Accounting Manual for Pension Fund Administrators

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-11/2022
NSP-42
MANUAL DE CONTABILIDAD PARA LAS ADMINISTRADORAS DE FONDOS DE PENSIONES Aprobación: 30/12/2022 Vigencia: 01/03/2023

EL COMITÉ DE NORMAS DEL BANCO CENTRAL DE RESERVA DE EL SALVADOR,

CONSIDERING:
I. That by Legislative Decree No. 614, dated December 20, 2022, and published in Official Diary No. 241, Volume No. 437 on December 21, 2022, the Comprehensive Pension System Law was approved.
II. That Article 27, first paragraph, of the Comprehensive Pension System Law, establishes that Pension Fund Administrators shall be Financial Pension Institutions, whose exclusive purpose is to administer a fund known as the Pension Fund, manage and grant the benefits and benefits established by the Law.
III. That Article 27, fourth paragraph, of the Comprehensive Pension System Law, establishes that for the constitution and exercise of their functions, Administrators shall be governed by the provisions of this Law, the Law on Supervision and Regulation of the Financial System, its regulations, and other applicable requirements in accordance with the Commercial Code.
IV. That Article 27, fifth paragraph, of the Comprehensive Pension System Law, establishes that Administrators are also authorized to administer Voluntary Pension Savings Funds and receive commissions for doing so. Such Funds shall be constituted as independent patrimony of the Administrator and of the Pension Funds it administers, being constituted by operation of law when recorded in the Registry of the Superintendence.
V. That Article 38, second paragraph, of the Comprehensive Pension System Law, establishes that the net worth of Administrators shall be understood as the sum of paid-in capital, legal reserve, and other capital reserves, plus surplus accounts and retained earnings, fifty percent of net profits from current year income tax provision, fifty percent of revaluations authorized by the Financial System Superintendence, less equity participations in other companies and the value of losses, if any.
VI. That Article 45, first paragraph, of the Comprehensive Pension System Law, establishes that the Central Bank, through its Standards Committee, shall issue the corresponding accounting regulations in which the accounting obligations of the Administrators and the pension fund, the mandatory accounting principles, and the provisions for the formulation of Financial Statements shall be determined. All of this with the objective of reflecting the real financial situation of the Administrators.
VII. That Article 46, first and second paragraphs, of the Comprehensive Pension System Law, establishes that each Administrator must publish in two newspapers of national circulation within the first sixty days of each year, the financial statements of the company and the Pension Fund it administers, referring to the annual accounting period corresponding to the immediate previous year, subject to what the Technical Standards dictate for this purpose, establishing their publication frequency. Such financial statements must be audited by external auditors registered in the registry of the Financial System Superintendence, and the publications must contain their opinion.
VIII. That Article 46, fourth paragraph, of the Comprehensive Pension System Law, establishes that each Administrator must also publish in two newspapers of national circulation or by the means established in the Special Law Regulating the Obligation of Persons to Comply with the Principle of Publicity, the interim financial statements as of June 30, both of the company and of the Funds it manages.
IX. That Article 159, first paragraph, of the Comprehensive Pension System Law, establishes that the Central Bank of El Salvador shall issue the Technical Standards and Resolutions necessary to allow the development of what is established in this Law.
X. That Article 99, letter 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 Bank to approve the Technical Standards for the elaboration, approval, 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 constitution of provisions and reserves for risks.

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

ACCOUNTING MANUAL
FOR PENSION FUND ADMINISTRATORS

CHAPTER I
GENERAL PROVISIONS

OBJECTIVE

1.1 General Objective
To standardize the accounting recording of operations carried out by Pension Fund Administrators, for the generation of financial statements that reflect the financial situation and management results of the Administrators, as an instrument for information analysis and decision-making by the administrators of the Administrators, the public users of the services, and other interested parties.

1.2 Specific Objective
To have complete, timely, and homogeneous information on the financial and economic situation of the Administrators that contributes to decision-making by the affiliates and public users of the services provided by these Administrators.

SCOPE
The application of the Manual is mandatory for Pension Fund Administrators authorized by the Superintendence, for the management of their own operations. The Manual consists of the General Provisions, the Account Catalog, the Accounting Applications Manual, and the Financial Statement Models with their Notes.
TERMS

a) AEG: Special Guarantee Contribution; b) PFA: Pension Fund Administrators; c) Central Bank: Central Bank of El Salvador; d) CIAP: Individual Pension Savings Account; e) FAPV: Voluntary Pension Savings Fund; f) Fund: Pension Fund; g) IBC: Contribution Base Income; h) Law: Comprehensive Pension System Law; i) SP: Pension System; j) Superintendence: Financial System Superintendence; and k) Securities: Shares, debentures, and other securities.

CODIFICATION STRUCTURE
The codification structure has been created based on a system of codes and account denominations that contemplates different levels of classifications, distinguishing the following:
Class: Identified by the first digit
Section: Identified by the first two digits
Account: Identified by the first three digits
Sub-account: Identified by the first five digits Currency Type: Identified by the sixth digit Analytical Account: Identified from the seventh digit onwards

The codification system established up to the sub-account level uses five (05) digits; at the analytical account level, it uses more than seven digits, complemented by the sixth digit (M), which must always precede the use of analytical accounts, established to differentiate accounts by currency type and accounts with valuation. The codes at the sixth digit level must be used as follows:
a) Used for operations in legal tender currency; b) Used for operations in foreign currency; c) Used for operations with valuation; and d) Used for operations with exchange rate differential.

CLASSIFICATION OF THE ACCOUNT CATALOG
The defined classes comprise the sections, accounts, sub-accounts, and analytical accounts, as established in the respective Account Catalog; and are as follows:
Class 100 Assets
Class 200 Liabilities
Class 300 Equity
Class 400 Expenses
Class 500 Income
Class 600 Contingent Accounts and Commitments
Class 700 Control Accounts

The accounts contained in the Account Catalog do not constitute authorization to carry out the operations to which they refer; PFAs must adhere to the legal norms, regulations, and instructions issued for this purpose. PFAs may not use new accounts or sub-accounts without prior authorization from the Central Bank. However, they may open additional analytical accounts to those established in the Account Catalog, with the exception of analytical accounts designated to identify banking entities, financial entities, stock exchanges, issuers, and others. Regarding investment accounts in securities such as 121, 122, and 123, sub-accounts may be incorporated through the following procedure:

The PFA will notify the Superintendence and the Standards Committee of the Central Bank that it has acquired titles, detailing the following:
a) Name of the issuer; b) Date of acquisition and settlement; and c) Characteristics of the issuance.
Additionally, the PFA will request the Central Bank to assign the code and denomination of the corresponding sub-account.
The Central Bank will make the corresponding evaluation and, if the assignment of new sub-accounts is necessary, will notify the PFA and the Superintendence of the code and denomination of the sub-account added to the Account Catalog and the Accounting Applications Manual, for immediate application.
The Financial Regulation Management of the Central Bank will proceed to compile the Manual incorporating the new sub-accounts, publish them on the Central Bank's website, and then communicate them to the PFAs via a circular signed by the Secretary of the Standards Committee of the Central Bank.
The Financial Regulation Management of the Central Bank will inform about the incorporations of the new sub-accounts to the Standards Committee of the Central Bank in the Session following the publication of the added sub-accounts.
DENOMINATION AND CODIFICATION OF FINANCIAL SYSTEM INSTITUTIONS AND FOREIGN ENTITIES

Financial System Institutions and foreign entities must be identified with the codes presented in the attached table, which will be applied immediately after the last code determined in the Account Catalog for the corresponding account. When a new Institution or Issuer is incorporated, the Superintendence must be consulted to identify the code to be assigned; upon the withdrawal of any codified Institution, the code corresponding to it will be omitted.

Financial System Institutions and Foreign Entities BANKS INSURANCE AND GUARANTEE COMPANIES Central Bank of El Salvador 0101 Agrícola Comercial Insurance Company, S. A. 0601 Agricultural Bank, S. A. 0103 Protege Seguros, S.A. 0602 Cuscatlán Bank of El Salvador, S. A. 0104 Sura Insurance, S.A. 0603 Salvadoran Davivienda Bank, S. A. 0107 MAPFRE La Centro Americana, S. A. 0606 Mortgage Bank of El Salvador, S. A. 0108 Insurance and Investments, S. A. 0608 Citibank, N. A., El Salvador Branch 0109 Pacific Insurance, S. A. 0609 Agricultural Development Bank 0110 Davivienda Commercial Bolívar Insurance, S. A. 0611 Atlántida Bank El Salvador, S. A. 0112 Pan American Life Insurance Company (El Salvador) 0613 Promérica Bank, S. A. 0120 The Central Insurance and Guarantees Company, S. A. 0614 Central America Bank, S. A. 0127 Future Insurance, A. C. de R. L. 0615 Abank Bank, S.A. 0130 Atlántida Life, S.A., Life Insurance 0617 Industrial Bank El Salvador, S. A. 0131 SISA, LIFE, S. A., Life Insurance 0619 Azul Bank of El Salvador, S.A. 0132 Sura Insurance, S.A., Life Insurance 0620 Integral Support Bank, S.A. (3) 0133 Abank Insurance, S.A., Life Insurance 0622 Qualitas Insurance Company, S. A. 0623 ASSA Insurance Company, S. A. 0624 BROKERAGE FIRMS ASSA LIFE, S. A., Life Insurance 0625 General Brokerage Services, S. A. de C.
V. 0301 Azul Life Insurance, S. A., Life Insurance 0626
Hencorp S.A. de C.V. 0302 Azul Insurance, Insurance Company, S.A. 0627 Banagrícola Securities, S. A. de C. V. 0303 Fedecrédito Insurance, S.A. 0628 Cuscatlán El Salvador Securities, S. A. de C. V. 0304 Fedecrédito Life, S.A., Life Insurance 0629 LAFISE Securities of El Salvador, S. A. de C. V. 0305 Cuscatlán SV Investments, S.A. de C.V. 0306 Davivienda El Salvador Securities, S.A. de C.V. 0307

Atlántida Securities, S. A., Brokerage
Firm 0308 OTHER FINANCIAL INSTITUTIONS
Sysvalores, S. A. de C. V. 0309 SAVINGS AND CREDIT COMPANIES Valores Azul, S.A. de C.V. 0318 Savings and Credit Company CREDICOMER, S.A. (1) 0702 STOCK EXCHANGES Savings and Credit Company MultiMoney S.A. (2) 0703 Stock Exchange of El Salvador, S.A. de C.V. 0401 Savings and Credit Company Optima, S.A. (4) 0705 SECURITY DEPOSIT AND CUSTODY Central Securities Depository, S. A. de C.V. (CEDEVAL, S. A. de C. V.) 0501 FOREIGN INSTITUTIONS BANKS COOPERATIVES (4) FOREIGN BANKS Multi Inversiones Cooperative Bank of the Workers, S.C. de R.L. de C.V. (4) 0802 The Bank of New York Mellon 0701 First Bank of the Workers, S.C. de R.L. de C.V. (5) 0806 Cooperative Association of Savings and Credit of the Medical College of El Salvador de R.L. (5) 0807 In the case that a PFA expresses interest to the Superintendence in carrying out financial operations with a new national financial system institution or a foreign entity that is duly registered in the Registry kept for such purposes by the Superintendence, new codes will be incorporated into the above table using the following procedure:
a) The PFA will notify the Superintendence and the Standards Committee of the Central Bank that it will carry out financial operations with a new institution, detailing the following:
i. Name of the institution; and
ii. Characteristic of the operation to be carried out.
b) Additionally, the PFA will request the Superintendence to assign the corresponding code and denomination. c) The Financial Regulation Management of the Central Bank, once the notification from the Superintendence is received, will proceed to compile the Manual with the new assigned codes, publish it on the Central Bank's website, and communicate it to the PFAs via a Circular signed by the Secretary of the Standards Committee of the Central Bank.

d) The Financial Regulation Management of the Central Bank will inform about the incorporations to the Standards Committee of the Central Bank in the Session following the publication of the added modifications.

ACCOUNTING RECORDS AND ARCHIVES

7.1 Recording, archiving, accounting and legal documentation of accounting books
The movement and balance of accounts will be recorded in the main books and the sub-accounts in auxiliary books as deemed necessary. The main books that must be legalized are those indicated by the Commercial Code. Accounting records must comply with what is established in Title II, of Book Two, of the Commercial Code, insofar as applicable.

7.2 Financial Statements
The economic and accounting period will comprise from January 1 to December 31 of each year.
PFAs must prepare Financial Statements on March 31, June 30, September 30, and December 31 of each year, which must contain the financial statements, the trial balance, and their auxiliaries, reflecting the accounting movements of the PFA. PFAs must prepare and maintain the necessary auxiliaries that allow adequate information, taking the necessary precautions to be in a position to generate all financial and analytical reports at any time. A copy of the balance files must remain at the entity, available to the Superintendence.

7.3 Presentation and Publication of Financial Statements

The basic financial statements of PFAs are: The Balance Sheet, Statement of Results, Statement of Changes in Equity, Statement of Cash Flows, and the Notes to the Financial Statements, which are the only valid ones for all purposes, whether for approval by the General Shareholders' Meeting, inclusion in the annual report, publication referred to in Article 46 of the Law, or for any other type of dissemination in the country or abroad.

PFAs must hire the services of an Independent External Audit to examine their financial statements, in accordance with the Technical Standards for the Registration of External Auditors of Members of the Financial System (NRP-16) and the Technical Standards for the Provision of External Audit Services (NRP-18) approved by the Central Bank through its Standards Committee. The basic financial statements of the PFA must contain the signatures of the general accountant, the general manager or financial director, or whoever acts on their behalf, and the President or legal representative of the PFA. (6) The signatures must be identified regarding the persons to whom they belong and their corresponding positions, considering that they imply the declaration that the information contained in the signed documents has been extracted from the legal and auxiliary books of the entity and verified for accuracy and integrity. In addition to the above, quarterly financial statements must be signed by the external auditor. Financial statements must be published with the following frequency and deadlines:
Period Maximum Publication Deadline
June 30 Within 30 calendar days following the indicated date December 31 Within 60 calendar days following the indicated date

Additionally, the external auditor's report for each period, and the opinion referred to as of December 31 of each year, as established in Article 46 of the Law, must be published along with the financial statements and their notes.

7.4 Annual Report
The closing financial statements of the economic and management period of the PFA must be included in the annual report to be presented at the General Shareholders' Meeting for approval, taking into account the following procedures:
a) The Board of Directors of each PFA must annually prepare the report, to submit it to the General Shareholders' Meeting for approval, within sixty days following the close of the fiscal year. b) The report must be available to shareholders along with supporting documents, at least ten days prior to the holding of the General Shareholders' Meeting. c) In addition to what is stated in the Commercial Code, the report must contain the external auditor's opinion on the financial statements. d) The report must be presented in such a way as to clearly reflect the financial and administrative situation of the PFA, as well as the results obtained in the past, present, and its projections according to the entity's experience, making a summary evaluation of each of the most important sections, so that it allows the shareholder to have a clear image of the management carried out by the PFA. e) The content of the report will be analyzed by the Superintendence after its approval. For this purpose, PFAs will submit it within the deadline provided in letter a) of this section.

7.5 Presentation of Financial Statements to the Superintendence

PFAs must present to the Superintendence their financial statements and those of the administered fund, duly approved, in the formats, deadlines, periodicity, and under the aggregation standards established in this Manual. The financial statements presented to the Superintendence must be considered and approved as follows:
a) those referring to the end of each quarter, by the Board of Directors of the PFA; and b) those referring to December 31, by the Ordinary General Shareholders' Meeting in the first meeting held after its presentation, attaching the certification of the minutes of said meeting. In case of observations, these must be reported immediately to the Superintendence. The trial balance to be presented to the Superintendence must contain the balances at the level of the accounts included in the Account Catalog according to what is established in this Manual, including additional analytical accounts and their movements. PFAs will present their financial statements and information to the Superintendence, comparative, with the frequency and deadlines detailed below:
Financial Information
Frequency
Monthly Quarterly Semi-annual

Annual
Verification Check Balance X
General Balance Sheet X
Income Statement X
Statement of Changes in Equity X
Statement of Cash Flows X
Notes to Financial Statements X
External Auditor's Interim Report X X
External Auditor's Opinion X

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-11/2022
NSP-42
ACCOUNTING MANUAL FOR PENSION FUND ADMINISTRATORS Approval: 30/12/2022 Validity: 01/03/2023 The submission to the Superintendencia of the aforementioned financial information will be made according to the following deadlines:

Information	Maximum Submission Deadlines
Monthly	Within the first 7 business days of the following month. (6) Quarterly (With report)

CHAPTER II
ACCOUNT CATALOG
The Account Catalog to be used is presented in the Annex of this Accounting Manual, which details the codes and descriptions.

CHAPTER III
ACCOUNTING APPLICATIONS MANUAL
FOR PENSION FUND ADMINISTRATORS

CLASS: 100.00 ASSET
DESCRIPTION:
Represents the assets and rights acquired by the company for the conduct of its activities, including returns from investments made, cash available in local and foreign bank accounts and cash on hand.

CATEGORY: 110.00 AVAILABLE FUNDS
DESCRIPTION:
Comprises the cash held by the entity in cash, balances available in local and foreign banks, immediate collectible effects, repo operations, and restricted available funds.

ACCOUNT: 111.00 CASH
DESCRIPTION:
Represents the existence of legal tender and foreign currency banknotes and coins held by the entity in the cash registers of its offices and agencies. SUBACCOUNTS:
111.01 Petty cash
111.02 General cash
111.02.M.01 Banknotes and coins

DEBITED:

For the receipt of cash in legal tender and/or foreign currency.
For cash overages.
For exchange rate differences.

CREDITED:

For remittances of cash in legal tender and/or foreign currency to the bank and/or financial institution.
For cash shortages.
For exchange rate differences.

Checks or other payment instruments shall not be included in the balance of this account; these must be recorded in account 114.00 Immediate Collectible Effects. Periodic verifications of cash balances must be conducted through cash counts (arqueos), which must be recorded in minutes signed by the custodians and the official performing the count. Differences must be accounted for in accounts 136.04 Cash Shortages or 224.03 Cash Overages, as applicable. The handling of petty cash funds must be subject to the AFP's policies, where the responsibility for said cash, amount, maximum payment amount, and periodic cash counts must be defined, regardless of the fund replenishment period.

ACCOUNT: 112.00 DOMESTIC BANKS
DESCRIPTION:
Represents deposits in checking, savings, and time accounts, in legal tender and/or foreign currency, held by the entity in domestic banking institutions.

SUBACCOUNTS:
112.01 Deposits in checking accounts
112.02 Deposits in savings accounts
112.03 Time deposits
The subaccounts will record the currency type in the sixth digit (represented by the letter M) and the following digits from the seventh will identify the entities of the Financial System, as determined in Chapter I Coding Structure of this Manual. Bank account balances must be subject to monthly reconciliation with their respective statements; any differences, as well as pending correspondence items, must be regularized within a period not exceeding thirty (30) days for domestic operations and sixty (60) days for foreign operations. For the presentation of financial statements, the debit balance will be shown in the assets. Credit balances constituted by overdrafts in checking accounts will be shown in the liabilities.

DEBITED:

For deposits made in cash or its equivalent.
For income from fund transfers.
For received credit notes.

CREDITED:

For drawn checks.
For withdrawals made in cash or its equivalent.
For received debit notes.
For expenses from fund transfers.

ACCOUNT: 113.00 FOREIGN BANKS AND FINANCIAL INSTITUTIONS DESCRIPTION:
Represents deposits in foreign currency held by the entity in foreign banking and/or financial institutions, represented in legal tender at the average exchange rate reported by the Central Reserve Bank (BCR).

SUBACCOUNTS:
113.01 Deposits in checking accounts
113.02 Deposits in savings accounts
113.03 Time deposits

Transactions conducted through online communication means must be recorded on the same day they occur, backed by corresponding documentation within the timeframes established with foreign institutions. Bank account balances must be subject to monthly reconciliation with their respective statements; any differences, as well as pending correspondence items, must be regularized within a period not exceeding sixty (60) days for foreign operations. For the presentation of financial statements, the debit balance will be shown in the assets. Credit balances constituted by overdrafts in checking accounts will be shown in the liabilities.

DEBITED:

For deposits made in cash or its equivalent.
For income from fund transfers.
For received credit notes.
For exchange rate differences.

CREDITED:

For issued checks or drafts.
For withdrawals made in cash or its equivalent.
For received debit notes.
For expenses from fund transfers.
For exchange rate differences.

