INSTRUCTION OF CENTRAL BANK OF THE RUSSIAN FEDERATION

of October 2, 2017 No. 4556-U

About modification of the Provision of the Bank of Russia of December 22, 2014 No. 446-P "About procedure for determination of the income, expenses and other comprehensive income of credit institutions"

1. According to article 57 of 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. 3891; No. 27, Art. 4225, Art. 4273, Art. 4295; 2017, No. 1, Art. 46; No. 14, Art. 1997; No. 18, Art. 2661, Art. 2669; No. 27, Art. 3950; No. 30, Art. 4456; No. 31, the Art. 4830) and 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 September 27, 2017 No. 26) to bring in the Provision of the Bank of Russia of December 22, 2014 No. 446-P "About procedure for determination of the income, expenses and other comprehensive income of credit institutions", registered by the Ministry of Justice of the Russian Federation on February 6, 2015 No. 35910, on December 8, 2015 No. 40025, the following changes.

1.1. In paragraph three of Item 1.2 of the word "acquired equity and debt securities, available for sale" shall be replaced with words "the financial assets estimated at fair value through other comprehensive income".

1.2. In paragraph three of Item 1.3 of the word "acquired equity and debt securities, available for sale" shall be replaced with words "the financial assets estimated at fair value through other comprehensive income".

1.3. Declare Item 1.5 invalid.

1.4. In Item 1.6:

in paragraph three of the word "according to the procedure and the size, provided by the relevant agreement" to exclude;

in paragraph four the word is "begun" to be replaced with the word "is accepted", the words "size of interest rate (as a percentage annual) and" to exclude;

in paragraphs five, the ninth, tenth, twelfth shall be replaced with words the words "discount rates" "effective interest rate";

in paragraph six "discounted" to replace the word with the word "amortized", shall be replaced with words the words "Discount rate" "Effective interest rate";

in paragraph seven "discounted" to replace the word with the word "amortized";

in paragraph eight "discounted" to replace the word with the word "amortized", shall be replaced with words the words "discount rate" "effective interest rate";

in paragraph eleven "discounted" to replace the word with the word "amortized", shall be replaced with words the words "discount rates" "effective interest rate";

in the paragraph the thirteenth shall be replaced with words the words "discount rates" "effective interest rate", "discounted" to replace the word with the word "amortized".

1.5. In the paragraph the second Item 1. 7, item 4. Item 17.9 of the word "discount rates" shall be replaced with words 12, "effective interest rate".

1.6. The second offer of Item 1.10 to state in the following edition: "When the Provision of the Bank of Russia of February 27, 2017 No. 579-P "About the Chart of accounts of financial accounting for credit institutions and procedure for its application", the registered Ministry of Justice of the Russian Federation on March 20, 2017 No. 46021, on July 20, 2017 No. 47474 (further - the Provision of the Bank of Russia No. 579-P), for accounting of disposal (realization) of separate asset types is not determined the account of the second procedure on accounting of disposal (realization), it is necessary to apply the balance sheet account on accounting of disposal (realization) of property.".

1.7. Add Chapter 1 with Items 1.13 and 1.14 of the following content:

"1.13. On granted loans and the credits on which the rights to claim are acquired, on the other placed means, including on the other acquired rights to claim on the placed deposits, discounted bills analytics are kept on OFR symbols by categories: estimated on depreciated cost, estimated at fair value through profit or loss, estimated at fair value through other comprehensive income.

1.14. On the obtained credits, on the attracted deposits of legal entities, on the other raised funds of legal entities, on the attracted deposits of clients - physical persons, on the other raised funds of clients - physical persons analytics are kept on OFR symbols by categories: estimated on depreciated cost, estimated at fair value through profit or loss.".

1.8. To declare the paragraph of the sixth of Item 2.3 invalid.

1.9. Paragraph the fourth item 4. 1, subitems 4.1.1 - 4.1.4 items 4. 1, Items 4.2 - 4.4 to recognize invalid.

1.10. In Item 4.8 of the word "Items 4.2 and 4.5" shall be replaced with words "Item 4.5".

1.11. Declare Item 4.14 invalid.

1.12. To state the name of Chapter 5 in the following edition:

"Chapter 5. The income from recovery (reduction) of reserves by possible losses, provisions under the expected credit losses".

