Accounting Manual for Investment Funds

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

CONSIDERING:
I. That Article 5 of the Investment Funds Law stipulates that the Superintendence 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 Reserve Bank of El Salvador the issuance of the necessary Technical Standards to allow the application of said Law.
III. That Articles 25, literal b) and 91 of the Investment Funds Law establish that the accounting of Investment Funds must be independent from the accounting of Investment Fund Managers.
IV. That Article 34 of the Investment Funds Law defines that for each Investment Fund administered by the Manager, monthly financial statements must be published on its website or another medium determined for such effect by the Technical Standards.
V. That Article 92 of the Investment Funds Law requires each Manager to publish in the newspaper of national circulation established in the Fund's internal regulations, the financial statements of each of the Funds it administers, on June 30 and December 31 of each year.
VI. That Article 99 literal c) of the Law on Supervision and Regulation of the Financial System establishes that it is the responsibility of the Standards Committee of the Central Reserve Bank to approve the Technical Standards for the elaboration, presentation, and dissemination of 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 creation 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 FUNDS

CONTENTS

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

CHAPTER II
ACCOUNTING FRAMEWORK
Comprises the accounting principles that Investment Funds will apply to their 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. Investment Properties.
SECTION 5. Specific Treatments Defined for the Presentation of Financial Statements.
SECTION 6. Elaboration, Presentation, Disclosure, and Publication of Financial Statements.

CHAPTER III
CHART OF ACCOUNTS
Comprises the list of accounts provided for the accounting of 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 Funds," hereinafter the Manual, aims to define the set of norms 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 the integration of the Financial Statements of Investment Funds, hereinafter Funds, which must faithfully reflect the financial situation, the results of operations, and management of the Funds, so as to constitute a useful instrument for the analysis of information and decision-making by administrators, participants, the Superintendence of the Financial System, hereinafter Superintendence; the Central Reserve Bank of El Salvador, hereinafter Central Bank, investors, users of financial services, and the general public. The Manual is based on basic concepts and principles whose purpose is to provide information that serves as a basis for decision-making by interested parties, and for which the following is required at a minimum:
a) Identify operations and events relevant to financial accounting; b) Formulate uniform measurement criteria that allow for 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, presentation, and accounting disclosure of economic events, based on accounting standards issued or accepted by the Standards Committee of the Central Bank.

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

SCOPE
The Manual consists of the General Provisions, Accounting Framework, Chart of Accounts, Accounting Applications Manual, and the Models of Financial Statements.
The application of the Manual is mandatory for Investment Funds authorized by the Superintendence, for the management of their own operations.
When this Manual refers to actions of the Fund, it shall be understood that the one performing them is the Investment Fund Manager in its capacity as administrator thereof.
PROCESS OF OPERATIONS AND ACCOUNTING SYSTEM
4.1. Processing of Accounting Operations
Funds 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 effect, they must present to the Superintendence, prior to entry in the Register, 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 the change to the Superintendence. The documentary or electronic source of each accounting entry must contain sufficient explanations regarding the operation being recorded.

4.2. Authorization and Modification of the Accounting System
The accounting system consists of the methods, computer systems, application manuals, formats, accounting policies, and records established to identify, analyze, classify, record, and report the transactions of the Funds. The system 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 Financial Statements, including important estimates and disclosures. Electronic accounting records may be kept, provided they comply with the provisions of Article 455 of the Code of Commerce. 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) Fund General Information: Name, Tax Identification Number (NIT), Taxpayer Registration Number (NRC), address, and other relevant information, etc.; b) Type of Investment Fund according to the defined investment policy; c) Registration data in the Public Stock Register; d) Registration data in a Stock Exchange when applicable; e) Name and registration number of the external auditor; f) Accounting policies and procedures adopted, which consist of presenting said policies and the procedures the Fund will employ, in accordance with the minimum disclosures required by this Manual and the applicable International Financial Reporting Standards; and g) Description of the notes to the Financial Statements to be prepared, in accordance with the minimum disclosures required by this Manual and the Chart of Accounts for Funds 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 means; b) Nature of the system to be used: description of the name and operation of the computer system in which the accounting will be kept; c) Method of recording operations: explain in what manner 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 literal 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, which will generally describe 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 version detail;
iv. Data capture method: 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 by the user;
v. Detailed description of fields including name, type, meaning, and use of the field; and
vi. Data dictionary; and
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 the description of measures to be taken internally regarding access to information in physical or magnetic files, as well as measures to minimize the inherent risk existing for the different assets.

4.2.5. Contingency Plan
It will consist of a description of measures to be taken to avoid loss of information or that in the event of disasters, the system can continue to operate.

4.2.6. 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 vouchers, journal vouchers, among others; b) Formats of main books, except those 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. When the Manager, on a sufficiently reasoned and founded basis, decides to hire an independent company to keep the accounting of each Fund it administers, the Manager will define the profile of the company that will keep the records, which must be available to the Superintendence for review; likewise, the Superintendence may carry out the respective inspection of the computer systems of the contracted company 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, because it is a contracting activity. Such company must ensure that it has the capacity to keep the accounting of each Fund separately. When the service contract to keep the accounting is carried out, the Fund must ensure it has unrestricted access to historical information.

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, secondary sub-accounts, and sub-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 any operation or transaction arises that is not provided for in this Manual, the Funds must communicate this to the Central Bank and the Superintendence, attaching the accounting criteria they intend to use as well as the accounts to be used, describing 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. Such communication will be sent physically or by duly signed email by the responsible persons. The Superintendence will analyze the proposal and if the operation refers to a matter of application of the Accounting Manual, it will give a diligent response, sending a copy to the Central Bank; and if it is a matter of modification of the Manual, the proposed accounting application, if appropriate, will be approved by the Standards Committee of the Central Bank. Prior to the agreement of the Standards Committee, the Fund must account for the operation or proposal to be modified, and when the Central Bank agrees to approve the change to the Manual, the Fund 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. Administration of the Funds
The administration of the Funds is a purpose of the Managers; consequently, all matters and operations related to the activity of the Funds are their responsibility.

6.2. Accounting Records
It is the responsibility of the Manager to record the operations of the Fund, from the preparation of vouchers, documents, records, and files of the transactions, to the formulation of the Financial Statements and other reports for their respective analysis and interpretation. The Manager must define the profile that the accountant hired to perform the accounting operations of the Fund must meet, in order that the activities and operations performed by it are carried out efficiently and effectively.

6.3. Timeliness of Accounting Recording
It is the responsibility of the Manager to account daily for the transactions performed by the Fund, which will be recorded in chronological order and in the accounts whose title corresponds to their nature.

In the case of the Open Investment Fund, the accounting closing will be daily, and for the Closed Investment Fund, the closing will be daily when applicable.

SUBMISSION OF INFORMATION

7.1. Timeliness
The Fund will remit the corresponding information within the deadlines defined in this Manual. Lack of timeliness in the submission will be sanctioned in accordance with what is established in the Law on Supervision and Regulation of the Financial System. The Fund must designate a responsible official as well as its respective substitute to give timely compliance with the information requirements established in this Manual to be submitted to the Superintendence.

7.2. Frequency

7.2.1. Monthly Financial Statements
The Manager will obligatorily present the monthly financial information of each Investment Fund, which must be delivered to the Superintendence within eight (8) business days following the month to which the information corresponds. When it concerns the Trial Balances and information related to the months of June and December of each year, the Fund will remit electronically within fifteen (15) calendar days following the month to which the definitive information corresponds. The foregoing does not mean that the provisional information of said months does not have to be presented within the deadline stipulated in the first paragraph. The Manager must present the monthly Financial Statements of each Fund it administers as mentioned in item 7.2.2. Semi-Annual and Annual Financial Statements.

7.2.2. Semi-Annual and Annual Financial Statements
The Fund must present its monthly, semi-annual, and annual Financial Statements to the Superintendence, in the formats, deadlines, periodicity, and under the grouping norms dictated in this Manual. These Financial Statements are the only valid for all effects, whether for their approval in the General Meeting of Participants, when applicable, 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 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 and 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 submitted to the Superintendence, must be presented obligatorily with the signatures of the general accountant, the general manager, and the legal representative. The Financial Statements referred to the month of June must be submitted with the interim report of the External Auditor. In the case of annual Financial Statements, the External Auditor's Opinion must be submitted.

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 above table, the Trial Balance will be the only one to be submitted to the Superintendence through electronic means according to the mechanisms it informs by circular. The Manager must communicate to the Superintendence the names, signatures, and positions of the persons authorized to sign the Financial Statements of each Fund, within the first fifteen (15) business days following the appointment.

7.3. Mechanisms
The Superintendence will send to the subjects of application of this Manual, with a copy to the Central Bank, the technical details related to the submission of the information requested in this Manual, which will be communicated within a maximum period of thirty days after the entry into force of this Manual. The information requirements will be limited to the collection of information as regulated in this Manual.

7.4. Procedures
The Financial Statements must be presented according to the provisions established in this Manual.
In order to guarantee that the submission of the Financial Statements is carried out free of arithmetic errors or in the structure of the file, the Fund must perform prior validations to the submission of information designed by the Superintendence for its submission. The technical characteristics of the files, as well as the means of transmission and report, will be mandatory for the Fund.

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

CLOSING 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 accounts shall be recorded in the main books and the subaccounts in auxiliary books as deemed necessary.

The main books that must be legalized are the following:
a) Journal; b) General Ledger; and c) Financial Statements Book.

In the event that the Fund considers it convenient and necessary, it may legalize the Journal and the General Ledger in a single Journal-Ledger.

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

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-05/2016
NDMC-08
ACCOUNTING MANUAL FOR INVESTMENT FUNDS
Approval: 22/06/2016
Validity: 25/07/2016 in absolute values including cents with two decimal places.
The Financial Statements entered in the respective Book must be presented in comparative form with the figures from the same period of the previous year.

9.2. Tax Books
The Fund that has the status of taxpayer for the Tax on the Transfer of Movable Goods and the Provision of Services must keep the books of legal requirement, in accordance with the respective Law of said Tax, which must comply with what is established in the Tax Code and in the respective application Regulation.

The Tax Books of legal requirement are:
a) Purchase Register Book; b) Sales to Taxpayer Register Book; and c) Sales to Consumer Register Book.

9.3. Administrative Books (3)
Closed Investment Funds must keep, legalize, and complete, in addition to the accounting books established above, the Minutes of the Participants' Assembly Book.

In the case of the Minutes of the Participants' Assembly, 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 records that may be required by regulations issued by the Standards Committee of the Central Bank or by another competent authority.

INTERNAL CONTROL APPLIED TO ACCOUNTING RECORDS
The Fund 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 appropriate, and with the accounting basis; b) Auxiliary detail of the composition of the balance of each of the accounting subaccounts, in order to have adequate integration of the records;

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-05/2016
NDMC-08
ACCOUNTING MANUAL FOR INVESTMENT FUNDS
Approval: 22/06/2016
Validity: 25/07/2016 c) Inventory or details of the different items, independent of the books of an obligatory nature required by Salvadoran legislation; and d) Details deemed necessary for the preparation of the rest of the complementary informative statements, 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 that are registered in the books listed in paragraph 9.1 of these Standards must be supported 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 to which the Manager may become liable for such delays in accordance with the applicable legal norms.

The Fund must archive the documentation that supports its operations, in chronological order, including the Financial Statements that are prepared monthly and the Trial Balances.

The Fund is obliged to conserve its records in general as well as its Financial Statements, according to the deadlines established in articles 451 and 455 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 Standards Committee of the Central Bank; and c) International Financial Reporting Standards, provided that they develop topics for which there is no Salvadoran regulation.

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

When International Financial Reporting Standards provide different treatments for the same economic event, the Fund will use the most prudent treatment among those established in said Standards.

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-05/2016
NDMC-08
ACCOUNTING MANUAL FOR INVESTMENT FUNDS
Approval: 22/06/2016
Validity: 25/07/2016
Accounting will be developed applying the accounting criteria and fundamental characteristics indicated below:

12.1. Fair Presentation
Financial Statements must be drafted clearly, such that the information provided is understandable and useful for users in making their economic decisions, and must represent the fair image of the equity, financial situation, and comprehensive results of the Fund, 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, financial situation, and results of the Fund. 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 show the aforementioned fair image, the precise complementary information will be provided in the notes to the Financial Statements to achieve this objective.

In those exceptional cases where such compliance would be incompatible with the fair image that the Financial Statements must provide, such application will be considered inappropriate. In such cases, in the notes to the Financial Statements, this circumstance will be sufficiently reasoned and its influence on the equity, financial situation, and results of the Fund will be explained.

12.2. Requirements of 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 Fund is exposed.

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

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-05/2016
NDMC-08
ACCOUNTING MANUAL FOR INVESTMENT FUNDS
Approval: 22/06/2016
Validity: 25/07/2016
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 meet 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, registration, and presentation that allow the possibility of comparing the financial situation, the results achieved, and the compliance with the legal provisions of the Fund in different periods or with other similar Funds, with the purpose of facilitating the analysis, evaluation, supervision, and audit of management and adequate accountability.

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

12.3. Accounting Principles
The accounting of the Fund and, in particular, the registration and valuation of the elements of the Financial Statements, will be developed by obligatorily applying the accounting principles and fundamental hypotheses indicated below.

12.3.1. Going Concern
The management of Open Investment Funds will be considered indefinite. Financial Statements must be prepared from the going concern hypothesis. Consequently, the application of accounting principles will not be aimed at determining the value of equity for the purposes 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, as is the case with Closed Investment Funds, such circumstance must be revealed along with the alternative criteria that have been used and the reasons why such Funds are not considered as a going concern. Such disclosure will also take into account what is provided in the Technical Standards that are issued on the merger and liquidation of Investment Funds.

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

In the case of Open Investment Funds, the effects of the aforementioned transactions must be recognized daily.

12.3.3. Uniformity
Once a criterion has been adopted in the application of Accounting Principles within the alternatives that, if applicable, 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. Prudence must be exercised in 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 period will be accounted for. On the contrary, all risks, originating in the period 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 period 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 may assets and liabilities of the General Balance Sheet be offset, nor expenses and income of the Statement of Comprehensive Income, unless specifically allowed or required by International Financial Reporting Standards, which must be reported to the Superintendence. When this happens, it must be revealed in a note to the Financial Statements.

12.3.6. Materiality
Each item that has 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 do not have 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 not very 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, financial situation, and comprehensive results of the Fund 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 Fund presents in its Balance Sheet as cash and cash equivalents.
DEFINITIONS

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

The criteria that define cash equivalents are the following:
a) The investments are short-term; b) They are investments of high liquidity; c) They are easily convertible into determined amounts of cash; d) They are subject to a not significant risk of changes in their 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 Fund
MEASUREMENT
Cash will be measured at the date of its initial recognition at its fair value, that is, its cash amount received and subsequently, at its amortized cost, understood as the initial amount plus returns minus amortizations, minus charges for services or others that apply and that affect the initially recognized amount either by increasing or decreasing it.

Cash equivalents will be measured initially at their fair value plus, in the case of those that are subsequently measured 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.

For its part, 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 Fund's business currency.

PRESENTATION
Cash and cash equivalents are presented by 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:
a) Financial derivative instruments; b) Rights and obligations arising from lease contracts; and c) Rights and obligations arising from an insurance contract.
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: The purchase or sale of a financial asset under a contract or agreement, the terms of which require

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-05/2016
NDMC-08
ACCOUNTING MANUAL FOR INVESTMENT FUNDS
Approval: 22/06/2016
Validity: 25/07/2016 its delivery within the time generally established by regulation or convention in the relevant market where the transaction has taken place. The settlements of these contracts or agreements will be carried out gross, not allowing nor requiring the net settlement of the change in value in the contract; c) Amortized Cost of a Financial Asset or a Financial Liability: Is the initial measure of said asset or liability minus principal repayments, plus or minus the accumulated amortization -calculated with the effective interest rate method- of any difference between the initial amount and the repayment value at maturity, minus any decrease for impairment of value or uncollectability 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: Is a method that consists of recognizing or derecognizing a financial asset on the date that the Fund agrees to buy or sell it; f) Effective Interest Rate Method: Is a method of calculating the amortized cost of a financial asset or a financial liability or a group of financial assets or financial liabilities and of attributing 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 Fund does not transfer or retain substantially all the risks and rewards inherent to 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 equalizes the book value of a financial instrument with the sum of the estimated cash flows over the expected life of the instrument discounted at this rate, based on its contractual conditions and without considering future credit risk losses; 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

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-05/2016
NDMC-08
ACCOUNTING MANUAL FOR INVESTMENT FUNDS
Approval: 22/06/2016
Validity: 25/07/2016 k) Fair Value: Is the price that would be received to sell an asset or paid to transfer a liability in an ordered transaction between market participants, well-informed individuals who participate freely and independently, on the date of measurement.

