Regulatory Alerts2025-06-30 | NCF-11Accounting Manual for Asset Securitization Companies
The Standards Committee of the Central Reserve Bank of El Salvador issued the Accounting Manual for Asset Securitization Companies to establish uniform technical accounting treatments and financial reporting standards. The regulation mandates that securitization companies maintain separate accounting records for each securitization fund and adhere to International Financial Reporting Standards for the preparation and presentation of financial statements. It further defines the chart of accounts structure, internal control requirements, and the procedures for submitting systems and monthly trial balances to the Superintendency of the Financial System.
Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador. Tel. (503) 2281-8000 www.bcr.gob.sv Page 1 of 116 CNBCR-05/2025 NCF-11 ACCOUNTING MANUAL FOR ASSET SECURITIZATION COMPANIES Approval: 30/06/2025 Effective: 15/07/2025
THE COMMITTEE OF STANDARDS OF THE CENTRAL RESERVE BANK OF EL SALVADOR,
CONSIDERING:
I. That by Legislative Decree No. 470, of November 15, 2007, published in Official Diary No. 235, Volume 377, of December 17 of the same year, the Asset Securitization Law was approved.
II. That Article 24, letter c) of the Asset Securitization Law establishes that it shall be the responsibility of the Securitization Company to maintain separate accounting records for each Securitization Fund it constitutes, independent of the accounting corresponding to the Securitization Company itself.
III. That Article 4, letter c) of the Law on Supervision and Regulation of the Financial System establishes that the Superintendency of the Financial System has among its powers to carry out individual and consolidated supervision of the members of the financial system, as well as the supervision of other regulated subjects.
IV. That Article 7, letter q) of the Law on Supervision and Regulation of the Financial System establishes that Securitization Companies are subject to the provisions of said Law and therefore to the supervision of the Superintendency of the Financial System.
V. That Article 35, letter f) of the Law on 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.
VI. That Article 99, letter c) of the Law on Supervision and Regulation of the Financial System establishes that it corresponds to the Committee of Standards of the Central Reserve Bank to approve the Technical Standards for the preparation, presentation, and disclosure of Financial Statements and supplementary information of the members of the financial system; to determine the accounting obligations and the principles in accordance with which they must keep their accounting; and to establish criteria for the valuation of assets, liabilities, and the creation of provisions and reserves for risks.
VII. That in accordance with Article 101, fourth paragraph of the Law on Supervision and Regulation of the Financial System, the powers to approve, modify, and repeal technical norms that must be complied with by the members of the financial system and other supervised entities are transferred to the Central Reserve Bank of El Salvador.
Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador. Tel. (503) 2281-8000 www.bcr.gob.sv Page 2 of 116 CNBCR-05/2025 NCF-11 ACCOUNTING MANUAL FOR ASSET SECURITIZATION COMPANIES Approval: 30/06/2025 Effective: 15/07/2025
THEREFORE,
by virtue of the regulatory powers conferred upon it by Article 99 of the Law on Supervision and Regulation of the Financial System, AGREES to issue the following: ACCOUNTING MANUAL FOR ASSET SECURITIZATION COMPANIES