manager, because information on expected dates of realization of assets and exigibility of liabilities is useful to evaluate the liquidity and solvency of the Manager and is considered to provide reliable and more relevant information. Adopting this method does not exempt the Manager from disclosing amounts expected to be recovered or settled within a period less than or equal to one year after the date of the reported period and those that will be recovered in a period greater than one year after the date of the reported period.
Statement of Comprehensive Income	Expenses shall be accounted for applying the Method of Nature of Expenses and disclosing additional items considered necessary for the adequate understanding of the Manager's financial performance.	Considering the nature of the Manager, the method of presenting 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 the Manager, while it may be easier to apply; it is complemented with a detail of expenses that contribute to a better understanding of the Manager's financial performance.
Cash Flows	Direct Method applied to operating, financing, and investment activities.	The advantage of presenting operating activities under the Direct Method is that it provides useful information to estimate future flows, which is not available when the indirect method is applied.

SECTION 6
PREPARATION AND PUBLICATION OF FINANCIAL STATEMENTS: PRESENTATION AND DISCLOSURE

OBJECTIVE
This Section aims to establish procedures that allow the preparation, presentation, and disclosure of basic Financial Statements, in accordance with prudential requirements of the Central Bank and, where applicable, IFRS, in order to provide the public with sufficient and timely financial information about the financial, economic, and legal situation of the Managers.
SCOPE
This Section establishes the models of Financial Statements that the Manager must use to present its financial information, as well as the minimum framework of notes to them that they must observe when making information disclosures for each line of the Balance Sheet, Statement of Comprehensive Income, and the other basic Financial Statements as appropriate.
REQUIREMENTS AND CONTENT OF FINANCIAL STATEMENTS
The most relevant aspects that must be considered in the presentation and disclosure of Financial Statements are the following:
a) Technical Standards, Fundamental Hypotheses, and Qualitative Characteristics: Financial Statements must be prepared based on the standards issued by the Central Bank applicable to them and IFRS. When IFRS present different ways to measure the same element of the Financial Statements, the Manager must adopt the most prudent criterion among them; b) Expression of Figures: The figures in the Financial Statements and their notes must be expressed in thousands of United States dollars with two decimals; c) Accounting Origin of Balances: The figures in the Financial Statements and their notes must originate from the 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 will be those that meet the condition of an asset, liability, equity, income, or expense; and e) Accounts of Opposite Nature 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 depreciations, which net off the accounts that generate them within equity, among others. In these cases, such accounts must be presented in parentheses.
BASIC FINANCIAL STATEMENTS
The basic Financial Statements that must be prepared with reference to December 31 are: the Balance Sheet, the Statement of Comprehensive Income, the Statement of Changes in Equity, the Statement of Cash Flows according to models established in Chapter V, and their respective notes that include a summary of the most significant accounting policies and other explanatory information. Likewise, the Manager must prepare a complete set of Financial Statements with reference to June 30 of each year.

The notes present information about the bases for the preparation of the Financial Statements and about accounting policies, supply narrative descriptions, and are an integral part of them, containing additional information, in detail, that complements the balances reflected in the Financial Statements.

In addition, a Balance Sheet at the beginning of the first comparative period must be prepared when a Manager applies an accounting policy retroactively or performs a retroactive 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.

ADDITIONAL NOTES
The Manager may incorporate additional notes it deems convenient for a greater clarification of its figures and operations, without altering the sequential number assigned to the notes established in this Manual.
RESPONSIBLE FOR PREPARING FINANCIAL STATEMENTS
The preparation of the basic Financial Statements is the responsibility of the Manager's administration. The Financial Statements that are published must be signed by the signatures of the general accountant, president or legal representative, and external auditor and their corresponding seals.
SUBMISSION OF FINANCIAL STATEMENTS
7.1. Semi-Annual Financial Statements
Semi-annual basic Financial Statements must be presented to the Board of Directors of the Manager for their respective authorization, in the session immediately following the reference date of said Financial Statements. The Manager must send to the Superintendence the certification of the minute point of the Board of Directors in which said Financial Statements were presented and authorized.

7.2. Annual Financial Statements
Annual basic Financial Statements and the certification of the minute point of the Board of Directors in which they were authorized plus the corresponding opinion of the external auditor, must be sent by the Manager to the Superintendence, no later than five (5) business days before the General Shareholders' Meeting of the Manager is held, where they will be discussed.

Annual Financial Statements must be considered and approved by the General Shareholders' Meeting, in the first meeting held after the reference date of said Financial Statements, leaving written record in the respective minutes about their review and sending copies of said minutes to the Superintendence no later than the last day of the publication period of the Financial Statements. In case of observations or objections by the General Shareholders' Meeting, these must be reported immediately to the Superintendence.

DISCLOSURE OF FINANCIAL STATEMENTS
The set of Financial Statements delivered to shareholders, those published in the annual report, and in general any disclosure of them, must include all basic Financial Statements, their notes in full, and the opinion of the external auditor.

The Manager, in accordance with current legal standards, must publish the Financial Statements on June 30 and December 31 of each year along with the opinion of the external auditor, sixty (60) calendar days after the end of the accounting year, in two newspapers of wide national circulation. The notes to the Financial Statements are an integral part of them and therefore are mandatory for publication. The notes required in this Manual are the minimum that the Manager must publish. In addition, they must be published on the Manager's website, within the same timeframes previously established.

The Interim Balance Sheet must be presented in comparative form with the Annual Balance Sheet of the same immediate previous period; the remaining interim Financial Statements will be presented with their counterpart from the semester of the immediate previous period.

Likewise, the Manager must publish on its website the Financial Statements referred to the periods ended on March 31 and September 30 respectively.

If the Superintendence determines the existence of data that alter, modify, or affect the published Financial Statements, the notes, or that the latter have not been published in their entirety, it will require the Manager to republish, in the same national circulation newspaper in which it was originally published, accompanied by its explanatory note proposed by the Manager and approved by the Superintendence.

In case the Manager refuses to publish the corrected Financial Statements as well as their respective notes, required in accordance with this Manual, the Superintendence will instruct a deadline for the Manager to make the publication effective; otherwise, the corresponding sanction will be imposed in accordance with what is established in the Law on Supervision and Regulation of the Financial System. (3)

A correction notice will be published when they are errors that do not alter the Financial Statements; otherwise, what is established in the previous paragraphs must be carried out.

The Financial Statements for the closing of the economic and management year must be included in the Annual Work Report to be presented at the General Shareholders' Meeting, for its approval by the same, taking into account the following procedures:
a) The Board of Directors of the Manager must prepare the Work Report annually; and b) The Work Report must contain as a minimum:
i. Identification;
ii. Registration number in the Public Stock Exchange Register (RPB);
iii. President's Letter;
iv. Main achievements;
v. Description of the company;
vi. Shareholders;
vii. Board of Directors;
viii. Administration and staff;
ix. Global remuneration of key management personnel;
x. Activities and Business of the company;
xi. Risk Factors;
xii. Financial Reports: Administrative and External Auditor Reports; and
xiii. Responsibility Declaration that will include the name, position, and signature of the Board of Directors and General Manager.

This Annual Work Report will be sent to the Superintendence within a period of ten (10) business days after being approved by the General Shareholders' Meeting.

NOTES TO BASIC FINANCIAL STATEMENTS
Note 1. Identification of the Manager
The Manager will describe as part of its identification the information that corresponds in accordance with the following requirements:
a) Name of the reporting Manager as well as changes relative to said information since the end of the previous reported period; 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 Manager, country of incorporation, address of its registered office or main domicile where it develops its activities, if this were different from the registered one; e) Description of the nature of the Manager's operations and main activities; f) Duration of the Manager's life if it is of limited life; g) Date of authorization by the Board of Directors or its equivalent for the disclosure of the Financial Statements; and h) Explanation of the fact that the owners of the Manager or others have the power to modify the Financial Statements after disclosure.

Note 2. Bases of Preparation a) Declaration on the Bases of Preparation: The standards used in the preparation of the Financial Statements have been issued by the Central Bank. The Financial Statements have been prepared by the Manager based on the standards issued by the Central Bank applicable to them and IFRS, prevailing the regulations issued by the Central Bank when there is a conflict with IFRS. In addition, when these present different ways and options to measure and account for the same element or event, the most conservative criterion of the IFRS must be adopted. The main divergences between the standards used and IFRS must be presented in a note. b) Measurement Bases: The Manager will declare the measurement bases it has used to prepare its Financial Statements; c) Functional and Presentation Currency: The Manager will declare the functional and presentation currency of the Financial Statements and the degree of rounding applied when presenting the figures in said Financial Statements; d) Use of Estimates and Criteria: The Manager 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 Manager will describe and identify the areas in which accounting policies have been changed; and
ii. The Manager 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 Manager will make a summary of the significant accounting policies applied, which are defined as the principles, bases, agreements, rules, and specific procedures adopted in the preparation and presentation of its Financial Statements.

Note 4. Management of Financial and Operational Risks The Manager will disclose information regarding the objectives and policies of financial risk management, must disclose all financial risks to which it is exposed, for example: credit risk, market risk, liquidity risk, among others, in addition to disclosing the fair values of financial assets and liabilities, as well as operational risk management.

The Manager will make a general description of the risks to which it is exposed in the business, the units assigned for the management of the mentioned risks, as well as the tools established for their identification, measurement, control, mitigation, monitoring, and communication.

The publication of policies, methodologies, and other relevant measures must be made in accordance with what is established in the "Technical Standards for the Integral Management of Risks of Entities of the Stock Markets" (NRP-11) issued by the Central Bank.

Managers must disclose in detail on their website, which may in any case use the website of the financial conglomerate or business group to which the Manager belongs, within the first ninety (90) calendar days of each year, the information related to the policies, methodologies, and other relevant measures adopted for the management of each type of risk.

Managers must disclose in summary form in the notes to the semi-annual Financial Statements to be published the way in which they manage risks and compliance with their policies.

Additionally, the Manager will disclose on its website regarding each risk, the following:

4.1. Credit Risk
It will describe by tabulation, the maximum exposure to credit risk by class of asset and risk classification, both within and outside the Balance Sheet without having considered any guarantee or other credit enhancement in its possession.

For this section, the amounts to be described are the net book amounts of estimates or impairment losses as they are reported in the Manager's Balance Sheet.

4.1.1. Impaired Financial Assets
The Manager will disclose the following information:
An analysis of the financial assets that have been determined individually as impaired at the end of the period on which information is reported, including the factors that the Manager has considered to determine their impairment, such as: nature of the counterparty, geographic analysis, or other factors that have contributed, according to the Manager, to the impairment of the assets.

To comply with the above, the analysis may include the following information or other that the Manager considers more representative:
a) The book amount, before the deduction of any impairment loss, according to its risk classification, segregated by time bands and asset subgroups; and b) The amount of any related impairment loss, segregating it by time bands and asset subgroups.

4.2. Market Risk
The Manager will describe in tabulated form, for the investment portfolio, what the risk position has been, by type of exchange rate risk, interest rate risk, or other, assumed in accordance with the indicators that reflect its methodology or technique applied to manage risk during the last twelve (12) months, because the complete period is important when the exposure to risk presented at the end of the year is not representative of the exposure maintained throughout the period.

4.2.1. Exchange Rate Risk
The Manager will describe in tabulated form and classified by currency, the assets and liabilities in foreign currency, establishing the net position of assets and liabilities in and out of the Balance Sheet.

4.2.2. Interest Rate Risk
The Manager will describe in tabulated form a summary of the financial assets and liabilities that are not held for trading, other than financial derivative instruments, and whose fair value is exposed to interest rate risks, classifying them by their remaining maturities. The tabulation must present the financial assets and liabilities at their book value, classified by the term of the next contractual repricing.

The same previous information will be presented by the Manager regarding financial derivative instruments that are held for risk hedging purposes and whose fair value is exposed to interest rate risk.

4.3. Liquidity Risk
Likewise, the Manager will describe in tabulated form the financial payables and financial assets held to manage liquidity risk, both by classes and classifying them by their remaining contractual maturities. The amounts revealed in the tabulation will be the undiscounted contractual flows.

It will also describe, if not evident in the previous tabulation, the quality of the assets held to manage liquidity risk and other elements it considers pertinent. For example, cash, certificates of deposit, sovereign bonds, and other securities that are used in repo operations with the Central Bank, highly liquid assets held in the portfolio for trading, among others. This section may be omitted if in the previous item, the class and quality of assets used in risk management are evident.

4.3.1. Net Settled Financial Derivative Liabilities
The Manager will describe the types of financial derivative instruments that are settled on a net basis, adding all details it considers pertinent, for example: interest rate derivatives, exchange rate derivatives.

Additionally, it will present a tabulated description of such derivatives classified by objective, such as those held for hedging purposes or held for trading, name, and classified by remaining maturity periods to the contractual maturity date, on the date of the Financial Statements. For example: up to one month, more than 1 to 3 months, more than 3 months up to 12 months, among others. The values presented in this tabulation are undiscounted.

4.3.2. Gross Settled Financial Derivative Liabilities
The Manager will describe the types of financial derivative instruments held on the date of the Financial Statements that will be settled on a gross basis, adding all details it considers pertinent, for example: interest rate derivatives, exchange rate derivatives, credit risk derivatives, among others.

Additionally, it will present a tabulated description of such derivatives classified by objective, such as those held for hedging purposes or held for trading, name, within the latter identifying the flows to be paid and the flows to be received, and classified by remaining maturity periods to the contractual maturity date, on the date of the Financial Statements. For example: up to one month, more than 1 to 3 months, more than 3 months up to 12 months, among others. The amounts presented in this tabulation are undiscounted contractual flows.

4.3.3. Off-Balance Sheet Items
The Manager will describe each of the off-balance sheet items of the Manager that imply commitments it must fulfill in the immediate future or medium or long term. Additionally, it will perform a tabulated description of each of these items classifying them by their remaining term to the date of fulfillment of the commitment, on the date of the Financial Statements. For example: no more than one year, more than one year to 5 years, more than 5 years, among others.

4.4. Fair Value of Financial Assets and Liabilities

4.4.1. Fair Value Hierarchy
The Manager will describe the hierarchy of fair values used for financial assets and liabilities presented in the Financial Statements at fair value. It will also make the corresponding classifications and clarifying descriptions it considers pertinent, for example: Level 1, Level 2, Level 3; indicating the characteristics of each level and what class of financial assets are included in each of them.