INITIAL RECOGNITION
The Fund will recognize a financial asset or a financial liability in its Balance Sheet only when it becomes part of the contractual conditions of the instrument.

Conventional purchases or sales of financial assets will be recognized applying the trade date method.

RECOGNITION OF THE FINANCIAL INSTRUMENT APPLYING THE TRADE DATE METHOD
The trade date method requires that the Fund 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 that is sold conventionally are not recorded in the Financial Statements between the trade date and the settlement date because the seller's right regarding changes in fair value ceases on the trade date. In the case of a purchase, 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, and in the case of a sale, interest ceases to accrue until the settlement date. For the case of investments in Repos, the Fund will begin to accrue interest on them from the date of their settlement, that is, from the day the Fund makes the payment for the investment.
CLASSIFICATION OF FINANCIAL INSTRUMENTS

6.1. Financial Assets
Funds must classify their financial assets on the date they first recognize 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 Fund will classify financial assets, according to their subsequent measurement at fair value, the latter taken from any of the sources established in paragraph 10 of this Section.

6.2. Classification of Financial Liabilities
The Fund 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, which after initial measurement will be measured at their fair value; b) Financial liabilities that originate when the transfer of a financial asset does not qualify for derecognition, which will be recognized at an amount equal to the consideration received; and c) Financial liabilities that originate from the continuing involvement in assets, which will be measured on the basis that reflects the obligations that the Fund has retained or assumed. The associated liability is measured in such a way that the net amount of the transferred asset and the net amount of the associated liability are equal to the fair value of the rights and obligations retained by the Fund, when measured independently, if the transferred asset is measured at fair value.

INITIAL MEASUREMENT
When a financial asset or a financial liability is initially recognized, they will be measured at their fair value. In the case that in the subsequent recognition of such financial liabilities they are not measured at fair value with changes in profit or loss, the following will apply:
When the subsequent measurement of the financial liability is at amortized cost, transaction costs directly related to the issuance or assumption of the financial liability will be deducted.

If it turns out that the fair value of the acquired financial asset or financial liability differs from the transaction price, then the Fund will proceed to recognize the difference between the fair value on the date of its initial recognition and the transaction price in the following manner:
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 observable market data, the Fund will recognize the difference as a gain or loss; and b) In other cases, to defer the difference between the fair value at the moment of initial recognition and the transaction price. After initial recognition, the Fund will 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.

SUBSEQUENT MEASUREMENT OF FINANCIAL ASSETS
Financial assets that are subsequently measured at fair value after recognition must be classified as financial assets held for trading, which comprises values acquired and managed within a business model that reflects active and frequent purchases and sales, whose purpose is to generate gains in the short term from price fluctuations or from trading margins. The effects of the change in fair value are taken directly to profit or loss.
SUBSEQUENT MEASUREMENT OF FINANCIAL LIABILITIES

The subsequent measurement of financial liabilities will be carried out as defined in paragraph 7 of this Section.

OBTAINING FAIR VALUE
For the purposes of establishing the measurement of financial instruments, the Fund 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 Fund may define its own methodology for the valuation of said instruments, which must be available at any time for the Superintendency. For the purposes of recognition of international stock or financial information systems, this will be carried out in accordance with the Technical Standards that the Standards Committee of the Central Bank issues for such effect.

DERECOGNITION OF FINANCIAL ASSETS
The Fund must derecognize a financial asset or a portion of it when the contractual rights to cash flow expire or the financial asset is transferred and the transfer meets the requirements for derecognition. It will be considered that the Fund has transferred a financial asset if it has transferred the contractual rights to receive the cash flows of 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 will be assumed that the Fund has transferred the asset if the following three conditions are met:
a) The Fund 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 Fund, with the right to full recovery of the amount plus accumulated interest at market rates, do not violate this condition; b) The Fund is prohibited, according to the conditions of the transfer contract, from selling or pledging the original asset, except as security for payment of the cash flows committed to the eventual buyers; and c) The Fund is obligated to remit without significant delay any cash flow that it collects on behalf of the eventual buyers. Furthermore, the Fund is not authorized to reinvest the cash flows. Upon derecognizing a financial asset in its entirety, the difference between the book amount determined on the date the financial asset is derecognized and the sum of the benefits received including any new financial asset obtained minus any new liability assumed will be recognized in the results. 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 amount of the larger financial asset will 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 amount 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 minus new liabilities assumed, will be recognized in the period's profit or loss.

FINANCIAL ASSETS MANAGED UNDER A BUSINESS MODEL OF FREQUENT PURCHASES AND SALES

12.1. Special Conditions
Financial assets under a business model that reflects frequent purchases and sales and whose purpose is to generate gains 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 the securities, approved by the competent authority, in accordance with the Fund's policies; b) There must be clearly defined policies and procedures for the active management of the position, to ensure that:
i. Positions are managed by a trading team;
ii. Limits are set on positions and monitored to check 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 classifications of financial assets in this model require that they have price quotes in an active market; d) The Fund must indicate which of the sources provided in paragraph 10 is the provider of the market price and in case that the same source provides a diversity of prices on the same instrument, the Fund must indicate which of the available prices it has taken; e) The Fund must include in its risk management policy the sources provided in paragraph 10, the one that applies, 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 Fund must define, within the indicated policies, the prices that

it will use to establish the value of the portfolio and the reasons that have defined such selection; f) The Fund will incorporate into its financial or risk management policies the criteria that will define if a price fluctuation in the market is normal or not; g) The Surveillance Committee will be informed of the positions held as an integral part of the Fund's risk management process, as well as the risk to which the Fund is exposed equally by the positions taken; h) Active monitoring of positions with reference to market information sources will be carried out; and i) Monitoring of the volume of operations and of the expired positions in the Fund's trading portfolio will be carried out.

12.2. Recording of Changes in Fair Value
Any gain or loss originating from a change in fair value must be included in the net gain or loss of the period. Book applications must be made daily for the case of Open Investment Funds; said recording for the Closed Investment Fund will be carried out on each Balance Sheet date or monthly, whichever occurs first. When the aforementioned changes occur, the Fund must separate said changes from those corresponding to credit risk and from those corresponding to other risks.

12.3. Exchange Differences
Gains or losses from exchange rate differences arising in monetary or non-monetary financial assets and that are denominated in foreign currency and that have not been designated as risk management instruments in a cash flow hedge or in a net investment hedge, will be recognized in the period's results.

PRESENTATION
Items will be presented according to their economic form rather than their legal form and for their identification they are grouped into the concepts enabled for their registration within the chart of accounts developed for such purpose. An asset and a financial liability must be subject to offsetting, so that their net amount is presented in the Balance Sheet, only when the Fund:
a) Has, at the present moment, the right, legally enforceable, to offset the recognized amounts; and b) Has the intention to settle by 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 its derecognition, the Fund will not offset the transferred asset with the associated liability.

SECTION 3
FINANCIAL DERIVATIVE INSTRUMENTS

OBJECTIVE
This Section aims to establish the accounting criteria to be applied for the recognition, measurement, presentation, and disclosure of financial derivative instrument contracts that the Fund acquires, which have the exclusive object of covering their risks through accounting hedge.
SCOPE
Applies to financial derivative instrument contracts that are acquired whose underlying assets are interest rate, exchange rate, debt financial instruments, equity instrument, among others. The basic financial derivative instruments mentioned are not a complete list of the many instruments that exist in the market, and that could be used to comply with what is stipulated in this Section are, for example:
a) Forward contracts; b) Futures contracts; c) Basic options contracts; and d) Financial swap contracts or interest rate or currency swaps.
In addition, these instruments are acquired for the purpose of covering financial risks; it is foreseen that they on the retrospective evaluation dates applied to them, have the probability of ceasing to meet the essential requirements for designation as a financial risk hedge item, the foregoing does not mean that such items 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 the interest rate, the exchange rate, the price of a financial instrument or a market index, including credit ratings; b) Its net initial investment is null or very small in relation to other contracts with similar response to changes in market conditions; and c) It is settled on a future date.

BASIC CRITERIA TO BE OBSERVED FOR ACQUIRING FINANCIAL DERIVATIVE INSTRUMENTS

The Fund must enter into a negotiation of financial derivative instruments only if it has expertise on the functioning of the instruments and has trained personnel and adequate systems for their recognition, valuation, measurement, and capacity to ensure compliance with the criterion taken to value the instrument to be acquired. The verification of the valuations of the instruments must be performed by the acquiring Fund. To ensure compliance with this criterion, it must comply with what is established in the previous clause, in such a way that the price provided by the issuer entity of the instrument can be verified internally through the application of independent financial tools. Financial derivative instruments must be acquired exclusively for the coverage of financial risks and Funds must implement strict risk management policies that expressly indicate the types of instruments that will be contracted in accordance with what is provided in this Section and for what purposes the same will be acquired, which cannot be for purposes other than the mitigation of their assumed risks. Financial derivative instruments must be acquired only if the Fund proves that the risk exposure intended to be covered is appropriately compensated by the value changes of the intended hedge item for the purposes of its risk management. The Fund 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 the hedge objectives. Such methodology will be available to the Superintendency for verification of its compliance.

RECOGNITION

The Fund must recognize the contract of a financial derivative instrument on the date that it becomes part of the contractual agreements of the acquired instrument. On the contract date, the Fund will recognize either a financial asset or a financial liability, the amount of which will be subject to the conditions under which the transaction was contracted. Generally, on the recognition date, the value of these contracts will be null unless the transaction corresponds to a derivative that gives rise to an option or that the originated contract has been acquired under conditions within the stock market or an over-the-counter (OTC) market according to the underlying fixed to establish the value of the instrument.

INITIAL MEASUREMENT
Financial derivative instrument contracts will be initially measured at their fair value, which unless evidence to the contrary, will be the transaction price. Transaction costs attributable to the acquisition of these instruments will be applied to the The nominal amount of these contracts, when it exists, or the amount established to measure the costs or benefits to be paid or received by the transaction, must be incorporated from the contract date into off-balance sheet accounts known as order accounts, established for such purposes.
SUBSEQUENT MEASUREMENT
The contract will be subsequently measured by its fair value, which will be established by the acquiring Fund of the instrument, considering for this:
a) The use of valuation models that use as a source the basic inputs that for the type of instrument being valued are appropriate; or b) According to the market practice where they are issued or according to the practice developed by the Fund, which must demonstrate that it is at least equal or more conservative than that originated by the issuer of the contract. In the case that the derivative instrument has been acquired in an over-the-counter market, the Fund must remit to the Superintendency the methodology applied to establish the fair value for its verification and inform whenever it is modified. Such methodology must contain the pertinent detail that allows the understanding of how the values affecting the Fund's Balance Sheet and results have been obtained and must be incorporated into its risk management policies. It

will consider the lower price established between the issuer's price and the price determined by the Fund.
The prices of acquired products that are available in some of the sources cited in paragraph 10 of Section 2 of this Manual will be taken into consideration and the source of the information used to determine the fair value on the date of measurement will be documented.

For these contracts, the measurement frequency will be daily.

RECOGNITION OF INCOME AND/OR EXPENSES

Changes in value occurring between the previous measurement date and the current one, in financial derivative instruments, will affect the results of the period, either as an expense or as income, depending on the price position of the instrument and the Fund's position within the contract, which could leave the Fund in a position of realized or unrealized losses or gains.

What is established in the first paragraph of this section will always be the case as long as the gains or losses are computed on financial derivative instruments measured at fair value with changes in results.

DE-RECOGNITION IN ACCOUNTS

The Fund will de-recognize in accounts the fair values of financial derivative instruments on the date of termination of the contracts or on the date of exercise of the instrument, whichever occurs first. On the indicated dates, the Fund will pay or collect the amounts pending to its charge or in its favor or exercise the closed positions on that date, in the case where the transaction corresponds to a purchased option and it ends with intrinsic value.

When the Fund enters into a derivative for hedging its investments, it must ensure that when selling the underlying asset for which it contracts the hedge, it can realize or settle said derivative, in accordance with what is established in this Manual.

PRESENTATION

Financial derivative instruments will 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 that have originated based on the behavior that the underlying assets used to establish the cost or benefit of such contracts have had, will not be offset against each other.

SECTION 4
REAL ESTATE INVESTMENTS

OBJECTIVE

This Section aims to regulate the recognition, measurement, and presentation of real estate investments in the Fund's Financial Statements.

SCOPE

It applies to all transactions related to real estate investments, which include investment properties, assets held for sale, and assets under operating leases.

CRITERIA FOR ACCOUNTING OF INVESTMENT PROPERTIES

3.1. Recognition

Investment Properties will be recognized as assets when and only when:
a) It is probable that the future economic benefits associated with such investment properties will flow to the Fund; and b) The cost of the asset can be measured reliably.

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 will be land and buildings considered in their entirety or in part. The location of these investments will be within the national territory in accordance with what is established in the Investment Funds Law.

3.2. Initial Measurement

Investment Properties will be initially measured at acquisition cost plus direct transactional costs associated.

The acquisition cost will be established based on the appraisal of an expert registered with the Superintendency or other entities whose registration is recognized by it, plus or minus a prudential variation of 5% to 10%, a percentage that will be established in the Fund's Regulations, which will be validated by the external auditor.

The transaction costs of an Investment Property will include disbursements directly attributable to the Property and include, for example: professional fees for legal services, taxes for property transfer if applicable, and other costs associated with the transaction.

When expenditures are made to replace one or more components of the Investment Properties, these amounts will be included as part of the cost of the Investment Properties to be replaced, at the same time the component being replaced must be removed.

In the case of constructions and remodelings, if the Fund concludes that the fair value of these cannot be measured reliably, it will measure them by their cost temporarily until it can determine the fair value upon completing the constructions and remodelings.

3.3. Subsequent Measurement

Subsequent to initial recognition, all real estate investments that the Closed Fund has available for sale will be measured applying the fair value model, until it has the same or until the transformation to sell it in the ordinary course of its activity begins.

For the determination of the fair value of Investment Properties, these must be valued by experts registered with the Superintendency, and these valuations must be carried out every thirty-six (36) months obligatorily. In case there are indications of impairment or changes in the market value of the asset, the aforementioned valuation may be carried out by the Fund every year.

Losses or gains derived from a change in the fair value of Investment Properties will be recorded in the results in the period in which they occur.

Compensations from third parties for cause of Investment Properties that have been lost or abandoned will be recognized in the period's results when such compensations are due.

3.4. Transfers and De-recognition in Accounts

Transfers to, or from, Investment Properties will be made when and only when, there is a change in their use, which has been evidenced by the start of a development with the intention of sale or in the case of a transfer of an Investment Property to properties held for sale.

The loss or gain resulting from the withdrawal or sale of an Investment Property will be determined as the difference between the net income of the transaction and the book amount of the asset and will be recognized in the period's results in which such event, occurrence, activity, etc., takes place.

3.5. Presentation

Investment Properties will be presented in the Balance Sheet, according to the rights they represent on the date of the Financial Statements under the item Non-Current Assets. Active and passive balances, income and costs will not be offset against each other.

CRITERIA FOR ACCOUNTING OF PROPERTIES HELD FOR SALE

4.1. Recognition

A property held for sale is an asset or group of assets over which the Fund has established a plan for its disposal or an asset that has been reclassified to this category.

For an Investment Property to be classified as held for sale, it must follow the following criteria:
a) Its book value will be recovered mainly through a sale transaction; b) It must be available for immediate sale in its current condition, subject only to the usual terms for the sale of such assets; c) Its sale must be highly probable; and d) It must be actually sold according to the commitment acquired by the Fund in the sales plan developed.

4.2. Initial Measurement

Before the reclassification of a property as held for sale, the book value of the asset must be valued according to the criteria applicable to said asset before the reclassification.

A Fund will apply its usual accounting policies until the criteria for classification as held for sale are met.

A Fund will measure properties held for sale at the lower of their book value or their fair value less costs to sell.

Long-term assets that the Fund acquires with the intention of selling them will be measured from their inception at fair value less their costs to sell.

