RESOLUTION OF BOARD OF NATIONAL BANK OF THE REPUBLIC OF BELARUS

of April 27, 2023 No. 160

About approval of the Instruction for financial accounting of transactions with property and leases

Based on the paragraph of the thirty sixth 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 transactions with property and leases 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 April 27, 2023 No. 160

The instruction for financial accounting of transactions with property and leases

Section I. 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 transactions with fixed assets, intangible assets, inventories, the investment real estate, non-current assets, held for sale (further if other is not determined, - property), and leases.

2. In case of recognition, derecognition, property assessment banks are guided:

International accounting standard (IAS) 2 "Inventories" 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) 2), - concerning inventories;

International accounting standard (IAS) 16 "Fixed 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) 16), - concerning fixed assets;

International accounting standard (IAS) 38 "Intangible 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) 38), - concerning intangible assets;

International accounting standard (IAS) 40 "Investment real estate" 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) 40), - concerning the investment real estate;

International accounting standard (IFRS) 5 "Non-current assets, held for sale, and discontinued operation", the enacted 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) 5), - concerning non-current assets, held for sale.

In case of recognition, derecognition, assessment of the assets, obligations, income and expenses following from lease agreements, banks are guided by the International accounting standard (IFRS) 16 "Lease" 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) 16).

3. The terms "asset in the form of right to use", "lease", "lease payments", "underlying asset", "start date of lease", "short-term lease", "modification of the lease agreement", "operating lease", "initial direct costs", "variable lease payments", "lease term", "stimulating payments on lease", "sublease", "finance lease", "net investment in lease" are used in the values determined by IFRS (IFRS) 16.

The terms "non-current asset", "costs to sell" are used in the values determined by IFRS (IFRS) 5.

The term "goodwill" is used in the value determined by the International accounting standard (IFRS) 3 "Integration of businesses" 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) 3).

The terms "inventories", "net possible selling price" are used in the values determined by IFRS (IAS) 2.

Terms of "costs for disposal", "impairment loss" are used in the values determined by the International accounting standard (IAS) 36 "Asset impairment" 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) 36).

The term "change in accounting estimate" is used in the value determined by the International accounting standard (IAS) 8 "Accounting policy, changes in accounting valuations and mistakes", the enacted 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) 8).

The terms "investment real estate", "real estate occupied by the owner" are used in the values determined by IFRS (IAS) 40.

The term "intangible asset" is used in value, the determined IFRS (IAS) 38.

The term "fixed assets" is used in value, the determined IFRS (IAS) 16.

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 "the credit depreciated financial asset", "provision under losses", "acquired or the depreciated financial asset created credit" 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).

The term "fair value" is used in the value determined by the International accounting standard (IFRS) 13 "Assessment of fair value" 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) 13).

The terms "financial asset", "financial liability" are used in the values determined by the International accounting standard (IAS) 32 "Financial instruments: representation", the enacted 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.

4. In case of determination of procedure for the financial accounting of transactions with property and leases which is not settled by this Instruction, banks are guided by International accounting standards and their Explanations, Conceptual bases of submission of financial statements (further - international accounting standards) and other legislation.

5. Receivables of suppliers, contractors, accounts payable before suppliers, contractors on transactions of acquisition, creation of property are reflected in financial accounting in balance sheet accounts * 6530 "Receivables by settlings with suppliers, contractors", 6631 "Accounts payable by settlings with suppliers, contractors" respectively.

Receivables of buyers, accounts payable before buyers on transactions of sale of property are reflected in financial accounting in the balance sheet accounts 6531 "Receivables by Settlings with Buyers", 6630 "Accounts payable by settlings with buyers" respectively.

______________________________

* 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.

6. Impairment of fixed assets, intangible assets (including goodwill), the investment real estate considered on original cost, assets in the form of right to use is determined according to IFRS (IAS) 36.

The analysis of availability of the signs specifying possible impairment of these assets is performed with the frequency established in the local legal act of bank and no later than the last working day of year. The amounts of impairment losses are subject to reflection in financial accounting in case of their identification.

7. In case of the impairment of receivables of suppliers, contractors which are not financial asset, determined according to IFRS (IAS) 36, in financial accounting the reserve under impairment in the amount of impairment loss is reflected. Financial accounting of forming of reserve under impairment of receivables which are not financial asset is performed using the balance sheet accounts 9471 "Expenses on Forming of Reserves on Non-financial Receivables", 6591 "Reserve on non-financial receivables". In case of recovery of impairment loss financial accounting of recovery of earlier created reserve using the balance sheet account 8471 "Income from Reduction of Reserves on Non-financial Receivables" is performed.

