RESOLUTION OF BOARD OF NATIONAL BANK OF THE REPUBLIC OF KAZAKHSTAN

of September 21, 2020 No. 109

About approval of the Instruction for conducting financial accounting by banks of the second level, branches of nonresident banks of the Republic of Kazakhstan, Development Bank of Kazakhstan joint-stock company and the mortgage organizations and introduction of amendments to the resolution of Board of National Bank of the Republic of Kazakhstan of September 22, 2008 No. 79 "About approval of the Standard chart of accounts of financial accounting for certain subjects of the financial market of the Republic of Kazakhstan" and the resolution of Board of National Bank of the Republic of Kazakhstan of July 1, 2011 No. 68 "About approval of the Instruction for conducting financial accounting by certain subjects of the financial market"

According to the subitem 63) of part two of article 15 of the Law of the Republic of Kazakhstan "About National Bank of the Republic of Kazakhstan", subitems 1), "About financial accounting and the financial reporting" the Board of National Bank of the Republic of Kazakhstan DECIDES: 3-2) and 3-4) Items 6 of article 20 of the Law of the Republic of Kazakhstan

1. Approve the enclosed Instruction for conducting financial accounting by banks of the second level, branches of nonresident banks of the Republic of Kazakhstan, Development Bank of Kazakhstan joint-stock company and the mortgage organizations.

2. Bring in the resolution of Board of National Bank of the Republic of Kazakhstan of September 22, 2008 No. 79 "About approval of the Standard chart of accounts of financial accounting for certain subjects of the financial market of the Republic of Kazakhstan" (it is registered the following change is published in the Register of state registration of regulatory legal acts at No. 5348, on December 12, 2008 in the Collection of acts of the central executive and other central state bodies of the Republic of Kazakhstan No. 12):

in the Standard chart of accounts of financial accounting for certain subjects of the financial market of the Republic of Kazakhstan approved by the specified resolution:

state Item 1 in the following edition:

"1. This Standard chart of accounts of financial accounting (further - the Chart of accounts) is developed for certain subjects of the financial market of the Republic of Kazakhstan according to the Law of the Republic of Kazakhstan of February 28, 2007 "About financial accounting and the financial reporting" and intended for group and the current reflection of financial statement elements in value term by the single accumulation pension fund, the Voluntary accumulation pension funds (further - the accumulation pension funds), the organizations performing separate types of banking activities (except for the mortgage organizations and legal entities which were earlier subsidiary banks), professional participants of the security market of the Republic of Kazakhstan, the organizations performing microfinancial activities, insurance brokers (further - the organizations) on accounts of financial accounting for creation of the financial reporting, and also for group and the current reflection of elements of the reporting under accounting data in value term of insurance brokers by branches - nonresidents of the Republic of Kazakhstan (further - the organizations) on accounts of financial accounting for creation of the reporting under accounting data.".

3. Bring in the resolution of Board of National Bank of the Republic of Kazakhstan of July 1, 2011 No. 68 "About approval of the Instruction for conducting financial accounting by certain subjects of the financial market" (it is registered in the Register of state registration of regulatory legal acts at No. 7121, it is published on October 5, 2011 in the Yuridicheskaya Gazeta newspaper No. 144 (2134) the following change:

in the Instruction for conducting financial accounting by certain subjects of the financial market approved by the specified resolution:

state Item 2 in the following edition:

"2. This Instruction disaggregates conducting financial accounting of transactions on placement of own money in deposits, loans, securities, derivative financial instruments, the affined precious metals, foreign currency, hedging transactions, and also repo operations and the return repo by the single accumulation pension fund, the Voluntary accumulation pension funds (further - the accumulation pension funds), the organizations performing separate types of banking activities (except for the mortgage organizations and legal entities which were earlier subsidiary banks), professional participants of the security market, the organizations performing microfinancial activities, insurance brokers and branches of insurance brokers - nonresidents of the Republic of Kazakhstan (further - the organization).".

4. Recognize invalid regulatory legal acts of the Republic of Kazakhstan, and also structural elements of some regulatory legal acts of the Republic of Kazakhstan according to the list according to appendix to this resolution.

5. To provide to accounting department in the procedure established by the legislation of the Republic of Kazakhstan:

1) together with Legal department state registration of this resolution in the Ministry of Justice of the Republic of Kazakhstan;

2) placement of this resolution on official Internet resource of National Bank of the Republic of Kazakhstan after its official publication;

3) within ten working days after state registration of this resolution submission to Legal department of data on execution of the actions provided by the subitem 2) of this Item and Item 6 of this resolution.

6. To department of information and communications - the press service of National Bank to provide within ten calendar days after state registration of this resolution the direction it to the copy on official publication in periodic printing editions.

7. To impose control of execution of this resolution on the vice-chairman of National Bank of the Republic of Kazakhstan Baymagambetov A. M.

