PROVISION OF CENTRAL BANK OF THE RUSSIAN FEDERATION

of December 3, 2015 No. 508-P

Industry standard of financial accounting of reserves - estimative obligations and contingent obligations by not credit financial credit institutions

Based on the Federal Law of July 10, 2002 No. 86-FZ "About the Central bank the Russian Federation (Bank of Russia)" (The Russian Federation Code, 2002, No. 28, Art. 2790; 2003, No. 2, Art. 157; No. 52, Art. 5032; 2004, No. 27, Art. 2711; No. 31, Art. 3233; 2005, No. 25, Art. 2426; No. 30, Art. 3101; 2006, No. 19, Art. 2061; No. 25, Art. 2648; 2007, No. 1, Art. 9, Art. 10; No. 10, Art. 1151; No. 18, Art. 2117; 2008, No. 42, Art. 4696, Art. 4699; No. 44, Art. 4982; No. 52, Art. 6229, Art. 6231; 2009, No. 1, Art. 25; No. 29, Art. 3629; No. 48, Art. 5731; 2010, No. 45, Art. 5756; 2011, No. 7, Art. 907; No. 27, Art. 3873; No. 43, Art. 5973; No. 48, Art. 6728; 2012, No. 50, Art. 6954; No. 53, Art. 7591, Art. 7607; 2013, No. 11, Art. 1076; No. 14, Art. 1649; No. 19, Art. 2329; No. 27, Art. 3438, Art. 3476, Art. 3477; No. 30, Art. 4084; No. 49, Art. 6336; No. 51, Art. 6695, Art. 6699; No. 52, Art. 6975; 2014, No. 19, Art. 2311, Art. 2317; No. 27, Art. 3634; No. 30, Art. 4219; No. 40, Art. 5318; No. 45, Art. 6154; No. 52, Art. 7543; 2015, No. 1, Art. 4, Art. 37; No. 27, Art. 3958, Art. 4001; No. 29, Art. 4348, Art. 4357; No. 41, Art. 5639; No. 48, Art. 6699; 2016, No. 1, Art. 23, Art. 46, Art. 50; No. 26, Art. 3841; No. 27, the Art. 4225, the Art. 4273, the Art. 4295) and according to the solution of the Board of directors of the Bank of Russia (the minutes of the Board of directors of the Bank of Russia of November 27, 2015 No. 35) the Bank of Russia establishes for not credit financial credit institutions procedure for financial accounting of reserves - estimative obligations and contingent obligations.

Chapter 1. General provisions

1.1. In this Provision the terms determined in the values established in the International accounting standard (IAS) 37 "Estimative obligations, contingent obligations and contingent assets" (further - IFRS (IAS) 37) enacted in the territory of the Russian Federation by the order of the Ministry of Finance of the Russian Federation 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 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 No. 40940 ("The official Internet portal of legal information" (www.pravo.gov.ru), on February 8, 2016) <1> (further - the order of the Ministry of Finance of the Russian Federation No. 217n) are used if other is not provided by this Provision.

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<1> With the amendments 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 ("The official Internet portal of legal information" (www.pravo.gov.ru), on July 18, 2016).

For the purpose of this provision:

the reserve - the estimative obligation is understood as the obligation with uncertain completion date or the obligation of uncertain size;

contingent obligation is understood as possible obligation which availability will be confirmed with approach or not approach of one or several future events which emergence is not determined and which are not completely under control of not credit financial credit institution.

Besides, contingent obligation is the obligation which satisfies to determination of the obligation, but does not meet criteria of its recognition.

1.2. This Provision does not extend to reserves - estimative obligations and contingent obligations to which other International accounting standards, except IFRS (IAS) 37, extend including on:

employee benefits which procedure for financial accounting is established by the Provision of the Bank of Russia of September 4, 2015 No. 489-P "Industry standard of financial accounting of employee benefits by not credit financial credit institutions" registered by the Ministry of Justice of the Russian Federation on October 27, 2015 No. 39499 ("the Bulletin of the Bank of Russia" of November 6, 2015 No. 97 - 98);

agreements which procedure for financial accounting is established by the Provision of the Bank of Russia of September 4, 2015 No. 491-P "Industry standard of financial accounting in the insurance companies and societies of mutual insurance located in the territory of the Russian Federation", the registered Ministry of Justice of the Russian Federation on October 21, 2015 No. 39399 ("the Bulletin of the Bank of Russia" of November 9, 2015 No. 99 - 100), the Provision of the Bank of Russia of November 5, 2015 No. 502-P "Industry standard of financial accounting of transactions of the non-state pension funds connected with conducting activities by them as the insurer on mandatory pension insurance and activities for non-state pension provision", the registered Ministry of Justice of the Russian Federation on November 27, 2015 No. 39880 ("the Bulletin of the Bank of Russia" of December 11, 2015 No. 114), and also other agreements, the "Insurance contracts" falling within scope of the International accounting standard (IFRS) 4 (further - IFRS (IFRS) 4) enacted in the territory of the Russian Federation by the order of the Ministry of Finance of the Russian Federation No. 217n;

reserves - the estimative obligations and contingent obligations following from agreements in execution stage if only these agreements are not burdensome;

paragraph of the sixth ceased to be valid.

1.3. In case of application of this provision it is necessary to differentiate reserves - the estimative obligations recognized as the obligation (in case of assumption of possibility of receipt of reliable estimation), and the contingent obligations which are not recognized as the obligation.

Reserves - the estimative obligations recognized as the obligation represent the existing obligations arising from last events for which settlement disposal of the resources containing economic benefits is obviously possible.

The contingent obligations which are not recognized as the obligation represent:

or possible obligations as availability requires confirmation from not credit financial credit institution of the existing obligation which can lead to disposal of the resources containing economic benefits still;

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