LETTER OF NATIONAL BANK OF THE REPUBLIC OF KAZAKHSTAN

of December 25, 2006 No. 24129/2754

Present the Accounting department of National Bank of the Republic of Kazakhstan brings to your attention and use in work of the recommendation about creation of form No. 3 "The report on movement of money" as direct method.

Recommendations about creation of the cash flow statement by banks of the second level direct method

According to international accounting standards (further - IFRS) the cash flow statement shall represent cash flows for the period, classifying them by operating, investing or financial activities.

1. Money and their equivalents

Money and their equivalents according to IFRS include:

- cash and on-demand deposits;

- short-term, highly liquid investments, readily convertible in certain amount of money, and the changes of value which are put insignificant risk.

This Article includes and is created of the following indicators:

- money and their equivalents for the beginning;

- money and their equivalents for the end;

- net cash flow and their equivalents;

- influence of the exchange rates on money and their equivalents. General formula for determination of this Article is:

money and their equivalents = net cash flow and their equivalents + influence of the exchange rates on money and their equivalents.

Operating activiies - the main revenue-generating activities of the company and other activities other than investing and financial activities. Examples of flows of the money resulting from operating activiies are:

- receipts of money from sale of products, performance of works and rendering services, and also advance payments from buyers and customers;

- receipts of money from provision of assets of the organization in operational leasing, the fees, commission charges and other similar income;

- payments to suppliers of goods and services;

- payments to workers and the payments made by the organization for orders of the workers;

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