Regulatory Alerts2018-12-04 | CD-SIBOIF-1087-5-DIC4-2018Norm Reforming Articles 4 and 5 of the Standard on the Accounting of Financial Commissions
The Board of Directors of the Superintendence of Banks and Other Financial Institutions issued Resolution No. CD-SIBOIF-1087-5-DIC4-2018 to amend the accounting treatment of financial commissions for banks and financial entities. The reform mandates that commissions be recognized over the loan's life using the effective interest method, with specific provisions for direct cost compensation and immediate recognition upon loan sale. These updated provisions became effective for financial reporting starting January 1, 2019.
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