INSTRUCTION OF CENTRAL BANK OF THE RUSSIAN FEDERATION

of December 18, 2018 No. 5017-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, Art. 3400; No. 27, Art. 3950; No. 31, Art. 4852; No. 32, Art. 5115; No. 49, the Art. 7524), 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, Art. 65; No. 31, Art. 4861; No. 49, the Art. 7516) 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 December 14, 2018 No. 38) 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, on July 18, 2018 No. 51623, the following changes.

1.1. Subitems 2.13.1 - 2.13.3 Items 2.13 to state in the following edition:

"2.13.1. Procedure for reflection in financial accounting of reserves on possible losses.

Forming of reserves on possible losses on financial assets is performed 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 according to loans, the loan and equated to it debt", the registered Ministry of Justice of the Russian Federation on July 12, 2017 No. 47384, on October 3, 2018 No. 52308 (further - the Provision of the Bank of Russia No. 590-P), the Provision of the Bank of Russia of October 23, 2017 No. 611-P "About procedure for forming by credit institutions of reserves on possible losses", the registered Ministry of Justice of the Russian Federation on March 15, 2018 No. 50381 (further - the Provision of the Bank of Russia No. 611-P).

The reserve amount on possible losses on principal debt on the financial asset estimated on depreciated cost and at fair value through profit or loss is reflected accounting entry:

The debit of the account No. 70606 "Expenses" (in OFR on symbols of the Section 7 "Expenses on Forming of Reserves on Possible Losses" of part 3 "Interest expenses, expenses from adjustments and expenses on forming of reserves on possible losses")

Credit of the account on accounting of reserves for possible losses.

Recovery of the amount of reserve on possible losses on principal debt on the financial asset estimated on depreciated cost and at fair value through profit or loss is reflected accounting entry:

The debit of the account on accounting of reserves on possible losses

The account No. 70601 credit "Income" (in OFR on symbols of the Section 5 "Income from Recovery (Reduction) of Reserves by Possible Losses" of part 1 "Interest incomes, the income from adjustments and from recovery (reduction) of reserves by possible losses").

The reserve amount on possible losses according to requirements for receipt of interest incomes for the financial asset estimated on depreciated cost and at fair value through profit or loss is reflected accounting entry:

The debit of the account No. 70606 "Expenses" (in OFR on symbols of the Section 7 "Expenses on Forming of Reserves on Possible Losses" of part 3 "Interest expenses, expenses from adjustments and expenses on forming of reserves on possible losses")

Account No. 47425 credit "Reserves on possible losses".

Recovery of the amount of reserve on possible losses according to requirements for receipt of interest incomes for the financial asset estimated on depreciated cost and at fair value through profit or loss is reflected accounting entry:

Debit of the account No. 47425 "Reserves on possible losses"

The account No. 70601 credit "Income" (in OFR on symbols of the Section 5 "Income from Recovery (Reduction) of Reserves by Possible Losses" of part 1 "Interest incomes, the income from adjustments and from recovery (reduction) of reserves by possible losses").

The reserve amount on possible losses according to requirements for other incomes for the financial asset estimated on depreciated cost and at fair value through profit or loss is reflected accounting entry:

The debit of the account No. 70606 "Expenses" (in OFR on symbols of the Section 7 "Expenses on Forming of Reserves on Possible Losses" of part 3 "Interest expenses, expenses from adjustments and expenses on forming of reserves on possible losses")

Account No. 47425 credit "Reserves on possible losses".

Recovery of the amount of reserve on possible losses according to requirements for other incomes for the financial asset estimated on depreciated cost and at fair value through profit or loss is reflected accounting entry:

Debit of the account No. 47425 "Reserves on possible losses"

The account No. 70601 credit "Income" (in OFR on symbols of the Section 5 "Income from Recovery (Reduction) of Reserves by Possible Losses" of part 1 "Interest incomes, the income from adjustments and from recovery (reduction) of reserves by possible losses").

