INSTRUCTION OF CENTRAL BANK OF THE RUSSIAN FEDERATION

of September 6, 2016 No. 4130-U

About modification of the Provision of the Bank of Russia of September 4, 2015 No. 491-P "Industry standard of financial accounting in the insurance companies and societies of mutual insurance located in the territory of the Russian Federation"

1. According to the solution of the Board of directors of the Bank of Russia (the minutes of the Board of directors of the Bank of Russia of August 30, 2016 No. 25) to bring in the Provision of the Bank of Russia of September 4, 2015 No. 491-P "Industry standard of financial accounting in the insurance companies and societies of mutual insurance located in the territory of the Russian Federation", registered by the Ministry of Justice of the Russian Federation on October 21, 2015 No. 39399 ("the Bulletin of the Bank of Russia" of November 9, 2015 No. 99 - 100) (further - the Provision of the Bank of Russia No. 491-P), the following changes.

1.1. To add preamble after the words "Art. 4357" with words "; No. 41, Art. 5639; No. 48, Art. 6699; 2016, No. 1, Art. 23, Art. 46, Art. 50; No. 26, Art. 3891; No. 27, Art. 4225, Art. 4273, Art. 4295".

1.2. In Item 1.1:

to add paragraph two after the words "Art. 4385" with words "; No. 48, Art. 6715; 2016, No. 1, Art. 52; No. 22, Art. 3094; No. 26, Art. 3863, Art. 3891; No. 27, Art. 4225, Art. 4294, Art. 4296";

third after the words "Art. 6927" to add the paragraph with words "; 2015, No. 51, Art. 7245; 2016, No. 1, Art. 52; No. 27, Art. 4183, Art. 4219".

1.3. To declare subitem 2.3.4 of Item 2.3 invalid.

1.4. Add Item 2.3 with subitem 2.3.5 of the following content:

"2.3.5. The insurer has the right to make the decision on early application of IFRS (IFRS) 9 "Financial instruments" in edition of 2014 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 on 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) and to reflect this decision in accounting policy.

Provisions of subitem 2.3.4 of this Item are not applied to the insurer who made the decision on application of IFRS (IFRS) 9 since January 1, 2017.

Provisions of this subitem are applied to the insurer who made the decision on application of IFRS (IFRS) 9 since January 1, 2017.

The insurer according to IFRS (IFRS) 9 "Financial instruments", in edition of 2014 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 - the order of the Ministry of Finance of the Russian Federation No. 98n) (further - the IFRS (IFRS) 9), recognize asset impairment on insurance and reinsurance according to requirements of Chapter 31.1 of this provision (table 12.1 of appendix to this Provision).".

1.5. In the first offer of Item 4.4 of the word "or approaches of other event" to exclude.

1.6. To state paragraph two of Item 4.6 in the following edition:

"Examples of the agreements which are insurance contracts provided that the transferred insurance risk is considerable, are:".

1.7. To state the name of Chapter 7 in the following edition:

"Chapter 7. Evaluation procedure of obligations (insurance reserves) and assets connected with insurance bonds".

1.8. Add Chapter 7 with Items 7.6 and 7.7 of the following content:

"7.6. Provisions of this Item are applied to the insurer who made the decision on application of IFRS (IFRS) 9 since January 1, 2017.

The assets connected with insurance bonds and having signs of insurance assets - the overcautious person's share in insurance reserves, assessment of future receipts on subrogations and recourse requirements, assessment of future receipts of insured property and (or) its suitable remaining balance, assessment of size of the postponed acquisition expenses - shall be checked for possibility of receipt of future income (including using actuarial methods of estimates).

7.7. Provisions of this Item are applied to the insurer who made the decision on application of IFRS (IFRS) 9 since January 1, 2017.

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