4.4.2. Financial Assets and Liabilities Measured at Fair Value
The Manager will make a tabulated description of the financial assets and liabilities whose book values are carried at fair value. The tabulation will indicate at least the following: in the columns, the fair value levels used to establish the value of the assets by Level 1, Level 2, and Level 3 will be placed. In the rows, they will incorporate two global classifications of fair value measurements, the permanent measurement classification and another of temporary fair value measurements with the book values and fair values of those financial assets and liabilities both on and off the balance sheet, segregating them by class.

4.4.3. Transfers of Financial Assets and Liabilities between Levels 1 and 2 of the Fair Value Hierarchy
The Manager will disclose, for financial assets and liabilities that are measured at fair value on a recurring basis and that are held on the Balance Sheet at the end of the period being reported, the amounts of any transfers between levels 1 and 2 of the fair value hierarchy, the reasons for which the transfers were made, and the policies that the Manager has established to determine that transfers between levels have occurred. Transfers occurring to or from each level will be disclosed and presented separately.

4.4.4. Valuation Techniques and Inputs Used for Fair Value Measurement
For fair value measurements categorized within levels 2 and 3 of the aforementioned hierarchy, the Manager will present a description of the valuation techniques and inputs used to obtain such measurements.

If there have been changes in valuation techniques, the Manager will disclose those changes and the reasons for them.

Quantitative information about significant unobservable inputs in the market, that is, when they have been developed by the Manager for financial assets measured at fair value on a recurring and non-recurring basis.

For fair value measurements categorized within level 3 of the fair value hierarchy, the Manager will provide quantitative information about significant unobservable inputs in the market that are used in the measurement of fair value. This disclosure must contain at least the following tabulated information: description of the financial instruments, fair value on the date of the Financial Statements being reported, valuation technique used, unobservable inputs used, and the ranges handled by the inputs used as well as their weighted averages, when applicable. This disclosure is required when the inputs have been developed by the Manager.

4.4.5. Fair Value Measurements Using Significant Unobservable Inputs
The Manager will present a reconciliation of financial assets measured at fair value on a recurring basis and categorized within level 3 of the fair value hierarchy, starting from the opening Balance to the closing Balance, revealing separately the changes during the period attributable to the following:

a) Total gains and losses of the period recognized in earnings and the line of earnings in which those gains or losses were recognized; b) Total gains and losses of the period recognized in other comprehensive income and the line of other comprehensive income in which those gains or losses were recognized; c) Purchases, sales, issuances, and settlements revealed separately; and d) The amounts of transfers to level 3 or from level 3 of the fair value hierarchy, the reasons for such transfers, and the policies established by the Manager to determine if transfers between levels have occurred. Transfers to or from level 3 will be disclosed and presented separately.

4.5. Operational Risk
The Manager will describe the methodology it uses to manage operational risk, which implies describing the entire management process it performs on this risk, from the factors used to identify it to those that serve for its measurement, control, mitigation, monitoring, and communication.

This risk will include the probability that the Manager may incur losses from not adequately managing the operations of the different Investment Funds it constitutes.

Note 5. Cash and Cash Equivalents
The Manager must reveal in tabulated form the components of cash and cash equivalents and present a reconciliation of the amounts of its cash flow statement with the equivalent items on which it reports in the Balance Sheet.

It will reveal the criteria adopted to determine the composition of the cash and cash equivalents item. Likewise, it will state which resources are restricted, the purpose of the restriction, and the terms thereof.

Note 6. Financial Instruments

6.1. Financial Assets Held at Fair Value

a) Financial Assets Held for Trading
The Manager will reveal in tabulated form the financial instruments measured mandatorily at fair value, describing all pertinent clarifications related to these instruments.

Additionally, it will reveal information that allows users of its Financial Statements to evaluate the nature and scope of the risks arising from the financial instruments to which the Manager is exposed at the end of the period being reported.

b) Financial Assets for Risk Management
In the case that there are contracts for operations with financial derivative instruments for risk management, the Manager will reveal in tabulated form the following information: type of financial derivative instrument, notional amount of the contract, fair value of the contract on the date of the Financial Statements whether asset or liability, and any additional information useful for understanding the operations.

6.2. Financial Assets Held at Amortized Cost
The Manager will reveal regarding the portfolio of investments measured at amortized cost, the following:

a) All types of securities that make up these assets; b) Impairment corrections constituted on the indicated portfolio; c) Classification of the portfolio according to the extent of the term to recover contractual flows; d) Reconciliation of the correction account used to correct the value of financial assets that have suffered impairment due to credit and market losses; and e) Any other information that is necessary for users of the Financial Statements.

6.3. Restricted or Matured Financial Assets
The Manager will reveal regarding restricted or matured financial assets the following:

a) It must include a detail of restricted or matured financial assets, segregating them for each of the sub-classifications in held for trading and held at amortized cost; b) The book value of financial assets pledged as collateral for liabilities; and c) Description of the terms and conditions of financial assets pledged as collateral for liabilities.

6.4. Financial Assets Pending Settlement
A tabulated detail of financial instruments negotiated and pending settlement on the closing date when they are purchases and sales must be included.

Note 7. Accounts Receivable

7.1. Accounts Receivable – Investment Funds, Clients, and Brokerage Houses
The Manager will reveal in detail the amounts that make up this grouping, making the corresponding descriptions and explanations. Lines that have their own disclosure notes will be excluded from this.

The Manager will reveal the following:

a) The amounts for each of the categories of accounts receivable; b) A description of the accounts and documents receivable; c) In the case of commissions for administration services for Investment Funds and for Voluntary Previsional Savings Funds, a description of the commission policies established and authorized for each type of Fund it administers; (5) d) For accounts receivable from the marketing of participation shares of Foreign Investment Funds, the conditions, terms, and percentages contracted with foreign managers for this purpose must be revealed; e) For accounts receivable from the marketing of Voluntary Previsional Savings Funds, the conditions, terms, and percentages contracted with Administrators for this purpose must be revealed; and (5) f) A detail of the amounts receivable from Brokerage Houses, with a description in the case that these items are significant. (5)

Include other disclosures that are necessary for a better understanding by users of the Financial Statements.

7.2. Accounts Receivable – Third Parties
The Manager will reveal the following:

a) A detail accompanied by a description of the accounts that make up this item; and b) Any information necessary for a better understanding by users of the Financial Statements.

7.3. Accounts Receivable – Related Parties
If there are related parties, the Manager will reveal the amounts receivable between the Manager and said parties.

7.4. Other Accounts Receivable
The Manager will reveal the following information:

a) A description of the other accounts receivable; (4) b) When there are payments on behalf of Investment Funds, it must clearly reveal the concepts, amounts, and the conditions under which such payments were made; (4) c) The amount corresponding to financial products receivable; and (4) d) The impairment recognized during the fiscal year and reversals of impairment. (4)

Include other disclosures that are necessary for a better understanding for users of the Financial Statements.

7.5. Accounts Receivable – Reserve Estimation
The Manager will present a detail of the constitution of reserves for uncollectible accounts by type of account and if there is any reversal of impairment, present such detail.

Note 8. Physical and Intangible Assets

8.1. Properties and Equipment

8.1.1. Disclosures
The Manager will reveal with respect to each of the classes of Properties and Equipment, the following information:

a) The gross book value, accumulated depreciation, and accumulated amount of impairment losses, both at the beginning and at the end of each period; and b) A reconciliation table between the book values at the beginning and at the end of the period, showing:

i. Additions;
ii. Impairment losses recognized in the period's earnings;
iii. Impairment losses that have been reversed and recognized in the period's earnings;
iv. Depreciation; and
v. Other changes.

8.1.2. Other Information to be Revealed
The Manager will also reveal:

a) The existence and corresponding amounts of ownership restrictions, as well as Properties and Equipment that are affected as collateral for the fulfillment of obligations; b) The amount of expenditures recognized in the book value, in the case of Properties and Equipment elements under construction; c) The amount of commitments for the acquisition of Properties and Equipment; d) The amount of third-party compensations included in the period's earnings for Properties and Equipment elements whose value had been impaired, lost, or delivered; e) The book value of Properties and Equipment elements that are temporarily out of service; f) The gross book value of any Properties and Equipment that, being fully depreciated, are still in use; and g) The book value of Properties and Equipment withdrawn from active use and not classified as held for sale.

8.2. Investment Properties
The Manager will reveal the following:

a) A description of the investment properties; b) The criteria the Manager uses to distinguish Investment Properties from properties occupied by it and from properties held for sale in the normal course of business activities; c) The figures included in the period's earnings:

i. Income derived from rents from Investment Properties; and
ii. Direct operating expenses including repairs and maintenance related to Investment Properties that generated rental income and those that did not generate it during the period;
d) The existence and amount of restrictions on the collection of income derived from them or of resources obtained from the disposal of Investment Properties; e) Contractual obligations for the acquisition, construction, or development of Investment Properties, or for repairs, maintenance, or improvements thereof; f) The depreciation methods used; g) The useful lives or depreciation rates used; h) A reconciliation of the book value of Investment Properties at the beginning and at the end of the period, which includes the following:

i. Net book value: revealing the gross book value and accumulated depreciation and impairment;
ii. Additions, revealing separately those derived from acquisitions and those referring to subsequent expenditures capitalized in the book value of those assets;
iii. Depreciation;
iv. The amount of impairment loss recognized on assets, as well as the amount of asset impairment losses that have been reversed during the period;
v. Transfers of Investment Properties to or from inventories or stock, or to or from properties occupied by the Manager; and
vi. Other changes;
i) The fair value of Investment Properties, in case it cannot determine it, will reveal the following:

i. A description of the Investment Property;
ii. An explanation of why it is not possible to determine the fair value reliably; and
iii. If possible, the range of estimates within which it is highly probable that the fair value will be found.

8.3. Intangible Assets

8.3.1. Disclosures
The Manager will reveal information for each of the classes of intangible assets, distinguishing between assets that have been generated internally and others, according to the following detail:

a) The amortization methods used for intangible assets with finite useful lives; b) The gross book value, accumulated amortization, and accumulated amount of impairment losses, at the beginning and at the end of the period; c) The line of the statement of comprehensive income in which the amortization, impairment losses, and gains from reversal of impairment of intangible assets are included; and d) A reconciliation that shows separately the following:

i. Increases, with separate indication of those coming from internal developments, those acquired separately, and those acquired in business combinations;
ii. Impairment losses recognized in the period's earnings;
iii. Reversals of previous impairment losses, over the period, if any;
iv. The amount of amortization recognized during the period;
v. Net exchange differences derived from the conversion of Financial Statements to the presentation currency and from the conversion of a foreign operation to the presentation currency of the entity; and
vi. Other changes in the book value during the period.

8.3.2. Other Information to be Revealed
The Manager will also reveal:

a) A description of the book value and remaining or residual amortization period of any individual intangible asset that is significant in the Financial Statements; b) Intangible assets with their book value whose ownership has some restriction, as well as those that have been pledged as collateral for debts; c) The amount of contractual commitments for the acquisition of intangible assets;

d) The accumulated amount of expenditures for research and development that have been recognized as expenses during the period; e) Expenditures for research and development will include all those that are directly attributable to research and development activities; f) A description of fully amortized intangible assets that are still in use; and g) A description of significant intangible assets controlled by the Manager but not recognized because they do not meet the recognition criteria.

8.4. Depreciation and Amortization Expenses
The Manager will disclose the following information:
The detail of expenses incurred for depreciation or amortization, which allow users to understand the composition of these components. In addition, it will add any necessary description to know the various elements that generate expenses for the Manager under the indicated concepts.

Note 9. Assets and Liabilities for Deferred Taxes The Manager will disclose the following information separately:
a) With respect to each type of temporary difference, tax losses, and unused tax credits:
i. The amount of assets and liabilities for deferred taxes recognized in the Balance Sheet, for each period presented; and
ii. The amount of income or expenses for deferred taxes recognized in the result of the period, if this information is not evident when considering the changes in the amounts recognized in the Balance Sheet.
b) The amount, and validity date if any, of deductible temporary differences, unused tax losses or credits for which assets for deferred taxes have not been recognized in the Balance Sheet; c) Explanation of changes in tax rates compared to the previous year; and d) Expiration date of deductible temporary differences.

Note 10. Other Assets
The Manager will disclose the following information:
a) Identification of the assets that make up the line of other assets;

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-13/2015
NDMC-04
ACCOUNTING MANUAL FOR INVESTMENT FUND MANAGERS Approval: 12/08/2015 Validity: 01/09/2015 b) Reconciliation of the amounts of these assets at the beginning of the period with the amounts at the end of the period; and c) Other information that is important for a better understanding by users of the Financial Statements.

Note 11. Financial Liabilities at Fair Value
The Manager will disclose the following information:
a) The fair values or negative values of financial instruments by sub-classification, for risk management; b) It will classify the amounts established above globally in Current and Non-Current; and c) Other information that the Manager considers important and relevant for the better understanding of users of the financial information.

Note 12. Accounts Payable
The Manager will disclose the following:
a) Detail by concept of accounts pending payment for services received from third parties such as, for example, the provision of accounting services, the marketing of quotas of its own Investment Funds, fees for various advisory services, among others, related to management and operational activities; and b) Detail of taxes and withholdings to be paid. The Manager will disclose detailed information that allows the reader to understand the integration of these accounts, as well as their classification in short and long term.

Note 13. Loans Payable
The Manager will disclose the following information:
a) The amounts of loans obtained by class, for example: from local financial entities, international financial entities, or it could be classified by objective such as for working capital, for investment in fixed assets, for restructuring, among others; b) Interest rates at which the loans are contracted; c) Classification of the above loans by term; d) Terms and conditions under which the loans have been received from creditor entities; and e) Other information that the Manager considers important and relevant for the better understanding of users of the financial information.

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-13/2015
NDMC-04
ACCOUNTING MANUAL FOR INVESTMENT FUND MANAGERS Approval: 12/08/2015 Validity: 01/09/2015 Note 14. Other Liabilities
14.1. Disclosures
The Manager will disclose for each type of provision a reconciliation that shows the following information:
a) The book value at the beginning and at the end of the period; b) The constitutions of new provisions made during the period, including also increases in existing provisions; c) The amounts used, being those applied or charged against the provision, during the period; d) The unused amounts that have been settled or reversed during the period; e) The increase during the period in the discounted amount arising from the passage of time and the effect of any change in the discount rate; f) Any other information necessary to generate the reconciliation of this line; and g) Classification of the amount established at the end of the reporting periods, in current and non-current.

