PROVISION OF CENTRAL BANK OF THE RUSSIAN FEDERATION

of October 1, 2015 No. 494-P

Industry standard of financial accounting of transactions with securities in not credit financial credit institutions

According to the Federal Law of July 10, 2002 No. 86-FZ "About the Central bank the Russian Federation (Bank of Russia)" (The Russian Federation Code, 2002, No. 28, Art. 2790; 2003, No. 2, Art. 157; No. 52, Art. 5032; 2004, No. 27, Art. 2711; No. 31, Art. 3233; 2005, No. 25, Art. 2426; No. 30, Art. 3101; 2006, No. 19, Art. 2061; No. 25, Art. 2648; 2007, No. 1, Art. 9, Art. 10; No. 10, Art. 1151; No. 18, Art. 2117; 2008, No. 42, Art. 4696, Art. 4699; No. 44, Art. 4982; No. 52, Art. 6229, Art. 6231; 2009, No. 1, Art. 25; No. 29, Art. 3629; No. 48, Art. 5731; 2010, No. 45, Art. 5756; 2011, No. 7, Art. 907; No. 27, Art. 3873; No. 43, Art. 5973; No. 48, Art. 6728; 2012, No. 50, Art. 6954; No. 53, Art. 7591, Art. 7607; 2013, No. 11, Art. 1076; No. 14, Art. 1649; No. 19, Art. 2329; No. 27, Art. 3438, Art. 3476, Art. 3477; No. 30, Art. 4084; No. 49, Art. 6336; No. 51, Art. 6695, Art. 6699; No. 52, Art. 6975; 2014, No. 19, Art. 2311, Art. 2317; No. 27, Art. 3634; No. 30, Art. 4219; No. 40, Art. 5318; No. 45, Art. 6154; No. 52, Art. 7543; 2015, No. 1, Art. 4, Art. 37; No. 27, Art. 3958, Art. 4001, No. 29, Art. 4348, Art. 4357; No. 41, Art. 5639; No. 48, Art. 6699; 2016, No. 1, Art. 23, Art. 46, Art. 50; No. 26, Art. 3891; No. 27, the Art. 4225, the Art. 4273, the Art. 4295) and the solution of the Board of directors of the Bank of Russia (No. 28) the Bank of Russia establishes the minutes of the Board of directors of the Bank of Russia of September 29, 2015 for not credit financial credit institutions located in the territory of the Russian Federation (further - not credit financial credit institutions), procedure for financial accounting of transactions with securities.

Requirements of this provision do not extend to the transactions connected with release (issue) of securities by not credit financial credit institutions.

Requirements of this provision do not extend much conducting depositary accounting by not credit financial credit institutions.

Chapter 1. General provisions

1.1. Transaction date on acquisition and disposal (realization) of security the date of transition of the property rights to security determined according to article 29 of the Federal Law of April 22, 1996 No. 39-FZ "About the security market" is (The Russian Federation Code, 1996, No. 17, Art. 1918; 2001, No. 33, Art. 3424; 2002, No. 52, Art. 5141; 2004, No. 27, Art. 2711; No. 31, Art. 3225; 2005, No. 11, Art. 900; No. 25, Art. 2426; 2006, No. 1, Art. 5; No. 2, Art. 172; No. 17, Art. 1780; No. 31, Art. 3437; No. 43, Art. 4412; 2007, No. 1, Art. 45; No. 18, Art. 2117; No. 22, Art. 2563; No. 41, Art. 4845; No. 50, Art. 6247; 2008, No. 52, Art. 6221; 2009, No. 1, Art. 28; No. 18, Art. 2154; No. 23, Art. 2770; No. 29, Art. 3642; No. 48, Art. 5731; No. 52, Art. 6428; 2010, No. 17, Art. 1988; No. 31, Art. 4193; No. 41, Art. 5193; 2011, No. 7, Art. 905; No. 23, Art. 3262; No. 29, Art. 4291; No. 48, Art. 6728; No. 49, Art. 7040; No. 50, Art. 7357; 2012, No. 25, Art. 3269; No. 31, Art. 4334; No. 53, Art. 7607; 2013, No. 26, Art. 3207; No. 30, Art. 4043, Art. 4082, Art. 4084; No. 51, Art. 6699; No. 52, Art. 6985; 2014, No. 30, Art. 4219; 2015, No. 1, Art. 13; No. 14, Art. 2022; No. 27, Art. 4001; No. 29, Art. 4348, Art. 4349, Art. 4357; 2016, No. 1, Art. 50, Art. 81; No. 27, the Art. 4225) or terms of the contract if it is stipulated by the legislation the Russian Federation.

