November 15, 2018
BSP CIRCULAR NO. 1021-18
| SUBJECT | : | Guidelines on Marking to Market of Financial Instruments |
The Monetary Board, in its Resolution No. 1848 dated 8 November 2018, approved the guidelines on marking to market of financial instruments to align existing regulations with the provisions of Philippine Financial Reporting Standards 13 on Fair Value Measurement.
SECTION 1. Subsection X191.4 on "Accounting treatment of financial securities" of the Manual of Regulations for Banks (MORB), Section 4391N and Subsection 4388Q.5 on "Investments in debt and marketable equity securities" of the Manual of Regulations for Non-Bank Financial Institutions (MORNBFI) are hereby amended to read, as follows:
"Section 4391N/Subsec. X191.4/4388Q.5. Marking to market of financial instruments. — Financial instruments that are required to be classified and measured at fair value, within the scope of Philippine Financial Reporting Standards (PFRS) 9 under Appendix 33/Q-20, shall be marked-to-market in accordance with the provisions of PFRS 13 on Fair Value Measurement and the related rules and regulations issued by the Securities and Exchange Commission. The marked-to-market guidelines for debt and equity securities are set out in Appendix...
