Regulatory Alerts2007-02-28 | CD-SIBOIF-468-2-FEBR28-2007Added · Updated
Norm on the Accounting of Financial Commissions
This regulation establishes uniform accounting practices for financial commissions charged in advance by banks and financial societies to compensate for direct loan origination costs. It mandates that such commissions be deferred and recognized as income over the life of the loan using the effective interest method, with specific provisions for immediate recognition upon loan sale, early repayment, default, or write-off. The rules apply to new credit operations conducted on or after January 1, 2008.
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