In financial accounting the specified transactions are reflected in the basis of source accounting documents confirming transition of the property rights to security or in case of accomplishment of the terms of the contract determining transition of the property rights.

1.2. For the purpose of this provision the initial recognition of security is understood as reflection of security on balance sheet accounts in connection with acquisition of right of the property right to it.

1.3. In case of initial recognition securities are estimated at fair value. Fair value of securities in case of initial recognition, except for the securities estimated at fair value which changes are reflected through profit or loss is determined taking into account the costs according to the transaction connected with acquisition of securities.

After initial recognition and to derecognition securities are estimated on depreciated cost or at fair value depending on their classification according to the procedure, provided by this Provision.

1.4. For the purpose of this provision depreciated cost of the debt security the amount in which the debt security is estimated in case of initial recognition, less payments in repayment of the main amount of debt, gained interest incomes, increased by the added interest incomes (taking into account adjustments according to this Provision), and also reduced by the impairment size reflected in the balance sheet account on accounting of reserves under impairment is recognized.

Are understood as debt securities, including bills of exchange, except for separate mentioning of bills of exchange.

Interest incomes for the purpose of this provision the income added in the form of percent, the coupon, discount is recognized (further - interest incomes, except as specified separate mentioning of percent, the coupon, discount).

Depreciated cost is calculated with use of straight-line method of recognition of interest income or effective interest rate method (further - ESP).

When calculating depreciated cost with use of straight-line method of recognition of interest income percent and the coupon are charged at the rate established by conditions of release of the debt security, the amounts of discount and award belong into the balance sheet account on accounting of interest incomes regularly during circulation period and (or) repayment of the debt security.

The ESP method can not be applied to the debt securities classified as estimated at fair value through profit or loss, and also to debt securities according to which the difference between the depreciated cost calculated with use of the ESP method, and the depreciated cost calculated with use of straight-line method of recognition of interest income is not essential. Criteria of materiality affirm as accounting policy of not credit financial credit institution.

When calculating depreciated cost with use of the ESP method interest incomes are charged on ESP (discount rate). ESP for calculation of depreciated cost is determined according to the International accounting standard (IAS) 39 "Financial instruments: recognition and assessment", the order of the Ministry of Finance of the Russian Federation enacted in the territory of the Russian Federation of December 28, 2015 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", the registered Ministry of Justice of the Russian Federation on February 2, 2016 No. 40940 ("The official Internet portal of legal information" (www.pravo.gov.ru), on February 8, 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", the registered Ministry of Justice of the Russian Federation on July 15, 2016 No. 42869 ("The official Internet portal of legal information" (www.pravo.gov.ru), on July 18, 2016 (further - IFRS (IAS) 39).

Calculation of depreciated cost is perfromed at least once a quarter the last day of the accounting period (further - reporting date) which is understood as the first quarter, half-year, nine months and year.

Not credit financial credit institution can perfrom calculation of depreciated cost more often than once in quarter. Frequency of calculation of depreciated cost if necessary is determined (affirms) not credit financial credit institution as standards of the economic actor. Not credit financial credit institution shall review the expected cash flows according to debt securities depending on change of estimations of payments and receipts.

The value adjustment of debt securities is performed in case of difference of the discount rate used for calculation of depreciated cost in the accounting period from the interest rate established by conditions of release of the debt security.

