Timing for Booking ROPA Under Different Acquisition Modes
- ROPA in settlement of loans through foreclosure or dation in payment must be booked under the ROPA account as follows:
- Judicial Foreclosure: Upon entry of judgment.
- Extrajudicial Foreclosure: Upon execution of the Sheriff's Certificate of Sale.
- Dation in Payment (dacion en pago): Upon notarization of the Deed of Dacion in Payment.
Initial Booking Amount and Components
- Initial booking shall be at the carrying amount of the loan which includes:
- Outstanding loan balance.
- Adjustments for any unamortized premium or discount.
- Less allowance for credit losses computed based on PAS 39 provisioning requirements, considering the fair value of the collateral.
- Additions to the carrying amount:
- Booked accrued interest.
- Transaction costs upon acquisition such as non-refundable capital gains tax and documentary stamp tax.
Independent Appraisal Requirement
- If the carrying amount of ROPA exceeds P5 million:
- An appraisal must be conducted by an independent appraiser acceptable to the Bangko Sentral ng Pilipinas (BSP).
Effectivity of the Circular
- The amendment takes effect fifteen (15) calendar days after publication.
- Publication must be in the Official Gazette or in a newspaper of general circulation.
Legal Authority and Adoption
- Issued under the authority of the Monetary Board.
- Adopted on January 12, 2007.
- Signed by Governor Amando M. Tetangco, Jr.