Regulatory Alerts2016-11-15
Added · Updated
BCEAO Instruction No. 025-11-2016 on the Accounting Treatment of Foreign Currency and Similar Asset Operations
This instruction establishes the accounting rules for foreign currency and similar asset operations for banks and financial institutions in the UMOA region. It mandates that foreign currency transactions be recorded in specific balance sheet and off-balance sheet accounts, with valuation at market rates during accounting closures. Differences arising from valuation are generally recognized in the income statement, except for state-guaranteed risks or illiquid currencies, which are recorded in balance sheet equity accounts. Hedging operations are exempt from standard valuation rules and are evaluated symmetrically to the covered elements, with interest differences amortized over the operation's duration.
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