The adjustments reducing and increasing the cost of debt securities are considered on the corresponding accounts of the second procedure opened on balance sheet accounts of the first procedure No. 501 "The debt securities estimated at fair value through profit or loss", No. 502 "Debt securities, available for sale or the debt securities estimated at fair value through other comprehensive income", No. 503 "Debt securities, withheld before repayment" No. 504 "The debt securities (except bills of exchange) considered on depreciated cost except estimated at fair value through profit or loss, available for sale, estimated at fair value through other comprehensive income and withheld before repayment", No. 512 "The bills of exchange estimated at fair value through profit or loss", No. 513 "Bills of exchange available for sale, or the bill of exchange, "The bills of exchange withheld before repayment", No. 515 "Bills of exchange estimated at fair value through other comprehensive income", No. 514, considered on depreciated cost except estimated at fair value through profit or loss, available for sale, estimated at fair value through other comprehensive income and withheld before repayment" (further - accounts on accounting of the adjustments reducing the cost of debt securities or the account on accounting of the adjustments increasing the cost of debt securities) the Chart of accounts of the financial accounting in not credit financial credit institutions established by the Provision of the Bank of Russia of September 2, 2015 No. 486-P "About the Chart of accounts of financial accounting in not credit financial credit institutions and procedure for its application" No. registered by the Ministry of Justice of the Russian Federation on October 7, 2015 39197, __ ________ 2016 No. ___ ("the Bulletin of the Bank of Russia" of October 29, 2015 No. 94 - 95, from __________ 2016 No. ___) (further - the Chart of accounts of financial accounting in not credit financial credit institutions).

1.4-1. When calculating depreciated cost with use of the ESP method interest incomes are charged on ESP (discount rate). ESP for calculation of depreciated cost is determined according to the International accounting standard (IFRS) 9 "Financial instruments", in edition of 2014, the order of the Ministry of Finance of the Russian Federation enacted in the territory 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", the registered Ministry of Justice of the Russian Federation on July 15, 2016 No. 42869 ("The official Internet portal of legal information" (www.pravo.gov.ru), on July 18, 2016) (further - the order of the Ministry of Finance of the Russian Federation No. 98n) (further - IFRS (IFRS) 9).

Not credit financial credit institutions, except non-state pension funds, insurance companies and societies of mutual insurance corresponding to criteria, stipulated in Item 20B International accounting standards (IFRS) 4 "Insurance contracts" enacted in the territory of the Russian Federation by the order of the Ministry of Finance of the Russian Federation of December 28, 2015 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 No. which voided some orders (separate provisions of orders) of the Ministry of Finance of the Russian Federation", the registered Ministry of Justice of the Russian Federation on February 2, 2016 40940, on August 1, 2016 No. 43044, 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 No. which voided some orders of the Ministry of Finance of the Russian Federation", the registered Ministry of Justice of the Russian Federation on July 15, 2016 42869, 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", the registered Ministry of Justice of the Russian Federation on August 1, 2016 No. 43044, the order of the Ministry of Finance of the Russian Federation of March 30, 2017 No. 50n "About introduction of the document of International accounting standards in action in the territory of the Russian Federation", the registered Ministry of Justice of the Russian Federation on May 22, 2017 No. 46773 (further - IFRS (IFRS) 4 "Insurance contracts"), is applied by IFRS (IFRS) 9. The non-state pension funds, insurance companies and societies of mutual insurance corresponding to criteria, stipulated in Item 20B IFRS (IFRS) 4 "Insurance contracts" shall apply IFRS (IFRS) 9 with since January 1, 2025. If the non-state pension fund, insurance company or society of mutual insurance corresponding to criteria, stipulated in Item 20B IFRS (IFRS) 4 "Insurance contracts" make the decision on application of IFRS (IFRS) 9 on the annual accounting periods beginning till January 1, 2025, the specified decision shall be reflected in accounting policy.

Provisions of the paragraph of the seventh Item 1.4 of this provision are not applied to not credit financial credit institution applying IFRS (IFRS) 9.