The reserve amount on possible losses on principal debt on the financial asset estimated at fair value through other comprehensive income is reflected accounting entry:

The debit of the account No. 70606 "Expenses" (in OFR on symbols of the Section 7 "Expenses on Forming of Reserves on Possible Losses" of part 3 "Interest expenses, expenses from adjustments and expenses on forming of reserves on possible losses")

Account No. 10631 credit "Reserves on possible losses".

Recovery of the amount of reserve on possible losses on principal debt on the financial asset estimated at fair value through other comprehensive income is reflected accounting entry:

Debit of the account No. 10631 "Reserves on possible losses"

The account No. 70601 credit "Income" (in OFR on symbols of the Section 5 "Income from Recovery (Reduction) of Reserves by Possible Losses" of part 1 "Interest incomes, the income from adjustments and from recovery (reduction) of reserves by possible losses").

The reserve amount on possible losses according to requirements for receipt of interest incomes for the financial asset estimated at fair value through other comprehensive income is reflected accounting entry:

The debit of the account No. 70606 "Expenses" (in OFR on symbols of the Section 7 "Expenses on Forming of Reserves on Possible Losses" of part 3 "Interest expenses, expenses from adjustments and expenses on forming of reserves on possible losses")

Account No. 10631 credit "Reserves on possible losses".

Recovery of the amount of reserve on possible losses according to requirements for receipt of interest incomes for the financial asset estimated at fair value through other comprehensive income is reflected accounting entry:

Debit of the account No. 10631 "Reserves on possible losses"

The account No. 70601 credit "Income" (in OFR on symbols of the Section 5 "Income from Recovery (Reduction) of Reserves by Possible Losses" of part 1 "Interest incomes, the income from adjustments and from recovery (reduction) of reserves by possible losses").

The reserve amount on possible losses according to requirements for other incomes for the financial asset estimated at fair value through other comprehensive income is reflected accounting entry:

The debit of the account No. 70606 "Expenses" (in OFR on symbols of the Section 7 "Expenses on Forming of Reserves on Possible Losses" of part 3 "Interest expenses, expenses from adjustments and expenses on forming of reserves on possible losses")

Account No. 10631 credit "Reserves on possible losses".

Recovery of the amount of reserve on possible losses according to requirements for other incomes for the financial asset estimated at fair value through other comprehensive income is reflected accounting entry:

Debit of the account No. 10631 "Reserves on possible losses"

The account No. 70601 credit "Income" (in OFR on symbols of the Section 5 "Income from Recovery (Reduction) of Reserves by Possible Losses" of part 1 "Interest incomes, the income from adjustments and from recovery (reduction) of reserves by possible losses").

2.13.2. Reflection in financial accounting of provision under the expected credit losses on financial assets is performed as follows.

Adjustment (increase) of the created reserve at possible losses up to the provision amount under the expected credit losses on the financial asset estimated on depreciated cost is reflected accounting entry:

The debit of the account No. 70606 "Expenses" (in OFR on symbols of 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")

Credit of the account on accounting of adjustments of reserves for possible losses.

Adjustment (reduction) of the created reserve by possible losses to the provision amount under the expected credit losses on the financial asset estimated on depreciated cost is reflected accounting entry:

The debit of the account on accounting of adjustments of reserves on possible losses

The account No. 70601 credit "Income" (in OFR on symbols of 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 analytics on accounts on accounting of adjustments of reserves on possible losses only one remaining balance on the passive or active account is created.

After date of recognition of the financial asset estimated on depreciated cost, credit depreciated the decision on recovery (reduction earlier added) provision under the expected credit losses, the change of present value of settlement cash flows connected with temporary factor, as interest income is accepted by credit institution and is reflected accounting entry:

The debit of the account on accounting of adjustments of reserves on possible losses

The account No. 70601 credit "Income" (in OFR on symbols of the 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" of part 1 "Interest incomes, the income from adjustments and from recovery (reduction) of reserves by possible losses"), accounts No. 70606 "Expenses" (in OFR on symbols of the Section 5 "The Adjustments Reducing 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" of part 3 "Interest expenses, expenses from adjustments and expenses on forming of reserves on possible losses").