8. This resolution is subject to official publication and becomes effective since December 16, 2020.

Approved by the Resolution of Board of National Bank of the Republic of Kazakhstan of September 21, 2020 No. 109

Instruction for conducting financial accounting by banks of the second level, branches of nonresident banks of the Republic of Kazakhstan, Development Bank of Kazakhstan joint-stock company and mortgage organizations

Chapter 1. General provisions

1. This Instruction for conducting financial accounting by banks of the second level, branches of banks - nonresidents of the Republic of Kazakhstan, is developed by Development Bank of Kazakhstan joint-stock company and the mortgage organizations (further – the Instruction) according to the subitem 63) of part two of article 15 of the Law of the Republic of Kazakhstan "About National Bank of the Republic of Kazakhstan", subitems 1), 3-2), 3-4) Items 6 of article 20 of the Law of the Republic of Kazakhstan "About financial accounting and the financial reporting", international accounting standards and disaggregates conducting financial accounting by banks of the second level, branches of banks - nonresidents of the Republic of Kazakhstan, the Development Bank of Kazakhstan joint-stock company, the legal entity which was earlier subsidiary bank (further – banks) and the mortgage organizations.

2. In the Instruction the concepts provided by the Civil code of the Republic of Kazakhstan (General part), the Civil code of the Republic of Kazakhstan (Special part), the Law of the Republic of Kazakhstan "About circulation of bills in the Republic of Kazakhstan", the resolution of Board of National Bank of the Republic of Kazakhstan of November 15, 1999 No. 396 "About approval of Rules of accounting of bills of exchange by banks of the second level of the Republic of Kazakhstan" are used (it is registered in the Register of state registration of regulatory legal acts at No. 1015) and the resolution of Board of National Bank of December 31, 2015 No. 261 "About approval of Rules of carrying out transactions with translated and promissory notes the banks of the second level and the organizations performing separate types of banking activities" (it is registered in the Register of state registration of regulatory legal acts at No. 13071), and also the following concepts:

1) discount (discount) – the amount of the negative difference arising between original cost of financial asset / obligation (without the added remuneration) and repayment sum, forming income/deferred expenses for the investor (buyer);

2) award – the amount of the positive difference arising between original cost of financial asset / obligation (without the added remuneration) and repayment sum, forming expenses/deferred revenues for the investor (buyer);

3) depreciation of award or discount (discount) – gradual reference of the amount, registered award or discount (discount), on the income or expenses of bank with use of effective interest rate method.

3. Financial accounting of the transactions made by banks is performed according to requirements of International Financial Reporting Standards and the Instruction.

4. In the Instruction accounting methods of standard transactions of purchase and sale of financial assets for date of the conclusion of the transaction and for date of payment under the transaction according to requirements of international accounting standards are applied. The choice of one of the accounting methods of the standard transaction of purchase and sale of financial assets specified in this Item is determined in accounting policy of bank.

5. If according to contractual conditions the affined precious metals placed on not allocated metal accounts correspond to determination of the financial instruments determined in international accounting standard (IAS) 32 "Financial instruments: representation", financial accounting of transactions with the affined precious metals placed on not allocated metal accounts is conducted according to international accounting standard (IFRS) 9 "Financial instruments".

6. Use of intra transit accounts and making of additional accounting entries in the part which is not contradicting requirements of the Law of the Republic of Kazakhstan "About the financial accounting and the financial reporting" and international accounting standards according to the procedure provided by the internal documents of bank regulating conducting financial accounting is allowed.

Reflection of transaction amounts in foreign currency with use of accounts of foreign exchange position and countercost of foreign currency is allowed.

Income and expenses in the form of remuneration are recognized with use of effective interest rate method according to international accounting standard (IFRS) 9 "Financial instruments".

Chapter 2. Financial accounting of dealing transactions with foreign currency

Paragraph 1. Accounting of transactions spot on purchase of foreign currency by date of the conclusion of the transaction

7. In day of the conclusion of the transaction spot on purchase of foreign currency the following accounting entries are performed:

on the amount of requirements in foreign currency and on the amount of obligations of tenge on buying rate:

Dt 1894 Requirements for transactions spot

Kt 2894 Obligations on transactions spot,

at the same time on the difference arising in case of difference of buying rate of foreign currency from accounting rate the following accounting entries are performed:

in case of excess of buying rate of foreign currency over accounting rate:

Dt 5530 Expenses on purchase and sale of foreign currency

Kt 1894 Requirements for transactions spot;

in case of excess of accounting rate over the buying rate of foreign currency:

Dt 1894 Requirements for transactions spot

Kt 4530 Income on purchase and sale of foreign currency.

8. In case of revaluation of the transaction spot on purchase of foreign currency at the market rate of currency exchange with the frequency established by accounting policy of bank the following accounting entries are performed:

1) on the amount of negative exchange difference of change of the market rate of currency exchange:

Dt 5703 Expenses from revaluation of foreign currency

Kt 1894 Requirements for transactions spot;

2) on the amount of positive exchange difference of change of the market rate of currency exchange:

Dt 1894 Requirements for transactions spot

Kt 4703 Income from revaluation of foreign currency.

