PROVISION OF CENTRAL BANK OF THE RUSSIAN FEDERATION

of June 18, 2020 No. 723-P

About procedure for reflection on accounts of financial accounting of agreements of non-state pension provision by non-state pension funds

This Provision based on part 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; 2019, No. 30, the Art. 4149) establishes procedure for reflection on accounts of financial accounting of agreements of non-state pension provision by non-state pension funds.

Section I. General provisions

Chapter 1. The basic concepts applied in this Provision

1.1. The concepts "investment contract with conditions of discretionary participation", "contract with conditions of direct participation", "agreement without conditions of direct participation", "burdensome agreement", "significant insurance risk", "portfolio of agreements", "margin for the services provided by the agreement", "cash flows on agreement performance", "cash flows within the agreement", "acquisition cash flows", "risk amendment on non-financial risk", "insurance component", "investment component", "obligation on the insurance coverage rest", "obligation on the arisen insurance losses", "conditions of discretionary participation", "revenue on insurance", "loss component" are applied in the values established by the International accounting standard (IFRS) 17 "Insurance contracts" the order of the Ministry of Finance of the Russian Federation enacted in the territory of the Russian Federation of June 4, 2018 No. 125n "About introduction of the document of International accounting standards in action in the territory of the Russian Federation", the registered Ministry of Justice of the Russian Federation on June 21, 2018 No. 51396 (further respectively - the order of the Ministry of Finance of the Russian Federation No. 125n, IFRS (IFRS) 17).

1.2. The concept "built-in derivative tool" is applied in value, stipulated in Item 4.3.1 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 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), with amendments, enacted in the territory of the Russian Federation by 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), the order of the Ministry of Finance of the Russian Federation of March 27, 2018 No. 56n "About introduction of documents of International accounting standards in action in the territory of the Russian Federation", the registered Ministry of Justice of the Russian Federation on April 16, 2018 No. 50779, the order of the Ministry of Finance of the Russian Federation No. 125n, the order of the Ministry of Finance of the Russian Federation of September 16, 2019 No. 146n "About introduction of the document of International accounting standards "Editorial corrections in IFRS" in action in the territory of the Russian Federation", the registered Ministry of Justice of the Russian Federation on October 9, 2019 No. 56187 (further - IFRS (IFRS) 9).

1.3. The concept "financial liability" is applied in value, stipulated in Item 11 International accounting standards (IAS) 32 "Financial instruments: representation", the Ministry of Finance of the Russian Federation enacted in the territory of the Russian Federation by the order 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 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, the order of the Ministry of Finance of the Russian Federation No. 125n.

Chapter 2. General requirements to reflection of agreements of non-state pension provision on accounts of financial accounting

2.1. For the purposes of reflection on accounts of financial accounting of agreements of non-state pension provision (further - agreements of NGO) the non-state pension fund (further - fund) shall make the following actions.

2.1.1. Perform separation of agreements of NGO according to its accounting policy containing criteria of relevancy of insurance risk on the following agreements:

the agreements of NGO classified as insurance, considered by fund on accounts of financial accounting according to requirements of IFRS (IFRS) 17 (further - the agreements of NGO classified as insurance);

the agreements of NGO classified as the investment agreements with conditions of discretionary participation considered by fund on accounts of financial accounting according to requirements of IFRS (IFRS) 17, provided that the fund also signs the contracts of NGO classified as insurance (further - the agreements of NGO classified as investment);

the agreements of NGO classified as the investment agreements with conditions of discretionary participation considered by fund on accounts of financial accounting according to requirements of IFRS (IFRS) 9, provided that the fund does not sign the contracts of NGO classified as insurance and the agreements of NGO classified as investment without conditions of discretionary participation, considered by fund on accounts of financial accounting according to requirements of IFRS (IFRS) 9 (further in case of joint mentioning - the investment agreements of NGO considered according to requirements of IFRS (IFRS) 9).

2.1.2. Distribute the agreements of NGO classified as insurance, and the agreements of NGO classified as investment, on the following agreements:

agreements of NGO with conditions of direct participation (if agreements of NGO correspond to provisions of the Item B101 IFRS (IFRS) 17);

agreements of NGO without conditions of direct participation (if agreements of NGO do not correspond to provisions of the Item B101 IFRS (IFRS) 17).

2.1.3. According to Item 16 IFRS (IFRS) 17 to distribute portfolios of the agreements of NGO classified as insurance, and the agreements of NGO classified as investment, on the following groups of agreements:

agreements of NGO concerning which for date of initial recognition there is no considerable probability that subsequently they will become burdensome;

burdensome agreements of NGO for date of initial recognition;

the agreements of NGO which remained in portfolio (further - the remained agreements of NGO).

2.2. Review of structure of group of agreements of NGO by fund after initial recognition of group by fund and (or) inclusion in one group of the agreements of NGO classified as insurance, or the agreements of NGO classified as investment which difference between dates of the conclusion fund constitutes more than one year, for the purpose of reflection on accounts of financial accounting of agreements of NGO are not allowed.

2.3. Shall reflect the constituting agreements of NGO selected with fund according to Items 10 and 11 IFRS (IFRS) 17, fund in accounts of financial accounting separately from the agreement of NGO according to requirements of Chapters 3 and 4 of this provision.

2.4. The fund shall reflect in accounts of financial accounting the agreements of NGO classified and distributed by fund according to Item 2.1 of this provision, except for the agreements of NGO specified in paragraph four of subitem 2.1.1 of Item 2.1 of this provision, applying the following estimates of agreements of NGO:

assessment of agreements of NGO without conditions of direct participation according to Items 30 - 44, 46 - 52 IFRS (IFRS) 17 (further - general model);

assessment of contracts of NGO with conditions of direct participation on which the margin for the services provided by the agreement according to Item 45 IFRS (IFRS) 17 is adjusted taking into account variable nature of remuneration (further - model with variable remuneration).

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