It is registered
in the Ministry of Justice of Ukraine
January 18, 2008.
No. 32/14723
of December 27, 2007 No. 480
About approval of the Instruction about procedure for creation and promulgation of the financial reporting of banks of Ukraine
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IT IS APPROVED State committee statistics of Ukraine |
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According to articles 7 and 41 of the Law of Ukraine "About the National Bank of Ukraine", articles 11 and 69 of the Law of Ukraine "About banks and banking activity" and in connection with adoption of the new International Financial Reporting Standard, introduction of amendments to the operating International Financial Reporting Standards the Board of the National Bank of Ukraine DECIDES:
1. Approve the Instruction about procedure for creation and promulgation of the financial reporting of banks of Ukraine which is attached.
2. Banks of Ukraine have the right to constitute, give, promulgate annual and consolidated financial statements for 2007 according to requirements of this resolution, and since creation, representation and promulgation of the quarter financial reporting for the I quarter 2009, annual and consolidated financial statements for 2008 shall provide fulfillment of requirements of this resolution.
3. To accounting department (Rychakivskaya V. I.) after state registration in the Ministry of Justice of Ukraine to bring contents of this resolution to permission of territorial administrations of the National Bank of Ukraine and banks of Ukraine for management and use in work.
4. To impose control over the implementation of this resolution on territorial administrations of the National Bank of Ukraine.
5. The resolution becomes effective in 10 days after state registration in the Ministry of Justice of Ukraine.
Chairman V. S. Stelmakh
Approved by the Resolution of Board of the National Bank of Ukraine of December 27, 2007 No. 480
1.1. The instruction is developed according to the Laws of Ukraine "About banks and banking activity", "About financial accounting and the financial reporting in Ukraine" and is based on the main requirements concerning disclosure of information in the financial reporting according to international accounting standards, national provisions (standards) of financial accounting, regulatory legal acts of the National Bank of Ukraine (further National Bank).
The purpose of creation of the financial reporting is provision to users for decision making of the complete, true and objective information about financial condition, results of activities and cash flow of bank, parent bank and participants of the consolidated group as single economic unit.
1.2. The instruction determines:
structure of the financial reporting;
samples of forms of the financial reporting;
procedure, frequency of creation and the requirement to disclosure of information in the financial reporting;
procedure for submission to National Bank and promulgation of the financial reporting.
1.3. The bank (parent bank) constitutes the financial reporting according to requirements of this Instruction and international accounting standards.
1.4. The bank (parent bank) constitutes and submits the financial reporting to National Bank in monetary unit of Ukraine (in thousands of hryvnias). The bank (parent bank) determines independently procedure for creation and accounts presentation by the isolated structural divisions and participants of the consolidated group.
The bank (parent bank) submits all data of forms of the financial reporting (including and notes to them) in comparison with data of previous year (for certain period).
Initial remaining balance of the financial reporting for previous period is entrance remaining balance of the financial reporting for the accounting period.
The bank (parent bank) specifies those indicators of the financial reporting which for determination of results undertake with the sign "minus" in brackets.
1.5. The bank constitutes the financial reporting based on accounting data taking into account adjusting entries concerning events which adjust data after date of balance for certain period.
The bank constitutes the financial reporting on the basis of the files 02 "Data on Turnovers and Account Balances" (further - the file 02), 25 "Data on turnovers on folding and account balances" (further - the file 25), A4 "Data on the adjusting turnovers by results of external audit and account balances (taking into account account balances of classes 6 and 7)" (further - the file A 4), 81 "Data on the adjusting turnovers by results of external audit and account balances (without account balances of classes 6 and 7)" (further - the file 81).
The bank (parent bank) opens essential information as the individual clause of financial statements or notes to them, and insignificant - combines with the amounts, similar on economic essence or functions.
The bank (parent bank) specifies in the financial reporting of feature concerning activities and accounting and if necessary creates additional notes. The bank (parent bank) does not provide information on those transaction types which it does not perform.
The bank (parent bank) makes cross references to each article of financial statements to any related information in notes.
1.6. The bank (parent bank) opens information on assets, obligations, the income and expenses in notes of the article "Other" of the financial reporting if the amounts constitute over 5% of total amounts according to their category (assets, obligations, the income and expenses respectively).
1.7. The bank includes remaining balance according to contra asset accounts in assets and to counterpassive accounts in liabilities to calculation with opposite sign and reduces the relevant articles on groups and Sections.
The account which according to the characteristic can have both active, and passive remaining balance, but for calculation of certain financial statement line item is used remaining balance on it in the curtailed type, in this Instruction it is specified so: account number (AP).
1.8. The reporting bank lists in national currency of Ukraine financial statement line items of branches and representative offices of the Ukrainian banks in the territory of other states similarly to implementation of recalculation of Articles in foreign currency specified directly in balance of the bank.
1.9. The financial reporting is signed by the head and the chief accountant of bank, and consolidated - the head and the chief accountant of parent bank.
The specified officials sign each form of the financial reporting and the report on the face of its last leaf.
1.10. The management of bank (parent bank) bears responsibility for twisting this to the financial reporting, violation of terms of its representation and promulgation, and also its promulgation not in full.
1.11. Samples of forms of the financial reporting and procedure for their filling are given in appendices to this Instruction.
The lists of account numbers specified in the columns "Calculation of Article (Account)" of procedures for filling of forms of the financial reporting are not exhaustive. The bank has the right during filling of financial statement line items independently to determine the corresponding accounts, proceeding from economic essence of transaction.
1.12. Samples of forms of the financial reporting and notes to them can change within requirements of this Instruction.
1.13. For the purpose of the corresponding display in financial accounting of transactions on completion of accounting year and carrying out the technological works connected from the beginning of new accounting year, banks in the first working day of new year work without clients.
