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MANILA - The Bangko Sentral ng Pilipinas on Tuesday said it has deferred the implementation of rules that tightened the way banks classified their assets.
In a statement, the BSP said it will put off to 2015 enforcement of the Philippine Financial Reporting Standards 9, which should have been in place next year.
PFRS 9 is the local adoption of International Financial Reporting Standards 9, which replaces International Accounting Standards 39 on Financial Instruments: Recognition and Measurement.
The postponement stemmed from amendments issued by the International Accounting Standards Board. The Financial Reporting Standards Council adopted the same last December.
“The recent move is a reflection of the BSP’s commitment to continuously align existing regulations with globally accepted standards, to the greatest extent possible, as well as promote fairness, transparency and compatibility in financial reporting through the adoption of IFRS/International Accounting Standards,” the BSP said.
The tighter rules follow the BSP's move to prohibit the practice of easily transferring assets from one classification to another - for example, from assets held-to-maturity to available-for-sale.
Banks shift their assets from one classification to another to take advantage of changes in market conditions, but the BSP prohibition penalizes them for such indiscriminate reclassification.
The BSP said the deferral jibes with the Securities and Exchange Commission's move to do the same for entities it covers, as contained in SEC Memorandum Circular No. 3 dated May 28, 2012.
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