IT IS REGISTERED
Ministry of Justice
Republic of Uzbekistan
On December 17, 2004 No. 1434
of November 27, 2004 No. 25/8
About approval of "The instruction for financial accounting of fixed assets in banks of the Republic of Uzbekistan" in the new edition
1. Approve "The instruction for financial accounting of fixed assets in banks of the Republic of Uzbekistan" in the new edition, according to appendix.
2. This Instruction becomes effective after ten days from the moment of its state registration in the Ministry of Justice of the Republic of Uzbekistan.
3. Due to the entry into force of this Instruction in the new edition to declare invalid "The instruction for financial accounting of fixed assets in banks of the Republic of Uzbekistan" (reg. N 1201 of January 14, 2003).
Chairman of the Central bank F. M. Mullazhanov
"Is approved" by the resolution of Board of the Central bank of the Republic of Uzbekistan of November 27, 2004 No. 25/8
This Instruction is developed according to the laws of the Republic of Uzbekistan "About the Central bank of the Republic of Uzbekistan", "About banks and banking activity", "About financial accounting" and determines accounting treatment for fixed assets in commercial banks of the Republic of Uzbekistan according to International accounting standards.
1. In this Instruction the following basic concepts are applied:
fixed assets are tangible assets which:
a) are used in activities of bank in the course of provision of banking services, for leasing or for the administrative purposes;
b) it is supposed to use within more than one year.
Treat fixed assets: buildings, constructions, the equipment and devices, computers, furniture, computer facilities, vehicles, the land bought on rights to use, library stocks, objects of the alarm system and installation of telephones - irrespective of cost, the buildings which are not included in cost in case of construction, etc.;
original (actual) cost is the amount of actual costs on construction (construction or completion) or acquisition of fixed assets, including the paid taxes, the customs duties and charges, and also costs on delivery and installation, installation, commisioning and other expenses which are directly connected with reduction of asset in the working condition for its proper use. The original cost also includes initial presumable cost estimation on dismantle and elimination of asset or recovery of asset concerning what the bank assumes liability in case of acquisition of asset or as a result of operation of this object during the certain period not for the purposes of the main activities.
The original cost of fixed assets is periodically revaluated for reflection of their fair value for date of revaluation;
book value is the amount on which the asset is recognized the balance statement after deduction of accumulated depreciation and cumulative impairment losses;
salvage value is the estimated amount which the bank would receive at the moment from asset retirement after deduction of the estimated costs for disposal if the asset was already worn-out also in that condition which, as expected, it will have at the end of the term of useful service;
fair (actual) value is the current market value of asset or the cost determined by the estimative organization;
replacement cost is the cost of fixed assets taking into account revaluation in the balance sheet of bank;
the term of useful service is an expected (settlement) period of use of assets by bank or the number of works and services which the bank expects to receive from use of this asset;
depreciation (depreciation) is value term of depreciation in the form of systematic distribution and transferring of depreciable cost of asset to expenses of bank throughout the term of its useful service;
depreciable cost is the amount of initial (recovery) asset cost shown in financial statements less salvage value;
impairment loss - the amount on which the asset carrying amount exceeds its recoverable amount;
clean price of sales - the amount received from sale of asset in case of the transaction under general conditions between independent, informed and persons interested to make such transaction by the parties, less costs for disposal;
the cost (value) of use - the discounted cost of the expected future cash flows expected from continuation of use of asset and from its disposal at the end of its term of useful service;
2. Basic provisions in fixed asset accounting is determination of their book value and depreciation methods which shall be applied in relation to these assets, and also determination and accounting of changes of book value of fixed assets, procedure for depreciation and financial results from their disposal.
3. Fixed assets join in balance of bank as a result:
1) acquisitions for a fee;
2) obtaining by construction or reconstruction of objects;
3) non-paid obtaining or in the form of subsidy;
4) obtaining under the agreement of finance lease (leasing);
5) identification of excessive (unaccounted) fixed assets.
4. The fixed asset is recognized accounting entries of bank when its cost is reliably estimated.
5. The future economic benefits arriving from asset can include the proceeds from sales of services, economy of costs and other benefits which are result of use of asset by bank.
6. Fixed asset accounting, acquired by bank for the purpose of financial leasing, is regulated by the separate regulatory legal act of the Central bank of the Republic of Uzbekistan.
7. The fixed assets acquired for a fee are reflected in balance on their original cost.
8. The original cost of the fixed assets acquired for a fee joins the following expenses:
1) the amounts paid to suppliers of assets and contractors for accomplishment of installation and construction works under agreements;
2) the registration fees, the state fees (customs duties, charges, etc.) and other similar payments paid in connection with acquisition of rights (obtaining) of the rights to fixed asset object;
3) the amounts of taxes and fees in connection with acquisition (creation) of fixed asset objects (if they are not compensated);
4) the amounts paid for the information and consulting services connected with acquisition (creation) of fixed asset objects;
5) expenses on risks insurance of delivery of objects;
6) the remunerations paid to intermediaries through whom fixed assets are acquired;
7) expenses on installation, installation, slip and commisioning of fixed assets;
8) other expenses which are directly connected with reduction of asset in the working condition for its proper use.
The fixed assets acquired for foreign currency affect balance in national currency at the Central Bank rate on the date of execution of the customs declaration and in connection with change in the exchange rate of foreign currency are not subject to revaluation.
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