1.14. In this Instruction terms are used in such value:
assets - the resources controlled by bank as a result of last events which use, as expected, will lead to receipt of economic benefits in the future;
the anti-diluting potential common share - the financial instrument or other agreement which converting in common shares will lead to increase in net profit (reduction of net loss) at one common share from regular activities in the future;
payments by tools of equity of bank - payments to the worker on which it is granted the right to the financial instruments of equity emitted by bank (or its parent bank) or the amount of obligations of bank to the worker depends on future price of the financial instruments of equity emitted by bank;
payments upon termination of labor activity - the payments to the worker (except payments in case of dismissal and payments by tools of equity of bank) which are subject to payment upon termination of labor activity of the worker;
payments in case of dismissal - the payments to the worker which are subject to payment according to the decision of bank on dismissal of the worker before achievement of retirement age by it or according to the decision of the worker on dismissal at own will before achievement of retirement age by it;
equity - part in assets of bank which remains after deduction of its obligations;
intra group transactions - transactions between parent bank and subsidiary company or between subsidiary companies of one group;
intra group balance - accounts receivable balance and obligations for date of balance, formed as a result of intra group transactions;
the geographical area is component of business of bank which can be separated and which provides services in certain economic environment in which risks and profitability differ from other regions. The geographical area in this Instruction is the respective country;
economic unit outside Ukraine - the non-bank subsidiary company, the associable company, subsidiary bank, branch, representative office of the Ukrainian bank which are or conduct activities outside Ukraine;
money - cash in cash desk and interbank deposits poste restante;
cash flows (movement of means) is receipt and disposal of money and their equivalents;
group of disposal - set of the assets planned to sale or alienation in a different way by one transaction, and the obligations which are directly connected with such assets which will be transferred (are extinguished) as a result of such transaction;
goodwill in case of consolidation - excess of acquisition value over share of parent bank in fair value of the acquired identified assets and liabilities for date of acquisition;
cash equivalents are short-term highly liquid financial investments which are freely converted into the known cash amounts and in which the insignificant risk of change in value is inherent;
reporting date - date for which the financial reporting is constituted, that is quarter as of the end of the last day of quarter, annual and consolidated for the end of the last day of accounting year;
reporting segments are the segment of activities or geographical area determined by bank concerning which information on segment shall reveal in the annual (consolidated) financial reporting;
loss - excess of expense amount over income amount for which receipt these expenses were performed;
the obligation - the debt to bank which resulted from last events and which repayment, as expected, will lead to reduction of the resources of bank personifying economic benefits;
the investing activities are acquisition and sale of non-current assets, and also other investments which are not cash equivalents;
the inflation index - the consumer price index promulgated by the State committee of statistics of Ukraine;
individual reports - the reports of one participant of consolidation (the member of group) constituted according to requirements of the legislation of Ukraine regulating financial accounting and the reporting in Ukraine;
other long-term payments to workers - the payments to the worker (except payments upon termination of labor activity, payments in case of dismissal and payments by tools of equity of bank) which are not subject to payment in full within twelve months upon termination of month in which the worker performed the corresponding work;
adjustment coefficient - the inflation index relation for date of balance (the end of accounting year) and the inflation index for date of recognition (revaluation) of the corresponding statement item;
the consolidated group is separate economic unit, the nonlegal person which is set of legal entities including the main bank institution (parent bank taking into account branches, representations, departments in the territory of Ukraine and abroad), participants of group (associable and subsidiary companies) and subjects of managing of special purpose;
cumulative surplus of inflation - the work of the annual inflation indexes for certain period;
parent bank - the bank exercising control of participants of the consolidated group concerning whom the certain conditions specified in appendix 1 to this Instruction are satisfied;
monetary items - balance sheet items about money, and also about such assets and liabilities which will turn out or will be paid in fixed (or determined) to amount of money or their equivalents;
negative goodwill in case of consolidation - excess of cost of share of parent bank in fair value of the acquired identified assets and liabilities over acquisition value for date of acquisition;
non-cash transactions - the transactions which are not needing use of money and their equivalents;
not monetary items - Articles others, than monetary items of balance;
the unexpected obligation is:
the obligation which can result from last events and which existence will be confirmed only when takes place or will not take place one or more uncertain future events over which the company has no complete control, or
the present obligation resulting from last events, but which is not recognized as it is improbable that for settlement of the obligation it will be necessary to use the resources personifying economic benefits or as the amount of the obligation cannot be determined authentically;
unrealized profits and losses from intra group the operatsiypribyl and losses resulting from intra group transactions (sales of goods, products, performance of works, services and so forth);
unit generating money - the smallest group of assets which can be identified and which generates cash receipts, mostly not depending on cash receipts from other assets or groups of assets;
operating activiies are the main activities of bank yielding revenue, and also other types of activity which are not investment or financial;
transaction of the related parties - transfer of assets or obligations one related party to other related parties;
consolidation packet - the structures and forms of the unified financial statements determined by parent bank in the course of creation of consolidated financial statements;
the related parties - the parties are considered connected if one party directly or mediately exercises control over another or has significant effect on adoption of finance and operational solutions by other party;
the potential common share - the financial instrument or other agreement granting the right to common shares;
the potential voting power - financial instruments which potential (in case of their accomplishment or converting) will provide to parent bank additional voting power or will reduce voting power of other party during decision making rather financial and production the politician of the participant of the consolidated group;
the current payments to the worker - the payments to the worker (except payments in case of dismissal and payments by tools of equity of the company) which are subject to payment in full within twelve months upon termination of month in which the worker performed the corresponding work;
profit - the amount on which the income exceeds the related expenses;
the note to the financial reporting is additional information for disclosure and refining of the amount, essence and classification of transaction to which they belong;
the leading managerial personnel - the personnel responsible for management, planning and control of activities of bank, in particular the chairman and members of the supervisory board of bank, the chairman of the board/board of directors and members of the board/board of directors, vice-chairmen of the board/board of directors (the president, vice-presidents), the chief accountant and his deputies;
the intermediate period is the period of the financial reporting consisting of three months. The first accounting period for newly created bank can be less, than three months;
the diluting potential common share - the financial instrument or other agreement which converting in common shares will lead to reduction of net profit (increase in net loss) by one common share from regular activities in the future;
the segment of activities is component of business of bank which can be separated and which provides certain services. Risks and profitability which differ from other segments of activities are inherent in it;
the average inflation index - average geometrical the monthly indexes of inflation;