The reserve on possible losses on the financial asset estimated at fair value through the profit or loss created according to the procedure, provided by subitem 2.13.1 of this Item, in date of its forming (creation, recovery) is reflected the following accounting entries:

on the amount of the created reserve on possible losses:

The debit of the account on accounting of adjustments of reserves on possible losses

The account No. 70601 credit "Income" (in OFR on symbols of 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");

on the amount of the recovered (earlier created) reserve on possible losses:

The debit of the account No. 70606 "Expenses" (in OFR on symbols of 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")

Credit of the account on accounting of adjustments of reserves for possible losses.

Adjustment (increase) of the created reserve at possible losses up to the provision amount under the expected credit losses on the financial asset estimated at fair value through other comprehensive income is reflected accounting entry:

The debit of the account No. 70606 "Expenses" (in OFR on symbols of 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")

Account No. 10632 credit "Adjustment of reserves on possible losses".

Adjustment (reduction) of the created reserve by possible losses to the provision amount under the expected credit losses on the financial asset estimated at fair value through other comprehensive income is reflected accounting entry:

Debit of the account No. 10633 "Adjustment of reserves on possible losses"

The account No. 70601 credit "Income" (in OFR on symbols of 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").

2.13.3. Procedure for reflection in financial accounting of provision under the expected credit losses in case of reclassification of financial assets.

For date of reclassification of financial asset from category estimated on depreciated cost at category estimated at fair value through profit or loss credit institution reflects in accounts on accounting of adjustments of reserves on possible losses the amount of the reserve created on this financial asset on possible losses by the following accounting entries:

The debit of the account on accounting of adjustments of reserves on possible losses

The account No. 70601 credit "Income" (in OFR on symbols of 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") or

The debit of the account No. 70606 "Expenses" (in OFR on symbols of 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")

Credit of the account on accounting of adjustments of reserves for possible losses.

For date of reclassification of financial asset from category estimated on depreciated cost at category estimated at fair value through other comprehensive income credit institution writes off the provision under the expected credit losses created earlier on this financial asset, the following accounting entries:

The debit of the account on accounting of adjustments of reserves on possible losses

Account No. 10632 credit "Adjustment of reserves on possible losses" or

Debit of the account No. 10633 "Adjustment of reserves on possible losses"

Credit of the account on accounting of adjustments of reserves for possible losses.

The reserve on possible losses created on the financial asset estimated on depreciated cost is carried forward to account on accounting of reserves on possible losses on the financial asset estimated at fair value through other comprehensive income, the following accounting entry:

The debit of the account on accounting of reserves on possible losses

Account No. 10631 credit "Reserve on possible losses".

For date of reclassification of financial asset from category estimated at fair value through other comprehensive income at category estimated on depreciated cost credit institution writes off the provision under the expected credit losses created earlier on this financial asset, the following accounting entries:

Debit of the account No. 10632 "Adjustment of reserves on possible losses"

Credit of the account on accounting of adjustments of reserves for possible losses or

The debit of the account on accounting of adjustments of reserves on possible losses

Account No. 10633 credit "Adjustment of reserves on possible losses".

The reserve on possible losses created on the financial asset estimated at fair value through other comprehensive income is carried forward to account on accounting of reserves on possible losses on the financial asset estimated on depreciated cost, the following accounting entry:

Debit of the account No. 10631 "Reserve on possible losses"

Credit of the account on accounting of reserves for possible losses.

For date of reclassification of financial asset from category estimated at fair value through other comprehensive income at category estimated at fair value through profit or loss credit institution writes off the provision under the expected credit losses created earlier on this financial asset, the following accounting entries:

Debit of the account No. 10632 "Adjustment of reserves on possible losses"

Credit of the account on accounting of adjustments of reserves for possible losses or

The debit of the account on accounting of adjustments of reserves on possible losses

Account No. 10633 credit "Adjustment of reserves on possible losses".

