Accounting Manual for the Deposit Guarantee Institute

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-10/2025
NCF-14
ACCOUNTING MANUAL FOR THE DEPOSIT GUARANTEE INSTITUTE Approval: 12/17/2025 Validity: 01/01/2026

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

CONSIDERING:
I. That article 81, fourth paragraph, of the Law for the Stability of the Financial System and Deposit Guarantee establishes that the Technical Standards regulating the Accounting Manual and Catalog according to the nature of the Institute shall be issued by the Central Bank through its Standards Committee.
II. That article 86 of the Law for the Stability of the Financial System and Deposit Guarantee establishes that the Superintendence shall be responsible for the supervision of the Institute in accordance with its nature as guarantor of deposits, regarding the banking resolution process and guarantee payment.
III. That article 7, letter r), of the Law for the Supervision and Regulation of the Financial System establishes that the Deposit Guarantee Institute shall be subject to the provisions of this Law and therefore to the supervision of the Financial System Superintendence.
IV. That article 35, letter f), of the Law for the Supervision and Regulation of the Financial System establishes that it is the obligation of the supervised entities to adequately disclose the economic and financial reality, and to have the backing of their internal and external audits.
V. That article 99, letter c), of the Law for the Supervision and Regulation of the Financial System establishes that it is the responsibility of the Standards Committee of the Central Bank of Reserve to approve the Technical Standards for the preparation, presentation, and dissemination of Financial Statements and supplementary information of the members of the financial system; to determine accounting obligations and the principles according to which they must keep their accounts; and to establish criteria for the valuation of assets, liabilities, and the establishment of provisions and reserves for risks.

THEREFORE,

by virtue of the regulatory powers conferred by article 99 of the Law for the Supervision and Regulation of the Financial System,

AGREES to issue the following:
ACCOUNTING MANUAL FOR THE DEPOSIT GUARANTEE INSTITUTE

CONTENTS

CHAPTER I
GENERAL PROVISIONS
Comprises the general application provisions in the recording of operations of the Deposit Guarantee Institute.

CHAPTER II
FINANCIAL STATEMENTS AND THEIR PUBLICATION
Comprises the provisions relative to the submission of financial statements to the Financial System Superintendence and their publication.

CHAPTER III
ACCOUNT CATALOG
Comprises the list of accounts provided for the accounting of the respective operations.

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

CHAPTER V
FINANCIAL STATEMENTS
Includes the models of the financial statements.

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

CHAPTER I
GENERAL PROVISIONS

OBJECTIVE
This Accounting Manual aims to present in a uniform and homogeneous manner the accounting recording of the operations carried out by the Deposit Guarantee Institute. Thus constituting an essential tool for the integration of financial statements, which must faithfully reflect the financial situation, results of operations, and management, so that they constitute a useful instrument for the analysis of information and decision-making by the Deposit Guarantee Institute, the Financial System Superintendence, the Central Bank of Reserve of El Salvador, users of Institute services, and the general public.
SCOPE
The Manual consists of the General Provisions, Accounting Framework, Account Catalog, Accounting Applications Manual, and the models of the Financial Statements.
The subject obliged to comply with the provisions established in this Accounting Manual is the Deposit Guarantee Institute.
TERMS
For the purposes of this Accounting Manual, the terms indicated below have the following meaning:
a) Central Bank: Central Bank of Reserve of El Salvador; b) Member Entities: In accordance with article 88 of the Law for the Stability of the Financial System and Deposit Guarantee; c) Institute: Deposit Guarantee Institute; and d) Superintendence: Financial System Superintendence.
PROCESS OF OPERATIONS AND ACCOUNTING SYSTEM
4.1. Processing of Accounting Operations
The Institute may process its accounting operations by the means it deems convenient, provided it allows for their analysis and supervision. To this effect, the Institute must present the accounting system to the Superintendence to request its approval.

4.2. Accounting System
The accounting system consists of the methods and records established to identify, analyze, classify, record, and report the Institute's transactions.
It comprises:
a) The Account Catalog and Application Manual; b) Accounting records, supporting documents, and auxiliary records; c) The accounting processing involved from the initiation of a transaction until its inclusion in the Financial Statements; and d) The financial information process employed to prepare the Institute's Financial Statements, including estimates and disclosures of important data. The minimum information that the accounting system will contain, for purposes of presentation to the Superintendence, is as follows:

4.2.1. Description of the Accounting System
a) General information of the Institute: Name, Tax Identification Number (NIT), address, telephone, and other relevant information; b) Name and registration number of the external auditor; c) Accounting policies and procedures adopted, which consist of presenting the accounting policies and procedures that the Institute will use, in accordance with the minimum disclosures required in this Manual and the applicable International Financial Reporting Standards; and d) Description of the notes to the Financial Statements to be prepared, in accordance with the applicable International Financial Reporting Standards.