14.2. Other Information to Disclose
The Manager will also disclose, for each type of provision, the following information:
a) A brief description of the nature of the obligation incurred, as well as the expected schedule of economic benefit outflows, produced by the same; b) An indication regarding the uncertainties relative to the amount or the schedule of the outflows of these resources; and c) The amount of any possible reimbursement, additionally informing of the quantity of assets that have been recognized to collect the expected eventual reimbursements. In those cases where the situations involving provisions are not disclosed, because the administration considers that their disclosure could seriously harm the position of the Manager, it will disclose the generic nature of the dispute along with the fact that the information has been omitted and the reasons that have led to taking such a decision.

Note 15. Equity
The Manager will disclose the following information:
a) For each class of shares:
i. The number of shares authorized, as well as the number of shares issued and fully paid; (4)
ii. The nominal value of the shares;
iii. A reconciliation between the number of shares in circulation at the beginning and at the end of the period;
iv. The rights, privileges and restrictions corresponding to each class of shares, including restrictions on the distribution of dividends and the refund of capital;
v. Shares whose issuance is reserved as a consequence of the existence of contracts for the sale of shares, including the conditions and amounts corresponding; and
vi. Amounts of reductions in social capital authorized by the supervisory body or for coverage of losses and their corresponding refund by terms, if applicable.
b) A description of the nature, composition and destination of each additional element to social capital that appears in equity such as non-capitalized equity contributions, reserves, accumulated results from previous years and profits, as well as other non-distributable equity adjustments such as, for example, items from other comprehensive income, among others. Disaggregate to the extent necessary for greater understanding of the contents.

In addition to the disclosures that the Manager makes in compliance with the previous letter b), it must specifically add in the order that the Manager considers pertinent within the indicated letter, the following descriptions:

15.1. Legal Reserve
The Manager will describe the legal requirement established for the computation of this reserve in the corresponding laws, the reserve constituted in the period being reported, the total amount it reaches, the percentage amount reached with respect to social capital and any other information that the administration considers pertinent for a better understanding of users of the Financial Statements.

15.2. Distributable Profit
The Manager will describe the legal requirement established in the corresponding laws, with respect to the retention of profits after the legal reserve, then proceeding to establish the distributable profit according to the following table:

Concept	Current Exercise	Previous Exercise
Comprehensive Income of the Exercise	US$	US$
Less:
Legal Reserve
Available Profit	US$	US$
Plus:
Distributable Profit from Previous Exercises
Distributable Profit	US$	US$

15.3. Earnings per Share
The Manager will disclose the following information:
a) The amounts used as numerators in the calculation of basic and diluted earnings per share, and a reconciliation of said amounts with the result of the period. The reconciliation will include the individual effect of each class of instrument that affects earnings per share; b) The weighted average of the number of ordinary shares used in the denominator for the calculation of basic and diluted earnings per share, and a reconciliation of the denominators with each other. The reconciliation will include the individual effect of each class of instrument that affects earnings per share; c) Instruments that could potentially dilute basic earnings per share in the future, but that have not been included in the calculation of diluted earnings per share because they have antidilutive effects in the period or periods for which information is reported; and d) A description of transactions with ordinary shares or potential ordinary shares, other than those registered according to the following subsection, that take place after the period for which information is reported and that would have significantly modified the number of ordinary shares or potential ordinary shares in circulation at the end of the period if those transactions had taken place before the close of the period for which information is presented. Increases or decreases in ordinary shares following are not included in the analysis of the previous letter d): increases by capitalization of profits, a free issuance or a stock split or decreases that are a consequence of a grouping of shares.

15.4. Dividends per Share
The Manager will disclose the following information:
a) The amount of dividends proposed or declared before the Financial Statements were authorized for issuance but not recognized as a distribution to shareholders during the period and the amount related per share; and b) The amount of any unrecognized cumulative preferred dividends.

Note 16. Contingent Liabilities and Contingent Assets The Manager will disclose for each type of contingent liability at the end of the period for which information is reported, a brief description of its nature, for example: legal lawsuits, capital commitments, credit commitments, financial guarantees, among others and when possible:
a) An estimate of its financial effects; b) An indication of the uncertainties related to the amount or the schedule of the outflows of corresponding resources; and c) The possibility of obtaining eventual reimbursements. When there is a probability of future inflow of a flow, the Manager will disclose a brief description of the nature of contingent assets at the end of the period for which information is reported and, when feasible, an estimate of the financial effects measured using the principles established to measure provisions.

In those cases where the situations involving contingent liabilities or contingent assets are not disclosed, because the administration considers that their disclosure could seriously harm the position of the Manager, it will disclose the generic nature of the dispute along with the fact that the information has been omitted and the reasons that have led to taking such a decision.

Note 17. Investment Funds and Voluntary Previsional Savings Funds (5) The Manager must disclose for each Investment Fund and each Voluntary Previsional Savings Fund that it administers, the detail of the investment portfolio, total assets, total liabilities, equity, income, expenses and results. The data must be as of the close of the period for which information is reported. Likewise, it must describe the general characteristics of each Investment Fund and each Voluntary Previsional Savings Fund that has been registered with the Superintendence. (5)

Note 18. Guarantees Granted
A comparative information of two periods detailed for each of the guarantees constituted by the Manager in favor of the Investment Funds and those constituted in favor of the Voluntary Previsional Savings Funds that it administers will be included; it must include at minimum the nature of the guarantees, issuer, representative of the benefits of the guarantee, amount and percentage with respect to the Equity of each of the Funds, validity of the same, among others. (5)

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-13/2015
NDMC-04
ACCOUNTING MANUAL FOR INVESTMENT FUND MANAGERS Approval: 12/08/2015 Validity: 01/09/2015 Note 19. Income from Administration Services The amounts recognized for commissions for administration services will be included, separating by each of the Investment Funds and Voluntary Previsional Savings Funds that it administers. (5)

Note 20. Income from Marketing of Quotas of Foreign Investment Funds The detail of the amounts recognized for commissions from the marketing of participation quotas of foreign investment fund shares will be included, separating them by each type of Fund marketed.

Note 21. Expenses for Marketing of Investment Funds and Voluntary Previsional Savings Funds (5) The detail of the amounts incurred for the marketing of the participation quotas of Foreign Funds will be disclosed. It will also disclose the detail of the amounts incurred for the marketing of Voluntary Previsional Savings Funds. (5)

Note 22. General Administrative and Personnel Expenses A summary of each of the expenses that make up general administrative and personnel expenses will be disclosed by their nature.
In addition, it will add any necessary description to know the various elements that generate expenses to the Manager under the indicated concept.

Note 23. Net Interest, Gains and/or Losses on Own Financial Investments
23.1. Income from Interest and Dividends
The Manager will disclose information on income from interest and dividends:
a) It will describe, in tabular form, the income and expenses for interest and dividends from financial investments; b) Method of calculation of applied interest, that is the effective interest rate; c) Additionally, it will describe the amount of interest not recognized in the period's income corresponding to yields generated by impaired financial assets from which the recovery of pending contractual flows is uncertain; d) Interest and dividends pending collection; and e) It will add in this section any other component that forms part of net interest and additional explanations that contribute to the understanding of the Financial Statements by their readers.

23.2. Gains (Losses) from Sales of Financial Assets and Liabilities
The Manager will disclose the following information:
The detail of income (expenses) generated or incurred in the disposal of portfolios of assets and financial liabilities measured obligatorily at fair value that allow users to understand the integration of these elements.

23.3. Net Gains (Losses) from Changes in Fair Value of Financial Assets and Liabilities
The Manager will disclose the following information separately:
A separation of the changes corresponding to unrealized gains or losses respectively, by sub-classification distinguishing those held for trading, equity instruments, those designated and those pledged as collateral. In addition, it will add any necessary description to know the various components that generate income and expenses for the Manager under the indicated concepts.

23.4. Gains (Losses) from Reversal of Impairment of Financial Assets
The Manager will disclose the following information:
The amount of gains from impairment reversal and loss from constitution of impairment of assets held at amortized cost, evidencing the following:
a) Increases in impairment; b) Amounts removed from the Balance Sheet in the period as a result of amounts considered uncollectible whether loans or other financial assets for which no loss estimate had been constituted; c) Recoveries on assets prior to their removal from the Balance Sheet; and d) Reversals of impairment and others that contribute to establishing the total amount of impairment charges during the period. In addition, it will add any necessary description so that users understand the various elements that generate or originate income or expenses for the Manager under the indicated concepts.

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-13/2015
NDMC-04
ACCOUNTING MANUAL FOR INVESTMENT FUND MANAGERS Approval: 12/08/2015 Validity: 01/09/2015 Note 24. Related Parties The Manager will disclose regarding related parties the following information:
a) The relationships between the Manager and its related parties regardless of whether there have been transactions between them. It will disclose the name of its parent company and if different, the name of the ultimate controlling party; b) Remuneration of key management personnel in total and for each of the following categories:
i. Short-term employee benefits;
ii. Post-employment benefits;
iii. Other long-term benefits; and
iv. Termination benefits.
c) Transactions with related parties during the periods covered by the Financial Statements, indicating the nature of the relationship with the related party, as well as information on transactions and pending balances, including commitments, that is necessary for users to understand the potential effect of the relationship on the Financial Statements. These information disclosure requirements are additional to those required in the previous letter. As a minimum, the information to be disclosed will include:
i. The amount of the transactions;
ii. The amount of pending balances, including commitments:

Their terms and conditions, including whether they are secured, as well as the nature of the consideration fixed for their settlement; and
Details of any guarantee granted or received;
iii. Estimates for doubtful debts relative to amounts included in pending balances; and
iv. The expense recognized during the period relative to uncollectible or doubtful debts, arising from related parties.
Likewise, they will disclose the conditions and requirements regarding related parties and transactions that are established according to the legal framework.

Note 25. Information on Custody of Securities and Other Assets The detail by entities to which the custody of investments in financial instruments, real estate, or other assets that require custody has been entrusted will be disclosed.

Note 27. Sanctions
For the period being reported, the Manager must separately detail the sanctions received from the Superintendence or another competent administrative authority, describing the infractions committed and the sanctions imposed.

Note 28. Significant Differences between International Financial Reporting Standards (IFRS) and Accounting Standards Issued by the Regulator The Manager will disclose the following information:
Significant differences between International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles issued by the regulatory body of the financial system.

Note 29. Events Occurring After the Period for Which Information is Reported The Manager will disclose the following information:
a) Update of disclosures regarding conditions that existed as of the date of the period being reported, in light of new information related to those conditions that has been obtained after the period being reported; and b) Regarding each significant category of events occurring after the period for which information is reported that do not imply adjustment:
i. The nature of the event; and
ii. An estimate of its financial effect, or a statement that such an estimate cannot be made.

Note 30. Operations for Marketing of Participation Quotas of Foreign Investment Funds The Manager will disclose in tabular form the cash received, the number of quotas marketed, accounts receivable from clients, accounts payable to the investor, among others, and any other relevant information on this marketing operation of quotas.

Likewise, it shall reveal the name of the Foreign Investment Funds for which it is marketing their shares.

Note 31. Outsourcing of Services
The Manager shall disclose the name of the contracted company when it subcontracts to carry out accounting or other services related to it, revealing the conditions of said contract and its relationship with the company.

Note 32. Marketing of Voluntary Pension Savings Funds (5) The Manager shall disclose the name of the Voluntary Pension Savings Funds that it is marketing and include the detail of the amounts recognized as income from commissions for the marketing of Voluntary Pension Savings Funds, separating them by each type of Fund that it markets. (5)

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 their recognition or, in their absence, originate contingent rights or obligations, enable the Manager to make future claims, evidence ownership or justify the existence of certain rights or obligations, indicating the number and name of the element, rubric, primary sub-account, secondary sub-account, and sub-sub-account.

The Catalog includes the codes and accounts that by regulation must be reported periodically to the Superintendence; consequently, for its internal records, it may disaggregate within each sub-sub-account to the detail that best suits its needs.

The Chart of Accounts is structured in elements identified with one digit, rubrics identified with 2 digits, accounts identified with 3 digits, primary sub-accounts identified with 4 digits, secondary sub-accounts identified with 7 digits, and sub-sub-accounts identified with 9 digits, which will be opened by the type of currency, as exemplified below:

Element 1 ASSET
Rubric 11 CURRENT ASSET
Account 110 CASH
Primary Sub-account 1100 CASH ON HAND

Element 1 ASSET
Secondary Sub-account 1110000 PETTY CASH
Sub-Sub-account 111000010 Type of currency
Element 2 LIABILITIES
Rubric 21 CURRENT LIABILITIES
Account 210 FINANCIAL LIABILITIES AT FAIR VALUE Primary Sub-account 2100 FOR RISK MANAGEMENT Secondary Sub-account 2110000 DESIGNATED Sub-Sub-account 211000010 Type of currency Element 3 EQUITY Rubric 31 CAPITAL Account 310 SHARE CAPITAL Primary Sub-account 3100 SUBSCRIBED CAPITAL Secondary Sub-account 3100000 SUBSCRIBED PAID-UP CAPITAL Sub-Sub-account 310000010 Type of currency

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 Element of account in the Financial Statement 1 Asset 2 Liability 3 Equity 4 Expenses 5 Income 6 Contingent Accounts 7 Off-Balance Sheet Accounts 8 Marketing Operations Second Rubric of accounts in the Financial Statement 11 Current Asset 12 Non-Current Asset 21 Current Liability 22 Non-Current Liability 31 Capital 32 Reserves 33 Options on Share-Based Payments 34 Results to Apply 35 Restricted Equity

Level Meaning Values
Third Account Collects sub-groupings of accounts associated with the previous level. Identified by 3 digits.
110 Cash
111 Banks and Other Financial Entities
112 Restricted Demand Deposits
115 Accounts Receivable
120 Non-Depreciable Properties
125 Long-Term Financial Investments
126 Long-Term Accounts Receivable
Fourth Primary Sub-account Identifies the position of each sub-account within each account. Identified by 4 digits.
Minimum value: 00
Maximum value: 99
1100 Cash on Hand
1101 Petty Cash
1102 Remittances in Transit
1110 Banks and Other entities of the Local Financial System Fifth Secondary Sub-account Identifies the position of each secondary sub-account within the primary sub-accounts, identified by 7 digits. Minimum value: 00 Maximum value: 99 1100000 Petty Cash 1111099 Remittances in Transit Sixth Sub-sub-account Differentiates the class of currency that represents the balance of the sub-account. Identified by 9 digits. 110100000 Head Office ML 110100010 Head Office ME

The Chart of Accounts to be used is presented in Annex No. 1 of this Accounting Manual.