ACCOUNT: 114.00 IMMEDIATE COLLECTIBLE EFFECTS

DESCRIPTION:
Represents the amount of checks and payment orders received by the entity from banks and other financial institutions in the country or abroad.

SUBACCOUNTS:
114.01 Checks
114.02 Payment orders
The receipt of checks and payment orders must be exclusively through operations inherent to the entity; consequently, exchanging these documents using the entity's cash is not permitted.

The collection periods for checks and payment orders are:
a. Drawn domestically: the next business day. b. Drawn on funds abroad: maximum period of thirty (30) days. Online communication cases are excepted, where collection will be immediate, upon notice of account credit. Exceeded timeframes must be documented. A monthly detail of the items constituting the account balance must be prepared, containing at minimum: date of receipt, document number, responsible institution, transaction concept, and amounts. Rejected checks must be reclassified to the corresponding receivable account.

DEBITED:

For the value of received checks.
For the value of received payment orders.

CREDITED:

For remittances of checks to bank accounts.
For remittances of payment orders to bank accounts.
For reclassifications of rejected checks to receivables.

ACCOUNT: 115.00 REPO OPERATIONS

DESCRIPTION:
Represents the value of rights acquired through repo operations.

SUBACCOUNTS:
115.01 Securities issued by the Central Government – DGT
115.02 Securities issued by the Central Reserve Bank of El Salvador
115.03 Securities issued by state-owned companies and Autonomous Official Institutions
115.04 Securities issued or guaranteed by Banks
115.05 Securities issued by national companies
115.06 Investment Fund Participation Certificates
115.07 Securities issued by foreign entities

115.08 Securities issued by Other Authorized Institutions of the Country (4)
115.09 Securities issued by Salvadoran Securitization Companies (4)

DEBITED:

For the acquisition value of repos.

CREDITED:

For the settlement of repo operations.

ACCOUNT: 116.00 OTHER AUTHORIZED INSTITUTIONS OF THE COUNTRY DESCRIPTION:
Represents deposits in checking, savings, and time accounts, in legal tender and/or foreign currency, held by the entity in financial institutions authorized to capture public deposits, other than private and state banks of the country.

SUBACCOUNTS:
116.01 Deposits in checking accounts
116.02 Deposits in savings accounts
116.03 Time deposits
The subaccounts will record the currency type in the sixth digit (represented by the letter M) and the following digits from the seventh will identify the entities of the Financial System, as determined in Chapter I Coding Structure of this Manual. Balances deposited in these institutions must be subject to monthly reconciliation with their respective statements; any differences, as well as pending correspondence items, must be regularized within a period not exceeding thirty (30) days for domestic operations and sixty (60) days for foreign operations. For the presentation of financial statements, the debit balance will be shown in the assets. Credit balances constituted by overdrafts in checking accounts will be shown in the liabilities.

DEBITED:

For deposits made in cash or its equivalent.
For income from fund transfers.
For received credit notes.

CREDITED:

For drawn checks.
For withdrawals made in cash or its equivalent.
For received debit notes.
For expenses from fund transfers.

ACCOUNT: 118.00 RESTRICTED AVAILABLE FUNDS
DESCRIPTION:
Represents bank deposits or deposits made with other financial institutions, over which the company cannot exercise immediate availability, whether due to contractual effects, administrative or judicial orders, or other mandatory restrictive provisions, in order to meet the requirements of its operational activities. To determine immediate availability, this account must be subtracted.

SUBACCOUNTS:
118.01 Restricted bank deposits
118.99 Other restricted availabilities

DEBITED:

For the imposition of funds as collateral.
For the establishment of restricted bank deposits.

CREDITED:

For the release of collateral funds and their reclassification or disposal.
For the release of restricted bank deposits, their reclassification or disposal.

CATEGORY: 120.00 FINANCIAL INVESTMENTS

DESCRIPTION:
Groups the acquisition of securities that the AFP acquires with its own resources. The cost of these investments will be equal to the acquisition value, including transaction costs such as brokerage fees, commissions, and other expenses related to the purchase. These investments may be acquired with the primary purpose of generating a gain from short-term market price fluctuations; to be traded or held available for sale; as well as those held with the intention and ability to hold them until maturity. Such investments must be classified as stated in International Accounting Standards.

The valuation of these investments must be performed, at minimum, at the end of each month.

ACCOUNT: 121.00 TRADABLE INVESTMENTS

DESCRIPTION:
Represents the acquisition of securities intended for trading.

SUBACCOUNTS:
121.01 Securities issued by the Central Government – DGT
121.01.M.01 LETEs
121.01.M.02 Eurobonds
121.01.M.99 Others (4)
121.02 Securities issued by the Central Reserve Bank of El Salvador
121.02.M.01 Cenelis
121.02.M.02 Bonds
121.02.M.99 Others (4)
121.03 Securities issued by state-owned companies and Autonomous Official Institutions
121.03.M.01 Bonds
121.03.M.02 Investment certificates
121.03.M.03 Stock market paper (4)
121.03.M.99 Others (4)
121.04 Securities issued or guaranteed by Banks
121.04.M.01 Shares
121.04.M.02 Investment certificates
121.04.M.03 Stock market paper (4)
121.04.M.04 Negotiable deposit certificates (4) 121.04.M.99 Others (4)
121.05 Securities issued by national companies
121.05.M.01 Shares
121.05.M.02 Investment certificates
121.05.M.03 Stock market paper (4)
121.05.M.99 Others (4)
121.06 Certificates or participation quotas of Investment Funds
121.06.M.01 Certificates or participation quotas
121.07 Funds placed in individual portfolio administration
121.08 Securities issued by foreign entities
121.08.M.01 Fixed income
121.08.M.02 Variable income
121.08.M.03 Mutual funds
121.08.M.04 Derivatives

121.08.M.99 Others (4)
121.09 Securities issued by Other Authorized Institutions of the Country (4)
121.09.M.01 Shares (4)
121.09.M.02 Investment certificates (4)
121.09.M.03 Stock market paper (4)
121.09.M.04 Negotiable deposit certificates (4) 121.09.M.99 Others (4)
121.10 Securities issued by Salvadoran Securitization Companies (4)
121.10.M.01 Shares (4)
121.10.M.02 Securitization values (4)

DYNAMICS:
Also applicable to accounts 121.00, 122.00, and 123.00.

DEBITED:

For the acquisition value of the securities.

CREDITED:

For the sale of the securities.
For the settlement of investments considered irrecoverable.
For the value corresponding to capital amortization, in matured coupons, for securities that pay capital under this modality.

ACCOUNT: 122.00 INVESTMENTS AVAILABLE FOR SALE

DESCRIPTION:
Represents the acquisition of securities that will be held available for sale.

SUBACCOUNTS:
122.01 Securities issued by the Central Government – DGT
122.02 Securities issued by the Central Reserve Bank of El Salvador
122.03 Securities issued by state-owned companies and Autonomous Official Institutions
122.04 Securities issued or guaranteed by Banks
122.05 Securities issued by national companies
122.06 Certificates or participation quotas of Investment Funds
122.07 Funds placed in individual portfolio administration
122.08 Securities issued by foreign entities
122.09 Securities issued by Other Authorized Institutions of the Country (4)
122.10 Securities issued by Salvadoran Securitization Companies (4)

Analytical accounts must record the detail of these investments by instrument type, in the same manner as the analytical accounts of account 121.00 have been presented.

ACCOUNT: 123.00 INVESTMENTS TO BE HELD UNTIL MATURITY

DESCRIPTION:
Represents the acquisition of securities that will be held until their maturity.

SUBACCOUNTS:
123.01 Securities issued by the Central Government – DGT
123.02 Securities issued by the Central Reserve Bank of El Salvador
123.03 Securities issued by state-owned companies and Autonomous Official Institutions
123.04 Securities issued or guaranteed by Banks
123.05 Securities issued by national companies
123.06 Certificates or participation quotas of Investment Funds
123.07 Funds placed in individual portfolio administration
123.08 Securities issued by foreign entities
123.09 Securities issued by Other Authorized Institutions of the Country (4)
123.10 Securities issued by Salvadoran Securitization Companies (4)

Analytical accounts must record the detail of these investments by instrument type, in the same manner as the analytical accounts of account 121.00 have been presented.

The registration in subaccounts 123.04 Securities issued or guaranteed by Banks and 123.09 Securities issued by Other Authorized Institutions of the Country is excepted regarding Negotiable Deposit Certificates (CDN), as these securities, due to their characteristics, will not be held until maturity. (4)

ACCOUNT: 129.00 PROVISION FOR INVESTMENT VALUATION

DESCRIPTION:
Records the accumulated provision constituted by the entity, in order to cover the devaluation or irrecoverability of short-term securities investments, due to the reduction of their market value.

SUBACCOUNT:
129.01 Provision for tradable investments
129.02 Provision for investments available for sale

129.03 Provision for investments held until maturity

DEBITED:

For the reversal of excessive or undue provisions.
For the reversal of the provision when securities with constituted reserves are sold.
For the reversal of the provision when doubtful collectability investments are recovered.
For the settlement of investments considered irrecoverable.

CREDITED:

For the constitution of the provision due to reduction in market value.
For the constitution of the provision for losses in investments, in irrecoverable securities.

CATEGORY: 130.00 ACCOUNTS AND DOCUMENTS RECEIVABLE

DESCRIPTION:
Comprises the rights to collect related to the activities of the Administrators.
Accounts and documents receivable must be analyzed at least quarterly, in order to establish their recoverability. Accounts with ages greater than sixty days after their maturity and not yet collected, as well as those determined as irrecoverable, will be reclassified as doubtful collection accounts and corresponding provisions will be constituted. For adequate presentation in the balance sheet, the balance of this category will be shown net of account 139.00 Provision for Accounts and Documents Receivable.

ACCOUNT: 131.00 ACCOUNTS RECEIVABLE FROM FUND ADMINISTRATION

DESCRIPTION:
Represents pending collection accounts for commissions and interest on fund administration services, which originate from outstanding balances of employers and/or collectors.

SUBACCOUNTS:
131.01 Accounts receivable from employers
131.01.M.01 Commissions
131.01.M.02 Late interest

131.01.M.03 Shortfalls
131.02 Accounts receivable from collectors
131.03 Accounts receivable from arrears
131.04 Accounts receivable from the Pension Fund
131.04.M.01 Commissions receivable on CIAP
131.04.M.02 Commissions receivable on inactive CIAP 131.04.M.03 Late interest 131.04.M.04 Commissions receivable on pension payment 131.04.M.05 Commissions receivable on special CIAP 131.04.M.06 Other accounts receivable from the Pension Fund 131.04.M.07 Commissions receivable on arrears 131.04.M.08 Commissions payable to the AFP for administration of CIAP of Salvadorans not residing in the country
131.05 Accounts receivable from FAPV
131.05.M.01 Commissions for administration of FAPV

DEBITED:

For the amount of shortfalls and late interest from payroll, unremitted funds from employers and/or collectors paid to the Pension Fund by the AFP.
For the payment made by the AFP for pensions, refunds of overpayments to employers, arrears, transfers, or other concepts in favor of third parties, when operational problems, internal or external procedures, or other causes cause delays in the payment of the operation within the Pension Fund.
For the reclassification of accounts receivable considered doubtful to the respective doubtful collection accounts, once the initial conditions for their transfer are resolved, according to the provisions established by the Central Bank.
For the provision of commissions and late interest, belonging to the AFP, according to the credits made from collected contributions or inactive accounts, net of advances received.
For the amounts placed by the AFP in the Pension Fund due to shortfalls in arrears payments, not covered by other AFPs or Institutions of the Public Pension System.
For commissions pending collection from FAPV.

CREDITED:

For credits or payments received from employers and collectors.
For the transfer of accounts and documents receivable considered doubtful to the respective doubtful collection account.
For the recovery of pension payments, overpayments, arrears, transfers

or other operations when the liquidation process in the Pension Fund is finalized and this has been initially covered by the AFP.

For payments received from the Pension Fund, for commissions and/or late interest.
For collections made to other AFPs or Institutions of the Public Pension System on the amounts placed in the Pension Fund due to payment deficiencies from arrears.
For collections of commissions received from FAPVs

ACCOUNT: 132.00 ACCOUNTS AND DOCUMENTS RECEIVABLE FROM OWN OPERATIONS DESCRIPTION:
Represents the rights to collect generated from own operations carried out by the AFP, different from those generated by the administration of the Fund. SUBACCOUNT:
132.01 Accounts and documents receivable from own operations
DEBITED:

For the amount to be collected from own operations.
For the reclassification of doubtful collection accounts to accounts and documents receivable, when the initial conditions for their transfer are resolved.

CREDITED:

For the deposits or payments received for accounts and documents receivable from own operations.
For the transfer of accounts and documents receivable considered doubtful to the respective account.

ACCOUNT: 133.00 RELATED ACCOUNTS AND DOCUMENTS RECEIVABLE DESCRIPTION:
Represents the collection rights from operations that the AFP has carried out with companies with which it is related, in accordance with what is established in the Law and provisions issued by the Central Bank. SUBACCOUNT:
133.01 Related accounts and documents receivable

DEBITED:

For the amount of the entity's rights with related parties.
For the reclassification of doubtful collection accounts to accounts and documents receivable, when the initial conditions for their transfer are resolved.
CREDITED:
For the deposits or payments received by the entity from related parties.
For the transfer of accounts and documents receivable considered doubtful to the respective account.

ACCOUNT: 134.00 ACCOUNTS RECEIVABLE FROM INSURANCE COMPANIES DESCRIPTION:
Represents the AFP's collection rights for the payment made of disability pensions to affiliates and/or beneficiaries, the amounts of supplementary capitals in accordance with article 158 of the Law, and/or special contributions placed by the AFP in the Pension Fund, while pension procedures are managed with the insurance company, the premiums paid in excess, and the bonuses for good experience. SUBACCOUNTS:
134.01 Accounts receivable from Insurance Companies
134.01.M.01 Supplementary capital
134.01.M.02 Special contribution
134.01.M.03 Disability pensions
134.01.M.04 Premiums paid in excess
134.01.M.05 Bonuses for good experience
134.01.M.06 Collective insurance advances
134.01.M.07 Commissions paid by Maximum IBC

DEBITED:

For the payments made by the AFP to temporary pension beneficiaries in process with the insurance company.
For the right that the AFP has to exercise the claim for supplementary capital and special contribution, paid on behalf of the insurance company to the Pension Fund.

For the reclassification of doubtful collection accounts to the account receivable when the initial conditions for their transfer are resolved, in accordance with the provisions established by the Central Bank.
For the amount of premiums paid in excess when these are recognized.
For bonuses for good experience when these are granted or accrued.

CREDITED:

For the deposits or payments received from insurance companies, as reimbursement of temporary pensions paid to affiliates, supplementary capitals, and special contribution placed by the AFP in the Fund.
For the transfer of accounts and documents receivable considered doubtful to the respective account.
For the refunds of premiums paid in excess and payments received from the Insurance Company as bonuses for good experience.

ACCOUNT: 135.00 TAXES
DESCRIPTION:
Represents the accumulated balance of advance payments of income tax, the deferred tax asset, tax withheld by operations that the entity carries out with third parties, and the VAT tax credit. SUBACCOUNTS:
135.01 Advance payment of income tax
135.02 Income tax withheld by third parties
135.03 Deferred income tax asset
135.04 Tax Credit - VAT
DEBITED:

For the amount of advance payments of income tax, made by the AFP.
For the amount of deferred income tax, calculated on deductible temporary differences.
For the amount of withholdings made by third parties as income tax.
For the amount of payments made as VAT Tax Credit in the purchase of goods and/or services applicable.
CREDITED:

For the settlement of the balance at the end of the corresponding accounting year for the calculation of the tax payable for the year by the entity.
For the amount of reversals or settlements of deferred income tax, calculated on deductible temporary differences.
For adjustments or settlements for other circumstances established by the administration.
For the settlement of balances against the VAT Fiscal Liability account, at the monthly close for the determination of the tax to be paid.
For the collection of unliquidated excess tax credits.
At the level of analytical accounts, the amounts of payments made in each of the declarations presented to the General Directorate of Internal Taxes must be recorded historically for the control of the advance payment of income tax. For the purposes of deferred income tax, auxiliary controls must be established, in which the assets that originated the temporary differences are identified, detailing their book value, tax basis, the calculated tax, and the accumulated value in accounting. Additionally, AFPs must establish necessary analytical auxiliary controls historically where income tax withholdings are maintained.

ACCOUNT: 136.00 OTHER ACCOUNTS AND DOCUMENTS RECEIVABLE

DESCRIPTION:
Represents the various pending collection rights derived from other activities carried out by the AFP, established in the corresponding subaccounts. SUBACCOUNTS:
136.01 Loans to officials and employees
136.02 Salary advances to staff
136.03 Claims for damages from accidents
136.04 Cash shortages
136.05 Rejected checks
136.06 Advances to agents' commissions
136.06.M.01 Advances for affiliations
136.06.M.02 Advances for transfers
136.07 Advances to suppliers
136.08 Shareholders
136.09 Commissions for FAPV commercialization
136.09.M.01 Commissions for FAPV commercialization

DEBITED:

For the constitution of a pending collection right for any of the concepts contained in the subaccounts.
For the reclassification of doubtful collection accounts to other accounts and documents receivable, when the initial conditions for their transfer are resolved.

CREDITED:

For the partial or total recoveries of each classification.
For the transfer of accounts receivable considered doubtful to the respective account.

ACCOUNT: 137.00 DOUBTFUL COLLECTION ACCOUNTS RECEIVABLE DESCRIPTION:
Represents the amounts reclassified from different accounts receivable, which according to their particular conditions of age or recoverability, are considered doubtful collection. The balances of these accounts will not include interest or other products accumulated in results and which are pending collection; these must be reversed against the results of the year, and registered in control accounts.

SUBACCOUNTS:
137.01 Accounts receivable from employers
137.01.M.01 Commissions
137.01.M.02 Late interest
137.01.M.03 Deficiencies
137.02 Accounts receivable from collectors
137.03 Accounts receivable from arrears
137.04 Accounts receivable from own operations
137.05 Accounts receivable with related parties
137.06 Accounts receivable from Insurance Companies
137.99 Other accounts receivable
The analytical accounts will establish the debtors, documents, and age thereof.
DEBITED:

For the constitution of a pending collection right for any of the concepts contained in the subaccounts.

For the transfer of the value of accounts and documents receivable classified as doubtful collection.
CREDITED:
For the cash recovery of accounts and documents receivable of doubtful collection.
For the write-off of accounts receivable of doubtful recovery considered irrecoverable against the corresponding provision or results.
For the reclassification of accounts and documents receivable of doubtful recovery to the respective current accounts receivable when the initial conditions for their reclassification have been resolved.

ACCOUNT: 138.00 YIELDS RECEIVABLE
DESCRIPTION:
Represents the accrued yields pending collection generated by bank deposits, accounts and documents receivable, and the yields generated by investments. SUBACCOUNTS:
138.01 From deposits in domestic banks
138.02 From deposits in foreign banks and financial institutions
138.03 From restricted available funds
138.04 From financial investments
138.05 Yields from accounts and documents receivable from own operations
138.06 Yields from accounts and documents receivable with related parties
138.07 Yields from other accounts and documents receivable
138.08 Yields receivable from permanent investments in Fund quotas
138.09 Yields receivable from Special Guarantee Contribution
138.10 From deposits in other authorized institutions in the country
The yields from accounts and documents receivable from the date they are considered doubtful collection must be registered in control accounts, in account 719.05 Yields from accounts and documents receivable of doubtful collection, reversing from the results the products registered in the period that correspond.

DEBITED:

For the accrued yields pending collection.

For the accrued commissions pending collection.
For the declared dividends pending collection.
For the reversal of accumulated products derived from accounts and documents receivable reclassified to doubtful collection.
CREDITED:
For the collection of yields, commissions, dividends, and others.
For the write-off of yields, interest, commissions, dividends, and others.

ACCOUNT: 139.00 PROVISION FOR ACCOUNTS AND DOCUMENTS RECEIVABLE

DESCRIPTION:
Represents the provision of accounts and documents receivable in accordance with the provisions of this Manual, the administration's criteria on the evaluation of accounts and/or International Accounting Standards.

SUBACCOUNTS:
139.01 Provision for accounts and documents receivable from fund administration
139.02 Provision for accounts and documents receivable from own operations
139.03 Provision for related accounts and documents receivable
139.04 Provision for other accounts and documents receivable
139.05 Provision for accounts receivable from FAPV administration
139.06 Provision for accounts receivable from FAPV commercialization commissions.