Provisions of this Item are applied to not credit financial credit institution applying IFRS (IFRS) 9,.

1.5. For the purpose of this provision in fair value of security the price which would be received in case of security sale when carrying out the regular transaction between members of the security market for date of assessment is recognized. Assessment of fair value is performed according to the procedure, the determined International accounting standard (IFRS) 13 "Assessment of fair value" enacted in the territory of the Russian Federation by the order of the Ministry of Finance of the Russian Federation of December 28, 2015 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", the registered Ministry of Justice of the Russian Federation on February 2, 2016 No. 40940 ("The official Internet portal of legal information" (www.pravo.gov.ru), on February 8, 2016) (further - the order of the Ministry of Finance of the Russian Federation No. 217n), with the amendments enacted in the territory of the Russian Federation by the order of the Ministry of Finance of the Russian Federation No. 98n.

Assessment of fair value of securities can be acknowledged reliable if the range in which there are fair value estimations (made on the basis of such methods as, for example, market, profitable approaches, or other methods) is not essential, and also in other cases provided by IFRS (IAS) 39. Recognition criteria of assessment of fair value of securities reliable assessment affirm as accounting policy of not credit financial credit institution.

1.5-1. Provisions of paragraph two of Item 1.5 of this provision are not applied to not credit financial credit institution applying IFRS (IFRS) 9.

Provisions of this Item are applied to not credit financial credit institution applying IFRS (IFRS) 9,.

Assessment of fair value of securities can be acknowledged reliable if the range in which there are fair value estimations (made on the basis of such evaluation methods as, for example, market or profitable approaches) is not essential, and also in other cases provided by IFRS (IFRS) 9. Recognition criteria of assessment of fair value of securities of reliable affirm as accounting policy of not credit financial credit institution.

1.6. The methods of determination of depreciated cost and fair value used by not credit financial credit institution affirm as accounting policy.

1.7. For the purpose of this provision the derecognition of security is understood as write-off of security from accounting on balance sheet accounts as a result of disposal (realization) in connection with assignment of rights of property on security, repayment of security or impossibility of realization of the rights affirmed by security and also in other cases when the requirements provided by IFRS (IAS) 39 for derecognition of securities are observed.

In case of repayment of the debt security date of disposal is day of execution by person obliged on security (further - the issuer), the obligations on repayment of the debt security.

1.7-1. Provisions of paragraph one of Item 1.7 of this provision are not applied to not credit financial credit institution applying IFRS (IFRS) 9.

Provisions of this Item are applied to not credit financial credit institution applying IFRS (IFRS) 9,.

For the purpose of this provision the derecognition of security is understood as write-off of security from accounting on balance sheet accounts as a result of disposal (realization) in connection with assignment of rights of property on security, repayment of security or impossibility of realization of the rights affirmed by security and also in other cases when the requirements provided by IFRS (IFRS) 9 for derecognition of securities are observed.

1.8. Acquisition of rights (transfer) of the property rights to securities on the transactions made on the terms of urgency, recoverability and the paid nature (further - the transactions made on returnable basis), is the basis for initial recognition (derecognition) of securities if it attracts transition of all risks and benefits (or practically all risks and benefits) connected with ownership of the transferred security and also in other cases when the criteria provided by International accounting standards for initial recognition (derecognition) of securities are carried out.

Determination of criteria of transition of all risks and benefits (or practically all risks and benefits) is performed according to IFRS (IAS) 39.

1.8-1. Provisions of paragraph two of Item 1.8 of this provision are not applied to not credit financial credit institution applying IFRS (IFRS) 9.

Provisions of this Item are applied to not credit financial credit institution applying IFRS (IFRS) 9,.

Determination of criteria of transition of all risks and benefits (or practically all risks and benefits) is performed according to IFRS (IFRS) 9.

1.9. In financial accounting are subject to reflection of transaction under each agreement regardless of the place and method of their making (it is direct at the exchange, through the intermediary or independently under the off-exchange agreement). Balancing of financial results (the income and expenses) under different contracts for acquisition and implementation of securities, and also the reinvested intermediary of sales proceeds is not allowed.

