RESOLUTION OF BOARD OF THE NATIONAL BANK OF UKRAINE

of March 6, 2019 No. 47

About approval of Changes in the Instruction for financial accounting of fixed assets and intangible assets of banks of Ukraine

According to Articles 7, of 15, of 41, 56 Laws of Ukraine "About the National Bank of Ukraine", article 68 of the Law of Ukraine "About banks and banking activity", for the purpose of enhancement of regulatory legal acts which establish procedure for account management of financial accounting of banks of Ukraine the Board of the National Bank of Ukraine DECIDES:

1. Approve Changes the vinstruktion on financial accounting of fixed assets and intangible assets of banks of Ukraine approved by the resolution of Board of the National Bank of Ukraine of December 20, 2005 No. 480, registered in the Ministry of Justice of Ukraine on January 18, 2006 for No. 40/11914 (with changes) which are applied.

2. To accounting department (Bogdan Lukasiewicz) after official publication to inform banks information on adoption of this resolution.

3. To impose control over the implementation of this resolution on the vice-chairman of the National Bank of Ukraine Roman Borisenko.

4. The resolution becomes effective from the date of, its official publication following behind day.

Approved by the Resolution of Board of the National Bank of Ukraine of March 6, 2019 No. 47

Changes in the Instruction for financial accounting of fixed assets and intangible assets of banks of Ukraine

1. In the Section I:

1) in Chapter 1:

 state Item 1.4 in the following edition:

"1.4. In this Instruction terms are used in such value:

1) asset with right to use - the asset representing the right of the lessee to use underlying asset during lease term;

2) depreciation - systematic distribution of cost of fixed assets and intangible assets which will be amortized, during the term of their useful use (operation);

3) underlying asset - leased asset and which right to use is transferred by the lessor to the lessee;

4) book value - the amount on which the asset is considered in balance after deduction of any accumulated depreciation and accumulated losses from reduction of its usefulness;

5) gross investment in lease - the amount of lease payments which shall be received by the lessor in case of the finance lease and any non-quaranteed salvage value added to the lessor;

6) the cost which will be amortized, - original or revaluated value of fixed assets or intangible assets less their salvage value;

7) guarantee of salvage value - the guarantee provided to the lessor by the party which is not connected with the lessor concerning the fact that cost (or part of cost) underlying asset for the end of lease, at least, is equal to the specified amount;

8) group of fixed assets or intangible assets - set same on technical characteristics, appointment and conditions of use of fixed assets or intangible assets;

9) the date of entry into force of modification - date as of which both parties agreed to lease modification;

10) lease effective date - earlier of two dates: either date of the tenancy agreement, or date of the obligation when the parties came to the agreement concerning the main lease term;

11) start date of lease - date when the lessor provides underlying asset for use by the lessee;

12) date of acquisition - date to which control of assets which are bought passes to the buyer;

13) cash equivalents - short-term highly liquid financial investments which are freely converted into certain amounts of money and are characterized by insignificant risk of change of their cost;

14) residual cost - difference between the original (overpriced) cost and the amount of the added depreciation;

15) variable lease payments - share of the payments made by the lessee for benefit of the lessor for the right to use underlying asset during lease term which changes owing to change of the facts or circumstances which occur after start date of lease, except current of time;

16) depreciation of fixed assets - depreciation amount of fixed asset object since the beginning of its useful use;

17) the investment real estate - the real estate (the earth or the building, either part of the building, or their combination) withheld (the owner or the lessee as asset with right to use) for the purpose of receipt of lease payments or value addition of the capital or for achievement of both purposes, but not for:

uses in production or deliveries of goods, provision of services or for the administrative purposes; or

sales in the course of ordinary activities;

18) the class of underlying asset is group of the underlying assets having the similar nature and method of use;

19) short-term lease - lease which on start date of lease has lease term of 12 months or less. Lease which contains possibilities of acquisition is not short-term lease;

20) salvage value of asset - previously estimated amount which the subject of managing would receive from asset retirement after deduction of all previously estimated costs for its disposal at the moment if the asset is obsolete and is in the condition expected after the termination of term of its useful operation;

21) lease modification - scope change of lease or compensation for lease which was not part of entry conditions of lease (for example, additional inclusion or the termination of the right to use one or more underlying assets, either prolongation or reducing lease term under the agreement);

22) cumulative depreciation of intangible assets - depreciation amount of object of intangible assets since the beginning of its useful use;

23) non-quaranteed salvage value - part of salvage value of underlying asset which realization by the lessor is not guaranteed or guaranteed only by the party connected with the lessor;

24) unearned finance income - difference between gross investment in lease and net investment in lease;

25) intangible asset - the non-monetary asset which has no material form is not the withheld money and assets which shall be received in the fixed or certain amount of money, and can be identified;

26) non-current assets - fixed assets (non-current tangible assets) and intangible assets;

27) the non-current assets withheld for sale - the non-current assets withheld with sales objective, and their book value will be recovered by transaction on sale, but not the current use;

28) the real estate occupied by the owner - the real estate withheld (the owner or the lessee as asset with right to use) for use in production or delivery of goods or rendering services or for the administrative purposes;

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info