1.13. State Item 5.1 in the following edition:

"5.1. The income connected with recovery (reduction) of reserves by possible losses is determined according to the Provision of the Bank of Russia of June 28, 2017 No. 590-P "About procedure for forming by credit institutions of reserves on possible losses by loans, the loan and equated to it debt", the registered Ministry of Justice of the Russian Federation on July 12, 2017 No. 47384 (further - the Provision of the Bank of Russia No. 590-P), the Provision of the Bank of Russia of March 20, 2006 No. 283-P "About procedure for forming by credit institutions of reserves on possible losses", the registered Ministry of Justice of the Russian Federation on April 25, 2006 No. 7741, on July 2, 2007 No. 9739, on December 6, 2007 No. 10639, on September 10, 2008 No. 12260, on August 5, 2009 No. 14477, on December 17, 2009 No. 15670, on May 24, 2011 No. 20837, on December 21, 2011 No. 22714, on December 18, 2012 No. 26162, on December 11, 2013 No. 30582, on October 20, 2014 No. 34363, on September 25, 2015 No. 39003, on August 26, 2016 No. 43443 (further - the Provision of the Bank of Russia No. 283-P), the Instruction of the Bank of Russia of June 22, 2005 No. 1584-U "About forming and the size of reserve on possible losses under transactions of credit institutions with residents of offshore zones", the registered Ministry of Justice of the Russian Federation on July 15, 2005 No. 6799 (further - the Instruction of the Bank of Russia No. 1584-U), and the Instruction of the Bank of Russia of November 17, 2011 No. 2732-U "About features of forming by credit institutions of reserve on possible losses on transactions with securities, the rights to which make sure depositaries", the registered Ministry of Justice of the Russian Federation on December 12, 2011 No. 22544, on August 1, 2012 No. 25070, on December 11, 2014 No. 35134, on December 18, 2015 No. 40170 (further - the Instruction of the Bank of Russia No. 2732-U), and are reflected in correspondence with accounts on accounting of reserves on possible losses.

The adjustments increasing interest incomes on difference between reserves on possible losses and provisions under the expected credit losses are determined according to the Provision of the Bank of Russia No. 579-P and are reflected in correspondence with accounts on accounting of adjustments of reserves on possible losses.".

1.14. In Item 5.2:

in paragraph one of the word "listed in Chapter 4 this provision" to exclude;

after paragraph one to add with the paragraph of the following content:

"The adjustments increasing interest incomes on difference between reserves on possible losses and provisions under the expected credit losses are reflected in OFR in the Section 7 "The Adjustments Increasing Interest Incomes on Difference between Reserves on Possible Losses and Provisions under the Expected Credit Losses" of part 1 "Interest incomes, the income from adjustments and from recovery (reduction) of reserves by possible losses".";

in subitem 5.2.5 of the word "available for sale and withheld before repayment" shall be replaced with words "estimated on depreciated cost".

1.15. In Item 5.3:

the paragraph one to state in the following edition:

"5.3. The income from recovery (reduction) of reserves by possible losses on assets, including requirements, and the other transactions which are not bringing in interest income belongs to other operating incomes.";

add with subitem 5.3.4 of the following content:

"5.3.4. The adjustments increasing operating incomes on difference between reserves on possible losses and provisions under the expected credit losses are reflected in OFR on symbol 28205 Sections 8 "Other Operating Incomes" of part 2 "Operating incomes".".

1.16. In Item 7.2:

in the paragraph the second subitem 7.2.1 after the words "in foreign currency" to add with the words "except the acquired equity securities estimated at fair value through other comprehensive income", shall be replaced with words the words "on Section 6 symbols" "on symbol of 26301 Sections 6";

declare subitem 7.2.2 invalid.

1.17. State Item 7.3 in the following edition:

"7.3. The income from derivative financial instruments and other agreements to which the Provision of the Bank of Russia No. 372-P extends is reflected in OFR on symbols of the Section 5 "Income from Transactions with Derivative Financial Instruments and from Hedging Transactions" of part 2 "Operating incomes".".

1.18. In paragraph seven of Item 8.2 of the word "on the corresponding symbols of Section 6" shall be replaced with words "on symbol of 26301 Sections 6", to "increase" to replace the word with the word to "reduction".

1.19. In paragraph five of Item 8.3 of the word "on the corresponding symbols of Section 6" shall be replaced with words "on symbol of 26301 Sections 6".

1.20. Declare Item 9.3 invalid.

1.21. In Item 10.1 of the word "on the corresponding symbols of the Section 6 "Income from Transactions with Foreign Currency and Precious Metals and Their Revaluations" of part 2 shall be replaced with words "Operating incomes" "on symbols 26101, 26201".

1.22. The fourth Item 10.6 to state the paragraph in the following edition:

"The income from revaluation of means in foreign currency, except the acquired equity securities estimated at fair value through other comprehensive income is reflected in OFR on symbol 26301.".