When the asset is acquired with the purpose of its subsequent alienation, the following criteria are applied to recognize it as a property held for sale on the date of acquisition if:
a) The sale of the good takes place within a period of one year to be considered as subject to a single exception that the delay is due to facts or circumstances beyond the Fund's control; and b) Its alienation or disposal is highly probable and any other requirement contemplated to be available for its immediate sale in the current conditions in which it is found and such alienation is subject only to the usual terms for the sale of such assets. If the sale is not carried out within the stipulated period, it must be alienated within the following three months and said asset cannot be abandoned.

An extension of the period required to complete the sale in a period greater than one year does not prevent the asset from being classified as held for sale, if the delay is caused by facts or circumstances beyond the Fund's control and there is sufficient evidence that the Fund remains committed to its plan to sell the asset.

Consequently, the Fund will be exempted from applying the one-year requirement in the following situations:
a) On the date the Fund commits to a plan to sell a long-term asset, there is a reasonable expectation that third parties other than the buyer will impose conditions on the transfer of the asset that will extend the period necessary to complete the sale; and additionally:
i. The actions necessary to respond to those conditions cannot be initiated until after the firm purchase commitment has been obtained; and
ii. A firm purchase commitment is highly probable within one year.
b) The Fund obtains a firm purchase commitment and as a result, the buyer or other third parties have unexpectedly imposed conditions on the transfer of the long-term asset previously classified as held for sale, which will extend the period required to complete the sale and additionally:
i. The necessary actions to respond to the imposed conditions have been taken in time; and
ii. A favorable resolution of the factors causing the delay is expected.
c) During the initial one-year period, circumstances arise that were previously considered improbable and as a result, the long-term asset previously classified as held for sale has not been sold at the end of that period and additionally:
i. During the initial one-year period, the Fund undertook the necessary actions to respond to the change in circumstances;
ii. The long-term assets are being actively marketed at a reasonable price, given the change in circumstances; and
iii. The criteria established in the first and second paragraphs of letter a) are met.

4.3. Subsequent Measurement

The measurement of the assets that are integrated into this account will be as follows:
a) Assets reclassified from a previous classification to this one: once the assets are reclassified, the Fund will measure them by the lower value established between the sum registered of the asset or fair value less costs to sell, which may give rise to the recognition of impairment loss; b) Assets acquired with the intention of selling them: they will be measured at the lower value between the net fair value of costs of expropriation and the book value; and c) Non-current asset that ceases to be classified as held for sale: the Fund will measure the asset that ceases to be classified as held for sale or that ceases to be part of a group of assets in expropriation classified as held for sale, at the lower of:
i. Its book amount before the asset or group of assets in expropriation was classified as held for sale, adjusted for any depreciation, amortization, or revaluation that would have been recognized if the asset or group of assets in expropriation had not been classified as held for sale; and
ii. Its recoverable amount on the date of the subsequent decision not to sell it.

If the asset is part of the cash-generating unit, its recoverable amount is the book amount that would have been recognized after the attribution of any impairment loss arising in said cash-generating unit, according to the impairment evaluation policy that the Fund applies internally or, in its absence, the applied international regulation.

Any gain or loss from the sale of an element of the properties held for sale, calculated as the difference between the profit obtained from the disposal and the book value of the element, is recognized in results.

Assets that are part of the properties held for sale are not depreciated.

4.4. Impairment and Reversal of Impairment Losses

The subsequent measurement of properties held for sale may give rise to an impairment loss and presumably to its subsequent reversal. Impairment losses are recognized as expenses in the period in which they occur.

Any subsequent increase in the fair value less costs to sell of an asset is recognized as a gain, with the limit of the amount of the previously recognized accumulated impairment loss.

4.5. Presentation

The Fund will present the properties held for sale under the group of Real Estate Investments and will reveal information that allows users of the Financial Statements to evaluate the financial effects of the disposals of the properties held for sale.

CRITERIA FOR ACCOUNTING OF ASSETS UNDER OPERATING LEASE

5.1. Recognition

An operating lease is one that does not transfer substantially all the risks and benefits associated with the ownership of an asset.

5.2. Initial Measurement

Income derived from operating leases will be recognized, excluding what is received for services such as insurance and maintenance, on a straight-line basis over the lease term, even if the charges are not perceived according to such basis.

The costs incurred in obtaining income from operating leases will be recognized as expenses.

The initial direct costs, incurred by the Closed Investment Fund in the negotiation and contracting of an operating lease, will be added to the book amount of the leased asset and will be recognized as an expense over the lease term, on the same basis as the lease income.

5.3. Subsequent Measurement

The initial direct costs, incurred in the negotiation and contracting of an operating lease, will be added to the book amount of the leased asset and will be recognized as an expense over the lease term, on the same basis as the lease income.

5.4. Presentation

Properties under operating lease will be presented in the asset in the aforementioned account because one of the purposes of the Closed Fund with its assets is to generate income from their lease.

CRITERIA FOR ACCOUNTING OF CONSTRUCTION AND REMODELING

When real estate is acquired on which the Fund carries out constructions or remodelings for subsequent disposal or obtaining of rents or capital gains, these will be initially recognized at the cost of construction or remodeling.

The cost of constructions and remodelings includes the following:
a) The cost of materials and direct labor; b) Any other cost directly attributable to the process of making the asset ready for work for its intended use; and c) Costs for capitalized loans.

When parts of a batch of a real estate property have different useful lives, they will be registered as separate items of important components of investment properties.

IMPROVEMENTS AND/OR REPAIRS TO REAL ESTATE INVESTMENTS

Disbursements subsequent to the initial recognition of investment properties and properties held for sale are capitalized only when it is probable that the future economic benefits related to the disbursement will flow to the Fund.

Repairs and continuous maintenance are recorded as expenses and will be recognized in the Comprehensive Income Statement when incurred.

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.

SCOPE

It establishes the methods that must be applied by the Fund 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 OF THE ACTIVITIES THAT INTEGRATE THE STATEMENT OF CASH FLOWS

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

Financial Statement	Presentation Method	Reasoning
Balance Sheet	Assets and liabilities will be presented according to their term type and separating them into current or non-current.	This presentation method takes into consideration the ease of conversion into cash of the assets and the exigibility of the payment of the liabilities, ignoring whether, both of them, are current or not. The use of this method is considered appropriate for Funds, because information on expected dates of realization of assets and exigibility of liabilities is useful to evaluate the liquidity and solvency of Funds and is considered to provide more relevant reliable information. Adopting this method does not exempt Funds from revealing the amounts that are expected to be recovered or settled in a period less than or equal to one year after the date of the reported period and those that will be recovered in a period greater than one year after the date of the reported period.
Statement of Comprehensive Income	Expenses will be accounted for applying the Method of the Nature of Expenses and revealing additional items that are considered necessary for the adequate understanding of the Fund's financial performance.	Taking into consideration the nature of Funds, the presentation method of expenses by nature is considered to provide a more reliable and relevant presentation, as it provides useful information on expenses that are materially representative of Funds, while it can be easier to apply; the same is complemented with a detail of expenses that contribute to a better understanding of the Fund'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
ELABORATION, PRESENTATION, REVELATION AND PUBLICATION OF FINANCIAL STATEMENTS

OBJECTIVE

This Section aims to establish procedures that allow the elaboration, presentation, revelation and publication of the Financial Statements, in accordance with prudential requirements of the Committee of Standards of the Central Bank and, where applicable,

the IFRS, in order to provide the public with sufficient and timely financial information regarding the financial, economic, and legal situation of the Funds.

SCOPE
Indicates the Financial Statements that Funds must publish to present their 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, Statement of Changes in Equity, and Statement of Cash Flows, which must be prepared according to models established in Chapter V of this Manual.
REQUIREMENT AND CONTENT OF FINANCIAL STATEMENTS
The most relevant aspects that must be considered in the presentation and disclosure of the Financial Statements are:
a) Technical Standards, Fundamental Hypotheses, and Qualitative Characteristics: Financial Statements must be prepared based on the standards issued by the Standards Committee of the Central Bank that are applicable to them and the International Financial Reporting Standards. When International Financial Reporting Standards present different ways to measure the same element of the Financial Statements, the Fund must adopt the most prudent criterion among them; b) Expression of Figures: The figures in the Financial Statements and in their notes must be expressed in thousands of United States dollars with two decimal places; c) Accounting Origin of Balances: The figures in the Financial Statements and in their notes must originate from the balances of the general ledger and management information systems 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 being an asset, liability, equity, income, or expense; and e) Accounts with Nature Contrary to the Main Account Where They Underlie: When it is necessary to disclose valuation and adjustment accounts that have a nature different from the accounts where they underlie, for example: impairment estimates, which net against the accounts that originate them within equity, among others. In these cases, such accounts must be presented in parentheses.
FINANCIAL STATEMENTS

The complete set of Financial Statements that must be prepared with reference to December 31 comprises: 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, which must include a summary of the most significant accounting policies and other explanatory information. Likewise, the Fund must prepare a complete set of Financial Statements with reference to June 30 of each year. The notes present information regarding the bases for the preparation of the Financial Statements and about accounting policies, supply narrative descriptions, and are an integral part of them; they contain additional information, in detail, that complements the balances reflected in the Financial Statements. Furthermore, a Balance Sheet must be prepared at the beginning of the first comparative period, when a Fund applies an accounting policy retrospectively or performs a retrospective restatement of items in its Financial Statements, or when it reclassifies items in its Financial Statements. The Financial Statements must be presented in comparative form for the same previous period.

ADDITIONAL NOTES
The Fund may incorporate additional notes that it deems convenient for greater clarification of its figures and operations, without altering the consecutive number designated to the notes established in this Manual.
RESPONSIBLE PARTIES FOR PREPARING FINANCIAL STATEMENTS
The preparation of the Financial Statements is the responsibility of the Fund Manager. The Financial Statements that are published must be signed by the General Accountant, the General Manager, and the Legal Representative, and accompanied by the External Auditor's Report, the latter when applicable.
SUBMISSION OF FINANCIAL STATEMENTS

7.1. Semi-Annual Financial Statements
Semi-annual 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.

In the case of Closed Investment Funds, the semi-annual Financial Statements will be approved by the Board of Directors of the Manager.

The Financial Statements to be published, their notes, and the corresponding interim report of the External Auditor as of June 30, must be sent to the Superintendency by the Management of the Manager, no later than five (5) business days before their publication. Along with what is required in the previous paragraph, the certification of the minute point of the session of the Board of Directors of the Manager where the content of the Financial Statements were presented and authorized and the publication of the same was agreed upon, must also be sent.

7.2. Annual Financial Statements
The annual Financial Statements and the certification of the minute point of the Board of Directors in which they were presented and authorized, plus the corresponding report of the external auditor, must be sent by the Manager to the Superintendency, no later than five (5) business days before the General Assembly of Fund Participants is held, at which they will be known. The annual Financial Statements must be considered and approved by the General Assembly of Fund Participants, 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 Superintendency no later than the last day of the publication deadline for the Financial Statements. In the event of observations or objections by the General Assembly of Fund Participants, these must be reported immediately to the Superintendency. The Open Investment Fund must send to the Superintendency, no later than five (5) days before its publication, the Financial Statements, accompanied by the certification of the minute point of the Board of Directors in which they were presented and authorized and the corresponding Report of the External Auditor. In the event of observations or objections by any member of the Board of Directors in the approval of the Financial Statements, these must be reported immediately to the Superintendency. What is stipulated in the second paragraph of this section applies to Open Investment Funds when they are approved by the Board of Directors of the Manager. In the case of Open Investment Funds, the Board of Directors of the Manager will have the same responsibilities established for the General Assembly of Participants in the previous clause.

DISCLOSURE OF FINANCIAL STATEMENTS
The set of Financial Statements delivered to participants and to anyone who requests them, those published in the annual report, and in general any disclosure of the same, must include all Financial Statements, their notes in full, and the external auditor's report. The Fund, in accordance with current legal standards, must publish the Financial Statements as of June 30 and December 31 of each year, the latter together with the external auditor's report, within a maximum period of sixty (60) calendar days after the end of the accounting year, in a newspaper of national circulation established in the internal regulations. 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 Fund must publish. In addition, said Financial Statements must be published on the Manager's website, within the previously established deadlines. 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, it must publish on the website the Financial Statements referred to the periods ended on March 31 and September 30 respectively. It must also publish on this medium the monthly Financial Statements. If the Superintendency 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 Fund to republish, in the same newspaper of national circulation in which it was originally published, accompanied by its explanatory note proposed by the Fund and approved by the Superintendency. In the event that the Fund refuses to publish the new Financial Statements proposed by the Superintendency and the notes required in this Manual, the Superintendency will instruct a deadline for the Manager to correct, and if it does not do so, the Superintendency will sanction the Manager in accordance with what is established in the Law on Supervision and Regulation of the Financial System. 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 year and management must be included in the Annual Work Report of Open Investment Funds and Closed Investment Funds for their approval, taking into account the following aspects:
a) The Board of Directors of the Manager must annually prepare the Work Report of the Investment Fund; and b) The Work Report must contain as a minimum:
i. Identification of the Fund;
ii. Registration number in the Public Stock Register (RPB);
iii. Letter from the President of the Manager that administers the Investment Fund (FI);
iv. Main achievements;
v. Description and characteristics of the Fund;
vi. Activities and Business of the Fund;
vii. Risk Factors;
viii. Financial, Administrative Reports, and External Auditor's Reports;
ix. Report of the Surveillance Committee, when applicable; and
x. Responsibility Declaration that will include the name, position, and signature of the Board of Directors and General Manager of the Manager.
This Annual Work Report will be sent to the Superintendency within a period of ten (10) business days after being approved by the General Assembly of Participants, when applicable.

NOTES TO FINANCIAL STATEMENTS
Note 1. Fund Identification
The Fund will describe as part of its identification the information that corresponds according to the following requirements:
a) Name of the reporting Fund, as well as changes relative to said information since the end of the previous period being reported; b) Description of the nature of the Financial Statements; c) Closing date of the period on which it reports or the period covered by the Financial Statements; d) Classification of the Fund, country of incorporation, address of its registered office or main domicile where it develops its activities, if this is different from the registered one; e) Description of the nature of the Fund's operations and main activities; f) Duration of the Fund if it is of limited life;

g) Date of authorization by the Assembly of Participants or its equivalent for the disclosure of the Financial Statements; h) Explanation of the fact that the Fund's participants or others have the power to modify the Financial Statements after disclosure; and i) Name of the Fund Manager, address of domicile, date and country of incorporation, and description of its main activity.

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 Standards Committee of the Central Bank. The Financial Statements have been prepared by the Manager based on the standards issued by the Standards Committee of the Central Bank that are applicable to them and the International Financial Reporting Standards, prevailing the regulations issued by the Standards Committee of the Central Bank when there is a conflict with the International Financial Reporting Standards. Furthermore, when these present different ways and options to measure and account for the same element or event, the most conservative criterion of the International Financial Reporting Standards must be adopted. The main divergences between the standards used and the International Financial Reporting Standards must be presented in a note; b) Measurement Bases: The Fund will declare the measurement bases it has used to prepare its Financial Statements; c) Functional and Presentation Currency: The Fund 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 Fund 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 criterion applied consists of; and e) Changes in Accounting Policies:
i. The Fund will describe and identify the areas in which accounting policies have been changed; and
ii. It 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 Fund 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 elaboration and presentation of its Financial Statements.

Note 4. Investment Policy
The Fund will reveal a summary of the current and authorized investment policy, the date of authorization by the competent body, the established limits and by types of financial instruments, the restrictions to which the Fund is subject, among other aspects. It will also include other information that is relevant to users of the Financial Statements regarding investment policies.

Note 5. Management of Financial and Operational Risks The publication of policies, methodologies, and other relevant measures must be included, as established in the standards issued by the Standards Committee of the Central Bank.

Managers must disclose in a summarized manner in the notes to the semi-annual Financial Statements of each Fund they manage, the way in which they manage risks and compliance with their policies. Additionally, the following will be revealed regarding each risk:

5.1. Market Risk
The Fund will describe in tabular form for the investment portfolio, what the risk position has been, by type of exchange rate risk, interest rate risk, or other, assumed according to the indicators that reflect its methodology or technique applied to manage the 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.

5.1.1. Exchange Rate Risk
The Fund will describe in tabular form and classified by currency the assets and liabilities in foreign currency, establishing the net position of assets and liabilities on and off the balance sheet.

5.1.2. Interest Rate Risk

The Fund will describe in tabular form a summary of the financial assets and liabilities that are not held for trading 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 Fund regarding the financial derivative instruments that are held for risk hedging purposes and whose fair value is exposed to interest rate risk.

