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It is registered

Ministry of Justice

Russian Federation

On December 11, 2017 No. 49198

PROVISION OF CENTRAL BANK OF THE RUSSIAN FEDERATION

of October 2, 2017 No. 605-P

About procedure for reflection on accounts of financial accounting by credit institutions of transactions on placement of money on credit agreements, the transactions connected with implementation of transactions on acquisition of right of the requirement from the third parties of obligation fulfillment in cash, transactions according to obligations according to the issued bank guarantees and provision of money

(as amended on 25-04-2022)

This Provision based on article 57 of the Federal Law of July 10, 2002 No. 86-FZ "About the Central bank the Russian Federation (Bank of Russia)" (The Russian Federation Code, 2002, No. 28, Art. 2790; 2003, No. 2, Art. 157; No. 52, Art. 5032; 2004, No. 27, Art. 2711; No. 31, Art. 3233; 2005, No. 25, Art. 2426; No. 30, Art. 3101; 2006, No. 19, Art. 2061; No. 25, Art. 2648; 2007, No. 1, Art. 9, Art. 10; No. 10, Art. 1151; No. 18, Art. 2117; 2008, No. 42, Art. 4696, Art. 4699; No. 44, Art. 4982; No. 52, Art. 6229, Art. 6231; 2009, No. 1, Art. 25; No. 29, Art. 3629; No. 48, Art. 5731; 2010, No. 45, Art. 5756; 2011, No. 7, Art. 907; No. 27, Art. 3873; No. 43, Art. 5973; No. 48, Art. 6728; 2012, No. 50, Art. 6954; \Art. U-2116\53, 7591, Art. 7607; 2013, No. 11, Art. 1076; No. 14, Art. 1649; No. 19, Art. 2329; No. 27, Art. 3438, Art. 3476, Art. 3477; No. 30, Art. 4084; No. 49, Art. 6336; No. 51, Art. 6695, Art. 6699; No. 52, Art. 6975; 2014, No. 19, Art. 2311, Art. 2317; No. 27, Art. 3634; No. 30, Art. 4219; No. 40, Art. 5318; No. 45, Art. 6154; No. 52, Art. 7543; 2015, No. 1, Art. 4, Art. 37; No. 27, Art. 3958, Art. 4001; No. 29, Art. 4348, Art. 4357; No. 41, Art. 5639; No. 48, Art. 6699; 2016, No. 1, Art. 23, Art. 46, Art. 50; No. 26, Art. 3891; No. 27, Art. 4225, Art. 4273, Art. 4295; 2017, No. 1, Art. 46; No. 14, Art. 1997; No. 18, Art. 2661, Art. 2669; No. 27, Art. 3950; No. 30, Art. 4456; No. 31, the Art. 4830), parts 6 of article 21 of the Federal Law of December 6, 2011 No. 402-FZ "About financial accounting" (The Russian Federation Code, 2011, No. 50, Art. 7344; 2013, No. 26, Art. 3207; No. 27, Art. 3477; No. 30, Art. 4084; No. 44, Art. 5631; No. 51, Art. 6677; No. 52, Art. 6990; 2014, No. 45, Art. 6154; 2016, No. 22, Art. 3097; 2017, No. 30, the Art. 4440) (further - the Federal Law of December 6, 2011 No. 402-FZ), articles 5 and 6 of the Federal law "About Banks and Banking Activity" (in edition of the Federal Law of February 3, 1996 No. 17-FZ) (Sheets of the Congress of People's Deputies of RSFSR and the Supreme Council of RSFSR, 1990, No. 27, Art. 357; Russian Federation Code, 1996, No. 6, Art. 492; 1998, No. 31, Art. 3829; 1999, No. 28, Art. 3459, Art. 3469; 2001, No. 26, Art. 2586; No. 33, Art. 3424; 2002, No. 12, Art. 1093; 2003, No. 27, Art. 2700; No. 50, Art. 4855; No. 52, Art. 5033, Art. 5037; 2004, No. 27, Art. 2711; No. 31, Art. 3233; 2005, No. 1, Art. 18, Art. 45; No. 30, Art. 3117; 2006, No. 6, Art. 636; No. 19, Art. 2061; No. 31, Art. 3439; No. 52, Art. 5497; 2007, No. 1, Art. 9; No. 22, Art. 2563; No. 31, Art. 4011; No. 41, Art. 4845; No. 45, Art. 5425; No. 50, Art. 6238; 2008, No. 10, Art. 895; 2009, No. 1, Art. 23; No. 9, Art. 1043; No. 18, Art. 2153; No. 23, Art. 2776; No. 30, Art. 3739; No. 48, Art. 5731; No. 52, Art. 6428; 2010, No. 8, Art. 775; No. 27, Art. 3432; No. 30, Art. 4012; No. 31, Art. 4193; No. 47, Art. 6028; 2011, No. 7, Art. 905; No. 27, Art. 3873, Art. 3880; No. 29, Art. 4291; No. 48, Art. 6730; No. 49, Art. 7069; No. 50, Art. 7351; 2012, No. 27, Art. 3588; No. 31, Art. 4333; No. 50, Art. 6954; No. 53, Art. 7605, Art. 7607; 2013, No. 11, Art. 1076; No. 19, Art. 2317, Art. 2329; No. 26, Art. 3207; No. 27, Art. 3438, Art. 3477; No. 30, Art. 4084; No. 40, Art. 5036; No. 49, Art. 6336; No. 51, Art. 6683, Art. 6699; 2014, No. 6, Art. 563; No. 19, Art. 2311; No. 26, Art. 3379, Art. 3395; No. 30, Art. 4219; No. 40, Art. 5317, Art. 5320; No. 45, Art. 6144, Art. 6154; No. 49, Art. 6912; No. 52, Art. 7543; 2015, No. 1, Art. 37; No. 17, Art. 2473; No. 27, Art. 3947, Art. 3950; No. 29, Art. 4355, Art. 4357, Art. 4385; No. 51, Art. 7243; 2016, No. 1, Art. 23; No. 15, Art. 2050; No. 26, Art. 3860; No. 27, Art. 4294, Art. 4295; 2017, No. 14, Art. 2000; No. 18, Art. 2661, Art. 2669; No. 25, Art. 3596; No. 30, Art. 4456; No. 31, the Art. 4754, the Art. 4830) and according to the solution of the Board of directors of the Bank of Russia (the minutes of the Board of directors of the Bank of Russia of September 27, 2017 No. 26) establish procedure for reflection on accounts of financial accounting by credit institutions of transactions on placement of money on credit agreements, the transactions connected with implementation of transactions on acquisition of right of the requirement from the third parties of obligation fulfillment in cash (further - financial assets), transactions according to obligations according to the issued bank guarantees and provision of money.