DEBITED:

For the partial or total collection of accounts for which provisions for risk of uncollectibility have been constituted.
For the write-off of accounts classified as uncollectible.
For the reversal of provisions that are excessive or undue.
CREDITED:
For the constitution and increases of provisions for accounts considered doubtful collection.

ITEM: 140.00 PREPAID EXPENSES

DESCRIPTION:

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-11/2022
NSP-42
ACCOUNTING MANUAL FOR PENSION FUND ADMINISTRATORS Approval: 30/12/2022 Validity: 01/03/2023 Comprises various expenses paid in advance for the acquisition of goods or services, which will be used or compensated at a date subsequent to the end of the year and are directly related to the entity's activity. Includes rents and insurance paid in advance, premiums for bonds, office supplies and stationery, subscriptions paid in advance, advertising and marketing.

ACCOUNT: 141.00 PREPAID EXPENSES
DESCRIPTION:
Represents the expenses paid in advance by the entity, for the acquisition of goods or services that will be used or compensated at a date subsequent to their acquisition. SUBACCOUNTS:
141.01 Rents paid in advance
141.02 Insurance paid in advance
141.03 Premiums for bonds
141.03.M.01 Premiums for bonds to back AEG
141.04 Office supplies and stationery
141.05 Subscriptions paid in advance
141.06 Advertising and marketing
141.99 Other prepaid expenses
DEBITED:

For the value of expenditures that will be amortized to results in subsequent periods.

CREDITED:

For the amortization of items or quotas to income accounts.

ITEM: 150.00 SPECIAL GUARANTEE CONTRIBUTION
DESCRIPTION:
Comprises investments made by the AFP in Fund quotas with mandatory character. These quotas must be acquired by the AFP to back the minimum profitability of the Fund administered and will be equivalent to the percentage established by the Law in relation to the Assets of the same, calculated on the average of the fifteen days prior to the date of calculation. The yields obtained from the Special Guarantee Contribution are determined in a manner similar to the procedure used for Individual Savings Accounts for Pensions.

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-11/2022
NSP-42
ACCOUNTING MANUAL FOR PENSION FUND ADMINISTRATORS Approval: 30/12/2022 Validity: 01/03/2023 It should be noted that the amount invested in the Special Guarantee Contribution is not guaranteed minimum profitability according to what is provided in article 77 of the Law.

ACCOUNT: 151.00 SPECIAL GUARANTEE CONTRIBUTION

DESCRIPTION:
This account records the amount invested mandatorily by the AFP as Special Guarantee Contribution and the yield obtained from it. These amounts are represented by Quotas of the Pension Fund and constituted in accordance with article 77 of the Law, and what is regulated for such effect. Also, this account records the deficiency of the Special Guarantee Contribution when it does not cover the equivalent to the percentage established by the Law in relation to the Equity of the Pension Fund that it administers.

SUBACCOUNTS:
151.01 Special guarantee contribution
151.01.M.01 Principal
151.01.M.02 Yield
151.02 Special guarantee contribution to be paid to the Fund
DEBITED:

For the transfer of cash to constitute the Special Guarantee Contribution.
For the recording of the yields determined in the Pension Fund.
For the transfer of balances from the Voluntary Quotas account of the Pension Fund to cover deficiencies with respect to the amount required by the Law.
For the recording of the amount necessary to cover the required Special Guarantee Contribution.
CREDITED:
For the value transferred to cover the Fund's profitability deficits.
For the transfer of balances to the Voluntary Quotas account of the Pension Fund when excesses are registered with respect to the amount required by the Law
For the recording of the decrease due to the adjustment of the quota valuation.
For the coverage of the Special Guarantee Contribution deficiency.

ITEM: 160.00 PERMANENT INVESTMENTS IN FUND QUOTAS

DESCRIPTION:
Comprises investments in Fund quotas acquired by the entity with the purpose of holding them in the long term and obtaining yields.

ACCOUNT: 161.00 PERMANENT INVESTMENTS IN FUND QUOTAS DESCRIPTION:
Represents the investments made by the AFP in quotas of the administered Pension Fund, with the purpose of holding them in the long term and with the object of obtaining yields.

SUBACCOUNTS:
161.01 Voluntary investments in fund quotas
161.01.M.01 Principal
161.01.M.02 Yield
DEBITED:

For the transfer of cash to invest in Fund quotas.
For the transfer received from the Special Guarantee Contribution when it presents an excess with respect to the minimum required.
For the recording of increases due to profitability.
CREDITED:
For the recording of the decrease in profitability.
For the transfer made to the Special Guarantee Contribution when it presents a deficiency with respect to the minimum required.
For the withdrawals that are made from the Fund quotas.
For the transfers to Equity to cover deficiencies in collections, errors committed in the recording of operations within the Pension Fund, and any other reduction according to AFP policies.
Any withdrawal of Fund quotas made by the AFP must comply with the requirements that the Central Bank establishes in the corresponding provisions.

ITEM: 170.00 PROPERTY, PLANT AND EQUIPMENT

DESCRIPTION:
Comprises the tangible properties used by the company for the development of its activities. It presents as a characteristic a relatively long useful life, is not the subject of routine transfer operations, and is subject to depreciation recording, except for land and works of art, when it is determined that they do not suffer a deterioration in their market value.

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-11/2022
NSP-42
ACCOUNTING MANUAL FOR PENSION FUND ADMINISTRATORS Approval: 30/12/2022 Validity: 01/03/2023 An element of property, plant and equipment must be recognized as an asset when: a) it is probable that the company will obtain future economic benefits derived from it; and b) the cost of the asset to the company can be measured with sufficient reliability. When these conditions are met, the element must be measured, initially by its cost. Goods received under financial leases are registered in this account, and depreciation must be calculated and accumulated on these assets. The amortization of the debt, financial charges, and other expenses related to the contract in the relevant accounts, must be subject to activation. Under no circumstances can repairs, replacements, and other maintenance expenses that do not significantly extend the life of the assets or substantially modify the form and conditions of use of the goods be activated. Nevertheless, important spare parts and replacement equipment meet the conditions to be qualified as elements of property, plant and equipment, as long as the company expects to use them for more than one period. Goods with a useful life equal to or less than one year and those whose value is not considered of relative importance cannot be accounted for as assets; these will be applied directly to results and whose inventory can be registered in control accounts. The criteria must be defined in writing in the administration's policies. When the component parts of an asset have different useful lives, or when they provide economic benefits following different patterns, it may be appropriate to distribute the total investment among its parts, so they may need different depreciation methods and rates. Revaluations performed are registered in these accounts, which must also calculate and accumulate the corresponding depreciation. Impairment losses on property, plant, and equipment must be accounted for, whenever the book value of the asset in question is greater than its recoverable amount. This loss must be treated as a charge in the statement of results, if the assets in question are accounted for at their acquisition price, and as a decrease in revaluation surplus accounts, if the asset is accounted for at its revalued value. Analytical accounts must keep control of the increase or impairment of each of the elements that make up the property, plant, and equipment.

ACCOUNT: 171.00 LAND
DESCRIPTION:
Represents the value of the land of the entity's different real estate properties.
SUBACCOUNT:
171.01 Land

DYNAMICS:
Applicable to accounts 171.00, 172.00, 173.00, and 174.00.

SE DEBITA:

By the acquisition cost of the goods.
By improvements and capitalizable expenses that extend the useful life of the assets or increase the value of the goods.
By the revaluation of the goods.
SE CREDITED:
By the total or partial cost of goods withdrawn or transferred.
By the cost of the asset at the time of sale, withdrawal due to damage, or depletion.
By the reduction to market value below book value, of goods that have been affected by extraordinary events.

ACCOUNT: 172.00 BUILDINGS AND INSTALLATIONS
DESCRIPTION:
Represents the value of buildings and installations intended for the development of the entity's activities. It includes the conditioning and equipment of the premises.

SUBACCOUNTS:
172.01 Buildings
172.02 Installations

ACCOUNT: 173.00 FURNITURE AND EQUIPMENT
DESCRIPTION:
Represents the furniture and equipment to be used in the operations performed by the entity.

SUBACCOUNTS:
173.01 Office furniture
173.02 Computer equipment
173.03 Other office equipment
173.04 Works of art
173.99 Other furniture and equipment
Works of art may not be subject to depreciation, when the AFP determines that these do not suffer a deterioration in their market value.

ACCOUNT: 174.00 TRANSPORT EQUIPMENT
DESCRIPTION:
Represents the value of transport equipment owned by the entity intended for the development of its activities.

SUBACCOUNTS:
174.01 Vehicles
174.99 Other transport equipment

The valuation of goods will proceed by appraisals conducted by independent experts, authorized by the Superintendency, through Technical Standards issued by the Central Bank on this subject. In the case of revaluations, as a prior requirement for registration, a copy of the project will be sent to the Superintendency for authorization. In the case of impairment, losses will simply be recognized when the book value is greater than its recoverable amount. When a revaluation is recorded, the value of the revaluation must be established in independent analytical accounts of the cost, and through additional historical controls, establish the dates on which such revaluations were effective. Appraisals conducted for works of art will not produce a accounting revaluation. AFPs must conduct selective inventories on capitalized property, plant, and equipment at least once a year, establishing the coverage of the developed procedure. At the same time, the company must evaluate at each balance sheet closing date if there is any indication of impairment of the value of its assets.

ACCOUNT: 175.00 ASSETS RECEIVED UNDER FINANCIAL LEASE

DESCRIPTION:
Represents the goods received under financial lease, to be used by the entity in the development of its activities.

SUBACCOUNTS:
175.01 Real estate received under financial lease
175.02 Office furniture and equipment received under financial lease
175.03 Transport equipment received under financial lease
175.99 Other goods received under financial lease

SE DEBITA:

By the contract amount of the goods received under financial lease.
By the value of the revaluation they have suffered.

SE ACREDITA:

By the reclassification to the respective property, plant, and equipment account, at the end of the financial lease contract and/or the definitive acquisition of the asset before the termination of the contract.
By the balances of assets reclassified as out-of-use goods.
In the case of revaluations, the same conditions established for other asset accounts will apply.

ACCOUNT: 176.00 WORKS IN PROGRESS

DESCRIPTION:
Represents the value of works in progress under construction, conditioning, or equipment on movable or immovable property owned by the entity. The goods included in this account are not depreciated.

SUBACCOUNT:
176.01 Works in progress

SE DEBITA:

By the costs of construction, conditioning, or equipment.
By the capitalization of interest on loans related to the construction processes of the works or conditioning of premises.

SE ACREDITA:

By the transfer to the corresponding property, plant, and equipment accounts for the value accounted for at the end of the works.
By the withdrawal of accumulated expenses, for closed, suspended, or other construction works that did not allow their completion.

ACCOUNT: 177.00 OTHER USEFUL GOODS

DESCRIPTION:
Represents the value of the library and other goods of the entity, with the exception of works of art.

SUBACCOUNTS:
177.01 Library
177.99 Other useful goods

SE DEBITA:

By the acquisition cost of the useful goods.
By improvements and capitalizable expenses that represent a greater value.
By the revaluation of the goods.

SE ACREDITA:

By the value of the goods withdrawn or transferred.
By the balances of assets reclassified as out-of-use goods.
In the case of revaluations, the same conditions established for other property, plant, and equipment accounts will apply.

ACCOUNT: 178.00 INSTALLATIONS AND IMPROVEMENTS IN RENTED PROPERTIES

DESCRIPTION:
Represents the value of installations and improvements in properties rented by the entity, intended for the development of the company's activities.

SUBACCOUNTS:
178.01 Installations and improvements in rented properties

SE DEBITA:

By the installations, improvements, and capitalizable expenses in properties rented.

SE ACREDITA:

By the cost of the goods withdrawn or written off.
By the balances of assets reclassified as out-of-use goods.
In the case of revaluations, the same conditions established for other property, plant, and equipment accounts will apply.

ACCOUNT: 179.00 ACCUMULATED DEPRECIATION

DESCRIPTION:
Represents the value of accumulated depreciation on the different elements of property, plant, and equipment subject to depreciation, as well as the impairment suffered by the assets, due to use, obsolescence, etc.

SUBACCOUNTS:
179.01 Buildings
179.02 Installations
179.03 Office furniture
179.04 Computer equipment
179.05 Vehicles
179.06 Real estate received under financial lease
179.07 Furniture and equipment received under financial lease
179.08 Transport equipment received under financial lease
179.09 Other goods received under financial lease
179.10 Library
179.11 Installations and improvements in rented properties
179.99 Others

SE DEBITA:

By the balances of assets withdrawn by sale or depletion.
By reversals in excess of depreciation or impairment calculations of the assets.
By the balances of assets reclassified as out-of-use goods.

SE ACREDITA:

By charges to results for the expense of depreciation of the corresponding property, plant, and equipment.
By supplementary charges resulting from the accelerated depletion of property, plant, and equipment, due to obsolescence, impairment, or damage.

The amounts of accumulated depreciation on revalued goods will be accounted for in analytical accounts, establishing the additional controls necessary to determine the net balance of the revaluation, which may be verified by the Superintendency when deemed appropriate.

ITEM: 180.00 OTHER ASSETS

DESCRIPTION:
Comprises the amount of goods received in payment, intangible assets acquired by the entity, security deposits, as well as other assets within the scope of their operations.

ACCOUNT: 182.00 GOODS RECEIVED IN PAYMENT

DESCRIPTION:
Represents the amount of goods received in payment or adjudicated in compensation for the AFP's rights.

SUBACCOUNTS:
182.01 Real estate received in payment
182.02 Movable goods received in payment
182.08 Provision for real estate received in payment
182.09 Provision for movable goods received in payment

Movable or immovable goods received in payment will be recorded in the corresponding accounts through an appraisal, with the exception of those assigned by judicial means. When the value of the acquired assets according to the appraisal exceeds the amount of the debt, the excess will not be cancelled to the debtor of the receivable account until the asset has been realized, or acquired for use by the AFP. The period for these assets to be realized will be a maximum of one year, which may be extended with the authorization of the Superintendency. AFPs may transfer the received-in-payment property to property, plant, and equipment for the use of the entity by decision of the Board of Directors, prior to the corresponding appraisal and authorization of the Superintendency.

A reserve equivalent to 25% will be established when possessing three months of age within the AFP's assets, 50% with six months of age, 75% with nine months, and 100% when it reaches 1 year. These reserves may be subject to modification when, due to appraisal effects, it is established that the book value is less than the adjudication value established at the time of their constitution. Such appraisal must be conducted one month before the closing of the AFP's economic year, when the asset has at least three months of age within the Fund's assets. The exception is considered when the AFP has a firm offer on the realization of the asset in the month immediately preceding the closing of the economic year. AFPs that possess assets with an age greater than one year will proceed to auction them through Public Auction, establishing as a base value an equivalent to two-thirds of their adjudication value, a process that must begin one month after the stated deadline. If the auction is declared void, a specific procedure will be established with the Superintendency. AFPs that contravene this provision will be subject to the fines determined by the Superintendency.

SE DEBITA:

By the incorporation value of the goods received in payment.
By the costs incurred in the improvement of the goods received in payment for their sale.

SE ACREDITA:

By the value accounted for when written off, transferred to property, plant, and equipment for the use of the entity, or sold.
By the loss of value, according to indications of asset impairment, at the end of the year, or when there is an indication of such loss of value.

ACCOUNT: 183.00 INTANGIBLE ASSETS

DESCRIPTION:
Represents the rights acquired by the entity in the form of computer programs, licenses, trademarks, patents, commercial goodwill, and other intangible nature assets.

SUBACCOUNTS:
183.01 Computer programs
183.02 Licenses
183.03 Trademarks and patents
183.04 Commercial goodwill
183.99 Other intangible assets

SE DEBITA:

By the acquisition, development, maintenance, improvement, and revaluations of intangible resources.

SE ACREDITA:

By the amortization, value adjustment, sale, or liquidation of the intangible asset.

The initial measurement of an intangible asset must be made by its historical cost of acquisition or production. Amortization must begin as soon as the asset is available for the use to which it is destined. Each AFP must create the corresponding analytical accounts to determine the acquisition cost and its amortization, separately. This does not exempt from maintaining additional controls on each of the existing analytical accounts.

ACCOUNT: 189.00 OTHER ASSETS

DESCRIPTION:
Represents the balance of other operations performed by the AFP that are not considered in the previous accounts and do not constitute period expenses, while a probable contingency is not established on such situations. Also, security deposits paid to private or public companies, within the scope of their operations, which will be recovered at the time the relationship, service, or other conditions defined by contract end, will be recorded within the subaccount.

SUBACCOUNTS:
189.01 Other assets
189.02 Security deposits

SE DEBITA:

By the amount of applications or transactions performed by the entity that do not correspond to those defined in the previous accounts.
By the security deposits paid to private or public companies.

SE ACREDITA:

By the cancellation, liquidation against expenses, or cleanup of the situations established for each operation after its initial registration.
By the recovery of the security deposit.
By the liquidation of the security deposit when determining its irrecoverability.

Balances must be controlled through auxiliary records that allow determining the nature or origin of the transactions that have taken place, in order to be able to integrate them at any time.

CLASS: 200.00 LIABILITY

DESCRIPTION:
Represents the entity's obligations and taxes payable acquired by the activities performed in the course of its operations.

ITEM: 210.00 OBLIGATIONS WITH FINANCIAL INSTITUTIONS

DESCRIPTION:
Comprises the financing obtained by the entity, in the form of short-term obligations contracted with local and/or foreign banking and financial institutions, under the modality of direct credits and credit lines.

ACCOUNT: 211.00 OBLIGATIONS WITH DOMESTIC BANKS

DESCRIPTION:
Represents short-term obligations and the current portion of long-term debts with domestic banks. It includes the corresponding accrued charges payable.

SUBACCOUNTS:
211.01 Overdrafts
211.02 Loans payable
211.03 Current portion of long-term loans payable
211.99 Other obligations

SE DEBITA:

By the amortizations and cancellation of obligations from credits received.
By the cancellation of overdrafts.

SE ACREDITA:

By the amounts of financing and credits contracted.
By the overdrafts in the current accounts that the entity maintains in banks.
By the reclassification of the current portion of the capital of long-term loans.

ACCOUNT: 212.00 OBLIGATIONS WITH FOREIGN BANKS AND FINANCIAL INSTITUTIONS

DESCRIPTION:
Represents short-term obligations with foreign banks and financial institutions. It includes the corresponding accrued charges payable.

SUBACCOUNTS:
212.01 Overdrafts
212.02 Loans payable
212.03 Current portion of long-term loans payable
212.99 Other obligations

SE DEBITA:

By the amortizations and cancellation of obligations from credits received.
By the cancellation of overdrafts.

SE ACREDITA:

By the amounts of financing and credits contracted.
By the overdrafts in the current accounts that the entity maintains in banks.
By the reclassification of the current portion of the principal of long-term loans.

ITEM: 220.00 ACCOUNTS AND DOCUMENTS PAYABLE

DESCRIPTION:
Comprises the obligations and debts originating from the AFP's own operations, and those from fund administration. It also includes dividends, remuneration, accounts and documents payable related, and accumulated expenses payable for obligations and other accounts and documents payable.

ACCOUNT: 221.00 OBLIGATIONS FROM OWN OPERATIONS

DESCRIPTION:
Represents the obligations originating from the operations within the scope of the entity's business. Obligations from financing obtained through financial lease operations are also recorded.

SUBACCOUNTS:
221.01 Suppliers
221.02 Obligations with third parties
221.02.M.01 Loans payable
221.02.M.02 Service commissions
221.03 Obligations from financial leases
221.04 Obligations with shareholders
221.05 Obligations from security deposits
221.06 Obligations with insurance companies
221.99 Other obligations from own operations

SE DEBITA:

By the payment of obligations with shareholders and third parties.
By the payment of obligations from security deposits.
By the paid installments of financial lease operations.
By the payment of premiums to insurance companies.

SE ACREDITA:

By the accounting of obligations originating with suppliers, third parties, shareholders, security deposits, and insurance companies.
By the installments generated by received financial lease operations.

ACCOUNT: 222.00 OBLIGATIONS FROM FUND ADMINISTRATION

DESCRIPTION:
Represents the obligations derived from fund administration, by members' claims, obligations from the Special Guarantee Contribution, originating from the insufficiency not covered by the Administrator in the Fund according to legal provisions, and claims on behalf of members to insurance companies for supplementary capital in accordance with Article 158 of the Law and special contribution. It also includes obligations from returns of incentives for permanence.

