(NAR) VOL. 11 NO.1 / JANUARY – MARCH 2000
The Monetary Board, in its Resolution No. 71 dated January 21, 2000,
decided to allow the amortization of goodwill up to a maximum period of
forty years as an additional incentive for mergers/consolidation,
purchase or acquisitions of majority or all of the outstanding shares of
stocks of a bank under Circular No. 172, which is consistent with the
generally accepted accounting principles for intangible assets under
Accounting Standards Council's SFAS No. 9, provided that the 40 years is
a maximum period and unless there are compelling reasons to extend for
this long, the amortization period shall not be longer than 10 years.
This Circular shall take effect immediately.
Adopted: 3 Feb. 2000
(SGD.) AMANDO M. TETANGCO, JR.
Officer-In-Charge