5.2. Liquidity Risk
Likewise, the Fund will describe in tabular form the financial liabilities to be paid and the 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 it is 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, deposit certificates, sovereign bonds, and other securities that are used in repo operations with the Central Bank, very liquid assets that are maintained in the portfolio for trading, among others. This section may be omitted if in the previous clause, the class and quality of assets that are used in risk management are evident.

5.2.1. Net Settled Financial Derivative Liabilities
The Fund will describe the types of financial derivative instruments that are settled on a net basis, adding all the details it considers pertinent, for example: interest rate derivatives, exchange rate derivatives. Additionally, it will present a tabular description of such derivatives, name, and classified by remaining maturity terms 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.

5.2.2. Gross Settled Financial Derivative Liabilities

The Fund will describe the types of financial derivative instruments held on the date of the Financial Statements and that will be settled on a gross basis, adding all the details it considers pertinent, for example: interest rate derivatives, exchange rate derivatives, credit risk derivatives, among others. Additionally, it will present a tabular description of such derivatives, including the name, identifying the flows to be paid and the flows to be received, classifying them by remaining maturity terms 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.

5.2.3. Off-Balance Sheet Items
The Fund will describe each of the off-Balance Sheet items that imply commitments it must fulfill in the immediate future or medium or long term.
Furthermore, it will carry out a tabular 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: not greater than one year, more than one year to 5 years, more than 5 years, among others.

5.3. Fair Value of Financial Assets and Liabilities

5.3.1. Fair Value Hierarchy
The Fund will describe the hierarchy of fair values used for the financial assets and liabilities presented in the Financial Statements at fair value. Likewise, it will 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.

5.3.2. Financial Assets and Liabilities Measured at Fair Value
The Fund will make a tabular description of the financial assets and liabilities whose book amounts are carried to fair value. The tabulation will indicate as a minimum 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, it will incorporate two global classifications of fair value measurements, the permanent measurement classification and another of fair value measurements

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-05/2016
NDMC-08
ACCOUNTING MANUAL FOR INVESTMENT FUNDS
Approval: 22/06/2016
Validity: 25/07/2016 temporal with the book values and fair values of those financial assets and liabilities both on and off the Balance Sheet, segregating them by class.
5.3.3. Transfers of Financial Assets and Liabilities between Levels 1 and 2 of the Fair Value Hierarchy
The Fund will disclose for financial assets and liabilities that are measured at fair value on a recurring basis and that are held on the General Balance Sheet at the end of the reporting period, the amounts of any transfers between Levels 1 and 2 of the fair value hierarchy, the reasons why the transfers were made, and the policies that the Fund has established to determine that transfers between levels have occurred. Transfers occurring to or from each level will be disclosed and presented separately.
5.3.4. Valuation Techniques and Inputs Used for Measuring Fair Value
For fair value measurements categorized within Levels 2 and 3 of the aforementioned hierarchy, the Fund will present a description of the valuation techniques and inputs used to obtain such measurements. If there have been changes in valuation techniques, the Fund will disclose those changes and the reasons for them. It will disclose quantitative information about significant unobservable inputs in the market, that is, when they have been developed by the Fund 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 Fund will provide quantitative information about significant unobservable inputs in the market that are used in measuring fair value. This disclosure must contain at minimum the following tabulated information: description of financial instruments, fair value at the date of the Financial Statements being reported, valuation technique used, unobservable inputs used, and the ranges handled of the inputs used as well as their weighted averages, when applicable. This disclosure is required when the inputs have been developed by the Fund.
5.3.5. Fair Value Measurements Using Significant Unobservable Inputs

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-05/2016
NDMC-08
ACCOUNTING MANUAL FOR INVESTMENT FUNDS
Approval: 22/06/2016
Validity: 25/07/2016
The Fund 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, disclosing separately the changes during the period attributable to the following:
a) Total gains and losses for the period recognized in earnings and the earnings line in which those gains or losses were recognized; b) Total gains and losses for the period recognized in other comprehensive income and the other comprehensive income line in which those gains or losses were recognized; c) Purchases, sales, issuances, and settlements disclosed 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.
5.4. Credit Risk
It will describe, by tabulation, the maximum exposure to credit risk by asset class and risk classification, both on and off 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 book values as reported in the Fund's General Balance Sheet.
5.4.1. Impaired Financial Assets
The Fund will disclose the following information:
An analysis of financial assets that have been determined individually as impaired at the end of the period on which it reports, 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 Fund to the impairment of the assets. To comply with the above, the analysis may include the following information or other that the Fund considers more representative:

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-05/2016
NDMC-08
ACCOUNTING MANUAL FOR INVESTMENT FUNDS
Approval: 22/06/2016
Validity: 25/07/2016 a) The book amount, before the deduction of any impairment loss, according to its risk classification, segregated by time periods and asset subgroups; and b) The amount of any related impairment loss and segregating it by time periods and asset subgroups.
5.5. Operational Risk
The Fund will describe the methodology it uses to manage operational risk, which implies describing the entire management process it carries out on this risk from the factors used to identify it to those used for its measurement, control, mitigation, monitoring, and communication. Note 6. Cash and Cash Equivalents The Fund must disclose in tabulated form the components of cash and cash equivalents, and will present a reconciliation of the amounts in its Cash Flow Statement with the equivalent items on which it reports in the General Balance Sheet. Among the components of cash equivalents will be included deposits with a maturity of up to 90 days. It will disclose the criteria adopted to determine the composition of cash and cash equivalent items. Likewise, it will state which resources are restricted, the purpose of the restriction, and the terms thereof. Note 7. Financial Investments

7.1. Financial Assets Held at Fair Value

a) Financial Assets Held for Trading: the Fund will disclose in tabulated form the financial instruments measured mandatorily at fair value, describing all pertinent clarifications related to these instruments. Including in such description as minimum: composition of financial instruments by issuer, instrument, term, and type of market. Additionally, it will disclose information that allows users of its Financial Statements to evaluate the nature and extent of the risks arising from the financial instruments to which the Fund is exposed at the end of the period on which it reports; and b) Financial Assets for Risk Hedging: in the case that there are contracts for operations with financial derivative instruments for risk management, the Fund will disclose in tabulated form the information

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-05/2016
NDMC-08
ACCOUNTING MANUAL FOR INVESTMENT FUNDS
Approval: 22/06/2016
Validity: 25/07/2016 following: type of financial derivative instrument, notional amount of the contract, fair value of the contract at the date of the Financial Statements whether asset or liability, and any additional information useful for the understanding of the operations.
7.2. Financial Assets Pledged as Collateral
The Fund will disclose regarding financial assets pledged as collateral the following:
a) A detail of the restricted financial assets; b) The book amount of the pledged financial assets as collateral for liabilities; and c) Description of the terms and conditions of the financial assets pledged as collateral for liabilities.
7.3. Financial Assets Pending Settlement
A tabulated detail of financial instruments negotiated and pending settlement at the closing date when they are purchases and sales must be included.
7.4. Financial Investments Received in Payment
A detail of the financial instruments and their respective values, which the Fund, for justified cause, has received in payment during the year and that are contemplated in the respective regulations or in Law, must be included, and it will place the annual comparative balance, including additionally the following information:
a) A general description of the financial instruments received in payment during the current fiscal year and their respective initial recognition value; as well as the fair value valuation adjustments and the earnings accrued during the period; and b) A detail of the financial instruments sold during the current fiscal year, including their selling price, their book value, and the results obtained upon their commercialization. Likewise, it must disclose the percentages by which it exceeds the limits established for each type of instrument permitted to invest in and within what timeframe these excesses will be reversed and the manner of doing so. Note 8. Accounts Receivable The Fund will disclose in detail the amounts that make up this grouping, making the corresponding descriptions and explanations. Lines that have their own disclosure note will be excluded from this.

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-05/2016
NDMC-08
ACCOUNTING MANUAL FOR INVESTMENT FUNDS
Approval: 22/06/2016
Validity: 25/07/2016
8.1. Accounts Receivable Investment Funds and Stockbrokerage Firms
The Fund will disclose in detail the amounts that make up this grouping, making the corresponding descriptions and explanations.

It will disclose the following:
a) The amounts for each of the categories of accounts receivable; b) A description of the accounts receivable; c) In the case of Investment Funds, a description of the earnings pending collection for each type of Investment Fund in which it has invested; and d) A detail of the amounts receivable from Stockbrokerage Firms, with a description, in the case, that these items are significant. Include other disclosures that are necessary for a better understanding by users of the Financial Statements.
8.2. Accounts Receivable from Operating Leases
The Fund will disclose regarding operating leases the following:
a) The total amount of future minimum payments corresponding to non-cancelable operating leases, as well as the amounts corresponding to the following timeframes:
i. Up to one year;
ii. Between one and five years; and
iii. More than five years.
b) The total of contingent fees recognized as income in the period; c) A general description of the conditions of the agreed leases; d) Unearned income; and e) A general description of the lease agreements signed and the total number of agreements signed.
8.3. Accounts Receivable from Related Parties
If there are transactions with related parties to the Manager, the Fund will disclose the amounts receivable between it and said parties.
8.4. Other Accounts Receivable

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-05/2016
NDMC-08
ACCOUNTING MANUAL FOR INVESTMENT FUNDS
Approval: 22/06/2016
Validity: 25/07/2016
The Fund will disclose:
a) A description of the other accounts receivable; and b) The amount corresponding to financial products receivable.
Include other disclosures that are necessary for a better understanding for users of the Financial Statements.
8.5. Accounts Receivable - Reserve Estimation
The Fund will present a detail of the estimation of uncollectibility for accounts receivable, by type of account, and if there is a reversal of impairment, it will present such detail. Note 9. Investment Properties

9.1. Investment Properties
The Fund will disclose the following:
a) A description of the Investment Properties; b) The criteria it uses to distinguish Investment Properties from properties held for sale that are held for commercialization in the normal course of activities; c) The figures included in the period's earnings by:
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 expropriation of Investment Properties; e) Contractual obligations for the acquisition, construction, or development of Investment Properties, or for repairs, maintenance, or improvements thereof; and f) A reconciliation of the book amount 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 amount;
ii. Additions: revealing separately those derived from acquisitions and those referring to subsequent disbursements capitalized in the book amount of those assets;

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-05/2016
NDMC-08
ACCOUNTING MANUAL FOR INVESTMENT FUNDS
Approval: 22/06/2016
Validity: 25/07/2016
iii. Assets classified as held for sale, as well as other disposals; and
iv. Other changes.
9.2. Properties Held for Sale.
The Fund will disclose information on assets held for sale as follows:
a) Detail of assets held for sale; b) A description of the assets held for sale that were sold or reclassified; c) Explanation of facts and circumstances of sale, reclassifications and/or expected disposals, form and timeframes; d) Gains or losses from the subsequent increase in fair value less selling costs that do not exceed accumulated impairment losses recognized, that is, it will disclose gains from reversals of impairment losses; e) Registration Number in the National Registry Center; and f) Gains or losses from the sales of said assets. The Fund will disclose the following information on changes in the plan to sell assets held for sale:
a) Description of changes in the plan; and b) Explanation of the effect of changes in the plan, on the results of operations of the current period and of prior periods.
9.3. Real Estate Received in Payment
A detail of the real estate that the Closed Fund receives for justified cause, in payment for the recovery of investments in securities, must be included, including the following information:
a) A general description of the real estate received in payment during the current fiscal year and their respective initial recognition value; and b) A detail of goods and rights that have been sold during the current fiscal year, including their selling price, their book value, and the results obtained upon their sale. The detail of the above is described below:
As of December 31, 2xxx, the Fund maintains balances for real estate received in payment valued at US$$ thousands.

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-05/2016
NDMC-08
ACCOUNTING MANUAL FOR INVESTMENT FUNDS
Approval: 22/06/2016
Validity: 25/07/2016
The movement of these goods and rights recorded in the period is presented below:
Concept Value of Goods and Rights
Balance as of December 31, 20xx US$
Plus: Acquisitions
Less: Withdrawals
Total US$

In the period from January 1 to December 31, 2xxx, goods were written off as described below:
By sale:
Selling Price Acquisition Cost
Profit or Loss
US$
It must also disclose the excess to the established limits for investment and the policies to undo said excess.
Note 10. Financial Liabilities at Fair Value
The Fund will disclose the following information:
a) The fair values that result in losses from financial instruments by sub-classification; b) Global classification of the aforementioned amounts in Current and Non-Current; and c) Other information that the Fund considers important and pertinent for the better understanding of users of financial information. Note 11. Accounts Payable

11.1. Redemptions Payable
The Fund must disclose for each type of participation share the following:
a) The amounts of redemptions pending payment to participants; b) The plan of authorized redemptions, which includes timeframes and amounts; c) Description of the commissions applicable for redemption payments; and

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-05/2016
NDMC-08
ACCOUNTING MANUAL FOR INVESTMENT FUNDS
Approval: 22/06/2016
Validity: 25/07/2016 d) Any other relevant and pertinent information for investors for a better understanding of the financial information.
11.2. Third-Party Services
The Fund will disclose the following:
a) Detail by concept of accounts pending payment for services received from third parties related to the Fund's operational activities; and b) Detailed information that allows the user to understand the integration of these accounts.

11.3. Other Accounts Payable - Benefits Payable
The Fund must disclose when applicable, for each type of participation share, the following:
a) The amounts of benefits pending payment to participants; b) The dates of benefit payment agreements; and c) Any other relevant and pertinent information for investors for a better understanding of the financial information. Note 12. Commissions Payable The Fund will disclose the following information:
a) Commissions pending payment to the Manager; b) The remuneration policy to the Manager for the administration of the Fund; c) The total of commissions paid to the Manager; and d) Any other relevant and pertinent information for investors for a better understanding of the financial information. Note 13. Loans Payable The Fund will disclose the following information:
a) The amounts of loans obtained by class, for example: from financial entities or from other entities of the financial system; b) Interest rates to which the loans are tied; c) Classification of the aforementioned loans in Current and Non-Current; d) Terms and conditions under which the loans have been received from the creditor entities; and e) Other information that the Fund considers important and pertinent for the better understanding of users of financial information.

Note 14. Provisions
The Fund will disclose for each type of provision a reconciliation that shows the following information:
a) The book amount at the beginning and at the end of the period; b) The constitutions of new provisions made in the period, including also the 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 liquidated or reversed in the period; e) The increase during the period in the discounted amount that arises 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 account; and g) Classification of the amount established at the end of the reporting periods, in Current and Non-Current. Note 15. Equity The Fund will disclose the following information:
a) For each class of participation shares:
i. Classes of participation shares, when they exist;
ii. The number of issued and paid participation shares;
iii. Participation shares by types of contributions made in money or in real estate;
iv. The unit value of the participation shares at the close of the fiscal year;
v. A reconciliation between the number of participation shares in circulation at the beginning and at the end of the period;
vi. The rights, privileges, and restrictions corresponding to each class of participation shares, including restrictions on the distribution of benefits, when applicable;
vii. Participation structure of the participants in the Fund; and
viii. Periodicity of conversion of contributions and redemptions of participation shares, including the amounts.
b) Increases in additional capital, that is, new issuances of participation shares, characteristics and restrictions, when applicable; c) Voluntary and partial decreases in capital, describing those carried out in accordance with the Internal Regulations, or to absorb losses generated in the Fund's operations; and

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-05/2016
NDMC-08
ACCOUNTING MANUAL FOR INVESTMENT FUNDS
Approval: 22/06/2016
Validity: 25/07/2016 d) A description of the nature, composition, and destination of each additional element to the participations that appear in equity as for example: results of prior exercises, profits, and other adjustments to non-distributable equity, disaggregated to the extent necessary for greater understanding of the contents. For the case of Closed Real Estate Investment Funds, indicate the value of the differences paid between the valuation of shares and their nominal value in disaggregated form. (2) In addition to the disclosures that the Fund makes in compliance with the aforementioned letter d), it must add specifically in the order that the Fund considers pertinent, within the indicated letter, the following descriptions:
15.1. Net Benefits to Distribute
The Closed Investment Fund will describe the legal requirement established in the corresponding laws, with respect to the retention of profits, proceeding then to establish the net benefits received. Net benefit received will be understood as the amount resulting from subtracting the total of losses and expenses accrued in the period from the sum of profits, interest, benefits, dividends, and capital gains effectively received. It will describe the legal requirements established in the Investment Funds Law with respect to: policy of benefit distribution, the net benefits to distribute, the absorption of losses of the exercise or accumulated from prior exercises with the year's profit, in case of losses in the exercise these will be absorbed with retained profits if there are any, among others.