SUBACCOUNTS:
222.01 Obligations with members
222.01.M.01 Members' claims
222.01.M.02 Obligation with members for supplementary capital 222.01.M.03 Obligation with members for special contribution
222.02 Obligations with employers
222.03 Obligations with insurance companies
222.04 Obligations from Special Guarantee Contribution to be refunded
222.05 Obligations from returns of incentives for permanence
222.06 Obligations with collection companies
222.07 Obligations from technical studies for benefit processing
222.08 Obligations with correspondence delivery companies
222.09 Obligations with data processing companies
222.10 Obligations from FAPV commercialization
222.99 Other obligations from fund administration

SE DEBITA:

By the payments of obligations from members' claims, employers, collectors, insurance companies, and benefit payments.
By the payments of obligations from the Special Guarantee Contribution.
By the payments of returns of incentives for permanence.
By the payments made to companies and natural persons in charge of technical studies for pension processing, correspondence delivery, data processors, and others.
By the payments to FAPV marketers.

SE ACREDITA:

By the accounting of obligations originating from members' claims, employers, collectors, insurance companies, and benefit payments.
By the accounting of the obligation of the Special Guarantee Contribution established in deficiency.
By the accounting of the obligation from returns of incentives for permanence.
By the accounting of services received from companies and natural persons in charge of technical studies for pension processing, correspondence delivery, data processors, and others.
By the accounting of obligations with FAPV marketers.

ACCOUNT: 223.00 DIVIDENDS AND REMUNERATIONS

DESCRIPTION:
Represents the entity's obligations with its shareholders, staff, and directors.

SUBACCOUNTS:
223.01 Dividends payable
223.02 Vacation pay
223.03 Remunerations payable
223.04 Honoraria payable
223.05 Commissions payable to Pension Service Agents
223.05.M.01 Commissions from affiliations
223.05.M.02 Commissions from transfers
223.05.M.03 Commissions from other operations
223.06 Per diems payable
223.99 Other obligations from dividends and remunerations

SE DEBITA:

By the cancellation of dividends, vacations, remunerations, commissions, per diems, and other obligations.

SE ACREDITA:

By the agreed dividends.
By the remunerations payable.
By the rentals and services payable.
By the commissions payable to pension service agents.
By the per diems payable.
By other payable obligations derived from dividends and remunerations.

ACCOUNT: 224.00 OTHER ACCOUNTS AND DOCUMENTS PAYABLE

DESCRIPTION:
Represents accounts and documents payable that cannot be accounted for in the previous accounts and are related to the activities performed by the entity.

SUBACCOUNTS:
224.01 Rentals payable
224.02 Services payable
224.03 Cash overages

SE DEBITA:

By the payments of rentals and services.
By the liquidation of cash overages.

SE ACREDITA:

By the rentals and services payable.

For cash surpluses.

ACCOUNT: 225.00 ACCOUNTS AND DOCUMENTS PAYABLE TO RELATED PARTIES DESCRIPTION:
Represents the entity's obligations to related parties, whether by participation or administration. SUBACCOUNT:
225.01 Accounts and documents payable to related parties
DEBITED:

For payments of obligations to related parties.

CREDITED:

For obligations to related parties.
Pension Fund Administrators (AFP) must establish controls for obligations with related entities, which allow determining the nature, maturity, and credit conditions of said obligations. These controls may be examined by the Superintendence, when it deems necessary.

ACCOUNT: 228.00 INTEREST AND COMMISSIONS PAYABLE

DESCRIPTION:
Represents expenses pending payment in the concept of interest and commissions originated by financial obligations, with third parties, and accounts payable of the entity.

SUBACCOUNTS:
228.01 Obligations with banks in the country
228.02 Obligations with banks and financial institutions abroad
228.03 Accounts and documents payable for own operations
228.04 Obligations for fund administration
228.05 Dividends and remuneration
228.06 Other accounts and documents payable
228.07 Accounts and documents payable to related parties
228.08 Accounts payable for contracted insurance
228.09 Taxes and contributions on own account

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-11/2022
NSP-42
ACCOUNTING MANUAL FOR PENSION FUND ADMINISTRATORS Approval: 30/12/2022 Validity: 01/03/2023
228.10 Taxes and contributions withheld
228.11 Other taxes and contributions
228.12 Obligations with banks in the country for the long term
228.13 Obligations with banks and financial institutions abroad for the long term
228.14 Obligations with other Institutions in the country for the long term
228.15 Obligations with other Institutions abroad for the long term

DEBITED:

For payments of expenses originated by obligations and by accounts and
documents receivable.

CREDITED:

For the accounting of expenses payable originated by obligations,
accounts and documents payable.

ITEM: 230.00 OBLIGATIONS FOR TAXES AND CONTRIBUTIONS DESCRIPTION:
Represents obligations arising from taxes, contributions, and other levies in favor of State Institutions and those that the entity withholds, as responsible and agent for withholding and collection of taxes.

ACCOUNT: 231.00 TAXES AND CONTRIBUTIONS ON OWN ACCOUNT

DESCRIPTION:
Represents the entity's obligations arising from taxes, contributions, and other levies in favor of State, Autonomous, and other Institutions. SUBACCOUNTS:
231.01 Current income tax
231.02 Municipal taxes
231.03 Social security
231.04 Pension Fund Administrators
231.05 Commercial licenses
231.06 Fiscal debit – VAT
231.07 VAT payable
231.08 Deferred income tax liability
231.09 Special contribution for the citizen security plan-Large
Taxpayers

DEBITED:

For payment of taxes, contributions, and other levies on own account.
For the amount of reversals or settlements of deferred income tax,
calculated on taxable temporary differences.
For payment of contributions for own institutional contracts or plans of FAPV.

CREDITED:

For taxes, contributions, and other levies on own account payable.
For the amount of deferred income tax, calculated on taxable
temporary differences.
For contributions for own institutional contracts or plans of FAPV.
For the purposes of deferred income tax, auxiliary controls must be established, in which the assets that originated the temporary differences are identified, detailing their book value, tax basis, the calculated tax, and the accumulated value in the accounting.

ACCOUNT: 232.00 WITHHELD TAXES AND CONTRIBUTIONS

DESCRIPTION:
Represents the obligations on the entity for the withholding it carries out of taxes, contributions, and other levies on employees, officials, shareholders, creditors, or others, in favor of State Institutions or others. SUBACCOUNTS:
232.01 Income tax
232.02 Social security
232.03 Pension Fund Administrators
232.04 Road tax
232.05 Other withholdings on personnel
232.06 VAT withheld from third parties
232.99 Other withheld taxes and contributions
DEBITED:

For payment of withheld taxes and contributions.
For payment of contributions in individual plans in FAPV.

For withheld taxes and contributions payable to third parties.
For the value of contributions withheld from employees for individual plans in
FAPV.

ACCOUNT: 233.00 CONTRIBUTIONS PAYABLE FOR AUDIT RIGHTS DESCRIPTION:
Represents the obligation arising from audit rights that the AFP contributes in compliance with legal provisions to the Superintendence.

SUBACCOUNT:
233.01 Contributions payable for audit rights

DEBITED:

For payment of audit rights.
CREDITED:
For contributions payable for audit rights.

ITEM: 240.00 LOANS AND LONG-TERM OBLIGATIONS
DESCRIPTION:
Comprises financings obtained in the long term, contracted with banking and financial institutions, local and abroad, under the modality of direct credits and lines of credit.

ACCOUNT: 241.00 OBLIGATIONS WITH BANKS IN THE COUNTRY

DESCRIPTION:
Represents long-term obligations with banks and financial institutions in the country.
SUBACCOUNTS:
241.01 Loans payable
241.99 Other long-term obligations

For amortizations and cancellation of obligations for credits received.
For reclassification of the current portion of loans payable.

CREDITED:

For the amounts of financings and credits contracted.
For credit notes and/or deposits received.

ACCOUNT: 242.00 OBLIGATIONS WITH BANKS AND FINANCIAL INSTITUTIONS ABROAD DESCRIPTION:
Represents long-term obligations with banks or other financial entities from abroad.
SUBACCOUNTS:
242.01 Loans payable
242.99 Other long-term obligations
DEBITED:

For amortizations and cancellation of obligations for credits received.
For reclassification of the current portion of loans payable.

CREDITED:

For the amounts of financings and credits contracted.
For credit notes and/or deposits received.

ACCOUNT: 243.00 OBLIGATIONS WITH OTHER INSTITUTIONS IN THE COUNTRY

DESCRIPTION:
Represents long-term obligations with institutions in the country other than banks.

SUBACCOUNTS:
243.01 Loans payable
243.99 Other long-term obligations

For amortizations and cancellation of obligations for credits received.
For reclassification of the current portion of loans payable.
CREDITED:
For the amounts of financings and credits contracted.
For credit notes and/or deposits received.

ACCOUNT: 244.00 OBLIGATIONS WITH OTHER INSTITUTIONS ABROAD DESCRIPTION:
Represents long-term obligations with institutions abroad other than banks or financial institutions.

SUBACCOUNTS:
244.01 Loans payable
244.99 Other long-term obligations
DEBITED:

For amortizations and cancellation of obligations for credits received.
For reclassification of the current portion of loans payable.
CREDITED:
For the amounts of financings and credits contracted.
For credit notes and/or deposits received.

ITEM: 250.00 PROVISIONS

DESCRIPTION:
Comprises obligations with personnel, referred to compensation for time of service and retirement, as well as provisions for contingencies and commitments that the entity constitutes affecting the result of the period, but whose payment or settlement will be effectuated in the current or following periods.

ACCOUNT: 251.00 PROVISION FOR LABOR OBLIGATIONS

DESCRIPTION:
Represents the provision for labor obligations whose payment or settlement will be

SUBACCOUNT:
251.01 Provision for labor obligations

DYNAMICS:
Applicable to accounts: 251.00, 252.00, and 253.00.
DEBITED:

For the decrease in provisions at the close of the accounting period.
For the settlement of social benefits and labor obligations.
For advances granted for social benefits.
CREDITED:
For the constitution of the corresponding provisions in the period for
concept of social benefits and labor obligations.
For the constitution of provisions for concept of contingencies and
commitments.

ACCOUNT: 252.00 PROVISION FOR CONTINGENCIES
DESCRIPTION:
Represents the provision to cover possible losses originated by contingencies, litigations, or lawsuits against the entity and other contingent situations. Whenever it can be reasonably quantified, that it is more likely than remote, and that it is documented.

SUBACCOUNT:
252.01 Provision for contingencies

ACCOUNT: 253.00 PROVISION FOR COMMITMENTS

DESCRIPTION:
Represents the provision for possible losses originated by commitments that the entity has contracted for the administration of funds or other operations originated from its course of business. Whenever it can be reasonably quantified, that it is more likely than remote and that it is documented.

ITEM: 260.00 OTHER LIABILITIES
DESCRIPTION:
Comprises those deferred incomes whose realization will be effectuated in the current period or in following periods.

ACCOUNT: 261.00 DEFERRED INCOME
DESCRIPTION:
Represents income that, without having been earned, has been received by the entity, so its realization will be effectuated in the current period or in following periods. It also comprises the fiscal debit for the tax on the transfer of goods and provision of services.

SUBACCOUNTS:
261.01 Income from own operations deferred
261.02 Gain from sale of goods deferred
261.99 Other deferred income
DEBITED:

For the application to results of the income earned in the accounting period.
CREDITED:
For the recording of income received but not earned in the results of the
period.

CLASS: 300.00 EQUITY

DESCRIPTION:
Represents the participation of the owners in the asset of the entity, and comprises the accumulation of contributions from shareholders, including the capitalizations of profits, surpluses, and others, with permanent character, represented by nominal shares duly subscribed; as well as capital reserves, revaluation, and accumulated results.

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-11/2022
NSP-42
ACCOUNTING MANUAL FOR PENSION FUND ADMINISTRATORS Approval: 30/12/2022 Validity: 01/03/2023 ITEM: 310.00 SHARE CAPITAL DESCRIPTION:
Share capital is represented by paid-up subscribed capital and unpaid subscribed capital.
The paid-up capital constitutes the accumulation of contributions from shareholders, including the capitalizations of profits, surpluses, and others, with permanent character, represented by nominal shares duly subscribed.

ACCOUNT: 311.00 SHARE CAPITAL

DESCRIPTION:
Represents paid-up subscribed shares and unpaid subscribed shares.

SUBACCOUNTS:
311.01 Paid-up subscribed capital
311.02 Unpaid subscribed capital
DEBITED:

For the reclassification of unpaid subscribed share capital to paid-up, at the moment
of receiving the cash or in-kind contribution from shareholders.
For the reduction of capital duly authorized by the respective instances.
CREDITED:
For the amount of initial subscribed capital and subsequent contributions.
For payments made of subscribed capital.
For the capitalization of profits.
For the constitution and capitalization of reserves.
For the capitalization of obligations and others.
The presentation in the financial statements will reflect the balance of paid-up subscribed share capital, deducting the accounts receivable corresponding to unpaid subscribed share capital.

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-11/2022
NSP-42
ACCOUNTING MANUAL FOR PENSION FUND ADMINISTRATORS Approval: 30/12/2022 Validity: 01/03/2023 ITEM: 330.00 CAPITAL RESERVES DESCRIPTION:
Comprises mandatory legal reserves and voluntary reserves constituted with accumulated profits for specific purposes.

ACCOUNT: 331.00 LEGAL RESERVE
DESCRIPTION:
Represents the reserve constituted on profits in accordance with what is established by legal provisions, and the premium paid in the sale of AFP shares when capital increases occur, and the price is fixed by the General Shareholders' Meeting. SUBACCOUNT:
331.01 Legal reserve

DEBITED:

For the application of reserves to cover accumulated losses.

CREDITED:

For the constitution of the legal reserve through reductions of profits,
according to what is established in the Commercial Code.
For the premium paid in the sale of AFP shares.

ACCOUNT: 332.00 STATUTORY RESERVES
DESCRIPTION:
Represents the reserve constituted on profits of the period or accumulated in accordance with what is established in the bylaws of the company or other provisions. SUBACCOUNT:
332.01 Statutory reserves

DEBITED:

For the application of reserves against accumulated losses.
For the capitalization of statutory reserves.
For the withdrawal or disposal of constituted reserves.

For the constitution of the reserve through reduction of accumulated profits.

ACCOUNT: 333.00 VOLUNTARY RESERVES

DESCRIPTION:
Represents reserves voluntarily constituted by the AFP on profits by agreement of the General Shareholders' Meeting. SUBACCOUNT:
333.01 Voluntary reserves
DEBITED:

For the application of reserves to accumulated losses.
For the capitalization of voluntary reserves.
For the withdrawal or disposal of constituted reserves.
CREDITED:
For the constitution of the voluntary reserve.

ITEM: 340.00 REVALUATION
DESCRIPTION:
Comprises gains or losses from revaluation of the net value assigned to property, plant, and equipment of the entity, as well as the amount of changes in the fair value of financial investments available for sale, in cases where such gains or losses should not pass through income statements, in accordance with the provisions of Law and the norms issued by the Central Bank.

ACCOUNT: 341.00 REVALUATION OF ASSETS

DESCRIPTION:
Represents the net result of the revaluation of real and personal property determined in accordance with legal provisions.

SUBACCOUNTS:
341.01 Revaluation of real estate
341.02 Revaluation of personal property

For the transfer of the realized portion in the sale of revalued assets, to
accumulated profits.
For loss due to impairment of a revalued asset.

CREDITED:

For the net value determined as excess over the cost of properties,
plant, and equipment by revaluation.
When a case arises that a Revalued Asset has suffered an impairment loss, this will be recognized as a charge against the Revaluation Surplus; to the extent that it does not exceed the amount of the same. The part that exceeds the previously revalued amount, will be recognized as a charge in the expense.

ACCOUNT: 342.00 VALUATION OF FINANCIAL INVESTMENTS

DESCRIPTION:
Represents the change in fair value of financial investments that must be recognized as a change in net equity. SUBACCOUNT:
342.01 Financial investments available for sale.
In analytical accounts, the detail of these investments by type of issuer and instrument must be registered, in a similar way to the detail of account 121.00.

DEBITED:

In case of sale, for the accumulated benefits up to that date.
For the decrease experienced by investments due to changes in
fair value, which have not gone to expense accounts.
CREDITED:
For the increase in investments due to changes in the
fair value, which have not gone to income accounts.
In case of sale, for the accumulated losses up to that date.

ITEM: 380.00 ACCUMULATED RESULTS

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-11/2022
NSP-42
ACCOUNTING MANUAL FOR PENSION FUND ADMINISTRATORS Approval: 30/12/2022 Validity: 01/03/2023 DESCRIPTION:
Comprises the accumulated results of the period that have not been distributed or applied, such as undistributed profits and/or accumulated losses.

ACCOUNT: 381.00 ACCUMULATED PROFIT
DESCRIPTION:
Represents profits from previous periods pending application, classified as distributable and non-distributable.

SUBACCOUNTS:
381.01 Distributable profits
381.02 Non-distributable profits

DEBITED:

For the application of accumulated profits to dividends to distribute.
For the release of non-distributable profits to profits to apply.
For the application of accumulated losses against accumulated profits of
previous periods, by agreement of the General Shareholders' Meeting.
For the capitalization of profits by agreement of the General Shareholders'
Meeting.
Adjustments for applications of fundamental errors and accounting changes.

CREDITED:

For the recording of profits of the period, applied to distributable profits and
the non-distributable ones.
For the application of revaluations made in previous periods by their sale or
liquidation.
Adjustments for applications of fundamental errors and accounting changes.

ACCOUNT: 382.00 ACCUMULATED LOSS
DESCRIPTION:
Represents the accumulated loss of the reporting period that has not been absorbed.
SUBACCOUNT:
382.01 Accumulated loss

For losses of the period applied to accumulated losses.
Adjustments for applications of fundamental errors and accounting changes.

CREDITED:

For the reduction of the accumulated loss through application to results or
reserves, by agreement of the General Shareholders' Meeting.
Adjustments for applications of fundamental errors and accounting changes.

ITEM: 390.00 RESULT OF THE PERIOD
DESCRIPTION:
Comprises the result obtained by the entity at the end of the accounting period or at the end of the period, which arises from the income statement, upon liquidating the debtor and creditor balances of the result accounts.

ACCOUNT: 391.00 PROFIT OF THE PERIOD
DESCRIPTION:
Represents the net profit of the period or of the period that arises from the income statement.

SUBACCOUNT:
391.01 Profit of the period

DYNAMICS:
Applicable to accounts 391.00 and 392.00.
DEBITED:

For the loss of the period.
For the transfer of the profit of the period to accumulated results at the start
of the following period.
For the debtor balances at the close of the period of the result accounts
grouped under items 400.00.
For the determination of dividends in the General Shareholders' Meeting.
For the capitalization of accumulated profits.

For the transfer of the losses of the period to accumulated results at the start
of the following period.
For the profit of the period that arises from the income statement.
For the creditor balances at the close of the period of the result accounts
grouped under items 500.

ACCOUNT: 392.00 LOSS OF THE PERIOD

DESCRIPTION:
Represents the net loss of the period.

SUBACCOUNT:
392.01 Loss of the period

CLASS: 400.00 EXPENDITURES
DESCRIPTION:
Groups the accounts destined for the recording of expenses necessary for the normal performance of the functions of an AFP, such as operating expenses, personnel and administrative expenses, financial expenses, depreciation, amortizations, asset devaluation, expenses for uncollectibility, and devaluation of investments, other expenses, expenses from previous periods, extraordinary expenses, and income tax.

RUBRO: 410.00 EXPENSES FOR PENSION FUND ADMINISTRATION DESCRIPTION:
Comprises expenses incurred during the period arising from fund administration activities; as well as, the return of commissions made by the entity in favor of affiliates for incentives for permanence, and various operational and/or management expenses related to the entity's activities, which are recorded regardless of the payment date and method.

ACCOUNT: 411.00 OPERATING EXPENSES FOR FUND ADMINISTRATION

DESCRIPTION:
Represents expenses derived from management, related to fund administration service operations.