1.23. Declare Item 10.7 invalid.

1.24. In Item 11.1 of the word "on symbols 26401 - 26405" shall be replaced with words "on symbol 26401".

1.25. In Item 11.4 of the word "on symbols 26501 - 26505" shall be replaced with words "on symbol 26501".

1.26. Declare Item 11.5 invalid.

1.27. Paragraph one of Item 13. Item 15.3 after words of "credit institution" to add 1, with words ", and the income from recovery of the amounts of reserves - estimative obligations of not credit nature".

1.28. Item 13 paragraph two. 2, Item 25 paragraph two. 2, Items 25. 25.12, 26.12, 26.13, 26.15 after words of "credit institution" to add 7, with words ", and contributions to reserves - estimative obligations of not credit nature".

1.29. In Item 13.8 of the word of "appendix 9 to appendix to the Provision of the Bank of Russia No. 385-P" shall be replaced with words "appendices 7 to appendix to the Provision of the Bank of Russia No. 579-P".

1.30. To add Item 15.4 after words of "activities of credit institution" with words ", and the income from recovery of the amounts of reserves - estimative obligations of not credit nature".

1.31. Declare Item 17.11 invalid.

1.32. To state the name of Chapter 18 in the following edition:

"Chapter 18. Expenses on forming (additional accrual) of reserves on possible losses, provisions under the expected credit losses".

1.33. State Item 18.1 in the following edition:

"18.1. The expenses connected with forming (additional accrual) of reserves on possible losses are determined according to the Provision of the Bank of Russia No. 590-P, the Provision of the Bank of Russia No. 283-P, the Instruction of the Bank of Russia No. 1584-U i the Instruction of the Bank of Russia No. 2732-U i are reflected in correspondence with accounts on accounting of reserves on possible losses.

The adjustments increasing interest expenses on difference between provisions under the expected credit losses and reserves on possible losses are determined according to the Provision of the Bank of Russia No. 579-P and are reflected in correspondence with accounts on accounting of adjustments of reserves on possible losses.".

1.34. In Item 18.2:

in paragraph one of the word "listed in Chapter 4 this provision" to exclude;

after paragraph one to add with the paragraph of the following content:

"The adjustments increasing interest expenses on difference between provisions under the expected credit losses and reserves on possible losses are reflected in OFR in the Section 8 "The Adjustments Increasing Interest Expenses on Difference between Provisions under the Expected Credit Losses and Reserves on Possible Losses" of part 3 "Interest expenses, expenses from adjustments and expenses on forming of reserves on possible losses".";

in subitem 18.2.5 of the word "available for sale and withheld before repayment" shall be replaced with words "estimated on depreciated cost".

1.35. In Item 18.3:

the paragraph one to state in the following edition:

"18.3. Expenses on forming (additional accrual) of reserves on possible losses on assets, including requirements, and the other transactions which are not bringing in interest income belong to other operating expenses.";

add with subitem 18.3.4 of the following content:

"18.3.4. The adjustments increasing operating expenses on difference between provisions under the expected credit losses and reserves on possible losses are reflected in OFR on symbol 47305.".

1.36. In Item 20.2:

subitem 20.2.1 paragraph two after the words "in foreign currency" to add with the words "except the acquired equity securities estimated at fair value through other comprehensive income", shall be replaced with words the words "on the corresponding symbols of Section 6" "on symbol of 46301 Sections 6";

declare subitem 20.2.2 invalid.

1.37. State Item 20.5 in the following edition:

"20.5. Expenses on derivative financial instruments and other agreements to which the Provision of the Bank of Russia No. 372-P extends are reflected in OFR on symbols of the Section 5 "Expenses on Transactions with Derivative Financial Instruments and on Hedging Transactions" of part 4 "Operating expenses".".

1.38. In paragraph three of Item 21.2 of the word "on the corresponding symbols of Section 6" shall be replaced with words "on symbol of 46301 Sections 6", to "reduction" to replace the word with the word to "increase".

1.39. In paragraph three of Item 21.3 of the word "on the corresponding symbols of Section 6" shall be replaced with words "on symbol of 46301 Sections 6", words of "the specified obligations" shall be replaced with words "the specified requirements".

1.40. Declare Item 22.3 invalid.

1.41. In Item 23.1 of the word "on the corresponding symbols of the Section 6 "Expenses on Transactions with Foreign Currency and Precious Metals and Their Revaluation" of part shall be replaced with words 4 "Operating expenses" "on symbols 46101, 46201".

1.42. The fourth Item 23.6 to state the paragraph in the following edition:

"Expenses from revaluation of means in foreign currency, except the acquired equity securities estimated at fair value through other comprehensive income are reflected in OFR on symbol 46301.".

