The Monetary Board, in its Resolution No. 494 dated June 2, 1992, decided to amend the account œDeferred Charges  in the Manual of Accounts for commercial and thrift banks, so as to read as follows:

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