15.2. Unit Value of Participation Shares
The Fund shall disclose the number of participation shares and their unit value as well as the total net assets of the Fund.

15.3. Total Participation Shares
In the case of the Closed Investment Fund, it shall disclose the total amount of participation shares placed in the market, the maximum term for placements made, as well as other relevant information regarding the same. Likewise, the Open Investment Fund shall disclose the total amount of participation shares issued, the maximum term for placements made, as well as other relevant information regarding the same.

Note 16. Interest and Dividend Income
The Fund shall disclose the following information regarding interest and dividend income:
a) It shall describe, in tabular form, the income and expenses for interest and dividends arising from the different operations of its activity; b) Method of calculating applied interest, such as effective interest rate; c) It shall describe the amount of interest not recognized in the period's income corresponding to yields generated by impaired financial assets for which the recovery of pending contractual cash flows is uncertain; d) Interest and dividends pending collection; and e) It shall 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.

Note 17. Rental Income

17.1. Operating Lease

a) The amount of income or rents for each of the properties maintained in operating lease; b) The total of contingent installments recognized in the income of the period; and c) Any other information that is useful for users of the Financial Statements. Note 18. Gains or Losses on Financial Investments

18.1. Gains or Losses from Sales of Financial Assets and Liabilities
The Fund shall disclose the following information: the detail of income or expenses generated or incurred in the derecognition of portfolios of financial assets and liabilities measured mandatorily at fair value that allow users to understand the integration of these elements.
18.2. Net Gains or Losses from Changes in Fair Value of Financial Assets and Liabilities
The Fund shall disclose separately the following information:

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-05/2016
NDMC-08
ACCOUNTING MANUAL FOR INVESTMENT FUNDS
Approval: 22/06/2016
Validity: 25/07/2016 a) A separation of what corresponds to gains or losses; and b) Any description necessary to know the various components that generate income and expenses for the Fund under the indicated concepts.

18.3. Gains from Reversal of Impairment and Losses from Recognition of Impairment of Financial Assets.
The Fund shall disclose information regarding the amount of gains from reversal of impairment and losses from recognition of impairment of assets held at amortized cost, evidencing:
a) Increases in impairment; b) Amounts removed from the Balance Sheet during the period as a result of amounts considered uncollectible, whether accounts receivable or other financial assets for which no loss estimation had been established; 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 shall add any description necessary for the user to understand the various elements that generate or originate income or expenses for the Fund under the indicated concepts. Note 19. Net Gains or Losses on Investment Properties The Fund shall disclose the following information:
a) The information corresponding to the integration of gains and/or losses generated or incurred in the process of derecognition of assets through their sale, clearly showing the determination of said values, segregating by classification of Investment Properties and those held for sale during the period; b) Detail of unrealized gains and/or losses resulting from the measurement at fair value of each of the real estate investments during the period; and c) Any impairment amount established or reversal of impairment if applicable.

Note 20. Management Expenses
The Fund shall disclose the following information:
a) The amount for remuneration for the administration of the Fund;

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-05/2016
NDMC-08
ACCOUNTING MANUAL FOR INVESTMENT FUNDS
Approval: 22/06/2016
Validity: 25/07/2016 b) The existence during the period of changes in the percentages of administration commissions; c) The existence during the period of changes in the value of administration commissions; and d) Any other information that is relevant for users of the Financial Statements. Note 21. General Administrative Expenses and Committees

21.1. Surveillance Committee Expenses
The Fund shall disclose the following information:
a) A description of expenses related to the Surveillance Committee and the detail of these by amounts; and b) The detail of other expenses incurred, which allow users to understand the integration of these components. In addition, it shall add any description necessary to know the various elements that originate expenses for the Fund under the indicated concept.
21.2. General Administrative Expenses
A summary of each of the expenses that make up general administrative expenses shall be disclosed by nature. In addition, it shall add any description necessary to know the various elements that originate expenses for the Fund under the indicated concept. Note 22. Other Income or Expenses The Fund shall disclose the following information: the detail of income or expenses that are aggregated in the indicated account, which allow users to understand the integration of these components. In addition, it shall add any description necessary to know the various elements that originate income or expenses for the Fund under the indicated concepts. Note 23. Related Parties The Fund shall disclose the following information regarding related parties to the Manager:
a) The relationships between the Fund and related parties, regardless of whether there have been transactions between them; and b) Transactions with related parties, during the periods covered by the Financial Statements, indicating the nature of the relationship with said related parties, 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. At a minimum, the information to be disclosed shall include:
i. The amount of 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 shall disclose the conditions and requirements regarding related parties and transactions that are established in accordance with the legal framework. Note 24. Fiscal Regime Include a description of the Fiscal Regime to which said Fund is subject, in accordance with what is established in Title IV, Single Chapter of the Investment Funds Law. Note 25. Information on Custody of Securities and Other Assets The detail of the entities to which the custody of investments in financial instruments, real estate property titles, or other assets requiring custody has been entrusted shall be disclosed. Note 26. Established Guarantees A comparative information of two years shall be included, detailed regarding the guarantee or guarantees established by the Manager in favor of the Fund, which must include at minimum: the nature of the guarantees, issuer, representative of the beneficiaries of the guarantee or guarantees, amount and percentage in relation to the Fund's Net Assets, validity period, and other pertinent information regarding the same. Note 27. Limits, Prohibitions, and Excesses of Investments The Fund shall disclose detailed information on the limits and prohibitions established for each type of investment, as well as on the excesses maintained as of the date of closing of the Financial Statements and the measures adopted regarding the same.

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-05/2016
NDMC-08
ACCOUNTING MANUAL FOR INVESTMENT FUNDS
Approval: 22/06/2016
Validity: 25/07/2016
Note 28. Pending Litigation
The Fund shall disclose in detail the judicial processes in which it is sued and which are initiated by interested parties, in the normal course of its operations and for various kinds. These actions may have a positive or negative impact on aspects of a legal or economic nature of the Fund. Note 29. Outsourcing of Services The Fund shall disclose the name of the companies hired, when applicable, to carry out accounting or other related services, disclosing the conditions of said contract and its relationship with the company. Note 30. Contingent Liabilities and Assets The Fund shall 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 claims, capital commitments, credit commitments, financial guarantees, among others, and when possible:
a) An estimate of their financial effects; b) An indication of the uncertainties related to the amount or the schedule of resource outflows corresponding; and c) The possibility of obtaining eventual reimbursements. When there is a probability of future inflow of cash, the Fund shall 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 management considers that disclosure could seriously harm the position of the Fund, it shall disclose the generic nature of the dispute along with the fact that information has been omitted and the reasons that have led to taking such a decision. Note 31. Risk Rating The Fund shall disclose the following information: the classification obtained, the reference date of the classification, as well as an explanation of what the obtained classification means and other information that the Fund considers pertinent for a better understanding of users of the Financial Statements.

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-05/2016
NDMC-08
ACCOUNTING MANUAL FOR INVESTMENT FUNDS
Approval: 22/06/2016
Validity: 25/07/2016
Note 32. Significant Differences between International Financial Reporting Standards and Standards Issued by the Regulator The Fund shall disclose the significant differences between International Financial Reporting Standards and the regulation issued by the Central Bank Standards Committee. Note 33. Events Occurring After the Reporting Period The Fund shall disclose the following information:
a) Update of disclosures regarding conditions that existed as of the date of the period being reported, according to new information related to those conditions that has been obtained after the reporting period; and b) Regarding each significant category of events occurring after the reporting period that do not imply adjustment:
i. The nature of the event; and
ii. An estimate of its financial effect or a statement that such estimation cannot be made.
Note 34. Goods and Rights Received in Payment
The Fund, which for justified cause, has received goods and rights in payment for the recovery of investments in securities, in case said goods and rights are not included in its investment regime or in the respective internal regulations or in the respective Law, shall disclose the following information:
a) A general description of the goods and rights received at the accounting closing and the value of their initial recognition; b) The reconciliation (table) of goods and rights starting with the balance of goods and rights received, plus goods and rights received during the period, minus withdrawals by sales until reaching the final net balance of the current period; c) A summary (table) of balances in which goods and rights received are detailed by year and the number of goods and rights held at closing; d) A summary (chart) of investments, movable goods, and rights that have been held for more than ninety (90) days since receipt and which, for justified causes, the Fund has not sold; e) Summary (chart) of investments, movable goods, and rights that were derecognized during the current period by sales, detailing the selling price,

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-05/2016
NDMC-08
ACCOUNTING MANUAL FOR INVESTMENT FUNDS
Approval: 22/06/2016
Validity: 25/07/2016 the book value, maintenance costs, sales costs incurred, and the result obtained in the sales; f) Summary (chart) of real estate goods that have been held for more than one year since receipt and which, for justified causes, the Fund has not sold; and g) Summary (chart) of goods and rights that have been transferred to Investment Properties for use in the normal course of the Fund's business.

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, failing that, originate contingent rights or obligations, enable the entity to make future claims, evidence ownership or justify the existence of certain rights or obligations, indicating the number and name of element, section, 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, the Fund may disaggregate within each sub-sub-account the detail that best suits its needs. The Chart of Accounts is structured in elements identified with one digit, sections identified with two digits, accounts identified with three digits, Primary Sub-accounts identified with four digits, Secondary Sub-accounts identified with seven digits, and Sub-sub-accounts identified with nine digits which will be the type of currency, as exemplified below:

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-05/2016
NDMC-08
ACCOUNTING MANUAL FOR INVESTMENT FUNDS
Approval: 22/06/2016
Validity: 25/07/2016
ACCOUNT TYPE
ACCOUNT CODE
ACCOUNT DESCRIPTION
Element 1 ASSET
Section 11 CURRENT ASSET
Account 110 CASH
Primary Sub-account 1100 CASH
Secondary Sub-account 1100000 GENERAL CASH
Sub-Sub-account 111000000 TYPE OF CURRENCY
Element 2 LIABILITY
Section 21 CURRENT LIABILITIES
Account 210 FINANCIAL LIABILITIES AT FAIR VALUE Primary Sub-account 2100 FOR RISK MANAGEMENT Secondary Sub-account 2100000 FOR HEDGING ACCOUNTING Sub-Sub-account 210000000 TYPE OF CURRENCY Element 3 EQUITY
Section 31 EQUITY
Account 310 PARTICIPATIONS
Primary Sub-account 3100 PARTICIPANT CONTRIBUTIONS Secondary Sub-account 3100000 NATURAL PERSONS The level corresponds to the position the account occupies 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 and Order Accounts 7 Contingent and Order Accounts by Contra

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-05/2016
NDMC-08
ACCOUNTING MANUAL FOR INVESTMENT FUNDS
Approval: 22/06/2016
Validity: 25/07/2016
Level Meaning Values
Second Section of accounts in the Financial Statement 11 Current Assets 12 Non-Current Assets 21 Current Liabilities 22 Non-Current Liabilities 31 Equity 32 Results to Apply 33 Restricted Equity 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 Financial Products Receivable 113 Financial Investments 114 Accounts Receivable 115 Estimation of Uncollectibility for Accounts Receivable (CR) 116 Taxes 117 Other Assets 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 1101 Remittances in Transit 1102 Checks Receivable from Third Parties Fifth Secondary Sub-account Identifies the position of each secondary sub-account within the primary sub-accounts. Identified by 7 digits. Minimum value: 000 Maximum value: 990 1100000 General Cash 1101000 Remittances in Transit Sixth Sub-sub-account Differentiates the class of currency that represents the balance of the sub-account. Identified by 9 digits. 110000000 General Cash ML 110000010 General Cash ME The Chart of Accounts to be used is presented in the Annexes of this Accounting Manual.

SECTION 1
ACCOUNTING APPLICATIONS MANUAL OF ASSETS

Element 1 ASSET
Section 11 CURRENT ASSETS
This element comprises monetary resources in cash, demand bank deposits, financial investments, products and accounts receivable, and prepaid expenses that are presented in the Balance Sheet along with cash equivalents. Cash equivalents are short-term, highly liquid investments, characterized by being easily convertible to cash, low risk, and liquidable 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 and sub-accounts correspond to this section:
Account 110 CASH
Primary Sub-account 1100 CASH
Primary Sub-account 1101 REMITTANCES IN TRANSIT Primary Sub-account 1102 CHECKS RECEIVABLE FROM THIRD PARTIES This account represents monetary resources both in national currency and foreign currency, available in the Fund's general cash, as well as local remittances in transit, for the development of cash operations carried out by the Manager on behalf of the Fund. It shall be debited by the entry of cash, with credit to the accounts that shall serve as counterpart, 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 shall serve as counterpart, according to the nature of the operation that generates the decrease.

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-05/2016
NDMC-08
ACCOUNTING MANUAL FOR INVESTMENT FUNDS
Approval: 22/06/2016
Validity: 25/07/2016 banks and other local and foreign financial entities and whose amounts at the close of the day have not been confirmed to have already been remitted. Account 111 BANKS AND OTHER FINANCIAL ENTITIES Primary Sub-account 1110 BANKS AND OTHER ENTITIES OF THE FINANCIAL SYSTEM This account must represent the amounts of money deposited in banks and other entities of the financial system. It shall be debited by the establishment of deposits, with credit to the accounts that shall serve as counterpart, 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 shall serve as counterpart, according to the nature of the operation that generates the disbursement. Primary Sub-account 1111 BANKS AND OTHER FINANCIAL ENTITIES OF THE EXTERIOR This sub-account must represent monetary deposits made in banks located outside the national territory, which shall be used exclusively for the receipt of money originating from the marketing of the Fund's participation shares. Shares Shares Pending to Be Issued In the case that they are issued on the same day, the primary sub-accounts shall be credited. It shall be credited by the exit of cash, with debit to the sub-accounts that shall serve as counterpart, according to the nature of the operation that generates the payment. Account 112 FINANCIAL PRODUCTS RECEIVABLE Primary Sub-account 1120 BANKS AND OTHER ENTITIES OF THE FINANCIAL SYSTEM Primary Sub-account 1121 BANKS AND OTHER FINANCIAL ENTITIES OF THE EXTERIOR In these sub-accounts, all concepts of interest or gains corresponding to the yield generated by cash and equivalents shall be recognized. It shall be debited by the

contractual interest accrued and will be credited for cash recoveries or adjustments to the same arising from various causes.
Debits to this sub-account will correspond to credits to the sub-accounts of Account 113 FINANCIAL INVESTMENTS

This account presents all investments in financial instruments made by the Fund, 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 in the Regulations and in the respective Prospectuses of the Fund.

The following sub-accounts are part of this account:

Primary Sub-account 1130 TRADING FINANCIAL ASSETS AT FAIR VALUE THROUGH 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.

It will be debited for the amounts corresponding to increases in the fair value of the debt or equity instruments acquired by the Fund, excluding transactional costs which will be applied directly to profit or loss, crediting the account its fair value increases and will be credited for the amounts of decreases in the value

Losses by financial assets held at fair value that have been restricted by having been given as collateral or other type of restriction. will be recorded.

These assets will be reclassified to their original accounts, at the moment that these are freed from all restriction.

In off-balance sheet accounts, the nominal value balance of the financial instruments given as collateral in repo operations will be recorded.

Primary Sub-account 1131
FINANCIAL ASSETS FOR RISK HEDGING AT
FAIR VALUE THROUGH PROFIT OR LOSS

All investments that the Fund has made in financial derivative instruments, which have as their exclusive object the hedging of risks of the Fund's investments, other than accounts receivable and others, that incorporate a quality of financial instrument but are grouped in another classification.

will be presented in this sub-account.

by different justified causes ceased to meet the conditions to be used as a hedge for which they were acquired. They will be maintained temporarily in this secondary sub-account, only for a maximum period of eight days, during which the Fund must sell them or redesignate them for hedging.

If the eight-day period expires and the Fund has not sold or designated the financial derivative instrument, its balance must be settled against the corresponding sub-sub-account of the secondary sub-account 309000 Loss from Hedging Operations

Primary Sub-account 1132 FINANCIAL INVESTMENTS RECEIVED IN PAYMENT

This sub-account represents the financial investments that the Fund has received in payment and that both the Investment Funds Law and its internal regulations allow it to invest in them.

It will be debited for the amounts corresponding to increases in the fair value of the debt or equity instruments received by the Fund in payment, crediting the

by Changes in the Fair Value of Assets and Liabilities

It will be credited for the amounts of decreases in the fair value of the instruments

Primary Sub-account 1133 ADJUSTMENTS OF FINANCIAL INVESTMENTS

The secondary sub-accounts that make up this primary sub-account identify the adjustments in financial investments.