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

4.2.3. Description of Computerized Information Systems
a) Design of the computerized accounting system. The content of this letter comprises a description of the method of recording, operating, and generating accounting records; b) Description of modules; c) Description of databases; and d) Flowchart of modules and programs.

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

4.2.5. Additional Documentation
The following documentation must be attached in original and copy:
a) Source documentation to be used for the recording of operations, including income notes, expense notes, journal vouchers, among others; b) Formats of main books; c) Formats of auxiliary books; d) Technical and operation manual of the computer system; and e) User manual of the computer system. It must incorporate and describe, in addition to the accounting system, other computer systems that affect the Institute's accounting records.

MODIFICATION OF THE MANUAL
The coding and openings established in this Manual must be respected in their entirety; therefore, no new elements, headings, accounts, sub-accounts, sub-sub-accounts, and details different from those already established may be opened. Sub-analytical sub-sub-accounts may be added after the seventh (7th) digit, provided they correspond to the nature of the account from which they originate and to the degree and detail considered necessary for better recording and control of their operations. When an operation or transaction not foreseen in this Manual originates, the Institute shall communicate this to the Central Bank, attaching the accounting criteria it intends to use. Along with the proposal for accounting treatment, as well as the accounts to be used, it will describe the transaction or event, indicating its quantitative impact on the Financial Statements and the reasons that, in the judgment of the competent administrative body, justify the proposed treatment. The Central Bank will analyze the request and if the proposed accounting application is appropriate and implies a modification of the Manual, the corresponding regulatory process for its approval will be activated. Prior to the modification of the Manual, the Institute must account for the operation or transaction temporarily, in sub-accounts corresponding to the headings the entity has identified, and when the Central Bank approves the referred modification, the Institute must reclassify the transaction to the accounts that have been approved for such purposes.

RESPONSIBILITIES
6.1. Accounting Records
The administration is responsible for the recording of the Institute's operations, from the preparation of vouchers, documents, records, and files of transactions, to the formulation of the Financial Statements and other reports for their corresponding analysis, interpretation, and corresponding accounting consolidation when applicable. The Institute must define the profiles that the personnel it hires must meet to perform the accounting operations of the same, in order to carry out the activities and operations it performs efficiently and effectively.

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

SUBMISSION OF INFORMATION
7.1. Timeliness
The Institute will remit in the deadlines defined in this Manual the corresponding financial information. Lack of timeliness in the submission will be sanctioned in accordance with what is established in the Law for the Supervision and Regulation of the Financial System. The Institute must designate a responsible official (as well as its respective substitute) to give timely compliance to the information requirements established in this Manual to be sent to the Superintendence.

7.2. Frequency
7.2.1. Monthly and Annual Financial Information
The Institute must obligatorily present monthly financial information, which must be delivered to the Superintendence, within five (5) business days, counted from the last day of the reported month, except for those corresponding to the months of June and December of each year, which will be within the first ten (10) business days. The Annual Financial Statements, such as: Balance Sheet, Statement of Results, Statement of Changes in Equity, Statement of Cash Flows, and the notes to them, that are sent to the Superintendence, must be presented obligatorily with the signatures of the general accountant, president or legal representative, as well as with the signature of the external auditor and their corresponding seals. The Institute must communicate to the Superintendence the names, signatures, and positions of the persons authorized to sign the Financial Statements, within the first fifteen (15) business days of the appointment being made.

CLOSURE OF THE ECONOMIC YEAR
The economic and accounting period will comprise from January 1 to December 31 of each year.
RECORDS
9.1. Accounting Books
The movement and balance of accounts will be recorded in the main books and that of sub-accounts in auxiliary books considered necessary. The main financial books and records are:
a) Journal Book; b) Ledger Book; c) Financial Statements Book; d) Account Auxiliary Book; and e) Bank Book.
Accounting records must comply with what is established in the Code of Commerce.
In the Financial Statements Book, the Balance Sheet, the Statement of Results, the Statement of Cash Flows, the Statement of Changes in Equity, and the corresponding notes must be recorded.
The figures recorded in the main books and in the auxiliary books must be presented in absolute values including cents with two decimals.

9.2. Administrative Books
The Institute must keep and complete, in addition to the accounting books, the Book of Minutes of the Board of Directors.

