of May 29, 2008 No. 24109/878
To the chairman of Association
financiers of Kazakhstan
Akhanovu S.A.
Dear Serik Akhmetzhanovich!
Present the National Bank of the Republic of Kazakhstan submits you Methodical Recommendations about reflection in financial accounting of the second level of transactions of securitization of assets by banks, and also asks you to bring them to the attention of the interested financial organizations.
Vice-chairman D. Akishev
According to Items 13) and 14) of article 1 of the Law of the Republic of Kazakhstan "About securitization", securitization is financing under concession of monetary claim by bond issue, provided with the allocated assets. At the same time, the transaction of securitization is acquisition of the rights to claim by special finance company and bond issue provided with the allocated assets.
Accounting and reflection of transactions of securitization in the financial reporting of Bank need to be performed according to requirements of paragraphs 15-42 of the International Financial Reporting Standard 39 "Financial instruments: recognition and assessment" (further - IFRS 39) and paragraphs AG 37 and AG 63 of Appendix A to IFRS 39.
Accounting of securitization is generally concentrated on regulations on derecognition of assets in this connection, the most important question in securitization accounting: whether there will be securitized asset is written off from balance, Necessary steps in case of determination of need of derecognition are given in appendix 1 to these recommendations.
The principles of derecognition of IFRS 39 are based on the model "taking into account risks and benefits" and on model of "control". Thus, for the purpose of exception of contradictions, these models need to be applied in strictly consecutive procedure, according to appendix 1.
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