CHAPTER IV
ACCOUNTING APPLICATIONS MANUAL
SECTION 1
ACCOUNTING APPLICATIONS MANUAL FOR ASSETS

Element 1 ASSET
Rubric 11 CURRENT ASSET

This element comprises monetary resources in cash, demand bank deposits, financial investments, accounts receivable, and prepaid expenses that are presented in the Balance Sheet along with cash equivalents. Cash equivalents are short-term investments of high liquidity, characterized by being easily convertible to cash, low risk, and liquidatable in the short term, understood as such, financial instruments with a maturity of no more than ninety (90) calendar days from the date of acquisition.

The following accounts correspond to this rubric:

Account 110 CASH
Primary Sub-account 1100 CASH ON HAND
Primary Sub-account 1101 REMITTANCES IN TRANSIT

This account represents monetary resources both in national currency and foreign currency, available in the treasury and cash registers of the head office, as well as local remittances in transit, for the development of the business activity.

It shall be debited by the entry of cash, with credit to the accounts that serve as the counterparty, according to the nature of the operation that generates the increase in cash.

It shall be credited by the exit of cash, with debit to the accounts that serve as the counterparty, according to the nature of the operation that generates the decrease.

Account 111 BANKS AND OTHER FINANCIAL ENTITIES Primary Sub-account 1110 BANKS AND OTHER ENTITIES OF THE LOCAL FINANCIAL SYSTEM

This account must represent the amounts of money deposited in banks and other entities of the local financial system. Bank overdrafts, when they occur, must be reclassified to the corresponding liability accounts.

It shall be debited by the constitution of deposits, with credit to the accounts that serve as the counterparty, according to the nature of the operation that generates the opening as well as the increases thereof.

It shall be credited by the exit of cash, with debit to the accounts that serve as the counterparty, according to the nature of the operation that generates the expenditure.

Primary Sub-account 1111 BANKS AND OTHER FINANCIAL ENTITIES FROM ABROAD

This sub-account must represent the monetary deposits made in banks located outside the national territory. Bank overdrafts, when they occur, must be reclassified to the corresponding liability accounts.

It shall be debited by the constitution of deposits, with credit to the accounts that serve as the counterparty, according to the nature of the operation that generates the collection.

It shall be credited by the exit of cash, with debit to the sub-accounts that serve as the counterparty, according to the nature of the operation that generates the payment.

The secondary sub-account corresponding to remittances in transit, which are amounts corresponding to values pending confirmation by the entities depositing the resources sent, is credited once the transactions are confirmed by the relevant entities with debit to the corresponding bank accounts abroad. In these sub-accounts, only remittances pending confirmation for a period not exceeding fifteen (15) calendar days shall be presented.

Primary Sub-account 1112 CENTRAL BANK OF RESERVE

This sub-account must represent the amounts of money deposited in the Central Bank, both in national currency and foreign currency.

It shall be debited by the constitution of deposits, with credit to the accounts that serve as the counterparty, according to the nature of the operation that generates the increase.

It shall be credited by the exit of cash, with debit to the accounts that serve as the counterparty, according to the nature of the operation that generates the decrease.

This account shall be used with the deposit for the constitution of the Manager's share capital.

Account 112 RESTRICTED DEMAND DEPOSITS

Primary Sub-account 1120 RESTRICTED DEMAND DEPOSITS Primary Sub-account 1121 OTHER RESTRICTED DEMAND DEPOSITS

Deposits that from their origin or during the validity of the accounts have been restricted by contractual or implicit conditions that oblige the administration to present them separately for their compliance shall be accounted for in this account.

It shall be debited with the cash and equivalents originating from their start as restricted and with the reclassified ones, and 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.

Account 113 FINANCIAL PRODUCTS RECEIVABLE

Primary Sub-account 1130 BANKS AND OTHER ENTITIES OF THE LOCAL FINANCIAL SYSTEM Primary Sub-account 1131 BANKS AND OTHER FINANCIAL ENTITIES FROM ABROAD Primary Sub-account 1132 CENTRAL BANK OF RESERVE

In these sub-accounts, all concepts of interest or similar that correspond to the yield generated by cash and equivalents shall be recognized. It shall be debited by accrued contractual interest and credited by cash recoveries or corrections thereto originating from various causes.

Account 114 FINANCIAL INVESTMENTS

In this account, all investments in financial instruments made by the Manager whose maturity term is less than or equal to one year are presented, other than accounts receivable and others that incorporate a quality of financial instrument but are grouped in another classification.

The investments shall be made in accordance with the Investment Policy defined by the Manager.

The following sub-accounts are part of this account:

Primary Sub-account 1140 FINANCIAL ASSETS FOR TRADING AT FAIR VALUE WITH CHANGES IN PROFIT OR LOSS

Financial assets for trading measured at fair value whose changes in value are applied to profit or loss are included in this primary sub-account, in accordance with the business model that management has established for the management of its portfolio. Included in this sub-account are financial assets held for trading other than derivatives, financial derivatives held for risk management strategies, as well as equity instruments held for trading.

It shall be debited by the amounts corresponding to the fair value of the debt or equity instruments acquired by the Manager, excluding transaction costs, which shall be applied directly to profit or loss by debiting the account “4203000 Other investment expenses – Transaction costs”.

Primary Sub-account 1141 FINANCIAL ASSETS FOR RISK MANAGEMENT AT FAIR VALUE WITH CHANGES IN PROFIT OR LOSS

In this sub-account, all investments in financial derivative instruments made by the Manager are presented, other than accounts receivable and others, that incorporate a quality of financial instrument but are grouped in another classification.

It also comprises items other than financial instruments that have been designated at fair value for accounting hedges.

Primary Sub-account 1142 FINANCIAL ASSETS HELD AT AMORTIZED COST

In this primary sub-account, all financial assets for which the objective, according to the Manager's business model, is to recover their contractual cash flows of principal and interest at a specified date shall be presented.

Secondary Sub-account 1142140 TIME DEPOSITS

In this sub-account, the fair values of financial assets corresponding to time deposit certificates shall be initially recorded. Some of the instruments presented here may meet the condition of a cash equivalent; they are unquoted debt instruments that by their nature must be presented separately.

The balances of this account shall subsequently be modified applying the amortized cost method.

Primary Sub-account 1143 FINANCIAL ASSETS AT FAIR VALUE WITH CHANGES IN OTHER COMPREHENSIVE INCOME

In this sub-account, the fair value, including transaction costs directly related to the transaction, of financial assets corresponding to equity instruments, which management has decided to measure at fair value with changes in other comprehensive income, shall be debited. The accounts used to settle the operation, such as cash or accounts payable, shall be credited.

It is initially debited with the fair value plus the transaction costs of the acquired equity instruments and subsequently by upward fluctuations. It is credited by downward fluctuations and when the assets are disposed of. Upward or downward fluctuations shall be recognized with credit or debit in the sub-account “3521 OTHER COMPREHENSIVE INCOME – Equity instruments”.

Primary Sub-account 1144 RESTRICTED FINANCIAL ASSETS Primary Sub-account 1145 DUE FINANCIAL ASSETS

In these sub-accounts, financial assets held at fair value or amortized cost, which have been restricted by being pledged or subject to other types of restriction, or are contractually due or present default in the payment of principal or interest greater than 90 days, shall be recognized. Such assets shall be reclassified to their original accounts at the moment they are free from all encumbrances or impairment.

Primary Sub-account 1146 FINANCIAL PRODUCTS RECEIVABLE

This sub-account shall show the amounts of yields receivable as of the Balance Sheet date for the different portfolios of financial assets.

In it, all concepts of interest or similar, established based on the contractual interest rate, that correspond to the yield generated by financial investments shall be recognized.

It shall be debited by accumulation or accrual and credited by cash recoveries or corrections thereto, originating from various causes.

The debits to this sub-account shall correspond to credits to the sub-accounts of account 521, as applicable.

Primary Sub-account 1147 ADJUSTMENTS OF FINANCIAL INVESTMENTS (CR)

The secondary sub-accounts that make up this primary sub-account identify the upward or downward adjustments of financial assets.

When the adjustment is caused by impairment loss of the asset, then this primary sub-account is credited to the accounts of the secondary sub-account “4201000 Impairment losses on financial assets - amortized cost”.

Secondary Sub-account 1147000 FINANCIAL ASSETS HELD AT AMORTIZED COST (CR)

The loss of value due to impairment can be caused by a variety of factors such as payment insolvency by the issuer, contract breaches such as interest payments, legal factors originating from the issuer's financial difficulties, probable debtor bankruptcy, change in the debtor's political and economic environment, etc.

The sub-account containing the impairment shall be credited by said value with debit to the secondary sub-account “4201000 Impairment losses on financial assets - amortized cost”. It shall be debited by collection, improvement in risk rating, or by derecognition of the asset from the Balance Sheet, with credit to the secondary sub-account “5221000 Gains from reversal of impairment of financial assets - amortized cost”, in case of reversal of impairment, or to the sub-accounts of account 114 that correspond, in case of derecognition from the Balance Sheet.

The sub-account containing the impairment shall be reversed up to the value of the impairment recognized in previous dates and that as of the Balance Sheet date, according to the valuation of the assets performed, management has determined that the causes that originated said impairment have disappeared or also when the financial asset that originated the impact on this account is derecognized.

Secondary Sub-account 1147010 FINANCIAL ASSETS WITH CHANGES IN OTHER COMPREHENSIVE INCOME

This sub-account shall apply in the case of financial assets held for changes in other comprehensive income. The amount to be recorded shall be the difference between the fair value of the asset and its book value as of the valuation date.

Account 115 ACCOUNTS RECEIVABLE

These accounts shall recognize the amounts of benefits receivable originating from agreements between the Manager and third parties as buyers or users of an asset or a service or other similar ones, such as administration of Investment Funds, marketing of participation shares of Foreign Investment Funds, and all services related thereto.

It shall be debited by accrued benefits with credit to the corresponding contra-accounts. It shall be credited by the recovery of the benefits or when they are removed from the Balance Sheet due to established uncollectibility.

Primary Sub-account 1150 INVESTMENT FUNDS

In this sub-account, the amounts receivable from the Investment Funds managed by the Manager that are pending collection at the closing of the Financial Statements shall be recognized.

Primary Sub-account 1151 CUSTOMERS

The accrued amounts from services provided to customers shall be recognized with credit to the sub-accounts that make up the account “511 Income from marketing of participation shares of foreign investment funds”, as applicable.

Amounts receivable by the Manager from these operations shall also be recorded in the secondary sub-accounts “Commissions for Marketing of Voluntary Pension Savings Funds” and “Commissions for Administration of Voluntary Pension Savings Funds”. (5)

Primary Sub-account 1152 INVESTMENT FUND ADMINISTRATORS

In this sub-account, the amounts that the Manager has receivable from Foreign Investment Fund Administrators to whom it markets shares of Foreign Investment Funds and that are pending collection at the closing of the Financial Statements shall be recognized.

Primary Sub-account 1153 BROKERAGE HOUSES

In this sub-account, the amounts pending receipt, from the accounting of sales of financial instruments negotiated pending settlement, shall be recognized.

Additionally, any other concept pending collection from the Brokerage House shall be recognized.

Primary Sub-account 1154 PAYING AGENTS
Primary Sub-account 1155 MARKETERS

Primary Sub-account 1156 STOCK EXCHANGE
Primary Sub-account 1157 CENTRAL DEPOSITORY AND SECURITIES

In these sub-accounts, the amounts receivable from third parties with whom the Manager maintains relationships by virtue of the management of its own resources and that are pending collection at the closing of the Financial Statements shall be recognized.

Primary Sub-account 1158 RELATED PARTIES

In this sub-account, the amounts receivable from related parties to the Manager and that are pending collection at the closing of the Financial Statements shall be recognized. These persons do not have a relationship with remuneration for services provided to the Manager.

Primary Sub-account 1159 OTHER ACCOUNTS RECEIVABLE

Other sub-accounts receivable not directly related to the Manager's operations, which have not been included in the previously described accounts, shall be recognized.

In the accounts for payments on behalf of Investment Funds, the amounts paid on behalf of the Investment Funds managed by the Manager shall be recognized.

In this sub-account, the dividends declared by the companies in which the Manager holds a participation and that have not yet been collected shall be recorded.

It shall be settled against cash and equivalents when the corresponding payment is received.

Account 116 ESTIMATE OF PROVISION FOR UNCOLLECTIBLE ACCOUNTS (CR)

Primary Sub-account 1160 ESTIMATE OF PROVISION FOR UNCOLLECTIBLE ACCOUNTS (CR)

In this account, the estimate for doubtful collection accounts and documents receivable shall be recorded.

Amounts that, according to established policies, have not been able to be recovered and there is no evidence of the possibility of collection, shall be applied to this account; these shall be recognized as expenses in the period in which such event is determined.

It will be credited with amounts for accounts classified as uncollectible, and debited when such balances are recovered partially or totally, or when the receivable account for which the corresponding estimate was created is settled.

Account 117 TAXES

Primary Subaccount 1170 VAT, TAX CREDIT

This account will record values in favor of the Manager in the concept of taxes.

This subaccount is debited for the amounts of the tax on the transfer of movable goods and the provision of services, Value Added Tax (VAT), paid on the purchase of movable goods or acquisition of services; it will also be debited for the amounts corresponding to the percentage of VAT withheld by large taxpayers on sales made to them.

Additionally, 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 subaccount “2170010 VAT payable”, the latter for the amount to be paid to the tax authority.

In any case, the subaccounts will be used to the extent that they are applicable.

Primary Subaccount 1171 TAXES ON FINANCIAL OPERATIONS

Primary Subaccount 1172 INCOME TAX ON CURRENT EARNINGS

Secondary Subaccount 1172000 PAYMENT ON ACCOUNT

For the amounts of payment on account established on the amount of gross income of the monthly fiscal period to be declared with credit to subaccount “2172000 Income Tax on Current Earnings – Payment on Account”.

Secondary Subaccount 1172010 WITHHELD TAXES

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

Secondary Subaccount 1172020 REMAINING AMOUNT OF INCOME TAX ON EARNINGS

This subaccount is affected by debit for the amount established as remaining when settling, with debit to subaccount “2172010 Income Tax on Current Year Earnings” and with credit, subaccounts “1172000 Income Tax on Current Earnings - payment on account” and “1172010 Income Tax on Current Earnings – Withheld Tax”.

This subaccount represents a tax credit in favor of the Manager for the excess of advance payment on account, which may be deducted in subsequent fiscal periods; it is the result of the positive difference between the sum of the “Payment on Account” and “Withheld Tax” assets minus the “Income Taxes Payable” liability.

Account 118 OTHER ASSETS

This account must represent the acquisition cost of the different goods used for the development of the Manager's business management.