9. For value date of the transaction spot on purchase of foreign currency after carrying out revaluation according to Item 8 of the Instruction the following accounting entries are performed:

1) on the amount of tenge transferred for purchase of foreign currency:

Dt 2894 Obligations on transactions spot

Kt 1051 Correspondent account in National Bank of the Republic of Kazakhstan

1052 Correspondent accounts in other banks;

2) on the amount of the secured foreign currency:

Dt 1051 Correspondent account in National Bank of the Republic of Kazakhstan

1052 Correspondent accounts in other banks

Kt 1894 Requirements for transactions spot.

Paragraph 2. Accounting of transactions spot on purchase of foreign currency by date of calculations

10. In day of the conclusion of the transaction the spot on purchase of foreign currency on the amount of conditional requirements in foreign currency and on the amount of contingent obligations of tenge is performed the following accounting entry:

Dt 6405 Conditional requirements for purchase and sale of foreign currency

Kt 6905 Contingent obligations on purchase and sale of foreign currency.

11. In case of revaluation of the transaction spot on purchase of foreign currency at the market rate of currency exchange with the frequency established by accounting policy of bank the following accounting entries are performed:

1) on the amount of negative exchange difference of change of the market rate of currency exchange:

Dt 5703 Expenses from revaluation of foreign currency

Kt 2894 Obligations on transactions spot;

2) on the amount of positive exchange difference of change of the market rate of currency exchange:

Dt 1894 Requirements for transactions spot

Kt 4703 Income from revaluation of foreign currency;

3) on the amount of the smallest remaining balance on positive and negative change of the market rate of currency exchange:

Dt 2894 Obligations on transactions spot

Kt 1894 Requirements for transactions spot.

12. For value date of the transaction spot on purchase of foreign currency the following accounting entries are performed:

1) on the amount of contingent obligations and requirements for purchase of foreign currency:

Dt 6905 Contingent obligations on purchase and sale of foreign currency

Kt 6405 Conditional requirements for purchase and sale of foreign currency;

2) on the amount of tenge and foreign currency:

Dt 1051 Correspondent account in National Bank of the Republic of Kazakhstan

1052 Correspondent accounts in other banks

Kt 1051 Correspondent account in National Bank of the Republic of Kazakhstan

1052 Correspondent accounts in other banks;

3) in case of excess of buying rate of foreign currency over accounting rate:

Dt 5530 Expenses on purchase and sale of foreign currency

Kt 2894 Obligations on transactions spot;

4) in case of excess of accounting rate over the buying rate of foreign currency:

Dt 1894 Requirements for transactions spot

Kt 4530 Income on purchase and sale of foreign currency;

5) reversal of earlier carried out revaluation:

Dt 2894 Obligations on transactions spot

Kt 5703 Expenses from revaluation of foreign currency;

or Dt 4703 Income from revaluation of foreign currency

Kt 1894 Requirements for transactions spot.

Paragraph 3. Accounting of transactions spot selling foreign currency by date of the conclusion of the transaction

13. In day of the conclusion of the transaction spot selling foreign currency on the amount of requirements and obligations for selling rate the following accounting entries are performed:

on the amount of obligations in foreign currency and on the amount of requirements of tenge:

Dt 1894 Requirements for transactions spot

Kt 2894 Obligations on transactions spot,

at the same time on the difference arising in case of difference of selling rate of foreign currency from accounting rate the following accounting entries are performed:

in case of excess of accounting rate over the selling rate of foreign currency:

Dt 5530 Expenses on purchase and sale of foreign currency

Kt 2894 Obligations on transactions spot;

in case of excess of rate of sales of foreign currency over accounting rate:

Dt 2894 Obligations on transactions spot

Kt 4530 Income on purchase and sale of foreign currency.

14. In case of revaluation of the transaction spot selling foreign currency at the market rate of currency exchange with the frequency established by accounting policy of bank the following accounting entries are performed:

1) on the amount of negative exchange difference of change of the market rate of currency exchange:

Dt 2894 Obligations on transactions spot

Kt 4703 Income from revaluation of foreign currency;

2) on the amount of positive exchange difference of change of the market rate of currency exchange:

Dt 5703 Expenses from revaluation of foreign currency

Kt 2894 Obligations on transactions spot.

15. For value date of the transaction spot selling foreign currency after carrying out revaluation according to Item 14 of the Instruction the following accounting entries are performed:

1) on the amount of implementable foreign currency:

Dt 2894 Obligations on transactions spot

Kt 1051 Correspondent account in National Bank of the Republic of Kazakhstan

1052 Correspondent accounts in other banks;

2) on the amount of tenge received for realization of foreign currency:

Dt 1051 Correspondent account in National Bank of the Republic of Kazakhstan

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