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-11/2022
NSP-42
ACCOUNTING MANUAL FOR PENSION FUND ADMINISTRATORS Approval: 30/12/2022 Validity: 01/03/2023 SUBACCOUNTS:
411.01 Insurance premiums for coverage of affiliates' risks
411.02 Salaries to Pension Service Agents
411.03 Commissions to Pension Service Agents
411.04 Benefits to Pension Service Agents
411.04.M.01 Christmas bonuses and bonuses
411.04.M.02 Vacations
411.04.M.03 Indemnities
411.04.M.04 Social benefits
411.04.M.05 Insurance
411.04.M.06 Training
411.04.M.07 Per diems
411.04.M.08 Transportation and food
411.04.M.99 Other benefits
411.05 Commissions to Stockbrokerage Firms
411.06 Commissions to Stock Exchanges
411.07 Affiliate claims to the AFP
411.08 Affiliate claims for insurance
411.09 Commissions and expenses for deposit and custody of securities
411.10 Commissions and expenses for collection processes
411.11 Incentive for permanence
411.12 Return of commissions for contract cancellation
411.13 Return of commissions for reversal of crediting processes
411.14 Surcharges for minimum yield coverage
411.15 Correspondence commissions
411.16 Collection commissions
411.16.M.01 Private entities – Administrative and legal collection process
411.17 Wire transfer commissions
411.18 Transfer commissions
411.19 Information processing companies
411.20 Correspondence service
411.21 Socioeconomic studies for beneficiaries
411.22 Examination fees for Pension Service Agents
411.23 Printing services
411.24 Medical expenses
411.25 Losses in the valuation of the special guarantee contribution
411.26 Losses in the valuation of voluntary AFP contributions
411.27 Surcharges for collection operations
411.28 Surcharges for coverage of insufficiencies
411.29 Pension payment services
411.30 Premiums for sureties to back AEG
411.31 Expert appraisals

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-11/2022
NSP-42
ACCOUNTING MANUAL FOR PENSION FUND ADMINISTRATORS Approval: 30/12/2022 Validity: 01/03/2023
411.32 Stationery
411.33 Publications
411.34 Complementary Capital not covered by the Insurance Company
411.35 Services for benefit procedures
411.99 Miscellaneous expenses and operations

DEBITED:

For various operational and/or management expenses related to the fund administration segment.

CREDITED:

For reversals and adjustments specific to the accounting period.

Records in Subaccount 411.01 Insurance premiums for coverage of affiliates' risks may continue to be made only to recognize remaining insurance balances from accrued amounts corresponding to non-prescribed insurance policies.

RUBRO: 420.00 PERSONNEL AND ADMINISTRATIVE EXPENSES

DESCRIPTION:
Comprises expenses incurred, provisions made, and others recorded on an accumulated basis, such as personnel expenses, board expenses, services received from third parties, insurance expenses, taxes and contributions, and various management charges.

ACCOUNT: 421.00 PERSONNEL EXPENSES
DESCRIPTION:
Represents expenses incurred in favor of personnel, in the concept of labor benefits or others. SUBACCOUNTS:
421.01 Personnel salaries
421.02 Overtime
421.03 Christmas bonuses and bonuses
421.04 Vacations
421.05 Uniforms
421.06 Training
421.07 Social benefits

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-11/2022
NSP-42
ACCOUNTING MANUAL FOR PENSION FUND ADMINISTRATORS Approval: 30/12/2022 Validity: 01/03/2023
421.08 Insurance for personnel
421.09 Indemnities
421.10 Per diems
421.11 Transportation and food
421.12 Professional fees
421.13 Representation expenses
421.14 Administrative personnel commissions
421.99 Other personnel benefits

DEBITED:

For the gross amount of remuneration in favor of personnel and for the total amount of accrued contributions borne by the company that fall on said remuneration.
For estimates of expenses accrued in the accounting period.
For contributions by contracts or institutional FAPV plans.
CREDITED:
For reversals and adjustments of the accounting period.

ACCOUNT: 422.00 BOARD EXPENSES

DESCRIPTION:
Represents expenses incurred by the board of directors.
SUBACCOUNTS:
422.01 Allowances
422.02 Entertainment and representation
422.99 Other board expenses
DEBITED:

For the amount of expenses for the various concepts incurred by the board.

CREDITED:

For reversals and adjustments of the accounting period.

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-11/2022
NSP-42
ACCOUNTING MANUAL FOR PENSION FUND ADMINISTRATORS Approval: 30/12/2022 Validity: 01/03/2023 ACCOUNT: 423.00 GENERAL EXPENSES DESCRIPTION:
Represents expenses generated by services received from natural and legal persons external to the entity.

SUBACCOUNTS:
423.01 Information processing
423.02 Collection services
423.03 Microfilming and archiving
423.04 Information technology
423.05 Surveillance and protection
423.06 Transportation
423.07 Printing services
423.08 Real estate leases
423.09 Furniture leases
423.10 Professional fees
423.11 Electricity and water
423.12 Communication services
423.13 External audit
423.14 Legal advice
423.15 Advertising
423.16 Stationery and office supplies
423.17 Cleaning and fumigation
423.18 Office maintenance
423.19 Vehicle maintenance
423.20 Furniture and equipment maintenance
423.21 Maintenance of leased movable property
423.22 Maintenance of leased real estate
423.23 Cleaning materials and supplies
423.24 Per diems
423.25 Subscriptions
423.26 Fuels and lubricants
423.27 Certifications
423.28 Correspondence services
423.29 Office materials and supplies
423.30 Other services and advice
423.31 Trademarks and patents
423.32 Real estate maintenance
423.99 Other general expenses

For the amount of expenses for the various services received.

CREDITED:

For reversals and adjustments of the accounting period.
ACCOUNT: 424.00 EXPENSES FOR INSURANCE
DESCRIPTION:
Represents expenses generated by the payment of insurance premiums contracted for coverage of the AFP's risks. SUBACCOUNTS:
424.01 On money and valuables
424.02 For property, plant and equipment
424.03 Fidelity
424.99 Other insurance

DEBITED:

For the amount of charges for received insurance.

CREDITED:

For reversals or adjustments of the accounting period.

ACCOUNT: 425.00 TAXES AND CONTRIBUTIONS

DESCRIPTION:
Represents expenses generated in the concept of taxes and contributions in favor of different institutions, in accordance with legal provisions. SUBACCOUNTS:
425.01 Municipal taxes
425.02 Business registrations
425.03 Supervision fees to the Superintendency
425.05 Special contribution for citizen security and coexistence
425.99 Other taxes and contributions

For the amount of taxes and contributions paid and/or accrued.
CREDITED:
For reversals and adjustments of the accounting period.
ACCOUNT: 426.00 MISCELLANEOUS EXPENSES

DESCRIPTION:
Represents expenses for fines and sanctions of the current year; and other miscellaneous expenses. SUBACCOUNTS:
426.01 Fines and sanctions established by the Superintendency
426.02 Other fines and sanctions
426.03 Fines and sanctions imposed by the DGII
426.04 Fines and sanctions imposed by municipalities
426.05 Fines and sanctions imposed by the Commerce Registry
426.99 Other miscellaneous expenses
DEBITED:

For the amount of miscellaneous management expenses paid or accrued by the company.
For the amount of fines and sanctions.

CREDITED:

For reversals and adjustments of the accounting period.
ACCOUNT: 427.00 EXPENSES FOR FAPV SERVICES

DESCRIPTION:
Represents expenses for services to other funds that the AFP has authorization to provide.

SUBACCOUNTS:
427.01 Expenses for FAPV marketing
427.99 Other miscellaneous expenses

For the amount of miscellaneous management expenses paid or accrued by the AFP and that are for the marketing of FAPV

CREDITED:

For reversals and adjustments of the accounting period.
RUBRO: 430.00 FINANCIAL EXPENSES
DESCRIPTION:
Comprises expenses for the period arising from financing obtained from financial institutions; those obtained through financial leasing, as well as expenses arising from own investment operations, interest expenses on accounts and documents payable, and various financial expenses payable that are recorded regardless of the payment date and method.

ACCOUNT: 431.00 EXPENSES FOR OBLIGATIONS WITH FINANCIAL INSTITUTIONS

DESCRIPTION:
Represents financial expenses related to financing obtained from entities that make up the financial system.

SUBACCOUNTS:
431.01 Overdrafts with domestic banks
431.02 Loans contracted with domestic banks
431.03 Credit lines with domestic banks
431.04 Other obligations with domestic banks
431.05 Overdrafts with foreign banks and financial institutions
431.06 Loans contracted with foreign banks and financial institutions
431.07 Credit lines with foreign banks and financial institutions
431.08 Other obligations with foreign banks and financial institutions
DEBITED:

For interest, commissions, and expenses for financing and overdrafts.
For expenses for credit lines.
For expenses for contracted guarantees.

For reversals and adjustments specific to the accounting period.

ACCOUNT: 432.00 EXPENSES FOR ACCOUNTS AND DOCUMENTS PAYABLE DESCRIPTION:
Represents financial expenses such as interest, commissions, and other expenses related to accounts and documents payable derived from the entity's own activities and fund administration.

SUBACCOUNTS:
432.01 Own operations
432.02 Fund administration
432.03 Contracted insurance
432.04 Dividends and remuneration
432.05 Other accounts and documents payable
432.06 Accounts and documents payable related
432.07 Taxes and contributions
DEBITED:

For interest, commissions, and other expenses arising from accounts and documents payable.
CREDITED:
For reversals and adjustments specific to the accounting period.

ACCOUNT: 433.00 EXPENSES FOR ASSETS RECEIVED UNDER FINANCIAL LEASE DESCRIPTION:
Represents financial expenses such as interest, commissions, fees, and other charges derived from obligations under financial leasing that are not capitalizable to the value of the acquired asset. Such expenses are realized.

SUBACCOUNT:
433.01 Expenses for assets received under financial leasing

For expenses arising from financial leasing operations.
CREDITED:
For reversals and adjustments specific to the accounting period.

ACCOUNT: 434.00 FINANCIAL EXPENSES FOR OWN INVESTMENTS

DESCRIPTION:
Represents financial expenses such as commissions, contracts, and other charges derived from obligations for own investments; as well as, losses generated in the transactions of such investments, at the time of purchase or sale. SUBACCOUNTS:
434.01 Commissions for individual portfolio management funds
434.02 Deposits and custody of securities
434.03 Stockbrokerage firms
434.04 Stock exchanges
434.05 Registration and valuation of investments
434.06 Loss on financial investment transactions
DEBITED:

For expenses arising from own investment operations.
For losses incurred in financial investment transactions.
CREDITED:
For reversals and adjustments specific to the accounting period.

ACCOUNT: 438.00 OTHER FINANCIAL EXPENSES
DESCRIPTION:
Represents other financial expenses derived from contracted sureties, contracted guarantees, exchange rate differences, and other financial expenses. SUBACCOUNTS:
438.01 Contracted sureties
438.02 Contracted guarantees
438.03 Exchange rate differential

DEBITED:

For interest, commissions, and expenses for financing and overdrafts obtained from other non-financial local and foreign entities that do not appear in the above categories.
For expenses for contracted sureties.
For expenses for contracted guarantees.
For exchange losses and in the buying and selling of foreign currency.
CREDITED:
For reversals and adjustments specific to the accounting period.

RUBRO: 440.00 DEPRECIATION, AMORTIZATION, AND IMPAIRMENT OF ASSETS DESCRIPTION:
Comprises charges for depreciation, amortization, and devaluation due to obsolescence, disuse, and impairment of assets, mainly property, plant and equipment, and intangibles.

ACCOUNT: 441.00 DEPRECIATION OF PROPERTY, PLANT, AND EQUIPMENT DESCRIPTION:
Represents charges for the depreciation of property, plant, and equipment, at the close of each accounting period.

SUBACCOUNTS:
441.01 Buildings and installations
441.02 Furniture and equipment
441.03 Transport equipment
441.04 Assets taken under financial leasing
441.05 Other assets for diverse use
441.06 Installations and improvements in leased properties
DEBITED:

For the recognition of the depreciation of property, plant, and equipment.

CREDITED:

For reversals and adjustments of the accounting period.

DESCRIPTION:
Represents charges for losses or impairment in the value of assets, such as: property, plant, and equipment, and other assets that have been received in payment and that meet the conditions for impairment, at the close of each accounting period or when the book value exceeds the recoverable value of the same.

SUBACCOUNTS:
443.01 Impairment losses for property, plant, and equipment
443.02 Other assets

DEBITED:

For the charge of the asset's impairment at the close of each accounting period, or when the book value exceeds the asset's value, in which case it must be recognized immediately.

CREDITED:

For reversals and adjustments of the accounting period.

ACCOUNT: 444.00 AMORTIZATION OF INTANGIBLE ASSETS DESCRIPTION:
Represents charges for the amortization of intangible assets acquired by the AFP:
SUBACCOUNTS:
444.01 Computer programs
444.02 Licenses
444.03 Trademarks and patents
444.04 Goodwill
444.99 Other intangible assets
DEBITED:

For the amortization or value adjustment of the intangible asset.

CREDITED:

For the reversal or adjustments to the amortization of the intangible asset.

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-11/2022
NSP-42
ACCOUNTING MANUAL FOR PENSION FUND ADMINISTRATORS Approval: 30/12/2022 Validity: 01/03/2023 RUBRO: 450.00 EXPENSES FOR UNCOLLECTABILITY OF ACCOUNTS AND DOCUMENTS PAYABLE AND DEVALUATION OF INVESTMENTS DESCRIPTION:
Comprises charges for provisions for uncollectability of accounts and documents payable, the devaluation of investments in securities, and the write-off of asset yields.

ACCOUNT: 451.00 EXPENSES FOR UNCOLLECTABILITY FOR ACCOUNTS AND DOCUMENTS PAYABLE DESCRIPTION:
Represents charges for provisions for uncollectability of accounts and documents payable.
SUBACCOUNT:
451.01 Expenses for uncollectability of accounts and documents payable
DEBITED:

For the provision for uncollectability of accounts and documents payable at the close of each accounting period.
CREDITED:
For decreases in the provision resulting from reversals on accounts with reserves established in the accounting year that have been recovered.
For other adjustments of the accounting period.
ACCOUNT: 452.00 EXPENSES FOR DEVALUATION OF INVESTMENTS

DESCRIPTION:
Represents charges for provisions for the loss of value of investments in securities.

SUBACCOUNTS:
452.01 Expenses for devaluation of financial investments
452.02 Expenses for devaluation of permanent investments in Fund quotas
DEBITED:

For the provision for value fluctuation at the close of each accounting period.

For decreases in the provision resulting from reversals on accounts with reserves established in the accounting year that have been recovered.
For other adjustments of the accounting period.
ACCOUNT: 453.00 WRITE-OFF OF ASSET YIELDS

DESCRIPTION:
Represents charges for the write-off of asset yields from the categories of availability, accounts and documents payable, financial investments, and permanent investments in Fund quotas that are considered very difficult to recover at the end of each accounting period. SUBACCOUNTS:
453.01 Available funds
453.02 Financial investments
453.03 Accounts and documents payable
453.04 Permanent investments in Fund quotas
453.99 Other assets
DEBITED:

For the amount of values whose redemption at maturity is not possible to effect.

CREDITED:

For decreases in provisions and/or reversals of reserves established in the accounting year for amounts that have been recovered in the same period.
For other adjustments of the accounting period.

RUBRO: 460.00 OTHER EXPENSES
DESCRIPTION:
Comprises all those expenses that cannot be recorded in the above accounts.

DESCRIPTION:
Represents the value of expenses that are not normally part of the business's operations and cannot be recorded in the above classifications. SUBACCOUNTS:
461.01 Losses on sale of goods
461.02 Losses on sale of shares
461.03 Fiscal credit adjustment – VAT
461.04 Donations and contributions
461.99 Other expenses

DEBITED:

For the recording of the specific expense.

CREDITED:

For the reversal of the expense or its settlement.

RUBRO: 470.00 EXPENSES FROM PRIOR YEARS
DESCRIPTION:
Represents expenses corresponding to prior years, which were not recognized nor subject to estimation and provisioning. ACCOUNT: 471.00 EXPENSES FROM PRIOR YEARS DESCRIPTION:
Represents expenses corresponding to prior years, which were not recognized nor subject to estimation and provisioning. SUBACCOUNTS:
471.01 Operational expenses
471.02 Financial expenses
471.03 Expenses for uncollectability and devaluation of investments
471.04 Depreciation, amortization, and devaluation of property, plant, and equipment
471.05 Impairment of the value of other assets

For the amount of accrued expenses that corresponded to prior years.

CREDITED:

For adjustments in the current accounting period.

RUBRO: 480.00 EXTRAORDINARY EXPENSES
DESCRIPTION:
Comprises atypical and exceptional expenses produced by losses from disasters, thefts, robberies, and fraud, and others related to the AFP's operations. ACCOUNT: 481.00 EXTRAORDINARY EXPENSES DESCRIPTION:
Represents atypical and exceptional expenses produced by losses from disasters, thefts, robberies, and fraud, and others related to the AFP's operations. SUBACCOUNTS:
481.01 Losses from disasters
481.02 Losses from thefts, robberies, and fraud
481.03 Losses from industrial safety accidents
481.05 Losses from Information processes
481.99 Other extraordinary expenses

DEBITED:

For the amount of payments related to responsibility for the physical and health security of employees and clients.
To record expenses arising from failed transactions in the process or handling in Systems, lost documents, damage to client assets, hardware failure, software imperfection, and telecommunications failures.
CREDITED:
For reversals and adjustments of the accounting period.

CATEGORY: 490.00 INCOME TAX
DESCRIPTION:

Comprises the income tax expense for the accounting period, calculated in accordance with its Law and that arising from temporary differences.

ACCOUNT: 491.00 INCOME TAX
DESCRIPTION:
Represents the charges for income tax for the corresponding accounting period.
SUBACCOUNTS:
491.01 Current income tax
491.02 Deferred income tax

DEBITED:

For the amount of current income tax charges, with a credit to account 231.01 Current income tax.
For the amount of deferred income tax charges, calculated on taxable temporary differences.

CREDITED:

For the amount of income tax in the current accounting period, at the end of the fiscal year with a debit to account 391.01 Profit for the year.

ACCOUNT: 492.00 SPECIAL CONTRIBUTIONS BY LAW
DESCRIPTION:
Represents the charges for the special contribution for the citizen security plan-Large Taxpayers for the corresponding accounting period. SUBACCOUNTS:
492.01 Special contribution for the Citizen Security Plan-Large Taxpayers.

DEBITED:

For the amount of the charges for the special contribution for the citizen security plan-Large Taxpayers, with a credit to account 231.09 special contribution for the citizen security plan-Large Taxpayers.

CREDITED:

For the amount of the special contribution for the citizen security plan-Large Taxpayers in the current accounting period, at the end of the fiscal year with a debit to account 391.01 Profit for the year.

CLASS: 500.00 INCOME
DESCRIPTION:
Groups the accounts intended for the recording of income generated by the AFP, in the course of its operations, such as income from administration commissions for the Fund, financial income, from asset recovery and provisions, other income, and income from previous years.

CATEGORY: 510.00 OPERATING INCOME
DESCRIPTION:
Comprises income arising from the administration of funds and from operations in own investments; income from interest and dividend returns will be recorded in the corresponding accounts under the category financial income.

ACCOUNT: 511.00 INCOME FROM COMMISSIONS FOR FUND ADMINISTRATION DESCRIPTION:
Represents income arising from the administration of funds in accordance with what is provided by law. This includes the proportion of interest that the AFP charges in the processes of crediting payroll and surcharges applied to collectors, affiliates, and employers. SUBACCOUNTS:
511.01 Commissions for the administration of individual accounts
511.02 Commissions for the administration of special individual accounts
511.03 Commissions for the administration of pension payments
511.04 Commissions for the administration of inactive accounts
511.05 Commissions to pay the AFP for arrears

511.06 Commissions to pay the AFP for the administration of CIAP of Salvadorans not residing in the country

DEBITED:

For reversals and adjustments at the end of the accounting period.

CREDITED:

For the amounts of income from fund administration.

ACCOUNT: 512.00 RETURN ON THE SPECIAL GUARANTEE CONTRIBUTION

DESCRIPTION:
Represents the return generated by the Special Guarantee Contribution in the administered Pension Fund, which is transferred at the end of each month.

SUBACCOUNT:
512.01 Return on the special guarantee contribution

DEBITED:

For reversals and adjustments at the end of the accounting period.

CREDITED:

For the return obtained on the special guarantee contribution.

ACCOUNT: 513.00 COMMISSIONS FOR FAPV

DESCRIPTION:
Represents the income from commissions obtained from the administration and/or commercialization of FAPV.

SUBACCOUNTS:
513.01 Commissions for the administration of FAPV
513.02 Commissions for the commercialization of FAPV

DEBITED:

For reversals and adjustments at the end of the accounting period.

CREDITED:

For the income obtained from services that the AFP provides regarding the commercialization and administration of FAPV.

