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RESOLUTION OF BOARD OF NATIONAL BANK OF THE REPUBLIC OF KAZAKHSTAN

of November 30, 2007 No. 134

About approval of the Instruction for conducting financial accounting of confidential transactions and custodial activities of the second level by banks and branches of nonresident banks of the Republic of Kazakhstan

(as amended on 22-11-2021)

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", the subitem 1) of Item 6 of article 20 of the Law of the Republic of Kazakhstan "About financial accounting and the financial reporting", the Board of National Bank of the Republic of Kazakhstan DECIDES:

1. Approve the enclosed Instruction for conducting financial accounting of confidential transactions and custodial activities of the second level by banks and branches of nonresident banks of the Republic of Kazakhstan.

2. This resolution becomes effective since February 1, 2008.

3. To accounting department (Shalgimbayeva N. T.):

1) together with Legal department (Sharipov S. B.) to take measures to state registration in the Ministry of Justice of the Republic of Kazakhstan of this resolution;

2) in ten-day time from the date of state registration in the Ministry of Justice of the Republic of Kazakhstan of this resolution to bring it to the attention of the interested divisions of National Bank of the Republic of Kazakhstan, Agency of the Republic of Kazakhstan on regulation and supervision of the financial market and the financial organizations, consolidation of legal entities "The association of financiers of Kazakhstan" and banks of the second level.

4. To impose control of execution of this resolution on the vice-chairman of National Bank of the Republic of Kazakhstan Akishev D. T.

Chairman of National Bank

A. Saydenov

Approved by the Resolution of Board of National Bank of the Republic of Kazakhstan of November 30, 2007 No. 134

Instruction for conducting financial accounting of confidential transactions and custodial activities of the second level by banks and branches of nonresident banks of the Republic of Kazakhstan

1. General provisions

1. This Instruction for conducting financial accounting of confidential transactions and custodial activities of the second level by banks and branches of nonresident banks of the Republic of Kazakhstan is developed 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", the subitem 1) of Item 6 of article 20 of the Law of the Republic of Kazakhstan "About financial accounting and the financial reporting", the resolution of Board of National Bank of the Republic of Kazakhstan of January 31, 2011 No. 3 "About approval of the Standard chart of accounts of financial accounting in banks of the second level, the mortgage organizations, Development Bank of Kazakhstan joint-stock company and branches of nonresident banks of the Republic of Kazakhstan" (it is registered in the Register of state registration of regulatory legal acts at No. 6793), (further – the Standard chart of accounts of financial accounting), international accounting standards.

2. This Instruction disaggregates conducting financial accounting of the confidential transactions and custodial activities performed by banks of the second level and branches of nonresident banks of the Republic of Kazakhstan (further – banks) based on the license of authorized body on regulation, control and supervision of the financial market and the financial organizations.

3. The bank performs the isolated accounting of the assets accepted in trust management and/or accepted on the basis of the custodial agreement from own assets.

4. Analytics of money, the affined precious metals and the rights of the requirements for mortgage loans accepted in trust management, the assets accepted based on the custodial agreement, and also the investment revenue (expense) gained on them are conducted in the magazines which are independently developed by bank according to requirements of international accounting standards.

5. Making of the additional accounting entries which are not contradicting requirements of this Instruction and the legislation of the Republic of Kazakhstan is allowed.

2. Accounting of confidential transactions

6. The money accepted in trust management, and also gained investment revenue (expense) is considered on the balance sheet account 2210 "The Financial Assets Accepted in Trust Management".

Financial accounting of transactions with the money received in trust management is performed on accounts of account groups 7500 "Mortgage loans on which rights to claim are accepted in trust management" and 7600 "The assets of the clients which are in trust (investment) management", provided by the Standard chart of accounts of financial accounting.

Paragraph 1. Accounting of the assets accepted in trust management

7. When obtaining by bank from the client of money, the affined precious metals and/or the rights of requirements for mortgage loans in trust management based on the trust management agreement of assets of the client the following accounting entries on the debit (further - Dt) and to the credit are performed (further - Kt):

1) on balance sheet accounts:

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

1052 "Correspondent accounts in other banks"

Kt 2210 "The financial assets accepted in trust management";

2) on off-balance accounts:

Dt 7535 "Mortgage loans on which rights to claim are accepted in trust management"

7601 "Money"

7602 "The affined precious metals"

Kt 7661 "Receipt of assets from the client".

8. When making of transactions by bank with the assets accepted in trust management, receipt of investment revenue (expense) in addition to the accounting entries provided by this Instruction accounting entries on the debit/credit of the balance sheet accounts 1051 "Correspondent Account in National Bank of the Republic of Kazakhstan", 1052 "Correspondent accounts in other banks" and to credit/output of the balance sheet account 2210 "The Financial Assets Accepted in Trust Management" respectively are performed.

Paragraph 2. Accounting of the money accepted in trust management and placed in the affined precious metals, and accepted in trust management
the affined precious metals

9. In case of placement of the money accepted in trust management in the affined precious metals, the following accounting entry is performed:

Dt 7602 "The affined precious metals"

Kt 7601 "Money".

10. When carrying out revaluation at fair value of the affined precious metals the following accounting entries are performed:

1) in case of excess of fair value of the affined precious metals over their book value:

Dt

7602

"The affined precious metals"

Kt

7664

"Income from asset revaluation at fair value"

2) in case of excess of book value of the affined precious metals over their fair value:

Dt

7684

"Expenses from asset revaluation at fair value"

Kt

7602

"The affined precious metals".

11. In case of placement of the affined precious metals which are in trust management into the metal account, the following accounting entry is performed:

Dt 7604 "The deposits placed"

Kt 7602 "The affined precious metals".

12. When charging remuneration on the metal account according to the agreement of the metal account the following accounting entry is performed:

Dt 7610th "Remuneration"

Kt 7662 "Income in remuneration type".

13. In case of receipt of the added remuneration on the metal account the following accounting entry is performed:

Dt 7601 "Money"

Kt 7610th "Remuneration".

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