BSP CIRCULAR LETTER, June 23, 1992
AMENDMENT TO THE MANUAL OF ACCOUNTS ON “DEFERRED CHARGES”
Deferred Charges. This represents expense prepayments expected to benefit the bank for a future period exceeding one (1) year. Included in this account, among others, are:
a. Organization expenses representing pre-operating or start-up costs incurred by the bank in its establishment;
b. Premium paid on acquisition of shares which is the excess of the total amount paid over the book value of the shares acquired;
c. Amount paid for franchises or for the right to operate closed banks or new bank branches; and
d. Rent paid in advance.
Organization expenses, premium paid on acquisition of shares, and amounts paid for franchises may be charged in full to operations or amortized monthly over a period not exceeding five (5) years. Rent paid in advance and the like may be amortized monthly or in accordance with the covering agreement, if any.”
Adopted: 23 June 1992
Acting Deputy Governor