Secondary Sub-account 1133000 RETURNS

This secondary sub-account will show the amounts of returns receivable at the close of accounting of the different financial instruments, acquired by the Fund.

In it, all interest or similar concepts will be recognized, established based on the contractual interest rate, which correspond to the return generated by the financial instruments.

It will be debited for the accumulation or accrual and credited for the recoveries in cash or by adjustments to the same, arising from various causes.

Account 114 ACCOUNTS RECEIVABLE

In this account, the amounts receivable in favor of the Fund arising from agreements that the Manager makes on behalf of the Fund with third parties will be recognized.

It will be debited for the amounts pending receipt with credit to the contra-accounts corresponding.

It will be credited for the recovery of the balances or when they are removed from the Balance Sheet due to established uncollectibility.

Primary Sub-account 1140 INVESTMENT FUNDS

In this sub-account, the values receivable that are held with other Investment Funds arising from returns on participation shares in favor of the Fund and that at the close of the Financial Statements are pending collection will be recognized.

Primary Sub-account 1141 TENANTS

The amounts arising from the contracts of operating leases that at the accounting close are pending collection will be recognized in this primary sub-account; these amounts correspond to rental fees and maintenance and others that are mandatory payment by the lessees.

Secondary Sub-account 1141000 RENTS RECEIVABLE

The accrued amounts of the operating leases celebrated with third parties will be recognized in this sub-account; these amounts will be equivalent to the periodic fees mandatory payment by the lessees and will be taken from the controls

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-05/2016
NDMC-08
ACCOUNTING MANUAL FOR INVESTMENT FUNDS
Approval: 22/06/2016
Validity: 25/07/2016 generated for each contract, which will be part of the notes to the Financial Statements of the Closed Investment Funds, with credit to the primary sub-account

Primary Sub-account 1142 BROKERAGE FIRMS

In this sub-account, the values pending receipt will be recognized, for the accounting of the sales of financial instruments negotiated pending settlement. In addition, any other concept pending collection to the Brokerage Firm will be recognized.

Primary Sub-account 1143 RELATED PARTIES

In this sub-account, the values receivable from persons related to the Manager and that at the close of the Financial Statements are pending collection will be recognized.

Primary Sub-account 1144 MANAGER

Secondary Sub-account 1144000 CLAIMED INDEMNITIES

Claimed indemnities pending payment by the Manager to the participants arising from the damages and losses caused by it, its representatives, directors, managers, external auditors, members of its staff and any other person who provides services to it, to the detriment of said participants, as a consequence of the execution or omission, as appropriate, of any of the actions that by virtue of the Investment Funds Law, are prohibited to the Manager.

Primary Sub-account 1145 OTHER ACCOUNTS RECEIVABLE

Other accounts receivable related to the operations of the Fund will be recognized, which have not been included in the previously described accounts, such as the indemnities claimed for accidents, dividends receivable and other accounts in favor of the Fund that at the close are pending collection. In this sub-account, the dividends declared by the companies in which the Fund holds participation and which have not yet been collected will be recorded.

It will be settled against cash and equivalents when payments are received.

Account 115 ESTIMATE OF UNCOLLECTABILITY FOR ACCOUNTS RECEIVABLE (CR)

Primary Sub-account 1150 ESTIMATE OF UNCOLLECTABILITY FOR ACCOUNTS RECEIVABLE (CR)

In this account, the estimate of reserves for accounts receivable of doubtful collection will be recorded.

Those amounts that, according to the Fund's Regulations, have not been recovered and there is no evidence of the possibility of collection, will be applied to this account; these will be recognized as expenses in the fiscal year in which such event is determined.

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

Account 116 TAXES

Primary Sub-account 1160 VAT, TAX CREDIT

In this account, the values in favor of the Closed Fund in the concept of Tax on the Transfer of Goods and the Provision of Services (VAT) will be recorded.

This sub-account is debited for the amounts of the tax on the transfer of goods movable and the provision of services, Value Added Tax (VAT), paid in the purchases 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 for sales made to them.

It is credited monthly when the VAT settlement is made with debit to the fiscal.

In any case, the sub-accounts will be used to the extent that they are applicable.

Account 117 OTHER ASSETS

This account must represent the acquisition cost of the different goods and services used for the development of the business management of the Fund.

Primary Sub-account 1170 EXPENSES PAID IN ADVANCE

This primary sub-account collects the disbursements incurred in purchases of goods and services that will be expensed over the accounting period or in subsequent periods and that meet the definition of an asset.

The corresponding amounts will be applied to the corresponding expense applying the policy that for such purposes is included in the Regulations.

Primary Sub-account 1171 GOODS AND RIGHTS RECEIVED IN PAYMENT

This sub-account represents the values, goods and rights that the Fund has received in payment for justified cause and that do not comply with what is established in the Investment Funds Law or in the respective Internal Regulations. The Manager will communicate to the Superintendence this situation, on the next business day from the date on which they were received in payment.

For the values, goods and rights that are registered in this sub-account, the Fund must proceed to their valuation and sale within a maximum period of ninety days counted from the date of the communication to the Superintendence.

This account will be debited when the Fund formalizes the receipt of the goods and rights.
It will be credited when the sale of the goods and rights is made with debit to the accounts of cash and cash equivalents.

These goods and rights will be subject to the criteria established in Section 4 Real Estate Investments, item 4 Criteria for the Accounting of Properties Held for Sale insofar as applicable.

Item 12 NON-CURRENT ASSETS

Account 120 INVESTMENT PROPERTIES

The sub-accounts of this account must represent the value of the goods owned by the Fund, received from its participants in the concept of contributions or well acquired with the purpose of obtaining future rents or capital gains.

In addition, those assets that are under construction and development and whose objective is their future use as Investment Properties will be recognized.

Primary Sub-account 1200 INVESTMENT PROPERTIES

In this primary sub-account, the goods that the Closed Fund maintains for the purpose of obtaining rents, profits and products from operating lease contracts will be recorded.

They will be debited at the time of purchase, for their acquisition value, or for the value of construction or remodeling with credit to cash and cash equivalent accounts or well to accounts payable or the accounts used for the accumulation of the cost of the same. The amounts for updates of the fair value of the Investment Properties will be recognized.

The value of the property will be determined by an appraiser; such valuation must be carried out in accordance with the Technical Valuation Standards issued by the Standards Committee of the Central Bank and in any case, at the time of its acquisition and sale.

The difference between the valuation amount and its book value, will be debited or credited

Primary Sub-account 1201 CONSTRUCTIONS

Primary Sub-account 1202 REMODELATIONS

In these accounts, all costs of development of the real estate projects will be accumulated, until putting them in conditions of use, at the date of their completion these costs will be included as part of the Investment Properties or available for sale.

It will be debited with the value that is recognized in each accounting period, crediting the cash and cash equivalent accounts

It will be credited when the construction projects have been completed and determine that the constructed or remodeled property will be used.

Primary Sub-account 1203 PROPERTIES HELD FOR SALE

Real estate properties that Closed Investment Funds acquire for the purpose of selling them and obtaining profits from that transaction are recorded in this sub-account.

Its balance will be integrated by long-term assets reclassified from a previous category to this category, due to the fact that the administration has decided to recover them through a sale operation and by long-term assets acquired exclusively for the purpose of their subsequent alienation or sale.

Account 1204 GOODS OBTAINED IN PAYMENT

This sub-account represents the real estate properties that the Fund has received in payment and that both the Investment Funds Law and its internal regulations allow it to invest in them.

This account will be debited when the Fund formalizes the receipt of the goods. It will be credited when the sale of the real estate goods is made with debit to the accounts of cash and cash equivalents.

Account 121 GOODS RECEIVED IN PAYMENT

This sub-account represents the real estate properties that the Fund has received in payment for justified cause and that do not comply with what is established in the Investment Funds Law or in the respective Internal Regulations or in the Technical Standards issued for the investments of the Investment Funds.

The Manager will communicate to the Superintendence this situation, on the next business day from the date on which they were received in payment.

For this case of real estate assets, the maximum period to proceed to their valuation and sale will be one (1) year counted from the date of the communication.

These goods and rights will be subject to the criteria established in Section 4 Real Estate Investments, item 4 Criteria for the Accounting of Properties Held for Sale insofar as applicable.

SECTION 2
ACCOUNTING APPLICATIONS MANUAL OF LIABILITIES

Element 2 LIABILITY

Item 21 CURRENT LIABILITIES

In this element, obligations contracted by the Fund, arising from normal operations of its business and derived from debts from credits obtained and expenses incurred in the execution of its operations, as well as obligations with persons related to the Manager that administers the Fund and various provisions among others.

The current liabilities item represents the obligations owed by the Fund whose maturity is less than one year.

Account 210 FINANCIAL LIABILITIES AT FAIR VALUE

This account includes all financial liabilities that the Fund has declared in its policies that it acquires or originates with the intention of managing them within a business model, whose purpose is to generate short-term gains through the continuous negotiation of the instruments or that the Fund 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 because their valuation will always be at fair value.

Primary Sub-account 2100 FOR RISK HEDGING

Secondary Sub-account 2100000 FOR ACCOUNTING HEDGES

In the primary sub-account, they will be recognized from their initial moment or by reclassification from the account in which the item that the Fund has designated as a hedging item is located.

This sub-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 Fund includes in its policies, that it acquires with the intention of using them as hedging items for the financial risks to which its investments are exposed.

All financial instruments aggregated in these sub-accounts are characterized by that their valuation will always be at fair value.

Primary Sub-account 2101 OPERATIONS WITH REPURCHASE AGREEMENTS

In this sub-account, the amounts that represent the obligations assumed by the Fund when acting as the reporting entity in repo operations are included. The amounts that are registered in this sub-account must represent the fair value of the operations on the date of the transaction.

The sub-account will be increased over the duration of the operation by the amount corresponding to the effective interest incurred, so that at maturity the sub-account has a payable value equivalent to one hundred percent (100%) of the liability.

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

Primary Sub-account 2110 LOANS WITH BANKS AND OTHER ENTITIES OF THE FINANCIAL SYSTEM

This account includes the financing that the Fund has obtained from banks and other entities of the financial system, in accordance with the debt limits established in the Technical Standards for the Investments of the Investment Funds.

Account 212 CURRENT PORTION OF LONG-TERM LIABILITIES

Primary Sub-account 2120 LOANS WITH BANKS AND OTHER ENTITIES OF THE FINANCIAL SYSTEM

This account considers the amount to be paid for the maturity in the current fiscal year of the long-term obligations contracted by the Closed Investment Fund.

Account 213 FINANCIAL EXPENSES PAYABLE

Primary Sub-account 2130 INTERESTS

The secondary sub-accounts that make up this account are credited with the amount corresponding to the contractual interest, debiting the corresponding accounts of the

Account 214 ACCOUNTS PAYABLE

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

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

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

Primary Sub-account 2140 REDEMPTIONS PAYABLE

Secondary Sub-account 2140000 PARTICIPANTS

In this account, the partial or total redemptions pending payment to the participants, according to the redemption plans established in the Internal Regulations of the Open Investment Funds, are recognized.

It will be credited with the redemption values that have been requested and authorized, against the Fund's equity. As well as for the net benefits authorized for their distribution to the participants.

It will be debited with the corresponding payment made to the participants, of the redemptions and of the net benefits.

Primary Sub-account 2141 INVESTMENT FUND MANAGERS

The amounts payable to Investment Fund Managers, arising from administration fees charged to the Fund, will be recognized.

Primary Sub-account 2142 THIRD-PARTY SERVICES

It corresponds to the obligations of the Fund contracted with third parties for services received by it, for example: external and fiscal auditors, risk classifiers, securities custody and others related to the activity of the Fund and whose billing detail is included in the Internal Regulations of the Fund.

Secondary Sub-account 2142020 CONSTRUCTIONS AND REMODELATIONS

The amounts payable arising from services to carry out constructions and remodelations in the real estate properties owned by the Closed Investment Fund that it holds for obtaining returns from their lease or sale will be recognized.

Primary Subaccount 2143 SUPERVISORY COMMITTEE
Amounts payable to the members of the Supervisory Committee of the Closed Investment Fund, in the concept of remuneration, as well as other expenses related thereto, shall be recognized in this subaccount. Its amount is determined in accordance with what is established in the Internal Regulations of the Fund.

Primary Subaccount 2144 WITHHOLDINGS FOR INCOME TAX This primary subaccount is increased by crediting it with the amounts corresponding to all withholdings that the Fund makes when making payments for professional services in accordance with the Income Tax Law. It is debited when the withholdings are paid to the Ministry of Finance.

Primary Subaccount 2145 BROKERAGE FIRMS
In this subaccount, commitments for pending settlement of purchases of negotiated financial instruments shall be recorded. This shall be settled when the funds for the purchase are delivered, as well as other payables to the same.

Primary Subaccount 2146 ACCOUNTS PAYABLE TO RELATED PARTIES This subaccount gathers the amounts owed to persons related to the Manager, which are usually part of the generation of synergy within the group, factors that facilitate or reduce operational costs by acting reciprocally in the receipt and settlement of transactions that are part of their daily activity and are pending settlement. It is credited for the amounts due to persons related to the Manager, over which there is the obligation to settle them gross or net in case 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.

Primary Subaccount 2147 OTHER ACCOUNTS PAYABLE In this subaccount, contributions received by the Fund in the concept of purchase of participation units that are pending delivery shall be recorded. The respective secondary subaccount shall be debited when the participation units are issued and equity is credited. Likewise, in this subaccount, insurance contracted for coverage of real estate in the Closed Investment Fund, as well as benefits payable to participants, are recorded.

Account 215 TAXES PAYABLE

Primary Subaccount 2150 FISCAL VAT CREDIT
This account will be increased by crediting it for the amounts collected by the Closed Investment Fund in the concept of VAT in transactions for the provision of services subject to the application of the respective Law. In case that credits are greater than fiscal debits, the difference will be transferred to Item 22 NON-CURRENT LIABILITIES.

Represents the set of obligations, charged to the Fund, whose maturity occurs at more than one year term.

Account 220 LONG-TERM LOANS
In this account, obligations contracted by the Closed Investment Fund with third-party domiciliaries, whose maturity term is more than one year, 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 SECURITY DEPOSITS RECEIVED LONG-TERM

Primary Subaccount 2210 FOR LEASES
In this account, amounts that the Closed Investment Fund receives in the concept of deposits from tenants of the Fund's Investment Properties are included, such leases, although contracted with maturity terms, the Fund does not have certainty that they must be refunded to the tenants.

Secondary Subaccount 2210000 DEPOSITS FOR CONTRACTED LEASES In this subaccount, monetary deposits received as guarantee by tenants shall be recorded, which must not be mixed with the Fund's liquidity, and must only be settled at the end of a lease contract and after deducting values that are necessary to use to rehabilitate the property to appropriate conditions to re-lease it and/or pay unpaid public services by the tenant.

Account 222 PROVISIONS

Primary Subaccount 2220 PROVISIONS
This account represents obligations registered by the Fund in the concept of future obligations; which are based on legal regulations or in the Internal Regulations of the Funds. Its recognition will take place, only if the following three conditions are met:
a) If the Fund has a present obligation as a result of a past event; b) If it is probable that the Fund will have to part with resources, which incorporate economic benefits to cancel such obligation; and c) If the Fund can make a reliable estimate of the amount of the obligation.

Secondary Subaccount 2220000 FOR JUDICIAL LITIGATION This subaccount will represent loss estimates, in accordance with the best estimate applied by the Fund in relation to lawsuits filed against it and for whose negative resolution, the Fund considers a probable outflow of economic resources that an inflow of cash. It is credited by the estimate made with a debit to the corresponding expense account.

Primary Subaccount 2221 OTHER PROVISIONS
This subaccount will be affected by any other provision that meets the conditions for its recognition and that is not one of those cited above.
20000 For Litigation case that 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 specified as the residual participation in the assets of the Fund after deducting all its liabilities. This can be subdivided, among others, in funds contributed by participants, benefits pending distribution, results to apply, restricted equity and other equity accounts (2).