CATEGORY: 520.00 FINANCIAL INCOME
DESCRIPTION:
Comprises income from interest arising from the financial activity carried out by the AFP; such as returns on liquidity; accounts and documents receivable; permanent investments and other financial income.

ACCOUNT: 521.00 INCOME FROM LIQUIDITY
DESCRIPTION:
Represents income accrued in the period from interest arising from deposits in banks and/or financial entities. SUBACCOUNT:
521.01 Returns on liquidity

DEBITED:

For reversals and adjustments at the end of the accounting period.

CREDITED:

For the income accrued from returns on liquidity.

ACCOUNT: 522.00 INCOME FROM FINANCIAL INVESTMENTS

DESCRIPTION:
Represents income accrued in the period from returns arising from acquired securities; as well as income from changes in the value of financial investments, which correspond to be reflected in income accounts, and the gains generated in the transactions of said investments, at the time of purchase or sale. SUBACCOUNT:
522.01 Returns on financial investments
522.02 Valuation of financial investments
522.03 Gain on transactions of financial investments

DEBITED:

For reversals and adjustments at the end of the accounting period.

CREDITED:

For the income accrued from the returns on investments.
For the increases in value in the valuation of financial investments.
For the gains occasioned in the transactions of financial investments.

ACCOUNT: 523.00 INCOME FROM ACCOUNTS AND DOCUMENTS RECEIVABLE DESCRIPTION:
Represents income accrued in the period from interest arising from operations included in the category of accounts and documents receivable. SUBACCOUNT:
523.01 Returns on accounts and documents receivable

DEBITED:

For reversals and adjustments at the end of the accounting period.

CREDITED:

For the income accrued from returns on accounts and documents receivable.

ACCOUNT: 528.00 OTHER FINANCIAL INCOME
DESCRIPTION:
Represents income accrued in the period for the concept of exchange differences or other operations, arising from operations carried out in foreign currency.

SUBACCOUNTS:
528.01 Exchange difference
528.99 Other financial income

DEBITED:

For reversals and adjustments at the end of the accounting period.

CREDITED:

For the gain from exchange difference.
For other financial income obtained by the AFP.

CATEGORY: 530.00 OTHER INCOME
DESCRIPTION:
Comprises income derived from voluntary investments in Fund quotas, dividends received from investments in shares, recovery of expenses attributable to the fiscal year, and other income that cannot be incorporated into the previous classifications.

ACCOUNT: 531.00 RETURN FROM VOLUNTARY INVESTMENTS IN FUND QUOTAS

DESCRIPTION:
Represents income accrued in the period from returns on permanent investments in Pension Fund quotas.

SUBACCOUNTS:
531.01 Returns on voluntary investments in Pension Fund quotas.

DEBITED:

For reversals and adjustments at the end of the accounting period.

CREDITED:

For the income accrued from returns on investments in Fund quotas.

ACCOUNT: 532.00 DIVIDENDS

DESCRIPTION:
Represents income from dividends arising from investments in shares of other companies.
SUBACCOUNT:
532.01 Dividends

DEBITED:

For reversals and adjustments at the end of the accounting period.

CREDITED:

For the dividends declared by the companies.

ACCOUNT: 533.00 ASSET RECOVERY

DESCRIPTION:
Represents the year's income from the recovery of assets liquidated in the current fiscal year against the corresponding provision accounts. These include accounts and documents receivable and financial investments that had been liquidated. SUBACCOUNT:
533.01 Asset recovery and provisions

DEBITED:

For reversals and adjustments at the end of the accounting period.

CREDITED:

For the amounts collected corresponding to uncollectible or written-off accounts and documents receivable in previous years.
For the amounts collected corresponding to depreciated investments and returns, written off in previous years.

ACCOUNT: 534.00 OTHER INCOME

DESCRIPTION:
Represents income derived from the recovery of expenses attributable to the fiscal year, as well as other income that cannot be incorporated into the previous classifications.

SUBACCOUNTS:
534.01 Income from recovery of own expenses
534.02 Income from recovery of collection expenses for contributions
534.03 Income from late interest
534.04 Gain from sale of assets
534.05 Gain from sale of shares
534.06 Recovery of surcharges from employer operations

534.07 Recovery of surcharges from collector operations
534.08 Recovery of surcharges from affiliate operations
534.99 Other income

DEBITED:

For reversals and adjustments at the end of the accounting period.

CREDITED:

For the income from the recovery of expenses.
For the gain from the sale of assets.
For the recovery of surcharges.
For other income received by the AFP.

CATEGORY: 540.00 INCOME FROM PREVIOUS YEARS

DESCRIPTION:
Comprises income corresponding to previous years, which were not recognized in a timely manner during the ordinary activities of the AFP.

ACCOUNT: 541.00 INCOME FROM PREVIOUS YEARS

DESCRIPTION:
Represents operating, financial, asset recovery and provision income, other income, and extraordinary income from previous years.

SUBACCOUNTS:
541.01 Operating income
541.02 Financial income
541.03 Income from asset recovery
541.99 Other miscellaneous income

DEBITED:

For reversals and adjustments at the end of the accounting period.

CREDITED:

For the amount of income from miscellaneous concepts from previous years that were not registered in due time.

CATEGORY: 550.00 EXTRAORDINARY INCOME
DESCRIPTION:
Comprises atypical and exceptional income, such as recoveries of losses from accidents and other extraordinary items, that the AFP receives.

ACCOUNT: 551.00 EXTRAORDINARY INCOME

DESCRIPTION:
Represents atypical and exceptional income, such as recoveries of losses from accidents and other extraordinary items, that the AFP receives. SUBACCOUNTS:
551.01 Income from accident recovery
551.02 Income from recovery of losses from theft, robbery, and fraud
551.03 Income from recovery of losses from industrial safety accidents
551.05 Income from recovery of losses from information processes
551.99 Other extraordinary income.

DEBITED:

For reversals and adjustments at the end of the accounting period.

CREDITED:

For the amount of income from the recovery of losses from accidents that insurance companies cancel to the AFP.
For the amount of other extraordinary income.
For the recovery of losses from fraudulent acts, thefts, counterfeiting, robberies, identity theft, etc.
For the recovery of losses related to the physical and health security of employees and clients.
For the recovery of expenses arising from failed transactions in the process or handling in systems, lost documents, damage to client assets, hardware failure, software imperfection, and telecommunications failures.

CATEGORY: 590.00 INCOME TAX
DESCRIPTION:
Comprises the income from deferred income tax for the accounting period, arising from the tax calculated on deductible temporary differences.

ACCOUNT: 591.00 INCOME TAX
DESCRIPTION:
Represents the credits for deferred income tax for the corresponding accounting period.

SUBACCOUNTS:
591.01 Deferred income tax

DEBITED:

For the amount of deferred income tax in the current accounting period, at the end of the fiscal year, with a credit to account 391.01 Profit for the year.

CREDITED:

For the amount of credits for deferred income tax, with a debit to account 135.03 Deferred income tax.

CLASS: 700.00 CONTROL ACCOUNTS
DESCRIPTION:
Groups the recording accounts intended for the internal control of the entity, as well as those intended for the accounting of operations with third parties, which by their nature do not integrate the asset and/or liability, nor influence the equity of the company, and do not affect its results. It comprises, in the case of debtors, the entity's own securities and goods delivered in custody and as collateral, own purchase and sale orders, unused obtained credits, received guarantees and collections, depreciated property, plant and equipment, and non-depreciable assets, written-off uncollectible accounts and their returns, as well as valued documents. In the case of creditors, it comprises the corresponding contra-accounts of the debtors.

CATEGORY: 710.00 DEBTOR CONTROL ACCOUNTS
DESCRIPTION:
Comprises the debtor recording accounts intended for the internal accounting control of the entity and which by their nature do not integrate the asset and/or liability, and do not influence the equity or results of the entity. It includes accounts for own securities and goods in custody, own securities and goods pledged as collateral, own purchase and sale orders, unused obtained credits, received guarantees, received collections, and various control accounts.

ACCOUNT: 711.00 OWN SECURITIES AND GOODS IN CUSTODY DESCRIPTION:
Represents the own securities and goods that have been delivered in custody to third parties or under the responsibility of the respective department of the entity itself. SUBACCOUNTS:
711.01 Securities in custody
711.02 Goods in custody
711.03 Documents in custody

DEBITED:

For the entity's securities and goods deposited in custody.

CREDITED:

For the return of the entity's securities and goods deposited in custody in another entity.

ACCOUNT: 712.00 OWN SECURITIES AND GOODS PLEDGED AS COLLATERAL

DESCRIPTION:
Represents the own securities and goods delivered as collateral for operations as appropriate.

SUBACCOUNTS:
712.01 Securities pledged as collateral
712.02 Discounted letters or documents

712.03 Movable and immovable goods
712.04 Securities subject to other restrictions
712.99 Other pledged guarantees

DEBITED:

For the own securities and goods pledged as collateral.

CREDITED:

For the return of the own securities and goods pledged as collateral.

ACCOUNT: 713.00 UNUSED OBTAINED CREDITS

DESCRIPTION:
Represents credits obtained from financial system institutions still not used by the entity.

SUBACCOUNT:
713.01 Unused obtained credits

DEBITED:

For the unused obtained credits.

CREDITED:

For the use of the obtained credits.

ACCOUNT: 714.00 RECEIVED GUARANTEES

DESCRIPTION:
Represents the valid guarantees received by the entity, which are recorded at market value or nominal value, whichever is lower when they correspond to securities, and based on the commercial value determined by an appraiser for pledge and mortgage guarantees. These guarantees will only be accounted for in the control accounts when the registration has been made in the corresponding State Registry Office. SUBACCOUNTS:
714.01 Securities guarantees
714.02 Pledge guarantees

DEBIT:

For guarantees received.

CREDIT:

For the return of received guarantees.
For the devaluation of guarantees below their market or commercial value.
ACCOUNT: 719.00 DIVERSE CONTROL ACCOUNTS
DESCRIPTION:
Represents the balances of registration accounts intended to control the amounts of fully depreciated property, plant and equipment units, and low-value non-depreciable assets, from which control must be maintained according to the AFP's internal policies, accounts and documents written off, yields from written-off and doubtful collection accounts and documents, valued documents, and other diverse control accounts. SUBACCOUNTS:
719.01 Depreciated property, plant and equipment
719.02 Non-depreciable assets
719.03 Written-off accounts and documents receivable
719.04 Yields from written-off accounts and documents receivable
719.05 Yields from accounts and documents receivable of doubtful collection
719.06 Valued documents
719.99 Other diverse control accounts

DEBIT:

For fully depreciated property, plant and equipment units and low-value non-depreciable assets.
For written-off accounts and documents receivable.
For yields from written-off accounts and documents receivable and doubtful collection.
For valued documents.

For the removal of fully depreciated property, plant and equipment, which are withdrawn from controls or sold or discarded.
For the consumption of low-value assets.
For the recovery of written-off accounts and documents receivable.
For the recovery of yields from written-off accounts and documents receivable and doubtful collection.
For the use of valued documents.
ITEM: 720.00 CREDITOR CONTROL ACCOUNTS

DESCRIPTION:
Comprises creditor registration accounts intended for the internal accounting control of the entity and which by their nature do not integrate the asset and/or liability and do not influence equity or the company's results. Includes contra-creditor accounts for own securities and assets in custody, own securities and assets pledged as collateral, own buy-sell orders, obtained but unused credits, received guarantees, received collections, and diverse control accounts. It is not necessary to use subaccounts and analytical accounts for creditor control accounts. The dynamics of creditor control accounts are similar, but in the reverse direction to that established for debtor control accounts.

ACCOUNTS:
721.00 CONTRA-ACCOUNT FOR OWN SECURITIES AND ASSETS IN CUSTODY
722.00 CONTRA-ACCOUNT FOR OWN SECURITIES AND ASSETS PLEDGED AS COLLATERAL
723.00 CONTRA-ACCOUNT FOR OBTAINED BUT UNUSED CREDITS
724.00 CONTRA-ACCOUNT FOR RECEIVED GUARANTEES
729.00 CONTRA-ACCOUNT FOR DIVERSE CONTROL ACCOUNTS

GENERAL CONSIDERATIONS FOR FINANCIAL STATEMENTS Financial statements shall be prepared comparatively, with the following criteria:
The financial statement models contain the minimum accounting lines or accounts that must be considered in said financial statements of the AFPs; therefore, they are not limiting. The balances presented in the Balance Sheet, both quarterly and annual, shall be compared with the balances as of December 31 of the previous year. The income statement shall be compared according to the following detail:

End of Period	Comparative Information
As of March 31	Balances of the quarter ended March 31, 20X2 and 20X1 As of June 30

In light of the above, it is necessary that as of June 30 and September 30, two condensed income statements be presented, one for the accumulated period and another for the last three months. The Cash Flow Statement and the Statement of Changes in Equity, both quarterly and annual, shall be compared with the balances of the same period of the previous year.

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-11/2022
NSP-42
ACCOUNTING MANUAL FOR PENSION FUND ADMINISTRATORS Approval: 30/12/2022 Validity: 01/03/2023 NAME OF THE ADMINISTRATOR ______________________ Balance Sheet as …… (Expressed in United States dollars)

20X2 20X1
ASSETS
CURRENT ASSETS
Cash (Note) xxxxx xxxxx
Repurchase Agreements (Note) xxxxx xxxxx
Current financial investments (Note) xxxxx xxxxx Accounts and documents receivable net of provisions (Note) xxxxx xxxxx Prepaid expenses (Note) xxxxx xxxxx Total current assets xxxxx xxxxx NON-CURRENT ASSETS Non-current financial investments (Note) xxxxx xxxxx Special Guarantee Contribution (Note) xxxxx xxxxx Investments in fund shares (Note) xxxxx xxxxx Property, plant and equipment net of accumulated depreciation (Note) xxxxx xxxxx Other assets and intangibles net of amortizations (Note) xxxxx xxxxx Total non-current assets xxxxx xxxxx Total Assets xxxxx xxxxx

LIABILITIES AND EQUITY
CURRENT LIABILITIES
Obligations with financial institutions short-term (Note) xxxxx xxxxx Current portion of long-term loans (Note) xxxxx xxxxx Accounts and documents payable short-term (Note) xxxxx xxxxx Obligations for taxes and contributions (Note) xxxxx xxxxx Total current liabilities xxxxx xxxxx NON-CURRENT LIABILITIES Obligations with financial institutions long-term (Note) xxxxx xxxxx Accounts and documents payable long-term (Note) xxxxx xxxxx Provisions (Note) xxxxx xxxxx Other liabilities xxxxx xxxxx Total non-current liabilities xxxxx xxxxx

Equity (Note)
Subscribed share capital xxxxx xxxxx
Unpaid share capital (xxxxx) (xxxxx)
Paid share capital xxxxx xxxxx
Capital reserves xxxxx xxxxx
Revaluation xxxxx xxxxx
Results of prior periods xxxxx xxxxx
Result of the current period xxxxx xxxxx
Total Equity xxxxx xxxxx
Total Liabilities and Equity xxxxx xxxxx
Commitments and contingencies (Note) xxxxx xxxxx Control accounts (Note) xxxxx xxxxx The notes are an integral part 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-11/2022
NSP-42
ACCOUNTING MANUAL FOR PENSION FUND ADMINISTRATORS Approval: 30/12/2022 Validity: 01/03/2023 NAME OF THE ADMINISTRATOR _______________________
Income Statement from ...... to ......
(Expressed in United States dollars)

20X2 20X1
Pension fund administration income
Commission income (Note) xxxxx xxxxx
Yield on Special Guarantee Contribution xxxxx xxxxx Pension fund administration expenses Insurance premiums (Note) xxxxx xxxxx Salaries, commissions and benefits for pension service agents (Note) xxxxx xxxxx Other direct costs for fund administration (Note) xxxxx xxxxx Gross profit xxxxx xxxxx Operation Personnel and administrative expenses (Note) xxxxx xxxxx Depreciation, amortization and devaluation of assets xxxxx xxxxx Provision for uncollectibility of accounts receivable and net investments xxxxx xxxxx

Financial
Financial expenses xxxxx xxxxx
Financial income (xxxxx) (xxxxx)
Other
Other expenses (Note) xxxxx xxxxx
Other income (Note) (xxxxx) (xxxxx)
Prior period expenses (Note) xxxxx xxxxx
Prior period income (Note) (xxxxx) (xxxxx)

Operating profit (Loss) xxxxx xxxxx
Income tax (Note) xxxxx xxxxx

Profit (Loss) from ordinary activities xxxxx xxxxx

Extraordinary items (Net of income tax)
Extraordinary expenses (Note) xxxxx xxxxx
Extraordinary income (Note) (xxxxx) (xxxxx)
Net profit (Loss) of the period xxxxx xxxxx
Profit (Loss) per share xxxxx xxxxx
The notes are an integral part 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-11/2022
NSP-42
ACCOUNTING MANUAL FOR PENSION FUND ADMINISTRATORS Approval: 30/12/2022 Validity: 01/03/2023 NAME OF THE ADMINISTRATOR _______________________
Condensed Income Statement from ...... to ......
(Expressed in United States dollars)

20X2 20X1
Pension fund administration income xxxxx xxxxx Pension fund administration expenses xxxxx xxxxx Gross profit xxxxx xxxxx Operating expenses xxxxx xxxxx Net financial expenses (income) xxxxx xxxxx Net other expenses (income) xxxxx xxxxx Operating profit (Loss) xxxxx xxxxx Income tax xxxxx xxxxx Profit (Loss) from ordinary activities xxxxx xxxxx Extraordinary items (Net of income tax) xxxxx xxxxx Profit (Loss) of the period xxxxx xxxxx Profit (Loss) per share xxxxx xxxxx

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-11/2022
NSP-42
ACCOUNTING MANUAL FOR PENSION FUND ADMINISTRATORS Approval: 30/12/2022 Validity: 01/03/2023 NAME OF THE ADMINISTRATOR ______________________ Statement of Changes in Equity for the periods ended …... (Expressed in United States dollars)

Capital Reserves Revaluation Accumulated Results Current Period Results Total Balances as… ________ Capital increase ________ ________ Capitalization ________ () () () ________ Revaluation _________ _________ ________ Declared dividends () () Result of the period ________ Other (specify) Balances as... ________ Capital increase _________ ________ Capitalization _________ () () () ________ Revaluation _________ _________ ________ Declared dividends () () Result of the period ________ Other (specify) Balances as ... ________

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-11/2022
NSP-42
ACCOUNTING MANUAL FOR PENSION FUND ADMINISTRATORS Approval: 30/12/2022 Validity: 01/03/2023 NAME OF THE ADMINISTRATOR _______________________
Statement of Cash Flows for the periods......
(Expressed in United States dollars)
20X2 20X1

Cash flows from operating activities

Collection of commissions for fund administration xxxxx xxxxx Collection of commissions for FAPV marketing xxxxx xxxxx Payment of disability and survivorship insurance premium (xxxxx) (xxxxx) Payments of commissions and salaries to pension agents (xxxxx) (xxxxx) Payments for Pension Fund investments (xxxxx) (xxxxx) Payments for staff remuneration and benefits (xxxxx) (xxxxx) Payments to suppliers (xxxxx) (xxxxx) Interest received xxxxx xxxxx Interest paid (net of capitalized amounts) (xxxxx) (xxxxx) Taxes paid (xxxxx) (xxxxx) Collections from account settlements and asset recovery xxxxx xxxxx Other income from account settlements and asset recovery xxxxx xxxxx Payments or proceeds from extraordinary or unusual operations xxxxx xxxxx Net cash provided by (used in) operating activities xxxxx xxxxx Cash flows from investing activities Purchase of securities (xxxxx) (xxxxx) Proceeds from sale of securities xxxxx xxxxx Redemption of securities xxxxx xxxxx Interest received from securities xxxxx xxxxx Purchase of Special Guarantee Contribution shares (xxxxx) (xxxxx) Withdrawals of Special Guarantee Contribution shares xxxxx xxxxx Purchase of voluntary Pension Fund shares (xxxxx) (xxxxx) Withdrawal of voluntary Pension Fund shares xxxxx xxxxx Purchase of shares in joint-stock companies (xxxxx) (xxxxx) Proceeds from sale of shares in joint-stock companies xxxxx xxxxx Purchase of property, plant and equipment (xxxxx) (xxxxx) Acquisition of intangible assets (xxxxx) (xxxxx) Proceeds from sale of property, plant and equipment xxxxx xxxxx Proceeds from sale of intangible assets (xxxxx) (xxxxx) Net cash provided by (used in) investing activities xxxxx xxxxx

Cash flows from financing activities
Loans granted to affiliated companies (xxxxx) (xxxxx) Collections from loans to affiliated companies xxxxx xxxxx Bank overdrafts xxxxx xxxxx Short-term bank loans xxxxx xxxxx Payment of short-term bank loans xxxxx xxxxx Long-term bank loans xxxxx xxxxx Payment of long-term bank loans (xxxxx) (xxxxx) Increases (Decrease) in share capital in cash xxxxx xxxxx Dividends paid (xxxxx) (xxxxx) Net cash provided by (used in) financing activities xxxxx xxxxx Net increase (decrease) in cash and cash equivalents xxxxx xxxxx

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-11/2022
NSP-42
ACCOUNTING MANUAL FOR PENSION FUND ADMINISTRATORS Approval: 30/12/2022 Validity: 01/03/2023 Cash and cash equivalents at the beginning of the year xxxxx xxxxx Cash and cash equivalents at the end of the year xxxxx xxxxx

Supplementary schedule of investing and financing activities that are non-cash:
In this note, the amounts of operations that did not generate cash flows in investing and financing activities must be described. For example: Capitalizations of debts, financial leases establishing how much interest has been capitalized, transfers between accounts that do not generate cash flows, acquisition of companies, and other operations.