the weighted average number of common shares is the number of common shares which addressed during the accounting period. The weighted average number of common shares in the address is determined as the amount of works of number of common shares which address during the accounting period (in days), on the hour weighed coefficient. If release, the redemption and cancellation of shares are performed from the first, then it is allowed to take into consideration cycle time of shares not in days, and in months;
the weighted currency rate - result of division of the amount of works of sizes of rates of National Bank and the number of days of their action in month under report (quarter, year) on the number of calendar days this month (quarter, year);
the annual average number of common shares - the weighted average number of common shares which addressed within accounting year. The annual average number of common shares in the address is determined by the amount of works of number of common shares in the address during the certain periods in days (months) and the corresponding hour weighed coefficients. The number of common shares in the address is determined by data of the shareholder register;
the modified annual average quantity simple the aktsiysrednegodovy number of common shares in the address modified on the number of potential common shares;
the modified net profit (loss) - the net profit (loss) after deduction of preferred share dividends modified on influence of the diluting common shares. The modified net profit (loss) on one common share is determined by division of the modified net profit (loss) into the modified annual average number of common shares in the address. The size of the modified net profit (loss) is indicator of the greatest possible extent of reduction of profit (increase in loss) by one common share of bank in case of converting of the diluting potential common shares without the corresponding increase in assets of bank;
the subject of managing of special purpose is the subject of managing created for the narrow, accurately outlined appointment, in particular for the purpose of developments or securitization of financial assets and also venture funds, mutual funds, trusts and so forth;
the unified reports - individual information of participants of consolidation which is used by parent bank in the course of creation of consolidated financial statements;
the financial activities are activities which cause changes of the size and structure of own and borrowed capital of bank;
the functional currency is currency of the main economic environment in which the subject of managing performs the activities;
the hour weighed coefficient - private from division of total quantity of days (months) during which shares addressed, on total quantity of days (months) in the accounting period;
minority share in group profit - part of net profit (loss) which does not belong to parent bank (directly or through other subsidiary companies);
minority share in net assets - part in net assets for date of acquisition plus part in share capital of subsidiary company which does not belong to parent bank (directly or through other subsidiary companies);
net assets - assets of organization less its obligations;
the net profit (loss) is profit (loss) from banking activity for the accounting period after assignment of the income tax.
2.1. Structure of the financial reporting:
a) Report "Balance".
The bank in the report "Balance" displays assets, the obligation and equity of bank.
The report "Balance" determines structure and structure of property of bank, bank liquidity, availability of own and borrowed capital, change of receivables and payables and so forth. Articles of the report "Balance" are placed according to the procedure of liquidity reduction.
The bank constitutes the report "Balance" in quarter based on file indicators 02, the annual statement "Balance" - based on file indicators 25, the annual statement "Balance" taking into account all adjusting entries - based on file 81 indicators.
The bank constitutes the report "Balance" for certain period (quarter, year) on the accruing result since the beginning of accounting year.
The bank in the report "Balance" of asset items and liabilities and in notes includes the revaluation amounts.
The bank in the report "Balance" of asset items and obligations and in notes includes the amounts of the added uncollected interest incomes and the added unpaid interest expenses.
The bank provides identity of result of assets to the amount of obligations and equity of the report "Balance".
The bank does not turn the asset item and obligations, except the cases provided by relevant provisions (standards) of financial accounting, regulatory legal acts of National Bank.
The bank does not include in the report "Balance" information on technical accounts, on calculations and the income and expenses which are perfromed is intrasystem.
Samples of report forms "Balance" and procedure for filling of asset items, obligations and equity are given in appendices 2, 3.
b) Report on financial results.
The bank constitutes the Report on financial results from income and expense items which are grouped in their nature and main types of the income and expenses for the end of the last day of the accounting period (quarter, year).
The bank (parent bank) includes data as of the end of current period in the Report on financial results (quarter, year) the accruing result the current financial year prior to date of the reporting and comparative data as of the end of the compared period (quarter, year) the previous financial year.
The bank constitutes the Report on financial results in quarter based on file indicators 02, the annual statement about financial results with adjusting entries by results of audit - based on A4 file indicators.
The bank does not include information on the income and expenses on intrasystem calculations in the Report on financial results.
The bank (parent bank) which is created in the form of open joint stock company specifies in annual and consolidated financial statements indicators of net profit and the modified net profit one common share. Profitability indicators directly do not concern dividend distribution. At the same time for calculation of the hour weighed coefficient the number of days (months) in the accounting period undertakes. Calculation of number of common shares joins common shares which release is registered by State commission on securities and the stock market and according to the shareholder register. Indicators of profitability of shares are specified in hryvnias to within the 100-th (with two signs after comma).
The bank (parent bank) for determination of the diluting potential common shares performs the analysis of the values received as a result of calculation of the modified net profit on one common share for each class and release of potential common shares. It places these values in ascending order. If any of these values is more previous, that is leads to increase in net profit (reduction of net loss) at one common share in the address, then the corresponding financial instrument (converting of bonds and preferred shares, options, warrants and so forth) is anti-diluting and is not taken into account of the modified net profit. Respectively the decreasing values are taken into account.
The loss on one common share received as a result of calculation of indicators of profitability of shares is specified in brackets what means negative value.
Samples of report forms about financial results are given in appendices 4, 5.
c) Cash flow statement.
The bank (parent bank) in the Cash flow statement displays sources of the cash received by bank (parent bank) and non-cash, the direction of their use in the accounting period, cash flow for the accounting period depending on type of activity (operational, investment, financial).
The result of changes in cash flow in the course of operating, investing and financial activities shall answer changes in money and their equivalents in the accounting period.
Direct and indirect methods are applied to scoping of cash flow. The direct method requires permanent accumulating of data on turnovers (receipts and disposals) money in the directions (Articles), generalization of the necessary indicators in analytics. The indirect method is based on adjustment of net profit (loss) according to influence of transactions of non-cash nature, any delays or charges of last or future receipts, or payments of money of rather operating activiies, and also according to income items and the expenses connected with cash flows from investing or financial activities.
The bank (parent bank) independently chooses method of creation of the report (direct or indirect).
The procedure for creation and samples of report forms about cash flow are given in appendices 6, 7.
d) Report on equity.
The report on equity is the financial statement displaying changes and capital flow for accounting year.
The bank created in the form of limited liability company, and cooperative bank specify changes in the Report on equity on those accounts on which performs accounting of transactions with equity the bank created in the form of joint-stock company.
The procedure for creation and samples of report forms about equity are given in appendix 8.
