RESOLUTION OF BOARD OF NATIONAL BANK OF THE REPUBLIC OF KAZAKHSTAN

of October 20, 2022 No. 88

About modification of the resolution of Board of National Bank of the Republic of Kazakhstan of June 28, 2013 No. 149 "About approval of the Instruction for conducting financial accounting of transactions on insurance and reinsurance"

The board of National Bank of the Republic of Kazakhstan DECIDES:

1. Bring in the resolution of Board of National Bank of the Republic of Kazakhstan of June 28, 2013 No. 149 "About approval of the Instruction for conducting financial accounting of transactions on insurance and reinsurance" (the following change is registered the Register of state registration of regulatory legal acts at No. 8596):

To state the instruction for conducting financial accounting of transactions for insurance and reinsurance approved by the specified resolution in edition according to appendix to this resolution.

2. To accounting department (Tayshibayeva D. A.) in the procedure established by the legislation of the Republic of Kazakhstan to provide:

1) together with Legal department (Kasenov A. S.) state registration of this resolution in the Ministry of Justice of the Republic of Kazakhstan;

2) placement of this resolution on official Internet resource of National Bank of the Republic of Kazakhstan after its official publication;

3) within ten working days after state registration of this resolution submission to Legal department of data on execution of the action provided by the subitem 2) of this Item.

3. To impose control of execution of this resolution on the vice-chairman of National Bank of the Republic of Kazakhstan Sholpankulov B. Sh.

4. This resolution becomes effective since January 1, 2023 and is subject to official publication.

Appendix

to the Resolution of the Chairman of National Bank of Kazakhstan of October 20, 2022 No. 88

Approved by the Resolution of Board of National Bank of the Republic of Kazakhstan of June 28, 2013 No. 149

Instruction for conducting financial accounting of transactions for insurance and reinsurance

Chapter 1. General provisions

1. This Instruction for conducting financial accounting of transactions for insurance and reinsurance (further – the Instruction) is developed according to the subitem 63) of part two of article 15 of the Law of the Republic of Kazakhstan "About National Bank of the Republic of Kazakhstan", subitems 1) and 3-4) Items 6 of article 20 of the Law of the Republic of Kazakhstan "About financial accounting and the financial reporting", international accounting standards and disaggregates conducting financial accounting of the transactions on insurance and reinsurance performed by the insurance (reinsurance) organizations and branches of the insurance (reinsurance) organizations - nonresidents of the Republic of Kazakhstan (further – the insurance (reinsurance) organizations).

2. In the Instruction the concepts provided by the Civil code of the Republic of Kazakhstan, the laws of the Republic of Kazakhstan "About insurance activity", "About fund of guaranteeing insurance payments", "About financial accounting and the financial reporting" and international accounting standards are used.

3. Two accounting methods of groups of insurance contracts (reinsurance) are provided in the Instruction: method of bonus allotment and general model of assessment.

The accounting entries which are not provided by the Instruction are performed according to requirements of the laws of the Republic of Kazakhstan "About financial accounting and the financial reporting", "About insurance activity" and international accounting standards.

Chapter 2. Financial accounting of transactions on insurance and reinsurance by bonus allotment method

Paragraph 1. Financial accounting of acquisition cash flows according to insurance contracts (reinsurance)

4. In case of recognition of acquisition cash flows as expenses at the time of emergence of acquisition costs according to accounting policy, when implementing payment (fully or partially depending on conditions of agreements) acquisition expenses, the following accounting entries are performed:

on payment amount of acquisition expenses:

based on the documents confirming the fact of incurring of acquisition expenses:

5. In case of recognition of acquisition cash flows as expenses at the time of emergence of acquisition costs according to accounting policy, when charging these expenses, the following accounting entries are performed:

when charging acquisition expenses on the amount, the subject payment:

in case of payment of acquisition expenses:

6. If obligations on cash flows according to insurance contracts (reinsurance) decrease by the amount of acquisition cash flows according to accounting policy, in case of payment (fully or partially depending on conditions of agreements) acquisition expenses the following accounting entries are performed:

on payment amount of acquisition expenses:

based on the documents confirming the fact of incurring of acquisition expenses:

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