Instruction No. 23-11-2016 on the Initial Application Procedures for the UMOA Revised Banking Chart of Accounts

The Governor of the Central Bank of West African States (BCEAO), Having regard to the Treaty of the West African Monetary Union (UMOA) dated January 20, 2007, particularly Article 34; Having regard to the Statutes of the Central Bank of West African States (BCEAO), annexed to the UMOA Treaty dated January 20, 2007, particularly Articles 30, 31, 32, 33 and 34; Having regard to the Uniform Law on Banking Regulation, particularly Articles 50, 51, 52, 53 and 54; Having regard to Decision No. 357-11-2016 of November 15, 2016 establishing the Revised UMOA Banking Chart of Accounts (PCB), RESOLVES

Article 1
Banks and financial institutions with a banking character, hereinafter referred to as credit institutions, shall apply the provisions of this Instruction in their first annual and semi-annual financial statements, prepared in accordance with the Revised UMOA Banking Chart of Accounts (PCB) and its implementation Instructions. The first financial statements relate to the 2018 fiscal year.

Article 2
Until December 31, 2017 inclusive, credit institutions shall prepare their financial statements according to the UMOA Banking Chart of Accounts dated August 16, 1994, which entered into force on January 1, 1996. However, following the entry into force of the PCB and for comparability between the 2017 and 2018 fiscal years, credit institutions must restate their financial statements for the 2017 fiscal year in accordance with the PCB. To this end, they are required to prepare an opening balance sheet and off-balance sheet statement as of January 1, 2017 (the transition date).

Avenue Abdoulaye FADIGA
BP 3108 – Dakar - Senegal
Tel.: (221) 33 839 05 00 / Fax: (221) 33 823 93 35 www.bceao.int INSTRUCTION NO. 023-11-2016 ON THE MODALITIES FOR INITIAL APPLICATION OF THE REVISED UMOA BANKING CHART OF ACCOUNTS The Governor

Article 3
In application of Article 2 above, credit institutions shall apply the same accounting methods in the opening balance sheet and off-balance sheet statement as of January 1, 2017 and for the financial statements of the 2018 fiscal year. In this context, credit institutions must:
– recognize all assets, liabilities and off-balance sheet commitments required by the PCB; – refrain from recognizing elements as assets, liabilities or off-balance sheet commitments if the PCB does not authorize such recognition; – where applicable, reclassify according to the PCB elements recognized as a certain type of asset, liability, equity component or off-balance sheet commitment; – apply the PCB to evaluate all recognized assets, liabilities and off-balance sheet commitments.

Article 4
The accounting methods used by credit institutions in their opening balance sheet and off-balance sheet statement must comply with the PCB.
Adjustments resulting from method differences, which relate to transactions prior to January 1, 2017, are recognized directly in retained earnings or another equity category at the transition date referred to in Article 2 above.

Article 5
The annual financial statements of credit institutions for the 2018 fiscal year, prepared in accordance with the PCB, shall also include:
– the opening balance sheet and off-balance sheet statement referred to in Article 2 above, as well as the closing balance sheet and off-balance sheet statement for 2017; – the income statement for the 2017 fiscal year prepared according to the provisions of this PCB. Credit institutions must, furthermore, explain the impact of the transition on their financial statements. A credit institution that has not produced financial statements for the 2017 fiscal year shall mention this in its 2018 financial statements.

Article 6
In the context of financial statements to be prepared at the end of the first semester of the 2018 fiscal year, credit institutions are not required to prepare comparative information relating to the first semester of the 2017 fiscal year.

Article 7
This Instruction repeals and replaces all prior provisions contrary to the same subject matter.
It enters into force on January 1, 2018 and shall be published where necessary.

Done in Dakar, on November 15, 2016
Tiémoko Meyliet KONE