?) Report notes.
The bank constitutes notes based on data of synthetic and analytical financial accounting which are the integral component it the financial reporting.
The bank (parent bank) opens in notes information on structure of assets and liabilities, the income and expenses, off-balance obligations, transactions on trust management, and also the basic principles and methods of accounting policy of bank (parent bank) and its change during the accounting period, other information which disclosure is required by international accounting standards and national provisions (standards) of financial accounting.
The bank (parent bank) in notes for the analysis of credit quality of securities classifies them by issuers on big, medium, small enterprises according to the legislation of Ukraine or according to approaches and methods which he uses in the management reporting.
The bank (parent bank) in notes (where it is required) gives the financial assets of bank having the international rating, according to the credit ratings of partners established by the rating company (the company name is specified), on the international rating scale, others - on national scale. The bank (parent bank) gives such financial assets on the lowest of appropriated by the company to rating to each partner. The bank (parent bank) gives ratings according to the coding of the rating company using the table of correspondence of ratings of information system (the name of information system).
In notes to the annual (consolidated) financial reporting the bank (parent bank), shares or debt securities of which are openly on sale and bought, and also the bank (parent bank) which is in process of share issue or debt securities on the public market of securities opens information on segments of activities and geographical areas. The bank (parent bank) determines segments on the basis of internal organizational structure and system of the internal reporting.
The notes provided in this Instruction are expected both creation of separate financial statements, and creation of consolidated financial statements.
2.2. Information on bank (parent bank) which the bank (parent bank) shall open in the financial reporting includes:
the name, the bank location (the country in which the bank, the address of the main organization of bank is registered) and any changes in this information in comparison with the previous date of balance;
form of business of bank;
reporting date for the accounting period;
functional currency of the reporting and unit of its measurement;
the name of governing body under which authority the bank (the name of its mother company) is;
types of activity which the bank performs and shall perform;
strategic objective of bank;
specialization of bank if that is available;
characteristic of banking activity;
results from banking and other activities;
description of each segment of partners (banks, non-bank companies, Cabinet of Ministers of Ukraine and so forth);
merge, accession, separation, allocation, transformation of banks;
risk management: structure of risk management system in bank and the main objectives of its components; functions, accountability of service of risk management, membership of representatives of service of risk management in collegiate organs of bank, availability of the right of "veto" at them in case of decision making (to specify, in what collegiate organs); the list of risks (subgroups of risks) which are identified by bank in the activities; the list of the risks which are the greatest according to bank, the strategy of bank concerning such risks; availability of plans of continuous activities and/or on case of crisis circumstances (to specify on what risks);
information on whether the bank on reporting date is temporary member of Fund of guaranteeing household deposits;
bank solvency (the coefficients established by the Instruction about procedure for regulation of activities of banks in Ukraine approved by the resolution of Board of the National Bank of Ukraine of 28.08.2001 of N 368, of Ukraine registered in the Ministry of Justice 26.09.2001 for N 841/6032, with changes are used);
termination of separate types of banking activities;
restriction concerning ownership of assets;
corporate management: organizational structure, structure, responsibility, functions of the supervisory board, board, executive committees, corporate culture;
management share in shares;
essential participation in bank;
foreign investors (the companies and the countries) and their share in the authorized capital (it is filled with banks with the foreign capital);
other information which disclosure is provided international by accounting standards and national provisions (standards) of financial accounting.
3.1. The bank constitutes and submits the quarter financial reporting together with the cover letter in report form "Balance" (appendix
2), Report on financial results (appendix 4), notes "Obligations of Bank Which Are Considered on Off-balance Accounts" (appendix 9), "Accounts of trust management" (appendix 10), "Separate indicators of activities of bank" (appendix 11).
3.2. The bank recognizes assets, obligations, the income and expenses in the intermediate accounting periods by the same principles which are applied in annual financial reports.
3.3. The bank specifies in the cover letter to the quarter financial reporting on papers structure of the financial reporting, information on the revealed mistakes and the related adjustments, offers explanation of the events and transactions which are important for understanding of changes in financial condition and results of activities of bank after date of the last annual accounts. The bank opens information on any events or transactions which are essential to understanding of the current quarter period (for example, change of accounting policy, nature and the amounts of Articles influencing assets, obligations, the capital or the cash flows which are not typical).
The bank determines materiality of transactions from the beginning of year to the current reporting date.
3.4. The bank applies in the quarterly financial statement the same accounting policy, as in the annual financial report, except for changes in accounting policy which happened after date of the last year balance and shall be displayed further in annual financial reports.
The bank displays change of accounting policy of bank:
a) by recalculation of financial statements for the previous intermediate periods of the current financial year and for the comparable intermediate periods for any of the previous financial years which will be subject to recalculation in annual financial reports, or
b) in case of irrelevance of determination by the accruing result at the beginning of financial year of influence of application of new accounting policies by adjustment of financial statements for the previous intermediate periods of the current financial year and the comparable intermediate periods of the previous financial years the bank applies new accounting policy to all previous periods further, implementing it as soon as possible.
The bank opens circumstances which led to the fact that the retrospective application is impossible for the specific previous period or the periods previous displayed and also does the description of that as well as since what time change in accounting policy is applied.
3.5. The bank "Balance" includes data as of the end of the current quarter and comparative data as of the end of the previous financial year in the report.
The bank constitutes and submits to National Bank e-mail the financial statement "Balance", including in the column "For the End of the Previous Financial Year" for the I-IV quarters data from file 81.
3.6. The bank includes data as of the end of the current quarter in the Report on financial results the accruing result the current financial year prior to date of the reporting and comparative data as of the end of the compared quarter of the previous financial year.
The bank constitutes and submits to National Bank e-mail the Report on financial results, including in the column "On Reporting Date of Quarter of the Previous Financial Year":
for I-III quarters - data from file 02;
for the IV quarter - data from the A4 file.
3.7. The bank constitutes and submits to National Bank e-mail the note "Obligations of Bank Which Are Considered on Off-balance Accounts" (appendix 9), including in the column "For the End of the Previous Financial Year" for the I-IV quarters data from file 81.
3.8. The bank constitutes and submits to National Bank e-mail the note "Accounts of Trust Management", including in the column "For the End of the Previous Financial Year" for the I-IV quarters data from file 81.