Primary Subaccount 1180 INVENTORIES

Primary Subaccount 1181 PREPAID EXPENSES

These subaccounts collect disbursements incurred on goods and services that will be accrued as expenses throughout the accounting period or in subsequent periods and that meet the definition of an asset.

The corresponding amounts will be applied to the corresponding expense applying the policy that the Manager has for such effects.

Item 12 NON-CURRENT ASSET

Account 120 NON-DEPRECIABLE PROPERTIES

Primary Subaccount 1200 LAND

Primary Subaccount 1201 CONSTRUCTIONS IN PROGRESS

The accounts in this item must represent the value of goods that by their nature are not subject to depreciation. Such assets are subject to the recognition of impairment loss whenever the book value of the asset is greater than its recoverable amount.

The accounts that make up this item will be debited at the time of purchase, at their acquisition value, with credit to cash and cash equivalent accounts or to accounts payable.

They will be credited:

For the cancellation of the asset amounts, with debit to account “1240 Accumulated Depreciation, Amortization and Impairment”.
In the case of sale of the asset.
If gains or losses arise from the sale, the primary subaccounts “5240 Gain on sale of assets” or “4210 Loss on sale of assets”, whichever applies, will be credited or debited.

Accounts 121 DEPRECIABLE PROPERTIES AND EQUIPMENT

Primary Subaccount 1210 BUILDINGS

Primary Subaccount 1211 INSTALLATIONS

Primary Subaccount 1212 VEHICLES

Primary Subaccount 1213 FURNITURE AND EQUIPMENT

Primary Subaccount 1214 REMODELING AND RECONFIGURATION IN OWN PREMISES

Primary Subaccount 1215 CONSTRUCTIONS IN RENTED PREMISES

Primary Subaccount 1216 GOODS TAKEN UNDER FINANCIAL LEASE

In these subaccounts, the assets of Properties and Equipment subject to depreciation and destined for the development of the Manager's activities are recognized. Such assets are subject to the recognition of impairment loss whenever the book value of the asset is greater than its recoverable amount.

The Manager will value, upon initial recognition, all items of Properties and Equipment at acquisition cost.

In the case of assets acquired under financial lease, their initial cost will be the lower value between the fair value of the leased asset and the present value of the minimum payments, a value that will be credited to subaccount “2220 Obligations – Financial Leases”; in which an amount equivalent to that registered in the asset will be recognized, except for transaction costs.

Subsequent to their recognition as an asset, any item of Properties and Equipment, including financial leases incorporated in this account, will be accounted for at its

acquisition cost less accumulated depreciation and any amount of impairment loss.

Primary Subaccount 1217 OTHER GOODS

In this subaccount, the value of works of art, the library, and other goods acquired by the Manager is recorded.

Primary Subaccount 1218 INVESTMENT PROPERTIES

These subaccounts must represent the value of goods held by the Manager, with the purpose of obtaining future rents or capital gains. Additionally, those assets that are under construction and development, whose objective is their future use as Investment Properties, will be recognized.

The secondary subaccounts that make up this subaccount will be debited at the time of purchase, at their acquisition value, or at the value of remodeling or reconfiguration with credit to cash and cash equivalent accounts or to accounts payable, or the accounts used for the accumulation of their cost.

Account 122 IMPROVEMENTS IN PROPERTY, PLANT AND EQUIPMENT

Primary Subaccount 1220 IMPROVEMENTS

Records the updated amount of improvements and installations incorporated in Property, Plant and Equipment by the Manager for its use; these must imply substantial modifications in the form and conditions of use of said assets.

Account 123 INTANGIBLE ASSETS

The treatment for intangible assets is analogous to that defined for depreciable Property and Equipment assets. In these, assets such as licenses, software programs, among others, will be recognized.

Account 124 ACCUMULATED DEPRECIATION, AMORTIZATION AND IMPAIRMENT (CR)

Primary Subaccount 1240 ACCUMULATED DEPRECIATION (CR)

Primary Subaccount 1241 ACCUMULATED AMORTIZATION (CR)

Primary Subaccount 1242 ACCUMULATED IMPAIRMENT (CR)

Subaccount 1240 is credited with the amounts of periodic depreciation with debit to account “412 Expenses for depreciation, amortization and impairment from current operations”.

Subaccount 1242 is credited with the amounts of impairment losses established with debit to subaccount “4123 Impairment loss on assets”, applying the corresponding secondary subaccount.

Impairment recording:
In the case of impairment loss, subaccount “1242 Accumulated Impairment” will be credited with debit to subaccount “4123 Impairment loss on assets”.

When the impairment loss is reversed, subaccount “1242 Accumulated Impairment” will be debited with credit to secondary subaccount “5241000 Gain on reversals of impairment loss on assets – Properties and equipment”.

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

Account 125 LONG-TERM FINANCIAL INVESTMENTS

Primary Subaccount 1250 FINANCIAL ASSETS HELD AT AMORTIZED COST

Primary Subaccount 1251
FINANCIAL ASSETS AT FAIR VALUE WITH CHANGES IN OTHER COMPREHENSIVE INCOME

This account presents all investments in financial instruments made by the Manager with terms greater than one year, other than accounts receivable and others that incorporate a quality of financial instrument but are grouped in another classification. Investments will be made in accordance with the Investment Policy defined by the Manager.

Primary Subaccount 1252 RESTRICTED FINANCIAL ASSETS

Primary Subaccount 1253 OVERDUE FINANCIAL ASSETS

Primary Subaccount 1254 ADJUSTMENTS OF FINANCIAL INVESTMENTS (CR)

In these subaccounts, long-term financial assets held at fair value or amortized cost will be recognized, which have been restricted because they have been given as collateral or other type of restriction, are contractually overdue, or present default in the payment of principal or interest greater than 90 days. Such assets will be reclassified to their original accounts, at the moment they are free of all encumbrances.

Account 126 LONG-TERM ACCOUNTS RECEIVABLE

Account 127 ESTIMATE OF RESERVES FOR UNCOLLECTIBLE ACCOUNTS

These accounts, with the exception of secondary subaccount “1269080 Deferred Income Taxes on Current Earnings”, will have the same treatment as their counterparts in current assets: “115 Accounts Receivable” and “116 Estimate of Reserves for Uncollectible Accounts”, considering only the long term. (2)

Secondary Subaccount 1269080 (2) DEFERRED INCOME TAXES ON CURRENT EARNINGS (2)

It will be debited, initially, for the amount of deferred tax assets computed, applying the prevailing tax rates, on deductible temporary differences that at the date they are constituted increase fiscal income and whose future reversal will increase fiscal expenses, thereby decreasing future tax payable, with credit to subaccount “4400030 Expense for income tax on earnings – Constitution of deductible temporary differences”.

It will be credited when the deductible temporary differences constituted in previous periods or in the current exercise are reversed, with debit to subaccount “4400020 Expense for income tax on earnings – Reversal of deductible temporary differences”.

It will be debited or credited, as appropriate, in subsequent reviews, generally at the close of the accounting exercise, when management makes the corresponding adjustments based on the temporary differences registered in previous periods and those established in the current period.

It should be noted that, on some occasions, deferred assets or deferred liabilities for temporary differences will affect equity accounts instead of income accounts; in such case, the equity account will be the one registered net of the corresponding asset or liability; example: revaluations of Property, Plant and Equipment, fluctuations in value of financial assets with changes in other comprehensive income, 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 on each annual closing date.

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

The book value 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 regulations; b) A reassessment of the recoverability of deferred tax assets; or c) A change in the expected manner of recovering the book value of an asset.

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

The proposed treatment of income and expense for taxes, both current and deferred, is aligned with the financial framework; the effects of the application of the fiscal framework are not treated here. (2)

Account 128 CONSTRUCTION WORKS IN PROGRESS

In this account, works in progress on goods owned by the Manager are recorded. The goods included in this account are not depreciated.

It is charged with construction, conditioning, or equipment costs.

It is credited by the transfer to the corresponding accounts at the value recorded at the end of the works.

Account 129 LONG-TERM ASSETS HELD FOR SALE

This account will be integrated by long-term assets reclassified to this category, because management has decided to recover them through a sale operation rather than by their continuous use and by long-term assets acquired by management exclusively for the purpose of their subsequent alienation. These assets will not be depreciated while they are classified in this category.

It is debited at the time of its reclassification as an asset of this category or upon its acquisition, with credit to the corresponding asset accounts at their net book value (book value less accumulated depreciation) from the long-term asset where they come from, normally from the Non-Current Asset element or to cash and cash equivalent accounts or to creditors/debtors respectively when they are acquired or enter the entity with this purpose.

For increases in fair value over the recorded value at the time of their transfer or acquisition, crediting subaccount “3501050 - Long-term assets held for sale”.

It will also be debited, if applicable, for the recognition of accrued and uncollected income within the exercise, crediting the Income subaccount “5202000 Interest and dividends from the financial investment portfolio”.

It will be debited for the reversal of impairment, crediting subaccount “5241- Reversals of impairment loss on non-current assets”.

It will be credited for decreases in fair value over the recorded value at the time of their transfer or acquisition, debiting the Equity account “3501050 Revaluations- Long-term assets held for sale”.

They will be credited for alienations, with debit to cash and cash equivalent accounts or to accounts receivable and, in case of gain or loss occurring, to the primary income subaccount “5240 Gain on sale of Assets” and expense subaccount “4210 Losses on sale of assets”, respectively, writing off the account for the amount it was constituted in case of revaluation adjustments.

It will be credited for dividend distributions charged to earnings generated before the acquisition of the participation, with debit to cash or other asset accounts.

SECTION 2
ACCOUNTING APPLICATIONS MANUAL OF LIABILITIES

Element 2 LIABILITY

Item 21 CURRENT LIABILITY

In this element, obligations contracted by the Manager from normal operations of its business derived from debts from credits obtained and expenses incurred in the business operation, as well as obligations with personnel and various provisions, among others, are presented.

The current liabilities item represents the obligations of the Manager whose maturity is less than one year.

Account 210 FINANCIAL LIABILITIES AT FAIR VALUE

This account includes all financial liabilities that the Manager has declared in its policies that it acquires with the intention of managing them within a business model, whose purpose is to use them as hedging items for the financial risks to which it is exposed.

Primary Subaccount 2100 FOR RISK MANAGEMENT

In this subaccount, they will be recognized from their initial moment or by reclassification from the account in which the item that the Manager has decided to designate as a hedging item is located.

This account will be used for the changes in value that the hedges suffer in their daily valuation.

This element includes all financial liabilities that the Manager has declared in its policies, which it acquires with the intention of using them as hedging items for the financial risks to which it is exposed.

All financial instruments aggregated in this group are characterized by the fact that their valuation will always be at fair value.

Primary Subaccount 2101 FINANCIAL PRODUCTS PAYABLE

Secondary Subaccount 2101000 INTEREST OR YIELDS

This subaccount will show the amounts of yields payable as of the Balance Sheet date for the different financial liabilities.

In it, all interest concepts, established based on the contractual interest rate, that correspond to the yield generated by the financial liabilities will be recognized.

It will be credited for the accumulation or accrual and debited for cash payments or corrections to the same originated by various causes.

Account 211
LOANS AND OVERDRAFTS WITH BANKS AND OTHER ENTITIES OF THE LOCAL FINANCIAL SYSTEM

Primary Subaccount 2110
OVERDRAFTS WITH BANKS AND OTHER ENTITIES OF THE LOCAL FINANCIAL SYSTEM

Primary Subaccount 2111
LOANS WITH BANKS AND OTHER ENTITIES OF THE
LOCAL FINANCIAL SYSTEM

This account includes financing and overdrafts obtained from Banks and Other Entities of the Local Financial System.

Account 212 CURRENT PORTION OF LONG-TERM LIABILITIES

This account considers the amount to be paid for the maturity in the current exercise of the long-term obligations contracted by the Manager.

Account 213 FINANCIAL PRODUCTS PAYABLE

The secondary subaccounts that make up this account are credited with the amount corresponding to the contractual interest, debiting the corresponding accounts from subaccount “4230 Expenses for obligations with Financial Institutions – Interest Expenses” for the amount equivalent to the financial expense; any difference existing between the amount credited and the owed between the two indicated subaccounts is assigned with debit or credit, as appropriate, to the capital accounts of account “211 Loans and overdrafts with banks and other entities of the local financial system”, whichever corresponds.

Account 214 ACCOUNTS PAYABLE

In this account, accounts payable and documented obligations arising from the acquisition of non-financial assets and other usual operations of the Manager will be recorded.

They are credited for the amounts of the assumed liabilities with debit to the affected accounts which will generally be expenses or equity accounts.

They are debited when the assumed liabilities are settled with credit to cash and cash equivalent accounts or others, if required.

Primary Subaccount 2140 INVESTMENT FUNDS

In this subaccount, the values payable to the Investment Funds that the Manager administers and that are pending payment at the close of the Financial Statements will be recognized.

Primary Subaccount 2141 CLIENTS
Amounts payable to clients for the marketing of participation units in Foreign Investment Funds shall be recognized.
Commissions payable for the marketing of Voluntary Previsional Savings Funds that the Manager holds for these operations shall also be recorded in the secondary subaccount. (5)

Primary Subaccount 2142 INVESTMENT FUND MANAGERS Amounts payable to Investment Fund Managers for investments in investment units of Local Investment Funds managed by other local Managers shall be recognized. Other payables to the same shall also be recorded.

Primary Subaccount 2143 FOREIGN INVESTMENT FUND ADMINISTRATORS Amounts payable to Foreign Investment Fund Administrators for the marketing of participation units in Foreign Investment Funds shall be recognized.

Primary Subaccount 2144 BROKERAGE FIRMS
Financial instruments negotiated pending settlement, which represents the purchase commitment, shall be recorded in this subaccount.
This shall be settled when the purchase funds are delivered. As well as other payables to the same.

Primary Subaccount 2145 MARKETERS
Amounts owed to marketers for the marketing of participation units in Local Investment Funds, as well as other payables to the same, shall be recorded in this subaccount.

Primary Subaccount 2148 RELATED PARTIES

This subaccount aggregates amounts owed between entities within the group (intra-group 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 with amounts due from intra-group entities and on which there is an obligation to settle them gross or net if there are offsettable accounts in the primary subaccount “1158 Accounts Receivable - Related Parties” in the assets generated between them 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.

Account 216 OTHER ACCOUNTS PAYABLE

Primary Subaccount 2160 THIRD-PARTY SERVICES
This corresponds to the obligations incurred by the Manager with third parties for services provided for its own operations.
This account will be increased by crediting it with the amounts corresponding to payments the Manager has received on behalf of third parties, for example: custody services, marketers, and others related to the Manager's activity, etc. It will be debited when the corresponding amounts are settled.