1.10. Analytics of securities are kept on the personal accounts opened on the corresponding balance sheet accounts on accounting of securities of the second procedure with currency code of nominal (obligation).

If securities are acquired for the currency other than currency of nominal (obligation), then their cost is determined by the official rate of foreign currency established by the Bank of Russia in relation to ruble (further - the official rate) or by cross-rate of foreign currencies proceeding from the official rates established for the corresponding currencies for date of acquisition. The procedure for conducting analytics on balance sheet accounts if necessary is determined by accounting of securities by not credit financial credit institution independently in standards of the economic actor or other internal documents.

On the issued securities and securities having the international identification code of security (ISIN) or other code assigned by the national registration agency or other organization replacing it in this quality (further - identification code of security), analytics shall provide information according to the chosen method of value assessment of the disposed (realized) issued securities by releases.

On the securities which are not relating to issued, or the securities which do not have identification code of security, analytics shall provide information on each security or batch of securities.

1.11. Financial accounting of the interest income according to debt securities paid in case of acquisition can be led on front (front) the account (accounts) "The added percent (to obtaining)" or on front (front) the account (accounts) of release (separate security or batch).

Financial accounting of the added interest income according to debt securities is kept on separate (separate) front (front) the account (accounts) "The added percent (to obtaining)" (further - personal account on accounting of the added interest receivable), opened on the corresponding balance sheet accounts of the second procedure with currency code in which interests are paid (the coupon is settled).

The procedure for reflection of interest income on personal accounts if necessary is determined by debt securities (affirms) not credit financial credit institution as standards of the economic actor.

Financial accounting of the adjustments increasing or reducing interest incomes when calculating depreciated cost of the debt security with use of the corresponding depreciation method is conducted on the separate balance sheet accounts of the second procedure opened to balance sheet accounts on accounting of debt securities.

1.12. In case of discrepancy of date of transition of the property rights to securities and dates of the payment under securities determined by terms of the contract with date of the conclusion of the agreement on acquisition (realization) of securities of the requirement (obligation) for delivery of securities and the obligation (requirement) for delivery of money accounts on accounting of requirements and obligations on derivative financial instruments and other agreements (transactions) on which calculations and delivery are performed not earlier than the next day, after day of the conclusion of the agreement (transaction)" according to the Chart of accounts of financial accounting in not credit financial credit institutions are considered on accounts of Chapter G ".

Under agreements of acquisition of the securities estimated at fair value through profit or loss, available for sale or estimated at fair value through other comprehensive income on which date of initial recognition of securities did not come by the end of the reporting period and which are not the derivative financial instruments considered according to the Provision of the Bank of Russia of September 2, 2015 No. 488-P "Industry standard of financial accounting of derivative financial instruments by not credit financial credit institutions" (further - industry standard of financial accounting of derivative financial instruments) registered by the Ministry of Justice of the Russian Federation 15.10.2015 No. 39326 ("the Bulletin of the Bank of Russia" from ________ No. ____), not credit financial credit institution at least on each reporting date shall carry out assessment of size of change of fair value of acquired securities from the date of the conclusion of the contract for acquisition of securities to reporting date. If change of fair value of acquired securities

from the date of the conclusion of the contract for acquisition of securities to reporting date is essential, not credit financial credit institution reflects in financial accounting by the end of the reporting period change of fair value of acquired securities from the date of the conclusion of the contract for acquisition of securities and to reporting date in balance sheet accounts on accounting of revaluation of securities according to accounting treatment for revaluation of acquired securities after their initial recognition. Criteria of materiality affirm as accounting policy of not credit financial credit institution.

Chapter 2. Classification of securities for the purposes of financial accounting

2.1. Securities in case of initial recognition are classified by not credit financial credit institutions depending on the purposes in one acquisitions from the following categories:

the securities estimated at fair value through profit or loss;

the debt securities withheld before repayment;

securities, available for sale.