3.9. The bank includes in the note "Separate Indicators of Activities of Bank" the calculated data as of reporting date in comparison with the normative indicators determined by the Instruction about procedure for regulation of activities of banks in Ukraine approved by the resolution of Board of the National Bank of Ukraine of 28.08.2001 of N 368, of Ukraine registered in the Ministry of Justice 26.09.2001 for N 841/6032 (with changes). Structural divisions of financial accounting and banking supervision of central office, territorial administrations of National Bank exercise control of observance of provisions of this Item.
4.1. The bank includes in the annual financial reporting:
general information about activities of bank;
report "Balance" (appendix 3);
Report on financial results (appendix 5);
Cash flow statement (appendices 6, 7);
Report on equity (appendix 8);
report notes.
4.2. The first accounting period of newly created bank can be less, than 12 months, but are no more, than 15 months.
The bank opens such information:
the reason because of which longer or shorter period is used;
the fact that the comparing amounts for the Report on financial results, the Report on equity, the Cash flow statement and for the related notes are not completely comparable.
4.3. National Bank, considering features of completion of financial year in banks, provides to banks of explanation to creation of the annual financial report concerning its preparation and technique.
4.4. 1 "Accounting policy" specifies bank in the note:
a) in the note 1.1 "Main activities":
regulatory legal acts of Ukraine by which the bank during execution of the functions is guided;
structural units and divisions which are a part of the system of bank and provide its activities;
nature of transactions and main activities of bank;
another;
b) in the note 1.2 "Fundamentals of accounting policies and creation of the reporting":
assessment bases which were applied during creation of financial statements, for example, historical (primary) cost, fair value;
standards on which fundamental accounting principles are based;
functional currency in which financial accounting of bank, units of measure in which the financial reporting moves is kept;
statement items concerning which accounting policy was not applied according to international accounting standards;
accounting policies (recognition criteria and estimates) of specific assets and liabilities, income and expenses;
c) in the note 1.3 "Consolidated financial statements":
participants of the consolidated group whose indicators of annual accounts are included in the consolidated financial statement;
nature of the relations between parent bank and affiliated associated by the companies if the parent bank does not own in subsidiary company (directly or mediately) more than half of voices. Nature and extent of any important restrictions concerning capability of the associable company to transfer means to parent bank in the form of dividends by money or return of loans or advance payments. Changes during the accounting period therefore the parent bank lost control over activities of subsidiary company;
consolidation methods which were applied to each certain participant of the consolidated group, including: reasons for the bases for use of method of complete consolidation if the share of the consolidated group in the authorized capital of the participant constitutes less than 50%; reasons for the bases for use of method of equity participation if the share of the consolidated group in the authorized capital of the participant constitutes less than 20%; reasons for the bases for use of method of equity participation for exclusive situations, and also exceptions by each method of consolidation;
the reasons for which indicators of the financial reporting of the affiliated or associable companies are not included in consolidated financial statements;
accounting of the differences arising during creation of the first consolidated statements;
unrecognized share of losses of the associable company for the accounting period and on cumulative basis if the parent bank derecognized the share in losses of the associable company; the share in unexpected obligations of the associable company for which the parent bank bears joint liability with other investors; the unexpected obligations resulting from separate responsibility of parent bank and other investors on all or as regards obligations of the associable company;
in case of change of signs of classification of activities of economic unit outside Ukraine provision of information on nature and the reasons of change, influence of change on the capital, on profit (loss) for previous year if such change took place at the beginning of previous year;
methods of revaluation, determination of fair value of acquired assets and obligations (consolidation mostly leads to revaluation);
the consolidation methods used for the purpose of provision of comparable information in case of changes of perimeter of consolidation;
d) in the note 1.4 "Primary recognition of financial instruments" the bank specifies assessment of financial instruments behind categories that the bank applies during their primary recognition;
?) in the note 1.5 "Trade securities" the bank specifies evaluation method of securities;
e) in the note 1.6 "Credits and debt of clients":
evaluation method of the credits and debt of clients;
assessment applied by bank during primary recognition of the depreciated financial assets which conditions were significantly changed;
the procedure of recognition of depreciation of financial assets which are considered on the amortized cost;
the undertaken obligations of credit nature, regarding letters of credit and financial guarantees;
e) in the note 1.7 "Securities in portfolio of bank for sale":
evaluation method of securities in portfolio of bank for sale;
procedure for application of revaluation concerning them;
usefulness reduction recognition (*) securities;
______________
(*) - Depreciation.
