MORNBFI Vol. 1 - Planters Development Bank

§§ 4425Q.3 - 4426Q.109.12.31(iii) net unrealized gains/(losses) onavailable for sale financial assets, separatelydisclosing the changes in each of theforegoing accounts;(4) Notes, which shall comprise of asummary of significant accounting policiesand other disclosure requirements providedunder PFRS/PAS: Provided, That forpurposes of complying with the disclosureof the nature and extent of risks arising fromfinancial instruments as required underPFRS 7, disclosure statements may be madebased on the general categories ofcontractual relationships (i.e., UITF-trust,institutional-trust, and individual-trust; otherfiduciary; institutional-agency, andindividual-agency; and special purpose trust)of the trust/investment managementdepartment of a bank with its clients; and(5) Balance sheet as at the beginningof the earliest comparative period when atrust/investment management departmentapplies an accounting policy retrospectivelyor when it makes a retrospectiverestatement of items in the financialstatements, or when it reclassifies items inthe financial statements.(c) The balance sheet, incomestatement and statement of changes inaccountabilities shall be presented for eachof the general categories of contractualrelationships (i.e., UITF-trust, institutionaltrust,and individual-trust; other fiduciary;institutional-agency, and individual-agency;and special purpose trust) of the trust/investment management department of aninstitution with its clients;(d) Comparative information forperiods before 01 January 2008 need notbe presented in the AFS for the financialreporting period beginning 01 January 2008:Provided, That disclosure statements on theend-2007 balances of total assets of thegeneral categories of contractualrelationships of the trust/investmentmanagement department of an institutionwith its clients prepared based on theGenerally Accepted Accounting Principles(GAAP) previously applied, shall bepresented in the notes to financialstatements: Provided, further, Thatcomparative periods shall be presented inthe AFS for the financial reporting periodbeginning 01 January 2009 and thereafter.(e) The following transitory rules andregulations shall govern the accountingtreatment of specific items for purposes ofpreparing the AFS for the financial reportingperiod beginning 01 January 2008:(1) The provisions of PFRS/PAS shallonly be applied to accounts outstanding asof end-December 2008;(2) Reclassification of previouslyrecognized financial instruments shall nolonger be allowed except as allowed underexisting regulations; and(3) The fair value of ROPA andInvestment Properties as of the date oftransition to PFRS/PAS may be used as thedeemed cost of said properties as of thatdate: Provided, That said ROPA andInvestment Properties shall be subsequentlyaccounted for in accordance with theprovisions of the FRPTI.(Circular No. 653 dated 05 May 2009)Sec. 4426Q Audits§ 4426Q.1 Internal audit. Theinstitution’s internal auditor shall includeamong his functions, the conduct ofperiodic audits of the trust department orinvestment management department atleast once every twelve (12) months. Theboard of directors, in a resolution enteredin its minutes, may also require theinternal auditor to adopt a suitablecontinuous audit system to supplementand/or to replace the periodic audit. In anycase, the audit shall ascertain whether theinstitution’s trust and other fiduciarybusiness and investment managementManual of Regulations for Non-Bank Financial InstitutionsQ RegulationsPart IV - Page 39