MORNBFI Vol. 1 - Planters Development Bank

APP. Q-2608.12.31INVESTMENT HOUSES AND FINANCING COMPANIES (IH/FC)WITH QUASI-BANKING FUNCTIONS[Appendix to Subsec. 4601Q.2 (2008 - 4602Q.1)]REVERSE REPURCHASE AGREEMENTS WITH BSPPRO-FORMA ACCOUNTING ENTRIES1. To record the purchase by IH/FC from BSP of government securities under reverseREPO agreement.DR Trading Account Securities – Loans- Government Securities Purchased under Reverse RepurchaseAgreements with BSPCRDue from BSP (or any appropriate account)2. To record the subsequent sale by IH/FC of reverse REPO with BSP to clientsDR Cash (or any appropriate account)CRBills Payable – Others- Reverse Repurchase Agreements with BSP Sold to Clients3. To record payment of client’s claim on the IH/FCDR Bills Payable – Others- Reverse Repurchase Agreements with BSP Sold to ClientsDR Interest Expense on Borrowed Funds – Bills Payable – OthersCRCash (or any appropriate account)4. To record BSP’s payment of the reverse REPO agreementDR Due from BSP (or any appropriate account)CRCRTrading Account Securities – Loans- Government Securities Purchased under Reverse RepurchaseAgreements with BSPInterest Income – Trading Account Securities - LoansManual of Regulations for Non-Bank Financial InstitutionsQ RegulationsAppendix Q-26 - Page 1