availability of securities which are sold and purchased according to repurchase agreements;
є) in the note 1.8 "Securities in portfolio of bank before repayment" the bank specifies evaluation method of securities in portfolio of bank before repayment;
g) in the note 1.9 "Investment real estate":
recognition criteria of the investment real estate;
evaluation method of the investment real estate;
h) in the note 1.10 "Fixed assets":
evaluation methods of the acquired (made) fixed assets;
depreciation method and useful lifex (operation). In case of change of the depreciation method within accounting year the bank shall prove that the new method best of all displays the expected form of consumption of the future economic benefits realized in asset. The bank specifies in the table of the amount of the calculated depreciation charges in year by new and previous methods (appendix 12);
depreciation rates and their review;
review of useful life;
the date of entry into force of revaluation;
involvement of the independent appraiser;
the methods and considerable assumptions applied during provisional estimate of fair value of objects;
revaluation with indication of change for the period;
recognition of depreciation of fixed assets;
i) in the note 1.11 "Intangible assets":
evaluation methods of the acquired (made) intangible assets;
depreciation method. In case of change of the depreciation method within accounting year the bank shall prove that the new method best of all displays the expected form of consumption of the future economic benefits realized in asset. The bank specifies in the table of the amount of the calculated depreciation charges in year by new and previous methods (appendix 13);
depreciation rates and their review;
revaluation of primary cost;
involvement of the independent appraiser;
review of useful life;
?) in the note 1.12 "Operational leasing (lease)" the bank specifies provision of fixed assets in operational leasing;
ї) in the note 1.13 "Financial leasing (lease)":
evaluation method of the provided assets in financial leasing (lease);
recognition of their depreciation;
evaluation method of the received assets in financial leasing (lease);
й) in the note 1.14 "Non-current assets, held for sale, and assets of group of disposal":
assessment of non-current assets, held for sale, and assets of group of disposal;
changes in the sales plan;
j) in the note 1.15 "Discontinued operation" the bank opens information on discontinued operation;
k) in the note 1.16 "Derivative financial instruments":
evaluation methods of derivative financial instruments concerning each type of derivative financial instruments;
recognition of derivative financial instruments as asset;
criteria by which the bank separates from the built-in derivative tools the basic contract;
l) in the note 1.17 "Income tax":
rate of the income tax if it changes in comparison with the accounting period;
difference explanation between expenses (income) on the income tax and the work of accounting profit (loss) on the applied rate of the income tax;
the amount of temporary differences which are deductible, the amount of the tax losses and unused tax benefits connected with non-recognition of delayed tax asset;
the amount of the temporary differences connected with financial investments into the subsidiary and associable companies concerning which the delayed tax liabilities were not acknowledged;
expense amount (income) on the income tax, connected with profit (loss) from discontinued operation;
m) in the note 1.18 "Own shares redeemed at shareholders" bank specifies policy of own bank shares which are rather redeemed from shareholders;
o) in the note 1.19 "Income and expenses":
recognition criteria of the income and expenses;
accounting policy concerning recognition of the income and expenses;
o) in the note 1.20 "Foreign currency":
recognition of assets, obligations, income and expenses in foreign currency;
the principles of application by bank of the foreign exchange rates by which both non-monetary assets and obligations in foreign currency in the report "Balance" are displayed monetary;
Articles under which results of asset revaluation and obligations in foreign currency are displayed;
to the politician of management of bank concerning risk of losses as a result of change in the exchange rate of foreign currency;
p) in the note 1.21 "Offset of asset items and obligations" the bank specifies whether offset of assets and liabilities of balance, under what Articles of reports, and also its legal reasons was performed;
c) in the note 1.22 "The reporting under segments":
criteria by which reporting segments are acknowledged;
the principles of pricing on intersegment transactions;
the basis for income distribution and expenses on segments;
explanation concerning nature of changes of accounting policy of segment;
reasons of changes;
the fact that the comparative information was listed or impossibility to perform it;
financial influence of changes if it can be reasonably determined;
r) in the note 1.23 "Effect of changes in accounting policy and correction of material mistakes":
what accounting policy changes, the reasons and essence of changes, Articles of reports in which adjustments are displayed;
the fact of repeated provision of the compared information in financial statements or inexpediency of its recalculation;
content and amount of mistake;
financial statement line items of last periods which were listed for the purpose of repeated provision of the compared information;
the fact of repeated promulgation of the corrected financial statements or inexpediency of their repeated promulgation.
4.5. The notes to the financial reporting (except quarter) disclosing bank liquidity, and also the risks connected with the assets and liabilities recognized in balance are given in appendix 14.
4.6. Bank in the note 2 "The economic environment in the conditions of which the bank performs the activities" provides such information:
the description of economic environment in the conditions of which it performs the activities;
influence of these conditions on its financial condition and results of activities.
4.7. The bank in the note 3 "Transition to the new and reviewed standards and interpretation providing context in which it is necessary to read standards" provides such information:
specifies date of transition to international accounting standards;
provides the list of standards and interpretation which are applied by bank or can be applied further;
influence on accounting policy of bank.
The bank opens data concerning approval of equity and profits or losses in the financial reporting for previous periods with its equity and profits or losses calculated under International Financial Reporting Standards.
The bank gives in the form of table 4.7.1 explanation under each Article of the report "Balance" of the annual financial report, Report on financial results if applications of international accounting standard made essential changes to financial statements.
Table 4.7.1. Influence of transition to international accounting standards
------------------------------------------------------------------ | N |Наименование| Предвари-| Влияние | Данные с учетом | |п/п | статьи | тельные | перехода на | международных | | | | данные | международные | стандартов | | | | | стандарты | финансовой | | | | | финансовой | отчетности | | | | | отчетности | | |----+------------+----------+---------------+-------------------| | 1 | 2 | 3 | 4 | 5 | ------------------------------------------------------------------
The bank calculates these columns 4 of table 4.7.1 as difference of columns 3 and 5.
The bank provides only those Articles under which there is discrepancy in the table. The bank opens approval in the Cash flow statement if it is pertinent.
5.1. The parent bank includes in consolidated financial statements:
general information about activities of bank;
Consolidated balance (appendix 3);
Consolidated statement about financial results (appendix 5);
Consolidated cash flow statement (amendments 6, 7);
Consolidated statement about equity (appendix 8);
notes to consolidated financial statements.
5.2. The parent bank includes in consolidated financial statements indicators of the annual financial reporting of participants of the consolidated group according to consolidation perimeter (appendix 1), except for indicators of the annual financial reporting of associable or subsidiary companies if control temporary as the acquired share securities of issuers answering to determinations of associable or subsidiary company of bank contain only for sale within 12 months from the date of acquisition, but if sale did not take place in this time, then they are subject to consolidation from the date of primary acquisition with repeated preparation of reports for previous period.
5.3. The parent bank and associable, subsidiary companies constitute the financial reporting regularly used for creation of consolidated financial statements. Consolidation of the financial reporting does not influence accounting of transactions of parent bank, the associable and affiliated companies, but influences the reporting of the integrated economic unit.
The parent bank constitutes consolidated financial statements according to the data obtained from participants of the consolidated group. Participants of the consolidated group bear responsibility for reliability and completeness of the data provided to parent bank.
5.4. The financial reporting of parent bank and the participants of the consolidated group used for creation of consolidated financial statements is constituted for the same accounting period and for the same date.
If the financial reporting used for consolidation was constituted on different reporting dates, then the parent bank performs adjusting records according to influence of essential transactions or other events which take place between these dates and date of the financial reporting of parent bank, and opens information on it in notes. Anyway the interval between dates of the reporting shall not exceed three months.
5.5. The parent bank constitutes consolidated financial statements taking into account the financial reporting of participants of the consolidated group with use of single accounting policy for similar transactions and other events under similar circumstances. If the participant of the consolidated group applies accounting policy which differs from accepted in consolidated financial statements for similar transactions and events under similar circumstances, then in its financial statements it is necessary to perform the corresponding adjustment during creation of consolidated financial statements for the purpose of approval of accounting policy of parent bank.