Chapter 1. General provisions

1.1. In case of initial recognition financial assets, obligations according to the issued bank guarantees and provision of money are estimated at fair value, determined according to the International accounting standard (IFRS) 13 "Assessment of fair value" enacted in the territory of the Russian Federation by the order of the Ministry of Finance of the Russian Federation of December 28, 2015 No. 217n "About introduction of International accounting standards and Explanations of International accounting standards in action in the territory of the Russian Federation and about recognition No. which voided some orders (separate provisions of orders) of the Ministry of Finance of the Russian Federation", the registered Ministry of Justice of the Russian Federation on February 2, 2016 40940, on August 1, 2016 No. 43044 (further - the order of the Ministry of Finance of the Russian Federation No. 217n), with amendments, enacted in the territory of the Russian Federation by the order of the Ministry of Finance of the Russian Federation of June 27, 2016 No. 98n "About introduction of documents of International accounting standards in action in the territory of the Russian Federation and about recognition voided some orders of the Ministry of Finance of the Russian Federation", the registered Ministry of Justice of the Russian Federation on July 15, 2016 No. 42869 (further - the order of the Ministry of Finance of the Russian Federation No. 98n), and the order of the Ministry of Finance of the Russian Federation of July 11, 2016 No. 111n "About enforcement and cancellation of documents of International accounting standards in the territory of the Russian Federation", the registered Ministry of Justice of the Russian Federation on August 1, 2016 No. 43044 (further - the order of the Ministry of Finance of the Russian Federation No. 111n) (further - IFRS (IFRS) 13).

Methods of determination of fair value affirm credit institution as accounting policy.