8. Impairment of receivables of suppliers, contractors, buyers which are financial asset is determined according to IFRS (IFRS) 9.

Reflection in financial accounting of forming and use of provision under losses on receivables of suppliers, contractors, buyers which are financial asset is performed taking into account provisions IFRS (IFRS) 9 using the approaches determined by the Instruction for financial accounting of financial instrument transactions approved by the resolution of Board of National Bank of the Republic of Belarus of April 11, 2023 No. 130, concerning forming and use of provision under losses on the debt financial assets considered on depreciated cost.

Financial accounting of provision under losses on receivables which are financial asset is performed on the balance sheet account 6590 "Reserve on Financial Receivables". Expenses on forming of this provision under losses are reflected in the balance sheet account 9470 "Expenses on Forming of Reserves on Financial Receivables". The income from reduction of this provision under losses is reflected in the balance sheet account 8470 "Income from Reduction of Reserves on Financial Receivables".

9. Assessment of fair value of property is performed according to the procedure, certain IFRS (IFRS) 13.

In the local legal act of bank the evaluation methods applied in case of determination of fair value are determined taking into account provisions IFRS (IFRS) 13.

10. Criteria of materiality are determined in the local legal act of bank taking into account the International accounting standard (IAS) 1 "Accounts presentation" 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.

11. Acquisition of fixed asset objects, intangible assets, inventories for foreign currency is reflected in financial accounting taking into account provisions of 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, and the Instruction for financial accounting of foreign currency transactions approved by the resolution of Board of National Bank of the Republic of Belarus of April 11, 2023 No. 129.

12. The property received instead of obligation fulfillment is considered depending on intentions of bank concerning such property taking into account recognition conditions according to international accounting standards in the following account groups:

530 "Inventories";

531 "Non-current assets, held for sale";

540 "Intangible assets";

550 "Fixed assets";

551 "The investment real estate".

In case of reflection in financial accounting of receipt of the property received instead of obligation fulfillment the balance sheet accounts 1811 "Accounts Payable on Transactions of Bank with Securities", 1818 "Accounts payable on transactions of bank with other financial instruments", 3811 "Accounts payable on transactions of bank with securities", 3818 "Accounts payable on transactions of bank with other financial instruments" are used.

13. Financial accounting of the obligation to the supplier arising in case of property acquisition on the terms of delay (payment by installments) of payment is performed taking into account the approaches provided by the Instruction for financial accounting of financial instrument transactions concerning the debt financial liabilities considered on depreciated cost using the balance sheet accounts 6631 "Accounts Payable by Settlings with Suppliers, Contractors", 6638 "The added interest expenses on accounts payable by settlings with suppliers, contractors", 6636 "Discount (award) on accounts payable by settlings with suppliers, contractors", 9089 "Other interest expenses", 8091 "Interest incomes according to the financial liabilities considered on depreciated cost".

14. Financial accounting of the requirement to the buyer arising in case of sale of property on the terms of delay (payment by installments) of payment is performed taking into account the approaches provided by the Instruction for financial accounting of financial instrument transactions concerning the debt financial assets considered on depreciated cost using the balance sheet accounts 6531 "Receivables by Settlings with Buyers", 6538 "The added interest incomes on receivables by settlings with buyers", 6536 "Award (discount) on receivables by settlings with buyers", 8089 "Other interest incomes", 9091 "Interest expenses on the financial assets considered on depreciated cost".

15. Financial accounting of costs for disposal of the fixed assets, intangible assets, the investment real estate suffered before date of their disposal is performed on the balance sheet account 6560 "Receivables by Settlings with Other Debtors" before the specified date. For date of disposal of fixed assets, intangible assets, the investment real estate write-off of the specified costs in correspondence with the balance sheet account 6404 "Account of Disposal of Fixed Assets and Other Property" is made.

The costs for disposal of fixed assets, intangible assets, the investment real estate paid later dates of their disposal are reflected in financial accounting in the balance sheet account 6404 "Account of Disposal of Fixed Assets and Other Property" in correspondence with balance sheet accounts on accounting of accounts payable.

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info