In case of classification of securities not credit financial credit institution shall use the criteria of classification established by IFRS (IAS) 39.

Not quoted debt securities meeting the criteria established in Item 11.1 of this provision are considered on depreciated cost according to the procedure established by Chapter 11 of this provision.

2.1.2. The securities acquired for the purpose of sale in the short term (intended for trade), shall be classified as the securities estimated at fair value through profit or loss.

Securities can be classified as estimated at fair value through profit or loss if their fair value can be reliably determined.

2.1.3. Debt securities can be classified as withheld before repayment, only if not credit financial credit institution intends to hold them before repayment (regardless of term between date of acquisition and repayment date) and the specified securities do not meet the criteria established in Item 11.1 of this provision.

Not credit financial credit institution has no right to classify securities as withheld before repayment if it has no practical opportunity to hold these securities before repayment in connection with the assumed liabilities to partners or owing to other reasons.

Not credit financial credit institution if necessary develops criteria for confirmation of practical possibility of deduction of security before repayment in standards of the economic actor.

2.1.4. Securities in case of initial recognition can be carried by not credit financial credit institution in category of securities, available for sale. Not credit financial credit institution also classifies in category available for sale securities which were not classified as estimated at fair value through profit or loss according to subitem 2.1.2 of this Item, were not classified as withheld before repayment according to subitem 2.1.3 of this Item and were not carried in structure of the not quoted securities considered on depreciated cost because they do not meet the criteria established in Item 11.1 of this provision.

2.1-1. Provisions of Item 2.1 of this provision are not applied to not credit financial credit institution applying IFRS (IFRS) 9.

Provisions of this Item are applied to not credit financial credit institution applying IFRS (IFRS) 9,.

Securities in case of initial recognition are classified by not credit financial credit institutions depending on the business model used for management of securities, and nature of the cash flows provided by terms of the contract in one of the following categories:

the securities estimated on depreciated cost;

the securities estimated at fair value through other comprehensive income;

the securities estimated at fair value through profit or loss.

In case of classification of securities not credit financial credit institution shall use the criteria of classification established by IFRS (IFRS) 9.

Not credit financial credit institution carries securities in category of the securities estimated on depreciated cost if both following conditions are satisfied:

securities are acquired within business model which purpose is deduction of securities for receipt of the cash flows provided by conditions of release;

conditions of issue of securities cause obtaining in certain dates of the cash flows which are only payments on account of the main amount of debt and percent on outstanding part of the main amount of debt.

Not credit financial credit institution estimates securities at fair value through other comprehensive income if both following conditions are satisfied:

securities are acquired within business model which goal is achieved as by receipt of the cash flows provided by conditions of release, and by security sale;

conditions of issue of securities cause obtaining in certain dates of the cash flows which are only payments on account of the main amount of debt and percent on outstanding part of the main amount of debt.

Securities which were not classified by not credit financial credit institution in category of the securities estimated on depreciated cost or category of the securities estimated at fair value through other comprehensive income shall be classified in category of the securities estimated at fair value through profit or loss.

According to equity securities which otherwise would be classified in category of the securities estimated at fair value through profit or loss not credit financial credit institution can make the decision which is not subject to cancellation to reflect changes of fair value of such securities as a part of other comprehensive income according to the procedure, the provided IFRS (IFRS) 9.

Not credit financial credit institution can classify at own discretion for date of initial recognition of securities them (without the right of the subsequent reclassification) as estimated at fair value through profit or loss if it allows to eliminate or to considerably reduce inconsistency of approaches to assessment or recognition (accounting discrepancy) which differently would arise owing to use of different measurement bases of assets or liabilities or recognition of the related income and expenses.

2.2. If not credit financial credit institution exercises control over management of joint-stock company or exerts considerable impact (or joint control) on activities of joint-stock company, then shares of such joint-stock companies are considered on the corresponding account of the second procedure for the account No. 601 "Participation in the affiliated and associated joint-stock companies, mutual investment funds" and are not subject to the subsequent revaluation after initial recognition.

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