If fair value of financial asset, the obligation according to the issued bank guarantees and provision of money differs from the cost of the transaction on the agreement, fair value is estimated according to the International accounting standard (IFRS) 9 "Financial instruments" in edition of 2014 enacted in the territory of the Russian Federation by the order of the Ministry of Finance of the Russian Federation No. 98n with the amendments enacted in the territory of the Russian Federation by the order of the Ministry of Finance of the Russian Federation No. 111n (further - IFRS (IFRS) 9).

If credit institutions perform operations on placement of money on they within which programs of the state support are provided from the federal budget, budgets of subjects of the Russian Federation, local budgets of subsidy, credit institutions need to be guided also by the International accounting standard (IAS) 20 "Accounting of government subsidies and disclosure of information on government assistance" enacted in the territory of the Russian Federation by the order of the Ministry of Finance of the Russian Federation No. 217n with the amendments enacted in the territory of the Russian Federation by the order of the Ministry of Finance of the Russian Federation No. 98n and the order of the Ministry of Finance of the Russian Federation No. 111n.

The cost of the financial asset classified in case of initial recognition as estimated subsequently on depreciated cost and at fair value through other comprehensive income increases by cost amount, the money which is directly connected with placement, acquisition of right of the requirement (further - costs according to the transaction).

The additional expenses connected with acquisition or disposal of financial asset including the charges, the commissions, remunerations paid or which are subject to payment based on the commission agreement, the order, the agency, broker agreement and other costs according to the transaction according to IFRS (IFRS) 9 belong to costs according to the transaction.

1.2. After initial recognition financial assets are reflected in financial accounting on depreciated cost which is determined according to Appendix A IFRS (IFRS) 9, at fair value through other comprehensive income or at fair value through profit or loss which is determined according to IFRS (IFRS) 9, except as specified, stipulated in Item 4.1.5 IFRS (IFRS) 9, proceeding from:

the business model used by credit institution for financial asset management

the characteristics of financial asset connected with the cash flows provided by the agreement.

Financial assets are estimated by credit institution on depreciated cost if both following conditions are satisfied:

financial asset management is exercised on the basis of business model which purpose is receipt of the cash flows provided by conditions of financial asset,

contractual conditions of financial asset cause obtaining in the specified dates of the cash flows which are only payments on account of the main amount of debt and percent on outstanding part of the main amount of debt.

Financial assets are estimated by credit institution at fair value through other comprehensive income if both following conditions are satisfied:

financial asset management is exercised on the basis of business model which purpose is as receipt of the cash flows provided by conditions of financial asset, and sale of financial asset,

contractual conditions of financial asset cause obtaining in the specified dates of the cash flows which are only payments on account of the main amount of debt and percent on outstanding part of the main amount of debt.

Financial assets are estimated by credit institution at fair value through profit or loss, except as specified, when they are estimated on depreciated cost or at fair value through other comprehensive income.

In case of change of the business model used by credit institution for financial asset management, the credit institution shall change classification of the corresponding financial assets. In case of decision making about reclassification the credit institution is guided by IFRS (IFRS) 9.

Obligations after initial recognition are classified under the issued bank guarantees and provision of money for the purposes of financial accounting according to Item 4.2.1 IFRS (IFRS) 9.

1.3. Depreciated cost of financial asset is determined by banks with the universal license at least once a month the last calendar day of month, and also for dates of complete or partial repayment (return), including early repayment of financial asset.

Depreciated cost of financial asset will be determined by banks with the basic license and non-bank credit institutions (further - other credit institutions) at least once a quarter the last calendar day of quarter, and also for dates of complete or partial repayment (return), including early repayment of financial asset.

Frequency of determination of depreciated cost of financial asset affirms credit institution as accounting policy.

1.4. Fair value of the financial asset classified in case of initial recognition as estimated subsequently at fair value through other comprehensive income or at fair value through profit or loss, is determined at least once a month the last calendar day of month, and also in case of essential change within a month of fair value of financial asset, for date of complete or partial repayment (return), including early repayment of financial asset.

Frequency of determination of fair value of financial asset affirms credit institution as accounting policy.