And at the same time reflects in accounts on accounting of adjustments of reserves on possible losses the amount of the created reserve on possible losses on the financial asset estimated at fair value through profit or loss, the following accounting entries:

The debit of the account on accounting of adjustments of reserves on possible losses

The account No. 70601 credit "Income" (in OFR on symbols of 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") or

The debit of the account No. 70606 "Expenses" (in OFR on symbols of 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")

Credit of the account on accounting of adjustments of reserves for possible losses.

The reserve on possible losses created on the financial asset estimated at fair value through other comprehensive income is carried forward to account on accounting of reserves on possible losses on the financial asset estimated at fair value through profit or loss, the following accounting entry:

Debit of the account No. 10631 "Reserve on possible losses"

Credit of the account on accounting of reserves for possible losses.

For date of reclassification of financial asset estimated at fair value through profit or loss at category estimated on depreciated cost credit institution creates provision under the expected credit losses of category accounting entry:

The debit of the account No. 70606 "Expenses" (in OFR on symbols of 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")

Credit of the account on accounting of adjustments of reserves for possible losses.

For date of reclassification of financial asset estimated at fair value through profit or loss at category estimated at fair value through other comprehensive income credit institution creates provision under the expected credit losses of category the following accounting entries:

on the amount of the reserve created before reclassification on possible losses on the financial asset estimated at fair value through profit or loss:

Debit of the account No. 10633 "Adjustment of reserves on possible losses"

Credit of the account on accounting of adjustments of reserves for possible losses;

on adjustment amount of the created reserve on possible losses to provision under the expected credit losses:

The debit of the account on accounting of adjustments of reserves on possible losses

Account No. 10632 credit "Adjustment of reserves on possible losses" or

Debit of the account No. 10633 "Adjustment of reserves on possible losses"

Credit of the account on accounting of adjustments of reserves for possible losses.

In case of reclassification of separate financial asset or several financial assets determination of size of provision under the expected credit losses concerning which write-off of provision under the expected credit losses was made on group basis is made in the amount determined by credit institution based on own professional judgment.".

1.2. In paragraph four of subitem 3.4.1 of Item 3.4 of the word "No. 283-P" shall be replaced with words "No. 611-P".

1.3. In Item 4.14:

state subitem 4.14.2 in the following edition:

"4.14.2. Adjustment (increase) of the created reserve at possible losses up to the provision amount under the expected credit losses on the acquired right to claim estimated at fair value through other comprehensive income is reflected accounting entry:

The debit of the account No. 70606 "Expenses" (in OFR on symbols of 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")

Account No. 10632 credit "Adjustment of reserves on possible losses".

Adjustment (reduction) of the created reserve by possible losses to the provision amount under the expected credit losses on the acquired right to claim estimated at fair value through other comprehensive income is reflected accounting entry:

Debit of the account No. 10633 "Adjustment of reserves on possible losses"

The account No. 70601 credit "Income" (in OFR on symbols of 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")".;

add with subitem 4.14.3 of the following content:

"4.14.3. The reserve on possible losses on the acquired right to claim estimated at fair value through the profit or loss created according to the procedure, provided by subitem 2.13.1 of Item 2.13 of this provision, in date of its forming (creation, recovery) is reflected the following accounting entries:

on the amount of the created reserve on possible losses:

Debit of the account No. 47805 "Adjustment of reserves on possible losses"

The account No. 70601 credit "Income" (in OFR on symbols of 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");

on the amount of the recovered (earlier created) reserve on possible losses:

The debit of the account No. 70606 "Expenses" (in OFR on symbols of 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")

Account No. 47806 credit "Adjustment of reserves on possible losses".".

2. This Instruction becomes effective after 10 days later for its official publication.

 

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