NOTES TO THE FINANCIAL STATEMENTS
The AFP's financial statements must be accompanied by their corresponding notes, which will be included at a minimum in the presentation and publication of the financial statements according to the following schedule. QUARTERLY SEMI-ANNUAL ANNUAL ONLY IF APPLICABLE (OIA) Notes: 2 (only paragraphs second and third), 4, 5, 27, 28, 29, 30, 31, 33, and 34. Notes: 2 (only paragraphs second and third), 4, 5, 21, 27, 28, 29, 30, 31, 33, and 34. All notes. The notes are accompanied by the abbreviation OIA, when the indicated paragraphs or notes must be revealed. Through this Manual, the minimum information to be provided in the explanatory notes is established; however, the information requirements established do not exempt the company's administration from the responsibility of disclosing all essential information. When circumstances warrant the revelation of additional notes not scheduled in the indicated period, they must be included to achieve an appropriate presentation of the financial information. Below is a detail of the notes containing the minimum information that AFPs must include in the financial statements of the Pension Fund Administrator, which are not limiting and the numbers should be taken as reference:

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-11/2022
NSP-42
ACCOUNTING MANUAL FOR PENSION FUND ADMINISTRATORS Approval: 30/12/2022 Validity: 01/03/2023 NOTE 1. OPERATIONS This note must describe the general data of the AFP, regarding its name, date of commencement of activities, its object, and that its business is of a single nature. Additionally, the number of agencies it has and the address of its headquarters (main office) must be indicated, as well as the number of workers at the end of the period, or the average figure thereof. The name of the direct holding company and the ultimate holding company of the group to which it may belong must be presented. Also, when applicable, shareholder agreements providing for mergers or absorptions with other AFPs must be described, determining the date and number of the agreement, the date on which the merger or absorption was formalized, the amount of assets, liabilities, and equities merged, the participation percentages of the shareholders of the absorbed company, the accounting method of merger adopted, the criteria used for such application, as well as the remaining disclosures required by International Accounting Standards (OIA). Reveal the date on which the financial statements have been authorized for publication, as well as who gave the authorization. If the financial statements are presented in consolidated form, the name of the societies incorporated in the financial statements and the accounting method adopted must be indicated (OIA). NOTE 2. ACCOUNTING POLICIES For financial statements ending on March 31, June 30, and September 30, only the following paragraphs must be included:
The financial statements have been prepared in accordance with the Technical Standards approved by the Standards Committee of the Central Reserve Bank of El Salvador applicable to them and the International Accounting Standards, effective as of October 2003, prevailing the regulations approved by the Standards Committee of the Central Bank when there is a conflict with the International Accounting Standards effective as of October 2003. The policies used in the preparation of the financial statements for the period ending ___ of ____ of 20X2 are the same as those used in the financial statements of the period ended December 31, 20X1.

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-11/2022
NSP-42
ACCOUNTING MANUAL FOR PENSION FUND ADMINISTRATORS Approval: 30/12/2022 Validity: 01/03/2023 For annual closing financial statements, the most significant accounting policies applied in their preparation and changes thereto compared to those applied in the previous exercise must be revealed in this note, substantiating the reasons for the changes and quantifying the effects they produced on comparability. The main methods and criteria employed in the preparation of the financial statements must always be explained briefly, indicating at a minimum the following aspects:
a. General accounting policies
The financial statements as of __ of __________ of 20X2 and 20X1 have been prepared in accordance with the provisions issued by the Central Bank. b. Functional Currency The entity shall declare the functional and presentation currency of the financial statements.
c. Cash and cash equivalents

For purposes of the cash flow statement, cash and cash equivalents correspond to cash balances, repurchase agreements, and bank deposits whose original maturity is not greater than 90 days. d. Intangible Assets (OIA) The accounting policy adopted for the recognition and measurement of intangible assets must be indicated. e. Valuation of Foreign Currency Transactions (OIA) It must be indicated that transactions carried out in foreign currency are recorded in United States dollars, at the average exchange rate of the Financial System. Balances of assets and liabilities in foreign currency are presented in United States dollars, valued at the average exchange rates of the Financial System for each currency published by the Competent Authority, corresponding to the date of the financial statements. Gains or losses derived from exchange adjustments are recognized in the results of the current period.

Purchases and sales of investments are recorded on the settlement date of the stock exchange operations. Transaction costs are included in the acquisition cost and include commissions and fees paid to brokers and the Stock Exchange, as well as taxes and other rights related to the transfer, except for commissions for funds placed in portfolio administration, which are charged to results. Instruments comprising the investment portfolio are valued at month-end at fair value. Gains and losses derived from changes in fair value are included in the period's gain or loss. g. Shares in Companies (OIA)

Investments in shares of joint-stock companies are only permitted for those dedicated to activities related to the development of the pension system, such as custody and securities, collection and processing of individual accounts, advisory services, and investment in pension fund administrator societies abroad. The methods employed for these valuations are as follows:
Fair Value: Shares are recorded at fair value, either through quotes in an active market or another estimation method, when the investment in the issuer is up to twenty-five percent of the shares. The results of these investments are recorded by recognizing the variation in fair value. Equity Method: Such investments are considered to have significant control over the issuing company, defining for this purpose a participation between a range of 25% to 50%. Investments greater than this latter percentage are recorded under the consolidation policy. In such circumstances, the investment is initially recorded at cost and subsequently adjusted for changes relative to the issuing company's book capital, in proportion to the acquired participation. Such variations are recorded within the period's results. When it is defined that a participation within these ranges does not have significant control, the situations considered to make such exclusion must be revealed.

h. Provision for Investment Depreciation (SSA) The established policy by the administration to determine the provision for investment depreciation must be specified.

i. Provision for Uncollectible Accounts Receivable (SSA)
The Administration's policy for establishing, reducing, and writing off provisions for uncollectible accounts receivable must be described, indicating that products originated from such accounts receivable have been reversed from the period's results when they correspond to them, and from previous periods when they do not. Additionally, the establishment of voluntary or additional provisions beyond the administration's policy must be described.

j. Special Guarantee Contribution
The Special Guarantee Contribution constitutes an investment of an obligatory nature in Fund Quotas made by the AFP. This investment must be equivalent to a percentage of the Fund's Assets, not exceeding three percent of the Fund, established based on the average of the fifteen consecutive days prior to the calculation date. The returns obtained from the Special Guarantee Contribution are determined on the same basis applied to the profitability assigned to Individual Savings Accounts for Pensions, constituted by the variation of the Pension Fund's quota that occurred between the purchase date and the closing date of the financial statements. This profitability will not be guaranteed by the minimum profitability assigned to Individual Savings Accounts for Pensions.

k. Permanent Investments in Fund Quotas
The wording of this note must be as follows, where applicable:
The AFP may voluntarily make investments in Fund Quotas. These investments will be valued and controlled just like Individual Savings Accounts for Pensions. The profitability of these investments will not be guaranteed by the minimum profitability established for individual accounts.

l. Property, Plant, and Equipment
For each class of element in property, plant, and equipment, it must be indicated whether they are valued at acquisition or construction cost; as well as, when they are registered by the revaluations performed. The procedure used for revaluations and the treatment of accumulated depreciation of such revaluations must additionally be indicated. It must be revealed that the company, at the end of each accounting period, performs the necessary checks to detect potential losses from the impairment of the value of the components of property, plant, and equipment. Additionally, it must be revealed that the impairment loss is recognized, provided that the book value of the asset in question is greater than its recoverable amount. Information must be provided on the recording method used for repairs, expansions, and modifications that increase the value of an asset or extend its useful life; the depreciation method used and the values on which it is calculated must be signaled, both for the acquisition or construction cost and for the value of the corresponding revaluations.

m. Amortizable Expenses
The criteria adopted to register amortizable expenses, as well as the established methods for their amortization, must be specified.

n. Indemnifications
It must be specified whether payments in the concept of indemnifications are applied directly to expenses or to the corresponding provision, specifying, additionally, the bases for the calculation of the provision for labor obligations or the accounting criteria. It must also be revealed the amount paid in the year for this concept, the value of the maximum contingency and its provision, if any.

o. Recognition of Income and Expenses

Income is recognized at the time of accrual and expenses when incurred. Income from Commissions for the Administration of Pension Funds and expenses for Insurance Premiums for the coverage of risks of the AFP, are accrued and recognized respectively, at the moment the operations are credited in their Individual Savings Accounts for Pensions, according to what is stipulated by the Central Bank.

p. Income Tax
To establish the expense or income from income tax for the period, current and deferred tax are considered. Current tax is that which corresponds to pay on taxable income, considering the respective tax rate; deferred tax is calculated on the temporary differences between the book value of assets and liabilities, for financial purposes, with the tax base of the same. An asset for deferred income tax is recognized for deductible temporary differences, only when there is a probability of offsetting with future profits.

q. Interest Cost (SSA)
The accounting policy adopted for interest costs must be revealed, indicating which are taken to expenses in the period in which they are incurred, as well as those that are to be capitalized, detailing the capitalization period of the same.

r. Employee Benefit Plans (SSA)
The recognition and measurement policy for employee benefit plans must be described, indicating the nature and terms of the plan in question.

NOTE 3. FOREIGN CURRENCY POSITION (SSA)
An adequate disclosure of assets and liabilities in foreign currency must be included.
The types of exchange rates used and the variation of the exercise must be detailed.
The amount of relevant exchange differences, which have been included in the net gain or loss of the period, or, if applicable, classified as components of net equity, must be revealed.

NOTE 4. ACCOUNTING CHANGES (SSA)
Accounting changes between one period and another must be established, identifying the justifications, reasons, or circumstances that have originated such a decision. Thus, the amounts of the effects of the change on the balance sheet and the results of each of the exercises must also be established. These disclosures will include the prior and subsequent effect of the tax and the accumulated effect in retained earnings retrospectively, if the change had occurred.

For changes in accounting estimates that produce significant effects in the current period or in subsequent periods, the nature of the change and the quantification of its effects must be revealed. For changes in accounting policies, their application in the presentation of the financial statements must be made retrospectively, except that prior period adjustments cannot be reasonably determined; disclosing the following:
a) The reasons for making the change; b) The amount that the correction has reached in the current period and in each of the preceding ones; and c) The fact that comparative information has been corrected or reveal the impossibility of doing so. With regard to errors, the correction corresponding to previous periods must be applied as an adjustment to retained earnings at the beginning of the period, it must not be considered in the determination of the results of the current period.

NOTE 5. MATERIAL ERRORS (SSA)
When errors that have a significant effect on the financial statements of one or more previous periods are discovered, they must be applied retrospectively in the presentation of the financial statements of the current period, except that prior period adjustments cannot be reasonably determined; disclosing the following:
a) The nature of the error; b) The amount that the correction has reached in the current period and in each of the preceding ones; c) The fact that comparative information has been corrected or reveal the impossibility of doing so. The correction corresponding to previous periods must be applied as an adjustment to retained earnings at the beginning of the period, it must not be considered in the determination of the results of the current period.

NOTE 6. AVAILABLE
Detail the cash available by type of deposit, immediate collection effects, and restricted available funds:

Concept 20X2 20X1
Local and foreign current accounts
Local and foreign savings accounts

Local and foreign time deposits
Immediate collection effects ______ ______
Total ______ ______
The average weighted interest rates that have been agreed upon for each type of deposit must be indicated. The dates on which the immediate collection effects established by the previous exercise have been recovered must be indicated. If there are special conditions due to deposit contracts celebrated with local or foreign banks, they must be revealed in this note. (SSA)

NOTE 7. REPurchase AGREEMENTS (SSA)
The average weighted yield rate and the average maturity of repo operations, valid on the balance sheet date, must be indicated.

NOTE 8. FINANCIAL INVESTMENTS (SSA)
This item comprises the investments that the AFP makes in order to place its excess liquidity and obtain returns on them. The composition of financial investments, unless otherwise indicated, is considered negotiable financial assets, and must be detailed as follows: (If they have been classified as: available for sale, or held to maturity, this composition must be presented for each case).

Concept 20X2 20X1
Values issued by the Central Government - DGT
Values issued by the Central Reserve Bank of El Salvador Values issued by state-owned companies and Autonomous Official Institutions Values issued by national entities Values issued or guaranteed by Banks Certificates of participation of Investment Funds Funds placed in portfolio administration Values issued by foreign entities Values issued by Other Authorized Institutions of the Country (4) Values issued by Salvadoran Securitization Companies (4) Sub total ______ ______ Less: Provision for investment valuation Total ______ ______

Additionally, a description of the main instruments or types of instruments in which investment has been made must be presented, which must include for each of them:
a) Term and maturity date (average or range, as considered more descriptive); b) Established interest rate (indicating characteristics such as review period in case of being adjustable), or amount corresponding to interest, dividends or other yields or returns on the principal, including payment terms; c) The currency in which payments and collections will be demanded, in case it is different from the legal currency; d) Conversion, swap, or early liquidation options, if any, to which the involved parties have rights; and e) Relevant special conditions or clauses.

Unconsolidated Investments (SSA)
A description of the main instruments or types of instruments in which investment has been made must be included, which must include for each of them:
a) Amount invested; b) Main issuers in which investment has been made; c) Term and maturity date (average or range, as considered more descriptive); d) Established interest rate (indicating characteristics such as review period in case of being adjustable), or amount corresponding to interest, dividends or other yields or returns on the principal, including payment terms; e) The currency in which payments and collections will be demanded, in case it is different from the legal currency; f) Conversion, swap, or early liquidation options, if any, to which the involved parties have rights; and g) Relevant special conditions or clauses.

Issuer Title 20X2 20X1
Quantity % Value Quantity % Value
Amount according to record
AAAAAA
BBBBBB ______ ___ _____ ______ ___ _____
Sub total
Provision for depreciation
AAAAA
CCCCC ______ ___ _____ ______ ___ _____

Sub total ______ ___ _____ ______ ___ _____
Net

Movement of the period 20X2 20X1
Cost Provision Cost Provision
Balance at the beginning of the period
Acquisitions
Withdrawals
Profitability
Adjustments for losses ______
Balance at the end of the period ______
Disclosures must be included regarding the nature of restrictions on investments when any of these conditions apply.

Consolidated Investments (SSA)
If these are the consolidated financial statements of the AFP and its subsidiaries, they must indicate the societies that are being consolidated, the total assets, liabilities, and equity corresponding to them, and the criteria adopted to effect the consolidation. To reveal participation in affiliated entities in which the Administrator has total control or influence in their administration, the following must be revealed for each issuing entity:
a) Name of the company; b) Percentage of participation in capital, the quantity and class of shares owned; c) Time of operation of the company; d) Amount of undistributed profits of the issuer to the controlling entity; e) The figure of the profits or losses of the exercise of the issuer that are affecting the income statement of the exercise of the Administrator; f) The amount of dividends received from the issuer during the exercise, corresponding to past management; and g) Nominal value of the investment and book value. For those institutions in which total control is held, a summary of the situation and results of the same must be included, which must include at least the following:
a) The total of assets and liabilities; b) The total of net equity; and c) The gross, operational, extraordinary, previous management, and net result.

NOTE 9. ACCOUNTS AND DOCUMENTS RECEIVABLE
Present the composition of receivable balances and the respective provision for uncollectibility. As well as the amounts receivable that are in a judicial collection situation. If there are restrictions of any type on these balances, they must be revealed.

Concept 20X2 20X1
Commissions receivable for fund administration Commissions receivable for marketing of FAPV Accounts and documents receivable for own operations Accounts and documents receivable related Accounts receivable from insurance companies Tax credit Other accounts and documents receivable Accounts receivable from doubtful collection Receivable profitability ______ ______ Sub total Less:
Provision for accounts and documents receivable ______ ______ Total ______ ______ Any account that individually represents more than 5% of the total asset, or that represents more than 10% of the total accounts receivable before reserve, must be revealed independently from the detail exposed above. Likewise, it must be established what the movements of the provisions for accounts receivable have been according to the following model: (SSA)

Concept 20X2 20X1
Balance at the beginning of the period
Net reserve constitutions
Liquidations of receivable balances against reserves Reversals of accounts receivable from previous years Other applications and adjustments ______ ______ Balance at the end of the period ______ ______

NOTE 10. PREPAID EXPENSES
The amount of prepaid expenses must be detailed according to the auxiliary accounts contained in the financial statements, separately establishing the amount in the concept of accumulated amortization.

Likewise, any disclosure to the other notes contained in the financial statements regarding contracts, commitments, or contingencies, linked to the most significant prepayments presented in a given period, must be indicated.

NOTE 11. SPECIAL GUARANTEE CONTRIBUTION
The legal framework to which the special guarantee contribution is subject must be established, and the movement presented during the year according to the model presented below, indicating whether it meets or does not meet the requirement at the end of the year:

Concept 20X2 20X1
Amount Quotas Amount Quotas
Cash Contributions
Balance at the beginning of the exercise
Contributions made
Net transfers from Investments in AFP Quotas
Withdrawals made
Transfers to ISAPs to cover minimum profitability Net profitability _____ Final balance of the exercise _____ _____ Plus Bonds Financial instruments (detail) Guarantees Special Guarantee Contribution backed Required Special Guarantee Contribution Surplus (Deficiency)

The bonds are contracted in favor of the Pension Fund, with the AFP's own resources, with the financial institution ___________, with a validity of one year ending on ___ of __________ of 200X, but it is automatically extended, in order to maintain coverage, while the contract for the following year is subscribed. Such bonds will be made effective at the first request of the AFP, within a period not greater than five business days. The movements in quotas will be presented with an approximation to two decimals.

NOTE 12. INVESTMENTS IN PENSION FUND QUOTAS
The amount voluntarily invested in Pension Fund Quotas must be specified, through a note that meets the following characteristics:

Concept 20X2 20X1
Amount Quotas Amount Quotas
Balance at the beginning of the exercise
Purchase of quotas
Net transfers to/from Special Guarantee Contribution Transfers to the Fund for coverage of insufficiencies Withdrawals of quotas made Net profitability _____ Final balance of the exercise _____ The movements in quotas will be presented with an approximation to two decimals.

NOTE 13. PROPERTY, PLANT, AND EQUIPMENT
The balances of each class of the elements of property, plant, and equipment must be included, establishing as a model the following presentation:

Concept 20X2 20X1
Land
Acquisition costs
Revaluations ______ ______
Sub total
Depreciable assets (detail according to the manual) Revaluations on depreciable assets Accumulated depreciation (detail according to the manual) ______ ______ Sub total Total net of property, plant, and equipment ______ ______

When the elements that make up the item of property, plant, and equipment have incorporated revaluations, the effective dates of revaluations and the amounts that were performed must be revealed, subsequently describing the net effect of the revaluation net of depreciations, incorporated within the assets of the AFP. Additionally, the valuation bases used for the revaluation; if the services of an independent appraiser have been used and the nature of the indices used to determine replacement costs (SSA). The amount of the revaluation surplus must be included, indicating the movements of the period, as well as any restrictions on the distribution of its balance to the owners.