INTERNAL CONTROL APPLIED TO RECORDS
The Institute will establish internal control systems directed to reasonably ensure the reliability of accounting records, as well as the correct integration of operations.
The internal control system may contain aspects such as:
a) Accounting records with the necessary detail of the characteristics of assets, liabilities, equity, income, and expenses, so that all the information contained in the different statements to be rendered can be clearly derived from them, which will maintain the necessary correlation both among themselves, when applicable, and with the accounting basis; b) Auxiliary detail of the composition of the balance of each of the accounting sub-accounts, in order to possess an adequate integration of the records; c) Independently of the accounts specified to form the Financial Statements, the details considered necessary for the preparation of the rest of the complementary informative statements will be established, developing thus an analytical accounting that provides sufficient information for the calculation of costs and yields of the different centers, business lines, or other aspects of interest for adequate management control; and d) The Institute will establish internal control systems directed to reasonably ensure the reliability of accounting records, as well as the correct integration of operations, in accordance with its accounting policies.
RECORDING AND ARCHIVING OF ACCOUNTING DOCUMENTATION
The operations registered in the books mentioned in numeral 9 must be backed by the corresponding documentation and comply with what is established in the Code of Commerce.
Operations will be recorded as they are effected, in such a way as to avoid unnecessary delays.
The Institute must archive the documentation that backs its operations, in chronological order, using the means it considers, provided that such means have all the security and control measures, including the Financial Statements prepared monthly and the Trial Balances. The storage time will be in accordance with what is regulated in the corresponding laws.
CONCEPTUAL FRAMEWORK OF ACCOUNTING
Accounting will be governed according to the following precedence:
a) Salvadoran legislation that establishes specific accounting treatments; b) Accounting Standards issued by the Central Bank through its Standards Committee; and c) International Financial Reporting Standards (IFRS), always adopting among the alternatives offered by these Standards the most prudent option and clearly revealing such situation in the notes to the financial statements, the above always provided that it does not contravene any provision contained in the Accounting Standards issued by the Standards Committee of the Central Bank.

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

12.1. Fair Presentation
Financial Statements must be drafted clearly, so that the information provided is understandable and useful for users in taking their economic decisions, must represent the fair image of the phenomena it intends to materialize, the equity, the financial situation, and the results of the Institute, in accordance with legal and regulatory provisions. The systematic and regular application of the requirements, principles, and accounting criteria included in the following paragraphs must lead to the Financial Statements representing the fair image of the equity, the financial situation, and the results of the Institute. To this effect, in the accounting of operations, attention will be paid to their economic reality and not only to their legal form. When it is considered that compliance with the requirements, principles, and accounting criteria included in this Manual is not sufficient to represent the fair image, the precise complementary information will be provided in the notes to the Financial Statements to achieve this objective. In those exceptional cases where such compliance is incompatible with the fair image that the Financial Statements must provide, such application will be considered inappropriate. In such cases, in the notes to the Financial Statements, this circumstance will be sufficiently reasoned and its influence on the equity, the financial situation, and the results of the Institute will be explained.

CHAPTER II
FINANCIAL STATEMENTS AND THEIR PUBLICATION

OBJECTIVE
Establish regulations that allow the preparation, presentation, and disclosure of basic financial statements in accordance with prudential requirements issued by the Standards Committee of the Central Bank of Reserve and IFRS, in order to provide users of financial statements with sufficient and timely financial information about the financial, economic, and legal situation of the Institute.
SCOPE
The models of financial statements that the Institute must use to present its financial information are established, which must be accompanied by a minimum framework of notes that the Institute must consider when making disclosures of relevant information for each line of the Balance Sheet, Statement of Results, and the other basic financial statements as applicable.
BASIC FINANCIAL STATEMENTS
The basic financial statements that must be prepared with reference to December 31 are: The Balance Sheet, the Statement of Results, the Statement of Changes in Equity, and the Statement of Cash Flows, according to Formats No. 1, 2, 3, and 4, and their respective notes that include a summary of the most significant accounting policies and estimates and other explanatory information.
NOTES
The Administration of the Institute must incorporate the notes to the financial statements it deems convenient. Likewise, it must incorporate the necessary notes to reveal the matters required by IFRS, where applicable.
The notes present information about the bases for the preparation of the financial statements and about accounting policies, supply narrative descriptions, and are an integral part of them, contain additional information, in detail, that complements the balances reflected in the financial statements.
SUBMISSION AND DISCLOSURE OF FINANCIAL STATEMENTS
Annual Financial Statements must be presented to the Board of Directors of the Institute for their respective authorization.
Such Financial Statements must be published only once during the first sixty days of each year, in two newspapers of national circulation or in two technological, digital, or virtual media, in accordance with the special legal regulation of the matter. Annual Financial Statements must be accompanied by the External Auditor's Report. Likewise, the Institute will prepare and present, to the Central Bank and to the Superintendence, the annual management report which will include the audited financial statements. The Institute must remit the Annual Financial Statements, their notes, and the corresponding external auditor's report to the Superintendence within the first sixty days of each year.

CHAPTER III
ACCOUNT CATALOG

DESCRIPTION OF THE CODIFICATION METHOD
The Account Catalog contains the basic accounts that are required for

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