5.6. The parent bank constitutes consolidated financial statements by inclusion in structure of the financial statements for the corresponding date of indicators of financial statements of participants of the consolidated group with use of one of such methods:
complete consolidation;
equity participations.
The choice of method of consolidation according to which the reporting of the participant joins in the consolidated statements performs parent bank taking into account potential voting power, proceeding from consolidation perimeter (appendix 1), that is the level of control of the consolidated group in the capital of each participant which is calculated as the amount of sizes:
a) the specific weight of voices in the capital of the participant which is available in property of parent bank, in total quantity of voices;
b) the specific weight of voices in the capital of the participant which is available in property of other participants, in total quantity of voices.
5.7. The consolidated groups have different structures, in particular:
simple - immediate possession by parent bank shares in the authorized capital of participants;
vertical - control of parent bank is exercised mediately through subsidiary companies, each of which controls other subsidiary or associable company;
difficult triangular - direct share of parent bank in subsidiary companies which in turn have investment in each other. Such structure requires exact calculation of share of control and share of participation of the consolidated group in the authorized capital of data of subsidiary companies.
5.8. The parent bank at first constitutes the Consolidated statement about financial results and the Consolidated balance. The consolidated cash flow statement and the Consolidated statement about equity constitutes parent bank based on the Consolidated balance and the Consolidated statement about financial results.
5.9. The parent bank for the purpose of adjustment and determination of the consolidated amounts performs adjusting records which makes in working tables for creation of consolidated statements (appendices 15 and 16) and does not display in accounting registers of participants of the consolidated group. The parent bank performs the necessary adjustments via the mechanism of technical accounts of consolidation in the Magazine of adjusting records (appendix 17). In case of need the parent bank can add above-mentioned working tables and the magazine with other Articles.
Reporting data of non-bank subsidiary companies for the purpose of their reduction in compliance with the Consolidated balance and the Consolidated statement about financial results group in such similar Articles as assets, obligations, the capital, the income and expenses.
5.10. During creation of the consolidated statements the parent bank performs the adjusting records which are registered in the Magazine of adjusting records (appendix 17). The parent bank in it displays the adjustments calculated in consolidation cards on each certain participant of the consolidated group and displayed in registers of intra group transactions and other auxiliary documents which increase or reduce articles of the Consolidated balance and the Consolidated statement about financial results.
The parent bank in the Magazine of adjusting records registers such records:
exception of share value (share) of participants of the consolidated group displayed in balance of parent bank and/or other participants of the consolidated group whose reporting joins by method of complete consolidation;
exception of share value (share) of participants of the consolidated group displayed in balance of parent bank and/or other participants of the consolidated group whose reporting joins by method of equity participation;
inclusion of share value (share) of the participants of the consolidated group calculated by method of equity participation;
inclusion in asset of the Consolidated balance of the amounts of goodwills calculated in consolidation cards;
reduction (increase) of profit of the consolidated group by the amount depreciation of goodwill;
exception of intra group profits (losses);
exception of intra group requirements / obligations;
others.
5.11. The packet of consolidated financial statements of the consolidated group for the previous financial year is the basis in the course of consolidation of the financial reporting during the subsequent accounting periods.
5.12. If shareholding in subsidiary company of bank decreases with corresponding change of the status of subsidiary company, then the parent bank stops application of method of complete consolidation from the date of changes of investments, proceeding from whether it recognizes the participant as the associable company (the method of equity participation is applied) or classifies investments as withheld for sale.
5.13. The parent bank lists articles of financial statements of economic units outside Ukraine on hryvnia equivalent:
a) lists monetary and not monetary items on the official exchange rate for date of balance;
b) income items, expenses lists on the official exchange rate on activity date, except the reporting of subsidiary banks, branches, representations constituted in country currency with hyper inflation economy.
The parent bank can apply every month the weighted currency rate for the corresponding month to recalculation of the income, expenses and cash flow.
5.14. The exchange differences arising during recalculation of indicators of the financial reporting that is difference between result of the indicators of asset items and liability of balance of the economic units located outside Ukraine converted into currency of the reporting in currency of Ukraine, parent bank displays in the Consolidated balance separate component of equity "Cumulative exchange differences" in the article "Reserve and Other Funds of Bank".
In case of disposal of economic unit outside Ukraine determines the cumulative amount of exchange differences connected with recalculation of financial statements of this economic unit, parent bank as the income or expenses of that period in which financial results from disposal were displayed.
In case of partial disposal of economic unit (realization or exception of part of investment into the subsidiary bank located outside Ukraine) the parent bank includes pro rata share of the corresponding amount of cumulative exchange differences in structure of the income or expenses.
5.15. After recalculation of Articles includes financial statements of branches, representative offices of the Ukrainian banks, subsidiary banks, the affiliated non-bank organizations located outside Ukraine, parent bank in consolidated financial statements according to the same scheme, as local, including the procedure of exception of intra group transactions, calculations of goodwill and share of minority, and so forth.
5.16. If the subsidiary bank located outside Ukraine completely does not belong to parent bank, then part of the exchange differences which arose during recalculation of financial statements of subsidiary bank in the course of consolidation belongs to share of minority and is displayed in its structure in the Consolidated balance.
5.17. The parent bank lists assets and liabilities of the subsidiary company located outside Ukraine by the currency rate for date of balance of this company if its financial reporting for the objective reasons is constituted for the date of the reporting which is not answering to date of the reporting of parent bank (provided that the interval between them constitutes no more than three months). The parent bank does the corresponding adjustments if considerable changes in the currency rate before date of creation of balance of parent bank took place. The parent bank displays the exchange differences arising during recalculation of indicators of the financial reporting according to Item 5.14 of this Section.
5.18. The parent bank constitutes consolidated financial statements by method of complete consolidation by the arranged addition of indicators of the financial reporting of participants of the consolidated group to similar indicators of the financial reporting of parent bank.
The parent bank during preparation of consolidated statement at first item by item combines the individual and unified reports of parent bank and participants of the consolidated group by addition of indicators of identical asset items, obligations and off-balance sheet items for the purpose of opening of the amounts of substantial risks, and then creates in pro consolidated statements (before introduction of the adjusting records connected with consolidation), namely:
completely includes assets, obligations and the capital of the consolidated companies in the Consolidated balance;
completely includes the income and expenses of the consolidated companies in the Consolidated statement about financial results.
