INSTRUCTION OF CENTRAL BANK OF THE RUSSIAN FEDERATION

of March 24, 2020 No. 5420-U

About procedure for reflection on accounts of financial accounting of investments of credit institutions in the securities (except bills of exchange) estimated at fair value

This Instruction 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; 2018, No. 53, the Art. 8440), 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; 2019, No. 30, the Art. 4149) 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 March 20, 2020 No. 6) establish procedure for reflection on accounts of financial accounting of investments of credit institutions in the securities (except bills of exchange) estimated at fair value.

1. The decision on application of the procedure for reflection established by this Instruction on accounts of financial accounting of investments in the securities (except bills of exchange) estimated at fair value is accepted by the governing body of credit institution performing the current management of activities of credit institution (further - the decision), concerning separate issues of securities. The decision is made till September 30, 2020.

2. The made decision affirms as accounting policy of credit institution and is not subject to cancellation.

3. In case of decision making according to Item of 1 this Instruction by credit institution are reflected in accounts of financial accounting of investment in the securities (except bills of exchange) estimated at fair value in the following procedure.

3.1. Debt securities (except bills of exchange) and the equity securities acquired till March 1, 2020, which are registered for decision date on balance sheet accounts No. No. 501 "Debt securities, estimated at fair value through profit or loss", 502 "Debt securities, estimated at fair value through other comprehensive income", 506 "Equity securities, estimated at fair value through profit or loss" 507 "The equity securities estimated at fair value through other comprehensive income" are estimated by credit institution at fair value, developed for March 1, 2020.

3.2. The debt securities (except bills of exchange) acquired during the period from March 1, 2020 to September 30, 2020 are estimated by credit institution at fair value, developed for date of acquisition.

3.3. In case of revaluation of debt securities (except bills of exchange) and the equity securities estimated at fair value through profit or loss, at fair value according to subitem 3.1 of this Item, and also according to subitem 3.2 of this Item if debt securities are acquired to decision date, accounting entries are performed:

Debit of the balance sheet account of accounting of negative revaluation of securities

The credit of the account on accounting of the income from revaluation of securities No. 70602 "Positive revaluation of the financial assets and financial liabilities estimated at fair value through profit or loss" (in the report on financial results (further - OFR) on symbols of the Section 2 "Income (except Percentage) from Transactions with the Acquired Debt Securities" or the Section 3 "Income from Transactions with the Acquired Equity Securities" of part 2 "Operating incomes") or expenses from revaluation of securities No. 70607 "Negative revaluation of the financial assets and financial liabilities estimated at fair value through profit or loss" (in OFR on symbols of the Section 2 "Expenses on Transactions with the Acquired Debt Securities" or the Section 3 "Expenses on Transactions with the Acquired Equity Securities" of part 4 "Operating expenses"),

Debit of the balance sheet account of positive revaluation of securities

The account No. 70602 credit "Positive revaluation of the financial assets and financial liabilities estimated at fair value through profit or loss" (in OFR on symbols of the Section 2 "Income (except Percentage) from Transactions with the Acquired Debt Securities" or the Section 3 "Income from Transactions with the Acquired Equity Securities" of part 2 "Operating incomes").

3.4. In case of revaluation of debt securities (except bills of exchange) and the equity securities estimated at fair value through other comprehensive income, at fair value according to subitem 3.1 of this Item, and also according to subitem 3.2 of this Item if debt securities are acquired to decision date, accounting entries are performed:

Debit of the balance sheet account of negative revaluation of securities

The account No. 10605 credit "Negative revaluation of the securities estimated at fair value through other comprehensive income"

Debit of the balance sheet account of positive revaluation of securities

The account No. 10603 credit "Positive revaluation of the securities estimated at fair value through other comprehensive income".

4. This Instruction becomes effective from the date of its official publication and is effective till December 31, 2020.

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