MORNBFI Vol. 1 - Planters Development Bank

§§ 4424Q - 4425Q.309.12.31obtaining the tax-exemption certificationswhich may be required by the BIR for theinterest-bearing instruments where the CTFs,individual trust funds and investmentmanagement funds will be invested.Likewise, the banks shall ensure that thecorrect amount of final tax on the interestincome on the interest-bearing instrumentsis withheld/deducted from the proceedsfrom the CTF participation, trust orinvestment management account andremitted to the BIR in the event said taxbecomes due such as when funds arewithdrawn before the required five (5)-yearholding period or when corporationshappen to invest in the tax-exempt trustinstruments created within the purview ofR.A. No. 8424.Sec. 4425Q Reports Required§ 4425Q.1 To trustor, beneficiary,principal. Every institution acting as trustee,fiduciary or investment manager shall renderreports on the trust, other fiduciary or IMAsto the trustor, beneficiary, principal or otherparty in interest or the court concerned orany party duly designated by the court order,as the case may be, under the followingguidelines:a. The reports shall be in such formsas to apprise the party concerned of thesignificant developments in theadministration of the account and shallconsist of:(1) A balance sheet;(2) An income statement;(3) A schedule of earning assets of theaccount; and(4) An investment activity report;b. Items (3) and (4) above shall includeat least the following:(1) Name of issuer or borrower;(2) Type of instrument;(3) Collateral, if any;(4) Amount invested;(5) Earning rate or yield;(6) Amount of earnings;(7) Transaction date; and(8) Maturity date;c. The reports shall be prepared insuch frequency as required under theagreement but shall not in any case be longerthan once every quarter; andd. The reports shall be made availableto clients not later than twenty (20) calendardays from the end of the reference date/period in Item “c” above.§ 4425Q.2 To the Bangko SentralAn institution acting as trustee, fiduciary orinvestment manager shall submit periodicreports prescribed by the appropriatedepartment of the SES on the institution’strust and other fiduciary business andinvestment management activities withinthe deadline indicated in Appendix Q-3.§ 4425Q.3 Audited financial statementsThe trust/investment managementdepartment of an institution shall adopt theprovisions of the Philippine FinancialReporting Standards (PFRS)/PhilippineAccounting Standards (PAS) in all respect,for purposes of preparing the AFS of its trustand other fiduciary and investmentmanagement activities. The followingguidelines shall likewise be observed in thepreparation of the AFS:(a) The provisions of PFRS/PAS shall beadopted effective the annual financialstatements beginning 01 January 2008;(b) A complete set of financialstatements shall comprise of the following:(1) Balance sheet as of the end of theperiod;(2) Income statement for the period;(3) Statement of changes inaccountabilities, which shall show areconciliation of the net carrying amount atthe beginning and end of the period of thefollowing accounts:(i) principal;(ii) accumulated income; andQ RegulationsPart IV - Page 38Manual of Regulations for Non-Bank Financial Institutions