Item 31 EQUITY

Account 310 PARTICIPATIONS

Primary Subaccount 3100 PARTICIPANT CONTRIBUTIONS This account records the total of participation units paid by participants for the constitution of the initial equity of the Fund, or by capitalization of profits or losses. In the case of Closed Real Estate Investment Funds, they may record the total of participation units at nominal value. (2) The capitalization of profits or the application of losses in the case of Open Investment Funds shall be recorded daily, crediting this account with a charge to the It is credited for the participation units paid, with a debit to the cash or cash equivalent accounts that correspond in the case of cash contributions or to the Investment Properties in the case of contributions of this type.

It is debited for voluntary and partial reductions as stipulated by the Fund in its Internal Regulations with a credit to cash and cash equivalent accounts or redemptions payable, whichever corresponds. In the case that there are different classes of participation units, these must be identified independently.

Item 32 RESULTS TO APPLY

Account 320 RESULTS OF PREVIOUS PERIODS
Account 321 RESULTS OF THE CURRENT PERIOD
These accounts are credited or debited with the amounts that represent the profits or losses generated in previous periods or in the current period and for which the Closed Investment Fund has not yet made decisions on their final destination. They are credited or debited with the net result amounts obtained at the end of each accounting period with a debit or credit to the result accounts, on the date that the cited ones are settled. At the close of the accounting period, the results of the current period are transferred to results of previous periods, when it comes to Closed Investment Funds. In the case of Open Investment Funds, they will transfer daily the results

Item 33 RESTRICTED EQUITY

Account 330 NON-DISTRIBUTABLE BENEFITS
This item is integrated by items that are subject to some kind of restriction, in accordance with article 75 of the Investment Funds Law, in which the conditions that distributable benefits of Closed Investment Funds must meet are included.

Primary Subaccount 3300 ACCRUED UNRECEIVED INCOME This subaccount is credited for the amounts corresponding to financial products receivable at the end of the accounting period that have affected results, but that have not yet been recovered in cash and any other gain that may have been accrued throughout the current period or in previous periods, but that at the date

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-05/2016
NDMC-08
ACCOUNTING MANUAL FOR INVESTMENT FUNDS
Approval: 22/06/2016
Validity: 25/07/2016 of the Financial Statements they are not considered realized, that is, that they have not been recovered in cash.
It is debited to the extent that accrued income from the previous period is being 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 exercise.

Account 331 OTHER COMPREHENSIVE INCOME
This account will receive with credit or debit, depending on the nature that the movement or item presents at the moment of its recognition, of all those amounts that represent gains or losses on items whose valuation requires that gains or losses on them be recognized within equity.

Primary Subaccount 3310 CHANGES IN FAIR VALUE OF HEDGING FINANCIAL INSTRUMENTS This item will be affected with credits or debits, as appropriate, by changes in the fair value of items designated as accounting hedges in a cash flow or net investment hedge. Changes in fair value that have been assigned to this account are not transferred to results on the date that the items that originated them are derecognized, but they can 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 in accordance with the nature of the change in the fair value of the hedged item. 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 results when the following occurs:
When the hedge of a planned 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 left registered in this account and subsequently it is gradually transferred to results as a reclassification adjustment in the period or periods

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-05/2016
NDMC-08
ACCOUNTING MANUAL FOR INVESTMENT FUNDS
Approval: 22/06/2016
Validity: 25/07/2016 during which the covered planned flows affect results, provided that the income or expenses for interest of the hedged item affect results. If the covered planned transaction results in the recognition of a non-financial asset or liability, the entity adjusts the book amount of the asset or liability with the amount of the gain or loss of the hedge previously deferred in this account.

Item 39 OTHER EQUITY ACCOUNTS (2)

Account 390
DIFFERENCE PAID BETWEEN VALUATION OF UNITS AND THEIR NOMINAL VALUE (2) 9 the value paid by participants upon entering the Closed Investment Fund to which the Catalog of Accounts refers and which originates from the difference between the primary issuance nominal value (at the date of placement) and the price paid for the participation units. (2)(4) It is credited for the difference between the primary issuance nominal value and the price paid for the participation units, with a debit to the cash or cash equivalent accounts or the investment properties in the case of contributions of this type. (2) (4) It is debited for the value to be refunded to participants, with a credit to the respective payable account. (2)

SECTION 4
ACCOUNTING APPLICATIONS MANUAL OF EXPENSES

Element 4 EXPENSES

Item 41 OPERATING EXPENSES

Account 410 FINANCIAL EXPENSES FROM OPERATIONS WITH FINANCIAL INSTRUMENTS Expenses for effective interest incurred in the concept of financial obligations assumed by the Fund are recorded with a credit to the corresponding liability accounts.

Primary Subaccount 4100 LOSSES FROM SALE OF FINANCIAL ASSETS AND LIABILITIES The losses that the Fund has in the sale of financial assets and liabilities that it carries out during its operations are recorded.

Primary Subaccount 4101 LOSSES FROM CHANGES IN FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES This subaccount is debited by the downward changes in the fair value of financial assets and by the upward changes in the fair value of financial liabilities.

Secondary Subaccount 4101000 HELD FOR TRADING
This account will be affected by debiting it with the downward changes in the fair value of financial assets and the 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 margin profits in the short term.

Secondary Subaccount 4101010 FOR RISK HEDGING
This subaccount will be affected by the changes in fair value of financial items designated for risk hedging.
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 evaluation, this subaccount shall be debited for the amount of the change in fair value that is equivalent to the effective amount of the hedge. Likewise, this subaccount will be affected by 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 4102 EXPENSES FROM EXCHANGE DIFFERENCES In this subaccount, losses incurred in operations due to exchange rate fluctuations that arise in assets and liabilities denominated in foreign currency are recorded.

Secondary Subaccount 4102000 LOSSES FROM EXCHANGE RATE FLUCTUATIONS

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-05/2016
NDMC-08
ACCOUNTING MANUAL FOR INVESTMENT FUNDS
Approval: 22/06/2016
Validity: 25/07/2016
In the case of exchange rate fluctuations of monetary 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, at the date of close of the Financial Statements. With a credit to the affected monetary asset and liability items. Assets for downward changes and liabilities for upward changes.

Secondary Subaccount 4102010 LOSSES FROM CURRENCY PURCHASE-SALE The balance of this secondary subaccount represents the losses that originate in the purchases and sales of currencies other than the functional one, with a credit to the cash and cash equivalent account.

Primary Subaccount 4103 EXPENSES FROM INTEREST ON OPERATIONS WITH REPURCHASE AGREEMENTS This subaccount includes expenses for effective interest incurred in the concept of financial obligations assumed by the Funds in Repo operations, it is debited with a credit to the

Primary Subaccount 4104 OTHER EXPENSES FROM OPERATIONS WITH FINANCIAL INSTRUMENTS

Secondary Subaccount 4104000 COMMISSIONS

Secondary Subaccount 4104010 SECURITIES CUSTODY Other expenses originated by the financial obligations assumed by the Fund are recorded, especially commissions and expenses for securities custody, with a credit to the corresponding liability accounts or cash and cash equivalents.

Account 411 LOSSES FROM INEFFECTIVE AMOUNTS IN RISK HEDGING OPERATIONS This account will be affected by debiting it with ineffective amounts that imply a loss and that arise in a hedge relationship, any of those established in the catalog of accounts.

Additionally, it will be affected by amounts that represent ineffective 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 412 EXPENSES FROM OBLIGATIONS WITH FINANCIAL INSTITUTIONS In this account, financial expenses related to financing obtained by Investment Funds to carry out investment activities and for liquidity needs for the payment of redemptions to participants are recorded. It is debited for interest, commissions, and financing expenses, for credit line expenses and other obligations.

Account 413 MANAGEMENT EXPENSES
This account includes operating expense accounts related to the Fund's activities. It includes expenses related to the administration and management of the Fund.

Primary Subaccount 4130 COMMISSION
This subaccount includes expenses for commissions that the Fund pays to the Manager for its administration services, it is debited with the accrual of pending commissions, in some cases, the cash and cash equivalent accounts will be additionally credited, when commissions are recognized at the time of payment.

Account 414 GENERAL ADMINISTRATIVE AND
COMMITTEE EXPENSES

Primary Subaccount 4140 SUPERVISORY COMMITTEE

Secondary Subaccount 4140000 REMUNERATIONS

Secondary Subaccount 4140010 ATTENDANCE AND REPRESENTATION

Secondary Subaccount 4140020 TRAINING
Includes the amount of expense incurred during the period, in the concept of remuneration of the Supervisory Committee, as well as other expenses related thereto.

This amount is determined in accordance with what is established in the Internal Regulations of the Fund.

Primary Subaccount 4141 PROFESSIONAL FEES AND OTHERS This primary subaccount includes the amount of operating expenses related to payments of professional fees such as Audit Firms, Law Firms, Risk Rating Agencies, Appraisers, Risk Rating Agencies, Price Providers, etc. and all other services that are necessary for the functioning of the Fund and that must be included in the Internal Regulations of the Fund. This account is debited with the amounts that the Fund must pay for the services it receives, either at the moment they are accrued or when they are paid against the respective moment of accrual or the cash and cash equivalent accounts, if they are recognized at the time of payment.

Primary Subaccount 4142 REPAIR AND MAINTENANCE OF INVESTMENT PROPERTIES This primary subaccount records the value of expenses for repairs and maintenance of land and buildings that are property of the Closed Investment Fund, which must be detailed in the Internal Regulations of the Fund.

Primary Subaccount 4143 INSURANCE AND GUARANTEES This primary subaccount records the values that the Fund pays in the concept of Insurance and Guarantees that are necessary for the functioning of the Fund, such as: insurance on Investment Property assets, for Closed Investment Funds, of money and securities for both Funds and others that have been included in the Internal Regulations of the respective Funds.

Primary Subaccount 4144 PROVISIONS
Provisions for judicial litigation, restructuring costs and others that will not be paid in the accounting period and must be recognized are detailed in this primary subaccount.

for the operation of the Fund, which must be detailed in the Fund's Internal Regulations.

Primary Sub-account 4145 OTHER EXPENSES
Other expenses whose concepts are not included in the previous accounts and which are necessary for the operation of the Fund, as defined in the respective Internal Regulations, are included in this primary sub-account.

Account 415 EXPENSES FOR ACCOUNTS RECEIVABLE

Primary Sub-account 4150
PROVISION FOR UNCOLLECTABLE ACCOUNTS RECEIVABLE Expenses for the provision of reserves for uncollectable accounts receivable of doubtful recovery will be recorded in this account. Amounts that, according to the Fund's Internal Regulations, have not been recovered and for which there is no evidence of the possibility of collection will be applied to this account; these will be recognized with a credit to Uncollectable Accounts Receivable.

Item 42 LOSSES ON INVESTMENT PROPERTIES

Account 420 LOSSES ON INVESTMENT PROPERTIES

Primary Sub-account 4200 LOSSES ON SALE OF PROPERTIES HELD FOR SALE This sub-account will be debited with the amounts corresponding to losses obtained from the sale of real estate, on the date the sale is carried out, with a credit to the corresponding asset account.

Primary Sub-account 4201 LOSSES FROM CHANGES IN FAIR VALUE This sub-account is debited for downward changes in the fair value of real estate resulting from revaluations. This sub-account will be affected with the amounts corresponding to impairment losses identified on Investment Properties, which are reduced in

Item 421 EXPENSES FROM OTHER OPERATIONS

Account 4210 EXPENSES FOR CREDITS

Primary Sub-account 4210000 EXPENSES FOR CREDIT LINES Financial expenses related to financing obtained to carry out investment activities and liquidity needs for redemption payments to participants are recorded in this account. For interest, commissions, and financing expenses, for expenses from credit lines or

Item 43 OTHER EXPENSES

Account 430 OTHER EXPENSES
Any other expenses incurred by the fund that correspond to other concepts not classified in any of the previous descriptions will be recorded in this account.
Such expenses must be detailed in the Fund's Internal Regulations.

Primary Sub-account 4302 LOSSES ON SALE OF GOODS AND RIGHTS RECEIVED IN PAYMENT This sub-account must represent the value of losses incurred from the sale of movable property, real estate, investments, and rights received in payment.

Secondary Sub-account 4309000 LOSSES FROM HEDGING OPERATIONS This secondary sub-account will apply to derivatives acquired by the Fund for hedging operations that have exceeded the eight-day term to maintain them in this sub-account, and have not been sold or designated for hedging other financial instruments.

SECTION 5
ACCOUNTING APPLICATION MANUAL FOR INCOME

Element 5 INCOME

Item 51 OPERATING INCOME

Account 510 INCOME FROM INVESTMENTS
This element includes operating income accounts related to normal operations, that is, those that are a consequence of the execution of the operations for which the Investment Fund was created and by the nature of the Investment Fund. This group of sub-accounts will record income from banking operations that accrue interest on balances deposited in Local or Foreign Financial Institutions where the financial resources of Investment Funds are allowed to be deposited. It is credited with the amounts accrued for this concept with a debit to the asset accounts where the corresponding financial products receivable are recorded.

Primary Sub-account 5100 INTEREST ON DEPOSITS
Interest generated by deposits in banks and other local and foreign financial entities is recorded in this primary sub-account.
.

Primary Sub-account 5101 FROM FINANCIAL INVESTMENTS Interest generated by financial investments at fair value with changes in profit or loss, acquired by the Fund in accordance with the limits established in the investment policy defined in its Internal Regulations, is recorded in this sub-account. This sub.

Primary Sub-account 5102 GAINS FROM CHANGES IN FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES The secondary sub-accounts of this primary sub-account are credited for upward changes in the fair value of financial assets and downward changes in the fair value of financial liabilities.

Primary Sub-account 5103 GAINS FROM SALE OF FINANCIAL ASSETS AND LIABILITIES

This sub-account will be affected by crediting it with the amounts representing a gain from the sale of financial assets and liabilities with a debit to the corresponding cash and cash equivalents account.

Primary Sub-account 5104 GAINS FROM REVERSAL OF IMPAIRMENT OF FINANCIAL ASSETS Gains resulting from the reversal of reserves for estimation of uncollectable accounts receivable will be accounted for in this sub-account. This sub-account will be affected with the amounts corresponding to reversals of estimates for uncollectable doubtful collection accounts, which previously caused the recognition of impairment losses on such accounts receivable. On the date this sub-account is affected, there will be evidence that the accounts receivable have been recovered in part or in full of their lost value; consequently, these value increases will affect this sub

Primary Sub-account 5105 OTHER GAINS FROM REVERSALS In this sub-account, increases in the value of assets are recorded, when a loss for impairment of value of accounts for contingencies and commitments had previously been recognized, with a debit to the corresponding asset accounts, up to the amount of losses previously recognized.

Primary Sub-account 5106 OTHER INCOME

Secondary Sub-account 5106000 GAINS FROM EXCHANGE RATE FLUCTUATIONS Related to fluctuations in the exchange rate of monetary items denominated in foreign currency, gains obtained from the conversion, at the buying exchange rate, of the functional currency, at the closing date of the Financial Statements, are credited with the amounts accrued for this concept. With a debit to the monetary asset and liability items affected by the conversion. Assets for upward changes and liabilities for downward changes.

Secondary Sub-account 5106010 GAINS FROM CURRENCY PURCHASE-SALE The balance of this secondary sub-account represents the gains that originate in the purchase and sale of currencies other than the functional one, with a debit to the cash and cash equivalents account.

Primary Sub-account 5107 GAINS FROM INEFFECTIVE AMOUNTS IN HEDGING OPERATIONS

Secondary Sub-account 5107000 HEDGING ITEMS
This secondary sub-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. It will also be affected with amounts representing ineffective amounts that imply a gain and that come from a hedged item; in the latter case, only of an item hedged in a fair value hedging relationship.

Account 511 INCOME FROM INVESTMENT PROPERTIES
This account will be affected by crediting it with the amounts representing income for Closed Investment Funds obtained from real estate received from participants or purchased to obtain income from their lease or sale.

Primary Sub-account 5110 INCOME FROM LEASES
Values obtained in the concept of accrued operating leases of real estate owned by the Fund are recorded in this sub-account, considering the effective interest rate for their accrual. cash and cash equivalents if recognized at the time of payment.

Primary Sub-account 5111 GAINS ON SALE OF PROPERTIES HELD FOR SALE Gains obtained from the sale of real estate from Investment Properties that the Closed Investment Fund has acquired through purchase or participations, with the intention of selling them, will be recognized in this sub-account.

Primary Sub-account 5112 GAINS FROM CHANGES IN FAIR VALUE OF INVESTMENT PROPERTIES Gains arising from the revaluation of Investment Properties during the period, obtained as the variation between the book value of those Properties and their fair value, will be recognized in this account. It will be credited with increases in the value of Investment Properties with a debit to the corresponding sub-account.

