Reclassification of Financial Assets Between Categories

October 23, 2008

BSP CIRCULAR NO. 626-08

SUBJECT : Reclassification of Financial Assets Between Categories

The Monetary Board, in its Resolution No. 1388 dated 23 October 2008 approved the following guidelines governing the reclassification of investments in debt and equity securities between categories:

Financial institutions shall be allowed to reclassify their investments in debt and equity securities from the Held for Trading (HFT) or Available for Sale (AFS) categories to the Held to Maturity (HTM) or Unquoted Debt Securities Classified as Loans (UDSCL) categories, subject to the following conditions: ASHaDT

(1) The reclassification shall be done in accordance with the provisions of the October 2008 amendments to the International Accounting Standards (IAS) 39: Financial Instruments: Recognition and Measurement and International Financial Reporting Standards (IFRS) 7: Financial Instruments: Disclosures;

(2) Financial assets that are reclassified from HFT/AFS to HTM/UDSCL shall thereafter be treated in accordance with the guidelines provided under Appendix 33 of the Manual of Regulations for Banks and Appendix Q-20 of the Manual of Regulations for Non-Bank Financial Institutions on the Classification, Accounting Procedures, Valuation and Sales and Transfers of...

AIC Grande Tower Garnet Road
Ortigas Center, Pasig City
Metro Manila Philippines

Mobile No. +639451244898
digestph@gmail.com
Please read our FAQ before contacting us.