Approved by the Resolution of Board of the Central bank of the Republic of Uzbekistan of June 11, 2005 No. 13/5

The instruction for financial accounting of the invaluable and fast-wearing-out objects in banks of the Republic of Uzbekistan (new edition)

This Instruction is developed according to the laws of the Republic of Uzbekistan "About the Central bank of the Republic of Uzbekistan", "About banks and banking activity", "About financial accounting" and determines accounting treatment for the invaluable and fast-wearing-out objects (further - MBP) in banks of the Republic of Uzbekistan according to international accounting standards.

I. General provisions

1. The bank needs to develop for practical application of requirements for financial accounting of MBP based on this Instruction the internal procedure.

2. For the purpose of this Instruction the following concepts are used:

the invaluable and fast-wearing-out objects (MBP) are the tangible assets used in banking activity and answering to one of the following criteria:

a) service life no more than one year;

b) objects cost to the fiftyfold size of the basic settlement size established in the Republic of Uzbekistan (at the time of acquisition), for unit (set) irrespective of service life. The head of bank has the right to set for accounting year smaller limit of cost of objects for their accounting as a part of MBP.

Irrespective of service life and cost MBP are included:

a) special tools and devices (tools and devices of purpose intended for serial and mass production of certain products or for production of the individual order);

b) special and sanitary clothes, special footwear;

c) bedding;

d) office supplies (calculators, desktop devices etc.);

e) kitchen and table stock, and also table linen;

e) shoddy (not title) constructions and devices which costs on construction belong on cost of construction repair work;

g) replaceable tools and other equipment with useful life less than one year;

actual cost - the amount of all made expenses on acquisition of MBP, their conversion and reduction of current status and the place;

actual cost - agreed sum on exchange of assets or covering of obligations between not interconnected and persons interested to make the transaction under general conditions the informed parties;

net value of realization is sales price less necessary for the conclusion of the transaction and implementation of realization and accrued expenses in the course of regular productive activity. Net value of realization means net amount which in everyday occurences the bank expects to receive from realization of MBP. Net value of realization of MBP can differ from the cost remaining after deduction from the actual cost of costs for their realization.

II. Accounting of acquisition of the invaluable and fast-wearing-out objects

3. Acquisition of MBP with advance payment of cost:

1) the complete or partial advance payment of cost of MBP is drawn up by the following accounting entry:

Dt 19909 "Accounts to obtaining - For inventory items"

Kt - "Corresponding account of bank or the on-demand deposit account of the client" (if the on-demand deposit account of the supplier is served by this bank);

2) MBP is credited on warehouse based on the source documents confirming acquisition and drawn up by the following accounting entry:

Dt 19921 "The invaluable and fast-wearing-out objects and other values in warehouse"

Kt 19909 "Accounts to obtaining - For inventory items".

4. If payment is made after receipt of MBP, the following accounting entries are made:

1) in case of receipt of MBP:

Dt 19921 "The invaluable and fast-wearing-out objects and other values in warehouse"

Kt 29802 "Accounts for payment - For inventory items and services"

2) in case of payment of cost of MBP:

Dt 29802 "Accounts for payment - For inventory items and services"

Kt "Corresponding account of bank or the on-demand deposit account of the client" (if the on-demand deposit account of the supplier is served by this bank).

5. By transfer of MBP from head bank / branch in branch / head bank the requirement and the power of attorney issued (in accordance with the established procedure) to the responsible person by the relevant branch or head bank are filed in documents of the present day of bank, and the following accounting entry is made:

Dt 16104 "To obtaining from Head office / branch - Inventory items"

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