Item 52 OTHER INCOME

Account 520 OTHER INCOME

Primary Sub-account 5200 GAINS ON SALE OF GOODS AND RIGHTS RECEIVED IN PAYMENT Any other income or flows received by the Fund, which correspond to any other income not classified in any of the previous descriptions, will be recorded in this account. This primary sub-account must represent the value of gains obtained from the sale of movable property, real estate, investments, and rights received in payment.

SECTION 6
ACCOUNTING APPLICATION MANUAL FOR CONTINGENT AND OFF-BALANCE SHEET ACCOUNTS

Element 6 CONTINGENT AND OFF-BALANCE SHEET ACCOUNTS

Item 61 CONTINGENT ACCOUNTS

Account 610 OPEN LEGAL PROCEEDINGS

Primary Sub-account 6100 OPEN LEGAL PROCEEDINGS AGAINST THE FUND This element considers amounts that represent contingent liabilities, that is, those events that, according to the Fund's knowledge of them, at the date of the Financial Statements, it is not probable that a present obligation exists due to them and the possibility that a resource outflow occurs due to them is not remote.

Item 62 OFF-BALANCE SHEET ACCOUNTS

Account 620 OPEN LEGAL PROCEEDINGS

Primary Sub-account 6200 OPEN LEGAL PROCEEDINGS BY THE FUND In this account, amounts that could favor the Fund due to open legal proceedings against third parties, from which the probability of some monetary settlement in favor arises, will be recorded.

Account 621 OPERATIONS WITH FINANCIAL DERIVATIVE INSTRUMENTS The nominal or notional amounts of contracts for financial derivative instruments purchased or acquired for the purpose of risk hedging will be accounted for in the sub-accounts of this account.

Account 622 SECURITIES IN CUSTODY
The values of the Fund's own financial instruments that are in the custody of an authorized institution will be recorded in this account.

Account 623 SECURITIES AND OWN GOODS Ceded AS COLLATERAL The values and goods of the Fund that have been ceded as collateral will be recorded in this account.

Account 624 GUARANTEES CONSTITUTED IN FAVOR OF FUND PARTICIPANTS The amounts corresponding to guarantees constituted in favor of Fund Participants, in accordance with Article 22 of the Investment Funds Law, will be recorded in this account. The amounts for which they will be recorded in these control accounts will be the value at which they were received and will be updated monthly, or with a lesser periodicity if applicable.

Account 625 OBLIGATIONS FROM REPURCHASE OPERATIONS This account will reflect the nominal value of the financial instruments on which the Fund has acquired the obligation of sale through repurchase operations with a repurchase agreement. The fair value of the restricted financial instruments will be reflected in the asset account.

Account 626 PENDING REDEMPTION REQUESTS TO BE CANCELED This control account will reflect the value of requests presented by participants in which they ask for the redemption of their participation units outside the cut-off time or for other justified causes and are pending payment.

Account 627 GUARANTEES FOR REPURCHASE OPERATIONS

Primary Sub-account 6270 RIGHT OF REPURCHASE FOR SALES REPURCHASES This account will reflect the purchase right of the financial instruments on which the Fund has invested in repurchase operations with a resale agreement.

Account 628 PENDING SUBSCRIPTION OR CONTRIBUTION REQUESTS This control account will reflect the value of requests presented by participants in which they require the subscription or contribution of participation units outside the cut-off time or for other reasons and are pending delivery.

Account 629 PENDING LEASE PAYMENTS FOR CLOSED FUNDS Lease payments that lessees have pending payment to the Fund will be recorded in this account.

Item 63 OTHER OFF-BALANCE SHEET ACCOUNTS (1)

Account 630 WRITT-OFF ASSETS

Primary Sub-account 6300 WRITT-OFF ASSETS

Secondary Sub-account 6300000 WRITT-OFF FOR ACCOUNTING HEDGING

Derivatives acquired by the Fund for in the secondary sub-account of expenses due to the fact that the eight-day term to maintain them in the secondary sub-account of Asset has expired, and they have not been sold or designated for hedging other financial instruments.

Its balance will be adjusted in accordance with the variations originating from its valuation at fair value.
In the event that the derivative is subsequently realized, the balance of this account will be settled to be activated in the corresponding financial accounts.

SECTION 7
ACCOUNTING APPLICATION MANUAL FOR COUNTER CONTINGENT AND OFF-BALANCE SHEET ACCOUNTS

Element 7 COUNTER CONTINGENT AND OFF-BALANCE SHEET ACCOUNTS.

Item 71 COUNTER COMMITMENT CONTINGENT ACCOUNTS

Account 710 COUNTER OPEN LEGAL PROCEEDINGS.

Primary Sub-account 7100 COUNTER OPEN LEGAL PROCEEDINGS AGAINST THE FUND This Element will serve as a counter-account to all contingent accounts developed in Section 6.

Item 72 COUNTER OFF-BALANCE SHEET ACCOUNTS

Account 720 COUNTER OPEN LEGAL PROCEEDINGS BY THE FUND.

Account 721 COUNTER OPERATIONS WITH FINANCIAL DERIVATIVE INSTRUMENTS.

Account 722 COUNTER SECURITIES IN CUSTODY.

Account 723 COUNTER SECURITIES AND OWN GOODS Ceded AS COLLATERAL.

Account 724 COUNTER GUARANTEES CONSTITUTED IN FAVOR OF FUND PARTICIPANTS.

Account 725 COUNTER OBLIGATIONS FROM REPURCHASE OPERATIONS.

Account 726 COUNTER PENDING REDEMPTION REQUESTS TO BE CANCELED.

Account 727 COUNTER GUARANTEES FOR REPURCHASE OPERATIONS.

Account 728 COUNTER PENDING SUBSCRIPTION OR CONTRIBUTION REQUESTS.

Account 729 COUNTER PENDING LEASE PAYMENTS FOR CLOSED FUNDS.

Item 73 OTHER COUNTER OFF-BALANCE SHEET ACCOUNTS (1)

Account 730 COUNTER WRITT-OFF ASSETS.
This element, items, accounts, and sub-accounts will serve as counter-accounts to all off-balance sheet accounts developed in Section 6 of this Manual.

CHAPTER V
FINANCIAL STATEMENT MODELS

Model No. 1
NAME OF OPEN INVESTMENT FUND
ADMINISTERED BY: NAME OF THE MANAGER
Balance Sheet
Balances as of December 31 (current year) and (previous year) (Expressed in thousands of United States dollars) Note (Current Year) (Previous Year) Asset US$ US$ Current Assets Cash and Cash Equivalents (110 + 111+ 112) )- (1110020+1120020)* 6 Time Deposits (1110020+1120020)* Financial Investments (113) 7 Net Accounts Receivable (114+115) 8 Other Assets (117) Non-Current Assets Goods Received in Payment (121) 9.3 Total Assets Liability Current Liabilities Financial Liabilities at Fair Value (2100 to 2101) 10 Loans with Banks and Other Entities of the Financial System (211 +2130000) Accounts Payable (214) 11 Non-Current Liabilities Provisions (222) 14 Total Liabilities Equity 15 Participations (310) Other Comprehensive Income (3310) Total Equity Total Liability and Equity Number of Participation Units issued and paid Unit Value of Participation Unit

With maturity terms greater than 90 days
The notes on pages _ to _ are an integral part of these Financial Statements.

Model No. 1-A
NAME OF CLOSED INVESTMENT FUND
ADMINISTERED BY: NAME OF THE MANAGER
Balance Sheet
Balances as of December 31 (current year) and (previous year) (Expressed in thousands of United States dollars) Note (Current Year) (Previous Year) Asset US$ US$ Current Assets Cash and Cash Equivalents (110 + 111+ 112)- (1110020+1120020)* 6 Time Deposits (1110020+1120020)* Financial Investments (113) 7 Net Accounts Receivable (114 +115) 8 Taxes (116) Other Assets (117) Non-Current Assets Investment Properties (1200+1201+1202+1204) 9.1 Properties Held for Sale (1203) 9.2 Goods Received in Payment (121) 9.3 Total Assets Liability Current Liabilities Financial Liabilities at Fair Value (210) 10 Loans with Banks and Other Entities of the Financial System (211 to 213) 13 Accounts Payable (214) 11 Taxes Payable (215) Non-Current Liabilities Long-Term Loans (220 to 221) 13 Long-Term Security Deposits Received (221) Provisions (222) 14 Total Liabilities Equity 15 Participations (310) Results to Apply (32) Restricted Equity (33) Other Equity Accounts (39) (2) Total Equity Total Liability and Equity Number of Participation Units issued and paid Unit Value of Participation Unit

With maturity terms greater than 90 days
The notes on pages _ to _ are an integral part of these Financial Statements.

Model No. 2
NAME OF OPEN INVESTMENT FUND
ADMINISTERED BY: NAME OF THE MANAGER
Statement of Comprehensive Income
For the years ended December 31 of (current year) and (previous year) Expressed in thousands of United States dollars

Note
(Current
Year)
(Previous
Year)
OPERATING INCOME US$ US$
Income from Investments (510) 16,18
OPERATING EXPENSES
Financial Expenses from Operations with Financial Derivative Instruments (410+411) 18 Management Expenses (413) 20 General Administrative and Committee Expenses (414) 21.2 OPERATING RESULTS Expenses for Obligations with Financial Institutions (412) 13 Other Income (Expenses) (52-(415+421+43)) 22 PROFIT (LOSS) FOR THE PERIOD OTHER COMPREHENSIVE INCOME Adjustments for Changes in Fair Value of Hedging Financial Instruments (3310) TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

The notes on pages _ to _ are an integral part of these Financial Statements.

Model No. 2-A
NAME OF CLOSED INVESTMENT FUND
ADMINISTERED BY: NAME OF THE MANAGER
Statement of Comprehensive Income
For the years ended December 31 of (current year) and (previous year) Expressed in thousands of United States dollars

Note
(Current
Year)
(Previous
Year)
OPERATING INCOME US$ US$
Income from Investments (510) 16,18
Income from Investment Properties (511) 17
OPERATING EXPENSES
Financial Expenses from Operations with Financial Instruments (410+411) 18 Losses on Investment Properties (420) 19 Management Expenses (413) 20 General Administrative and Committee Expenses (414) 21 OPERATING RESULTS Expenses for Obligations with Financial Institutions (412) 13 Other Income (Expenses) (52-(415+421+43)) 22 PROFIT (LOSS) FOR THE PERIOD OTHER COMPREHENSIVE INCOME Adjustments for Changes in Fair Value of Hedging Financial Instruments (3310) TOTAL COMPREHENSIVE INCOME FOR THE PERIOD Basic Earnings per Participation Title (expressed in _____ per unit):
NET BENEFITS PER SHARE
Net Benefits to Distribute 15.1
No. of Participation Units issued and paid
The notes on pages _ to _ are an integral part of these Financial Statements.

Model No. 3
NAME OF OPEN INVESTMENT FUND
ADMINISTERED BY: NAME OF THE MANAGEMENT COMPANY Statement of Changes in Equity For the years ended December 31 of (current year) and (previous year) (Expressed in thousands of United States dollars)

CONCEPTS Notes Participations
Current Year Results
Other Comprehensive Income
Total Equity
Balance at January 1, 20x1
Effects of error corrections
Effects of changes in accounting policies
Restated Balance
Increase from new participation shares
Reductions in participation shares due to paid redemptions Increase (Decrease) in Participation Balance due to Valuation Net Adjustments in the Fair Value of Instruments for Hedging Daily Profit (Loss) Balance at December 31, 20x1 15 Increase from new participation shares Reductions in participation shares due to paid redemptions Increase in Participation Balance due to Valuation Increase (Decrease) in Participation Balance due to Valuation Net Adjustments in the Fair Value of Instruments for Hedging Daily Profit (Loss) Balance at December 31, 20x2 15

The notes on pages _ to _ are an integral part of these Financial Statements.

Model No. 3-A
NAME OF CLOSED INVESTMENT FUND
ADMINISTERED BY: NAME OF THE MANAGEMENT COMPANY Statement of Changes in Equity For the years ended December 31 of (current year) and (previous year) (Expressed in thousands of United States dollars)

CONCEPTS Notes Participations
Results to be Applied
Restricted Equity
Other
Comprehensive Income
Other Equity
Accounts (2)
Total Equity
Balance at January 1, 20x1
Effects of error corrections
Effects of changes in accounting policies
Restated Balance
Increase from new participation shares
Reductions in participation shares due to withdrawal rights Net transfers of distributable benefits Distributed benefits Net adjustments in the fair value of instruments for hedging Profit for the Period Balance at __ of ____ of 20xx 15 Increase from new participation shares Reductions in participation shares due to withdrawal rights Net transfers of distributable benefits Distributed benefits Net adjustments in the fair value of instruments for hedging Profit for the Period Balance at __ of ____ of 20__ 15

The notes on pages _ to _ are an integral part of these Financial Statements.

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-10/2016
NDMC-08
ACCOUNTING MANUAL FOR INVESTMENT FUNDS
Approval: 22/06/2016
Validity: 25/07/2016

Model No. 4

NAME OF OPEN INVESTMENT FUND
ADMINISTERED BY: NAME OF THE MANAGEMENT COMPANY Statement of Cash Flows Years ended December 31 of (current year) and (previous year) (Expressed in thousands of United States dollars)

Note
(Current Year
Previous Year)
Cash flows from operating activities: US$ US$
Interest Received (+)
Dividends Received (+)
Benefits Received (+)
Payments to service providers (-)
Recovery of Accounts Receivable (+)
Sale of Assets and Rights Received in Payment (+) Other receipts related to the activity (+) Other Payments related to the activity (-) Net cash provided (used) by operating activities Cash flows from investing activities Acquisition of Financial Investments (-) Sale of Financial Investments (+) Decrease in Time Deposits over 90 days (+) Increase in Time Deposits over 90 days (-) Net cash provided (used) by investing activities Cash flows from financing activities Contributions by Participants (+) Redemptions of Participations (-) Loans Received (+) Loans Paid (-) 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 ___ of _____ 6 US$ US$

The notes on pages _ to _ are an integral part of these Financial Statements.

Model No. 4-A
NAME OF CLOSED INVESTMENT FUND
ADMINISTERED BY: NAME OF THE MANAGEMENT COMPANY Statement of Cash Flows Years ended December 31 of (current year) and (previous year) (Expressed in thousands of United States dollars)

Note Current Year Previous Year
Cash flows from operating activities: US$ US$
Interest Received (+)
Dividends Received (+)
Benefits Received (+)
Deposits for Operating Leases Received (+)
Receipts from Tenants (+)
Payments to service providers (-)
Interest Payments on loans (-)
Recovery of Accounts Receivable (+)
Payments to the Supervisory Committee (-)
Sale of Assets and Rights Received in Payment (+) Other receipts related to the activity (+) Other Payments 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 Real Estate Investments (-) Sale of Real Estate Investments (+) Decrease in Time Deposits over 90 days (+) Increase in Time Deposits over 90 days (-) Net cash provided (used) by investing activities Cash flows from financing activities Contributions by Participants (+) Withdrawals due to rights (-) Loans Received (+) Loans Paid (-) Payments of Benefits to Participants (-) Income from Other financing activities (+) Expenses from 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 6 US$ US$

The notes on pages _ to __ 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 the twenty-fifth of July of two thousand sixteen.

MODIFICATIONS:
(1) Modification approved based on the generic procedure agreed upon by the Standards Committee of the Central Reserve Bank in Session CN-01/2016, on February 24, 2016. Validity of modification as of September 9, two thousand sixteen. (2) Modifications to incorporate Item, Account, Primary Subaccounts, Secondary Subaccounts, and Sub-subaccounts to register the differences between valuation of shares and their nominal value for Closed Real Estate Investment Funds, approved by the Central Bank through its Standards Committee, in Session No. CN-17/2019, dated October 23, two thousand nineteen, with validity as of October 28, two thousand nineteen. (3) Modification of the obligation of Administrative Books, approved by the Central Bank through its Standards Committee, in Session No. CN-03/2020, dated February 26, two thousand twenty, with validity as of March 2, two thousand twenty. (4) Modification to incorporate the accounting treatment of paid-in capital in excess of Closed Venture Capital Investment Funds, approved by the Central Bank through its Standards Committee, in Session No. CN-02/2023, dated March 17, two thousand twenty-three, with validity as of April 3, two thousand twenty-three.

Accounting Manual for Investment Funds

Similar documents from other regulators