Primary Subaccount 2161 WITHHOLDINGS
This subaccount is increased by crediting it with the amounts corresponding to all statutory or other withholdings that the Manager has made from its employees. It is debited when the obligations are settled with the corresponding holders.

Primary Subaccount 2162 EMPLOYER CONTRIBUTIONS This represents the liability assumed by the Manager in the concept of statutory contributions, which it must provide and which at the end of the monthly period are accrued to be settled in the following monthly period. It is credited with a debit to account “4110 General Administrative and Personnel Expenses – Personnel Expenses”.

Primary Subaccount 2163 EMPLOYEE BENEFITS

Provisions for benefits that the Manager has with its employees shall be recorded in this subaccount.

Primary Subaccount 2164 OPERATING LEASES
This subaccount will be increased by crediting it with the amounts corresponding to operating lease installments that have been incurred but not yet settled.
It will be debited when the amounts are amortized with a credit to the amortization accounts used.

Primary Subaccount 2165 OTHER ACCOUNTS PAYABLE Other payables not specifically considered in the previous classifications shall be recorded in this subaccount.

Primary Subaccount 2166 AUDIT COSTS
The obligations that the Manager has to contribute to the cost of supervision services shall be recorded in this subaccount.

Account 217 TAXES

Primary Subaccount 2170 VAT FISCAL DEBIT
This account will be increased by crediting it with the amounts collected as VAT in service provision transactions subject to the application of the respective Law. It will be debited by settling it against subaccount “1170000 Taxes – VAT fiscal credit”; if there is a difference in the settlement, it will be debited against account “2170010 Accounts Payable – VAT payable”. In the event that credits are greater than fiscal debits, the difference will be transferred to subaccount “1170010 Taxes VAT fiscal credit – Fiscal credit balances”.

Primary Subaccount 2171 TAXES ON FINANCIAL OPERATIONS

Primary Subaccount 2172 INCOME TAX ON CURRENT EARNINGS

Secondary Subaccount 2172000 PAYMENT ON ACCOUNT The current tax, corresponding to the present and previous periods, must be recognized as a payment obligation to the extent that it has not been settled. Its operation is as follows:
It is credited, initially, for the payment on account obligation, with a debit to subaccount “1172000 Taxes – Income Tax on Current Earnings - Payment on Account”.
It is debited on the date the Manager remits the payment to the corresponding fiscal authorities.

Secondary Subaccount 2172010 INCOME TAX ON EARNINGS OF THE PERIOD 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 subaccount “4400000 Income Tax – Expense for Income Tax - Current Income Tax”. The amount of this account constituted throughout the accounting period is reversed with a debit at the end of the accounting period, crediting subaccount “4400000 Current Income Tax”. The above applies if the entity wishes to recalculate its total fiscal obligations at the end of the period from zero. At the end of the accounting period, it is credited for the definitive amount established as income tax, being the amount recognized in this account computed by applying the tax rate on fiscal earnings, with a debit to subaccount “4400000 Income Tax – Expense for Income Tax – Current Income Tax”. This subaccount is subsequently debited with a credit to subaccounts “1172000 Income Tax on Current Earnings - Payment on Account” and “1172010 Income Tax on Current Earnings – Withheld Tax”. The remaining credit balance from this netting will represent the income tax pending payment, which will be settled with a credit to cash and cash equivalent accounts or another corresponding account. In the event that the remaining balance after netting is a debit, such amount will be transferred with a debit to subaccount “1172020 Taxes – Balance of Income Taxes”.

Primary Subaccount 2173 SPECIAL STATUTORY CONTRIBUTIONS (1)

Secondary Subaccount 2173000
CITIZEN SECURITY PLAN - LARGE TAXPAYERS
(1)
This account represents the special contribution for the citizen security plan that the entity is required to pay. This account will be credited with monthly increases and debited with monthly decreases and when the tax is paid. (1)

Item 22 NON-CURRENT LIABILITY
This represents the set of obligations, borne by the Brokerage Firm, whose maturity occurs at more than one year term.

Account 220 LONG-TERM LOANS
In this item, obligations incurred by the Manager with third parties, domiciled or non-domiciled, shall be recorded.
Obligations in this item shall be initially recognized at their fair value, which will generally be equal to the agreed contractual amount less transaction costs incurred, and subsequently measured at amortized cost applying the effective interest rate method.

Account 221 FINANCIAL COSTS PAYABLE
The account will show the amounts of interest payable at the Balance Sheet date for the different financial liabilities.
In this, all interest concepts, established based on the contractual interest rate, corresponding to the yield generated by the loans shall be recognized.
It will be credited for the accumulation or accrual and debited for cash payments or corrections to the same originating from various causes.

Account 222 LEASE OBLIGATIONS

Primary Subaccount 2220 FINANCIAL LEASE OBLIGATIONS

Primary Subaccount 2221 OPERATING LEASE OBLIGATIONS This represents the future payments the company will incur for both financial and operating leases.

Account 223 DEFERRED INCOME TAX
It will be credited, initially, for the amount of deferred taxes computed, applying the current fiscal rates, on taxable temporary differences that at the date they are constituted increase fiscal expenses, consequently reducing the tax payable; and whose future reversal will increase fiscal income, consequently increasing the taxes payable, with a debit to subaccount “4400010 Expense for Income Tax – Constitution of Taxable Temporary Differences”. It will be debited in the following cases:
a) When the taxable temporary differences constituted in previous periods or in the current exercise are reversed, with a credit to subaccount “4400040 Expense for Income Tax – Reversal of Taxable Temporary Differences”; or b) In subsequent reviews, generally at the end of the accounting period, when management makes the corresponding adjustments based on the temporary differences recorded in previous periods and those established in the current period, if the result implies a downward adjustment. It must be kept in mind that on some occasions deferred tax assets or deferred tax liabilities for temporary differences will affect equity accounts instead of income accounts; in such case, the equity account will be recorded net of the corresponding asset or deferred tax liability; example: revaluations of Property, Plant and Equipment, fluctuations in the value of financial assets with changes in other comprehensive income, 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 liabilities must be evaluated at least at each annual closing date.

Account 224 LONG-TERM ACCOUNTS PAYABLE

Primary Subaccount 2240 RELATED PARTIES
In this account, long-term obligations with related companies shall be recorded, under the forms referred to in the item description.

Account 225 DEFERRED INCOME
The accounts in this subgroup represent operations that in the future will allow the recognition of income; and any other concept that at the date it is received does not meet the

condition of income.

Account 226 PROVISIONS
This account represents obligations registered by the Manager in the concept of future obligations; which are based on legal regulations or internal policies of the Manager.
Its recognition will take place, only if the following three conditions are met:
a) If the Manager has a present obligation as a result of a past event; b) If it is probable that the Manager will have to part with resources, incorporating economic benefits to cancel such obligation; and c) If the Manager can make a reliable estimate of the amount of the obligation.

Primary Subaccount 2260 LABOR
This subaccount represents the obligations assumed for some or all of the following concepts:
Estimate of dismissal indemnity, voluntary retirements, other benefits related to the termination of the employment relationship, etc.; which are either contemplated in the legal framework governing labor obligations or are an implicit assumption due to the Manager's historical behavior regarding them. It will be credited for the estimated amount of the assumed obligation with a debit to the primary subaccount “4110 General Administrative and Personnel Expenses – Personnel Expenses”. It will be debited:
a) When the provision is applied, for its payment, with a credit to cash and cash equivalent accounts, or for its recognition in accounts payable; or b) Because the risk disappears, with a credit to account “524 Other Financial Income”.

Primary Subaccount 2261 FOR JUDICIAL LITIGATION This subaccount will represent the loss estimates, according to the best estimate applied by the Manager, in relation to lawsuits filed against it and for whose negative resolution, the Manager considers probable (more likely to occur than not) an outflow of economic resources. It is credited for the estimate made with a debit to subaccount “4119000 General Administrative and Personnel Expenses – Provisions for Judicial Litigation”. It will be debited:
a) When the provision is applied, for its payment, with a credit to cash and cash equivalent accounts, or for its recognition in accounts payable; and b) Because the risk disappears, with a credit to account “524 Other Financial Income”.

Primary Subaccount 2262 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 Manager has an onerous contract, the final debt derived from it must be recognized and measured as a provision.
The accounting application of this account is analogous to account 2262000, always being careful to apply the corresponding subaccounts, if such are different.

Primary Subaccount 2263 OTHER PROVISIONS
This subaccount will be affected by any other provision that meets the conditions for its recognition and is not one of those cited above.
The accounting application of this account is analogous to account “2261000 Provisions for Judicial Litigation”, always being careful to apply the corresponding subaccounts, if such are different.

SECTION 3
ACCOUNTING APPLICATIONS MANUAL OF EQUITY

Element 3 EQUITY
This element recognizes all those items that meet the definition of equity, which is defined as the residual interest in the assets of the Manager after deducting all its liabilities.

It can be subdivided, among others, into funds contributed by shareholders, profits pending distribution, specific reserves derived from profits, and reserves for capital maintenance adjustments.

Item 31 CAPITAL

Account 310 SHARE CAPITAL

Primary Subaccount 3100 SUBSCRIBED CAPITAL
This account records the total of shares subscribed for the constitution of the initial share capital of the Manager.
It is credited for the subscribed capital and for successive increases, with a debit to the corresponding cash accounts in the case of cash contributions or to account “3101000 Share Capital – Unpaid Subscribed”, for the amount that is subject to payment based on payment calls by the competent body. It is debited for reductions authorized by the supervisory entity with a credit to cash and cash equivalent accounts, accounts payable, loss amortization, etc., in any case, the corresponding one.

Primary Subaccount 3101 UNPAID SUBSCRIBED CAPITAL This account will be initially affected with a debit for the amounts corresponding to unpaid share capital subscription and subsequently credited for the amortized calls that are made based on the constitution statutes of the Manager or other legal character that apply.

Item 32 RESERVES

Account 320 CAPITAL RESERVES
Capital reserves originate as an appropriation of the period's profits or retained earnings and their constitution has a specific purpose, by legal mandate, by internal policies or statutes of the Manager. They are credited for the amount designated annually in the concept of the specific reserve with a debit to accounts in the sub-group “340 Result of previous periods”, the corresponding one.

Item 34 RESULTS TO APPLY

Account 340 ACCUMULATED PROFITS (LOSSES)

Account 341 CURRENT PERIOD RESULTS
These accounts are credited (debited) with the amounts representing the profits (losses) generated in previous periods or in the current period and for which the Manager has not yet made decisions on their final destination. They are credited (debited) with the amounts of net results obtained at the end of each accounting period with a debit (credit) to the income accounts, on the date these are settled. At the end of the accounting period, the results of the current period are transferred to results of previous periods.

Item 35 RESTRICTED EQUITY

Account 350 UNDISTRIBUTABLE PROFITS
This sub-group is integrated by items that are subject to some kind of restriction.

Primary Subaccount 3500 ACCRUED UNRECEIVED INCOME This subaccount is credited with 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, or any other gain that may have been accrued throughout the current period or in previous periods, but at the date of the financial statements they are not considered realized, that is, they have not been recovered in cash. It is debited to the extent that the accrued income of the previous period is recovered in cash, throughout the accounting period or at the end of it, 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 balances pending recovery at the end of the closing period.

Primary Subaccount 3501
ACCUMULATED VALUATION ADJUSTMENTS FROM OTHER COMPREHENSIVE INCOME In this subaccount, amounts accumulated at the end of the period throughout the same within account “352 Other Comprehensive Income” shall be recorded. Consequently, these amounts will be accumulated from the current period and previous periods while the items that gave rise to them remain within the Balance Sheet.

Account 351 DONATIONS
This account recognizes amounts received by the Manager in the concept of donation. It is credited on the date the Manager acquires control over the item received as a donation, recording it at its fair value with a debit to the corresponding asset items.

Account 352 OTHER COMPREHENSIVE INCOME
This account will receive credits or debits, depending on the nature of the movement or item at the time of recognition, for all amounts representing gains or losses on items whose valuation requires that gains or losses on them be recognized within equity.

Primary Subaccount 3520 REVALUATIONS
This subaccount will be increased by crediting it with the amounts of revaluations of value performed on the reporting entity's real estate or other classes of assets subject to revaluation of value, provided the latter affects the Financial Statements. The established revaluation amounts that affect the Financial Statements will be presented at net values by applying, with the corresponding debit or credit, to the subaccount "3525 Other Comprehensive Income - Tax".

It will be debited when the established revaluation amounts are negative (amounts lower than previously established) with a credit to the value of the affected asset (or to the asset value correction account, if applicable). On this same date, the established tax amount in this account will be corrected.

Primary Subaccount 3522
CHANGES IN FAIR VALUE OF HEDGING FINANCIAL INSTRUMENTS This item will be affected with credits or debits, as applicable, for changes in the fair value of items designated as accounting hedges in a cash flow hedge or net investment hedge. Changes in fair value that have been assigned to this account are not transferred to profit or loss on the date the items that originated them are disposed of; they may be reclassified from one equity item to another. The applications made to this item must be net of taxes.

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 the one that will be recognized in this account. The ineffective portion in the hedging instrument will be recognized in the accounts "5230 Gains from ineffective amounts in hedging items" or "4220 Losses from ineffective amounts in hedging operations", whichever applies according to the nature of the change in the fair value of the hedged item. For this type of hedge, 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 in the hedging item remains recognized in this account.

These adjustments will be transferred to profit or loss when the following occurs:
When the hedge of a forecast transaction subsequently results in the recognition of a financial asset or a financial liability. In this case, the gain or loss of the hedge is registered in this account and subsequently transferred to profit or loss as a reclassification adjustment in the period or periods during which the covered forecasted cash flows affect profit or loss, provided that the interest income (expenses) of the hedged item affect profit or loss.

If the covered forecast transaction results in the recognition of a non-financial asset or liability, the entity adjusts the carrying amount of the asset or liability with the amount of the gain or loss of the hedge previously deferred in this account.

Primary Subaccount 3523 FOREIGN CURRENCY CONVERSION DIFFERENCES It will record expenses for exchange losses and in the purchase and sale of foreign currency related to foreign currency operations.

Primary Subaccount 3524 LONG-TERM ASSETS HELD FOR SALE This account will be affected by crediting or debiting it according to the nature of the item's change. The value changes recognized here will come from assets that are within a group of assets classified as long-term assets available for sale and whose gains or losses require being recorded in other comprehensive income.

Primary Subaccount 3525 TAXES
In this account, taxes corresponding to each of the items recognized in other comprehensive income will be recorded. This account has an application similar to the tax expense account incorporated in the accounts of the Statement of Profit or Loss.

