INSTRUCTION OF CENTRAL BANK OF THE RUSSIAN FEDERATION

of October 2, 2024 No. 6889-U

About procedure for reflection on accounts of financial accounting of reserves - estimative obligations and contingent obligations by not credit financial credit institutions, bureau of credit histories and credit rating agencies

This Instruction based on part 6 of article 21 of the Federal Law of December 6, 2011 No. 402-FZ "About financial accounting" establishes procedure for reflection on accounts of financial accounting of reserves - estimative obligations and contingent obligations by not credit financial credit institutions, bureau of credit histories and credit rating agencies.

1. The concepts "contingent obligation", "reliable estimation", "probable", "disposal of the resources containing economic benefits" are applied in this Instruction in the values established by the International accounting standard (IAS) 37 "Estimative obligations, contingent obligations and contingent assets" <1> (further - IFRS (IAS) 37).

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<1> No. 217n "About introduction of International accounting standards and Explanations of International accounting standards in action in the territory of the Russian Federation and about recognition voided some orders (separate provisions of orders) of the Ministry of Finance of the Russian Federation" is enacted in the territory of the Russian Federation by the order of the Ministry of Finance of the Russian Federation of December 28, 2015 (registration No. 40940) is registered by the Ministry of Justice of the Russian Federation on February 2, 2016, with the changes made by the order of the Ministry of Finance of the Russian Federation of July 11, 2016 No. 111n "About enforcement and cancellation of documents of International accounting standards in the territory of the Russian Federation" (registration No. 43044) (further - the order of the Ministry of Finance of the Russian Federation No. 111n is registered by the Ministry of Justice of the Russian Federation on August 1, 2016), with amendments, enacted in the territory of the Russian Federation by the order of the Ministry of Finance of the Russian Federation of June 27, 2016 No. 98n "About introduction of documents of International accounting standards in action in the territory of the Russian Federation and about recognition voided some orders of the Ministry of Finance of the Russian Federation" (registration No. 42869) is registered by the Ministry of Justice of the Russian Federation on July 15, 2016, the order of the Ministry of Finance of the Russian Federation No. 111n, the order of the Ministry of Finance of the Russian Federation of June 4, 2018 No. 125n "About introduction of the document of International accounting standards in action in the territory of the Russian Federation" (registration No. 51396) is registered by the Ministry of Justice of the Russian Federation on June 21, 2018, the order of the Ministry of Finance of the Russian Federation of October 30, 2018 No. 220n "About introduction of the document of International accounting standards in action in the territory of the Russian Federation" (registration No. 52703) is registered by the Ministry of Justice of the Russian Federation on November 16, 2018, the order of the Ministry of Finance of the Russian Federation of August 5, 2019 No. 119n "About introduction of the document of International accounting standards "Materiality determination (Amendments to IFRS (IAS) 1 and IFRS (IAS) 8)" in action in the territory of the Russian Federation" (registration No. 56149), the order of the Ministry of Finance of the Russian Federation of February 17, 2021 No. 24n "About introduction of documents of International accounting standards "Amendments to references to "Conceptual bases" (Amendments to IFRS (IFRS) 3 "Integration of businesses") ", " fixed assets - receipts before proper use (The amendment to IFRS (IAS) 16 "Fixed assets" is registered by the Ministry of Justice of the Russian Federation on October 4, 2019) ", " burdensome agreements - costs for agreement performance (Amendments to IFRS (IAS) 37) "and" annual enhancements of International accounting standards, the period of 2018 - 2020" in action in the territory of the Russian Federation" (registration No. 62828) is registered by the Ministry of Justice of the Russian Federation on March 22, 2021.

2. Not credit financial credit institution, bureau of credit histories and credit rating agency (further in case of joint mentioning - the organization) shall reflect in accounts of financial accounting recognition (increase) of reserve - the estimative obligation in case of simultaneous availability of the following conditions:

the organization has obligation which resulted from last event according to Items 15 - 22 IFRS (IAS) 37;

settlement of obligation of the organization will possibly demand disposal of the resources containing economic benefits according to Items 23 - 24 IFRS (IAS) 37;

there is possibility of carrying out reliable estimation of size of the obligation of the organization according to Items 25 - 26 IFRS (IAS) 37.

3. The organization shall reflect in the balance sheet accounts provided by Chapter A of appendix 1 to the Provision of the Bank of Russia of August 1, 2022 No. 803-P "About the Chart of accounts of financial accounting for not credit financial credit institutions, bureau of credit histories, credit rating agencies and procedure for its application" <2> (further - the Provision of the Bank of Russia No. 803-P), recognition (increase) of reserve - the estimative obligation accounting entry:

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<2> It is registered by the Ministry of Justice of the Russian Federation on September 20, 2022, registration No. 70158, with the changes made by Instructions of the Bank of Russia of January 10, 2024 No. 6665-U (it is registered by the Ministry of Justice of the Russian Federation on February 12, 2024, registration No. 77223), of May 21, 2024 No. 6729-U (it is registered by the Ministry of Justice of the Russian Federation on June 20, 2024, registration No. 78625).