1.43. Declare Item 23.7 invalid.

1.44. In Item 24.1 of the word "on the corresponding symbols of the Section 6 "Expenses on Transactions with Foreign Currency and Precious Metals and Their Revaluation" of part shall be replaced with words 4 "Operating expenses" "on symbol 46401".

1.45. State Item 24.4 in the following edition:

"24.4. Expenses from revaluation of precious metals are reflected in OFR on symbol 46501.".

1.46. Declare Item 24.5 invalid.

1.47. "The Section 8 "The Expenses Connected with Ensuring Activities of Credit Institution" to add Item 26.11 after words with words", and contributions to reserves - estimative obligations of not credit nature".

1.48. To add Item 26.21 after words of "activities of credit institution" with words ", and contributions to reserves - estimative obligations of not credit nature".

1.49. In Item 28.2:

in the paragraph the second words "the acquired securities, available for sale" shall be replaced with words "the financial assets estimated at fair value through other comprehensive income";

after the paragraph of the eighth to add with paragraphs of the following content:

"increases in fair value of hedging instrument if object of hedging is the equity financial instrument which changes of fair value are reflected as a part of other comprehensive income;

transfer within equity cumulative reduction of cost of hedging instrument from hedging of fair value of equity instruments which changes are reflected as a part of other comprehensive income;

the increase caused by change of credit risk, fair value of the financial liabilities estimated at fair value through profit or loss;

increases in provisions under the expected credit losses on the financial assets estimated at fair value through other comprehensive income.";

in subitem 28.2.5:

word in paragraph one "the subsection 7 "Value Addition of Hedging Instruments" shall be replaced with words "the subsection 8 "Value Addition of Hedging Instruments";

in the paragraph the second "the subsection 8 "Transfer in Structure of Profit and Loss of Cumulative Reduction of Cost of Hedging Instruments" shall be replaced with words words "the subsection 8 "Value Addition of Hedging Instruments".

1.50. In Item 28.3:

in the paragraph the second words "the acquired securities, available for sale" shall be replaced with words "the financial assets estimated at fair value through other comprehensive income";

after the paragraph of the eighth to add with paragraphs of the following content:

"reduction of fair value of hedging instrument if object of hedging is the equity financial instrument which changes of fair value are reflected as a part of other comprehensive income;

transfer within equity cumulative value addition of hedging instrument from hedging of fair value of equity instruments which change are reflected as a part of other comprehensive income;

the reduction caused by change of credit risk, the financial liabilities estimated at fair value through profit or loss;

reduction of provisions under the expected credit losses on the financial assets estimated at fair value through other comprehensive income.";

in subitem 28.3.6:

word in paragraph one "the subsection 7 "Reduction of Cost of Hedging Instruments" shall be replaced with words "the subsection 8 "Reduction of Cost of Hedging Instruments";

in the paragraph the second "the subsection 8 "Transfer in Structure of Profit and Loss of Cumulative Value Addition of Hedging Instruments" shall be replaced with words words "the subsection 8 "Reduction of Cost of Hedging Instruments".

1.51. In appendix:

in part 1:

in Section 1:

to state the name of subsection 6 in the following edition:

"6. On investments in the debt securities estimated at fair value through other comprehensive income (except bills of exchange):";

to state the name of subsection 7 in the following edition:

"7. On investments in the debt securities estimated on depreciated cost (except bills of exchange):";

in Section 3:

to state the name of Section 3 in the following edition:

"Section 3. The adjustments increasing interest incomes on difference between the interest incomes for the accounting period calculated according to application of effective interest rate, and the interest incomes added without application of effective interest rate";

to state the name of subsection 6 in the following edition:

"6. On investments in the debt securities estimated at fair value through other comprehensive income (except bills of exchange):";

to state the name of subsection 7 in the following edition:

"7. On investments in the debt securities estimated on depreciated cost (except bills of exchange):";

to state the name of Section 4 in the following edition:

"Section 4. The adjustments reducing interest expenses on difference between the interest expenses for the accounting period calculated according to application of effective interest rate, and the interest expenses added without application of effective interest rate";

in Section 5:

to state the name of subsection 5 in the following edition:

"5. On investments in the debt securities estimated at fair value through other comprehensive income (except bills of exchange):";

to state the name of subsection 6 in the following edition:

"6. On investments in the debt securities estimated on depreciated cost (except bills of exchange):";

after the line "Total according to Section 6" to add with lines of the following content:

 

	Section 7. The adjustments increasing interest incomes on difference between reserves on possible losses and provisions under the expected credit losses
	1. On granted loans and the credits on which the rights to claim are acquired:
1	To the Ministry of Finance of the Russian Federation	17101		X

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