Useful lives or depreciation percentages used for each element of property, plant, and equipment must be included. Likewise, the amount of assets that have been pledged for the payment of obligations or other commitments formed on them must be established. If assets acquired with financial leases are included, they must be related to the corresponding contracts note, the respective agreement, signaling the net value of the same (SSA). If assets acquired with financial leases are included, the following must be revealed:

Net book value on the balance sheet date for each class of assets.
Reconciliation between the total minimum payments and the present value, on the balance sheet date.
Total minimum payments and their present value for each of the following periods: Up to one year, between one and five years, more than five years.
Contingent installments recognized in the results of the period.
Description of the significant terms of the lease.
The coverage of the goods by the insurance taken for the corresponding accidents or eventualities must be established additionally, indicating the insured amount, period, and risks covered, and if they have not been pledged. Additionally, any compensation, whether monetary or non-monetary, recognized due to the loss of value or impairment of component elements of property, plant, and equipment. The amounts of depreciation charged to the results of each period, of each of the assets, must also be revealed.

NOTE 14. OTHER ASSETS
Assets Received in Payment (SSA)
The description of assets received in payment must be detailed when applicable, establishing those acquired in the year and those that have been realized or discharged from the assets, according to the following note:

Concept Cost Price Reserve
Sale
Assets at the beginning of the exercise 20X1
Real Estate XXXXX
Real Estate YYYYY

Additions
Property ZZZZZ
Withdrawals or sales
Property YYYYY ______
Balance of assets at the end of fiscal year 20X1 Additions Property AAAAA Withdrawals Property XXXXX ______ Balance of assets at the end of fiscal year 20X2

Conditions of permits, solvency, or other special situations regarding the holding of said assets must be indicated. When purchase or sale relationships involve related companies, or if they were not carried out in a public auction, the conditions of the negotiation, including agreed prices, must be disclosed.

Other Assets (SSA)
The significant balance of other assets must be detailed, indicating the nature, amount, and process of liquidation or amortization of these assets.

Intangible Assets (SSA)
Intangible assets are detailed below:
Concept 20X2 20X1
Computer programs
Licenses
Brands
Patents ______ ______

Subtotal
Plus: Revaluations
Less:
Impairment losses
Accumulated amortization ______ ______
Total Intangible Assets ______ ______

For each class of intangible asset, the nature of the asset, useful lives or amortization percentages used, the amortization method, the gross book value, and accumulated amortization must be disclosed, as well as the line item in the Statement of Results where intangible asset amortization is included.

It must be disclosed that intangible assets are accounted for at their fair value, the effective date of revaluation, the book value, the balances of the revaluation surplus, impairment losses, and any other additional information applicable, as required by the Superintendence.

NOTE 15. OBLIGATIONS WITH BANKS (SSA)
This note will indicate, individually, the detail of loans and overdrafts acquired, whether short-term or long-term, establishing the current portion of these maturities, and the conditions of interest rate, terms, installments applied to capital, interest, and other special guarantees determined with the banks. A model of this note is shown below:
Concept 20X2 20X1
Short-term bank loans
Bank XXX, Loan for $_______, at % annual interest, payable in ___ installments of $ ______ comprising capital and interest, guaranteed with _______________ and with condition of ___________________, intended for Subtotal Plus: Current portion of long-term loans ______ ______ Total short-term loans Long-term loans and obligations (SSA) Bank AAA, Loan for $, at % annual interest, payable in ___ installments of $ ______ comprising capital and interest, guaranteed with _______________ and with condition of ____________________________, intended for _____________ Company BBB, Loan for $, at % annual interest, payable in ___ installments of $ ______ comprising capital and interest, guaranteed with _______________ and with condition of ______________________________, intended for ______________ Subtotal Less: Current portion of long-term loans ______ ______ Total ______ ______

Future obligation payments are presented below:
20X3 $XXXX
20X4 XXXX
20X5 XXXX
20X6 XXXX
20X7 XXXX

Subsequent years XXXX
Total XXXX
Less: Imputed interest (XXXX)
Present value of payments $XXXX

NOTE 16. ACCOUNTS AND DOCUMENTS PAYABLE
The main current accounts payable must be detailed according to the following breakdown:
Concept 20X2 20X1
Obligations from own operations
Obligations from fund administration
Affiliates
Employers
Insurance companies
Returns of incentives for permanence
Fund administration
Accounts payable for contracted insurance
Dividends and remuneration
Other accounts and documents payable
Rentals
Services
Suppliers
Others
Related accounts and documents payable
Accrued expenses and other accounts and documents payable ______ ______ Total ______ ______

Relationships with other balance sheet accounts must be established when significant balances with special conditions are found in liabilities. Similarly, those accounts that, due to their importance, must be disclosed individually, must be described narratively.

When there are accounts payable that are not expected to be liquidated in the normal course of AFP operations, or will not be liquidated within the twelve-month period from the date of the financial statements, they must be segregated and indicated as non-current accounts payable, presenting a detail of the accounts. Such detail will be similar to the model presented in this note, for current accounts.

NOTE 17. OBLIGATIONS FOR TAXES AND CONTRIBUTIONS The main accounts that make up this grouping must be disclosed individually according to the following model:
Concept 20X2 20X1
Taxes and contributions on own account
Income tax
Municipal taxes
Social security
Pension Fund Administrators
Commercial registration
Special contribution for the Citizen Security Plan-Large Taxpayers Other taxes and contributions on own account Taxes and contributions withheld Contributions payable for audit rights ______ ______ Total ______ ______

Within these accounts, if the AFP is in the situation of presenting financing for the cancellation of the tax balance, additional items may be established. Likewise, any contingencies associated with some of these accounts must be included within these accounts and disclosed independently if they are considered significant. (SSA) For the account of contributions payable for audit rights, a disclosure of the amount that has been applied to the results of the exercise must be made.

NOTE 18. INCOME TAX
The expense (income) of income tax is composed as follows:
Concept 20X2 20X1
Expense for current income tax
Expense (Income) for deferred income tax on temporary differences originated and reversed ______ ______ Total expense (income) income tax ______ ______

The reconciliation of the effective tax rate must be presented, as follows:
20X2 20X1
Profit before taxes US$xxxx US$xxxx
Tax resulting with the tax rate % US$xxxx % US$xxxx

Non-deductible expenses (detail) % US$xxxx % US$xxxx Income tax expense % US$xxxx % US$xxxx

The amount of current and deferred taxes, relative to items charged or credited directly to net equity accounts, must be disclosed.

For each temporary difference, the following must be disclosed:
a) The amount of deferred tax assets and liabilities recognized in the balance sheet for each of the periods reported; b) The amount of deferred tax expenses or incomes recognized in the statement of results, if this is not evident from the changes recognized in the balance sheet.

The determination of current income tax payable must be presented, as follows:
20X2 20X1
Expense for current income tax US$ xxxx US$ xxxx Less:
Tax credit US$ xxxx US$ xxxx
Advance payment US$ xxxx US$ xxxx
Tax payable US$ xxxx US$ xxxx

NOTE 19. PROVISIONS
The balances of provisions made by the AFP must be disclosed individually, compared with the previous year, indicating the purposes of their maintenance, whether they are determined for specific situations or items, or for general circumstances. In such situations, it must be specified, what has been the application to results of each of the provisions made, distinguishing the corresponding expenses and incomes, and the unused amounts that have been liquidated or reversed in the period.

A brief description of the nature of the obligation incurred, an indication regarding uncertainties about the amount, as well as the amount of any potential reimbursement, must be disclosed for each type of provision, reporting additionally, the amount of provisions made.

NOTE 20. INCOME FROM PENSION FUND ADMINISTRATION Current commission policy Detail the current commission percentages, and the variations made during each exercise, differentiated by each class, according to the following breakdown:

Commissions for fund administration Current commission types Administration of CIAP Administration of CIAP specials Administration of CIAP of non-resident Salvadorans Inactive Accounts Initial commission structure Change of current commission starting from:
Date XX-XXXX-XX
Final commission structure
(current as of XX-XXXX-XX)
Amounts of commissions received
Detail the amount of commissions received by each type, compared with the previous year.
Concept 20X2 20X1
Administration of CIAP
Administration of CIAP specials
Administration of CIAP of non-resident Salvadorans Administration of inactive accounts ______ ______ Total Less: Commission returns Permanence incentive Other movements ______ ______ Total net commissions ______ ______

Similarly, the policy of returns made by the AFP as a permanence incentive must be detailed.

NOTE 21. INSURANCE CONTRACT (SSA)
This note must indicate the Insurance Company with which the Collective Disability and Survivorship Insurance has been contracted, indicating the form in which it has been selected, the payments made during the period, and the relevant conditions established in the contract, mainly those related to the policy number, premium calculation, main coverage of the contract, additional coverages to the legal, validity period, expenses, and other disclosures considered important in the circumstances.

Similarly, the amount of returns made for good experience that are deducted from the expense must be described, indicating the discount percentage that

represents with respect to the insurance premium expense, and the percentage of net insurance premium after applying the return with respect to the IBC charged.

The basis for the return of insurance premiums applied for each period, the limitations of information, and the estimation basis that the administration has adopted for the recognition of pending returns to be collected and the recording process must be described.

Likewise, it must refer to the values that have been covered by the AFP in the concept of Complementary Capital in accordance with what is established in Article 158 of the Law, explaining the reasons why it was not covered by the Insurance Company.

NOTE 22. EQUITY
According to Art. 38 of the Law, AFPs must have at all times a minimum net equity which cannot be lower than the social capital required according to the Law.

Minimum Net Equity
Concept 20X2 20X1
Social capital
Legal reserve and other capital reserves
Surplus and retained earnings
50% Net profits of the exercise after taxes
50% Surplus from authorized revaluations less:
Capital participations in other societies
Losses of the exercise ______ ______
Net equity
Required Minimum Net Equity ______ ______
Excess (Deficiency) of minimum net equity ______ ______

The minimum regulated capital in Art.31 must be disclosed.
Disclose the number of authorized shares, the issued and fully paid shares, and those not fully paid, as well as their nominal value. If there is a variation in the number of shares in circulation, a reconciliation between the number of shares at the beginning and at the end of the period must be presented.

When the shares of the AFP are held by its subsidiaries or associates, such situation must be indicated. In the case of capital reserves, the balance of each of them and the way in which they are constituted must be presented, as well as a description of the nature and destination of each reserve item.

The amount of dividends proposed or declared after the balance sheet date, but before the financial statements were authorized for publication, must be disclosed. Additionally, if there are restrictions on the distribution of dividends, due to legal provisions, statutory provisions, shareholder agreements, loan contracts, or other agreements or provisions of the Superintendence, they must be described and quantified.

Agreements for the decrease or reduction of Social Capital, their nature, and any other special agreement must be disclosed.

NOTE 23. SALARIES, COMMISSIONS, AND BENEFITS TO PENSION SERVICE AGENTS The main accounts that make up this grouping must be disclosed individually according to the following model:
Concept 20X2 20X1
Salaries
Commissions
Christmas bonuses and bonuses
Vacations
Indemnities
Social benefits
Insurance
Training
Per diems
Transport and food
Other benefits ______ ______
Total ______ ______

NOTE 24. OTHER COSTS FOR PENSION FUND ADMINISTRATION The detail of the accounts that make up this grouping must be disclosed individually, according to the following model:

Concept 20X2 20X1
AAA
BBB
XXX ______ ______
Total ______ ______

NOTE 25. PERSONNEL AND ADMINISTRATIVE EXPENSES The main accounts that make up this grouping must be disclosed individually according to the following model:
Concept 20X2 20X1
Personnel expenses
Board expenses
General expenses
Insurance expenses
Taxes and contributions
Diverse expenses ______ ______
Total ______ ______

NOTE 26. OTHER EXPENSES AND OTHER INCOMES
A brief explanation of the content of these accounts must be presented independently when individually representing more than 5% of the total income or expenses and/or presenting a variation of more than 50% with respect to the balance of the previous year.

NOTE 27. EARNINGS PER SHARE
Earnings (Loss) per share
The calculation of the earnings (loss) per share of the following form must be disclosed:
Earnings (Loss) per share Period Earnings (Loss) Weighted average of shares in circulation during the period

NOTE 28. EXTRAORDINARY RESULTS AND PREVIOUS PERIOD RESULTS (SSA) The nature of extraordinary results and previous period results applied within the results of the exercise must be indicated.

NOTE 29. OPERATIONS WITH RELATED PARTIES (SSA) A summary of the criteria for the determination of related parties with the AFP must be established, indicating the nature of the relationship, percentage of participation

and other effects considered in the relationship, expressly indicating those stated by the Law. The balances of assets and liabilities individualized by each of the entities and persons linked must be reported, as well as the incomes and expenditures recognized in the exercise generated by operations with said linked parties.

The purchase or sale of goods (finished or not), the provision or reception of services from related companies, such as, transfer of research and development, must be disclosed, giving a clear indication about the volume of transactions, the absolute amounts or the proportions of the most important items, and the pricing policies; when there are indications of associated companies, companies under common control, or companies exercising significant influence.

NOTE 30. CONTINGENCIES ON AFFILIATES AND BENEFICIARIES OF THE FUND (SSA) Contingencies for the Complementary Capital requested that has not been contributed by the Insurance Company must be disclosed, detailing the value and the number of corresponding claims, classified by disability and survivorship pensions.

Such contingencies must describe the cases resolved but unpaid, as well as those in process on which advances have been delivered.

NOTE 31. COMMITMENTS AND CONTINGENCIES (SSA)
The contingent situations and commitments from which obligations and/or asset losses could result for the entity must be explained, in the case of events that have not been accounted for because a reasonable estimation of the amounts involved could not be made or for other reasons, the situation must be described, and in the case of contingencies that may result in a gain for the Administrator, they will only be mentioned when their occurrence is very probable.

A brief and summary description of each of the precautions that have been notified by the Superintendence, in the respective quarter, must be disclosed, even if these have been remedied within that quarter. Likewise, those that remain in the process of overcoming must continue to be disclosed quarterly until they are adequately resolved by the AFP. Similarly, when there are administrative processes filed by the Superintendence against the AFP, the significant conditions and the current status of these must be indicated.

Whenever possible, the probability of occurrence of each of the facts considered as contingencies must be categorized.

The total value of contracts must be disclosed, specifying those that individually represent more than 10% of the global value of the same, indicating the nature, type of service or good acquired or committed, validity period of the offer, form or procedure of selection, special conditions, relationships with companies or entities that have a direct or indirect relationship, and others that are considered important. Likewise, the effects that have been registered in the results of each exercise for the services or goods acquired or committed must be indicated.

When there are contracts for operating leases, the following must be disclosed:
a) The total minimum lease payments for periods of up to one year; between one and five years and more than five years; and b) Description of the significant conditions of the contract.

Additionally, other commitments assumed by the Administrator must be disclosed, even if they do not represent a contingency for it. To the extent possible, the estimation of the financial effects, an indication of the uncertainties related to the amount, as well as the possibility of obtaining eventual reimbursements, must be disclosed.

In cases where the information required in this note is not disclosed, the reasons preventing its disclosure must be mentioned.

NOTE 32. CONTROL ACCOUNTS
The balances of the control accounts must be detailed, briefly describing their nature and composition.

NOTE 33. RELEVANT EVENTS (SSA)
All other clarifications or additional explanations that are considered necessary and/or required by the Central Bank or International Accounting Standards, for an adequate interpretation of the financial statements, must be included.

Examples of essential facts that must be disclosed are:
a) Changes occurred in the Board of Directors and Administration, in such cases, the substitutes and the substituted must be mentioned. b) Discontinued operations, indicating the date on which the event occurred. c) Changes in share ownership, indicating the amounts and quantity of shares. d) Reclassification of liabilities.

e) Gains or losses on sale of properties, plant and equipment, other assets, and subsidiaries. f) Losses originated by accidents. g) Significant changes in administration plans. h) Effects of contracts (leases, advertising, services, etc.) i) Mergers and liquidations of related companies. j) Accounting changes produced by modifications in the regulatory framework or other provisions that affect policies established in previous periods. k) Modifications in commission percentages for fund administration. l) Other circumstances that affect the operations of the AFP.

NOTE 34. EVENTS AFTER THE REPORTING PERIOD (SSA) Events and/or transactions occurring after the close of the reported period that affect or may significantly affect the financial and equity position of the Administrator must be described and quantified, reflecting the nature of the event and an estimate of its financial effects, or a statement regarding the impossibility of making such an estimate.

NOTE 35. INCOME FROM PENSION FUND ADMINISTRATION (FAPV) The amount of income obtained during each fiscal year from commissions must be detailed under the following concepts:

Concept	20X2	20X1
Administration
Commercialization	______	______
Total	______	______

CHAPTER V
OTHER PROVISIONS AND EFFECTIVE DATE

SANCTIONS
Non-compliance with the provisions contained in this Manual shall be sanctioned in accordance with the Financial System Supervision and Regulation Law.
REPEAL
This Manual repeals the following Instructions:
a) INSTRUCTION No. SAP 05/2003 “ACCOUNTING MANUAL FOR PENSION FUND ADMINISTRATING INSTITUTIONS”, approved on October 27, 2003, by the Superintendent of the Pension Superintendence, whose Organic Law was repealed by Legislative Decree number 592 containing the Financial System Supervision and Regulation Law, published in Official Diary number 23 Volume 390 dated February 2, 2011. b) INSTRUCTION No. SAP 02-98 “PREOPERATIVE EXPENSES FOR PENSION FUND ADMINISTRATORS”, approved on January 27, 1998, by the Superintendent of the Pension Superintendence, whose Organic Law was repealed by Legislative Decree number 592 containing the Financial System Supervision and Regulation Law, published in Official Diary number 23 Volume 390 dated February 2, 2011.
TRANSITIONAL PROVISIONS
The provisions in Section 7 Accounting Records and Archives of Chapter I General Provisions of this Manual shall be mandatory for Administrators, starting from the repeal by the President of the Republic of the Regulation of Accounting Standards for Pension Fund Administrating Institutions and Pension Funds, issued via Decree No. 18 dated February 11, 1998, published in Official Diary No. 40, Volume 338, on February 27, 1998.
UNFORESEEN ASPECTS
Aspects not foreseen in the matter of regulation in this Manual shall be resolved by the Central Bank through its Standards Committee.

EFFECTIVE DATE
This Manual shall enter into force starting March 1, 2023.

MODIFICATIONS:
(1) Modifications in the Table of Institutions of the Financial System and Foreign, incorporating Other Financial System Institutions and Investment Fund Managers, approved by the Central Bank of El Salvador through its Standards Committee, in accordance with the procedure established in the third clause of section 6 of Chapter I “GENERAL PROVISIONS” of the Accounting Manual for Pension Fund Administrators (NSP-42), effective as of August 29, 2023. (2) Modifications in the Table of Institutions of the Financial System and Foreign, incorporating into Other Financial System Institutions the Savings and Credit Society Multimoney, approved by the Central Bank of El Salvador through its Standards Committee, in accordance with the procedure established in the third clause of section 6 of Chapter I “GENERAL PROVISIONS” of the “Accounting Manual for Pension Fund Administrators” (NSP-42), effective as of January 6, 2025. (3) Modifications in the Table of Institutions of the Financial System and Foreign, incorporating into the Banks line Banco Apoyo Integral, S.A., approved by the Central Bank of El Salvador through its Standards Committee, in accordance with the procedure established in the third clause of section 6 of Chapter I “GENERAL PROVISIONS” of the “Accounting Manual for Pension Fund Administrators” (NSP-42), effective as of January 29, 2025. (4) Modifications in the Table of Institutions of the Financial System and Foreign and in accounts 115.00 Repo Operations, 121.00 Negotiable Investments; 122.00 Investments available for sale and 123.00 Investments to be held until maturity, approved by the Central Bank through its Standards Committee, in Session No. CN-03/2025, on May 30, 2025, effective as of June 16, 2025. (5) Modifications in the Table of Institutions of the Financial System and Foreign, incorporating into Other Financial Institutions the Cooperative Banks Primer Banco de los Trabajadores, S.C. de R.L. de C.V. and the Savings and Credit Cooperative Association of the Medical College of El Salvador de R.L., approved by the Central Bank of El Salvador through its Standards Committee, in accordance with the procedure established in the third clause of section 6 of Chapter I “GENERAL PROVISIONS” of the “Accounting Manual for Pension Fund Administrators” (NSP-42), effective as of August 27, 2025.

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-11/2022
NSP-42
ACCOUNTING MANUAL FOR PENSION FUND ADMINISTRATORS Approval: 12/30/2022 Effective Date: 03/01/2023 (6) Modifications in sub-section 7.3 Presentation and publication of Financial Statements, third clause, and in sub-section 7.5 Presentation of Financial Statements to the Superintendence, sixth clause, approved by the Central Bank through its Standards Committee, in Session No. CN-02/2026, on February 26, 2026, effective as of March 13, 2026.

Accounting Manual for Pension Fund Administrators

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