Norm for the Implementation of the Accounting Framework for General Warehouses

Page 1 of 3 Resolution No. CD-SIBOIF-1026-1-NOV10-2017 Dated November 10, 2017

NORM FOR THE IMPLEMENTATION OF THE ACCOUNTING FRAMEWORK FOR GENERAL WAREHOUSES

The Board of Directors of the Superintendence of Banks and Other Financial Institutions,

CONSIDERING

I

That Article 10, numeral 1, of Law No. 316, Law of the Superintendence of Banks and Other Financial Institutions, published in La Gaceta, Official Gazette No. 196, of October 14, 1999, and its amendments, establishes that it is the responsibility of the Board of Directors of the Superintendence of Banks and Other Financial Institutions to issue general norms to strengthen and preserve public security and confidence in institutions under the supervision, oversight, and audit of the Superintendence of Banks and Other Financial Institutions.

II

That by Resolution No. CD-SIBOIF-465-2-FEB7-2007, dated February 7, 2007, published in the Gaceta, Official Gazette No. 68, of April 12, 2007, the "Single Chart of Accounts Manual for General Warehouses" was approved.

III

That it is necessary to update the aforementioned accounting framework based on International Financial Reporting Standards (IFRS), which are globally recognized and based on reasonably articulated principles, and on the norms issued by this Superintendence, applicable to the aforementioned institutions.

IV

That in accordance with the considerations expressed above and based on the authority established in Article 3, numeral 13) of Law No. 316, Law of the Superintendence of Banks and Other Financial Institutions, and its amendments.

In exercise of its powers,

HAS ISSUED

The following:

Resolution No. CD-SIBOIF-1026-1-NOV10-2017 NORM FOR THE IMPLEMENTATION OF THE ACCOUNTING FRAMEWORK FOR GENERAL WAREHOUSES

CHAPTER I CONCEPTS, OBJECT, AND SCOPE

Article 1. Concepts.- For the purposes of this norm, the terms indicated in this article, both in uppercase and lowercase, singular or plural, shall have the following meanings:

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a) Warehouses: General Warehouses subject to the supervision of the Superintendence of Banks and Other Financial Institutions. b) Accounting Framework: Uniform system of accounting records for General Warehouses, which allows the financial statements they prepare to be presented in a homogeneous manner and to adequately reflect their financial, equity, and management results. c) Superintendence: Superintendence of Banks and Other Financial Institutions. d) Superintendent: Superintendent of Banks and Other Financial Institutions.

Article 2. Object and Scope.- This norm aims to approve the "Accounting Framework for General Warehouses," based on: International Financial Reporting Standards (IFRS); and on the norms issued by the Superintendence, applicable to General Warehouses; which is contained in the Annex of this norm, being an integral part of it.

CHAPTER II PHASES OF IMPLEMENTATION OF THE ACCOUNTING FRAMEWORK

Article 3. Guidelines for Implementation. Warehouses must implement the Accounting Framework during a transition period from January 1 to December 31, 2018, in order to establish comparability with the 2019 period; and its adoption from January 1, 2019;

Article 4. Progress Reports on Activities for Implementation of the Accounting Framework. Warehouses must report, upon request of the Superintendent, the progress of implementation activities, both for their transition period and for their adoption.

CHAPTER III RESPONSIBILITIES OF THE BOARD OF DIRECTORS

Article 5. Responsibilities of the Board of Directors. The Board of Directors of the Warehouses shall have, among others, the following responsibilities: a) Approve the implementation plan of the accounting framework; b) Approve changes or adjustments to their manuals, policies, operational procedures, models, internal control, and other topics related to the Accounting Framework established in this norm; c) Guarantee the human, technological, financial, and other resources necessary for the adoption of the Accounting Framework; and d) Ensure that the implementation activities of the Accounting Framework are carried out in a timely and proper manner to ensure compliance with what is established in this norm.

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CHAPTER IV EXCLUSIONS AND TRANSITIONAL ADJUSTMENTS

Article 6. Exclusions. While there is no express authorization from the Superintendent and regulatory provisions on this matter, Warehouses shall not carry out operations with financial derivative instruments within the Accounting Framework.

Warehouses may only carry out operations that the corresponding law or regulation permits them to do, complying with the respective procedures when the law indicates that some operation requires the authorization of the Superintendent.

Article 7. Transitional Adjustments.- Adjustments generated by the first-time application of the accounting framework and recorded as transitional adjustments may only be recognized as accumulated results when the asset or liability that generated them has been realized (sold, received, or paid all cash flows), excepting from the aforementioned indication, adjustments for the following operations: labor indemnification and gains from sales with financing of adjudicated assets; such adjustments must be recognized in accumulated results.

CHAPTER V FINAL PROVISIONS

Article 8. Authority of the Superintendent. The Superintendent is authorized to approve changes or modifications that prove necessary for the adaptation and updating of the annex of this norm; being able to issue additional instructions for the correct application thereof, informing the Board of Directors of the Superintendence.

Article 9. Repeal. The Norm on the Single Chart of Accounts Manual for General Warehouses, contained in Resolution No. CD-SIBOIF-465-2-FEB7-2007, dated February 7, 2007, published in the Gaceta, Official Gazette No. 68, of April 12, 2007, is repealed effective January 1, 2019.

Article 10. Validity.- This norm shall enter into force upon its notification, without prejudice to its publication in La Gaceta, Official Gazette. The Accounting Framework annexed to this norm is exempt from said publication, and it will be available on the website of the Superintendence. (f) S. Rosales (f) V. Urcuyo V. (f) Gabriel Pasos Lacayo (f) Fausto Reyes B. (f) illegible (Silvio Moisés Casco Marenco) (f) illegible (Freddy José Blandón Argeñal) (f) illegible (José Edelberto Zelaya Castillo) Ad Hoc Secretary.

EDELBERTO ZELAYA CASTILLO Ad Hoc Secretary SIBOIF Board of Directors