The parent bank in case of acquisition of subsidiary companies during the accounting period includes in consolidated financial statements only part of the income and expenses which are saved up from the date of acquisition which date to which control of net assets and activities of the bought company passes to the buyer, that is parent bank is.
The parent bank performs process of complete consolidation according to the scheme given in appendix 18.
5.19. The parent bank during creation of consolidated financial statements by method of complete consolidation excludes by implementation of adjusting records:
from assets of parent bank - book value of financial investments of bank into each subsidiary company, and from the capital of each subsidiary company - respective share of parent bank (for exception of the double entry accounting of assets and liabilities);
from all indicators of settlement transactions of parent bank and subsidiary company - the amount of intra group transactions and intra group balance;
the amount of unrealized profits and losses from intra group transactions (except losses which cannot be compensated).
The parent bank excludes remaining balance of the unrealized incomes and expenses which resulted from intra group transactions, and investments in the authorized capital, and also any unrealized result arising from these transactions is identical to the principle which is applied in case of curtailment of the interfilial income and expenses during preparation of the annual financial report.
5.20. The parent bank for creation of consolidated financial statements by method of complete consolidation determines minority share in the capital and financial results of subsidiary companies. The parent bank excludes the dividends received from participants of the consolidated group during the accounting period from the income.
The parent bank in the course of consolidation excludes the dividends which are subject to payment to parent bank or other subsidiary companies. The parent bank analyzes dividends which are paid during the accounting period, and excludes from retained earnings in case of payment of dividends to other participants of the consolidated group or reduces minority share if they were paid to the third parties. The parent bank displays share of minority of shareholders in dividends in the Consolidated balance in equity separately.
5.21. The parent bank displays minority share in profit or loss of subsidiary company for the accounting period the individual clause (line) in the Consolidated statement about financial results. If the minority share in losses of subsidiary company exceeds minority share in the capital of subsidiary company, then on the amount of such exceeding and size of the subsequent losses belonging to minority share, the parent bank reduces the share in equity of the consolidated group, except for that part concerning which the minority has the obligation and is capable to cover losses. If further in the financial reporting of subsidiary company the profit is displayed, then the parent bank distributes all amount of such profit on share of parent bank to covering of losses of minority which amount is compensated at the expense of share of parent bank earlier.
5.22. The parent bank in the working records opens the technical account for display of share of minority in the authorized capital, reserves and retained earnings of subsidiary company if the consolidated group does not hold all shares of the authorized capital of subsidiary company. The parent bank specifies share in net assets of the participant of the consolidated group whose reporting joins by method of complete consolidation, in the Consolidated balance and the Report on financial results the individual clause (line).
5.23. The parent bank expects the profit share or loss after adjustment the amount of preferred share dividends of subsidiary company irrespective of announcement of dividends if the subsidiary company issued preferred shares according to which the amount of dividends accumulates and which are in ownership outside the consolidated group.
5.24. The parent bank recognizes goodwill cost, the parent bank arising during consolidation of the financial reporting and the financial reporting of subsidiary companies of bank as the asset and specifies in the Consolidated balance the individual clause (line) "Goodwill".
5.25. The consolidated financial statements shall contain in case of sale of one of subsidiary companies:
cumulative results of subsidiary company of bank for the period of sale;
profit or loss from sale of bank to subsidiary company which constitutes difference between the received price and the amount of share of parent bank in net assets of subsidiary company, including goodwill size on the date of acquisition of subsidiary company of parent bank.
The parent bank does not include subsidiary company which sold during the accounting period in the consolidated group, and this transaction is performed on reporting date.
5.26. The parent bank registers all changes in the cost of financial investments of subsidiary companies of the consolidated group, net assets, percent of the consolidated group and share of minority in these net assets. The parent bank analyzes changes for the purpose of determination of changes:
in acquisition price cost;
which are connected with fluctuations of the official exchange rate.
5.27. The parent bank determines and adjusts minority share in profits of the consolidated subsidiary companies which were saved up during the accounting period, according to the income of the consolidated group for the purpose of determination of net profit of the consolidated group.
The parent bank determines minority share as:
minority shares in the reserves of retained earnings (loss) and other indicators of equity of the consolidated group which are saved up since acquisition;
minority shares in the amount of increase (reduction) of the authorized capital that is result of release or implementation of shares which before the companies of the consolidated group owned;
the dividends received by minority share;
minority shares in net assets of the new companies which join for consolidation.
5.28. The parent bank during exception of book value of its financial investments determines cost difference, that is difference between acquisition value of net assets (capital) of subsidiary company and book value of these assets for date of acquisition. Reclassification of this cost difference means its distribution on:
goodwill;
revaluation of book value of assets to their fair value.
5.29. The parent bank calculates goodwill for the period of acquisition by the consolidated group of shares (share) of the consolidated participant that is difference between share value (share) displayed in individual financial statements of participants of the consolidated group and the amount of net assets (the authorized capital, reserves, retained earnings and other indicators of equity) of the consolidated participant increased by share of control of the consolidated group in the authorized capital of the participant.
5.30. The parent bank estimates goodwill at cost taking into account usefulness reduction. The parent bank performs recognition of reduction of usefulness of goodwill during the annual accounting period every year at the same time.
5.31. The parent bank recognizes negative goodwill in full amount as the income during primary recognition of investments.
5.32. The parent bank determines goodwill of date of acquisition for each participant separately.
Further the parent bank can transfer goodwill amount in case:
increase in share of the authorized capital of the participant belonging to the consolidated group;
increase in share of the authorized capital of the participant belonging to minority share;
share acquisition (shares) of the participant of the consolidated group at the third parties;
partial or complete sale of shares (share) of the participant of the consolidated group to the third parties;
sales of shares (share) of the participant of the consolidated group to other participants of the consolidated group.
In these cases at size of the acquired (sold) shares (share) of the participant of the consolidated group the parent bank separately calculates goodwill amount and sums up with the previous value, changing it.
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The document ceased to be valid according to the Resolution of Board of the National Bank of Ukraine of May 14, 2012 No. 179