SECTION 4
ACCOUNTING APPLICATION MANUAL FOR EXPENSES
Element 4 EXPENSES
Item 41 OPERATING EXPENSES
Account 410 EXPENSES FOR MARKETING OF INVESTMENT FUNDS This group includes operating expense accounts related to the Manager's activities. It includes expenses related to the marketing of participation shares of local and foreign Investment Funds, general administrative and personnel expenses, as well as depreciation, amortization, and impairment from current operations.

Account 411 GENERAL ADMINISTRATIVE AND PERSONNEL EXPENSES This account is debited for expenses incurred in the concept of items such as remuneration, staff benefits, board expenses, and other expenses for officials and employees, with credit to the accounts of Item 11 or to the accounts of the sub-group "214 Accounts Payable" or "226 Provisions" or others, as applicable.

Account 412
EXPENSES FOR DEPRECIATION, AMORTIZATION AND IMPAIRMENT FROM CURRENT OPERATIONS The subaccounts that make up this account 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 credit to the accounts "1240 Accumulated depreciation, amortization and impairment (or) - Accumulated Depreciation".

Primary Subaccount 4123 ASSET IMPAIRMENT LOSSES This subaccount will be affected with the amounts corresponding to identified impairment losses on Accounts Receivable, Property and Equipment, and Intangibles.

Account 413
DEPRECIATION EXPENSE FOR PROPERTY, PLANT AND EQUIPMENT FROM LONG-TERM OPERATIONS This account considers the expense for depreciation of non-current assets due to normal use and the passage of time.

Account 414
EXPENSES FOR MARKETING OF VOLUNTARY PENSION SAVINGS FUNDS (5) It includes expenses related to the marketing of Voluntary Pension Savings Funds incurred by the manager, as well as for the provision of marketing services for said Funds. (5)

Item 42 FINANCIAL EXPENSES
Account 420
FINANCIAL EXPENSES FROM OPERATIONS WITH FINANCIAL INSTRUMENTS Expenses for effective interest incurred in the concept of financial obligations assumed by the entity are recorded with credit to the corresponding liability accounts.

Primary Subaccount 4200 LOSSES FROM SALE OF FINANCIAL ASSETS AND LIABILITIES The losses that the Manager incurs in the sale of Financial Assets and Liabilities carried out in the course of its business are recorded.

Primary Subaccount
4201 ASSET IMPAIRMENT LOSSES FROM
FINANCIAL ASSETS
Secondary Subaccount 4201000 HELD AT AMORTIZED COST This subaccount will be affected with the amounts corresponding to identified impairment losses on financial instruments measured at amortized cost and which are incorporated in the accounts of the group "114 Financial Investments".

On the date this account is affected, there must be relevant evidence that the financial instrument has deteriorated in part (or all) of its carrying amount. It is debited with the amount of identified impairment loss with credit to the accounts of the sub-group "1147 Adjustments to financial investments", as applicable; unless the loss is applied directly to the affected asset.

Furthermore, this account must represent the estimate for uncollectibility of the accounts that make up the Accounts Receivable account; its balance is a credit balance, therefore, it presents a decrease to the sub-group to which it belongs.

Primary Subaccount 4202
LOSSES FROM CHANGES IN FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES

This subaccount is debited for downward changes in the fair value of Financial Assets and for upward changes in the fair value of Financial Liabilities.

Secondary Subaccount 4202000 HELD FOR TRADING
This subaccount will be affected by debiting it with downward changes in the fair value of Financial Assets and upward changes in the fair value 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.

Secondary Subaccount 4202020 FOR RISK MANAGEMENT This subaccount will be affected with the changes in fair value of financial items designated as accounting hedges in a fair value hedge.

If the changes in fair value in the accounting hedged 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 assessment, this subaccount will be debited for the amount of the change in fair value that equals the effective amount of the hedge.

Likewise, this subaccount will be affected with the changes in fair value of financial items designated as hedged items in a fair value accounting hedge. 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.

Primary Subaccount 4203 OTHER INVESTMENT EXPENSES This subaccount will be affected with the amounts corresponding to other financial expenses generated by events for which no specific accounts have been identified in which to recognize them and, furthermore, they do not fit into any of the other classifications stated to recognize the different types of financial expenses that the Manager may incur.

Secondary Subaccount 4203000 TRANSACTIONAL COSTS

This subaccount will be affected with the transactional costs incurred by the Manager in obtaining financial instruments whose subsequent measurement is at fair value with changes in profit or loss or in other comprehensive income.

Primary Subaccount 4204 EXPENSES FROM EXCHANGE DIFFERENCES In this subaccount, losses incurred in operations due to exchange rate fluctuations arising in assets and liabilities denominated in foreign currency are recorded.

Secondary Subaccount 4204000 LOSS FROM EXCHANGE RATE FLUCTUATIONS In the case of exchange rate fluctuations of items denominated in foreign currency:

It is debited with the amounts incurred in the concept of losses from conversion, at the purchase exchange rate, of the functional currency, on the closing date of the Financial Statements.

With credit to the affected monetary asset and liability items. Assets from downward changes and liabilities from upward changes.

Account 421 LOSSES FROM PHYSICAL AND INTANGIBLE ASSETS Primary Subaccount 4210 LOSSES FROM SALE OF ASSETS This account will be affected by debiting it with the amounts corresponding to the loss obtained in the sale of assets, on the date it is carried out. With credit to the corresponding asset account.

Account 422
LOSSES FROM INEFFICIENT AMOUNTS IN RISK MANAGEMENT OPERATIONS Primary Subaccount 4220 LOSSES FROM INEFFICIENT AMOUNTS IN HEDGING OPERATIONS This account will be affected by debiting it with the inefficient amounts that imply a loss and that arise in a hedge relationship, any of those established in the chart of accounts.

It will also be affected with amounts representing inefficient values that imply a loss and that come from a hedged item; in the latter case, only from a hedged item in a fair value hedge relationship.

Account 423 EXPENSES FOR OBLIGATIONS WITH FINANCIAL INSTITUTIONS This account will be affected by debiting it with the amounts corresponding to the loss obtained in the sale of financial instruments, held for trading, equity instruments, and those designated at fair value on the date it is carried out. With credit to the corresponding asset or liability account.

Account 424 EXPENSES FOR ACCOUNTS PAYABLE
In this account, expenses such as interest related to accounts payable derived from the entity's own activities are recorded.

Account 425
EXPENSES FOR GOODS RECEIVED UNDER FINANCIAL LEASE In this account, financial expenses such as interest derived from financial lease obligations are recorded.

Account 426 OTHER FINANCIAL EXPENSES
In this account, other financial expenses derived from credit lines and contracted guarantees are recorded.

Item 43 OTHER FINANCIAL EXPENSES
Account 430 OTHER EXPENSES
Expenses that the Manager incurs for various concepts such as asset exploitation expenses, for Administration of Voluntary Pension Savings Funds, and any other expenses of similar nature are recorded in this item, with credit to the "110 Cash" account or another asset account as applicable. (5)

Item 44 TAXES ON PROFITS
In this item, all concepts related to profit tax, both current and deferred, and likewise both income and expenses for this concept, are applied.

Account 440 EXPENSES FOR TAX ON PROFITS
Secondary Subaccount 4400000 CURRENT PROFIT TAX This subaccount 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.

Secondary Subaccount 4400010
CONSTITUTION OF TAXABLE TEMPORARY DIFFERENCES
(CREDIT BALANCE)
This subaccount 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 constituted taxable temporary differences.

This subaccount increases fiscal expenses on the date of its constitution, consequently reducing the current taxes payable to the tax authority.

Secondary Subaccount 4400020
REVERSAL OF DEDUCTIBLE TEMPORARY DIFFERENCES
(CREDIT BALANCE)
This subaccount 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 subaccount increases fiscal expenses on the date of its reversal, consequently reducing the current taxes payable to the tax authority.

Secondary Subaccount 4400030
CONSTITUTION OF DEDUCTIBLE TEMPORARY DIFFERENCES ( DEBIT BALANCE) This subaccount 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 constituted deductible temporary differences. This subaccount increases fiscal income on the date of its constitution, consequently increasing the current taxes payable to the tax authority.

Secondary Subaccount 4400040
REVERSAL OF TAXABLE TEMPORARY DIFFERENCES (DEBIT BALANCE) This subaccount 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 subaccount increases fiscal income on the date of its reversal, consequently increasing the current taxes payable to the tax authority.

The net amount of this item 44 is equivalent to the profit tax established on financial or accounting profits, that is, accounting profits multiplied by the tax rate.

Item 45 SPECIAL CONTRIBUTIONS (1)
Account 450 SPECIAL CONTRIBUTIONS (1)
Primary Subaccount 4500 SPECIAL CONTRIBUTIONS BY LAW (1) Secondary Subaccount 4500000 CITIZEN SECURITY PLAN-LARGE TAXPAYERS (1) This account must represent the value for the amount of the Special Contribution to large taxpayers for the Citizen Security Plan for the accounting period. (1)

SECTION 5
ACCOUNTING APPLICATION MANUAL FOR INCOME
Element 5 INCOME
Item 51 OPERATING INCOME
Account 510 INCOME FROM ADMINISTRATION SERVICES In the accounts of this item, the income corresponding to all commissions accrued by the Manager in the concept of administration services for Investment Funds is recorded.

It is credited for the amounts accrued for this concept with a debit to the corresponding Accounts Receivable.

Account 511
INCOME FROM MARKETING OF PARTICIPATION SHARES OF FOREIGN INVESTMENT FUNDS In the accounts of this item, the income corresponding to all commissions accrued by the Manager for the marketing of participation shares of Foreign Investment Funds is recorded. It is credited for the amounts accrued for this concept with a debit to the corresponding Accounts Receivable.

Account 512
INCOME FROM VOLUNTARY PENSION SAVINGS FUNDS
(5)
In the accounts of this item, the income from services provided by the Manager, such as administration and marketing commissions for Voluntary Pension Savings Funds, is recorded. (5)

Item 52 FINANCIAL INCOME
Account 520
INCOME FROM OPERATIONS WITH FINANCIAL
INSTRUMENTS
In the accounts of this item, the effective interest accrued on deposits and financial investments held by the Manager is recorded. It is credited for the amounts accrued for this concept with a debit to the corresponding financial products receivable accounts.

Account 521 INCOME FROM ACCOUNTS AND DOCUMENTS RECEIVABLE This account records the income accrued in the period in the concept of interest, originated by the operations included in the accounts and documents receivable item.

Account 522 GAINS ON FINANCIAL INVESTMENTS
This account includes all realized or unrealized gains, resulting from operations carried out with financial investments.

Primary Subaccount 5220 GAIN FROM SALE OF FINANCIAL ASSETS AND LIABILITIES In this subaccount, gains obtained from the sale of financial instruments, whether held for trading, equity instruments, or those designated at fair value, will be recorded.

These subaccounts will be affected by crediting them with the amounts corresponding to the gains obtained in the sale of financial instruments on the date it is carried out.

With a debit to the corresponding cash and cash equivalent accounts.

Primary Subaccount 5221
GAIN FROM REVERSAL OF ASSET IMPAIRMENT LOSSES FROM FINANCIAL ASSETS In this subaccount, gains resulting from the reversal of impairment losses on Financial Assets measured at amortized cost will be accounted for.

This subaccount will be affected with the amounts corresponding to reversals of impairment losses applied to financial instruments that in previous evaluations present conditions of impairment, which caused the recognition of impairment losses for such instruments.

On 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 value of the instrument is not affected directly. The reversal of the impairment loss on these assets will not result in a book amount of the Financial Asset that exceeds the amortized cost that would have been determined if the impairment loss in value had not been recognized on the date of reversal. On the date that this account is affected, there will be evidence that the financial instrument has recovered part (or all) of its lost value; consequently, those increases in value will affect this account with a debit to the sub-accounts of the primary sub-account “1147 Adjustments of financial investments”. Reversals applied to this sub-account may also be originated by a reduction in the risk amount of Financial Assets previously impaired or by total cancellation thereof by the debtor. In addition, this sub-account must represent the reversals to the estimate for uncollectibility of the accounts that make up the accounts receivable.

Sub-account secondary 5221010
GAINS FROM REVERSAL OF RESERVES FOR UNCOLLECTIBLE ACCOUNTS This account will be affected with the amounts corresponding to reversals of impairment losses applied to financial instruments classified within the account “115 Accounts receivable” that in previous evaluations suffered deterioration in their credit quality, which caused the recognition of impairment losses on such instruments.

Sub-account primary 5222
GAINS FROM CHANGES IN FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES The secondary sub-accounts that make up this primary sub-account are credited for increases in the fair value of Financial Assets and for decreases in the fair value of Financial Liabilities.

Sub-account secondary 5222000 HELD FOR TRADING This sub-account will be credited with changes in fair value increases of Financial Assets and decreases 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 margin in the short term.

Sub-account secondary 5222020 FOR RISK MANAGEMENT This sub-account will be affected with changes in fair value of financial items designated as hedged items in a fair value hedge.
It will be credited with changes in fair value in the hedged 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. This sub-account will also be affected with changes in fair value of financial items designated as hedged items in a fair value accounting hedge. If the hedged item is an asset item, this account will be increased with the increases in that hedged item. If the hedged item is a liability item, this account will be credited with the decreases in that hedged item.

Account 523
GAINS FROM INEFFECTIVE AMOUNTS IN HEDGING OPERATIONS

Sub-account primary 5230
GAINS FROM INEFFECTIVE AMOUNTS IN HEDGING OPERATIONS This account will be affected by crediting it with ineffective amounts that imply a gain and that arise in a hedging relationship, any of those established in the Chart of Accounts. In addition, it will be affected with amounts that represent ineffective amounts that imply a gain and that come from a hedged item; in the latter case, only from a hedged item in a fair value hedging relationship.

Account 524 OTHER FINANCIAL INCOME

Sub-account primary 5240 GAINS FROM SALE OF ASSETS

This account will be affected by crediting it with amounts that represent a gain from the sale of Properties, Plant and Equipment and Intangibles with a debit to the cash and cash equivalents account corresponding.

Sub-account primary 5241
GAINS FROM REVERSAL OF IMPAIRMENT OF ASSETS
In these accounts, increases in the value of assets are recorded, when previously an impairment loss on the assets had been recognized, with a debit to the corresponding asset accounts, up to the amount of the previously recognized losses.

Sub-account primary 5242 OTHER FINANCIAL INCOME In this account, any other income (flows received by the Manager) that corresponds to income not classified in any of the previous descriptions will be recorded.