The debit of the account No. 71802 (on symbols of 55501 - 55504 reports on financial results according to parts V-VIII of appendix 2 to the Provision of the Bank of Russia No. 803-P (for the organizations which are not applying the Provision of the Bank of Russia of October 25, 2017 No. 612-P "About procedure for reflection on accounts of financial accounting of objects of financial accounting by not credit financial credit institutions"> (further - the Provision of the Bank of Russia No. 612-P) or appendix 2 to the Provision of the Bank of Russia No. 612-P (for the organizations applying the Provision of the Bank of Russia No. 612-P)

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<3> It is registered by the Ministry of Justice of the Russian Federation on December 11, 2017, registration No. 49203, with the changes made by Instructions of the Bank of Russia of December 18, 2018 No. 5021-U (it is registered by the Ministry of Justice of the Russian Federation on January 14, 2019, registration No. 53337), of May 22, 2019 No. 5149-U (it is registered by the Ministry of Justice of the Russian Federation on June 17, 2019, registration No. 54943), of September 14, 2020 No. 5545-U (it is registered by the Ministry of Justice of the Russian Federation on November 5, 2020, registration No. 60759), of November 10, 2020 No. 5617-U (it is registered by the Ministry of Justice of the Russian Federation on December 10, 2020, registration No. 61382), of August 19, 2021 No. 5894-U (it is registered by the Ministry of Justice of the Russian Federation on September 23, 2021, registration No. 65120), of June 19, 2023 No. 6450-U (it is registered by the Ministry of Justice of the Russian Federation on July 24, 2023, registration No. 74383).

The credit of accounts No. 61501 - 61504.

4. The organization shall reflect in accounts of financial accounting reduction of reserve - the estimative obligation the last calendar day of the accounting period, but no later than day of its actual use, accounting entry:

The debit of accounts No. 61501 - 61504

The account No. 71801 credit (on symbols of 54301 - 54304 reports on financial results according to parts V-VIII of appendix 2 to the Provision of the Bank of Russia No. 803-P (for the organizations which are not applying the Provision of the Bank of Russia No. 612-P) or appendix 2 to the Provision of the Bank of Russia No. 612-P (for the organizations applying the Provision of the Bank of Russia No. 612-P).

5. The organization shall reflect in accounts of financial accounting use of reserve - the estimative obligation for settlement of the obligation concerning which the organization reflects recognition of this reserve according to Item 3 presents of the Instruction, accounting entry:

The debit of accounts No. 61501 - 61504

Credit of accounts on accounting of obligations.

6. If the reserve - the estimative obligation is not enough for settlement of the obligation concerning which the organization reflects recognition of this reserve, the organization shall reflect in accounts of financial accounting difference between costs on settlement of the obligation and the size of acknowledged reserve - the estimative obligation the accounting entry specified in paragraphs second and third Item 3 presents of the Instruction.

7. The organization shall reflect in the off-balance accounts provided by Chapter In appendices 1 to the Provision of the Bank of Russia No. 803-P, contingent obligation in the presence of one of the following conditions:

the organization has possible obligation which resulted from last event which confirmation is connected with approach (not approach) of future event, according to the paragraph the thirteenth Item 10 IFRS (IAS) 37;

the organization has obligation which resulted from last event concerning which the organization does not reflect recognition of reserve - the estimative obligation.

8. The organization shall reflect in the off-balance accounts provided by Chapter In appendices 1 to the Provision of the Bank of Russia No. 803-P, contingent obligation by accounting entry:

Debit of the account No. 99998

Account No. 91318 credit.

9. The organization shall reflect in the off-balance accounts provided by Chapter In appendices 1 to the Provision of the Bank of Russia No. 803-P, change of contingent obligation by accounting entries:

in case of increase in contingent obligation for the last calendar day of the accounting period:

Debit of the account No. 99998

Account No. 91318 credit;

in case of reduction (termination) of contingent obligation for the last calendar day of the accounting period, but no later than day of the termination of contingent obligation:

Debit of the account No. 91318

Account No. 99998 credit.

10. If the organization for settlement of obligation concerning which contingent obligation is reflected will possibly need disposal of the resources containing economic benefits and also if the organization has possibility of carrying out reliable estimation of size of the obligation, then the organization shall reflect in the off-balance accounts provided by Chapter In appendices 1 to the Provision of the Bank of Russia No. 803-P, the termination of contingent obligation by the accounting entry specified in paragraphs six and the seventh Item 9 of this Instruction and also to reflect recognition of reserve - the estimative obligation accounting entry according to paragraphs second and third Item 3 presents of the Instruction.

11. In case of application of this Instruction the organization shall be guided by International accounting standards and Explanations of International Financial Reporting Standards <4>.

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<4> Are enacted in the territory of the Russian Federation according to the order of the Government of the Russian Federation of February 25, 2011 No. 107 "About approval of the Regulations on recognition of International accounting standards and Explanations of International accounting standards for application in the territory of the Russian Federation".

12. Requirements of this Instruction do not extend to foreign insurance companies.

13. This Instruction is subject to official publication and according to 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 13, 2024 No. PSD-28) become effective since January 1, 2025.

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