INSTRUCTION OF CENTRAL BANK OF THE RUSSIAN FEDERATION

of June 21, 2018 No. 4827-U

About modification of the Provision of the Bank of Russia of October 2, 2017 No. 605-P "About procedure for reflection on accounts of financial accounting by credit institutions of transactions on placement of money on credit agreements, the transactions connected with implementation of transactions on acquisition of right of the requirement from the third parties of obligation fulfillment in cash, transactions according to obligations according to the issued bank guarantees and provision of money"

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, Art. 4830; No. 50, Art. 7562; 2018, No. 1, Art. 66; No. 9, Art. 1286; No. 11, Art. 1584, Art. 1588; No. 18, Art. 2557; No. 24, the Art. 3400), part 6 of article 21 of the Federal Law of December 6, 2011 No. 402-FZ "About financial accounting" (The Russian Federation Code, 2011, No. 50, Art. 7344; 2013, No. 26, Art. 3207; No. 27, Art. 3477; No. 30, Art. 4084; No. 44, Art. 5631; No. 51, Art. 6677; No. 52, Art. 6990; 2014, No. 45, Art. 6154; 2016, No. 22, Art. 3097; 2017, No. 30, Art. 4440; 2018, No. 1, the Art. 65) 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 June 15, 2018 No. 21) to bring in the Provision of the Bank of Russia of October 2, 2017 No. 605-P "About procedure for reflection on accounts of financial accounting by credit institutions of transactions on placement of money on credit agreements, the transactions connected with implementation of transactions on acquisition of right of the requirement from the third parties of obligation fulfillment in cash, transactions according to obligations according to the issued bank guarantees and provision of money", registered by the Ministry of Justice of the Russian Federation on December 11, 2017 No. 49198, the following changes.

1.1. State Item 1.3 in the following edition:

"1.3. Depreciated cost of financial asset is determined by banks with the universal license at least once a month the last calendar day of month, and also for dates of complete or partial repayment (return), including early repayment of financial asset.

Depreciated cost of financial asset will be determined by banks with the basic license and non-bank credit institutions (further - other credit institutions) at least once a quarter the last calendar day of quarter, and also for dates of complete or partial repayment (return), including early repayment of financial asset.

Frequency of determination of depreciated cost of financial asset affirms credit institution as accounting policy.".

1.2. State Item 1.7 in the following edition:

"1.7. Interest incomes on financial asset are reflected in the balance sheet account on accounting of the income per the day provided by terms of the contract for their payment.

In the last working day of month on accounting of the income all interest incomes on financial asset for the expired month, including for the remained non-working days are reflected in the balance sheet account if the last working day of month does not match with its termination, or from date of initial recognition of financial asset or from start date of the next percentage period.

The income which is directly connected with acquisition or disposal of financial asset, including remuneration, the commission, award, the allowance belongs to other incomes on financial asset.

Reflection of interest incomes on financial asset and other incomes on financial asset on balance sheet accounts on accounting of the income within a month affirms credit institution as accounting policy.

Reflection of other incomes on financial asset on balance sheet accounts on accounting of the income using criterion of materiality affirms credit institution as accounting policy.

Costs according to the transaction are reflected in the balance sheet account according to the expense accounting no later than the last working day of month.

Reflection of costs according to the transaction on balance sheet accounts on the expense accounting within a month affirms credit institution as accounting policy.

The costs according to the transaction recognized by credit institution insignificant one-timely are reflected in the balance sheet account according to the expense accounting that month in which the financial asset was acknowledged.

Criteria of materiality are developed taking into account Item 7 of the International accounting standard (IAS) 1 "Accounts presentation" enacted in the territory of the Russian Federation by the order of the Ministry of Finance of the Russian Federation No. 217n with the amendments enacted in the territory of the Russian Federation by the order of the Ministry of Finance of the Russian Federation No. 98n, the order of the Ministry of Finance of the Russian Federation No. 111n (further - IFRS (IAS) 1), and affirm credit institution as accounting policy.".

1.3. To state subitem 1.14.1 of Item 1.14 in the following edition:

"1.14.1. Calculation and adjustment of size of provision under the expected credit losses is performed by credit institution at least once a quarter the last calendar day of quarter, except cases of significant increase in credit risk.

Frequency of calculation and adjustment of size of provision under the expected credit losses affirms credit institution as accounting policy.".

1.4. To add subitem 3.4.3 of Item 3.4 with paragraphs of the following content:

"The remunerations for issue of the bank guarantee recognized by other credit institutions insignificant one-timely are reflected in the balance sheet account on accounting of the income.

Criteria of materiality are developed taking into account Item 7 IFRS (IAS) 1 and affirm other credit institutions as accounting policy.".

2. This Instruction is subject to official publication and becomes effective since January 1, 2019.

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