SECTION 6
ACCOUNTING APPLICATION MANUAL FOR CONTINGENT ACCOUNTS

Element 6 CONTINGENT AND OFF-BALANCE SHEET ACCOUNTS

Item 61 DEBTOR CONTINGENT COMMITMENT ACCOUNTS

Account 610 OPEN JUDICIAL PROCEEDINGS

Sub-account primary 6100 OPEN JUDICIAL PROCEEDINGS AGAINST THE MANAGER This element considers amounts that represent contingent liabilities, that is, those events that according to the Manager’s knowledge of them, at the date of the Financial Statements, it is not probable that a present obligation exists because of them and the possibility that a outflow of resources occurs because of them is not remote.

Account 611 OTHER CONTINGENT ACCOUNTS

Sub-account primary 6110 OTHER CONTINGENT ACCOUNTS In this account, all those other contingent operations that have not been treated in the previous groupings and that require their recognition are recorded.

Item 62 OFF-BALANCE SHEET ACCOUNTS

Account 620 INVESTMENT FUNDS IN ADMINISTRATION

In this item, each of the Investment Funds that the Manager administers will be recorded, and the values will correspond to the net asset value of each fund updated at the end of each month.

Account 621 OPEN JUDICIAL PROCEEDINGS

Sub-account primary 6210 OPEN JUDICIAL PROCEEDINGS BY THE MANAGER In this account, contingent amounts that could favor the Manager will be recorded, due to open judicial proceedings by the entity against third parties; and from which the probability of some monetary settlement in favor arises.

Account 622 OPERATIONS WITH FINANCIAL DERIVATIVE INSTRUMENTS In this account, the nominal or notional amounts of contracts for financial derivative instruments purchased (acquired) for the purpose of risk hedging will be accounted for.

Account 623 SECURITIES IN CUSTODY
In this account, the values of the Manager’s own financial instruments and those received from third parties that are in the custody of an authorized institution will be recorded.

Account 624 SECURITIES AND OWN ASSETS PLEDGED AS COLLATERAL In this account, the Manager’s securities and assets that have been pledged as collateral will be recorded.

Account 625 FINANCIAL GUARANTEES GRANTED
Represents the Manager’s eventual obligation to third parties for guarantees granted.

Account 626 GUARANTEES CONSTITUTED IN FAVOR OF THE MANAGER Represents the guarantees received by the Manager, which are recorded at market value or nominal value, whichever is lower when they correspond to securities, and based on the commercial value determined by an appraiser for pledge and mortgage guarantees.

Account 627
VOLUNTARY PENSION SAVINGS FUNDS IN
ADMINISTRATION (5)

In this account, each of the Voluntary Pension Savings Funds that the Manager administers will be recorded, and the values will correspond to the net asset value of each Fund updated at the end of each month. (5)

Account 628
FINANCIAL GUARANTEES FOR VOLUNTARY PENSION SAVINGS FUNDS (5) Represents for the Manager the contingent obligation to third parties for guarantees granted. (5)

SECTION 7
ACCOUNTING APPLICATION MANUAL FOR OFF-BALANCE SHEET ACCOUNTS

Element 7 CONTINGENT AND OFF-BALANCE SHEET ACCOUNTS BY CONTRA

Item 71 OFF-BALANCE SHEET CONTINGENT COMMITMENT ACCOUNTS BY CONTRA

Account 710 OPEN JUDICIAL PROCEEDINGS BY CONTRA

Account 711 OTHER OFF-BALANCE SHEET CONTINGENT ACCOUNTS BY CONTRA This item will serve as a contra-account for all contingent accounts developed in Section 6.

Item 72 OFF-BALANCE SHEET ACCOUNTS BY CONTRA

Account 720 INVESTMENT FUNDS IN ADMINISTRATION BY CONTRA

Account 721
OPEN JUDICIAL PROCEEDINGS BY THE MANAGER BY
CONTRA

Account 722
OPERATIONS WITH FINANCIAL DERIVATIVE INSTRUMENTS BY CONTRA

Account 723 SECURITIES IN CUSTODY BY CONTRA

Account 724
SECURITIES AND OWN ASSETS PLEDGED AS COLLATERAL BY CONTRA

Account 725 FINANCIAL GUARANTEES GRANTED BY CONTRA

Account 726
GUARANTEES CONSTITUTED IN FAVOR OF THE MANAGER BY CONTRA

Account 727
VOLUNTARY PENSION SAVINGS FUNDS IN
ADMINISTRATION BY CONTRA (5)

Account 728
FINANCIAL GUARANTEES FOR VOLUNTARY PENSION SAVINGS FUNDS BY CONTRA (5)

This item will serve as a contra-account for all off-balance sheet accounts developed in Section 6.

SECTION 8
ACCOUNTING APPLICATION MANUAL FOR ACCOUNTS FOR THE COMMERCIALIZATION OF PARTICIPATION UNITS OF FOREIGN INVESTMENT FUNDS

Element 8
COMMERCIALIZATION OPERATIONS OF PARTICIPATION UNITS OF FOREIGN INVESTMENT FUNDS

Item 81
DEBTOR ACCOUNTS FOR CASH AND RIGHTS FROM
COMMERCIALIZATION

Account 810 CASH
This element records the amounts received by the Manager from the commercialization operations of participation units of Foreign Investment Funds, originated by daily operations, on behalf of clients, remitting the funds received daily or at the latest, during the first hours of the next business day.

Account 811 BANKS
Its balance is debtor and represents the value corresponding to the commercialization that has not been placed or settled, and the Manager’s commissions received and the funds that have not been transferred to the administrative account. In case of a balance, the Manager must know how the balance reflected in it is integrated. The bank accounts used will be checking accounts. This account records the movement of funds for the settlement of commercialization operations carried out by the commercializer, or by cash received on behalf of clients or funds from issuers, according to instructions received.

Account 812 ACCOUNTS RECEIVABLE
In this account, the rights to be collected from purchase, sale, and redemption operations in the international market that the Manager carries out in its commercialization function are recorded.

Element 9
LIABILITIES FROM COMMERCIALIZATION OPERATIONS OF PARTICIPATION UNITS OF FOREIGN INVESTMENT FUNDS

Item 91 CREDITOR ACCOUNTS FOR COMMERCIALIZATION SERVICES

Account 910
LIABILITIES FOR FUNDS RECEIVED FROM CLIENTS FOR COMMERCIALIZATION OPERATIONS

This element contains the accounts necessary for the recording of liabilities on behalf of clients for the commercialization of Foreign Funds.
It records funds received from clients, and that have not been invested. Generally all funds are invested, but in cases where funds have been received at hours when investment can no longer be made.

Account 911 ACCOUNTS PAYABLE
Records the value of obligations to be paid to the brokerage house, for the commercialization of participation units of Foreign Investment Funds; to investors for commercialization of sales of participation units of Foreign Investment Funds. Accounts payable to investors for operations of sale of participation units of Open Foreign Funds are also recorded; and accounts payable to the Investment Funds it administers for sales operations.

Account 912 FUNDS RECEIVED FROM THIRD PARTIES
Records funds received from third parties, for pending operations, its balance is creditor and must correspond to the pending investor contributions and the Manager’s commissions for pending commercialization to be transferred to its administrative bank accounts.

CHAPTER V
FINANCIAL STATEMENT MODELS

Model 1
NAME OF THE INVESTMENT FUND MANAGER
General Balance Sheet
Balances as of December 31 (current year) and (previous year) (Expressed in thousands of United States dollars) Note (Current Year) (Previous Year) ASSETS Cash and Cash Equivalents (110 to 1132) 5 US$ US$ Financial Investments (1140 to 1147) 6 Net Accounts Receivable (1150 to 1159 – (116)) 7 Other Assets (1170 to 1181) 10 Deferred Tax Assets (1269080) (2) 9 Physical and Intangible Assets (120 to 124) 8 Long-Term Financial Investments (125) Net Long-Term Accounts Receivable (1260 to 1269 – (127)) Construction in Progress (128) Long-Term Assets Held for Sale (129) Total Assets LIABILITIES Financial Liabilities at Fair Value (2100 to 2101) 11 Loans and Overdrafts (211 to 213) Accounts Payable (214) 12 Withholdings Payable (215) Other accounts payable (216 to 217) Long-Term Loans (220 to 221) 13 Lease Obligations (222) Deferred Income Tax (223) 9 Long-Term Accounts Payable (224) Deferred Income (225) Provisions (226) Total Liabilities EQUITY 15 Social Capital (310) Reserves (32) Of capital (3200) Other reserves (3210 to 3220) Share-Based Payment Options (33) Results to apply (34) Of Previous Years (340) Of Current Year (341) Restricted Equity (35) Undistributable Profits (350) Donations (351) Other Comprehensive Income (352) Total Equity Total Liabilities and Equity The notes are an integral part of these Financial Statements.

Model 2
NAME OF THE INVESTMENT FUND MANAGER
Statement of Comprehensive Income
For the period from __ to ___
(Expressed in thousands of United States dollars) Note (Current Semester) (Previous Semester) OPERATING INCOME Income from Administration Services (510) 19 US$ US$ Income from Commercialization of participation units of Foreign Investment Funds (511) 20 Income from Voluntary Pension Savings Funds (5) OPERATING EXPENSES Expenses from Commercialization of Investment Funds (410) 21 General Administration and Personnel Expenses (411) 22 Expenses from Depreciation, Amortization and Impairment from Current Operations (412) 8 Expenses from Depreciation of Property, Plant and Equipment from Long-Term Operations (413) Expenses from Commercialization of Voluntary Pension Savings Funds (5) Reserves for Uncollectibility of Accounts Receivable (4201010) OPERATING RESULTS Interest Income (5202) 23 Gains (Losses) Net on Financial Investments (5200+5201+5210+522)- [4200+(4201-4201010)+4202+4203+4220] 23 Gains (Losses) Net from Exchange Differences (5203 - 4204) Gains (Losses) Net from Physical and Intangible Assets (5240 - 4210) Expenses from Obligations with Financial Institutions (423) Expenses from Accounts Payable (424) Expenses from Financial Lease Assets (425) Other Financial Expenses (426+430) PROFIT (LOSS) BEFORE TAXES AND RESERVES Expense from Income Tax (440) Legal Reserve PROFIT (LOSS) AFTER TAXES AND RESERVES OTHER COMPREHENSIVE INCOME, NET OF INCOME TAX Adjustments of Financial Assets with Changes in Other Comprehensive Income (3501) Gains or Losses on Long-Term Assets Held for Sale (3524) Revaluations (3520) Adjustments from Changes in Fair Value of Financial Instruments Designated for Hedging (3522). Tax (3525) OTHER COMPREHENSIVE INCOME FOR THE PERIOD TOTAL COMPREHENSIVE INCOME FOR THE PERIOD US$ US$ Earnings per Share from continuing operations attributable to shareholders during the year (expressed in ___per share): 15 Basic Diluted The notes are an integral part of these Financial Statements.

Model 3
NAME OF THE INVESTMENT FUND MANAGER
Statement of Changes in Equity
For the years ending xx of xxxxx of (Current Semester) and of (Previous Semester) (Expressed in thousands of United States dollars) CONCEPTS Notes Social Capital Legal Reserve Other Reserves Results to Apply Undistributable Profits Donations Other Comprehensive Income Total Equity Balance at January 1, 20xx US$ US$ US$ US$ US$ US$ US$ Effect of error corrections Effect of changes in accounting policies Re-expressed balance Increase in Social Capital Reductions in Capital Dividends paid Profit for the Period Net adjustments in fair value of financial investments Net transfers of realized results Balance at December 31, 20xx 15 US$ US$ US$ US$ US$ US$ US$ Increase in social capital Reductions in capital Dividends paid Profit for the Period Net adjustments in fair value of financial investments Net transfers of realized results Effect of error corrections Effect of changes in accounting policies Balance at December 31, 20xx 15 US$ US$ US$ US$ US$ The notes are an integral part of these Financial Statements.

Model 4
NAME OF THE INVESTMENT FUND MANAGER
Statement of Cash Flows
Years ending xx of xxx of (Current Semester) and of (Previous Semester) (Expressed in thousands of United States dollars) Note (Current Semester) (Previous Semester) Cash flows from operating activities:
Collections for administration services US$ US$ Collections for commercialization of investment funds Collections for Commercialization of Voluntary Pension Savings Fund (5) Interest and dividends received Payments to personnel Payments to service providers Payment of Taxes Other payments related to the activity Other collections related to the activity Net cash provided (used) by operating activities Cash flows from investing activities Acquisition of Financial Investments Sale of Financial Investments Acquisition of Physical and Intangible Assets Sale of Physical and Intangible Assets Net cash provided (used) by investing activities Cash flows from financing activities Increase in social capital (new contributions, capitalization) Decrease in social capital Loans Received Loans Paid Payment of Dividends Other financing activities Net cash provided (used) in financing activities Net Increase (Decrease) in Cash and Cash Equivalents US$ US$ Cash and Cash Equivalents at January 1 Cash and Cash Equivalents at xx of xxxxx 5 US$ US$ The notes are an integral part of these Financial Statements.

CHAPTER VI
OTHER PROVISIONS AND VALIDITY

SANCTIONS
Non-compliance with the provisions contained in this Accounting Manual will be sanctioned in accordance with what is established in the Law of Supervision and Regulation of the Financial System.
UNFORESEEN ASPECTS
Aspects not foreseen in regulatory matters in this Accounting Manual will be resolved by the Standards Committee of the Central Bank.
VALIDITY
These Standards will enter into force as of September 1, 2015.

MODIFICATIONS:
(1) Modifications Approved by the Standards Committee of the Central Reserve Bank of El Salvador, in Session No. CN-18/2015 dated December 17, 2015, with validity as of December 28, 2015.
(2) Modifications Approved by the Standards Committee of the Central Reserve Bank of El Salvador, in Session No. CN-01/2016 dated February 24, 2016, with validity as of February 25, 2016.
(3) Modifications Approved by the Standards Committee of the Central Reserve Bank of El Salvador, in Session No. CN-10/2016 dated October 12, 2016, with validity as of October 17, 2016.
(4) Modification approved based on the generic procedure agreed by the Standards Committee of the Central Reserve Bank in Session CN-01/2016, of February 24, 2016. Validity of modification as of September 5, 2017. (5) Modifications to incorporate accounts and sub-accounts for the recording of operations of administration and commercialization of Voluntary Pension Savings Funds, approved by the Central Bank through its Standards Committee, in Session No. CN-14/2019, dated August 14, 2019, with validity as of September 2, 2019.

Accounting Manual for Investment Fund Managers

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