1. This Instruction for conducting financial accounting of transactions for insurance and reinsurance (further – the Instruction) 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" and the subitem 1) of Item 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 of the transactions on insurance and reinsurance performed by the insurance (reinsurance) organizations, branches of the insurance (reinsurance) nonresident organizations of the Republic of Kazakhstan (further – the insurance (reinsurance) organizations), insurance brokers and branches of insurance nonresident brokers of the Republic of Kazakhstan (further – insurance brokers).

2. Requirements to disclosure of the financial reporting by the insurance (reinsurance) organizations and insurance brokers, the reporting under accounting data branches of the insurance (reinsurance) nonresident organizations of the Republic of Kazakhstan and branches of insurance nonresident brokers of the Republic of Kazakhstan, and also the requirement to forming of accounting policy are established by international accounting standards.

3. In the Instruction the concepts provided by the Civil code of the Republic of Kazakhstan, the laws of the Republic of Kazakhstan of December 18, 2000 "About insurance activity" of June 3, 2003 "About fund of guaranteeing insurance payments", of February 28, 2007 "About financial accounting and the financial reporting" and international accounting standards are used.

4. Making of the additional accounting entries which are not contradicting the Instruction, requirements of the legislation of the Republic of Kazakhstan about financial accounting and the financial reporting and the Law of the Republic of Kazakhstan of December 18, 2000 "About insurance activity" is allowed.

Chapter 2. Financial accounting of transactions on general insurance (reinsurance)

Paragraph 1. Accounting of transactions on insurance (reinsurance) according to insurance contracts (reinsurance)

5. The amount of the insurance premium which is due according to the insurance contract (reinsurance) is recognized as the income from the effective date of the insurance contract (reinsurance). If the effective date of insurance protection according to the insurance contract (reinsurance) comes after the date of entry into force of the insurance contract (reinsurance), the amount of insurance premium is recognized as the income from the date of the introduction of insurance protection according to the insurance contract (reinsurance).

6. From the date of entry into force of the insurance contract (reinsurance) on the amount of the insurance premium specified in the insurance contract (reinsurance) the following accounting entries are performed:

1) in case of entry into force of the insurance contract (reinsurance):

2) if day of the beginning of action of insurance protection according to the insurance contract (reinsurance), comes after day of entry into force of the insurance contract (reinsurance):

3) if day of the beginning of action of insurance protection matches or comes before day of entry into force of the insurance contract (reinsurance):

7. In case of the actual obtaining by the insurance (reinsurance) organization of the added insurance premium the following accounting entry is performed:

8. When implementing advance payment by the insurer (reinsurer) of insurance premium the following accounting entries are performed:

1) in case of the actual receipt of advance payment of insurance premium:

2) from the date of the beginning of action of insurance protection according to the insurance contract (reinsurance):

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