1.5. The cost of the obligation according to the issued bank guarantees and provision of money is determined at least once a month the last calendar day of month, and also in case of essential change within a month of the cost of the obligation by the issued bank guarantees and provision of money, for completion date of obligations according to the issued bank guarantees and provision of money or for date of change of limit of obligations on provision of money and by issue of bank guarantees.

Frequency of cost determination of the obligation according to the issued bank guarantees and provision of money affirms credit institution as accounting policy.

1.6. The income in type of the percent provided by conditions of financial asset and (or) the income which arose in the form of difference between the price of acquisition of right and realization (repayment) of right to claim belong to interest incomes on financial asset.

1.7. Interest incomes on financial asset are reflected in the balance sheet account on accounting of the income per the day provided by terms of the contract for their payment.

In the last working day of month on accounting of the income all interest incomes on financial asset for the expired month, including for the remained non-working days are reflected in the balance sheet account if the last working day of month does not match its termination, or from date of initial recognition of financial asset or from start date of the next percentage period.

The income which is directly connected with acquisition or disposal of financial asset, including remuneration, the commission, award, the allowance belongs to other incomes on financial asset.

Reflection of interest incomes on financial asset and other incomes on financial asset on balance sheet accounts on accounting of the income within a month affirms credit institution as accounting policy.

Reflection of other incomes on financial asset on balance sheet accounts on accounting of the income using criterion of materiality affirms credit institution as accounting policy.

Costs according to the transaction are reflected in the balance sheet account according to the expense accounting no later than the last working day of month.

Reflection of costs according to the transaction on balance sheet accounts on the expense accounting within a month affirms credit institution as accounting policy.

The costs according to the transaction recognized by credit institution insignificant one-timely are reflected in the balance sheet account according to the expense accounting that month in which the financial asset was acknowledged.

Criteria of materiality are developed taking into account Item 7 of the International accounting standard (IAS) 1 "Accounts presentation" enacted in the territory of the Russian Federation by the order of the Ministry of Finance of the Russian Federation No. 217n with the amendments enacted in the territory of the Russian Federation by the order of the Ministry of Finance of the Russian Federation No. 98n, the order of the Ministry of Finance of the Russian Federation No. 111n (further - IFRS (IAS) 1), and affirm credit institution as accounting policy.

1.8. Depreciated cost of financial asset is determined by straight-line method or effective interest rate method (further - EPS) according to IFRS (IFRS) 9.

1.8.1. To financial assets if the repayment period (return) of financial assets constitutes less than one year in case of initial recognition, including financial assets which repayment date (return) falls on other accounting year or if the difference between the depreciated cost of financial asset determined by the EPS method, and the depreciated cost of financial asset determined by straight-line method is not essential, need of application of the EPS method is determined by credit institution.

Criteria of materiality are developed taking into account Item 7 IFRS (IAS) 1 and affirm credit institution as accounting policy.

If for date of initial recognition of financial asset the term of its repayment (return) constituted less than one year, and after treaty extension (transaction) the repayment period (return) began to exceed one year, the decision on application of the EPS method on the basis of assessment of the level of materiality approved in accounting policy is accepted by credit institution.

Credit institutions determine need of application of the EPS method to financial assets with repayment period (return) on demand (for up to claiming).

Requirements of this subitem do not extend to transactions on placement of money, on acquisition of right of the requirement from the third parties of obligation fulfillment in cash on the conditions other than market.

1.8.2. When calculating EPS the credit institution uses the expected cash flows and the expected repayment period (return) of financial asset.

If there is no reliable assessment of the expected cash flows or the expected repayment period (return) of financial asset, when calculating EPS the credit institution uses the cash flows provided by conditions of financial asset and repayment period (return).

1.8.3. When calculating EPS all interest incomes, other incomes, costs according to the transaction, and also award and discounts on financial asset which are integral part of EPS according to IFRS (IFRS) 9 are considered.

1.8.4. In case of application of the EPS method interest incomes, other incomes, costs according to the transaction, and also award and the discounts on financial asset considered when calculating EPS according to subitem 1.8.3 of this Item are charged (will be amortized) during the expected repayment period (return) of financial asset or during shorter term according to IFRS (IFRS) 9.

1.8.5. The interest rate realignment on financial assets with floating interest rate as a result of review of cash flows leads to change of EPS.

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