RESOLUTION OF BOARD OF NATIONAL BANK OF THE REPUBLIC OF BELARUS

of August 7, 2023 No. 281

About approval of the Instruction for financial accounting of the income, expenses and reserves recognized as estimative obligations

Based on the paragraph of the thirty eighth of Article 26 and part one of article 39 of the Bank code of the Republic of Belarus the Board of National Bank of the Republic of Belarus DECIDES:

1. Approve the Instruction for financial accounting of the income, expenses and reserves recognized as estimative obligations it (is applied).

2. This resolution becomes effective since January 1, 2027.

Approved by the Resolution of Board of National Bank of the Republic of Belarus of August 7, 2023 No. 281

The instruction for financial accounting of the income, expenses and reserves recognized as estimative obligations

Chapter 1. General provisions

1. This Instruction determines for banks, the non-bank credit and financial organizations, "Development Bank of the Republic of Belarus" open joint stock company (further - banks) procedure for reflection in financial accounting of the income, expenses and reserves recognized as estimative obligations.

2. For the purposes of this Instruction the terms below are used in the following values:

imputed income - the income which is receivable and considered on balance sheet accounts on accounting of imputed incomes;

accrued expense - the expense which is payable and considered on balance sheet accounts on accounting of accrued expenses.

Terms of "employee benefit", "short-term employee benefits" are used in the values determined by the International accounting standard (IAS) 19 of "Employee benefit" enacted by the resolution of Council of Ministers of the Republic of Belarus and National Bank of the Republic of Belarus of August 19, 2016 No. 657/20 (further - IFRS (IAS) 19).

The concepts "additional costs on the conclusion of the agreement", "costs for agreement performance" are used in the values determined by the International accounting standard (IFRS) 15 "Revenue under the contracts with buyers" enacted by the resolution of Council of Ministers of the Republic of Belarus and National Bank of the Republic of Belarus of August 19, 2016 No. 657/20 (further - IFRS (IFRS) 15).

The terms "income", "expenses" are used in the values determined respectively by paragraphs the sixth and twenty first article 1 of the Law of the Republic of Belarus of July 12, 2013 No. 57-Z "About financial accounting and the reporting".

The term "nonresidents" is used in the value determined by subitem 1.10 of Item 1 of article 1 of the Law of the Republic of Belarus of July 22, 2003 No. 226-Z "About currency control and currency exchange control".

The terms "deferred tax assets", "deferred tax liabilities" are used in the values determined by the International accounting standard (IAS) 12 "Income taxes" enacted by the resolution of Council of Ministers of the Republic of Belarus and National Bank of the Republic of Belarus of August 19, 2016 No. 657/20 (further - IFRS (IAS) 12).

The term "foreign currency" and the concept "foreign currency transaction" are used in the values determined by the International accounting standard (IAS) 21 "Influence of changes of the currency rates" enacted by the resolution of Council of Ministers of the Republic of Belarus and National Bank of the Republic of Belarus of August 19, 2016 No. 657/20.

The term "estimative obligation" is used in the value determined by the International accounting standard (IAS) 37 "Estimative obligations, contingent obligations and contingent assets" enacted by the resolution of Council of Ministers of the Republic of Belarus and National Bank of the Republic of Belarus of August 19, 2016 No. 657/20 (further - IFRS (IAS) 37).

The terms "provision under losses", "effective interest rate" are used in the values determined by the International accounting standard (IFRS) 9 "Financial instruments" enacted by the resolution of Council of Ministers of the Republic of Belarus and National Bank of the Republic of Belarus of December 30, 2016 No. 1119/35 (further - IFRS (IFRS) 9).

3. In case of recognition of the income and expenses banks are guided by International accounting standards and their Explanations, Conceptual bases of submission of financial statements (further - international accounting standards), this Instruction and other legislation.

The income and expenses classified by bank proceeding from provisions of international accounting standards and regulatory legal acts of National Bank are reflected in balance sheet accounts * the classes 8 "Income" and 9th "Expenses" the accruing result since the beginning of year and depending on transaction types, nature and economic essence of the income and expenses are considered on the corresponding balance sheet accounts of groups:

80 "Interest incomes", 90th "Interest expenses";

81 "Not interest incomes", 91 "Not interest expenses";

82 "Income for services", 92 "Expenses for services";

83 "Other incomes", 93rd "Other expenses";

84 "Income from reduction of reserves", 94 "Expenses on forming of reserves";

86 "Income on the deferred profit tax", 96th "Income tax".

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* Accounts are specified according to the Chart of accounts of financial accounting in banks, the non-bank credit and financial organizations, "Development Bank of the Republic of Belarus" open joint stock company established according to appendix to the resolution of Board of National Bank of the Republic of Belarus of April 10, 2023 No. 126 "About the Chart of accounts of financial accounting in banks, the non-bank credit and financial organizations, "Development Bank of the Republic of Belarus" open joint stock company.

4. Closing of balance sheet accounts on accounting of the income and expenses of accounting year is made in the last working day of year with reference of remaining balance into the balance sheet account 7370 "Profit (Loss) of Accounting Year".

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